You are on page 1of 129

UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF INSPECTOR GENERAL THE INSPECTOR GENERAL

November 16, 2009

Honorable Arne Duncan Secretary of Education Washington, D.C. 20202 Dear Secretary Duncan: The enclosed report presents the results of the audits of the U.S. Department of Education’s special purpose financial statements for fiscal years 2009 and 2008. The report should be read in conjunction with the Department’s special purpose financial statements and notes to fully understand the context of the information contained therein. We contracted with the independent certified public accounting firm of Ernst & Young, LLP (Ernst & Young) to audit the special purpose financial statements of the Department as of September 30, 2009 and 2008, and for the years then ended. The contract required that the audits be performed in accordance with U.S. generally accepted government auditing standards and OMB's bulletin, Audit Requirements for Federal Financial Statements. In connection with the contract, we monitored the performance of the audits, reviewed Ernst & Young's reports and related documentation, and inquired of its representatives. Our review was not intended to enable us to express, and we do not express, an opinion on the Department's financial statements, or conclusions about the effectiveness of internal control, or on compliance with laws and regulations. Ernst & Young is responsible for the attached auditor's report and the conclusions expressed in the related reports on internal control and compliance with laws and regulations. Our review disclosed no instances where Ernst & Young did not comply, in all material respects, with U.S. generally accepted government auditing standards. Sincerely, /s/ Mary Mitchelson (Acting)

Enclosure

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

Ernst & Young LLP 8484 Westpark Drive McLean, VA 22102 Tel: 703-747-1000 www.ey.com

Report of Independent Auditors

To the Inspector General U.S. Department of Education

We have audited the accompanying reclassified balance sheets as of September 30, 2009 and 2008, the related reclassified statements of net cost and changes in net position for the fiscal years then ended (hereinafter referred to as the special-purpose financial statements) contained in the special-purpose closing package of the U.S. Department of Education (the Department). These special-purpose financial statements are the responsibility of the Department’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and, Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards and bulletin require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free of material misstatement. We were not engaged to perform an audit of the Department’s internal control over financial reporting for the special-purpose financial statements. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control over financial reporting for the special-purpose financial statements. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the special-purpose financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special-purpose financial statements and accompanying notes contained in the special-purpose closing package have been prepared for the purpose of complying with the requirements of the U.S. Department of the Treasury’s Financial Manual (TFM) Volume I, Part 2, Chapter 4700, solely for the purpose of providing financial information to the U.S. Department of the Treasury and the U.S. Government Accountability Office to use in preparing and auditing the Financial Report of the U.S. Government, and are not intended to be a complete presentation of the Department’s financial statements.

A member firm of Ernst & Young Global Limited

Report of Independent Auditors Page 2

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Department as of September 30, 2009 and 2008, and its net costs and changes in net position, for the years then ended, in conformity with U.S. generally accepted accounting principles and the presentation pursuant to the requirements of TFM Chapter 4700. The information included in the Other Data is presented for the purpose of additional analysis and is not a required part of the special-purpose financial statements, but is supplementary information required by TFM Chapter 4700. We have applied certain limited procedures, which consisted principally of inquiries of management regarding methodology and presentation of this information. We also reviewed such information for consistency with the related information presented in the Department’s financial statements. However, we did not audit this information, and accordingly, we express no opinion on it. In accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended, we have also issued our reports dated November 13, 2009 on our consideration of the Department’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations and other matters. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended, and should be considered in assessing the results of our audit. In planning and performing our audit of the special-purpose financial statements, we also considered the Department’s internal control over the financial reporting process for the specialpurpose financial statements and compliance with the TFM Chapter 4700. Management is responsible for establishing and maintaining internal control over financial reporting, including Other Data, and for complying with laws and regulations, including compliance with the TFM Chapter 4700 requirements. Our consideration of internal control over the financial reporting process for the special-purpose financial statements was for the limited purpose described above and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses. Under standards issued by the American Institute of Certified Public Accountants, a deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be

A member firm of Ernst & Young Global Limited

Report of Independent Auditors Page 3

prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies in internal control, that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We noted no matters involving internal control over the financial reporting process for the special-purpose financial statements that we consider to be material weaknesses, and our tests of compliance with the TFM Chapter 4700 requirements disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards or OMB Bulletin No. 0704, as amended. However, providing opinions on internal control over the financial reporting process for the special-purpose financial statements or on compliance with the TFM Chapter 4700 requirements were not objectives of our audits of the special-purpose financial statements and, accordingly, we do not express such opinions. This report is intended solely for the information and use of the Department, the U.S. Department of Treasury, the Office of Management and Budget and the U.S. Government Accountability Office in connection with the preparation and audit of the Financial Report of the U.S. Government and is not intended to be and should not be used by anyone other than these specified parties.

November 16, 2009

A member firm of Ernst & Young Global Limited

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: BALANCE SHEET Entity: 9100-Department of Education Fiscal Year: Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Assets: Non-Federal Cash and Other Monetary Assets Accounts and Taxes Receivable Loans Receivable Inventory and Related Property Property, Plant and Equipment Securities and Investments Investment in Government sponsored enterprises (GSEs) Other Assets Total Non-Federal Assets Federal Fund Balance with Treasury Federal Investments Accounts Receivable Interest Receivable Loans Receivable Transfers Receivable Benefit Program Contributions Receivable Advances to Others and Prepayments Other Assets (without reciprocals) Total Federal Assets Total Assets Status 2009-SEPTEMBER 2008-SEPTEMBER Previously Reported

2,414 520 234,254 0 38 0 0 546 237,772 168,032 0 0 0 0 0 0 141 0 168,173 405,945

1,663 100 134,725 0 52 0 0 37 136,577 94,899 0 2 0 0 0 0 95 0 94,996 231,573

1,663 100 134,725 0 52 0 0 37 136,577 94,899 0 2 0 0 0 0 95 0 94,996 231,573

-1-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: BALANCE SHEET Entity: 9100-Department of Education Fiscal Year: Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Liabilities Non-Federal Accounts Payable Federal Debt Securities Held by the Public Federal Employee and Veteran Benefits Payable Environmental and Disposal Liabilities Benefits Due and Payable Loan Guarantee Liabilities Keepwell payable Insurance Programs Other Liabilities Total Non-Federal Liabilities Federal Accounts Payable Federal Debt Interest Payable Loans Payable Transfers Payable Benefit Program Contributions Payable Advances from Others and Deferred Credits Other Liabilities (without reciprocals) Status 2009-SEPTEMBER 2008-SEPTEMBER Previously Reported

(1,919) 0 (16) 0 0 (20,543) 0 0 (3,536) (26,014) (2,414) 0 (16) (235,369) 0 (7) (96) (14,969)

(1,296) 0 (16) 0 0 (43,322) 0 0 (2,374) (47,008) (1,663) 0 0 (128,668) 0 (7) (91) (10,800)

(1,296) 0 (16) 0 0 (43,322) 0 0 (2,374) (47,008) (1,663) 0 0 (128,668) 0 (7) (91) (10,800)

-2-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: BALANCE SHEET Entity: 9100-Department of Education Fiscal Year: Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Total Federal Liabilities Total Liabilities Net Position Net Position-Non-Earmarked Funds Net Position-Earmarked Funds Total Net Position Total Liabilities and Net Position Status 2009-SEPTEMBER (252,871) (278,885) (127,052) (8) (127,060) (405,945) 2008-SEPTEMBER (141,229) (188,237) (43,319) (17) (43,336) (231,573) Previously Reported (141,229) (188,237) (43,319) (17) (43,336) (231,573)

-3-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year: Entity: 9100-Department of Education Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Beginning Net Position Non-Federal Prior Period Adjustments (Not Restated) Federal Prior Period Adjustments (Not Restated) Adjusted Beginning Net Position Balance Non-Federal Nonexchange Revenue Individual Income Tax and Tax Witholdings Corporation Income Taxes Unemployment Taxes Excise Taxes Estate and Gift Taxes Custom Duties Other Taxes and Receipts Miscellaneous Earned Revenue Total Non-Federal Nonexchange Revenue Federal Nonexchange Revenue Federal Securities Interest Revenue Borrowing and other interest revenue Benefit Program Revenue (nonexchange) Other taxes and receipts Status 2009-SEPTEMBER (43,336) 0 0 (43,336) 2008-SEPTEMBER (49,581) 0 0 (49,581) Previously Reported (49,581) 0 0 (49,581)

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

-4-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year: Entity: 9100-Department of Education Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Total Federal Nonexchange Revenue Budgetary Financing Sources: Appropriations received as adjusted (rescissions and other adjustments) Appropriation of unavailable special or trust fund receipts transfers-in Appropriation of unavailable special or trust fund receipts Transfers-out Nonexpenditure transfers-in of unexpended appropriations and financing sources Nonexpenditure Transfers-out of unexpended appropriations and financing sources Expenditure transfers-in of financing sources Expenditure Transfers-out of financing sources Other budgetary financing sources Total Budgetary Financing Sources Other Financing Sources: Transfers-in Without Reimbursement Transfers-out Without Reimbursement Imputed Financing Source Status 2009-SEPTEMBER 0 (164,627) 0 0 0 18 0 0 622 (163,987) 0 0 (32) 2008-SEPTEMBER 0 (70,783) 0 0 0 208 0 0 (667) (71,242) 0 0 (29) Previously Reported 0 (70,783) 0 0 0 208 0 0 (667) (71,242) 0 0 (29)

-5-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: STATEMENT OF CHANGES IN NET POSITION Fiscal Year: Entity: 9100-Department of Education Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Other non-budgetary financing sources Total Other Financing Sources Net Cost Ending Net Position Balance Status 2009-SEPTEMBER 36,134 36,102 44,161 (127,060) 2008-SEPTEMBER 12,699 12,670 64,817 (43,336) Previously Reported 12,699 12,670 64,817 (43,336)

-6-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: STATEMENT OF NET COST Entity: 9100-Department of Education Fiscal Year: Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Gross Cost: Non-Federal Gross Cost Interest on Debt Held by the Public Total Non-Federal Gross Cost Federal Gross Cost Benefit Program Costs Imputed Costs Buy/Sell Costs Federal Securities Interest Expense Borrowing and Other Interest Expense Borrowing Losses Other Expenses (without reciprocals) Total Federal Gross Cost Department Total Gross Cost Earned Revenue Non-Federal Earned Revenue Federal Earned Revenue Benefit Program Revenue (exchange) Buy/Sell Revenue Federal Securities Interest Revenue (exchange) Borrowing and Other Interest Revenue (Exchange) Status 2009-SEPTEMBER 44,925 0 44,925 102 32 335 0 9,888 130 0 10,487 55,412 (6,531) 0 (905) 0 (3,815) 2008-SEPTEMBER 66,776 0 66,776 75 29 295 0 6,709 150 0 7,258 74,034 (4,996) 0 (805) 0 (3,227) Previously Reported 66,776 0 66,776 75 29 295 0 6,709 150 0 7,258 74,034 (4,996) 0 (805) 0 (3,227)

-7-

U.S Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003F-Closing Package Financial Statement Report Statement: STATEMENT OF NET COST Entity: 9100-Department of Education Fiscal Year: Reported In: 2009 MILLIONS Period: Decimal Point:

11-16-2009 12:07:52

SEPTEMBER ZERO

Amounts presented as debits and credits() The accompanying notes are an integral part of these financial statements. I = Inactive Line Closing Line item Borrowings Gains Other Revenue (without reciprocals) Total Federal Earned Revenue Department Total Earned Revenue Net Cost Status 2009-SEPTEMBER 0 0 (4,720) (11,251) 44,161 2008-SEPTEMBER (189) 0 (4,221) (9,217) 64,817 Previously Reported (189) 0 (4,221) (9,217) 64,817

-8-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 4 Fund Balance with Treasury (Note 3) Status Account NB Type A D Variance: F/N B 2009-SEPTEMBER 168,032 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 94,899 0

Closing Package Line Reclassification Closing Package Line Description Fund Balance with Treasury Total: Line Agency Line Description 5 Accounts Receivable (Note 4) Status F/N F 2009-SEPTEMBER 168,032 168,032 2008-SEPTEMBER 94,899 94,899 F/N F Previously Reported 94,899 94,899 2009-SEPTEMBER 0 0 Line Item Changes 0 0 2008-SEPTEMBER 2 0

Status Account NB Type A D Variance:

Closing Package Line Reclassification Closing Package Line Description Accounts Receivable Total: Line Agency Line Description 6 Other Intragovernmental Assets (Note 8) Status F/N F 2009-SEPTEMBER 0 0 2008-SEPTEMBER 2 2 F/N B Previously Reported 2 2 2009-SEPTEMBER 141 0 Line Item Changes 0 0 2008-SEPTEMBER 95 0

Status Account NB Type A D Variance:

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

-1-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 9 Cash and Other Monetary Assets (Note 5) Status Account NB Type A D Variance: F/N B 2009-SEPTEMBER 2,414 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 1,663 0

Closing Package Line Reclassification Closing Package Line Description Cash and Other Monetary Assets Total: Line Agency Line Description 10 Accounts Receivable, Net (Note 4) Status F/N N 2009-SEPTEMBER 2,414 2,414 2008-SEPTEMBER 1,663 1,663 F/N B Previously Reported 1,663 1,663 2009-SEPTEMBER 520 0 Line Item Changes 0 0 2008-SEPTEMBER 100 0

Status Account NB Type A D Variance:

Closing Package Line Reclassification Closing Package Line Description Accounts and Taxes Receivable Total: Line Agency Line Description 11 Credit Program Receivables, Net (Note 6) Status F/N N 2009-SEPTEMBER 520 520 2008-SEPTEMBER 100 100 F/N N Previously Reported 100 100 2009-SEPTEMBER 234,254 0 Line Item Changes 0 0 2008-SEPTEMBER 134,725 0

Status Account NB Type A D Variance:

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

-2-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 12 General Property, Plant and Equipment, Net (Note 7) Status Account NB Type A D Variance: F/N B 2009-SEPTEMBER 38 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 52 0

Closing Package Line Reclassification Closing Package Line Description Property, Plant and Equipment Total: Line Agency Line Description 13 Other Assets (Note 8) Status F/N N 2009-SEPTEMBER 38 38 2008-SEPTEMBER 52 52 F/N N Previously Reported 52 52 2009-SEPTEMBER 546 0 Line Item Changes 0 0 2008-SEPTEMBER 37 0

Status Account NB Type A D Variance:

Closing Package Line Reclassification Closing Package Line Description Other Assets Total: Line Agency Line Description 19 Accounts Payable Status F/N N 2009-SEPTEMBER 546 546 2008-SEPTEMBER 37 37 F/N F Previously Reported 37 37 2009-SEPTEMBER 0 0 Line Item Changes 0 0 2008-SEPTEMBER 8 0

Status Account NB Type L C Variance:

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

-3-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 20 Debt (Note 9) Status Account NB Type L C Variance: F/N F 2009-SEPTEMBER 235,385 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 128,668 0

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

Status Account NB Type L C Variance:

Closing Package Line Reclassification Closing Package Line Description Accounts Payable Total: Line Agency Line Description 22 Payable to Treasury (Note 6) Status F/N F 2009-SEPTEMBER 2,414 (2,414) 2008-SEPTEMBER 1,663 (1,663) F/N F Previously Reported 1,663 (1,663) 2009-SEPTEMBER 3,569 0 Line Item Changes 0 0 2008-SEPTEMBER 3,766 0

Status Account NB Type L C Variance:

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

-4-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 23 Other Intragovernmental Liabilities (Note 10) Status Account NB Type L C Variance: F/N F 2009-SEPTEMBER 11,503 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 7,124 0

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

Status Account NB Type L C Variance:

Closing Package Line Reclassification Closing Package Line Description Accounts Payable Total: Line Agency Line Description 28 Accrued Grant Liability (Note 11) Status F/N N 2009-SEPTEMBER 1,919 (1,919) 2008-SEPTEMBER 1,296 (1,296) F/N N Previously Reported 1,296 (1,296) 2009-SEPTEMBER 2,962 0 Line Item Changes 0 0 2008-SEPTEMBER 2,245 0

Status Account NB Type L C Variance:

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

-5-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 29 Liabilities for Loan Guarantees (Note 6) Status Account NB Type L C Variance: F/N N 2009-SEPTEMBER 20,543 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 43,322 0

Closing Package Line Reclassification Closing Package Line Description Loan Guarantee Liabilities Total: Line Agency Line Description 30 Other Liabilities (Note 10) Status F/N N 2009-SEPTEMBER 20,543 (20,543) 2008-SEPTEMBER 43,322 (43,322) F/N N Previously Reported 43,322 (43,322) 2009-SEPTEMBER 590 0 Line Item Changes 0 0 2008-SEPTEMBER 145 0

Status Account NB Type L C Variance:

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

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

-6-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 38 Unexpended Appropriations -Other Funds Status Account NB Type E C Variance: F/N B 2009-SEPTEMBER 127,269 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 49,506 0

Closing Package Line Reclassification Closing Package Line Description Net Position-Non-Earmarked Funds Total: Line Agency Line Description 39 Cumulative Results of Operations - Earmarked Funds (Note 19) Status F/N B 2009-SEPTEMBER 127,269 (127,269) 2008-SEPTEMBER 49,506 (49,506) F/N B Previously Reported 49,506 (49,506) 2009-SEPTEMBER 8 0 Line Item Changes 0 0 2008-SEPTEMBER 17 0

Status Account NB Type E C Variance:

Closing Package Line Reclassification Closing Package Line Description Net Position-Earmarked Funds Total: Line Agency Line Description 40 Cumulative Results of Operations-Other Funds Status F/N B 2009-SEPTEMBER 8 (8) 2008-SEPTEMBER 17 (17) F/N B Previously Reported 17 (17) 2009-SEPTEMBER (217) 0 Line Item Changes 0 0 2008-SEPTEMBER (6,187) 0

Status Account NB Type E C Variance:

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

-7-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 3 Beginning Balances - Earmarked Funds Status Account NB Type BN C Variance: F/N B 2009-SEPTEMBER 17 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 39 0

Closing Package Line Reclassification Closing Package Line Description Beginning Net Position Total: Line Agency Line Description 4 Beginning Balances - All Other Funds Status F/N B 2009-SEPTEMBER 17 (17) 2008-SEPTEMBER 39 (39) F/N B Previously Reported 39 (39) 2009-SEPTEMBER (6,187) 0 Line Item Changes 0 0 2008-SEPTEMBER (2,505) 0

Status Account NB Type BN C Variance:

Closing Package Line Reclassification Closing Package Line Description Beginning Net Position Total: Line Agency Line Description 8 Other Adjustments (rescission, etc) - Earmarked Funds Status F/N B 2009-SEPTEMBER (6,187) 6,187 2008-SEPTEMBER (2,505) 2,505 F/N B Previously Reported (2,505) 2,505 2009-SEPTEMBER 0 0 Line Item Changes 0 0 2008-SEPTEMBER 0 0

Status Account NB Type F C Variance:

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

-8-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 9 Other Adjustments (rescission, etc) - All Other Funds Status Account NB Type F C Variance: F/N B 2009-SEPTEMBER 2 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER (6) 0

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

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

Line Agency Line Description 12 Appropriations Used-All Other Funds

Status Account NB Type F C Variance:

F/N B

2009-SEPTEMBER 86,863 0

2008-SEPTEMBER 73,330 0

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

-9-

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 14 Nonexpenditure Financing Sources - Transfers-Out - Earmarked Funds Status Account NB Type F C Variance: F/N F 2009-SEPTEMBER 0 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 0 0

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

Line Agency Line Description 15 Nonexpenditure Financing Sources - Transfers-Out - All Other Funds

Status Account NB Type F C Variance:

F/N F

2009-SEPTEMBER (18) 0

2008-SEPTEMBER (208) 0

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

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

- 10 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 20 Imputed Financing from Costs Absorbed by Others - All Other Funds Status Account NB Type F C Variance: F/N F 2009-SEPTEMBER 32 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 29 0

Closing Package Line Reclassification Closing Package Line Description Imputed Financing Source Total: Line Agency Line Description 22 Others - Earmarked Funds Status F/N F 2009-SEPTEMBER 32 (32) 2008-SEPTEMBER 29 (29) F/N B Previously Reported 29 (29) 2009-SEPTEMBER 0 0 Line Item Changes 0 0 2008-SEPTEMBER 0 0

Status Account NB Type F C Variance:

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

Line Agency Line Description 23 Others - All Other Funds

Status Account NB Type F C Variance:

F/N B

2009-SEPTEMBER (36,757) 0

2008-SEPTEMBER (12,032) 0

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

- 11 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 43 Beginning Balances - Earmarked Funds Status Account NB Type BN C Variance: F/N B 2009-SEPTEMBER 0 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 0 0

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

Line Agency Line Description 44 Beginning Balances - All Other Funds

Status Account NB Type BN C Variance:

F/N B

2009-SEPTEMBER 49,506 0

2008-SEPTEMBER 52,047 0

Closing Package Line Reclassification Closing Package Line Description Beginning Net Position Total: Line Agency Line Description 48 Approprations Received - Earmarked Funds Status F/N B 2009-SEPTEMBER 49,506 (49,506) 2008-SEPTEMBER 52,047 (52,047) F/N F Previously Reported 52,047 (52,047) 2009-SEPTEMBER 0 0 Line Item Changes 0 0 2008-SEPTEMBER 0 0

Status Account NB Type F C Variance:

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

- 12 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 49 Appropriations Received - All Other Funds Status Account NB Type F C Variance: F/N F 2009-SEPTEMBER 164,927 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 72,991 0

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

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

Line Agency Line Description 52 Appropriations Transferred - in/out - All Other Funds

Status Account NB Type F C Variance:

F/N F

2009-SEPTEMBER 1 0

2008-SEPTEMBER 0 0

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

- 13 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 54 Other Adjustments (rescissions, etc) - Earmarked Funds Status Account NB Type F C Variance: F/N B 2009-SEPTEMBER 0 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 0 0

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

Line Agency Line Description 55 Other Adjustments (rescissions, etc) - All Other Funds

Status Account NB Type F C Variance:

F/N B

2009-SEPTEMBER (302) 0

2008-SEPTEMBER (2,202) 0

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

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

- 14 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 58 Appropriations Used - All Other Funds Status Account NB Type F C Variance: F/N B 2009-SEPTEMBER (86,863) 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER (73,330) 0

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

- 15 -

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF003G-Closing Package Line Reclassification Summary Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Amounts reported as normal/(abnormal) balances. I = Inactive Line Line Agency Line Description 43 Total Gross costs Status Account NB Type GC D Variance: F/N B 2009-SEPTEMBER 55,412 0 Fiscal Year: 2009 Reported in: MILLIONS

11/16/2009 12:09:35

Period: SEPTEMBER Decimal Point: ZERO

2008-SEPTEMBER 74,034 0

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

Status Account NB Type ER C Variance:

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

- 16 -

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description BS Accounts Receivable Account Type A NB D Variance: Trading Name Partner 7500 Department of Health and Human Services Total Agency FS Status CP Line Description BS Advances to Others and Prepayments Status 2009-SEPTEMBER 0 0 Account Type A NB D Variance: Trading Name Partner 1400 Department of the Interior Total Status 2009-SEPTEMBER 141 141 2008-SEPTEMBER 95 95 2008-SEPTEMBER 2 2 2009-SEPTEMBER 0 0 Previously Reported 2 2 2009-SEPTEMBER 141 0 Previously Reported 95 95 2008-SEPTEMBER 2 0 Line item Changes 0 0 2008-SEPTEMBER 95 0 Line item Changes 0 0

-1-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description BS Accounts Payable Account Type L NB C Variance: Trading Name Partner 1400 Department of the Interior 4700 General Services Administration 9900 Treasury General Fund Total Agency FS Status CP Line Description BS Advances from Others and Deferred Credits Status 2009-SEPTEMBER 0 0 2,414 (2,414) Account Type L NB C Variance: Trading Name Partner 1200 Department of Agriculture 2800 Social Security Administration 3600 DEPARTMENT OF VETERANS AFFAIRS 4900 National Science Foundation 7500 Department of Health and Human Services Total Status 2009-SEPTEMBER 1 1 1 2 91 (96) 2008-SEPTEMBER 1 1 1 1 87 (91) 2008-SEPTEMBER 2 1 1,660 (1,663) 2009-SEPTEMBER 2,414 0 Previously Reported 2 1 1,660 (1,663) 2009-SEPTEMBER 96 0 Previously Reported 1 1 1 1 87 (91) 2008-SEPTEMBER 1,663 0 Line item Changes 0 0 0 0 2008-SEPTEMBER 91 0 Line item Changes 0 0 0 0 0 0

-2-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description BS Benefit Program Contributions Payable Account Type L NB C Variance: Trading Name Partner 1601 Department of Labor 2400 Office of Personnel Management Total Agency FS Status CP Line Description BS Interest Payable Status 2009-SEPTEMBER 3 4 (7) Account Type L NB C Variance: Trading Name Partner 2000 Department of the Treasury Total Status 2009-SEPTEMBER 16 (16) 2008-SEPTEMBER 0 0 2008-SEPTEMBER 3 4 (7) 2009-SEPTEMBER 7 0 Previously Reported 3 4 (7) 2009-SEPTEMBER 16 0 Previously Reported 0 0 2008-SEPTEMBER 7 0 Line item Changes 0 0 0 2008-SEPTEMBER 0 0 Line item Changes 0 0

-3-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: BALANCE SHEET Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description BS Loans Payable Account Type L NB C Variance: Trading Name Partner 2000 Department of the Treasury Total Agency FS Status CP Line Description BS Other Liabilities (without reciprocals) Status 2009-SEPTEMBER 235,369 (235,369) 2008-SEPTEMBER 128,668 (128,668) 2009-SEPTEMBER 235,369 0 Previously Reported 128,668 (128,668) 2008-SEPTEMBER 128,668 0 Line item Changes 0 0

Account Type L

NB C Variance:

2009-SEPTEMBER 14,969 0 Previously Reported 0 0 (2) (2) (1) 10,801 4 (10,800)

2008-SEPTEMBER 10,800 0 Line item Changes 0 0 0 0 0 0 0 0

Trading Name Partner 1400 Department of the Interior 2000 Department of the Treasury 2400 Office of Personnel Management 4700 General Services Administration 7000 Department of Homeland Security 9900 Treasury General Fund 9999 Unidentified Total

Status 2009-SEPTEMBER (1) 2 0 (11) 0 14,973 6 (14,969)

2008-SEPTEMBER 0 0 (2) (2) (1) 10,801 4 (10,800)

-4-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description SCNP Nonexpenditure Transfers-out of unexpended appropriations and financing sources Trading Name Partner 9900 Treasury General Fund Total Agency FS Status CP Line Description SCNP Imputed Financing Source Account Type CF NB D Variance: 2008-SEPTEMBER 208 208 2009-SEPTEMBER 18 0 Previously Reported 208 208 2008-SEPTEMBER 208 0 Line item Changes 0 0

Status

2009-SEPTEMBER 18 18

Account Type F

NB C Variance:

2009-SEPTEMBER 32 0 Previously Reported 29 (29)

2008-SEPTEMBER 29 0 Line item Changes 0 0

Trading Name Partner 2400 Office of Personnel Management Total

Status 2009-SEPTEMBER 32 (32)

2008-SEPTEMBER 29 (29)

-5-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF CHANGES IN NET POSITION Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description SCNP Other budgetary financing sources Account Type F NB C Variance: Trading Name Partner 9900 Treasury General Fund Total Agency FS Status CP Line Description SCNP Other non-budgetary financing sources Status 2009-SEPTEMBER (622) 622 2008-SEPTEMBER 667 (667) 2009-SEPTEMBER (622) 0 Previously Reported 667 (667) 2008-SEPTEMBER 667 0 Line item Changes 0 0

Account Type F

NB C Variance:

2009-SEPTEMBER (36,134) 0 Previously Reported (12,699) 12,699

2008-SEPTEMBER (12,699) 0 Line item Changes 0 0

Trading Name Partner 9900 Treasury General Fund Total

Status 2009-SEPTEMBER (36,134) 36,134

2008-SEPTEMBER (12,699) 12,699

-6-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description NCS Borrowing and Other Interest Revenue (Exchange) Account Type ER NB C Variance: Trading Name Partner 2000 Department of the Treasury Total Agency FS Status CP Line Description NCS Borrowings Gains Status 2009-SEPTEMBER 3,815 (3,815) 2008-SEPTEMBER 3,227 (3,227) 2009-SEPTEMBER 3,815 0 Previously Reported 3,227 (3,227) 2008-SEPTEMBER 3,227 0 Line item Changes 0 0

Account Type ER

NB C Variance:

2009-SEPTEMBER 0 0 Previously Reported 189 (189)

2008-SEPTEMBER 189 0 Line item Changes 0 0

Trading Name Partner 9900 Treasury General Fund Total

Status 2009-SEPTEMBER 0 0

2008-SEPTEMBER 189 (189)

-7-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description NCS Buy/Sell Revenue Account Type ER NB C Variance: Trading Name Partner 1200 Department of Agriculture 1601 Department of Labor 7000 Department of Homeland Security 7500 Department of Health and Human Services 9900 Treasury General Fund Total Agency FS Status CP Line Description NCS Benefit Program Costs Status 2009-SEPTEMBER 1 0 1 72 831 (905) Account Type GC NB D Variance: Trading Name Partner 1400 Department of the Interior 2400 Office of Personnel Management Total Status 2009-SEPTEMBER 24 78 102 2008-SEPTEMBER 0 75 75 2008-SEPTEMBER 1 1 1 72 730 (805) 2009-SEPTEMBER 905 0 Previously Reported 1 1 1 72 730 (805) 2009-SEPTEMBER 102 0 Previously Reported 0 75 75 2008-SEPTEMBER 805 0 Line item Changes 0 0 0 0 0 0 2008-SEPTEMBER 75 0 Line item Changes 0 0 0

-8-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description NCS Borrowing Losses Account Type GC NB D Variance: Trading Name Partner 9900 Treasury General Fund Total Agency FS Status CP Line Description NCS Borrowing and Other Interest Expense Status 2009-SEPTEMBER 130 130 2008-SEPTEMBER 150 150 2009-SEPTEMBER 130 0 Previously Reported 150 150 2008-SEPTEMBER 150 0 Line item Changes 0 0

Account Type GC

NB D Variance:

2009-SEPTEMBER 9,888 0 Previously Reported 6,709 6,709

2008-SEPTEMBER 6,709 0 Line item Changes 0 0

Trading Name Partner 2000 Department of the Treasury Total

Status 2009-SEPTEMBER 9,888 9,888

2008-SEPTEMBER 6,709 6,709

-9-

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description NCS Buy/Sell Costs Account Type GC NB D Variance: Trading Name Partner 1300 Department of Commerce 1400 Department of the Interior 1500 Department of Justice 1601 Department of Labor 1800 United States Postal Service 1900 Department of State 2000 Department of the Treasury 2400 Office of Personnel Management 4700 General Services Administration 4900 National Science Foundation 6900 Department of Transportation 7000 Department of Homeland Security 7500 Department of Health and Human Services 8900 Department of Energy 9500 Independent and Other Agencies 9900 Treasury General Fund DE00 Department of Defense Total Status 2009-SEPTEMBER 21 146 1 12 0 2 3 8 97 1 3 1 9 0 10 (1) 22 335 2008-SEPTEMBER 21 102 0 12 2 2 1 5 102 1 3 1 8 1 12 4 18 295 2009-SEPTEMBER 335 0 Previously Reported 21 102 0 12 2 2 1 5 102 1 3 1 8 1 12 4 18 295 2008-SEPTEMBER 295 0 Line item Changes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

- 10 -

U.S.Department of the Treasury Financial Management Service Governmentwide Financial Report System GF004F - Trading Partner Summary Note Report
Statement: STATEMENT OF NET COST Entity: 9100 - Department of Education Fiscal Year: 2009 Reported in: MILLIONS

11-16-2009 12:09:11

Period: SEPTEMBER Decimal Point: ZERO

Amounts presented as debits and credits() I = Inactive Line Agency FS Status CP Line Description NCS Imputed Costs Account Type GC NB D Variance: Trading Name Partner 2400 Office of Personnel Management Total Status 2009-SEPTEMBER 32 32 2008-SEPTEMBER 29 29 2009-SEPTEMBER 32 0 Previously Reported 29 29 2008-SEPTEMBER 29 0 Line item Changes 0 0

- 11 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 01 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: B Section Name: Related Parties ¿ External to the Reporting Entity for the Financial Report NB Debit Credit Credit Debit Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: Millions Line Item Changes Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 01 Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 2 3 4 5 Related party receivables Related party payables Related party operating revenue Related party net cost of operations Related party economic dependency transactions Investments in related parties

6

Debit

-1-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 01 Entity: 9100 Status: Complete Tab: Text Data Line 1 2 3 Question Describe any significant events that occured after the date of the balance sheet but prior to the agency's audited financial statements being issued. Describe any departures from U.S. Generally Accepted Accounting Procedures (GAAP). Describe any change in accounting if a collecting entity adopts accounting standards that embody a fuller application of accrual accounting concepts that differs from that prescribed by the standard-SFFAS no. 7, par.64. List all of the agency's components whose balances and activities are not combined into the agency's financial statements and therefore, are not represented in the GFRS data. List all of the agency's components whose balances and activities are combined into the agency's financial statements, and, therefore, are represented in the GFRS data. Answer Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 01 Period: SEPTEMBER

4 5

The components whose balances and activities are combined into the financial statements and presented in the GFRS data are Federal Student Aid (FSA), Office of Elementary and Secondary Education (OESE), Office of Special Education and Rehabilitative Services (OSERS), Office of Vocational and Adult Education (OVAE), Office of Postsecondary Education (OPE), Institute of Education Sciences (IES), Office of English Language Acquisition (OELA), Office of Safe and Drug-Free Schools (OSDFS), Office of Innovation and Improvement (OII) and Office of Management (OM).

6 7 8

9

10

11 12 13

14 15

Describe the nature of the related party relationship and transactions pertaining to the amount in the Other Notes Info tab, Related party receivables line. Describe the nature of the related party relationship and transactions pertaining to the amount in the Other Notes Info tab, Related party payables¿ line. 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. 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. 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. Provide details on the investments in related parties. Provide details on related party leases. 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. Provide any other useful information on related parties. Provide any other relevant information pertaining to this note.

The Budget and Accounting Procedures Act of 1950 allows the Secretary of the Treasury to stipulate the format and requirements of executive agencies to furnish financial and operational information to the President and the Congress to comply with the Government Management Reform Act of 1994 (GMRA) (Pub. L. No. 103-356), which requires the Secretary of the Treasury to prepare and submit annual audited financial statements of the executive branch. The Secretary of the Treasury developed

-2-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 01 Entity: 9100 Status: Complete Tab: Text Data Line Question Answer guidance in the U.S. Department of the Treasury's Financial Manual (TFM) Volume I, Part 2, Chapter 4700 to provide agencies with instructions to meet the requirements of GMRA. The TFM Chapter 4700 requires agencies to: 1. Reclassify all items and amounts on the audited consolidated, department-level balance sheet, statements of net cost, changes in net position/income statement and custodial activity, if applicable, to the special-purpose financial statements; 2. Disclose special-purpose financial statement line item amounts identified as Federal by trading partner and amount (amounts should be net of intra-agency and intradepartmental eliminations); 3. Disclose notes required by Balance Sheet line items and other notes required in the Financial Report of the U.S. Government (FR); and 4. Disclose other data not contained in the primary FR financial statements and notes required to meet GAAP requirements. Federal Reserve Earnings, Subsequent Events, and Other Pertinent Information Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 01 Period: SEPTEMBER

-3-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 02 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Cash and Other Monetary Assets Line Status Line Description 3 4 5 7 8 Threshold Line Description Line Item Notes - Other cash - restricted (2009 SEPTEMBER) Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer This change reflects the impact of guaranty agencies ongoing operations and guaranty agency reserve upward adjustment for year-end loan loss reserve. I Other cash - not restricted Other cash - restricted International monetary assets Domestic monetary assets Foreign currency Total 2009 - SEPTEMBER NB D Account Type A Variance: 2009 - SEPTEMBER 2,414 0 Previously Rptd 2008 - SEPTEMBER 1,663 0 Line Item Changes Cash and Other Monetary Assets Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 02 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

2,414

1,663

1,663

0

2,414

1,663

1,663

0

-4-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 02 Entity: 9100 Status: Complete Tab: Text Data Line 1 2 Question Describe the nature of the amount in the line item "other cash - not restricted." Describe the restrictions on the cash reported in the line item "Other cash - restricted" and any statutory authority (law, regulation, or agreement). Answer Cash and Other Monetary Assets consist of guaranty agency reserves that represent 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. Cash and Other Monetary Assets consist of reserves held in the FFEL Guaranty Agency Federal Funds. Cash and Other Monetary Assets Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 02 Period: SEPTEMBER

3 4 5 6 7 8 9

If the cash is restricted because it is non-entity, state the entity for which the cash is being held. Is the reported restricted cash being held in a financial institution? If yes, is it a Treasury designated bank? If the agency has restricted cash, is the restricted cash invested? If yes, is it invested in the Bureau of the Public Debt security, agency security, and/or non-Federal security? Describe the nature of the amount in the line item "Foreign currency." Disclose any restrictions on the use (for example, by law, regulation, or agreement) of the amount in the line item "Foreign Currency." Disclose the method of exchange rate used on the financial statement date (Treasury exchange rate or prevailing market rate). Provide any other relevant information pertaining to this note.

-5-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 03 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Accounts and Taxes Receivable Line Status Line Description 1 2 Accounts receivable, gross Related interest receivable - accounts receivable Penalties, fines, and administrative fees receivable Less: allowance for loss on accounts receivable Less: allowance for loss on interest receivable Less: allowance for loss on penalties, fines, and admin. fees rec. Total 2009 - SEPTEMBER 693 NB D Account Type A Variance: 2009 - SEPTEMBER 520 0 Previously Rptd 278 278 2008 - SEPTEMBER 100 0 Line Item Changes 0 Accounts and Taxes Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 03 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

3

4

-173

-178

-178

0

5

6

520

100

100

0

Threshold Line Description Line Item Notes - Accounts receivable, gross (2009 SEPTEMBER) Tab: Text Data Line 1 Question Describe the method(s) used to calculate the allowances on accounts receivable. Answer 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. Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer This increase is primarily due to excess interest recapture (negative special allowance payments) for the FFEL program.

3 4

Explain any material difference between the balance of accounts receivable and the amounts reported on the Treasury Report on Receivables. Provide any other relevant information pertaining to this note.

-6-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04A Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Loans Receivable Line Status Line Description 1 4 14 15 16 17 18 19 Federal Direct Student Loans Federal Family Education Loan Perkins Loan Program TEACH Grant Program Facilities Loan Program CY: Face Value of Loans Oustanding 156,807 84,034 306 50 660 NB D Account Type A Variance: 2009 - SEPTEMBER 234,254 0 CY Net Loans 152,771 80,954 184 50 295 2008 - SEPTEMBER 134,725 0 Direct Loans Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04A Period: SEPTEMBER

Rounding Method: Millions PY: Long-Term Cost of Loans 13,743 8,150 124 1 380

Decimal: Zero PY Net Loans 109,850 24,509 186 1 179

CY: Long-Term Cost of Loans 4,036 3,080 122 0 365

PY: Face Value of Loans Oustanding 123,593 32,659 310 2 559

All other loans receivable Total

241,857

7,603

234,254

157,123

22,398

134,725

Threshold Line Description Line Item Notes - Federal Direct Student Loans (CY: Face Value of Loans Oustanding) Line Item Notes - Federal Direct Student Loans (CY: LongTerm Cost of Loans) Line Item Notes - Federal Family Education Loan (CY: Face Value of Loans Oustanding) Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer New loan originations and consolidations, net of collections from borrowers.

The decrease is primarily due to downward subsidy re-estimates and negative subsidy transfers that decreased allowance for subsidy. The increase is primarily a reflection of the impact of a fully year of activity in the ECALSA activities (loan participation purchases and loan purchase commitments), which first had activity in August FY 2008. The increase also includes ABCP conduit activity (implemented during FY 2009) and FFEL guaranteed default claim payments made during FY 2009. The decrease is primarily due to negative subsidy transfers in the loan participation purchase and loan purchase commitment activities. The TEACH Grant Program was a new program implemented in July FY 2008; the increase reflects the impact of a full year of activity.

Line Item Notes - Federal Family Education Loan (CY: LongTerm Cost of Loans) Line Item Notes - TEACH Grant Program (CY: Face Value of Loans Oustanding)

Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited)

-7-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04A Entity: 9100 Status: Complete Direct Loans Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04A Period: SEPTEMBER

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

-8-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04A Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Subsidy Expense NB Debit Debit Debit Debit Debit Debit Debit All other loans receivable Total Section: B Debit N/A -13,690 1 5,067 No Data Flag: YES Previously Rptd 1 5,067 0 0 Line Attributes: Dollars Rounding Method: Millions Line Item Changes Decimal: Zero 2009 - SEPTEMBER -9,603 -4,085 -2 2008 - SEPTEMBER 5,236 -170 0 Previously Rptd 5,236 -170 Line Attributes: Dollars Rounding Method: Millions Line Item Changes 0 0 0 Direct Loans Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04A Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 4 14 15 16 17 18 19 20 Federal Direct Students Loans Federal Family Education Loan TEACH Grant Subsidy Expense

Section Name: Foreclosed Assets - Balances (SFFAS No. 3, par. 91) NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER

Line Status Line Description 1 Balances for property held Pre1992 Balances for property held Post1991

2

Debit

-9-

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04A Entity: 9100 Status: Complete Tab: Text Data Line 1 2 Question Provide a broad description of foreclosed property. Provide any other relevant information pertaining to this note. Answer The Department administers the William D. Ford Federal Direct Student Loan (Direct Loan) Program, to help students finance the costs of higher education. The Direct Loan Program, authorized by the Student Loan Reform Act of 1993, enables the Department to make loans directly to eligible undergraduate and graduate students and their parents through participating schools. Under this program, loans are made to individuals who meet statutorily set eligibility criteria and attend eligible institutions of higher education-public or private two- and four-year institutions, graduate schools, and vocational training schools. Direct Loans Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04A Period: SEPTEMBER

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

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

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

- 10 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04A Entity: 9100 Status: Complete Tab: Text Data Line Question Answer Program was implemented beginning July 1, 2008. This program, added to the HEA by the College Cost Reduction and Access Act (CCRAA), awards annual grants to students who agree to teach in a high-need subject area in a public or private elementary or secondary school that serves low-income students. Direct Loans Receivable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04A Period: SEPTEMBER

- 11 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04B Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Loan Guarantee Liabilities Line Status Line Description 1 13 14 15 16 17 18 Federal Family Education Loans Federal Family Education Loans 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 20,543 0 Previously Rptd 2008 - SEPTEMBER 43,322 0 Line Item Changes Loan Guarantees Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04B Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

20,543

43,322

43,322

0

All other loan guarantee liabilities Total

20,543

43,322

43,322

0

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

- 12 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 04B Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Other Related Information NB N/A N/A N/A N/A N/A N/A N/A N/A 457,279 445,439 -25,855 414,603 405,139 -2,682 CY Face Value of Loans Outstanding D 457,279 CY Amount Guaranteed by the Government D 445,439 CY Subsidy Expense D -25,855 Line Attributes: Dollars Rounding Method: Millions Loan Guarantees Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 04B Period: SEPTEMBER

Decimal: Zero PY Subsidy Expense D -2,682

Line Status Line Description 1 13 14 15 16 17 All other loans guarantee liabilities 19 Total: Tab: Text Data Line 1 18 Federal Family Education Loans

PY Face Value of Loans PY Amount Guaranteed by Outstanding D the Government D 414,603 405,139

Question Provide any other relevant information pertaining to this note.

Answer The Department administers the Federal Family Education Loan (FFEL) Program, to help students finance the costs of higher education. The FFEL Program, initially authorized by the Higher Education Act of 1965 (HEA), as amended, cooperates with state and private nonprofit Guaranty Agencies to provide loan guarantees and interest subsidies on loans made by private lenders to eligible students. Under this program, loans are made to individuals who meet statutorily set eligibility criteria and attend eligible institutions of higher education-public or private two- and four-year institutions, graduate schools, and vocational training schools.

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

- 13 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 05 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Inventory and Related Property Line Status Line Description 1 Gross Inventory balance beginning of year Prior-period adjustment (not restated) Capitalized acquisitions from the public Capitalized acquisitions from Government agencies Inventory sold or used Total allowance for inventories and related property Total 2009 - SEPTEMBER NB D Account Type A Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Inventories and Related Property Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

2

3

4

5 6

- 14 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 05 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Inventory Yearend Balances by Category Type NB Debit Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: Millions Line Item Changes Inventories and Related Property Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 2 Inventory purchased for sale Inventory held in reserve for future sale to the public Inventory and operating material and supplies held for repair Inventory - excess, obsolete, and unserviceable Operating materials and supplies held for use Operating materials and supplies held in reserve for future use Operating materials and supplies excess, obsolete, and unserviceable Stockpile materials Stockpile materials held for sale Forfeited property Other related property Total allowance for inventories and related property Total inventories and related property, net

3

Debit

4

Debit

5

Debit

6

Debit

7

Debit

8 9 10 11 12

Debit Debit Debit Debit Credit

13

N/A

- 15 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 05 Entity: 9100 Status: Complete Inventories and Related Property Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Capitalized Acquitions From Government Agencies by Trading Patrner NB Debit Debit Debit Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Changes N/A Period: SEPTEMBER

Section: B

Decimal: Zero

Line Status Line Description 1 2 3 4 General Services Administration Department of Defense Department of Justice National Aeronautics and Space Administration All other departments Total Capitalized Assets from Federal Agencies Section: C

5 6

Debit N/A

Section Name: Other Information - Dollar Value NB Debit Debit Debit 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes

Decimal: User-Defined

Line Status Line Description 1 2 3 Seized property Forfeited property Goods held under price support and stabilization programs

- 16 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 05 Entity: 9100 Status: Complete Inventories and Related Property Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other Information - Number of Items/Volume NB N/A N/A N/A 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units Line Item Changes N/A Period: SEPTEMBER

Section: D

Line Status Line Description 1 2 3 Seized property Forfeited property Goods held under price support and stabilization programs

Tab: Text Data Line 1 2 3

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

- 17 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 06 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Property, Plant and Equipment Line Status Line Description 1 2 PP&E - balance beginning of year Prior-period adjustments (not restated) Capitalized acquisitions from the public Capitalized acquisitions from Government agencies Deletions from the Balance Sheet Revaluations Stewardship reclassifications Depreciation/amortizati on Total CY PP&E 155 NB D Account Type A Variance: 2009 - SEPTEMBER 38 0 CY Net PP& E 103 52 2008 - SEPTEMBER 52 0 PY PP&E 132 Property, Plant, and Equipment Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 06 Period: SEPTEMBER

Rounding Method: Millions PY Accum. Depr. 86

Decimal: Zero PY Net PP&E 46

CY Accum. Depr.

3

8

8

23

23

4

5 6 7 8

22 163 125

-22 38 155

17 103

-17 52

- 18 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 06 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Gross cost for PP&E for each category NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER Previously Rptd Line Attributes: Dollars Rounding Method: Millions Line Item Changes Property, Plant, and Equipment Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 06 Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 Buildings, structures, and facilities (including improvement to land) Furniture, fixtures, and equipmen (including aircraf,ships, vessels, small boats, and vehicles) Construction in progress Land and Land Rights Internal use software Assets under capital lease Leasehold improvements Other property, plant and equipment Total property, plant and equipment

2

Debit

3

3

3

0

3 4 5 6 7 8

Debit Debit Debit Debit Debit Debit 160 152 152 0

9

N/A

163

155

155

0

- 19 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 06 Entity: 9100 Status: Complete Property, Plant, and Equipment Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Accumulated Depreciation/Amortization NB Credit 2009 - SEPTEMBER 2008 - SEPTEMBER Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Changes Note 06 Period: SEPTEMBER

Section: B

Decimal: Zero

Line Status Line Description 1 Buildings, structures, and facilities (including improvements to land) Furniture, fixtures, and equipment (including aircraft, ships, vessels, small boats, and vehicles) Internal use software Assets under capital lease Leasehold improvements Other property, plant, and equipment Total accumulated depreciation/amorti zation Section: C

2

Credit

3

3

3

0

3 4 5 6

Credit Credit Credit Credit

122

100

100

0

7

N/A

-125

-103

-103

0

Section Name: Intragovernmental Capitalized acquisition amounts NB Debit Debit Debit Debit Debit 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: Millions Line Item Changes

Decimal: Zero

Line Status Line Description 1 2 3 4 5 General Services Administration Department of Defense Department of the Interior Department of Justice National Aeronautics and Space Administration

- 20 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 06 Entity: 9100 Status: Complete Property, Plant, and Equipment Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Intragovernmental Capitalized acquisition amounts NB Debit N/A 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Changes Note 06 Period: SEPTEMBER

Section: C

Decimal: Zero

Line Status Line Description 6 7 All other departments Total capitalized assets from Federal agencies

Section: D

Section Name: Gain/Loss on Sale/Disposition NB Credit 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes

Decimal: User-Defined

Line Status Line Description 1 Gain/loss on sale/disposition of property, plant and equipment

Tab: Text Data Line 1 2 3

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

- 21 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Securities and Investments Line Status Line Description 1 Fixed/Debt Securities (FASB 115 par 6 and 19): Non-U.S. Government Securities Fixed/Debt Securities (FASB 115 par 6 and 19): Commercial Securities Fixed/Debt Securities (FASB 115 par 6 and 19): Mortgage/asset backed Securities Fixed/Debt Securities (FASB 115 par 6 and 19):Corporate and other bonds Fixed/Debt Securities (FASB 115 par 6 and 19) All:Other fixed/debt securities Equity Securities (FASB 115 par 6 and 19): Common Stocks Equity Securities (FASB 115 par 6 and 19): Unit Trusts Equity Securities (FASB 115 par 6 and 19): Other Equity Securities Other Total 2009 - SEPTEMBER NB D Account Type A Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

2

3

4

5

6

7

8

9

- 22 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Investment Category - Held-to-Maturity Securities NB N/A CY Basis (Costs) D CY Unamortized Premium/Discount D No Data Flag: YES CY Net Investment Line Attributes: Dollars Rounding Method: Millions PY Basis (Costs) D Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: Zero PY Unamortized Premium/Discount D PY Net Investment

Line Status Line Description 1 Fixed/Debt Securities: NonU.S. Government securities Fixed/Debt Securities: NonU.S. Commercial securities Fixed/Debt Securities: Mortgage/asset backed securities Fixed/Debt Securities: Corporate and other bonds Fixed/Debt Securities: Other fixed/debt securities Equity Securities: Common stocks Equity Securities: Unit trusts Equity Securities: All Other equity securities Other Total Held-toMaturity Securities

2

N/A

3

N/A

4

N/A

5

N/A

6 7 8

N/A N/A N/A

9 10

N/A N/A

- 23 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Investment Category - Available-for-Sale Securities NB N/A CY Basis (Costs) D CY Unrealized Gain/Loss D No Data Flag: YES CY Market Value Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions PY Basis (Costs) D N/A Period: SEPTEMBER

Section: B

Decimal: Zero PY Market Value

Line Status Line Description 1 Fixed/Debt Securities: Non-US Government securities Fixed/Debt Securities: Commercial securities Fixed/Debt Securities: Mortgage/asset backed securities Fixed/Debt Securities: Corporate and other bonds Fixed/Debt Securities: All other fixed/debt securities Equity Securities: Common stocks Equity Securities: Common stocks Equity Securities: All other equity securities Other Total Availablefor-Sale Securities

PY Unrealized Gain/Loss D

2

N/A

3

N/A

4

N/A

5

N/A

6 7 8

N/A N/A N/A

9 10

N/A N/A

- 24 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Investment Category - Trading Securities NB N/A CY Basis (Costs) D CY Unrealized Gain/Loss D No Data Flag: YES CY Market Value Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions PY Basis (Costs) D N/A Period: SEPTEMBER

Section: C

Decimal: Zero PY Market Value

Line Status Line Description 1 Fixed/Debt Securities: Non-US Government securities Fixed/Debt Securities: Commercial securities Fixed/Debt Securities: Mortgage/asset backed securities Fixed/Debt Securities: Corporate and other bonds Fixed/Debt Securities: All other fixed/debt securities Equity Securities: Common stocks Equity Securities: Unit trusts Equity Securities: All other equity securities Other Total Trading Securities

PY Unrealized Gain/Loss D

2

N/A

3

N/A

4

N/A

5

N/A

6 7 8

N/A N/A N/A

9 10

N/A N/A

- 25 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other Information (FASB 115, pars. 21a, 21c, 21d, 21e, and 22) NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Change N/A Period: SEPTEMBER

Section: D

Decimal: Zero

Line Status Line Description 1 Proceeds from sales of availablefor-sale securities Gross realized gains (included in earnings) from sales of availablefor-sale securities Gross realized losses (included in earnings) from sales of availablefor-sale securities Gross gains included in earnings from s from transfers of securities from available-for-sale into trading Gross losses included in earnings from s from transfers of securities from available-for-sale into trading Net unrealized holding gain on available-for-sale securities included in accumulated other comprehensive income Net unrealized holding loss on available-for-sale securities included in accumulated other comprehensive

2

Debit

3

Credit

4

Debit

5

Credit

6

Debit

7

Credit

- 26 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 07 Entity: 9100 Status: Complete Securities and Investments (Financial Accounting Standards Board (FASB) Statement No 115) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other Information (FASB 115, pars. 21a, 21c, 21d, 21e, and 22) NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Change N/A Period: SEPTEMBER

Section: D

Decimal: Zero

Line Status Line Description income Amount of gains/losses reclassified out of accumulated other comprehensive income into earnings for the period 9 Portion of trading gains/losses that relates to trading securities still held at the reporting date 10 Net carrying amount of sold/transferred held-to-maturity securities 11 Net gain/loss in accum. other comp. income for any derivative that hedged the forecasted acquisition of HTM security Tab: Text Data Line 1 2 3 8

Debit

Debit

Debit

No Data Flag: YES Answer

4 5

Question Provide a description of the amounts reported on the "Line Item Notes" tab for lines 5, 8 and 9. Provide a description of the amounts reported on the "Other Notes Infor" tab for lines 5, 8 and 9 in Sections A through C. Provide the basis on which the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings was determined (FASB 115 par 21b). Provide the circumstances leading to the decision to sell or transfer the security for held-tomaturity securities (FASB 115 par 22). Provide any other relevant information pertaining to this note.

- 27 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 08 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Other Assets Line Status Line Description 1 2 3 Threshold Line Description Line Item Notes - Other Assets (2009 - SEPTEMBER) Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer The increase is due to an increase in in-process invoices for FFEL interest benefits and special allowance payments to lenders, and payments made to grant recipients in advance of their expenditures. Advances and prepayments Regulatory Assets Other Assets Total 2009 - SEPTEMBER NB D Account Type A Variance: 2009 - SEPTEMBER 546 0 Previously Rptd 2008 - SEPTEMBER 37 0 Line Item Changes Other Assets Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 08 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

546 546

37 37

37 37

0 0

Tab: Text Data Line 1 2 3

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

- 28 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 09 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Accounts Payable Line Status Line Description 1 Threshold Line Description Line Item Notes - Accounts Payable (2009 - SEPTEMBER) Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer The change is primarily due to an increase of in-transit disbursements for FFEL interest benefits, defaulted claim payments, grants, and Direct Loans. Accounts Payable Total 2009 - SEPTEMBER 1,919 1,919 NB C Account Type L Variance: 2009 - SEPTEMBER 1,919 0 Previously Rptd 1,296 1,296 1,296 1,296 2008 - SEPTEMBER 1,296 0 Line Item Changes 0 0 Accounts Payable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 09 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

- 29 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 10B Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Investments in Federal Debt securities NB N/A N/A N/A All other programs and funds Total N/A N/A NB N/A N/A N/A N/A N/A No Data Flag: YES Line Attributes: Dollars Rounding Method: Millions CY Net Investment Decimal: Zero PY Unamortized premium D PY Net Investment CY Par value of the investment D No Data Flag: YES Line Attributes: Dollars Rounding Method: User-Defined CY Net Investment Treasury securities held by the Government trust, revolving, and special funds Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: User-Defined

Line Status Line Description 23 24 25 26 27

CY Unamortized CY Unamortized premium Discount C D

PY Par Value of the PY Unamortized discount investment D C

Line Status Line Description 23 24 25 26 27

All other programs and funds Total Section: B

Section Name: Fiduciary Funds - Tresury Securities Held by Deposit Funds with Fiduciary - Activity NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A CY Par value of the investment D

Line Status Line Description 1 2 3 4 5 6 7 8 9 10 11 12

CY Unamortized discount CY Unamortized premium C D

- 30 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 10B Entity: 9100 Status: Complete Treasury securities held by the Government trust, revolving, and special funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Fiduciary Funds - Tresury Securities Held by Deposit Funds with Fiduciary - Activity NB N/A N/A N/A CY Par value of the investment D No Data Flag: YES Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions CY Net Investment N/A Period: SEPTEMBER

Section: B

Decimal: Zero

Line Status Line Description 13 14 15

CY Unamortized discount CY Unamortized premium C D

Section: C

Section Name: Fiducuiary Funds-Treasury Securities Held by All Other Agency Funds with Fiduciary Activity NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A CY Par value of the investment D

No Data Flag: YES

Line Attributes: Dollars Rounding Method: Millions CY Net Investment

Decimal: Zero

Line Status Line Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

CY Unamortized discount CY Unamortized premium C D

- 31 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 10B Entity: 9100 Status: Complete Treasury securities held by the Government trust, revolving, and special funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Tresury Secrities Held be Governmnet Trust Funds, Revolving Funds, and Special Funds (to be completed only by Treasury) NB N/A NB N/A PY Unamortized premium D PY Net Investment CY Par value of the investment D No Data Flag: YES Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: User-Defined CY Net Investment N/A Period: SEPTEMBER

Section: D

Decimal: User-Defined

Line Status Line Description 26 Total

CY Unamortized CY Unamortized premium Discount C D

PY Par Value of the PY Unamortized Discount investment D C

Line Status Line Description 26 Total

- 32 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Federal Employee and Veteran Benefits Payable Line Status Line Description 1 2 3 Pension and accrued benefits Post-retirement health and accrued benefits Veteran's compensation and burial benefits Life Insurance and accrued benefits FECA Benefits Liability for other retirement and postemployment benefits Total 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 16 0 Previously Rptd 2008 - SEPTEMBER 16 0 Line Item Changes Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 11 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

4 5 6

16

16

16

0

16

16

16

0

- 33 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Pension and Accrued Benefits Liability-To be completed for the amount entered for pension and accrued benefits in the "Line Item Notes" tab NB Credit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Line Attributes: Dollars Rounding Method: Millions Line Item Changes Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 11 Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 Pension and accrued benefits liability- beginning of period Prior-period adjustments(not restated) Prior (and past) service costs from plan amendments (or the initiation of a new plan) during the period Assumption Change Liability Normal Costs (SFFAS No. 5, par. 72) Interest on pension liability during the period Prior (and past) service cost (from the initiation of a new plan) Actuarial (gains)/losses Total pension expense (SFFAS No. 5, par.72) Less Benefits Paid Pension and Accrued Benefits Liability-end of period

Previously Rptd

2

Credit

3

Credit

4 5

Credit Credit

6

Credit

7

Credit

8 9

Credit N/A

10 11

Debit N/A

- 34 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Pension Liability Long-Term Significant Assumptions Used in 2008 and 2007 Valuation (SFFAS No. 5, par.67) NB N/A N/A N/A 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Percent Note 11 Period: SEPTEMBER

Section: B

Line Status Line Description 1 2 3 Rate of Interest Rate of inflation Projected salary increases

Previously Rptd

Line Item Changes

Section: C

Section Name: Postretirement Health and Accrued Benefits NB Credit 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: Millions Line Item Changes

Decimal: Zero

Line Status Line Description 1 Postretirement health and accrued benefits liabilitybeginning of period (SFFAS No. 5, par.88) Prior-period adjustments (not restated) Prior (and past) service costs from plan amendments (or the initiation of a new plan) during the period Normal costs Interest on liability Change in medical cost trend rate assumption (gains)/losses Other actuarial (gains)/losses Total postretirement health benefits

2

Credit

3

Credit

4 5 6

Credit Credit Credit

7 8

Credit N/A

- 35 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Postretirement Health and Accrued Benefits NB Debit N/A 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Changes Note 11 Period: SEPTEMBER

Section: C

Decimal: Zero

Line Status Line Description expense 9 10 Less claims paid Postretirement health and accrued benefits liabilityend of period

Section: D

Section Name: Postretirement Health Liability Significant Assumptions Used in Determining the 2008 and 2007 Valuation NB N/A N/A 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES

Line Attributes: Percent

Line Status Line Description 1 2 Rate of Interest Ultimate rate of health care cost trend Single equivalent rate of health care cost trend

Previously Rptd

Line Item Changes

3

N/A

Section: G

Section Name: Other NB 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes

Decimal: User-Defined

Line Status Line Description 1

2

3

Non-marketable Debit Treasury securities held by Thrift Savings Plan (TSP) Fund Total assets of Debit pension (SFFAS No.5, par. 68) Market value of Debit investments in market-based and marketable securities included

- 36 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Note 11 Period: SEPTEMBER

Section: G

Decimal: User-Defined

Line Status Line Description in line 2 4 Total assets of other retirement benefit plans (SFFAS No. 5, par. 85) Market value of investments in market-based and marketable securities included in line 4 (SFFAS no. 5, par.85) Section: O

5

Debit

Section Name: Number of Pension Plans Administrated NB N/A 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Units Line Item Changes

Line Status Line Description 1 I Pension plans administrated

- 37 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 11 Entity: 9100 Status: Complete Tab: Text Data Line 1 Federal Employee and Veteran Benefits Payable Department of Education The accompanying notes are an integral part of these financial statements. No Data Flag: YES Question 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. 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). Provide the long-term projection of the significant assumptions used in determining pension liability and the related expense (example of assumptions: actuarial, economic, interest rate, and trend). Provide the long-term projection of the significant assumptions used in determining the postretirement health benefits liability and the related expense (example of assumptions: actuarial, economic, interest rate, and trend). Provide the sources(s) of the information entered for "Line Item Notes" tab numbers 4, 5, and 6. Provide the sources(s) for the components of pension expense entered in Section A. Provide the source(s) for the interest rate entered in Section B. Provide the source(s) for the components of postretirement expense entered in Section C. Provide the source(s) for the interest rate entered in Section D. Provide any other relevant information pertaining to this note. Answer Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 11 Period: SEPTEMBER

2

3

4

7 8 9 10 11 14

- 38 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 12 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Environmental and Disposal Liabilities Line Status Line Description 9 10 11 12 13 14 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Environmental and Disposal Liabilities Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

Other Environmental and Disposal Liabilities Total

- 39 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 12 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Other Related Information NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Environmental and Disposal Liabilities Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: User-Defined

Line Status Line Description 1 Unrecognized portion of estimated total cleanup costs associated with general property, plant, and equipment

Tab: Text Data Line 1 2 3

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

- 40 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 13 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Benefits Due and Payable Line Status Line Description 9 Other Entitlement BenefitsDue and Payable Total 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Benefits Due and Payable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

- 41 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 14 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Insurance Programs Line Status Line Description 6 7 8 Total Tab: Text Data Line 1 2 3 No Data Flag: YES Question Provide a description for the type of insurance programs identified in the "Line Item Notes" tab. Provide the name, description, and the related amounts of the insurance programs entered on the line titled, "Other insurance programs" in the "Line Item Notes" tab. Provide any other relevant information pertaining to this note. Answer Other Insurance Programs 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Insurance Programs Other Than Veterans Affairs Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

- 42 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 15 Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Other Liabilities Line Status Line Description 1 2 4 6 7 Deferred revenue Accrued wages and benefits Other debt Legal and other contingencies Grant payments due to State and local governments and others Other employee and actuarial liabilities D.C. pension liability Custodial liabilities Accrued annual leave Advances and prepayments Farm and other subsidies Deposit funds Bonneville Power Administration NonFederal power projects and capital lease liabilities and disposal liabilities 2009 - SEPTEMBER 467 21 NB C Account Type L Variance: 2009 - SEPTEMBER 3,536 0 Previously Rptd 42 19 42 19 2008 - SEPTEMBER 2,374 0 Line Item Changes 0 0 Other Liabilities Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 15 Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

2,962

2,245

2,245

0

8 10 11 12 14 15 16 17

34

33

33

0

52

35

35

0

18 19 20 21

Other Liabilities Total

3,536

2,374

2,374

0

- 43 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 15 Entity: 9100 Status: Complete Other Liabilities Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 15 Period: SEPTEMBER

Threshold Line Description Line Item Notes - Deferred revenue (2009 - SEPTEMBER) Question Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 10% or more and or greater than 500,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer The increase is primarily due to in process excess interest recapture (negative SAP) in the FFEL Program. The increase is the result of additional grant funding made available by the American Recovery and Reinvestment Act of 2009. The increase is primarily due to funds received from Letters of Credit and overpayments on receivables from non-federal sources.

Line Item Notes - Grant payments due to State and local governments and others (2009 - SEPTEMBER) Line Item Notes - Deposit funds (2009 - SEPTEMBER)

Tab: Text Data Line 1 Question Provide more details on the liabilities reported on the "Line Item Notes" tab for each line 1 through 21 by including a description of the significant related amounts and providing the page number of the agency's financial report where the amount is identified. Provide a description and related amounts for balances that exceed $50 million on the line titled, "Other liabilities," and provide the page number of the agency's financial report where the amount is identified. Provide any other relevant information pertaining to this note. Answer Other liabilities consists of liabilities not recognized in specific categories, including (but is not limited to) liabilities related to grants payable, advances and prepayments, and accrued liabilities related to ongoing continuous expenses such as Federal employee salaries and accrued employee annual leave.

2

3

- 44 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 17 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Non- Federal Prior Period Adjustments (Not Restated) NB Credit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Prior-Period Adjustments Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: User-Defined

Line Status Line Description 1 Amounts that adjusted beginning net position - for change in accounting principles Amounts that adjusted beginning net position - for correction of errors Section: B

2

Credit

Section Name: Restated Prior-Period Adjustments - Corrections of Errors for the Prior Year NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Credit Amount C Debit Amount D

No Data Flag: YES

Line Attributes: Dollars Rounding Method: User-Defined

Decimal: User-Defined

Line Status Line Description 1 2 3 4 5 6 7 8 9 10

- 45 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 17 Entity: 9100 Status: Complete Tab: Text Data Line 1 2 3 4 5 Prior-Period Adjustments Department of Education The accompanying notes are an integral part of these financial statements. No Data Flag: YES Question Describe the adjustments to current year or prior-year beginning net position that resulted from changes in accounting principles. Describe the adjustments to the prior-year beginning net position that resulted from correcting errors that occurred in years preceding the prior year. Describe the restatements to the prior-year that resulted from correcting errors that occurred in the prior year. Describe any Federal prior-period adjustments. Provide any other relevant information pertaining to this note. This would include information related to any immaterial errors that occurred in the prior period(s) that were corrected against the current year. Answer Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

- 46 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 18 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Insurance Contingencies (Reasonably Possible Only) NB Credit Credit Credit Credit Credit Other insurance contingencies Total Section: B Credit N/A No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Decimal: User-Defined 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Contingencies (SFFAS Nos. 5 and 12) Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 18 Period: SEPTEMBER

Decimal: User-Defined

Line Status Line Description 4 5 6 7 8 9 10

Section Name: Insurance in force (Sum of Policy Face Value and Dividends Paid) NB Credit Credit Credit Credit Credit 2009 - SEPTEMBER 2008 - SEPTEMBER

Line Status Line Description 3 4 5 6 7 8 9 Other insurance in force Total Section: C

Credit N/A No Data Flag: YES Line Attributes: Dollars Rounding Method: User-Defined Decimal: User-Defined

Section Name: Civil Litigation, Claims and Assessments NB CYAccrued/Estimated amount CY Estimated Range(Low end)

Line Status Line Description

CY Estimated Range CY Claim amount(Unable (High end) to determine loss)

PYAccrued/Estimated PY Estimated Range(Low amount rued/Estimated end) amount

1 2

Probable Reasonably Possible

Credit Credit NB Credit Credit PY Estimated Range (High end) PY Claim amunt (unable to determine)

Line Status Line Description 1 2 Probable Reasonably Possible

- 47 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 18 Entity: 9100 Status: Complete Contingencies (SFFAS Nos. 5 and 12) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Environmental Litigation, Claims, and Assessments NB Credit Credit NB Credit Credit Section Name: Other Contingencies NB Credit Credit Credit CY Probable CY Reasonably Possible No Data Flag: YES PY Probable Line Attributes: Dollars Rounding Method: User-Defined PY Reasonably Possible PY Estimated Range (High Range) PY Claim amount (unable to determine) CYAccrued/Estimated amount CY Estimated Range (Low end) No Data Flag: YES CY Estimated Range (High end) Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: User-Defined CY Claim amunt(unable to determine) Note 18 Period: SEPTEMBER

Section: D

Decimal: User-Defined PY Estimated Range (Low end)

Line Status Line Description 1 2 Probable Reasonably Possible

PY Accrued/Estimated amount

Line Status Line Description 1 2 Probable Reasonably Possible Section: E

Decimal: User-Defined

Line Status Line Description 3 4 5

Section: F

Section Name: Other Contingencies NB Credit Credit Credit 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes

Decimal: User-Defined

Line Status Line Description 3 4 5 I I I

- 48 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 18 Entity: 9100 Status: Complete Tab: Text Data Line 1 2 3 4 Question Describe the risk insurance programs that are in force. Provide the nature of the isurance contingencies. Provide the nature of the litigation contingencies, including the range of loss for probable liabilities. Provide the nature of the litigation contingencies including the range of loss for reasonably possible contingencies. Answer Contingencies (SFFAS Nos. 5 and 12) Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 18 Period: SEPTEMBER

The Department is involved in various lawsuits incidental to its operations. The Treasury Judgment Fund pays judgments resulting from litigation against the Department. In the opinion of management, the ultimate resolution of pending litigation will not have a material effect on the Department's financial position.

5 6 7

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. Describe the other claims that may derive from treaties or international agreements. Provide any other relevant information pertaining to this note.

- 49 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 19 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Capital leases-Asset NB Debit Debit Debit Debit Debit Credit CY Federal CY Non-Federal No Data Flag: YES PY Federal Line Attributes: Dollars Rounding Method: User-Defined PY Non-Federal Commitments Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 19 Period: SEPTEMBER

Decimal: User-Defined

Line Status Line Description 1 2 3 4 5 6 Building Land Equipment Software license Other Accumulated depreciation/amorti zation Net assets under capital leases Section: B

7

N/A No Data Flag: YES CY Non-Federal PY Federal Line Attributes: Dollars Rounding Method: User-Defined PY Non-Federal

Section Name: Capital leases - Liability NB Credit Debit Debit N/A CY Federal

Decimal: User-Defined

Line Status Line Description 1 2 3 4 Future minimum lease programs Imputed interest Executory costs including any profit Total capital lease liability

Section: C

Section Name: Commitments: Operating leases and undelivered orders NB Credit CY Federal 62 92,035 Question Please provide explanations for any amounts that have changed by 10% or more and or greater than $500,000 between the current fiscal year and prior fiscal year. (unaudited) CY Non-Federal PY Federal 66

Line Attributes: Dollars Rounding Method: Millions PY Non-Federal 47,211

Decimal: Zero

Line Status Line Description 1 Operating leases

2 Undelivered orders Credit Threshold Line Description Other Notes Info - Undelivered orders (CY Non-Federal)

Answer The increase is the result of additional grant funding made available during FY 2009 by the American Recovery and Reinvestment Act of 2009 that has been obligated but not yet disbursed.

- 50 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 19 Entity: 9100 Status: Complete Commitments Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other Commitments NB Credit Credit Credit Credit Credit Total N/A CY Federal CY Non-Federal No Data Flag: YES PY Federal Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: User-Defined PY Non-Federal Note 19 Period: SEPTEMBER

Section: D

Decimal: User-Defined

Line Status Line Description 10 11 12 13 14 15

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

2

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

- 51 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 20 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Assets - Current Year NB N/A N/A N/A N/A N/A Inv. in Fed debt securities - net D Fund balance with Treasury D No Data Flag: YES Interest receivable D Line Attributes: Dollars Rounding Method: User-Defined Other Fed assets D Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked Funds) Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: User-Defined Total assets

Line Status Line Description 1 2 3 4 5 I I I I I

Non-Federal assets D

Section: B

Section Name: Assets - Prior year NB N/A N/A N/A N/A N/A Inv. in Fed Debt Sec. net D Fund balance with Treasury D

No Data Flag: YES Interest receivable D

Line Attributes: Dollars Rounding Method: User-Defined Other Federal assets D

Decimal: User-Defined Total assets

Line Status Line Description 1 2 3 4 5

Non-Federal assets D

Section: C

Section Name: Liabilities - Current Year NB Liability due and payable to beneficiaries C Other liabilities C

No Data Flag: YES Total liabilities

Line Attributes: Dollars Rounding Method: User-Defined

Decimal: User-Defined

Line Status Line Description

1 2 3 4 5

I I I I I

N/A N/A N/A N/A N/A

- 52 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 20 Entity: 9100 Status: Complete Section: D Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked Funds) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Liabilities - Prior Year NB Liability due and payable to beneficiaries C Other liabilities C No Data Flag: YES Total liabilities Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Line Attributes: Dollars Rounding Method: User-Defined

Decimal: User-Defined

Line Status Line Description

1 2 3 4 5 Section: E

N/A N/A N/A N/A N/A Section Name: Current Year - Revenue, financing, expenses, and other NB N/A N/A N/A N/A N/A NB N/A N/A N/A N/A N/A Other changes in fund balance C Program expenses D Other expenses D Ending Net Position Beginning net position C Exchange revenue Federal C No Data Flag: YES Exchange revenue - with the public C Line Attributes: Dollars Rounding Method: User-Defined Nonexchange revenue Federal C

Decimal: User-Defined Other financing sources C

Line Status Line Description 1 2 3 4 5 I I I I I

Nonexchange revenue with the public C

Line Status Line Description 1 2 3 4 5 I I I I I

- 53 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 20 Entity: 9100 Status: Complete Section: F Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked Funds) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Prior Year - Revenue, financing, expenses, and other NB N/A N/A N/A N/A N/A NB N/A N/A N/A N/A N/A Section: G Section Name: Other NB N/A N/A N/A N/A N/A PY - Revenues C PY - Other financing sources C No Data Flag: YES PY - Costs D Line Attributes: Dollars Rounding Method: User-Defined Decimal: User-Defined Other changes in fund balance C Program expenses D Other expenses D Ending net position Beginning net position C Exchange revenue Federal C No Data Flag: YES Exchange revenue - with the public C Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Line Attributes: Dollars Rounding Method: User-Defined Nonexchange revenue Federal C

Decimal: User-Defined Other financing sources C

Line Status Line Description 1 2 3 4 5 Line Status Line Description 1 2 3 4 5

Nonexchange revenue with the public C

Line Status Line Description 1 2 3 4 5

- 54 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 20 Entity: 9100 Status: Complete Section: H Dedicated Collections (Excluding Funds Identified as Earmarked and Reported in Note 22 - Earmarked Funds) Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other NB N/A N/A N/A N/A N/A CY - Revenues C CY - Other financing sources C No Data Flag: YES CY - Costs D Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Line Attributes: Dollars Rounding Method: User-Defined PY - Revenues C

Decimal: User-Defined PY - Costs D

Line Status Line Description 1 2 3 4 5 I I I I I

PY - Other financing sources C

Tab: Text Data Line 1 2

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

- 55 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Assets - Current Year NB Cash and other monetary assets D Fund balance with Treasury D Inv in U. S. Treas. Sec.(net of prem. & disc) D Line Attributes: Dollars Rounding Method: Millions Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line Note 22 Period: SEPTEMBER

Decimal: Zero Other Federal assets (with non-earmarked funds) D

Line Status Line Description

Interest Receivable D Other Federal assets (with earmarked funds) D

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 8

28

N/A NB N/A N/A N/A N/A N/A N/A N/A Other non-Federal assets D Total assets

8

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

8

N/A

8

- 56 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Assets - Prior Year NB Cash and other monetary assets D Fund balance with Treasury D Inv. in U.S. Treas. Sec. (net of prem. & disc.) D Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Note 22 Period: SEPTEMBER

Section: B

Decimal: Zero Other Federal assets (with non-earmarked funds) D

Line Status Line Description

Interest Receivable D Other Federal assets (with earmarked funds) D

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 17

28

N/A NB N/A N/A N/A N/A N/A N/A N/A Other non-Federal assets D

17 Total assets

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

17

N/A

17

- 57 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Liabilities and Net Position - Current Year NB Benefits due and payable C Other Federal liabilities Other Fed. liabilities (with (with earmarked funds) non-earmarked funds) C C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Other non-Federal liabilities C Total liabilities Note 22 Period: SEPTEMBER

Section: C

Decimal: Zero Ending net position C

Line Status Line Description

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 8

28

N/A NB N/A N/A N/A N/A N/A N/A N/A Total liabilities and net position

-8

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

-8

N/A

-8

- 58 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Liabilities and Net Position - Prior Year NB Benefits due and payable C Other Federal liabilities Other Fed. liabilities (with (with earmarked funds) non-earmarked funds) C C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Other non-Federal liabilities C Total liabilities Note 22 Period: SEPTEMBER

Section: D

Decimal: Zero Ending net position C

Line Status Line Description

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 17

28

N/A NB N/A N/A N/A N/A N/A N/A N/A Total liabilities and net position

-17

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

-17

N/A

-17

- 59 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Revenue, Financing, Expenses, and Other - Current Year NB Net position, beginning of period C Prior-period adjustment C Investment revenue C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Note 22 Period: SEPTEMBER

Section: E

Decimal: Zero Other taxes and receipts C

Line Status Line Description

Individual income taxes Unemployment and excise and payroll tax withhold taxes C C

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 17

28

N/A NB N/A N/A N/A N/A N/A N/A N/A

-17 Miscellaneous earned revenue C Intragovernmental Program net cost - public transfers, net C D Program net cost Intragovernmental D Non-program expenses D Net position, end of period

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

9

-8

N/A

9

-8

- 60 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Revenue, Financing, Expenses, and Other - Prior Year NB Net position, beginning of period C Prior-period adjustment C Investment revenue C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Note 22 Period: SEPTEMBER

Section: F

Decimal: Zero Other taxes and receipts C

Line Status Line Description

Individual income taxes Unemployment and excise and payroll tax withhold taxes C C

21 22 23 24 25 26 27 All other earmarked funds Intra-agency earmarked funds elimination amounts Total

N/A N/A N/A N/A N/A N/A N/A 39

28

N/A NB N/A N/A N/A N/A N/A N/A N/A

-39 Miscellaneous earned revenue C Intragovernmental Program net cost - public transfers, net C D Program net cost Intragovernmental D Non-program expenses D Net position, end of period

Line Status Line Description 21 22 23 24 25 26 27

28

All other earmarked funds Intra-agency earmarked funds elimination amounts Total

22

-17

N/A

22

-17

- 61 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 22 Entity: 9100 Status: Complete Earmarked Funds Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Number of Agency Earmarked Funds NB N/A 2009 - SEPTEMBER 2.0000 2008 - SEPTEMBER 2.0000 Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units Line Item Changes 2.0000 Note 22 Period: SEPTEMBER

Section: G

Line Status Line Description 1 Total number of earmarked funds

Tab: Text Data Line 1 Question Provide a general description of the individual earmarked funds reported in the Other Notes Info tab (SFFAS No. 27, par. 33). Also describe how the entity accounts for and reports the fund (SFFAS No. 27, par. 23.1). State the legal authority for the administrative entity of each fund to use the revenues and other financing sources based on SFFAS No. 27, par. 23.1 Answer

2

Earmarked funds are recorded as specifically identified revenues, often supplemented by other financing sources, which remain available over time. These funds are required by statute to be used for designated activities, benefits, or purposes. The Department's earmarked funds are primarily related to the 2005 Hurricane Relief efforts.

3

4

Explain any changes in legislation during or subsequent to the reporting period and before the issuance of the financial statements that significantly changes the purpose of the fund or that redirects a material portion of the accumulated balance (SFFAS No. 27, par. 23.3). Provide the sources of revenue and other financing for amounts reported in columns 3 through 8 of Sections E and F in the Other Notes Info tab (SFFAS No. 27, par. 23.2).

In the aftermath of Hurricane Katrina, a number of foreign governments, international entities and individuals made donations of financial assistance to the U.S. Government to support Katrina relief and recovery efforts. These donations were received by the U.S. Department of State as an intermediary. Subsequently, $61 million was transferred to the Department to finance educational initiatives in Louisiana and Mississippi under a Memorandum of Understanding issued in March 2006.

5

Provide any other relevant information pertaining to this note, including explanation for priorperiod adjustments, if any.

- 62 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 25 Entity: 9100 Status: Complete Stewardship Land Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Stewardship Land (SFFAS No. 29, par. 40d)Unaudited NB N/A N/A N/A N/A N/A N/A N/A No Data Flag: YES Answer Beginning Balance Acquired No Data Flag: YES Withdrawn Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units Ending Balance N/A Period: SEPTEMBER

Section: A

Line Status Line Description 1 2 3 4 5 6 Public Land National Forest System National Wildlife Refuge System National Park System Mission land

Water, power, and recreation 7 All other Tab: Text Data Line 1 2 3 4 5

Question Describe the predominant uses of the stewardship land (SFFAS 29, par. 40c). Provide the condition of the stewardship land (SFFAS 29, par. 41). Provide a brief statement explainng how the stewardship land relates to the mission of the agency (SFFAS No. 29, par. 40a). Provide a brief description of the agency's stewardship policies for stewardsip land (SFFAS No. 29, par. 40b). Provide any other information relevant information pertaining to this note.

- 63 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 26 Entity: 9100 Status: Complete Heritage Assets Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Collection Type Heritage Assets (SFFAS No. 29, par. 25d) - Unaudited NB CY Physical units as of the beginning of the year CY Physical units added No Data Flag: YES CY Physical units withdrawn Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units CY Physical unitsending balance PY Physical units beginning balance PY Physical units added N/A Period: SEPTEMBER

Section: A

Line Status Line Description

1 2 3 4 5 Line Status Line Description 1 2 3 4 5 Section: B

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

Line Status Line Description 1 2 3 4 5 Line Status Line Description 1 2 3 4 5

- 64 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 26 Entity: 9100 Status: Complete Tab: Text Data Line 1 2 3 4 Heritage Assets Department of Education The accompanying notes are an integral part of these financial statements. No Data Flag: YES Question Provide a brief statement explaining how heritage assets relate to the mission of the agency (SFFAS No. 29, par. 25a). Provide a brief description of the agency's stewardship policies for each major category of the heritage assets (SFFAS No. 29, par. 25b). Provide a brief description of the condition of each category of the heritage assets (SFFAS 29, par. 26). Provide any other relevant information pertaining to this note. Answer Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

- 65 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Schedule of Fiduciary Net Assets - Deposit Funds Current Year NB Fid Inv in Fed Debt Sec-net of prem and discounts D Fid FBWT (USSGL 1010 only) D No Data Flag: YES Line Attributes: Dollars Rounding Method: Millions Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: Zero Other assets D

Line Status Line Description

Int Rec on Fid Fed Debt Inv in Non-Fed Debt Sec Cash and cash equivalents Sec D (and related int rec) D D

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

- 66 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Fiduciary Net Assets - Deposit Funds Current Year NB Liability due and payable to beneficiaries C Other liabilities C No Data Flag: YES Total fiduciary net assets Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions N/A Period: SEPTEMBER

Section: A

Decimal: Zero

Line Status Line Description

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Section: B

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Section Name: Schedule of Fiduciary Activity - Deposit Funds Current Year NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Beginning fid net assets bal. D Fiduciary contributions C No Data Flag: YES Fiduciary revenues C Line Attributes: Dollars Rounding Method: Millions Investment earnings C Decimal: Zero All other inflows to net assets C

Line Status Line Description 1 2 3 4 5 6 7 8 9 10 11 12

Gain (loss) on disposition of investments, net C

- 67 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Fiduciary Activity - Deposit Funds Current Year NB N/A N/A N/A NB Disbursements to and on behalf of beneficiaries D Administrative and other expenses D All other outflows from net assets D Ending fiduciary net assets bal. Beginning fid net assets bal. D Fiduciary contributions C No Data Flag: YES Fiduciary revenues C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Investment earnings C N/A Period: SEPTEMBER

Section: B

Decimal: Zero All other inflows to net assets C

Line Status Line Description 13 14 15 Line Status Line Description

Gain (loss) on disposition of investments, net C

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Section: C

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

Line Status Line Description

1 2 3 4 5 6

N/A N/A N/A N/A N/A N/A

- 68 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Changes in Non-Valued Fiduciary Asset - Deposit Funds - Current Year NB Beginning quantity of non-valued fid assets Additions to quantity No Data Flag: YES Subtractions from quantity Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units Ending quantity of nonvalued fid assets N/A Period: SEPTEMBER

Section: C

Line Status Line Description

7 8 9 10 11 12 13 14 15 Section: D

N/A N/A N/A N/A N/A N/A N/A N/A N/A Section Name: Schedule of Fiduciary Net Assets - All Other Agency Funds - Current Year NB Fid Inv in Fed Debt Sec-net of prem and discounts D Fid FBWT (USSGL 1010 only) D No Data Flag: YES Line Attributes: Dollars Rounding Method: Millions Decimal: Zero Other assets D

Line Status Line Description

Int Rec on Fid Fed Debt Inv in Non-Fed Debt Sec Cash and cash equivalents Sec D (and related int rec) D D

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

- 69 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Fiduciary Net Assets - All Other Agency Funds - Current Year NB Liability due and payable to beneficiaries C Other liabilities C No Data Flag: YES Total fiduciary net assets Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions N/A Period: SEPTEMBER

Section: D

Decimal: Zero

Line Status Line Description

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Section: E

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Section Name: Schedule of Fiduciary Activity - All Other Agency Funds - Current Year NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Beginning fid net assets bal. D Fiduciary contributions C No Data Flag: YES Fiduciary revenues C Line Attributes: Dollars Rounding Method: Millions Investment earnings C Decimal: Zero All other inflows to net assets C

Line Status Line Description 1 2 3 4 5 6 7 8 9 10 11 12

Gain (loss) on disposition of investments, net C

- 70 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Fiduciary Activity - All Other Agency Funds - Current Year NB N/A N/A N/A NB Disbursements to and on behalf of beneficiaries D Administrative and other expenses D All other outflows from net assets D Ending fid net asset bal. Beginning fid net assets bal. D Fiduciary contributions C No Data Flag: YES Fiduciary revenues C Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Investment earnings C N/A Period: SEPTEMBER

Section: E

Decimal: Zero All other inflows to net assets C

Line Status Line Description 13 14 15 Line Status Line Description

Gain (loss) on disposition of investments, net C

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Section: F

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

Line Status Line Description

1 2 3 4 5 6

N/A N/A N/A N/A N/A N/A

- 71 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Schedule of Changes in Non-Valued Fiduciary Assets - All Other Agency Funds - Current Year NB Beginning quantity of non-valued fid assets Additions to quantity No Data Flag: YES Subtractions from quantity Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Units Ending quantity of nonvalued fid assets N/A Period: SEPTEMBER

Section: F

Line Status Line Description

7 8 9 10 11 12 13 14 15 Section: G

N/A N/A N/A N/A N/A N/A N/A N/A N/A Section Name: Number of Agency Fiduciary Activities NB N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total number of fid funds - deposit funds Total number of fid funds - all other agency funds No Data Flag: YES Line Attributes: Units

Line Status Line Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

- 72 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 27 Entity: 9100 Status: Complete Tab: Text Data Line 1 Fiduciary Activities Department of Education The accompanying notes are an integral part of these financial statements. No Data Flag: YES Question 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)). Provide information on any significant changes in fiduciary net assets from the prior period (SFFAS No. 31, par. 18 (c)). Provide the TAS for all funds with fiduciary activities. For any cash included in the Schedules of Fiduciary Net Assets, indicate if the cash is represented by balances on deposit with either the U.S. Treasury or with a commercial banking institution (SFFAS No. 31, par. 12). Provide a description of any cash equivalents included in the Schedules of Fiduciary Net Assets. For any non-monetary assets included in the Schedules of Fiduciary Net Assets, provide a description of the composition of the assets, the method(s) of valuation, and the changes (if any) from prior-period accounting methods (SFFAS No. 31, par. 18 (c)). For any non-valued fiduciary assets included in the Schedules of Non-Valued Fiduciary Assets, provide a description of the non-valued assets (SFFAS No. 31, par. 18 (d)). If separate audited financial statements are issued for an individual fiduciary activity with a fiscal yearend other than September 30, indicate the fiduciary activity's fiscal year (SFFAS No. 31, par. 18 (e)). If separate audited financial statements are issued for an individual fiduciary activity, disclose the basis of accounting used and the auditor's opinion on the current or most recent financial statements. If the auditor's opinion was not unqualified, disclose the reason(s) stated by the auditors and refer the reader to the audit opinion for further information (SFFAS No. 31, par. 12 (a)). If separate audited financial statements are issued for an individual fiduciary activity, provide information on the reader can obtain a copy of the financial statements and the audit opinion thereon (SFFAS No. 31, par. 19). 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). Provide any other relevant information pertaining to this note. Answer Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

2 3 4

5 6

7 8

9

10

11

12

- 73 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 28A Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Investment in Government sponsored enterprises (GSEs) Line Status Line Description 1 2 3 4 5 6 7 8 Fannie Mae senior preferred stock Freddie Mac senior preferred stock Fannie Mae warrants common stock Freddie Mac warrants common stock CY - Appraisal value at purchase date NB D Account Type A Variance: 2009 - SEPTEMBER 0 0 CY - Net investment 2008 - SEPTEMBER 0 0 Financial and Housing Market Stabilization - Investment in GSE Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions CY - Investment Balance

Decimal: Zero PY - Appraisal value at purchase date

CY - Unamortized premium/discount

CY - Interest receivable

All other stock Total PY - Unamortized PY - Net investment PY - Interest receivable PY- Investment Balance

Line Status Line Description 1 2 3 4 5 6 7 8 Fannie Mae senior preferred stock Freddie Mac senior preferred stock Fannie Mae warrants common stock Freddie Mac warrants common stock

All other stock Total

- 74 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 28A Entity: 9100 Status: Complete Tab: Other Notes Info. Section: A Section Name: Appraisal Value at Reporting Date NB Debit Debit Debit CY- Appraisal value at reporting date PY- Appraisal value at reporting date No Data Flag: YES Line Attributes: Dollars Rounding Method: Millions Financial and Housing Market Stabilization - Investment in GSE Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Decimal: Zero

Line Status Line Description 1 2 3 Fannie Mae senior preferred stock Freddie Mac senior preferred stock Fannie Mae warrants common stock Freddie Mac warrants common stock

4

Debit

5 6 7 8 9 All other stock Total Section: B

Debit Debit Debit Debit N/A Section Name: Other Related Information NB 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Line Attributes: Dollars Rounding Method: Millions Line Item Changes Decimal: Zero

Line Status Line Description 1

2

3

4

Debt and mortgage Debit backed securities outstanding Fannie Mae Debt and mortgage Debit backed securities outstanding Freddie Mac Debt and mortgage Debit backed securities outstanding Other Revenue Credit recognized from acquisition of preferred stocks and warrants

- 75 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 28A Entity: 9100 Status: Complete Financial and Housing Market Stabilization - Investment in GSE Department of Education The accompanying notes are an integral part of these financial statements. Section Name: Other Related Information NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data Flag: YES Previously Rptd Fiscal Year: 2009 Agency Notes: I = Inactive Line Line Attributes: Dollars Rounding Method: Millions Line Item Changes N/A Period: SEPTEMBER

Section: B

Decimal: Zero

Line Status Line Description 5 The liquidation preference value per share of senior preferred stock Nominal cost of common stock on a fully-diluted basis

6

Debit

Section: C

Section Name: Othere Related Information NB N/A 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Units Line Item Changes

Line Status Line Description 1 Number of nonvoting senior preferred stock shares

Section: D

Section Name: Other Related Information NB N/A 2009 - SEPTEMBER 2008 - SEPTEMBER

No Data Flag: YES Previously Rptd

Line Attributes: Percent Line Item Changes

Line Status Line Description 1 Rate of dividents

- 76 -

11/16/2009 12:26:48

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF006 - FR Notes Report
Note: 28B Entity: 9100 Status: Complete Tab: Line Item Notes Closing Package Line Description Keepwell payable Line Status Line Description 1 2 3 4 5 Keepwell Payable Fannie Mae Keepwell Payable Freddie Mac 2009 - SEPTEMBER NB C Account Type L Variance: 2009 - SEPTEMBER 0 0 Previously Rptd 2008 - SEPTEMBER 0 0 Line Item Changes Financial and housing Market Stabilization - GSE Keepwell Payable Department of Education The accompanying notes are an integral part of these financial statements. Fiscal Year: 2009 Agency Notes: I = Inactive Line N/A Period: SEPTEMBER

Rounding Method: Millions

Decimal: Zero

2008 - SEPTEMBER

All other payables Total

- 77 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 01 Entity: 9100 Status: Complete Statement of Operations and Changes in Net Position Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

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

Line Status 1 2 3 4 5

Line Description

PY - Low Range

PY - High Range

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

Line 1

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

Answer

- 1 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 02 Entity: 9100 Status: Complete Taxes Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: A Line Status 1 Section Name: Taxes (SSFAS No.7, par. 67-69) NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Decimal: User-Defined

Line Description Estimated realized value of compliance assessments as of the end of the period Estimated realizable value of preassessment workin-progress Changes in 1 and 2 above Other claims for refunds not yet accrued but likely to be paid when administrative actions are completed Management's best estimate of unasserted claims for refunds Changes in 4 and 5 above Amount of assessments written off that continue to be statutorily collectible

2

Debit

3 4

Debit Debit

5

Debit

6 7

Debit Debit

- 2 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 02 Entity: 9100 Status: Complete Taxes Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

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

Line Status 1

Line Description Realizable value of pre-assessment work-in-progress

PY Low

2 3

4

Changes in line 1 Debit above Management's best Debit estimate of unasserted claims for refunds Changes in line 3 Debit above Tab: Other Text Data Section: A Section Name: Taxes (SSFAS No.7, par. 67-69) No Data: YES Answer

Line 1 2 3 4 5

Question Provide the explicit definitions of estimated amounts of the size of the tax gap. Provide the appropriate explanation of the limited reliability of the estimates of the size of the tax gap. Provide cross-references to portions of the tax gap due from identified noncompliant taxpayers and importers. 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). Disclose the amounts by which trust funds may be over- or under-funded in comparison with the requirements of law, if reasonable estimable.

- 3 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 09 Entity: 9100 Status: Complete Stewardship Investments Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: Note 09 Period: SEPTEMBER

Tab: Other Data Info. Section: A Section Name: Investment in Non-Federal physical property (SFFAS No. 8, par 87) NB Debit Debit Debit Debit Debit Other non-Federal physical property Section: B Debit FY 2009 FY 2008 No Data: YES Line Attributes: Dollars Rounding Method: User-Defined FY 2006 Decimal: User-Defined FY 2005

Line Status 1 2 3 4 5 6

Line Description

FY 2007

Section Name: Research and Development: Investment in Development (SFFAS No. 8, par. 94, 99 & 100) NB Debit Debit Debit Debit Debit FY 2009 FY 2008

No Data: YES

Line Attributes: Dollars Rounding Method: User-Defined FY 2006

Decimal: User-Defined FY 2005

Line Status 1 2 3 4 5 6

Line Description

FY 2007

Other investment in development

Debit

- 4 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 09 Entity: 9100 Status: Complete Stewardship Investments Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: Note 09 Period: SEPTEMBER

Tab: Other Data Info. Section: C Line Status 1 2 3 4 5 6 Threshold Line Description Other Data Info - Elementary and Secondary Education (FY 2009) Question Please provide explanations for any amounts that have changed by 20% or more and or greater than 5,000,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 20% or more and or greater than 5,000,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 20% or more and or greater than 5,000,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 20% or more and or greater than 5,000,000 between the current fiscal year and prior fiscal year. (Unaudited) Please provide explanations for any amounts that have changed by 20% or more and or greater than 5,000,000 between the current fiscal year and prior fiscal year. (Unaudited) Answer Change is primarily due to the change in the FFEL Program and Direct Loan Program subsidy expense Section Name: Investment in Human Capital (SFFAS No. 8, par 100) NB Debit Debit Debit Debit Debit Debit FY 2009 -22,055 21,443 15,075 21,616 472 7,150 FY 2008 20,037 21,583 15,730 0 491 4,911 FY 2007 19,650 21,199 15,402 0 467 5,109 Line Attributes: Dollars Rounding Method: Millions FY 2006 50,336 21,710 15,215 0 467 5,353 Decimal: Zero FY 2005 30,308 22,940 13,995 0 486 6,067

Line Description Federal Student Aid Elementary and Secondary Education Special Education and Rehab Services American Recovery and Reinvestment Salaries and Administration Other Investments in human capital

Other Data Info - Special Education and Rehab Services (FY 2009)

Within threshold

Other Data Info - American Recovery and Reinvestment (FY 2009)

The increase is the result of additional grant funding made available during FY 2009 by the American Recovery and Reinvestment Act of 2009. Within threshold.

Other Data Info - Salaries and Administration (FY 2009)

Other Data Info - Other Investments in human capital (FY 2009)

Primarily the result of increased Vocational & Adult Education, Innovation and Improvement, Safe Schools and Citizenship Education, and Higher Education grantee drawdowns

- 5 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 09 Entity: 9100 Status: Complete Stewardship Investments Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: Note 09 Period: SEPTEMBER

Tab: Other Data Info. Section: D Section Name: Research and Development: Investment in Basic Research (SFFAS No. 8, par.99 & 100) NB Debit Debit Debit Debit Debit Other investments in basic research Section: E Debit FY 2009 FY 2008 No Data: YES Line Attributes: Dollars Rounding Method: User-Defined FY 2006 Decimal: User-Defined FY 2005

Line Status 1 2 3 4 5 6

Line Description

FY 2007

Section Name: Research and Development: Investment in Applied Research (SFFAS No. 8, par 100) NB Debit Debit Debit Debit Debit FY 2009 FY 2008

No Data: YES

Line Attributes: Dollars Rounding Method: User-Defined FY 2006

Decimal: User-Defined FY 2005

Line Status 1 2 3 4 5 6

Line Description

FY 2007

Other investment in applied research Tab: Other Text Data Section: A

Debit

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

No Data: YES Answer

Line 1 2

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

- 6 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 09 Entity: 9100 Status: Complete Stewardship Investments Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: Note 09 Period: SEPTEMBER

Tab: Other Text Data Section: B Line 1 2 Section Name: Research and Development: Investment in Development (SFFAS No. 8, par. 94, 99 & 100) No Data: YES Answer

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

Tab: Other Text Data Section: C Line 1 Section Name: Investment in Human Capital (SFFAS No. 8, par 100) Answer Federal Student Aid - The Office of Federal Student Aid administers need based financial assistance programs for students pursuing postsecondary education and makes available federal grants, direct loans, guaranteed loans, and work study funding to eligible undergraduate and graduate students.

Question Provide a description of the major education and training programs considered Federal investments in human capital. (SFFAS No.8, par. 94)

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 highpoverty schools, institutions for neglected and delinquent children, homeless children, certain Native American children, children of migrant families, and children who live on or whose parents work on Federal property.

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

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

- 7 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 09 Entity: 9100 Status: Complete Stewardship Investments Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: Note 09 Period: SEPTEMBER

Tab: Other Text Data Section: C Line Question Section Name: Investment in Human Capital (SFFAS No. 8, par 100) Answer innovation and improvement in postsecondary education.

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

Tab: Other Text Data Section: D Line 1 2 Section Name: Research and Development: Investment in Basic Research (SFFAS No. 8, par.99 & 100) No Data: YES Answer

Question Provide a description of the major programs of Federal investments in basic research. (SFFAS No. 8, par. 100) Provide a description of any major new discoveries made during the year (SFFAS No. 8, par. 99)

Tab: Other Text Data Section: E Line 1 2 Section Name: Research and Development: Investment in Applied Research (SFFAS No. 8, par 100) No Data: YES Answer

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

- 8 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 10 Entity: 9100 Status: Complete Deferred Maintenance Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: A Line Status 1 2 3 Section Name: Range of Amounts NB N/A N/A N/A CY- Low D CY- High No Data: YES D CY - Critical Maintenance D Line Attributes: Dollars Rounding Method: User-Defined PY- Low D Decimal: User-Defined PY- High D PY - Critical Maintenance D

Line Description Buildings, structures, and facilities Furniture, fixtures, and equipment Other general property, plant, and equipment Heritage assets Stewardship land

4 5

N/A N/A

- 9 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 15 Entity: 9100 Status: Complete Risk Assumed-Federal Insurance and Guarantee Programs(SFFAS No. 5, par. 105, 106,and 114) Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: A Line Status 1 Section Name: Risk Assumed NB Debit 2009 - SEPTEMBER 2008 - SEPTEMBER No Data: YES Previously Rptd Line Attributes: Dollars Rounding Method: User-Defined Line Item Changes Decimal: User-Defined

Line Description Present value of unpaid expected losses (net of associated premiums) Periodic changes

2

Debit

Tab: Other Text Data Section: A Line 1 2 Section Name: Risk Assumed No Data: YES Answer

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

- 10 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 16 Entity: 9100 Status: Complete Analysis of FR Operating Revenue to Budget Receipts Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: A Section Name: Fiscal 2009 Operating Revenues Not Reported in the Budget Receipts NB Credit CY-Individual income tax and tax withholdings CY-Corporation income taxes No Data: YES Line Attributes: Dollars Rounding Method: User-Defined CY-Excise taxes Decimal: User-Defined CY-Customs duties

Line Status 1

Line Description Undistributed Offsetting receipts (offset against outlays) Proprietary receipts from the public (offset against outlays) Rents and royalties on the outer continental shelf lands (offset against outlays) Offsetting governmental receipts (offset against outlays) Intrabudgetary transactions (offset against outlays)

CY-Unemployment taxes

CY-Estate and gift taxes

2

Credit

3

Credit

4

Credit

5

Credit

6 7 8 Line Status 1 Line Description Undistributed Offsetting receipts (offset against outlays) Proprietary receipts from the public (offset against outlays) Rents and royalties on the outer

Credit Credit Credit NB Credit CY-Other taxes and CY-Miscellaneous earned receipts revenue

2

Credit

3

Credit

- 11 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 16 Entity: 9100 Status: Complete Analysis of FR Operating Revenue to Budget Receipts Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: A Section Name: Fiscal 2009 Operating Revenues Not Reported in the Budget Receipts NB CY-Other taxes and CY-Miscellaneous earned receipts revenue No Data: YES Line Attributes: Dollars Rounding Method: User-Defined Decimal: User-Defined

Line Status

Line Description continental shelf lands (offset against outlays) Offsetting governmental receipts (offset against outlays) Intrabudgetary transactions (offset against outlays)

4

Credit

5

Credit

6 7 8 Section: B

Credit Credit Credit Section Name: Fiscal 2009 Budget Receipts Not Reported in the Operating Revenue NB N/A CY-Individual income taxes C CY-Corporation income taxes C No Data: YES Line Attributes: Dollars Rounding Method: User-Defined Decimal: User-Defined C CY-Excise taxes C

Line Status 1

Line Description Earned (exchange) revenue reported in the Statement of Net Cost

CY-Employment and general retirement C

CY-Unemployment CY-Other retirement insurance C

2 3 4 Line Status 1 Line Description Earned (exchange) revenue reported in the Statement of Net Cost

N/A N/A N/A NB N/A CY-Estate and gift taxes CY-Customs duties C C CY-Miscellaneous receipts C

2

N/A

- 12 -

11/16/2009 12:27:10

U.S. Department of the Treasury Financial Management Service Governmentwide Financial Report System GF007 - Other Data Report
Other Data: 16 Entity: 9100 Status: Complete Analysis of FR Operating Revenue to Budget Receipts Department of Education I = Inactive Line Fiscal Year: 2009 Agency Notes: N/A Period: SEPTEMBER

Tab: Other Data Info. Section: B Section Name: Fiscal 2009 Budget Receipts Not Reported in the Operating Revenue NB N/A N/A CY-Estate and gift taxes CY-Customs duties C C No Data: YES Line Attributes: Dollars Rounding Method: User-Defined Decimal: User-Defined

Line Status 3 4

Line Description

CY-Miscellaneous receipts C

Tab: Other Text Data Section: A Line 1 2 3 4 5 Section Name: Fiscal 2009 Operating Revenues Not Reported in the Budget Receipts No Data: YES Answer

Question Provide a detailed description of the undistributed offsetting receipts reconciling item(s). Provide a detailed description of the proprietary receipts from the public reconciling item(s). Provide a detailed description of the offsetting governmental receipts reconciling item(s). Provide a detailed description of the intrabudgetary transaction reconciling item(s). Provide a detailed description of the agency entered description reconciling item(s).

Tab: Other Text Data Section: B Line 1 2 Section Name: Fiscal 2009 Budget Receipts Not Reported in the Operating Revenue No Data: YES Answer

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

- 13 -