# EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON, DC 20503

October 16, 1996

OMB BULLETIN NO. 97-01

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES 

SUBJECT:  Form and Content of Agency Financial Statements 

1.  **Purpose.**  This Bulletin and the accompanying Attachment define the form and content of financial statements of the executive departments and agencies listed in the Attachment, as required by 31 U.S.C. 3515(d).

This Bulletin incorporates the concepts and standards contained in the Statements of Federal Financial Accounting Concepts (SFFACs) and Statements of Federal Financial Accounting Standards (SFFASs) recommended by the Federal Accounting Standards Advisory Board (FASAB) and approved by the Secretary of the Treasury, the Director of the Office of Management and Budget (OMB), and the Comptroller General as of the date of this Bulletin.  These concepts and standards are listed in the Attachment.

2.  **Policy.**  Financial statements submitted to the Director of the OMB pursuant to this Bulletin shall be prepared in accordance with the formats and instructions presented in the Attachment.  The purpose of the statements is to present financial position and the results of operations, as required by 31 U.S.C. 3515(b).  The formats and instructions provide a framework within which individual agencies have the flexibility to provide information useful to the Congress, agency managers, and the public.  The formats and instructions provide guidance for meeting the requirements contained in the SFFASs.  Executive departments and agencies are expected to continue preparing other  financial reports which are used to monitor and control obligations and expenditures of budgetary resources. 

3.  **Effective Date.**  The provisions of this Bulletin are effective in their entirety for the preparation of financial statements for the fiscal year ending September 30, 1998.  The schedule displayed on page 3****of the Attachment should be referred to for guidance on the application of the provisions of this Bulletin for fiscal years ending September 30, 1996 and 1997.  Early implementation of the provisions of this Bulletin is permitted only with the advance approval of OMB. 

4.  **Inquiries and Copies.**  Inquiries should be addressed to the Financial Standards and Reporting Branch, Office of Federal Financial Management, OMB, Washington, DC 20503, telephone (202) 395-3993.  Individual copies of the Bulletin may be obtained by contacting the Executive Office of the President, Publications Office, telephone (202) 395-7332.  This document is also available on the OMB home page on the Internet which is currently located at http://www.whitehouse.gov/WH/EOP/OMB/html/ombhome.html.

                                                                                            /s/

Franklin D. Raines

Director

Attachment

EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGETWASHINGTON, DC 20503

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

FROM:G. Edward DeSeve /s/

Controller

SUBJECT: Technical Amendments to OMB Bulletin 97-01, *Form and Content of Agency*

*Financial Statements*

1.  Purpose.  This transmittal memorandum contains technical amendments to OMB Bulletin 97-01, *Form and Content of Agency Financial Statements.*  The purpose of these amendments is to address new standards and issues that have arisen since the issuance of Bulletin 97-01.

2.  Applicability.  The amendments to OMB Bulletin 97-01 apply to those entities listed in  Appendix A and B of OMB Bulletin No. 98-08,*Audit Requirements for Federal Financial Statements.*

3.  Effective Date.  The amendments are effective with financial statements prepared for fiscal years ending on and after September 30, 1998.

4.  Revisions.  Replace original pages in OMB Bulletin 97-01 with the replacement pages and the Appendix attached to this memorandum (See the attached list of replacement pages).

5.  Inquiries.  Further information concerning this memorandum may be obtained by contacting the Office of Management and Budget, Office of Federal Financial Management, Washington, DC 20503, telephone (202) 395-3993.

6.  Copies.  Individual copies of this memorandum, as well as the amended version of OMB Bulletin 97-01, may be obtained from the OMB home page on the Internet at http://www.whitehouse.gov/WH/EOP/omb.

Attachments

**Technical Amendments to OMB Bulletin 97-01, *Form and Content of Agency Financial Statements***

****

****

**Instructions:**

**Replace the following pages for the reasons indicated:**

****

****

9 

Added new paragraphs 2 and 3 and renumbered existing paragraphs to recognize that the formats are illustrative only and may be modified and to clarify that comparative statements are not required until the Year 2000. 

10

Renumbered paragraphs because of the additions of paragraphs 2 and 3 on page 9. 

13

Added a requirement for reporting on Year 2000 issues.

1415

Replace Consolidated Balance Sheet. "Governmental Assets" and "Governmental Liabilities" captions deleted.

1617

18

1.  Removed reference to "Governmental Assets."

2.  Added language to provide reporting guidance on intragovernmental assets.

3.  Defined "non-federal entity. "

4.  Provided that interest receivable is to be reported as part of related asset account.

5.  Provided guidance on reporting of receivables related to borrowings under certain circumstances.

6.  Provided guidance on the reporting of special receipt accounts associated with negative subsidies.

21

22

23

1.  Expanded the definition of liabilities covered by budgetary resources to include certain unrealized resources available in the future.

2.  Deleted "Governmental Liabilities. "

3.  Provided for interest payable to be reported as part of related liability account.

4.  Provided guidance on reporting of negative subsidy allowances and positive and negative loan guarantee liabilities.

5.  Changed title of "Pensions, Other Retirement Benefits, and Other Post-Employment Benefits" to "Federal Employee and Veteran's Benefits. "

6.  Provided that "Insurance Liabilities" are to be reported as "Other Liabilities. "

25

Replaced the Consolidating Statement of Net Cost.  Changed the format to include a combined total column.

26

27

28

Revised "Instructions for the Statement of Net Cost" to clarify which costs are to be included in inter-entity costs (See Program Costs) and to provide for the reporting of combined totals. 

30

Replaced the Consolidating Statement of Changes in Net Position for the purpose of placing parenthesis where appropriate.

33

Replaced the Statement of Budgetary Resources with a Combining Statement of Budgetary Resources to facilitate statement preparation.  Elimination of intra-agency transactions are not required. 

34

Changed the instructions for the Statement of Budgetary Resources to provide for a combining statement in lieu of a consolidated statement.

35

Changed the heading on the Statement of Financing to read "consolidated or combined) to indicate that this statement may be either a consolidated or combined statement.

36

37

Changed the instructions for the Statement of Financing to provide for a combining statement in lieu of a consolidated statement.

38

Modified the Statement of Custodial Activity to specify the agencies to which resources were transferred and the amounts transferred to each agency. 

39

Amended the Instructions for the Statement of Custodial Activity to require the reporting of the agencies to which resources were transferred and the amounts transferred to each agency.

44

Revised Note 4 to remove the caption "Governmental Securities."

45

Revised the Instructions for Note 4 to remove the discussion of "Governmental Securities."

46

Revised Note 6  to remove the caption "Governmental Securities."

55

Modified the instruction in the first full sentence to read: "The sum of columns 2,3 and 5 less column 4 is reported as Defaulted Guaranteed Loans Receivable, Net (column 6)."

61

62

Amended the Instructions to Note 10 to provide an exception to the rule that all debt is to be classified as not covered by budgetary resources.  The exception is credit program debt and loan guarantee and other liabilities covered by budgetary resources.

63

Revised Note 11 to remove the caption "Governmental."

64

Amended the definition of "Other Liabilities" by removing the discussion of clean-up costs.   

68

Revised the title of Note 13 from "Pensions, Other Retirement Benefits, and Other Post-Employment Benefits" to "Federal Employee and Veteran's Benefits."

69

Added Note 17, "Environmental Clean-up Costs."

71

72

Added a requirement to disclose gross cost and earned revenue by budget functional classification.

73

Revised the disclosure requirements for non-exchange revenues to delete the requirement to disclose revenue-related transactions in accordance with amendments to SFFAS No. 7.

77

Amended the reporting requirements for stewardship investments to limit reporting to the current year for 1998 and, in subsequent years, report data on each year subject to audit until five years of such data is reported. 

78

Revised the supplementary reporting requirements for custodial activities to include factors affecting the collectibility of compliance assessments recognized as taxes receivable and the amounts by which trust funds may be over or under-funded in comparison with the requirements of law, if reasonably estimable.

January 7, 2000

M-00-05

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS, CHIEF FINANCIAL OFFICERS, AND INSPECTORS GENERAL

FROM:Deidre Lee  /S/

Acting Deputy Director for Management

SUBJECT:  Technical Amendments to OMB Bulletin No. 97-01,

*Form and Content of Agency Financial Statements*

1.  Purpose.  This transmittal memorandum contains technical amendments to and clarification of OMB Bulletin No. 97-01, *Form and Content of Agency Financial Statements,*dated October 16, 1996, as amended by OMB Memorandum 99-03, *Technical Amendments to OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements,*dated November 20, 1998.  The technical amendments address revised financial statement reporting requirements for fiscal years (FY) 1999 and 2000, except for amendments which may result from new Federal accounting standards (e.g., amendments to multi-use heritage assets).  These amendments include the following:

(a) Pursuant to SFFAS No. 14, *Amendments to Deferred Maintenance Reporting*, deferred maintenance is to be presented as required supplementary information rather than as a note disclosure and line item on the statement of net cost with a reference to the note disclosure.

(b) Intra-governmental amounts and the related federal trading partners for assets, liabilities, earned revenue from trade (buy/sell) transactions, and non-exchange revenue are to be presented as required supplementary information.  The gross cost to generate earned revenue from trade transactions are to be presented by budget functional classifications as required supplementary information.

(c) The instructions for the statement of net cost require a separate disclosure of intra-governmental gross cost and earned revenue by budget functional classification.  This reporting requirement is in addition to the current requirement to disclose total entity gross cost and earned revenue by budget functional classification.

(d) The instructions for the balance sheet clarify form and content guidance previously issued by the Office of Management and Budget (OMB) and require Benefits Due and Payable to be separately reported from Other Liabilities.

(e) The balance sheet presentation may be simplified by:

i.combining AEntity@ and ANon-Entity@ assets on the face of the balance sheet, and reporting ANon-Entity@ assets in a note disclosure rather than on the statement; and

ii.combining ALiabilities Covered by Budgetary Resources@ and ALiabilities Not Covered by Budgetary Resources@ on the face of the balance sheet, and reporting ALiabilities Not Covered by Budgetary Resources@ in a note disclosure rather than on the statement.

(f)  In accordance with OMB Memorandum 99-03, *Technical Amendments to OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements,*dated November 20, 1998, the authority to prepare a combining statement of budgetary resources and a combined statement of financing is extended through FY 2000.

2.  Policy.  Financial statements shall be prepared in accordance with the formats and instructions presented in OMB Bulletin No. 97-01, as amended by OMB Memorandum 99-03 and this Attachment.  The FY 1999 and FY 2000 financial statements shall be submitted to the Director of OMB no later than the statutory due dates of March 1, 2000, and 2001, respectively.  Also, no later than March 6 following the end of the fiscal year, Chief Financial Officers shall submit a copy of their agency=s management representation letter to the: (1) Controller, Office of Federal Financial Management, OMB; (2) Commissioner, Financial Management Service (FMS), Department of the Treasury; and (3) Acting Assistant Comptroller General, Accounting and Information Management Division, General Accounting Office (GAO) (See OMB Bulletin No. 98-08, AAudit Requirements for Federal Financial Statements,@ paragraph 6, and subsequent issuances).  The OMB, GAO, and FMS will use these letters in conjunction with the preparation and audit of the financial statements of the U.S. Government.  

3.  Applicability.  The amendments to OMB Bulletin No. 97-01 apply to those entities listed in  Appendix A and B of OMB Bulletin No. 98-08,*Audit Requirements for Federal Financial Statements*, and subsequent issuances.

4.  Effective Date.  The technical amendments described in paragraph 1 (a), (b), (c) and (d) are effective for financial statements prepared for fiscal years ended after September 30, 1998 (FY 1999).  The technical amendments described in paragraph 1 (e) and (f) are optional for fiscal years 1999 and 2000.

5.  Recent Developments.  Recent noteworthy developments in, and changes to, federal accounting and reporting standards for federal governmental entities include the following: 

(a) On October 19, 1999, the AICPA Council passed a resolution recognizing that standards promulgated by the Federal Accounting Standards Advisory Board constitute generally accepted accounting principles (GAAP) under Rule 203, AAccounting Principles,@ of the AICPA=s *Code of Professional Conduct*.  Upon their adoption by OMB, FASAB standards become binding on Federal agencies.  Members may now express an opinion that the financial statements of a federal governmental entity are in conformity with GAAP if they are prepared in conformity with accounting principles promulgated by the FASAB.  Pursuant to the resolution, the Statements of Federal Financial Accounting Standards issued since March 1993 are recognized as GAAP for the applicable federal governmental entities.

(b) OMB issued SFFAS No. 15, *Management=s Discussion and Analysis*(MD&A),  requiring MD&A to be included in each general purpose federal financial report as required supplementary information and identifying subjects that should be addressed in the MD&A.  The standards are effective for reporting periods that begin *after* September 30, 1999.  See SFFAS No. 15 for reporting requirements. 

(c) OMB issued SFFAS No. 17, *Accounting for Social Insurance*, requiring benefits due and payable to be reported separately and requiring the reporting of supplementary stewardship information that facilitates assessing the program=s long-term sustainability and the ability of the program to raise resources from future program participants to pay for benefits proposed to present participants.  The standards are effective for reporting periods that begin after September 30, 1999.  See SFFAS No. 17 for reporting requirements.

6.  Inquiries.  Further information concerning this memorandum may be obtained by contacting the Office of Management and Budget, Office of Federal Financial Management, Washington, DC 20503, telephone (202) 395-3993.

7.  Copies.  Individual copies of this memorandum may be obtained from the OMB home page on the Internet at http://www.whitehouse.gov/OMB/.

Attachment

**ATTACHMENT**

**OMB BULLETIN NO. 97-01**

**FORMATS AND INSTRUCTIONS**

**FOR THE**

**FORM AND CONTENT OF**

**AGENCY FINANCIAL STATEMENTS**

**ATTACHMENT TO OMB BULLETIN NO.  97-01**

**TABLE OF CONTENTS**

INTRODUCTION AND SUMMARY..............................................................................**1**

Purpose.................................................................................................................**1**

Background..........................................................................................................**1**

Coverage...............................................................................................................**1**

Effective Date.......................................................................................................**2**

Reporting Entity....................................................................................................**3**

Content of Annual Financial Statement..................................................................**4**

Relationship of Financial Statements to Accountability Reports .............................  **5**

Hierarchy of Accounting Principles and Standards.................................................**6**

EXECUTIVE DEPARTMENTS AND AGENCIES COVERED BY THIS BULLETIN..   **7******

GENERAL INSTRUCTIONS FOR THE FINANCIAL STATEMENTS..........................**8**

INSTRUCTIONS FOR THE OVERVIEW.......................................................................**11**

BALANCE SHEET FORMAT.........................................................................................**14**

INSTRUCTIONS FOR THE BALANCE SHEET............................................................**16**

Assets...................................................................................................................**16**

Liabilities...............................................................................................................**21**

Net Position..........................................................................................................**24**

STATEMENT OF NET COST FORMAT........................................................................**25**

INSTRUCTIONS FOR THE STATEMENT OF NET COST...........................................**26**

STATEMENT OF CHANGES IN NET POSITION FORMAT........................................**30**

INSTRUCTIONS FOR THE STATEMENT OF CHANGES IN NET POSITION .........**31**

STATEMENT OF BUDGETARY RESOURCES FORMAT............................................**33**

INSTRUCTIONS FOR THE STATEMENT OF BUDGETARY RESOURCES...............**34**

STATEMENT OF FINANCING FORMAT....................................................................**35**

INSTRUCTIONS FOR THE STATEMENT OF FINANCING .......................................**36**

STATEMENT OF CUSTODIAL ACTIVITY FORMAT.................................................**38**

INSTRUCTIONS FOR THE STATEMENT OF CUSTODIAL ACTIVITY....................**39**

NOTES TO THE FINANCIAL STATEMENTS..............................................................**41**

Significant Accounting Policies..............................................................................**41**

Fund Balances With Treasury................................................................................**41**

Cash, Foreign Currency and Other Monetary Assets..............................................**42**

Investments...........................................................................................................**44**

Accounts Receivable.............................................................................................**45**

Other Assets.........................................................................................................**46**

Direct Loans and Loan Guarantees, Non-Federal Borrowers..................................**47**

Inventory and Related Property.............................................................................**57**

General Property, Plant, and Equipment..................................................................**60**

Debt......................................................................................................................**61**

Other Liabilities....................................................................................................**63**

Leases...................................................................................................................**65**

Pensions, Other Retirement Benefits, and Other Post-Employment Benefits...........**68**

Life Insurance Liabilities.........................................................................................**68**

Unexpended Appropriations..................................................................................**69**

Contingencies.......................................................................................................**69**

Footnote Disclosures Related to the Statement of Net Cost...................................**69**

Footnote Disclosures Related to the Statement of Changes in Net Position...........**71**

Footnote Disclosures Related to the Statement of Budgetary Resources ...............**72**

Footnote Disclosures Related to the Statement of Financing..................................**72**

Footnote Disclosures Related to the Statement of Custodial Activity.....................   **72**

Footnote Disclosures not Related to a Specific Statement.....................................**73**

REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION............................**74**

Stewardship PP&E................................................................................................**74**

Stewardship Investments.......................................................................................**76**

Risk Assumed Information.....................................................................................**77**

REQUIRED SUPPLEMENTARY INFORMATION.......................................................**78**

Statement of Budgetary Resources........................................................................**78**

Statement of Custodial Activity............................................................................**78**

Segment Information.............................................................................................**78**

OTHER ACCOMPANYING INFORMATION................................................................**80**

Performance Measures...........................................................................................   **80**

Revenue Foregone..................................................................................................**80**

Tax Burden/Tax Gap............................................................................................**80**

DISCLOSURE CHECKLIST...........................................................................................**81**

List of Standards and Effective Dates....................................................................**82**

Disclosures Required by SFFAS No. 1..................................................................**83**

Disclosures Required by SFFAS No. 2..................................................................**84**

Disclosures Required by SFFAS No. 3..................................................................**84**

Disclosures Required by SFFAS No. 4..................................................................  **93**

Disclosures Required by SFFAS No. 5..................................................................**93**

Disclosures Required by SFFAS No. 6..................................................................**96**

Disclosures Required by SFFAS No. 7..................................................................**102**

Disclosures Required by SFFAS No. 8..................................................................**107**

**INTRODUCTION AND SUMMARY**

**I.Purpose.**  This Bulletin is issued under the authority of  31 U.S.C. 3515 (d).  The Bulletin defines the form and content for financial statements that are required to be submitted to the Director of the Office of Management and Budget (OMB) pursuant to the requirements of 31 U.S.C. 3515(a).  These statements are in addition to the reports submitted to OMB for purposes of monitoring and controlling the obligation and expenditure of budgetary resources.

This Bulletin incorporates the concepts and standards contained in the Statements of Federal Financial Accounting Concepts (SFFACs) and Statements of Federal Financial Accounting Standards (SFFASs) recommended by the Federal Accounting Standards Advisory Board (FASAB) and issued by OMB as of the date of this Bulletin.  These concepts and standards are listed on page **8** of this Attachment.  

**II.Background.**  Federal agencies have traditionally prepared financial reports to monitor and control the obligation and expenditure of budgetary resources.  With the enactment of the Chief Financial Officers (CFOs) Act, Congress called for the production of financial statements that fully disclose a Federal entity's financial position and results of operations, and provide information not only for the effective allocation of resources but also with which Congress, agency managers, the public, and others can assess management performance and stewardship.  Hence, OMB, in consultation with the CFO Council, the President's Council on Integrity and Efficiency, and other interested parties, developed the formats and instructions for financial statements described and illustrated in this Attachment.

**III.Coverage**.  The provisions of this Bulletin apply to the executive agencies listed in this Attachment.  Components of agencies listed that are required by law or policy to issue financial statements prepared in accordance with accounting standards other than those recommended by FASAB and issued by OMB and the General Accounting Office (GAO) shall continue to comply with applicable standards. When the reporting entities of which the components are a part issue consolidated or consolidating statements that include the components, the Federal accounting standards recommended by FASAB shall be applied to the components.

This Bulletin prescribes the form and content for agency financial statements.  It does not address requirements for the consolidated financial statements (CFS) of the Federal Government.  Form and content guidance for the CFS will be issued at a later date.  

These formats and instructions provide a framework within which individual agencies have the flexibility to provide information useful to the Congress, agency managers, and the public.  The formats and instructions provide guidance for meeting the requirements contained in the SFFASs.  

**IV.****Effective Date.**  The provisions of this Bulletin are effective in their entirety for the preparation of financial statements for the fiscal year ending September 30, 1998.

Preparers of financial statements covering fiscal years ending September 30, 1996 and 1997 shall refer to OMB Bulletin 94-01 for guidance.  However, some of  that guidance is modified or supplemented by certain provisions of this Bulletin. The following chart identifies the extent to which the changes in this Bulletin impact financial statements for fiscal years ending September 30, 1996 and 1997.   Early implementation of the provisions of this Bulletin is permitted only with the advance approval of OMB.

Provisions of this Bulletin effective before October 1, 1997 (FY 1998)

Effective for FY 1996

Effective for FY 1997 

Introduction and Summary

Reporting entity criteria

X     

X

General Instructions

Instruction # 9 -- When agencies present disaggregated information for component organizations, the total column for the entity as a whole should reflect consolidated totals net of intra-entity transactions.

Instruction #10 -- If information on the assets, liabilities, costs and revenues of franchise funds and other intra-governmental support revolving funds are not separately disclosed in the entitys principal financial statements, then selected critical segment information as described on page **78** of this Attachment shall be reported.

      X 

X

X

Instructions for the Overview

Performance measures presented in the overview and as other accompanying information should be consistent with the measures used by agencies as part of their Government Performance and Results Act (GPRA) implementation efforts.

X

X

Footnote Disclosures 

Investments

Direct loans and loan guarantees

Debt

Pensions, other retirement benefits, and other post-     employment benefits

Life insurance liabilities

Contingent liabilities

X

X

 X

X

X

X

X

X

X

Required Supplemental Information

Segment information

X

**V.Reporting Entity.**The 24 executive departments and agencies covered by this Bulletin are reporting entities and, as such, are required to prepare organization-wide financial statements.  SFFAC No. 2, Entity and Display, includes two types of criteria for determining which components of  executive departments and agencies shall be included in their organization-wide financial statements.  The first is the conclusive criterion, i.e., an inherent conclusion that for, financial reporting purposes, any organization meeting this criterion is part of a specified larger entity.  Appearance in the Federal budget section currently entitled Federal Programs by Agency and Account is a conclusive criterion.  Any organization, program or budget account, including off-budget accounts and government corporations, included in that section shall be considered part of the Federal Government, as well as part of the executive department or agency with which it appears  (e.g., the Saint Lawrence Seaway Development Corporation appears in the budget within the Department of Transportation).  

There may be rare exceptions to the application of  the conclusive criterion, e.g., the Indian Tribal Trust funds administered by the Department of the Interior.  These funds are included in the budget so they appear to meet the conclusive criterion.   However, the funds belong to the individual Indians or tribes and are not assets of the Federal Government.  Therefore, they are not to be included in the Department of the Interior's Balance Sheet, Statement of Net Cost, and Statement of Changes in Financial Position.  OMB approval shall be obtained for exemptions to the conclusive criterion.

The second type of criteria is indicative criteria.  The indicative criteria described below  should be considered in the aggregate when determining what components to include in an executive department or agency's organization-wide financial statement.

It exercises any sovereign power of the government to carry out Federal functions.

It is owned by the Federal Government.

It is subject to the direct or continuing administrative control of an executive department or agency.

It carries out Federal missions and objectives.

It determines the outcome or disposition of matters affecting the recipients of services that the Federal Government provides.

It has a fiduciary relationship with an executive department or agency.

A detailed explanation of the conclusive and indicative criteria can be found in SFFAC No. 2.

**VI.Content of Annual Financial Statement.**  The "Annual Financial Statement" of a reporting entity shall comprise:

(1)  Overview of the reporting entity

(2)  Principal statements and related notes

(3)  Required supplemental stewardship information  

(4)  Required supplemental information

In addition, the annual financial statement should include "other accompanying information" that, in the judgment of management, provides users of the financial statement with relevant information useful for obtaining a better understanding of the entity's programs and the extent to which they are achieving their intended objectives.

Preparation of the annual financial statement is the responsibility of agency management. In carrying out that responsibility, each agency CFO should prepare a policy bulletin or guidance memorandum that guide agency fiscal and management personnel in the preparation of the annual financial statement(s) required for submission by that agency.  

The principal statements shall include:

(1) Balance Sheet

(2) Statement of Net Cost

(3) Statement of Changes in Net Position

(4) Statement of Budgetary Resources

(5) Statement of Financing

(6) Statement of Custodial Activity

A detailed description and instructions for each of the parts of the annual financial statement is provided in this Attachment.  

Financial statements prepared in accordance with this Bulletin should present summary or detailed information necessary to make the statements most useful to readers.  Care should be taken to avoid placing so much detail in the body of the statements that they cannot be easily comprehended.  Where substantial detail is necessary to properly convey the information, the body of the statement should contain summary information and the detail should be reported in notes to the statements.  The instructions for each of the principal statements describe the ways in which information should be presented.

**VII.Relationship of Financial Statements to Accountability Reports.**  The Government Management Reform Act of 1994 (GMRA) grants the Director of OMB the authority to consolidate or adjust the frequency and due dates of certain statutory financial management reports after consultation with the Congress. Under this authority, selected agencies are preparing Accountability Reports.  Accountability Reports are intended to streamline reporting by providing critical financial and program performance information in a single report.  The financial statements prepared in accordance with this Bulletin and the related auditor's reports are major components of these Accountability Reports.  It is expected that eventually all CFOs Act agencies will prepare Accountability Reports.  

**VIII.Hierarchy of Accounting Principles and Standards.**  The eight SFFASs identified in this document shall be followed by Federal agencies in reporting under GMRA. These standards cover most transactions.  However, agencies may engage in transactions that are not addressed by these standards.  In that event, agencies shall view the following hierarchy as providing sources of generally accepted accounting principles for the Federal Government:

1.Individual standards agreed to by the Director of OMB, the Controller General, and the Secretary of the Treasury and published by OMB and the General Accounting Office. 

2.Interpretations related to the SFFASs issued  by OMB in accordance with the procedures outlined in OMB Circular A-134, "Financial Accounting Principles and Standards."

3.Requirements contained in OMB's Form and Content Bulletin in effect for the period covered by the financial statements.

4.Accounting principles published by other authoritative standard-setting bodies and other authoritative sources (a) in the absence of other guidance in the first three parts of this hierarchy, and (b) if the use of such accounting principles improves the meaningfulness of the financial statements.

**EXECUTIVE DEPARTMENTS AND AGENCIES**

**COVERED BY THIS BULLETIN**

  1.Department of Agriculture

  2.Department of Commerce

  3.Department of Defense

  4.Department of Education

  5.Department of Energy

  6.Department of Health and Human Services

  7.Department of Housing and Urban Development

  8.Department of the Interior

  9.Department of Justice

10.Department of Labor

11.Department of State

12.Department of Transportation

13.Department of the Treasury

14.Department of Veterans Affairs 

15.Agency for International Development

16.Environmental Protection Agency

17.Federal Emergency Management Agency

18.General Services Administration

19.National Aeronautics and Space Administration

20.National Science Foundation

21.Nuclear Regulatory Commission

22.Office of Personnel Management

23.Small Business Administration

24.Social Security Administration

**GENERAL INSTRUCTIONS FOR THE FINANCIAL STATEMENTS**

1.The principal statements and instructions embody the financial accounting concepts and the recognition and measurement requirements contained in the Statements of Federal Financial Accounting Concepts (SFFACs) and Standards (SFFASs) recommended by the Federal Accounting Standards Advisory Board (FASAB) and approved by the Secretary of the Treasury, the Director of the OMB, and the Comptroller General.  These SFFACs and SFFASs are listed below:

NumberName and Effective Date

SFFAC No. 1Objectives of Federal Financial Reporting

SFFAC No. 2Entity and Display

SFFAS No. 1.Accounting for Selected Assets and Liabilities -- For fiscal years ending on and after September 30, 1994 

SFFAS No. 2.Accounting for Direct Loans and Loan Guarantees -- For fiscal years ending on and after September 30, 1994 

SFFAS No. 3.Accounting for Inventory and Related Property -- For fiscal years ending on and after September 30, 1994 

SFFAS No. 4.Managerial Cost Accounting Concepts and Standards -- For fiscal years beginning after September 30, 1996

SFFAS No. 5.Accounting for Liabilities of the Federal Government -- For fiscal years beginning after September 30, 1996

SFFAS No. 6.Accounting for Property, Plant, and Equipment -- For fiscal years beginning after September 30, 1997 

SFFAS No. 7.Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting -- For fiscal years beginning after September 30, 1997 

SFFAS No. 8 Supplementary Stewardship Reporting -- For fiscal years beginning after September 30, 1997 

Preparers of financial statements seeking detailed guidance on matters involving the recognition and measurement requirements for the transactions and information covered by these SFFASs should refer to the specific standards.

2.The format displays in OMB Bulletin 97-01 are for illustrative guidance only.  They do not in and of themselves constitute mandatory accounting and reporting requirements.  Agencies may modify the displays to best present the information for their programs.  In doing so, they may add or remove lines and may use different words than those provided in the displays.  The descriptions and displays in the statements must meet the authoritative standards that govern the nature and purpose of the statements, the recognition and measurement of items on the statements, and the required disclosures.

3.Comparative financial statements are permitted but not required until reporting periods beginning after September 30, 1999 (FY 2000).  Further guidance on comparative reporting will be provided in a future form and content bulletin. When comparative statements are presented, footnotes should be written so as to contain the information necessary for full disclosure of both years. 

4.Where the accounting standards above or the instructions below do not provide guidance, agencies shall follow the hierarchy of accounting principles described on page **6** of this Attachment.

5.Round dollar amounts to the nearest whole dollar, thousand, or million based upon informative value to the reporting entity.  Maintain the chosen rounding level throughout the principal statements and footnotes.  Ensure that individual line items add up to the totals by adjusting the line items for differences created by the rounding process rather than adjusting column totals.

6.Combine lines, using discretion, where balances are related in nature and are not material enough to warrant separate disclosure.

7.Exclude statement line items, footnotes, and lines or columns in footnotes that are not informative for the reporting entity.  For example, for a line item for which the referenced account balance is immaterial, combine the amount into another appropriate line and retitle the line as appropriate.  If the referenced account balance is not applicable to the reporting entity, omit it.

8.Do not designate as "other" any discrete balances of a material amount.  Material balances should be separately reported and designated by name.  The "other" category should not aggregate to an amount which is material. 

9.Sequentially number the footnotes without regard to the numbers in this document.

10.Ensure that schedules presented in the footnotes in support of amounts presented on financial statements have total figures which agree with the amounts presented in the body of the financial statements. 

11.Financial statements prepared in accordance with this Bulletin may be aggregated or disaggregated in different ways depending on the nature of the statement.  Beginning with the fiscal year (FY) 1997 financial statements, when agencies present disaggregated information for component organizations, the total column for the entity as a whole shall reflect consolidated totals net of intra-entity transactions.

When a reporting entity presents its financial statements in a single column format, the statements are referred to as consolidated statements.  Financial statements that use a multi-column format to present information on an entitys major components or lines of business as well as the consolidated amounts are referred to as consolidating statements.   Intra-entity transactions needed to arrive at the consolidated amounts should also be presented in a column on the face of the consolidating statements.

11.A reporting entity shall include franchise funds and other intragovernmental support revolving funds among the activities covered by its financial statements.  If information about the assets, liabilities, costs and revenues of these franchise funds and intragovernmental support revolving funds are not separately disclosed in the entity's principal financial statements, then condensed information as described on page **78** of this Attachment shall be reported as required supplemental information, in accordance with the applicable SFFASs.  In addition, all franchise funds and intragovernmental support revolving funds shall also report as required supplementary information, the segment information described on page **78.**

12.FASAB has published an Implementation Guide to SFFAS No. 7, Accounting for Revenue and Other Financing Sources, which provides non-authoritative guidance for the preparation of all the principal statements except the balance sheet.  It may be consulted for definitions, explanations, and rationale for the new statements.  A case study illustrates journal entries that support the preparation of the statements.

13.Reporting entities should assure that information in the financial statements is presented in accordance with the requirements of this bulletin and that the underlying records fully support the information.  If an entity is not yet using the accounts and data elements of the U.S. Government Standard General Ledger (SGL), the ledger accounts and data elements used should be cross-walked to those of the SGL.   

The Department of the Treasury will issue separate guidance providing a crosswalk from the accounts of the SGL to the financial statements and footnotes contained in this Bulletin.

**INSTRUCTIONS FOR THE OVERVIEW**

Each annual financial statement shall include a brief narrative overview of the reporting entity.  This overview shall provide a clear and concise description of the reporting entity and its mission, activities, program and financial results, and financial condition.

Also called the Management Discussion and Analysis (MD&A) or Discussion and Analysis (D&A), the overview should be a joint effort of both the CFO office and the program offices.  The preparation of the overview, like the rest of the financial statement, is the responsibility of management.

Government-wide implementation of the GPRA occurs with plans and reports for FY 1999.  Over the next several years, many agencies will increasingly include measures of program performance in the budget, Accountability Reports, and other materials they prepare for GPRA implementation.  Performance measures in the overview section of the financial statement should be consistent with the measures used by the agencies as part of their GPRA implementation efforts.  

In developing financial, statistical, and other information for presentation in the overview section, entities should prepare and retain adequate supporting documentation for review and audit.  

At a minimum, the overview should contain sections, which address: 

Mission and organizational structure

Performance goals and results

Limitations of the financial statements

Mission and Organizational Structure 

The overview should contain a brief description of the mission(s) of the entity and its related organizational structure.  A mission statement should clearly articulate what the entity's major programs and activities are intended to accomplish, consistent with the entity's strategic plan.   

Performance Goals and Results

The entity's program and financial results should be expressed in terms of objective, relevant measures that disclose the extent to which its programs are achieving their intended objectives.  The entity's financial results should be summarized in a manner that would illustrate significant indicators of its financial operations for the reporting period and changes in financial condition during the period.  

 Measuring costs is an integral part of measuring the efficiency and effectiveness of programs.  Efficiency is measured by relating outputs (the quantity of services provided) to inputs (the costs incurred to provide the services).  Effectiveness is measured by the outcome or the degree to which a predetermined objective is met, and it is commonly combined with cost information to show "cost effectiveness."  Entities should strive to develop and report objective measures that, to the extent possible, provide information about the cost effectiveness of programs.  

The reported measures of program and financial performance should be consistent with information on major goals and objectives from the agency's strategic plan and should be linked to the programs featured in the Statement of Net Cost.

For performance measures to be useful, they should:

be clearly set forth

be objective and quantifiable

be meaningful and relevant

relate to measures developed in the entity's strategic planning processes, and

present the outputs and outcomes of the program, not just the inputs or processes of the program. 

The presentation of the measures should:

include both positive and negative results

present historical and future trends, if possible

be illustrated with charts and graphs, whenever possible, for easy identification of trends

explain the significance of the trends

provide comparison of actual results to goals or benchmarks 

show variations from goals and plans, and

provide other explanatory information that would help readers understand the significance of the measures, the results, and any variations from goals or plans. 

To further enhance the usefulness of the information, agencies should include an explanation of what needs to be done and what is planned to be done to improve financial or program performance.

The performance measures presented in the overview should relate to the programs' purposes and goals, be consistent with measures previously included in budget documents and other materials related to implementation of GPRA, and linked to the programs presented in the Statement of Net Cost.  The measures in the overview should be limited to the entity's most significant program and financial measures. Additional measures should be presented as "Other Accompanying Information."  Management has broad discretion in the manner in which performance information is displayed.  Among the options available to management is a statement format similar to the Statement of Program Performance Measures illustrated in SFFAC No. 2.  Management's display of performance information should include sufficient explanatory information that should help readers understand the significance of the measures, the results, and any deviations from goals or plans.

Reporting Year 2000 (Y2K) Issues

Report the following information in the Overview/Management Discussion and Analysis:  (1)  A discussion of the agency's state of readiness (including the status of efforts/current phase, estimated timetable for completing remaining phases, impact of non-readiness of third parties with which the agency has a material relationship); (2) The costs to address the agency's Y2K issues, both historical and estimated future costs.  Include both the costs to fix and replace systems;  (3) The risks of Y2K issues to the agency, including any anticipated effects on agency operations.  Include a description of the most likely worst case scenario; and  (4) The agency's contingency plan(s), including how the agency is preparing to handle most likely worst case scenarios.  If the agency does not have a contingency plan, disclose this fact, whether the agency intends to create one, and the timetable for doing so.

Limitations of the Financial Statements

This section should state that: (1) The financial statements have been prepared to report the financial position and results of operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b); (2) While the statements have been prepared from the books and records of the entity in accordance with the formats prescribed by OMB, the statements are in addition to the financial reports used to monitor and control budgetary resources which are prepared from the same books and records; (3) The statements should be read with the realization that they are for a component of the U.S. Government, a sovereign entity.  One implication of this is that liabilities cannot be liquidated without legislation that provides resources to do so. 

Department/Agency/Reporting entity 

CONSOLIDATED BALANCE SHEET

As of September 30, XXXX

(in dollars/thousands/millions)                     

ASSETS                                                             

     Entity:      

         Intragovernmental 

             Fund Balance with Treasury (Note 2)$   xxx

             Investments  (Note 4)             xxx

             Accounts receivable, net (Note 5)             xxx

             Other (Note 6)                                                     xxx

        Total intragovernmental                 xxx

         Investments  (Note 4)                                                      xxx

        Accounts receivable, net (Note 5)                                            xxx

        Loans receivables and related foreclosed property, net (Note 7)                 xxx

        Cash and other monetary assets (Note 3)                      xxx 

        Inventory and related property, net (Note 8)                               xxx

        General property plant and equipment, net (Note 9)                      xxx

        Other (Note 6)                                                         xxx

   Total entity              x,xxx

    Non-Entity:      

         Intragovernmental 

            Fund balance with Treasury (Note 2)            $   xxx

            Accounts receivable, net (Note 5)                     xxx

            Other (Note 6)                                  xxx

        Total intragovernmental

        Accounts receivable, net (Note 5)                    xxx

        Taxes Receivable (Note 5a)                xxx

        Cash and other monetary assets (Note 3)                     xxx 

        Other (Note 6)                 xxx

    Total non‐entity             x,xxx

Total Assets                    $ x,xxx

______________________________________________________________

The accompanying notes are an integral part of these statements.

LIABILITIES                                             

    Liabilities Covered by Budgetary Resources:

        Intragovernmental:

            Accounts payable                              $   xxx

            Environmental cleanup costs (Note 17)              xxx

Debt (Note 10)               xxx

Other (Notes 11, 12 and 14)               xxx

        Total intragovernmental      xxx

        Accounts payable                                         xxx

        Loan Guarantees (Note 7)                           xxx

        Debt held by the public (Note 10)                                xxx

        Federal employee and veterans benefits (Note 13)                   xxx

        Environmental cleanup costs (Note 17)              xxx

        Other (Notes 11, 12 and 14)                       xxx

    Total liabilities covered by budgetary resources                           x,xxx

     Liabilities not Covered by Budgetary Resources: 

         Intragovernmental:

            Accounts payable                                              xxx

            Debt (Note 10)               xxx 

            Environmental cleanup costs (Note 17)              xxx

Other (Notes 11, 12 and 14)              xxx

         Total intragovernmental                          xxx

         Accounts payable                                         xxx

         Debt held by the public (Note 10)                                xxx 

         Federal employee and veterans benefits (Note 13)                xxx

         Environmental cleanup costs (Note 17)                          xxx

         Other (Notes 11, 12 and 14)               xxx

      Total liabilities not covered by budgetary  resources                            x,xxx

  Total Liabilities                      $x,xxx

NET POSITION 

    Unexpended Appropriations (Note 15)        $    xxx

    Cumulative Results of Operations                                     xxx

Total Net Position              xxx

Total Liabilities and Net Position                            $ x,xxx

________________________________________________________________

The accompanying notes are an integral part of these statements.

**INSTRUCTIONS FOR THE BALANCE SHEET**

The balance sheet presents, as of a specific time, amounts of future economic benefits owned or managed by the reporting entity exclusive of items subject to stewardship reporting (assets), amounts owed by the entity (liabilities), and amounts which comprise the difference (net position).  The balance sheet presents assets available for use by the reporting entity (entity assets) separately from those managed by the reporting entity but not available for use in its operations (non-entity assets).  The balance sheet also separately presents liabilities covered by budgetary resources and liabilities not covered by budgetary resources.

The balance sheet displayed on the previous pages illustrates consolidated single column comparative information.  Reporting entities preparing financial statements in accordance with this bulletin may present similar information or may present information in separate columns for their primary components, e.g., bureaus or major lines of business. 

Reporting entities should present comparative totals for the entity as a whole to allow the reader to make appropriate comparisons with prior periods.  Entities may also elect to present comparative data for their primary components as supplemental information.  

**ASSETS**

Assets are tangible or intangible items owned by the Federal Government, which would have probable economic benefits that can be obtained or controlled by a Federal Government entity.  The assets of Federal agencies are classified as entity assets and non-entity assets.  Both entity assets and non-entity assets are further divided into two sub-sections: intragovernmental and governmental assets.  These terms are defined below and in SFFAS No. 1.

**Entity Assets.**  These are assets which the reporting entity has authority to use in its operations.  The authority to use funds in an entity's operations means that entity management has the authority to decide how funds are used, or management is legally obligated to use funds to meet entity obligations, e.g., repay loans from Treasury.

**Non-Entity Assets**.  These are assets that are held by an entity but are not available to the entity. An example of non-entity assets are income tax receivables, which the IRS collects for the U.S. government but has no authority to spend.

**Intragovernmental Assets**.  These assets arise from transactions among Federal entities.  These assets are claims of a Federal entity against other Federal entities.  Report "intragovernmental" assets separately from assets that arise from transactions of the Federal Government or an entity of the Federal Government with non-federal entities, the Federal Reserve and Government-Sponsored Enterprises.  The term "non-federal entity" encompasses domestic and foreign persons and organizations outside the U. S. Government.

**Fund Balances with Treasury**.  The aggregate amount of the entity's accounts with Treasury for which the entity is authorized to make expenditures and pay liabilities.  This account includes clearing account balances and the dollar equivalent of foreign currency account balances. 

Foreign currency account balances reported on the balance sheet shall be translated into U.S. dollars at exchange rates determined by the Treasury and effective at the financial reporting date.

To the extent that the reporting entity maintains fund balances in deposit, suspense, and clearing accounts that are not available to finance the entity's activities, those balances should be reported as non-entity assets.

**Investments.**  Investments in Federal securities shall be reported separately from investments in non-Federal securities.  Investments in Federal securities includes non-marketable par value Treasury securities, market-based Treasury securities, marketable Treasury securities, and securities issued by other Federal entities.  Non-Federal securities includes those issued by State and local governments, private corporations, and government-sponsored enterprises.  Investments are normally reported at acquisition cost or amortized acquisition cost (less an allowance for losses, if any).   The components of investments, including the market value of market-based and marketable Treasury securities, shall be disclosed.  See SFFAS No. 1 for further information on investments in par value Treasury securities and in marketable and market-based Treasury securities expected to be held to maturity.  

**Accounts Receivable, Net.**  Federal entity claims for payment from other entities.  Gross receivables shall be reduced to net realizable value by an allowance for doubtful accounts.  Disclose the method(s) of calculating the allowance for doubtful accounts and the dollar amount of the allowance.

**Interest Receivable, Net.**  Interest income earned but not received as of the reporting date.  Report interest receivable as a component of the appropriate asset accounts.  No interest shall be recognized as revenue on accounts receivable or investments that are determined to be uncollectible until the interest is actually collected.  Accrued interest on uncollectible accounts receivable and an offsetting allowance for uncollectible interest shall be disclosed.  

Interest receivable related to pre-1992 and post-1991 direct loans and acquired defaulted guaranteed loans shall be reported as a component of credit program receivables and related foreclosed property. 

**Other Assets**.  Reporting entities should disclose in the notes advances and prepayments and the amount and nature of other major categories of "Other" assets. 

Advances are cash outlays made by a Federal entity to its employees, contractors, grantees or others to cover a part or all of the recipients' anticipated expenses or as advance payments for the costs of goods and services the entity receives.  Prepayments are payments made by a Federal entity to cover certain periodic expenses before those expenses are incurred.  Progress payments on work in process are not to be included in advances and prepayments. 

**Credit Program Receivables and Related Foreclosed Property, Net.**  The net value of credit program receivables and related foreclosed property are considered an entity asset if the entity has the authority to determine the use of the funds collected or if the entity is legally obligated to use the funds to meet entity obligations, e. g., loans payable to Treasury.

**Receivable from Borrowings.**  When a loan guarantee program, which is generating negative subsidy, guarantees a loan and the lender has not disbursed the loan as of the balance sheet date, no receivable from borrowings to be made in the subsequent year will be reported.  It is sufficient to report the undelivered order which must be recorded to obligate the funds and which must be disclosed as part of the total undelivered orders.

**Negative Subsidies and Downward Re-estimates of Subsidy.**  Special receipt accounts for negative subsidies and downward subsidy re-estimates are to be included in the credit reporting entity's financial statements.  Any assets in the accounts should be shown as non-entity assets and should be offset by intra-governmental liabilities covered by budgetary resources.

**Cash and Other Monetary Assets**.  Cash resources and all other monetary assets.   Cash consists of: (i) coins, paper currency and readily negotiable instruments, such as money orders, checks, and bank drafts on hand or in transit for deposit; (ii) amounts on demand deposit with banks or other financial institutions; (iii) cash held in imprest funds; and, (iv) foreign currencies, which, for accounting purposes, shall be translated into U.S. dollars at the exchange rate on the financial statement date.  Other monetary assets include gold, special drawing rights, and U.S. Reserves in the International Monetary Fund.  This category is principally for use by the Treasury Department.  The amount of cash and other monetary assets that the reporting entity holds and is authorized to spend is entity cash.  The cash and other monetary assets that a Federal entity collects and holds on behalf of the U.S. government or other entities is non-entity cash and other monetary assets.  The components of cash and other monetary assets shall be disclosed.

**Inventory and related property, Net**.

**CATEGORY****DESCRIPTION**

**Inventory**                Tangible personal property that is (i) held for sale, including raw materials and work in process, (ii) in the process of production for sale, or (iii) to be consumed in the production of goods for sale or in the provision of services for a fee. 

**Operating materials** Tangible personal property to be consumed in normal 

**and supplies**  operations.                                           

**Stockpile materials**      Strategic and critical materials held due to statutory requirements for use in national defense, conservation or national emergencies.  They are not held with the intent of selling in the ordinary course of business.

**Seized property**Monetary instruments, real property, and tangible personal property of others, including illegal drugs, contraband, and counterfeit items seized by authorized law enforcement agencies as a consequence of various laws, in the actual or constructive possession of a custodial agency.

                         Only seized monetary instruments shall be recognized as seized assets when seized (and a liability shall be reported in an amount equal to the seized asset value).  Seized property other than monetary instruments and additional information regarding seized property shall be disclosed.

**Forfeited property**(i) Monetary instruments, intangible property, real property, and tangible personal property acquired  through forfeiture proceedings; (ii) property acquired by the government to satisfy a tax liability; and (iii) unclaimed and abandoned merchandise. 

**Goods held under**         These goods are referred to as commodities.  Commodities 

**price support and**are items of commerce or trade having an exchange value.

**stabilization programs**

**General****Property, Plant, and Equipment, Net.**   SFFAS No. 6 defines general property, plant and equipment (PP&E) as any PP&E used in providing goods and services and provides guidance for determining the cost of general PP&E acquired by purchase, capital leases, donation, devise, judicial process, exchange, forfeiture, or transfers from other Federal entities.    

General PP&E has one or more of the following characteristics:

It could be used for alternative purposes (e.g., by other Federal programs, State or local governments, or non-governmental entities) but is used to produce goods or services, or to support the mission of the entity, or 

It is used in a significantly self-sustaining activity which finances its continuing cycle of operations through the collection of revenue (business-type activities), or

It is used by entities in activities whose costs can be compared to other entities performing similar activities. 

For entities operating as business-type activities, all PP&E shall be categorized as general PP&E whether or not it meets the definition of other PP&E categories (e.g., heritage assets).

Land and land rights acquired for or in connection with general PP&E shall be included in general PP&E.  

The costs of software developed by employees of the entity are considered internally-developed software costs.  These direct costs should be included in general PP&E or reported separately if (1) the costs are intended primarily to be recovered through user charges and (2) feasibility has been proven.

The expense associated with the use of general PP&E is calculated through the systematic and rational allocation of the cost, less its estimated salvage/residual value, over the estimated useful life of the general PP&E. This expense, known as depreciation, shall be recognized on all general PP&E, except land and land rights of unlimited duration.

Federal mission PP&E, heritage assets, and stewardship land are categories of PP&E not reported on the balance sheet with one exception.  Multi-use heritage assets are heritage assets used in general government operations (e.g.,  buildings such as the Library of Congress ).  The costs of multi-use heritage assets are divided between heritage assets and general PP&E according to the standards in SFFAS No. 6. 

**LIABILITIES**

A liability is a probable future outflow or other sacrifice of resources as a result of past transactions or events.  Financial statements shall recognize probable and measurable future outflows or other sacrifices of resources arising from (1) past exchange transactions, (2) government-related events, (3) government-acknowledged events, or (4) nonexchange transactions that, according to current law and applicable policy, are unpaid amounts due as of the reporting date.  SFFAS No. 5 describes the general principles governing the recognition of a liability.  

Liabilities shall be recognized when they are incurred regardless of whether they are covered by available budgetary resources.  This includes liabilities related to appropriations canceled under "M" account legislation.  

Liabilities of Federal agencies are classified as liabilities covered or not covered by budgetary resources.  These are both further divided into two sub-sections: intragovernmental and governmental liabilities.  These terms are defined below and in SFFAS No. 1.

**Liabilities Covered by Budgetary Resources.**  Liabilities incurred which are covered by realized budgetary resources as of the balance sheet date.  Budgetary resources encompass not only new budget authority but also other resources available to cover liabilities for specified purposes in a given year. Available budgetary resources include: (1) new budget authority, (2) spending authority from offsetting collections (credited to an appropriation or fund account), (3) recoveries of unexpired budget authority through downward adjustments of prior year obligations, (4) unobligated balances of budgetary resources at the beginning of the year or net transfers of prior year balances during the year, and (5) permanent indefinite appropriations or borrowing authority, which have been enacted and signed into law as of the balance sheet date, provided that the resources may be apportioned by OMB without further action by the Congress or without a contingency having to be met first.  

**Liabilities Not Covered by Budgetary Resources.**  This category is for liabilities which are not considered to be covered by budgetary resources, as provided in the previous paragraph. 

**Intragovernmental Liabilities**.  These liabilities are claims against the entity by other Federal entities.  Report intragovernmental liabilities separately from claims against the reporting entity by non-federal entities, the Federal Reserve and Government-Sponsored Enterprises. 

**Accounts Payable.**  The amounts owed by the reporting entity for goods and services received from, progress in contract performance made by, and rents due to other entities.  

**Interest Payable**.  Interest incurred but unpaid on liabilities of the reporting entity.  Report interest payable as a component of the appropriate liability accounts.

**Debt.**  Amounts borrowed from the Treasury, the Federal Financing Bank, other Federal agencies, or the public under general or special financing authority (e.g., Treasury bills, notes, bonds and FHA debentures).  The components of debt shall be disclosed.    

**Liabilities for Loan Guarantees.**  For post-1991 loan guarantees, the present value of the estimated net cash flows to be paid as a result of loan guarantees.  For pre-1992 loan guarantees, the amount of known and estimated losses to be payable.

**Negative Allowance for Subsidy and Loan Guarantee Liability.**  When the total loan guarantee liability for all credit programs of a reporting entity is negative, it should be reported as an asset.  If a loan guarantee liability is the result of both positive and negative amounts for the various components, the total will be shown as a liability, and negative components disclosed.

**Lease Liabilities.**  This item represents the liability for capital leases.  Report the lease liability as a component of the "Other Liabilities" line item on the balance sheet and disclose the components of and other information about the capital lease liability in a separate footnote (See Note 12).   According to OMB Circular A-11, "Preparation and Submission of Budget Estimates**,**" capital leases entered into during FY 1992 and thereafter are required to be fully funded in the first year of the lease.

**Federal Employee and Veterans' Benefits.**  Entities that are responsible for accounting for pensions, other retirement benefits, and other post-employment benefits should calculate and report these liabilities and related expenses in accordance with SFFAS No. 5.  Federal employee and veterans' benefits include the actuarial portion of these benefits.  It does not include liabilities related to ongoing continuous expenses such as employees' accrued salary, accrued annual leave, the unpaid portion of employee benefits, and other benefits that are currently due, which are reported in the "Other liabilities" line item. The portion of the liabilities covered by budgetary resources, i.e., the amount for which assets are available to pay benefits, shall be reported separately from the amount for which budgetary resources are not available.  Disclose the liabilities, assumptions used, and the components of expense for the period for pensions, other retirement benefits, and other post-employment benefits.

**Insurance Liabilities.**Report insurance liabilities as a component of the "Other Liabilities" line item on the balance sheet and disclose insurance liabilities in a separate footnote (See Note 14). Entities with Federal insurance and guarantee programs except social insurance and loan guarantee programs shall recognize a liability for unpaid claims incurred, resulting from insured events that have occurred as of the reporting date.  The amount recognized is the liability known with certainty plus an accrual for a contingent liability recognized when an existing condition, situation, or set of circumstances involving uncertainty as to possible loss exists and the uncertainty shall ultimately be resolved when one or more future events occur or fail to occur, a future outflow or other sacrifice of resources is probable, and the future outflow or sacrifice of resources is measurable.  Life insurance programs shall recognize a liability for future policy benefits in addition to the liability for unpaid claims incurred. 

**Other Liabilities.**  This item covers liabilities that are not recognized in specific categories.  This includes (but is not limited to): capital leases, insurance, advances and prepayments for goods to be delivered or services to be performed, deposit fund amounts held in escrow, liabilities related to ongoing continuous expenses such as employees' salary and benefits, accrued entitlement benefits, and accrued employee annual leave.  Also included are amounts payable by the Federal entity for benefits, goods or services provided under the terms of a program, as of the Federal entitys reporting date, whether or not such amounts have been reported to the Federal entity (e.g., estimated payments due to health providers for services that have been rendered and that will be financed by the Federal entity but have not yet been reported to the Federal entity).  This item also covers estimated losses for claims or other contingencies if (1) a past event or exchange transaction has occurred (e.g., a Federal entity has breached a contract with a non-Federal entity) as of the date of the statements, (2) a future outflow or other sacrifice of resources is probable, and (3) the future outflow or sacrifice of resources is measurable (i.e., the amount can be reasonably estimated).  Do not include environmental cleanup costs which should be reported as "Environmental Liabilities. "

Examples of claims or other contingencies include: (1)  Indemnity Agreements -- reimbursements due to licensees or contractors for losses incurred in support of Federal activities; (2)  Adjudicated Claims -- claims against the Federal Government that are in the process of judicial proceedings; (3)  Commitments to International Institutions -- payments due to international financial institutions, and (4)  Cleanup costs -- costs of removing, containing, and/or disposing of (1) hazardous waste from property or (2) material and/or property that consists of hazardous waste at permanent or temporary closure or shutdown of associated PP&E.  Separate reporting of items within other liabilities is appropriate if the amounts are material. 

**Environmental Cleanup Costs.**  SFFAS No. 5 provides criteria for recognizing a contingent liability and shall be applied to determine if cleanup costs should recognized as liabilities and/or disclosed in the notes.   SFFAS No. 6 supplements the liability standard by providing guidance for recording cleanup costs related to general PP&E and stewardship assets used in Federal operations.  The guidance applies to cleanup costs from Federal operations known to result in hazardous waste which the Federal Government is required by Federal, State and/or local statutes and/or regulations to cleanup.  Depending on the materiality of the amount, the liability for cleanup costs may be displayed separately or included with other liabilities.  The footnote disclosures required for liabilities associated with cleanup costs are also described in SFFAS No. 6.

**NET POSITION**

The components of net position are classified as follows:

**Unexpended Appropriations.**  This amount includes the portion of the entity's appropriations represented by undelivered orders and unobligated balances.  The amounts of unobligated balances available and unavailable shall be disclosed.   

**Cumulative Results of Operations.**  The net results of operations since inception plus the cumulative amount of prior period adjustments.  Beginning in FY 1998, this will include the cumulative amount of donations and transfers of assets in and out without reimbursement.  In addition, there will no longer be a segregation of cumulative amounts related to investments in capitalized assets, such as PP&E, or pre-credit reform loans, or a separate negative amount shown for future funding requirements.  These amounts shall be included in cumulative results of operations.

Department/Agency

CONSOLIDATING STATEMENT OF NET COST

For the year ended September 30,

(in dollars/thousands/millions)

Suborgani-Suborgani-Suborgani-CombinedIntra-agencyConsolidated    zation Azation Bzation CTotalEliminationsTotal

COSTS:(Note)

Crosscutting Programs

    Program A:

Intragovernmental $ xxx$    --       $xxx     $xxx  $xxx       $xxx

With the public    xxx      --  -----  xxxxxxxxx

Total    xxx            --  xxx       xxx     xxx          xxx

  Less earned revenues    (xx)      --   (xx)    ( xxx)(xx)( xxx)

Net program costs $ xxx       --$xxx      $xxx $ xxx        $xxx

Other Programs  (Note xx )

    Program B:     --     xxx         --      xxx    xxx          xxx

    Program C:         --             xxx     --             xxx          xxx           xxx

    Program D:                     xxx     xxx     --        xxx     xxx         xxx

    Program E:     --             --   xxx                 xxx         xxx          xxx

    Program F:     --        --   xxx          xxx    xxx          xxx

    Other programs     --        --xxx xxx    xxxxxx

       Total Other Program Costs$xxx$   xxx $xxx     $xxx $ xxx        $xxx

Cost not assigned to programs     xxx     xxx    xxx       ..          xxx          xxx

 Less earned revenues not 

    attributed to programs    ( xxx)   ( xxx)------    (xxx)  (xxx)          (xxx)

DEFERRED MAINTENANCE  (Note)

NET COST OF OPERATIONS   $xxx$xxx $xxx$xxx$xxx $xxx

_______________________________________________________________________________________________

The accompanying notes are an integral part of these statements.

**Instructions for the Statement of Net Cost**

The Statement of Net Cost is designed to show separately the components of the net cost of the reporting entity's operations for the period. However, the organizational structure and operations of some entities are so complex that to fully display their suborganizations major programs and activities may require supporting schedules to supplement the information in the Statement of Net Cost.  The supporting schedules shall be included in the notes to the financial statements.

Net cost of operations is the gross cost incurred by the reporting entity less any exchange revenue earned from its activities.  The gross cost of a program consists of the full cost of the outputs produced by that program plus any non-production costs that can be assigned to the program (non-production costs are costs linked to events other than the production of goods and services).  The net cost of a program consists of gross cost less related exchange revenues.  By disclosing the gross and net cost of the entity's programs, the Statement of Net Cost provides information that can be related to the outputs and outcomes of the programs and activities.

The Statement of Net Cost and related supporting schedules classify revenue and cost information by suborganization or responsibility segment and, to the extent practicable, within each classification by major program.  (Suborganizations are considered to be generally equivalent to responsibility segments.)    

Preparers of the Statement of Net Cost should decide the exact classification of suborganizations and major programs based on the missions and outputs described in its GPRA strategic and annual plans, the entitys budget structure, and the guidance for defining and structuring responsibility segments presented in SFFAS No. 4.        

The Statement of Net Cost and related supporting schedules should show the net cost of operations for the reporting entity as a whole and its suborganizations and programs.  This can be accomplished by reporting by program (1) the gross cost of goods and services provided to the public and government agencies (intragovernmental) at a price, (2) related exchange revenues, (3) the excess of costs over exchange revenues (net program costs) and (4) the gross cost of goods, services, transfers and grants provided to the public and government agencies without charge, and by reporting for the suborganization or entity as a whole the costs that cannot be assigned to specific outputs or programs and the exchange revenues that cannot be attributed to specific outputs or programs.     

The Statement of Net Cost illustrated in this document provides an example of how information can be displayed for an entity with a complex organizational and program structure, a limited number of  programs carried out by more than one suborganization, and the majority of its programs carried out within a specific suborganization or responsibility segment.  At a minimum, reporting entities should define and establish responsibility segments for cost accumulation and reporting and report the full cost assigned to each responsibility segment.     

Reporting entities preparing a combined statement of financing should include a Combined Total column in the statement of net cost.  The combined statement of financing or schedule, containing the same information, presented in the notes should reconcile to the combined total net cost of operations.  Include a note reference to the Combined Total column alerting statement users that the combined statement of financing or equivalent schedule does not include intra-entity eliminations.

**Program Costs.**  These costs include the full costs of the program outputs and consist of the direct costs and all other costs that can be directly traced, assigned on a cause and effect basis, or reasonably allocated to the program outputs.  Program costs also include any non-production costs that can be assigned to the program but not to its outputs. The costs of program outputs shall include the costs of services provided by other entities whether or not the providing entity is fully reimbursed.  See SFFAS No. 4 for a detailed discussion of full costs and inter-entity costs. The costs of program outputs shall also include costs that are paid in total or in part by other entities to the extent that accounting standards require them to be recognized in financial statements.  For fiscal years 1998 and 1999, employer entities shall recognize inter-entity costs only for pensions, other retirement benefit, other post-employment benefits, and losses in litigation proceedings in accordance with OMB memorandum "Technical Guidance for the Implementation of Managerial Cost Accounting Standards for the Federal Government" dated April 6, 1998.  See SFFAS No. 5 for further details on the amounts to recognize.

Costs related to the production of goods and services provided to other programs shall be reported separately from the costs of goods, services, transfers, and grants provided to the public.  The former costs are labeled "governmental" on the illustrative statement and schedules; the latter are labeled "public."

Costs related to the production of outputs shall be reported separately from costs that are not related to the production of outputs (i.e., non-production costs).  In addition, the non-production costs listed below shall be reported separately from other non-production costs, if incurred:

The cost of acquiring, constructing, improving, reconstructing, or renovating Federal mission PP&E

The cost of acquiring, constructing, improving, reconstructing, or renovating heritage assets

The acquisition cost of acquiring stewardship land

Agencies should consider differentiating other significant costs if by doing so the usefulness of the statements would be improved either because the amount of a particular cost is large or because of its special nature.  For example, when reporting on a program that makes transfer payments, it may be useful to differentiate between the transfer payments and administrative costs.  

**Earned Revenues.**  These revenues are exchange revenues, which arise when a Federal entity provides goods and services to the public or to another government entity for a price.  The full amount of exchange revenues is to be reported on the Statement of Net Cost or supplementary schedule, regardless of whether the entity is permitted to retain the revenues in whole or in part.  Any portion of exchange revenues of the entity which cannot be retained by the entity is reported as a transfer-out on the statement of changes in net position.  See SFFAS No. 7 for information on exchange revenues.  

Earned revenues should be deducted from the full cost of outputs or outcomes to determine their net cost unless it is not practical or reasonably possible to do so.  If that cannot be done, earned revenue should be deducted from the gross cost of programs to determine the net program costs or, if that is not practical or reasonably possible, from the costs of suborganizations to determine the suborganization's net cost of operations.  There are no precise guidelines to determine the degree to which earned revenue can reasonably be attributed to outputs, outcomes, programs, or suborganizations.  The attribution of earned revenues requires the exercise of managerial judgment. In exercising this judgment, it is important to provide readers of the Statement of Net Cost with the ability to ascertain whether exchange revenues are sufficient to cover the costs incurred to produce the goods or services involved. 

**Net Program Costs.**  This is the difference between a program's gross costs and its related exchange revenues.  If a program does not earn any exchange revenue, there is no netting and the term used might be "total program costs."

**Costs Not Assigned to Programs.**A reporting entity and its suborganizations may incur (a) high level general management and administrative support costs that cannot be directly traced, assigned on a cause-and-effect basis, or reasonably allocated to segments and their outputs and (b) non-production costs that cannot be assigned to a particular program.  These costs are part of the entity and suborganization costs and should be reported on the Statement of Net Cost as "costs not assigned to programs."  

**Earned Revenues Not Attributed to Programs.**Earned revenue that is insignificant or cannot be attributed to particular outputs or programs should be reported separately as a deduction in arriving at net cost of operations of the suborganization or reporting entity as a whole.****

**Deferred Maintenance.**Deferred maintenance is maintenance that was not performed when it should have been or was scheduled to be performed and that is delayed until a future period.  Maintenance includes preventative maintenance, normal repairs, replacement of parts and structural components, and other activities needed to preserve the asset so that it continues to provide acceptable services and achieves its expected life**.** No amount shall be recognized on the statement of net cost for deferred maintenance.  However, the statement shall include a note reference in lieu of a dollar amount.

**Net Cost of Operations.**This is the gross cost incurred by the reporting entity less any exchange revenue earned from its activities.  This amount represents the****net cost of a suborganization or entity that is funded by sources other than exchange revenues.  The financing sources for net cost of operations are reported on the Statement of Changes in Net Position. 

Preparers are encouraged to consult the non-authoritative Implementation Guide to SFFAS No. 7, Accounting for Revenue and Other Financing Sources, which FASAB issued in conjunction with SFFAS No. 7, for illustrations and explanations designed to assist in understanding and applying the standards for classifying, recognizing, and measuring inflows of resources to the Federal Government and its component reporting entities.

Department/Agency/Reporting Entity

CONSOLIDATING STATEMENT OF CHANGES IN NET POSITION

For the year ended September 30

(in dollars/thousands/millions)

                                                                                 Intra- 

                                                 Sub-         Sub-      Sub-     agency  Consol-

                                                 organi-    organi-    organi- elimin- idated 

zation Azation Bzation Cationstotals

Net Cost of Operations                           $ (xxx) $( xxx)$ (xxx) $ (xxx)   $(xxx)

Financing Sources (other than exchange revenues):                  

   Appropriations Used                                 xxx            xxx            xxx            xxx         xxx

   Taxes (and other non-exchange revenues)              xxx            xxx            xxx            xxx         xxx

   Donations (non-exchange revenue)                     xxx      xxx            xxx            xxx        xxx

   Imputed financing                                   xxx    xxx            xxx    xxx     xxx

   Transfers-in                                             xxx         xxx    xxx        xxx   xxx

   Transfers-out                                     (xxx)(xxx)(xxx)(xxx)(xxx)

Net Results of Operations                              xxx         xxx    xxx        xxx         xxx  

Prior Period Adjustments                                xxxxxxxxxxxxxxx

Net Change in Cumulative Results of Operations          xxx            xxx          xxx          xxx        xxx

Increase (Decrease) in Unexpended Appropriations        xxxxxxxxxxxx**xxx

Change in Net Position                                $xxx $xxx$xxx$xxx        xxx

Net Position-Beginning of Period                              xxx

Net Position-End of Period                $xxx

_______________________________________________________________________________________  

The accompanying notes are an integral part of these statements.

**Instructions for the Statement of Changes in Net Position**

The Statement of Changes in Net Position reports the beginning net position, the items which caused net position to change during the reporting period, and the ending net position.  The entity should display information on the Statement of Changes in Net Position organized by responsibility segment, component, or otherwise in the same manner as was done for the Statement of Net Cost.

**Net Cost of Operations.**  This is the net cost of operations reported on the Statement of Net Cost.

**Financing Sources.**

**Appropriations Used.**  Appropriations are considered used as a financing source when goods and services are received, or benefits are provided, under authority of the appropriations.  This is true whether the goods, services, and benefits are paid prior to the reporting date or are payable as of that date, and whether the appropriations are used for items which are recorded as expenses or are capitalized.  In order to avoid double counting, appropriations used do not include dedicated tax receipts  and donations because these sources are reported as non-exchange revenues.  In addition, appropriations used by collecting entities to provide refunds of monies deposited to Treasury or the trust funds or to repay debt are also excluded because they do not provide budgetary authority. 

**Taxes and Other Non-exchange Revenues.**  Revenues the Federal Government is able to demand or receive due to its sovereign powers.  See SFFAS No. 7 for a discussion of the recognition and measurement criteria for taxes and other non-exchange revenues. 

**Donations.**  Voluntary gifts of resources to the Federal Government by non-Federal entities.  Donations may be financial resources, such as cash or securities, or non-financial resources such as land or buildings.  The amount of revenue arising from donations of non-financial resources shall be recognized in accordance with criteria in SFFAS No. 6 and should be valued at estimated fair value at the time of the contribution.

**Imputed Financing.**  Imputed financing equals the amount of imputed costs included in amounts reported on the Statement of Net Cost.  

**Transfers-in.**  An intragovernmental transfer of cash or capitalized assets without reimbursement shall be recognized by the receiving entity as a transfer-in.  The amount recognized shall be the transferring entity's book value.  If book value is not known, the amount recognized should be the asset's estimated fair value at the date of the transfer.

**Transfers-out.**  An intragovernmental transfer of cash or capitalized assets without reimbursement shall be recognized by the transferring entity as a transfer-out.  The amount recognized should be the transferring entity's book value.  If book value is not known, then the amount recognized should be the asset's estimated fair value at the date of the transfer.  To the extent that exchange revenue included in calculating an entity's net cost of operations is required to be transferred to the Treasury or another Federal entity, the amount transferred shall be recognized as a transfer-out.  

**Prior Period Adjustments.**  Prior period adjustments are limited to corrections of errors and accounting changes with retroactive effect that can either increase or decrease net position depending on their nature, including those occasioned by the adoption of new Federal financial accounting standards.  Adjustments are included in the calculation of the net change in cumulative results of operations, rather than as an element of net results of operations for the period.  Prior period financial statements should not be restated for prior period adjustments. 

**Increase (Decrease) in Unexpended Appropriations.**  The change from the beginning of the period in the amount of appropriations that have been made available but have not been used.

**Net Position-Beginning of Period.**  The amount is the net position reported on the prior year's balance sheet.

**Net Position - End of Period.**  This amount shall agree with the amount reported as net position on the current year's balance sheet.

Department/Agency/Reporting Entity

COMBINING STATEMENT OF BUDGETARY RESOURCES (NOTE)

For the year ended September 30, 

(in dollars/thousands/millions)

MajorMajorMajorOtherBudgetaryBudgetaryBudgetaryBudgetaryCombined

Budgetary Resources:AccountAccountAccountAccountsTotal

Budget authority (line 1)$ xxx$ xxx$xxx$xxx$xxx

Unobligated balances - beginning of period (line 2A)   xxx   xxx  xxx  xxx  xxx

Net transfers prior-year balance, actual (+/-) (line 2B)   xxx   xxx  xxx  xxx  xxx

Spending authority from offsetting collections (line 3)   xxx   xxx  xxx  xxx  xxx

Adjustments (lines 4-6)       xxx   xxx  xxx  xxx  xxx

Total budgetary resources (line 7)          $ xxx$ xxx$xxx$xxx$xxx

Status of Budgetary Resources:

Obligations incurred (line 8) $ xxx$ xxx$xxx$xxx$xxx

Unobligated balances-available (line 9)              xxx   xxx  xxx  xxx  xxx

Unobligated balances-not available (line 10)        xxx  xxx  xxx  xxx  xxx

Total, status of budgetary resources (line 11)$ xxx$ xxx$xxx$xxx$xxx

Outlays:

Obligations incurred (line 8)$ xxx$ xxx$ xxx$ xxx$xxx

Less: spending authority from offsetting 

        collections and adjustments  (lines 3A, B, D, & 4A) (xxx)(xxx)(xxx)(xxx)(xxx)

Subtotal  xxx   xxx   xxx  xxx  xxx

Obligated balance, net - beginning of period (line 12)  xxx   xxx   xxx  xxx  xxx

Obligated balance transferred, net (line 13)                 xxx   xxx   xxx  xxx  xxx

Less: obligated balance, net - end of period (line 14)              (xxx)  (xxx)  (xxx) (xxx) (xxx)

Total outlays (line 15)             $xxx$ xxx$ xxx$ xxx$ xxx

_____________________________________________________________________________________________________________

The accompanying notes are an integral part of these statements.

**Instructions for the Statement of Budgetary Resources**

The Statement of Budgetary Resources and the related disclosures provide information about how budgetary resources were made available as well as their status at the end of the period.  This statement should be prepared by reporting entities whose financing comes wholly or partially from budgetary resources. Monitoring of budget execution is at the individual account level.  Accordingly, budgetary information aggregated for the Statement of Budgetary Resources should be disaggregated for each of the reporting entity's major budget accounts and presented as supplementary information.  Small budget accounts may be aggregated. 

Recognition and measurement of budgetary information reported on this statement should be based on budget terminology, definitions, and guidance in OMB Circular A-34, "Instructions on Budget Execution," dated December 26, 1995.  That Circular defines the terms shown in this statement.  The statement illustrates in condensed form the information that Circular A-34 requires to be reported on the Report on Budget Execution (SF-133).  For purposes of illustration only, the statement shown in this bulletin includes the corresponding line numbers from the SF-133.  If OMB's concepts and definitions are revised in the future, the classification and recognition of the appropriate amounts will change accordingly.

A consolidating statement of budgetary resources is preferred but not required for fiscal years 1998 and 1999.   Instead, reporting entities may prepare a combining statement.  Reporting entities that prepare a combining statement must disclose in a note that the statement is combining and, as such, intra-entity transactions have not been eliminated.  Also, the statement must be properly titled "consolidating" or "combining, " as appropriate.

**Budgetary Resources.**  This section of the statement is designed to present the total budgetary resources available to the reporting entity.  These include new budget authority, obligation limitations, direct spending authority, unobligated balances at the beginning of the period or transferred in during the period, spending authority from offsetting collections, and any adjustments to budgetary resources.

**Status of Budgetary Resources.**  This section of the statement is designed to display information about the status of budgetary resources at the end of the period.  It consists of the obligations incurred, the unobligated balances at the end of the period that remain available, and unobligated balances at the end of the period that are unavailable except to adjust or liquidate obligations chargeable to prior period appropriations.  The total amount displayed for the status of budgetary resources shall equal the total budgetary resources available to the reporting entity as of the reporting date.

**Outlays.**This section of the statement displays total outlays and reconciles obligations incurred to total outlays by displaying spending authority from offsetting collections, obligated balances at the beginning of the period, obligated balances transferred, and obligated balances at the end of the period.  

Department/agency

Reporting entity

COMBINED (CONSOLIDATED) STATEMENT OF FINANCING

For the year ended September 30, XXXX

(in dollars/thousands/millions)

**Obligations and Nonbudgetary Resources**

  Obligations incurred$ xxx

  Less:  Spending authority for offsetting 

collections and adjustments     xxx

  Donations not in the budget           xxx

  Financing imputed for cost subsidies          xxx

  Transfers-in (out)   xxx

 Exchange revenue not in the budget   xxx

  Other               xxx

    Total obligations as adjusted, and

       nonbudgetary resources$ xxx

**Resources That Do Not Fund Net Cost of Operations**

  Change in amount of goods, services, and 

  benefits ordered but not yet 

received or provided (xxx)

  Costs capitalized on the balance sheet      (xxx)

  Financing sources that fund costs of

     prior periods    (xxx)

  Other             (xxx)

      Total resources that do not fund 

    net cost of operations  (xxx)

**Costs That Do Not Require Resources**

  Depreciation and amortization  xxx

  Revaluation of assets and liabilities         xxx

  Other              xxx

      Total costs that do not require resources  xxx

**Financing Sources Yet to be Provided** xxx

**Net Cost of Operations**$ xxx

_______________________________________________________________

The accompanying notes are an integral part of these statements.

**Instructions for the Statement of Financing**

Accrual-based measures used in the Statement of Net Cost differ from the obligation-based measures used in the Statement of Budgetary Resources.  In order to understand these differences, information is needed to reconcile financial (proprietary) net cost of operations with obligations of budget authority.  This reconciliation also insures that there is a proper relationship between proprietary and budgetary accounts in the reporting entity's financial management system.  The Statement of Financing is designed to report those differences and facilitate the reconciliation.  

Preparers of financial statements have flexibility as to the level of detail presented, i.e., the information should be presented for the reporting entity as a whole and, if the preparer elects, for the major suborganizations or responsibility segments or for the major budget accounts (e.g., Salary and Expense, Operations and Maintenance, Procurement, etc.). 

Preparers of financial statements should refer to the Implementation Guide issued in conjunction with SFFAS No. 7 for detailed, non-authoritative guidance useful in preparing the Statement of Financing.  Note should be made of chapter 5 on special topics regarding the Statement of Financing.

**Obligations and Nonbudgetary Resources.**  The obligations and nonbudgetary resources section reports the computation of "Obligations Incurred" and adjustments for offsetting collections to expenditure accounts, recoveries of authority, and other items defined in OMB Circular A-34.  It also reports financing that is not recognized in the entity's budget.  Financing sources other than exchange revenues which are not in the budget are added to obligations because they provide additional resources.  Exchange revenues not in the budget are subtracted from obligations because they were subtracted from gross costs in the computation for net cost of operations. 

**Resources that do not Fund Net Costs of Operations.**Some obligations or nonbudgetary financing sources do not result in expenses on the Statement of Net Cost for the period in which the obligation was made or the nonbudgetary resource recognized.  Resources that do not fund net costs of operations commonly arise from three sources.  One source is the change in goods, services, and benefits ordered but not yet received or provided.  Another source is any good or service capitalized on the Balance Sheet.  The third source is any item that is treated as a financing source yet to be provided in a prior period and that is being recognized as a budgetary resource in the current period.  Because these items are included in obligations, as adjusted, and nonbudgetary financing sources, but not in the net cost of operations, they shall be subtracted in the reconciliation.

**Costs that do not Require Resources.**  These are costs which do not require financing by either budgetary or nonbudgetary resources.  Although there may be many expenses of this type, two of the most common are (1) depreciation and (2) expenses related to the revaluation of assets.  Because these items are part of the net cost of operations but are not included in obligations, as adjusted, and nonbudgetary resources, they should be added in the reconciliation.  As a practical matter, it may not always be feasible to report this information separately as displayed in the illustrated Statement of Financing.  In situations where it is not feasible to separately report all of the information illustrated in the statement, "netting" is permitted and the entire amount may be reported under the caption "Costs that do not Require Resources."

**Financing Sources Yet to be Provided.**The costs of the Federal Government are not always funded in the period the costs are incurred.  The example most common to agencies funded only by appropriations is the cost of increases in unused annual leave.  Costs of this nature are incurred in the reporting period, but are normally funded through appropriations in subsequent years.  Future funding required for these costs is reported as "financing sources yet to be provided."  Because these costs are part of the net cost of operations but are not in obligations as adjusted, and nonbudgetary resources, they should be added in the reconciliation.  Note that in a subsequent year, when budgetary resources are provided, the costs are subtracted in the section entitled "resources that do not fund net cost of operations."  

**Net Cost of Operations.**  This amount is determined by netting the "obligations as adjusted and nonbudgetary resources" and making appropriate adjustments for the total "resources that do not fund net cost of operations," the total "costs that do not require resources," and "financing sources yet to be provided."  The net cost of operations resulting from the reconciliation on the Statement of Financing shall be the same as the net cost of operations reported on the Statement of Net Cost.

A consolidated statement of financing is preferred but not required for fiscal years 1998 and 1999.   Instead, reporting entities may prepare a combined statement or, as an alternative, present the information required in the notes.  Reporting entities that prepare a combined statement or schedule must disclose in a note that the statement or schedule is combined and, as such, intra-entity transactions have not been eliminated.  Also, the statement or schedule must be properly titled "consolidated" or "combined, " as appropriate.

Department/Agency

Reporting Entity

STATEMENT OF CUSTODIAL ACTIVITY

For the years ended September 30

(in dollars/thousands/millions)

19xx19xx

Revenue Activity:

   Sources of Cash Collections:

  Individual Income and FICA/SECA Taxes$xxx      $xxx

  Corporate Income Taxes  xxx    xxx

  Excise Taxes  xxx        xxx

  Estate and Gift Taxes  xxx    xxx

  Federal Unemployment Taxes      xxx        xxx

  Customs Duties  xxx    xxx

  Miscellaneous               xxxxxx

   Total Cash Collections      xxx   xxx 

   Accrual Adjustments (+/-)  xxxxxx

   Total Custodial Revenue  xxx   xxx

   Disposition of Collections:

   Transferred to Others (by Recipient):

Recipient A (xxx)  (xxx)

Recipient B (xxx)  (xxx)

    Recipient C (xxx)  (xxx)

    (Increase) Decrease in Amounts Yet to be Transferred(xxx)  (xxx)

   Refunds and Other Payments(xxx)  (xxx)

   Retained by the Reporting Entity(xxx)  (xxx)

   Net Custodial Revenue Activity$ 0 $   0 

The accompanying notes are an integral part of these statements.

**Instructions for the Statement of Custodial Activity**

The Statement of Custodial Activity is required for entities that collect nonexchange revenue for the General Fund of the Treasury, a trust fund, or other recipient entities.  The collecting entities do not recognize collections which have been or should be transferred to others as revenues.  Rather, they shall account for sources and disposition of the collections as custodial activities on the Statement of Custodial Activity.

An exception to requiring preparation of the Statement of Custodial Activity is made when collecting entities have custodial collections that are non-material and incidental to their primary mission.  In these cases, the sources and disposition of the collections may be disclosed in accompanying footnotes.

Custodial collections are usually for nonexchange revenues, such as taxes or duties collected by the Internal Revenue Service or the U.S. Customs Service.  Exchange revenue is normally reported on the Statement of Net Cost.  It should be reported in a Statement of Custodial Activity only under the exceptional circumstances in which the entity recognizes virtually no costs in connection with earning revenue that it collects (see paragraph 45 of SFFAS No. 7).  Information on the sections of the Statement of Custodial Activity are presented below.  Also see SFFAS No. 7 and the related implementation guide.

**Sources of Collections.**  Report in this section of the statement the components of cash collections, such as by  type of tax and duty, collection of past-due receivables for others, or other appropriate identifier to describe the source and nature of the collections.  If refunds material in relation to the gross collections are made, consideration should be given to reporting them by component separately in a footnote.    

This section of the report also includes the accrual adjustment, which shall be shown separately and added or subtracted from the net collections to determine the total custodial revenue.  Guidance for calculating the accrual adjustment can be found in SFFAS No. 7 and the related implementation guide.  If the accrual adjustments are material in relation to the gross collections, consideration should be given to reporting them separately in a footnote.

**Disposition of Collections.**  This section of the statement accounts for the disposition of the revenue reported in the preceding section.

**Amounts Transferred to Others.**  Identify the specific agencies to which collections were transferred and the amounts transferred.  

**Amounts Yet to be Transferred.**  Report the change in liability for revenue yet to be transferred.  The liability may exist because the revenue has been accrued--and is receivable--but has not yet been collected, or because collections already made have not yet been transferred to the entity for which collected as of the end of the reporting period.

**Amounts Retained by the Collecting Entity.**  In some cases, collecting entities are permitted to retain a portion of amounts collected.  Amounts retained shall be separately reported by the collecting entity as a disposition of collections.

**Net Custodial Activity.**  The total of the sources of collection section (total revenue) shall equal the total of the disposition of collections section (total disposition of revenue).  The net custodial activity shall****always equal zero. 

**NOTES TO THE FINANCIAL STATEMENTS**

The following footnotes and instructions include the disclosure requirements contained in the SFFASs.

**Note 1.  Significant Accounting Policies:**

Describe the reporting entity and identify its major components.  Summarize the accounting principles and methods of applying those principles that management has concluded are the most appropriate for presenting fairly the entity's significant assets, liabilities, net cost of operations, changes in net position, and budgetary resources.  Disclosure of accounting policies should identify and describe the accounting principles followed by the reporting entity and the methods of applying those principles.  In general, the disclosure should encompass important judgments as to the valuation, recognition, and allocation of assets, liabilities, expenses, revenues and other financing sources.  Disclosures of accounting policies should not duplicate details presented elsewhere as part of the notes to the financial statements.    

In addition, the summary of significant accounting policies should disclose any significant changes in the composition of the reporting entity or significant changes in the manner in which the reporting entity aggregates information for financial reporting purposes.  These changes, in effect, result in a new reporting entity, and their impact should be reported by restating the financial statements for all prior periods presented in order to show the new reporting entity for all periods presented.  

**Note 2.  Fund Balances with Treasury:**

A.  **Fund Balances:**

                Entity  Non-Entity      

AssetsAssets    Total

(1) Trust Funds                  $ xx       $  xx         $  xx

(2) Revolving Funds                   xx             xx     xx

(3) Appropriated Funds               xx             xx               xx

(4) Other Fund Types              xx   xx   xx

Total                     $  xx$  xx$  xx

B.  **Other Information**: _____________________________________________

___________________________________________________________

___________________________________________________________

___________________________________________________________

**Instructions.**

A.**Fund Balances.**The total of all undisbursed account balances with the U.S. Treasury, as reflected in the entity's records and summarized by fund type.  Line (4), other fund types, should include balances in deposit  accounts, such as for collections pending litigation, awaiting determination of the proper accounting disposition, or being held by the entity in the capacity of a banker or agent for others.  If any of the balances under other fund types are material, list them separately.  

B.**Other Information.**Disclose any other information necessary for understanding the nature of the fund balances. 

**Note 3.  Cash, Foreign Currency and Other Monetary Assets:**

                                                              Non-

                                                   Entity   Entity

AssetsAssets

  A. Cash.                                            $  xx    $  xx

  B. Foreign Currency                                        xx      xx

  C. Other Monetary Assets      

    (1) Gold                                                       xx          xx

    (2) Special Drawing Rights                              xx            xx

    (3) U.S. Reserves in the International Monetary Fund         xx            xx

    (4) Other                                                           xxxx

    (5) Total Other Monetary Assets                         xxxx

  D. Total Cash, Foreign Currency and Other

           Monetary Assets                            $  xx$  xx

  E. Other Information:______________________________________________

___________________________________________________________

___________________________________________________________

**Instructions.** Report the amount of Cash, Foreign Currency and Other Monetary Assets for entity and non-entity assets.   

  A.**Cash.**  The total of cash under the control of the reporting entity, which includes coin, paper currency, purchased foreign currency, negotiable instruments, and amounts on deposit in banks and other financial institutions.  Cash available for agency use should include petty cash  and cash held in revolving funds which will not be transferred to the general fund.  

  B.**Foreign Currency.**  The total U.S. dollar equivalent of non-purchased foreign currencies held in foreign currency fund accounts.  

  C.**Other Monetary Assets.**This amount represents other items, including gold, special drawing rights, and U.S. Reserves in the International Monetary Fund. 

  D.**Total Cash, Foreign Currency, and Other Monetary Assets.**The sum of lines A, B, and C(5). 

  E.**Other Information**.  Disclose as other information any restrictions on cash.  Restricted cash includes holdings which are unavailable for agency use (non-entity cash) and have not been transferred to the general fund.  Restricted cash also includes cash held in escrow to pay property taxes and insurance related to property associated with  defaulted loans.  Disclose any restrictions on the use or conversion of cash denominated in foreign currencies, and the significant effects, if any, of changes in the exchange rate on the entity's financial position that occur after the end of the reporting period but before the issuance of financial statements.  Provide other information, as appropriate, such as the valuation rate for gold.

**Note 4.  Investments:**

-------------Amounts for Balance Sheet Reporting----------

(1)      (2)   (3)  (4)  (5)                   (6)

      Unamortized

Amortization(Premium)InvestmentsOther Market Value

CostMethodDiscountNetAdjustmentsDisclosure

A. Intragovernmental 

     Securities:

   (1) Marketable $  xx       ___   $  xx    $   xx$   xx $    xx

   (2) Non-Marketable:

    Par value                   xx       ___          xx          xx                    xx              xx 

   (3) Non-Marketable:

    Market-Based    xx         ___         xx     xx    xx    xx

   Subtotal                $ xx        n/a   $  xx      $ xx$ xx $   xx

   (4) Accrued Interest    xxxx

   Total             $ xx$   xx

B. Other****Securities:

    (1) ____________________ $  xx       ___       xx   $   xx $   xx      $   xx  

    (2) ____________________     xx       ___       xx              xx                 xx      xx 

    (3) ____________________     xx xx    xx      xx     xx

Subtotal            $   xx      ****n/a    $ xx$   xx$   xx $   xx 

    (4) Accrued Interest$   xx$   xx

Total              $   xx**$   xx**

C. Other Information: ______________________________________________________________________

__________________________________________________________________________________

**Instructions.** Columns 1 through 4 are for disclosing amounts to be recognized on the balance sheet.  Column 4 equals column 1 plus or minus column 3, column 5 includes any reduction in value that is more than temporary and other adjustments, and column 6 equals column 4 minus column 5.  Securities are normally recognized at cost or amortized cost on the Balance Sheet.  However, market value is used for Balance Sheet purposes (except for pension and other retirement plans) when (a) there is intent to sell the securities prior to maturity and (b) there is a reduction in value that is more than temporary.  Column 6 is to be used to disclose  the market value of all marketable securities and all non-marketable market-based securities. 

**A.Intragovernmental Securities.**  Intragovernmental securities are non-marketable par value Treasury securities issued by the Bureau of the Public Debt to Federal accounts and are purchased and redeemed at par exclusively through Treasury's Finance and Funding Branch.  Non-Marketable Market-Based Treasury Securities are not traded on any securities exchange but mirror the prices of marketable securities with similar terms. 

**B.Other Information.**  Disclose any other information relative to understanding the nature of reported investments, such as permanent impairments.

**Note 5.****Accounts Receivable:**  Present, for both entity and non-entity receivables, the gross receivables, the method used to estimate the allowance for uncollectible accounts, and the net amount due.  Do not include receivables related to direct or guaranteed loans which are reported in note 7.

**Note 5a.  Taxes Receivable.**   Disclose the gross taxes receivable, allowance for uncollectible taxes receivable and net taxes receivable.  Also, disclose the methodology used to compute the allowance for uncollectible taxes.

**Note 6.  Other Assets:**

A.  Other Entity Assets

1.  Intragovernmental

(1)_________________________________________$   xx

(2)_________________________________________     xx

(3)_________________________________________     xx

      Total Intragovernmental                      $    xx

2. _______________________________________________$   xx

3. _______________________________________________     xx

4. _______________________________________________     xx

      Total Other Entity Assets                     $    xx

B.  Other Information: ___________________________________________

 _______________________________________________________

C.  Other Non-Entity Assets

1.  Intragovernmental

(1)_________________________________________$   xx

(2)_________________________________________     xx

(3)_________________________________________     xx

     Total Intragovernmental                         $    xx

2.  _______________________________________________$   xx

3.  _______________________________________________     xx

4.  _______________________________________________     xx

      Total Other Non-Entity Assets               $   xx

D.  Other Information: ___________________________________________

 _______________________________________________________

**Instructions.**

A.**Other Entity Assets.**  List and describe the major homogenous components of other entity assets.  

B.**Other Information.**  Provide other information needed to understand the nature of other entity assets.

C.**Other Non-Entity Assets.**  List and describe the major homogenous components of other non-entity assets.    

D.**Other Information.**  Provide other information needed to understand the nature of other non-entity assets.

**Note 7.  Direct Loans and Loan Guarantees, Non-Federal Borrowers:**

A.The entity operates the following direct loan and/or loan guarantee programs:

(1)_______________________________________________________

(2)_______________________________________________________

(3)_______________________________________________________

An analysis of loans receivable, loan guarantees, the liability for loan guarantees, and the nature and amounts of the subsidy and administrative costs associated with the direct loans and loan guarantees is provided in the following sections.

B1.Direct Loans Obligated Prior to FY 1992 (Present Value Method):

Value of

Assets 

                        Loans                                     Present       Related to

           Loan             Receivable,    Interest     Foreclosed      Value         Direct

ProgramsGross     ReceivableProperty  AllowanceLoans     

    (1)_______     $    xxx      $    xxx    $    xxx  ($  xxx) $    xxx  

(2)_______           xxx     xxx    xxx  (    xxx)     xxx

             Total       xxx     xxx     xxx    (     xxx)        xxx

B2.Direct Loans Obligated Prior to FY 1992 (Allowance for Loss Method):

Value of

Assets

                        Loans                     Allowance                    Related to

           Loan             Receivable,  Interest     For Loan          Foreclosed      Direct

ProgramsGross     ReceivableLosses    Property Loans     

    (1)_______     $    xxx      $    xxx    ($   xxx) $    xxx $    xxx  

(2)_______           xxx     xxx    (     xxx)     xxx     xxx

             Total       xxx     xxx    (     xxx)     xxx    xxx

C.Direct Loans Obligated After FY 1991:

                                                                                Value of

                                                                Allowance for Assets

                      Loans                                     Subsidy Cost  Related to    

LoanReceivable, Interest Foreclosed(Present        Direct

ProgramsGross      ReceivablePropertyValue)     Loans    

(1)_______     $    xxx      $    xxx    $    xxx ($   xxx)   $    xxx  

(2)_______           xxx     xxx     xxx(     xxx)     xxx

             Total       xxx     xxx     xxx      (     xxx)              xxx

D1.Defaulted Guaranteed Loans from Pre-1992 Guarantees (Present Value Method):

                        Defaulted                                           Defaulted

                       Guaranteed                              Present        Guaranteed 

       Loan Guarantee   Loans Recei-   Interest        Foreclosed   Value           Loans

Programs      vable, GrossReceivableProperty  Allowance Receivable, Net

       (1)__________      $    xxx   $    xxx         $    xxx        ($  xxx)         $  xxx 

       (2)__________            xxx     xxx     xxx        (    xxx)   xxx

             Total                xxx     xxx     xxx     (    xxx)             xxx

D2.Defaulted Guaranteed Loans from Pre-1992 Guarantees (Allowance for Loss Method)

                      Defaulted                                               Defaulted

                       Guaranteed                             Allowance                  Guaranteed 

       Loan Guarantee  Loans Recei-  Interest     For Loan      Foreclosed      Loans

Programs      vable, GrossReceivableLosses    Property  Receivable, Net

       (1)__________      $    xxx    $    xxx      ($  xxx)      $    xxx          $  xxx 

       (2)__________            xxx     xxx      (    xxx)  xxx    xxx

             Total               xxx     xxx(   xxx)             xxx    xxx

E.Defaulted Guaranteed Loans from Post-1991 Guarantees

Value of

 Assets

                                 Defaulted         Allowance for  Related to      

 Guaranteed                            Subsidy      Defaulted  

                      Loans                                 Cost              Guaranteed

     Loan Guarantee     Receivable,   Interest    Foreclosed  (Present          Loans     

Programs      Gross      Receivable Property Value)      Receivable

     (1)__________    $    xxx      $    xxx     $    xxx    ($ xxx)       $   xxx

     (2)__________          xxx     xxx     xxx(   xxx)         xxx

             Total       xxx    xxx    xxx(   xxx)    xxx

F.   Guaranteed Loans Outstanding:

Outstanding           Amount of

                        Principal,              Outstanding

                         Guaranteed Loans,      Principal

Loan ProgramsFace Value       Guaranteed  

(1)__________       $   xx                   $   xx

(2)__________            xx   xx

             Total        $   xx$  xx

G1.Liability for Loan Guarantees (Present Value Method, pre 1992):     

                         Liabilities for

                      Liabilities for        Loan Guarantees Total

                      Losses on Pre-1992    for Post-1991      Liabilities

                      Guarantees,             Guarantees,        for Loan 

Loan ProgramsPresent Value     Present ValueGuarantees

(1)__________$    xx            $  xx              $   xx

(2)__________            xx   xx    xx

   Total     $    xx$  xx$   xx

G2.Liability for Loan Guarantees (Estimated Future Default Claims, pre 1992)     

                       Liabilities for

                      Liabilities forLoan Guarantees Total

                     Losses on Pre-1992    for Post-1991     Liabilities

                      Guarantees, Estimated Guarantees,        for Loan 

Loan ProgramsFuture Default ClaimsPresent ValueGuarantees

(1)__________       $    xx     $   xx              $   xx

(2)__________                     xx    xx    xx

   Total                $    xx$   xx$   xx

H.Subsidy Expense for Post-1991 Direct Loans

1.Current Year's Direct Loans

                Interest                               

Loan        Differ-                                 

ProgramsentialDefaults Fees OtherTotal

     (1)______  $  xx      $  xx     $  (xx)       $  xx    $  xx 

(2)______        xx      xx     (xx)           xx          xx

       Total                                        $  xx

2.Direct Loan Modifications and Reestimates 

Loan Programs  Modifications     Reestimates 

     (1)__________              $  xx              $  xx         

     (2)__________         xx                  xx       

3.Total Direct Loan Subsidy Expenses

Loan Programs   

     (1)__________    $    xx 

     (2)__________          xx

             Total       $    xx

I.Subsidy Expense for Post-1991 Loan Guarantees:

1.         Current Year's Loan Guarantees 

Interest    

 Loan                            Supple-            

ProgramsDefaults  Feesment    OtherTotal

     (1)______     $   xx   $  (xx)    $   xx     $  xx     $   xx 

      (2)______             xx            (xx)            xx            xx          xx

         Total     $   xx

2.Loan Guarantee Modifications and Reestimates 

Loan ProgramsModificationsReestimates

(1)__________$   xx          $   xx

(2)__________     xx         xx

3.Total Loan Guarantee Subsidy Expense 

Loan Programs   

     (1)__________    $    xx 

     (2)__________          xx

             Total     $    xx

J.Administrative Expense:

**Direct Loans          Loan Guarantees**

Loan ProgramsLoan Programs

     (1)__________    $    xx                (1)__________     $    xx

     (2)__________          xx           (2)__________           xx

             Total    $     xx   Total    $    xx

K.Other Information:____________________________________________

___________________________________________________________

___________________________________________________________

___________________________________________________________

**Instructions.**

A.**Identity.**Enter the names of the direct loan and loan guarantee programs operated by the reporting entity.  The Federal Credit Reform Act of 1990 divides direct loans and loan guarantees into two groups: (a) Pre-1992 means the direct loan obligations or loan guarantee commitments made prior to FY 1992 and the resulting direct loans or loan guarantees, and (b) Post-1991 means the direct loan obligations or loan guarantee commitments made after FY 1991 and the resulting direct loans or loan guarantees.  The definitions and explanations of terms and concepts in these instructions can be supplemented by referring to OMB Circular A-34, Section 12, and OMB Circular A-11, Section 33. 

Section 506(a)(1) of the Federal Credit Reform Act exempts the credit activities of certain agencies, such as FDIC and TVA.  These agencies can report in accordance with other requirements. 

Agencies should disclose that direct loan obligations and loan guarantee commitments made after FY 1991, and the resulting direct loans or loan guarantees, are governed by the Federal Credit Reform Act of 1990.  The Act provides that the present value of the subsidy costs (which arises from interest rate differentials, interest subsidies, delinquencies and defaults, fee offsets, and other cash flows) associated with direct loans and loan guarantees be recognized as a cost in the year the direct or guaranteed loan is disbursed.  Direct loans are reported net of an allowance for subsidy at present value, and loan guarantee liabilities are reported at present value.

Agencies should also disclose whether pre-1992 direct loans and loan guarantees are reported on a present value basis or are reported under the allowance for loss method.  (Under the allowance for loss method, the nominal amount of the direct loans is reduced by an allowance for uncollectible amounts, and the liability for loan guarantees is the amount the agency estimates will more likely than not require a future cash outflow to pay default claims; under the present value method, the nominal amount of direct loans is reduced by an allowance equal to the difference between the nominal amount and the present value of the expected net cash flows from the loans, and the liability for loan guarantees is the present value of expected net cash outflows due to the loan guarantees.)   Depending on the reporting method selected by management for pre-1992 direct loans and loan guarantees, agencies should choose the appropriate format from the alternatives shown in sections B, D, and G above.  (Note: Agencies should follow either the net present value method or the allowance for loss method but not both.  They may not change from one method to the other without the advance approval of OMB.)

Agencies should****disclose that their loans receivable, net, or their value of assets related to direct loans, is not the same as the proceeds that they would expect to receive from selling their loans.

When the reporting entity has made payments on behalf of borrowers which should be collected from the borrowers, the resulting receivables shall be reported in the same column as loans receivable for either direct loans or defaulted guaranteed loans.  Receivables related to administrative costs of operating these programs shall be reported as accounts receivable in Note 5 and not as credit program receivables in this note. 

B.**Direct Loans Obligated Prior to FY 1992.**  For each program with pre-1992 Direct Loans, report Loans Receivable Gross and Interest Receivable in columns 2 and 3 respectively.  If the present value method is used, report in column 4 the estimated net realizable value of related foreclosed property and report in column 5 the present value allowance.  The sum of columns 2 through 4 less column 5 is reported as Loans Receivable, Net (column 6). If the allowance for loss method is used, report in column 4 the allowance for loan losses and in column 5  the estimated net realizable value of related foreclosed property.  The sum of columns 2, 3, and 5 less column 4 is reported as Loans Receivable, Net (column 6). 

C.**Direct Loans Obligated After FY 1991.**  For each program with post-1991 Direct Loans, report Loans Receivable, Gross,  Interest Receivable and the estimated net realizable value of related foreclosed property in columns 2, 3, and 4, respectively.  

Foreclosed property associated with post-1991 direct and acquired defaulted guaranteed loans shall be valued at the net present value of the projected cash flows associated with the property. To practicably accomplish this requirement, foreclosed property may be recorded at the estimated net realizable value at the time of foreclosure.  A portion of the related allowance for subsidy account should apply to the foreclosed property, but that amount need not be separately determined.  Rather, the allowance account is subtracted from the sum of the credit program assets to determine the net present value of the assets.  For guidance in recording transactions related to foreclosures, see Treasury's case 5B, Accounting for Collateral and Escrow Transactions for a Loan Guarantee Program Under the Credit Reform Act of 1990 (Present Value Reporting Approach), dated August 24, 1993.

Report the related allowance for subsidy cost in column 5.  Report the sum of columns 2 through 4 less column 5 as the Value of Assets Related to Direct Loans (column 6).

D.**Defaulted Guaranteed Loans from Pre-1992 Guarantees.**For each program with pre-1992 Loan Guarantees, report gross receivables from defaulted guaranteed loans assumed for direct collection in column 2 and the related interest receivable in column 3.  If the present value method is used, report the estimated net realizable value of related foreclosed property in column 4, and the present value allowance in column 5.  The sum of columns 2 through 4 less column 5 is reported as Defaulted Guaranteed Loans Receivable, Net (column 6). If the allowance for loss method is used, report the allowance for loan losses in column 4 and the estimated net realizable value of related foreclosed property in column 5. The sum of columns 2, 3 and 5 less column 4 is reported as Defaulted Guaranteed Loans Receivable, Net (column 6).  

E.**Defaulted Guaranteed Loans for Post-1991 Guarantees.**  For each program with post-1991 Loan Guarantees, report gross receivables from defaulted guaranteed loans assumed for direct collection, related interest receivable, and the estimated net realizable value of related foreclosed property in columns 2, 3, and 4, respectively.  Report the related allowance for subsidy cost in column 5. Report the sum of columns 2 through 4 less column 5 as  the Value of Assets Related to Defaulted Guaranteed Loans Receivable (column 6).  For foreclosed property, see the instructions for section C.  The sum of the amounts reported in column 6 of sections B, C, D, and E shall equal the amount reported on the Balance Sheet as credit program receivables and related foreclosed property, net.      

F.**Guaranteed Loans Outstanding.**For each loan guarantee program, report in column 2 the outstanding principal of guaranteed loans at face value.  In column 3, report the amount of this outstanding principal that is guaranteed. 

G.**Liability for Loan Guarantees.** For each program with pre-1992 loan guarantees, report in column 2 the liability for losses. If the present value method is used to calculate the liability, report in column 2 the present value of liabilities for losses on pre-1992 guarantees.  If the estimated future default claims method is used, report in column 2 the estimated future default claims. For each program with post-1991 loan guarantees, report in column 3 the present value of the estimated net cash flows (outflows less inflows) to be paid by the entity as a result of the loan guarantees.  Report the total of columns 2 and 3 as total liabilities for loan guarantees (column 4).

 H.**Subsidy Expense for Post-1991 Direct Loans.**

**Direct Loans**.  Report the direct loan subsidy expense, consisting of the following, at present value, as follows: 

1.**Current Year's Direct Loans:**  In column 2, the present value of the amount of the subsidy expense attributable to the interest rate differential between the interest rate to be collected from the borrowers and the interest rate to be paid on funds borrowed to finance the loans; in column 3, the present value of the estimated delinquencies and defaults (net of recoveries); in column 4, the present value of the estimated fees collected (offsetting expense); in column 5, the present value of other cash flows, including prepayments and proceeds of loan asset sales; and in column 6, the total of columns 2 through 5.   

2.**Direct Loan Modifications and Reestimates:**  In column 2, the subsidy cost of modifications of direct loans previously disbursed (whether pre-1992 or post-1991); and in column 3, reestimates of the subsidy cost of direct loans previously disbursed. 

3.**Total Direct Loan Subsidy Expense:**  The total subsidy expense for current year's direct loans, modifications, and reestimates. 

I.**Subsidy Expense for Post-1991 Loan Guarantees.**

**Loan Guarantees**.  Report the loan guarantee subsidy expense consisting of the following present values: 

1.**Current Year's Loan Guarantees:**  In column 2, the present value of the estimated payments for delinquencies and defaults on loan guarantees (net of recoveries); in column 3, the present value of the estimated fees collected (offsetting expense); in column 4, the present value of the amount of the interest supplement; in column 5, the present value of other cash flows; and in column 6, the total of columns 2 through 5.   

2.**Loan Guarantee Modification and Reestimates:**  In column 2, the subsidy cost of modifications of loan guarantees previously made (whether pre-1992 or post-1991); in column 3, the reestimates of the subsidy cost of loan guarantees previously made.

3.**Total Loan Guarantee Subsidy Expense:**  The total subsidy expense for current year's loan guarantees, modifications, and reestimates. 

J.**Administrative Expense.**  Report the portions of salaries and other administrative expenses that have been accounted for in support of the direct loan programs and loan guarantee programs.  Report the expenses for the individual programs, if material.

K.**Other Information.**  Provide other information related to direct loan and loan guarantee programs, as appropriate, including any commitments to guarantee, management's method for accruing interest revenue and recording interest receivable, and management's policy for accruing interest on non-performing loans.

If modifications were made, explain the nature of the modifications, the discount rate used in calculating the expense, and the basis for recognizing a gain or loss related to the modification.  Also, if appropriate, disclose that the subsidy expense resulting from reestimates that is included in the financial statements is not reported in the budget until the following year.  

With respect to the foreclosed property reported in sections B, C, D, and E, the following information should be disclosed:

Changes from prior year's accounting methods, if any

Restrictions on the use/disposal of the property

Number of properties held and average holding period by type or category, and

Number of properties for which foreclosure proceedings are in process at the end of the period.

**Note 8.  Inventory and Related Property**:

The following tables describes the information that shall be disclosed for each category of inventory and related property.

**DESCRIPTION**

**REQUIRED DISCLOSURES**

Inventories

oGeneral composition of inventory

oBasis for determining inventory values, including the valuation method and any cost flow assumptions 

oChanges from prior year's accounting methods, if any

oBalances for each of the following categories of inventory: (1) inventory held for current sale; (2) inventory held in reserve for future sale; (3) excess, obsolete and unserviceable inventory; and, (4) inventory held for repair, unless otherwise presented on the financial statements

oRestriction on the sale of inventory

oThe decision criteria for identifying the category to which inventory is assigned

oChanges in the criteria for identifying the category to which inventory is assigned

**DESCRIPTION**

**REQUIRED DISCLOSURES**

Operating materials and supplies

oGeneral composition of operating materials and supplies

oBasis for determining operating materials and supplies values, including the valuation method and any cost flow assumptions 

oChanges from prior year's accounting methods, if any

oBalances for each of the following categories of operating materials and supplies: (1) items held for use, (2) items held in reserve for future use, and (3) excess, obsolete and unserviceable items

oRestriction on the use of operating materials and supplies

oThe decision criteria for identifying the category to which operating materials and supplies are assigned

oChanges in the criteria for identifying the category to which operating materials and supplies are assigned

Stockpile materials

oGeneral composition of stockpile materials

oBasis for valuing stockpile materials, including valuation method and any cost flow assumptions 

oChanges from prior year's accounting methods, if any

oRestriction on the use of material

oBalances of stockpile materials in each of the following categories:  stockpile materials, and stockpile materials held for sale

oDecision criteria for categorizing stockpile materials as held for sale

oChanges in the criteria for categorizing stockpile materials as held for sale

Seized property

oExplanation of what constitutes a seizure and a general description of the composition of seized property

oMethod(s) of valuing seized properties

oChanges from prior year's accounting methods, if any

oAnalysis of change in seized property, including the dollar value and number of seized properties that are (1) on hand at the beginning of the year, (2) seized during the year, (3) disposed of during the year, and (4) on hand at the end of the year, as well as known liens or other claims against the property.  This information should be presented by type of seized property and method of disposition where material

Forfeited property

oComposition of forfeited property

oMethod(s) of valuing forfeited property

oRestrictions on the use or disposition of forfeited property

oChanges from prior year's accounting methods, if any

oAnalysis of change in  forfeited property, providing the dollar value and number of forfeited properties that (1) are on hand at the beginning of the year, (2) are made during the year, (3) are disposed of during the year by method of disposition, and (4) are on hand at the end of the year.  This information would be presented by type of property forfeited where material

oIf available, an estimate of the value of property or funds to be distributed to Federal, State and local agencies in future reporting periods

**DESCRIPTION**

**REQUIRED DISCLOSURES**

Goods held under price support and stabilization programs

oBasis for valuing the commodities, including the valuation method and any cost flow assumptions

oChanges from prior year's accounting methods, if any

oRestrictions on the use, disposal, or sale of commodities

oAn analysis of change in the dollar value and volume of commodities, including those (1) on hand at the beginning of the year, (2) acquired during the year, (3)disposed of during the year by method of disposition, (4) on hand at the end of the year, (5) on hand at year's end and estimated to be donated or transferred during the coming period, and (6) that****may****be received as a result of collateral related to nonrecourse loans outstanding.  The analysis should also show the dollar value and volume of purchase agreement commitments

**Note 9.  General Property, Plant, and Equipment**

The major classes of general PP&E should be determined by the reporting entity.  Examples of major classes of general PP&E include, but are not limited to, buildings and structures, furniture and fixtures, equipment, vehicles, and land.  The following are the minimum disclosures required for each major class of general PP&E:

the cost, associated accumulated depreciation, and book value

the estimated useful lives

the method(s) of depreciation

capitalization threshold(s), including any changes in threshold(s) during the period; and

restrictions on the use or convertibility of general PP&E

Recognition and measurement criteria for general PP&E are in SFFAS No. 6.  For existing PP&E, if adjustments are required in the period that the standards are implemented to comply with the recognition and measurement criteria, the adjustments should be made and disclosed by major class in accordance with the standard.

Other actions to implement SFFAS No. 6 that require prior period adjustments and footnote disclosures include removal from the balance sheet of previously recognized Federal mission PP&E, heritage assets stewardship land, and related contra assets.

**Note 10.  Debt:**

          BeginningNet      Ending   

Balance  BorrowingBalance

A.    Public Debt:

(1) Held by Government    

Accounts    $   xx $   xx     $   xx   

       (2) Held by the Public            xx    xx    xx

(3) Total Public Debt    $   xx$   xx$   xx

B.    Agency Debt: 

(1) Held by Government   

Accounts         xx      xx        xx

(2) Held by the Public                 xx    xx    xx

(3) Total Agency Debt          $   xx$   xx$   xx

C.    Other Debt:

(1)  Debt to the Treasury       $   xx $   xx    $   xx

(2)  Debt to the Federal

             Financing Bank             xx      xx     xx

(3)  Debt to Other Federal

            Agencies            xx    xx    xx

(4) Total Other  Debt                xx    xx     xx

D.    Total Debt     $  xx$   xx$  xx

E.    Classification of Debt:

Intragovernmental Debt $  xx

Debt held by the Public     xx

Total Debt  $  xx

F.  Other Information: _______________________________________________

     _______________________________________________________________

**Instructions.** Except for credit program debt to Treasury or loan guarantee and other liabilities covered by budgetary resources at the balance sheet date, all debt is classified as not covered by budgetary resources.  Lines A (1)  and (2), Public Debt, should be reported by the Treasury Department only and shall distinguish between public debt held by government agencies and public debt held by the public.  On line B, enter the amounts of agency debt issued under special financing authorities (e.g., Federal Housing Administration (FHA) debentures and Tennessee Valley Authority bonds).  Report separately agency debt held by government agencies and agency debt held by the public.  On line C, enter the amounts of debt owed to Federal agencies as follows:  on line C(1), debt owed to the Treasury, which includes direct loan and guaranteed loan financing account liabilities to Treasury as well as other debt owed to Treasury; on line C(2), debt owed to the Federal Financing Bank; and, on line C(3), debt owed to other Federal agencies.  Net borrowing and repayment is not to include amounts that result from refinancing.  

**Classification of Debt.**  Report as intragovernmental debt all debt owed to Treasury, the Federal Financing Bank or other Federal Agencies or accounts (line A (1), B(1), and C(4) ).  This amount shall equal the intragovernmental debt amount reported on the balance sheet.  Report all other debt held by the public on lines A(2) and B(2).  This amount shall equal debt held by the public on the balance sheet.

**Other Information.**Provide the names of the agencies, other than Treasury or the Federal Financing Bank, to which intragovernmental debt is owed and the amounts.  Provide other  information relative to debt (for example, redemption or call of debts owed to the public before maturity dates, write-offs of debts owed Treasury or the Federal Financing Bank, etc.).

**Note 11. Other Liabilities:**

A.  Other Liabilities Covered by Budgetary Resources:                 

  Non-

CurrentCurrentTotal 

1.  Intragovernmental

     (1)   $   xx      $   xx       $   xx

    (2)                 xx           xx            xx

    (3)    xx    xx    xx

     Total Intragovernmental      $   xx $   xx$  xxx

2.      $   xx       $   xx       $   xx

    3.                 xx            xx            xx

    4.      xx    xx    xx

Total                        $   xx$   xx$  xxx

B.  Other Information: ___________________________________________

 _______________________________________________________

C.  Other Liabilities not Covered by Budgetary Resources:

  Non-

CurrentCurrentTotal 

1.  Intragovernmental

     (1)      $   xx      $   xx       $   xx

    (2)                 xx           xx            xx

    (3)    xx    xx    xx

     Total Intragovernmental                        $   xx $   xx$  xxx

2.      $   xx      $   xx       $   xx

    3.                 xx           xx            xx

    4.      xx    xx    xx

Total                        $   xx$   xx$  xxx

D.  Other Information: ___________________________________________

 _______________________________________________________

**Instructions.**

A.**Other Liabilities.**Include all liabilities not reported elsewhere.  Separately report other liabilities covered by budgetary resources and those not covered by budgetary resources, and separately disclose the current portion of other liabilities covered by budgetary resources.

B.**Other Information.** Provide other information necessary for understanding other liabilities.

**Note 12 Leases:**

**A. Entity as Lessee:**

**Capital Leases:**

Summary of Assets Under Capital Lease:

Land and Buildings............................  $    xx

Machinery and Equipment.......................  $    xx

Other.........................................  $    xx

Accumulated Amortization......................  $    xx

Description of Lease Arrangements: ______________________________

___________________________________________________________

___________________________________________________________

Future Payments Due:

      Asset Category      

Fiscal Year   (1)    (2)    (3)Totals

Year 1 $  xx$   xx $  xx $  xx

Year 2     xx     xx     xx     xx

Year 3     xx     xx     xx     xx

Year 4     xx     xx     xx     xx

Year 5     xx     xx     xx     xx

After 5 Years     xx    xx    xx    xx

Total Future Lease

Payments            $  xx    $  xx $  xx $  xx

Less: Imputed Interest     xx     xx     xx     xx

      Executory Costs

 (e.g., taxes)         xx   xx    xx    xx

Net Capital     

Lease Liability     $   xx$   xx$   xx$   xx

Liabilities covered by budgetary resources  $   xx

Liabilities not covered by budgetary resources $   xx

**Operating Leases:**

Description of Lease Arrangements: ______________________________

___________________________________________________________

___________________________________________________________

Future Payments Due:

       Asset Category     

Fiscal Year   (1)   (2)   (3)Totals

Year 1 $  xx$   xx   $   xx   $   xx

Year 2     xx     xx     xx     xx

Year 3     xx     xx     xx     xx

Year 4     xx     xx     xx     xx

Year 5     xx     xx     xx     xx

After 5 Years     xx    xx    xx    xx

Total Future Lease

Payments........... $   xx$   xx$   xx$   xx

**B.  Entity as Lessor:**

**Capital Leases:**

Description of Lease Arrangements: ______________________________

___________________________________________________________

___________________________________________________________

Future Projected Receipts:

       Asset Category     

Fiscal Year   (1)   (2)   (3)Totals

Year 1 $  xx $  xx $  xx$   xx

Year 2     xx     xx     xx     xx

Year 3     xx     xx     xx     xx

Year 4     xx     xx     xx     xx

Year 5     xx     xx     xx     xx

After 5 Years     xx    xx    xx    xx

Total Future Capital

Lease Receivables.. $   xx$   xx$   xx$   xx

**Operating Leases:**

Description of Lease Arrangements: ______________________________

___________________________________________________________

Future Projected Receipts:

       Asset Category     

Fiscal Year   (1)   (2)   (3)Totals

Year 1 $  xx $  xx $  xx$   xx

Year 2     xx     xx     xx     xx

Year 3     xx     xx     xx     xx

Year 4     xx     xx     xx     xx

Year 5     xx     xx     xx     xx

After 5 Years     xx    xx    xx    xx

Total Future Operating

Lease Receivables.. $   xx$   xx$   xx$   xx

**C.   Other Information:_____________________________________________**

___________________________________________________________

**Instructions.**

SFFAS Nos. 5 and 6 provide the criteria for liability and asset recognition with respect to capital leases.

A.**Entity as Lessee.**  Summary of Assets Under Capital Lease:  Enter the gross assets under capital lease, by major asset category, and the related total accumulated amortization.

Description of Lease Arrangements:  Provide information that discloses the agency's funding commitments including, but not limited to, the major asset categories and associated lease terms, including renewal options, escalation clauses, contingent rentals restrictions imposed by lease agreements, and the amortization period.

Future Payments Due:  Enter future lease payments, by major asset category, for all noncancelable leases with terms longer than one year.  

For capital leases, show deductions for imputed interest and executory costs.  Separately disclose the portions of the capital lease liability covered by budgetary resources and not covered by budgetary resources (see Appendix B of OMB Circular A-11 for additional guidance but observe a difference in terminology: that the term capital leases as used in this note includes capital leases and lease purchases as the terms are used in Circular A-11).

B.**Entity as Lessor.**  Description of Lease Arrangements:  Provide the information necessary to disclose the commitment of the entity's assets including but not limited to the major asset category and lease terms. 

**Future Projected Receipts:**  Enter future lease revenues, by major asset category, for all noncancelable leases with terms longer than one year.

C.**Other Information.**  Provide other information necessary for understanding leases that is not disclosed in the above categories.

**Note 13.  Federal Employee and Veterans' Benefits**

Entities that are responsible for administering pensions, other retirement benefits, and other post-employment benefits should calculate and report these liabilities and related expenses in accordance with SFFAS No. 5. 

The following are the minimum disclosures required for pensions and other retirement benefits:

The total liability and the separate amounts covered by budgetary resources and not covered by budgetary resources  

The assumptions used to calculate the liability.  (In the case of a pension plan that uses assumptions that differ from those used by the primary plans, the Civil Service Retirement System (CSRS), the Federal Employees Retirement System (FERS), and the Military Retirement System (MRS), the pension plan using the different assumptions should disclose how and why the assumptions used differ from those of the primary plans.) 

Separate disclosure of the individual components of expense for the period (i.e., the normal cost, interest on the liability for the period, prior and past service cost from plan amendments during the period, if any, any gains/losses due to a change in the medical inflation rate assumption, and other actuarial gains or losses during the period, if any)

**Note 14.  Life Insurance Liabilities:**

Federal entities providing whole life insurance should provide all disclosures required by private sector standards.  They should also separately disclose all components of the liability for future policy benefits with a description of each amount and an explanation of its projected use and any other potential uses (e.g., reducing premiums, determining and declaring dividends available, and/or to reduce Federal support in the form of appropriations related to administrative costs or subsidies).  See SFFAS No 5.

**Note 15. Unexpended Appropriations:**

A.  **Unexpended Appropriations:**

(1) Unobligated      

(a) Available  $  xx

(b) Unavailable      xx

(2) Undelivered orders           xx

Total  $ xxx

B.  **Other Information**: _____________________________________________

___________________________________________________________

___________________________________________________________

___________________________________________________________

**Instructions.****Unexpended Appropriations.**The total of the entity's appropriations represented by unobligated balances and undelivered orders.  Unobligated balances shall segregated to show available and unavailable amounts.

**Note 16.  Contingencies:**  A loss contingency is an existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity.  The uncertainty should ultimately be resolved when one or more future events occur or fail to occur.  The likelihood that the future event or events will confirm the loss or the incurrence of a liability can range from probable to remote.  SFFAS No. 5 contains the criteria for recognition and disclosure of contingent liabilities. In addition to the contingent liabilities required by SFFAS No. 5, an estimate of obligations related to canceled appropriations for which the reporting entity has a contractual commitment for payment should also be disclosed.

**Note 17.  Environmental Cleanup Costs**.  Disclose environmental cleanup costs in accordance with SFFAS No. 5 and SFFAS No. 6.  For environmental hazards resulting from ongoing operations, include the:  (1) sources of cleanup requirements, (2) method for assigning estimated total cleanup costs to current operating periods,  (3) unrecognized portion of estimated total cleanup cost associated with general PP&E,  (4) material changes in total estimated cleanup costs due to changes in laws, technology, or plans, and the portion of the change in estimate that relates to prior period operations, and  (5) nature of estimates and the disclosure of information regarding possible changes due to inflation, deflation, technology, or applicable laws and regulations.

**Footnote Disclosures Related to the Statement of Net Cost**

**Suborganization program costs.**  For some entities, the organizational structure and operations are so complex that supporting schedules should be used to fully display their suborganizations major programs and activities.  Supporting schedules similar to those illustrated below should be included in the notes to the financial statements and present detailed cost and revenue information supporting the summary information presented in the Statement of Net Cost.  

Reporting entity

Supporting schedules by suborganization

For the year ended September 30,

(in dollars/thousands/millions)

SUBORGANIZATION A

Pro-Pro-

gram Ggram H

COSTS:

Intragovernmental costs $    --     $ XXX 

Public:

Transfer payments        XXX       -- 

Administrative costs    XXX       --

Other costs     --XXX

Total program costs    XXX XXX

 SUBORGANIZATION B

Pro-Pro-Pro-

gram Bgram Cgram D

COSTS:

Intragovernmental costs$ XXX$ XXX $     --

Public:

Other costs    XXX        --   XXX 

Administrative costs   XXX     --   --  

Total program costs   XXX      XXX       XXX

Less earned revenues        -- (XXX)( XXX)

Net program costs $XXX$XXX$XXX

SUBORGANIZATION C

Pro-Pro-Other

gram Egram FProgs. 

COSTS:

Intragovernmental costs $     --        $    --              $XXX

Public:

Cost of stewardship land     XXX      --      --

Cost of Federal mission PP&E       --   XXX       --

Other costs       --   XXXXXX

Total program costs   $XXX$XXX$XXX

**Aggregated program information.**  In cases where an agency's Statement of Net Cost displays highly aggregated program information and the program has clearly distinguishable segments, information on the net cost of the segments should be disclosed in the footnotes.  

**Cost of stewardship PP&E.**  The cost of acquiring, constructing, improving, reconstructing, or renovating Federal mission PP&E and heritage assets and the cost of acquiring stewardship land and any costs to prepare stewardship land for its intended use shall be recognized as a cost in the Statement of Net Cost in the period when it is incurred.  These costs shall be separately reported on the face of the Statement of Net Cost or disclosed in the footnotes, depending on the materiality of the amounts and the need to distinguish such amounts from other costs relating to measures of outputs or outcomes of the reporting entity (see SFFAS No. 6).

**Stewardship assets transferred.**  If the cost of heritage assets and stewardship land transferred from other Federal entities or acquired through donation or devise is not known, then the receiving entity shall disclose the fair value.  If the fair value is not known or reasonably estimable, information related to the type and quantity of assets received shall be disclosed (see SFFAS No. 6).

**Deferred maintenance.**  For general PP&E, Federal mission PP&E, heritage assets and stewardship land, the following information related to deferred maintenance shall be disclosed:

Identification of each major class of asset for which maintenance was deferred, and

Method of measuring deferred maintenance for each major class of asset.  See SFFAS No. 6 for detailed guidance on the extent of the disclosures for the Condition Assessment Survey or the Total Life-Cycle Cost Method.  Either method can be used for measuring deferred maintenance.

Management may elect to present stratification of critical and noncritical amounts of maintenance needed to return each major class of asset to its acceptable operating condition.  If management elects to make this disclosure, the disclosure should include management's definition of critical and noncritical maintenance.  See SFFAS No. 6.  

**Exchange revenues.**  Reporting entities that provide goods and services to the public or another government entity should disclose specific information related to their pricing policies and any expected losses under goods made to order.  These disclosures are described in SFFAS No. 7.

**Gross Cost and Earned Revenue by Budget Functional Classification.**  Disclose gross cost and earned revenue by budget functional classification.  Gross cost and earned revenue should be net of  intra-entity transactions (consolidated).  This disclosure may be prepared for the consolidated agencywide financial statements only.

Gross Cost and Earned Revenue by Budget Functional Classification

Functional ClassificationGross CostEarned RevenueNet Cost

A    xxx xxx    xxx   

B    xxxxxx    xxx

C    xxxxxxxxx

Total    xxxxxxxxx

The attached Appendix  is provided to help agencies identify and disclose cost and revenue by budget functional classification (BFC).  It includes: (1)  a list of department codes and associated department names, (2)  a list of BFCs, and (3) for each BFC, a matrix that associates Treasury account symbols with department codes.  The Treasury account symbols in the Appendix are valid for FY 1998 only.  For fiscal years after FY 1998, reporting entities should refer to the Treasury Financial Manual for the appropriate Treasury account symbols.

**Footnote Disclosures Related to the Statement of Changes in Net Position**

**Cleanup cost adjustments.**  The offsetting charge for any cleanup cost liability recognized upon implementation of the standard requiring such recognition shall be shown on the Statement of Changes in Net Position as a prior period adjustment.  The amounts involved shall be disclosed in a note, and to the extent possible, amounts associated with current and prior periods should be identified.  See SFFAS No. 6.

**Footnote Disclosures Related to the Statement of Budgetary Resources**

The following information should be disclosed:

The net amount of budgetary resources obligated for undelivered orders at the end of the period

Available borrowing and contract authority at the end of the period

Repayment requirements, financing sources for repayment, and other terms of borrowing authority used

Adjustments during the reporting period to budgetary resources available at the beginning of the year and an explanation thereof

Existence, purpose, and availability of permanent indefinite appropriations

Information about legal arrangements affecting the use of unobligated balances of budget authority, such as time limits, purpose, and obligation limitations

Explanations of any differences between the information required by SFFAS No. 7 and the amounts described as "actual" in the Budget of the United States Government for that fiscal year, and

The amount of any contributed capital received during the reporting period.

**Footnote Disclosures Related to the Statement of Financing**

Disclose the amount of liabilities not covered by budgetary resources and provide an explanation that includes identification of balance sheet components, when recognized liabilities not covered by budgetary resources do not equal the total financing sources yet to be provided.

**Footnote Disclosures Related to the Statement of Custodial Activity**

**Incidental custodial collections.**  Organizations that collect immaterial custodial revenues that are incidental to their primary mission may disclose the sources and amounts of the  collections and the amounts distributed to others in accompanying footnotes rather than on the face of the statement.

**Non-exchange revenues.**  Entities preparing a statement of custodial activity for non-exchange revenue should disclose the:  (1)  basis of accounting, (2) factors affecting the collectability and timing of taxes and other non-exchange revenues, and (3) cash collections and refunds by tax year and type of tax for the reporting period. These disclosures are described in SFFAS No. 7.

**Footnote Disclosures Not Related to a Specific Statement**

**Dedicated collections.**  A reporting entity****may be responsible for funds financed with dedicated  collections that are held for later use to accomplish the fund's purpose.  Such funds include all funds within the budget classified as "trust funds," those funds within the budget that are classified as "special funds" but that are similar in nature to trust funds, and those funds within and outside the budget that are fiduciary in nature.  The identification of funds that are similar in nature to trust funds is strictly a matter of managerial judgment.

SFFAS No. 7 describes the information related to dedicated collections that shall be disclosed. If more than one reporting entity is responsible for carrying out the program financed with dedicated collections, the entity with the largest share of the activity shall be responsible for reporting all revenues, other financing sources, assets, liabilities and costs of the fund (i.e., the Environmental Protection Agency would be responsible for reporting all activity related to the Hazardous Substance Superfund).

**Required Supplementary Stewardship Information**

The Stewardship objective of Federal financial reporting requires reporting on the Federal Government's accountability over certain resources entrusted to it and certain responsibilities assumed by it that cannot be measured in traditional financial reports.  Organizations reporting on stewardship information should become familiar with the categories being measured and review the suggested formats in SFFAS No. 8.  Because of the unique character of this information, agencies are encouraged to experiment with various narratives, tables and schedules to satisfy the intent of Supplementary Stewardship Reporting.  Information on stewardship definitions, measurement, minimum reporting and implementation guidance is found in SFFAS No. 8.

To achieve the objectives of Supplementary Stewardship Reporting, the stewardship categories have been consolidated into three distinct groups.  Each group is meant to achieve the objectives of stewardship reporting by providing financial and non-financial data so that the unique characteristics of stewardship can be displayed.  In some cases a narrative description using non-financial data presents a better portrayal of accountability and should be the primary disclosure method.  The three major groups are as follows: 

Stewardship PP&E

Stewardship Investments

Stewardship Responsibilities  

**Stewardship PP&E**

Stewardship PP&E is assets whose physical properties resemble those of general PP&E traditionally capitalized in financial statements.  However, due to the nature of these assets, (1) valuation would be difficult and (2) matching costs with specific periods would not be meaningful.  Yet, the Federal Government should be able to demonstrate accountability over these assets by reporting on their existence and condition.  Agencies are encouraged to experiment with reporting formats that display the information required by the standard.  Stewardship PP&E includes:  

Heritage assets, such as Federal monuments and memorials and historically or culturally significant property  

Federal mission, PP&E, such as space exploration and military weapons systems 

Stewardship land, i.e., land not acquired for or in connection with general PP&E                     

**Heritage assets.**  Heritage assets are unique and are generally expected to be preserved indefinitely. These assets shall be reported in terms of physical units rather than cost, fair value, or other monetary values. 

**Federal Mission Property, Plant and Equipment.**Federal mission PP&E is integral to meeting a unique Federal mission and consists of  weapons systems and space exploration equipment.  These assets should be valued and reported using either the total cost or the latest acquisition cost valuation method.  Once values are established, consistent application is required and any change shall be justified.  

**Stewardship Land.**Stewardship land is defined as the solid surface of the earth, excluding natural resources.  These assets shall be reported in terms of physical units rather than cost, fair value, or other monetary values. 

The following table summarizes the minimum reporting required for heritage assets, Federal mission PP&E, and stewardship land.

**STEWARDSHIP PROPERTY PLANT & EQUIPMENT**

INFORMATION REPORTED

HERITAGE ASSETS

FEDERAL MISSION PP&E

STEWARDSHIP LAND

1.Description of Assets

Describe major category 

1. Collectible

2. Noncollectible

Describe major types and values assigned by valuation method

Describe, by principal organization, significant holdings by category of major use

2.Description of acquisitions and withdrawals

Describe methods of acquisition and withdrawal

Describe methods of acquisition and withdrawal

Describe methods of acquisition and withdrawal

3.Condition description

Describe overall condition

Describe overall condition

Describe overall condition

4.Deferred Maintenance

Reference to note on  deferred maintenance, if required

Reference to note on deferred maintenance, if required 

Reference to note on deferred maintenance, if required

5.Accounting for physical items or dollars

Account for physical units:

Beginning Balance

Additions

Withdrawals

Ending Balance

Account for value by major type:

Beginning Value,

Value added (shall agree with amount on the Statement of Net Cost) Value withdrawn

Change in value from revaluations

Ending Value

Account for physical units by major category:

Beginning Balance

Additions

Withdrawals

Ending Balance

**Stewardship Investments**

Stewardship investments are substantial investments made by the Federal Government for the benefit of the nation.  When incurred, they are treated as expenses in determining the net cost of operations.  However, these items merit special treatment so that readers of Federal financial reports know the extent of  investments that are made for long-term benefit.  Such investments should be measured in terms of expenses incurred for: (1)  Federally-financed but not federally-owned physical property (Non-Federal Physical Property); (2)  Certain education and training programs (Human Capital); and (3)  Federally-financed research and development (Research and Development) 

**Non-Federal Physical Property.**Non-Federal physical property investments are expenses included in the calculation of net cost incurred by the Federal Government for the purchase, construction or major renovation of physical property owned by State and local governments.

**Human Capital.**Human capital investments are expenses included in net cost for education and training programs that are intended to increase or maintain national economic productive capacity and that produce outputs and outcomes that provide evidence of maintaining or increasing national productive capacity.  The definition excludes education and training expenses for Federal civilian and military personnel.  

Continued categorization of human capital expenses as investment for stewardship purposes is predicated on demonstrated outputs and outcomes consistent with the intent of the program.  SFFAS  No.8 describes the criteria which shall be met for these expenses to continue to be categorized as stewardship investments.  Outcome and output measures that are used to justify continued treatment of expenses as stewardship investments should be clearly identified in the agency's financial statement, and the relationship of the outcomes and outputs to the stewardship investments should be readily apparent.

**Research and Development.**  Research and development investments are expenses included in the calculation of net costs incurred to support the search for new or refined knowledge and ideas and for the application or use of such knowledge and ideas for the development of new or improved products and processes with the expectation of maintaining or increasing national economic productive capacity or yielding other future benefits.

Continued categorization of research and development expenses as investment for stewardship purposes is predicated on demonstrated outputs and outcomes consistent with the intent of the program.  SFFAS No. 8 describes the criteria which shall be met for these expenses to continue to be categorized as stewardship investments.  Outcome and output measures that are used to justify continued treatment of expenses as stewardship investments should be clearly identified in the

agency's financial statement, and the relationship of the outcomes and outputs to the stewardship investments should be readily apparent.

The following table summarizes the minimum reporting required for stewardship investments.

**STEWARDSHIP INVESTMENTS**

INFORMATION REPORTED

NON-FEDERAL PROPERTY

HUMAN CAPITAL

RESEARCH AND DEVELOPMENT

1. Annual Investment*

Investment made for the current year, including description of Federal property transferred to State and local governments

Investment made for the current year

Investment made for the current year

2. Description of major programs

Description of major programs involving Federal investments, including description of programs or policies under which non-cash assets are transferred to State and local governments

Description of major education and training programs considered Federal investments

Description of major research and development programs

*****For FY 1998, report only stewardship investments made during FY 1998.  For subsequent years, report stewardship investments for each year in which such investments were covered by audit until five years of such data is available.  Beginning in FY 2002, report stewardship investments for 2002 and the preceding four years.

**Risk Assumed Information**

Risk assumed is generally measured by the present value of unpaid expected losses net of associated premiums, based on the risk inherent in the insurance or guarantee coverage in force.

When financial information pursuant to the Financial Accounting Standards Board's (FASB) standards on Federal insurance and guarantee programs conducted by government corporations is incorporated in financial statements of a larger Federal reporting entity, the entity shall report as Required Supplemental Stewardship Information (RSSI) what amounts and periodic change in those amounts would be reported under the "risk assumed" approach referred to in SFFAS No. 5.

**Required Supplementary Information**

**Statement of Budgetary Resources.**  Monitoring of budget execution is at the individual account level.  Accordingly, budgetary information aggregated for purposes of the Statement of Budgetary Resources should be disaggregated for each of the reporting entity's major budget accounts and presented as supplementary information.  For purposes of this presentation, small budget accounts may be aggregated. 

**Statement of Custodial Activity.**  Entities that collect taxes and duties should provide the following supplementary information relating to their potential collections and custodial responsibilities (see SFFAS No. 7):

A discussion of the factors affecting the collectibility of compliance assessments  recognized as taxes receivable,  

If reasonably estimable, claims for refunds that are not yet accrued but are likely to be paid when administrative action is complete,   

The amount of assessments that the entity still has statutory authority to collect at the end of the period, but has no future collection potential and are therefore defined as write-offs, and  

If reasonably estimable, the amounts by which trust funds may be over or under-funded in comparison with requirements of law.  This information should also be presented by recipient entities that are trust funds.

**Segment Information.**Each franchise fund and other intragovernmental support revolving fund that is not separately reported on the entity's principal statements shall report the following supplementary information:

Condensed information about assets, liabilities, and net position showing, as of the reporting date, (1) fund balance, (2) accounts receivable, (3) PP&E, (4) other assets, (5) liabilities due and payable for goods and services received, (6) deferred revenues, (7) other liabilities, and (8) cumulative results of operations.

All franchise funds and other intragovernmental support revolving funds shall report the following supplementary information:

A brief description of the services provided by the fund and the identity of the fund's major customers (major customers are organizations that account for more than 15 percent of the fund's revenues), and

A summary, for the reporting period, by product or line of business of (1) the full cost of goods and services provided, (2) the related exchange revenues, and (3) the excess of costs over exchange revenues.

**Other Accompanying Information**

**Performance Measures.**The performance measures presented in the overview should relate to the programs' purposes and goals, be consistent with measures previously included in budget documents and other materials related to implementation of the GPRA, and linked to the programs presented in the Statement of Net Cost.  The measures in the overview should be limited to the entity's most significant program and financial measures. Additional measures should be presented as "Other Accompanying Information. "  Management has broad discretion in the manner in which performance information is displayed.  Among the options available to management is  a statement format similar to the Statement of Program Performance Measures illustrated in SFFAC No. 2.  Management's display of performance information should include sufficient explanatory information that would help readers understand the significance of the measures, the results, and any deviations from goals or plans.

**Revenue Foregone.**If the entity discloses differences between the prices it charges in exchange transactions and full cost or market price, it should provide an estimate of the amount of revenue forgone and should explain whether, and to what extent, the quantity demanded was assumed to change as a result of a difference in price.

**Tax Burden/Tax Gap.**  Preparers of statements of entities having custodial responsibilities may consider presenting the information described below, and in more detail in SFFAS No. 7, as other accompanying information, if the information is readily available and the preparers believe the information will enhance the usefulness of the statements.

**A perspective on the income tax burden.**  This could take the form of a summary of the latest available information on the income tax and on related income, deductions, exemptions, and credits for individuals by income level and for corporations by value of assets.

**Available information on the size of the tax gap.**  Collecting entities should provide any relevant estimates of the annual tax gap that become available as a result of Federal surveys or studies.

**Tax expenditures related to entity programs.**  Information on tax expenditures relevant to entity performance may be presented but it should be appropriately described, explained and qualified.

**Directed flows of resources related to entity programs.**  Information on directed flows of resources related to an entitys programs may be presented but it should be appropriately described, explained, and qualified.

**Disclosure Checklist**

This disclosure checklist was prepared to assist preparers of Federal financial statements by providing a list of disclosures required by the SFFASs.  It is not a comprehensive or an authoritative list of required disclosures.  The standards and the other provisions of this Bulletin provide that guidance.  Furthermore, it does not address the portion of the standards that provide guidance for the recognition and measurement of information contained in the principal statements and related notes. The checklist begins by listing the SFFAS and their effective dates. It then presents each SFFAS in order, identifies the sub-topic for which disclosure is required, cites the SFFAS paragraph number, refers to the section of this Bulletin that addresses the disclosure  requirement, and describes the category in which the information is to be disclosed .  

These information categories are as follows:

Principal Financial Statements

Footnotes

Required Supplementary Stewardship Reporting

Required Supplementary Information and Other Accompanying Information.

The following abbreviations are used:

SFFAS       - Statement of Federal Financial Accounting Standards

Para No     - Paragraph Number

F&C         - Form and Content

RSSI        - Required Supplementary Stewardship Information

RSI & OAI  - Required Supplementary Information and Other Accompanying Information

B/S         - Balance Sheet

Inst        - Instruction (s)

ORB        - Other Retirement Benefits

PPE         -  Property, Plant, and Equipment

Stmt        - Statement

Fin. Stmt.  - Principal Financial Statement    

**Effective Dates of Federal Financial Accounting Standards**

**Number****Name****Effective Date**

SFFAS No. 1.Accounting for Selected Assets        For fiscal years ending

              and Liabilities                       September 30, 1994 and later

SFFAS No. 2. Accounting for Direct Loans           For fiscal years ending 

              and Loan Guarantees                   September 30, 1994 and later

SFFAS No. 3. Accounting for Inventory and          For fiscal years ending

              Related Property                      September 30, 1994 and later

SFFAS No. 4.  Managerial Cost Accounting            For fiscal years beginning after

             Concepts and Standards                September 30, 1996

SFFAS No. 5. Accounting for Liabilities of         For fiscal years beginning after  

              the Federal Government        September 30, 1996

SFFAS No. 6. Accounting for Property, Plant,       For fiscal years beginning after

              and Equipment                         September 30, 1997 

SFFAS No. 7. Accounting for Revenue and Other    For fiscal years beginning after

              Financing Sources and Concepts        September 30, 1997 

              for Reconciling Budgetary and 

              Financial Accounting

SFFAS No. 8  Supplementary Stewardship             For fiscal years beginning after

ReportingSeptember 30, 1997

**Disclosure Checklist**

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

1

Intragovernmental assets and liabilities

24

B/S

Inst

Report intragovernmental assets and liabilities separately from governmental assets and liabilities 

X

1

Entity and non-entity assets

26

B/S 

Inst

Report in the entity's financial statement both entity assets and non-entity assets under its custody or management 

X

1

Fund balance with Treasury

38

B/S Note

Fund Balances with Treasury 

Disclose any restrictions on future use of unobligated balances 

X

1

Intragovernmental receivables

42

B/S 

Inst

Report intragovernmental receivables (amounts due from Federal entities) separately from receivables from non-Federal entities 

X

1

Receivables

43

B/S  

Inst

Distinguish between entity receivables and non-entity receivables 

X

1

Receivables

52

B/S Note 

Accounts Receivable

Disclose the major categories of receivables by amount and type, the methodology used to estimate the allowance for uncollectible amounts, and the total allowance 

X

1

Interest Receivable

55

B/S Note 

Loans and Loan Guarantees

Disclose accrued interest on uncollectible accounts receivable until it is officially waived by the entity or the related debt is written off 

X

1

Interest Receivable

56

B/S

Inst

Account for and report interest receivable from Federal entities separately from interest receivable from the public 

X

1

Investments in Treasury securities

72

B/S Note 

Investments

Disclose the market value of investments in market-based and marketable Treasury securities 

X

1

Accounts Payable

80

B/S 

Inst  

Disclose accounts payable not covered by budgetary resources 

X

1

Current liabilities

86

B/S 

Inst

Disclose the amount of current liabilities not covered by budgetary resources 

X

2

Guaranteed loans

23

B/S Note

Direct Loans and Loan Guarantees

Disclose the face value of guaranteed loans outstanding and the amount guaranteed 

X

2

Loan modification

56

B/S Note  

Direct Loans and Loan Guarantees

Disclose the nature of any modification of direct loans or loan guarantees, the discount rate used in calculating the modification expense, and the basis for recognizing a gain or loss related to the modification 

X

3

Inventory

27

B/S Note 

Inventory

Report the value of inventory held in reserve for future sale as either (1) a component of the inventory line item on the face of the financial statements with separate disclosure in footnotes or (2) as a separate line item on the face of the financial statements 

X or

X

3

Inventory

28

B/S Note 

Inventory

Disclose the changes in criteria considered by management in identifying inventory held in reserve for future sale 

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Inventory

29

B/S Note 

Inventory

Report the category "excess, obsolete and unserviceable inventory" as either (1) a component of the inventory line item on the face of the financial statements with separate disclosure in footnotes or (2) as a separate line item on the face of the financial statements 

X or

X

3

Inventory

30

B/S Note 

Inventory

Disclose the criteria for identifying excess, obsolete and unserviceable inventory 

X

3

Inventory

35

B/S Note 

Inventory

Disclose the following:

(1) General composition of inventory 

(2) Basis for determining inventory values, including the valuation method and any cost flow assumptions 

(3) Changes from prior year's accounting methods, if any 

(4) Balances for each of the following categories of inventory: inventory held for current sale, inventory held in reserve for future sale, excess, obsolete and unserviceable inventory, and inventory held for repair unless otherwise presented on the financial statements 

(5) Restrictions on the sale of material 

(6) The decision criteria for identifying the category to which inventory is assigned 

(7) Changes in the criteria for identifying the category to which inventory is assigned 

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Operating Materials and Supplies

45

B/S Note 

Inventory

Report the value of operating materials and supplies held in reserve for future use as either (1) a component of the operating materials and supplies line item on the face of the financial statements with separate disclosure in footnotes or (2) a separate line item on the face of the financial statements 

X or

X

3

Operating Materials and Supplies

46

B/S Note 

Inventory

Disclose the criteria for identifying operating materials and supplies held in reserve for future use 

X

3

Operating Materials and Supplies

47

B/S Note 

Inventory

Report the category "excess, obsolete and unserviceable operating materials and supplies" as either (1) a component of the operating materials and supplies line item on the face of the financial statements with separate disclosure in footnotes or (2) a separate line item on the face of the financial statements. Criteria for identifying "excess, obsolete and unserviceable operating materials and supplies" should also be disclosed

X or

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Operating Materials and Supplies

50

B/S Note 

Inventory

Disclose the following:

(1) General composition of operating materials and supplies

(2) Basis for determining operating materials and supplies values, including valuation method and any cost flow assumptions

(3) Changes from prior year's accounting methods, if any

(4) Balances for each of the categories of operating materials and supplies described above

(5) Restrictions on the use of material

(6) Decision criteria for identifying the category to which operating materials and supplies are assigned

(7) Changes in the criteria for identifying the category to which operating materials and supplies are assigned

X

3

Stockpile Materials

55

B/S Note 

Inventory

Disclose those materials authorized to be sold as "stockpile materials held for sale"

X or 

X

3

Stockpile Materials

55

B/S Note 

Inventory

Disclose any difference between the carrying amount of the stockpile materials held for sale and their estimated selling price

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Stockpile Materials

56

B/S Note 

Inventory

Disclose the following:

(1) General composition of stockpile materials

(2) Basis for valuing stockpile materials, including valuation method and any cost flow assumption

(3) Changes from prior year's accounting methods, if any

(4) Restrictions on the use of materials

(5) Balances of stockpile materials in each category (stockpile materials and stockpile materials held for sale)

(6) Decision criteria for categorizing stockpile materials as held for sale

(7) Changes in criteria for categorizing stockpile materials as held for sale

X

3

Seized property

62

B/S Note 

Inventory

Disclose seized property other than monetary instruments

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Seized Property

66

B/S Note 

Inventory

Disclose the following:

(1) Explanation of what constitutes a seizure and a general description of the composition of seized property

(2) Method(s) of valuing seizures

(3) Changes from prior year's accounting methods,  if any

(4) Analysis of change in seized property, including the dollar value and number of seized properties that are: 

 (a) on hand at the beginning of the year

 (b) seized during the year

 (c) disposed of during the year, and 

 (d) on hand at the end of the year as well as known liens or other claims against the property

This information should be presented by type of seized property and method of disposition, where material

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Forfeited Property

78

B/S Note 

Inventory

Disclose the following for forfeited property, including forfeited property that cannot be sold due to legal restrictions:

(1) Composition of forfeited property

(2) Method(s) of valuing forfeited property

(3) Restrictions on the use or disposition of forfeited property

(4) Changes from prior year's accounting methods, if any

(5) Analysis of change in forfeited property providing the dollar value and number of forfeitures that: 

 (a) are on hand at the beginning of the year 

 (b) are made during the year 

 (c) are disposed of during the year and the method of disposition, and 

 (d) are on hand at the end of the year  

This information should be presented by type of property forfeited, where material

(6) If available, an estimate of the value of property or funds to be distributed to Federal, State and local agencies in future reporting periods

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Foreclosed Property

91

B/S Note 

Inventory

Disclose the following:

(1) Valuation basis used for foreclosed property

(2) Changes from prior year's accounting methods, if any

(3) Restrictions on the use/disposal of the property

(4) Balances in the categories described above

(5) Number of properties held and average holding period by type or category

(6) Number of properties for which foreclosure proceedings are in process at the end of the period

X

3

Commodities 

99

B/S Note 

Inventory

Recognize the commodities as assets and report them on the face of the Balance Sheet upon producer's surrender of title to satisfy a nonrecourse loan or upon purchase by the agency

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

3

Commodities

109

B/S Note 

Inventory

General disclosure requirements:

(1) Basis for valuing commodities, including the valuation method and any cost flow assumptions

(2) Changes from prior year's accounting methods, if any

(3) Restrictions on the use, disposal, or sale of commodities

(4) An analysis of change in the dollar value and volume of commodities, including those: 

 (a) on hand at the beginning of the year

 (b) acquired during the year

 (c) disposed of during the year by method of disposition

 (d) on hand at the end of the year

 (e) on hand at year's end and estimated to be donated or transferred during the coming period, and 

 (f) the amount and value of commodities that may****be received as a result of surrender of collateral related to nonrecourse loans outstanding  

The analysis should also show the dollar value and volume of purchase agreement commitments

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para.**

**No.**

**Related**

**F&C**

**Reference**

**Description**

**Fin.**

**Stmt.**

**Footnote**

**RSSI**

**RSI**

**&**

**OAI**

****

4

Full cost

89

Inst for Stmt of Net Costs

Report the full costs of outputs in general purpose financial reports

X

4

Costs not Assigned Programs

92 and 104

Inst for Stmt of Net Costs

Report on the financial statements as costs not assigned to programs high level management and administrative support costs that cannot be assigned to segments and their outputs.   A reporting entity may incur costs that are linked to events other than the production of goods and services.  These non-production costs should not be assigned to outputs but should be assigned to programs, if possible

X

5

Contingent Liability

39

B/S Note 

Contingencies

Report as an estimated contingent liability  a specific amount or a range of amounts.  If some amount within the range is a better estimate than any other amount within the range, that amount is recognized.  If no amount within the range is a better estimate than any other amount, the minimum amount in the range is recognized and the range and a description of the nature of the contingency should be disclosed

X

X

5

Contingent Liability

40

B/S Note 

Contingencies

Disclose a contingent liability if any of the conditions for liability recognition are not met and there is at least a reasonable possibility that a loss or an additional loss may have been incurred

X

5

Contingent Liability

41

B/S Note 

Contingencies

Disclose the nature of the contingency and an estimate of the possible liability, an estimate of the range of the possible liability, or a statement that such an estimate cannot be made

X

5

Pensions

65 and 67

B/S Note 

Pensions and Other Retirement and Other Post Employment Benefits

Use the best available actuarial estimates to calculate the pension expense and liability for financial reports prepared for the three primary Federal pension plans.  The administrative entity should disclose the assumptions used.  Smaller Federal administrative entities, if they use assumptions that differ from all of the primary plans, should explain in a footnote how and why the assumptions differ from one of those plans

X

5

Pensions

68

B/S Note

Pensions and Other Retirement and Other Post- Employment Benefits 

Report assets separately from the pension liability.  Do not report only a net liability.  For investments in  market-based and marketable securities, the market value of the investment should be disclosed

X

5

Pensions

72

B/S Note

Pensions and Other Retirement and Post- Employment Benefits  

The administrative entity shall disclose the individual components for the net pension expense

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

5

Other Retirement Benefits

83

B/S Note

Pensions and Other Retirement and Post- Employment Benefits

Report the following for amounts calculated for financial reports prepared for ORB plans:

(1) General actuarial and economic assumptions that are consistent with those used for pensions and

 (2) A health care cost trend assumption that is consistent with Medicare projections or other authoritative sources appropriate for the population covered by the plan.   The administrative entity should disclose the assumptions used

X

5

Other Retirement Benefits

85

B/S Note Pensions and Other Retirement and Post- Employment Benefits 

Report assets separately from the ORB liability rather than merely reporting the net liability.  For investments in market-based and marketable securities, the market value of the investment should be disclosed

X

X

5

Other Retirement Benefits

88

B/S Note Pensions and Other Retirement and Post- Employment Benefits

The administrative entity shall disclose the individual components for the net ORB expense

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

5

Insurance and Guarantees

106

Inst for

RSSI 

When financial information pursuant to FASB's standards on Federal insurance and guarantee programs conducted by government corporations is incorporated in general purpose financial reports of a larger Federal reporting entity, the entity should report as RSSI what amounts and periodic change in those amounts should be reported under the "risk assumed" approach referred to in this section (see par. 105)

X

5

Insurance and Guarantees

117

 B/S

All Federal reporting entities with whole life insurance programs should follow private sector standards when reporting the liability for future 

policy benefits

X

X

5

Insurance and Guarantee

121

B/S Note 

Insurance Liabilities

Disclose separately in a footnote all components of the liability for future policy benefits of whole life insurance.  Include a description of each amount and an explanation of its projected use and any other potential uses

X

6

General PP&E Implementation  Guidance

44

B/S Note 

General PP&E

Disclose in the period that these standards are implemented, the adjustments, by major class of PP&E, made to general PP&E and accumulated depreciation/amortization

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

6

General PP&E Disclosure Requirements

45

B/S Note

General PP&E

Disclose the following information for General PP&E:

  (1) The cost, associated accumulated depreciation, and book value by major class  

  (2) The estimated useful lives for each major class

  (3) The method(s) of depreciation for each major class

  (4) Capitalization threshold(s), including any changes in threshold(s) during the period, and     

  (5)  Restrictions on the use or convertibility of general PP&E   

X

6

Federal Mission PP&E

53

Inst for Stmt of Net Costs 

Recognize as a cost on the statement of net cost the periodic cost of acquiring, constructing, improving, reconstructing, or renovating Federal mission PP&E.  The cost shall be disclosed as "cost of Federal mission PP&E" on either the face of the Statement of Net Cost or in the footnotes

X

X

6

Federal Mission PP&E

55

B/S Note 

General PP&E

Remove Federal mission PP&E that was previously recognized on the balance sheet as assets and contra assets. The amounts removed should be charged to Net Position.  The amount of the adjustment should be shown as a "prior period adjustment" in the statement of changes of net position.  The amounts removed from the balance sheet should be disclosed in a footnote

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

6

Heritage Assets

61

Inst for Stmt of Net Costs

Recognize as a cost in the period incurred the cost of improving, reconstructing, or renovating heritage assets.  Also, in the event that heritage assets are acquired or constructed, the cost should be recognized as a cost of the period incurred.  These costs should be disclosed as "Cost of Heritage Assets" on either the face of the Statement of Net Cost or in the footnotes.  The cost of heritage assets transferred from other Federal entities should be the book value of the asset recorded on the transferring entity's books.  If the receiving entity does not know the book value, the fair value should be disclosed in notes to the statement of net cost.  If fair value is not estimable, information related to the type and quantity of assets transferred should be disclosed.  No amounts of heritage assets acquired through donation or devise should be recognized in the cost of heritage assets.  The assets' fair value, if known and material, should be disclosed in notes to the statement of net cost in the year received.  If fair value is not known or reasonably estimable, information related to the type and quantity of assets should be disclosed.

X

X

6

Heritage Assets

63

B/S Note 

General PP&E

Remove from the balance sheet heritage assets previously recognized as assets.  The amounts removed should be charged to Net Position of the entity.  The amount of the adjustment should be shown as a "prior period adjustment" in the statement of changes in net position.  The amounts removed from the balance sheet should be disclosed in a footnote

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

6

Stewardship Land

69

Inst for

Stmt of Net Costs

Recognize as a cost in the period incurred the acquisition cost of stewardship land.   The cost shall be disclosed as "cost of stewardship land" on either the face of the Statement of Net Cost or in the footnotes

X

X

6

Stewardship Land

71

Footnote Disclosures for Stmt of Net Costs  

No amounts for stewardship land acquired through donation or devise should be recognized as a cost on the statement of net cost.  Its fair value, if  known and material, should be disclosed in notes to the statement of net cost.  If fair value is not estimable, information related to the type and quantity of assets received should be disclosed in the year received

X

6

Stewardship Land

72

Footnote Disclosures for Stmt of Net Costs

Land may be transferred between Federal entities.  In some cases, land included in general PP&E may be transferred to an entity for use as stewardship land.  In this instance, the cost of stewardship land transferred from another Federal entity should be the book value of the land recorded on the transferring entity's books.  If the receiving entity does not know the book value, the transfer should be disclosed in notes if material.  In other cases, stewardship land may be transferred between Federal entities.  Transfers of stewardship land should be disclosed in the notes if material 

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

6

Stewardship Land

75

B/S Note 

General PP&E

Remove from the balance sheet land previously recognized as an asset.  The amounts removed should be charged to Net Position.  The amount of the adjustment should be shown as a prior period adjustment in the statement of changes in net position.  The amounts removed from the balance sheet should be disclosed in a footnote

X

6

Deferred Maintenance

79

Inst for Stmt of Net Costs

Present on the Statement of Net Cost, a line item for "deferred maintenance" with a note reference in lieu of a dollar amount. No amounts should be recognized for deferred maintenance

X

6

Deferred Maintenance - Disclosure Requirements

80-84

Footnote Disclosures related to Stmt of Net Costs 

Present the following information for all PP&E:

(1) Identification of each major class of asset for which maintenance has been deferred and 

(2) Method of measuring deferred maintenance for each major class of PP&E (Amounts disclosed may be measured using: 

 (a) condition assessment surveys or

 (b) life-cycle cost forecasts)       

X

6

Cleanup cost for General PP&E

105

Footnote Disclosures related to Stmt of Changes in Net Position

The offsetting charge for any liability recognized upon implementation should be made to Net Position.  The amount of the adjustment should be shown as a "prior period adjustment" in any  Statement of  Changes in Net Position that may be required.  No amounts should****be recognized as expense in the period of implementation.  The amounts involved should be disclosed and, to the extent possible, the amount associated with current and prior periods should be noted

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

6

Cleanup Disclosure Requirements

107-111

B/S Note 

Other Liabilities

Disclose the following:

(1) Sources of cleanup requirements 

(2) Method for assigning estimated total cleanup costs to current operating periods 

(3) For cleanup costs associated with general PP&E, the unrecognized portion of estimated total cleanup costs

(4)  Material changes in total estimated cleanup costs due to changes in laws, technology, or plans, and the portion of the change in estimate that relates to prior period operations

(5) The nature of estimates and the disclosure of information regarding possible changes due to inflation, deflation, technology, or applicable laws and regulations 

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Exchange Revenue

46 & 47

Footnote Disclosures related to Stmt of Net Cost 

Each reporting entity that provides goods or services to the public or another government entity should disclose the following:

(1) Differences in pricing policy from the full cost or market pricing guidance in OMB Circular A-25, "User Charges," for exchange transactions with the public

(2) Exchange transactions with the public in which prices are set by law or executive order and are not based on full cost or on market price

(3) The nature of intragovernmental exchange transactions in which the entity provides goods or services at a price less than the full cost or does not charge a price at all, with explanations of the amount and reason for disparities between the billing and the full cost

(4) The full amount of the expected loss when specific goods are made to order under a contract, or specific services are produced to order under a contract, and a loss on the contract is probable and measurable  

When disclosing (1) and (2), cautionary language should be added to the effect that higher prices based on full cost or market price might reduce the quantity of goods or services demanded and, therefore, the difference between revenue received and such higher prices does not necessarily provide an indication of revenue foregone.  If a reasonable estimate is practicable to make, the entity should provide as other accompanying information the amount of revenue foregone and should explain whether, and to what extent, the quantity demanded was assumed to change as a result of a change in price.

X

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Non-Exchange Revenue

64 to 73

Footnote Disclosures related to Stmt of Custodial Activity

Instructions for RSI & OAI 

A summary of required disclosures follow:

(1) Basis of accounting

(2) Entities that collect taxes should disclose: 

  (a) accounts receivable 

  (b) material revenue-related transactions 

  (c) cumulative cash collections and refunds by  tax year and type of tax  

(3) If trust fund revenues are not recorded in accordance with applicable law, both the collecting and recipient entities should disclose the reasons

Entities that collect taxes and duties should provide the following supplementary information relating to their potential revenue and custodial responsibilities: 

(1) The estimated realizable value, as of the end of the reporting period, of compliance assessments and, if reasonably estimable, pre-assessment work in process

(2) If reasonably estimable, other claims for refunds that are not yet accrued but are likely to be paid when administrative actions are completed     (unasserted claims for  refunds should be provided separately)

(3) The amount of assessments that the entity still has statutory authority to collect at the end of the period but that have been written off and thus excluded from accounts receivable           

                                                             X 

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Non-Exchange Revenue

64 to 73 Con-

tinued

(4) If reasonably estimable, the amounts by which trust funds may be over - or under-funded in comparison with the requirements of  law   

Recipient entities that are trust funds should provide the same information as required for collecting entities in (4) above

Other accompanying information:

(1) A perspective on the income tax burden

(2) Available information on the size of the tax gap

(3) Tax expenditures related to entity programs

(4) Directed flows of resources related to entity programs.

X       

X          

X

7

Budgetary Information

78

Stmt of Budgetary Resources

The reporting entity should provide information on budgetary resources for each of its major budget accounts as supplementary information.  Small budget accounts may be aggregated

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Budgetary Information

83

Footnote Disclosures Related to the Stmt of Budgetary Resources

Disclose the following information about the status of budgetary resources:

(1) The net amount of budgetary resources obligated for undelivered orders at the end of the period

(2) Available borrowing and contract authority  at the end of the period 

(3) Repayment requirements, financing sources for repayment, and other terms of borrowing authority used

(4) Material adjustments during the reporting period to budgetary resources available at the beginning of the year and an explanation thereof

(5) Existence, purpose, and availability of permanent indefinite appropriations

(6) Information about legal arrangements affecting the use of unobligated balances of budget authority

(7) Explanations of any material differences between the information required by paragraph 77 and the amounts described as "actual" in the Budget of the United States Government

(8) The amount, and an explanation that includes identification of balance sheet components, when recognized unfunded liabilities do not equal the total financing sources yet to be provided

(9) The amount of any capital infusion received during the reporting period    

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Dedicated Collections

84 

Footnote  Disclosures Not Related to a Specific Stmt 

Provide separate financial information about dedicated collections if they are material either to the reporting entity or to the beneficiaries or contributors.  The separate information may be reported on the face of the entity's general purpose financial statements, or the information may  be disclosed in the notes to the financial statements

X or

X

7

Dedicated Collections

85

Footnote Disclosures Not Related to a Specific  Stmt 

Report the following information for individual funds that account for dedicated collections: 

(1) a description of each funds purpose, how the administrative entity accounts for and reports the fund, and its authority to use those collections

(2) The sources of revenue or other financing for the period and an explanation of the extent to which they are inflows of resources to the government or the result of intragovernmental flows

(3) Condensed information about assets and liabilities showing investments in Treasury securities, other assets, liabilities due and payable to beneficiaries, other liabilities, and fund balance 

(4) Condensed information on net cost and changes to fund balance showing revenues by type, program expenses, other expenses, other financing sources, and other changes in fund balance

(5) Any revenues, other financing sources, or cost attributable to the fund under accounting standards, but not legally allowable as credits or charges to the fund

X

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

7

Dedicated Collections

86

Footnote Disclosures Not Related to a Specific Stmt 

The law****may require the accounting for a fund to be done in a particular way.  The disclosures called for by paragraph 85 of SFFAS No. 5 are required if the funds recognition requirements, as determined by law, are contrary to applicable accounting standards with respect to certain revenue, other financing sources, or costs  

X

7

Dedicated  Collections

87

Footnote Disclosures Not Related to a Specific Stmt 

Most dedicated collections are included in the financial statements of the entity carrying out the program and responsible for administration of the fund.  However, this may not be the case where collections are outside the budget or are not otherwise included in the reporting entity under the concepts of Entity and Display.  In either case, the information (revenues, other financing sources, assets, liabilities, and costs of the fund) is required to be disclosed

X

8

Heritage Assets

50

Instructions for Stewardship Reporting

Report the following for Heritage Assets: 

(1) Description of each major category

(2) The number of physical units added and withdrawn from the records during the year and the end-of-year number of physical units for each type of heritage asset 

(3) Description of the methods of acquisition and withdrawal of heritage assets

(4) Condition of the assets unless it is already reported in a note to the financial statements in which case a reference to the note should suffice 

(5) A reference to a note to the financial statements if deferred maintenance is reported for the assets 

X

8

Federal Mission PP&E

68

Instructions for Stewardship Reporting

Report the following for Federal Mission PP&E: 

(1) A description of major types of Federal mission PP&E by the holding entity and the values assigned under the valuation method used 

(2) The value of Federal mission PP&E added and withdrawn during the year, the changes in value resulting from revaluations of assets held to latest acquisition cost, and end-of-year value for each major type of property using the entity's valuation method

(3) A description of the methods of acquisition and withdrawal of Federal mission PP&E at the major program or category level           

(4) Condition of the assets unless it is already reported in a note to the financial statements; if this is the case, a reference to the note should suffice

(5) A reference to the applicable note to the financial statements if deferred maintenance is reported for the assets   

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

8

Stewardship Land

81

Instructions for Stewardship Reporting

Report the following for Stewardship Land: 

(1) The number of physical units of stewardship land by category of major use, broken down within the category by principal holding agency 

(2) Where parcels have more than one use, the predominant use should be considered the major use.  Where there is no predominant use, a description of the multiple uses should be presented

(3) Acquisitions, withdrawals, and ending balance should be shown by major categories of use and methods of acquisition and withdrawal identified

(4) The condition of the stewardship land, unless it is already reported in a note to the financial statement; if this is the case, a reference to the note should suffice

(5) A reference to the note to the financial statements if deferred maintenance is reported for the  assets

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

8

Non-Federal Physical Property

88

Instructions for Stewardship Reporting

Report the following for Non-Federal Physical Property:

(1) Annual investment, including a description of federally-owned physical property transferred to State and local governments.  Reporting should be for the year ended as well as for each of the 4 years preceding

(2) Reporting should be at a meaningful category or level

(3) If expense data are unavailable, outlay data are permissible for a transition period.  If neither expense nor outlay data are available for the 5 years, entities need only report expense data for the current year. At the end of 5 years, entities are to report expense data 

(4) Reporting should include a description of major programs involving Federal investments in non-Federal physical property including a description of programs or policies under which non-cash assets are transferred to State and local governments   

X

**SFFAS**

**Sub-topic**

**SFFAS**

**Para. No.**

**Related F&C Reference**

**Description**

**Fin. Stmt.**

**Footnote**

**RSSI**

**RSI & OAI**

8

Human Capital

95

Instructions for Stewardship  Reporting

Report the following for Human Capital:

(1) Annual investment made in the year ended as well as in each of the 4 preceding years

(2) If expense data are unavailable, outlay data are permissible for a transition period.  If neither expense nor outlay data are available for the 5 years, entities need only report expense data for the current year.  At the end of 5 years, entities should report expense data

(3) A narrative description of major education and training programs considered Federal investments in human capital should be included

X

8

Research and Development

101

Instructions for Stewardship Reporting

Report the following for Research and Development:

(1) Annual investment made in the year ended as well as in each of the 4 preceding years

(2) If expense data are unavailable, outlay data are permissible.  If neither expense nor outlay data are available, outlay data  are permissible for a transition period.  If neither expense nor outlay data are available for the 5 years, entities need only report expense data for the current year.  At the end of 5 years, entities should report expense data

(3) A narrative description of major research and development programs should be included

X

APPENDIX

CODE - DEPARTMENTCODE- DEPARTMENT

00 - Unknown54 - Federal Labor Relations Authority

03 - Library of Congress55 - Advisory Commission on Intergovernmental 

04 - Government Printing OfficeRelations

05 - General Accounting Office56 - Central Intelligence Agency

08 - Congressional Budget Office57 - Department of the Air Force

09 - Other Legislative Agencies58 - Federal Emergency Management Agency

10 - The Judiciary59 - National Foundation on the Arts and

11 - Executive Office of the Presidentthe Humanities

12 - Department of Agriculture60 - Railroad Retirement Board

13 - Department of Commerce61 - Consumer Product Safety Commission

14 - Department of Interior62 - Office of Special Counsel

15  - Department of Justice63 - National Labor Relations Board

16 - Department of Labor64 - Tennessee Valley Authority

17 - Department of the Navy65 - Federal Maritime Commission

18 - United States Postal Service67 - United States Information Agency

19 - Department of State68 - Environmental Protection Agency

20 - Department of the Treasury69 - Department of Transportation

21 - Department of the Army71 - Overseas Private Investment Corporation

22 - Resolution Trust Corporation72 - Agency for International Development

23 - United States Tax Court73 - Small Business Administration

24 - Office of Personnel Management74 - American Battle Monuments Commission

25 - National Credit Union Administration75 - Department of Health and Human Services

26 - Federal Thrift Investment Board76 - Independent Agencies

27 - Federal Communication Commission78 - Farm Credit

28 - Social Security Administration80 - National Aeronautics and Space Administration

29 - Federal Trade Commission83 - Export-Import Bank of the United States

31 - U.S. Nuclear Regulatory Commission84 - Armed Services Retirement Home

33 - Smithsonian Institution86 - Department of Housing and Urban

34 - International Trade CommissionDevelopment

36 - Department of Veterans Affairs88 - National Archives and Records Administration

41 - Merit Systems Protection Board89 - Department of Energy

42 - Pennsylvania Avenue Development90 - Selective Service System

Corporation91 - Department of Education

45 - U.S. Equal Employment Opportunity93 - Federal Mediation and Conciliation Service

Commission94 - Arms Control and Disarmament Agency

46 - Appalachian Regional Commission95 - Independent Agencies

47 - General Services Administration96 - U.S. Army Corps of Engineers

48 - Independent Agencies97 - Office of the Secretary of Defense -

49 - National Science FoundationDefense Agencies

50 - Securities and Exchange Commission

51 - Federal Deposit Insurance Corporation

BUDGET FUNCTIONAL CLASSIFICATIONS

050 - National Defense

150 - International Affairs

250 - General Science, Space and Technology

270 - Energy

300 - Natural Resources and Environment

350 - Agriculture

370- Commerce and Housing Credit

400 - Transportation

450 - Community and Regional Development

500- Educational, Training, Employment, and Social Services

550 - Health

570 - Medicare

600 - Income Security

650 - Social Security

700 - Veterans Benefits and Services

750 - Administration of Justice

800 - General Government

900 - Net Interest 

# BUDGET FUNCTIONAL CLASSIFICATIONS

**National Defense - 050**

**Department Codes**

**12**

**15**

**17**

**21**

**56**

**57**

**58**

**69**

**89**

**90**

**95**

**96**

**97**

**97**

**97**

****

**Treasury**

**Account Symbols**

2034

0105

0017

0021

3400

0001

0100

0103

0228

0400

0400

2020

0040

0510

4965

8116

0380

0702

0704

0101

0242

0233

3900

0097

0535

5187

0703

1705

3010

0510

0240

0100

0706

5188

1105

2010

3020

1205

0242

0101

0790

5189

1106

2020

3080

1710

0243

0102

0800

5193

1107

2031

3300

1711

0244

0103

0801

5195

1108

2032

3400

1752

5231

0104

0803

5196

1109

2033

3500

2050

0105

0804

7060

1205

2034

3600

2085

0106

0805

8164

1235

2035

3700

3300

0107

810

8165

1236

2040

3730

3400

0108

0819

8168

1319

2050

3740

3730

0110

0827

8311

1405

2060

3830

3830

0115

0828

8335

1453

2065

3840

0116

0829

9098

1506

2070

3850

0130

0831

1507

2080

4930

0131

0832

1508

2085

8418

0132

0834

1611

2086

8928

0133

0836

1804

4094

0134

0838

1806

4528

0300

0839

1810

5098

0350

1105

3980

5194

0360

3910

4557

5286

0370

4080

4930

8064

0390

4090

5095

8174

0400

4093

5185

8238

0450

4116

8008

8927

0460

4166

8423

0491

4167

8716

0492

4179

8723

0493

4555

8730

0494

4930

8733

0495

4931

**International Affairs - 150**

**Department Codes**

**3**

**11**

**12**

**15**

**16**

**19**

**19**

**20**

**21**

**34**

**48**

**49**

**67**

**69**

**71**

**72**

**72**

**75**

**83**

**89**

**94**

**95**

**96**

**97**

****

**Treasury Accout Symbols**

1010

0003

2273

0100

1010

0000

1124

4444

1037

0100

8338

0056

0113

8054

0100

0113

4343

6875

0100

0113

0100

1145

0204

1080

1037

0005

2274

0104

1021

0040

1125

1080

1014

0201

8264

4030

0400

4344

8250

4027

1005

1146

1081

1093

0011

2277

1022

0046

1126

1081

1021

0202

8265

4074

0401

4345

4028

1014

1300

1082

0043

2278

1035

0100

1143

1082

0203

8371

4075

0402

4590

4161

1021

3700

1084

0050

2279

1037

0107

1151

0204

8502

4184

0535

5318

4162

8025

0072

4049

1093

0113

4107

0206

8632

6000

1000

8502

8268

0073

4078

1500

0114

4519

0208

1005

8824

8276

0074

4143

0118

5151

0209

1007

0076

5332

0120

5177

0210

1010

0077

5333

0201

8821

0211

1012

0078

0520

8822

0212

1013

0079

0522

0300

1014

0082

0523

0301

1021

0084

0524

0400

1023

0086

0525

0535

1024

0088

0529

1014

1025

0089

0535

1035

1032

0091

0538

8166

1035

0100

0540

8167

1036

1001

0545

8271

1037

1008

0600

8272

1038

1080

0601

8276

1040

1084

1000

1093

3100

1005

1095

4116

1010

1500

4121

1021

4103

4122

1022

4119

4174

1032

4137

8242

1037

4175

8243

1071

4336

8245

1075

4340

8246

1091

4341

1093

4342

**General Science, Space and Technology ‐ 250**

**Deparment Codes**

**49**

**80**

**89**

****

**Treasury Account Symbol**s

0000

0103

0222

0100

0105

3880

0106

0107

0150

0108

0180

0109

0300

0110

0550

0111

0551

0112

1099

8980

8960

9000

**Energy ‐ 270**

**Department Codes**

**12**

**20**

**31**

**48**

**64**

**86**

**88**

**89**

**95**

**96**

****

**Treasury Account Symbols**

0215

0112

0200

0500

4110

0224

0114

5227

4054

0224

1230

0114

0300

0700

0206

5228

4045

1232

5280

0212

5229

3100

0213

5230

3103

0214

5289

3104

0215

5649

4142

0216

5653

4208

0217

8575

4230

0218

8576

5000

0219

0224

0226

0234

0235

0236

0302

0303

0304

0305

0894

1424

2242

2245

2249

4045

4180

4452

4563

5068

5069

5178

5180

5226

**Natural Resources and Environment -300**

**Department Codes**

**12**

**12**

**12**

**13**

**14**

**14**

**14**

**14**

**14**

**16**

**19**

**21**

**57**

**58**

**68**

**69**

**75**

**95**

**96**

****

**Treasury Account Symbols**

0174

3319

8034

1450

0100

1110

5016

5132

8154

8145

1069

1105

5095

8145

0100

0230

8145

2200

1039

0200

3320

8046

1452

0101

1116

5017

5133

8216

1078

5095

0103

1036

2300

1105

0500

3336

8083

1458

0102

1118

5018

5134

8287

1082

5285

8145

1039

2600

3112

0683

3337

8203

4313

0103

1119

5020

5137

8356

1087

1103

2602

3121

1000

3800

8210

4316

0104

1120

5029

5138

8369

1106

8298

3122

1010

4605

8145

0105

1121

5032

5140

8370

1110

3123

1066

5000

0105

1125

5033

5143

8562

1116

3124

1069

5004

0105

1132

5035

5150

8565

5018

3125

1072

5005

0105

1141

5038

5157

9000

8185

3126

1080

5008

0107

1145

5043

5165

8312

4902

1100

5010

0119

1165

5044

5169

8314

5066

1103

5015

0120

1611

5045

5173

8349

5125

1104

5072

0500

1612

5048

5174

8145

1105

5168

0501

1618

5049

5198

8333

1106

5202

0535

1641

5050

5199

8861

1107

5204

0667

1643

5053

5241

8862

1108

5206

0684

1650

5055

5244

8863

1110

5207

0685

1692

5056

5252

8868

1111

5208

0787

1699

5057

5413

1114

5212

0804

1801

5058

5656

1115

5214

0959

1917

5059

5662

1116

5215

1031

2701

5060

5663

1117

5216

1036

4053

5063

5666

1125

5217

1038

4079

5064

5667

1127

5218

1039

4081

5065

5884

1400

5219

1042

4229

5067

5896

1600

5220

1043

4523

5076

5898

2045

5223

1046

4524

5092

8037

2067

5224

1082

4525

5103

8052

2268

5268

1101

4547

5108

8069

2701

5896

1105

4556

5109

8070

3315

6000

1106

5003

5110

8083

3318

8028

1109

5015

5129

8151

**Agriculture ‐ 350**

**Department Codes**

**12**

**12**

**12**

**48**

**78**

****

**Treasury Account Symbols**

0005

1400

4050

0057

4131

0012

1401

4085

4132

0014

1404

4140

4136

0115

1500

4144

0116

1501

4177

0117

1600

4212

0118

1601

4213

0119

1701

4336

0120

1801

4337

0121

1981

4338

0122

2086

4542

0123

2100

4609

0124

2300

5000

0125

2400

5070

0126

2500

5161

0127

2501

5205

0128

2600

5221

0129

2701

5410

0130

2707

6000

0150

2800

8015

0160

2900

8044

0170

3000

8101

0300

3200

8137

0500

3300

8203

0502

3314

8214

0503

3318

8218

0600

3320

8223

0601

3336

8225

0706

3501

8226

0900

3505

8227

1080

3635

8232

1140

3701

8412

1336

3800

**Commerce and Housing Credit ‐ 370**

**Department Codes**

**3**

**9**

**12**

**13**

**13**

**18**

**19**

**20**

**22**

**25**

**27**

**29**

**47**

**48**

**50**

**51**

**73**

**76**

**86**

**95**

****

**Treasury Account Symbols**

0102

0310

2071

0120

5124

1001

5116

4108

1500

4056

0100

0100

4549

0960

0100

4064

0100

0800

0183

3750

5175

2080

0126

5139

1004

5121

8413

4055

4468

0300

2900

4065

0200

8095

0186

4039

2081

0160

8501

4020

4472

3800

4066

1154

0200

5026

4141

0201

4133

4067

4147

0223

9514

4214

0300

5000

4148

4016

4215

0401

5183

4149

4070

4216

0450

6000

4154

4072

6000

0500

4156

4077

0515

8466

4105

0525

4115

0550

4238

0700

4240

1006

4242

1100

4587

1250

5270

1456

5271

1457

5301

1459

1500

1805

4295

4314

4323

4324

4417

4511

4512

4564

4650

5119

5120

5122

5123

**Transportation ‐ 400**

**Department Codes**

**12**

**14**

**65**

**69**

**69**

**69**

**69**

**69**

**69**

**69**

**80**

**95**

**97**

****

8029

0592

0100

0000

0521

0567

0717

4089

8020

8378

0113

0310

1301

8083

0102

0522

0568

0720

4120

8026

8380

0311

8215

0104

0524

0569

0722

4164

8029

8381

4061

0117

0525

0570

0723

4183

8048

8382

4073

0118

0526

0571

0725

4186

8049

8386

8969

0119

0527

0572

0726

4200

8057

8390

0122

0528

0573

0730

4249

8065

8402

**Treasury Account Symbols**

0123

0529

0574

0745

4301

8066

8420

0124

0530

0575

0747

4302

8076

8428

0130

0532

0582

0750

4303

8081

8503

0142

0533

0583

0755

4304

8082

8533

0150

0534

0584

1119

4411

8083

8547

0155

0535

0585

1120

4420

8087

8548

0200

0536

0586

1121

4422

8102

8552

0201

0537

0587

1122

4520

8103

0240

0540

0588

1123

4522

8104

0241

0543

0590

1124

4535

8106

0242

0546

0592

1127

4562

8107

0243

0549

0593

1128

4743

8108

0244

0551

0594

1129

5000

8120

0247

0552

0595

1136

5172

8121

0301

0553

0596

1137

5282

8147

0305

0555

0597

1301

6000

8149

0501

0556

0598

1303

6050

8191

0502

0557

0650

1334

6875

8215

0503

0560

0651

1399

8001

8304

0505

0561

0700

1708

8002

8350

0506

0562

0702

1709

8009

8353

0507

0563

0703

1750

8014

8363

0516

0564

0704

1751

8016

8374

0518

0565

0707

2500

8017

8375

0519

0566

0714

3800

8019

8376

**Community and Regional Development ‐ 450**

**Department Codes**

**12**

**12**

**13**

**14**

**16**

**20**

**42**

**46**

**48**

**58**

**69**

**73**

**75**

**86**

**89**

**91**

**95**

**96**

****

**Treasury Account Symbols**

0200

4231

0125

0200

2050

1881

0100

0200

1950

0104

0200

1152

0200

0108

0200

0200

2500

0200

1231

4233

0128

2100

4088

0102

8321

0105

2051

4150

0162

2050

1900

5000

2050

2204

4084

0300

4153

0170

2301

1901

8139

4406

2301

8112

4232

0187

1902

2303

4234

0189

1903

2305

4235

0198

1905

2368

4236

0200

1951

2369

4243

0220

1952

2623

8200

0222

1980

2627

8244

4015

1982

2628

4096

2001

2635

4097

2003

4409

4586

2046

4410

8093

2050

4415

2065

4416

2066

5051

2069

5130

3105

5166

3108

5197

3316

8060

3400

8176

4155

8327

4176

8365

4202

8366

4210

8368

4218

8563

4219

4223

4225

4226

4227

4228

**Education, Training, Employment, and Social Services ‐ 500**

**Department Codes**

**3**

**13**

**14**

**16**

**20**

**33**

**44**

**47**

**48**

**59**

**63**

**75**

**76**

**80**

**86**

**91**

**91**

**93**

**95**

****

**Treasury Account Symbols**

0101

0527

0174

0104

0151

0100

0103

0133

0400

0100

0100

0137

8187

8550

0156

0101

4252

0100

0103

0141

0551

1509

0105

2900

0102

8981

2950

0200

0142

8978

0102

4253

0600

0146

0552

1515

0106

0129

0300

1504

0104

8257

2000

3900

1550

0165

0132

8040

1505

0200

8258

2400

5075

1552

0172

0133

8050

1508

0201

8324

2650

8022

0174

0302

8080

1509

0210

2700

8031

0175

0303

1512

0220

2701

8032

0200

0400

1534

0230

2720

8208

0400

8190

1536

0231

2721

8833

1505

9560

1545

0240

3500

9566

1509

4552

0241

3800

4601

0242

8077

8131

0243

8078

8289

0300

8267

0301

8281

0400

8282

0500

8296

0600

8615

0601

8981

0602

0603

0800

0900

1000

1021

1100

1300

1500

1700

1901

4248

4250

4251

**Health ‐ 550**

**Department Codes**

**12**

**16**

**24**

**61**

**75**

**75**

**75**

**95**

****

**Treasury Account Symbols**

1807

0400

0206

0100

0008

0888

5146

2100

3700

1200

8440

0140

0889

5148

2800

3800

8445

8445

0200

0890

8073

3400

0320

0891

8175

0340

0892

8247

0350

0893

0365

0894

0379

0895

0390

0943

0391

1060

0511

1101

0512

1102

0565

1104

0566

1300

0600

1312

0601

1361

0603

1362

0807

1435

0819

1700

0838

3903

0843

3921

0844

3966

0846

4304

0848

4305

0849

4306

0851

4307

0862

4309

0872

4420

0873

4430

0884

4503

0885

4552

0886

4554

0887

5071

**Medicare ‐ 570**

**Department Code**

**75**

****

**Treasury Account Symbols**

0580

8004

8005

8393

**Income Security ‐ 600**

**Department Codes**

3

11

12

13

16

19

20

24

28

48

51

58

60

67

72

75

84

86

97

**Treasury Account Symbols**

8339

8345

0137

8344

0178

8186

1810

0500

0406

0020

1500

0103

0110

8341

8342

0120

8522

0129

8097

1953

0179

8340

8135

0409

0030

0111

0122

0143

2002

0326

8424

0113

0128

0148

2004

0327

8010

0140

0163

2006

1500

8011

1500

0164

2009

1521

8012

1501

0178

2064

1700

8018

1502

0181

2070

4204

8051

1503

0188

3502

5155

8236

1511

0192

3503

8042

8237

1515

0195

3505

8130

1520

0196

3506

8134

1550

0197

3507

8144

1552

0204

3508

1553

0205

3510

0206

3512

0218

3539

0219

5209

0221

0308

0310

0311

0312

0316

4041

4042

4043

4044

4058

4071

4098

4104

4588

**Social Security ‐ 650**

**Department Code**

**28**

****

**Treasury Account Symbols**

0400

0404

8006

8007

8704

**Veterans Benefits and Services ‐ 700**

**Department Codes**

**20**

**21**

**36**

**36**

**74**

**95**

**97**

****

**Treasury Account Symbols**

0501

1805

0102

4112

0100

0300

8098

0103

4113

0101

0869

0110

4118

8569

5000

0111

4125

5113

0120

4126

8290

0129

4127

8293

0137

4128

0144

4129

0151

4130

0152

4138

0160

4537

0161

4538

0163

4539

0170

5014

0181

8126

0183

8128

0200

8129

1024

8132

1025

8133

1114

8150

1118

8180

1119

8455

1120

4009

4010

4012

4013

4014

4018

4023

4024

4025

4048

**Administration of Justice ‐ 750**

**Department Codes**

**11**

**15**

**15**

**20**

**45**

**48**

**75**

**86**

**91**

**95**

****

**Treasury Account Symbols**

8607

0128

4500

0104

0100

0052

0135

0144

0700

0100

0129

4526

0105

4019

0950

5041

1400

1900

0130

5041

0117

1090

8605

3200

0200

5042

0173

8606

0311

5073

0602

0319

5086

0603

0322

5087

0604

0323

5088

0607

0324

5089

0608

0327

5094

0609

0328

5126

1000

0332

5131

1003

0334

5450

1407

0339

5451

1408

0401

6000

1409

0403

8393

5693

0404

8408

5694

0405

8500

5695

0500

8585

5697

0930

8586

8360

1003

8591

8526

1004

8593

8527

1010

8594

8528

1020

8595

8529

1060

8596

8531

1061

8600

8534

1100

8602

8789

1101

8603

8870

1217

8608

1218

1219

3800

3845

**General Government ‐ 800**

**Department Codes**

**3**

**4**

**5**

**8**

**9**

**11**

**12**

**13**

**14**

**15**

**16**

**19**

**20**

**24**

**29**

**31**

****

**Treasury Account Symbols**

0127

0201

0107

0100

0110

0001

9921

4542

0118

0329

0535

4542

0101

0100

4542

1093

0203

0700

0020

0412

4542

4542

0106

0200

4542

4505

1050

0037

0414

0108

0400

9000

1450

0038

0415

0110

4571

1600

0061

0416

0115

8094

0109

0418

0116

8270

0110

1114

0137

8275

0210

1691

0155

8300

0211

4542

0171

0300

5091

0176

0400

0177

1070

0560

1073

0562

1453

0911

1454

0912

1457

0913

1900

0919

2000

1706

2200

1710

2600

1801

2700

4159

3963

4413

5001

4501

8240

4502

8241

4521

4560

4561

5081

5407

5432

5687

5737

8532

8790

**General Government ‐ 800** (continued)

**Department Codes**

**41**

**47**

**48**

**54**

**55**

**58**

**62**

**67**

**69**

**75**

**76**

**86**

**88**

**89**

**95**

**96**

**97**

****

**Treasury Account Symbols**

0100

0105

0961

0100

0100

4188

0100

1010

0505

4542

0054

4542

0300

4542

0650

4542

4542

5000

0107

1001

8155

1037

0535

0600

0301

5105

1000

0108

1100

4542

0700

8127

1050

0110

1500

8092

8436

1100

0114

1800

1600

0116

2101

2150

0118

2450

2151

0533

2350

0535

3300

0900

5000

4530

8279

4540

8294

4542

4548

5250

5254

8198

**Interest ‐ 900**

**Department Codes**

**20**

**21**

**75**

****

**Treasury Account Symbols**

0550

8063

8248

1850

8249

1851

8253

1852

8254

1860

8888

1877

8889

8902

**TECHNICAL AMENDMENTS**

**TO**

**OMB BULLETIN NO. 97-01,**

**FORM AND CONTENT OF**

**AGENCY FINANCIAL STATEMENTS**

**TABLE OF CONTENTS**

REQUIRED SUPPLEMENTARY INFORMATION**3**

Deferred Maintenance**3**

Intra-governmental Amounts**3**

Intra-governmental Assets**5**

Intra-governmental Liabilities**6**

Intra-governmental Earned Revenues and Related Costs**7**

Intra-governmental Non-exchange Revenues**7**

INSTRUCTIONS FOR THE BALANCE SHEET**8**

Other Assets**8**

Environmental and Disposal Costs**8**

Benefits Due and Payable**8**

Other Liabilities**8**

Commitments and Contingencies**9**

INSTRUCTIONS FOR OPTIONAL BALANCE SHEET**10**

Entity and Non-entity Assets**10**

Negative Subsidies and Downward Re-Estimates of Subsidy**10**

Liabilities Covered and Not Covered by Budgetary Resources**10**

Federal Employee and Veterans= Benefits**10**

OPTIONAL BALANCE SHEET FORMAT**11**

NOTES TO OPTIONAL BALANCE SHEET**13**

Non-entity Assets**13**

Fund Balance with Treasury**14**

Cash, Foreign Currency and Other Monetary Assets**15**

Accounts Receivable**16**

Other Assets**16**

Liabilities Not Covered by Budgetary Resources**17**

Other Liabilities**18**

Federal Employee and Veterans= Benefits**19**

INSTRUCTIONS FOR THE STATEMENT OF NET COST

Footnote Disclosure Related to the Statement of Net Cost**20**

Gross Cost and Earned Revenue by Budget Functional Classification**20**

INSTRUCTIONS FOR THE STATEMENTS OF BUDGETARY RESOURCES

AND FINANCING**21**

**REQUIRED SUPPLEMENTARY INFORMATION**

**Deferred Maintenance.**  Deferred maintenance is maintenance that was not performed when it should have been or was scheduled to be performed and that is delayed until a future period.  SFFAS No. 14, *Amendments to Deferred Maintenance Reporting*, modifies the presentation of deferred maintenance information in the Annual Financial Statement.  Before amendment, this information would have been presented in association with the statement of net cost.  As amended, the standards require that deferred maintenance information be included as required supplementary information rather than as a note disclosure.  Also, the line item for Adeferred maintenance@ would no longer be required on the statement of net cost with a reference to the note disclosure.

For general property, plant, and equipment (PP&E), national defense PP&E, heritage assets, and stewardship land, the following information related to deferred maintenance shall be reported as required supplementary information:

Identification of each major class of asset for which maintenance was deferred, and

The method of measuring deferred maintenance for each major class of asset.  See SFFAS Nos. 6 and 14 for detailed guidance on the extent of the disclosures for the condition assessment survey or the total life-cycle cost method.  Either method may be used for measuring deferred maintenance.

Management may elect to present stratification of critical and noncritical amounts of maintenance needed to return each major class of asset to its acceptable operating condition.  If management elects to make this disclosure, the disclosure should include management's definition of critical and noncritical maintenance.  See SFFASs No. 6 and 14.  

**Intra-governmental Amounts.**  Intra-governmental amounts represent transactions between federal entities included in the Financial Report of the United States Government (formerly the Consolidated Financial Statements of the United States Government).  These transactions include activity (consolidated/net of intra-entity transactions) with federal CFO Act and non-CFO Act entities as identified in the Treasury Financial Manual. 

Report, as required supplementary information, intra-governmental amounts for: (1)  assets; (2)  liabilities; (3)  non-exchange revenue; and, (4)  for certain reporting entities, earned revenue from trade (buy/sell) transactions along with the gross cost to generate such revenue.  Report intra-governmental assets, liabilities, earned revenue from trade transactions and non-exchange revenue by trading partner (reciprocal federal entity).  Report intra-governmental gross cost to generate earned revenue from trade transactions by budget functional classification.  Intra-governmental asset and liability categories reported as required supplementary information should agree with the intra-governmental asset and liability line items reported on the balance sheet.

The intra-governmental supplementary information may be limited to the consolidated agency-wide financial statements.  That is, only the 24 executive departments and agencies covered by this bulletin (see Appendix A of OMB Bulletin No. 98-08, and subsequent issuances) are required to report intra-governmental supplementary information in their general purpose federal financial report.  The intra-governmental supplementary information reporting requirement does not extend to Federal components (see Appendix B of OMB Bulletin No. 98-08, and subsequent issuances) required to prepare financial statements.  All amounts should be net of intra-entity transactions (consolidated).

Transactions with components of federal departments or agencies should not be reported separately but should be included in the activity reported for the federal department or agency.  For example, Food and Nutrition Service, Forest Service, and Rural Development Mission Area are not separate federal departments or agencies but are components of the U.S. Department of Agriculture (USDA), which is a federal department. Transactions with Food and Nutrition Service, Forest Service, and Rural Development Mission Area would be included in the supplementary information reported for USDA.

For fiscal years beginning after September 30, 1998 (FY 1999), reporting entities shall reconcile with their trading partners the four fiduciary transactions identified in Treasury=s *Intra-governmental Fiduciary Transactions Accounting Guide*.  The fiduciary transactions include investments in federal securities issued by the U.S. Department of the Treasury Bureau of the Public Debt; borrowings from Treasury and the Federal Financing Bank; transactions with the Department of Labor relating to the Federal Employees= Compensation Act; and transactions with the Office of Personnel Management relating to employee benefit programs.  Furthermore, reporting entities are encouraged to reconcile with their trading partners other intra-governmental asset, liability, and revenue amounts reported in the required supplementary information.  Balances reported for Aother@ asset or liability categories and individual transactions that collectively comprise less than 20 percent of the total asset and liability categories may be excluded from reconciliation. 

For fiscal years beginning after September 30, 1999 (FY 2000 and beyond), reporting entities shall reconcile intra-governmental asset, liability, and revenue amounts reported in the required supplementary information with their trading partners at least annually as of the fiscal year end (September 30).  Quarterly reconciliations are encouraged.  Balances reported for Aother@ asset or liability categories and individual transactions that collectively comprise less than 20 percent of the total asset and liability categories may be excluded from reconciliation.

**Intra-governmental Assets:**Intra-governmental assets reported as required supplementary information should agree with the intra-governmental asset line items and totals on the reporting entity=s consolidated agency-wide balance sheet.  For each intra-governmental asset line item on the consolidated agency-wide balance sheet, a corresponding column heading should be reported in the intra-governmental assets supplementary information which identifies the trading partner balances that make up the line item.  Reporting entities may aggregate trading partners whose individual totals for a particular asset category collectively comprise less than 20 percent of the total asset line item category.  If intra-governmental transactions with a trading partner are material in one asset line item category but immaterial in another asset line item category, report transactions with the trading partner for each asset line item category.

For example, assume a reporting agency has the following intra-governmental assets:  Fund Balance with the U.S. Treasury-$200; Accounts Receivable-$100 (Agency A-$82, Agency B-$9, Agency C-$4, Agency D - $5); Loans receivable-$100 (Agency A - $5, Agency B-$90, Agency C-$5); Investments-$100 (Agency A-$32, Agency B-$50, Agency C-$18); and  Other-$15 (Agency A-$2, Agency B-$15, Agency C-$2, Agency D - $1).  In this case, the reporting entity=s intra-governmental assets may be presented in the supplementary information as follows (this example is for illustrative purposes only):

Intra-governmental assets:

Trading

Partner

U.S. Treasury

Agency A

Other 

Agency B

Total

Fund balance

with Treasury

$200

    -

    -

    -    

$200

Accounts

Receivables

    -

$  82

      9

      9

$100

Loans

Receivable

    -

      5

$  90

      5

$100

Investments

    -

$ 32

   50

   18

$100

Other

    - 

$   2

   15

     3

$  20

**Intra-governmental Liabilities:**Intra-governmental liabilities reported as required supplementary information should agree with the intra-governmental liability line items and totals on the reporting entity=s consolidated agency-wide balance sheet.  For each intra-governmental liability line item on the consolidated agency-wide balance sheet, a corresponding column heading should be reported in the intra-governmental liabilities supplementary information which identifies the trading partner balances that make up the line item.  If intra-governmental transactions with a trading partner are material in one liability line item category but immaterial in another liability line item category, report transactions with the trading partner for each liability line item category. 

Trading

Partner

Agency A

Agency B

Agency C

Other

Total

Accounts

payable

xxx

xxx

xxx

xxx

xxx

Debt/borrowings

from other agencies

xxx

xxx

xxx

xxx

xxx

Other

xxx

xxx

xxx

xxx

xxx

**Intra-governmental Earned Revenues and Related Costs:**  For FY 1999, agencies with total intra-governmental earned revenues from trade transactions (net of intra-entity activity) greater than $2 billion shall report such intra-governmental revenues by trading partner.  For FY 2000,  agencies with total intra-governmental earned revenues from trade transactions (net of intra-entity activity) greater than $500 million shall report such revenues by trading partner.  Agencies reporting intra-governmental earned revenues should also report, by budget functional classification, the gross cost of goods, services, and other transactions which generated the intra-governmental earned revenues.  For example, a providing/selling agency should report the gross cost of providing products or services to an acquiring agency.

Trading Partner

Agency A

Agency B

Agency C

Agency D

Total

Budget Functional Classification

Classification A

Classification B

Classification C

Classification D

Total

Earned revenue

xxx

xxx

xxx

xxx

xxx

Gross Cost to

Generate Revenue

xxx

xxx

xxx

xxx

xxx

**Intra-governmental Non-exchange Revenue:** Agencies shall report, by trading partner, intra governmental non-exchange revenues transferred in and out.

Trading

Partner

Agency A

Agency B

Agency C

Total

Non-exchange Revenue

Transfers-In

xxx

xxx

xxx

xxx

Transfers-Out

xxx

xxx

xxx

xxx

**INSTRUCTIONS FOR THE BALANCE SHEET**

The following amendments to the balance sheet clarify form and content guidance previously issued by OMB.  Also, Benefits Due and Payable is required to be separately reported from Other Liabilities.

**Other Assets.**  The "Other@ assets category shall include assets that are not reported in a separate category on the face of the balance sheet.  An asset category that does not warrant separate recognition on the face of the balance sheet because management has determined that the balance for the category is not significant, shall be included in the "Other@ assets line item and disclosed in the notes to the financial statement.

**Environmental and Disposal Costs.**  SFFAS No. 5 provides criteria for recognizing a contingent liability and shall be applied to determine if cleanup costs should be recognized as liabilities and/or disclosed in the notes.  SFFAS No. 6 supplements the liability standard by providing guidance for recording cleanup costs related to general PP&E and stewardship assets used in Federal operations.  The guidance applies to cleanup costs from Federal operations known to result in hazardous waste which the Federal Government is required by Federal, State and/or local statutes and/or regulations to cleanup.  Depending on the materiality of the amount, the liability for cleanup costs may be displayed separately or included with other liabilities.  The footnote disclosures required for liabilities associated with cleanup costs are also described in SFFAS No. 6.

**Benefits Due and Payable.**  These are amounts owed to program recipients or medical service providers as of the balance sheet date that have not yet been paid.  These amounts include payables by the Federal entity for benefits, goods or services provided under the terms of a benefits program (other than Federal employee and veterans= benefits programs), whether or not such amounts have been reported to the Federal entity (e.g., estimated payments due to health providers for services that have been rendered and that will be financed by the Federal entity but have not yet been reported to the Federal entity).  Benefit programs reported on this line item include, but are not limited to, Federal Old-Age and Survivors Insurance, Federal Hospital Insurance (Medicare Part A), Federal Supplemental Medical Insurance (Medicare Part B), Grants to States for Medicaid, Federal Disability Insurance, Supplemental Security Income, Railroad Retirement, Unemployment Insurance, and Black Lung.

**Other Liabilities.**  This line item covers liabilities that are not recognized in specific categories.  It includes (but is not limited to): capital leases, insurance, advances and prepayments, deposit fund amounts held in escrow, and accrued liabilities related to ongoing continuous expenses such as Federal employee salaries and accrued employee annual leave.  This item also covers estimated losses for claims or other contingencies if (1) a past event or exchange transaction has occurred (e.g., a Federal entity has breached a contract with a non-Federal entity) as of the date of the statements, (2) a future outflow or other sacrifice of resources is probable, and (3) the future outflow or sacrifice of resources is measurable (i.e., the amount can be reasonably estimated).  Do not include cleanup costs which shall be reported as environmental and disposal costs.  Examples of claims or other contingencies include: (1)  indemnity agreements -- reimbursements due to licensees or contractors for losses incurred in support of Federal activities; (2) adjudicated claims -- claims against the Federal Government that are in the process of judicial proceedings; and (3) commitments to international institutions -- payments due to international financial institutions.  Separate reporting of items within other liabilities is appropriate if the amounts are material.

**Commitments and Contingencies.**  A loss contingency is an existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity.  The uncertainty should ultimately be resolved when one or more future events occur or fail to occur.  The likelihood that the future event or events will confirm the loss or the incurrence of a liability can range from probable to remote.  SFFAS No. 5, as amended by SFFAS No. 12, contains the criteria for recognition and disclosure of contingent liabilities. In addition to the contingent liabilities required by SFFAS No. 5, the following shall also be disclosed:  (1) an estimate of obligations related to canceled appropriations for which the reporting entity has a contractual commitment for payment, and (2) amounts for contractual arrangements which may require future financial obligations (commitments), e.g., undelivered orders.

**INSTRUCTIONS FOR OPTIONAL BALANCE SHEET**

For FYs 1999 and 2000, the balance sheet may be simplified.  That is, entity and non-entity assets may be combined on the face of the balance sheet and non-entity assets shall be disclosed in the footnotes.  Also, liabilities covered by budgetary resources and liabilities not covered by budgetary resources may be combined on the face of the balance sheet and liabilities not covered by budgetary resources shall be disclosed in the footnotes.

This technical amendment is optional for FYs 1999 and 2000.  If elected, the current balance sheet instructions and the related note disclosures would be superseded by the following guidance.  The amendments will be required for fiscal years ending after September 30, 2000 (FY 2001).  Early implementation is encouraged.

**Entity and Non-entity Assets.**  Combine entity and non-entity assets on the face of the balance sheet, e.g., entity intra-governmental accounts receivable and non-entity intra-governmental accounts receivable shall be combined and reported as a single intra-governmental accounts receivable line item on the face of the balance sheet.  Disclose non-entity assets in a note to the financial statements (see the illustrative format on page 13).

**Negative Subsidies and Downward Re-Estimates of Subsidy.**  Special receipt accounts for negative subsidies and downward subsidy re-estimates are to be included in the credit reporting entity=s financial statements.  Any assets in the accounts are non-entity assets and are offset by intra-governmental liabilities covered by budgetary resources.

**Liabilities Covered and Not Covered by Budgetary Resources.**  Combine liabilities covered by budgetary resources with liabilities not covered by budgetary resources on the face of the balance sheet, e.g., intra-governmental accounts payable covered by budgetary resources and intra-governmental accounts payable not covered by budgetary resources shall be combined and reported as a single intra-governmental accounts payable line item on the face of the balance sheet.  Disclose liabilities not covered by budgetary resources in a note to the financial statements (see the illustrative format on page 17).

**Federal Employee and Veterans= Benefits.**  Entities that are responsible for accounting for pensions, other retirement benefits, and other post-employment benefits should calculate and report these liabilities and related expenses in accordance with SFFAS No. 5.  Liabilities for federal employee and veterans= benefits include the actuarial portion of these benefits.  They do not include liabilities related to ongoing continuous expenses such as employees= accrued salary, accrued annual leave, and the unpaid portion of employee benefits and other benefits that are currently due, which are reported in the AOther@ liabilities line item.  Disclose in the notes to the financial statements the actuarial liabilities, assumptions used to compute the actuarial liabilities, and the components of expense for the period for pensions, other retirement benefits, and other post-employment benefits.

**OPTIONAL BALANCE SHEET FORMAT**

Department/Agency/Reporting entity 

Consolidated Balance Sheet

As of September 30, XXXX

(in dollars/thousands/millions)

Assets (Note 17):

Intra-governmental:

Fund balance with Treasury (Note 2)$  xxx

Accounts receivable (Note 5)xxx

Loans receivable xxx

Investments  (Note 4)xxx

Other (Note 6)xxx

Total intra-governmentalxxx

Cash and other monetary assets (Note 3)xxx

Investments (Note 4)xxx

Accounts receivable (Note 5)xxx

Taxes receivable (Note 5a)xxx

Loans receivable and related foreclosed property (Note 7)xxx

Inventory and related property (Note 8)   xxx

General property plant and equipment (Note 9)xxx

Other (Note 6) xxx

Total assets$  x,xxx

______________________________________________________________________________

The accompanying notes are an integral part of these statements.

Liabilities (Note 18):

Intra-governmental:

Accounts payable $  xxx

Debt (Note 10)xxx

Other (Notes 11, 12 and 14)xxx

Total intra-governmentalxxx

Accounts payable xxx

Loan guarantee liability (Note 7)xxx

Debt held by the public (Note 10)xxx

Federal employee and veterans= benefits (Note 13)xxx

Environmental and disposal costs (Note 17)xxx

Benefits due and payable xxx

Other (Notes 11, 12 and 14)xxx

Total liabilitiesx,xxx

Commitments and contingencies (Note 16)

Net position

Unexpended appropriations (Note 15)xxx

Cumulative results of operationsxxx

Total net positionxxx

Total liabilities and net position$  x,xxx

______________________________________________________________________________

The accompanying notes are an integral part of these statements.

**NOTES TO OPTIONAL BALANCE SHEET**

**Required note disclosure when entity and non-entity assets are combined on the face of the balance sheet:**

**Note 17.  Non-entity Assets**

Intra-governmental:

Fund balance with Treasury$  xxx

Accounts receivablexxx

Loans receivablexxx

Investmentsxxx

Otherxxx

Total intra-governmentalxxx

Cash and other monetary assetsxxx

Accounts receivablexxx

Taxes receivablexxx

Loans receivable and related foreclosed propertyxxx

Inventory and related propertyxxx

Otherxxx

Total non-entity assets    x,xxx

Total entity assets x,xxx

Total assets$  xx,xxx

Other information: ______________________________________________________________

_____________________________________________________________________________

Disclose intra-governmental non-entity assets separately from other non-entity assets.  Also provide other information needed to understand the nature of non-entity assets.

**Required note disclosure when entity and non-entity assets are combined on the face of the balance sheet:**

**Note 2.  Fund Balance with Treasury:**

A.  Fund Balances:

(1) Trust Funds$  xxx

(2) Revolving Fundsxxx

(3) Appropriated Fundsxxx

(4) Other Fund Typesxxx

Total$  xxx

B.  Other information: ___________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

**Instructions.**

A.**Fund Balances.**  The total of all undisbursed account balances with the U.S. Treasury, as reflected in the entity=s records and summarized by fund type.  Line (4), other fund types, should include balances in deposit accounts, such as for collections pending litigation, awaiting determination of the proper accounting disposition, or being held by the entity in the capacity of a banker or agent for others.  If any of the balances under other fund types are material, list them separately.

B.**Other Information.**Disclose any other information necessary for understanding the nature of the fund balances.

**Required note disclosure when entity and non-entity assets are combined on the face of the balance sheet:**

**Note 3.  Cash, Foreign Currency and Other Monetary Assets:**

A.  Cash$  xxx

B.  Foreign Currencyxxx

C.  Other Monetary Assets

(1) Goldxxx

(2) Special Drawing Rightsxxx

(3) U.S. Reserves in the International Monetary Fundxxx

(4) Otherxxx

(5) Total Other Monetary Assetsxxx

D.  Total Cash, Foreign Currency and Other Monetary Assets$  xxx

E.  Other information: ___________________________________________________________

_____________________________________________________________________________

**Instructions.**  Report the amount of Cash, Foreign Currency and Other Monetary Assets.

A.  **Cash.**  The total of cash under the control of the reporting entity, which includes coin, paper currency, purchased foreign currency, negotiable instruments, and amounts on deposit in banks and other financial institutions.  Cash available for agency use should include petty cash and cash held in revolving funds which will not be transferred to the general fund.

B.  **Foreign Currency.**  The total U.S. dollar equivalent of non-purchased foreign currencies held in foreign currency fund accounts.

C.  **Other Monetary Assets.**  This amount represents other items, including gold, special drawing rights, and U.S. Reserves in the International Monetary Fund.

D.  **Total Cash, Foreign Currency, and Other Monetary Assets.**  The sum of lines A, B, and C(5).

E.  **Other Information.**  Disclose as other information any restrictions on cash.  Restricted cash includes holdings which are unavailable for agency use (non-entity cash) and have not been transferred to the general fund.  Restricted cash also includes cash held in escrow to pay property taxes and insurance related to property associated with defaulted loans.  Disclose any restrictions on the use or conversion of cash denominated in foreign currencies , and the significant effects, if any, of changes in the exchange rate on the entity=s financial position that occur after the end of the reporting period but before the issuance of financial statements.  Provide other information, as appropriate, such as the valuation rate of gold.

**Required note disclosure when entity and non-entity assets are combined on the face of the balance sheet:**

**Note 5. Accounts Receivable:** Present the gross receivables, the method used to estimate the allowance for uncollectible accounts, and the net amount due.  Do not include receivables related to direct or guaranteed loans which are reported in Note 7.

**Note 6: Other Assets:**

A. 1. Intra-governmental 

(1)_________________________________________________$  xxx

(2)_________________________________________________xxx

(3)_________________________________________________xxx

Total Intra-governmentalxxx

2.__________________________________________________xxx

3.__________________________________________________xxx

4.__________________________________________________xxx

Total Other Assets$  xxx

B.  Other information:_______________________________________________

_________________________________________________________________

_________________________________________________________________

**Instructions.**

A.  List and describe the major homogenous components of other assets.

B.  Provide other information needed to understand the nature of other assets.

**Required note disclosure when liabilities covered and liabilities not covered by budgetary resources are combined on the face of the balance sheet:**

**Note 18.  Liabilities Not Covered by Budgetary Resources**

Intra-governmental:

Accounts payable$  xxx

Debtxxx

Otherxxx

Total intra-governmentalxxx

Accounts payablexxx

Loan guarantee liabilityxxx

Debt held by the publicxxx

Federal employee and veterans= benefitsxxx

Environmental and disposal liabilitiesxxx

Benefits due and payablexxx

Otherxxx

Total liabilities not covered by budgetary resourcesx,xxx

Total liabilities covered by budgetary resourcesx,xxx

Total liabilities$  xx,xxx

Other information: _____________________________________________________________

____________________________________________________________________________

Disclose intra-governmental liabilities not covered by budgetary resources separately from other liabilities not covered by budgetary resources.  Also provide other information needed to understand the nature of liabilities not covered by budgetary resources.

**Required note disclosure when liabilities covered and liabilities not covered by budgetary resources are combined on the face of the balance sheet:**

**Note 11. Other Liabilities:**

Non-

CurrentCurrentTotal

A. 1.  Intra-governmental

(1)________________$  xxx$  xxx$  xxx

(2)________________    xxx    xxx    xxx

(3)________________    xxxxxxxxx

Total Intra-governmental    xxxxxxxxx

      2. ________________    xxx    xxx    xxx

      3. ________________    xxx    xxx    xxx

      4. ________________    xxxxxxxxx

Total Other Liabilities$  xxx$  xxx$  xxx

B.  Other Information:_______________________________________________

_________________________________________________________________

**Instructions.**

A.  **Other Liabilities.**  Include all liabilities not reported elsewhere.  Separately report disclose the current portion of other liabilities.

B.  **Other Information.**  Provide other information necessary for understanding other liabilities.

**Required note disclosure when liabilities covered and liabilities not covered by budgetary resources are combined on the face of the balance sheet:**

**Note 13.  Federal Employee and Veterans= Benefits**

Entities that are responsible for administering pensions, other retirement benefits, and other post-employment benefits should calculate and report these liabilities and related expenses in accordance with SFFAS No. 5.

The following are the minimum disclosures required for pensions and other retirement benefits:

· The assumptions used to calculate the liability.  (In the case of a pension plan that uses assumptions that differ from those used by the primary plans, the Civil Service Retirement System (CSRS), the Federal Employees Retirement System (FERS), and the Military Retirement System (MRS), the pension plan using the different assumptions should disclose how and why the assumptions used differ from those of the primary plans.)

· Separate disclosure of the individual components of expense for the period. (i.e., the normal cost, interest on the liability for the period, prior and past service cost from plan amendments during the period, if any, any gains/losses due to a change in the medical inflation rate assumption, and other actuarial gains or losses during the period, if any)

**INSTRUCTIONS FOR THE STATEMENT OF NET COST**

For FY 1999 and beyond, intra-governmental gross cost and earned revenue shall be disclosed in the notes by budget functional classification.  This reporting requirement is in addition to the current requirement to disclose total entity gross cost and earned revenue by budget functional classification.  

**Footnote Disclosure Related to the Statement of Net Cost**

**Gross Cost and Earned Revenue by Budget Functional Classification.**  Disclose gross cost and earned revenue, by budget functional classification, for (1) the reporting entity and (2) transactions with intra-governmental entities.  Gross cost and earned revenue should be net of intra-entity transactions (consolidated).  Disclosure of gross cost and earned revenue by budget functional classification may be limited to the consolidated agency-wide financial statements.  That is, only the 24 executive departments and agencies covered by this bulletin (see Appendix A of OMB Bulletin No. 98-08, and subsequent issuances) are required to disclose gross cost and earned revenue by budget functional classification in a note.  See the Treasury Financial Manual for budget functional classifications. 

Gross Cost and Earned Revenue by Budget Functional Classification:

Functional 

ClassificationGross CostEarned RevenueNet Cost

Classification Axxxxxx       xxx

Classification Bxxxxxx       xxx

Classification Cxxxxxxxxx

Totalxxxxxxxxx

**Instructions:** Balances disclosed in the footnote disclosure should agree with the balances reported on the face of the statement.

Intra-governmental Gross Cost and Earned Revenue by Budget Functional Classification:

Functional 

ClassificationGross CostEarned RevenueNet Cost

Classification Axxxxxx       xxx

Classification Bxxxxxx       xxx

Classification Cxxxxxxxxx

Total****xxxxxxxxx

**Instructions:** Intra-governmental amounts include activity that arise from transactions with Federal entities.  These amounts are transactions of a Federal entity with other Federal entities.

**INSTRUCTIONS FOR THE STATEMENTS OF**

**BUDGETARY RESOURCES AND FINANCING**

In accordance with OMB Memorandum 99-03, *Technical Amendments to OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements,*dated November 20, 1998, the authority to prepare a combining statement of budgetary resources and a combined statement of financing is extended through FY 2000.