I 
110TH CONGRESS 
1ST SESSION H. R. 3958 
To amend title 31, United States Code, to require certain additional calcula-
tions to be included in the annual financial statement submitted under 
section 331(e) of that title, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 24, 2007 
Mrs. BACHMANN (for herself, Mr. RYAN of Wisconsin, Mr. KIRK, Mr. 
FEENEY, Mr. HERGER, Mrs. BLACKBURN, Mrs. BONO, Mr. ROHR-
ABACHER, Mr. MILLER of Florida, Mr. SOUDER, Mr. FLAKE, Mr. HOEK-
STRA, Mr. SHADEGG, Mr. GOODE, Mr. DOOLITTLE, Mr. FORTUN˜O, Mrs. 
MYRICK, Mr. WELDON of Florida, Ms. FOXX, Mr. CARTER, Mr. DANIEL 
E. LUNGREN of California, Mr. COOPER, Mr. HENSARLING, Mr. GAR-
RETT of New Jersey, Mr. CAMPBELL of California, Mr. CULBERSON, Mr. 
SENSENBRENNER, Mr. BURTON of Indiana, Mr. DAVIS of Kentucky, Mr. 
BARTLETT of Maryland, Mr. CONAWAY, Mr. PITTS, Mr. LUCAS, Mr. 
CANTOR, Mr. DAVID DAVIS of Tennessee, Mr. WALBERG, Mr. KLINE of 
Minnesota, Mr. GOHMERT, Mr. BARRETT of South Carolina, and Mr. 
PAUL) introduced the following bill; which was referred to the Committee 
on Oversight and Government Reform, and in addition to the Committee 
on the Budget, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend title 31, United States Code, to require certain 
additional calculations to be included in the annual finan-
cial statement submitted under section 331(e) of that 
title, and for other purposes. 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Truth in Accounting 
Act of 2007’’. 
SEC. 2. PREPARATION OF NET PRESENT VALUE CALCULA-
TION OF MAJOR FISCAL EXPOSURES OF THE 
FEDERAL GOVERNMENT. 
(a) IN GENERAL.—Section 331(e) of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(3) NET PRESENT VALUE CALCULATION AND 
OTHER CALCULATIONS.— 
‘‘(A) MATTERS
COVERED.—The financial 
statement shall include a calculation under poli-
cies in effect during the fiscal year covered by 
the statement of the net present value of the 
overall fiscal exposures of the United States 
Government. The calculation shall include— 
‘‘(i) the outstanding debt held by the 
public; 
‘‘(ii) calculations of the net present 
value of commitments and receipts of the 
Federal Old-Age and Survivors Insurance 
(OASI) Trust Fund, the Federal Disability 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
Insurance (DI) Trust Fund, the Federal 
Hospital Insurance (HI) Trust Fund, and 
the Federal Supplementary Medical Insur-
ance (SMI) Trust Fund using the most re-
cent available long-term, intermediate pro-
jections by the Trustees of such Trust 
Funds of revenues, expenditures, and dis-
count factors, as represented in such an-
nual reports; 
‘‘(iii) calculations of the net present 
value of commitments and receipts of the 
Railroad Retirement and Black Lung (part 
C) programs; 
‘‘(iv) calculations of the net present 
value of commitments and receipts of the 
Federal retirement and health insurance 
systems, both civil and military. 
‘‘(B) TIME
HORIZON.—(i) For each cal-
culation under subparagraph (A), calculations 
shall be provided for— 
‘‘(I) a 75-year horizon; and 
‘‘(II) an indefinite time horizon. 
‘‘(ii) For the 75-year horizon under clause 
(i)(I), each calculation shall take each year’s 
projected expenditures minus revenues, divide 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
this difference by the projected discount factor 
for that year, and add the resulting 75 annual 
discounted flows to obtain the program’s net 
present value imbalance. The long-term dis-
count and growth rates used in these calcula-
tions shall be discussed in the financial state-
ment and shall be consistent with those used by 
the Department of Treasury and other Govern-
ment agencies with regard to other long-term fi-
nancial calculations. For purposes of the cal-
culations in clauses (ii), (iii), and (iv) of sub-
paragraph (A), revenues shall include payroll 
taxes as allocated by law to the respective Trust 
Funds (currently the case for OASI, DI, and 
HI), participant premiums and State transfer 
income (for SMI), general revenue receipts from 
the taxation of benefits, as currently allocated 
by law to the OASI, DI, and HI Trust Funds, 
and funding for the Federal retirement and 
health insurance systems, both civil and mili-
tary. For purposes of this calculation, revenues 
shall not include interest income on Trust Fund 
and transfers of general revenue to SMI, Social 
Security, or Medicare. 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
‘‘(iii) For the indefinite time horizon under 
clause (i)(II), the calculations shall follow the 
procedures provided in clause (ii), but shall be 
based on extended projections for a number of 
years sufficiently beyond 75 years that would 
result in the present value sum increasing by 
less than 0.05 percent if an additional year 
were added to the projection. 
‘‘(C) GENERATIONAL
IMBALANCE
CAL-
CULATION.—The financial statement shall in-
clude a program-by-program calculation under 
policies in effect during the fiscal year covered 
by the statement of the net present value of 
benefits and projected benefits to current par-
ticipants of the programs described in clauses 
(ii), (iii), and (iv) of subparagraph (A), includ-
ing the present value of projected benefits to 
current participants, less the present value of 
projected contributions and earmarked taxes 
paid by, or on behalf of, current participants 
less the current trust fund balances. 
‘‘(D) FISCAL IMBALANCE CALCULATION.— 
The financial statement shall include a pro-
gram-by-program calculation under policies in 
effect during the fiscal year covered by the 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
statement of the net present value of benefits 
and projected benefits to current and future 
participants of the programs described in 
clauses (ii), (iii), and (iv) of subparagraph (A), 
including the present value of projected benefits 
to current and future participants over the in-
definite horizon, less the present value of pro-
jected contributions and earmarked taxes paid 
by, or on behalf of, current and future partici-
pants over the indefinite horizon, less the cur-
rent trust fund balances. 
‘‘(E) PRESENTATION OF PUBLIC DEBT.— 
The financial statement shall include the total 
amount of outstanding public debt (included in 
the 
statement 
pursuant 
to 
subparagraph 
(A)(i)), plus the total amount of fiscal imbal-
ance calculations (included in the statement 
pursuant to subparagraph (D)), set forth sepa-
rately by amount of debt per person, per 
fulltime worker, and per household. 
‘‘(F) 
METHODS
USED.—The 
financial 
statement shall include the assumptions and de-
tails of the methods used in making the calcula-
tions required under subparagraph (A). It shall 
separately identify and provide a detailed de-
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
scription of the methods and assumptions used 
in making projections of tax revenues, pre-
miums, other receipts from all sources, includ-
ing inter-fund transfers and interest income on 
securities held in trust funds, benefit outlays 
distinguished by the type of benefit, and admin-
istrative expenses. The financial statement shall 
also provide details regarding demographic as-
sumptions (such as fertility, mortality, immigra-
tion, and labor-force participation rates), de-
pendency ratios, and economic assumptions 
(such as trust fund interest rates, discount 
rates, revenue and benefit growth rates, health- 
care expenditure growth rates, productivity 
growth rates, and inflation rates). The informa-
tion should include a description of all other in-
termediate steps and variables used and pro-
jected in making the calculations.’’. 
(b) REQUIREMENT FOR PRESIDENT TO USE FINAN-
CIAL STATEMENT IN PREPARING BUDGET.— 
(1) REQUIREMENT.—In preparing the budget 
for the United States Government for submission 
under section 1105 of title 31, United States Code, 
the President shall take into consideration the finan-
cial statement prepared by the Secretary of the 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
Treasury under section 331(e) of such title, includ-
ing the effect of the overall budget on the 
generational imbalance calculation and the fiscal im-
balance calculation required under subparagraphs 
(C) and (D), respectively, of such section, and the 
effect of the overall budget on the net present value 
of the overall fiscal exposures of the United States 
Government. 
(2) INCLUSION OF STATEMENT IN BUDGET.— 
Section 1105(a) of title 31, United States Code, is 
amended by adding at the end the following new 
paragraph: 
‘‘(36) A statement describing how the financial 
statement prepared by the Secretary of the Treasury 
under section 331(e) of this title was considered in 
preparing the budget, as required by section 2(b) of 
the Truth in Accounting Act of 2007, including a 
statement of the effect of the overall budget on the 
generational imbalance calculation and the fiscal im-
balance calculation required under subparagraphs 
(C) and (D), respectively, of such section, and the 
effect of the overall budget on the net present value 
of the overall fiscal exposures of the United States 
Government.’’. 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
(c) SECRETARY OF TREASURY TESTIMONY ON FI-
NANCIAL STATEMENT.—Section 331(e) of title 31, United 
States Code, is further amended by adding at the end the 
following new paragraph: 
‘‘(4) The Secretary of the Treasury shall testify each 
year before Congress on the financial statement for the 
preceding fiscal year required by this section, including the 
generational imbalance calculation and fiscal imbalance 
calculation required under subparagraphs (C) and (D), re-
spectively, of paragraph (3).’’. 
(d) COMPTROLLER GENERAL REPORT ON FINANCIAL 
CONDITION OF GOVERNMENT.—Section 331(e) of title 31, 
United States Code, is further amended by adding at the 
end the following new paragraph: 
‘‘(5) The Comptroller General shall testify each year 
before Congress upon request. Not later than January 30 
of each year, the Comptroller General of the United States 
shall submit to Congress a report containing an assess-
ment of the financial condition of the United States Gov-
ernment. The report shall include— 
‘‘(A) an assessment of the generational imbal-
ance calculation and fiscal imbalance calculation re-
quired under paragraph (3); 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS
‘‘(B) a statement of whether the President met 
the requirements of section 2(b) of the Truth in Ac-
counting Act of 2007; 
‘‘(C) the results of the most recent long-term 
fiscal model simulation of the Government Account-
ability Office; and 
‘‘(D) such other fiscal matters the Comptroller 
General determines to be significant.’’. 
(e) EFFECTIVE DATE.—The information required 
under paragraph (3) of section 331(e) of title 31, United 
States Code, as added by subsection (a), shall be included 
in the first financial statement required under that section 
after the date of the enactment of this Act. 
Æ 
VerDate Aug 31 2005 
04:13 Oct 25, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6301
E:\BILLS\H3958.IH
H3958
hmoore on PRODPC68 with HMBILLS