which are prepared from the same books and records. The Statements should be read with the understanding that they are for a component of the U.S. Government, a sovereign entity. The AOC has no authority to pay liabilities not covered by budgetary resources. Liquidation of such liabilities requires enactment of an appropriation.

Balance Sheet

Provides comparative information on AOC’s Assets, Liabilities and Net Position (Unexpended Appropriations and Cumulative Results of Operations). Net Position represents the Net Investment of the U.S. Government in AOC’s assets less liabilities.

Statement of Net

Cost Provides the comparative gross costs incurred by responsibility segment (AOC jurisdiction), net of any exchange or earned revenue from activities. Exchange revenue includes income from steam and chilled water provided to governmental or private entities, gift shop sales, recycling and others. The net cost of operations is prepared on the proprietary basis of accounting and, unlike budgetary accounting, includes costs of services provided by other entities, accruals and non-cash expenses such as depreciation and amortization.

Statement of Changes in Net Position

Provides, on a comparative basis, the beginning Net Position, the transactions that affected Net Position during the period and the ending Net Position.

Statement of Budgetary Resources

Presents comparative information on the budgetary basis of accounting, including how budgetary resources were made available and their status at the end of the year.