Financial Audit Manual: Checklist for Reports Prepared Under the 
CFO Act--Revised 2003 Exposure Draft (01-OCT-03, GAO-04-44G).	 
                                                                 
In July 2001, the U.S. General Accounting Office (GAO) and the	 
President's Council on Integrity and Efficiency (PCIE) issued the
GAO/PCIE Financial Audit Manual (FAM). In April 2003, we issued  
an update to the FAM. The FAM provides guidance for performing	 
financial statement audits of federal entities. The FAM is a key 
tool for enhancing accountability over taxpayer-provided	 
resources. GAO and the PCIE are committed to keeping the FAM	 
current. With this goal in mind,we are now requesting comments on
an exposure draft that will revise the Checklist for Reports	 
Prepared Under the CFO Act (CFO Checklist). This update will	 
replace the current CFO Checklist in the FAM Volume II, Section  
1004. Once finalized,the updated CFO Checklist will be designated
in the FAM Volume II at section 1050.				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-44G 					        
    ACCNO:   A08663						        
  TITLE:     Financial Audit Manual: Checklist for Reports Prepared   
Under the CFO Act--Revised 2003 Exposure Draft			 
     DATE:   10/01/2003 
  SUBJECT:   Auditing procedures				 
	     Auditing standards 				 
	     Auditors						 
	     Financial records					 
	     Internal audits					 
	     Internal controls					 

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GAO-04-44G

October 2003

Dear Colleague:

In July 2001, the U.S. General Accounting Office (GAO) and the President's
Council on Integrity and Efficiency (PCIE) issued the GAO/PCIE Financial
Audit Manual(FAM). In April 2003, we issued an update to the FAM. The FAM
provides guidance for performing financial statement audits of federal
entities. The FAM is a key tool for enhancing accountability over
taxpayer-provided resources.

GAO and the PCIE are committed to keeping the FAM current. With this goal
in mind, we are now requesting comments on an exposure draft that will
revise the Checklist for Reports Prepared Under the CFO Act (CFO
Checklist). This update will replace the current CFO Checklist in the FAM
Volume II, Section 1004. Once finalized, the updated CFO Checklist will be
designated in the FAM Volume II at section 1050.

The exposure draft of the CFO Checklist can be accessed at either the GAO
web site (www.gao.gov) or the PCIE web site
(www.ignet.gov/pande/audit.html). Instructions for providing comments on
the draft CFO Checklist are attached and can also be found at the GAO and
PCIE web sites. Please include the rationale for any comments offered so
that we may fully understand the need for any modifications. The due date
for comments is December 5, 2003.

You may address questions to either Mary Mohiyuddin (GAO, 202-512-3087,
[email protected]) or Curtis Crider (PCIE, 202-208-5724,
[email protected]).

We appreciate your attention to this very important project.

Attachment

                                 Exposure Draft

          Checklist for Reports Prepared Under CFO Act - Revised 2003,
     Section 1050, Volume II of Joint GAO/PCIE Financial Audit Manual (FAM)

                            Instructions for Comment

We welcome comments from everyone. GAO and the PCIE encourage the widest
possible distribution of the exposure draft of the FAM update.

Agency inspectors general should encourage their independent public
accounting firms to review and comment.

Please e-mail comments with detailed rationale to
[email protected]. Also include your name, agency name, phone
number, and e-mail address.

If you have questions, you may contact:

o  Mary A. Mohiyuddin (GAO, 202-512-3087, [email protected])

o  Curtis Crider (PCIE, 202-208-5724, [email protected])

United States General Accounting Office President's Council on Integrity
and Efficiency

                                    GAO/PCIE

FINANCIAL AUDIT MANUAL

Checklist for Reports Prepared Under the CFO Act - Revised 2003 Exposure Draft

                            GAO-04-44G October 2003

Contents

Abbreviations 2
Sections
I Overview 3
II General Items Related to the Financial Statements 6
III Balance Sheet 13
IV Statement of Net Cost 104
V Statement of Changes in Net Position 148
VI Statement of Budgetary Resources 161
VII Statement of Financing 171
VIII Statement of Custodial Activity 181
IX Notes to Financial Statements (Significant Accounting Policies) 191
X Supplementary Information 193

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft
Page 1

Abbreviations

AcSEC Accounting Standards Executive Committee
AICPA American Institute of Certified Public Accountants
CFO Act Chief Financial Officers Act of 1990
COTS commercial off-the-shelf
CSRS Civil Service Retirement System
FASAB Federal Accounting Standards Advisory Board
FASB Financial Accounting Standards Board
FDIC Federal Deposit Insurance Corporation
FERS Federal Employees Retirement System
FFMIA Federal Financial Management Improvement Act of 1996
FHA Federal Housing Administration
FIFO first-in, first-out
FY fiscal year
GAAP Generally Accepted Accounting Principles
GDP gross domestic product
GMRA Government Management and Reform Act of 1994
GPRA Government Performance and Results Act of 1993
HI Hospital Insurance (Medicare Part A)
IMF International Monetary Fund
Imple. Guide Implementation Guide
IRS Internal Revenue Service
LIFO last-in, first-out
MD&A Management's Discussion and Analysis
MRS Military Retirement System
NRV net realizable value
OASDI Old Age, Survivors, and Disability Insurance (Social Security)
OMB Office of Management and Budget
OPEB Other Postemployment Benefits
ORB Other Retirement Benefits
PP&E Property, Plant, and Equipment
RRB Railroad Retirement Benefits
RSI Required Supplementary Information
RSSI Required Supplementary Stewardship Information
SFAS Statement of Financial Accounting Standards
SFFAC Statements of Federal Financial Accounting Concepts
SFFAS Statements of Federal Financial Accounting Standards
SGL U.S. Government Standard General Ledger
SMI Supplementary Medical Insurance (Medicare Part B)
SOP Statement of Position
TVA Tennessee Valley Authority
UI unemployment insurance
UTF Unemployment Trust Fund

 October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 2

Section I Overview

Introduction

The Chief Financial Officers (CFO) Act of 1990 and the Government
Management and Reform Act of 1994 require, among other mandates, that
agencies' chief financial officers submit annual reports to their agency
heads and to the Office of Management and Budget (OMB). These annual
reports are to contain audited financial statements of their agencies. The
financial statements are to be presented in accordance with generally
accepted accounting principles (GAAP).1

This checklist is being issued to assist agencies in preparing these
statements and auditors in auditing them. Use of this checklist is not a
requirement. Rather, it is intended to help provide for a systematic,
organized, and structured approach to preparing or reviewing agency
financial statements. Furthermore, it should be noted that, while the
questions contained in the checklist are taken from authoritative sources,
the checklist itself is not authoritative, nor is it a comprehensive
guide. Preparers and auditors should also consult financial management
regulations for the individual agencies, as the regulations may have
specific guidance when the standards allow alternatives or management
flexibility.

Checklist Organization

The checklist has 10 sections: an overview section, a section related to
general items in the financial statements, a section for each of the six
financial statements, and two additional sections. The six sections
reflecting the financial statements are organized by the line items in
financial statements to allow the user to proceed through each statement
from the beginning to the end. The final two sections cover (1)
disclosures in the notes to the financial statements related to
significant accounting policies and (2) required supplementary stewardship
information and required supplementary information.

Since the financial statements are interrelated, some questions concerning
line items in one financial statement may also pertain to line items in
another statement. For example, the questions covering loans receivable in
the balance sheet section may also deal with matters related to interest
income and subsidy expense appearing in the statements of financing and
net cost sections. Because of these relationships, our general
organizational approach aggregates related information so that questions
on related line items appearing in more than one financial statement are
covered only in the first financial statement section in which the line
item appears. For example, questions concerning interest income and
subsidy expense would appear only in the balance sheet section. Similarly,
questions related to the notes to the financial statements section would
also appear only under the line item of the initial financial statement.

1The American Institute of Certified Public Accountants recognizes the
federal accounting standards promulgated by the Federal Accounting
Standards Advisory Board (FASAB) as generally accepted accounting
principles.

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft
Page 3

Except for sections I, II, VI, and IX, the first page of each section
contains a list showing the number of questions in the section. This
checklist has 784 questions as follows.

General Items Related to the Financial Statements 24 Balance Sheet 354
Statement of Net Cost 178 Statement of Changes in Net Position 40
Statement of Budgetary Resources 27 Statement of Financing 27 Statement of
Custodial Activity 27 Notes to Financial Statements (Significant

Accounting Policies) 5 Supplementary Information 102

Authoritative Guidance

Each question in this guide is referenced to a source. The sources cited
are (1) the Statements of Federal Financial Accounting Standards (SFFAS)
and (2) OMB Bulletin 01-09, Form and Content of Agency Financial
Statements.

FASAB statements include Statements of Federal Financial Accounting
Concepts (SFFAC) and Statements of Federal Financial Accounting Standards
(SFFAS). The three approved accounting concept statements are #1
Objectives of Federal Financial Reporting, 1993, #2 Entity and Display,
1995, and #3 Management's Discussion and Analysis, 1999. The 23 SFFAS
standards2 covered in this checklist are:

1. Accounting for Selected Assets and Liabilities, 1993.

2. Accounting for Direct Loans and Loan Guarantees, 1993.

3. Accounting for Inventory and Related Property, 1993.

4. Managerial Cost Accounting Concepts and Standards, 1995.

5. Accounting for Liabilities of the Federal Government, 1995.

6. Accounting for Property, Plant, and Equipment, 1995.

7. Accounting for Revenue and Other Financing Sources, 1996.

8. Supplementary Stewardship Reporting, 1996.

9.	Deferral of the Effective Date of Managerial Cost Accounting Standards
for the Federal Government in SFFAS No. 4, 1997.

10. Accounting for Internal Use Software, 1998.

11. Amendments to Accounting for Property, Plant, and Equipment -
Definitional Changes, 1998.3

12. Recognition of Contingent Liabilities Arising from Litigation, 1998.

13. Deferral of Paragraph 65.2 - Material Revenue-Related Transactions
Disclosures, 1999.

14. Amendments to Deferred Maintenance Reporting, 1999.

15. Management's Discussion and Analysis, 1999.

16.	Amendments to Accounting for Property, Plant, and Equipment -
Measurement and Reporting for Multi-Use Heritage Assets, 1999.

17. Accounting for Social Insurance, 1999.

2FASAB promulgates accounting standards after considering the financial
and budgetary information needs of Congress, executive agencies, other
users of federal financial information, and comments from the public.

3SFFAS 11 was rescinded in its entirety by SFFAS 23.

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft
Page 4

18. Amendments to Accounting Standards For Direct Loans and Loans
Guarantees, 2000.

19. Technical Amendments to Accounting Standards for Direct Loans and Loan
Guarantees, 2001.

20.	Elimination of Certain Disclosures Related to Tax Revenue Transactions
by the Internal Revenue Service, Customs and Others, 2001.

21. Reporting Corrections of Errors and Changes in Accounting Principles,
2001.

22. Change in Certain Requirements for Reconciling Obligations and Net
Cost of Operations, 2001.

23. Eliminating the Category National Defense Property, Plant, and
Equipment, 2003.

SFFAC 4, Intended Audience and Qualitative Characteristic for the
Consolidated Financial Report of the United States Government, and SFFAS
24, Selected Standards for the Consolidated Financial Report of the United
States Government, are not covered in this checklist, as this checklist is
intended for use at the agency reporting level, and is not to be used for
the financial report of the U.S. government.

Subsequent to updating this checklist, FASAB issued SFFAS 25,
Reclassification of Stewardship Responsibilities and Eliminating the
Current Services Assessment. The principal effect of SFFAS 25 is to
present certain social insurance information4 as a basic financial
statement rather than as Required Supplementary Stewardship Information
(RSSI), effective for fiscal year 2005. This main revision is not taken
into consideration with this CFO checklist update, and will be considered
in the next update of the CFO checklist. However, the elimination of
current services assessment information and reclassifying risk assumed
information from RSSI to Required Supplementary Information (RSI),
effective for fiscal year 2003 are covered in this checklist.

SFFAS 7 Implementation Guide to Accounting for Revenue and Other Financing
Sources, 1996, is also covered in this checklist. OMB Bulletin 01-09
provides the detailed requirements for the form and content of agency
financial statements.

How to Use This Guide

To the right of each question are two columns. The first column provides
for a "yes," "no," or "N/A" (not applicable) answer to each question. The
second column provides for an explanation of the answer to each question.
A "yes" answer should indicate that the financial statements contain the
information asked by the question. For each "yes" answer, the explanation
column should include the page number or location in the financial
statements where the information can be found. Also, any other information
pertinent to the question and the response should be provided in the
explanation column.

An "N/A" answer might indicate that the question does not apply to the
federal entity. For example, most federal agencies do not administer loan,
loan guarantee, or loan insurance programs and, therefore, do not have
credit program receivables and related property. Consequently, the
questions on these receivables, property, and subsidies would not apply. A
simple explanation indicating that the reporting entity does not
administer loan programs would appear in the explanation column of the
first question in the series.

A "no" answer indicates that the information asked for in the question is
not included in the financial statements, notes, or supplementary
information, respectively. The explanation column should describe in
sufficient detail why the information is not included. The questions in
the checklist are worded such that in virtually all instances, a no
response, would indicate a particular area or certain information is not
presented in accordance with the FASAB approved statements and OMB
Bulletin 01-09.

4The information required by paragraphs 27(3) and 32(3) of SFFAS 17 shall
be presented as a basic financial statement.

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft
Page 5

Section II
General Items Related to the Financial Statements

There are 24 questions in this section. All the questions relate to the
overall financial statements and are not further divided into categories.

               General Items (1 - 24)             Yes, No, or N/A Explanation 
1. Does the entity's annual financial                          
statement consist of the following items? a.                   
management's discussion and analysis (MD&A) of                 
the reporting entity b. basic statements and                   
related notes c. required supplementary                        
stewardship information (RSSI) d. required                     
supplementary information (RSI) e. other                       
accompanying information (OAI) that provides                   
users of the financial statements with a                       
better understanding of the entity's programs                  
and the extent to which program objectives are                 
achieved (OMB Bulletin 01-09, p. 4, section                    
1.5)                                                           

 October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 6

Section II
General Items Related to the Financial Statements

               General Items (1 - 24)             Yes, No, or N/A Explanation 
2. Do the basic statements include? a. Balance                 
Sheet b. Statement of Net Cost c. Statement of                 
      Changes in Net Position d. Statement of                     
Budgetary Resources e. Statement of Financing                  
      f. Statement of Custodial Activity (OMB                     
      Bulletin 01-09, pp. 4 & 5, section 1.5)                     

 October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 7

Section II
General Items Related to the Financial Statements

                 General Items (1 - 24)               Yes, No, or Explanation 
                                                          N/A     
3. Does the entity use the following hierarchy as              
its sources of guidance in preparing its financial             
statements? a. FASAB Statements and                            
Interpretations as well as American Institute of               
Certified Public Accountants (AICPA) and Financial             
Accounting Standards Board (FASB) pronouncements               
if made applicable to federal government entities              
by a FASAB Statement or Interpretation b. FASAB                
technical bulletins and, if specifically made                  
applicable to federal government entities by AICPA             
and cleared by FASAB, AICPA Industry Audit and                 
Accounting Guides and AICPA Statements of Position             
c. AICPA Accounting Standards Executive Committee              
(AcSEC) Practice Bulletins if specifically made                
applicable to federal government entities and                  
cleared by FASAB, as well as Technical Releases of             
the Accounting and Auditing Policy Committee of                
FASAB d. Implementation guides published by FASAB              
staff and practices that are widely recognized and             
prevalent in the federal government e. In the                  
absence of a pronouncement covered by federal                  
Generally Accepted Accounting Principles (GAAP) or             
another source of established accounting                       
principles, other accounting literature, depending             
on its relevance in the circumstances.5 (OMB                   
Bulletin 01-09, p. 2, section 1.2 & p. 13, section             
2.1, item B)                                                   
4. Does the entity present comparative information             
and related footnote disclosures for the current               
year and prior year for the six basic financial                
statements, and MD&A? (OMB Bulletin 01-09, p. 5,               
section 1.6 & p. 13, section 2.1, item F)                      

5Other accounting literature includes for example, FASAB Concept
Statements; Governmental Accounting Standards Board (GASB) Statements,
Interpretations, Technical Bulletins, and Concept Statements; and AICPA
Issue Papers.

 October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 8

Section II
General Items Related to the Financial Statements

               General Items (1 - 24)             Yes, No, or N/A Explanation 
       5. Does the entity present comparative                     
      information in the RSSI and RSI when the                    
information would be meaningful to the user of                 
the financial report? (OMB Bulletin 01-09, p.                  
                  5, section 1.6)                                 
6. Has the agency prepared quarterly interim                   
unaudited financial statements,6 without                       
footnotes for itself and for each of its major                 
components within 45 days after the end of the                 
quarter and submitted them to OMB's Office of                  
Federal Financial Management and the agency's                  
Resource Management Office? (OMB Bulletin                      
01-09, p. 14, section 2.1, item G)                             
7. Do the quarterly interim statements include                 
full accruals and are intra-entity                             
transactions eliminated? (OMB Bulletin 01-09,                  
p. 14, section 2.1, item G)                                    
8. Are these interim statements prepared on a                  
comparative basis?7 (OMB Bulletin 01-09, p.                    
14, section 2.1, item G)                                       
      9. To the extent that information is not                    
available on a quarterly basis, has the entity                 
      developed reliable, alternative means of                    
     estimating quarterly amounts and balances?                   
(OMB Bulletin 01-09, p. 14, section 2.1, item                  
                         G)                                       

6Quarterly statements may be limited to a balance sheet, statement of net
cost, and statement of budgetary resources; MD&A, RSSI, and RSI are not
required for quarterly reporting.

7That is, interim financial statements comparative for the year-to-date
ending March 31, 2003 for fiscal year 2003 and for fiscal year 2004
comparative for the year to date ending December 31, 2003, March 31, 2004,
and June 30, 2004.

 October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 9

Section II
General Items Related to the Financial Statements

              General Items (1 - 24)             Yes, No, or    Explanation   
                                                     N/A       
10. When an entity presents disaggregated                   
information for component organizations,                    
does the total column for the entity as a                   
whole reflect consolidated totals net of                    
intra-entity transactions, except for the                   
Statement of Budgetary Resources, which is                  
presented on a combined basis? (OMB Bulletin                
01-09, p. 14, section 2.1, item H)                          
        When a reporting entity presents its financial statements in a single
    column format, the statements are referred to as consolidated statements.
        With the exception of the Statement of Budgetary Resources, financial
        statements that use a multicolumn format to present information on an
entity's major components or lines of business as well as the consolidated
    amounts are referred to as consolidating statements. (OMB Bulletin 01-09,
                                                  p. 14, section 2.1, item H)
11. Are intra-entity transactions needed to                 
arrive at the consolidated amounts presented                
in a column on the face of the consolidating                
statements? (OMB Bulletin 01-09, p. 14, item                
H)                                                          
12. Has the entity provided assurance of the                
following? a. information in the financial                  
statements is presented in accordance with                  
federal GAAP b. the underlying records fully                
support the information (OMB Bulletin 01-09,                
p. 14, section 2.1, item J)                                 
13. Does the reporting entity include                       
franchise funds and other intragovernmental                 
support revolving funds among the activities                
covered by its financial statements? (OMB                   
Bulletin 01-09, p. 15, section 2.1, item K &                
p. 113, section 11.6)                                       

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 10

Section II
General Items Related to the Financial Statements

                 General Items (1 - 24)               Yes, No, or Explanation 
                                                          N/A     
14. If information about the assets, liabilities,              
costs, and revenues of these franchise funds and               
intragovernmental support revolving funds are not              
separately reported on the entity's basic                      
financial statements, then is condensed                        
information reported as required supplemental                  
information in accordance with the applicable                  
SFFASs and required segment information? (OMB                  
Bulletin 01-09, p. 15, section 2.1, item K & p.                
113, section 11.6)                                             
15. Does the entity report its assets,                         
liabilities, and net position by the lines                     
displayed in the illustrative Balance Sheet and                
Statement of Changes in Net Position in OMB                    
Bulletin 01-09? (OMB Bulletin 01-09, p.15, section             
2.1, item L)                                                   
16. If the entity aggregates such illustrated line             
items in reporting at the departmental level, is               
the composition of the aggregated line items                   
disclosed? (OMB Bulletin 01-09, p.15, section 2.1,             
item L)                                                        
17. Conversely, if the entity disaggregates such               
line items in its departmental statements, does                
the entity report or disclose the total of the                 
disaggregated line items? (OMB Bulletin 01-09,                 
p.15, section 2.1, item L)                                     
      18. Are line items, which are immaterial but                
related in nature, combined? (OMB Bulletin 01-09,              
              p. 15, section 2.1, item M)                         
19. Are discrete balances of an immaterial amount              
designated as "other?" (OMB Bulletin 01-09, p. 15,             
                 section 2.1, item M)"                            

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 11

Section II
General Items Related to the Financial Statements

               General Items (1 - 24)             Yes, No, or N/A Explanation 
      20. If not, are these material balances                     
    separately reported and designated by name?                   
(OMB Bulletin 01-09, p. 15, section 2.1, items                 
                       M & N)                                     
    21. Are the statement line items, footnotes,                  
and lines or columns in footnotes that do not                  
apply or are not informative for the reporting                 
    entity excluded? (OMB Bulletin 01-09, p. 15,                  
                section 2.1, item O)                              
22. Do schedule totals presented in the                        
footnotes, in support of amounts presented in                  
financial statements, agree with the amounts                   
presented in the body of the financial                         
statements? (OMB Bulletin 01-09, p. 15,                        
section 2.1, item P)                                           
23. When presenting dollar amounts in the                      
statements and the notes, does the entity do                   
the following? a. round dollar amounts to the                  
nearest whole dollar, thousand, or million                     
based upon informative value to the reporting                  
entity b. maintain the chosen rounding level                   
throughout the financial statements and                        
footnotes c. ensure that individual line items                 
add up to the totals by adjusting the line                     
items for the differences created by the                       
rounding process rather than adjusting column                  
totals (OMB Bulletin 01-09, p. 16, section                     
2.1, item Q)                                                   
24. Are footnotes sequentially numbered? (OMB                  
    Bulletin 01-09, p. 16, section 2.1, item S)                   

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 12

Section III Balance Sheet

The questions related to the balance sheet are contained under 23 line
items. The question numbers related to

each line item follow. Question numbers General items

Assets

1. Fund Balance with Treasury

2. Investments

3. Accounts Receivable (Net)

4. Interest Receivable (Net)

5. Credit Program Receivables

6. Cash and Other Monetary Assets

7. Inventory and Related Property

8. Operating Materials and Supplies

9. Stockpile Materials

10. Seized Property

11. Forfeited Property

12.	Goods Held Under Price Support and
Stabilization Programs

13. General Property, Plant, and Equipment (Net)

14. Software

15. Other Assets

Liabilities

16. Liabilities in General

17. Accounts Payable and Interest Payable

18. Liabilities for Loan Guarantees

19. Lease Liabilities

20. Federal Debt and Related Interest

21.	Pensions, Other Retirement Benefits, and
Postemployment Benefits

22. Other Liabilities

Net Position

23.	Unexpended Appropriations and Cumulative
Results of Operations

1-6

7 - 22 23 -32 33 -49 50 -54 55 - 96 97 - 102 103 -125 126 -137 138 -150
151 -158 159 -172

173 -186 187 -233 234 -262 263 -268

269 - 272 273 -280 281 -294 295 -299 300 -310

311 -318 319 -352

353 -354

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft
Page 13

Section III Balance Sheet

          General Items (1 - 6)           Yes, No, or N/A      Explanation    
The Balance Sheet presents, as of a specific time, amounts of future
economic benefits owned or managed by the reporting entity exclusive of
items subject to stewardship reporting (assets), amounts owed by the
entity (liabilities), and amounts that comprise the difference (net
position). (SFFAC 2, par. 57; OMB Bulletin 01-09, p. 17, section 3.1)
    1. Are entity and nonentity assets                       
combined on the face of the balance                       
sheet?8 (OMB Bulletin 01-09, p. 17,                       
section 3.1 and p. 19, section 3.3)                       
     2. Are the amounts and types of                         
nonentity assets disclosed in a note                      
    to the financial statements? (OMB                        
Bulletin 01-09, p. 17, section 3.1;                       
    p. 19, section 3.3; p. 56, section                       
                   9.2)                                      
Liabilities covered by budgetary resources are liabilities covered by
realized budgetary resources as of the balance sheet date. Budgetary
resources encompass not only new budget authority but also other resources
available to cover liabilities for specified purposes in a given year.
Available budgetary resources include (1) new budget authority, (2)
unobligated balances of budgetary resources at the beginning of the year
or net transfers of prior year balances during the year, (3) spending
authority from offsetting collections (credited to an appropriation or
fund account), and (4) recoveries of unexpired budget authority through
downward adjustments of prior year obligations. Liabilities are considered
covered by budgetary resources if they are to be funded by permanent
indefinite appropriations or borrowing authority, which have been enacted
and signed into law as of the balance sheet date, provided that the
resources may be apportioned by OMB without further action by the Congress
and without a contingency having to be met first. (OMB Bulletin 01-09, p.
24, section 3.4)                     
3. Are liabilities covered by                             
budgetary resources and liabilities                       
not covered by budgetary resources                        
combined on the face of the balance                       
sheet? (OMB Bulletin 01-09, p. 17,                        
section 3.1, p. 24, section 3.4)                          

8Entity assets are assets that the reporting entity has authority to use
in its operations. Nonentity assets are assets that are held by an entity
but are not available to the entity, for example, income tax receivables.
(OMB Bulletin 01-09, p. 19, section 3.3).

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 14

Section III Balance Sheet

               General Items (1 - 6)              Yes, No, or    Explanation  
                                                      N/A       
    4. Are liabilities not covered by budgetary                 
       resources disclosed in a note to the                     
financial statements? (OMB Bulletin 01-09, p.                
17, section 3.1 & pp. 78 & 79, section 9.12)                 
     5. Does the Balance Sheet display assets,                  
liabilities, and net position? (OMB Bulletin                 
            01-09, p. 18, section 3.2)                          
Intragovernmental assets arise from transactions among federal entities.
Intragovernmental assets represent claims of a federal entity against
other federal entities. Intragovernmental liabilities are claims against
the reporting entity by other federal entities. (OMB Bulletin 01-09, p.
19, section 3.3; p. 24, section 3.4)          
        6. Are intragovernmental assets and                     
       liabilities reported separately from                     
      transactions with non-federal entities,                   
including the Federal Reserve and government                 
sponsored enterprises?9 (OMB Bulletin 01-09,                 
     p. 19, section 3.3 & p. 24, section 3.4)                   

9Government sponsored enterprises are federally chartered but privately
owned and operated entities.

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Section III
Balance Sheet

Assets Fund Balance with Treasury (7 - 22) Yes, No, or N/A   Explanation   
A federal entity's fund balance with the Treasury is the aggregate amount
of funds in the entity's accounts with Treasury for which the entity is
authorized to make expenditures and pay liabilities. Fund balance with
Treasury includes clearing account balances and the dollar equivalent of
foreign currency account balances. From the reporting entity's
perspective, a fund balance with Treasury is an asset. From the
perspective of the federal government as a whole, the fund balance is
neither an asset nor a liability; it instead represents a commitment to
make resources available to federal departments, agencies, programs, and
other entities. (SFFAS 1, par. 31 & 32)    
      7. Is the fund balance with Treasury                    
    reported as an intragovernmental asset?                   
(SFFAS 1, par. 31; OMB Bulletin 01-09, p.                  
                18, section 3.2)                              
8. Are amounts disclosed as fund balances                  
       in deposit, suspense, and clearing                     
accounts that are not available to finance                 
    entity activities reported as nonentity                   
      assets? (OMB Bulletin 01-09, p. 19,                     
                  section 3.3)                                
    9. Are foreign currency account balances                  
    reported on the balance sheet translated                  
      into U.S. dollars at exchange rates                     
    determined by the Treasury and effective                  
at the financial reporting date? (SFFAS 1,                 
      par. 32; OMB Bulletin 01-09, p. 19,                     
                  section 3.3)                                

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Section III Balance Sheet

       Assets Fund Balance with Treasury (7 - 22)     Yes, No, or Explanation 
                                                          N/A     
10. Does the entity's fund balance with Treasury               
also include the following? a. clearing account                
balances b. balances for direct loan and loan                  
guarantee activities held in the credit reform                 
program, financing, and liquidating accounts c.                
funds actually borrowed from Treasury under                    
statutory authority d. the dollar equivalent of                
foreign currency account balances (SFFAS 1, par.               
32 & 35)                                                       
    11. Does the entity's fund balance with Treasury              
    exclude contract authority10 or unused authority              
             to borrow? (SFFAS 1, par. 34)                        
12. Does the entity record an increase in its fund             
balance with Treasury when it does at least one of             
the following? a. receives appropriations,                     
reappropriations, continuing resolutions,                      
appropriation restorations, and allocations b.                 
receives transfers and reimbursements from other               
agencies c. borrows from the Treasury, Federal                 
Financing Bank, or other entities d. collects and              
credits amounts to its appropriations or fund                  
accounts that the entity is authorized to spend or             
use to offset its expenditures (SFFAS 1, par. 33)              

10Contract authority is a statutory authority under which contracts or
other obligations may be entered into prior to receiving an appropriation
for the payment of obligations.

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Section III Balance Sheet

       Assets Fund Balance with Treasury (7 - 22)     Yes, No, or Explanation 
                                                          N/A     
13. Does the entity record a decrease in its fund              
    balance with Treasury when each of the following              
        occurs? a. disbursements are made to pay                  
     liabilities or to purchase assets, goods, and                
        services b. investments are made in U.S.                  
securities c. expired appropriations are canceled              
d. transfers and reimbursements are made to other              
entities or to the Treasury e. appropriations are              
      sequestered or rescinded (SFFAS 1, par. 36)                 
14. Does the entity distinguish funds within fund              
balance with Treasury as the obligated balance not             
yet disbursed11 and the unobligated balance12 in a             
note to the financial statements? (SFFAS 1, par.               
37; OMB Bulletin 01-09, p. 57, section 9.3, item               
B)                                                             
        15. Are fund balances that agencies were                  
    authorized to use disclosed by fund type (e.g.,               
trust funds, revolving funds, appropriated funds,              
    other fund types)? (OMB Bulletin 01-09, pp. 56 &              
                57, section 9.3, item A)                          
    16. Are any restrictions on unobligated balances              
    related to future use disclosed? (SFFAS 1, par.               
    38; OMB Bulletin 01-09, p. 57, section 9.3, item              
                           B)                                     
17. Does the entity explain any discrepancies                  
between fund balance with Treasury in its general              
ledger accounts and the balance in the Treasury's              
accounts and explain the causes of the                         
discrepancies in footnotes to the financial                    
statements?13 (SFFAS 1, par. 39; OMB Bulletin                  
01-09, p. 57, section 9.3, item C)                             

11The obligated balance not yet disbursed is the amount of funds against
which budgetary obligations have been incurred, but disbursements have not
been made.

12The unobligated balance is the amount of funds available to the entity
against which no claims have been recorded. (SFFAS 1, par. 38)

13Discrepancies due to time lag should be reconciled and discrepancies due
to error should be corrected when financial reports are prepared.

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Page 18

Section III
Balance Sheet

       Assets Fund Balance with Treasury (7 - 22)     Yes, No, or Explanation 
                                                          N/A     
18. Does the entity disclose any other information             
necessary for understanding the nature of the fund             
balances, including information on unused funds in             
expired appropriations that are returned to                    
Treasury at the end of a fiscal year? (SFFAS 1,                
par. 39; OMB Bulletin 01-09, p. 57, section 9.3,               
item C)                                                        
     19. Are balances in deposit accounts, such as                
collections pending litigation or funds being held             
by the entity in the capacity of a banker or agent             
    for others, disclosed under "other fund types?"               
    (OMB Bulletin 01-09, p. 57, section 9.3, item A)              
20. If, however, any of the balances under "other              
       fund types" are material, are they listed                  
    separately? (OMB Bulletin 01-09, p. 57, section               
                      9.3, item A)                                
         21. Is other information necessary for                   
understanding the nature of the fund balances with             
     Treasury disclosed? (OMB Bulletin 01-09, p.57,               
                  section 9.3, item C)                            
    22. Are unexpended appropriations recognized as               
     capital and included under funds with Treasury               
    when they are made available for apportionment?               
                   (SFFAS 7, par. 71)                             

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Section III
Balance Sheet

         Assets Investments (23 - 32)         Yes, No, or N/A    Explanation  
Investments in federal (i.e., treasury) securities include (1)
nonmarketable par value Treasury securities, (2) market-based Treasury
securities expected to be held to maturity, (3) marketable Treasury
securities expected to be held to maturity, and (4) securities issued by
other federal entities. Nonfederal securities include those issued by
state and local governments, private corporations, and
government-sponsored enterprises. (SFFAS 1, par. 62; OMB Bulletin 01-09,
p. 20, section 3.3)                       
23. Are investments in federal securities                    
reported separately from investments in                      
nonfederal securities? (SFFAS 1, par. 67;                    
OMB Bulletin 01-09, p. 20, section 3.3)                      
24. Are investments in federal securities                    
initially recorded and reported at their                     
acquisition cost or amortized acquisition                    
    cost (less an allowance for losses, if                      
       any)? (SFFAS 1, par. 68 & 69; OMB                        
      Bulletin 01-09, p. 20, section 3.3)                       
25. Are investments in federal securities                    
     acquired in exchange for nonmonetary                       
     assets recognized at the fair market                       
    value of either the securities acquired                     
or the assets given up, whichever is more                    
definitively determinable? (SFFAS 1, par.                    
                      68)                                       
26. Subsequent to acquisition, are                           
investments in federal securities                            
reported at their carrying amount (i.e.,                     
acquisition cost) adjusted for amortized                     
premium or discount? (SFFAS 1, par.                          
70-71; OMB Bulletin 01-09, pp. 59 & 60,                      
section 9.5)                                                 
27. Is the interest method (i.e.,                            
effective interest rate multiplied by the                    
carrying amount) used in amortizing the                      
premium or discount over the life of the                     
treasury security? (SFFAS 1, par. 71)                        
    28. Is the market value of market-based                     
     and marketable securities disclosed?                       
    (SFFAS 1, par. 72; OMB Bulletin 01-09,                      
           pp. 59 & 60, section 9.5)                            

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Section III
Balance Sheet

            Assets Investments (23 - 32)          Yes, No, or N/A Explanation 
       29. Are investments grouped by type of                     
    security, such as marketable or market-based                  
      Treasury securities? (SFFAS 1, par. 72)                     
30. Are investment securities, which are                       
initially expected to be held to maturity,                     
reclassified as securities available for sale                  
or early redemption, if significant                            
unforeseeable circumstances cause a change in                  
the entity's intent or ability to hold these                   
securities to maturity? (SFFAS 1, par. 72 &                    
73; OMB Bulletin 01-09, pp. 59 & 60, section                   
9.5)                                                           
31. If so, is the market value of such                         
securities disclosed? (SFFAS 1, par. 72 & 73;                  
OMB Bulletin 01-09, pp. 59 & 60, section 9.5)                  
       32. Does the entity disclose any other                     
     information relative to understanding the                    
      nature of reported investments, such as                     
permanent impairments? (OMB Bulletin 01-09, p.                 
              60, section 9.5, item B)                            

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Section III
Balance Sheet

    Assets Accounts Receivable (Net) (33 - 49)    Yes, No, or    Explanation  
                                                      N/A       
33. Is a receivable recognized when a federal                
entity establishes a claim to cash or other                  
assets against other entities based on legal                 
provisions or when goods or services are                     
provided? (SFFAS 1, par. 41)                                 
    34. If the exact amount of a receivable is                  
      unknown, is a reasonable estimate made?                   
                (SFFAS 1, par. 41)                              
35. Are receivables from federal entities                    
reported as intragovernmental receivables,                   
and reported separately from receivables from                
nonfederal entities? (SFFAS 1, par. 42; OMB                  
Bulletin 01-09, p. 19, section 3.3)                          
Entity receivables are amounts due from other federal or nonfederal
entities that the federal entity is authorized by law to include in its
obligational authority or to offset its expenditures and liabilities upon
collection. Nonentity receivables are amounts that the entity is to
collect on behalf of the federal government or other entities, and the
entity is not authorized to spend. (SFFAS 1, par. 43)
36. Are receivables not available to an                      
entity disclosed in a note to the financial                  
statements as nonentity assets, separate from                
receivables available to the entity? (SFFAS                  
1, par. 43; OMB Bulletin 01-09, p. 19,                       
section 3.3 & p. 56, section 9.2)                            
37. Are losses on receivables recognized when                
it is more likely than not (greater than a 50                
percent chance of occurrence) that the                       
receivables will not be totally collected?                   
(SFFAS 1, par. 44)                                           
         38. Is an allowance for estimated                      
    uncollectible amounts recognized to reduce                  
the gross amount of receivables to their net                 
      realizable value, and is this allowance                   
       reestimated on each annual financial                     
reporting date and when information indicates                
       that the latest estimate is no longer                    
            correct? (SFFAS 1, par. 45)                         

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Section III
Balance Sheet

       Assets Accounts Receivable (Net) (33 - 49)     Yes, No, or Explanation 
                                                          N/A     
     39. Is an allowance for uncollectible amounts                
    based on an analysis of both individual accounts              
    receivable and groups of accounts receivable as               
prescribed by the standards? (SFFAS 1, par. 47-51;             
                   SFFAS 7, par. 56)                              
      40. Are accounts that represent significant                 
     amounts individually analyzed to determine the               
           loss allowance? (SFFAS 1, par. 47)                     
41. Is the loss estimation for individual accounts             
based on the following? a. debtor's ability to pay             
b. debtor's payment record and willingness to pay              
     c. probable recovery of amounts from secondary               
      sources including liens, garnishments, cross                
collections, and other applicable collection tools             
                   (SFFAS 1, par. 47)                             
42. If information is not available to make a                  
reliable assessment of losses on an individual                 
account basis or if the nature of the receivables              
does not lend itself to individual account                     
analysis, are the potential losses assessed on a               
group basis? (SFFAS 1, par. 48)                                
43. If potential losses are assessed on a group                
basis, are the receivables separated into groups               
of homogeneous accounts with similar risk                      
characteristics? (SFFAS 1, par. 49-51)                         
44. Does the reporting entity disclose the                     
following? a. major categories of accounts                     
receivable by amount and type b. methodology used              
to estimate the allowance for uncollectible                    
amounts c. dollar amount of the allowance for                  
uncollectible accounts (SFFAS 1, par. 52; OMB                  
Bulletin 01-09, p. 60, section 9.6)                            

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Section III
Balance Sheet

     Assets Accounts Receivable (Net) (33 - 49)   Yes, No, or N/A Explanation 
45. Is an account receivable arising from a                    
nonexchange transaction recognized when a                      
collecting entity establishes a specifically                   
identifiable, measurable, and legally                          
enforceable claim to cash or other assets                      
through its established assessment processes                   
to the extent the amount is measurable? (SFFAS                 
7, par. 53, footnote 9, 61-63)                                 
46. Are assessments recognized as accounts                     
receivable if an enforceable claim for taxes                   
and duties exists in the following instances?                  
a. tax returns filed by the taxpayer without                   
sufficient payment b. customs documents filed                  
by the importer without sufficient payment c.                  
taxpayer agreements to assessments at the                      
conclusion of an audit or to substitute for a                  
tax return (or importer agreements to                          
supplemental assessments) d. court actions                     
determining an assessment e. taxpayer (or                      
importer) agreements to pay an assessment on                   
an installment plan f. receivables determined                  
to be currently not collectible, but with                      
future collection potential (SFFAS 7, par. 53,                 
54, 170, & 171)                                                
    47. Is an inter-entity receivable recognized                  
    when (1) a legally enforceable claim exists                   
    between a collecting entity and a recipient                   
entity for the transfer or repayment of taxes                  
    or duties and (2) payment of such a claim is                  
    probable and measurable? (SFFAS 7, par. 60)                   
    Compliance assessments are proposed assessments by the collecting entity
in definitive amounts, but with which the taxpayer (or importer) still has
      the right to disagree or object. (SFFAS 7, par. 55.1) Preassessment
      works-in-process are assessments not yet officially asserted by the
collecting entity that are subject to a taxpayer's right to conference in
         response to initial information notices. (SFFAS 7, par. 55.2)

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Section III
Balance Sheet

       Assets Accounts Receivable (Net) (33 - 49)     Yes, No, or Explanation 
                                                          N/A     
48. Do nonexchange-related accounts receivable for             
taxes and duties exclude the following? a. amounts             
    received or due with tax returns received after               
    the close of the reporting period b. compliance               
      assessments c. preassessment work-in-process                
                   (SFFAS 7, par. 54)                             
49. Are compliance assessments reclassified and                
recognized as account receivables in the following             
instances? a. if the taxpayer files an amended tax             
return b. when customs' protest or retention                   
period lapses c. when court action or an appeal                
finally determines the assessment d. if taxpayer               
(or importer) agrees to pay currently or through               
an installment agreement e. if an offer in                     
compromise is accepted (SFFAS 7, par. 55.1 &                   
178-180)                                                       

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Section III Balance Sheet

       Assets Interest Receivable (Net) (50 - 54)     Yes, No, or Explanation 
                                                          N/A     
50. Is interest receivable recognized for the                  
amount of interest income earned but not received              
for the accounting period, including interest                  
earned on investments in interest-bearing                      
securities? (SFFAS 1, par. 53; OMB Bulletin 01-09,             
pp. 20 & 21, section 3.3)                                      
     51. Is interest receivable also recognized on                
     outstanding accounts receivable and other U.S.               
government claims against persons and entities in              
     accordance with provisions in 31 U.S.C. 3717,                
Interest and Penalty Claims?14 (SFFAS 1, par. 53)              
    52. Does interest receivable exclude interest on              
      accounts receivable or investments that are                 
    determined to be uncollectible unless the entity              
actually collects interest? (SFFAS 1, par. 54; OMB             
       Bulletin 01-09, pp. 20 & 21, section 3.3)                  
53. Is interest accrued on uncollectible accounts              
receivable not disclosed until (1) the interest                
payment requirement has been waived by the federal             
government or (2) the related debt has been                    
written off? (SFFAS 1, par. 55)                                
    54. Is interest receivable from federal entities              
       accounted for and reported separately from                 
     interest receivable from the public? (SFFAS 1,               
                        par. 56)                                  

  14See also Federal Claims Collection Standards, 4 CFR Part 103 par. 102.13)

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Section III Balance Sheet

    Assets Credit Program Receivables (55 - 96)    Yes, No, or   Explanation  
                                                       N/A      
The Federal Credit Reform Act of 1990, as amended, divides loans and loan
     guarantees into two groups: pre-1992 and post-1991. Pre-1992 refers to
direct loan obligations or loan guarantee commitments made prior to fiscal
    year 1992; post-1991 refers to direct loan obligations or loan guarantee
     commitments made after fiscal year 1991.15 (OMB Bulletin 01-09, p. 68,
                              section 9.8, item A)
55. Is interest receivable related to pre-1992               
      and post-1991 direct loans and acquired                   
      defaulted guaranteed loans reported as a                  
    component of credit program receivables and                 
     related foreclosed property? (OMB Bulletin                 
             01-09, p 21, section 3.3)                          
56. Are credit program receivables considered                
an entity asset if at least one of the                       
following criteria is met? a. The entity has                 
the authority to determine the use of the                    
funds collected. b. The entity is legally                    
obligated to use the funds to meet entity                    
obligations (e.g., loans payable to Treasury).               
(OMB Bulletin 01-09, p. 21, section 3.3)                     
       57. If a loan guarantee program, which                   
    guarantees a loan, is generating a negative                 
    subsidy and the lender has not disbursed the                
    loan as of the balance sheet date, does the                 
entity record and include this amount as part                
      of the total undelivered orders?16 (OMB                   
        Bulletin 01-09, p. 21, section 3.3)                     
     58. Are special fund receipt accounts for                  
      negative subsidies and downward subsidy                   
    reestimates included in the credit reporting                
    entity's financial statements? (OMB Bulletin                
             01-09, p. 21, section 3.3)                         

15Section 506 (a) of the Federal Credit Reform Act, as amended, exempts
the credit activities of certain agencies, such as the Federal Deposit
Insurance Corporation (FDIC) and the Tennessee Valley Authority (TVA).
These agencies can report in accordance with other requirements.

16Undelivered orders are the value of goods and services ordered and
obligated but not yet received. The term is synonymous with unliquidated
obligations. (The Federal Budget Politics, Policy, Process; copyright 1995
by Allen Schick; p. 216)

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Page 27

Section III
Balance Sheet

      Assets Credit Program Receivables (55 - 96)    Yes, No, or  Explanation 
                                                         N/A      
59. Are any assets in these special receipt fund               
      accounts shown as nonentity assets that are                 
    offset by intragovernmental liabilities covered               
    by budgetary resources? (OMB Bulletin 01-09, p.               
                   21, section 3.3)                               
60. Does the entity disclose that direct loan                  
obligations and loan guarantee commitments made                
after fiscal year 1991, and the resulting direct               
loans or loan guarantees, are governed by the                  
Federal Credit Reform Act of 1990, as amended?                 
(OMB Bulletin 01-09, p. 68, section 9.8,                       
instruction A)                                                 
61. Are loan amounts broken out by group                       
(pre-1992 and post-1991) and loan program and                  
disclosed in a note to the financial statements?               
(OMB Bulletin 01-09, pp. 61 & 70, section 9.8,                 
items B & C)                                                   
     62. Do the notes disclose other relevant and                 
    appropriate information related to direct loans               
    and loan guarantees including the following? a.               
    description of the characteristics of the loan                
        program b. commitments to guarantee c.                    
management's method for accruing interest revenue              
and recording interest receivable d. management's              
     policy for accruing interest on nonperforming                
    loans (OMB Bulletin 01-09, p. 69, section 9.8)                
For post-1991direct loans and guarantees, a subsidy expense is recognized
in the year they are disbursed. For pre-1992 direct loans and guarantees,
a loss and liability need not be recognized until it is more likely than
not that a loan (either direct or guaranteed) will go into default. (SFFAS
2, par. 24 & 39)                                  
     63. Are post-1991 direct loans disbursed and                 
    outstanding recognized as assets at the present               
value (discounted at a comparable Treasury rate)               
    of their estimated net cash inflows? (SFFAS 2,                
              par. 22 & app. B, part I A)                         

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Section III Balance Sheet

    Assets Credit Program Receivables (55 - 96)   Yes, No, or N/A Explanation 
64. Is the difference between the outstanding                  
    principal of post-1991 direct loans and the                   
      present value of their net cash inflows                     
recognized as a subsidy cost allowance? (SFFAS                 
           2, par. 22 & app. B, part I A)                         
    65. When post-1991 guaranteed loans default,                  
       is the value of the assets related to                      
      defaulted guaranteed loans receivable17                     
      included in the reported credit program                     
receivables? (OMB Bulletin 01-09, p. 64 & 72,                  
                section 9.8, item I)                              
66. When post-1991 direct loans are written                    
off, is the unpaid principal removed from                      
unpaid loans receivable and charged against                    
the allowance for subsidy costs? (SFFAS 2,                     
par. 61)                                                       
67. Are the following components of the assets                 
that are related to post-1991 direct and                       
defaulted guaranteed loans receivable                          
disclosed by loan program? a. loans                            
receivable, gross, or defaulted guaranteed                     
loans receivable, gross b. interest receivable                 
c. estimated net realizable value of                           
foreclosed property d. allowance for subsidy                   
costs (present value) e. value of assets                       
related to direct loans or defaulted                           
guaranteed loans receivable, net (OMB Bulletin                 
01-09, pp. 61, 64, 70, & 72, section 9.8,                      
items C & I)                                                   

17That is, the sum of (1) defaulted guaranteed loans receivable gross, (2)
interest receivable, and (3) foreclosed property, less the allowance for
subsidy cost at present value.

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Page 29

Section III Balance Sheet

      Assets Credit Program Receivables (55 - 96)     Yes, No, or Explanation 
                 Pre-1992 Direct Loans                    N/A     
68. Are losses of pre-1992 direct loans obligated              
recognized (and a corresponding allowance amount               
set up) when it is more likely than not that the               
direct loans will not be totally collected? (SFFAS             
2, par. 39 & app. B, part II A)                                
     69. Are allowances for uncollectible pre-1992                
    loans reestimated each year? (SFFAS 2, par. 39)               
70. Are the following components of assets related             
to pre-1992 direct loans receivable disclosed by               
loan program? a. loans receivable, gross b.                    
interest receivable c. foreclosed property d.                  
present value allowance18 (if the present value                
method is used) e. allowance for loan losses19 (if             
the allowance-for-loss method is used) (OMB                    
Bulletin 01-09, pp. 61 & 70, section 9.8 item B)               

18Under the present value method, the nominal amount of the direct loans
is reduced by an allowance equal to the difference between the nominal
amount and the present value of the expected net cash flows from the
loans. (OMB Bulletin 01-09, p. 68, section 9.8, 4th par.)

19Under the allowance-for-loss method, the nominal amount of the direct
loans is reduced by an allowance for uncollectible amounts. (OMB Bulletin
01-09, p. 68, section 9.8, 4th par.)

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Section III
Balance Sheet

Assets Credit Program Receivables (55 - 96)   Yes, No, or    Explanation   
              Pre-1992 Direct Loans                  N/A       
       71. Are the following components of                     
     defaulted guaranteed loans from pre-1992                  
     guarantees disclosed by loan program? a.                  
defaulted guaranteed loans receivable, gross                
b. interest receivable c. the estimated net                 
      realizable value of related foreclosed                   
property d. the present value allowance (if                 
     the present value method is used) e. the                  
allowance for loan losses (if the allowance                 
for loss method is used) f. value of assets                 
      related to defaulted guaranteed loans                    
receivable, net of the respective allowance                 
    (OMB Bulletin 01-09, pp. 64 & 72, section                  
                   9.8, item H)                                
      A loan modification is a federal government action that directly or
     indirectly alters the estimated subsidy cost and the present value of
     outstanding direct loans or the liability of loan guarantees. A direct
    modification changes the subsidy cost by altering the terms of existing
    contracts or through the sale of direct loans. An indirect modification
    changes the subsidy costs by altering the way loans and loan guarantees
         are administered. A modification does not include subsidy cost
reestimates, routine administrative workouts of troubled loans, and other
    actions permitted within existing contract terms. (SFFAS 2, par. 41-44)
    72. When post-1991 loans are modified, is                  
     their existing book value changed to an                   
     amount equal to the present value of the                  
    loans' net cash inflows that are projected                 
    under the modified terms from the time of                  
the modification to the loans' maturity and                 
    discounted at the original rate? (SFFAS 2,                 
         par. 46 & app. B, part I D (4))                       

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Section III
Balance Sheet

      Assets Credit Program Receivables (55 - 96)     Yes, No, or Explanation 
                 Pre-1992 Direct Loans                    N/A     
73. When pre-1992 loans are directly modified do               
they meet the following conditions? a. They are                
transferred from the liquidating account to a                  
financing account. b. Their book value is recorded             
at their post-modification value. (SFFAS 2, par.               
47 & app. B, part II B (4))                                    
      74. Are subsequent (direct) modifications of                
      pre-1992 loans treated as a modification of                 
          post-1991 loans? (SFFAS 2, par. 47)                     
75. When pre-1992 loans are indirectly modified do             
    they meet the following conditions? a. They are               
    kept in a liquidating account. b. Their bad debt              
    allowance is reassessed and adjusted to reflect               
     amounts that would not be collected due to the               
            modification. (SFFAS 2, par. 47)                      
     76. Does the entity disclose the following by                
program in the notes to the financial statements?              
a. the nature of the modification of direct loans              
    or loan guarantees b. the discount rate used in               
calculating the modification expense c. the basis              
     for recognizing a gain or loss related to the                
      modification (SFFAS 2, par. 56; OMB Bulletin                
          01-09, p. 69, section 9.8, 5th par.)                    
77. When post-1991 and pre-1992 loans are sold, is             
the sale treated as a direct modification if the               
agency did not assume sales proceeds in the cash               
flow estimates for the initial subsidy                         
calculation? (SFFAS 2, par. 53 & App. B, Part I F,             
footnote 23)                                                   

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Section III
Balance Sheet

Assets Credit Program Receivables (55 -   Yes, No, or N/A    Explanation   
          96) Pre-1992 Direct Loans                            
78. Does the agency disclose the                            
expectation that proceeds from the sale                     
of its loans will differ from the                           
reported face value of the loans or the                     
value of their related assets? (OMB                         
Bulletin 01-09, p. 69, section 9.8, 1st                     
par.)                                                       
      Foreclosed property is any asset, which is assumed to be held for sale,
      that is received in satisfaction of a loan receivable or as a result of
             payment of a claim under a guaranteed or insured loan (excluding
      commodities acquired under price support programs). Pre-1992 foreclosed
property refers to property associated with direct loans obligated or loan
guarantees committed before October 1, 1991. Post-1991 foreclosed property
            refers to property associated with direct loans obligated or loan
       guarantees committed after September 30, 1991. (SFFAS 3, par. 79 & 80)
79. Is post-1991 foreclosed property                        
valued at the net present value of the                      
projected future cash flows associated                      
with the property? (SFFAS 3, par. 81;                       
OMB Bulletin 01-09, p. 70, section 9.8,                     
item C)                                                     
     80. Is pre-1992 foreclosed property                       
     recorded at cost and adjusted to the                      
    lower of cost or net realizable value                      
with any difference between cost and net                    
realizable value carried in a valuation                     
        allowance? (SFFAS 3, par. 81)                          
    81. In determining net present value,                      
does the projection of future cash flows                    
    include estimates of the following? a.                     
      sales proceeds b. rent, management                       
     expense, and repair costs during the                      
holding period c. selling expense (i.e.,                    
advertising and commissions) (SFFAS No.                     
                 3, par. 82)                                   
82. In estimating sales proceeds for                        
projecting the future cash flows                            
associated with the property in                             
determining net present value, has the                      
entity considered its historical                            
experience in selling property as well                      
as the nature of the sale? (SFFAS 3,                        
par. 82)                                                    

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Section III
Balance Sheet

    Assets Credit Program Receivables (55 - 96)   Yes, No, or N/A Explanation 
               Pre-1992 Direct Loans                              
    83. Were the estimated future cash flows of                   
     post-1991 foreclosed property or acquired                    
loans discounted at the original (or Treasury)                 
      discount rate in effect at the time the                     
     underlying loan or guarantee was granted?                    
(SFFAS 2, par. 57& 59; SFFAS 3, par. 83; SFFAS                 
                   19, par. 7(e))                                 
     84. Is the net present value of post-1991                    
    foreclosed property adjusted periodically to                  
recognize both changes in the expected future                  
cash flows and accrual of interest due to the                  
        passage of time? (SFFAS 3, par. 84)                       
      85. Are any adjustments in the carrying                     
      amounts of post-1991 foreclosed property                    
     included in the presentation of "interest                    
       income" and the reestimate of "subsidy                     
            expense?" (SFFAS 3, par. 84)                          
86. For post-1991 foreclosed property, are the                 
     following true? a. Third party claims are                    
     recorded at their net present value at the                   
      time of the foreclosure, using the same                     
       discount rate that applies to related                      
    foreclosed property. b. Any periodic changes                  
       in net present value of the claim are                      
    reflected in "interest income" and "subsidy                   
            expense." (SFFAS 3, par. 87)                          
    87. Are receipts or disbursements associated                  
        with acquiring and holding post-1991                      
     foreclosed property charged or credited to                   
      foreclosed property? (SFFAS 3, par. 88)                     
88. When the entity acquires foreclosed assets                 
in full or partial settlement of post-1991                     
direct loans or guarantees, is the present                     
value of the government's claim against the                    
borrowers reduced by the amount settled as a                   
result of the foreclosure? (SFFAS 2, par. 60)                  

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Section III
Balance Sheet

      Assets Credit Program Receivables (55 - 96)     Yes, No, or Explanation 
                 Pre-1992 Direct Loans                    N/A     
89. If a lender, debtor, or other third party has              
      a legitimate claim to a post-1991 foreclosed                
    asset, is the net present value of the estimated              
     claim recognized as a special contra-valuation               
    allowance? (SFFAS 2, par. 58; SFFAS 3, par. 87)               
    90. Is pre-1992 foreclosed property recorded at               
    cost and adjusted, if necessary, to the lower of              
cost or net realizable value? (SFFAS 3, par. 81 &              
                          85)                                     
      91. Is the net realizable value based on an                 
      estimate of the market value of the property                
    adjusted for any expected losses consistent with              
historical experience, abnormal market conditions,             
and time limitations as well as any other costs of             
           the sale? (SFFAS 3, par. 85 & 86)                      
92. Is the estimate of market value based on one               
of the following criteria? a. the market value of              
the property if an active market exists b. the                 
market value of similar properties if no active                
market exists c. a reasonable forecast of expected             
cash flows adjusted for estimates of all holding               
costs, including any cost of capital (SFFAS 3,                 
par. 85)                                                       
93. For pre-1992 foreclosed property, are                      
third-party claims recorded at the expected amount             
of cash required to settle the claims? (SFFAS 3,               
par. 87)                                                       
94. If foreclosed property is not sold but placed              
into operation, is the asset removed from                      
foreclosed property? (SFFAS 3, par. 90)                        

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Section III
Balance Sheet

    Assets Credit Program Receivables (55 - 96)   Yes, No, or N/A Explanation 
               Pre-1992 Direct Loans                              
      95. If reimbursement for the transfer of                    
    assets from one program to another is made,                   
are the proceeds from the transfer treated in                  
    the same manner as a sale to a third party?                   
                 (SFFAS 3, par. 90)                               
96. When the government acquires foreclosed                    
assets in full or partial settlement of a                      
direct or guaranteed loan (pre-1992 and                        
post-1991), is the following information                       
disclosed? a. valuation basis for foreclosed                   
property b. changes from prior-year's                          
accounting methods, if any c. restrictions on                  
the use/disposal of property d. balances by                    
categories (i.e., pre-1992 and post-1991                       
foreclosed property) e. number of properties                   
held and average holding period by type or                     
category f. number of properties for which                     
foreclosure proceedings are in process at the                  
end of the period (SFFAS 3, par. 91; OMB                       
Bulletin 01-09, pp. 69 & 70, section 9.8)                      

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Section III Balance Sheet

    Assets Cash and Other Monetary Assets                       Explanation   
                 (97 - 102)                  Yes, No, or N/A   
Cash (including imprest funds) consists of: coins, paper currency, readily
negotiable instruments (such as checks, money orders, and bank drafts),
demand deposits, and foreign currencies stated in U.S. dollars at the
exchange rate on the financial statement date. (SFFAS 1, par. 27; OMB
Bulletin 01-09, p. 20, section 3.3) Other monetary assets consist of other
items such as gold, special drawing rights, and U.S. reserves in the
International Monetary Fund (IMF). (OMB Bulletin 01-09, p. 20, section 3.3
& p.57, section 9.4, item C)            
     97. Are the components of cash and                        
     other monetary assets disclosed and                       
    described in a note to the financial                       
statements? (OMB Bulletin 01-09, p. 20,                     
section 3.3 & pp. 57 & 58, section 9.4)                     
Entity cash is the amount of cash that the reporting entity holds and is
authorized by law to spend. Nonentity cash is the cash that a federal
entity collects and holds on behalf of the U.S. government or other
entities. In some instances the entity deposits cash in its accounts in a
fiduciary capacity for the U.S. Treasury or other entities. (SFFAS 1, par.
28 & 29)                                
98. Does cash available for agency use                      
     include petty cash and cash held in                       
      revolving funds that will not be                         
    transferred to the general fund? (OMB                      
     Bulletin 01-09, p.58, section 9.4,                        
               instruction E)                                  
99. Is nonentity cash disclosed in the                      
     notes to the financial statements,                        
separately from entity cash? (SFFAS 1,                      
     par. 29; OMB Bulletin 01-09, p. 17,                       
section 3.1, p. 19, section 3.3, & pp.                      
             57-58, section 9.4)                               
    100. If cash is restricted,20 is the                       
nature and reason disclosed? (SFFAS 1,                      
     par. 30; OMB Bulletin 01-09, p. 56,                       
      section 9.2 & p. 58, section 9.4)                        

20Nonentity cash is always restricted. Restricted cash also includes cash
held in escrow to pay property taxes and insurance related to property
associated with defaulted loans.

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Section III
Balance Sheet

    Assets Cash and Other Monetary Assets (97 -                   Explanation 
                        102)                      Yes, No, or N/A 
101. Does the entity disclose any restrictions                 
on the use or conversion of cash denominated                   
in foreign currencies and the significant                      
effects, if any, of changes in the exchange                    
rate on the entity's financial position that                   
occur after the end of the reporting period                    
but before the issuance of financial                           
statements? (OMB Bulletin 01-09, p. 58,                        
section 9.4)                                                   
    102. Is other information on cash and other                   
     monetary assets disclosed, as appropriate,                   
      such as the valuation rate of gold? (OMB                    
        Bulletin 01-09, p. 58, section 9.4)                       

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Section III
Balance Sheet

Assets Inventory and Related Property (103 Yes, No, or N/A   Explanation   
                     - 125)                                   
Inventory is tangible personal property that is (1) held for sale
including raw materials and work in process, (2) in process of production
for sale, or (3) to be consumed in the production of goods for sale or in
the provision of services for a fee. Inventory does not include other
assets held for sale such as (1) stockpile materials, (2) seized and
forfeited property, (3) foreclosed property, and (4) goods held under
price support and stabilization programs. (SFFAS 3, par. 1; OMB Bulletin
01-09, p. 21, section 3.3)                 
     103. Is inventory valued at historical                   
     cost, latest acquisition cost, or net                    
realizable value? (SFFAS 3, par. 20 & 26)                  
104. If inventory is valued at historical                  
cost, does that cost include the purchase                  
amount and all other costs, such as                        
transportation and production costs,                       
incurred to bring the inventory into its                   
current condition and location? (SFFAS 3,                  
par. 21)                                                   
105. Are abnormal costs, such as excessive                 
      handling or rework costs, charged to                    
operations for the period? (SFFAS 3, par.                  
                      21)                                     
106. Is donated inventory valued at its                    
fair value at the time of donation? (SFFAS                 
3, par. 21)                                                
107. Is inventory acquired through                         
exchange of nonmonetary assets (e.g.,                      
barter) valued at the fair value of the                    
asset received at the time of the                          
exchange? (SFFAS 3, par. 21)                               
      108. For inventory acquired through                     
     exchange of nonmonetary assets, is any                   
difference between the recorded amount of                  
    the asset surrendered and the fair value                  
of the asset received recognized as a gain                 
           or loss? (SFFAS 3, par 21)                         

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Section III Balance Sheet

    Assets Inventory and Related Property (103 -  Yes, No, or N/A Explanation 
                        125)                                      
109. Are one of the following historical cost                  
flow assumptions used to value inventory? a.                   
first-in, first out (FIFO) b. weighted average                 
c. moving average d. any other valuation                       
method (such as a standard cost system) whose                  
results reasonably approximate "a," "b," or                    
"c" above (SFFAS 3, par. 22)                                   
110. If the latest acquisition cost method of                  
     inventory valuation is used, is the latest                   
     invoice price (actual cost) applied to all                   
     like units held, including those acquired                    
     through donation or nonmonetary exchange?                    
                 (SFFAS 3, par. 23)                               
111. Under the latest acquisition cost method,                 
is the inventory revalued periodically (or at                  
least by the end of the fiscal year)?21 (SFFAS                 
3, par. 23)                                                    
    112. If unrealized holding gains/losses are                   
        recognized, is an allowance account                       
     established to capture these gains/losses?                   
                 (SFFAS 3, par. 24)                               
113. Is the ending balance of this [gain/loss]                 
    allowance account the cumulative difference                   
       between the historical cost, based on                      
estimated or actual valuation, and the latest                  
    acquisition cost of ending inventory? (SFFAS                  
                    3, par. 24)                                   
114. Is the balance for the gain/loss account                  
    adjusted each time the inventory balance is                   
            adjusted? (SFFAS 3, par. 24)                          

21Revaluation results in recognition of unrealized holding gains/losses in
the ending inventory value. Upon adjustment for unrealized holding
gains/losses, the latest acquisition cost method then results in an
approximation of historical cost.

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Section III Balance Sheet

Assets Inventory and Related Property (103 - 125)  Yes, No, or Explanation 
                                                          N/A     
     115. Is the adjustment necessary to bring the                
    allowance to the appropriate balance a component              
    of the cost of goods sold as computed under the               
    latest acquisition cost method?22 (SFFAS 3, par.              
                        24 & 25)                                  
116. If the latest acquisition cost method is used             
to value inventory, is the reported cost of goods              
      sold adjusted by the difference between the                 
beginning and ending unrealized holding gains and              
            losses? (SFFAS 3, par. 24 & 25)                       
117. If inventory is valued at net realizable                  
value, does it meet the following criteria? a.                 
There is an inability to determine approximate                 
cost. b. There is immediate marketability at                   
quoted prices. c. There is unit interchangeability             
(e.g., petroleum reserves). (SFFAS 3, par. 26)                 
118. Are inventory stocks, which are maintained                
because they are not readily available in the                  
market or because there is more than a remote                  
chance that they will eventually be needed,                    
classified as inventory held in reserve for future             
sale, and reported in one of the following                     
manners? a. included in the inventory line item on             
the face of the financial statements with separate             
disclosure in the footnotes b. shown as a separate             
line item on the face of the financial statements              
(SFFAS 3, par. 27)                                             

22Cost of goods sold under the latest acquisition cost method equals (1)
beginning inventory at beginning-of-the period latest acquisition cost,
less: beginning allowance for unrealized holding gains/losses, plus:
actual purchases; and (2) resulting cost of goods available for sale,
less: ending inventory at end-of-the period latest acquisition cost, plus:
ending allowance for unrealized holding gains/losses.

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Section III
Balance Sheet

    Assets Inventory and Related Property (103 -  Yes, No, or N/A Explanation 
                        125)                                      
      119. Is inventory identified as excess,                     
obsolete, or unserviceable reported in one of                  
     the following manners? a. included in the                    
       inventory line item on the face of the                     
financial statements with separate disclosures                 
    in the footnotes b. shown as a separate line                  
    item on the face of the financial statements                  
(SFFAS 3, par. 29; OMB Bulletin 01-09, p. 74,                  
                    section 9.9)                                  
    120. Is excess, obsolete, and unserviceable                   
        inventory valued at its expected net                      
        realizable value? (SFFAS 3 par. 30)                       
      121. When inventory is declared excess,                     
    obsolete, or unserviceable is the difference                  
    between the carrying amount and the expected                  
net realizable value recognized as a loss (or                  
             gain)? (SFFAS 3, par. 30)                            
122. For excess, obsolete, or unserviceable                    
inventory, are any subsequent adjustments to                   
the inventory's net realizable value or any                    
loss (or gain) upon disposal recognized as                     
losses (or gains)? (SFFAS 3, par. 30)                          
123. When inventory is held for repair, is it                  
valued using one of the following methods? a.                  
the allowance method (valued at the same value                 
      as a serviceable item and a contra-asset                    
repair allowance account is established b. the                 
    direct method (valued at the same value as a                  
serviceable item less estimated repair costs)                  
              (SFFAS 3, par. 32 & 33)                             
124. If inventory is transferred to "inventory                 
held for repair," are estimated prior period                   
repair costs either credited to the repair                     
allowance (under the repair allowance method)                  
or to the inventory account (under the direct                  
method) and reported as an adjustment to                       
equity? (SFFAS 3, par. 34)                                     

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Section III
Balance Sheet

Assets Inventory and Related Property (103 - 125)  Yes, No, or Explanation 
                                                          N/A     
125. Does the entity disclose the following about              
its inventory? a. the general composition b. the               
basis for determining inventory values (including              
the valuation method and any cost flow                         
assumptions) c. changes from prior years'                      
accounting methods, if any d. balances for each of             
the following categories of inventory (unless                  
otherwise presented on the financial statements):              
i. inventory held for current sale ii. inventory               
held in reserve for future use iii. excess,                    
obsolete, and unserviceable inventory iv.                      
inventory held for repair e. the difference                    
between the carrying amount of the inventory                   
before identification as excess, obsolete, or                  
unserviceable, and its expected net realizable                 
value f. restriction on the sale of inventory g.               
the decision criteria for categorizing inventory               
h. changes in the criteria for categorizing                    
inventory (SFFAS 3, par. 18, 27-29, 31, 32 & 35;               
OMB Bulletin 01-09, pp. 74 & 75, section 9.9)                  

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Section III
Balance Sheet

     Assets Operating Materials and Supplies   Yes, No, or N/A  Explanation   
                   (126 - 137)                                 
Operating materials and supplies are tangible personal property to be
consumed in normal operations. Excluded are (1) goods that have been
acquired to construct real property and equipment for the entity's use (2)
stockpile materials, (3) goods held under price stabilization programs,
(4) foreclosed property, (5) seized and forfeited property, and (6)
inventory. (SFFAS 3, par. 36 & OMB Bulletin 01-09, p.21, section 3.3)
    126. Are operating materials and supplies                  
     recognized and reported as assets when                    
    produced or purchased? (SFFAS 3, par. 38)                  
    127. Are operating materials and supplies                  
    valued at historical cost, including all                   
    appropriate purchase and production costs                  
      incurred to bring the items to their                     
    current condition and location? (SFFAS 3,                  
                   par. 42-43)                                 
    128. Are donated operating materials and                   
supplies valued at their fair value at the                  
      time of donation? (SFFAS 3, par. 43)                     
    129. Are operating materials and supplies                  
    acquired through exchange of nonmonetary                   
    assets (e.g., barter) valued at the fair                   
value of the asset received at the time of                  
        the exchange? (SFFAS 3, par. 43)                       
    130. Are operating materials and supplies                  
    acquired through exchange of nonmonetary                   
    assets (e.g., barter) valued at the fair                   
value of the asset received at the time of                  
exchange, and is any difference between the                 
    recorded amount of the asset surrendered                   
    and the fair value of the asset received                   
     recognized as a gain or loss? (SFFAS 3,                   
                    par. 43)                                   

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Section III
Balance Sheet

Assets Operating Materials and Supplies (126 - Yes, No, or N/A Explanation 
                        137)                                      
    131. Is one of the following historical cost                  
       flow assumptions used to value ending                      
     operating materials and supplies under the                   
     consumption method? a. first-in, first-out                   
    (FIFO) b. weighted average c. moving average                  
      d. any other valuation method (such as a                    
standard cost system) whose results reasonably                 
approximate "a," "b," or "c" (SFFAS 3, par. 42                 
                       & 44)                                      
132. Are operating materials and supplies                      
stocks, which are maintained because they are                  
not readily available in the market or because                 
there is more than a remote chance that they                   
will eventually be needed (although not                        
necessarily in the normal course of                            
operations), classified as operating materials                 
and supplies held in reserve for future use,                   
and reported in one of the following manners?                  
a. included in the operating materials and                     
supplies line item on the face of the                          
financial statements with separate disclosure                  
in the footnotes b. shown as a separate line                   
item on the face of the financial statements                   
(SFFAS 3, par. 45)                                             
133. Are operating materials and supplies                      
identified as excess, obsolete, or                             
unserviceable reported in one of the following                 
manners? a. included in the operating                          
materials and supplies line item on the face                   
of the financial statements with separate                      
disclosure in the footnotes b. shown as a                      
separate line item on the face of the                          
financial statements (SFFAS 3, par. 47)                        
    134. Are excess, obsolete, and unserviceable                  
     operating materials and supplies valued at                   
    their estimated net realizable value? (SFFAS                  
                    3, par. 48)                                   

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Section III Balance Sheet

     Assets Operating Materials and Supplies (126 -   Yes, No, or Explanation 
                          137)                            N/A     
     135. When operating materials and supplies are               
declared excess, obsolete, or unserviceable is the             
     difference between the carrying amount before                
         identification as excess, obsolete, or                   
     unserviceable and the estimated net realizable               
    value recognized as a loss (or gain)? (SFFAS 3,               
                        par. 48)                                  
136. For excess, obsolete, or unserviceable                    
operating materials and supplies, are any                      
subsequent adjustments to the operating materials              
and supplies' estimated net realizable value or                
any loss (or gain) upon disposal recognized as                 
losses (or gains)? (SFFAS 3, par. 48)                          
137. Does the entity disclose the following                    
information about its operating materials and                  
supplies? a. general composition b. basis for                  
valuation (including valuation method and any cost             
flow assumptions) c. change from prior years'                  
accounting methods, if any d. balances in each                 
operating material and supply category23 e. the                
difference between the carrying amount of the                  
operating materials and supplies before                        
identification as excess, obsolete, or                         
unserviceable and their estimated net realizable               
value f. restrictions on the use of materials and              
supplies, if any g. decision criteria for                      
identifying each category to which material and                
supplies are assigned h. changes in the criteria               
for identifying the category to which the                      
operating materials and supplies are assigned                  
(SFFAS 3, par. 36, 37, 45-47, 49, & 50; OMB                    
Bulletin 01-09, p. 75, section 9.9)                            

23Major categories of operating materials and supplies include (1) items
held for use; (2) items held in reserve for future uses; and (3) excess,
obsolete, and unserviceable items.

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Page 46

Section III
Balance Sheet

      Assets Stockpile Materials (138-150)     Yes, No, or N/A  Explanation   
Stockpile materials are strategic and critical materials held due to
statutory requirements for use in national defense, conservation, or
national emergencies. Not included under this category are (1) items held
for sale or use in normal operations, (2) items held for use in the event
of an agency's operating emergency or contingency, and (3) materials
acquired to support market prices. (SFFAS 3, par. 51 & OMB Bulletin 01-09,
p. 21, section 3.3)                         
138. Are stockpile materials recognized and                 
reported as assets when acquired (i.e.,                     
recognized as assets using the consumption                  
method)? (SFFAS 3, par. 52)                                 
139. If the contract between the buyer and                  
seller of the stockpile materials is silent                 
regarding passage of the title, is title                    
assumed to pass upon delivery of the goods?                 
(SFFAS 3, par. 52)                                          
     140. Are stockpile materials valued at                    
historical cost, including all appropriate                  
    purchase, transportation, and production                   
costs incurred to bring the items to their                  
    current condition and location? (SFFAS 3,                  
                    par. 53)                                   
141. Are abnormal costs, such as excessive                  
      handling or rework costs, charged to                     
    operations for the period? (SFFAS 3, par.                  
                       53)                                     
     142. Is one of the following historical                   
       cost flow assumptions used to value                     
    stockpile materials under the consumption                  
    method? a. first-in, first-out (FIFO) b.                   
    weighted average c. moving average d. any                  
other valuation method (such as a standard                  
      cost system) whose results reasonably                    
approximate "a," "b," or "c" (SFFAS 3, par.                 
                    52 & 53)                                   

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Section III
Balance Sheet

        Assets Stockpile Materials (138-150)      Yes, No, or N/A Explanation 
143. If stockpile materials have either                        
suffered a permanent decline in value to an                    
amount below cost or have become damaged or                    
decayed, has their value been reduced to                       
expected net realizable value? (SFFAS 3, par.                  
54)                                                            
       144. Is the resultant decline in value                     
recognized as a loss or expense in the period                  
       in which it occurs? (SFFAS 3, par. 54)                     
    145. When stockpile materials are authorized                  
    to be sold, are those materials disclosed as                  
    stockpile materials held for sale? (SFFAS 3,                  
                      par. 55)                                    
    146. Are the stockpile materials authorized                   
     for sale valued using the same basis used                    
    before they were authorized for sale? (SFFAS                  
                    3, par. 55)                                   
    147. Is any difference between the carrying                   
     amount of the stockpile materials held for                   
       sale and their estimated selling price                     
           disclosed? (SFFAS 3, par. 55)                          
    148. If stockpile materials are sold, is the                  
     cost removed from stockpile materials and                    
    reported as a cost of goods sold? (SFFAS 3,                   
                      par. 55)                                    
    149. Is any gain (or loss) from the sale of                   
    stockpile materials recognized as a gain (or                  
       loss) at that time? (SFFAS 3, par. 55)                     

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Section III
Balance Sheet

        Assets Stockpile Materials (138-150)      Yes, No, or N/A Explanation 
150. Does the entity disclose the following                    
information about its stockpile materials? a.                  
general composition b. basis for valuing                       
stockpile materials, including valuation                       
method and any cost flow assumptions c.                        
changes from prior year's accounting methods,                  
if any d. restrictions on the use of the                       
material e. balances in each category of                       
stockpile material (i.e., stockpile materials                  
and stockpile materials held for sale) f.                      
decision criteria for grouping stockpile                       
material as held for sale g. changes in                        
criteria for categorizing stockpile materials                  
as held for sale (SFFAS 3, par. 56; OMB                        
Bulletin 01-09, pp. 75 & 76, section 9.9)                      

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Section III
Balance Sheet

      Assets Seized Property (151 -158)      Yes, No, or N/A    Explanation   
Seized property includes monetary instruments, real property, and tangible
personal property belonging to others in actual or constructive possession
of the custodial agency. This includes illegal drugs, contraband, and
counterfeit items seized by authorized law enforcement agencies (SFFAS 3,
par. 59; OMB Bulletin 01-09, p. 22, section 3.3) There may be as many as
three government entities involved with seized property: (1) the seizing
agency, (2) the custodial agency, and (3) another agency with a "central
fund" set up for financial recordkeeping of seizure activities. (SFFAS 3,
par. 57)                                 
    151. If the central fund is other than                     
    the seizing or custodial entity, does                      
the custodial entity maintain sufficient                    
      internal records to carry out its                        
    stewardship responsibility? (SFFAS 3,                      
                   par. 60)                                    
152. If monetary instruments are seized,                    
    are seized assets recognized at market                     
value of the monetary instruments, and a                    
     corresponding liability equal to the                      
    seized asset value established? (SFFAS                     
3, par. 61 & 65; OMB Bulletin 01-09, p.                     
               22, section 3.3)                                
153. Is the existence of seized property                    
       other than monetary instruments                         
    disclosed in a note to the statements                      
      and accounted for in the entity's                        
    property management records? (SFFAS 3,                     
                   par. 62)                                    
154. Is seized property valued at its                       
market value when seized (or as soon                        
thereafter as reasonably possible if the                    
market value cannot be readily                              
determined)? (SFFAS 3, par. 63)                             
155. If no active market exists for the                     
property in the general area in which it                    
was seized, is a value in the principle                     
     market nearest the place of seizure                       
           used? (SFFAS 3, par. 63)                            
156. Is the valuation of property seized                    
under the Internal Revenue Code based on                    
the taxpayer's equity (market value less                    
    any third-party liens)? (SFFAS 3, par.                     
                     64)                                       

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Section III
Balance Sheet

         Assets Seized Property (151 -158)        Yes, No, or N/A Explanation 
157. Does the entity disclose the type of                      
seized property in its custody and include the                 
following information? a. explanation of what                  
constitutes a seizure and a general                            
description of the composition of seized                       
property b. valuation method(s) c. changes                     
from prior years' accounting methods, if any                   
d. analysis of change in seized property                       
(including dollar value and number of seized                   
properties) that are i. on hand at the                         
beginning of the year, ii. seized during the                   
year, iii. disposed of during the year, and                    
iv. on hand at the end of the year, as well as                 
known liens or other claims against the                        
property (SFFAS 3, par. 66; OMB Bulletin                       
01-09, p. 22, section 3.3; p. 76, section 9.9)                 
158. Does the entity also disclose the method                  
    of disposal of seized property, if material?                  
(SFFAS 3, par. 66; OMB Bulletin 01-09, p. 76,                  
                    section 9.9)                                  

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Section III
Balance Sheet

         Assets Forfeited property (159 - 172)       Yes, No, Or  Explanation 
                                                         N/A      
Forfeited property consists of (a) property (i.e., monetary instruments,
intangible property, real property, and tangible personal property)
acquired through forfeiture proceedings, (b) property acquired to satisfy
a tax liability, and (c) unclaimed and abandoned merchandise. (SFFAS 3,
par. 67 & 68 & OMB Bulletin 01-09, p. 22, section 3.3)
    159. When a forfeiture judgment is obtained for               
       seized monetary instruments: a. Are they                   
reclassified as forfeited monetary instruments at              
        the current market value? b. Is revenue                   
recognized in an amount equal to the value of the              
    monetary asset? c. Is the liability associated                
          with the seized monetary instrument                     
      classification removed? (SFFAS 3, par. 69)                  
160. When a forfeiture judgment is obtained for                
real, tangible, and intangible property: a. Is                 
the property recorded as an asset at its fair                  
value at the time of forfeiture? b. Is an                      
allowance account (contra-asset account)                       
established for liens or claims from third party               
claimants against forfeited property? c. Is                    
offsetting deferred revenue recognized? (SFFAS 3,              
par. 70)                                                       
161. For forfeited property that cannot be sold                
due to legal restrictions, but may be either                   
donated or destroyed, does the entity in lieu of               
recognizing financial value make the required                  
disclosures concerning the composition,                        
valuation, and disposition of the property?                    
(SFFAS 3, par. 71 & 78)                                        
162. Is revenue from the sale of forfeited                     
property recognized when sold? (SFFAS 3, par. 72)              

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Section III
Balance Sheet

       Assets Forfeited property (159 - 172)      Yes, No, Or N/A Explanation 
        Forfeited property not held for sale may be placed into official use,
transferred to another federal agency, distributed to a state or local law
enforcement agency, or distributed to a foreign government. (SFFAS 3, par.
                                                                          73)
       163. When a determination is made that                     
forfeited property will not be held for sale,                  
       but distributed in one of the manners                      
described above, is the property reclassified                  
     as forfeited property held for donation or                   
              use? (SFFAS 3, par. 74)                             
    164. Is revenue associated with property not                  
      disposes of through sale recognized upon                    
    approval of distribution and the previously                   
established deferred revenue reversed? (SFFAS                  
                    3, par. 74)                                   
165. Is a distinction maintained in the                        
entity's accounting reports between revenue                    
arising from the sale of forfeited property                    
and revenue arising from forfeited property                    
being transferred, donated, or placed into                     
official use? (SFFAS 3, par. 72-75 & Table 1)                  
166. Is property acquired by the government to                 
satisfy a taxpayer's liability recorded when                   
title to the property passes to the federal                    
government, and is a credit made to the                        
related account receivable? (SFFAS 3, par. 76)                 
167. Is the property acquired in satisfaction                  
of a taxpayer's liability valued at its market                 
    value less any third party liens? (SFFAS 3,                   
                      par. 76)                                    
168. Upon sale of forfeited property acquired                  
in satisfaction of a taxpayer's liability, is                  
revenue recognized in the amount of the sale                   
proceeds, and are the property and third party                 
liens removed from the accounts? (SFFAS 3,                     
par. 76)                                                       
    169. Is unclaimed and abandoned merchandise                   
    recorded with an offsetting deferred revenue                  
when statutory and/or regulatory requirements                  
    for forfeiture have been met? (SFFAS 3, par.                  
                        77)                                       

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Section III
Balance Sheet

       Assets Forfeited property (159 - 172)      Yes, No, Or N/A Explanation 
    170. Is unclaimed and abandoned merchandise                   
valued at its market value? (SFFAS 3, par. 77)                 
171. Upon the sale of unclaimed and abandoned                  
merchandise, is revenue recognized in the                      
amount of the sale proceeds, and the                           
merchandise and the deferred revenue removed                   
from the accounts? (SFFAS 3, par. 77)                          
172. Does the entity disclose the following                    
information about forfeited property? a.                       
composition of the property b. valuation                       
method(s) c. restrictions on the use or                        
disposition of forfeited property d. changes                   
from prior year's accounting methods, if any                   
e. analysis of the changes in forfeited                        
property by dollar amount and number of                        
forfeitures that includes: i. forfeitures on                   
hand at the beginning of the year ii.                          
additions iii. disposals and method of                         
disposition iv. forfeitures on hand at the end                 
of the year f. if available, an estimate of                    
the value of property or funds to be                           
distributed to other federal, state, and local                 
agencies in future reporting periods (SFFAS 3,                 
par. 78; OMB Bulletin 01-09, p. 76, section                    
9.9)                                                           

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Section III Balance Sheet

    Assets Goods Held Under Price Support    Yes, No, or N/A    Explanation   
    and Stabilization Programs (173 - 186)                     
Goods acquired under price support and stabilization programs (i.e.,
commodities) are items of commerce or trade (usually farm commodities)
having an exchange value. Producers of the goods (1) are either given
nonrecourse loans under which they can, at their option, repay the loan
with interest or surrender their commodity pledged as collateral for the
loan or (2) may enter into purchase agreements that allow the producer of
the option to sell commodities to the government (the Commodity Credit
Corporation) at the price support rate. (SFFAS 3, par. 92, 93, & 94)
173. Are nonrecourse loans recognized as                    
assets when the loan principal is                           
disbursed and recorded at the amount of                     
the loan principal? (SFFAS 3, par. 96)                      
174. Is interest accrued on nonrecourse                     
          loans? (SFFAS 3, par. 96)                            
175. When the entity has entered into a                     
purchase agreement and there is an                          
expected loss: a. Is a loss24 recognized                    
if it is probable that a loss has been                      
incurred on purchase agreements                             
outstanding and the amount of the loss                      
can be reasonably measured? b. Is a                         
corresponding liability recognized?                         
(SFFAS 3, par. 97 & 103)                                    
176. If the contingent loss arising from                    
a purchase agreement is not recognized                      
because it is less than probable or is                      
not reasonably measurable, is the                           
contingent loss disclosed if it is at                       
least "reasonably possible that a loss                      
may occur?" (SFFAS 3, par. 98)                              
177. When commodities are acquired to                       
satisfy a nonrecourse loan or purchase                      
agreement, are they recognized and                          
reported as assets at the lower of cost                     
or net realizable value? (SFFAS 3, par.                     
99 & 104)                                                   

24The loss amount is the difference between the contract price and the net
realizable value of the commodities.

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Section III
Balance Sheet

       Assets Goods Held Under Price Support and      Yes, No, or Explanation 
           Stabilization Programs (173 - 186)             N/A     
     178. When commodities acquired to satisfy the                
terms of a nonrecourse loan or purchase agreement              
    are sold: a. Are revenues recognized? b. Is the               
    carrying amount of the commodities removed from               
the asset account and reported as a cost of goods              
               sold? (SFFAS 3, par. 100)                          
179. When commodities are held for purposes other              
than sale, is the carrying amount reported as an               
expense and removed from the commodity asset                   
account upon transfer? (SFFAS 3, par. 101)                     
180. Are all nonrecourse loans recorded at their               
face amounts, and is a valuation allowance set up              
to recognize losses on such loans when it is "more             
likely than not" (i.e., more than a 50 percent                 
chance) that loans will not be totally collected?              
(SFFAS 3, par. 102)                                            
       181. Is this allowance reestimated on each                 
     financial reporting date? (SFFAS 3, par. 102)                
    182. Does the cost for the commodities acquired               
through a nonrecourse loan settlement include the              
    following amounts? a. loan principal (excluding               
      interest) b. processing and packaging costs                 
    incurred after acquisition c. other costs (e.g.,              
    transportation) incurred in taking title to the               
             commodity (SFFAS 3, par. 105)                        
183. Does the cost for commodities acquired though             
a purchase agreement include the following                     
amounts? a. the unit price agreed upon in the                  
purchase agreement multiplied by the number of                 
units purchased b. other costs incurred in taking              
title to the commodity (SFFAS 3, par. 106)                     

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Section III
Balance Sheet

     Assets Goods Held Under Price Support and    Yes, No, or N/A Explanation 
         Stabilization Programs (173 - 186)                       
184. Is any adjustment necessary to reduce the                 
carrying amount of the acquired commodities to                 
the lower of cost or net realizable value                      
recognized as a loss on farm price support in                  
the current period and recorded in a commodity                 
valuation allowance? (SFFAS 3, par. 107)                       
185. Are recoveries of losses recognized up to                 
the point of any previously recognized losses                  
on the commodities, and is the commodity                       
valuation allowance reduced accordingly in the                 
current period? (SFFAS 3, par. 107)                            

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Section III
Balance Sheet

       Assets Goods Held Under Price Support and      Yes, No, or Explanation 
           Stabilization Programs (173 - 186)             N/A     
186. Is the following information related to goods             
held under price support and stabilization                     
programs disclosed? a. basis for valuing                       
commodities including valuation method and cost                
flow assumptions (e.g., FIFO, weighted average,                
moving average, specific identification) b.                    
changes from prior years' accounting methods, if               
any c. restrictions on the use, disposal, or sale              
of commodities d. analysis of the changes in                   
dollar amount and volume of commodities, including             
those i. on hand at the beginning of the year ii.              
acquired during the year iii. disposed of during               
the year by method of disposition iv. on hand at               
the end of the year v. on hand at year's end and               
estimated to be donated or transferred during the              
coming period vi. received as a result of                      
surrender of collateral related to nonrecourse                 
loans outstanding vii. dollar value and volume of              
purchase agreement commitments (SFFAS 3, par. 108              
& 109; OMB Bulletin 01-09, pp. 76 & 77, section                
9.9)                                                           

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Section III
Balance Sheet

Assets General Property, Plant, & Equipment (Net) Yes, No, or  Explanation 
                      (187 - 233)                        N/A      
General property, plant, and equipment (PP&E) are any property, plant, and
       equipment used in providing goods or services. (SFFAS 6, par. 23)
187. Has the entity established, disclosed, and                
consistently followed appropriate capitalization               
thresholds for property, plant, and equipment                  
(PP&E) suitable to its financial and operational               
conditions? (SFFAS 6, par. 13)                                 
188. Does the entity follow a policy that ensures              
    its PP&E consists of tangible assets, including               
    land, that meet the following criteria? a. have               
estimated useful lives of 2 years or more b. are               
    not intended for sale in the ordinary course of               
    operations c. are acquired or constructed with                
    the intention of being used or being available                
       for use by the entity (SFFAS 6, par. 17)                   
     189. Does PP&E also consist of the following                 
items? a. assets acquired through capital leases,              
     including leasehold improvements b. property                 
     owned by the reporting entity in the hands of                
      others (e.g., state and local governments,                  
    colleges and universities, federal contractors)               
           c. land rights (SFFAS 6, par. 18)                      

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Section III
Balance Sheet

    Assets General Property, Plant, & Equipment   Yes, No, or N/A Explanation 
                 (Net) (187 - 233)                                
Capital leases are leases that transfer substantially all the benefits and
risks of ownership to the lessee. Operating leases are leases in which the
    federal entity does not assume the risks of ownership of PP&E. Multiyear
       service contracts and multiyear purchase agreements for expendable
commodities are not capital leases. (SFFAS 6, par. 20, footnote 22; SFFAS
                                  5, par. 43)     
     190. Does the entity classify a lease as a                   
    capital lease if at its inception the lease                   
    meets one or more of the following criteria?                  
      a. the lease transfers ownership of the                     
property to the lessee by the end of the lease                 
      term b. the lease contains an option to                     
     purchase the leased property at a bargain                    
price c. the lease term is equal to or greater                 
than 75 percent of the estimated economic life                 
    of the lease property, and the beginning of                   
    the lease term does not fall within the last                  
     25 percent of the total estimated economic                   
    life of the property d. the present value of                  
      rental and other minimum lease payments,                    
       excluding that portion of the payments                     
representing executory cost, equals or exceeds                 
     90 percent of the fair value of the leased                   
property, and the beginning of the lease terms                 
    does not fall within the last 25 percent of                   
      the total estimated economic life of the                    
    property (SFFAS 6, par. 20; SFFAS 5, par. 43                  

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Section III Balance Sheet

    Assets General Property, Plant, & Equipment   Yes, No, or N/A Explanation 
                 (Net) (187 - 233)                                
     191. Does the general PP&E asset line item                   
exclude the following items? a. items held in                  
    anticipation of physical consumption such as                  
operating materials and supplies b. items the                  
federal entity has a reversionary interest in                  
    c. heritage assets (except multiuse heritage                  
assets)25 d. stewardship land (i.e., land not                  
    included in general PP&E) (SFFAS 6, par. 19,                  
        21, 57, 58, & 68; SFFAS 16, par. 6)                       
192. In determining the level at which the                     
entity categorizes its PP&E, has the entity                    
considered the following factors? a. the cost                  
of maintaining different accounting methods                    
for property and the usefulness of the                         
information b. the diversity of the PP&E                       
(e.g., useful lives, value, alternative uses)                  
c. the programs being served by the PP&E d.                    
future disposition of the PP&E (SFFAS 6, par.                  
22)                                                            

25Multiuse heritage assets are heritage assets used predominately in
general government operations (e.g., the main Treasury building, which is
used as an office building).

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Section III Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
     193. Does the entity categorize an asset under               
       general PP&E if it has one or more of the                  
following characteristics? a. it could be used for             
      alternative purposes (e.g., by other federal                
         programs, state or local governments,                    
    nongovernmental entities) but is used to produce              
goods or services or to support the mission of the             
         entity b. it is used for business-type                   
       activities26 c. it is used by entities in                  
activities whose costs can be compared to those of             
      other entities performing similar activities                
(e.g., federal hospital services in comparison to              
    other hospitals) (SFFAS 6, par. 23; OMB Bulletin              
               01-09, p. 22, section 3.3)                         
         194. Is PP&E of entities operating as                    
    business-type activities categorized as general               
     PP&E whether or not it meets the definition of               
     other PP&E categories (e.g., heritage assets)?               
     (SFFAS 6, par. 24; OMB Bulletin 01-09, p. 22,                
                      section 3.3)                                
       195. Are land and land rights specifically                 
    acquired for or in connection with other general              
PP&E included in general PP&E? (SFFAS 6, par. 25;              
      OMB Bulletin 01-09, p. 22 & 23, section 3.3)                
196. Is all general PP&E recorded at cost? (SFFAS              
                      6, par. 26)                                 

26A business-type activity is defined as a significantly self-sustaining
activity that finances its continuing cycle of operations through the
collection of exchange revenue.

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Section III
Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
197. Does the cost of general PP&E include all                 
costs incurred to bring the PP&E to a form and                 
location suitable for its intended use, such as                
the following? a. amounts paid to vendors b.                   
transportation charges to the point of initial use             
c. handling and storage costs d. labor and other               
direct or indirect production costs (for assets                
produced or constructed) e. costs of engineering,              
architectural, and other outside services for                  
designs, plans, specifications, and surveys f.                 
acquisition and preparation costs of buildings and             
other facilities g. an appropriate share of the                
cost of the equipment and facilities used in                   
construction work h. fixed equipment and related               
installation costs required for activities in a                
building or facility i. direct costs of                        
inspection, supervision, and administration of                 
construction contracts and construction work j.                
legal and recording fees and damage claims k. fair             
value of facilities and equipment donated to the               
government l.material amounts of interest costs                
paid (SFFAS 6, par. 26)                                        

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Section III Balance Sheet

    Assets General Property, Plant, & Equipment   Yes, No, or N/A Explanation 
                 (Net) (187 - 233)                                
     198. Is the cost of general PP&E acquired                    
     under a capital lease equal to the amount                    
    recognized as a liability27 for the capital                   
     lease at its inception? (SFFAS 6, par. 29)                   
199. Is the cost of general PP&E acquired                      
through donation, will, or judicial process,                   
excluding forfeiture, capitalized at estimated                 
fair value at the time acquired by the                         
government? (SFFAS 6, par. 30)                                 
200. Is general PP&E transferred from other                    
federal entities capitalized at the book value                 
recorded by the transferring entity? (SFFAS 6,                 
par. 31)                                                       
201. Is general PP&E transferred from other                    
federal entities capitalized at the fair value                 
at the time of the transfer, if the receiving                  
entity cannot reasonably ascertain the book                    
value of the PP&E being transferred? (SFFAS 6,                 
par. 31)                                                       
202. If general PP&E is acquired through                       
exchange between a federal entity and a                        
nonfederal entity, is it capitalized at the                    
fair value of the PP&E surrendered at the time                 
of the exchange? (SFFAS 6, par. 32)                            
203. If general PP&E is acquired through                       
exchange between a federal entity and a                        
nonfederal entity and the fair value of the                    
PP&E is more readily determinable than that of                 
the PP&E surrendered, is the acquired general                  
PP&E capitalized at it's fair value? (SFFAS 6,                 
par. 32)                                                       
204. If general PP&E is acquired through                       
exchange between a federal entity and a                        
nonfederal entity and neither the fair value                   
of the PP&E acquired or surrendered is                         
determinable, is the acquired general PP&E                     
capitalized at the book value of the PP&E                      
surrendered? (SFFAS 6, par. 32)                                

27The liability is the net present value of lease payments unless the net
present value of the lease payments exceeds the fair value of the asset,
in which case the amount recorded as the liability would be the fair value
of the asset. (SFFAS 5, par. 44)

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Section III
Balance Sheet

    Assets General Property, Plant, & Equipment   Yes, No, or N/A Explanation 
                 (Net) (187 - 233)                                
     205. If cash is included in an exchange of                   
    general PP&E between a federal entity and a                   
       nonfederal entity, is the cost of PP&E                     
      acquired increased by the amount of cash                    
surrendered or decreased by the amount of cash                 
            received? (SFFAS 6, par. 32)                          
206. For general PP&E acquired through                         
exchange between a federal entity and a                        
nonfederal entity, is any difference between                   
the net recorded amount of the PP&E                            
surrendered and the cost of the PP&E acquired                  
recognized as a gain or loss? (SFFAS 6, par.                   
32)                                                            
    207. Is PP&E recognized when title passes to                  
the acquiring entity or when PP&E is delivered                 
    to the entity or to an agent of the entity?                   
                 (SFFAS 6, par. 34)                               
208. If general PP&E is under construction, is                 
    it recorded as construction work in process                   
        until it is placed into service and                       
    transferred to general PP&E? (SFFAS 6, par.                   
                        34)                                       
       Depreciation expense is calculated through the systematic and rational
        allocation of the cost of general PP&E, less its estimated salvage or
        residual value over its estimated useful life. (SFFAS 6, par. 35, OMB
                                          Bulletin 01-09, p. 23, section 3.3)
209. Is depreciation expense recognized on all                 
general PP&E, except land and land rights of                   
unlimited duration? (SFFAS 6, par. 35)                         
    210. Do estimates of useful life of general                   
    PP&E consider such factors as physical wear                   
    and tear and technological change? (SFFAS 6,                  
                      par. 35)                                    

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Section III Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
211. Are changes in estimated useful life or                   
salvage and residual value of general PP&E                     
accounted for in the period of change and future               
periods? (SFFAS 6, par. 35)                                    
      212. Is the depreciation method systematic,                 
    rational, and best reflective of the use of the               
PP&E, including the use of a composite or a group              
      methodology28 whereby the costs of PP&E are                 
    allocated using the same allocation rate? (SFFAS              
            6, par. 35; SFFAS 23, par. 9(f))                      
213. Are depreciation and amortization expenses                
accumulated in contra-asset accounts? (SFFAS 6,                
par. 36)                                                       
214. Are costs that either extend the useful life              
of existing general PP&E or enlarge or improve its             
capacity capitalized and depreciated/amortized                 
over the remaining useful life of the asset?                   
(SFFAS 6, par. 37)                                             
215. When general PP&E is disposed of, retired, or             
    removed from service, is the asset removed from               
      the asset accounts along with the associated                
    accumulated depreciation/amortization? (SFFAS 6,              
                        par. 38)                                  
216. Are the differences between the book value of             
the PP&E and the amounts realized, recognized as a             
gain or loss in the period that the general PP&E               
is disposed of, retired or removed from service?               
(SFFAS 6, par. 38)                                             
217. Is general PP&E removed from general PP&E                 
accounts along with associated accumulated                     
depreciation/amortization if prior to disposal,                
retirement, or removal from service, it no longer              
provides service in the operations of the entity?              
(SFFAS 6, par. 39)                                             

28The composite methodology is a method of calculating depreciation that
applies a single average rate to a number of heterogeneous assets that
have dissimilar characteristics and service lives. The group methodology
is a method of calculating depreciation that applies a single, average
rate to a number of homogenous assets having similar characteristics and
service lives.

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Section III
Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
218. Is such PP& E that has been removed from the              
    asset accounts recorded in an appropriate asset               
     account at its expected net realizable value?                
                   (SFFAS 6, par. 39)                             
219. Is any difference in the book value and its               
expected net realizable value of the about-to-be               
disposed, retired, or removal-from-service PP&E                
recognized as a gain or loss in the period of                  
adjustment? (SFFAS 6, par. 39)                                 
220. Is the expected net realizable value of such              
PP&E assets adjusted at the end of each accounting             
    period, and are any further adjustments in value              
    recognized as a gain or loss? (SFFAS 6, par. 39)              
    221. If historical cost information for existing              
     general PP&E has not been maintained, are cost               
estimates based on either of the following costs?              
      a. the cost of similar assets at the time of                
acquisition b. the current cost of similar assets              
       discounted for inflation since the time of                 
             acquisition (SFFAS 6, par. 40)                       

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Section III Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
      222. For general PP&E previously considered                 
         national defense PP&E, is the initial                    
capitalization amount for these assets the initial             
historical cost for the items including any major              
improvements or modifications? (SFFAS 23, par. 10)             
      223. For general PP&E previously considered                 
     national defense PP&E where obtaining initial                
     historical cost is not practical, is estimated               
       historical cost used, based on one of the                  
     following alternatives? a. current replacement               
cost of similar items, deflated through the use of             
     price-level indexes to the acquisition year or               
    estimated acquisition year if the actual year is              
     unknown b. other information indicating amount               
      expended, such as budget, appropriation, or                 
engineering documents and other reports reflecting             
    amounts expended c. other reasonable approaches               
    for estimating historical cost29 (SFFAS 23, par.              
                        12 & 13)                                  
      224. For general PP&E previously considered                 
     national defense PP&E that was in service upon               
      implementation of SFFAS 23, are cleanup cost                
liabilities adjusted as needed?30 (SFFAS 23, par.              
                          15)                                     

29For example, the latest acquisition cost may be substituted for current
replacement cost in some situations.

30This adjustment may be needed because the Department of Defense may have
already recognized the total estimated cleanup costs as a liability and
expense for some military equipment (per paragraph 101 of SFFAS 6).

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Section III Balance Sheet

Assets General Property, Plant, & Equipment (Net)  Yes, No, or Explanation 
                      (187 - 233)                         N/A     
225. Is accumulated depreciation/amortization                  
recorded based on one of the following methods? a.             
the estimated cost of the PP&E and the number of               
years the PP&E has been in use relative to its                 
estimated useful life b. the PP&E's estimated net              
remaining cost31 and the depreciation/amortization             
charged over the remaining life based on that net              
remaining cost c. a composite or a group                       
methodology whereby the costs of PP&E are                      
allocated using the same allocation rate (SFFAS 6,             
par. 41; SFFAS 23, par. 9(f))                                  
226. If general PP&E would have been substantially             
depreciated or amortized had it been recorded upon             
acquisition, does the entity weigh materiality and             
       cost-benefit in considering either of the                  
         following alternatives? a. record only                   
     improvements made during the period beyond the               
    initial expected useful life of general PP&E b.               
make an aggregate entry for whole classes of PP&E              
         (e.g., entire facilities rather than a                   
building-by-building estimate). (SFFAS 6, par. 42)             
227. In recording existing general PP&E, is the                
difference in amounts added to asset and                       
contra-accounts credited (or charged) to the net               
position of the entity, with the amount of the                 
adjustment shown as a "prior period adjustment" in             
the Statement of Changes in Net Position? (SFFAS               
6, par. 43)                                                    

31Net remaining cost is the original cost of the asset less any
accumulated depreciation/amortization to date (i.e., book value).

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Section III
Balance Sheet

Assets General Property, Plant, & Equipment (Net) Yes, No, or  Explanation 
                      (187 - 233)                        N/A      
228. In recording existing general PP&E                        
previously identified as national defense PP&E,                
is the difference in amounts added to asset and                
contra accounts reported as a "change in                       
accounting principle" and reflected as an                      
adjustment to the beginning balance of cumulative              
results of operations in the statement of changes              
in net position, for the period the change is                  
made? (SFFAS 23, par. 10 & 16)                                 
229. Does the entity make the following minimum                
disclosures about its general PP&E? a. the cost,               
associated accumulated depreciation, and book                  
value by major class (e.g., building and                       
structures, fixtures, equipment) b. the estimated              
useful lives for each major class c. the                       
method(s) of depreciation for each major class d.              
capitalization threshold(s) including any changes              
in thresholds(s) during the period e.                          
restrictions on the use or convertibility of                   
general PP&E (SFFAS 6, par. 45; OMB Bulletin                   
01-09, p. 77, section 9.10)                                    
     Property, plant, and equipment are classified as heritage assets if they
have (1) historical or natural significance; (2) cultural, educational, or
        artistic importance; or (3) significant architectural characteristic.
     (SFFAS 6, par. 57) Multiuse heritage assets are heritage assets that are
    predominately used in general government operations (e.g., buildings such
         as the main Treasury building, which is used as an office building).
                   (SFFAS 16, par. 6; OMB Bulletin 01-09, p. 23, section 3.3)
230. If the predominant use of the heritage                    
asset(s) is in general government operations, is               
the acquisition, betterment, or reconstruction of              
the asset(s) capitalized as general PP&E and                   
depreciated over its useful life? (SFFAS 16, par.              
6 & 9; OMB Bulletin 01-09, p. 23, section 3.3; p.              
98, section 10.2A)                                             

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Section III
Balance Sheet

    Assets General Property, Plant, & Equipment   Yes, No, or N/A Explanation 
                 (Net) (187 - 233)                                
    231. Does the entity also include a footnote                  
disclosure explaining that "physical quantity"                 
    information for the multiuse heritage assets                  
      is included in supplemental stewardship                     
reporting for heritage assets? (SFFAS 16, par.                 
9; OMB Bulletin 01-09, p. 23, section 3.3; p.                  
                 98, section 10.2A)                               
     232. Are multiuse heritage assets acquired                   
      through donation or devise recognized as                    
general PP&E at the assets' fair value? (SFFAS                 
                    16, par. 11)                                  
233. For multiuse heritage assets acquired                     
through donation or devise, are the assets                     
fair value also recognized as "nonexchange                     
revenue," as defined in SFFAS 7? (SFFAS No.                    
16, par. 11)                                                   

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Section III
Balance Sheet

            Assets Software (234 - 262)           Yes, No, or N/A Explanation 
        Software includes the application and operating system programs,
     procedures, rules, and any associated documentation pertaining to the
     operation of a computer system or program. "Internal use software" is
      software that is purchased from commercial vendors "off the shelf,"
internally developed, or contractor-developed solely to meet the entity's
               internal or operational needs. (SFFAS 10, par. 8)
    234. Does the entity capitalize the cost of                   
       software when such software meets the                      
        following criteria? a. specifically                       
identifiable b. determinate life of 2 years or                 
more c. not intended for sale in the ordinary                  
course of operations d. acquired or developed                  
with the intention of being used by the entity                 
    e. meets the criteria for general property,                   
     plant, and equipment in that it is used in                   
providing goods and services (SFFAS 6, par. 17                 
             & SFFAS 10, par. 15 & 38)                            
    235. Does the capitalized cost of internally                  
      developed software include the full cost                    
     (i.e., direct and indirect costs) incurred                   
during the software development stage? (SFFAS                  
                    10, par. 16)                                  

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Section III Balance Sheet

              Assets Software (234 - 262)             Yes, No, or Explanation 
                                                          N/A     
236. Are capitalized internally developed software             
development costs limited to costs incurred after              
the following steps have been taken? a. management             
authorizes and commits to a computer software                  
project and believes that it is more likely than               
not that the project will be completed and the                 
software will be used to perform the intended                  
function with an estimated service life of 2 years             
or more b. the conceptual formulation, design, and             
testing of possible software project alternatives              
(i.e., preliminary design stage) have been                     
completed. (SFFAS 10, par. 16)                                 
     237. Do software capitalization costs include                
       costs for new software32 and documentation                 
              manuals? (SFFAS 10, par. 17)                        
      238. Do the capitalized costs for commercial                
    off-the-shelf (COTS) software include the amount              
        paid to the vendor? (SFFAS 10, par. 18)                   
           239. Do the capitalized costs for                      
    contractor-developed software include the amount              
paid to a contractor to design, program, install,              
    and implement the software? (SFFAS 10, par. 18)               
240. Does the entity capitalize material internal              
        costs incurred to implement the COTS or                   
    contractor-developed software and otherwise make              
         it ready for use? (SFFAS 10, par. 18)                    

32Examples of costs for new software are salaries of programmers, systems
analysts, project managers, and administrative personnel; associated
employee benefits; outside consultants' fees; rent; and supplies.

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Section III Balance Sheet

              Assets Software (234 - 262)             Yes, No, or Explanation 
                                                          N/A     
241. Does the entity expense as incurred all data              
conversion costs for internally developed,                     
contractor-developed, or COTS software as well as              
the cost to develop or obtain software that allows             
for access or conversion of existing data to the               
new software? (SFFAS 10, par. 19)                              
242. Does the entity expense costs incurred after              
the completion of final acceptance testing? (SFFAS             
                      10, par. 20)                                
243. Does the entity treat software that serves                
both internal uses and stewardship purposes33 as               
internal use software and capitalize it to the                 
extent such software meets criteria for general                
PP&E? (SFFAS 10, par. 21)                                      
244. Is computer software that is integrated into              
    and necessary to operate general PP&E,34 rather               
    than perform an application, considered part of               
    the PP&E of which it is an integral part, and is              
it capitalized and depreciated accordingly? (SFFAS             
                      10, par. 22)                                
245. If the entity purchased software as part of a             
    package of products and services, does it use a               
reasonable estimate of the relative fair value of              
the individual elements in allocating the cost as              
capitalizable or noncapitalizable (i.e., expense)              
             elements? (SFFAS 10, par. 23)                        
246. If the entity purchased software as part of a             
package of products and services, does it expense              
       software costs that are not susceptible to                 
     allocation between maintenance and relatively                
        minor enhancements? (SFFAS 10, par. 23)                   

33Software that serves both internal uses and stewardship purposes is
referred to as multiuse software. An example is a global positioning
system used in connection with national defense activities and general
operating activities and services.

34For example, such software could include software necessary to operate
airport radar and computer operated lathes.

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Page 74

Section III
Balance Sheet

                Assets Software (234 - 262)              Yes, No, Explanation 
                                                          or N/A  
      247. Has the entity established capitalization              
    thresholds for its internal-use software including            
    bulk purchases of software programs and modules or            
     components of a total software system? (SFFAS 10,            
                         par. 24)                                 
248. Does the entity capitalize the acquisition cost           
of enhancements to existing internal-use software, as          
well as related modules, when it is more likely than           
    not that they will result in significant additional           
             capabilities? (SFFAS 10, par. 25)                    
249. Does the entity expense, in the period incurred,          
the cost of minor enhancements resulting from ongoing          
systems maintenance as well as the purchase of                 
enhanced versions of software for a minimal charge?            
(SFFAS 10, par. 26)                                            
     250. Are costs incurred solely to repair a design            
flaw or to perform minor upgrades that may extend the          
        useful life of the software without adding                
        capabilities expensed? (SFFAS 10, par. 27)                
251. Does the entity recognize a loss upon impairment          
          of computer software if either of these                 
    postimplementation/operational conditions apply? a.           
       the software is no longer expected to provide              
     substantive service potential and will be removed            
from service b. a significant reduction occurs in the          
capabilities, functions, or uses of the software (or           
         module thereof) (SFFAS 10, par. 28 & 29)                 

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Section III
Balance Sheet

              Assets Software (234 - 262)             Yes, No, or Explanation 
                                                          N/A     
252. If impaired software is to remain in use, is              
       the loss due to impairment measured as the                 
    difference between the book value and either of               
     the following amounts? a. the cost to acquire                
     software that would perform similar remaining                
     functions (i.e., unimpaired functions) b. the                
       portion of book value attributable to the                  
     remaining functional elements of the software                
                  (SFFAS 10, par. 29)                             
      253. If the loss due to impairment cannot be                
     determined, is the book value of the software                
    amortized over the remaining useful life of the               
             software? (SFFAS 10, par. 29)                        
    254. If impaired software is to be removed from               
use, is the loss due to impairment measured as the             
     difference between the book value and any net                
      realizable value (NRV)? (SFFAS 10, par. 30)                 
255. In situations of impaired software to be                  
removed from use, does the entity transfer the                 
NRV, if any, to an appropriate asset account until             
such time as the software is disposed of and the               
NRV realized? (SFFAS 10, par. 30)                              
256. If the entity's managers conclude that it is              
no longer "more likely than not" that                          
developmental software or a module thereof will be             
completed and placed in service, is the                        
accumulated book value or the balance in a work in             
process account, if applicable, reduced to reflect             
the expected NRV and a loss recognized? (SFFAS 10,             
par. 31)                                                       
257. Does the entity amortize capitalized internal             
    use software systematically and rationally over               
the estimated useful life of the software? (SFFAS              
                      10, par. 32)                                

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Section III
Balance Sheet

            Assets Software (234 - 262)           Yes, No, or N/A Explanation 
      258. Does amortization of each module or                    
     component of a software project begin when                   
that module or component has been successfully                 
            tested? (SFFAS 10, par. 33)                           
259. If the use of a module is dependent on                    
the completion of another module(s), does the                  
amortization begin only when both that module                  
and the other module(s) have successfully                      
completed testing? (SFFAS 10, par. 33)                         
260. Are additions to the book value or                        
changes in useful life of capitalized software                 
treated prospectively (i.e., during the period                 
of change and future periods only) when the                    
software is amortized? (SFFAS 10, par. 34)                     
       261. When the entity replaces existing                     
    internal-use software with new software, is                   
      the unamortized cost of the old software                    
         expensed when the new software has                       
     successfully completed testing? (SFFAS 10,                   
                      par. 34)                                    
    262. Does the entity disclose, if material,                   
      the following information regarding its                     
capitalized software? a. the cost, associated                  
amortization, and book value b. the estimated                  
    useful life for each major class of software                  
    c. the method(s) of amortization (SFFAS 10,                   
             par. 35; SFFAS 6, par. 45)                           

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Section III
Balance Sheet

        Assets Other Assets (263 - 268)       Yes, No, or N/A   Explanation   
263. Does the entity include under the                     
"other" assets category assets that are                    
not reported in a separate category on the                 
face of the balance sheet? (OMB Bulletin                   
01-09, p. 23, section 3.3)                                 
264. Are other assets listed and described                 
in a note to the financial statements and                  
broken out by major homogenous components                  
       and intragovernmental versus other                     
(nonfederal) entity assets)? (OMB Bulletin                 
          01-09, p. 78, section 9.11)                         
Advances are cash outlays made by a federal entity to its employees,
contractors, grantees, or others to cover the recipient's anticipated
expenses or as advance payments for the costs of goods and services
acquired by an entity. (SFFAS 1, par. 57 & OMB Bulletin 01-09, p. 23,
section 3.3) Prepayments are payments made by a federal entity to cover
certain periodic expenses before those expenses are incurred (SFFAS 1,
par. 58; OMB Bulletin 01-09, p. 23, section 3.3) Progress payments on work
in progress are not included in advances and prepayments (OMB Bulletin
01-09, p. 23, section 3.3)                 
265. Are advances and prepayments recorded                 
    as assets and disclosed in the notes to                   
    the financial statements? (SFFAS 1, par.                  
     59; OMB Bulletin 01-09, p. 23, section                   
                      3.3)                                    
266. Are amounts of advances or                            
prepayments that are subject to a refund                   
transferred to accounts receivable? (SFFAS                 
1, par. 59)                                                
267. Are advances and prepayments paid out                 
reported separately as assets and not                      
netted against the liability for advances                  
and prepayments that the entity received?                  
(SFFAS 1, par. 60)                                         
268. Are advances and prepayments that are                 
made to federal entities accounted for and                 
reported separately from those made to                     
nonfederal entities? (SFFAS 1, par. 61)                    

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Section III Balance Sheet

     Liabilities Liabilities in General     Yes, No, or N/A     Explanation   
                (269 - 272)                                   
Liabilities of the federal agencies are reported under two major
categories: (1) liabilities covered by budgetary resources35 and (2)
liabilities not covered by budgetary resources.36 Within each of these two
categories, liabilities are classified as (1) intragovernmental
liabilities, which are amounts owed to other federal entities or (2)
governmental liabilities, which are amounts owed to nonfederal entities by
the federal government or an entity within the federal government. (SFFAS
1, par. 21; SFFAS 5, footnote 1 in summary; OMB Bulletin 01-09, p. 24,
section 3.4 & pp. 78 & 79, section 9.12)
269. Are liabilities covered by                            
budgetary resources and liabilities                        
not covered by budgetary resources                         
combined on the face of the balance                        
sheet? (OMB Bulletin 01-09, p. 17,                         
section 3.1, p. 24, section 3.4 & pp.                      
78 & 79, section 9.12)                                     

35Liabilities covered by budgetary resources are liabilities covered by
realized budgetary resources as of the balance sheet date. Budgetary
resources include (1) new budget authority, (2) unobligated balances of
budgetary resources at the beginning of the year or net transfers of prior
year balances during the year, (3) spending authority from offsetting
collections (credited to an appropriation or fund account), (4) recoveries
of unexpired budget authority through downward adjustments of prior year
obligations, and (5) permanent indefinite appropriations or borrowing
authority, which have been enacted and signed into law as of the balance
sheet date, provided that the resources may be apportioned by OMB without
further action by the Congress and without a contingency having to be met.

36Liabilities not covered by budgetary resources are liabilities for which
congressional action is needed before budgetary resources can be provided.

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Section III Balance Sheet

     Liabilities Liabilities in General (269 - 272)   Yes, No, or Explanation 
                                                          N/A     
270. Are the amounts and types of liabilities not              
covered by budgetary resources disclosed? (SFFAS1,             
par. 80 & 86; OMB Bulletin 01-09, p. 17, section               
3.1 & p. 24, section 3.4)                                      
271. Does the federal entity recognize a liability             
for probable37 and measurable38 future outflows or             
other sacrifices of resources arising from one or              
     more of the following events? a. past exchange               
transactions b. government-related events, such as             
    a federal entity accidentally causing damage to               
      private property c. government-acknowledged                 
    events, such as natural disasters, for which the              
government has taken formal responsibility for the             
    related costs d. nonexchange transactions that,               
    according to current law and applicable policy,               
    are unpaid amounts due as of the reporting date               
    (SFFAS 5, par. 19-34; OMB Bulletin 01-09, p. 23,              
                      section 3.4)                                
272. Are liabilities recognized when incurred                  
regardless of whether they are covered by                      
available budgetary resources (including those                 
liabilities related to appropriations canceled                 
under "M" account legislation)? (OMB Bulletin                  
01-09, p. 24, section 3.4)                                     

37Probable refers to that which can be reasonably expected or is believed
to be more likely than not on the basis of available evidence or logic.
However, in the context of assessing the outcome of matters of pending or
threatened litigation and unasserted claims and recognizing an associated
liability, "probable" refers to that which is likely, not to that which is
"more likely than not."

38Measurable refers to that which can be quantified in monetary units with
sufficient reliability to be reasonably estimable.

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Section III
Balance Sheet

Liabilities Accounts Payable and Interest Payable Yes, No, or  Explanation 
                      (273 - 280)                        N/A      
Accounts payable are amounts owed by a federal entity for goods and
services received from, progress in contract performance made by, and
rents due to other entities. (SFFAS 1, par. 74; OMB Bulletin 01-09, p. 24,
section 3.4)                                      
273. Do accounts payable exclude amounts related               
to ongoing continuous expenses, such as salary                 
and related benefits expense, which are                        
classified as other current liabilities? (SFFAS                
1, par. 75)                                                    
274. Are (intragovernmental) accounts payable                  
owed to other federal agencies reported                        
separately from those owed to the public? (SFFAS               
1, par. 76; OMB Bulletin 01-09, p. 18, section                 
3.2 & p. 24, section 3.4)                                      
275. When an entity accepts title to goods,                    
whether the goods are delivered or in transit,                 
does the entity recognize a liability for the                  
unpaid cost of goods? (SFFAS 1, par. 77)                       
276. If invoices for goods, for which the entity               
    has accepted the title, are not available, does               
    the entity estimate the amount owed? (SFFAS 1,                
                       par. 77)                                   
277. For facilities or equipment constructed or                
manufactured by contractors or grantees according              
to agreements or contract specifications, are                  
amounts recorded as payable based on an estimate               
of work completed under the contract or the                    
agreement in accordance with the federal entity's              
engineering and management evaluation of actual                
performance progress and incurred costs? (SFFAS                
1, par. 78 & 79)                                               
    278. Does the entity disclose accounts payable                
     not covered by budgetary resources? (SFFAS 1,                
par. 80; OMB Bulletin 01-09, p. 24, section 3.4;               
                 p. 78, section 9.12)                             

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Section III
Balance Sheet

     Liabilities Accounts Payable and Interest    Yes, No, or N/A Explanation 
                Payable (273 - 280)                               
      279. Is interest incurred but unpaid on                     
     borrowed funds, late payments, and refunds                   
recognized as interest payable and reported as                 
a liability at the end of each period? (SFFAS                  
1, par. 81; OMB Bulletin 01-09, p. 24, section                 
                        3.4)                                      
280. Is interest payable to federal entities                   
reported separately from interest payable to                   
the public? (SFFAS 1, par. 82)                                 

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Section III Balance Sheet

       Liabilities Liabilities for Loan      Yes, No, or N/A    Explanation   
            Guarantees (281 - 294)                             
A loan guarantee is any guarantee, insurance (but not deposit insurance),
or other pledge with respect to the payment of all or part of the
principal or interest on any debt obligation of a nonfederal borrower to a
nonfederal lender. (SFFAS 2, app. C) The Federal Credit Reform Act of 1990
requires federal entities to estimate and budget for the costs arising
from default of guaranteed loans made after fiscal year (FY) 1991 (i.e.,
post 1991). (SFFAS 2, par. 7)            
281. Is the present value of estimated                      
net cash outflows from post-1991 (i.e.,                     
committed after September 30, 1991) loan                    
guarantees recognized as a liability?                       
(SFFAS 2, par. 7 & 23)                                      
    282. Does the entity disclose by loan                      
     program the face value of guaranteed                      
     loans outstanding and the amount of                       
outstanding principal guaranteed? (SFFAS                    
2, par. 23; OMB Bulletin 01-09, pp. 60,                     
        65, & 72, section 9.8, item J)                         
283. Does the entity disclose by loan                       
program the estimated liabilities39                         
arising from post-1991 loan guarantees?                     
(OMB Bulletin 01-09, pp. 60, 61, 65, &                      
72, section 9.8, item K)                                    
284. Is a liability for a pre-1992                          
(i.e., committed before October 1, 1991)                    
loan guarantee recognized when it is                        
more likely than not that the loan                          
guarantee will require a future cash                        
outflow to pay a default claim? (SFFAS                      
2, par. 39 & app. B, part IV A)                             
    285. Does the entity disclose by loan                      
      program the estimated liabilities                        
    arising from pre-1992 loan guarantees?                     
(OMB Bulletin 01-09, p. 25, section 3.4;                    
      pp. 60 & 72, section 9.8, item K)                        

39The present value of the estimated net cash flows (outflows less
inflows) to be paid by the entity arising from loan guarantees.

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Section III Balance Sheet

Liabilities Liabilities for Loan Guarantees (281 - Yes, No, or Explanation 
                          294)                            N/A     
     286. Are the liabilities for the pre-1992 loan               
guarantees reestimated each year as of the date of             
      the financial statements? (SFFAS 2, par. 39)                
    287. Does the entity disclose, by loan program,               
whether pre-1992 loan guarantees are reported on a             
           present-value basis40 or under the                     
allowance-for-loss method?41 (OMB Bulletin 01-09,              
         p. 68, section 9.8, item A, 4th par.)                    
    288. When the total loan guarantee liability for              
    all of the credit programs is negative, is this               
reported as an asset? (OMB Bulletin 01-09, p. 25,              
                      section 3.4)                                
289. If loan guarantee liability is the result of              
both positive and negative amounts of the various              
components, is the total shown as a liability, and             
are the negative components (of the loan guarantee             
liability) disclosed? (OMB Bulletin 01-09, p. 25,              
                      section 3.4)                                
290. When post-1991 loan guarantees are modified,              
is the existing book value of the related                      
liability changed to an amount equal to the                    
present value of net cash outflows that are                    
projected under the modified terms from the time               
of the modification to the loan's maturity, and                
discounted at the original discount rate?42 (SFFAS             
2, par. 50 & app. B, part III D(4); SFFAS 19, par.             
7(d))                                                          

40Under the present-value method, the liability for loan guarantees is the
present value of the expected net cash outflows due to the loan
guarantees.

41Under the allowance-for-loss method, the liability for loan guarantees
is the amount the agency estimates will more likely than not require
future cash outflow to pay default claims.

42The original discount rate is the rate that was originally used to
calculate the present value of the liability when the guaranteed loans
were disbursed, after adjusting for the interest rate reestimate.

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Section III
Balance Sheet

Liabilities Liabilities for Loan Guarantees (281 - Yes, No, or Explanation 
                          294)                            N/A     
291. When pre-1992 loan guarantees are directly                
modified, does the following occur? a. the loan                
guarantees are transferred from the liquidating                
account to a financing account b. the existing                 
book value of the liability of the modified loan               
guarantees is changed to an amount equal to their              
postmodification liability (i.e., the present                  
value of the net cash outflows under                           
postmodification terms discounted at the current               
Treasury rate) (SFFAS 2, par. 51 & app. B, part IV             
B (2) & (4))                                                   
292. When pre-1992 loan guarantees are indirectly              
modified, does the following occur? a. The loan                
guarantees are kept in a liquidating account. b.               
The related liability is reassessed and adjusted               
to reflect any change in the liability resulting               
from the modification. (SFFAS 2, par. 51)                      
293. Are subsequent modifications of pre-1992 loan             
    guarantees treated as modifications of post-1991              
          loan guarantees? (SFFAS 2, par. 51)                     
294. If a post-1991 or pre-1992 loan is sold with              
       a recourse provision, is the present value                 
(discounted at the Treasury rate in effect at the              
       time of the sale) of the estimated losses                  
       recognized as a subsidy expense and a loan                 
    guarantee liability? (SFFAS 2, par. 54 & app. B,              
                      part I F(3))                                

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Section III Balance Sheet

     Liabilities Lease Liabilities (295 - 299)    Yes, No, or N/A Explanation 
Capital leases are leases that transfer substantially all of the benefits
and risks of ownership to the lessee. (SFFAS 5, par. 43)
295. Is the amount recorded by the lessee as a                 
    liability under a capital lease arrangement                   
the present value of rental and other minimum                  
     lease payments (excluding executory costs)                   
     during the lease term? (SFFAS 5, par. 44)                    
    296. If the present value of the rental and                   
other minimum lease payments during the lease                  
     term exceeds the fair value of the leased                    
     property, is the liability recorded as the                   
fair value43 of the property at the inception                  
          of the lease? (SFFAS 5, par. 44)                        
297. Does the entity use the applicable                        
Treasury borrowing rate to determine the                       
discount rate charged on a capital lease                       
unless both of the following apply? a. It is                   
practicable for the lessee to learn the                        
implicit rate computed by the lessor. b. The                   
implicit rate is less than the Treasury                        
borrowing rate. (SFFAS 5, par. 45)                             
298. During the lease term, is each minimum                    
lease payment allocated between a reduction of                 
the obligation and interest expense so as to                   
produce a constant periodic rate of interest                   
on the remaining balance of the liability?                     
(SFFAS 5, par. 46)                                             

43Fair value is the price for which an asset could be bought or sold in an
arm's-length transaction between unrelated parties. Roman L. Well and
Patrick C. O'Brien, Accounting: The Language of Business, 9th ed. (Sun
Lakes, Arizona: Thomas Horton and Daughters, 1994).

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Section III
Balance Sheet

     Liabilities Lease Liabilities (295 - 299)    Yes, No, or N/A Explanation 
299. Does the entity disclose, in a note to                    
the financial statements, the following                        
information about its capital leases? a. gross                 
amounts of assets under capital lease by major                 
asset category b. description of the lease                     
arrangements, for example, future funding                      
commitments, lease terms, renewal options,                     
escalation clauses, restrictions, amortization                 
periods c. future payments due, by major asset                 
category, and deductions for imputed interest                  
and executory costs for all noncancelable                      
leases with terms longer than 1 year d. a                      
breakout of portions of the capital lease                      
liability covered by budgetary resources and                   
not covered by budgetary resources (OMB                        
Bulletin 01-09, p. 84-85, section 9.17)                        

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Section III Balance Sheet

Liabilities Federal Debt and Related Interest  Yes, No, or N/A Explanation 
                    (300 - 310)                                   
Debts are amounts borrowed from the Treasury, the Federal Financing Bank,
other federal agencies, or the public under general or special financing
authority such as Treasury bills, notes, bonds, and Federal Housing
Administration (FHA) debentures. (SFFAS 5, par. 47; OMB Bulletin 01-09, p.
25, section 3.4)                               
    300. Does the entity accounting for federal                   
    debt identify the amount of the outstanding                   
      debt liability at any given time and the                    
     related interest cost for each accounting                    
             period? (SFFAS 5, par. 48)                           
     301. Are fixed-value securities with known                   
     redemption or maturity amounts at time of                    
     issue valued at their original face (par)                    
      value net of any unamortized discount or                    
            premium? (SFFAS 5, par. 50)                           
302. For fixed-value securities, is either the                 
straight line or interest method44 of discount                 
or premium amortization used in the following                  
cases? a. short-term securities with a                         
maturity of 1 year or less b. longer term                      
securities, where the difference between the                   
amount of amortization under the interest and                  
straight-line methods is immaterial (SFFAS 5,                  
par. 50)                                                       
      303. For fixed-value securities, is the                     
      interest method used for amortizing any                     
    discount or premium on all cases other than                   
     those described in the previous question?                    
                 (SFFAS 5, par. 51)                               
    304. If the entity has issued variable value                  
    securities of unknown redemption or maturity                  
    values, are they appraised at their original                  
    value and periodically revalued on the basis                  
      of the regulations or offering language?                    
                 (SFFAS 5, par. 52)                               

44The interest method for amortizing a bond premium or discount reduces
the discount or premium by the difference between the effective interest
and stated interest on the bond. (SFFAS 1, app B, tables 1 & 2)

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Section III
Balance Sheet

Liabilities Federal Debt and Related Interest (300 Yes, No, or Explanation 
                         - 310)                           N/A     
305. Are old currencies issued by the federal                  
government and not yet redeemed or written off                 
identified as a noninterest bearing federal debt               
liability at face value? (SFFAS 5, par. 55)                    
     306. Is all debt owed to Treasury, the Federal               
Financing Bank, or other federal agencies reported             
under intragovernmental liabilities on the balance             
     sheet and disclosed by category? (OMB Bulletin               
        01-09, p. 18 & pp. 79-80, section 9.13)                   
307. Are the beginning balances, net borrowings,               
and ending balances of debt disclosed by the                   
following categories? a. total Treasury debt                   
(reported by the Treasury Department only) broken              
out by government accounts and debt held by the                
public b. total agency debt issued under special               
financing authority (e.g., Federal Housing                     
Administration (FHA) debentures and Tennessee                  
Valley Authority (TVA) bonds) broken out by debt               
held by government accounts and debt held by the               
public c. other debt broken out by debt owed to                
the Treasury, debt owed to the Federal Financing               
Bank, and debt owed to other federal agencies (OMB             
Bulletin 01-09, pp. 79 & 80, section 9.13)                     
    308. Is all debt owed to the public reported and              
    disclosed as such? (OMB Bulletin 01-09, p. 18 &               
                pp. 79-80, section 9.13)                          
     309. Are the names of the agencies disclosed,                
other than Treasury or the Federal Financing Bank,             
    to which intragovernmental debt is owed, and are              
the amounts disclosed? (OMB Bulletin 01-09, p. 80,             
                     section 9.13)                                

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Section III
Balance Sheet

Liabilities Federal Debt and Related Interest  Yes, No, or N/A Explanation 
                    (300 - 310)                                   
     310. Is other information relative to debt                   
    disclosed (e.g., redemption or call of debt                   
     owed to the public before maturity dates,                    
    write-offs of debts owed to Treasury or the                   
Federal Financing Bank)? (OMB Bulletin 01-09,                  
                p. 80, section 9.13)                              

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Section III
Balance Sheet

Liabilities Pensions, Other Retirement                                     
Benefits, and Postemployment Benefits    Yes, No, or N/A     Explanation
                (311 - 318)                                   
Federal employee and veterans benefits include the actuarial portion of
pensions, other retirement benefits, and other postemployment benefits.
They do not include liabilities related to ongoing continuous expenses
such as employees' accrued salary, accrued annual leave, unpaid portions
of employee benefits, and other benefits that are currently due. These
items are reported under the "other liabilities" line item. (SFFAS 1, par.
83 & 84; SFFAS 5, par. 56; OMB Bulletin 01-09, p. 25, section 3.4) In the
context of accounting for pensions, other retirement benefits (ORB), and
other postemployment benefits, the "administrative entity" manages and
accounts for the pension or other employee plan, while the "employer
entity" employs federal workers and generates employee costs, for which it
would typically receive a salary and expense appropriation. (SFFAS 5, par.
57, footnote 38) The "aggregate entry age normal" actuarial cost method is
one under which the expenses or liabilities arising from the actuarial
present value of projected pension benefits are allocated on a level basis
over the earnings or the service of the group between entry age and
assumed exit ages. The portion of the actuarial present value allocated to
a valuation year is called "normal cost." (SFFAS 5, par. 64)
311. Is the aggregate entry age normal                     
actuarial cost method used to                              
calculate, for the administrative                          
entity financial statements, the                           
liabilities arising from pension and                       
ORB expenses? (SFFAS 5, par. 64 & 82)                      
312. If other actuarial cost methods                       
are used because the results are not                       
materially different, does the entity                      
provide an explanation why aggregate                       
entry age normal is not used? (SFFAS                       
5, par. 64 & 82)                                           
313. Does the administrative entity                        
disclose the assumptions used to                           
calculate the liability for pensions,                      
other retirement benefits, and other                       
postemployment benefits? (SFFAS 5,                         
par. 67 & 83; OMB Bulletin 01-09, p.                       
25, section 3.4; p. 80, section 9.14)                      

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Section III
Balance Sheet

    Liabilities Pensions, Other Retirement Benefits,  Yes, No, or Explanation 
        and Postemployment Benefits (311 - 318)           N/A     
314. If the assumptions for a pension plan differ              
from the assumptions used by the three primary                 
plans-Civil Service Retirement System (CSRS),                  
Federal Employees Retirement System (FERS), and                
Military Retirement System (MRS)-does the                      
administrative entity disclose how and why the                 
assumptions differ from those of the primary                   
plans? (SFFAS 5, par. 67; OMB Bulletin 01-09, p.               
80, section 9.14)                                              
315. Does the administrative entity report pension             
     and ORB assets separately from liabilities as                
    opposed to netting them out? (SFFAS 5, par. 68 &              
                          85)                                     
316. Does the administrative entity carry pension              
and ORB assets at their acquisition cost, adjusted             
    for amortization, if appropriate? (SFFAS 5, par.              
                        68 & 85)                                  
317. Does the administrative entity disclose the               
market value of pension and ORB investments in                 
market-based and marketable securities? (SFFAS 5,              
par. 68 & 85)                                                  
318. Does the employer entity recognize the                    
long-term other postemployment benefits liability              
as the present value of future payments discounted             
at the Treasury borrowing rate for securities of               
similar maturity? (SFFAS 5, par. 95)                           

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Section III
Balance Sheet

    Liabilities Other Liabilities (319 - 352)  Yes, No, or N/A  Explanation   
Unless they are reported separately, other liabilities cover liabilities
not recognized in other categories. They may include, but are not limited
to: capital leases, insurance, advances and prepayments, deposit funds
held in escrow, accrued liabilities related to ongoing continuous expenses
such as federal employee salaries and accrued employee annual leave, and
estimated losses for claims and other contingencies. Claims and other
contingencies include indemnity agreements, adjudicated claims, and
commitments to international institutions. (SFFAS 1, par. 83-86; OMB
Bulletin 01-09, p. 26, section 3.4)         
     319. Does the entity separately report                    
      items within other liabilities if the                    
amounts are material? (OMB Bulletin 01-09,                  
               p. 26, section 3.4)                             
320. Do all federal insurance and guarantee                 
programs (except social insurance and loan                  
guarantee programs) recognize a liability                   
for unpaid claims incurred resulting from                   
insured events that have occurred as of the                 
reporting date? (SFFAS 5, par. 104; OMB                     
Bulletin 01-09, p. 26, section 3.4)                         
321. Do federal insurance programs accrue a                 
contingent liability when an existing                       
condition, situation, or set of                             
circumstances involving uncertainty as to                   
possible loss exists, and when the                          
following conditions apply? a. the                          
uncertainty will be resolved when one or                    
more probable future events occur or fail                   
to occur. b. future outflow or other                        
sacrifice of resources is probable and                      
measurable. (SFFAS 5, par. 104 & 108; OMB                   
Bulletin 01-09, pp. 26 & 27, section 3.4)                   
      322. Does the entity also recognize a                    
liability for future life insurance policy                  
     benefits (such as death or disability)?                   
(SFFAS 5, par. 104; OMB Bulletin 01-09, p.                  
                27, section 3.4)                               

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Section III
Balance Sheet

       Liabilities Other Liabilities (319 - 352)     Yes, No, or  Explanation 
                                                         N/A      
323. When insurance payments and losses extend                 
beyond the current year, does the liability at                 
the end of the year represent net losses                       
calculated on a present-value basis to reflect                 
the time value of money? (SFFAS 5, par. 109)                   
324. Does the entity report under "required                    
supplementary information" (RSI) the major                     
assumptions and "risks assumed" (i.e., the                     
present value of unpaid expected losses net of                 
associated premiums based on risk inherent in the              
insurance or guarantee coverage) for all                       
sponsored insurance programs (except for social                
insurance, life insurance, and loan guarantee                  
programs)? (SFFAS 5, par. 105 & 106; SFFAS 25,                 
par. 4)                                                        
    325. Does the entity also report under RSI the                
     indicators of the range of uncertainty around                
    insurance-related estimates and sensitivity of                
    the estimates to changes in major assumptions?                
         (SFFAS 5, par. 114; SFFAS 25, par.4)                     
The liability for future policy benefits is the present value of future
outflows to be paid to (or on behalf of) policyholders, less the present
value of future related premiums. In general, for whole life policies, the
liability for future policy benefits should be no less than the cash
surrender value that accrues to the benefit of the policyholder. (SFFAS 5,
par. 116)                                         

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Section III Balance Sheet

     Liabilities Other Liabilities (319 - 352)    Yes, No, or N/A Explanation 
326. Are liabilities for future benefits of                    
whole life insurance policies reported and                     
disclosed in accordance with private sector                    
standards (i.e., Financial Accounting                          
Standards Board (FASB) Statement of Accounting                 
Standards (SFAS) 60, 97, & 120; American                       
Institute of Certified Public Accountants                      
(AICPA) Statement of Position (SOP) 95-1)?                     
(SFFAS 5, par. 117; OMB Bulletin 01-09, p. 85,                 
section 9.18)                                                  
    327. Does the liability for future benefits                   
      relating to participating life insurance                    
      contracts equal the sum of the following                    
amounts? a. the net level premium reserve for                  
       death and endowment policy benefits b.                     
    liability for terminal dividends and c. any                   
premium deficiency45 (SFFAS 5, par. 118 & 120)                 
328. Has the entity made an assessment to                      
compare the liability for future policy                        
benefits using actuarial assumptions                           
applicable at the time the contract was made                   
(contract assumptions) with the liability for                  
future policy benefits using assumptions that                  
consider the following factors? a. current                     
economic conditions (i.e., current and                         
expected investments and expected long-term                    
yields) b. experience (i.e., mortality,                        
morbidity, and termination rates) (SFFAS 5,                    
par. 119)                                                      

45A premium deficiency occurs if the liability for future policy benefits
using current conditions exceeds the liability for future policy benefits
using contract conditions.

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Section III Balance Sheet

       Liabilities Other Liabilities (319 - 352)      Yes, No, or Explanation 
                                                          N/A     
      329. Does the entity separately disclose the                
    components46 of the liability for future policy               
    benefits of whole life insurance contracts along              
with a description of each amount and explanation              
of its projected use and any other potential uses?             
     (SFFAS 5, par. 121; OMB Bulletin 01-09, p. 85,               
                     section 9.18)                                
330. Does the reporting entity disclose and break              
out the following items? a. the portion of other               
liabilities covered by budgetary resources and the             
portion not covered by budgetary resources b. the              
portion of other liabilities payable to federal                
entities (i.e., intragovernmental liabilities) and             
the portion payable to nonfederal entities c. the              
portion of other liabilities that are noncurrent               
and the portion that are current (SFFAS 1, par. 85             
& 86; OMB Bulletin 01-09, pp. 78 & 79, section                 
9.l2 & pp. 81 & 82, section 9.16)                              
331. Does the agency record "unearned revenue" as              
    a liability if it requests advances or progress               
payments prior to receipt of cash, and it records              
            the amounts? (SFFAS 7, par. 37)                       
      332. Are amounts payable for refunds, refund                
        offsets,47 and drawbacks48 recognized as                  
    liabilities when measurable and legally payable               
     under established processes of the collecting                
               entity? (SFFAS 7, par. 57)                         

46The net-level premium reserve for a death and endowment policy and the
liability for terminal dividends.

47Refund offsets are amounts withheld from refunds on behalf of other
agencies. (OMB Circular No. A-129 (revised), app. A, Part V, section
2.c.i. (1) )

48Drawbacks are refunds payable on all or part of duties paid on imported
goods that are subsequently exported or destroyed. (SFFAS 7, app. C,
glossary)

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Section III
Balance Sheet

       Liabilities Other Liabilities (319 - 352)      Yes, No, or Explanation 
                                                          N/A     
333. Do amounts payable for refunds include refund             
    claims filed by the taxpayer when the government              
        has determined the amount refundable and                  
        identified the payee? (SFFAS 7, par. 57)                  
334. Are amounts payable for refunds with respect              
to returns or claims filed as of the end of the                
reporting period included in accounts payable for              
refunds if they do not require specific approval               
before payment? (SFFAS 7, par. 57)                             
335. For claims filed for refunds where specific               
administrative actions are required before                     
payments can be made, are the amounts excluded                 
from being recognized as a liability if the                    
required administrative actions are not yet                    
complete as of the close of the reporting period,              
even if reasonably estimable? (SFFAS 7, par. 58.1)             
       336. Are unasserted claims for refunds by                  
taxpayers or importers, such as unfiled claims for             
    refunds or drawbacks for which no claim has been              
       filed, excluded from being recognized as a                 
liability, even if reasonably estimable? (SFFAS 7,             
                       par. 58.2)                                 
337. Are amounts voluntarily made as deposits,                 
such as those made to stop the accrual of interest             
or those made pending settlements and judgments,               
separately recognized as deposit liabilities?                  
(SFFAS 7, par. 59)                                             

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Section III Balance Sheet

     Liabilities Other Liabilities (319 - 352)    Yes, No, or N/A Explanation 
       A loss contingency is an existing condition, situation, or set of
circumstances involving uncertainty as to possible loss to an entity. The
    uncertainty should ultimately be resolved when one or more future events
    occur or fail to occur. (SFFAS 5, par. 35; OMB Bulletin 01-09, pp. 85 &
                               86, section 9.19)  
338. Does the entity recognize estimated                       
losses for claims or other contingencies if                    
all of the following conditions apply? a. a                    
past event or exchange transaction has                         
occurred b. a future outflow or other                          
sacrifice of resources is probable49 c. the                    
future outflow or sacrifice of resources is                    
measurable (e.g., the federal entity's                         
management determines an estimated settlement                  
amount). (SFFAS 5, par. 38; SFFAS 6, par. 91;                  
SFFAS 12, par. 10 & 11; OMB Bulletin 01-09, p.                 
26, section 3.4)                                               
339. When determining an estimated contingent                  
    liability, if some amount within a range of                   
    amounts is a better estimate than any other                   
      amount within the range, is that amount                     
           recognized? (SFFAS 5, par. 39)                         

49In the context of pending or threatened litigation, "probable" is taken
to mean "likely;" otherwise, "probable" refers to that which is believed
to be more "likely than not" or can be reasonably expected.

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Section III Balance Sheet

       Liabilities Other Liabilities (319 - 352)      Yes, No, or Explanation 
                                                          N/A     
340. When determining an estimated contingent                  
liability, if no amount within a range of amounts              
is a better estimate than any other amount, does               
the entity recognize a minimum amount in the range             
and disclose a description of the nature of the                
contingency? (SFFAS 5, par. 39)                                
341. If any one of the conditions for recognizing              
a contingent liability is not met and there is at              
least a "reasonable possibility" 50 that a loss or             
additional loss may be incurred, does the entity               
disclose the nature of the contingency51 and one               
of the following? a. an estimate of the possible               
liability b. an estimate of the range of the                   
possible liability c. a statement that such an                 
estimate cannot be made (SFFAS 5, par. 36, 38, 40,             
& 41)                                                          
342. If information about remote contingencies, or             
related to remote contingencies, is included in                
general purpose federal financial reports,52 is                
the information labeled to avoid the misleading                
implication that there is more than a remote                   
chance of a loss of that amount? (SFFAS 5, par.                
42)                                                            

50The chance of a future event occurring is less than "probable" but more
than "remote."

51Examples of claims or other contingencies include (1) indemnity
agreements-reimbursements due to licenses or contractors for losses
incurred in support of federal activities; (2) adjudicated claims (i.e.,
claims against the federal government that are in the process of judicial
proceedings); and (3) commitments to international institutions-payment
due to international institutions.

52An example of information related to a remote contingency would be the
total face amount of insurance and guarantees in force.

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Section III Balance Sheet

       Liabilities Other Liabilities (319 - 352)      Yes, No, or Explanation 
                                                          N/A     
      343. Does the entity disclose the following                 
    related to commitments and contingencies? a. an               
      estimate of obligations related to canceled                 
appropriations for which the reporting entity has              
    a contractual commitment for payment b. amounts               
     for contractual arrangements that may require                
future financial obligations (OMB Bulletin 01-09,              
    p. 27, section 3.4 & pp. 85 & 86, section 9.19)               
      344. If material, does the entity separately                
recognize a contingent liability for environmental             
       clean-up costs53 for PP&E if the following                 
     criteria apply? a. they are related to a past                
     transaction or event b. the related costs are                
probable and measurable (SFFAS 5, par. 38 & SFFAS              
    6, par. 91-93; OMB Bulletin 01-09, pp. 25 & 26,               
                      section 3.4)                                
       345. When clean-up costs are paid, are the                 
       payments recognized as a reduction in the                  
liability for clean-up costs? (SFFAS 6, par. 100)              
346. If clean-up costs have not been previously                
recognized, is a liability recognized for the                  
portion of the estimated total clean-up cost that              
is attributable to either the portion of the                   
physical capacity used or the portion of the                   
estimated useful life that has passed since the                
PP&E was placed into service? (SFFAS 6, par.                   
104-106)                                                       
347. Are any subsequent changes (made in periods               
following implementation) in estimated total                   
clean-up cost immediately expensed (if costs are               
to be recovered though user charges) and reflected             
in the related liability balance? (SFFAS 6, par.               
104)                                                           

53Clean-up costs are the costs of removing, containing, and/ or disposing
of (1) hazardous waste from property, or (2) material and/or property that
consists of hazardous waste at permanent or temporary closure or shutdown
of associated PP&E. (SFFAS 6, par. 85)

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Section III
Balance Sheet

     Liabilities Other Liabilities (319 - 352)    Yes, No, or N/A Explanation 
348. When clean-up costs are recognized for                    
the first time, is the offsetting charge for                   
any liability for clean-up costs shown as a                    
"prior-period adjustment?" (SFFAS 6, par. 105;                 
SFFAS 21, par. 13)                                             
349. Are the amounts of prior-period                           
adjustments arising from belated recognition                   
of clean-up costs and liabilities disclosed                    
and, if possible, are amounts associated with                  
current and prior periods noted? (SFFAS 6,                     
par. 105; SFFAS 21, par. 13)                                   
350. Does the entity also disclose the                         
following information related to clean-up                      
costs? a. the sources (i.e., applicable laws                   
and regulations) of clean-up requirements b.                   
the method for assigning estimated total                       
clean-up costs to current operating periods                    
(e.g., physical capacity versus passage of                     
time) c. the unrecognized portion of estimated                 
total clean-up costs associated with PP&E d.                   
the material changes in total estimated                        
clean-up costs due to changes in laws,                         
technology, or plans e. the portion of change                  
in an estimate that relates to prior-period                    
operations f. the nature of estimates and the                  
disclosure of information regarding possible                   
changes due to inflation, deflation,                           
technology, or applicable laws and regulations                 
(SFFAS 6, par. 107-111; OMB Bulletin 01-09, p.                 
81, section 9.15)                                              
Social insurance programs provide for the maintenance and distribution of
incomes and medical benefits during periods of unemployment, disability,
and retirement. These programs are Social Security, Medicare, Railroad
Retirement Benefits, Black Lung Benefits, and Unemployment Insurance.
Expense and liability recognition for these programs is the same for both
the consolidated governmentwide entity and for the component entities.
(SFFAS 17, par. 2,4, 14, 15, 19, 30, & app. D, glossary)

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Section III
Balance Sheet

     Liabilities Other Liabilities (319 - 352)    Yes, No, or N/A Explanation 
351. Does the entity recognize a liability for                 
social insurance benefits due and payable                      
including claims incurred but not reported?                    
(SFFAS 17, par. 22)                                            
352. Does the liability for unemployment                       
insurance include the following amounts? a.                    
amounts due to states and territories for                      
benefits they have paid to beneficiaries but                   
for which they have not withdrawn funds from                   
the federal unemployment trust fund (UTF) as                   
of the fiscal year end b. estimated amounts to                 
be withdrawn from UTF and benefits paid by                     
states and territories after fiscal year end                   
for compensatory days occurring prior to                       
fiscal year end (SFFAS 17, par. 23)                            

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Section III
Balance Sheet

        Net Position Unexpended Appropriations &      Yes, No, or Explanation 
      Cumulative Results of Operations (353 - 354)        N/A     
353. Does the line item "unexpended                            
appropriations" include both the portion of the                
entity's appropriation represented by undelivered              
orders and unobligated balances? (OMB Bulletin                 
01-09, p. 27, section 3.5)                                     
354. Does the line item "cumulative results of                 
operations" include the following items? a. the                
net results of operations since inception b. the               
cumulative amount of prior-period adjustments c.               
the cumulative amount of donations and transfers               
of assets in and out without reimbursement (OMB                
Bulletin 01-09, p. 27, section 3.5)                            

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Section IV Statement of Net Cost

The questions related to the Statement of Net Cost are presented under
three general captions and 12 sections. The question numbers related to
each caption and section identified below.

Question Numbers

Cost Accounting in General

1. Overall Requirements 1-13

2. Responsibility Segments 14-18

3. Full Cost 19-26

4. Interentity Costs 27-32

5. Costing Methodology 33-39

Revenues 40-61

Costs

6.	Pensions and Other Retirement and
Postemployement Benefits 62-89

7. Inventory, Materials, Supplies, and Commodities 90-98

8. Property, Plant, and Equipment 99-115

9. Clean-up Costs 116-124

10. Interest 125-126

11. Insurance and Subsidies 127-130

12. Credit Programs 131-178

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Page 104

Section IV Statement of Net Cost

      Cost Accounting in General Overall     Yes, No, or N/A    Explanation   
            Requirements (1 - 13)                              
The Statement of Net Cost is designed to show separately the components of
the net cost of the reporting entity's operations for the period. The
statement and any related supporting schedules classify revenue and cost
information by suborganization or responsibility segment. (OMB Bulletin
01-09, p. 28, section 4.1) Managerial cost accounting is the process of
accumulating, measuring, analyzing, interpreting, and reporting cost
information useful to both internal and external groups concerned with the
way in which the organization uses, accounts for, safeguards, and controls
its resources to meet its objectives. (SFFAS 4, par. 42) A cost accounting
"system" is a continuous and systematic cost accounting process that may
be designed to accumulate and assign costs to a variety of objects
routinely or as desired by management. (SFFAS 4, par. 74) Cost finding is
a method for determining the cost of producing goods or services using
appropriate procedures, for example, special cost studies or analyses.
(SFFAS 4, par. 76)                       
1. Are net costs reported for the entity                    
            as a whole and for its                             
    suborganizations54 and major programs?                     
(OMB Bulletin 01-09, p. 28, section 4.1)                    
2. Does the entity present                                  
responsibility segments that align                          
directly with the major goals and                           
outputs described in the entity's                           
strategic and performance plans,                            
required by the Government Performance                      
and Results Act of 1993 (GPRA)? (SFFAS                      
4, par. 69; OMB Bulletin 01-09, p. 28,                      
section 4.1)                                                

 54Suborganizations are considered to be generally equivalent to responsibility
                                    segments

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                        Section IV Statement of Net Cost

Cost Accounting in General Overall Requirements (1 Yes, No, or Explanation 
                         - 13)                            N/A     
3. In its Statement of Net Cost, does the entity               
show the following? a. the gross cost of goods and             
services provided to federal government agencies               
(intragovernmental) b. the gross cost of goods,                
services, transfers, and grants provided to the                
public c. related exchange revenues d. excess of               
costs over exchange revenues (net program costs)               
e. costs that cannot be assigned to specific                   
programs or outputs f. the exchange revenues that              
cannot be attrinuted to specific programs and                  
outputs (SFFAS 7, par. 43 & 44; OMB Bulletin                   
01-09, pp. 28 & 29, section 4.1 & p. 30, section               
4.2)                                                           
4. Are the costs related to the production of                  
goods and services provided to other programs                  
(intragovernmental) reported separately from the               
costs of goods, services, transfers, and grants                
provided to the public? (OMB Bulletin 01-09, p.                
31, section 4.3)                                               
5. Are costs related to the production of outputs              
      reported separately from costs that are not                 
        related to the production outputs (i.e.,                  
nonproduction costs)? (OMB Bulletin 01-09, p. 31,              
                      section 4.3)                                
6. Are costs that cannot be directly traced or                 
assigned on a cause-and-effect basis, or                       
reasonably allocated to segments and their outputs             
and programs reported on the Statement of Net Cost             
as "Costs not assigned to programs?" (SFFAS 4,                 
par. 92; OMB Bulletin 01-09, p. 32, section 4.6)               

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                        Section IV Statement of Net Cost

Cost Accounting in General Overall Requirements (1 Yes, No, or Explanation 
                         - 13)                            N/A     
7. Has the entity established appropriate                      
procedures and practices to enable the consistent              
and regular collection, measurement, accumulation,             
analysis, interpretation, and communication of                 
cost information? (SFFAS 4, par. 68-70)                        
8. As a means of providing cost information in an              
efficient and reliable manner on a continuing                  
basis, does the reporting entity regularly                     
accumulate and report the costs of its activities              
either by means of cost accounting systems or cost             
finding techniques? (SFFAS 4, par. 68-70)                      

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                        Section IV Statement of Net Cost

Cost Accounting in General Overall Requirements (1 Yes, No, or Explanation 
                         - 13)                            N/A     
9. Does the reporting entity's cost accounting                 
system or cost finding technique, at a minimum, do             
the following? a. collect cost information by                  
responsibility segments identified by management               
b. define outputs for each responsibility segment              
c. measure the full cost (including the cost of                
goods or services provided by other entities) of               
outputs so that total operational costs and total              
unit costs of outputs can be determined d. use a               
costing methodology (e.g., activity-based, job                 
order, standard costing) that is appropriate for               
management's needs and the operating environment               
e. provide information needed to determine and                 
report service efforts and accomplishments and                 
information necessary to meet the requirements of              
GPRA (or interface with a system that provides                 
such information) f. report cost information in a              
timely manner and on a regular basis consistent                
with the needs of management and budgetary and                 
financial reporting requirements g. rely on the                
United States Standard General Ledger as a basis               
for integrating its cost information with its                  
general financial accounting capability h. supply              
cost data precise enough to provide reliable and               
useful information to internal and external users              
in making evaluations or decisions but also avoid              
unnecessary precision and refinement of data i.                
accommodate management's special cost information              
needs (SFFAS 4, par. 71)                                       

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                        Section IV Statement of Net Cost

         Cost Accounting in General Overall       Yes, No, or N/A Explanation 
               Requirements (1 - 13)                              
       10. Are all managerial cost accounting                     
       activities, processes, and procedures                      
           documented? (SFFAS 4, par. 71)                         
11. In determining the appropriate detail for                  
its cost accounting processes and procedures,                  
has the reporting entity considered the                        
following? a. nature of its operations b. the                  
precision desired and needed in cost                           
information c. the practicality of data                        
collection and processing d. the availability                  
of electronic data-handling facilities e. the                  
cost of installing, operating, and maintaining                 
the cost accounting processes f. any specific                  
information needs of management (SFFAS 4, par.                 
72)                                                            
12. Has the entity used similar or compatible                  
      cost accounting processes throughout its                    
        component units? (SFFAS 4, par. 73)                       
        13. Does the line item "net cost of                       
    operations," as reported on the Statement of                  
     Net Cost, agree with the line items of the                   
    same name that are reported on the Statement                  
    of Changes in Net Position and Statement of                   
Financing? (OMB Bulletin 01-09, p. 38, section                 
             5.6 & p. 51, section 7.7)                            

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                        Section IV Statement of Net Cost

Cost Accounting in General Responsibility Segments Yes, No, or Explanation 
                       (14 - 18)                          N/A     
A responsibility segment is a component of a reporting entity that is
responsible for carrying out a mission, conducting a major line of
activity, or producing one or a group of related products or services.
(SFFAS 4, par. 78)                                 
14. Has the management of the reporting entity                 
defined and established responsibility segments?               
(SFFAS 4, par. 77)                                             
       15. Does management designate or establish                 
responsibility segments based on the following? a.             
the entity's organizational structure b. its lines             
      of responsibility and missions c. its output                
(goods or services it delivers) d. budget accounts             
       and funding authorities (SFFAS 4, par. 86)                 
16. For each responsibility segment, does the                  
entity do the following? a. define and accumulate              
outputs and, if feasible, quantify each type of                
output in units b. accumulate costs and                        
quantitative units of resources consumed in                    
producing the outputs c. assign costs to outputs               
and calculate the cost per unit of each type of                
output d. establish cost centers within                        
responsibility segments, as needed (SFFAS 4, par.              
79 & 88)                                                       

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Section IV Statement of Net Cost

Cost Accounting in General Responsibility Segments Yes, No, or Explanation 
                       (14 - 18)                          N/A     
    17. Does the reporting entity include supporting              
schedules in the notes to the financial statements             
      if the suborganization's summary information                
     provided in the Statement of Net Cost does not               
fully display the suborganization's major programs             
    and activities? (OMB Bulletin 01-09, pp. 88-90,               
                     section 9.21)                                
18. Does the reporting entity disclose gross cost              
       and earned revenue,55 by budget functional                 
      classification? (OMB Bulletin 01-09, p. 91,                 
                     section 9.25)                                

55Gross cost and earned revenue should be net of intra-entity transactions
                                (consolidated).

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Section IV Statement of Net Cost

    Cost Accounting in General Full Cost     Yes, No, or N/A    Explanation   
                  (19 - 26)                                    
Full cost is the sum of all costs that contribute to an output and
includes direct and indirect costs regardless of funding sources. It also
includes the costs of supporting services provided by other responsibility
segments or entities. (SFFAS 4, par. 89) Output is any product or service
generated from the consumption of resources. (SFFAS 4, par. 89) Direct
costs are costs that can be specifically identified with an output. (SFFAS
4, par. 90) Indirect costs are costs of resources that are jointly or
commonly used to produce two or more types of outputs, but are not
specifically identifiable with any of the outputs. (SFFAS 4, par. 91)
    19. Does the reporting entity include                      
    all direct costs in the full cost of                       
         outputs? (SFFAS 4, par. 90)                           
20. Does the reporting entity also                          
include the following in the full cost                      
of outputs? a. indirect costs incurred                      
within a responsibility segment b. the                      
costs of support services that a                            
responsibility segment receives from                        
other segments or entities (SFFAS 4,                        
par. 91, 122, & 123)                                        
        21. Are the costs of employee                          
benefits56 included as part of the cost                     
      of outputs? (SFFAS 4, par. 93-97)                        
22. Are the costs of other                                  
postemployment benefits reported as                         
expenses for the period during which a                      
future outflow or other sacrifice of                        
resources is probable and measurable on                     
the basis of an event occurring on or                       
before the accounting date? (SFFAS 4,                       
par. 96-97)                                                 
23. Are the full costs of transfer                          
payments for welfare, insurance,                            
grants, and other public assistance                         
programs separately identified from the                     
costs of operating such programs?                           
(SFFAS 4, par. 98-101; OMB Bulletin                         
01-09, pp. 30-32, section 4.3)                              

56These include health and life insurance, pension, and other retirement
benefits, but not other postemployment benefits.

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Section IV Statement of Net Cost

     Cost Accounting in General Full Cost (19 - 26)   Yes, No, or Explanation 
                                                          N/A     
        24. Is depreciation expense incurred by                   
    responsibility segments on general PP&E included              
    in the full costs of the goods and services that              
       the segments produce? (SFFAS 4, par. 102)                  
25. Are the costs of acquiring or constructing                 
heritage assets excluded from the full cost of                 
goods and services and treated as a program cost57             
or period expense? (SFFAS 4, par. 103)                         
        26. Are nonproduction costs incurred by                   
    responsibility segments, such as reorganization               
    costs and nonrecurring clean-up costs resulting               
from facility abandonment, excluded from the full              
     cost of outputs and treated as current-period                
             expenses? (SFFAS 4, par. 104)                        

 57Acquisition costs of heritage assets are part of the costs of the entity or
               the program that makes the property acquisitions.

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                        Section IV Statement of Net Cost

    Cost Accounting in General Interentity Costs   Yes, No, or NA Explanation 
                      (27 - 32)                                   
Within the federal government, some reporting entities rely on other
federal entities to help them achieve their missions.Often, this involves
support services, but may include the provision of goods. The reporting
entity generally must account for the full cost of goods or services
provided to or received from other federal entities. (SFFAS 4, par.
105-108)                                        
27. Does the reporting entity include in its                   
Statement of Net Cost the full costs of goods                  
and services received from other federal                       
entities? (SFFAS 4, par. 105)                                  
28. Does the entity providing goods or services                
    to another reporting entity recognize in its                  
accounting records, as well as disclose to the                 
    receiving entity, the full cost of goods and                  
       services provided? (SFFAS 4, par. 108)                     
    29. Is recognition of interentity costs that                  
    are not fully reimbursed limited to material                  
items based on an assessment of the importance                 
    of the individual interentity transaction in                  
light of the following factors? a. significance                
to the entity b. directness of relationship to                 
     the entity's operations c. identifiability                   
                 (SFFAS 4, par. 112)                              
30. Are the costs of broad, general support                    
services provided by a federal entity to other                 
federal entities excluded from the costs of the                
recipient entity unless such services are                      
integral to the receiving entity (e.g.,                        
Treasury check-writing services provided for                   
the Social Security Administration)? (SFFAS 4,                 
par. 112)                                                      
31. If the receiving entity cannot get complete                
information on the full cost of goods or                       
services provided by another reporting entity,                 
does the receiving entity use a reasonable                     
estimate of the cost of the goods or services                  
received or the market value of the goods or                   
services received if an estimate of the cost                   
cannot be made? (SFFAS 4, par. 109)                            

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                        Section IV Statement of Net Cost

    Cost Accounting in General Interentity Costs   Yes, No, or NA Explanation 
                      (27 - 32)                                   
     32. Are interentity expenses and financing                   
       sources eliminated for any consolidated                    
    financial statements covering both entities?                  
                 (SFFAS 4, par. 109)                              

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                        Section IV Statement of Net Cost

     Cost Accounting in General Costing      Yes, No, or N/A    Explanation   
            Methodology (33 - 39)                              
Cost accumulation is the process of collecting cost data in an organized
way by responsibility segment. (SFFAS 4, par. 117) Cost assignment is a
process that identifies accumulated costs with reporting periods and cost
objects. Three methods of cost assignment are direct tracing, cause and
effect, and allocating costs on a reasonable and consistent basis. (SFFAS
4, par. 120) Cost object or cost objective is an activity, output, or item
the cost of which is to be measured. (SFFAS 4, par. 121) Entities are not
required to use a particular costing system or costing methodology, but
the costing system or methodology used should be appropriate to the
entity's operating environment and used consistently. Four examples of
acceptable (but not necessarily mutually exclusive) costing methodologies
are activity-based costing, job order costing, process costing, and
standard costing. (SFFAS 4, par. 144-147)
33. Is the entity's accounting system                       
capable of identifying costs with                           
responsibility segments? (SFFAS 4, par.                     
118)                                                        
34. Are the costs of resources consumed                     
by responsibility segments classified                       
by type of resource, such as costs of                       
employees, materials, capital,                              
utilities, and rent? (SFFAS 4, par.                         
119)                                                        
35. Are data on the quantity of units                       
(e.g., staff days, gallons of gasoline                      
consumed) related to the various cost                       
categories maintained, when appropriate                     
and feasible? (SFFAS 4, par. 119)                           
36. Are costs assigned to outputs using                     
    the methods in the following order of                      
    preference? a. directly tracing costs                      
    used in the production of an output,                       
     wherever economically feasible58 b.                       
    assigning costs on a cause-and-effect                      
       basis c. allocating costs on a                          
reasonable and consistent basis (SFFAS                      
                4, par. 124)                                   

58A method is economically feasible if the benefits resulting from
implementing the method outweigh its costs.

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Section IV Statement of Net Cost

Cost Accounting in General Costing Methodology (33 Yes, No, or Explanation 
                         - 39)                            N/A     
     37. For cost allocation purposes, do indirect                
    costs assigned to a given cost pool have similar              
          characteristics? (SFFAS 4, par. 136)                    
38. Are common costs59 assigned to activities                  
either on a cause-and-effect basis, if feasible,               
or through reasonable allocations? (SFFAS 4, par.              
140)                                                           
39. Are the full costing methodologies that are                
most appropriate to a segment's operating                      
environment used and consistently followed, and                
any changes made documented and explained? (SFFAS              
4, par. 145 & 146)                                             

59Common costs refers to the costs of maintaining and operating facilities
and other resources that cannot be directly traced to any of the
activities or outputs that share resources.

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Page 117

                        Section IV Statement of Net Cost

              Revenues (40-61)               Yes, No, or N/A    Explanation   
Revenues are inflows of resources that the government demands, earns, or
receives by donation. Revenue comes from two sources: exchange
transactions and nonexchange transactions. (SFFAS 7, par. 30) Exchange (or
earned) revenues arise when a government entity provides goods or services
to the public or to another government entity for a price. (SFFAS 7, par.
30; OMB Bulletin 01-09, p. 32, section 4.4) Nonexchange revenues arise
primarily from the government's power to demand payments from the public
(e.g., taxes, duties, fines), and also include donations. (SFFAS 7, par.
30) The net cost of a program is the difference between its gross costs
and related exchange revenues. (OMB Bulletin 01-09, p. 32, section 4.5)
The net cost of operations by a reporting entity consists of gross cost
incurred by the reporting entity less any exchange revenue earned from its
activities. (OMB Bulletin 01-09, p. 28, section 4.1 & p. 33, section 4.8)
    40. Are earned revenues deducted from                      
    the full cost of outputs or outcomes,                      
    if practical, to determine their net                       
costs? (SFFAS 7, par. 43; OMB Bulletin                      
         01-09, p. 32, section 4.4)                            
41. Is the net amount of gains (or                          
losses) subtracted from (or added to)                       
the gross cost to determine net cost of                     
operations and programs? (SFFAS 7, par.                     
44; OMB Bulletin 01-09, p. 28, section                      
4.1)                                                        
42. Is earned revenue that is                               
insignificant or cannot be attributed                       
to particular outputs or programs                           
reported separately as a deduction in                       
arriving at the net cost of operations                      
of the suborganization or reporting                         
entity as a whole? (SFFAS 7, par. 44;                       
OMB Bulletin 01-09, p. 30, section 4.2                      
& p. 33, section 4.7)                                       
43. Are nonexchange revenues and other                      
       financing sources excluded from                         
calculating net cost of operations for                      
    the reporting entity? (SFFAS 7, par.                       
                     44)                                       

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                        Section IV Statement of Net Cost

                    Revenues (40-61)                  Yes, No, or Explanation 
                                                          N/A     
44. If the entity incurs virtually no cost in                  
connection with earning exchange revenue, is such              
revenue not recognized in the Statement of Net                 
Cost, but shown as a financing source on the                   
Statement of Changes in Net Position or (if                    
appropriate) Statement of Custodial Activity?                  
(SFFAS 7, par. 45)                                             
45. Is any portion of exchange revenue that cannot             
        be retained by the entity reported as a                   
    transfer-out on the Statement of Changes in Net               
Position? (OMB Bulletin 01-09, p. 32, section 4.4)             
46. Does a reporting entity that provides goods or             
services to the public or other government entity              
disclose the following in a note or narrative? a.              
a pricing policy that differs from the full cost               
or market pricing guidance set forth in OMB                    
Circular No. A-25 and the possible effect on                   
demand and revenue if prices were raised to                    
reflect the market or full cost b. exchange                    
transactions with the public in which prices are               
set by law or executive order and are not based on             
full cost or market price, or the possible effect              
on demand and revenue if prices were raised to                 
reflect the market or full cost c. the nature of               
intragovernmental exchange transactions in which               
goods or services are provided free or at less                 
than full cost and the reasons for disparities                 
between billing (if any) and full cost d. the full             
amount of any expected loss when specific goods or             
services are provided or made to order under a                 
contract and a loss is both probable and                       
measurable (SFFAS 7, par. 46 & 47)                             
     47. Is collected custodial nonexchange revenue               
that is legally retained by the collecting entity              
      as reimbursement for the cost of collection,                
recognized as exchange revenue in determining the              
collecting entity's net cost of operations? (SFFAS             
    7, par. 60.3; OMB Bulletin 01-09, p. 52, section              
                          8.1)                                    

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                        Section IV Statement of Net Cost

                    Revenues (40-61)                  Yes, No, or Explanation 
                                                          N/A     
48. Is revenue received from the public or other               
government entity in return for providing goods or             
services recognized and reported in the Statement              
of Net Cost as exchange revenue? (SFFAS 7, par.                
34; OMB Bulletin 01-09, p. 32, section 4.4)                    
49. If an exchange transaction is likely to be                 
unusual or nonrecurring for a particular entity,               
is a gain or loss recognized rather than a revenue             
or expense? (SFFAS 7, par. 35)                                 
    50. Is exchange revenue recognized when services              
    are performed for transactions in which services              
    are provided to the public or another government              
           entity? (SFFAS 7, par. 34 & 36(a))                     
51. If specific goods or services are made to                  
order under terms of a contract, is exchange                   
revenue (and any probable loss) recognized in                  
proportion to estimated total cost when goods and              
services are acquired to fulfill the contract?                 
(SFFAS 7, par. 36(b))                                          
52. When goods are kept in inventory so that they              
      are available to customers when ordered, is                 
     exchange revenue recognized when the goods are               
    delivered to the customer? (SFFAS 7, par. 36(c))              
    53. If services are rendered continuously or the              
     right to use an asset extends continually over               
time, is exchange revenue recognized in proportion             
    to the passage of time or the use of the asset?               
                 (SFFAS 7, par. 36(d))                            
     54. Is interest received on intragovernmental                
loans recognized as exchange revenue if the source             
      of borrowed funds is predominately exchange                 
             revenue? (SFFAS 7, par. 36(d))                       
55. When an asset other than inventory is sold, is             
    any gain (or loss) recognized when the asset is               
delivered to the purchaser? (SFFAS 7, par. 36(e))              

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                        Section IV Statement of Net Cost

                    Revenues (40-61)                  Yes, No, or Explanation 
                                                          N/A     
56. When advance fees or payments are received,                
such as for large-scale, long-term projects, is                
revenue recognized only as the cost of providing               
the corresponding goods and services is incurred?              
(SFFAS 7, par. 37)                                             
    57. Is the measurement of revenue from exchange               
transactions based on the actual price received or             
receivable under established pricing arrangements?             
                   (SFFAS 7, par. 38)                             
58. To the extent that realization of the full                 
amount of exchange revenue is not probable due to              
credit losses (caused by the failure of the debtor             
to pay the established or negotiated price), is an             
expense recognized and the allowance for bad debts             
increased, if the bad debts can be reasonably                  
estimated? (SFFAS 7, par. 40)                                  
59. If the realization of the full amount of                   
exchange revenue is not probable for reasons apart             
from credit losses (e.g., returns and allowances),             
is a provision made to reduce the recognized                   
revenue (if amounts can be reasonably estimated),              
with the provision recognized as a revenue                     
adjustment? (SFFAS 7, par. 41)                                 
60. Is exchange revenue recognized regardless of               
whether the entity retains the revenue for its own             
use or transfers it to other entities? (SFFAS 7,               
par. 43)                                                       
61. Is exchange revenue broken out by major                    
category and linked, where possible, to the net                
costs of related outputs, programs, organizations,             
or suborganizations in the Statement of Net Cost?              
(SFFAS 7, par. 43; OMB Bulletin 01-09, p. 32,                  
section 4.4)                                                   

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                        Section IV Statement of Net Cost

Costs Pensions and Other Retirement                                        
    and Postemployment Benefits (62 -     Yes, No, or N/A      Explanation
                   89)                                       
Pension benefits include all retirement, disability, and survivor benefits
financed through a pension plan, including unfunded pension plans.
Required federal payments to social insurance plans (i.e., Social Security
and Medicare) and matching federal payments to defined contribution
pension plans are also considered to be plan expenses. (SFFAS 5, par. 61)
Costs of pensions and other retirement benefits (ORB), whether they are
paid for in part or in total by other governmental entities, are included
in the costs of program outputs. (SFFAS 4, par. 95)) Recognition of other
postemployment benefits (OPEB) is linked to the occurrence of an OPEB
event rather than the production of an output. OPEB costs are generally
treated as period expenses. Special-purpose cost studies may distribute
OPEB costs over a number of prior years to determine the cost of outputs
OPEB recipients helped produce. (SFFAS 4, par. 96 & 97) In accounting for
pensions, ORB, and OPEB, the "administrative entity," typically manages
and accounts for the related assets and liabilities. The "employer entity"
accounts for the related costs of pensions, ORB, and OPEB. For these costs
the employer entity receives a salary and expense appropriation, imputes a
financing source, or both. (SFFAS 5, par. 57, footnote 38) The "aggregate
entry age normal" actuarial cost method is one under which the expenses or
liabilities arising from the actuarial present value of projected pension
benefits are allocated on a level basis over the earnings or the service
of the group between entry age and assumed exit ages. The portion of the
actuarial present value of pension plan and benefits and expenses that is
allocated to a valuation year is called "normal cost." (SFFAS 5, par. 64)
62. Are pensions and ORB recognized                       
       as expenses at the time the                           
    employee's services are rendered?                        
           (SFFAS 5, par. 59)                                
     63. Are postemployment benefits                         
recognized as expenses at the time                        
      the accountable event occurs?                          
           (SFFAS 5, par. 59)                                

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Section IV Statement of Net Cost

        Costs Pensions and Other Retirement and       Yes, No, or Explanation 
           Postemployment Benefits (62 - 89)              N/A     
64. Is the "aggregate entry age normal" actuarial              
cost method (or other actuarial cost method, if                
the results are not materially different and an                
explanation is provided) used to calculate pension             
expense, the liability for the administrative                  
entity financial statements, and the expense for               
the employer entity financial statements? (SFFAS               
5, par. 64)                                                    
    65. When using the "aggregate entry age normal"               
    actuarial cost method, does the entity allocate               
        pension expenses on the basis of a level                  
       percentage of earnings? (SFFAS 5, par. 64)                 
      66. Does the administrative entity base its                 
     actuarial assumptions for pension plans on the               
      experience of the covered groups, long-term                 
    trends, and guidance of the Actuarial Standards               
               Board? (SFFAS 5, par. 65)                          
67. Does the administrative entity base its                    
interest rate assumptions on the estimated                     
long-term investment yield for the pension plan                
or, if the plan is not being funded, on some other             
appropriate long-term assumption (e.g., the                    
federal long-term borrowing rate)? (SFFAS 5, par.              
66)                                                            
    68. Does the administrative entity disclose the               
     assumptions used to calculate pension benefit                
              expenses? (SFFAS 5, par. 67)                        
      69. When a new pension plan is initiated or                 
      current one amended, does the administrative                
      entity recognize all past and prior service                 
         costs60 or gains immediately, without                    
         amortization? (SFFAS 5, par. 69 & 70)                    
70. Does the administrative entity recognize                   
actuarial gains and losses61 immediately, without              
amortization? (SFFAS 5, par. 69 &70)                           

60Past service costs result from retroactive benefits granted when a new
plan is initiated. Prior service costs result from retroactive benefits
granted in a plan amendment.

61Actuarial gains and losses are changes in the balance of the pension
liability that result from (1) deviations between actual experience and
the actuarial assumptions used or (2) changes in actuarial assumptions.

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Section IV Statement of Net Cost

        Costs Pensions and Other Retirement and       Yes, No, or Explanation 
           Postemployment Benefits (62 - 89)              N/A     
71. Does the administrative entity report a                    
pension expense for the net of the following                   
components, with disclosure of the individual                  
components? a. normal cost b. interest on pension              
liability during the period c. prior (and past)                
service cost from plan amendments (or the                      
initiation of a new plan) during the period, if                
any d. actuarial gains or losses (including any                
gains or losses due to a change in the medical                 
inflation rate assumption) during the period, if               
any (SFFAS 5, par. 72; OMB Bulletin 01-09, p. 80,              
section 9.14)                                                  
72. Does the administrative entity report pension              
plan revenue for the sum of contributions from the             
       following entities? a. the employer b. its                 
employees62 c. interest on the plan's investments              
                (SFFAS 5, par. 73 & 78)                           
73. In the financial report, does the employer                 
entity recognize a pension expense that equals the             
service cost (normal cost) for its employees for               
the accounting period, less the amount contributed             
by the employees, if any? (SFFAS 5, par. 74)                   
74. Is the employer entity's pension expense                   
balanced by (1) a decrease to its "fund balance                
with Treasury" for the amount of its contribution              
to the pension plan, if any; and if this does not              
equal the full pension expense, by (2) an increase             
to an account representing an intragovernmental                
financing source (e.g., "imputed financing-                    
expenses paid by other agencies." (SFFAS 5, par.               
75)                                                            

62The administrative entity may also receive financing from the general
fund to cover prior service or other costs for which contributions were
not provided by the employer or employee.

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Section IV Statement of Net Cost

        Costs Pensions and Other Retirement and       Yes, No, or Explanation 
           Postemployment Benefits (62 - 89)              N/A     
         75. If the employer entity is also the                   
     administrative entity, does it also report the               
     liability63 and recognize the expense for all                
    components of the pension plan's cost? (SFFAS 5,              
                     par. 71 & 76)                                
ORB includes all retirement benefits other than pension benefits. The
predominant ORB expense in the federal government is retirement health
benefits. (SFFAS 5, par. 58 & 79)                  
76. Is the "aggregate entry age normal" actuarial              
cost method (or other actuarial cost method, if                
the results are not materially different and an                
explanation is provided) used to calculate the ORB             
expense and liability for the administrative                   
entity financial statements and the expense for                
the employer entity financial statements? (SFFAS               
5, par. 82)                                                    
         77. Are expenses and other liabilities                   
    attributable to ORB expenses allocated based on               
    the service rendered by each employee? (SFFAS 5,              
                        par. 82)                                  
78. Do the amounts calculated for financial                    
reports prepared for ORB plans reflect the                     
following? a. general actuarial and economic                   
assumptions that are consistent with those used                
for pensions b. a health care cost trend                       
assumption that is consistent with Medicare                    
projections or other authoritative sources                     
appropriate for the population covered by the plan             
(SFFAS 5, par. 83)                                             
79. Does the administrative entity discount the                
projected ORB costs at the rate of expected return             
of plan assets, if the plan is being funded, or on             
some other long-term assumptions (e.g., the                    
long-term federal government borrowing rate) for               
unfunded plans? (SFFAS 5, par. 83)                             

63The liability is the actuarial present value of all future benefits,
based on projected salaries and total projected service, less the
actuarial present value of future normal cost contributions that would be
made for and by the employees under the plan.

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                        Section IV Statement of Net Cost

        Costs Pensions and Other Retirement and       Yes, No, or Explanation 
           Postemployment Benefits (62 - 89)              N/A     
    80. Does the administrative entity disclose the               
assumptions used to calculate projected ORB costs?             
                   (SFFAS 5, par. 83)                             
     81. Is the accrual period for ORB based on the               
    expected retirement age rather than the age when              
the employee first becomes eligible for retirement             
              benefits? (SFFAS 5, par. 84)                        
    82. When a new ORB plan is initiated or current               
      one amended, does the administrative entity                 
     recognize all past and prior service costs or                
gains immediately, without amortization? (SFFAS 5,             
                     par. 86 & 87)                                
    83. Does the administrative entity recognize all              
actuarial gains and losses from changes in the ORB             
      liability immediately, without amortization?                
                (SFFAS 5, par. 86 & 87)                           
84. Does the administrative entity report an ORB               
expense (e.g., health insurance) for the net of                
the following components with disclosure of the                
individual components? a. normal cost b. interest              
on the ORB liability during the period c. prior                
(and past) service cost from plan amendments (or               
the initiation of a new plan) during the period,               
if any d. any gains/losses due to a change in the              
medical inflation rate assumption e. other                     
actuarial gains or losses during the period, if                
any (SFFAS 5, par. 88; OMB Bulletin 01-09, p. 80,              
section 9.14)                                                  
     85. Does the administrative entity report ORB                
     revenue for the sum of contributions from the                
employer entity and its employees? (SFFAS 5, par.              
                          89)                                     

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Section IV Statement of Net Cost

      Costs Pensions and Other Retirement and     Yes, No, or    Explanation  
         Postemployment Benefits (62 - 89)            N/A       
86. In the financial report, does the                        
employer entity recognize ORB expenses equal                 
to the service cost (normal cost) for its                    
employees for the accounting period, less the                
amount contributed by the employees, if any?                 
(SFFAS 5, par. 90)                                           
87. Is the employer entity's ORB expense                     
balanced by either of the following? a. a                    
decrease to its "fund balance with Treasury"                 
for the amount of its contribution to the ORB                
plan, if any b. an increase to an account                    
representing an intragovernmental imputed                    
financing source (e.g., "imputed                             
financing-expenses paid by other entities")                  
(SFFAS 5, par. 91)                                           
      88. If the employer entity is also the                    
    administrative entity, does it also report                  
the liability64 and recognize the expense for                
    all components of the ORB's cost? (SFFAS 5,                 
                   par. 88 & 92)                                
OPEB are provided to former or inactive employees, beneficiaries, and
covered dependents outside pension or ORB plans. Postemployment benefits
can include salary continuation, severance benefits, counseling and
training, continuation of health care or other benefits, unemployment
workers' compensation, and veterans' disability compensation benefits paid
by the employer. (SFFAS 4, par. 96; SFFAS 5, par. 57 & 94)
    89. Does the employer recognize an expense                  
      and a liability for OPEB when a future                    
    outflow or other sacrifice of resources is                  
     probable (i.e., more likely than not) and                  
          measurable? (SFFAS 5, par. 95)                        

64The liability is the actuarial present value of all future benefits less
the actuarial present value of future normal cost contributions that would
be made for and by the employees under the plan. (SFFAS 5, par. 88)

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                        Section IV Statement of Net Cost

     Costs Inventory, Materials, Supplies, and    Yes, No, or N/A Explanation 
               Commodities (90 - 98)                              
     90. Upon sale or use of inventory, is the                    
     related expense recognized and the cost of                   
    those goods removed from the inventory asset                  
            account? (SFFAS 3, par. 19)                           
91. To arrive at the historical cost of ending                 
inventory and cost of goods sold, is one of                    
the following cost flow assumptions used? a.                   
first-in, first-out b. weighted average c.                     
moving average d. any other valuation method                   
(such as a standard cost system) whose results                 
reasonably approximate one of the above                        
historical cost methods (SFFAS 3, par. 22)                     
92. Are operating materials and supplies                       
expensed using the consumption method (i.e.,                   
reported as an operating expense as they are                   
issued to the end user for consumption in                      
normal operations)? (SFFAS 3, par. 38 & 39)                    
      93. Are operating materials and supplies                    
    expensed upon purchase (purchase method) if                   
they meet one of the following attributes? a.                  
they are of insignificant amounts b. they are                  
in the hands of the end user for use in normal                 
     operations c. it is not cost beneficial to                   
apply the consumption method (SFFAS 3, par. 40                 
                       & 41)                                      
94. Are inventory and operating materials and                  
supplies acquired through a nonmonetary                        
exchange valued at the fair value of the items                 
received at the time of the exchange, and is                   
the difference between the fair value of the                   
acquired items and the recorded amount                         
surrendered reported as a gain or loss? (SFFAS                 
3, par. 21 & 43)                                               

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                        Section IV Statement of Net Cost

     Costs Inventory, Materials, Supplies, and    Yes, No, or N/A Explanation 
               Commodities (90 - 98)                              
       95. Are abnormal costs associated with                     
       inventory and operating materials and                      
supplies, such as excessive handling or rework                 
    costs, charged to operations of the period?                   
              (SFFAS 3, par. 21 & 43)                             
96. Are any unrealized gains or losses                         
resulting from periodic revaluations of                        
inventory captured in a designated allowance                   
account? (SFFAS 3, par. 23 & 24)                               
97. Is the cost of stockpile materials removed                 
      from the corresponding asset account and                    
    reported as an operating expense when issued                  
        for use or sale? (SFFAS 3, par. 52)                       
98. Are abnormal costs of stockpile materials,                 
    such as excessive handling and rework costs,                  
expensed in current operations? (SFFAS 3, par.                 
                        53)                                       

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Section IV Statement of Net Cost

    Costs Property, Plant, and Equipment     Yes, No, or N/A    Explanation   
                 (99 - 115)                                    
A common expense related to PP&E that is included in the Statement of Net
Cost is depreciation. Other PP&E-related expenses that are reported in the
Statement of Net Cost include all current cost of acquiring and
maintaining stewardship land and heritage assets (other than multiuse
heritage assets.) (SFFAS 6, par. 35, & 69; SFFAS 16, par. 8) Depreciation
expense is calculated through systematic and rational allocation of the
cost of PP&E, less its estimated salvage or residual value, over its
estimated useful life. A composite or group methodology,65 whereby the
costs of PP&E are allocated using the same allocation rate, is
permissible. (SFFAS 6, par. 35; SFFAS 23, par. 9, item f)
99. Is depreciation expense recognized                      
on all general PP&E? (SFFAS 6, par. 35)                     
100. If historical cost information has                     
not been maintained for existing PP&E,                      
does the entity depreciate or amortize                      
the estimated net remaining cost over                       
its remaining useful life in a                              
systematic and rational manner? (SFFAS                      
6, par. 35, 40, & 41)                                       
101. In an exchange transaction with a                      
nonfederal entity, is the difference                        
between the book value (i.e., cost less                     
accumulated depreciation) of PP&E                           
surrendered and the cost of PP&E                            
acquired66 recognized as either a gain                      
or a loss? (SFFAS 6, par. 32)                               
102. In the event that cash                                 
consideration is included in the                            
exchange transaction with a non federal                     
entity, is the cost of PP&E acquired                        
either increased by the amount of cash                      
consideration surrendered or decreased                      
by the amount of cash consideration                         
received? (SFFAS 6, par. 32)                                

65The composite methodology is a method of calculating depreciation that
applies a single average rate to a number of heterogeneous assets that
have dissimilar characteristics and service lives. The group methodology
is a method of calculating depreciation that applies a single, average
rate to a number of homogeneous assets having similar characteristics and
service lives.

66The cost of the PP&E acquired is recorded at the cost of the PP&E
surrendered net of any accumulated depreciation or amortization when the
fair value of the PP&E surrendered or acquired is not determinable.

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                        Section IV Statement of Net Cost

     Costs Property, Plant, and Equipment (99 -   Yes, No, or N/A Explanation 
                        115)                                      
    103. When assets have been removed from PP&E                  
    in anticipation of disposal, retirement, or                   
    removal from service, has the entity stopped                  
      recording depreciation and amortization                     
expenses for such assets? (SFFAS 6, par. 38 &                  
                        39)                                       
104. For general PP&E that is disposed of,                     
retired or removed from service, is any                        
difference between the book value of the PP&E                  
and amounts realized recognized as a gain or a                 
loss in the period of disposal, retirement, or                 
removal from service? (SFFAS 6, par. 38)                       
105. For PP&E assets removed from general PP&E                 
accounts prior to disposal, retirement or                      
removal from service, is the expected net                      
realizable value of these assets adjusted at                   
the end of each accounting period, and is any                  
adjustment made recognized as either a gain or                 
loss? (SFFAS 6, par. 39)                                       
        106. Are costs to acquire, improve,                       
     reconstruct, or renovate heritage assets,                    
        other than multiuse heritage assets,                      
     recognized and reported separately on the                    
Statement of Net Cost for the period in which                  
the costs are incurred? (SFFAS 16, par. 8; OMB                 
Bulletin 01-09, pp. 31 & 32, section 4.3 & p.                  
                 91, section 9.22)                                
      107. Do the recognized costs of heritage                    
assets also include all costs incurred during                  
the period to bring the items to their current                 
condition at its initial location? (SFFAS 16,                  
                      par. 8)                                     
      108. Are amounts for heritage assets or                     
stewardship land acquired through donation or                  
    devise excluded from the calculation of net                   
cost? (SFFAS 8, par.79; SFFAS 16, par. 10; OMB                 
        Bulletin 01-09, p. 91, section 9.23)                      
109. Is the fair value, if known and material,                 
of heritage assets acquired through donation                   
or devise disclosed in notes to the financial                  
statements in the year received? (SFFAS 16,                    
par. 10; OMB Bulletin 01-09, p. 91, section                    
9.23)                                                          

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                        Section IV Statement of Net Cost

     Costs Property, Plant, and Equipment (99 -   Yes, No, or N/A Explanation 
                        115)                                      
110. If the fair value of donated or                           
bequeathed heritage assets is not known or                     
reasonably estimable, is information as to the                 
type and quantity of assets received disclosed                 
in the notes to the financial statements in                    
the year received? (SFFAS 16, par. 10; OMB                     
Bulletin 01-09, p. 91, section 9.23)                           
    111. Are costs to acquire, as well as costs                   
incurred to bring the stewardship land to its                  
      current condition or prepare it for its                     
     intended use, recognized as a cost of the                    
     period incurred and disclosed as "Cost of                    
     Stewardship Land?" (SFFAS 6, par. 69 & 73;                   
SFFAS 8, par. 77 & 119; OMB Bulletin 01-09, p.                 
                 91, section 9.22)                                
112. Is the fair value, if known and material,                 
of stewardship land acquired through donation                  
or devise disclosed in notes to the Statement                  
    of Net Cost in the year received? (SFFAS 6,                   
    par. 71; OMB Bulletin 01-09, p. 91, section                   
                       9.23)                                      
113. If the fair value of donated or willed                    
stewardship land is not estimable, is                          
information as to the type and quantity of                     
assets received disclosed in notes to the                      
Statement of Net Cost in the year received, if                 
material? (SFFAS 6, par. 71; OMB Bulletin                      
01-09, p. 91, section 9.23)                                    
114. If land included in PP&E is transferred                   
to another federal entity to be used as                        
stewardship land, is the cost to the receiving                 
entity of the transferred land recognized at                   
the book value on the transferring entity's                    
books? (SFFAS 6, par. 72)                                      
115. If the receiving entity does not know the                 
book value of the transferred land, is the                     
transfer disclosed in the notes to the                         
Statement of Net Cost, if material? (SFFAS 6,                  
par. 72)                                                       

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                        Section IV Statement of Net Cost

          Costs Clean-up Costs (116 - 124)        Yes, No, or N/A Explanation 
Clean-up costs are the costs of removing, containing, and/or disposing of
(1) hazardous waste from property or (2) material and/or property that
consists of hazardous waste upon permanent or temporary closure or
shutdown of associated PP&E. Clean-up costs may include, but are not
limited to, decontamination, decommissioning, site restoration, site
monitoring, closure, and postclosure costs. (SFFAS 6, par. 85 & 87)
    116. When PP&E is placed into service, does                   
    the entity estimate the associated clean-up                   
             costs? (SFFAS 6, par. 94)                            
117. In estimating clean-up costs and                          
liability, has the entity considered the                       
following? a. the level of restoration to be                   
performed b. current legal and regulatory                      
requirements c. current technology d. current                  
costs (i.e., amount that would be paid if all                  
goods and services included in the clean-up                    
estimate were acquired in the current period)                  
(SFFAS 6, par. 95)                                             
118. Are estimated clean-up costs periodically                 
revised to account for material changes due to                 
inflation or deflation and changes in                          
regulations, plans, and/or technology? (SFFAS                  
6, par. 96)                                                    
    119. When PP&E is placed into service, does                   
the entity recognize cleanup costs during each                 
period that general PP&E is in operation, in a                 
systematic and rational manner based on one of                 
       the following methods? a. based on the                     
physical capacity of the PP&E, (e.g., expected                 
usable landfill area) b. if physical capacity                  
    is not applicable or estimable, based on the                  
    estimated useful life of the associated PP&E                  
                 (SFFAS 6, par. 97)                               

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                        Section IV Statement of Net Cost

          Costs Clean-up Costs (116 - 124)        Yes, No, or N/A Explanation 
120. Does recognition of the cleanup costs and                 
the accumulation of the related liability                      
begin on the date that the associated PP&E is                  
placed into service, continue in each period                   
that operation continues, and end when the                     
PP&E ceases operation? (SFFAS 6, par. 98)                      
    121. If clean-up costs are reestimated, are                   
     the cumulative effects of changes in total                   
estimated cleanup costs related to current and                 
past operations of PP&E immediately recognized                 
       as an expense and is the corresponding                     
       liability adjusted? (SFFAS 6, par. 99)                     
122. When stewardship PP&E is placed into                      
service, does the entity expense the total                     
estimated clean-up costs and establish a                       
liability in the period the asset is placed                    
into service? (SFFAS 6, par. 101)                              
    123. If clean-up costs for stewardship PP&E                   
    are reestimated, are any adjustments to the                   
      liability associated with clean-up costs                    
      expensed in the period of the change in                     
           estimate? (SFFAS 6, par. 102)                          
124. Does the entity disclose the following                    
related to cleanup costs? a. the applicable                    
laws and regulations covering clean-up                         
requirements b. the method for assigning                       
estimated total clean-up costs to current                      
operating periods (e.g., physical capacity                     
versus passage of time) c. the unrecognized                    
portion of estimated total clean-up costs for                  
clean-up costs associated with PP&E d.                         
material changes in total estimated clean-up                   
costs due to changes in laws, technology, or                   
plans, as well as the portion of the change in                 
clean-up cost estimates that relates to                        
prior-period operations e. the nature of                       
estimates and information regarding possible                   
changes due to inflation, deflation,                           
technology, or applicable laws and regulations                 
(SFFAS 6, par. 107-111)                                        

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                        Section IV Statement of Net Cost

               Costs Interest (125 -126)             Yes, No, or  Explanation 
                                                         N/A      
Interest incurred results from borrowing funds from Treasury, Federal
Financing Bank, other federal entities, or the public. Interest also
should be recorded on late payment of bills by the federal entity and on
refunds. (SFFAS 1, par. 81) Interest costs are generally related to
securities and other debt instruments issued by the U.S. Treasury or other
federal agencies. (SFFAS 5, par. 47-48)           
125. Does the related interest cost of federal                 
debt include the following? a. the accrued                     
(prorated) share of the nominal interest incurred              
during the accounting period b. the amortized                  
discounts or premiums for each accounting period               
for fixed value securities c. the amount of                    
change in the current value for the accounting                 
period for variable value securities (SFFAS 5,                 
par. 53)                                                       
126. If securities are retired before maturity,                
is the difference between the reacquisition price              
and net carrying value of the extinguished debt                
recognized in the period of extinguishment as a                
gain or loss? (SFFAS 5, par. 54)                               

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                        Section IV Statement of Net Cost

     Costs Insurance and Subsidies (127 -130)    Yes, No, or    Explanation   
                                                     N/A       
Federal insurance and guarantee programs are established to assume risks
that private sector entities are unwilling or unable to assume or to
subsidize the provision of insurance to achieve social objectives. For
life insurance, a premium deficiency occurs if the liability for future
policy benefits using current conditions exceeds the liability for future
policy benefits using contract conditions. (SFFAS 5, par. 97 & 120)
127. If an insured event has occurred as of                 
the financial statement reporting date, has                 
the federal entity recognized an expense for                
all claims incurred during the period,                      
including, when appropriate, those incurred                 
but not reported and contingencies that meet                
the criteria for recognition? (SFFAS 5, par.                
104 & 109)                                                  
128. Are changes in estimates of claim cost                 
resulting from (1) the present value                        
calculations, (2) the continuous review                     
process, and (3) differences between the                    
estimates and actual payments for claims,                   
recognized as charges against operations of                 
the period in which the estimates are                       
changed or payments are made? (SFFAS 5, par.                
109)                                                        
      129. If the liability for future [life                   
     insurance] policy benefits using current                  
conditions exceeds the liability for future                 
    policy benefits under contract conditions                  
(resulting in a premium deficiency), is the                 
       difference recognized as a charge to                    
operations in the current period? (SFFAS 5,                 
                    par. 120)                                  
130. Does the entity recognize an expense                   
for social insurance67 benefits paid during                 
the reporting period plus any increase (or                  
less any decrease) in the liability for                     
social insurance benefits due and payable to                
or on behalf of beneficiaries, from the end                 
of the prior period to the end of the                       
current period? (SFFAS 17, par. 22)                         

67Social insurance programs include Social Security, Medicare, Railroad
Retirement, and Black Lung Benefits.

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Section IV Statement of Net Cost

      Costs Credit Programs (131 - 178)      Yes, No, or N/A    Explanation   
In accordance with the Federal Credit Reform Act of 1990, as amended, a
subsidy expense is recognized for direct or guaranteed loans disbursed
during the fiscal year. The amount of the subsidy expense equals the
present value of estimated cash outflows over the life of the loans minus
the present value of the estimated cash inflows. The discount rate used to
calculate the present value is the average interest rate on marketable
Treasury securities of similar maturity to the cash flows of the direct
loan or loan guarantee for which the estimate is being made. (SFFAS 2,
par. 6, 7, 24, 30, & 31; SFFAS 19, par. 6 & 7)
      131. For post-1991 direct or loan                        
     guarantee programs, is the present                        
    value of estimated cash outflows over                      
the life of the loans minus the present                     
       value of estimated cash inflows                         
     discounted at the interest rate of                        
     marketable Treasury securities with                       
     similar maturity to the cash flows?                       
    (SFFAS 2, par. 24; SFFAS 19, par. 6)                       
132. For post-1991 direct or loan                           
guarantee programs, are the net present                     
values recognized as expense in the                         
year the loan is disbursed? (SFFAS 2,                       
par. 24; SFFAS 19, par. 6)                                  
    133. Are the following components of                       
estimated subsidy costs (and offsetting                     
      receipts) of post-1991 loans and                         
    guarantees separately recognized? a.                       
     interest subsidy costs68 b. default                       
    costs69 c. present value of fees and                       
     other collections d. other subsidy                        
         costs (SFFAS 2, par. 25-29)                           

68The interest subsidy cost of direct loans is the excess of the amount of
the loans disbursed over the present value of the interest and principal
payments required by loan contracts discounted at the applicable Treasury
rate; for loan guarantees it is the present value of estimated interest
supplement payments.

69The default cost of direct loans or loan guarantees is measured at the
present value of projected payment delinquencies and omissions minus
projected net recoveries.

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Section IV Statement of Net Cost

         Costs Credit Programs (131 - 178)        Yes, No, or N/A Explanation 
       134. Is the subsidy cost allowance for                     
     post-1991 direct loans amortized using the                   
interest method? 70 (SFFAS 2, par. 30, 31, and                 
     app. B, part I B (2); SFFAS 19, par. 7(a))                   
    135. If the effective interest for post-1991                  
       direct loans is less than the nominal                      
      interest, is the subsidy cost allowance                     
increased by the difference and recognized as                  
a reduction in interest income? (SFFAS 2, par.                 
     30 & app. B, part I B (2); SFFAS 19, par.                    
                       7(a))                                      
136. If the effective interest for post-1991                   
direct loans is greater than the nominal                       
interest, is the subsidy cost allowance                        
decreased by the difference and recognized as                  
an increase in interest income? (SFFAS 2, par.                 
30 & app. B, part I B (2); SFFAS 19, par.                      
7(a))                                                          
137. Is interest accrued and compounded on the                 
    liabilities of post-1991 loan guarantees at                   
the interest rate that was originally used to                  
      calculate the present value of the loan                     
     guarantee liabilities when the guaranteed                    
loans were disbursed, after adjusting for the                  
interest reestimate? (SFFAS 2, par. 31 & app.                  
      B, part III B (2); SFFAS 19, par. 7(b))                     
138. Is the interest accrued and compounded on                 
the liabilities of post-1991 loan guarantees                   
recognized as an interest expense? (SFFAS 2,                   
par. 31 & app. B, part III B (2))                              

70Under the interest method, the amortized amount is the difference
between the nominal interest (face amount of loan times stated interest)
and effective interest (present value of loan times discount rate). The
effective interest rate is the average interest rate of marketable
Treasury securities with similar maturity that was used to calculate the
present value of the direct loans when the direct loans were disbursed,
after adjusting for the interest rate reestimate.

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Section IV Statement of Net Cost

        Costs Credit Programs (131 - 178)      Yes, No, or N/A  Explanation   
Two kinds of reestimates for the subsidy cost allowance for outstanding
direct loans and the liability for outstanding loan guarantees are (1)
interest rate reestimates and (2) technical/default reestimates. An
interest rate reestimate is due to a change in the interest rates from
those that were assumed in budget preparation and used in calculating the
subsidy expense to the interest rates that are prevailing during the
periods in which the direct or guaranteed loans are disbursed. A
technical/default reestimate is due to changes in projected cash flows of
outstanding direct loans and loan guarantees after reevaluating the
underlying assumptions and other factors (except for interest rate
reestimates) that affect cash flow projections as of the financial
statement date. (SFFAS 18, par. 9)          
    139. Does the entity measure and disclose                  
reestimates of allowances for subsidy costs                 
     of post-1991 loans and liabilities for                    
    guarantees in two components separately,                   
specifically: the interest rate reestimate                  
      and the technical/default reestimate?                    
               (SFFAS 18, par. 9)                              
140. Is any increase (or decrease) in the                   
subsidy cost allowance of post-1991 direct                  
loans or loan guarantee liabilities                         
resulting from the interest rate and                        
technical /default reestimates recognized                   
as a subsidy expense (or a reduction in                     
subsidy expense) and disclosed separatetly                  
by component? (SFFAS 2, par. 32; SFFAS 18,                  
par. 9; OMB Bulletin 01-09, pp. 62 & 71,                    
section 9.8, item E2 & pp. 66 & 73, section                 
9.8, item L2)                                               
141. If the assumed interest rates used in                  
calculating the subsidy expenses for                        
cohorts71 from which direct or guaranteed                   
loans are disbursed differ from the rates                   
prevailing at the time of the loan                          
disbursement, is an interest rate                           
reestimate for those cohorts made as of the                 
date of the financial statements? (SFFAS                    
18, par. 9 (A))                                             
142. Do technical/default reestimates take                  
into consideration all factors that may                     
have affected various components of                         
projected cash flows, including defaults,                   
delinquencies, recoveries, and prepayments?                 
(SFFAS 18, par. 9 (B))                                      

71Cohort, as it is used here, is a budget term that refers to all direct
loans or loan guarantees of a program for which a subsidy appropriation is
provided for a given fiscal year, even if disbursements occur in
subsequent years.

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Page 139

                        Section IV Statement of Net Cost

           Costs Credit Programs (131 - 178)          Yes, No, or Explanation 
                                                          N/A     
    143. Are technical/default reestimates made each              
    year as of the date of the financial statements?              
                 (SFFAS 18, par. 9 (B))                           
144. In a note to the financial statement, does                
the entity display a reconciliation between the                
beginning and ending balances of the following? a.             
the subsidy cost allowances for outstanding direct             
loans b. the liability for outstanding loan                    
guarantees reported in the entity's balance sheet              
(SFFAS 18, par. 10)                                            
145. Does the reconciliation of beginning and                  
ending subsidy cost allowances and loan guarantee              
liability balances include changes in the                      
following? a. interest subsidy costs, default                  
costs, fees and other collections, and other                   
subsidy costs b. interest rate and                             
technical/default reestimates c. other adjustments             
(SFFAS 2, par. 25-29; SFFAS 18, par. 10)                       
      146. For direct loans, do other adjustments                 
    include loan modifications, fees received, loans              
       written off, foreclosed property or other                  
       recoveries acquired, and subsidy allowance                 
           amortization? (SFFAS 18, par. 10)                      
     147. For loan guarantees, do other adjustments               
       include loan guarantee modifications, fees                 
       received, interest supplements paid, claim                 
    payments made to lenders, foreclosed property or              
        other recoveries acquired, and interest                   
      accumulated on the loan guarantee liability?                
                  (SFFAS 18, par. 10)                             

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Section IV Statement of Net Cost

           Costs Credit Programs (131 - 178)          Yes, No, or Explanation 
                                                          N/A     
     148. In its notes to the financial statements,               
      does the entity include a description of the                
     characteristics of the program it administers,               
    including the following? a. the total amount of               
      direct or guaranteed loans disbursed for the                
current and preceding reporting years b. interest              
      subsidy costs, default costs, fees and other                
    collections, and other subsidy costs c. interest              
rate and technical/default reestimates (SFFAS 18,              
                      par. 11 (A))                                
149. Does the reporting entity disclose, at the                
program level, the subsidy rates72 for direct                  
loans and loan guarantees in the current year's                
budget for the current year's cohorts, the                     
following items? a. total subsidy cost b. interest             
subsidy costs c. default costs (net of recoveries)             
d. fees and other collections e. other costs                   
(SFFAS 18, par. 11 (B))                                        
150. If the entity uses trend data to display                  
significant fluctuations in subsidy rates, are                 
these data accompanied by an analysis that                     
explains the underlying causes for the                         
fluctuations? (SFFAS 18, par. 11 (B))                          
151. Does the reporting entity disclose, discuss,              
and explain events and changes in economic                     
conditions, other risk factors, legislation,                   
credit policies,73 and subsidy estimation                      
methodologies and assumptions that have had a                  
significant and measurable effect on subsidy                   
rates, subsidy expenses, and subsidy reestimates?              
(SFFAS 18, par. 11 (C))                                        

72The subsidy rate is the dollar amount of the subsidy component as a
percentage of the direct loans or loan guarantees obligated in the cohort.

73Changes in legislation or credit policies include, for example, changes
in borrowers' eligibility, the levels of fees or interest rates charged to
borrowers, the maturity terms of loans, and the percentage of private
loans that are guaranteed.

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                        Section IV Statement of Net Cost

           Costs Credit Programs (131 - 178)          Yes, No, or Explanation 
                                                          N/A     
152. Does the disclosure and discussion also                   
include events and changes that have occurred and              
are more likely than not to have a significant                 
impact, but whose effects are not measurable at                
the reporting date? (SFFAS 18, par. 11 (C))                    
153. Are default costs estimated and periodically              
reestimated for each post-1991 loan and loan                   
guarantee program on the basis of separate cohorts             
and risk categories? (SFFAS 2, par. 33)                        
154. In estimating default costs, has the entity               
considered the following factors? a. loan                      
performance experience b. the current and                      
forecasted international, national, or regional                
economic conditions that may affect the                        
performance of the loans c. financial and other                
relevant characteristics of borrowers d. the value             
of collateral to loan balance e. changes in                    
recoverable value of collateral f. newly developed             
events that could affect the loans' performance g.             
improvements in methods to reestimate defaults                 
(SFFAS 2, par. 34)                                             
155. In estimating and reestimating future default             
costs for each group, cohort, and risk category of             
       loan and guarantee, has the agency used a                  
systematic methodology based on actual historical              
          experience? (SFFAS 2, par. 35 & 36)                     
    156. Is interest (at the discount rate in effect              
    when the loans were first disbursed) accrued on               
      post-1991 direct loans, including amortized                 
interest, recognized as interest income? (SFFAS 2,             
          par. 37 & app. B, part I B (2) & C)                     

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                        Section IV Statement of Net Cost

       Costs Credit Programs (131 - 178)      Yes, No, or N/A   Explanation   
157. Is interest (at the original discount                 
     rate) accrued on debt to the Treasury                    
      arising from post-1991 direct loans                     
recognized as interest expense? (SFFAS 2,                  
      par. 37 & app. B, part I B (2) & C)                     
158. Is interest (at the discount rate in                  
        effect when the loans were first                      
       disbursed) accrued on liability of                     
    post-1991 loan guarantees recognized as                   
interest expense? (SFFAS 2, par. 37 & app.                 
             B, part III B (2) & C)                           
159. Is interest (at the original discount                 
rate) due from the Treasury on uninvested                  
funds associated with post-1991 loan                       
guarantee liabilities recognized as                        
interest income? (SFFAS 2, par. 37 & app.                  
B, part III B (2) & C)                                     
160. Are costs for administering credit                    
activities (such as salaries, legal fees,                  
and servicing) incurred in support of                      
direct loan and guaranteed loan programs                   
recognized as administrative expenses and                  
not included in direct loan and loan                       
guarantee subsidy costs? (SFFAS 2, par.                    
38)                                                        
161. Are administrative expenses for loans                 
and guarantees broken out and disclosed by                 
program, if material? (OMB Bulletin 01-09,                 
        p. 67 & 74, section 9.8, item O)                      
162. Are losses (as well as valuation                      
allowances and corresponding liabilities)                  
of direct loans obligated and loan                         
guarantees committed before October 1,                     
1991, recognized when it is more likely                    
than not that the direct loans will not be                 
totally collected or that the loan                         
guarantees will require a future cash                      
outflow to pay default claims? (SFFAS 2,                   
par. 39)                                                   
          Foreclosed properties are assets received in satisfaction of a loan
        receivable or as a result of payment of a claim under a guaranteed or
             insured loan (excluding commodities acquired under price support
     programs.) All properties included in foreclosed property are assumed to
            be held for sale. Pre-1992 foreclosed property refers to property
associated with direct loans obligated or loan guarantees committed before
            October 1, 1991. Post-1991 foreclosed property refers to property
    associated with direct loans obligated or loan guarantees committed after
                                  September 30, 1991. (SFFAS 3, par. 79 & 80)

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                        Section IV Statement of Net Cost

         Costs Credit Programs (131 - 178)        Yes, No, or N/A Explanation 
163. If, at the time of the foreclosure, the                   
expected net realizable value of pre-1992                      
foreclosed property is less than the cost                      
(i.e., the carrying amount of the loan, or for                 
a loan guarantee, the amount of the claim                      
paid), is the loss charged to operations and                   
tracked in a valuation allowance account?                      
(SFFAS 3, par. 86)                                             
    164. If the pre-1992 foreclosed asset's net                   
     realizable value subsequently increases or                   
    decreases, does the entity credit or charge                   
      this amount to results of operations and                    
adjust the valuation allowance? (SFFAS 3, par.                 
                        86)                                       
165. Upon sale of foreclosed property, is any                  
difference between the net carrying amount of                  
    foreclosed property and the net proceeds of                   
       the sale recognized as a component of                      
       operating results? (SFFAS 3, par. 89)                      
166. For post-1991 foreclosed property, is                     
interest income accrued from the previous                      
periodic adjustment in the carrying amount up                  
to the sale date? (SFFAS 3, par. 89)                           
167. For post-1991 foreclosed property, is the                 
resulting difference between the adjusted                      
carrying amount and the net sales proceeds                     
recognized as a reestimate of "subsidy                         
expense?" (SFFAS 3, par. 89)                                   
168. For pre-1992 foreclosed property, is the                  
      difference between the adjusted carrying                    
amount and net sales proceeds recognized as a                  
      gain or a loss on the sale of foreclosed                    
            property? (SFFAS 3, par. 89)                          

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Section IV Statement of Net Cost

     Costs Credit Programs (131 - 178)      Yes, No, or N/A     Explanation   
The term modification, as it applies to direct loans and loan guarantees,
means a federal government action, including new legislation or
administrative action, that directly or indirectly alters the estimated
subsidy cost and the present value of outstanding direct loans, or the
liability of loan guarantees. The cost of the modification is the excess
of the premodification value of a direct loan (or postmodification
liability of loan guarantees) over the postmodification value of a direct
loan (or premodification liability of loan guarantees), both of which have
been discounted at the Treasury rate in effect when the modification
occurred. (SFFAS 2, par. 41; SFFAS 2, par. 45, notes 3 & 4 & par. 49,
notes 6 & 7; SFFAS 19, par. 6) The book value of the loan or guarantee is
discounted at the Treasury rate originally used to calculate the present
value of the direct loan or loan guarantee liability when the loan was
originally disbursed. (SFFAS 2, par. 48 & 50, app. B parts I D (4 & 5), II
B (4), III B (4), & IV B (4)) The sale of post-1991 and pre-1992 direct
loans is treated as a direct modification of the loans sold if the sale
proceeds were not included in the cash flows estimates for the initial
subsidy calculation. The cost of modification is determined on the basis
of the premodification value of the loans sold. However, if sale proceeds
were included in the cash flow estimates for the initial subsidy
calculation, the effect of the loan sale on the cost of the program is
recognized in the reestimates. (SFFAS 2, par. 53, Appendix B. par 1F)
169. If pre-1992 or post-1991 direct                       
loans are modified, is the excess of                       
the premodification value74 over the                       
postmodification value75 recognized as                     
a modification expense? (SFFAS 2, par.                     
45 & app. B, parts I D (1-3) & II B                        
(1-3))                                                     
170. If the cost of modifying pre-1992                     
or post-1991 loans is greater than the                     
decrease in the loans' book value, is                      
the difference recognized as a gain?76                     
(SFFAS 2, par. 48 & app. B, parts I D                      
          (4 & 5) & II B (4 & 5))                             

74This is the present value of the net cash inflows estimated under
premodification terms discounted at the current Treasury rate.

75This is the present value of the net cash inflows estimated under
postmodification terms discounted at the current Treasury rate.

76A gain from a modification occurs when the cost of a modification is
greater than the decrease in book value of a direct loan (or increase in
the liability of a loan guarantee). (SFFAS 2, par. 46, 48 note 5, 50, & 52
note 8; SFFAS 19, par. 7)

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Section IV Statement of Net Cost

           Costs Credit Programs (131 - 178)          Yes, No, or Explanation 
                                                          N/A     
       171. If the cost of modifying pre-1992 or                  
    post-1991 loans is less than the decrease in the              
loans' book value, is the difference recognized as             
a loss?77 (SFFAS 2, par. 48 & app. B, parts I D (4             
               & 5), & part II B (4 & 5))                         
172. If pre-1992 or post-1991 loan guarantees are              
modified, is the excess of the postmodification                
liability78 over the premodification liability79               
recognized as a modification expense? (SFFAS 2,                
par. 49 & app. B, parts III D (1-3), & IV B (1-3))             
       173. If the cost of modifying pre-1992 or                  
     post-1991 loan guarantees is greater than the                
     increase in the book value of the related loan               
        guarantee liabilities, is the difference                  
recognized as a gain? (SFFAS 2, par. 52 & app. B,              
            parts III D (4 & 5), & IV B (5))                      
174. If the cost of modifying pre-1992 or                      
post-1991 loan guarantees is less than the                     
increase of the related loan guarantee                         
liabilities, is the difference recognized as a                 
loss? (SFFAS 2, par. 52 & app. B, parts III D (4 &             
5) & IV B (5))                                                 
175. If the premodification value of post-1991 and             
     pre-1992 loans sold80 exceeds the net proceeds               
    from the sale, is the excess treated as the cost              
    of modification and recognized as a modification              
expense? (SFFAS 2, par. 45 & 53 & app. B, part I F             
                          (1))                                    
      176. If a loan is sold with recourse, is the                
      present value of estimated losses under the                 
recourse or guarantee obligations recognized as a              
subsidy expense and as a loan guarantee liability?             
                   (SFFAS 2, par. 54)                             

77A loss from a modification occurs when the cost of a modification is
less than the decrease in book value of a direct loan (or increase in the
liability of a loan guarantee) that was discounted at the Treasury rate in
effect when the loan was made. (SFFAS 2, par. 46, 48 note 5, 50, & 52 note
8; SFFAS 19, par. 17)

78This is the present value of the net cash flows under postmodification
terms discounted at the current Treasury rate.

79This is the present value of the net cash flows under premodification
terms discounted at the current Treasury rate.

80This is the present value of the loans' net cash inflows discounted at
the current discount rate.

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                        Section IV Statement of Net Cost

         Costs Credit Programs (131 - 178)        Yes, No, or N/A Explanation 
177. If the modification expense arising from                  
     a loan sale is greater than the book value                   
loss, is the difference recognized as a gain?                  
     (SFFAS 2, par. 55 & app. B, part I F (2))                    
178. If the modification expense arising from                  
a loan sale is less than the book value loss,                  
is the difference recognized as a loss? (SFFAS                 
         2, par. 55 & app. B, part I F (2))                       

October 2003 GAO-04-44G - CFO Checklist - Revised 2003 - Exposure Draft Page 147

Section V Statement of Changes in Net Position

The 40 questions in this section are related to the Statement of Changes
in Net Position Question Numbers

1. General 1 -6

2. Budgetary Financing Sources 7 - 23

3. Other Financing Sources 24 -40

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Page 148

                 Section V Statement of Changes in Net Position

                  General (1 - 6)                  Yes, No, or   Explanation  
                                                       N/A      
The Statement of Changes in Net Position reports the change in net
position during the reporting period. Net position is affected by changes
to its two components: Cumulative Results of Operations and Unexpended
Appropriations. They are broken out into two separate columns in the
Statement of Changes in Net Position. (OMB Bulletin 01-09, pp. 34 & 35,
sections 5.1 & 5.2)                            
     1. Do the ending balances of the two main                  
      components of this statement, Cumulative                  
        Results of Operations and Unexpended                    
    Appropriations, agree with to line items of                 
    the same names in the "net position" section                
of the balance sheet? (OMB Bulletin 01-09, p.                
    18, section 3.2, pp. 34 & 35, sections 5.1 &                
              5.2, p. 38, section 5.7)                          
2. Do beginning balances of Cumulative Results               
    of Operations and Unexpended Appropriations                 
       agree with the amounts reported as net                   
    position on the prior year's balance sheet?                 
      (OMB Bulletin 01-09, p. 35, section 5.3)                  

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                 Section V Statement of Changes in Net Position

                  General (1 - 6)                 Yes, No, or N/A Explanation 
     3. Are "beginning balances, as adjusted,"                    
equal to the sum of the beginning balances of                  
    net position as reported on the prior year's                  
    balance sheet, and prior period adjustments?                  
      (OMB Bulletin 01-09, p. 36, section 5.3)                    
4. When errors81 are discovered after the                      
issuance of financial statements, and if the                   
financial statements would be materially                       
misstated absent correction of the errors, are                 
the corrections made as follows in the                         
statement of changes in net position? a. If                    
only the current period statement is                           
presented, the cumulative effect of correcting                 
the error is reported as a prior period                        
adjustment to the beginning balance of the                     
cumulative results of operations. b. If                        
comparative financial statements are                           
presented, individual amounts on the financial                 
statements are corrected in the earliest                       
affected period presented. c. If the earliest                  
period presented in the comparative financial                  
statements is not the period in which the                      
error occurred and the cumulative effect is                    
attributable to prior periods, the cumulative                  
effect is reported as a prior period                           
adjustment to the beginning balance of                         
cumulative results of operations in the                        
statement of net position for the earliest                     
period presented. (SFFAS 21, par. 10 & 11)                     

81Errors in financial statements result from mathematical mistakes,
mistakes in the application of accounting principles, or oversight or
misuse of facts that existed at the time the financial statements were
prepared.

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                 Section V Statement of Changes in Net Position

                  General (1 - 6)                 Yes, No, or N/A Explanation 
     5. Is the nature of an error in previously                   
issued financial statements and the effect of                  
its correction on relevant balances disclosed?                 
              (SFFAS 21, par. 10 (c))                             
6. If changes in accounting principles82 would                 
have resulted in a change to prior period                      
financial statements, are they handled in the                  
following manner? a. the cumulative effect of                  
the change on prior periods is reported as a                   
"change in accounting principle" and reported                  
as an adjustment to the beginning balance of                   
the cumulative results of operations in the                    
Statement of Changes in Net Position for the                   
period that the change is made b. prior period                 
financial statements presented for comparative                 
purposes are presented as previously reported                  
c. the nature of the changes in accounting                     
principle and its effect on relevant balances                  
are disclosed in the current period83 (SFFAS                   
21, par. 12 & 13; SFFAS 23, par. 17 & 18)                      

82A change in accounting principle is a change from one generally accepted
accounting principle to another one that can be justified as preferable;
this would also include changes occasioned by the adoption of new federal
accounting standards.

83Financial statements of subsequent periods need not repeat the
disclosure.

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Page 151

                 Section V Statement of Changes in Net Position

      Budgetary Financing Sources (7 - 23)     Yes, No, or N/A  Explanation   
The section, "Budgetary Financing Sources," displays financing sources and
nonexchange revenue that are also budgetary resources, or adjustments to
these resources, as reported on the Statement of Budgetary Resources and
defined as such by OMB Circular No. A-11, Part 484 "Instructions on Budget
Execution," as amended. (OMB Bulletin 01-09, p. 36, section 5.4)
7. Do budgetary "appropriations received"85                 
reported under "Budgetary Financing                         
Sources" agree with the amount reported on                  
the line item "appropriations received" in                  
the Statement of Budgetary Resources? (OMB                  
Bulletin 01-09, p. 36, section 5.4)                         
8. Are unexpended appropriations reduced as                 
appropriations are used? (SFFAS 7, par. 71)                 
    9. Are unexpended appropriations adjusted                  
    for other changes in budgetary resources,                  
    such as rescissions and transfers? (SFFAS                  
                   7, par. 71)                                 
    10. Do "appropriations transferred in/out                  
    (+/-)" equal the amount of appropriations                  
    received in the current or prior year(s)                   
that have been transferred in or out during                 
    the current reporting year? (OMB Bulletin                  
           01-09, p. 36, section 5.4)                          
11. Do "other adjustments86 (rescissions,                   
etc.) (+/-)" include adjustments to either                  
cumulative results of operations or                         
unexpended appropriations? (OMB Bulletin                    
01-09, p. 36, section 5.4)                                  

84OMB Circular A-11 superceded OMB Circular A-34 in June 2002 and was
revised on July 25, 2003.

85Appropriations received do not include appropriated dedicated and
earmarked receipts. Dedicated and earmarked receipts are accounted for as
either exchange or nonexchange revenue in accordance with SFFAS No. 7)

86Some examples of adjustments include rescissions of appropriations and
cancellations of expired appropriation expenditure accounts, which would
also be included in line 6, "Permanently not Available" on the Statement
of Budgetary Resources.

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                 Section V Statement of Changes in Net Position

          Budgetary Financing Sources (7 - 23)        Yes, No, or Explanation 
                                                          N/A     
12. Are appropriations used by collecting entities             
to provide refunds of monies deposited to Treasury             
and trust funds reported under "other adjustments              
      (rescissions, etc.) (+/-)" rather than as an                
"appropriations used?" (OMB Bulletin 01-09, p. 36,             
                      section 5.4)                                
     13. Are "appropriations used" recognized as a                
      financing source when goods and services are                
        received or when benefits and grants are                  
provided?87 (SFFAS 7, par. 72; OMB Bulletin 01-09,             
                  p. 36, section 5.4)                             
        14. Is the amount of appropriations used                  
     subtracted from unexpended appropriations and                
    added to cumulative results of operations for a               
    net zero effect on net position as a whole? (OMB              
          Bulletin 01-09, p. 36, section 5.4)                     
15. Do "appropriations88 used" exclude the                     
following? a. undelivered orders b. unobligated                
appropriations c. dedicated tax receipts,                      
earmarked receipts, and donations89 (OMB Bulletin              
01-09, p. 36, section 5.4)                                     
16. Is nonexchange revenue recognized as a                     
financing source (and not as a deduction in                    
determining the net cost of operations)? (SFFAS 7,             
par. 60)                                                       

87This is true whether the goods, services, and benefits are payable or
paid as of the reporting date and whether the appropriations are used for
items that are expensed or capitalized.

88Appropriations used does not increase net position. It is subtracted
from "unexpended appropriations" and added to "cumulative results of
operations," which are line items on the balance sheet.

89Those financing sources are reported as either exchange or nonexchange
revenue.

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                 Section V Statement of Changes in Net Position

        Budgetary Financing Sources (7 - 23)      Yes, No, or N/A Explanation 
17. Does the entity recognize nonexchange                      
revenues, such as taxes, if it is legally                      
entitled to the revenue? (SFFAS 7, par. 48 &                   
49)                                                            
18. Is nonexchange revenue recognized when the                 
       government's claim to resources can be                     
     characterized as follows? a. specifically                    
       identifiable b. legally enforceable c.                     
    reasonably estimable d. more likely than not                  
           collectable (SFFAS 7, par. 48)                         
19. Is revenue recognized by the recipient                     
entities the sum of the following? a. cash or                  
cash equivalents transferred to them by the                    
collecting entities b. the net change in any                   
related interentity balances between the                       
collecting and the receiving entities (i.e.,                   
the amount to be transferred to the recipient                  
entities from the collecting entity or vice                    
versa) (SFFAS 7, par. 60)                                      
20. Do "donations and forfeitures of cash and                  
cash equivalents" include voluntary gifts and                  
    involuntary forfeitures of resources to the                   
     federal government by nonfederal entities?                   
      (OMB Bulletin 01-09, p. 37, section 5.4)                    

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Section V Statement of Changes in Net Position

          Budgetary Financing Sources (7 - 23)        Yes, No, or Explanation 
                                                          N/A     
21. Do "transfers-in/out without reimbursement                 
(+/-)" under "budgetary financing sources" include             
intragovernmental nonappropriated90 balance                    
transfers in or out during the current reporting               
year? (OMB Bulletin 01-09, p. 37, section 5.4)                 
22. Is exchange revenue (included in calculating               
an entity's net cost of operations) required to be             
transferred to the Treasury or another federal                 
entity recognized as a transfer out? (OMB Bulletin             
01-09, p. 37, section 5.4)                                     
23. Do "other budgetary financing sources" include             
     other financing sources that affect budgetary                
      resources that have not been covered by the                 
    preceding questions? (OMB Bulletin 01-09, p. 37,              
                      section 5.4)                                

90Nonappropriated balances include financing sources and revenue not
reported as unexpended appropriations.

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                 Section V Statement of Changes in Net Position

         Other Financing Sources (24 - 40)        Yes, No, or N/A Explanation 
        "Other financing sources," displays financing sources and nonexchange
         revenue that do not represent budgetary resources as reported on the
     Statement of Budgetary Resources and defined as such by OMB Circular No.
                        A-11, Part 4 (OMB Bulletin 01-09, p. 37, section 5.5)
      24. Do the items reported in the "other                     
    financing sources" section equal the amounts                  
    reported as similar line items in the "other                  
      resources"91 section on the Statement of                    
Financing? (OMB Bulletin 01-09, p. 35, section                 
5.2, pp. 37 & 38, section 5.5, p. 46, section                  
             7.2 & p. 48, section 7.3)                            
25. Is revenue arising from donations of                       
property measured at the estimated fair value                  
of the contribution at the time of the                         
donation? (SFFAS 6, par. 30; SFFAS 7, par. 62,                 
OMB Bulletin 01-09, p. 37, section 5.5)                        

91Other resources increase net position but are not budgetary resources as
reported on the "Statement of Budgetary Resources or defined as such in
OMB Circular No. A-11, Part 4. OMB Circular A-11 superceded OMB Circular
A-34 in June 2002 and was revised on July 25, 2003.

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Section V Statement of Changes in Net Position

           Other Financing Sources (24 - 40)          Yes, No, or Explanation 
                                                          N/A     
26. Are transferred assets recorded at the book                
value of the transferring entity, or, if the                   
receiving entity does not know the book value, is              
the asset recorded at its estimated fair value as              
of the date of the transfer? (SFFAS 7, par. 74;                
OMB Bulletin 01-09, p. 37, section 5.5)                        
27. When assets92 are transferred in or out by                 
entities without reimbursement: a. Does the                    
receiving entity recognize the transfer-in as an               
increase in financing sources in its statement of              
net position? b. Does the transferring entity                  
recognize the transfer out as a decrease in                    
financing sources in its statement of changes in               
net position? (SFFAS 7, par. 74, OMB Bulletin                  
01-09, p. 37, section 5.5)                                     

92This amount includes intragovernmental transfers in to or out of
capitalized assets during the current reporting year.

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                 Section V Statement of Changes in Net Position

           Other Financing Sources (24 - 40)          Yes, No, or Explanation 
                                                          N/A     
28. Does the reporting entity recognize an imputed             
    financing source for costs funded through other               
federal entities as well as nonreimbursed costs of             
      goods and services provided by other federal                
    entities? (SFFAS 4, par. 109; SFFAS 7, par. 73;               
        OMB Bulletin 01-09, p. 37, section 5.5)                   
     29. Do imputed financing costs reported on the               
     Statement of Changes in Net Position equal the               
    amount of imputed financing costs as reported on              
the statement of net cost? (OMB Bulletin 01-09, p.             
                    37, section 5.5)                              
30. Do "other financing sources" include other                 
financing sources that do not represent budgetary              
resources and that have not been covered by the                
preceding questions (i.e., nos. 23-28)? (OMB                   
Bulletin 01-09, p. 38, section 5.5)                            
     31. Is exchange revenue transferred to another               
government entity or to the Treasury recognized as             
a "transfer out" in determining the net results of             
             operations? (SFFAS 7, par. 75)                       
32. Is a gain93 from the modification94 of                     
post-1991 loans reported as a reduction in                     
financing source and paid to the Treasury as a                 
"modification adjustment transfer?" (SFFAS 2, par.             
48, & app. B, part I D (5))                                    

93The excess of the cost of the modification over the decrease in loan
book value discounted at the Treasury rate.

94A modification means a federal government action, including new
legislation or administration action, which directly or indirectly alters
the estimated subsidy cost and present value of outstanding loans or the
liability of loan guarantees. (SFFAS 2, par. 41)

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Section V Statement of Changes in Net Position

         Other Financing Sources (24 - 40)        Yes, No, or N/A Explanation 
      33. Is a loss95 from the modification of                    
post-1991 loans reported as a financing source                 
    when the reporting entity receives from the                   
Treasury a "modification adjustment transfer?"                 
     (SFFAS 2, par. 48 & app. B, part I D (5))                    
34. Is a gain96 resulting from a modification                  
     of post-1991 loan guarantees reported as a                   
reduction in financing source and paid to the                  
       Treasury as a "modification adjustment                     
    transfer?" (SFFAS 2, par. 52 & app. B, part                   
                     III D (5))                                   
35. Is a loss97 resulting from a modification                  
of post-1991 loan guarantees reported as a                     
financing source when the reporting entity                     
receives from the Treasury a "modification                     
adjustment transfer" to offset the difference?                 
(SFFAS 2, par. 52 & app. B, part III D (5))                    
36. Is a gain on the sale of a post-1991 loan                  
reported as a reduction in financing source                    
and paid to the Treasury as a "modification                    
adjustment transfer?" (SFFAS 2, par. 55 & app.                 
B, part I F (2))                                               
37. Is a loss on the sale of a post-1991 loan                  
      reported as a financing source when the                     
reporting entity receives from the Treasury a                  
"modification adjustment transfer?" (SFFAS 2,                  
          par. 55 & app. B, part I F (2))                         

95The excess of the decrease in loan book value, discounted at the
Treasury rate, over the cost of the modification. 96The excess of the cost
of the modification over the increase in liability discounted at the
Treasury rate. 97The excess of the increase in liability, discounted at
the Treasury rate, over the cost of the modification.

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                 Section V Statement of Changes in Net Position

           Other Financing Sources (24 - 40)          Yes, No, or Explanation 
                                                          N/A     
38. Does the amount "net cost of operations"                   
reported under cumulative results of operations                
agree with "net cost of operations" as reported on             
the Statement of Net Cost and Statement of                     
Financing? (OMB Bulletin 01-09, p. 38, section 5.6             
& p. 51, section 7.7)                                          
     39. Is the difference between the net cost of                
    operations and the sum of the financing sources               
    (i.e., budgetary and other) equal to the ending               
      balance of net position as it relates to the                
    cumulative results of operations? (OMB Bulletin               
               01-09, p. 38, section 5.6)                         
40. Do the ending balances of the cumulative                   
results of operations and unexpended                           
appropriations agree with the amounts reported as              
net position on the current year's balance sheet?              
(OMB Bulletin 01-09, p. 38, section 5.7)                       

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Section VI Statement of Budgetary Resources

The 27 questions in this section concern the Statement of Budgetary
Resources.

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                  Section VI Statement of Budgetary Resources

    Statement of Budgetary Resources (1-27)   Yes, No, or N/A   Explanation   
The budget is the primary financial planning and control tool of the
government. The Statement of Budgetary Resources and the related
disclosures provide information about how budgetary resources were made
available as well as their status at the end of the period. It is the only
financial statement exclusively derived from an entity's budgetary general
ledger, prepared in accordance with budgetary accounting rules, which are
incorporated into Generally Accepted Accounting Principles (GAAP) for the
federal government. (SFFAS 7, par. 77; OMB Bulletin 01-09, p. 39, section
6.1)                                       
    1. Is the recognition and measurement of                  
     budgetary information reported on the                    
     Statement of Budgetary Resources (SBR)                   
based on budget terminology, definitions,                  
      and guidance in OMB Circular A-11,98                    
    Preparation, Submission and Execution of                  
    the Budget, (July 2003)? (SFFAS 7, par.                   
     78; OMB Bulletin 01-09, p. 39, section                   
                      6.1)                                    
2. Is information on the SBR consistent                    
with budget execution information reported                 
on the Report on Budget Execution and                      
Budgetary Resources (SF 133) and with                      
information reported in the Budget of the                  
United States Government? (OMB Bulletin                    
01-09, p. 39, section 6.1)                                 
3. Does the entity disclose and explain                    
any material differences between                           
comparable information contained in the                    
three reports (i.e., SBR, SF 133 and the                   
Budget of the United States Government)?                   
(OMB Bulletin 01-09, p. 6, section 1.7 &                   
p. 39, section 6.1)                                        
4. Is budgetary information aggregated for                 
     purposes of the Statement of Budgetary                   
Resources disaggregated99 for each of the                  
    reporting entity's major budget accounts                  
    and presented as required supplementary                   
      information? (SFFAS 7, par. 78; OMB                     
     Bulletin 01-09, p. 112, section 11.4)                    

98OMB Circular A-11 superceded OMB Circular A-34 in June 2002 and was
revised on July 25, 2003. 99Small budgetary accounts may be aggregated.

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                  Section VI Statement of Budgetary Resources

      Statement of Budgetary Resources (1-27)     Yes, No, or N/A Explanation 
5. Do the major accounts and the aggregate of                  
small budget accounts agree, in total, with                    
the amounts reported on the face of the                        
Statement of Budgetary Resources? (OMB                         
Bulletin 01-09, p. 112, section 11.4)                          
     6. Is the budgetary information in the SBR                   
       presented on a combined basis that is                      
        consistent with the aggregate of the                      
account-level information presented on the SF                  
133s? (OMB Bulletin 01-09, p. 39, section 6.2)                 
7. Are nonbudgetary credit financing accounts                  
       reported separately from the budgetary                     
accounts? (OMB Bulletin 01-09, p. 40, section                  
                        6.3)                                      

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                  Section VI Statement of Budgetary Resources

        Statement of Budgetary Resources (1-27)       Yes, No, or Explanation 
                                                          N/A     
       8. Does the entity include in its SBR the                  
    following under "Budgetary Resources"? a. budget              
         authority, including if applicable i.                    
    appropriations received ii. borrowing authority               
iii. contract authority iv. net transfers (+/-) v.             
      other b. unobligated balances, including if                 
applicable i. beginning of period balances ii. net             
transfers, actual (+/-) iii. anticipated transfer              
     balances c. spending authority from offsetting               
    collections, including, if applicable i. earned               
authority that is collected and/or receivable from             
federal services ii. changes in unfilled customer              
      orders that are advance(s) received, and/or                 
      without advance(s) from federal sources iii.                
    anticipated collections for the rest of the year              
without advances iv. transfers from trust funds d.             
recoveries of prior year obligations e. budgetary              
    resources temporarily not available pursuant to               
public law f. budgetary resources permanently not              
     available (OMB Bulletin 01-09, p. 41, section,               
                 6.4; SFFAS 7, par. 77)                           

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                  Section VI Statement of Budgetary Resources

        Statement of Budgetary Resources (1-27)       Yes, No, or Explanation 
                                                          N/A     
     9. Do the budgetary resources reported in this               
    section agree with the total budgetary resources              
     reported for all of the budget accounts on the               
      year-end SF 133? (OMB Bulletin 01-09, p. 42,                
                      section 6.5)                                
10. Does the line item "appropriations                         
received"100 reported on the SBR equal the amount              
reported as "appropriations received" on the                   
Statement of Changes in Net Position? (OMB                     
Bulletin 01-09, p. 36, section 5.4 & p. 43,                    
section 6.5)                                                   
    11. Does the line item entitled "permanently not              
available" on the SBR include items reported under             
     "other adjustments (rescissions, etc.)" on the               
       Statement of Changes in Net Position? (OMB                 
      Bulletin 01-09, p. 36, section 5.4 & p. 43,                 
                      section 6.5)                                
    12. Does the entity include the following under               
     "Status of Budgetary Resources" on the SBR? a.               
obligations incurred that are i. direct and/or ii.             
reimbursable b. unobligated balance(s) that are i.             
     apportioned ii. exempt from apportionment iii.               
otherwise available c. unobligated balance(s) not              
available (OMB Bulletin 01-09, p. 42, section 6.4;             
                   SFFAS 7, par. 77)                              
      13. Does the total amount displayed for the                 
"status of budgetary resources" section of the SBR             
equal "total budgetary resources" available to the             
    reporting entity as of the reporting date? (OMB               
          Bulletin 01-09, p. 43, section 6.6)                     

100Appropriations received do not include appropriated, dedicated and
earmarked receipts. Dedicated and earmarked receipts, typically in special
and nonrevolving trust funds, are accounted for as either exchange or
nonexchange revenue in accordance with SFFAS No. 7.

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                  Section VI Statement of Budgetary Resources

        Statement of Budgetary Resources (1-27)       Yes, No, or Explanation 
                                                          N/A     
       14. Does the status of budgetary resources                 
    reported on the SBR agree with the total status               
    reported for each budget account on the year-end              
    SF 133? (OMB Bulletin 01-09, p. 43, section 6.6)              
15. Does the entity's SBR include the following                
under "Relationship of Obligations to Outlays?" a.             
obligated balance, net, beginning of period b.                 
obligated balance transferred, net (+/-) c.                    
obigated balance, net, end of period that are i.               
accounts receivable ii. unfilled customer orders               
from federal sources iii. undelivered orders iv.               
accounts payable d. outlays that are i.                        
disbursements ii. collections e. less, if                      
applicable, offsetting receipts101 (OMB Bulletin               
01-09, p. 40, section 6.3 & p. 42, section 6.4)                
16. Do the outlays102 reported in "Relationship of             
Obligations to Outlays" section agree with the                 
agency outlay totals reported in the Budget of the             
United States Government?103 (OMB Bulletin 01-09,              
p. 43, section 6.7)                                            

 101Offsetting receipts offset budget authority and outlays at the agency level
    in the Budget of the United States Government, but are not reflected in

budget execution reports (SF 133s), which provide account-level
information only. Since the SBR is an agencywide report, offsetting
receipts must be

included to reconcile to information in the Budget of the United States
Government.

102Outlays consist of disbursements net of offsetting collections.

103That is, do the outlays agree with the aggregate of the outlays for
accounts within the Budget of the United States Government?

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                  Section VI Statement of Budgetary Resources

    Statement of Budgetary Resources (1-27)   Yes, No, or N/A   Explanation   
     17. Do the outlays also agree with the                   
      aggregate of outlays reported on the                    
    year-end SF 133 for all budget accounts,                  
including nonbudgetary financing accounts                  
     and the disbursements and collections                    
reported to Treasury on a monthly basis104                 
as per OMB Circular A-11?105 (OMB Bulletin                 
           01-09, p. 43, section 6.7)                         
       Offsetting receipts are collections that are credited to general fund,
           special fund, or trust fund receipt accounts and that offset gross
    outlays. Unlike offsetting collections, which are credited to expenditure
    accounts and offset outlays at the account level, offsetting receipts are
             credited to receipt accounts and offset outlays at the agency or
              governmentwide level. Offsetting receipts may be distributed or
        undistributed to agencies. Distributed offsetting receipts offset the
        outlays of the agency, while undistributed offsetting receipts offset
     governmentwide outlays. Distributed offsetting receipts typically offset
         the outlays of the agency that conducts the activity, generating the
receipts and the subfunction to which the activity is assigned. Offsetting
      receipts are composed of proprietary receipts from the public, receipts
from intragovernmental transactions, and offsetting governmental receipts.
                               (OMB Bulletin 01-09, pp. 43 & 44, section 6.7)
       18. Does the line item "offsetting                     
        receipts" on the SBR include all                      
    distributed offsetting receipts for the                   
     agency?106 (OMB Bulletin 01-09, p. 44,                   
                  section 6.7)                                
19. Does the agency include the following                  
receipt accounts from the Treasury Annual                  
Report Appendix, Part 4, Other                             
Information/Receipts by Department, in the                 
SBR? a. Proprietary Receipts from the                      
Public b. Intrabudgetary Receipts Deducted                 
by Agencies c. Offsetting Governmental                     
Receipts (OMB Bulletin 01-09, p. 44,                       
section 6.7)                                               

104Agencies report their disbursements and collections using the SF 224,
Statement of Transactions; SF 1219, Statement of Accountability; and SF
1220, Statement of Transactions.

105OMB Circular A-11 superceded OMB Circular A-34 in June 2002 and was
revised on July 25, 2003.

106A list of distributed offsetting receipt accounts can be found in the
Treasury Annual Report Appendix, Part 4, Other Information.

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                  Section VI Statement of Budgetary Resources

        Statement of Budgetary Resources (1-27)       Yes, No, or Explanation 
                                                          N/A     
20. Is the amount of distributed offsetting                    
receipts reported in SBR the aggregate of cash                 
collected in these receipt accounts and reported               
to Treasury on a monthly basis?107 (OMB Bulletin               
01-09, p. 44, section 6.7)                                     
21. Does the amount of offsetting receipts that                
are distributed to agencies and reported on the                
SBR agree with the deductions for offsetting                   
receipts as reported in the Budget of the United               
States Government, if available by the time the                
financial statements must be finalized and                     
submitted? (OMB Bulletin 01-09, p. 44, section                 
6.7)                                                           
    22. Are undistributed offsetting receipts, which              
     are credited to governmentwide outlay totals,                
excluded from the SBR? (OMB Bulletin 01-09, p. 44,             
                      section 6.7)                                
    23. Do the net outlays in the SBR agree with the              
    net outlays108 as reported in the Budget of the               
United States Government, if available by the time             
     the financial statements must be finalized and               
     submitted? (OMB Bulletin 01-09, p. 44, section               
                          6.7)                                    
24. Does the entity disclose the amount of direct              
     and reimbursable obligations incurred against                
    amounts apportioned under category109 "A," "B,"               
     and "exempt from apportionment"? (OMB Bulletin               
              01-09, p. 93, section 9.27)                         

107Agencies use the SF 224, Statement of Transactions; SF 1219, Statement
of Accountability; and SF 1220, Statement of Transactions.

108Net outlays are equal to gross outlays less offsetting collections and
receipts.

109Apportionment categories are to be determined in accordance with
guidance provided in OMB Circular A-11, Part 4, Instructions on Budget
Execution, which superceded Circular A-34.

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                  Section VI Statement of Budgetary Resources

        Statement of Budgetary Resources (1-27)       Yes, No, or Explanation 
                                                          N/A     
    25. Does the disclosure of the amount of direct               
     and reimbursable obligations incurred against                
    amounts apportioned under category110 "A," "B,"               
     and "exempt from apportionment" agree with the               
    aggregate of the related information as reported              
    on the agency's year-end SF 133, and the amounts              
reported under direct and reimbursable obligations             
      incurred, reported on the SBR? (OMB Bulletin                
              01-09, p. 93, section 9.27)                         
26. Does the entity disclose the following                     
information related to the status of budgetary                 
resources? a. the amount of budgetary resources                
obligated for undelivered orders at the end of the             
period b. available borrowing and contract                     
authority at the end of the period c. repayment                
requirements, financing sources for repayment, and             
other terms of borrowing authority used d. amounts             
adjusted to "budgetary resources available at the              
beginning of the year," during the reporting                   
period, as well as an explanation of the                       
adjustments e. existence, purpose, and                         
availability of permanent, indefinite                          
appropriations f. information about legal                      
arrangements affecting the use of unobligated                  
balances of budget authority, such as time limits,             
purpose, and obligation limitations g.                         
explanations of any material differences between               
the budgetary resources reported in the SBR and                
"actual" amounts in the Budget of the United                   
States Government h. the amount of unfunded                    
liabilities, and an explanation that includes                  
identification of balance sheet components, when               
unfunded liabilities do not equal the total                    
financing sources yet to be provided i. the amount             
of any capital infusion received during the                    
reporting period (SFFAS 7, par. 79 & 209-212; OMB              
Bulletin 01-09, p. 93 & 94, sections 9.27-9.34)                

110Apportionment categories are to be determined in accordance with
guidance provided in OMB Circular A-11, Part 4 Instructions on Budget
Execution, which superceded Circular A-34.

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                  Section VI Statement of Budgetary Resources

      Statement of Budgetary Resources (1-27)     Yes, No, or N/A Explanation 
27. In order to ensure consistency between the                 
information presented in the SBR and the                       
Budget of the United States Government, does                   
the entity do the following? a. post all known                 
audit adjustments to the Federal Agencies                      
Centralized Trial-balance System II (FACTS II)                 
during the window of time specified for                        
posting corrections to the budget information                  
b. post all known audit adjustments to OMB's                   
MAX A-11 budget preparation system during the                  
time frames provided by OMB (OMB Bulletin                      
01-09, pp. 5 & 6, section 1.7)                                 

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                       Section VII Statement of Financing

The 27 questions in this section are related to the Statement of
Financing.

Question Numbers

1. Resources Used to Finance Activities 1-8

2. 	Resources Used to Finance Items Not Part of 9-14
the Net Cost of Operations

3. Components of the Net Cost of Operations that 15-24

Will Not Require or Generate Resources in the Current Period Resources

4. Disclosure Items 25-27

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                       Section VII Statement of Financing

      Resources Used to Finance        Yes, No, or N/A        Explanation     
          Activities (1 - 8)                               
The Statement of Financing is the bridge between an entity's budgetary and
         financial (i.e., proprietary) accounting. The Statement of Financing
         articulates the relationship between net obligations derived from an
      entity's budgetary accounts and net cost of operations derived from the
              entity's proprietary accounts by identifying and explaining key
differences between the two numbers. Most entity transactions are recorded
       in both budgetary and proprietary accounts. However, because different
     accounting bases are used for budgetary and proprietary accounting, some
        transactions may appear in only one set of accounts (e.g., accrual of
        environmental and disposal liabilities, which is recorded only in the
         proprietary records). Furthermore, not all obligations or offsetting
    collections may result in expenses or exchange revenue (e.g., purchase of
a building is capitalized on the balance sheet in the proprietary accounts
      but obligated and outlayed in the budgetary accounts). The statement is
    structured to first identify total resources used by an entity during the
      period (budgetary and other) and then make adjustments to the resources
        based upon how they were used to finance net obligations or net cost.
        Budgetary resources reported in this statement are those resources as
    defined in OMB Circular No. A-11111and are also reported on the Statement
       of Budgetary Resources. Other resources reported in this statement are
    also reflected in the Statement of Changes in Net Position. (OMB Bulletin
     01-09, p. 45, section 7.1; SFFAS 7, par. 80 & 95) The section "Resources
Used to Finance Activities" reflects the budgetary resources obligated and
other resources that are used to finance the activities of the agency. The
        obligations of budgetary resources are net of offsetting collections,
       recoveries, and offsetting receipts. The other resources are financing
    sources that increase net position but are not budgetary resources. Every
line item in this section is mirrored on either the Statement of Budgetary
Resources or the Statement of Changes in Financial Position. (OMB Bulletin
                                                   01-09, p. 47, section 7.3)

111OMB Circular No. A-11, Part 4, Instructions on Budget Execution, has
superceded OMB Circular No A-34.

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Section VII Statement of Financing

      Resources Used to Finance Activities (1 - 8)    Yes, No, or Explanation 
                                                          N/A     
1. Is the budgetary information used to calculate              
net obligations112 in the "Resources Used to                   
Finance Activities" section of the Consolidated                
Statement of Financing, presented on a combined                
basis113 to enable agreement with similar amounts              
reported on the Statement of Budgetary Resources?              
(OMB Bulletin 01-09, p. 6, section 1.8 & p. 46,                
section 7.1)                                                   
      2. Does the amount reported as "obligations                 
    incurred" equal the obligations incurred114 line              
     item as reported on the Statement of Budgetary               
      Resources, and does this include all budget                 
       accounts, including nonbudgetary financing                 
accounts? (OMB Bulletin 01-09,p. 47, section 7.3)              
3. Does the line item "less: spending authority                
from offsetting115 collections and recoveries"116              
agree with the spending authority from offsetting              
collections and recoveries as reported on the                  
Statement of Budgetary Resources, and does this                
include all budget accounts, including                         
nonbudgetary financing accounts? (OMB Bulletin                 
01-09, p. 47, section 7.3)                                     
    4. Is "Obligations net of offsetting collections              
    and recoveries" equal to the difference between               
     "obligations incurred" and "spending authority               
from offsetting collections and recoveries?" (OMB              
          Bulletin 01-09, p. 48, section 7.3)                     

112The budgetary information includes the line items (1) " obligations
incurred," (2) "Less: spending authority from offsetting collections and
recoveries," (3) "obligations net of offsetting collections and
recoveries," and 4) "less: offsetting receipts."

113A combined basis means the aggregation of account-level information as
opposed to a consolidation that implies the elimination of inter-account
transactions.

114This is not to be confused with total budgetary resources; e.g., with
total appropriations received and available, as the statement of financing
is not concerned with total resources or restrictions on OMB's ability to
apportion or the agency's ability to allot total resources. (SFFAS 7
Implementation Guide (April 2002), par. 14)

115"Offsetting" in the term "offsetting collections" means that the
resources generated by the collecting activity are added to the
expenditure accounts and hence "offset" gross obligations. (SFFAS 7
Implementation Guide (April 2002), par. 22)

116Recoveries are budgetary resources that offset obligations on the
Statement of Budgetary Resources, but are not a proprietary financing
source used to offset costs on the Statement of Net Cost. (OMB Bulletin
01-09, p. 49, section 7.4)

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Page 173

Section VII Statement of Financing

      Resources Used to Finance Activities (1 - 8)    Yes, No, or Explanation 
                                                          N/A     
5. Does the amount reported as "less: offsetting               
receipts" equal the offsetting receipts117 line                
item as reported on the Statement of Budgetary                 
Resources? (OMB Bulletin 01-09, p. 48, section                 
7.3)                                                           
    6. Do "net obligations"118 equal the difference               
between "obligations net of offsetting collections             
    and recoveries" and "offsetting receipts?" (OMB               
          Bulletin 01-09, p. 48, section 7.3)                     
7. Does the entity's Statement of Financing                    
include other nonbudgetary resources used to                   
finance activities, and do the line item amounts               
as reported on the Statement of Financing equal                
the following corresponding line item amounts                  
reported as "other financing sources" on the                   
Statement of Changes in Net Position? a. donations             
and forfeitures of property b. transfers in/out                
without reimbursement c. imputed financing from                
costs absorbed by others d. other (OMB Bulletin                
01-09, p. 48, section 7.3)                                     
8. Is "total resources used to finance activities"             
     equal to the sum of net obligations119 and net               
     other (nonbudgetary) resources used to finance               
    activities? (OMB Bulletin 01-09, p. 46, section               
                          7.2)                                    

117Offsetting receipts differ from "offsetting collections." Offsetting
collections are included in the entity's expenditure account and thus are
usually available for spending for the purposes of the account without
further action by Congress. (SFFAS 7 Implementation Guide (April 2002),
par. 23)

118Net obligations reflect obligations incurred net of offsetting
collections, recoveries, and offsetting receipts.

119One of the reasons that net obligations does not equal the amount of
the net cost of operations is that there are resources that are not
reported in the Budget of the United States Government that may finance
the net cost of operations or other activities of the agency.

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Page 174

Section VII Statement of Financing

Resources Used to Finance Items Not                                        
Part of the Net Cost of Operations (9    Yes, No, or N/A     Explanation
- 14)                                                      
    The section, "Resources Used to Finance Items Not Part of the Net Cost of
Operations," in the Statement of Financing adjusts total resources used to
          finance the activities of the entity to account for items that were
     included in net obligations and other resources, but which were not part
     of the net cost of operations. This section would include items in which
      the expense was recognized in a prior period but the budgetary resource
and obligation are recognized in the current period (e.g., upward/downward
     reestimates of subsidy expense accrued in the prior period but obligated
        in the current period). It would also include budgetary resources and
      obligations recognized in the current period that do not affect the net
         cost of operations (e.g., the acquisition of assets reflected in net
          obligations but not in net cost of operations for the period). (OMB
                                          Bulletin 01-09, p. 48, section 7.4)
9. Does the line item, "change in                          
budgetary resources obligated for                          
goods, services, and benefits ordered                      
but not yet provided (+/-),"120                            
reflect undelivered orders, or                             
adjustments thereof, that are included                     
in net obligations, but which are not                      
part of the net cost of operations?                        
(OMB Bulletin 01-09, p. 48, section                        
7.4)                                                       
     10. Does the line item, "resources                       
that fund expenses recognized in prior                     
periods,"121 reflect the obligation of                     
    resources that were part of the net                       
cost of operations in a prior period?                      
    (OMB Bulletin 01-09, p. 48, section                       
                    7.4)                                      

120This line item is used to explain the difference between the total
resources used to finance activities and the net cost of operations
because of the change in "budgetary resources obligated for goods,
services, and benefits ordered but not yet provided," i.e., "undelivered
orders." Undelivered orders are part of "obligations incurred," but they
do not affect the net cost of operations. Thus, for a transaction
involving the placing a $100 undelivered order, obligations incurred would
increase by $100 but would be shown as a negative or a reduction to total
resources used to finance activities. (SFFAS 7 Implementation Guide (April
2002), par. 53-55)

121This line item is used to explain differences in resources and net cost
of operations caused by expenses, which were accrued in previous periods
but paid in the current period. If, for example, the amount of annual
leave taken or obligated was worth $250 but the amount of annual leave
earned (i.e., expensed) for the period was $200, the difference of $50
between obligation and expense would be shown as a negative. (SFFAS 7
Implementation Guide (April 2002), par. 56-58)

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Section VII Statement of Financing

Resources Used to Finance Items Not Part of    Yes, No, or N/A Explanation 
the Net Cost of Operations (9 - 14)                            
11. Do the line items included under                           
"budgetary offsetting collections and receipts                 
that do not affect net cost of operations"                     
reflect offsetting collections and receipts122                 
that are not reported as exchange revenue in                   
the Statement of Net Cost? (OMB Bulletin                       
01-09, pp. 48 & 49, section 7.4)                               
      12. Does the line item, "resources that                     
    finance the acquisition of assets," reflect                   
budgetary resources obligated123 that are not                  
    expenses as reported on the Statement of Net                  
Cost? (OMB Bulletin 01-09, p. 49, section 7.4)                 
     13. Does the agency include under the line                   
    item, "Other resources or adjustments to net                  
     obligated resources that do not affect net                   
       cost of operations," activities124 not                     
    otherwise classified under the line items in                  
    this section of the Statement of Financing?                   
      (OMB Bulletin 01-09, p. 49, section 7.4)                    
14. Does the line item, "total resources used                  
to finance the net cost of operations,"                        
consist of the difference between the line                     
items "total resources used to finance                         
activities" and "total resources used to                       
finance items not part of the net cost of                      
operations?" (OMB Bulletin 01-09, p. 46,                       
section 7.2 & p. 48, section 7.4)                              

122Examples of offsetting collections and receipts that are not exchange
revenue are (1) collections of subsidy expenses for post -1991 credit
programs, (2) collections of exchange revenue receivable from the public,
and (3) advances (i.e., unfilled customer orders) for work not performed,
with the caveat that in most cases, orders from the public without
advances cannot be accepted. This line item is usually shown as a
positive, the opposite (i.e., negative) of what is included under the line
item, "less: spending authority from offsetting collections and
recoveries," unless there is a net decrease in unfilled customer orders.
(SFFAS 7 Implementation Guide (April 2002), par. 59-61)

123An example of this activity is the purchase of capital assets. (SFFAS 7
Implementation Guide (April 2002), par. 62)

124This activity may include noncash recoveries of prior year obligations.
Recoveries are budgetary resources that offset obligations on the
Statement of Budgetary Resources, but which are not a proprietary
financing source used to offset costs on the Statement of Net Cost.

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Section VII Statement of Financing

    Components of the Net Cost of Operations                                  
       that Will Not Require or Generate      Yes, No, or N/A   Explanation
Resources in the Current Period Resources                  
                   (15 - 24)                                  
         The section, "Components of the Net Cost of Operations that will not
Require or Generate Resources in the Current Period," identifies (1) items
      that are recognized as a component of the net cost of operations (i.e.,
           current period expenses and exchange revenues) for which budgetary
       resources (and related obligations) will not be provided (or incurred)
      until a subsequent period and (2) items (i.e., current period expenses)
that are recognized as a part of the net cost of operations for the period
         but will not generate or require the use of resources in the current
        period. (OMB Bulletin 01-09, p. 49, section 7.5 & p. 50, section 7.6)
15. Does the line item, "increase in                       
annual leave liability," include the                       
expense related to the increase125 in                      
annual leave liability for which the                       
budgetary resources will be provided in a                  
subsequent period? (OMB Bulletin 01-09, p.                 
50, section 7.5)                                           
      16. Does the line item, "increase in                    
     environmental and disposal liability,"                   
       include the expense related to the                     
     increase in environmental and disposal                   
       liability for which the budgetary                      
resources will be provided in a subsequent                 
      period? (OMB Bulletin 01-09, p. 50,                     
                  section 7.5)                                
17. Does the line item "upward/downward                    
reestimates of credit subsidy expense                      
(+/-)," include the expense recognized as                  
a result of an upward(+) or downward(-)                    
reestimate of credit program subsidy cost                  
for which budgetary resources (or                          
obligations) will be provided (or                          
incurred) in a subsequent period?126 (OMB                  
Bulletin 01-09, p. 50, section 7.5)                        

125An increase in annual leave liability has no effect on budgetary
accounts, because it is not funded on an accrual basis. It is financed
when it is taken and the amounts are paid to employees who took the leave.
Thus, budgetary resources are zero, but the net cost of operations
includes the amount of accrued leave. (SFFAS 7 Implementation Guide (April
2002), par. 40)

126The Credit Reform Act of 1990, as amended, provides that agencies will
receive subsidies to cover defaults and other situations for direct loans
and loan guarantees obligated after September 30, 1991. (SFFAS 7
Implementation Guide (April 2002), par. 66)

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Page 177

Section VII Statement of Financing

Components of the Net Cost of Operations that Will Yes, No, or             
    Not Require or Generate Resources in the Current      N/A     Explanation
               Period Resources (15 - 24)                         
18. Are these credit subsidy reestimates reflected             
as liabilities covered by budgetary resources?127              
        (OMB Bulletin 01-09, p. 50, section 7.5)                  
19. Does the line item, "increase in exchange                  
revenue receivable from the public," include                   
exchange revenue recognized as a component128 of               
the net cost of operations for the period? (OMB                
Bulletin 01-09, p. 50, section 7.5)                            
    20. Does the entity report as "other" under the               
      section "Components Requiring or Generating                 
    Resources in Future Periods," all other expenses              
and exchange revenue not specifically mentioned in             
     the preceding questions that do not require or               
generate resources in the current period but will              
do so in a subsequent period? (OMB Bulletin 01-09,             
                  p. 50, section 7.5)                             
       21. Does the line item, "depreciation and                  
amortization," reflect the current period usage of             
    assets129 or amortization of liabilities130 for               
     which budgetary resources were obligated in a                
prior period? (OMB Bulletin 01-09, p. 50, section              
                          7.6)                                    
22. Does the line item, "revaluation of assets and             
         liabilities," include gains and losses                   
recognized131 during the revaluation of assets or              
    liabilities? (OMB Bulletin 01-09, p. 50, section              
                         7.6;)                                    

127Budget authority to fund reestimates is permanent and indefinite and no
further congressional action is needed to provide the resources.

128Absent specific legislation to the contrary, public receivables do not
count as budgetary resources until they are collected. Hence, the revenue
related to accruals of those resources is not reflected in offsetting
collection activity at the time they are accrued. (SFFAS 7 Implementation
Guide (April 2002) par. 70)

129Budgetary resources are obligated when the asset is acquired, not when
it is depreciated or used up. No budgetary resources are used when an
asset is depreciated. (SFFAS Implementation Guide, par. 44)

130Budgetary resources are obligated when an allowance (i.e., liability or
contra-asset) for a subsidy is set up, and as the estimated expenses are
realized the allowance account is amortized. The budgetary accounts, which
have already recognized the obligation and offsetting collection for
subsidy expense, are not affected by the transaction. (SFFAS 7
Implementation Guide (April 2002), par. 92)

131Gains are shown as a negative; losses are shown as a positive.

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Section VII Statement of Financing

Components of the Net Cost of Operations that                              
Will Not Require or Generate Resources in the  Yes, No, or N/A Explanation
         Current Period Resources (15 - 24)                       
23. Does the entity report as "other" under                    
the section "components not requiring or                       
generating resources," all other expenses132                   
and exchange revenue not specifically                          
mentioned in the preceding questions that will                 
not require or generate resources in the                       
current or future periods? (OMB Bulletin                       
01-09, p. 50, section 7.5)                                     
24. Does the sum of the line items "total                      
resources used to finance net cost of                          
operations" and "total components of net cost                  
of operations that will not require or                         
generate resources in the current period"                      
agree with the net cost of operations as                       
reported in the Statement of Net Cost as well                  
as the Statement of Changes in Net Position?                   
(OMB Bulletin 01-09, p. 51, section 7.7)                       

  132An example of this would be default expenses of pre-credit reform (or pre
                                  1992) loans.

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                       Section VII Statement of Financing

         Disclosure Items (25 - 27)         Yes, No, or N/A     Explanation   
25. Has the entity identified and                          
explained in a note to the financial                       
statements the relationship between                        
amounts reported as "liabilities not                       
covered by budgetary resources"                            
reported on the Balance Sheet and                          
amounts reported as "components                            
requiring or generating resources in                       
future periods" on the Statement of                        
Financing? (OMB Bulletin 01-09, p. 94,                     
section 9.35)                                              
    When budget authority and other resources are allocated to another agency
     or bureau,133 the parent (transferor of the appropriation) should report
the activity in its financial statements unless the allocation transfer is
    material to the child's (recipient of the transfer) financial statements.
              If the allocation transfer is material to the child's financial
      statements, the child entity should report the activity relating to the
       allocation in all of its financial statements, except the Statement of
Budgetary Resources (SBR). In this case, the parent entity should continue
to report the appropriation and the related budgetary activity in its SBR.
       It is the responsibility of the parent to ensure that the reporting to
        Treasury, through FACTS I, is consistent with the presentation in the
              financial statements. (OMB Bulletin 01-09, p. 94, section 9.36)
26. When the child entity reports                          
material allocation transfers in its                       
Statement of Net Cost, do both the                         
parent and the child report a                              
reconciling item on their respective                       
Statements of Financing? (OMB Bulletin                     
01-09, p. 95, section 9.36)                                
27. Do both parent and child entities                      
    provide a general description of the                      
       funds transferred or received,                         
    including the nature and purpose of                       
      the transfer and any additional                         
       details deemed necessary? (OMB                         
    Bulletin 01-09, p. 95, section 9.36)                      

133See OMB Circular A-11, sections 20.4 (l) and 71.6

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                  Section VIII Statement of Custodial Activity

The 28 questions in this section are related to the Statement of Custodial
Activity.

Question Numbers

1. General 1-2

2. Sources of Collections 3-10

3. Disposition of Collections 11-15

4. Disclosures 16-19

5.	Dedicated Collections and 20-27
Other Accompanying Information

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Page 181

                  Section VIII Statement of Custodial Activity

               General Items (1 - 2)              Yes, No, or N/A Explanation 
Entities that collect nonexchange revenue for the General Fund of the
Treasury, a trust fund, or other recipient entities account for the
sources and disposition of these collections in a Statement of Custodial
Activity. (OMB Bulletin 01-09, p. 52, section 8.1)
1. If some of the nonexchange revenue is                       
transferred to others and some of the                          
nonexchange revenue is retained as a                           
reimbursement for the costs of collection, are                 
the transferred amounts reported on the                        
Statement of Custodial Activity, and are the                   
retained amounts reported on the Statement of                  
Net Cost? (OMB Bulletin 01-09, p. 52, section                  
8.1)                                                           
     2. If the entity collects exchange revenue                   
(e.g., rents and royalties) on behalf of other                 
entities and recognizes virtually no costs in                  
connection with earning that revenue, does the                 
entity account for it as a custodial activity?                 
                 (SFFAS 7, par. 45)                               

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                  Section VIII Statement of Custodial Activity

            Sources of Collections (3 - 10)           Yes, No, or Explanation 
                                                          N/A     
    3. Are the following transactions recognized as               
     taxes and other nonexchange revenues from the                
public? a. individual and corporate income taxes,              
    social insurance taxes and contributions, excise              
    taxes, estate and gift taxes, and customs duties              
    b. social insurance taxes and contributions paid              
     by federal employees c. deposits by states for               
    unemployment trust funds d. user fees and harbor              
maintenance trust fund payments e. customs service             
     fees f. deposits of earnings from the Federal                
Reserve System g. donations, except types of PP&E              
      that are expensed h. fines and penalties i.                 
    penalties due to delinquent taxes in connection               
    with custodial activity j. forfeitures (SFFAS 7,              
      par. 49; SFFAS 7, Appendix B, par. 242 -264)                
    4. Does the collecting entity measure taxes and               
    duties on a cash basis and then modify that with              
    an accrual adjustment to determine the amount of              
revenue to be recognized? (SFFAS 7, par. 49 & 52;              
        OMB Bulletin 01-09, p. 54, section 8.3)                   
    5. Except for deposits, are cash collections134               
     based on amounts actually received during the                
    fiscal period including withholdings, estimated               
      payments, final payments, and collections of                
          receivables? (SFFAS 7, par. 50 & 59)                    

134Cash collections include any amounts paid in advance of due dates
unless they are deposits. Deposits are amounts voluntarily paid to
reporting entities, such as those made to stop the accrual of interest or
those made pending settlements and judgments. Such Deposits are separately
recognized as deposit liabilities.

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Page 183

                  Section VIII Statement of Custodial Activity

            Sources of Collections (3 - 10)           Yes, No, or Explanation 
                                                          N/A     
6. Are the components of cash collections                      
classified by source and nature of collection,                 
such as by type of tax or duty? (OMB Bulletin                  
01-09, pp. 53 & 54, section 8.3)                               
    7. Are cash refunds of nonexchange revenue based              
on refunds of taxes and duties during the period?              
                   (SFFAS 7, par. 51)                             
     8. Do cash refunds of nonexchange revenue for                
     taxes and duties include refund offsets135 and               
            drawbacks?136 (SFFAS 7, par. 51)                      
    9. Are cash refunds, if material in relation to               
       gross collections, disclosed separately by                 
component in the notes to the financial statement?             
        (OMB Bulletin 01-09, p.54, section 8.3)                   
10. Are accrual adjustments,137 if material in                 
relation to gross collections, disclosed                       
separately in the notes to the financial                       
statement? (SFFAS 7, par. 52; OMB Bulletin 01-09,              
p. 54, section 8.3)                                            

135Refund offsets are amounts withheld from refunds on behalf of other
agencies and paid to such agencies.

136Drawbacks are refunds of duties paid on imported goods that are
subsequently exported or destroyed.

137Accrual adjustments, which modify the net of cash collections and
refunds to determine the amount of revenue recognized, are the net
increases or decreases during the reporting period in accounts receivable,
allowance for uncollectable accounts, and accounts payable for refunds.

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                  Section VIII Statement of Custodial Activity

        Disposition of Collections (11 - 15)      Yes, No, or N/A Explanation 
11. Do the amounts transferred to others,                      
reported in the "disposition of collections"                   
section, identify the specific agencies to                     
which collections were transferred and the                     
amounts transferred? (OMB Bulletin 01-09, p.                   
53, section 8.2 & p. 54, section 8.4)                          
     12. Does the collecting entity report the                    
change in liability for accrued and collected                  
    revenue yet to be transferred? (OMB Bulletin                  
     01-09, p. 53, section 8.2 & p. 54, section                   
                        8.4)                                      
      13. Are the amounts of refunds and other                    
      payments made reported separately in the                    
    "disposition of collections" section of the                   
Statement of Custodial Activity? (OMB Bulletin                 
     01-09, p. 53, section 8.2 & p. 54, section                   
                        8.4)                                      
14. Are collections retained by the entity                     
separately reported as exchange revenue in the                 
Statement of Net Cost and treated as a                         
disposition of collections revenue in the                      
statement of custodial activity? (OMB Bulletin                 
01-09, p. 52, section 8.1, p. 53, section 8.2.                 
& p. 54, section 8.4)                                          
15. In the Statement of Custodial Activity, do                 
      total sources of collections equal total                    
    disposition of collections (revenue) so that                  
      the net custodial activity is zero? (OMB                    
        Bulletin 01-09, p. 54, section 8.5)                       

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                  Section VIII Statement of Custodial Activity

                 Disclosures (16 - 19)                Yes, No, or Explanation 
                                                          N/A     
16. If custodial revenues are immaterial and                   
incidental to the entity's primary mission and are             
not reported separately on the Statement of                    
Custodial Activity, are the sources and amounts of             
the collections and amounts to be distributed to               
others disclosed? (OMB Bulletin 01-09, p. 52,                  
section 8.1 & p. 95, section 9.37)                             
17. Does the collecting entity disclose and                    
explain the following information? a. the basis of             
accounting when application of the general rule                
for recognizing nonexchange revenue (i.e.,                     
specifically identifiable, legally enforceable,                
and reasonably estimable) results in a modified                
cash basis of accounting b. the specific potential             
accruals that are not made as a result of using                
the modified cash basis accounting c. the                      
practical and inherent limitations affecting the               
accrual of taxes and duties d. the use of                      
accrual-based accounting, if applicable (SFFAS 7,              
par.48 & 64)                                                   
18. Do entities that collect taxes and duties                  
disclose the following information in a note or                
narrative? a. basis of accounting b. factors                   
affecting the collectibility and timing of taxes               
and other nonexchange revenues c. cash collections             
and refunds by tax year and type of tax for the                
reporting period (SFFAS 7, par. 65.1 & 65.3; OMB               
Bulletin 01-09, p. 95, section 9.38)                           
     19. If trust fund revenues are not recorded in               
accordance with applicable law, do the collecting              
      and recipient entities disclose the reasons?                
                   (SFFAS 7, par. 66)                             

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                  Section VIII Statement of Custodial Activity

        Dedicated Collections and Other       Yes, No, or N/A   Explanation   
       Accompanying Information (20 - 27)                     
Dedicated collections are funds held with the expectation that they will
be held for and applied to the purposes for which the funds were
dedicated. Such funds include all funds within the budget classified as
trust funds, those funds within the budget that are classified as "special
funds" but that are similar in nature to trust funds, and those funds
within the federal universe (inside or outside the budget) that are
fiduciary in nature. (SFFAS 7, par. 83; OMB Bulletin 01-09, p. 95, section
9.39)                                      
     20. Does the management of a reporting                   
    entity identify, track, and disclose the                  
     receipts and expenditures of dedicated                   
       trust funds, "special funds," and                      
    fiduciary or deposit funds (both inside                   
    and outside the budget) for which it is                   
      responsible? (SFFAS 7, par. 83; OMB                     
Bulletin 01-09, pp. 95 & 96, section 9.39)                 
      21. Does management provide separate                    
       financial information about these                      
    dedicated funds if they are material to                   
the reporting entity, the beneficiary, or                  
    the contributors? (SFFAS 7, par. 84; OMB                  
Bulletin 01-09, pp. 95 & 96, section 9.39)                 

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                  Section VIII Statement of Custodial Activity

      Dedicated Collections and Other Accompanying    Yes, No, or Explanation 
                 Information (20 - 27)                    N/A     
22. Is the following information reported for                  
individual funds that account for dedicated                    
collections? a. a description of each fund's                   
purpose, how the administrative entity accounts                
for and reports the fund, and its authority to use             
those collections b. the sources of revenue or                 
other financing for the period and an explanation              
of the extent to which they are inflows of                     
resources to the government or the result of                   
intragovernmental flows c. condensed information               
about assets and liabilities showing investments               
in Treasury securities, other assets, liabilities              
due and payable to beneficiaries, other                        
liabilities, and fund balance d. condensed                     
information on net cost and changes to fund                    
balance showing revenues by type (exchange or                  
nonexchange), program expenses, other expenses,                
other financing sources, and other changes in fund             
balance e. the amounts of any revenues-other                   
financing sources or costs attributable to the                 
fund under accounting standards-that are not                   
legally allowable as credits or charges to the                 
fund (SFFAS 7, par. 85; OMB Bulletin 01-09, pp. 95             
& 96, section 9.39)                                            
23. If revenues, other financing sources, or costs             
    (such as item "e" of the previous question) are               
     associated with but not legally allowable to a               
    fund, does the larger reporting entity of which               
the fund is a component recognize them? (SFFAS 7,              
par. 86; OMB Bulletin 01-09, p. 96, section 9.39)              
        24. If more than one reporting entity is                  
    responsible for carrying out a program financed               
    with dedicated collections, does the entity with              
         the largest share of the activity take                   
    responsibility for reporting all revenues, other              
financing sources, assets, liabilities, and costs              
            of the fund? (SFFAS 7, par. 87)                       

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                  Section VIII Statement of Custodial Activity

    Dedicated Collections and Other Accompanying  Yes, No, or N/A Explanation 
               Information (20 - 27)                              
25. If information on actual collections is                    
not currently available from the collecting                    
entity, do the trust funds that are legally                    
entitled to receive only excise taxes that are                 
actually collected by the collecting entity                    
recognize revenue from excise taxes on the                     
basis of assessments in lieu of excise taxes                   
actually collected? (SFFAS 7, par. 60.1)                       
      26. Is the amount of revenue accrued and                    
    recognized by the social security trust fund                  
based on the best available information (i.e.,                 
    on the basis of the higher of the amount of                   
Internal Revenue Service (IRS) assessments or                  
the amounts actually reported by employers to                  
       Social Security)? (SFFAS 7, par. 60.2)                     

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                  Section VIII Statement of Custodial Activity

      Dedicated Collections and Other Accompanying    Yes, No, or Explanation 
                 Information (20 - 27)                    N/A     
27. Does the collecting entity report the                      
following as other accompanying information? a.                
income tax burden borne by different classes of                
taxpayers and the effects of tax rates,                        
deductions, credits, etc. (required of IRS) b.                 
available information on the size of the tax gap,              
including i. explicit definitions of the estimated             
amounts reported (e.g., whether the tax gap                    
includes estimates on illegally earned income) ii.             
appropriate explanations of the limited                        
reliability of the estimates iii. cross references             
to portions of the tax gap due from identified                 
noncompliant taxpayers and importers c.                        
appropriate explanations and qualifications, if                
information about tax expenditures related to                  
entity programs is present d. a description of the             
basis for the estimates and appropriate cautionary             
language about reliability, if information about               
estimated directed flows of resources related to               
an entity's programs is presented (SFFAS 7, par.               
69.1 -69.4; OMB Bulletin 01-09, p. 114 section                 
12.3 & p. 115, section 12.4)                                   

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Reporting 1050 - CFO Act Checklist

                    Section IX Notes to Financial Statements

The five questions in this section concern the disclosure of significant
accounting policies.

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Reporting 1050 - CFO Act Checklist

                    Section IX Notes to Financial Statements

                                                      Yes, No, Or Explanation 
          Note to Financial Statements (1 - 5)            N/A     
      1. Is a description of the reporting entity                 
       presented in the disclosure of significant                 
accounting policies, along with identification of              
      the entity's major components? (OMB Bulletin                
               01-09, p. 55, section 9.1)                         
        2. Does the entity identify and describe                  
    accounting principles it follows, and methods of              
       applying those principles in a note to the                 
financial statements? (OMB Bulletin 01-09, p. 55,              
                      section 9.1)                                
3. Does the entity's disclosure of its accounting              
policies include its rationale for the valuation,              
         recognition, and allocation of assets,                   
       liabilities, expenses, revenues, and other                 
     financing sources? (OMB Bulletin 01-09, p. 55,               
                      section 9.1)                                
      4. Does the entity disclose any significant                 
    changes in its composition or manner in which it              
     aggregates information for financial reporting               
purposes? (OMB Bulletin 01-09, p. 55, section 9.1)             
5. If changes in the composition of the reporting              
     entity or manner in which the reporting entity               
     aggregates information for financial reporting               
     purposes, in effect, result in a new reporting               
       entity, has the entity restated financial                  
     statements for all prior periods presented to                
    correspond to the changes? (OMB Bulletin 01-09,               
               pp. 55 & 56, section 9.1)                          

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Section X Supplementary Information

The questions related to the Supplementary Information are organized in
the following nine categories. Question Numbers

1. 	Required Supplementary Stewardship Information: Property, Plant, &
Equipment 1-14

2. 	Required Supplementary Stewardship Information: Stewardship
Investments 15-42

3. 	Required Supplementary Information: Risk-Assumed Information 43

4. 	Required Supplementary Information: Custodial Activity 44-45

5. 	Required Supplementary Information: Segment Information 46-47

6. 	Required Supplementary Information Management's Discussion and
Analysis 48-61

7. 	Required Supplementary Information: Deferred Maintenance 62-65

8. 	Required Supplementary Information: Intragovernmental Amounts 66-78

9. 	Required Supplementary Stewardship Information: Social Insurance138
79-102

138For periods beginning after September 30, 2004, the information
required by paragraphs 27(3) and 32(3) of SFFAS 17 shall be presented as a
basic financial statement rather than as RSSI. Other information required
by SFFAS 17 shall be presented as RSI, except to the extent that the
preparer elects to include some or all of that information in notes that
are presented as an integral part of the basic financial statements (SFFAS
25, par. 6 & 7)

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Page 193

                      Section X Supplementary Information

     Required Supplementary Stewardship                                       
     Information: Property, Plant, and      Yes, No, or N/A     Explanation
             Equipment (1 - 14)                               
Stewardship reporting requires the federal government to report on its
stewardship over certain resources entrusted to it and certain
responsibilities assumed by it that cannot be measured in traditional
financial reports. These resources and responsibilities do not meet the
criteria for assets and liabilities that are required to be reported in
the financial statements, but are important to understanding the
operations and financial condition of the federal government at the date
of the financial statements and in subsequent periods. Stewardship PP&E
consists of items whose physical properties resemble those of general PP&E
traditionally capitalized in financial statements. However, because of the
nature of these assets, valuation may be difficult, and matching costs
with specific periods would not be meaningful. Stewardship PP&E includes:
-heritage assets, such as federal monuments and memorials, that are of
historical, natural, cultural, educational, architectural, or artistic
significance and -stewardship land, such as national forests and parks
that have not been acquired for or in connection with general PP&E. (SFFAS
8, par.7-11 & 17; OMB Bulletin 01-09, p. 97 section 10.1 and p. 98,
section, 10.2)                         
      1. Except for multi-use heritage                        
assets in which the predominant use of                     
     the asset is in general government                       
      operations, are heritage assets                         
     reported as Required Supplementary                       
       Stewardship Information (RSSI)                         
accompanying the financial statements                      
    rather than as asset amounts on the                       
    balance sheet? (SFFAS 8, par.43; OMB                      
    Bulletin 01-09, p. 23, section 3.3 &                      
           p. 98, section 10.2A)                              
2. Are heritage assets (including                          
multiuse heritage assets) reported in                      
RSSI in terms of physical units rather                     
than in terms of cost, fair value, or                      
other monetary values? (SFFAS 8, par.                      
46; SFFAS 16, par.9; OMB Bulletin                          
01-09, p. 23, section 3.3 & p. 98,                         
section 10.2A)                                             

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Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
        Property, Plant, and Equipment (1 - 14)           N/A     
3. Does the reporting entity provide relevant RSSI             
in the financial statements, such as the following             
information about its heritage assets? a. a                    
description of each major category of heritage                 
asset and whether it is collectible or                         
noncollectible b. a description of the methods of              
acquisition and withdrawal of heritage assets c.               
an accounting for the physical units by major                  
category including: i. beginning balances ii.                  
additions iii. withdrawals iv. ending balances d.              
a description of the condition of the assets                   
unless it is already reported in deferred                      
maintenance information included elsewhere in the              
report, in which case a reference to the                       
information will suffice e. a reference to                     
deferred maintenance information, if deferred                  
maintenance is reported for the assets (SFFAS 8,               
par. 50, SFFAS 14, par. 10-11; OMB Bulletin 01-09,             
pp. 99-100, section 10.2D)                                     
4. Are federal land139 and land rights owned by                
the federal government and not acquired for or in              
connection with other general PP&E reported as                 
stewardship land in the RSSI of the financial                  
statements? (SFFAS 6, par. 66-68, SFFAS 8, par.                
74)                                                            
5. Is stewardship land quantified and reported in              
terms of physical units (e.g., acres) in the RSSI              
rather than in monetary values? (SFFAS 8, par. 75;             
       OMB Bulletin 01-09, p. 99, section 10.2C)                  

139Land is defined as the solid part of the surface of the earth. Excluded
from the definition of land are materials beneath the surface (i.e.,
depletable resources such as mineral deposits and petroleum), the space
above the surface (i.e., renewable resources such as timber), and the
outer-continental shelf resources.

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Page 195

                      Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
        Property, Plant, and Equipment (1 - 14)           N/A     
6. Is the cost of a structure acquired with                    
stewardship land that is to be used in operations              
included in the acquisition cost of the land if                
one of the following conditions applies? a. the                
structure's value is insignificant compared to the             
value of the land b. the structure has little or               
no inherent value c. the structure is merely a                 
byproduct of the acquisition of the land (SFFAS 6,             
par. 70)                                                       
7. If a significant structure acquired with                    
stewardship land has an operating use (e.g., a                 
recently constructed hotel or employee-housing                 
block), is its cost segregated from the cost of                
the stewardship land acquired and capitalized as               
general PP&E? (SFFAS 6, par. 70; SFFAS 8, par. 78)             
8. If the fair value of stewardship land acquired              
through donation or devise is known and material,              
is it disclosed in the notes to the financial                  
statements? (SFFAS 6, par. 71; SFFAS 8, par. 79)               
9. If the fair value of the stewardship land                   
acquired through donation or devise is not                     
estimable, is information as to the type and                   
quantity of the assets disclosed? (SFFAS 6, par.               
71; SFFAS 8, par. 79)                                          
    10. Is the cost of stewardship land transferred               
    from another federal entity recorded at the book              
     value of the land on the transferring entity's               
               books? (SFFAS 6, par. 72)                          
      11. If stewardship land is transferred from                 
    another federal entity, and the receiving entity              
     does not know its book value, is the transfer                
disclosed in the notes if material? (SFFAS 6, par.             
                          72)                                     
       12. Are all transfers of stewardship land                  
disclosed in the notes if material? (SFFAS 6, par.             
                          72)                                     

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Section X Supplementary Information

         Required Supplementary Stewardship                                   
Information: Property, Plant, and Equipment (1 Yes, No, or N/A Explanation
                       - 14)                                      
13. Is acquisition cost of stewardship land                    
recorded in the following manner? a.                           
recognized as a cost in the period incurred b.                 
include all costs incurred to bring the                        
stewardship land to its intended use, current                  
condition, and location (including razing a                    
building) c. disclosed140 as "cost of                          
stewardship land" (SFFAS 6, par. 69 & 73,                      
SFFAS 8, par. 80)                                              
14. With regard to stewardship land, does the                  
      reporting entity include in its RSSI the                    
    following information? a. a description, by                   
    principal organization, significant holdings                  
      of stewardship land by category of major                    
     use141 b. a description of the methods of                    
acquisition and withdrawal of stewardship land                 
    c. an accounting for physical units by major                  
    category including: i. beginning balance ii.                  
additions iii. withdrawals iv. ending balance                  
     d. the condition of the stewardship land,                    
unless it is already reported elsewhere in the                 
      report (in which case a reference to the                    
    information will suffice) e. a reference to                   
       the applicable information if deferred                     
maintenance is reported for the assets. (SFFAS                 
6, par. 69 & 73; SFFAS 8, par. 80 & 81; SFFAS                  
14, par. 10 & 11; OMB Bulletin 01-09, pp. 99 &                 
                100, section 10.2D)                               

140Disclosure shall be either on the face of the statement of net cost or
in footnotes, depending on the materiality of the amounts and the need to
distinguish such amounts from other costs relating to measures of outputs
or outcomes of the reporting entity.

141Where parcels of stewardship land have more than one use, the
predominant use of the land shall be considered the major use.

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Section X Supplementary Information

     Required Supplementary Stewardship                                       
    Information: Stewardship Investments    Yes, No, or N/A     Explanation
                 (15 - 42)                                    
Stewardship investments are substantial investments made by the federal
government for the benefit of the nation. When incurred, they are treated
as expenses in calculating net cost, but they are also separately reported
as RSSI to highlight the extent of investments that are made for long-term
benefit. (SFFAS 8, par. 12) Stewardship investments include: -nonfederal
physical property: federally financed (but not federally owned) purchases,
construction, or major renovation of physical property owned by state and
local governments, including major additions, alterations, and
replacements, the purchase of major equipment; and the purchase or
improvement of other physical assets.142 -human capital: expenses incurred
for programs for education and training of the public143 that are intended
to increase or maintain national productive capacity and that produce
outputs and outcomes that provide evidence of maintaining or increasing
national productive capacity. -research & development: expenses incurred
to support the search for new or refined knowledge and ideas and for the
application or use of such knowledge and ideas for the development of new
or improved products and processes with the expectation of maintaining or
increasing national productive capacity or yielding other future benefits.
(SFFAS 8, par. 12, 83, 89, 90, & 96; OMB Bulletin 01-09, p. 100, section
10.3)                                  
15. Are nonfederal physical property                       
investments reported in nominal                            
dollars on the basis of "expenses                          
incurred" and measured on the same                         
basis of accounting used for financial                     
statement purposes, including                              
appropriate accrual adjustments,                           
general and administrative overhead,                       
and costs of facilities? (SFFAS 8,                         
par. 84)                                                   
16. Are investments in nonfederal                          
physical property and related cash                         
grants recognized and reported as                          
expenses in arriving at the net cost                       
of operations? (SFFAS 8, par. 85; OMB                      
Bulletin 01-09, p. 100, section 10.3A)                     

142Grants for maintenance and operations are not considered investments in
nonfederal physical property. 143The definition excludes education and
training expensed for federal civilian and military personnel.

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                      Section X Supplementary Information

         Required Supplementary Stewardship       Yes, No, or N/A Explanation 
Information: Stewardship Investments (15 - 42)                 
17. Are expenses incurred for nonfederal                       
physical property program costs, contracts, or                 
grants with split purposes144 reported in RSSI                 
on the basis of a logical allocation? (SFFAS                   
8, par. 86)                                                    
    18. If an allocation of such program costs,                   
      etc. is not feasible, is the investment                     
      reported on the basis of the predominant                    
    application of the expenses incurred? (SFFAS                  
                    8, par. 86)                                   
19. Does the reporting entity provide in its                   
RSSI a dollar amount and a narrative                           
description of its investment in nonfederal                    
physical property for the year being reported                  
on as well as at least the preceding 4 years?                  
(SFFAS 8, par. 87; OMB Bulletin 01-09, p. 100,                 
section 10.3A & p. 102, section 10.3D)                         
20. Is expense or outlay data for investments                  
in nonfederal physical property reported at a                  
meaningful category or level (e.g., by major                   
program or department)? (SFFAS 8, par. 87; OMB                 
Bulletin 01-09, p. 102, section 10.3D)                         
21. Does the reporting entity also include in                  
its RSSI a description of federally owned                      
physical property transferred to state and                     
local governments for the year being reported                  
on as well as at least the preceding 4 years?                  
(SFFAS 8, par. 87; OMB Bulletin 01-09, p. 102,                 
section 10.3D)                                                 
    22. If expense data for the purchase of PP&E                  
    for state and local governments for the year                  
     being reported on and for the preceding 4                    
      years are not available, does the entity                    
    report outlay data, if available? (SFFAS 8,                   
    par. 87; OMB Bulletin 01-09, p. 102, section                  
                       10.3D)                                     

144An example of an investment with a split purpose is a grant issued to a
state to construct segments of the National Highway System and to conduct
highway research.

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Page 199

                      Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
           Stewardship Investments (15 - 42)              N/A     
23. If neither historical expense nor outlay data              
are available ion stewardship investments for the              
year being reported on and the preceding 4 years,              
does the entity report expense data for the                    
current reporting year and such other years, as                
available? (SFFAS 8, par. 87; OMB Bulletin 01-09,              
p. 102, section 10.3D)                                         
    24. Are investments in human capital reported in              
       nominal dollars on the basis of "expenses                  
      incurred" and measured on the same basis of                 
accounting used for financial statement purposes,              
including appropriate accrual adjustments, general             
       and administrative overhead, and costs of                  
             facilities? (SFFAS 8, par. 91)                       
25. Are expenses incurred for human capital                    
program costs, contracts, or grants with split                 
purposes145 reported in RSSI on the basis of a                 
logical allocation? (SFFAS 8, par. 92)                         
    26. If an allocation of such program costs, etc.              
is not feasible, is the investment reported on the             
      basis of the predominant application of the                 
         expenses incurred? (SFFAS 8, par. 92)                    
27. Does the entity link its investments in human              
capital to outcomes that can be described in                   
financial, economic, or quantitative terms? (SFFAS             
8, par. 93)                                                    
28. If outcome data are not available, does the                
reporting entity report output data that best                  
provide indications of the intended program                    
outcomes? (SFFAS 8, par. 93)                                   
29. Does the reporting entity include in its RSSI              
the dollar amount and a narrative description of               
its investment in human capital for the year being             
reported on as well as the preceding 4 years?                  
(SFFAS 8, par. 94; OMB Bulletin 01-09, p. 101,                 
section 10.3B)                                                 

145An example of an investment with a split purpose is a grant issued to a
       teaching hospital for both medical education and medical research.

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                      Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
           Stewardship Investments (15 - 42)              N/A     
30. If expense data for the investments in human               
capital for the year being reported and for the                
preceding 4 years are not available, does the                  
entity report outlay data, if available? (SFFAS 8,             
par. 94; OMB Bulletin 01-09, p. 102, section                   
10.3D)                                                         
31. If neither historical expense nor outlay data              
for the investments in human capital are available             
for the year being reported on and the preceding 4             
years, does the entity report expense data for the             
current reporting year and such other years, as                
available? (SFFAS 8, par. 94; OMB Bulletin 01-09,              
p. 102, section 10.3D)                                         
32. Is expense or outlay data for investments in               
human capital reported at a meaningful category or             
level (e.g., by major program or department)?                  
(SFFAS 8, par. 94)                                             
33. Is the investment in research and development              
reported in nominal dollars on the basis of                    
"expenses incurred" and measured on the same basis             
of accounting used for financial statement                     
purposes, including appropriate accrual                        
adjustments, general and administrative overhead,              
and costs of facilities? (SFFAS 8, par. 97)                    
       34. Are expenses incurred for research and                 
    development program costs, contracts, or grants               
     with split purposes146 reported in RSSI on the               
basis of a logical allocation? (SFFAS 8, par. 98)              
    35. If an allocation of such program costs, etc.              
is not feasible, is the investment reported on the             
      basis of the predominant application of the                 
         expenses incurred? (SFFAS 8, par. 98)                    

146An example of an investment with a split purpose is a grant issued to a
teaching hospital to perform both medical education and medical research.

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Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
           Stewardship Investments (15 - 42)              N/A     
36. Does the entity link its investments in                    
research and development to program outcome data               
via a narrative discussion of the major results                
achieved by the program during the year, along the             
following lines? a. basic research, which refers               
to an identification of any major new discoveries              
that were made during the year b. applied                      
research, which refers to an identification of any             
major new applications that were developed during              
the year c. development, which refers to the                   
progress of major developmental projects including             
the results with respect to projects completed or              
otherwise terminated during the year and the                   
status of projects that will continue (SFFAS 8,                
par. 99)                                                       
37. If outcome data are not available, does the                
reporting entity use output data147 that best                  
provide indications of the intended program                    
outcomes? (SFFAS 8, par. 99)                                   
38. Does the reporting entity include in its RSSI              
the dollar amount and a narrative description of               
its investment in major research and development               
programs for the year being reported on as well as             
the preceding 4 years? (SFFAS 8, par. 100; OMB                 
Bulletin 01-09, p. 101, section 10.3C & p. 102,                
section 10.3D)                                                 
       39. If expense data for the investments in                 
      research and development for the year being                 
     reported and for the preceding 4 years are not               
available, does the entity report outlay data, if              
available? (SFFAS 8, par. 100; OMB Bulletin 01-09,             
                 p. 102, section 10.3D)                           

147In research and development programs, output data might consist of a
number of new projects initiated, or the number of projects continued,
completed, or terminated. It also might consist of quantitative measures
such as publication counts, citation counts, patent counts, or scientific
and engineering personnel funded.

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                      Section X Supplementary Information

    Required Supplementary Stewardship Information:   Yes, No, or Explanation 
           Stewardship Investments (15 - 42)              N/A     
40. If neither historical expense nor outlay data              
    are available for the year being reported on and              
     the preceding 4 years, does the entity report                
    expense data for the current year and such other              
      years as available? (SFFAS 8, par. 100; OMB                 
         Bulletin 01-09, p. 102, section 10.3D)                   
    41. Is expense or outlay data for investments in              
research and development reported at a meaningful              
      category or level (e.g., by major program or                
     department)? (SFFAS 8, par. 100; OMB Bulletin                
             01-09, p. 102, section 10.3D)                        
42. Does the entity report in its RSSI the amounts             
    of significant contributions from state, local,               
    private, and other sources to its investments in              
    nonfederal physical property, human capital, and              
    research and development?148 (SFFAS 8, par. 88,               
                       95, & 101)                                 

148This reporting is encouraged, but is not required.

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                      Section X Supplementary Information

        Required Supplementary Information:                       Explanation 
           Risk-Assumed Information (43)          Yes, No, or N/A 
     Risk-assumed information is generally measured by the present value of
      unpaid expected losses net of associated premiums based on the risk
    inherent in the insurance or guarantee coverage in force. (SFFAS 5, par.
              105 & 106; OMB Bulletin 01-09, p.103, section 10.4A)
      43. Does the entity include as Required                     
    Supplementary Information (RSI) the current                   
amount and periodic changes of "risk assumed"                  
arising from insurance and guarantee programs?                 
    (SFFAS 5, par. 105, 106, 110; SFFAS 25, par.                  
2; OMB Bulletin 01-09, p. 103, section 10.4A)                  

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                      Section X Supplementary Information

     Required Supplementary Information: Custodial    Yes, No, or Explanation 
                   Activity (44 - 45)                     N/A     
44. Do entities that collect taxes and duties                  
provide the following supplementary information                
relating to their potential revenue and custodial              
responsibilities? a. the estimated realizable                  
value, as of the end of the reporting period, of               
compliance assessments and, if reasonably                      
estimable, pre-assessment work in process, based               
on management's best estimate that is                          
appropriately identified as to their reliability               
b. if reasonably estimable, other claims for                   
refunds not yet accrued but likely to be paid when             
administrative action is complete, based on                    
management's best estimates c. amount of                       
assessments defined as written-off (i.e., no                   
further collection potential) that continues to be             
statutorily collectable d. amounts by which trust              
funds may be overfunded or underfunded in                      
comparison with the requirements of the law, if                
reasonably estimable (SFFAS 7, par. 67.1-67.4; OMB             
Bulletin 01-09, pp.112-113, section 11.5)                      
45. If the entity receiving funds from the                     
collecting entity is itself a trust fund, does it              
provide as supplementary information amounts by                
which related trust funds may be overfunded or                 
underfunded in comparison with the requirements of             
the law, if reasonably estimable? (SFFAS 7, par.               
67.4, 68; OMB Bulletin 01-09, p. 113, section                  
11.5)                                                          

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                      Section X Supplementary Information

      Required Supplementary Information: Segment     Yes, No, or Explanation 
                 Information (46 - 47)                    N/A     
46. Do all franchise and other intragovernmental               
support revolving funds report the following                   
supplementary information? a. a brief description              
of the services provided by the fund and the                   
identity of the fund's major customers (i.e.,                  
organizations that account for more than 15                    
percent of the fund's revenues) b. a summary for               
the reporting period, by product or line of                    
business, including the following items i. the                 
full cost of goods and services provided ii. the               
related exchange revenues iii. the excess of full              
costs over exchange revenues (OMB Bulletin 01-09,              
p. 113, section 11.6)                                          
47. If a franchise fund or other intragovernmental             
support revolving fund is not separately reported              
     on the entity's principal statements, does the               
      entity report as supplementary information a                
summary of the fund's assets, liabilities, and net             
    position that includes the following items as of              
    the reporting date? a. fund balance b. accounts               
    receivable c. property, plant, and equipment d.               
    other assets e. liabilities due and payable for               
    goods and services received f. deferred revenues              
     g. other liabilities h. cumulative results of                
    operations (OMB Bulletin 01-09, p. 113, section               
                         11.6)                                    

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                      Section X Supplementary Information

    Required Supplementary Information: Management's  Yes, No, or Explanation 
           Discussion and Analysis (48 - 61)              N/A     
      48. Does the entity include as RSI a section                
     devoted to management discussion and analysis                
     (MD&A) of the financial statements and related               
information? (SFFAS 15, par. 1; SFFAC 3, par. 1 &              
      2; OMB Bulletin 01-09, p. 105, section 11.1)                
49. In general, does the MD&A provide a clear,                 
concise, and balanced description of the reporting             
entity and its mission, activities, program and                
financial performance, systems, controls, legal                
compliance, financial position, and financial                  
condition? (SFFAS 15, par. 1; SFFAC 3, par. 1; OMB             
Bulletin 01-09, p. 105, section 11.1)                          
50. Does the MD&A, at a minimum, contain sections              
that address the following items concerning the                
entity? a. mission and organizational structure b.             
performance goals, objectives, and results c.                  
financial statements d. systems, controls, and                 
legal compliance e. forward-looking information,               
either as a separate section of MD&A or                        
incorporated with the sections listed above f.                 
important problems that need to be addressed and               
action taken or planned, either as a separate                  
section of the MD&A or incorporated with the                   
sections listed above (SFFAS 15, par. 2-4; OMB                 
Bulletin 01-09, pp. 105 & 106, section 11.1A)                  

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                      Section X Supplementary Information

    Required Supplementary Information: Management's  Yes, No, or Explanation 
           Discussion and Analysis (48 - 61)              N/A     
       51. Does the MD&A limit itself to the most                 
    important matters that could, for example, have               
      the following impact? a. lead to significant                
     actions or proposals by top management of the                
reporting unit b. be significant to the managing,              
budgeting, and oversight functions of Congress and             
     the administration c. significantly affect the               
     judgment of citizens about the efficiency and                
    effectiveness of their federal government (SFFAS              
                    15, par. 5 & 6)                               
52. Does the MD&A section on the entity's mission              
and organizational structure contain a brief                   
description of the mission(s) of the entity and                
its related organizational structure, that is                  
consistent with the entity's strategic plan? (OMB              
Bulletin 01-09, p. 106, section 11.1B)                         
53. Are the entity's programs and financial                    
results expressed in terms of objective and                    
relevant measures that disclose the extent to                  
which its programs are achieving their intended                
objectives? (OMB Bulletin 01-09, p. 106, section               
11.1C)                                                         
54. Has the entity attempted to develop and report             
objective measures that provide information about              
the cost effectiveness of programs? (OMB Bulletin              
01-09, pp. 106 & 107, section 11.1C)                           
55. Are the performance measures presented in the              
MD&A consistent with the measures previously                   
included in the budget and planning documents?                 
(OMB Bulletin 01-09, p. 107, section 11.1C)                    
56. Does the entity explain what needs to be done              
and what is planned to improve financial or                    
program performance? (OMB Bulletin 01-09, p. 107,              
section 11.1C)                                                 

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                      Section X Supplementary Information

    Required Supplementary Information: Management's  Yes, No, or Explanation 
           Discussion and Analysis (48 - 61)              N/A     
57. Does the entity's discussion of performance                
goals, objectives, and results indicate the extent             
to which its programs are achieving their intended             
goals and objectives, and are these clearly linked             
to cost categories (responsibility segments)                   
featured in the Statement of Net Cost? (OMB                    
Bulletin 01-09, p. 106, section 11.1C)                         
58. Does the MD&A section on the entity's                      
performance goals, objectives, and results also                
provide the following information? a. a discussion             
of the strategies and resources the agency uses to             
achieve its performance goals b. a clear picture               
of planned and actual performance c. an                        
explanation of the procedures that management has              
designed and followed to provide reasonable                    
assurance that reported performance information is             
relevant and reliable d. an explanation of                     
performance trends e. an evaluation of the                     
significance of underlying factors that may have               
affected the reported performance (OMB Bulletin                
01-09, p. 106, section 11.1C)                                  
     59. In reporting on the status of systems and                
internal controls that support preparation of the              
financial statements, performance information, and             
    compliance with applicable laws, does the entity              
    describe material problems revealed by audits or              
        otherwise known to management as well as                  
corrective actions taken or planned? (OMB Bulletin             
             01-09, p. 107, section 11.1E)                        

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                      Section X Supplementary Information

    Required Supplementary Information: Management's  Yes, No, or Explanation 
           Discussion and Analysis (48 - 61)              N/A     
60. Does the entity's discussion of the possible               
future effects of existing events and conditions               
include at least the following information? a.                 
demographic characteristics b. claims c. deferred              
maintenance d. commitments e. major unfunded                   
liabilities (OMB Bulletin 01-09, p. 108, section               
11.1F)                                                         
61. Does the entity note the following in the                  
section on limitations of the Financial                        
Statements? a. the principal financial statements              
have been prepared to report the financial                     
position and results of operations of the entity,              
pursuant to the requirements of 31 U.S.C. 3515(b)              
b. while the statements have been prepared from                
the books and records of the entity in accordance              
GAAP for federal entities and the formats                      
prescribed by OMB, the statements are in addition              
to the financial reports used to monitor and                   
control budgetary resources which are prepared                 
from the same books and records c. the statements              
should be read with the realization that they are              
for a component of the U.S. government (OMB                    
Bulletin 01-09, p. 108, section 11.1G)                         

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                      Section X Supplementary Information

       Required Supplementary Information     Yes, No, or N/A   Explanation   
         Deferred Maintenance (62 -65)                        
      Maintenance is the act of keeping fixed assets in acceptable condition.
     Maintenance includes preventive maintenance, normal repairs, replacement
           of parts and structural components, and other activities needed to
preserve the asset so that it continues to provide acceptable services and
         achieves its expected life. Maintenance excludes activities aimed at
        expanding the capacity of an asset or otherwise upgrading it to serve
    needs different from, or significantly greater than, originally intended.
    Deferred maintenance is maintenance that was not performed when it should
        have been, or was scheduled to be, and that, therefore, is put off or
                         delayed for a future period. (SFFAS 6, par. 77 & 78)
62. Does the entity report under required                  
supplementary information the following                    
information for each major category of its                 
PP&E (i.e., general PP&E, heritage assets,                 
and stewardship land)? a. the identity                     
(e.g., building, equipment, land) of each                  
major class of asset for which maintenance                 
was deferred b. the method of measuring                    
deferred maintenance (SFFAS 6, par. 83;                    
SFFAS 14, par. 1; OMB Bulletin 01-09, pp.                  
108-109, section 11.2)                                     

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                      Section X Supplementary Information

Required Supplementary Information Deferred   Yes, No, or    Explanation   
               Maintenance (62 -65)                  N/A       
    Amounts reported for deferred maintenance may be measured using condition
        assessment surveys or life-cycle cost forecasts. Condition assessment
    surveys are periodic inspections of PP&E, based on generally accepted and
      consistently applied methods, to determine PP&E's current condition and
           the estimated cost to correct any deficiencies. (SFFAS 6, par. 81)
           Life-cycle costing is an acquisition or procurement technique that
         considers operating, maintenance, and other costs in addition to the
                               acquisition cost of assets. (SFFAS 6, par. 82)
      63. If the condition assessment survey                   
        method is used to measure deferred                     
    maintenance, is the following information                  
    presented for each major class of PP&E in                  
supplementary information? a. a description                 
of requirements or standards for acceptable                 
    operating condition b. any changes in the                  
condition requirements or standards c. asset                
condition and a range estimate of the dollar                
amount of maintenance needed to return it to                
its acceptable operating condition (SFFAS 6,                
                     par. 83)                                  

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                      Section X Supplementary Information

    Required Supplementary Information Deferred   Yes, No, or N/A Explanation 
                Maintenance (62 -65)                              
64. If the total life cycle cost method is                     
used to measure deferred maintenance, is the                   
following information presented for each major                 
class of PP&E? a. the original date of the                     
maintenance forecast and an explanation for                    
any changes to the forecast b. prior-year                      
balance of the cumulative deferred maintenance                 
amount c. the dollar amount of maintenance                     
that was defined by the professionals who                      
designed, built, or managed the PP&E as                        
required maintenance for the reporting period                  
d. the dollar amount of maintenance actually                   
performed during the period e. the difference                  
between the forecast and actual maintenance f.                 
any adjustments to the scheduled amounts                       
deemed necessary by the managers of the PP&E                   
g. the ending cumulative balance for the                       
reporting period for each major class of asset                 
experiencing deferred maintenance (SFFAS 6,                    
par. 83)                                                       
65. If management elects to break out deferred                 
maintenance by critical and noncritical                        
amounts needed to bring each class of asset to                 
its acceptable operating condition, does it                    
also include its definition of these                           
categories? (SFFAS 6, par. 84)                                 

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                      Section X Supplementary Information

          Required Supplementary Information:        Yes, No, or  Explanation 
          Intragovernmental Amounts (66 - 78)            N/A      
Intragovernmental amounts represent transactions between federal entities
included in the Financial Report of the United States Government. These
transactions include activities with federal CFO Act and non-CFO Act
entities as identified in the Treasury Financial Manual. (OMB Bulletin
01-09, p.109, section 11.3)                       
66. Does the entity report, as required                        
supplementary information and intragovernmental                
amounts, the following items? a. assets b.                     
liabilities c. nonexchange revenue d. for certain              
reporting entities, earned revenue from trade                  
(buy/sell) transactions along with the gross cost              
to generate such revenue (OMB Bulletin 01-09, p.               
109, section 11.3)                                             
67. Does the entity report intragovernmental                   
assets, liabilities, and earned revenue from                   
trade transactions and nonexchange revenue by                  
trading partner (i.e., reciprocal federal                      
entity)? (OMB Bulletin 01-09, p. 109, section                  
11.3)                                                          
68. Does the entity report intragovernmental                   
gross cost to generate earned revenue from trade               
transactions by budget functional classification?              
(OMB Bulletin 01-09, p. 109, section 11.3)                     
69. Do intragovernmental asset and liability                   
categories reported as required supplementary                  
information agree with the intragovernmental                   
asset and line items reported on the balance                   
sheet? (OMB Bulletin 01-09, p. 109, section 11.3)              
70. Are transactions with components of federal                
departments and agencies (e.g., Forest Service of              
the USDA) not reported separately, but included                
in the activity reported for the federal                       
department or agency? (OMB Bulletin 01-09, p.                  
109, section 11.3)                                             

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Section X Supplementary Information

          Required Supplementary Information:         Yes, No, or Explanation 
          Intragovernmental Amounts (66 - 78)             N/A     
      71. Are all intragovernmental amounts net of                
intra-entity transactions? (OMB Bulletin 01-09, p.             
                   109, section 11.3)                             
72. Does the entity reconcile intragovernmental                
asset, liability, and revenue amounts with its                 
trading partners at least quarterly? (OMB Bulletin             
01-09, pp. 109 & 110, section 11.3)                            
73. Do intragovernmental assets and liabilities                
reported as required supplementary information                 
(RSI) agree with the intragovernmental asset and               
liability line items and totals on the reporting               
entity's consolidated agencywide balance sheet?                
(OMB Bulletin 01-09, pp. 110 & 111, section 11.3)              
74. For each intragovernmental asset and liability             
    line item on the consolidated agencywide balance              
         sheet, does the entity identify in the                   
     supplementary information the trading partner                
      balances that make up the line item?149 (OMB                
      Bulletin 01-09, pp. 110 & 111, section 11.3)                
      75. If intragovernmental transactions with a                
      trading partner are material in one asset or                
      liability category but immaterial in another                
category, does the entity report transactions with             
      the trading partner for each category? (OMB                 
      Bulletin 01-09, pp. 110 & 111, section 11.3)                
76. If the entity has total intragovernmental                  
earned revenues from trade transactions (net of                
intra-entity activity) of greater than $500                    
million, does it report such intragovernmental                 
revenues by trading partner? (OMB Bulletin 01-09,              
p. 111, section 11.3)                                          

149Reporting entities may aggregate trading partners whose individual
totals for a particular asset category collectively comprise less than 20
percent of the total asset line item category.

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Page 215

Section X Supplementary Information

          Required Supplementary Information:         Yes, No, or Explanation 
          Intragovernmental Amounts (66 - 78)             N/A     
77. If the entity reports intragovernmental earned             
revenues, does it also report, by budget                       
functional classification, the gross cost of                   
goods, services, and other transactions that                   
generated the intragovernmental earned                         
revenues?150 (OMB Bulletin 01-09, p. 111, section              
11.3)                                                          
    78. Does the entity report, by trading partner,               
intragovernmental nonexchange revenues transferred             
    in and out? (OMB Bulletin 01-09, p. 112, section              
                         11.3)                                    

150The costs that generate intragovernmental earned revenues may not be
intragovernmental in and of themselves. For example, if the General
Services Administration (GSA) sells pencils to Agency A, GSA would report
the revenue earned by selling the pencils to Agency A (intragovernmental)
and report the cost of purchasing those pencils from Vendor B (public) by
budget functional classification.

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Page 216

                      Section X Supplementary Information

      Required Supplementary Stewardship                                      
    Information Social Insurance Programs    Yes, No, or N/A    Explanation
                  (79 - 102)                                   
Social insurance programs covered by SFFAS 17, Accounting for Social
Insurance, have the following five common characteristics. a. financing
from participants or their employers b. eligibility from taxes or fees
paid and time worked in covered employment c. benefits not directly
related to taxes or fees paid d. benefits prescribed in law e. programs
intended for the general public The following social insurance programs
are specifically covered by SFFAS 17. a. Old-Age, Survivors, and
Disability Insurance (OASDI, i.e., Social Security) b. Hospital Insurance
(HI or Medicare Part A) and Supplementary Medical Insurance (SMI or
Medicare Part B) c. Railroad Retirement Benefits (RRB) d. Black Lung
Benefits e. Unemployment Insurance (UI. (SFFAS 17, par. 14 &, 15; OMB
Bulletin 01-09, pp.103 & 104, section 10.4B)
       79. In general, does the entity                         
responsible for a given social insurance                    
     program provide a clear and concise                       
description of the program including its                    
financing, calculation of benefits, and                     
       actuarial status151 as required                         
    supplementary stewardship information?                     
(SFFAS 17, par. 24; OMB Bulletin 01-09,                     
             p.104, section 10.B)                              
80. Does this description include the                       
following information? a. discussion of                     
the long-term sustainability and                            
financial condition of the program b. an                    
illustration and explanation of the                         
long-term trends revealed in the data                       
(SFFAS 17, par. 24; OMB Bulletin 01-09,                     
p.104, section 10.B)                                        

151This is the status of a program based on statistical calculations and
actuarial assumptions about future economic, demographic, and other
conditions and events.

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                      Section X Supplementary Information

     Required Supplementary Stewardship Information   Yes, No, or Explanation 
          Social Insurance Programs (79 - 102)            N/A     
    81. Does the reporting entity describe statutory              
      or other material changes, and implications                 
    thereof, affecting the program after the current              
            fiscal year? (SFFAS 17, par. 24)                      
     82. Are projections and estimates based on the               
       entity's best estimates of demographic and                 
       economic assumptions? (SFFAS 17, par. 25)                  
        83. Does the entity disclose significant                  
        assumptions used in making estimates and                  
            projections? (SFFAS 17, par. 25)                      
84. Are all projections and estimates made as of a             
    date (i.e., the valuation date) as close to the               
end of the fiscal year (i.e., current year) being              
    reported on as possible and no more than 1 year               
    prior to the end of the current year? (SFFAS 17,              
                        par. 26)                                  
      85. Does the entity consistently follow this                
valuation date from year to year? (SFFAS 17, par.              
                          26)                                     
       86. Does information on the financial and                  
actuarial status of the social insurance programs              
include actuarial projections that are indicative              
    of long-term sustainability and show the annual               
     cash flows in nominal dollars for current and                
      future participants? (SFFAS 17, par. 27 (1))                
     87. Are the actuarial projections of cash flow               
amounts reported for at least every fifth year in              
the projection period? (SFFAS 17, par. 27 (1) (a))             
      88. Does the cash flow information show the                 
    following amounts? a. total cash inflow from all              
    sources (i.e., by and on behalf of participants)              
    less net interest on intragovernmental borrowing              
and lending b. total cash outflow (SFFAS 17, par.              
                      27 (1) (a))                                 

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                      Section X Supplementary Information

     Required Supplementary Stewardship Information   Yes, No, or Explanation 
          Social Insurance Programs (79 - 102)            N/A     
89. Does the narrative accompanying the cash flow              
data include identification of any year or years               
during the projection period when cash outflow                 
exceeds cash inflow, with and without interest on              
intragovernmental borrowing or lending (the                    
"cross-over points")? (SFFAS 17, par. 27 (1) (a))              
    90. Does the narrative provide an explanation of              
     the significance of the cash flow "cross-over                
    points" where cash outflows begin exceeding cash              
inflows? (SFFAS 17, par. 27 (1) (a) & 32 (1) (a))              
91. Do the cash flow projections (net of interest              
on intragovernmental borrowing/lending) for Social             
Security and Medicare Part A include an estimate               
of cash flows as a percentage of taxable payroll?              
(SFFAS 17, par. 27 (1) (b))                                    
92. Do the cash flow projections (net of interest              
on intragovernmental borrowing/lending) for Social             
Security and Medicare (Parts A & B) include an                 
estimate of cash flows as a percentage of gross                
domestic product? (SFFAS 17, par. 27 (1) (b))                  
93. For Social Security and Medicare, Part A                   
programs, does the entity's cash flow information              
show its estimate of the ratio of the number of                
contributors to the number of beneficiaries during             
the same projection period as for cash flow                    
projections? (SFFAS 17, par. 27 (2))                           
94. At a minimum, is the ratio of contributors to              
beneficiaries for Social Security and Medicare,                
Part A reported for the beginning and end of the               
projection period? (SFFAS 17, par. 27 (2))                     

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Section X Supplementary Information

Required Supplementary Stewardship Information Yes, No, or N/A Explanation 
        Social Insurance Programs (79 - 102)                      
95. For all enumerated social insurance                        
programs except Unemployment Insurance (UI),                   
does the responsible entity present a                          
statement of actuarial present values of the                   
following items?152 a. all future expenditures                 
during the projection period related to                        
benefit payments i. to or on behalf of current                 
participants who have not yet attained                         
retirement age ii. to or on behalf of current                  
participants who have attained retirement age                  
iii. to or on behalf of those who are expected                 
to become plan participants b. all future                      
contributions and tax income (from taxation of                 
benefits) during the projection period i. from                 
or on behalf of current participants who have                  
not yet attained retirement age ii. from or on                 
behalf of current participants who have                        
attained retirement age iii. from or on behalf                 
of those who are expected to become plan                       
participants c. cash flow during the                           
projection period153 (SFFAS 17, par. 27 (3)                    
(a)-(g); OMB Bulletin 01-09, p. 104, section                   
10.4B)                                                         
96. With the exception of Unemployment                         
Insurance (UI), does the entity disclose the                   
accumulated excess of all past cash receipts,                  
including interest on investments, over all                    
cash disbursements within the social insurance                 
program represented by the fund balance at the                 
valuation date?154 (SFFAS 17, par. 27 (3) (h))                 

152For periods beginning after September 30, 2004 this information shall
be presented as a basic financial statement rather than as a component of
RSSI (SFFAS 25, par. 6 & 7)

153Cash flow during the projection period is derived from subtracting the
actuarial present value of future contributions and tax income during the
projection period (95b above) from the actuarial present value of future
expenditures for the projection period (95a above).

154ibid.

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                      Section X Supplementary Information

Required Supplementary Stewardship Information Yes, No, or N/A Explanation 
        Social Insurance Programs (79 - 102)                      
      97. Does the entity also disclose how it                    
calculated the actuarial net present value of                  
    future benefits and contributions from or on                  
    behalf of current participants of all social                  
    insurance programs except UI?155 (SFFAS 17,                   
                  par. 27 (3) (i))                                
     98. If available, does the entity provide                    
estimates of the actuarial present values and                  
fund balances of the social insurance programs                 
(except UI) under its purview for each of the                  
    4 preceding years?156 (SFFAS 17, par. 27 (3)                  
                        (j))                                      
    99. For all social insurance programs except                  
UI, does the responsible entity illustrate the                 
    sensitivity of the projections of cash flows                  
and actuarial present values to changes in the                 
      most significant individual assumptions?                    
            (SFFAS 17, par. 27 (4) (a))                           
100. At a minimum, do the Social Security and                  
       Medicare programs analyze assumptions                      
regarding the following factors? a. birth and                  
    death rates b. net immigration c. real wage                   
differential d. real interest rate (SFFAS 17,                  
                  par. 27 (4) (a))                                
     101. Does the sensitivity analysis for UI                    
    programs show the effects of increasing the                   
        unemployment rate as follows? a. by                       
     approximately one percentage point b. to a                   
    level sufficient to put stress on the system                  
      (e.g., to simulate the largest recession                    
occurring within the last 25 years) (SFFAS 17,                 
    par. 27 (4) (b); OMB Bulletin 01-09, p. 104,                  
                   section 10.4B)                                 

                               155ibid. 156ibid.

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                      Section X Supplementary Information

     Required Supplementary Stewardship Information   Yes, No, or Explanation 
          Social Insurance Programs (79 - 102)            N/A     
102. Does information on the UI program provide a              
state-by-state analysis illustrating the relative              
    solvency of individual state programs, including              
the ratio of each state's current accumulated fund             
     balance to a year's projected benefit payments               
      based on the highest level of annual benefit                
    payments experienced by that state over the last              
     20 years? (SFFAS 17, par. 27 (5); OMB Bulletin               
              01-09, p.104, section 10.4B)                        

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