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GOVERNMENT-SPONSORED ENTERPRISES This chapter contains descriptions of and data on the Government-sponsored enterprises listed below. These enterprises were established and chartered by the Federal Government. They are not included in the Federal budget because they are classified as being private. However, because of their relationship to the Government, detailed statements of financial operations and condition are presented, to the extent such information is available, on a basis that is as consistent as practicable with the basis for the budget data of Government agencies. These statements are not reviewed by the President; they are presented as submitted by the enterprises. DEPARTMENT OF EDUCATION STUDENT LOAN MARKETING ASSOCIATION Program and Financing (in thousands of dollars) 1994 actual Identification code 99–1500–0–3–502 1995 est. 1996 est. Program by activities: Operating expenses: 00.01 Interest expense ........................................... 00.02 Administrative expenses and taxes ............. 1,892,495 506,936 1,987,000 558,000 2,086,000 603,000 —The Student Loan Marketing Association is a for-profit financial corporation chartered by Congress in 1972 under the Higher Education Act (HEA) to help increase the availability of student loans. Sallie Mae carries out secondary market and other functions. 00.91 —The College Construction Loan Insurance Association is organized as a private, for-profit insurance corporation to guarantee and insure bonds and loans made for construction and renovation of college and university facilities. The Corporation was established by, but was not chartered by, the Federal Government. —The Federal National Mortgage Association provides supplementary assistance to the secondary market for home mortgages. The Federal Home Loan Mortgage Corporation provides a secondary market for mortgage lenders. Both are supervised by the Department of Housing and Urban Development for their roles in helping to finance low- and moderate-income housing; both are regulated for financial safety and soundness by the newly established Office of Federal Housing Enterprise Oversight. —The Banks for Cooperatives and Farm Credit Banks provide financial assistance to agriculture. They are supervised by the Farm Credit Administration. —The Federal Agricultural Mortgage Corporation, under the supervision of the Farm Credit Administration, provides a secondary mortgage market for agricultural real estate and certain rural housing loans as well as for farm and business loans guaranteed by the U.S. Department of Agriculture. —The Federal Home Loan Banks assist thrift institutions, banks, and credit unions and are supervised by the Federal Housing Finance Board. —The Financing Corporation functions as a financing vehicle for the FSLIC Resolution Fund. It operates under the supervision and control of the Federal Housing Finance Board. —The Resolution Funding Corporation provides financing for the Resolution Trust Corporation (RTC) and is subject to the general oversight and direction of the Oversight Board of the RTC. The Board of Governors of the Federal Reserve System is not a Government-sponsored enterprise, but its transactions also are not included in the budget because of its unique status in the conduct of monetary policy. The Board provides data on its administrative budget on a calendar year basis, which is included here for information. Its budget schedules and statements are not subject to review by the President. VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00001 2,399,431 2,545,000 2,689,000 01.01 01.02 Total operating expenses ........................ Capital investment: Loans, etc .................................................... Investments, dividends, and other assets 11,258,773 3,115,991 12,167,762 700,000 11,556,000 750,000 01.91 Total capital investment ......................... 14,374,764 12,867,762 12,306,000 10.00 Total obligations .......................................... 16,774,195 15,412,762 14,995,000 Financing: 39.00 Budget authority (gross) .................................. 16,774,195 15,412,762 14,995,000 6,106,231 2,412,762 495,000 10,667,964 13,000,000 14,500,000 Budget authority: Authority to borrow (indefinite) ................... Spending authority from offsetting collections ......................................................... 67.15 68.00 Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: 72.10 Receivables from other government accounts ...................................................... 72.91 U.S. Securities: Par value ............................ Obligated balance, end of year: 74.10 Receivables from other government accounts ...................................................... 74.91 U.S. Securities: Par value ............................ 16,774,195 15,412,762 14,995,000 –1,549,493 768,639 –2,448,057 1,239,733 –2,375,000 1,204,000 2,448,057 –1,239,733 2,375,000 –1,204,000 2,256,000 –1,262,000 87.00 Outlays (gross) ............................................. 17,201,665 15,375,438 14,818,000 Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... –10,667,964 –13,000,000 –14,500,000 6,106,231 6,533,701 2,412,762 2,375,438 495,000 318,000 71.00 89.00 90.00 Budget authority (net) ...................................... Outlays (net) ..................................................... Status of Direct Loans (in thousands of dollars) 1994 actual Identification code 99–1500–0–3–502 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1995 est. 1996 est. ...................... 11,258,773 ...................... 12,167,762 ...................... 11,556,000 1150 Total direct loan obligations ....................... 11,258,773 12,167,762 11,556,000 1210 1231 1251 1264 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: Direct loan disbursements ..... Repayments: Repayments and prepayments ... Write-offs for default: Other adjustments, net 34,585,483 11,258,773 –7,836,844 63,947 38,071,359 12,167,762 –9,892,000 69,641 40,416,762 11,556,000 –11,458,000 77,000 1290 Outstanding, end of year ............................. 38,071,359 40,416,762 40,591,762 1 Amortization of discount on purchased loans. The Student Loan Marketing Association (Sallie Mae), a shareholder-owned corporation, was created by the Education Amendments of 1972 to expand funds available for student loans by providing liquidity to lenders engaged in the Federal Fmt 3604 Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 1115 1116 THE BUDGET FOR FISCAL YEAR 1996 DEPARTMENT OF EDUCATION—Continued STUDENT LOAN MARKETING ASSOCIATION—Continued Family Education Loan Program (FFELP), formerly the guaranteed student loan program (GSLP). Sallie Mae provides liquidity through direct purchase of insured student loans from eligible lenders and through warehousing advances, which are loans to lenders secured by insured student loans, Government or agency securities, or other acceptable collateral. In capital shortage areas, Sallie Mae is authorized, at the request of Federal officials, to make insured loans directly to students. Sallie Mae is authorized to advance funds to State agencies that will provide loans to students. Sallie Mae is also authorized to provide a secondary market for noninsured loans; to serve as a guarantee agency in support of loan availability at the request of the Secretary of Education; to purchase and underwrite student loan revenue bonds; to provide certain additional services as determined by its board of directors to be supportive of the credit needs of students generally; and to provide financing for academic facilities and equipment. Sallie Mae is authorized by the Health Professions Educational Assistance Act of 1976 to provide a secondary market for federally insured loans to graduate health professions students. Operations.—The forecast data with respect to operations are based on certain general economic and specific FFELP loan volume assumptions and should not be relied upon as an official forecast of the corporation’s future business. ANNUAL LOAN ACTIVITY [In thousands of dollars] company successor to Sallie Mae would not possess the characteristics of government sponsored enterprise debt. Statement of Operations (in thousands of dollars) Identification code 99–1500–0–3–502 0109 Net income .......................... 421,711 427,079 ...................... ...................... 1 The Sallie Mae Board of Directors does not consider it appropriate to forecast corporate revenue in a public document since such forecasts could be used for speculative purposes. Balance Sheet (in thousands of dollars) Identification code 99–1500–0–3–502 ASSETS: Federal assets: Investments in US securities: 1102 Treasury securities, par .. 1104 Agency securities, par .... 1106 Receivables, net .............. Non-Federal assets: 1201 Investments in non-Federal securities, net ................. 1206 Receivables, net .................. 1207 Advances and prepayments Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............. 1603 Allowance for estimated uncollectible loans and interest (–) ...................... 1996 est. 4,705,404 3,747,495 1,491,023 5,487,000 3,500,000 1,739,000 5,818,000 2,369,000 1,843,000 Subtotal, Guaranteed student loans ............................. Health professions loans: Purchased .......................................... Other ............................................................................................ 9,943,922 265,337 1,049,514 10,726,000 309,000 1,132,762 10,030,000 328,000 1,198,000 1801 Total ............................................................................... 11,258,773 12,167,762 11,556,000 1901 1699 1803 Value of assets related to direct loans ............ Other Federal assets: Cash and other monetary assets .............................. Property, plant and equipment, net ........................ Other assets ........................ 1999 Jkt 162001 PO 00000 Frm 00002 1996 est. 2,826,510 ...................... ...................... –2,399,431 ...................... ...................... 1995 est. 12:22 Jan 30, 1995 1995 est. 2,614,644 –2,192,933 1994 actual VerDate 23-JAN-95 1994 actual Revenue .................................... Expense .................................... Guaranteed student loans: Stafford (formerly ‘‘regular’’): Purchased ........................................................................... Warehoused ........................................................................ PLUS/SLS: Purchased .............................................................. Financing.—Between 1974 and early 1982, Sallie Mae borrowed through the Federal Financing Bank. The Secretary of Education was authorized by the Education Amendments of 1980 to guarantee principal and interest on such obligations issued prior to October 1, 1985. Under an agreement with the Department of the Treasury reached in early 1981, Sallie Mae began borrowing directly in the private capital markets. Its last borrowing through the FFB and its last issuance of federally guaranteed obligations occurred in January 1982. During the first quarter of 1994, Sallie Mae prepaid all of the outstanding FFB debt. Its obligations today have certain characteristics, provided by charter, which give them ‘‘agency’’ status, but they are not federally insured or guaranteed. Management.—At its annual meeting in May 1994, the shareholders of Sallie Mae elected 14 members to its board of directors to serve until May 1995. The shareholders of Sallie Mae are entitled to elect 14 members to the board. Pursuant to the Education Amendments of 1972, seven public directors are appointed by the President, who also names the chairman from among the 21 members. Restructuring.—Because of the transition from the guaranteed student loan program to the program of Federal Direct Student Loans, the Administration has been actively studying options for the future of Sallie Mae, including in particular, restructuring the company into a fully private company. In any such restructuring, currently outstanding Sallie Mae debt would retain the characteristics of government sponsored enterprise debt, and customers having agreements with the GSE would be fully protected. Any new debt issued by a private 1993 actual 0101 0102 Total assets ......................... LIABILITIES: Federal liabilities: 2102 Interest payable ................... 2104 Resources payable to Treasury ................................... Non-Federal liabilities: 2201 Accounts payable ................ 2202 Interest payable ................... 2203 Debt ..................................... 2206 Pension and other actuarial liabilities ......................... 2207 Other .................................... 2999 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 1993 actual 1994 actual 1995 est. 1996 est. 575,547 193,092 516,995 1,192,108 47,625 591,568 1,156,000 48,000 621,000 1,214,000 48,000 652,000 9,284,150 305,342 13,538 11,719,755 240,464 22,080 11,729,238 252,000 23,000 11,754,238 265,000 24,000 34,687,192 38,171,795 40,523,385 40,698,847 –101,709 –100,436 –106,623 –107,085 34,585,483 38,071,359 40,416,762 40,591,762 47,535 101,497 107,000 112,000 118,128 –817 148,706 37,532 156,000 39,000 164,000 41,000 45,638,993 52,172,694 54,548,000 54,866,000 14,299 ...................... ...................... ...................... 4,790,000 ...................... ...................... ...................... –833 363,548 38,795,350 –18 ...................... ...................... 401,172 421,000 442,000 49,691,582 51,944,000 52,133,000 9,457 412,121 8,880 560,207 9,000 588,000 9,000 617,000 44,383,942 50,661,823 52,962,000 53,201,000 1,255,051 1,510,871 1,586,000 1,665,000 3999 Total net position ................ 1,255,051 1,510,871 1,586,000 1,665,000 4999 Total liabilities and net position ............................... 45,638,993 52,172,694 54,548,000 54,866,000 Object Classification (in thousands of dollars) Identification code 99–1500–0–3–502 1994 actual 11.1 12.1 21.0 23.3 25.1 25.2 31.0 33.0 43.0 Personnel compensation: Full-time permanent ............. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and miscellaneous charges Advisory and assistance services .................................. Other services ................................................................ Equipment ...................................................................... Loans .............................................................................. Interest, dividends, and taxes ....................................... 50,776 53,000 15,733 17,000 4,959 5,000 4,044 4,000 13,437 14,000 234,051 246,000 2,295 2,000 11,258,773 12,167,762 5,190,127 2,904,000 56,000 18,000 5,000 4,000 15,000 258,000 2,000 11,556,000 3,081,000 99.9 Total obligations ................................................... 16,774,195 14,995,000 Fmt 3604 Sfmt 3648 E:\BUDGET\GOV.XXX pfrm03 1995 est. 15,412,762 1996 est. GOVERNMENT-SPONSORED ENTERPRISES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION 1117 Balance Sheet (in thousands of dollars) The College Construction Loan Insurance Association (Connie Lee) was authorized by Public Law 99–498 on October 17, 1986. The Corporation was created to insure and reinsure bonds and loans of educational institutions which borrow funds to finance the acquisition, construction, or renovation of their facilities. The Association was incorporated in February 1987, under the District of Columbia Business Corporation Act. Connie Lee’s authorizing statute states that ‘‘no obligation which is insured, guaranteed, or otherwise backed by the corporation, shall be deemed to be an obligation which is guaranteed by the full faith and credit of the United States.’’ Operations.—Connie Lee is structured to operate as a private corporation, subject to the same state laws and regulations as any other insurance company. Accordingly, Connie Lee secures insurance licenses in each of the various states in which it expects to conduct its insurance activities. The Board of Directors authorized management to begin activities as a reinsuror of educational facilities bonds in 1988. Connie Lee reinsured its first bonds in December 1988. In fiscal year 1994, Connie Lee insured $1.6 billion of debt service on bonds benefitting colleges, universities and teaching hospitals. Connie Lee also provided reinsurance on bonds representing $45 million of debt service. The forecast data contained in this material are based on certain general economic assumptions and should not be construed as an official forecast of the Corporation’s position. 1993 actual Identification code 99–9931–0–3–502 ASSETS: Federal assets: Investments in US securities: 1102 Treasury securities, par .. 1104 Agency securities, par .... Non-Federal assets: 1201 Investments in non-Federal securities, net ................. 1206 Receivables, net .................. 1207 Advances and prepayments Other Federal assets: 1801 Cash and other monetary assets .............................. 1803 Property, plant and equipment, net ........................ 1999 Total assets ......................... LIABILITIES: 2104 Federal liabilities: Resources payable to Treasury ............. 2201 Non-Federal liabilities: Accounts payable .................... 1994 actual 1995 est. 1996 est. 4,000 32,114 21,400 24,909 25,000 30,000 25,000 30,000 123,926 8,930 22,422 134,491 8,869 24,518 142,108 7,508 30,477 154,877 7,608 34,966 10,322 3,340 6,000 7,000 754 628 850 750 202,468 218,155 241,943 260,201 5,915 3,953 7,000 9,000 56,210 69,737 80,335 84,189 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 62,125 73,690 87,335 93,189 140,343 144,467 154,608 167,012 3999 Total net position ................ 140,343 144,467 154,608 167,012 4999 Total liabilities and net position ............................... 202,468 218,157 241,943 260,201 2999 INSURANCE AND REINSURANCE ACTIVITY [In thousands of dollars] Debt service insured: Direct insurance ................................................................................................................. Reinsurance ....................................................................................................................... Total .......................................................................................................................... DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 1994 actual 1,652,393 1,607,575 44,818 FEDERAL NATIONAL MORTGAGE ASSOCIATION PORTFOLIO PROGRAMS Financing.—In order to provide capitalization, the Secretary of Education, the Student Loan Marketing Association (Sallie Mae), and other investors are authorized to purchase stock in the corporation. Sallie Mae made an initial investment of $2 million in Connie Lee stock in fiscal year 1987. The Secretary of Education purchased $19.1 million in Connie Lee stock with funds appropriated for this purpose in fiscal year 1988. Subsequently, the corporation sold an additional $50.9 million of equity securities to Sallie Mae, increasing total capital of the corporation to $72.0 million. At the end of 1991, Connie Lee placed equity securities with private investors, providing sufficient incremental capital to obtain a triple-A credit rating necessary to engage in the financial guaranty business as a direct writer of insurance. Statement of Operations (in thousands of dollars) Identification code 99–9931–0–3–502 0101 0102 0109 Revenue ................................................... Expense .................................................... 1993 actual 1994 actual 17,856 –11,028 19,293 –11,412 Net income .......................................... 6,828 7,881 1995 est. 1996 est. 21,872 –11,731 10,141 25,186 –12,782 12,404 Management.—Connie Lee is governed by an eleven-member board of directors comprised of two directors appointed by the Secretary of the Treasury; two directors appointed by the Secretary of Education; three directors appointed by the Student Loan Marketing Association; and four directors elected by the corporation’s shareholders, one of whom must be an administrator of a college or university. The Administration is considering submission of legislation to the Congress which would fully privatize Connie Lee by divesting the Secretary of Education’s stock ownership in the Corporation and the corresponding repeal of the Corporation’s enabling legislation. VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00003 Program and Financing (in thousands of dollars) 1994 actual 1995 est. 1996 est. 13,734,700 2,526,900 17,313,800 2,711,700 20,407,400 3,068,800 16,261,600 20,025,500 23,476,200 01.01 01.02 Total operating expenses ........................ Capital investment: Mortgage purchases and loans ................... Less purchase discounts ............................. 80,320,000 –681,200 58,789,700 ...................... 62,026,900 ...................... 01.91 Total capital investment ......................... 79,638,800 58,789,700 62,026,900 Total obligations .......................................... Financing: 21.47 Unobligated balance available, start of year: Authority to borrow ...................................... 24.47 Unobligated balance available, end of year: Authority to borrow ...................................... 95,900,400 78,815,200 85,503,100 –280,330,000 –339,930,000 –397,142,000 339,930,000 397,142,000 471,976,000 155,500,400 136,027,200 160,337,100 103,872,938 100,384,180 106,068,100 –12,495 –2,980 ...................... 103,860,443 100,381,200 106,068,100 51,639,957 35,646,000 54,269,000 95,900,400 78,815,200 85,503,100 –12,923,240 27,523,200 –28,030,680 35,687,000 –36,754,100 48,532,200 28,030,680 36,754,100 40,297,900 Identification code 99–2500–0–3–371 Program by activities: Operating expenses: 00.01 Interest on borrowings from the public ...... 00.02 Other costs ................................................... 00.91 10.00 39.00 Budget authority (gross) .............................. 67.10 67.15 Budget authority: Authority to borrow ...................................... Net increase or decrease in unlimited borrowing authorities ................................... 67.90 68.00 Authority to borrow (total) ....................... Spending authority from offsetting collections ......................................................... Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: 72.47 Corporate borrowing authority ..................... 72.90 Fund balance ............................................... Obligated balance, end of year: 74.47 Corporate borrowing authority ..................... 71.00 Fmt 3604 Sfmt 3653 E:\BUDGET\GOV.XXX pfrm03 1118 THE BUDGET FOR FISCAL YEAR 1996 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued FEDERAL NATIONAL MORTGAGE ASSOCIATION—Continued PORTFOLIO PROGRAMS—Continued Program and Financing (in thousands of dollars)—Continued Identification code 99–2500–0–3–371 1994 actual 1995 est. 1996 est. 74.90 Fund balance ............................................... –35,687,000 –48,532,200 –52,276,700 87.00 Outlays (gross) ............................................. 102,844,040 74,693,420 85,302,400 Adjustments to gross budget authority and outlays: Offsetting collections from: 88.00 Federal sources ............................................ 88.40 Non-Federal sources .................................... –130,000 –61,754,000 –130,000 –47,739,000 –130,000 –54,139,000 88.90 Total, offsetting collections ..................... –61,884,000 –47,869,000 –54,269,000 89.00 90.00 Budget authority (net) ...................................... Outlays (net) ..................................................... 93,616,400 40,960,040 88,158,200 26,824,420 106,068,100 31,033,400 Status of Direct Loans (in thousands of dollars) Identification code 99–2500–0–3–371 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1150 Total direct loan obligations ....................... 1994 actual 1995 est. 1996 est. ...................... 68,573,000 ...................... 57,176,000 ...................... 61,401,000 68,573,000 57,176,000 61,401,000 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: 1231 Direct loan disbursements ........................... 1232 Purchase of loans assets from the public 1251 Repayments: Repayments and prepayments ... 1264 Write-offs for default: Other adjustments, net 185,951,300 221,766,100 253,960,300 76,610,000 3,710,000 –43,181,200 –1,324,000 58,609,700 180,000 –26,154,500 –441,000 61,846,900 180,000 –28,639,520 –540,000 1290 221,766,100 253,960,300 286,807,680 1210 Outstanding, end of year ............................. Fannie Mae is a congressionally chartered company that is wholly owned by shareholders. It is the nation’s largest source of home mortgage funds. The common stock of the corporation is owned by the public, is fully transferable, and trades on the New York, Midwest, and Pacific stock exchanges. Fannie Mae was established in 1934, when Congress recognized that private markets were unable to provide a steady supply of funds for housing. Fannie Mae was originally a subsidiary of the Reconstruction Finance Corporation and was permitted to purchase only FHA loans. Fannie Mae was restructured in 1954 as a mixed ownership (part government, part private) corporation. In 1968, Congress sold the government’s remaining interest in Fannie Mae and completed the transformation to private shareholder ownership in 1970. Using the proceeds from the sale of subordinated debentures, Fannie Mae paid the Treasury $216 million for the government’s preferred stock, which was retired, and for the Treasury’s interest in the corporation’s earned surplus. The corporation was taken off the federal budget and its debt and securities state clearly that they do not carry the full faith and credit of the U.S. Government. In 1992, Congress examined and reaffirmed Fannie Mae’s role in the housing finance delivery system through charter amendments enacted as part of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (the ‘‘Act’’). Fannie Mae’s charter purposes, as amended by the Act, are: ‘‘to provide stability in the secondary market for residential mortgages; respond appropriately to the private capital market; provide ongoing assistance to the secondary market for residential mortgages (including activities relating to mortgages on housing for low- and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities); and promote access VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00004 to mortgage credit throughout the Nation (including central cities, rural areas, and underserved areas) by increasing the liquidity of mortgage investments and improving the distribution of investment capital for residential mortgage financing.’’ The Act also establishes affordable housing goals that enhance Fannie Mae’s responsibility to finance housing for lowand moderate-income families and housing in central cities, rural areas and other underserved areas. In 1994 HUD regulations required that 30 percent of the number of units Fannie Mae finances serve low- and moderate-income families and 30 percent of the number of units it finances be located in central cities. More than one-half of the families served by Fannie Mae in 1994 were low- or moderate-income or lived in targeted underserved areas. Fannie Mae was also required to meet a 1993–94 special affordable housing goal of at least $2 billion over the company’s 1992 performance for housing that served low-income families. The HUD Secretary is responsible for monitoring performance under these goals. Fannie Mae met each of these goals in 1994. The Act also established the Office of Federal Housing Enterprise Oversight (OFHEO), an independent office within HUD, headed by a Director who reports directly to Congress. The Director is responsible for ensuring that Fannie Mae is adequately capitalized (pursuant to statutory standards) and operating safely. The Act provides for three capital standards: a minimum standard, a critical standard, and a riskbased standard. The risk-based capital standard directly links required capital to the company’s primary risks: interest rate, credit, and operations risks. Under Fannie Mae’s charter, the corporation also receives certain governmental benefits for performing its public purpose in exchange for limiting its business activities to home financing. These benefits enable the company to lower the cost of mortgage credit by financing its operations through debt issues characterized as ‘‘Agency’’ issues in the securities market (but not in the federal government budget). Fannie Mae’s charter prohibits the imposition of user fees, or state and local taxes (other than real property tax). Congress and the Executive have recognized these taxes would ultimately be paid by the low-, moderate- and middle-income Americans served by the corporation in the form of a tax on homeownership. Fannie Mae pays federal income taxes, however, and in 1994 paid over $1 billion in federal income tax. Fannie Mae is the nation’s largest mortgage investor. Its portfolio and mortgage-backed securities (MBS) finances about one out of every six mortgages in the United States. Acting as a national intermediary between homebuyers and world capital markets, it provides greater efficiency, liquidity, and reliability in part because of its government ties. In recent years, Fannie Mae has become even more important to effective home finance delivery by assuring depositories ready access to mortgage funds when demand outpaces their deposit or capital base. Fannie Mae has three separate authorities to borrow money from private sources. It may issue subordinated obligations, borrow through the issuance of debentures and short-term discount notes, and issue bonds secured by mortgages. To generate additional funds for housing, the company guarantees the timely payment of principal and interest on Fannie Mae mortgage-backed securities in exchange for a fee. Fannie Mae introduced mortgage underwriting guidelines and documents that serve as industry standards, and supported the development of a secondary mortgage market. In the past five years alone, Fannie Mae has served over 10.2 million families, providing nearly $900 billion for single-family mortgage financing. Its primary consumer beneficiaries are low-, moderate-, and middle-income households. In 1994, over 25 percent of the one- to four-unit mortgages it purchased had balances of $60,000 or less and the average mortgage purchased was about $95,000. Also, about 39 percent Fmt 3604 Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued of the single-family mortgages and approximately 95 percent of the multifamily mortgages purchased by Fannie Mae served families with incomes at or below the area median income. Over the last five years, Fannie Mae also has directed more than $16 billion to local housing markets for the financing of multifamily housing, helping to keep rents affordable for nearly 1 million apartment households. In 1994, the company announced ‘‘Showing America a New Way Home,’’ the centerpiece of Fannie Mae’s commitment to provide $1 trillion through the end of the decade to finance over ten million homes for families and communities most in need. This targeted housing finance will serve families with incomes below the median for their area, minorities and new immigrants, families who live in central cities and distressed communities, and people with special housing needs. ‘‘Showing America a New Way Home’’ is also Fannie Mae’s commitment to transform the housing finance system. Through it, Fannie Mae will reach out to every renter in America to provide the information they need to buy a home, break down arbitrary barriers to getting a home mortgage, and do everything in the corporation’s power to make the elimination of lending discrimination the number one priority of the housing finance system. Fannie Mae has successfully fulfilled its housing mission while continuing to build its financial strength. For the year ending September 30, 1994, the company earned approximately $1.6 billion. The company’s credit experience, as measured by loan delinquencies, has continued to be substantially better than that of the entire mortgage industry. The company has also successfully managed the sizable interest rate movements experienced over the past several years. Capital (shareholders’ equity and loan loss reserves) at the end of September stood at $10.0 billion. The company has continued to remain in compliance with applicable capital standards enacted into law in October 1992. The forecast data contained in this material has been developed based on certain general economic assumptions prevalent in the fourth quarter of 1994 and should not be construed as an official forecast for Fannie Mae. Income and retained earnings for the years ended September 30, 1993 and 1994 follow (in thousands of dollars): Other Federal assets: Cash and other monetary assets 1999 Total assets ......................... LIABILITIES: Federal liabilities: 2101 Accounts payable ................ 2102 Accrued interest payable ..... Non-Federal liabilities: 2203 Debt ..................................... 2204 Estimated Federal liability for loan guarantees, credit reform ................... 2206 Pension and other actuarial liabilities ......................... 2207 Subtotal, Federal taxes payable ................................. 2999 Total liabilities .................... NET POSITION: 3300 Cumulative results of operations ................................... 38,397,100 48,505,198 61,101,400 64,739,600 211,441,600 254,805,200 300,966,500 337,538,200 571,500 2,978,200 602,033 3,214,100 580,000 3,777,100 580,000 4,293,100 195,786,100 239,319,900 282,487,400 316,719,200 4,194,900 2,303,802 3,150,800 3,407,400 105,800 198,587 110,000 120,000 78,200 –24,200 138,600 180,200 203,714,700 245,614,222 290,243,900 325,299,900 6,117,800 7,545,000 9,084,200 10,877,300 3999 Total net position ................ 6,117,800 7,545,000 9,084,200 10,877,300 4999 Total liabilities and net position ............................... 209,832,500 253,159,222 299,328,100 336,177,200 Object Classification (in thousands of dollars) Identification code 99–2500–0–3–371 1994 actual 11.1 12.1 21.0 23.3 24.0 25.1 25.2 26.0 31.0 33.0 43.0 Personnel compensation: Full-time permanent ............. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and miscellaneous charges Printing and reproduction .............................................. Advisory and assistance services .................................. Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Investments and loans .................................................. Interest and dividends ................................................... 179,000 86,000 17,000 10,000 7,000 83,000 1,441,300 5,000 65,000 79,638,800 14,368,300 147,000 160,000 71,000 77,000 14,000 15,000 8,000 9,000 6,000 6,000 67,500 74,100 1,185,500 1,285,000 4,000 4,000 53,000 58,000 65,450,700 71,004,500 11,808,500 12,810,500 99.9 Total obligations ................................................... 95,900,400 78,815,200 1994 actual 15,608,600 12,904,500 1995 est. 1996 est. 85,503,100 MORTGAGE-BACKED SECURITIES Program and Financing (in thousands of dollars) 1994 actual Identification code 99–2501–0–3–371 1993 actual Gross revenue ................................................................................................ Gross expenses .............................................................................................. 1801 1119 17,756,000 14,660,800 1995 est. 1996 est. Program by activities: Capital investment: Commitments to issue MBS .............................................................. 159,548,000 101,224,400 121,472,100 10.00 Total obligations .......................................... 159,548,000 101,224,400 121,472,100 39.00 Financing: Budget authority (gross) .................................. 159,548,000 101,224,400 121,472,100 41,632,000 39,028,500 54,147,000 117,916,000 62,195,900 67,325,100 159,548,000 101,224,400 121,472,100 276,560,000 255,245,000 255,245,000 –255,245,000 –255,245,000 –255,245,000 Outlays (gross) ............................................. 180,863,000 101,224,400 121,472,100 Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... –139,231,000 –62,195,900 –67,325,100 20,317,000 41,632,000 39,028,500 39,028,500 54,147,000 54,147,000 00.01 Income before Federal income tax ....................................................... Federal income tax ........................................................................................ 2,704,100 898,100 3,095,200 1,023,400 Net income ............................................................................................ Retained earnings, beginning of year ........................................................... Dividends on common stock .......................................................................... 1,806,000 4,782,200 (470,400) 2,071,800 6,117,800 (645,500) Retained earnings, end of year ............................................................ 6,117,800 7,545,000 67.15 68.00 Balance Sheet (in thousands of dollars) Identification code 99–2500–0–3–371 ASSETS: Investments in US securities: 1102 Federal assets: Treasury securities, par .................... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Public: direct loans (net of discount) ......................... 1603 Allowance for estimated uncollectible loans and interest (–) ...................... 1699 Value of assets related to direct loans ............ VerDate 23-JAN-95 1993 actual 1994 actual 1995 est. Budget authority: Corporate borrowing authority ..................... Spending authority from offsetting collections ......................................................... 1996 est. Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: Corporate borrowing authority ...................................... 74.47 Obligated balance, end of year: Corporate borrowing authority ...................................... 71.00 72.47 24,400 24,400 24,500 24,400 87.00 173,284,300 206,555,437 240,118,400 273,044,000 –264,200 –279,835 –277,800 –269,800 89.00 90.00 173,020,100 12:22 Jan 30, 1995 206,275,602 Jkt 162001 239,840,600 PO 00000 Budget authority (net) ...................................... Outlays (net) ..................................................... 272,774,200 Frm 00005 Fmt 3604 Sfmt 3653 E:\BUDGET\GOV.XXX pfrm03 1120 THE BUDGET FOR FISCAL YEAR 1996 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued FEDERAL NATIONAL MORTGAGE ASSOCIATION—Continued 00.02 Administration .............................................. 373,000 392,000 434,000 MORTGAGE-BACKED SECURITIES—Continued 00.91 01.01 Total operating expenses ........................ Capital investment: Mortgage purchases for portfolio ........................................................ 5,027,000 5,667,000 7,357,000 26,740,000 28,712,000 30,634,000 Status of Direct Loans (in thousands of dollars) 1994 actual Identification code 99–2501–0–3–371 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1995 est. 1996 est. ...................... 159,548,000 ...................... 101,224,400 ...................... 121,472,100 10.00 Total direct loan obligations ....................... 159,548,000 101,224,400 121,472,100 1210 1231 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: Direct loan disbursements ..... Repayments: Repayments and prepayments ... 481,880,000 180,863,000 –139,231,000 523,512,000 101,224,400 –62,195,900 562,540,500 121,472,100 –67,325,100 1290 Outstanding, end of year ............................. 523,512,000 562,540,500 31,767,000 34,379,000 37,991,000 –8,801,000 –21,957,000 –30,198,000 21,957,000 3,873,000 30,198,000 2,569,000 38,344,000 6,439,000 39.00 1150 Total obligations .......................................... Financing: 21.47 Unobligated balance available, start of year: Authority to borrow ...................................... 24.47 Unobligated balance available, end of year: Authority to borrow ...................................... 31.00 Redemption of debt .......................................... Budget authority (gross) .............................. 48,796,000 45,189,000 52,576,000 67.15 68.00 Budget authority: Net change in borrowing authorities ........... Spending authority from offsetting collections ......................................................... 35,105,000 28,366,000 32,567,000 13,691,000 16,823,000 20,009,000 31,767,000 34,379,000 37,991,000 616,687,500 According to accounting practices for private corporations, the mortgages in the pools of loans supporting the mortgagebacked securities are considered to be owned by the holders of these securities. Consequently, on the books of the Federal National Mortgage Association (Fannie Mae), these mortgages are not considered assets and the securities outstanding are not considered liabilities. However, the concepts of the budget of the U.S. Government consider these mortgages and mortgage-backed securities to be assets and liabilities, respectively, of Fannie Mae. For the purposes of this document, therefore, they are presented as assets and liabilities in the accompanying schedules. On the schedule of Status of direct loans for mortgage-backed securities, the items labeled ‘‘New loans’’ and ‘‘Recoveries: Repayments and prepayments’’ are budgetary terms. However, from the Corporation’s perspective, these items are ‘‘Amounts issued’’ and ‘‘Amounts passed through to the holders of securities’’, respectively. The forecast data contained in this material has been developed based on certain general economic assumptions prevalent in November 1993 and should not be construed as an official forecast of the Corporation’s position. Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: Authority to borrow ...................................................... 74.47 Obligated balance, end of year: Authority to borrow .......................................................... 21,020,000 5,281,000 3,706,000 –5,281,000 –3,706,000 –4,260,000 87.00 Outlays (gross) ............................................. 47,506,000 35,954,000 37,437,000 Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... –13,691,000 –16,823,000 –20,009,000 35,105,000 33,815,000 28,366,000 19,131,000 32,567,000 17,428,000 71.00 72.47 89.00 90.00 Status of Direct Loans (in thousands of dollars) 1993 actual ASSETS: Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............. 1603 Allowance for estimated uncollectible loans and interest (–) ...................... 1994 actual 1995 est. Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1996 est. 300,688,600 337,511,400 –554,400 –279,835 –277,800 –269,800 473,016,000 254,245,630 300,410,800 337,241,600 Total assets ......................... LIABILITIES: 2104 Federal liabilities: Resources payable to Treasury ............. 473,016,000 254,805,300 300,410,800 337,241,600 495,937,500 254,805,300 300,410,800 337,241,600 2999 495,937,500 254,805,300 300,410,800 337,241,600 1999 Total liabilities .................... FEDERAL HOME LOAN MORTGAGE CORPORATION PORTFOLIO PROGRAMS Program and Financing (in thousands of dollars) Identification code 99–4420–0–3–371 Program by activities: Operating expenses: 00.01 Interest expense and provision for loan loss .......................................................... VerDate 23-JAN-95 12:22 Jan 30, 1995 1994 actual 4,654,000 Jkt 162001 1995 est. 5,275,000 PO 00000 1996 est. 6,923,000 Frm 00006 1996 est. ...................... 26,740,000 ...................... 28,712,000 ...................... 30,634,000 1150 Total direct loan obligations ....................... 26,740,000 28,712,000 30,634,000 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: Direct loan disbursements ..... Repayments: Repayments and prepayments ... 47,060,000 26,740,000 –7,907,000 65,893,000 28,712,000 –8,693,000 85,912,000 30,634,000 –11,254,000 Outstanding, end of year (retained portfolio) ........................................................ 65,893,000 85,912,000 105,292,000 1290 254,525,465 Value of assets related to direct loans ............ 1995 est. 1210 1231 1251 473,570,400 1699 1994 actual Identification code 99–4420–0–3–371 Balance Sheet (in thousands of dollars) Identification code 99–2501–0–3–371 Budget authority (net) ...................................... Outlays (net) ..................................................... The Federal Home Loan Mortgage Corporation (Freddie Mac) was created under the Emergency Home Finance Act of 1970. Congress chartered Freddie Mac to provide mortgage lenders with an organized national secondary market enabling them to manage their conventional mortgage portfolio more effectively and gain indirect access to a ready source of additional funds to meet new demands for mortgages. Freddie Mac serves as a conduit facilitating the flow of investment dollars from capital market investors to mortgage lenders and, ultimately, to homebuyers increasing the amount of mortgage credit and making it more affordable. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) significantly changed the corporate governance of Freddie Mac. FIRREA, signed into law in August, 1989, replaced Freddie Mac’s three member Board of Directors (who also comprised the Federal Home Loan Bank Board) with a new 18 member Board of Directors. Thirteen of these Directors are elected annually by Freddie Mac’s shareholders, and the other five are appointed for one year terms by the President of the United States. In addition, FIRREA automatically converted Freddie Mac’s 60 million shares of non-voting, senior participating preferred stock to voting common stock, which is listed on the New York and Pacific Stock Exchanges. Fmt 3604 Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued FIRREA also introduced into Freddie Mac’s charter the following elaboration of the corporation’s mission: ‘‘to provide stability in the secondary mortgage market for home mortgages; to respond appropriately to the private capital market; and to provide ongoing assistance to the secondary market for home mortgages (including mortgages securing homes for low- and moderate-income families involving a reasonable economic return to the Corporation) by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for home mortgage financing.’’ Title XIII of the Housing and Community Development Act of 1992 (The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 or FHEFSSA) strengthened the regulatory oversight of Freddie Mac. It created the Office of Federal Housing Enterprises Oversight (OFHEO), an independent financial safety and soundness regulator within the Department of Housing and Urban Development (HUD), with HUD retaining oversight authority over Freddie Mac’s housing activities. FHEFSSA also established new minimum and risk-based capital standards and three affordable housing goals for Freddie Mac. These legislative changes enhance Freddie Mac’s current ability to identify the needs of homeowners as well as the mortgage finance industry and develop appropriate mortgage purchase and securitization programs to meet those needs in a timely fashion. Additionally, these programs and security structures have helped Freddie Mac finance one in six American homes and seven-hundred-fifty thousand apartment units at the lowest possible cost. Freddie Mac ensures that lenders throughout the country have equal access to the competitive benefits of the secondary market so that Freddie Mac’s presence is felt in every area across the country. Freddie Mac’s role in developing a nationwide network for obtaining mortgage credit involved much more than linking capital rich areas to capital deficit areas. The corporation’s mission to create more affordable mortgage credit throughout the country also required standardization and uniformity in the marketplace. Freddie Mac’s underwriting guidelines, innovative mortgage programs and mortgage backed securities are the cornerstones to Freddie Mac’s commitment to affordable housing. This commitment is borne out by the corporation’s current purchase statistics. Freddie Mac’s average single family dwelling loan purchase in 1993 was $99,500, which is less than half of Freddie Mac’s maximum loan amount. In addition, approximately 29 percent of Freddie Mac’s loans purchased in 1993 were made available to households earning at or below the median income for their geographic area. Freddie Mac is also committed to financially safe and sound management. It securitizes nearly all of its mortgages as part of its strategy to minimize interest rate risk. As the Department of the Treasury reported in its May, 1990, study of Government-Sponsored Enterprises (GSEs), Freddie Mac’s ‘‘exposure to interest rate risk is small,’’ and even under wide swings in interest rates ‘‘Freddie Mac’s net market value remains positive.’’ In addition, Freddie Mac has limited its exposure to credit risk by establishing comprehensive underwriting standards, actively monitoring compliance to these standards, and accurately measuring and pricing risks. The forecast data contained in this material represent estimates and should not be construed as an official forecast of the corporation’s future position. The data have been developed on the basis of certain economic assumptions that are reviewed and revised periodically. Consequently, the estimates are subject to forecast error and will normally differ from actual data when these become available. According to generally accepted accounting principles utilized by private corporations, the mortgages in the pools of VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00007 1121 loans supporting PCs are considered to be owned by the holder of these securities. Therefore, Freddie Mac does not show these mortgages as assets. However, the budget philosophy of the United States Government includes these mortgages and mortgages pass-through securities as assets and liabilities, respectively, of Freddie Mac. For the purpose of this document, therefore, they are presented as assets and liabilities in the accompanying schedules. On the Status of Direct Loans schedule for mortgage pass-through securities, the items labeled ‘‘Disbursements’’ and ‘‘Repayments’’ are budgetary terms. However, from Freddie Mac’s perspective, these amounts represent ‘‘Sales of PCs’’ and ‘‘Amounts passed through to PC holders,’’ respectively. Statement of Operations (in thousands of dollars) Identification code 99–4420–0–3–371 1993 actual 1994 actual 1995 est. 1996 est. 0101 0102 Revenue .................................... Expense .................................... 4,985,000 –4,248,000 6,439,000 ...................... ...................... –5,504,000 ...................... ...................... 0109 Net income .......................... 737,000 935,000 ...................... ...................... Balance Sheet (in thousands of dollars) Identification code 99–4420–0–3–371 ASSETS: Investments in US securities: 1107 Federal assets: Advances and prepayments ............ Non-Federal assets: 1201 Investments in non-Federal securities, net ................. 1206 Receivables, net .................. Other Federal assets: 1801 Cash and other monetary assets .............................. 1803 Property, plant and equipment, net ........................ 1999 1993 actual 1994 actual 1995 est. 1996 est. 693,000 756,000 831,000 915,000 17,983,000 47,060,000 15,538,000 65,893,000 29,900,000 85,912,000 38,900,000 105,292,000 14,813,000 13,652,000 6,245,000 6,765,000 1,956,000 1,868,000 1,561,000 1,454,000 82,505,000 97,707,000 124,449,000 153,326,000 Total assets ......................... LIABILITIES: 2101 Federal liabilities: Accounts payable ................................ Non-Federal liabilities: 2201 Accounts payable ................ 2202 Interest payable ................... 2203 Debt ..................................... 2207 Other .................................... 736,000 532,000 346,000 115,000 22,000 411,000 52,702,000 24,347,000 23,000 734,000 83,946,000 7,493,000 24,000 918,000 111,234,000 6,147,000 25,000 1,147,000 137,705,000 7,613,000 2999 78,218,000 92,728,000 118,669,000 146,605,000 4,287,000 4,979,000 5,780,000 6,720,000 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 3999 Total net position ................ 4,287,000 4,979,000 5,780,000 6,720,000 4999 Total liabilities and net position ............................... 82,505,000 97,707,000 124,449,000 153,325,000 Object Classification (in thousands of dollars) Identification code 99–4420–0–3–371 1994 actual 1995 est. 1996 est. 11.1 12.1 21.0 23.3 24.0 25.2 26.0 33.0 43.0 Personnel compensation: Full-time permanent ............. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and other rent .................... Printing and reproduction .............................................. Other services ................................................................ Supplies and materials ................................................. Mortgage purchases for portfolio .................................. Interest and provision for loan losses .......................... 165,000 59,000 8,000 33,000 2,000 95,000 11,000 26,740,000 4,654,000 189,000 61,000 6,000 41,000 4,000 80,000 11,000 28,712,000 5,275,000 207,000 68,000 10,000 45,000 4,000 8,000 12,000 30,714,000 6,923,000 99.9 Total obligations ................................................... 31,767,000 34,379,000 37,991,000 1 Consists Fmt 3604 of retained mortgage inventory. Sfmt 3653 E:\BUDGET\GOV.XXX pfrm03 1122 THE BUDGET FOR FISCAL YEAR 1996 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Continued 00.04 00.05 00.06 00.07 1994 actual Identification code 99–4440–0–3–371 1995 est. 1996 est. Program by activities: Capital investment: Issue (sales) of participation certification .......................................... 168,957,000 84,206,000 100,019,000 Total obligations (object class 33.0) .......... 168,957,000 84,206,000 100,019,000 Financing: 39.00 Budget authority (gross) .................................. 168,957,000 84,206,000 100,019,000 00.01 10,400 ...................... 24,240 70,664 12,512 40 26,736 73,430 Total operating expenses ........................ Capital investment: Direct loans ..................... 791,328 46,622,214 1,198,868 42,939,003 1,395,969 44,153,392 Total obligations .......................................... 47,413,542 44,137,871 45,549,361 Financing: Unobligated balance available, start of year: Authority to borrow ...................................... 24.47 Unobligated balance available, end of year: Authority to borrow ...................................... –2,424,656 –2,130,112 –2,676,516 2,130,112 2,676,516 2,896,763 39.00 Program and Financing (in thousands of dollars) 11,700 –126 23,352 82,299 10.00 MORTGAGE-BACKED SECURITIES Provision for loan losses ............................. Losses (gains) on property .......................... Income tax expense ..................................... Other expenses ............................................. 00.91 01.01 FEDERAL HOME LOAN MORTGAGE CORPORATION—Continued Budget authority (gross) .............................. 47,118,998 44,684,275 45,769,608 67.15 68.00 Budget authority: Net borrowing ............................................... Spending authority from offsetting collections ......................................................... 281,535 2,652,101 1,079,956 46,837,463 42,032,174 44,689,652 47,413,542 44,137,871 45,549,361 ...................... 164,968 164,968 –164,968 –164,968 –166,468 Outlays (gross) ............................................. 47,248,574 44,137,871 45,547,861 Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... –46,837,463 –42,032,174 –44,689,652 281,535 411,111 2,652,101 2,105,697 1,079,956 858,209 21.47 10.00 67.15 68.00 Budget authority: Corporate borrowing authority (net PC pool change) .................................................... Spending authority from offsetting collections ......................................................... 33,583,000 25,262,000 36,596,000 135,374,000 58,944,000 63,423,000 Relation of obligations to outlays: 71.00 Total obligations ............................................... 168,957,000 84,206,000 100,019,000 87.00 168,957,000 84,206,000 100,019,000 Outlays (gross) ............................................. Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... 89.00 90.00 Budget authority (net) ...................................... Outlays (net) ..................................................... –135,374,000 –58,944,000 –63,423,000 33,583,000 33,583,000 25,262,000 25,262,000 36,596,000 36,596,000 Status of Direct Loans (in thousands of dollars) Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1150 Total direct loan obligations (sale of PCs) 1995 est. 1996 est. ...................... 168,957,000 ...................... 84,206,000 ...................... 100,019,000 168,957,000 84,206,000 100,019,000 Budget authority (net) ...................................... Outlays (net) ..................................................... Status of Direct Loans (in thousands of dollars) 1994 actual Identification code 99–4120–0–3–351 1995 est. 1996 est. ...................... ...................... ...................... 46,622,214 42,939,000 44,153,392 Outstanding, end of year ............................. 430,089,000 168,957,000 –135,374,000 463,672,000 84,206,000 –58,944,000 488,934,000 100,019,000 –63,423,000 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Obligations exempt from limitation: Direct loans to the public ...................................... 463,672,000 488,934,000 525,530,000 1150 Total direct loan obligations ....................... 46,622,214 42,939,000 44,153,392 1210 1231 1251 1264 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: Direct loan disbursements ..... Repayments: Repayments and prepayments ... Write-offs for default: Other adjustments, net 12,447,552 46,457,246 –45,896,460 –1,219 13,007,119 42,939,003 –40,671,554 –128,499 15,146,069 44,151,892 –43,128,000 –6,043 1290 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................... 1231 Disbursements: Direct loan disbursements ..... 1251 Repayments: Repayments and prepayments ... 1290 87.00 89.00 90.00 1994 actual Identification code 99–4440–0–3–371 Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: Unpaid obligations: Treasury balance ........................... 74.40 Obligated balance, end of year: Unpaid obligations: Treasury balance ........................... 71.00 72.40 Outstanding, end of year ............................. 13,007,119 15,146,069 16,163,918 Balance Sheet (in thousands of dollars) 1993 actual 1994 actual 430,089,000 463,672,000 488,934,000 525,530,000 Total assets ......................... LIABILITIES: 2104 Federal liabilities: Resources payable to Treasury ............. 430,089,000 463,672,000 488,934,000 525,530,000 430,089,000 463,672,000 488,934,000 525,530,000 2999 430,089,000 463,672,000 488,934,000 525,530,000 Identification code 99–4440–0–3–371 1901 ASSETS: Other Federal assets: Other assets .................................. 1995 est. 1996 est. Note.—Direct loan balances exclude nonaccrual loans and sales contracts. 1999 Total liabilities .................... FARM CREDIT SYSTEM BANKS FOR COOPERATIVES Program and Financing (in thousands of dollars) Identification code 99–4120–0–3–351 Program by activities: Operating expenses: 00.01 Administrative expenses .............................. 00.02 Interest on borrowings ................................. 00.03 Insurance premiums .................................... VerDate 23-JAN-95 12:22 Jan 30, 1995 1994 actual 51,843 606,893 15,367 Jkt 162001 1995 est. 51,629 1,026,362 15,573 PO 00000 1996 est. 54,607 1,211,938 16,706 Frm 00008 Pursuant to the Agricultural Credit Act of 1987, 11 of 13 banks for cooperatives voted in 1988 to merge into a single National Bank for Cooperatives. Effective January 1, 1995, The National Bank for Cooperatives, one regional Bank for Cooperatives and a Farm Credit Bank, will merge to form an agricultural credit bank, called Co Bank, ACB. The banks for cooperatives lend to agriculture-related and rural utility cooperatives. As part of the Farm Credit System they are regulated by the Farm Credit Administration, an independent federal agency. The funds to finance loans are obtained primarily from sales of bonds to the public. The Farm Credit System bonds issued by the banks are not guaranteed by the U.S. Government either as to principal or interest. The Farm Credit Act of 1955 provided for eventual ownership of the banks by farmers’ cooperatives and the retirement of the U.S. Government’s investment. This was accomplished on December 31, 1968, when the remainder of the U.S. Government capital was retired. Fmt 3604 Sfmt 3623 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES FARM CREDIT SYSTEM—Continued The banks for cooperatives presently operate under authorities contained in title III of the Farm Credit Act of 1971, Public Law 92–180, as amended. Statement of Operations (in thousands of dollars) 1994 actual 1993 actual Beginning balance of outstanding system obligation ........................ 1995 est. 1996 est. Total interest income ............... Total interest expense .............. 836,343 –546,129 910,385 –606,893 1,341,789 –1,026,362 1,541,593 –1,211,938 0109 0111 0112 Net interest income ............. Other income ............................ Other expenses ......................... 290,214 18,725 –141,721 303,492 30,618 –184,435 315,427 18,831 –172,506 329,655 20,059 –184,031 0119 Net income .......................... –122,996 –153,817 –153,675 –163,972 0191 0192 Total revenues ..................... Total expenses ..................... 855,068 –687,850 941,003 –791,328 1,360,620 –1,198,868 1,561,652 –1,395,969 0199 Subtotal, net income ........... 167,218 149,675 161,752 1,277,691 165,683 1994 actual Identification code 99–4120–0–3–351 ASSETS: Non-Federal assets: 1201 Cash and investment securities ................................ 1206 Accrued interest receivable on loans .......................... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............. 1603 Allowance for estimated uncollectible loans and interest (–) ...................... 1993 actual 1994 actual 1996 est. 2,280,699 2,151,562 2,761,300 2,951,236 140,523 165,211 194,637 209,741 13,044,440 15,212,414 –163,838 –172,987 –178,535 –184,648 11,099,788 12,871,453 15,033,879 16,047,690 38,530 297,664 234,734 229,518 Total assets ......................... LIABILITIES: 2104 Federal liabilities: Resources payable to Treasury ............. Non-Federal liabilities: Accounts payable: 2201 Consolidated systemwide and other bank bonds 2201 Consolidated systemwide notes ........................... 2201 Notes payable and other interest-bearing liabilities ............................. 2202 Accrued interest payable ..... 13,559,540 15,485,890 18,224,550 19,438,185 85,496 134,073 85,349 88,769 25,000 68,167 20,607 80,460 20,000 96,665 20,000 105,146 2999 12,581,892 14,159,255 16,792,680 17,929,016 977,648 1,326,635 1,431,870 13,369,925 13,651,460 16,303,561 5,418,850 8,626,687 9,055,124 –4,242,716 –1,046,443 –4,975,284 –162,031 –7,998,515 2,023,929 –9,932,268 1,957,100 Ending balance of outstanding system obligations ................................... 13,369,925 13,651,460 16,303,561 17,383,517 Object Classification (in thousands of dollars) 1994 actual 1995 est. 1996 est. 23.2 25.2 33.0 43.0 92.0 Personnel compensation: Personnel compensation and benefits ...................................................................... Cost of space occupied and equipment ....................... Other services ................................................................ Investments and loans .................................................. Interest and dividends ................................................... Undistributed expenses .................................................. 44,478 7,365 15,367 46,622,214 606,893 117,225 43,925 7,704 15,573 42,939,003 1,026,362 105,304 46,510 8,097 16,706 44,153,392 1,211,938 112,718 99.9 Total obligations ................................................... 47,413,542 44,137,871 45,549,361 1,509,169 1803 1999 Total liabilities .................... NET POSITION: 3300 Cumulative results of operations ................................... 3999 Total net position ................ 4999 Total liabilities and net position ............................... 1996 est. 6,115,850 16,232,338 Value of assets related to direct loans ............ Other Federal assets: Property, plant and equipment, net ... 1995 est. FARM CREDIT BANKS 11,263,626 1699 1,509,169 Consolidated systemwide and other bank bonds issued ....................... Consolidated systemwide and other bank bonds retired ....................... Consolidated systemwide notes, net 11.1 1995 est. 1,431,870 12,543,234 Identification code 99–4120–0–3–351 Balance Sheet (in thousands of dollars) 1,242,387 Financing Activities (in thousands of dollars) Identification code 99–4120–0–3–351 0101 0102 Identification code 99–4120–0–3–351 1993 actual Ending balance of net worth .............................. 1123 Program and Financing (in thousands of dollars) 1994 actual Identification code 99–4160–0–3–371 Program by activities: Operating expenses: 00.01 Administrative expenses .............................. 00.02 Interest on borrowings ................................. 00.03 Insurance premiums .................................... 00.04 Provision for loan losses ............................. 00.05 Losses (gains) on property .......................... 00.06 Other expenses ............................................. 1995 est. 1996 est. 140,887 1,799,738 18,074 22,970 –11,698 383,655 101,774 2,149,701 13,278 –649 –444 247,312 98,922 2,231,413 12,425 –190 77 229,244 00.91 01.01 5,932,463 8,677,850 9,276,929 8,423,889 6,470,766 5,246,265 7,313,737 9,291,212 Total operating expenses ........................ Capital investment: Direct loans ..................... 2,353,626 20,964,887 2,510,972 20,802,893 2,571,891 20,987,869 10.00 Total obligations .......................................... 23,318,513 23,313,865 23,559,760 Financing: Unobligated balance available, start of year: Authority to borrow ...................................... 24.47 Unobligated balance available, end of year: Authority to borrow ...................................... –5,920,470 –6,660,002 –7,115,487 6,660,002 7,115,487 6,250,756 39.00 Budget authority (gross) .............................. 24,058,045 23,769,350 22,695,029 67.15 68.00 Budget authority: Net borrowing ............................................... Spending authority from offsetting collections ......................................................... 755,476 1,274,911 310,924 23,302,569 22,494,439 22,384,105 21.47 977,648 13,559,540 1,326,635 1,431,870 15,485,890 1,509,169 18,224,550 19,438,185 Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: Fund balance ............................................................. 74.90 Obligated balance, end of year: Fund balance 23,318,513 23,313,865 23,559,760 1,915,816 –2,098,517 2,098,517 –2,958,356 2,958,356 –3,938,219 87.00 Outlays (gross) ............................................. 23,135,812 22,454,026 22,579,897 Adjustments to gross budget authority and outlays: 88.40 Offsetting collections from: Non-Federal sources ......................................................... –23,302,569 –22,494,439 –22,384,105 755,476 –166,757 1,274,911 –40,413 310,924 195,792 71.00 72.90 Note.—Loans to cooperatives include nonaccrual loans and sales contracts. Statement of Changes in Net Worth (in thousands of dollars) 1993 actual 1994 actual 1995 est. 1996 est. Beginning balance of net worth ......................... 1,153,396 1,277,691 1,242,387 1,431,870 Capital stock and participations issued ......... Capital stock and participations retired ......... Surplus retired .................................................. Net income ....................................................... Cash/Dividends/Patronage Distributions .......... Other, net ......................................................... 35,767 –73,871 .................. 193,518 –31,082 –37 35,554 81,634 –75,512 –18,939 –780 .................. 147,675 161,752 –32,545 –34,964 –109,696 .................. 31,000 –82,480 .................. 165,683 –36,904 .................. Identification code 99–4120–0–3–351 VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00009 89.00 90.00 Fmt 3604 Budget authority (net) ...................................... Outlays (net) ..................................................... Sfmt 3653 E:\BUDGET\GOV.XXX pfrm03 1124 THE BUDGET FOR FISCAL YEAR 1996 FARM CREDIT SYSTEM—Continued FARM CREDIT BANKS—Continued Statement of Operations (in thousands of dollars) Status of Direct Loans (in thousands of dollars) 1995 est. 1996 est. Total interest income ............... Total interest expense .............. 2,830,303 –2,042,124 2,638,943 –1,799,738 2,827,966 –2,149,701 2,884,830 –2,231,413 Identification code 99–4160–0–3–371 1993 actual 1994 actual 1150 Total direct loan obligations ....................... Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................... 1231 Disbursements: Direct loan disbursements ..... 1251 Repayments: Repayments and prepayments ... 1263 Write-offs for default: Direct loans .................. 1290 Outstanding, end of year ............................. 1995 est. 1996 est. ...................... ...................... ...................... 0109 0111 0112 Net interest income ............. Other income ............................ Other expenses ......................... 788,179 55,966 –509,069 839,205 49,413 –553,888 678,265 15,325 –361,271 653,417 14,694 –340,478 20,964,887 20,802,893 20,987,869 Net income .......................... –453,103 –504,475 –345,946 –325,784 20,964,887 20,802,893 20,987,869 0191 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Obligations exempt from limitation: Direct loans to the public ...................................... 1994 actual 0119 Identification code 99–4160–0–3–371 0101 0102 Total revenues ..................... 2,886,269 2,688,356 2,843,291 2,899,524 0192 Total expenses ..................... –2,551,193 –2,353,626 –2,510,972 –2,571,891 0199 Total income or loss ............ 335,076 334,730 332,319 327,633 37,538,952 20,782,186 –20,614,213 5,450 37,712,375 19,943,054 –19,651,148 –1,520,082 36,484,199 20,008,006 –19,484,581 –3,513 37,712,375 36,484,199 37,004,111 Identification code 99–4160–0–3–371 Note.—Loans outstanding at end of year do not include nonaccrual loans and sales contracts. The Agricultural Credit Act of 1987 required the Federal Intermediate Credit Bank (FICB) and Federal Land Bank (FLB) in each Farm Credit District to merge into a single Farm Credit Bank by July 6, 1988. No merger occurred in the Jackson District because the FLB was in receivership. The Farm Credit Banks operate under statutory authority which combines the prior authorities of the FLB and the FICB. The 9 Farm Credit Banks are under the general supervision of the Farm Credit Administration, an independent federal agency. They serve as banks of discount for agriculture, discounting agricultural and livestock paper for, and making loans to local financing institutions such as production credit associations, agricultural credit corporations, livestock loan companies, and commercial banks. They make short-term production and long-term real estate loans to farmers and ranchers, through 66 Agricultural Credit, 30 Federal Land Credit, and 67 Production Credit Associations and 73 Federal Land Bank Associations. The bank’s lending funds are obtained primarily from the sale of Farm Credit System bonds to the public and from their own capital funds. The bonds are not guaranteed by the U.S. Government either as to principal or interest. All of their expenses are paid from their own income and are not included in the budget of the United States. Included in these expenses is the credit banks’ share of costs of the Farm Credit Administration and insurance premiums paid to the Farm Credit Insurance Corporation. In addition, legislation enacted in 1992 requires the System to accelerate repayments of certain obligations of the FCS Financial Assistance Corporation (FAC). (See discussion of FAC elsewhere in this document). In FY 1993 and 1994 Farm Credit Banks also made voluntary payments to FAC to defease their future obligations to repay FAC assistance. The banks were originally wholly owned Government corporations set up exclusively as banks of discount; however, pursuant to the Farm Credit Act of 1956, the banks became mixed-ownership corporations and were made responsible for supervising the production credit and federal land bank associations and assisting them to make sound credit available to farmers. All the capital stock of the FICB’s, from organization in 1923 to December 31, 1956, was held by the U.S. Government. The 1956 Act provided a long-range plan for the eventual ownership of the credit banks by the production credit associations and the gradual retirement of the Government’s investment in the banks. This retirement was accomplished in full on December 31, 1968. The last of the Government capital that had been invested in the FLB’s was repaid in 1947. VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Balance Sheet (in thousands of dollars) Frm 00010 ASSETS: Investments in US securities: 1103 Federal assets: Treasury securities, unamortized discount(–)/premium(+) . 1201 Non-Federal assets: Cash and investment securities .......... Net value of assets related to pre–1992 direct loans receivable and acquired defaulted guaranteed loans receivable: 1601 Direct loans, gross .............. 1603 Allowance for estimated uncollectible loans and interest (–) ...................... 1699 1803 Value of assets related to direct loans ............ Other Federal assets: Property, plant and equipment, net ... 1999 Total assets ......................... LIABILITIES: 2104 Federal liabilities: Resources payable to Treasury ............. Non-Federal liabilities: Accounts payable: 2201 Consolidated systemwide and other bank bonds 2201 Consolidated systemwide notes ........................... 2201 Notes payable and other interest-bearing liabilities ............................. 2202 Accrued interest payable ..... 2999 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 1993 actual 1994 actual 1995 est. 1996 est. 921,772 151,276 151,276 151,276 6,031,925 6,547,919 7,103,187 7,124,543 38,474,906 37,887,956 36,798,952 37,333,898 –698,215 –628,464 –598,130 –582,404 37,776,691 37,259,492 36,200,822 36,751,494 287,196 1,209,814 1,205,895 1,659,883 45,017,584 45,168,501 44,661,180 45,687,196 258,860 306,664 211,829 206,321 29,825,511 28,688,118 27,235,618 27,720,049 10,293,417 11,140,442 12,150,847 11,967,159 575,451 448,872 570,723 390,363 417,711 445,654 450,813 453,699 41,402,111 41,096,310 40,461,659 40,798,041 3,615,473 4,072,191 4,199,521 4,888,155 3999 Total net position ................ 3,615,473 4,072,191 4,199,521 4,889,155 4999 Total liabilities and net position ............................... 45,017,584 45,168,501 44,661,180 45,687,196 Statement of Changes in Net Worth (in thousands of dollars) 1993 actual 1994 actual 1995 est. 1996 est. Beginning balance of net worth ......................... 3,893,894 4,112,244 4,072,191 4,199,521 Capital stock and participations issued ......... Capital stock and participations retired ......... Surplus retired .................................................. Net income ....................................................... Cash/Dividends/Patronage Distributions .......... Other, net ......................................................... 40,798 253,670 1,456 420,831 –60,264 69,199 127,872 408,966 0 335,230 –65,176 –29,013 102,755 83,839 60 332,319 –94,272 –129,693 88,644 73,623 60 327,633 –115,722 0 Ending balance of net worth .............................. 4,112,244 4,072,191 4,199,521 4,426,513 Identification code 99–4160–0–3–371 Fmt 3604 Sfmt 3623 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES FARM CREDIT SYSTEM—Continued Financing Activities (in thousands of dollars) Identification code 99–4160–0–3–371 Beginning balance of outstanding system obligations ...................... Consolidated systemwide and other bank bonds issued ....................... Consolidated systemwide and other bank bonds retired ....................... Consolidated systemwide notes, net Other (net) ........................................ 1993 actual 1994 actual 1125 Statement of Operations (in thousands of dollars) 1995 est. 1996 est. Identification code 99–4180–0–3–351 1993 actual 1994 actual 0101 0102 Revenue ................................................... Expense .................................................... 33,891 –34,647 3,317 –3,886 2,622 –4,213 2,992 –4,358 0109 Net loss ............................................... –756 –569 –1,591 –1,366 40,708,593 39,146,996 39,902,472 39,393,554 31,605,904 32,366,611 27,514,085 31,768,601 70,871 86,595 28,046,839 1,655,265 –1,631,429 27,775,408 501,400 180,000 1996 est. 27,406,832 34,159,161 894,035 97,625 1995 est. Balance Sheet (in thousands of dollars) Identification code 99–4180–0–3–351 1993 actual 1994 actual 1995 est. 1996 est. 39,146,996 39,902,472 39,706,378 Object Classification (in thousands of dollars) Identification code 99–4160–0–3–371 1994 actual 1995 est. Personnel compensation and benefits .......................... Cost of space occupied and equipment ....................... Other services ................................................................ Land and structures ...................................................... Investments and loans .................................................. Interest and dividends ................................................... Undistributed expenses .................................................. 113,293 27,594 406,625 –11,698 20,964,887 1,799,738 18,074 75,754 26,020 246,663 –444 20,802,893 2,149,701 13,278 72,873 26,049 229,054 77 20,987,869 2,231,413 12,425 99.9 Total obligations ................................................... 23,318,513 23,313,865 553,755 668,152 464,638 473,685 553,755 668,152 451,581 461,197 542,928 658,691 2999 451,581 461,197 542,928 658,691 1996 est. 12.1 23.2 25.2 32.0 33.0 43.0 92.0 473,685 Total assets ......................... LIABILITIES: 2203 Non-Federal liabilities: Debt .... 39,393,554 464,638 1999 Ending balance of outstanding system obligations ................................... ASSETS: 1201 Non-Federal assets: Investment in securities ......................... 23,559,760 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 13,057 12,488 10,827 9,461 3999 Total net position ................ 13,057 12,488 10,827 9,461 4999 Total liabilities and net position ............................... 464,638 473,685 553,755 668,152 Object Classification (in thousands of dollars) 1994 actual Identification code 99–4180–0–3–351 FEDERAL AGRICULTURAL MORTGAGE CORPORATION 11.1 Program and Financing (in thousands of dollars) 23.2 25.2 Personnel compensation: Personnel compensation and benefits ...................................................................... Cost of space occupied ................................................. Other services ................................................................ 99.9 Total obligations ................................................... 1994 actual Identification code 99–4180–0–3–351 1995 est. 1996 est. 00.01 Program by activities: Administrative expenses and taxes ............................... 3,886 4,213 4,358 10.00 Total obligations ........................................................ 3,886 4,213 4,358 Financing: Unobligated balance available, start of year: Authority to borrow ................................................................... 24.47 Unobligated balance available, end of year: Authority to borrow ................................................................... –13,057 –12,488 –10,897 21.47 12,488 10,897 9,531 Budget authority (gross): Spending authority from offsetting collections ............................................ 3,317 2,622 2,992 71.00 Relation of obligations to outlays: Total obligations ............................................................ 3,886 4,213 4,358 87.00 Outlays (gross) .......................................................... 3,886 4,213 4,358 88.40 Adjustments to gross budget authority and outlays: Offsetting collections from: Non-Federal sources ......... –3,317 –2,622 –2,992 68.00 89.00 90.00 Budget authority (net) ................................................... ................... ................... ................... Outlays (net) .................................................................. 569 1,591 1,366 Status of Guaranteed Loans (in thousands of dollars) 1994 actual Identification code 99–4180–0–3–351 1995 est. 1996 est. Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation 82,065 123,119 163,483 2150 Total guaranteed loan commitments ........................ 82,065 123,119 163,483 2210 2231 2251 Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Repayments and prepayments ...................................... 495,712 82,065 –114,292 463,485 123,119 –62,503 524,101 163,483 –63,652 2290 Outstanding, end of year .......................................... 463,485 524,101 623,932 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 463,485 524,101 623,932 VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00011 1995 est. 1996 est. 2,081 178 1,627 2,118 166 1,929 2,173 162 2,023 3,886 4,213 4,358 Farmer Mac was established by the Agricultural Credit Act of 1987 (the Act) to facilitate creation of a secondary market for farm and rural housing mortgage loans that meet minimum credit standards. As authorized by the Act, Farmer Mac guarantees securities formed by certified loan pooling institutions. In addition, the Farmer Mac title of the Act was amended by the 1990 farm bill to authorize Farmer Mac to purchase, pool, and securitize the guaranteed portions of Farmers Home Administration (FmHA) guaranteed farmer program loans. These two areas of secondary market authority have been organized by Farmer Mac into two distinct programs designated as ‘‘Farmer Mac I’’ and ‘‘Farmer Mac II,’’ respectively. The Farmer Mac title was further amended in 1991 to clarify Farmer Mac’s authority to issue debt obligations, to provide for the establishment of minimum capital standards for Farmer Mac, and to expand rulemaking authority for the Farm Credit Administration. In general, the agricultural secondary market is intended to attract new capital for financing agricultural real estate, including rural housing, foster increased long-term fixed-rate lending, and provide greater liquidity to agricultural lenders. Increased competition among agricultural lenders, stimulated by access to the secondary market, should result in more favorable rates and terms for agricultural borrowers. Farmer Mac is governed by a 15 member Board of Directors. Ten Board members are elected by stockholders, including five by the Farm Credit System, and five are appointed by the President subject to Senate confirmation. FINANCING Funding for Farmer Mac comes from four sources: common and preferred stock; debt obligations; guarantee fees and a $1.5 billion line of credit with the U.S. Treasury. The actuarial soundness of the guarantee fee is reviewed annually by the Comptroller General in a report to Congress. The soundness of Farmer Mac I pools will be determined through a multi-stage process. First, loans must comply with Fmt 3604 Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 1126 THE BUDGET FOR FISCAL YEAR 1996 FARM CREDIT SYSTEM—Continued 39.00 FEDERAL AGRICULTURAL MORTGAGE CORPORATION—Continued the credit underwriting and appraisal standards. Second, pools of eligible loans must meet Farmer Mac’s standards for geographic and commodity diversification and be subjected to economic stress analysis to determine pool performance characteristics. In the case of Farmer Mac II, only the FmHA guaranteed portions of the loans will be pooled by Farmer Mac. Available funds of Farmer Mac are invested in U.S. agency securities or other high-grade commercial paper. No stock dividends are allowed under the Act until the Board determines that an adequate loss reserve has been funded to back Farmer Mac guarantees. GUARANTEES Farmer Mac provides a guarantee of timely payment of principal and interest on securities backed by pools of eligible loans. These securities are not guaranteed by the United States, and are not ‘‘government securities’’. Under Farmer Mac I, guaranteed securities must be supported by a minimum ten percent cash reserve or subordinated class of securities (retained by the originators and poolers or sold to investors). The Farmer Mac guarantee cannot be triggered for payment until the loss reserve, in addition to the subordinate securities or cash reserve for a pool (Farmer Mac I only), has been exhausted. Farmer Mac guaranteed mortgage-backed securities are subject to registration requirements established by the Securities and Exchange Commission under the 1933 and 1934 Securities Acts. REGULATION Farmer Mac is federally regulated by the Farm Credit Administration (FCA). Under 1991 amendments to the Act, regulation is performed by the FCA’s Office of Secondary Market Oversight. The Office is responsible for examination of and rulemaking for Farmer Mac (after a transition period), including the determination of the stress test for Farmer Mac’s risk-based capital. The 1991 amendments also clarified FCA’s regulatory authority, including enforcement of Farmer Mac’s regulatory capital standards. FEDERAL HOME LOAN BANK SYSTEM FEDERAL HOME LOAN BANKS Program and Financing (in thousands of dollars) Identification code 99–4200–0–3–371 Program by activities: Operating expenses: 00.01 Administrative expenses including FHFB assessments ............................................ 00.02 Affordable Housing program ........................ 00.03 Interest on consolidated obligations and loss on debt retirement ........................... 00.04 Interest on members’ deposits and other borrowings ............................................... 00.05 Payment to REFCORP ................................... 00.06 Cash dividends on capital stock ................. 00.91 1994 actual 1995 est. 1996 est. 223,924 93,569 243,000 100,000 243,000 100,000 6,871,364 10,000,000 10,000,000 861,780 300,000 446,854 1,000,000 300,000 742,481 1,000,000 300,000 767,000 8,797,491 12,385,481 12,410,000 01.01 01.04 01.05 Total operating expenses ........................ Capital investment: Investment in bank premises ...................... Advances ...................................................... Repurchase of capital stock ........................ 6,676 712,901,697 2,457,688 8,000 725,000,000 2,750,050 8,000 725,000,000 3,000,000 01.91 Total capital investment ......................... 715,366,061 727,758,050 728,008,000 Total obligations .......................................... Financing: 21.47 Unobligated balance available, start of year: Authority to borrow ...................................... 24.47 Unobligated balance available, end of year: Authority to borrow ...................................... 724,163,552 740,143,531 740,418,000 –41,675,574 –66,276,270 –79,450,000 66,276,270 79,450,000 79,450,000 10.00 VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00012 Budget authority (gross) .............................. Budget authority: Net new borrowing (change in long-term liabilities) ................................................ Spending authority from offsetting collections ......................................................... 67.15 68.00 748,764,248 753,317,261 740,418,000 39,565,117 12,393,743 ...................... 709,199,131 740,923,518 740,418,000 724,163,552 740,143,531 740,418,000 18,133,145 9,159,995 3,560,000 Relation of obligations to outlays: Total obligations ............................................... Obligated balance, start of year: 72.47 Authority to borrow (obligated balance net of U.S. Treasury and agency securities held) ........................................................ 72.91 U.S. Securities: Treasury and agency securities ........................................................ Obligated balance, end of year: 74.47 Authority to borrow ...................................... 74.91 U.S. Securities: Par value ............................ 8,872,717 15,782,590 16,000,000 –9,159,995 –15,782,590 –3,560,000 –16,000,000 –3,560,000 –16,000,000 87.00 Outlays (gross) ............................................. 726,226,829 745,526,116 740,418,000 Adjustments to gross budget authority and outlays: Offsetting collections from: Non-Federal sources ......................................................... –709,199,131 –740,923,518 –740,418,000 Budget authority (net) ...................................... Outlays (net) ..................................................... 39,565,117 17,027,698 12,393,743 4,602,598 ...................... ...................... 71.00 88.40 89.00 90.00 Status of Direct Loans (in thousands of dollars) 1994 actual Identification code 99–4200–0–3–371 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ................................ 1131 Direct loan obligations exempt from limitation 1995 est. 1996 est. ...................... 712,901,697 ...................... 725,000,000 ...................... 725,000,000 1150 Total direct loan obligations ....................... 712,901,697 725,000,000 725,000,000 1210 1231 1251 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................... Disbursements: Direct loan disbursements ..... Repayments: Repayments and prepayments ... 99,365,562 712,901,697 –695,700,561 116,566,698 725,000,000 –725,566,698 116,000,000 725,000,000 –725,000,000 1290 Outstanding, end of year ............................. 116,566,698 116,000,000 116,000,000 The 12 Federal Home Loan Banks were chartered by the Federal Home Loan Bank Board under the authority of the Federal Home Loan Bank Act of 1932. Subsequent to the passage of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, the FHLBanks are under the supervision of the Federal Housing Finance Board. The common mission of the FHLBanks is to facilitate the extension of credit through their members in order to provide access to housing for all Americans and to improve the quality of their communities. To accomplish this mission, the FHLBanks make loans, called advances, and provide other credit products such as letters of credit to member institutions. Advances and letters of credit must be fully secured by eligible collateral and long-term advances may be made only for the purpose of providing funds for residential housing finance. Additionally, specialized community-related advance programs provide funds for community reinvestment and affordable housing programs. All regulated financial depositories and insurance companies engaged in residential housing finance are eligible for membership. Each FHLBank operates in a geographic district designated by the Board and together the FHLBanks cover all of the United States as well as Puerto Rico, the Virgin Islands, and Guam. It is important to note that the FHLBanks’ credit programs operate at a profit, and that combined financial statements of the FHLBanks prepared in accordance with generally accepted accounting principles (‘‘GAAP’’) are publicly available. In these budget statements, gross cash disbursements for advances are presented as ‘‘obligations’’ and gross cash proceeds from repayment of advances are presented as ‘‘financing.’’ The accompanying statement of ‘‘Cumulative Balance of Di- Fmt 3604 Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES FEDERAL HOME LOAN BANK SYSTEM—Continued rect Loans Outstanding’’ also presents cash flows related to advance activity. Advances outstanding on September 30, 1994 totaled approximately $116.2 billion, a net increase of approximately $17.3 billion from the September 30, 1993 level of $98.9 billion. The principal source of funds for the lending operation is the sale of consolidated obligations to the public. On September 30, 1994, $170 billion of these obligations were outstanding. The consolidated obligations are not guaranteed by the U.S. Government as to principal or interest. Other sources of lendable funds include a portion of members’ deposits as determined by Board policy. Deposits totaled $15 billion and total capital amounted to $12.9 billion as of September 30, 1994. Funds not immediately used for advances to members are invested until such times as needed. The capital stock of the Federal Home Loan Banks is owned entirely by the members. Initially the U.S. Government purchased stock of the banks in the amount of $125 million. The banks had repurchased the Government’s investment in full by mid-1951. The entire operating expenses of the FHLBanks are paid from their own income and are not included in the budget of the United States. Included in these expenses is the assessment by the Federal Housing Finance Board to cover the Board’s administrative and other costs. FIRREA contains provisions for the establishment of an Affordable Housing Program (AHP) by each FHLBank. Each FHLBank has developed its AHP to enhance the availability of housing for very low-, low- and moderate-income families by providing direct subsidies or subsidized advances for members who use the funds for qualifying housing projects. The FHLBank system set aside for its AHPs a total of $100 million in calendar year 1994. The forecast data for 1995 and 1996 contained in this material represents estimates and should not be construed as an official forecast of the FHLBanks System’s future position. Statement of Operations (in thousands of dollars) 1995 est. 1996 est. Revenue .................................... Expense (excludes payments to REFCORP) ............................ 8,161,374 8,985,250 12,410,000 12,410,000 –7,312,478 –8,050,637 –11,343,000 –11,343,000 Net income .......................... 848,896 934,613 1,067,000 1,067,000 Identification code 99–4200–0–3–371 0101 0102 0109 1993 actual 1994 actual Balance Sheet (in thousands of dollars) Identification code 99–4200–0–3–371 ASSETS: Federal assets: Investments in US securities: 1102 Treasury securities, net .. 1104 Agency excluding MBS .... Non-Federal assets: 1201 Investments in non-Federal securities, net ................. 1206 Accounts receivable ............. 1401 Net value of assets related to post–1991 direct loans receivable: Direct loans receivable, gross .................... Other Federal assets: 1801 Cash and other monetary assets .............................. 1803 Property, plant and equipment, net ........................ 1901 Other assets ........................ 1999 Total assets ......................... LIABILITIES: 2101 Federal liabilities: REFCORP and AHP ............................... Non-Federal liabilities: 2201 Accounts payable ................ 2202 Interest payable ................... VerDate 23-JAN-95 1993 actual 1994 actual 1995 est. 1996 est. 5,102,306 3,770,411 4,239,400 11,543,190 4,000,000 12,000,000 4,000,000 12,000,000 59,008,102 1,376,073 74,685,760 2,052,739 82,000,000 2,000,000 82,000,000 2,000,000 99,365,562 116,566,698 116,000,000 116,000,000 699,584 448,287 500,000 500,000 155,316 888,313 155,832 42,988 160,000 100,000 160,000 100,000 170,365,667 209,734,894 216,760,000 2203 1127 Debt ..................................... Other: Deposit funds and other borrowings .................. Other ............................... 130,450,107 169,814,039 182,000,000 182,000,000 25,597,737 101,033 23,666,397 302,218 18,000,000 510,000 18,000,000 510,000 Total liabilities .................... NET POSITION: 3200 Invested capital ....................... 158,832,042 196,809,363 203,560,000 203,560,000 11,533,625 12,925,531 13,200,000 13,200,000 2207 2207 2999 3999 Total net position ................ 11,533,625 12,925,531 13,200,000 13,200,000 4999 Total liabilities and net position ............................... 170,365,667 209,734,894 216,760,000 216,760,000 Object Classification (in thousands of dollars) Identification code 99–4200–0–3–371 1994 actual 11.1 12.1 21.0 23.3 24.0 25.2 31.0 32.0 33.0 41.0 Personnel compensation: Full-time permanent Civilian personnel benefits .............................. Travel and transportation of persons .............. Communications, utilities, and other rent ....... Printing and reproduction ................................ Other services ................................................... Equipment ........................................................ Land and structures ......................................... Advances and other investments ..................... Subsidies (Affordable Housing Program) ......... Interest and dividends: 43.0 Interest and changes in other assets ............. 43.0 REFCORP interest ............................................. 92.0 Repurchase of capital stock (gross) ................ 88,467 23,407 5,322 21,642 8,019 70,044 7,023 6,676 712,901,697 93,569 95,000 26,000 8,000 22,000 9,000 75,000 8,000 8,000 725,000,000 100,000 95,000 26,000 8,000 22,000 9,000 75,000 8,000 8,000 725,000,000 100,000 8,179,998 300,000 2,457,688 11,742,481 300,000 2,750,050 11,767,000 300,000 3,000,000 99.9 724,163,552 740,143,531 740,418,000 Total obligations .......................................... 1995 est. 1996 est. FINANCING CORPORATION The Financing Corporation (FICO) is a mixed-ownership government corporation, chartered by the Federal Home Loan Bank Board pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987, as amended (the ‘‘Act’’). FICO’s sole purpose was to function as a financing vehicle for the FSLIC Resolution Fund, formerly the Federal Savings and Loan Insurance Corporation (FSLIC). FICO operates under the supervision and control of the Federal Housing Finance Board (the ‘‘Board’’). Pursuant to the Act, FICO was authorized to issue debentures, bonds and other obligations subject to limitations contained in the Act, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC Resolution Fund, or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 terminated the FICO’s borrowing authority. The Act provided formulas pursuant to which the Federal Home Loan Banks made capital contributions to FICO at the direction of the Board for the purchase of FICO capital stock. FICO used the proceeds received from the sales of such capital stock to purchase non-interest bearing securities for deposit in a segregated account as required by the Act. The non-interest bearing securities held in the segregated account will be the primary source of repayment of the principal of the obligations. Securities in the segregated account are kept separate from other FICO accounts and funds but are not specifically pledged as collateral for the payment of obligations. The primary source of payment of interest on the obligations will be the receipt of assessments imposed on and collected from institutions’ accounts which are insured by the Savings Association Insurance Fund (the ‘‘SAIF’’). 216,760,000 Statement of Operations (in thousands of dollars) Identification code 99–4033–0–3–373 1993 actual 1994 actual 1995 est. 1996 est. 265,912 308,104 350,000 350,000 0101 0102 Revenue ................................................... Expense .................................................... 880,692 –795,186 888,306 –795,204 896,587 –795,204 905,918 –795,205 561,051 1,856,202 196,266 2,522,339 200,000 2,500,000 200,000 2,500,000 0109 Net income .......................................... 85,506 93,102 101,383 110,713 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00013 Fmt 3604 Sfmt 3633 E:\BUDGET\GOV.XXX pfrm03 1128 THE BUDGET FOR FISCAL YEAR 1996 FEDERAL HOME LOAN BANK SYSTEM—Continued FINANCING CORPORATION—Continued will be held in the Principal Fund and are the primary source of repayment of the principal of the obligations at maturity. Balance Sheet (in thousands of dollars) Identification code 99–4033–0–3–373 ASSETS: Federal assets: Investments in US securities: 1102 Segregated accounts investment ..................... 1103 Segregated accounts, unamortized discount(–)/ premium(+) ................ Other Federal assets: 1801 Cash, cash equivalents, and interest receivable .......... 1901 Other assets ........................ 1999 1993 actual 1994 actual 1995 est. Statement of Operations (in thousands of dollars) 1996 est. Identification code 99–4029–0–3–373 1993 actual 1994 actual 1995 est. 1996 est. 0101 0102 8,290,984 8,290,984 8,290,984 8,290,984 Revenue .................................... Expense .................................... 2,845,727 –2,627,508 2,875,000 –2,625,995 2,897,316 –2,625,992 2,919,707 –2,625,996 0109 Net income .......................... 218,219 249,005 271,324 293,711 Balance Sheet (in thousands of dollars) –7,241,116 –7,148,010 –7,046,627 –6,935,915 526,743 13,966 343,875 13,394 343,866 12,822 343,866 12,250 Total assets ......................... LIABILITIES: Non-Federal liabilities: 2202 Interest payable ................... 2203 Debt ..................................... 2207 Other .................................... 1,590,577 1,500,243 1,601,045 1,711,185 235,515 8,138,642 336,206 235,515 8,139,893 151,515 235,515 8,141,144 149,682 235,515 8,142,397 147,857 2999 8,710,363 8,526,923 8,526,341 8,525,769 680,000 680,000 680,000 680,000 Total liabilities .................... NET POSITION: 3100 FICO capital stock purchased by FHLBanks ........................ 3300 Cumulative results of operations ................................... Other: 3600 FSLIC capital stock ............. 3600 FSLIC capital certificates .... 370,215 463,321 564,704 –7,567,500 –602,500 –7,567,500 –602,500 –7,567,500 –602,500 3999 Total net position ................ –7,119,785 –7,026,679 –6,925,296 –6,814,583 4999 Total liabilities and net position ............................... ASSETS: Federal assets: Investments in US securities: 1102 Principal fund account investment .................. 1103 Principal fund account, unamortized discount (–)/premium (+) ......... 1206 Non-Federal assets: Assessments receivable for interest expense .......................... Other Federal assets: 1801 Cash and other monetary assets .............................. 1901 Other assets ........................ 1993 actual 1994 actual 1995 est. 1996 est. 29,995,180 29,995,180 29,995,180 29,995,180 –26,941,559 –26,694,896 –26,428,272 –26,139,248 880,811 880,812 880,806 880,806 13 554 6 535 6 518 6 499 3,934,999 4,181,637 4,448,238 4,737,243 675,417 –7,567,500 –602,500 Identification code 99–4029–0–3–373 1999 1,500,244 1,601,045 1,711,186 RESOLUTION FUNDING CORPORATION The Resolution Funding Corporation (the ‘‘REFCORP’’) is a mixed-ownership government corporation established by Title V of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The sole purpose of REFCORP was to provide financing for the Resolution Trust Corporation (the ‘‘RTC’’). Pursuant to FIRREA, REFCORP was authorized to issue debentures, bonds, and other obligations, subject to limitations contained in the Act and regulations established by the Thrift Depositor Protection Oversight Board. The proceeds of the debt (less any discount, plus any premium, net of issuance cost) were used solely to purchase nonredeemable capital certificates of the RTC or to refund any previously issued obligations. REFCORP is subject to the general oversight and direction of the Thrift Depositor Protection Oversight Board. The dayto-day operations of REFCORP are under the management of a three-member Directorate comprised of the Director of the Office of Finance of the Federal Home Loan Banks and two members selected by the Oversight Board from among the presidents of the twelve Federal Home Loan Banks (‘‘the FHLBanks’’). Members of the Directorate serve without compensation, and REFCORP is not permitted to have any paid employees. REFCORP and its Directorate are subject to regulations, orders and directions of the Thrift Depositor Protection Oversight Board. FIRREA and the regulations adopted by the Thrift Depositor Protection Oversight Board provide formulas pursuant to which the Federal Home Loan Banks made capital contributions to REFCORP’s Principal Fund and continue to make interest payments on outstanding REFCORP obligations. FIRREA also provides that the U.S. Treasury cover any interest shortfall. Funds designated for the Principal Funds were used to purchase zero-coupon bonds. The zero-coupon bonds VerDate 23-JAN-95 12:22 Jan 30, 1995 Jkt 162001 PO 00000 Frm 00014 880,812 30,081,039 880,812 30,078,678 880,812 30,076,307 880,812 30,073,943 2999 1,590,578 Total assets ......................... LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................ 2202 Accrued interest payable on long-term obligations ..... 2203 Debt ..................................... 30,961,862 30,959,495 30,957,119 30,954,755 11 5 ...................... ...................... Total liabilities .................... NET POSITION: 3100 Appropriated capital ................ 3200 Capital contributions from other sources ....................... 3300 Cumulative results of operations ................................... 3600 RTC nonredeemable capital certificates ........................... 2,512,827 2,512,827 2,512,827 2,512,827 –31,286,325 –31,286,325 –31,286,325 –31,286,325 690,125 939,130 1,208,108 1,499,477 1,056,509 1,056,509 1,056,509 1,056,509 3999 Total net position ................ –27,026,864 –26,777,859 –26,508,881 –26,217,512 4999 Total liabilities and net position ............................... 3,934,998 4,181,636 4,448,238 4,737,243 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Program and Financing (in thousands of dollars) 1993 actual Identification code 99–4450–0–3–803 Program by activities: Board operating expenses: 00.01 Monetary and economic policy .................................. 00.02 Services to financial institutions and the public 00.03 Supervision and regulation of financial institutions 00.04 System policy direction and oversight ...................... 1994 est. 1995 est. 63,121 2,998 48,739 27,260 65,778 3,273 59,397 29,329 72,681 3,616 65,631 32,407 00.91 01.01 Subtotal: Board operating expenses ..................... Office of Inspector General operating expenses ........... 142,118 2,550 157,777 2,841 174,335 3,064 10.00 Total obligations ........................................................ 144,668 160,618 177,399 Financing: 21.40 Unobligated balance available, start of year: Treasury balance ...................................................................... 24.40 Unobligated balance available, end of year: Treasury balance ...................................................................... 2,221 966 6,085 –966 –6,085 –6,277 145,923 155,499 177,207 68.00 Fmt 3604 Budget authority (gross): Spending authority from offsetting collections ............................................ Sfmt 3643 E:\BUDGET\GOV.XXX pfrm03 GOVERNMENT-SPONSORED ENTERPRISES Relation of obligations to outlays: Total obligations ............................................................ Obligated balance, start of year: Unpaid obligations: Treasury balance ....................................................... 74.40 Obligated balance, end of year: Unpaid obligations: Treasury balance ....................................................... 87.00 71.00 72.40 Outlays (gross) .......................................................... BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM—Continued Balance Sheet (in thousands of dollars) 144,668 160,618 177,399 12,074 13,153 14,690 –13,153 –14,690 –18,623 143,589 159,081 173,466 Adjustments to gross budget authority and outlays: Offsetting collections from: 88.00 Federal sources ......................................................... 88.40 Non-Federal sources .................................................. –121 –145,802 –121 –155,378 –121 –177,086 88.90 –145,923 –155,499 –177,207 89.00 90.00 Total, offsetting collections .................................. Budget authority (net) ................................................... ................... ................... ................... Outlays (net) .................................................................. –2,334 3,582 –3,741 The figures presented may differ from other Board financial material because they are prepared in accordance with OMB guidelines which vary from the Board’s budget and accounting procedures. The Federal Reserve System operates under the provisions of the Federal Reserve Act of 1913, as amended, and other acts of Congress. Program.—To carry out its responsibilities under the Act, the Board determines general monetary, credit, and operating policies for the System as a whole and formulates the rules and regulations necessary to carry out the purposes of the Federal Reserve Act. The Board’s principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve banks and member banks. Financing.—Under the provisions of section 10 of the Federal Reserve Act, the Board of Governors levies upon the Federal Reserve banks, in proportion to their capital and surplus, an assessment sufficient to pay its estimated expenses. The Board, under the Act, determines and prescribes the manner in which its obligations are incurred and its expenses paid. Funds derived from assessments are deposited in the Federal Reserve Bank of Richmond, and the Act provides that such funds ‘‘shall not be construed to be Government funds or appropriated moneys.’’ No Government appropriation is required to support operations of the Board. The information presented pertains to Board operations only. Expenditures made on behalf of the Federal Reserve banks for production, issuance, retirement, and shipment of Federal Reserve notes are not included, since they are reimbursed in full by the Federal Reserve banks. 1993 actual 1994 est. 145,923 –144,668 155,499 –160,618 177,207 –177,399 0109 Net income or loss (–) .............................................. 1,255 –5,119 –192 Jkt 162001 1995 est. 2,686 2,778 3,264 12,187 109,248 8,605 118,691 12,346 131,302 1999 124,121 130,074 146,912 15,839 Total assets ............................................................... LIABILITIES: 2201 Non-Federal liabilities: Accounts payable and accrued liabilities .................................................................... 17,468 21,887 Total liabilities .......................................................... NET POSITION: 3100 Appropriated capital ...................................................... 3200 Invested capital ............................................................. 15,839 17,468 21,887 –966 109,248 –6,085 118,691 –6,277 131,302 3999 Total net position ...................................................... 108,282 112,606 125,025 4999 Total liabilities and net position .............................. 124,121 130,074 146,912 2999 Object Classification (in thousands of dollars) 1993 actual Identification code 99–4450–0–3–803 1994 est. 1995 est. 11.1 11.3 11.5 BOARD OPERATING EXPENSES Direct obligations: Personnel compensation: Full-time permanent ............................................. Other than full-time permanent ........................... Other personnel compensation ............................. 86,120 849 1,412 90,130 889 1,477 99,991 986 1,639 11.9 12.1 13.0 21.0 22.0 23.3 24.0 25.1 25.2 26.0 31.0 42.0 Total personnel compensation ......................... Civilian personnel benefits ....................................... Benefits for former personnel ................................... Travel and transportation of persons ....................... Transportation of things ........................................... Communications, utilities, and other rent ................ Printing and reproduction ......................................... Advisory and assistance services ............................. Other services ............................................................ Supplies and materials ............................................. Equipment ................................................................. Insurance claims and indemnities ........................... 88,381 13,450 370 4,072 530 7,222 2,362 1,424 11,087 4,431 8,740 49 92,496 14,997 421 4,613 290 8,562 2,954 2,020 13,164 4,819 13,386 55 102,616 15,589 548 4,748 194 9,567 2,928 1,757 17,012 5,488 13,828 60 99.0 25.2 Subtotal: Board operating expenses ..................... Allocation Acct—Direct Obligations: Other services ..... 142,118 2,550 157,777 2,841 174,335 3,064 99.9 Total obligations ................................................... 144,668 160,618 177,399 PO 00000 Frm 00015 1993 actual Identification code 99–4450–0–3–803 1995 est. Revenue .......................................................................... Expense .......................................................................... 12:22 Jan 30, 1995 1994 est. ASSETS: 1206 Non-Federal assets: Receivables, net ........................... Other Federal assets: 1801 Fund balance with Treasury and cash: Cash in bank ...................................................................... 1803 Property, plant and equipment, net .......................... Personnel Summary 0101 0102 VerDate 23-JAN-95 1993 actual Identification code 99–4450–0–3–803 Statement of Operations (in thousands of dollars) Identification code 99–4450–0–3–803 1129 1005 1011 Total compensable workyears: Full-time equivalent of overtime and holiday hours Exempt Full-time equivalent employment ..................... 1 Includes Fmt 3604 39 1,645 32, 32, and 32 positions respectively for the Office of Inspector General. Sfmt 3604 E:\BUDGET\GOV.XXX pfrm03 1994 est. 39 1,655 1995 est. 39 1,655
@FedFRASER