General Information and Requirements
61.1. General.
These instructions on apportionment and budget execution for Federal
credit programs reflect the requirements of the Federal Credit Reform
Act of 1990, hereafter referred to as the Act. The Act is found at
Title V of the Congressional Budget Act of 1974, as amended by section
13201 of the Omnibus Budget Reconciliation Act of 1990. The major
purposes of the Act are to:
--measure more accurately the costs of Federal credit programs;
--place the cost of credit programs on a budgetary basis equivalent
to other Federal spending;
--encourage the delivery of benefits in the form most appropriate to
the needs of beneficiaries; and
--improve the allocation of resources among credit programs and
between credit and other spending programs.
The Act requires all estimated subsidy costs arising from direct
loan obligations and loan guarantee commitments made in 1992 and later
years to be recorded in program accounts. All other cash flows
arising from direct loan obligations and loan guarantee commitments
made in fiscal year 1992 and later years are recorded in separate
direct loan and guaranteed loan financing accounts. These financing
accounts are not included in the budget totals. The net cash flows for
these direct and guaranteed loan transactions are recorded outside the
budget totals as a means of financing the deficit. Only the
unreimbursed costs of making new loans and guarantees--i.e., the
subsidy costs (on a net present value basis) and the administrative
expenses (on a cash basis)--are counted in the budget totals.
61.2. Coverage.
These instructions apply to all direct loan and loan guarantee
programs. Section 506 of the Act exempts certain credit programs from
credit reform budgeting. These programs are still required to follow
other instructions contained in this Circular.
61.3. Requirement for appropriations.
New direct loan obligations may be incurred and new loan guarantee
commitments may be made only if:
--appropriations of budget authority to cover their costs are made
in advance;
--a limitation on the use of funds otherwise available for the cost
of a direct loan or loan guarantee program is enacted; or
--authority is otherwise provided in appropriation acts.
Exemptions from this requirement for programs considered mandatory
will be specified by OMB pursuant to section 504(c) of the Act.
Terminology and Concepts
62.1. General.
Pursuant to the Act, the subsidy cost and administrative expenses of
a direct or guaranteed loan are recorded in a separate program
account. All other cash flows of a direct loan or loan guarantee are
recorded as transactions in a separate financing account or as
transactions between these separate accounts. Funds within these
separate accounts are further classified by the year in which they
were obligated, committed, or received appropriations and the degree
of subsidy the loan or guarantee requires.
62.2. General definitions.
For the purpose of this Circular, the following definitions and
treatments apply:
(a) Pre-1992 refers to direct loan obligations and loan guarantee
commitments made before the beginning of fiscal year 1992, i.e.,
before October 1, 1991, and the resulting direct loans and loan
guarantees.
(b) Post-1991 refers to direct loan obligations and loan guarantee
commitments made after the beginning of fiscal year 1992, i.e., after
October 1, 1991, and the resulting direct loans and loan guarantees.
(c) A direct loan is a disbursement of funds by the Government to a
non-Federal borrower under a contract that requires repayment of such
funds with or without interest. The term includes the purchase of, or
participation in, a loan made by a non-Federal lender. The term also
includes the sale of a Government asset on credit terms of more than
90 days duration. The term does not include the acquisition of
federally guaranteed non-Federal loans in satisfaction of default or
other guarantee claims (see section 62.2(d)) or the price support
loans of the Commodity Credit Corporation.
(d) A direct loan obligation is a legal or binding agreement by a
Federal agency to make a direct loan when specified conditions are
fulfilled by the borrower.
Acquisitions of federally guaranteed non-Federal loans in
satisfaction of default or other guarantee claims are not recorded as
direct loan obligations. Instead, the amounts are recorded:
--as obligations incurred for default claims in budget execution
reports;
--in object class 42 (insurance claims and indemnities), rather than
object class 33 (investments and loans); and
--as loans receivable from the public on the balance sheet for
financing accounts.
For those programs that were financed by the Federal Financing Bank
(FFB) prior to credit reform, pre-1992 loans made by the FFB on behalf
of any agency continue to be recorded as direct loans. Post-1991
loans financed by the FFB are treated in the same manner as loans
financed by other means, i.e., the nonsubsidized portion is financed
through the financing accounts and the subsidy value is paid by the
agency program accounts to the financing accounts.
(e) The direct loan subsidy cost is the estimated long-term cost to
the Government of a direct loan, calculated on a net present value
basis, excluding administrative costs. Specifically, the subsidy cost
of a direct loan is the net present value, at the time the direct loan
is disbursed from the financing account, of the following cash flows:
--loan disbursements;
--repayments of principal; and
--payments of interest and other payments by or to the Government
over the life of the loan including estimated defaults,
prepayments, fees, penalties, and other recoveries.
The subsidy cost of a direct loan that is disbursed in more than one
payment is the sum of the net present values of each separate
disbursement.
(f) A loan guarantee is any guarantee, insurance, or other pledge
with respect to the payment of all or a part of the principal or
interest on any debt obligation of a non-Federal borrower to a
non-Federal lender, but does not include the insurance of deposits,
shares, or other withdrawable accounts in financial institutions.
(g) A loan guarantee commitment is a legally binding agreement by a
Federal agency to make a loan guarantee when specified conditions are
fulfilled by the borrower, the lender, or any other party to the
guarantee agreement.
(h) The loan guarantee subsidy cost is the estimated long-term cost
to the Government of a loan guarantee, calculated on a net present
value basis, excluding administrative costs. Specifically, the subsidy
cost of a loan guarantee is the net present value, at the time when
the guaranteed loan is disbursed by the lender, of the following cash
flows:
--estimated payments by the Government to cover defaults and
delinquencies, interest subsidies, and other payments; and
--estimated payments to the Government including origination and
other fees, penalties, and recoveries.
The subsidy cost of a guaranteed loan that is disbursed in more than
one payment is the sum of the net present values of each separate
disbursement.
(i) Financing authority (gross) is the authority provided by the
Act to incur obligations in a financing account. It consists of
spending authority from offsetting collections credited to the account
and authority to borrow from the Treasury. The spending authority from
offsetting collections is the amount net of repayment of borrowing
from the Treasury.
(j) The following types of technical assumptions are to be used in
apportioning and obligating direct loans or committing loan guarantees
and in calculating reestimates of the subsidy after direct or
guaranteed loan disbursement.
--Economic assumptions include the interest rate used for
discounting cash flows and the rate of inflation. They also
include the interest rate charged to the borrower on the loan, if
the rate is tied to a variable benchmark, such as the rate on
specified Treasury securities.
--Explicit technical assumptions are the terms and conditions made
explicit in the contract between the U.S. Government and the
borrower. These assumptions are forecast in the original subsidy
estimate, but are known at the time of loan origination. They are
documented, actual factors which are contained in the original
loan contract. They may include: the interest rates charged on
loans, the extent of a guarantee, fees, repayment terms,
collateral held, and other factors such as grace periods.
--Forecast technical assumptions are factors that affect the
expected cash flows of the loan or guarantee but are not
explicitly included in the loan agreement. They are factors which
are estimated, but not actually observable, at the time of loan
origination or modification. They include: default rates, timing
of defaults, delinquency rates, late fees, proceeds from the sale
of collateral or acquired defaulted loans, income from (and costs
of managing) foreclosed collateral and acquired defaulted
guaranteed loans, reschedulings, prepayments, loan asset sales,
and disbursement rates.
(k) The program account is the budget account into which an
appropriation to cover the subsidy cost of a direct loan or loan
guarantee program is made and from which such cost is disbursed to the
financing account. Usually, a separate amount for administrative
expenses is also appropriated to the program account. Each program
account is associated with one or more financing accounts.
(l) The financing account is the non-budget account or accounts
associated with each credit program account which holds balances,
receives the subsidy cost payment from the credit program account, and
includes all other cash flows to and from the Government resulting
from post-1991 direct loans or loan guarantees. Separate financing
accounts are required for direct loans and loan guarantees.
(m) The liquidating account is the budget account that includes all
cash flows to and from the Government resulting from unmodified
pre-1992 direct loans or loan guarantees.
(n) A cohort is all direct loans obligated or loan guarantees
committed by a program in the same fiscal year, even if disbursements
occur in subsequent fiscal years or if the loan is modified.
For post-1991 direct loans and loan guarantees subsidized by
multi-year and no-year appropriations, the cohort may be defined
either by the year of obligation or by the year of appropriation. OMB
should be consulted to determine which method is appropriate.
Post-1991 direct loans and guaranteed loans remain with their
original cohort throughout the life of the loan, even if the loan is
modified.
Pre-1992 direct loans that are modified constitute a single cohort.
Pre-1992 loan guarantees that are modified likewise constitute a
single cohort.
Accounting and other records are maintained separately for each
cohort of loans.
(o) A risk category is a subdivision of a cohort of direct loans or
loan guarantees into a group of loans that are relatively homogenous
in cost, given the facts known at the time of obligation or
commitment. Risk categories are required to be used whenever the new
direct loans obligated or loan guarantees committed within a cohort
are not relatively homogenous in cost. These risk categories group
together all loans obligated or guarantees committed for a program
during the year that share characteristics predictive of defaults and
other costs.
Risk categories are developed by agencies in consultation with OMB.
The number of categories depends on the size of the differential in
subsidy cost between categories and the ability to predict the
differential statistically based on facts known at origination.
Risk categories may be defined by characteristics or combinations of
characteristics of the loan, the project financed, and/or the
borrower. Examples of characteristics or indicators that may predict
cost include the loan-to-value ratio, the relationship between the
loan interest rate and relevant market rates, and various asset or
income ratios. Borrower-category characteristics such as type of
school attended for education loans, or country risk categories for
international loans, may be taken into account. If multiple
characteristics or indicators are used, one may cross-classify
another, or mathematical combinations may be used.
However the risk category is defined, statistical evidence must be
presented, based on historical analysis of program data or comparable
credit data, as to the likely costs--whether defaults, other
deviations from contract, or other costs--that are expected to be
associated with the loans in that category.
62.3. Interest computation.
(a) General.--The following paragraphs describe computations for
calculating interest expenses on borrowing from Treasury and interest
income on uninvested funds in financing accounts. The detailed
computations are illustrated in a series of exhibits (Exhibits 62A-L).
Alternative methods are discussed in section (g).
(b) Frequency of interest computations.--OMB has determined that
most credit programs do not have a seasonal bias in their loan
disbursement patterns. Consequently, interest expense and income
calculations for cohorts that are currently disbursing will be based
on an assumption that the actual loan amounts disbursed during the
year were disbursed equally throughout the four quarters. This
assumption allows agencies to compute interest expense and interest
income annually, at the end of each fiscal year, using the average
annual interest rate provided by OMB and Treasury. Quarterly or
monthly computations are not required. In those few programs that
have a strong seasonal pattern, special weighted average interest
rates appropriate to these patterns should be calculated.
(c) Weighted average interest rate.--The Act provides that the
interest rate for borrowing will be assigned on the basis of the
Treasury rate in effect during the period of loan disbursement. Many
individual loans are disbursed in segments over several quarters or
even years. Consequently, several interest rates can be applicable to
an individual loan. To simplify the recordkeeping, a single weighted
average interest rate is maintained for each cohort and is adjusted
each year until all the disbursements for the cohort have been made.
Each year, the current year average annual interest rate is weighted
by current year disbursements and merged with the prior year's
weighted average to calculate a new weighted average.
(d) Procedure for direct loans.--Each direct loan disbursement is
financed by two sources--subsidy transferred from the program account
and borrowing from Treasury. As each loan is disbursed by the
financing account to the individual borrower, subsidy funds are
transferred from the program account to the financing account. The
financing account makes a single borrowing from Treasury at the
beginning of each fiscal year, separately for each cohort, on the
basis of the estimated net loan disbursements for the cohort.
All borrowing is dated October 1. Interest expense is not affected
by whether all borrowed funds were disbursed or whether the original
borrowing had to be supplemented later in the year. Any additional
borrowing is also dated October 1st, and the entire amount is treated
as a single borrowing.
The disbursement status does affect the amount of borrowed cash
retained in the financing account and consequently the computation of
interest income. Interest expense accrues on the debt and interest
income accrues on the undisbursed balance of the Treasury borrowing.
The undisbursed balance of Treasury borrowing is held as uninvested
funds in Treasury and earns interest. The interest rate earned on the
uninvested funds equals the interest rate paid on borrowing from
Treasury. Hence, the interest earned on undisbursed balances exactly
offsets the interest paid on the debt that financed those balances.
(e) Procedure for loan guarantees.--The basic purpose of a financing
account for loan guarantees is to accumulate funds to finance future
defaults. Subsidy payments for loan guarantees are retained in the
financing account for lengthy periods and earn interest income.
The interest rate for cash accumulations related to each loan
guarantee is determined by the date that the commercial lender (not
the Federal agency) disburses the loan being guaranteed. Since a
variety of interest rates are applicable in each cohort, averages are
used. Program agencies must rely on lender reporting for their
information. Because of delayed reporting, the interest income
settlements with Treasury at the end of the fiscal year will include
an estimate of fourth quarter lender disbursements and collections.
The estimate will be adjusted as actual lender data is accumulated.
(f) Treasury reporting requirements.--Additional instructions on
Treasury reporting requirements, interest rates, borrowings, and
interest on uninvested funds are published in the Treasury Financial
Manual.
(g) Alternative methods for calculating interest.--Agencies may
calculate interest earnings and interest payments by the use of
financing tranches, as described in OMB Bulletin No. 92-01 (October 1,
1991). Financing tranches are subdivisions of the database which
associate Treasury interest rates at disbursement with individual
loans. Agencies may also submit other alternative methods for approval
by Treasury and OMB. Prior approval is necessary to ensure that these
methods are at least as precise as the method prescribed in this
circular and to provide an approved standard for auditing.
62.4. Administrative expenses.
(a) Background.--The program account receives an appropriation for
the subsidy costs of credit programs and an appropriation for the
administrative expenses of both pre-1992 and post-1991 direct loans
and loan guarantees. Credit administrative expenses shall be paid
from the program account.
(b) Administrative expenses paid by the program account.--The
program account shall pay all administrative expenses, defined as the
portion of the total salaries and expenses that are directly related
to credit program operations. Expenses that are tangentially related
to credit program operations should not be included. Administrative
expenses include:
--the cost of all activities related to:
-credit extension;
-loan servicing; and
-write-off and close out;
--the appropriate proportion of administrative expenses that are
shared with non-credit programs;
--the cost of operating separate offices or units that make policy
decisions for credit programs;
--the cost of loan systems development and maintenance, including
computer costs (under no circumstance will computer systems costs
be paid out of the financing account);
--the cost of monitoring credit programs and private lenders for
compliance with laws and regulations; and
--the cost of collecting delinquent loans, except for the costs of
foreclosing, managing, and selling collateral that are capitalized
or routinely deducted from the proceeds of sales.
(c) Expenses paid by the financing account.--The capitalized costs
of foreclosing, managing, and selling collateral are to be paid by
the financing account. Capitalized costs are those that add value to
property prior to sale. Costs that are routinely deducted from the
proceeds of the sales of collateral are also to be paid by the
financing account. Both of these types of costs are part of the cash
flows that must be taken into account in calculating the subsidy
costs. Since the financing account receives the subsidy cost from the
program account, the financing account shall pay these costs.
Examples of the costs of foreclosing, managing, and selling
collateral that are excluded from administrative expenses if
capitalized or routinely deducted from sales proceeds are:
--commercial sales commissions;
--closing fees;
--property taxes and fees to acquire clear title;
--property assessments;
--seller points;
--hazard insurance; and
--hazard claims.
Questions as to whether a specific cost should be paid from the
financing account or the program account should be directed to OMB.
(d) Accounting for administrative expenses.--Administrative expenses
and subsidy costs are accounted for separately in the program account.
The separate accounting for administrative expenses is intended to
provide a measure of the total cost of administering the credit
program. This separate accounting should cover all administrative
expenses for both pre-1992 and post-1991 direct loans and loan
guarantees with the following exception. For programs with no
post-1991 direct loan obligations or loan guarantee commitments, and
no pre-1992 direct loan or loan guarantee modifications,
administrative expenses will be included in the liquidating account
containing such expenses prior to the Act.
(e) Use of administrative expenses.--Amounts appropriated for
administrative expenses may not be used for subsidy costs, and amounts
appropriated for subsidy costs may not be used for administrative
expenses. Administrative or other expenses for non-credit programs
should not be paid by the appropriation for credit administrative
expenses in the program account.
(f) Direct or reimbursable expenses.--The program account may pay
administrative expenses directly or it may reimburse another account,
via an expenditure transfer, when specified in appropriations
language. In the latter case, the program account records an
obligation in object class 25.3 "Purchases of goods and services from
Government accounts" and an outlay. The receiving account records an
offsetting collection and reimbursable obligations in the appropriate
object class.
62.5. The credit subsidy model.
The credit subsidy model will be used for estimating credit
subsidies to ensure comparability and uniformity among all Federal
credit program subsidy estimates and between budget formulation and
execution. Detailed instructions on estimating the subsidy for budget
execution will accompany the model. A PC disk containing the computer
model and technical support for estimating subsidies can be obtained
from the Budget Analysis and Systems Division, OMB (phone (202)
395-3930).
Direct and Guaranteed Loan Transactions
63.1. Risk categories.
When a direct loan is obligated or a loan guarantee is committed, it
is placed in an appropriate risk category. The technical factors
(defaults, delinquencies, other potential deviations from the
contract, and other costs) associated with that risk category are used
to calculate the expected cash flows from that loan or guarantee. The
net present value of these cash flows, discounted by the interest rate
(yield) on marketable Treasury securities of comparable maturity to
the loan, is the subsidy estimate for that loan or guarantee.
All loan records necessary to measure the accuracy of the subsidy,
including records for defaulted or prepaid loans, must be retained by
cohort and risk category as long as any loans from that cohort and
risk category are outstanding. These data are used to reestimate the
subsidy annually for each risk category.
63.2. Initial estimate of the subsidy cost.
When a direct loan is obligated or a loan guarantee is committed,
the direct loan subsidy cost or loan guarantee subsidy cost is
estimated. The amount of the estimated subsidy cost is recorded as an
obligation in the credit program account (line 8.A on S.F. 143GLP or
S.F. 143DLP) and as an offsetting collection/earned receivable in the
financing account (line 3.B.(5) on S.F. 143GLP or S.F. 143DLP). The
same amount is recorded as accounts payable in the program account and
as accounts receivable in the financing account. Once the subsidy cost
is obligated in the credit program account, it is an obligated balance
until the direct loan, or a portion of the direct loan, is disbursed
from the financing account or until the guaranteed loan, or a portion
of the guaranteed loan, is disbursed by the private lender. Total
obligations for subsidy costs may not exceed the amount appropriated
for this purpose.
When calculating the subsidy to be used in obligation of subsidy
budget authority, the forecast technical assumptions for discretionary
programs shall remain the same as those used for the corresponding
risk category in the President's Budget for the fiscal year in which
the subsidy was proposed, unless legislation (appropriations or other)
mandates a specific change. For mandatory programs use the forecast
technical assumptions from the Mid-Session Review, which may have been
revised since the President's Budget. The forecast technical
assumptions include the method (including the subsidy model)
underlying the calculation of the subsidy, which shall not change from
that used in preparing the estimates for the President's Budget for
the fiscal year in which the subsidy was proposed.
In general, country risk ratings in international credit programs
are subject to the foregoing requirements. However, where
unforeseeable, substantial, and sustainable change in a country's
ability or willingness to repay occur after passage of legislation, a
new country risk rating will be reflected in the calculation of the
subsidy at the point of obligation.
The explicit technical assumptions used in calculating the subsidy
at obligation shall reflect the terms contained in the written
agreements between the Government and the borrowers. If the subsidy
rates are not calculated on a loan-by-loan basis, then the terms used
in estimating the subsidy will be the same as those used for the
President's Budget for the fiscal year in which the subsidy was
proposed. Assumptions shall be updated to reflect enacted legislation
and any regulatory action which change the terms under which the
program makes or guarantees loans. Exemptions to these requirements
must be approved in advance by OMB.
The discount rate used to calculate net present values in estimating
the subsidy cost is the applicable interest rate in the quarter when
the direct loan is obligated or the loan guarantee is committed. The
rate to be used is the Treasury interest rate appropriate for a
security of comparable maturity, using the current quarter rates
distributed through the Commerce Economic Bulletin Board.
For programs that disburse loans over two or more fiscal years after
direct loan obligation or loan guarantee commitment, a change in
method has been made beginning with subsidy budget authority obligated
in FY 1996. When calculating the subsidy at obligation for these
programs, the discount rate for the disbursement in the current year
will reflect the current quarter's rate (as above), and the discount
rates for disbursements in subsequent years will reflect the rates
that were estimated to prevail for those years for which the
appropriation was requested.
63.3. Negative subsidy costs.
The estimated subsidy cost of direct loans or loan guarantees may be
negative. Negative subsidies occur in cases where the present value of
cash inflows to the Government exceeds the present value of cash
outflows. In such cases appropriations bills must still provide
specific authority before direct loans or loan guarantees can be made.
Providing such authority will generate proprietary receipts, which are
one type of offsetting receipt.
If the estimated subsidy for a risk category within a cohort is less
than zero, the following treatment will apply:
--a special fund receipt and expenditure account known as a negative
subsidy account will be used for that program;
--an amount equal to the negative subsidy will be obligated in the
financing account when the direct loan is obligated or loan
guarantee is committed;
--an amount equal to the negative subsidy will be paid from the
financing account to the receipt account when the direct loan or
guaranteed loan is disbursed;
--these payments will be recorded in the receipt account as
proprietary receipts from the public;
--these receipts will not be available for obligation or
disbursement unless appropriated by law; and
--any appropriation or expenditure of the receipts will be recorded
in the program account.
It should be noted that obligations may not be incurred against
appropriations of receipts until the receipts have actually been
credited to the receipt account. In some cases, the receipts will not
be available until after obligations for subsidy costs (or, possibly,
administrative costs) need to be incurred in order for the program to
operate as planned. This is because the receipts from negative
subsidies are not credited to the receipt account until the underlying
direct or guaranteed loan is disbursed. Such situations may require an
appropriation from the general fund sufficient to permit obligations
until adequate receipts are available.
Negative subsidy receipts for mandatory programs may be credited
directly to the program account as offsetting collections (a special
fund account is not required). Such collections are permanent budget
authority (spending authority from offsetting collections) for subsidy
costs, including new subsidy costs, reestimates, and modifications.
Such collections are available for administrative expenses only to the
extent provided in annual appropriations acts. The amount of
offsetting collections that is precluded from obligation in a fiscal
year by a provision of law (such as a limitation or a benefit formula)
is not budget authority in that year. Instead, the amount increases
the balance of unavailable collections for that year. Budgetary
resources in mandatory accounts must be obligated, as needed, in the
following order:
--spending authority from new offsetting collections;
--spending authority from balances of offsetting collections
precluded from obligation in a prior year; and
--appropriations of new budget authority from the general fund.
63.4. Loan disbursement.
When a direct or guaranteed loan is disbursed, the financing account
receives a payment from the credit program account equal to the
subsidy cost of the loan multiplied by the proportion of the loan
being disbursed. The subsidy rate used to determine the subsidy cost
will be the same as the rate used at obligation. This payment is
recorded as an outlay in the program account and as an offsetting
collection in the financing account (line 3.B.(1), 3.B.(2) or 3.B.(3),
as appropriate, on S.F. 143GLF or S.F. 143DLF).
(1) Direct loan transactions.--The subsidy cost payment provides
part of the financing authority for a direct loan. Permanent
indefinite authority to borrow from the Treasury provides the
financing authority for the balance of the direct loan disbursement.
(2) Guaranteed loan transactions.--The subsidy cost payments for
loan guarantees are retained as unobligated balances of the financing
account to finance a portion of the guarantee claim payments (or other
payments) for a cohort of loan guarantees. These balances are held as
uninvested funds. They earn interest from the time that they are
credited to the financing account until they are disbursed for claim
payments (or other payments).
The unobligated balances are used to make claim payments, to pay
interest supplements, or to pay the capitalized costs of foreclosing,
managing, and selling collateral assets acquired as a result of
defaults on loan guarantees and to pay the costs routinely deducted
from the proceeds of sales. When obligations are incurred, these
amounts are carried as obligated balances until payments are
disbursed.
63.5. Non-subsidy collections.
Repayments of direct loan principal, interest on direct loans, fees,
proceeds from the liquidation of collateral assets, and other
collections are credited to the appropriate cohort and risk category
in the guaranteed or direct loan financing account as offsetting
collections. Each type must be accounted for separately.
Together such collections create a balance that earns interest from
Treasury. Interest will be calculated as of September 30 of each year,
using the weighted average interest rate for the cohort of the direct
loan or loan guarantee (see section 62.3).
All non-subsidy collections for a cohort in the financing account
shall be used for that cohort in the following order:
(1) to pay the capitalized costs of foreclosing, managing, and
selling collateral assets acquired as the result of defaults on direct
or guaranteed loans and costs that are routinely deducted from the
proceeds from sales (see section 62.4 for items that qualify);
(2) to maintain an unobligated balance to pay such capitalized costs
or routinely deducted costs, if any;
(3) to make annual payments of interest that accrue on borrowing
from Treasury; and
(4) to make repayments of principal on amounts borrowed from
Treasury with any remaining amounts.
Financing authority derived from non-subsidy collections may not be
used to finance new direct loans. Only financing authority derived
from offsetting collections of payments from the program account for
subsidy costs and authority to borrow from the Treasury may be used to
finance direct loans.
Reestimates
64.1. General.
A reestimate is a change in the net present value of estimated cash
flows due to changes in technical assumptions and interest rates.
Reestimates of the subsidy cost of direct loans or loan guarantees are
made at the beginning of each fiscal year following the year in which
a disbursement is made, as long as the loans are outstanding. Each
risk category must be reestimated separately.
The reestimate is made using the same method as was used for the
initial estimate. It is then compared with the previous estimate. For
this purpose, all details of the original subsidy estimates and all
subsequent reestimates should be retained in program records. Any
reestimate of the required subsidy in any risk category during the
annual review should lead to a review of the accuracy of the technical
factors by risk category in making subsidy estimates for the next
budget.
If the annual reestimate results in a cost that is both less than $1
million and 5 percent or less of the pre-reestimate subsidy value
currently recorded in that cohort, a change in the recorded obligation
is not necessary. In the subsequent year, the reestimate for an
unadjusted cohort will cover cumulatively the entire period since the
last change in the recorded obligation.
To distinguish different factors affecting changes in subsidy costs,
three types of reestimates are made. Specifically:
--Interest rate reestimates adjust the original subsidy estimates
for any difference between the interest rate when the direct or
loan guarantee was obligated (the interest rate used to calculate
the initial subsidy estimate) and the interest rate when the
direct or guaranteed loan was disbursed. An interest rate
reestimate is done after the end of every fiscal year in which
part of a loan is disbursed.
--Technical/default reestimates adjust the subsidy estimate for
differences between the original amount and timing of expected
cash flows as estimated at obligation and the amount and timing
that are currently expected based on such factors such as actual
experience, new forecasts about future economic conditions, and
improvements in the methods used to estimate future cash flows.
Because actual cash flows are experienced every year and the
ability to forecast future years also changes, this reestimate is
done after the end of every fiscal year as long as any loans are
outstanding.
--A closing reestimate is made once all the loans in the cohort have
been repaid or written off.
64.2. Interest rate reestimates.
An interest rate reestimate will compare the original subsidy
estimate at the point of obligation with the subsidy estimate using
the interest rate applicable at disbursment. The reestimate will be
made by risk category. The subsidy cost reestimate in the year
immediately following any disbursement of a direct or guaranteed loan
adjusts the initial subsidy estimate for any difference between the
two rates. All other assumptions of the initial estimate are held
constant. Once made, this reestimate is compared to the original
subsidy estimate to calculate the amount of the reestimate.
The interest rate reestimate is made only once for each disbursement
from a cohort. If a loan disburses over more than one year, the
interest rate reestimate in the second year is made only for the
portion of the loan disbursed in the first year. Reestimates are made
in following years for the portions disbursed in the years after the
first year. They are calculated in comparison to the original estimate
(i.e., the estimate before any reestimate for technical factors other
than interest and without regard to previous interest rate reestimates
on portions of the loan disbursed earlier.)
For loans with variable interest rates, the interest rate adjustment
is made to cash flows as well as the discount rate used to estimate
the subsidy cost. The interest rate reestimate includes this effect on
cash flows.
64.3. Technical/default reestimates.
Technical/default reestimates.--Technical/default reestimates are
made for changes in the technical/default assumptions used to
calculate the subsidy. This type of reestimate will compare the
subsidy estimate that already includes the reestimate for the actual
interest rate with a reestimated subsidy using updated technical
information (for defaults, fees, recoveries, etc.).
64.4. Procedures for calculating interest and technical/default
reestimates.
Section 33.11 of OMB Circular No. A-11 contains specific
instructions on calculating reestimates.
64.5. Closing reestimates.
Agencies will make a closing technical/default reestimate when all
of the loans in a cohort have been either repaid or written off. This
reestimate is based on actual accounting systems data and is to close
the accounting books for the cohort. All the procedures are applied
that are described for the technical/default reestimate and interest
on reestimates. The allocation of the reestimates and interest is by
cohort. Closing entries will be made in the accounting records.
64.6. Interest on reestimates.
An estimate must also be made for interest that would have been
earned by each cohort on the amount of the reestimates. The amount of
this estimate will be transferred to or from the financing account
with the amount of the reestimate itself, as described subsequently in
this section.
64.7. Reestimate recording procedures.
All increases or decreases in subsidy cost for different categories
within the same cohort are netted against each other; i.e., risk
categories which require increased subsidies may first draw on the
excess from any risk categories within the cohort where the reestimate
shows a subsidy decrease. No such netting may occur between cohorts.
(1) Net increase in subsidy cost.--If a reestimate for a cohort is
positive, it indicates a net increase in the subsidy cost of the
cohort as a whole since the last estimate (after transfers to any risk
categories within the cohort for which the reestimate indicates a
decrease in subsidy cost). In this case, the agency will request
apportionment of the amount of the net increase (including interest on
the reestimate). After the amount of the net increase is apportioned,
an obligation for this amount is recorded (on line 8 on S.F. 143DLP or
143GLP, Federal resources section) against the permanent indefinite
budget authority available to the program account for this purpose. At
the same time, an outlay for the same amount is made from the program
account to the financing account. Obligations for subsidy cost
increases resulting from reestimates must be recorded separately so
that they can be distinguished from obligations for the initially
estimated subsidy cost.
At the time that an outlay is made from the credit program account,
an offsetting collection is recorded (on line 3.B.(2) on S.F. 143DLF
or 143GLF) in the appropriate risk categories and cohort in the
financing account. In the case of direct loans, the offsetting
collections from the program account are used, together with
repayments from borrowers, to pay interest and repay principal on
borrowing from Treasury and for other expenses. In the case of loan
guarantees, the offsetting collections from the program account are
retained as unobligated balances, together with the unobligated
balances of the original subsidy payment and fees, until needed to pay
default claims and other expenses. The additional balances due to the
reestimate earn interest at the same rate as is paid on other funds
held by the financing account for the same cohort as the original
direct loan or loan guarantee.
(2) Net decrease in subsidy cost.--If the reestimate for a cohort is
negative, it indicates a net decrease in the subsidy cost of the
cohort as a whole since the last estimate (after transfers to any risk
categories within the cohort where the reestimate indicates an
increase in subsidy cost). An obligation in the amount of the net
decrease (including interest on the reestimate) is recorded (on line
8.D, S.F. 143GLF or line 8.E, S.F. 143DLF) in the financing account.
In the case of a direct loan, the obligation is recorded against
authority to borrow from the Treasury. In the case of a loan
guarantee, the obligation is recorded against unobligated balances
For discretionary programs, in the case of either direct loans or
loan guarantees, a disbursement (including interest on the reestimate)
is made from the financing account to a special fund receipt account
established for each credit program. The receipts in the special fund
are not available for obligation for the subsidy costs of new direct
loans and loan guarantees or other purposes except to the extent
provided in advance in annual appropriation acts.
For mandatory programs, receipts may be credited directly to the
program account as offsetting collections (a special fund account is
not required). Such collections are permanently appropriated as budget
authority (spending authority from offsetting collections) for subsidy
costs, including new subsidy costs, reestimates, and modifications.
Such collections are available for administrative expenses only to the
extent provided in annual appropriations acts. The amount of
offsetting collections that is precluded from obligation in a fiscal
year by a provision of law (such as a limitation or a benefit formula)
is not budget authority in that year. Instead, the amount increases
the balance of unavailable collections for that year. Budgetary
resources in mandatory accounts must be obligated, as needed, in the
following order:
--spending authority from new offsetting collections;
--spending authority from balances of offsetting collections
precluded from obligation in a prior year; and
--appropriations of new budget authority from the general fund.
64.8. Timing of reestimates.
At the discretion of OMB interest or technical reestimates can be
deferred to March of the following year.
Modifications
65.1. General.
The following instructions for estimating subsidies and recording
transactions apply to both direct and indirect modifications of direct
loans and loan guarantees.
A modification is a Government action that alters the estimated
subsidy cost of an outstanding direct loan (or direct loan obligation)
or loan guarantee (or loan guarantee commitment) from the estimate
based on the cash flows contained in the most recent budget submitted
to Congress. A modification does not include Government actions
permitted within the terms of existing contracts or through other
existing authorities. Existing authorities are those authorities that
apply to specific loans or a specific group of loans, not generic
authorities available to an executive branch official.
Both a Government action and an alteration in subsidy cost are
necessary conditions for a modification; a reestimate is not a
modification. A modification may result from either new legislation or
administrative action; it may apply to a single loan or guarantee as
well as a group; it may be of any size; it may apply to pre-1992
direct loans and loan guarantees as well as post-1991 direct loans and
loan guarantees; and it may affect cash flows either directly or
indirectly.
Direct modifications change the subsidy cost by altering the terms
of existing contracts, by selling loan assets, or by purchasing loan
guarantees. The subsidy cost may be increased or decreased, for
example by changing terms for: forgiveness, forbearance, reductions in
interest rates, extensions of maturity, and prepayments without
penalty. Such actions are modifications unless they are considered
work-outs as defined below, are permitted within the terms of existing
contracts, or are permitted through other existing authorities.
Indirect modifications change the subsidy cost by legislation that
alters the way in which an outstanding portfolio of direct loans or
loan guarantees is administered. Examples include a new method of debt
collection prescribed by law or a statutory restriction on debt
collection. An indirect modification produces a one-time effect on the
subsidy cost of outstanding direct loans (and direct loan obligations)
and loan guarantees (and loan guarantee commitments). For direct loan
obligations and loan guarantee commitments made after the enactment of
such legislation, the effects of the legislation are included in the
original subsidy cost estimates (or in subsequent cost reestimates)
and are not a modification.
The term "modification" does not include the routine administrative
work-outs of troubled loans or loans in imminent default. Work-outs
are actions undertaken to maximize repayments under existing direct
loans or to minimize claims under existing loan guarantees. For
post-1991 direct loans and loan guarantees, the expected effects of
work-outs on cash flow are included in the original estimate of the
subsidy cost. Therefore, to the extent that the effects of work-outs
on cash flow are the same as originally estimated, they do not alter
the subsidy cost. If the effects of work-outs on cash flow are more or
less than the original estimate, the differences in cash flow are
included in reestimates of the subsidy cost and are not modifications.
The term "modification" also does not include actions that are
permitted within the terms of existing contracts, such as prepayment
without penalty. For pre-1992 direct loans and loan guarantees, the
effects of these actions do not have to be estimated. For post-1991
direct loans and loan guarantees, the expected effects of such actions
on cash flow are included in the original estimate of the subsidy
cost. Therefore, to the extent that the effects of such actions on
cash flow are the same as originally estimated, they do not alter the
subsidy cost. If the effects of such actions on cash flow are more or
less than the original estimate, the differences in cash flow are
included in reestimates of the subsidy cost and are not modifications.
Neither the term "modification" nor the term "work-out" includes
additional disbursements to borrowers that increase the amount of
direct loans outstanding. These disbursements are considered to be new
loans in the amount of the increment.
When direct loans or loan guarantees are modified, the subsidy cost
of the modification must be calculated. When post-1991 direct loans or
loan guarantees are modified, a modification adjustment transfer
between the financing account and the general fund must also be
calculated.
65.2. Modification cost.
A modification cost is any increase in subsidy cost that results
from the modification of a direct loan or loan guarantee (or direct
loan obligation or loan guarantee commitment). Specifically, it is the
difference between the currently estimated net present value of the
remaining cash flows under the terms of the previously existing direct
or loan guarantee contract contained in the most recent budget
submitted to Congress and the currently estimated net present value of
the loan cash flows under the terms of the modified contract.
65.3. Estimating the modification cost.
When a direct loan or loan guarantee is modified, the subsidy cost
of the modification must be calculated.
The modification cost is calculated as follows:
(1) Estimate the remaining cash flows expected just before the
modification under the loan contract terms assumed in the most
recent budget submitted to Congress just before the modification.
These estimates must assume the same deviations (defaults,
delinquencies, etc.) from contract terms as assumed for the risk
category in which the loan is classified.
(2) Discount the cash flows estimated in step 1 by the applicable
interest rate (yield) in the quarter when the modification occurs.
The applicable interest rate is the interest rate (yield) on
marketable Treasury securities that have a comparable maturity to
the remaining maturity (not the original maturity) of the loan
that is being modified (but prior to any modification of the
loan).
(3) Estimate the cash flows expected under the modified contract
terms. For that portion of the cash flows unaffected by the
modified contract terms, if any, these estimates must assume the
same deviations (defaults, delinquencies, etc.) from contract
terms as assumed for the risk category in which the loan is
classified.
(4) Discount the cash flows estimated in step 3 by the applicable
interest rate (yield) in the quarter when the modification occurs.
The applicable interest rate is the interest rate (yield) on
marketable Treasury securities that have a comparable maturity to
the remaining maturity (not the original maturity) of the loan
that is being modified (after any modification of the term of the
loan.) (If a loan asset is sold, the amount for this step equals
the net proceeds from the sale.)
(5) Subtract the amount calculated in step 4 from the amount
calculated in step 2 to produce the estimated subsidy cost
resulting from the modification.
The results of this calculation will be positive, negative, or zero.
A positive estimate indicates that the Government will incur an
additional subsidy cost because of the modification. A negative
estimate indicates there will be a savings. A zero estimate would
indicate that the modification will not change the subsidy cost.
65.4. Credit accounting recording.
Detailed guidance on the specific credit accounting transactions for
modifications can be obtained from the Budget Concepts Branch, OMB
(phone (202) 395-3172).
Credit Apportionment and Reapportionments
66.1. Basis for apportionment.
Unless specifically exempted by OMB, all program, financing, and
liquidating accounts will be apportioned. The apportionment document
signed by the responsible OMB officials and all attachments
transmitted to the agency are a part of the apportionment, unless
otherwise specified on the apportionment document.
66.2. Timing of requests.
Consistent with section 44.2, initial apportionment requests for
direct loans and guaranteed loans will be submitted to OMB within 10
calendar days after the enactment of the appropriations act.
A reapportionment request is required for subsidy reestimates, which
will be made at the beginning of each fiscal year (starting with the
fiscal year following the year in which a disbursement is made) as
long as the loans are outstanding (see section 64). A reapportionment
request is required for subsidy modifications when the modification
is approved by OMB (see section 65).
66.3. Types of apportionment.
Credit accounts are apportioned in the same manner as non-credit
accounts. This means that the credit accounts may be apportioned by
time periods or by categories, or by a combination of time periods and
categories, as determined by OMB.
66.4. Reporting format and procedures.
Unless otherwise specified by OMB, an original and one copy of an
apportionment form will be submitted to OMB. The original will be
signed by an officer duly authorized by the head of the agency. The
standard form 132 will continue to be used for liquidating accounts.
For program accounts that contain credit administrative expenses for
both direct loans and guaranteed loans:
--standard form 142DL for direct loans will be used to apportion the
direct loan subsidy, all administrative expenses in the program
account, and the amounts in the corresponding direct loan
financing account; and
--standard form 142GL for guaranteed loans will be used to apportion
the loan guarantee subsidy in the program account and the amounts
in the corresponding guaranteed loan financing account.
For program accounts that contain credit administrative expenses for
guaranteed loans only, standard form 142GL for guaranteed loans will
be used to apportion the administrative expenses, the subsidy for the
loan guarantees in the program account, and the amounts in the
corresponding guaranteed loan financing account.
66.5. Subsidy rates for apportionment.
Subsidy rates to apportion subsidy budget authority are calculated
using the following assumption:
(a) Economic assumptions.--In general, the subsidy is to be
recalculated each quarter. [Note: For some programs it will be
calculated once a year at the beginning of the first quarter for
changes in interest rates.] The rate to be used is the Treasury
interest rate appropriate for a comparable maturity, using the current
quarter rates distributed through the Commerce Economic Bulletin
Board.
(b) Explicit Technical Assumptions.--In general, these will be the
same as those contained in the President's Budget for the fiscal year
in which the subsidy was proposed. However, these assumptions should
reflect current expectations about the terms to be contained in the
written agreement between the Government and the borrower. Hence, in
circumstances where the terms are known to have changed (either by
administrative action or by law), these assumptions should be changed
so that actual terms are reflected in the subsidy estimate. Any change
in these assumptions from those contained in the President's Budget is
subject to any reprogramming requirements that apply to the act
providing the subsidy appropriation.
(c) Forecast Technical Assumptions.--For discretionary programs,
these assumptions shall remain the same as in the President's Budget
for the fiscal year in which the subsidy was proposed, unless
legislation (appropriations or other) mandates a specific change.
Mandatory programs which had revised subsidy rates in the Mid-Session
Review should use the forecast technical assumptions from the
Mid-Session Review during apportionment. The forecast technical
assumptions include the method (including the subsidy model)
underlying the calculation of the subsidy, which should not change
from the method used in preparing the estimates for the President's
Budget for the fiscal year in which the subsidy was proposed.
66.6. Direct loan apportionment and reapportionment schedule (S.F.
142DL) and line entries.
This section explains the line entries for the apportionment
schedule (S.F. 142DL) for direct loans. Exhibit 63A provides an
illustration of the initial apportionment (S.F. 142DL) for the direct
loan program account and financing account. The schedule
simultaneously apportions the direct loan program account and
financing account (see exhibit 63A).
The schedule is divided into two major sections. The top section is
called "Federal resources"; the bottom section is called "Application
of resources". "Federal resources" presents information on the
budgetary resources available to the accounts. "Application of
resources" presents the amounts apportioned.
From left to right, the schedule is divided into three major
sections: the amounts of the previous apportionment (if any); the
agency request (if any); and the amounts apportioned by OMB. Within
each of the three major sections, there are two columns: one for the
program account and one for the financing account.
The following explanation of the line entries for the direct loan
apportionment and reapportionment schedule (S.F. 142DL) covers the
specific lines and rules that are unique to direct loan program and
financing accounts. The letter "P" (for program) or "F" (for
financing) indicates the account for which this entry is appropriate.
Part IV provides general procedures, line entries, and rules for
apportionment and reapportionment schedules. To the extent that
additional lines are needed, use the stub entries and definitions
provided in Part IV upon approval by OMB.
S.F. 142DL APPORTIONMENT OF DIRECT LOAN PROGRAM AND FINANCING ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Account Explanation
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Budget and financing
authority:
a. Subsidy: current definite P Enter the amount of definite
appropriations for direct loan
subsidies (including modifications)
that is specified in an appropriations
act and becomes available on or after
October 1 of the fiscal year.
This amount will be used to pay the
financing account the subsidy to make
new loans and modifications.
b. Subsidy: current P Enter the amount of indefinite
indefinite appropriations for direct loan
subsidies for mandatory programs that
is specified in an appropriations act
and becomes available on or after
October 1 of the fiscal year.
c. Administrative expenses P Enter the amount of appropriations for
administrative expenses that is
specified in an appropriations act and
becomes available on or after October 1
of the fiscal year.
d. Subsidy: permanent P Enter the amount of permanent indefinite
indefinite appropriations estimated to be required
for subsidy cost reestimates or for the
subsidy costs of certain mandatory
programs.
e. Permanent indefinite F Enter the amount of permanent indefinite
authority to borrow authority to borrow from the Treasury
that, when added to the subsidy, will
equal the amount apportioned for direct
loans on line 8.B.(2)
o to pay interest to Treasury in the
absence of adequate cashflow at the
start of a loan cycle;
o to pay the costs of foreclosing,
managing, or selling collateral that
are not capitalized or routinely
deducted from sales proceeds when
amounts set aside for collection are
inadequate; and
o to pay the liquidating account when
modifications to pre-1992 direct loans
are apportioned.
f. Modification adjustment F Enter the amount of modification
transfers adjustment transfers received from the
general fund to be apportioned.
-------------------------------------------------------------------------------
Line 3. Offsetting collections Include refunds of obligations incurred
from: in prior fiscal years in the appropriate
a. Non-Federal sources: category when the refunds are collected.
(1) Fees collected F Enter the amount of fees collected.
(2) Collections of principal F Enter the amount of repayments of
principal collected.
(3) Collections of interest F Enter the amount of interest collected.
(4) Proceeds from collateral F Enter the amount of proceeds from
collateral collected. This amount
should be gross of the amounts that are
routinely deducted from the proceeds of
sales and the costs of foreclosing,
managing, and selling collateral that
are capitalized.
(5) Other collections P or F Enter the amount of any collections
received that are not categorized in
lines (1) through (4). Mandatory
program accounts may be credited with
offsetting collections from financing
accounts for downward reestimates.
(6) Earned or anticipated P or F Enter the amounts that have been earned
but not collected but not yet collected or that are
anticipated to be credited to this
account for items (1) through (4) above
during the current fiscal year but not
collected. As these amounts are
collected they should be reported on
lines (1) through (4) above and
deducted from this line. Mandatory
program accounts may be credited with
offsetting collections from financing
accounts for downward reestimates.
b. Federal sources:
(1) Subsidy: current F Enter the amount of current definite
definite appropriations for new and modified
direct loan subsidies collected from
the program account.
(2) Subsidy: permanent F Enter the amount of permanent
indefinite appropriations for subsidy reestimates
collected from the program account.
(3) Subsidy: (specify) F Enter the amount of appropriations other
than current definite or permanent
indefinite appropriations for new and
modified direct loan subsidies
collected from the program account.
Specify the type of subsidy, as
appropriate.
(4) Interest from Treasury F Enter the amount of interest collected
from Treasury.
(5) Earned but not collected F Enter the amount of receivables from
other Federal government accounts that
are anticipated to be credited to this
account during the current fiscal year;
provided that the amount is a valid
obligation in the paying account.
(6) Anticipated F Enter the amount of receivables from
other Federal government accounts that
are anticipated to be credited to this
account during the current fiscal year.
-------------------------------------------------------------------------------
Line 4. Recoveries from prior
year obligations:
a. Actual P or F Enter the amount of recoveries of
obligations incurred in prior fiscal
years.
b. Anticipated for rest of P or F Enter the amount of recoveries that are
year anticipated to be credited to this
account during the current fiscal year.
-------------------------------------------------------------------------------
Line 6. Capital transfers:
a. Paid (-) F Enter the amount (as a negative) of
principal repayments or modification
adjustment transfers paid to Treasury.
b. To be paid (-) F Enter the amount (as a negative) of
principal repayments or modification
adjustment transfers to be paid to
Treasury.
-------------------------------------------------------------------------------
Line 7. Total resources P or F Enter the sum of lines 1 though 6.
-------------------------------------------------------------------------------
APPLICATION OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Apportioned:
Category A:
(1) First quarter
(2) Second quarter OMB will determine the level of detail
necessary. Agencies, after consultation
with OMB, will enter estimated amounts
at the level indicated. The
illustration in exhibit 66C is the
minimum necessary.
(3) Third quarter
(4) Fourth quarter
Category B:
(1) Direct loan subsidy P Enter the amount of the apportionment
request for direct loan subsidy to be
paid to the financing account and the
amount apportioned. If part of the
request is for modifications to loans,
as defined in section 65, then footnote
this line. In the footnote, specify the
amount on this line for modifications.
(2) Direct loan F Enter the amount of the apportionment
request for direct loans.
(3) Interest to Treasury F Enter the amount of the apportionment
request for payments of interest to
Treasury. Additional amounts needed due
to a change in Treasury rate (yield)
between the time of obligation and the
time of disbursement are automatically
apportioned.
(4) Administrative expenses P Enter the amount of the apportionment
request for administrative expenses.
(5) Capitalized costs, etc. F Enter the amount of the apportionment
request for the costs of foreclosing,
managing, and selling collateral that
are capitalized or routinely deducted
from the proceeds of sales.
(6) Payments to liquidating F Enter the amount of the apportionment
account request for the financing account to
pay the liquidating account for
pre-1992 loans that are modified.
(7) Payments to receipt F Enter the amount requested to be paid to
account a special fund receipt account for
downward reestimates of the subsidy.
-------------------------------------------------------------------------------
Line 9. Withheld pending P Enter the amount of budgetary resources
rescission to be withheld from availability
pending Congressional action on a
Presidential rescission proposal. Such
amounts are subject to reporting
pursuant to the Impoundment Control Act
(2 U.S.C. 683) (see Part VII).
-------------------------------------------------------------------------------
Line 10. Deferred P Enter the amount of budgetary resources
being set aside for possible use at a
later date, before the funds lapse.
Such amounts are subject to the
Impoundment Control Act (2 U.S.C. 684).
Include amounts deferred to meet future
contingencies under authority of 31
U.S.C. 1512 and amounts deferred for
other reasons (see Part VII).
-------------------------------------------------------------------------------
Line 12. Total resources P and F Enter the sum of lines 8 through 11.
Line 12 should equal line 7.
-------------------------------------------------------------------------------
66.7. Guaranteed loan apportionment and reapportionment schedule (S.F.
142GL) and line entries.
This section explains the line entries for the apportionment
schedule (S.F. 142GL) for guaranteed loans. Exhibit 66B provides an
illustration of the initial apportionment (S.F. 142GL) for the
guaranteed loan program account and financing account. The schedule
simultaneously apportions the guaranteed loan program account and
financing account.
From top to bottom, the schedule is divided into two major sections
that are divided by a double line.
The top section apportions the program level. It is divided into two
sections. The first of these is called "Program Level". It provides
information on the total guaranteed loan commitments that are
supportable by the enacted subsidy and the maximum Federal
participation that is supportable by the enacted subsidy. The second,
called "Application", shows the amount apportioned.
The bottom section apportions the Federal resources. It is divided
into two sections. The first is called "Federal resources". It
presents information on the budgetary and financing resources
available to the accounts. The other section, called "Application",
presents the amounts apportioned.
From left to right, the schedule is divided into three major
sections: the amounts of the previous apportionment (if any); the
agency request (if any); and the amounts apportioned by OMB. Within
each of the three major sections, there are two columns: one for the
program account and one for the financing account.
The following explanation of the line entries for the credit
apportionment and reapportionment schedule (S.F. 142GL) for guaranteed
loans covers the specific lines and rules that are unique to
guaranteed loan program and financing accounts. Part IV provides
general procedures, line entries, and rules for apportionment and
reapportionment schedules. To the extent that additional lines are
needed, use the stub entries and definitions provided in Part IV, upon
approval by OMB.
S.F. 142GL APPORTIONMENT OF GUARANTEED LOAN PROGRAM AND FINANCING ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Account Explanation
-------------------------------------------------------------------------------
PROGRAM LEVEL
-------------------------------------------------------------------------------
Line 1. Guaranteed loan
levels:
a. Current year P Enter the total amount of guaranteed
loan commitments supportable by the
current fiscal year's budget authority
for new commitments, or in the case of
negative subsidies, the amount
authorized by appropriations acts.
b. Unused from prior years P Enter the total amount of guaranteed
loan commitments supportable by
unexpired budget authority from prior
fiscal years.
-------------------------------------------------------------------------------
Line 2. Federal share P Enter the total amount of the Federal
supportable by subsidy Government's maximum participation in
the amount on line 1 above.
-------------------------------------------------------------------------------
APPLICATION
-------------------------------------------------------------------------------
Line 3. Apportioned:
Category A:
(1) First quarter
(2) Second quarter OMB will determine the level of detail
necessary. Agencies, after consultation
with OMB, will enter estimated amounts
at the level indicated. The
illustration in exhibit 66B is the
minimum necessary.
(3) Third quarter
(4) Fourth quarter
Category B:
(1) Guaranteed loan levels P Enter the amount of the apportionment
request for the guaranteed loan level
and the amount apportioned.
(2) Federal share P Enter the amount of the apportionment
supportable by subsidy request for the Federal share
supportable by the subsidy and the
amount apportioned.
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Budget and financing
authority:
a. Subsidy: current definite P Enter the amount of definite
appropriations for guaranteed loan
subsidies (including modifications)
that is specified in an appropriations
act and becomes available on or after
October 1 of the fiscal year.
b. Subsidy: current P Enter the amount of indefinite
indefinite appropriations for guaranteed loan
subsidies for mandatory programs that
is specified in an appropriations act
and becomes available on or after
October 1 of the fiscal year.
c. Administrative expenses P Enter the amount of appropriations for
administrative expenses that is
specified in an appropriations act and
becomes available on or after October 1
of the fiscal year.
d. Subsidy: permanent P Enter the amount of permanent indefinite
indefinite appropriations estimated to be required
for subsidy reestimates.
e. Permanent indefinite F Enter the portion of the apportioned
authority to borrow permanent indefinite authority to
borrow from Treasury that was used.
Additional amounts needed due to a
change in Treasury rate (yield) between
the time of obligation and the time of
disbursement are automatically
apportioned to the financing account.
In subsequent reestimates, the program
account will repay the financing
account to make it whole (see line
8.B(3)).
f. Modification adjustment F Enter the amount of modification
transfers adjustment transfers received from the
general fund to be apportioned.
-------------------------------------------------------------------------------
Line 3. Offsetting collections Include refunds of obligations incurred
from: in prior fiscal years in the
appropriate category when the refunds
are collected.
a. Non-Federal sources
(1) Fees collected F Enter the amount of fees collected.
(2) Collections of principal F Enter the amount of repayments of
principal collected.
(3) Collections of interest F Enter the amount of interest collected.
(4) Proceeds from collateral F Enter the amount of proceeds from
collateral collected. This amount
should be gross of the amounts that are
routinely deducted from the proceeds of
sales and the costs of foreclosing,
managing, and selling collateral that
are capitalized.
(5) Other collections P or F Enter the amount of any collections
received that are not categorized in
lines (1) through (4). Mandatory
program accounts may be credited with
offsetting collections from financing
accounts for downward reestimates.
(6) Earned or anticipated P or F Enter the amounts that have been earned
but not collected but not yet collected or that are
anticipated to be credited to this
account for items (1) through (4) above
during the current fiscal year but not
collected. As these amounts are
collected they should be reported on
lines (1) through (4) above and
deducted from this line. Mandatory
program accounts may be credited with
offsetting collections from financing
accounts for downward reestimates.
b. Federal sources:
(1) Subsidy: current F Enter the amount of current definite
definite appropriations for guaranteed loan
subsidies collected from the program
account.
(2) Subsidy: permanent F Enter the amount of permanent
indefinite appropriations for subsidy reestimates
collected from the program account.
(3) Subsidy: (specify) F Enter the amount of current indefinite
or permanent definite appropriations
for new and modified direct loan
subsidies collected from the program
account.
(4) Interest from Treasury F Enter the amount of interest collected
from Treasury.
(5) Accounts receivable F Enter the amount of receivables from
other Federal government accounts that
are anticipated to be credited to this
account during the current fiscal year;
provided that the amount is a valid
obligation in the paying account.
(6) Receipts from F Enter the amount of payments received
liquidating account from the liquidating account for
pre-1992 guarantees that are modified.
See section 65.
-------------------------------------------------------------------------------
Line 4. Recoveries from prior
year obligations:
a. Actual P or F Enter the amount of recoveries of
obligations incurred in prior fiscal
years.
b. Anticipated for rest of P or F Enter the amount of recoveries from
year other Federal government accounts that
are anticipated to be credited to this
account during the current fiscal year.
-------------------------------------------------------------------------------
Line 6. Capital transfers:
a. Paid (-) F Enter the amount (as a negative) of
principal repayments and modification
adjustment transfers paid to Treasury.
b. To be paid (-) F Enter the amount (as a negative) of
principal repayments and modification
adjustment transfers to be paid to
Treasury during the fiscal year.
-------------------------------------------------------------------------------
Line 7. Total resources P or F Enter the sum of lines 1 though 6.
-------------------------------------------------------------------------------
APPLICATION OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Apportioned: OMB will determine the level of detail
Category A: necessary. Agencies, after consultation
(1) First quarter with OMB, will enter estimated amounts
(2) Second quarter at the level indicated. The
(3) Third quarter illustration in exhibit 66B is the
(4) Fourth quarter minimum necessary.
Category B:
(1) Guaranteed loan subsidy P Enter the amount of the apportionment
request for guaranteed loan subsidies
and the amount apportioned by type.
(a) Current definite P
(b) Current indefinite P
(c) Permanent indefinite P
(2) Default claims F Enter the amount of the apportionment
request for default claims.
(3) Interest to Treasury F Enter the amount of the apportionment
request for payments of interest to
Treasury. Additional amounts needed due
to a change in Treasury rate (yield)
between the time of obligation and the
time of disbursement are automatically
apportioned.
(4) Administrative expenses P Enter the amount of the apportionment
request for administrative expenses.
(5) Capitalized costs, etc. F Enter the amount of the apportionment
request for the costs of foreclosing,
managing, and selling collateral that
are capitalized or routinely deducted
from the proceeds of sales.
(6) Interest supplements F Enter the amount of the apportionment
request for interest supplements.
(7) Payments to receipt F Enter the amount requested to be paid to
account a special fund receipt account for
downward reestimates of the subsidy.
(8) Subsidy for P Enter the amount of the apportionment
modifications request for modifications.
-------------------------------------------------------------------------------
Line 11. Unapportioned balance Enter the amount of budgetary resources
that is not apportioned (made available
for obligation) in order to preserve a
portion of the fund's capital so it
will continue to be available for the
purposes for which it was provided (see
section 85.4). The amount on this line
should equal the amount shown on line
7, less the amounts apportioned on line
8, less any amounts withheld pending
rescission or deferred and shown on
lines 9 or 10, respectively.
-------------------------------------------------------------------------------
Line 12. Total resources P or F Enter the sum of lines 8 through 11.
Line 12 should equal line 7.
-------------------------------------------------------------------------------
Reports on Credit Execution
67.1. General.
Unless otherwise specified by OMB, credit execution reports will be
prepared by all agencies to provide current data on each credit
account, whether or not apportioned. Expired accounts will be included
on the same form as the unexpired account (or accounts) of the same
title.
The reporting procedures for the S.F. 133 apply to the S.F. 143.
These procedures are discussed in section 52 of this Circular.
Supporting data for credit execution reports include data on risk
categories and cohorts, whenever such data are required by OMB.
OMB should be consulted regarding the timing of budget execution
reports to be submitted directly to OMB.
67.2. Reporting format and procedures.
For liquidating accounts, continue to use standard form 133.
For program accounts that contain credit administrative expenses for
direct loans only or both direct loans and guaranteed loans:
--standard form 143DLP for direct loans will be used to report data
on the direct loan subsidy and all administrative expenses in the
program account; and
--standard form 143GLP for guaranteed loans will be used to report
data on the loan guarantee subsidy in the program account.
For program accounts that contain credit administrative expenses for
guaranteed loans only, standard form 143GLP for guaranteed loans will
be used to report data on the administrative expenses and the subsidy
for the loan guarantees in the program account.
For financing accounts, credit execution data will be reported at
the account level, except that data will be reported by cohort for the
final report for the year only. For direct loan financing accounts,
use standard form 143DLF. For guaranteed loan financing accounts, use
standard form 143GLF.
67.3. Reports on credit execution-direct loans.
There will be two separate reports, S.F. 143DLP for the program
account (exhibit 67A) and S.F. 143DLF for the financing account
(exhibit 67B).
From top to bottom, the schedule is divided into three major
sections. The top section is called "Federal resources". It presents
information on the budgetary resources available to the accounts. The
middle section is called "Status of resources". It provides
information on the obligations that were incurred and the available
balances. The bottom section is called "Relation of obligations to
outlays" on the S.F. 143DLP and "Relation of obligations to
disbursements" on the S.F. 143DLF. It represents the cost to the
taxpayers of the activities in this account.
From left to right, the first column in the schedule presents the
total for the account as a whole. The other columns differ for the
program account and the financing account because the program account,
which is typically an annual appropriation, expires for purposes of
new obligations; while the financing account, which is a no-year
account, does not. Therefore, the program account presents the
unexpired year in the second column and the expired years in
subsequent columns. The financing account presents the information by
cohorts.
(a) Program accounts.--The following explanation of the line entries
for the credit execution reports covers the specific lines and rules
that are unique to direct loan program accounts (see exhibit 67A).
Part V provides general procedures, line entries, and rules for budget
execution reports. To the extent that additional lines are needed, use
the stub entries and definitions provided in Part V upon approval by
OMB.
S.F. 143DLP EXECUTION REPORTS FOR DIRECT LOAN PROGRAM ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Explanation
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Budget and financing
authority:
a. Subsidy: current definite Enter the amount of definite
appropriations for direct loan
subsidies that is specified in an
appropriation act and becomes available
on or after October 1 of the fiscal
year.
To the extent that an amount has been
provided for modifications, footnote
the total. In the footnote specify the
amount provided for modifications.
b. Subsidy: current indefinite Enter the amount of indefinite
appropriations for direct loan
subsidies for mandatory programs that
is specified in an appropriation act
and becomes available on or after
October 1 of the fiscal year.
c. Administrative expenses Enter the amount of appropriations for
administrative expenses that is
specified in an appropriations act and
becomes available on or after October 1
of the fiscal year.
d. Subsidy: permanent indefinite Enter the amount of permanent indefinite
appropriations that was apportioned for
upward subsidy reestimates or for the
subsidy costs of certain mandatory
programs.
-------------------------------------------------------------------------------
Line 3. Offsetting collections from:
a. Non-Federal sources:
(1) Other collections Enter the amount of offsetting
(For mandatory programs only.) collections from negative subsidies or
downward reestimates.
-------------------------------------------------------------------------------
Line 7. Total resources Enter the sum of the amounts shown on
lines 1 through 6.
-------------------------------------------------------------------------------
STATUS OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Obligations incurred:
a. Direct loan subsidy Enter the subsidy cost as an obligation
when the loan is obligated. For
instructions on calculating the direct
loan subsidy, see section 62.5.
When the subsidy cost is shown as
obligated on this line, it will also be
shown as an obligated balance,
end-of-period (on line 13.B), until the
loan is disbursed. Record accounts
payable in the amount of the
obligation.
When the loan is disbursed, enter an
outlay on line 14. The amount of the
outlay will be equal to the subsidy cost
multiplied by the proportion of the loan
being disbursed. Reduce the end of
period obligated balance on line 13.B by
the amount of the outlay.
Note: the total face value of all loans
obligated may not exceed the limitation
on direct loan obligations specified in
the appropriations language.
b. Administrative expenses Enter the obligations incurred for
administrative expenses. See section
62.4 for amounts that may be properly
reported on this line.
c. Subsidy for modifications Enter the obligations incurred for
modifications. To calculate the
subsidy, see section 65.
d. Subsidy for reestimates Enter the obligations incurred for
increases in subsidy cost discovered by
reestimates. To calculate the
reestimate, see section 64.
-------------------------------------------------------------------------------
Line 9. Unobligated balances There should be no unobligated balances
available: from permanent indefinite authority for
subsidy reestimates or for the subsidy
costs of mandatory programs. The
obligations and outlays for reestimates
should occur simultaneously.
a. Direct loan subsidy Enter the unobligated balance of the
amount apportioned for direct loan
subsidy.
b. Administrative expenses Enter the unobligated balance of the
amount apportioned for administrative
expenses.
c. Subsidy for modifications Enter the unobligated balance of the
amount apportioned for modifications.
-------------------------------------------------------------------------------
Line 11. Total resources Enter the sum of the amounts on lines 8
through 10. This amount will be
identical to the amount on line 7.
-------------------------------------------------------------------------------
(b) Financing accounts.--The following explanation of the line
entries for the credit execution reports covers the specific lines and
rules that are unique to direct loan financing accounts (see exhibit
67B). Part V provides general procedures, line entries, and rules for
budget execution reports. To the extent that additional lines are
needed, use the stub entries and definitions provided in Part V upon
approval by OMB.
S.F. 143DLF EXECUTION REPORTS FOR DIRECT LOAN FINANCING ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Explanation
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Financing authority:
a. Permanent indefinite authority to Enter the amount of permanent indefinite
borrow authority to borrow from the Treasury
that has been apportioned on the latest
S.F. 142.
b. Modification adjustment transfers Enter the amount of modification
adjustment transfers received from the
general fund.
-------------------------------------------------------------------------------
Line 3. Offsetting collections from: Include refunds of obligations incurred
a. Non-Federal sources: in prior fiscal years in the
appropriate category when the refunds
are collected.
(1) Fees collected Enter the amount of fees collected.
(2) Collections of principal Enter the amount of repayments of
principal collected.
(3) Collections of interest Enter the amount of interest collected.
(4) Proceeds from collateral Enter the amount of proceeds from
collateral collected. This amount
should be gross of the amounts that are
routinely deducted from the proceeds of
sales and the costs of foreclosing,
managing, and selling collateral that
are capitalized.
(5) Other collections Enter the amount of collections received
that are not categorized by line (1)
through (4).
(6) Earned or anticipated but not Enter the amounts that have been earned
collected but not yet collected or that are
anticipated to be credited to this
account for items (1) through (4) above
during the current fiscal year but not
collected.
b. Federal sources:
(1) Subsidy: current definite Enter the amount of payments from
current appropriations for new and
modified direct loan subsidies
collected from the program account.
(2) Subsidy: permanent indefinite Enter the amount of payments from
permanent appropriations for subsidy
reestimates collected from the program
account.
(3) Subsidy: (specify) Enter the amount of appropriations other
than current definite or permanent
indefinite appropriations for new and
modified direct loan subsidies
collected from the program account.
Specify the type of subsidy, as
appropriate.
(4) Interest from Treasury Enter the amount of interest collected
from Treasury.
(5) Earned but not collected Enter the amount of receivables from
other Federal government accounts
provided that a valid obligation has
been incurred and recorded against the
other account.
(6) Anticipated Enter the amount of funds that are
anticipated to be received for the rest
of the year.
-------------------------------------------------------------------------------
Line 6. Capital transfers:
a. Paid (-) Enter the amount (as a negative) of
principal repayments paid to Treasury.
b. To be paid (-) Enter the amount (as a negative) of
principal repayments that are to be
paid to Treasury at the next annual
repayment date.
-------------------------------------------------------------------------------
Line 7. Total resources Enter the sum of lines 1 though 6.
-------------------------------------------------------------------------------
STATUS OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Obligations incurred for:
a. Direct loans Enter the amount of direct loans for
which obligations have been incurred.
b. Interest payments to Treasury Enter the amount of interest owed to
Treasury for the reporting period,
including amounts paid.
c. Capitalized costs, etc. Enter the amount of obligations for the
cost of foreclosing, managing, and
selling collateral that are capitalized
or routinely deducted from the proceeds
of sales.
d. Payments to liquidating account Enter the amount of obligations for
pre-1992 loans that are modified.
e. Payments to receipt account Enter the amount of obligations for
payments to a special fund receipt
account for downward reestimates of the
subsidy.
-------------------------------------------------------------------------------
Line 9. Unobligated balances
available:
a. Direct loans Enter the unobligated balance of the
amount apportioned for direct loans.
b. Interest payments to Treasury Enter the unobligated balance of the
amount apportioned for interest owed to
Treasury.
c. Capitalized costs, etc. Enter the unobligated balance of the
amount apportioned for the cost of
foreclosing, managing, and selling
collateral that are capitalized or
routinely deducted from the proceeds of
sales.
d. Payments to liquidating account Enter the amount of unobligated balance
apportioned for pre-1992 loans that are
modified.
e. Payments to receipt account Enter the amount of unobligated balances
for payments to a special fund receipt
account for downward reestimates of the
subsidy.
-------------------------------------------------------------------------------
Line 10. Unobligated balances not
available:
a. Apportioned for subsequent period Enter the amount apportioned by time
periods that will not become available
until after the reporting period, as
approved on the most recent S.F. 142.
b. Withheld pending rescission For instructions on the use of this
line, see Part VII.
c. Deferred For instructions on the use of this
line, see Part VII.
d. Unapportioned balance Enter the amount shown on line 10.D of
the S.F. 142.
-------------------------------------------------------------------------------
Line 11. Total resources Enter the sum of the amounts shown on
lines 8 through 10.
-------------------------------------------------------------------------------
RELATION OF OBLIGATIONS TO DISBURSEMENTS
-------------------------------------------------------------------------------
Line 12. Obligations incurred, net Take the sum of the amounts on line 8
and subtract the sum of the amounts on
line 3 and line 4A.
-------------------------------------------------------------------------------
Line 13. Net unpaid obligations:
a. Obligated balances, as of October Enter the obligated balances at the
1 beginning of the fiscal year.
b. Obligated balances, net When the transfers out of the account
transferred are greater than the transfers into the
account, enter the net transfer as a
negative (-). When the transfers into
the account are greater than the
transfers out of the account, enter the
net transfer as a positive (+).
c. Obligated balances, end of period Enter the obligated balances at the end
of the reporting period.
-------------------------------------------------------------------------------
Line 14. Disbursements (net) Take the amount on line 12, add the
amount on line 13.a; add the amount on
line 13.b (if the amount on this line
is positive) or subtract the amount on
line 13.b (if the amount on this line
is negative); and subtract the amount
on line 13.c.
-------------------------------------------------------------------------------
67.4. Reports on credit execution--guaranteed loans.
There will be two separate reports, S.F. 143GLP for the program
account and S.F. 143GLF for the financing account. The report for the
program account and page two of the report for the financing account
present the status of the apportioned resources.
From top to bottom, the report for the program account and page two
of the report for the financing account are divided into three major
sections. The top section is called "Federal resources". It presents
information on the resources available to the accounts. The middle
section is called "Status of resources". It provides information on
the obligations that were incurred and the available balances. The
bottom section is called "Relation of obligations to outlays" on the
S.F. 143GLP for the program account and "Relation of obligations to
disbursement" for page two of the S.F. 143GLF for the financing
account.
From left to right, the first column in the schedule presents the
total for the account as a whole. The other columns differ for the
program account and the financing account because the program account,
which is an annual account, expires for purposes of new obligations;
while the financing account, which is a no-year account, does not.
Therefore, the program account presents the unexpired year in the
second column and the expired years in subsequent columns. The
financing account presents the information by cohorts. Page one of the
financing account presents the status of the apportionment of the
program level.
(a) Program accounts.--The following explanation of the line entries
for the credit execution reports covers the specific lines and rules
that are unique to guaranteed loan program accounts (see exhibit 67C).
Part V provides general procedures, line entries, and rules for budget
execution reports. To the extent that additional lines are needed, use
the stub entries and definitions provided in Part V upon approval by
OMB.
S.F. 143GLP EXECUTION REPORTS FOR GUARANTEED LOAN PROGRAM ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Explanation
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Budget and financing
authority:
a. Subsidy: current definite Enter the amount of current definite
appropriations for guaranteed loan
subsidies that is specified in an
appropriation act and becomes available
on or after October 1 of the fiscal
year.
b. Subsidy: current indefinite Enter the amount of current indefinite
appropriations for guaranteed loan
subsidies for mandatory programs that
is specified in an appropriation act
and becomes available on or after
October 1 of the fiscal year.
c. Administrative expenses Enter the amount of administrative
expenses that is specified in an
appropriations act and becomes
available on or after October 1 of the
fiscal year.
d. Subsidy: permanent indefinite Enter the amount of permanent indefinite
appropriations for subsidy reestimates
or for the subsidy costs of certain
mandatory programs.
-------------------------------------------------------------------------------
Line 7. Total resources Enter the sum of the amounts shown on
lines 1 through 6.
-------------------------------------------------------------------------------
STATUS OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Obligations incurred:
a. Guaranteed loan subsidy Enter the subsidy cost as an obligation
when the loan guarantee commitment is
made. For instructions on calculating
the guaranteed loan subsidy see section
62.5.
When the subsidy cost is obligated on
this line, it will be shown as an
obligated balance, end-of-period (on
line 13.B), until the guaranteed loan
or a portion of the guaranteed loan is
disbursed by the non-Federal lender.
Record accounts payable in the amount
of the obligation.
When the loan is disbursed, enter an
outlay on line 14. The amount of the
outlay will be equal to the subsidy
cost multiplied by the proportion of
the loan being disbursed. Reduce the
end of period obligated balance on line
line 13.B by the amount of the outlay.
Note: The total face value of all loan
guarantee commitments may not exceed a
limitation on loan guarantee commit-
ments specified in the appropriations
language.
b. Administrative expenses Enter the obligations incurred for
administrative expenses. See section
62.4 for amounts that may be properly
reported on this line.
c. Subsidy for modifications Enter the obligations incurred for
modifications. To calculate the
subsidy, see section 65.
d. Subsidy for reestimates Enter the obligations incurred for
increases in subsidy cost discovered by
reestimates. To calculate the
reestimate, see section 64.
-------------------------------------------------------------------------------
Line 9. Unobligated balances There should be no unobligated balances
available: from permanent indefinite authority for
subsidy reestimates or for the subsidy
costs of mandatory programs.
a. Guaranteed loan subsidy Enter the unobligated balance of the
amount apportioned for guaranteed loan
subsidy.
b. Administrative expenses Enter the unobligated balance of the
amount apportioned for administrative
expenses.
c. Subsidy for modifications Enter the unobligated balance of the
amount apportioned for modifications.
-------------------------------------------------------------------------------
Line 11. Total resources Enter the sum of the amounts on lines 8
through 10. This amount will be
identical to the amount on line 7.
-------------------------------------------------------------------------------
(b) Financing accounts.--The following explanation of the line
entries for the credit execution reports covers the specific lines and
rules that are unique to guaranteed loan financing accounts (see
exhibit 67D). Part V provides general procedures, line entries, and
rules for budget execution reports. To the extent that additional
lines are needed, use the stub entries and definitions provided in
Part V upon approval of OMB. The account total column is required
during each reporting period. The detail by cohort of loans is
required only on the final S.F. 143GLF for the fiscal year.
S.F. 143GLF EXECUTION REPORTS FOR GUARANTEED LOAN FINANCING ACCOUNTS
-------------------------------------------------------------------------------
Line Entry Explanation
-------------------------------------------------------------------------------
PROGRAM LEVEL
-------------------------------------------------------------------------------
Line 1. Guaranteed loan levels:
a. Current year Enter the amount apportioned on line 1.A
of the most recent S.F. 142.
b. Unused from prior years Enter the amount apportioned on line 1.B
of the most recent S.F. 142.
-------------------------------------------------------------------------------
Line 2. Federal share supportable by Enter the amount apportioned on line 2
subsidy of the most recent S.F. 142.
-------------------------------------------------------------------------------
STATUS
-------------------------------------------------------------------------------
Line 3. Total new guaranteed loan Enter the total amount of full principal
commitments of commitments to guarantee loans by
private lenders. If this amount is
greater than the amount on line 1,
there is an apparent violation of the
Antideficiency Act.
-------------------------------------------------------------------------------
Line 4. Outstanding, start of year Enter the amount of guaranteed loan
principal outstanding at the start of
the fiscal year.
-------------------------------------------------------------------------------
Line 5. Disbursements by non-Federal
lenders:
a. New guaranteed loans Enter the amount of guaranteed loan
principal disbursed by non-Federal
lenders.
b. Guaranteed loans sold to the Enter the face value amount of
public with recourse guaranteed loan principal associated
with loans sold to non-Federal buyers
with recourse to the Federal
Government.
-------------------------------------------------------------------------------
Line 6. Repayments and prepayments (-) Enter the amount of principal repayments
and prepayments.
-------------------------------------------------------------------------------
Line 7. Adjustments:
a. Terminations for defaults that Enter the amount of loan principal
result in loans receivable (-) reduced by terminations for default
that subsequently become a loan
receivable in which the formerly
guaranteed borrower is deemed to owe
the agency for the amount of claims
paid as a result of the borrower's
default.
b. Terminations for defaults that Enter the amount of loan principal
result in acquisition of property reduced by terminations for default
(-) that lead to the acquisition of
property by the agency.
c. Terminations for defaults that Enter the amount of loan principal
result in claim payments (-) reduced by terminations for default
that lead to claim payments by the
agency that result in neither a loan
receivable nor the acquisition of
property.
d. Other adjustments, net (+) or (-) Enter the amount of loan principal
reduced or increased for reasons other
than those covered by the lines listed
above; i.e., outstanding principal
balances of guaranteed loans
transferred to or received from other
accounts. Explain the nature of the
adjustment in a footnote.
-------------------------------------------------------------------------------
Line 8. Outstanding, end of period Enter the amount of guaranteed loan
principal outstanding at the end of the
reporting period. This should equal the
sum of lines 4 through 7.
-------------------------------------------------------------------------------
Line 9. Federal share of new Enter the amount of line 3 that is
commitments subject to Federal guarantee. Include
the percent of the Federal share in the
stub entry of this line. If this amount
is greater than the amount on line 2,
there is an apparent violation of the
Antideficiency Act.
-------------------------------------------------------------------------------
Line 10. Guaranteed amount of Enter the amount of the guaranteed loan
guaranteed loans outstanding, end of principal associated with line 8 that
period is subject to Federal guarantee. To the
extent that the guarantee covers both
principal and interest, this amount
should not include interest. Include
the percent of the Federal share in the
stub entry of this line. If this amount
is greater than the amount on line 2,
there is an apparent violation of the
Antideficiency Act.
-------------------------------------------------------------------------------
FEDERAL RESOURCES
-------------------------------------------------------------------------------
Line 1. Financing authority:
a. Permanent indefinite authority to Enter the portion of the apportioned
borrow permanent indefinite authority to
borrow from the Treasury that was used.
b. Modification adjustment transfers Enter the amount of modification
adjustment transfers received from
Treasury's general fund.
-------------------------------------------------------------------------------
Line 3. Offsetting collections from:
a. Non-Federal sources:
(1) Fees collected Enter the amount of fees collected.
(2) Collections of principal Enter the amount of repayments of
principal collected.
(3) Collections of interest Enter the amount of interest collected.
(4) Proceeds from collateral Enter the amount of proceeds from
collateral collected. This amount
should be gross of the amounts that are
routinely deducted from the proceeds of
sales and the costs of foreclosing,
managing, and selling collateral that
are capitalized.
(5) Earned or anticipated but not Enter the amounts that have been earned
collected Include refunds of but not yet collected or that are
obligations incurred in prior anticipated to be credited to this
fiscal years (see section 65.6) in account for items (1) through (4) above
the appropriate category when the during the current fiscal year but not
refunds are collected.
b. Federal sources:
(1) Subsidy: current definite Enter the amount of current definite
appropriations for guaranteed loan
subsidies collected from the program
account.
(2) Subsidy: permanent indefinite Enter the amount of permanent
appropriations for subsidy reestimates
collected from the program account.
(3) Subsidy: (specify) Enter the amount of appropriations other
than current definite or permanent
indefinite appropriations for new and
modified guaranteed loan subsidies
collected from the program account.
Specify the type of subsidy.
(4) Interest from Treasury Enter the amount of interest collected
from Treasury.
(5) Earned but not collected Enter the amount of receivables from
other Federal government accounts for
which valid obligations have been
incurred.
(6) Anticipated Enter the amount of funds that are
anticipated to be received for the rest
of the year.
(7)Receipts from liquidating Enter the amount of payments received
accounts from liquidating accounts for pre-1992
guarantees that have been modified. See
section 65.
-------------------------------------------------------------------------------
Line 6. Capital transfers:
a. Paid (-) Enter the amount (as a negative) of
principal repayments paid to Treasury.
b.To be paid (-) Enter the amount (as a negative) of
principal repayments to be paid to
Treasury during the fiscal year.
-------------------------------------------------------------------------------
Line 7. Total resources Enter the sum of lines 1 though 6.
-------------------------------------------------------------------------------
STATUS OF RESOURCES
-------------------------------------------------------------------------------
Line 8. Obligations incurred for:
a. Default claims Enter the amount of claims due as a
result of the borrower's default.
b. Interest payments to Treasury Enter the amount of interest owed to
Treasury through the reporting period,
including amounts paid.
c. Capitalized costs, etc. Enter the amount of obligations for the
cost of foreclosing, managing, and
selling collateral that are capitalized
or routinely deducted from the proceeds
of sales.
d. Interest supplements and other Enter the amount of obligations for
payments to lenders payments to lenders other than default
claims.
e. Payments to receipt accounts Enter the amount of obligations for
payments to a special fund receipt
account for downward reestimates of the
subsidy.
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Line 9. Unobligated balances
available:
a. Default claims Enter the unobligated balance of the
amount apportioned for claims due as a
result of default by borrowers.
b. Interest payments to Treasury Enter the unobligated balance of the
amount apportioned for interest owed to
Treasury.
c. Capitalized costs, etc. Enter the unobligated balance of the
amount apportioned for the cost of
foreclosing, managing, and selling
collateral that are capitalized or
routinely deducted from the proceeds of
sales.
d. Payments to receipt account Enter the unobligated balance of the
amount apportioned for payments to a
special fund receipt account for
downward reestimates of the subsidy.
e. Interest supplements and other Enter the unobligated balances of the
payments to lenders amount apportioned for payments to
lenders other than default claims.
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Line 10. Unobligated balances not
available:
a. Apportioned for subsequent period Enter the amount apportioned by time
periods that will not become available
until after the reporting period, as
approved on the most recent S.F. 142.
b. Withheld pending rescission For instructions on the use of this
line, see Part VII.
c. Deferred For instructions on the use of this
line, see Part VII.
d. Unapportioned balance Enter the amount shown on line 11 of the
S.F. 142.
e. Other balances not available.
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Line 11. Total resources Enter the sum of the amounts shown on
lines 8 through 10.
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Closing Accounts
68.1. General.
This section provides specific rules for closing accounts for credit
programs. Part XI provides general procedures for closing accounts and
defines terms. To the extent that the instructions in this section
differ from the instructions in Part XI, the instructions in this
section supersede those in Part XI.
68.2. Program accounts.
Generally these are "fixed" accounts with annual appropriations. The
appropriations in these accounts are available for disbursement for
only five years after the year in which the obligational authority of
the appropriations expires.
For loans that are normally disbursed beyond the five-year period of
availability, OMB Circular No. A--11 provides guidance on requesting
appropriations with disbursement authority to match the normal
disbursement rate of the loan program.
68.3. Financing accounts.
These are revolving funds, which are no-year accounts. As with
non-credit no-year accounts, the amounts available do not expire and
the accounts are not automatically closed.
68.4. Liquidating accounts.
For direct loan programs, the only legal purposes for which balances
will be available will be to pay the following costs of loans
obligated by September 30, 1991:
--to pay interest to the Treasury or the Federal Financing Bank for
amounts borrowed;
--to repay principal borrowed from the Treasury or the Federal
Financing Bank;
--to disburse loans; and
--to pay the costs of foreclosing, managing, and selling collateral
that are capitalized or routinely deducted from the proceeds of
sales.
For loan guarantee programs, the only legal purposes for which
balances will be available will be to pay the following costs of
guarantees committed by September 30, 1991:
--to pay interest to the Treasury or the Federal Financing Bank for
amounts borrowed;
--to repay principal borrowed from the Treasury or the Federal
Financing Bank;
--to pay default claims;
--to pay interest supplements; and
--to pay the costs of foreclosing, managing, and selling collateral
that are capitalized or routinely deducted from the proceeds of
sales.
Resources of the liquidating account will also be legally available
for administrative expenses for credit programs that were discontinued
as of October 1, 1991 and that will have no modifications
(a) Excess balances.--The need for the balances in the liquidating
accounts will diminish as the loans are closed out. Any excess
balances will be transferred to the general fund as capital transfers,
which are nonexpenditure transfers. They will not count as outlays.
Nonexpenditure transfers are accomplished via Treasury standard form
1151. Such transfers shall be made from time to time but at least once
each year.
These amounts should be transferred to the capital transfer receipt
account 2813, "Repayment of capital stock (name of corporation)", or
to receipt account 2814, "Other repayments of investments and
recoveries, name of corporation or revolving fund", as appropriate.
These receipt accounts are not budgetary accounts in that they do not
offset outlays.
Excess balances in special and trust funds, if any, will not be
returned to the associated receipt accounts. These amounts are no
longer available for any purpose since the purposes for which they
were provided no longer exist. Therefore, these excess balances will
be transferred to the general fund, as described above.
(b) Lack of funds to pay interest and repay borrowing from
Treasury.--If a liquidating account does not have other funds
sufficient to make the payments described above, it is authorized to
use permanent indefinite appropriations pursuant to section 505(d) of
the Act. Appropriations to repay principal are not counted as budget
authority or outlays. Appropriations to make interest payments are
counted as budget authority and outlays. Any subsequent collections
received by the account that are not required to pay interest or repay
principal will be treated as excess balances and returned to Treasury
as described above.
68.5. Reappropriation.
To the extent that an appropriation act or other law extends the
availability of the unexpended balances that would otherwise be
canceled in a credit account, the unexpended balances will be treated
in the same manner as a non-credit account.
Fund Control and Credit Accounting Systems
69.1. General.
This section provides specific rules for credit accounting and fund
control systems. Part III provides general procedures for agency
accounting and fund control systems. To the extent that the
instructions in this section differ from the instructions in Part III,
the instructions in this section supersede those in Part III.
69.2. Review and approval of credit fund control systems.
The head of each agency is required by law to prescribe by
regulation a system of administrative control of funds (see section
31.3). For credit programs, the agency's fund control system is
required:
(a) to restrict both obligations and expenditures from each program
account, financing account, and liquidating account to the lesser of:
--the amounts available for administrative expenses, direct loan
subsidies, direct loan levels, guaranteed loan subsidies,
guaranteed loan levels, and any limitations specified in law; or
--the amounts apportioned for the amounts specified above.
(b) to enable the head of the agency to determine responsibility for
an obligation or expenditure exceeding the categories specified above.
69.3. Requirements to report Antideficiency Act violations.
In accordance with the instructions in section 32.2, the agency head
will furnish to the President, through the Director of OMB, and to the
Congress, information on Antideficiency Act violations. For all direct
loan and guaranteed loan program and financing accounts, this includes
violations of the following nature:
(a) Overobligation or overexpenditure of amounts appropriated for
the subsidy cost.--This is any case where an officer or employee of
the United States has made or authorized a direct loan obligation or
loan guarantee commitment that requires a subsidy cost obligation or
expenditure in excess of amounts appropriated and apportioned for such
purposes. Modifications of direct loans or loan guarantees (or of
direct loan obligations or loan guarantee commitments), as defined in
section 65, that result in obligations or expenditure in excess of
apportioned unobligated balances of subsidy amounts are violations.
(b) Overobligation or overexpenditure of the credit level
supportable by the enacted subsidy.--This is any case where an officer
or employee of the United States has made or authorized a direct loan
obligation or loan guarantee commitment, that is in excess of the
level specified in law. This includes, for example, obligations or
expenditures that are in excess of a limitation on direct loan
obligations or guaranteed loan commitments.
(c) Overobligation or overexpenditure of the amount appropriated for
administrative expenses.--This is any case where an officer or
employee of the United States has made or authorized an expenditure or
created or authorized an obligation that is in excess of the amount
appropriated for administrative expenses.
(d) Obligation or expenditure of the expired unobligated balance of
the subsidy, except to correct mathematical or data input errors in
calculating subsidy amounts.--This is any case where an officer or
employee of the United States has made or authorized an expenditure or
created or authorized an obligation, including a commitment, against
unobligated subsidy balances after the period of obligational
authority has expired. Correction of mathematical or data input errors
up to the amount of the expired unobligated balance of the subsidy are
specifically exempted. Corrections of these errors in excess of the
amount of the expired unobligated balance of the subsidy are
violations.