News Release

HHS Issues FY 2008 Financial Report

Tenth Consecutive Clean Opinion on Its Audited Financial Statements

The U.S. Department of Health and Human Services (HHS) has received a “clean” audit opinion on its consolidated financial statements for its tenth straight year. The HHS Financial Report for fiscal year (FY) 2008 is similar to a corporation’s annual report to shareholders. The “clean” audit opinion demonstrates HHS’ commitment to effectively steward public funds. 

The report presents fiscal and high-level performance results that enable the President, Congress, and the American people to assess the department’s performance relative to its mission, and includes the department’s audited financial statements. 

For the third year in a row, the department’s audited financial statements include a Statement of Social Insurance (SOSI), as required by federal accounting standards.  SOSI shows an estimated total future obligation of over $50 trillion for Medicare benefits based on current law. If Congress were to set future physician payments at the Medicare Economic Index, this obligation would increase by $4.2 trillion. 

In releasing the Financial Report, HHS Secretary Leavitt added the following personal note relating the future of Medicare costs: “In my capacity as a Trustee of the Medicare Trust Fund, I want to draw special attention to this point.  Every American needs to understand the urgency of the need to take action to reverse this unsustainable trend.”

With outlays in excess of $700 billion in FY 2008, HHS is one of the largest, most complex financial organizations in the world. HHS is the principal federal agency responsible for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves. It is responsible for more than 300 programs and is the nation's largest health insurer and the federal government's largest grant-making agency. 

“We are entrusted to protect the health and well-being of all Americans and we must do so by preserving the strength and accountability of our financial operations,” Secretary Leavitt said.

The HHS FY2008 Agency Financial Report document will be available on the Web at http://www.hhs.gov/afr. In addition, HHS will make available its Annual Performance Report and Citizens’ Report on Jan. 15, 2009.

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Last revised: May 7, 2011