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[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Notices]
[Pages 8218-8220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4398]

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DEPARTMENT OF COMMERCE
Bureau of the Census

Quarterly Financial Report

ACTION: Proposed collection: comment request.

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SUMMARY: The Department of Commerce, as part of its continuing effort 
to reduce paperwork and respondent burden, invites the general public 
and other Federal agencies to

[[Page 8219]]

take this opportunity to comment on proposed and/or continuing 
information collections, as required by the Paperwork Reduction Act of 
1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).

DATES: Written comments must be submitted on or before April 25, 1997.

ADDRESSES: Direct all written comments to Linda Engelmeier, 
Departmental Forms Clearance Officer, Department of Commerce, Room 
5327, 14th and Constitution Avenue, NW, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the information collection instrument(s) and instructions 
should be directed to Ronald Lee, Bureau of the Census, Room 301-11 
Iverson Mall, Washington, DC 20233, Telephone (301) 763-5435.

SUPPLEMENTARY INFORMATION:

I. Abstract

    The Bureau of the Census plans to revise three of four data 
collection forms it uses in its Quarterly Financial Report (QFR) 
Program. QFR Forms QFR-101(MG)-long form, QFR-102(TR)-long form, and 
QFR-101A(MG)-short form are being revised. Form QFR-103(NB)-Nature of 
Business Report will not be revised. The purpose of these revisions is 
to bring the data collection forms up-to-date from an accounting and 
financial statement presentation viewpoint and to provide more 
meaningful data to users. These forms have not been substantially 
revised since their introduction in 1973.
    The QFR Program has published up-to-date aggregate statistics on 
the financial results and position of U.S. corporations since 1947. It 
is a principal economic indicator that also provides financial data 
essential to the calculation of key Government measures of national 
economic performance. The importance of this data collection is 
reflected by the granting of specific authority to conduct the program 
in Title 13 of the United States Code, Section 91, which requires that 
financial statistics of business operations be collected and published 
quarterly. Public Law 103-105 extended the authority of the Secretary 
of Commerce to conduct the QFR Program under Section 91 through 
September 30, 1998.
    The purpose of the QFR Program is to provide timely, accurate data 
on business financial conditions for use by Government and private-
sector organizations and individuals. An extensive subscription mailing 
list attests to the diverse groups using these data including foreign 
countries, universities, financial analysts, unions, trade 
associations, public libraries, banking institutions, and U.S. and 
foreign corporations. The primary users are governmental organizations 
charged with economic policy-making responsibilities. These 
organizations play a major role in providing guidance, advice, and 
support to the QFR Program.
    While the Office of Management and Budget's (OMB) current approval 
for the QFR Program's data collection forms runs through September 30, 
1998, the current quarterly report forms are outdated and have not 
undergone substantial revision for more than 20 years. There have been 
sweeping changes in financial statement presentation and the underlying 
accounting principles since the form's introduction in 1973. We have 
been able to forestall form revision because QFR ``catchall'' data line 
items provided corporations with a dumping ground for new data items 
spawned by these accounting changes. The published values in the 
``catchall'' items however, have increased measurably, and will 
continue to do so, as the number of accounting changes since 1973 
mounts.
    Our primary data users, the Bureau of Economic Analysis (BEA) and 
the Federal Reserve Board (FRB), want less data item aggregation 
particularly in the QFR. This would allow separation of recurring and 
nonrecurring income/expense items. Others in the user community 
repeatedly request QFR data presentation to be more consistent with 
other financial data sets, such as SEC filings and request the addition 
of new line items for improved calculation of ratios measuring industry 
performance. Also, large reporting companies frequently call for 
assistance because there is insufficient space on the forms to 
accommodate the reporting of data items they usually report separately 
in their financial statements.
    In order to bring the QFR data collection forms up-to-date and 
provide more meaningful data to users, we plan to make changes to the 
quarterly financial report forms QFR-101(MG)-long form, QFR-102(TR)-
long form, and QFR-101A(MG)-short form. Form QFR-103(NB)-Nature of 
Business Report which is used to determine industry classification, 
verify corporate identity, and analyze parent-subsidiary relations will 
not be revised. The proposed new forms retain the single-page format. 
The number of reportable data items increases from 35 to 36 for form 
QFR-101A to accommodate for interest expense. The number of reportable 
data items remain the same for forms QFR-101 and QFR-102. These two 
forms do, however contain more detailed reporting of significant 
economic events such as asset sales and disposal of business segments. 
This additional level of detail will enable BEA to adjust more 
accurately the ``income before tax'' numbers for these events. 
Currently, we and BEA do ad hoc research of newspapers for these items 
and often must telephone companies for their detail. The proposed new 
forms also contain separate information on interest expense and 
corporate bonds. Both of these data items have been long standing 
requests from a variety of users, including the FRB, business 
economists, and the banking community.
    We began addressing the issue of form redesign with a draft of the 
revised forms in January 1993. We sent these forms to more than 100 
trade associations, interested parties, and user agencies for comment. 
Most of the comments received were positive. A number of the trade 
associations asked their members to comment on the proposed revision 
and they in turn passed these comments back to us. Suggestions for 
rewording and clarification of requirements were incorporated in a 
revised draft. The most notable change was the dropping of the research 
and development expense request. The comments we received indicated 
that these data are not uniformly available on a quarterly basis.
    In July 1994, pursuant to the OMB generic clearance for 
questionnaire pretesting research (OMB number 0607-0725), we conducted 
a pretest of the revised forms and instructions. Revised QFR data 
collection forms were sent to 100 corporations currently participating 
in the QFR Program. Thirty of these cases were selected from the 
noncertainty or sample segment of the program and 70 cases were 
selected from the certainty or ``take all'' segment.
    The results of the test were favorable. Response rates for the test 
cases were similar to those having to file the old or ``current'' form. 
The average time it took to complete the revised form for the 
noncertainty cases did not differ significantly from the time we 
estimate it takes to complete the current form. However, the average 
time it took for the certainty cases was significantly less than we 
estimate it takes to complete the current form. We believe this 
difference is primarily due to an over-estimate of the time it takes to 
complete the current form, rather than a result of the revised form. 
This is corroborated by the responses to the question on the debriefing 
questionnaire that compared the difficulty of the new form to the 
current form. Over 80% of the certainty

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cases reported that the revised and current forms required about the 
same level of effort to complete.

II. Method of Collection

    The Census Bureau will use mail out/mail back survey forms to 
collect data. Companies will be asked to respond to the survey within 
25 days of the end of the quarter the data are being requested for. 
Letters and/or telephone calls encouraging participation will be 
directed to respondents that have not responded by the designated time.

III. Data

    OMB Number: 0607-0432
    Form Number: QFR-101 (Sent to manufacturing, mining, and wholesale 
trade corporations with assets of $50 million or more at time of 
sampling), QFR-102 (Sent to retail trade corporations with assets of 
$50 million or more at time of sampling), QFR-101A (Sent to 
manufacturing corporations with assets of less than $50 million at time 
of sampling), and QFR-103 (Sent at the beginning of sample selection 
and at 2-year intervals if the corporation is included in the sample 
for more than eight quarters)
    Type of Review: Regular Review
    Affected Public: Manufacturing corporations with assets of $250 
thousand or more and mining and wholesale and retail trade corporations 
with assets of $50 million or more.

Estimated Number of Respondents:

    Form QFR-101--3,475 per quarter, 13,900 annually
    Form QFR-102--575 per quarter, 2,300 annually
    Form QFR-101A--4,500 per quarter, 18,000 annually
    Form QFR-103--1,225 per quarter 4,900 annually
    Estimated Time Per Response: The average for all respondents is 
about 2.1 hours. For companies completing form the QFR-101 or QFR-102, 
the range is from less than 1 to 10 hours, averaging 2.9 hours. For 
companies completing form QFR-101A, the range is less than 1 hour to 3 
hours, averaging 1.2 hours. For companies completing form QFR-103, the 
range is from 1 to 4 hours, averaging 2.4 hours.
    Estimated Total Annual Burden Hours: The total annual burden for 
fiscal years 1997 and 1998 is estimated to be 78,600 hours.
    Estimated Total Annual Cost: $2,950,000
    Respondents' Obligation: Mandatory
    Legal Authority: Title 13 United States Code, Sections 91 and 224

IV. Request for Comments

    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden 
(including hours and cost) of the proposed collection of information; 
(c) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of this information 
collection; they also will become a matter of public record.

    Dated: February 18, 1997.
Linda Engelmeier,
Departmental Forms Clearance Officer, Office of Management and 
Organization.
[FR Doc. 97-4398 Filed 2-21-97; 8:45 a.m.]
BILLING CODE 3510-07-P
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