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d-19089House OversightOther

Financial Metric Definitions for ‘USA Inc.’ Government Accounting Model

The passage only outlines accounting definitions and high‑level financial ratios for the U.S. government framed as a corporate entity. It contains no specific names, transactions, dates, or allegation Defines cash flow, one‑time expenses, and net worth for the government model. Provides per‑share cash flow and net debt‑to‑EBITDA ratios for FY 2010. Notes that government accounting differs from cor

Date
November 11, 2025
Source
House Oversight
Reference
House Oversight #020858
Pages
1
Persons
1
Integrity
No Hash Available

Summary

The passage only outlines accounting definitions and high‑level financial ratios for the U.S. government framed as a corporate entity. It contains no specific names, transactions, dates, or allegation Defines cash flow, one‑time expenses, and net worth for the government model. Provides per‑share cash flow and net debt‑to‑EBITDA ratios for FY 2010. Notes that government accounting differs from cor

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government-financeaccounting-methodologybudget-metricshouse-oversight

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Text extracted via OCR from the original document. May contain errors from the scanning process.
Metric Definitions & Qualifiers e Cash Flow = ‘Cash In’ Minus ‘Cash Out’ — Calculated on a cash basis (which excludes changes in non-cash accrual of future liabilities) for simplicity. e One-Time Expenses = ‘Spending Minus Repayments’ for Non-Recurring Programs — Net costs of programs such as TARP, ARRA, and GSE bailouts. e Net Worth = Assets Minus Liabilities Minus Unfunded Entitlement Liabilities — Assets include cash & investments, taxes receivable, property, plant & equipment (as defined by Department of Treasury). — Liabilities include accounts payable, accrued payroll & benefits, federal debt, federal employee & veteran benefits payable... — Unfunded Entitlement Liabilities include the present value of future expenditures in excess of dedicated future revenues in Medicare and Social Security over the next 75 years. Note: USA Inc. accounts do not follow the same GAAP as corporations. i USA Inc. | High Level Thoughts 33 Common Financial Metrics Applied to USA Inc. in F2010 e Cash Flow Per Share = -$4,171 — USA Inc.’s F2010 cash flow -$1.3 trillion, divided by population of ~310 million (assuming each citizen holds one share of USA Inc.). e Net Debt to EBITDA Ratio = -8x — USA Inc. net debt held by public ($9.1 trillion) divided by USA Inc. F2010 EBITDA (-$1.1 trillion). It’s notable that the ratio compares with S8&P500 average of 1.4x in 2010. Note: USA Inc. accounts do not follow the same GAAP as corporations. Refer to slide 31 for a word of warning about comparing corporate and government accounting. EBITDA is Earnings Before Interest, Tax, Depreciation & Amortization. Source: Dept. of Treasury, White House Office of Management and Budget, Congressional Budget Office, BEA, BLS. www.kpcb.com USA Inc. | High Level Thoughts 34

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