GAO/PCIE: Financial Audit Manual: Checklist for Federal 	 
Accounting Reporting, and Disclosures (01-JUL-04, GAO-04-942G).  
                                                                 
The U.S. Government Accountability Office (GAO) and the 	 
President's Council on Integrity and Efficiency (PCIE) maintain  
the GAO/PCIE Financial Audit Manual (FAM). The FAM provides	 
guidance for performing financial statement audits of federal	 
entities. It is a key tool for enhancing accountability over	 
taxpayer-provided resources. GAO and PCIE are committed to	 
keeping the FAM current. With this goal in mind, in October of	 
2003, we revised the Checklist for Reports Prepared Under the CFO
Act (CFO Checklist), and requested comments on an exposure draft 
of the checklist. One of the key changes in the final checklist  
is its title, which has been changed to Checklist for Federal	 
Accounting, Reporting, and Disclosures. This change was made to  
reflect the checklist's potential application to any federal	 
entity preparing annual audited financial statements in 	 
accordance with the Office of Management and Budget's (OMB) form 
and content guidance.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-942G					        
    ACCNO:   A11285						        
  TITLE:     GAO/PCIE: Financial Audit Manual: Checklist for Federal  
Accounting Reporting, and Disclosures				 
     DATE:   07/01/2004 
  SUBJECT:   Auditing procedures				 
	     Auditing standards 				 
	     Financial analysis 				 
	     Financial management				 
	     Financial management systems			 
	     Financial records					 
	     Financial statement audits 			 
	     Internal audits					 

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GAO-04-942G

July 2004

Dear Colleague:

The U.S. Government Accountability Office (GAO) and the President's
Council on Integrity and Efficiency (PCIE) maintain the GAO/PCIE Financial
Audit Manual (FAM). The FAM provides guidance for performing financial
statement audits of federal entities. It is a key tool for enhancing
accountability over taxpayer-provided resources.

GAO and PCIE are committed to keeping the FAM current. With this goal in
mind, in October of 2003, we revised the Checklist for Reports Prepared
Under the CFO Act (CFO Checklist), and requested comments on an exposure
draft of the checklist. One of the key changes in the final checklist is
its title, which has been changed to Checklist for Federal Accounting,
Reporting, and Disclosures. This change was made to reflect the
checklist's potential application to any federal entity preparing annual
audited financial statements in accordance with the Office of Management
and Budget's (OMB) form and content guidance.

This checklist is located in section 1050 of the GAO/PCIE FAM. It can be
accessed at either the GAO Web site (www.gao.gov) or the PCIE Web site
(www.ignet.gov/pande/audit1.html#guide). We extend our thanks to the
individuals and organizations that provided comments to make this
checklist

                                more effective.

Jeffrey C. Steinhoff
Managing Director
Financial Management and Assurance
U.S. Government Accountability Office

Attachment

The Honorable Everett L. Mosley Chair President's Council on Integrity

and Efficiency Audit Committee

United States Government Accountability Office President's Council on
Integrity and Efficiency

                                    GAO/PCIE

FINANCIAL AUDIT MANUAL

Checklist for Federal Accounting, Reporting, and Disclosures

                             GAO-04-942G July 2004

Reporting 1050 - Checklist for Federal Accounting, Reporting, and
Disclosures

  Contents

Abbreviations 2
Sections

I. Overview 3

II. General Items related to the Financial Statements 7

III. Balance Sheet 12

IV. Statement of Net Cost 102

V. Statement of Changes in Net Position 149

VI. Statement of Budgetary Resources 161

VII. Statement of Financing 171

VIII. Statement of Custodial Activity 182

IX. Notes to Financial Statements 192

X. Supplementary Information 193

XI. Social Insurance 218

July 2004 GAO/PCIE Financial Audit Manual - Part II

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 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

Page 1050-2

    Introduction

The Chief Financial Officers (CFO) Act of 1990 and the Government
Management 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 conformity with generally
accepted accounting principles (GAAP).1 The title of this checklist has
been changed to Checklist for Federal Accounting, Reporting, and
Disclosures. Previously referred to as the CFO Act Checklist, the change
was made to reflect its potential application to any federal entity
preparing annual audited financial statements in accordance with OMB's
proposed form and content guidelines.

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 11 sections: an overview section, a section related to
general items in the financial statements, a section for each of the six
financial statements, and three 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 three sections cover (1)
disclosures in the notes to the financial statements related to
significant accounting policies, (2) required supplementary stewardship
information and required supplementary information, and (3) social
insurance.

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.

Page 1050-3

Except for sections I, II, VI, IX, and XI, the first page of each section
contains a list showing the number of questions in the section. This
checklist has 785 questions as follows.

General Items Related to the Financial Statements 23 Balance Sheet 355
Statement of Net Cost 180 Statement of Changes in Net Position 39
Statement of Budgetary Resources 27 Statement of Financing 27 Statement of
Custodial Activity 27 Notes to Financial Statements (Significant

Accounting Policies) 5 Supplementary Information 78 Social Insurance 24

    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 24 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.

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.

Page 1050-4

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.

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.

25. 	Reclassification of Stewardship Responsibilities and Eliminating the
Current Services Assessment, 2003.4

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.

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.

4SFFAS 25 changes reporting requirements for social insurance information
required by SFFAS 17, effective for periods beginning after September 30,
2004, with earlier implementation encouraged.

Page 1050-5

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.

Page 1050-6

There are 23 questions in this section. All the questions relate to the
overall financial statements and are not further divided into categories.

               General Items (1 - 23)              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)                                                
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)                    

Page 1050-7

               General Items (1 - 23)              Yes, No or N/A Explanation 
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 AICPS 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 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.

Page 1050-8

            General Items (1 - 23)            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. 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)                                                     
7. Are these interim statements prepared                    
    on a comparative basis?6 (OMB Bulletin                     
      01-09, p. 14, section 2.1, item G)                       
8. 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)                              
9. 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)
10. 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)                                       

6Interim financial statements shall be prepared on a comparative basis
beginning 1 year following their initial preparation. That
is, statements shall be comparative for fiscal year 2004 for the
year-to-date ending December 31, 2003, March 31, 2004, and June
30, 2004.

Page 1050-9

               General Items (1 - 23)              Yes, No or N/A Explanation 
11. 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)                                       
12. 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)                                                          
13. 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 SFFAS and required segment                          
information? (OMB Bulletin 01-09, p. 15,                       
section 2.1, item K & p. 113, section 11.6)                    
       14. 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)                              
15. 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)                                     
16. 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)                              
    17. Are line items, which are immaterial but                  
     related in nature, combined? (OMB Bulletin                   
         01-09, p. 15, section 2.1, item M)                       

               General Items (1 - 23)              Yes, No or N/A Explanation 
     18. Are discrete balances of an immaterial                   
     amount designated as "other?" (OMB Bulletin                  
         01-09, p. 15, section 2.1, item M)"                      
19. If not, are these material balances                        
separately reported and designated by name?                    
(OMB Bulletin 01-09, p. 15, section 2.1, items                 
M & N)                                                         
20. 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)                                           
21. 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)                                                   
      22. 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)                                    
    23. Are footnotes sequentially numbered? (OMB                 
     Bulletin 01-09, p. 16, section 2.1, item S)                  

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 1 -6

Assets

1. Fund Balance with Treasury 7 - 22

2. Investments 23 -32

3. Accounts Receivable (Net) 33 -49

4. Interest Receivable (Net) 50 -54

5. Credit Program Receivables 55 - 96

6. Cash and Other Monetary Assets 97 - 102

7. Inventory and Related Property 103 -125

8. Operating Materials and Supplies 126 -137

9. Stockpile Materials 138 -150

10. Seized Property 151 -158

11. Forfeited Property 159 -172

12. 	Goods Held Under Price Support and
Stabilization Programs 173 -186

13. General Property, Plant, and Equipment (Net) 187 - 233

14. Software 234 -262

15. Other Assets 263 -268

Liabilities

16. Liabilities in General 269 -272

17. Accounts Payable and Interest Payable 273 -280

18. Liabilities for Loan Guarantees 281 -294

19. Lease Liabilities 295 -300

20. Federal Debt and Related Interest 301 -311

21. 	Pensions, Other Retirement Benefits, and
Postemployment Benefits 312 -319

22. Other Liabilities 320 -353

Net Position

23. 	Unexpended Appropriations and Cumulative
Results of Operations 354 - 355

          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?7 (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)                        
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)                          

9Entity 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).

               General Items (1 - 6)              Yes, No or    Explanation   
                                                      N/A      
     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 nonfederal entities,                   
including the Federal Reserve and government                
sponsored enterprises?8 (OMB Bulletin 01-09,                
     p. 19, section 3.3 & p. 24, section 3.4)                  

8Government sponsored enterprises are federally chartered but privately
owned and operated entities.

    Assets Fund Balance with Treasury (7 -    Yes, No or N/A    Explanation   
                      22)                                      
    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)                                  

     Assets Fund Balance with Treasury (7 - 22)    Yes, No or N/A Explanation 
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 authority 9 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)                      

9Contract 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.

     Assets Fund Balance with Treasury (7 - 22)    Yes, No or N/A Explanation 
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 disbursed10 and the unobligated                
balance 11 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)                                           

10The obligated balance not yet disbursed is the amount of funds against
which budgetary obligations have been incurred, but
disbursements have not been made.
11The unobligated balance is the amount of funds available to the entity
against which no claims have been recorded. (SFFAS 1,
par. 38)

     Assets Fund Balance with Treasury (7 - 22)    Yes, No or N/A Explanation 
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?12 (SFFAS 1, par. 39; OMB Bulletin                  
01-09, p. 57, section 9.3, item C)                             
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)                               

12Discrepancies due to time lag should be reconciled and discrepancies due
to error should be corrected when financial reports are prepared.

         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)                                   
29. Are investments grouped by type of                      
security, such as marketable or                             
market-based Treasury securities? (SFFAS                    
1, par. 72)                                                 

            Assets Investments (23 - 32)           Yes, No or N/A Explanation 
      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)                            

       Assets Accounts Receivable (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)                                 
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)                     

        Assets Accounts Receivable (33 - 49)       Yes, No or N/A Explanation 
     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)                                                           

        Assets Accounts Receivable (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 interentity 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)                  

          Assets Accounts Receivable (33 - 49)        Yes, No or  Explanation 
                                                          N/A     
     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)
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)                                                       

        Assets Interest Receivable (50 - 54)       Yes, No or N/A Explanation 
    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?13 (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)                                             

13See also Federal Claims Collection Standards, 4 CFR Part 103 par.
102.13)

                                       14
Section 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.
                                       15
       Undelivered 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)
                             The Federal                                                        
                                  Credit               56. Are                                  
                              Reform Act               credit                                   
                             of 1990, as               program                                  
                                amended,               receivables   57. If a                   
                                 divides               considered    loan                       
                               loans and               an entity     guarantee                  
                                    loan 55. Is        asset if at   program,                   
                              guarantees interest      least one     which         58. Are      
                                into two receivable    of the        guarantees    special      
                                 groups: related to    following     a loan, is    fund         
                                pre-1992 pre-1992      criteria is   generating    receipt      
                                     and and           met? a. The   a negative    accounts     
                              post-1991. post1991      entity has    subsidy and   for          
                                Pre-1992 direct        the           the lender    negative     
                               refers to loans and     authority     has not       subsidies    
                             direct loan acquired      to            disbursed     and          
  Assets                     obligations defaulted     determine     the loan as   downward     
  Credit    Yes,                 or loan guaranteed    the use of    of the        subsidy      
  Program    No  Explanation   guarantee loans         the funds     balance       reestimates  
Receivables  or              commitments reported as   collected.    sheet date,   included in  
 (55 - 96)  N/A               made prior a component   b. The        does the      the credit   
                               to fiscal of credit     entity is     entity        reporting    
                              year 1992; program       legally       record and    entity's     
                               post-1991 receivables   obligated     include       financial    
                               refers to and related   to use the    this amount   statements?  
                             direct loan foreclosed    funds to      as part of    (OMB         
                             obligations property?     meet entity   the total     Bulletin     
                                 or loan (OMB          obligations   undelivered   01-09, p.    
                               guarantee Bulletin      (e.g.,        orders?15     21, section  
                             commitments 01-09, p      loans         (OMB          3.3)         
                              made after 21, section   payable to    Bulletin                   
                             fiscal year 3.3)          Treasury).    01-09, p.                  
                                 1991.14               (OMB          21, section                
                                    (OMB               Bulletin      3.3)                       
                                Bulletin               01-09, p.                                
                                0109, p.               21, section                              
                             68, section               3.3)                                     
                               9.8, item                                                        
                                      A)                                                        

     Assets Credit Program Receivables (55 - 96)   Yes, No or N/A Explanation 
     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 0109, 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)                          

     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 receivable16 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)                                                         

16That 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.

     Assets Credit Program Receivables (55 - 96)   Yes, No or N/A Explanation 
                Pre-1992 Direct Loans                             
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 allowance 17 (if the                 
present value method is used) e. allowance for                 
loan losses 18 (if the allowance-forloss method                
is used) (OMB Bulletin 01-09, pp. 61 & 70,                     
section 9.8 item B)                                            

17Under 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.)
18Under 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.)

Assets Credit Program Receivables (55 - 96)  Yes, No or N/A  Explanation   
              Pre-1992 Direct Loans                            
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))                             

     Assets Credit Program Receivables (55 - 96)   Yes, No or N/A Explanation 
                Pre-1992 Direct Loans                             
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 postmodification 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)                                

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 either 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)                                                    

     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)                  

     Assets Credit Program Receivables (55 - 96)   Yes, No or N/A Explanation 
                Pre-1992 Direct Loans                             
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)                  
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)                                                       

     Assets Credit Program Receivables (55 - 96)   Yes, No or N/A Explanation 
                Pre-1992 Direct Loans                             
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 post1991                        
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)                      

    Assets Cash and Other Monetary Assets    Yes, No or N/A     Explanation   
                 (97 - 102)                                   
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,19 is the                      
nature and reason disclosed? (SFFAS 1,                     
     par. 30; OMB Bulletin 01-09, p. 56,                      
      section 9.2 & p. 58, section 9.4)                       

19Nonentity 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.

     Assets Cash and Other Monetary Assets (97 -   Yes, No or N/A Explanation 
                        102)                                      
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)                           

     Assets Inventory and Related Property    Yes, No or N/A    Explanation   
                  (103 - 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)                             

    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)?20 (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)                          

20Revaluation 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.

    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?21 (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)                                             

21Cost 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.

    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)                           

    Assets Inventory and Related Property (103 -   Yes, No or N/A Explanation 
                        125)                                      
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)                               

     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)                                                   

    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)                                                       

    Assets Operating Materials and Supplies (126-  Yes, No or N/A Explanation 
                        137)                                      
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)                                                       

    Assets Operating Materials and Supplies (126-  Yes, No or N/A Explanation 
                        137)                                      
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 category                 
22 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)                    

22Major 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.

      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)                                                   
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)                                                   

        Assets Stockpile Materials (138- 150)      Yes, No or N/A Explanation 
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)                         

        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)                                                   

      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)                                       

          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)                                                   

        Assets Forfeited Property (159- 172)       Yes, No or N/A Explanation 
     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)                                      

        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                   
disposed 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)                                                            
170. Is unclaimed and abandoned merchandise                    
valued at its market value? (SFFAS 3, par. 77)                 

        Assets Forfeited Property (159- 172)       Yes, No or N/A Explanation 
    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)                            

Assets Goods Held Under Price Support and  Yes, No or N/A    Explanation   
       Stabilization Program (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 loss23 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)                                   

23The loss amount is the difference between the contract price and the net
realizable value of the commodities.

      Assets Goods Held Under Price Support and    Yes, No or N/A Explanation 
          Stabilization Program (173- 186)                        
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)                                            

      Assets Goods Held Under Price Support and    Yes, No or N/A Explanation 
          Stabilization Program (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)                      

      Assets Goods Held Under Price Support and    Yes, No or N/A Explanation 
          Stabilization Program (173- 186)                        
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)                                      

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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 consist of the following items?                 
a. assets acquired through capital leases,                     
including leasehold improvement 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)                               
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)

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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 leased                      
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 term 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)                                                            
     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)24 d. stewardship land (i.e., land not                 
    included in general PP&E) (SFFAS 6, par. 19,                  
         21, 57, 58, & 68; SFFAS 16, par. 6)                      

24Multiuse heritage assets are heritage assets used predominately in
general government operations (e.g., the main Treasury building, which is
used as an office building).

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
     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)                         
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 activities 25 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)                                                   

25A business-type activity is defined as a significantly self-sustaining
activity that finances its continuing cycle of operations through the
collection of exchange revenue.

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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)                               

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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)                                  
198. Is the cost of general PP&E acquired under                
a capital lease equal to the amount recognized                 
as a liability 26 for the capital lease at its                 
inception? (SFFAS 6, par. 29)                                  

26The 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)

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
      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)                                
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)                                             

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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)                                                            
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 methodology 27 whereby the costs of PP&E                 
are allocated using the same allocation rate?                  
(SFFAS 6, par. 35; SFFAS 23, par. 9(f))                        

27The 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.

    Assets General Property, Plant, & Equipment (Net)  Yes, No or Explanation 
                       (187- 233)                         N/A     
     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)                             
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)              

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
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)                                                            
     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 cost28                    
(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?29 (SFFAS 23,                   
par. 15)                                                       

28For example, the latest acquisition cost may be substituted for current
replacement cost in some situations. 29This 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).

    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 cost30 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                       
contraaccounts 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)                                                       

  30Net remaining cost is the original cost of the asset less any accumulated
             depreciation/amortization to date (i.e., book value).

     Assets General Property, Plant, & Equipment   Yes, No or N/A Explanation 
                  (Net) (187- 233)                                
       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)                                     

     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 16, par. 11)                     

             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)                

               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 software 31 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                        
contractordeveloped software and otherwise make it             
ready for use? (SFFAS 10, par. 18)                             
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)                              

31Examples 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.

             Assets Software (234- 262)            Yes, No or N/A Explanation 
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 purposes 32                 
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,33                 
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)                                                            
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)                                    

32Software 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. 33For example, such software could
include software necessary to operate airport radar and computer operated
lathes.

                                       34
          SFFAS 10 provides that material expenditures to add software
    capability/functionality would be capitalized but that expenditures that
result in extending useful life or capacity would be expensed. (SFFAS 10,
                                 par. 42 & 43)
                                                                                                         252. If       
                                                                                                         impaired      
                                                                                                         software is   
                                                                                                         to remain in  
                                                                                                         use, is the   
                                                                                                         loss due to   
                                                                                                         impairment    
                          248. Does the                                                                  measured as   
                          entity          249. Does        250. Are                                      the           
                          capitalize      the entity        costs                                        difference    
                          the             expense, in      incurred                                      between the   
                          acquisition     the period      solely to     251. Does the entity recognize   book value    
                          cost of         incurred,        repair a     a loss upon impairment of        and either    
                          enhancements    the cost of    design flaw    computer software if either of   of the        
                          to existing     minor             or to       these                            following     
                          internal-use    enhancements     perform      postimplementation/operational   amounts? a.   
                          software, as    resulting         minor       conditions apply? a. the         the cost to   
 Assets  Yes,             well as         from ongoing     upgrades     software is no longer expected   acquire       
Software  No  Explanation related         systems          that may     to provide substantive service   software      
 (234-    or              modules, when   maintenance     extend the    potential and will be removed    that would    
  262)   N/A              it is more      as well as     useful life    from service b. a significant    perform       
                          likely than     the purchase      of the      reduction occurs in the          similar       
                          not that they   of enhanced      software     capabilities, functions, or      remaining     
                          will result     versions of      without      uses of the software (or         functions     
                          in              software for      adding      module thereof) (SFFAS 10,       (i.e.,        
                          significant     a minimal      capabilities   par. 28 & 29)                    unimpaired    
                          additional      charge?        expensed?34                                     functions)    
                          capabilities?   (SFFAS 10,      (SFFAS 10,                                     b. the        
                          (SFFAS 10,      par. 26)         par. 27)                                      portion of    
                          par. 25)                                                                       book value    
                                                                                                         attributable  
                                                                                                         to the        
                                                                                                         remaining     
                                                                                                         functional    
                                                                                                         elements of   
                                                                                                         the software  
                                                                                                         (SFFAS 10,    
                                                                                                         par. 29)      

             Assets Software (234- 262)            Yes, No or N/A Explanation 
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)                       
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)                         

             Assets Software (234- 262)            Yes, No or N/A Explanation 
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)                                    

        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)                                    

     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 resources 35 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)                                     
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)                                  

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.

      Liabilities Liabilities in General (269- 272)    Yes, No or Explanation 
                                                          N/A     
271. Does the federal entity recognize a liability             
for probable 37 and measurable 38 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 subchapter            
IV of chapter 15 of title 31, United States Code               
(closing accounts)? (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.

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)                                                  
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)                            

      Liabilities Accounts Payable and Interest    Yes, No or N/A Explanation 
                 Payable (273- 280)                               
    280. Is interest payable to federal entities                  
    reported separately from interest payable to                  
           the public? (SFFAS 1, par. 82)                         

       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)                           
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)                    

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

    Liabilities Liabilities for Loan Guarantees (281-  Yes, No or Explanation 
                          294)                            N/A     
287. Does the entity disclose, by loan program,                
whether pre-1992 loan guarantees are reported on a             
presentvalue 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.

     Liabilities Liabilities for Loan Guarantees   Yes, No or N/A Explanation 
                     (281- 294)                                   
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))                                                

      Liabilities Lease Liabilities (295- 300)     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).

      Liabilities Lease Liabilities (295- 300)     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 and the related total accumulated                     
amortization 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)                        
300. For operating leases, does the entity                     
disclose the following information in a note to                
the financial statements? a. description of the                
lease arrangements, such as future funding                     
commitments, lease terms, renewal options,                     
escalation clauses, restriction, amortization                  
periods b. future payments due, by major asset                 
category, for all noncancelable leases with                    
terms longer than 1 year (OMB Bulletin 01-09,                  
p. 84-85, section 9.17)                                        

    Liabilities Federal Debt and Related Interest  Yes, No or N/A Explanation 
                     (301- 311)                                   
    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)
     301. 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)                           
302. 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)                                                    
303. 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)                                                       
304. 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)                                             
    305. 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)                                    
306. 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)                                                            

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)

    Liabilities Federal Debt and Related Interest  Yes, No or N/A Explanation 
                     (301- 311)                                   
307. 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)                                     
308. 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)                
    309. Is all debt owed to the public reported                  
and disclosed as such? (OMB Bulletin 01-09, p.                 
            18 & pp. 79-80, section 9.13)                         
310. 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)                                    
311. 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)                                           

Liabilities Pensions, Other Retirement                                     
Benefits, and Postemployment Benefits    Yes, No or N/A      Explanation
                (312 - 319)                                   
      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)
312. 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)                      
313. 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)                                           
    314. 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)                      

       Liabilities Pensions, Other Retirement                                 
    Benefits, and Postemployment Benefits (312 -   Yes, No or N/A Explanation
                        319)                                      
315. 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)                           
316. Does the administrative entity report                     
pension and ORB assets separately from                         
liabilities as opposed to netting them out?                    
(SFFAS 5, par. 68 & 85)                                        
      317. Does the administrative entity carry                   
     pension and ORB assets at their acquisition                  
         cost, adjusted for amortization, if                      
        appropriate? (SFFAS 5, par. 68 & 85)                      
    318. Does the administrative entity disclose                  
the market value of pension and ORB investments                
      in marketbased and marketable securities?                   
               (SFFAS 5, par. 68 & 85)                            
     319. 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)                                  

Liabilities Other Liabilities (320 - 353)   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)
320. Does the entity separately report                       
items within other liabilities if the                        
amounts are material? (OMB Bulletin 01-09,                   
p. 26, section 3.4)                                          
       321. 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)                           
322. 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)                    
323. 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)                                             
324. 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)                                          

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
325. 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)                                                        
326. 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)                           

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
      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)
327. 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)                       
328. 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 deficiency 45 (SFFAS 5, par. 118 & 120)                

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

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
329. 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)                         
    330. 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)                      
331. 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)                              

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

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
332. 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)                     
    333. 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)                           
     334. 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)                  
335. 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)                                             
336. 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)                                                     
      337. 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)                                 

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)

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
338. 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)                        
            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 0109, pp. 85 & 86,
                                                                section 9.19)
339. 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                     
probable 49 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)                                     
340. 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.

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
341. 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)                                                       
342. 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)                                                      
343. 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.

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
344. 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)                                              
    345. 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)                        
     346. When clean-up costs are paid, are the                   
      payments recognized as a reduction in the                   
     liability for cleanup costs? (SFFAS 6, par.                  
                        100)                                      
347. 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)                                                  
348. Are any subsequent changes (made in                       
periods following implementation) in estimated                 
total cleanup 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)

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
349. 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)                                             
350. 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)                                        
351. 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                       
cleanup 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)                                              

      Liabilities Other Liabilities (320 - 353)    Yes, No or N/A Explanation 
    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)
352. Does the entity recognize a liability for                 
social insurance benefits due and payable                      
including claims incurred but not reported?                    
(SFFAS 17, par. 22)                                            
353. 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)                                   

      Net Position Unexpended Appropriations &     Yes, No or N/A Explanation 
    Cumulative Results of Operations (354 - 355)                  
         354. 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)                    
355. 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)                                

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 are identified below.

Cost Accounting in General

1. Overall Requirements

2. Responsibility Segments

3. Full Cost

4. Interentity Costs

5. Costing Methodology

Revenues

Costs

Question Numbers

1 -13 14 -18 19 -26 27 -33 34 -40

41 -63

6. 	Pensions and Other Retirement and
Postemployement Benefits 64 -91

7. Inventory, Materials, Supplies, and Commodities 92 - 100

8. Property, Plant, and Equipment 101 -117

9. Clean-up Costs 118 -126

10. Interest 127 -128

11. Insurance and Subsidies 129 -132

12. Credit Programs 133 -180

     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                              
suborganizations 54 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

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             
attributed 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)                    

Cost Accounting in General Overall Requirements Yes, No or N/A Explanation 
                      (1 - 13)                                    
      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)                                          

Cost Accounting in General Overall Requirements Yes, No or N/A Explanation 
                      (1 - 13)                                    
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)                                             

Cost Accounting in General Overall Requirements Yes, No or N/A Explanation 
                      (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)                                      

      Cost Accounting in General Responsibility    Yes, No or N/A Explanation 
                 Segments (14 - 18)                               
        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)                         

      Cost Accounting in General Responsibility    Yes, No or N/A Explanation 
                 Segments (14 - 18)                               
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).

    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.

Cost Accounting in General Full Cost (19 - 26)  Yes, No or N/A Explanation 
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.

Cost Accounting in General Interentity Costs Yes, No or N/A  Explanation   
                    (27 - 33)                                  
         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) Costs between reporting entities that are part of the same
        department or larger reporting entity (such as bureaus, components or
                  responsibility segments within a department) are considered
       intradepartmental costs. Reporting entities should account for imputed
       intradepartmental costs in accordance with the full cost provisions of
                         SFFAS 4. (FASAB Interpretation Number 6, par. 4 & 8)
27. Does the reporting entity include in its                
Statement of Net Cost the full costs of                     
goods and services received from other                      
federal entities whether or not the                         
providing entity is fully reimbursed? (SFFAS                
4, par. 105; OMB Bulletin 01-09, p. 31,                     
section 4.3)                                                
28. Does the reporting entity recognize the                 
following costs, including the portions that                
    are funded through the Office of Personnel                 
    Management, the Department of Defense, the                 
    Department of the Treasury, the Department                 
     of Labor, or other agencies: a. employee                  
     pension, postretirement health, and life                  
    insurance benefits b. other postemployment                 
      benefits for retired, terminated, and                    
        inactive employees, which included                     
unemployment and workers compensation under                 
    the Federal Employees' Compensation Act c.                 
    losses in litigation proceedings?58 (SFFAS                 
     4, par. 110; OMB Bulletin 01-09, p. 31,                   
                   section 4.3)                                
29. 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)                                         

58See FASAB Interpretation Number 2, Accounting for Treasury Judgment Fund
Transactions.

    Cost Accounting in General Interentity Costs   Yes, No or N/A Explanation 
                      (27 - 33)                                   
    30. 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)                              
31. 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)                                                      
32. 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)                            
33. Are interentity expenses and financing                     
sources eliminated for any consolidated                        
financial statements covering both entities?                   
(SFFAS 4, par. 109)                                            

     Cost Accounting in General Costing      Yes, No or N/A     Explanation   
            Methodology (34 - 40)                             
     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)
    34. Is the entity's accounting system                     
      capable of identifying costs with                       
responsibility segments? (SFFAS 4, par.                    
                    118)                                      
35. 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)                                      
36. 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)                          
37. 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 feasible59 b.                      
    assigning costs on a cause-and-effect                     
       basis c. allocating costs on a                         
reasonable and consistent basis (SFFAS                     
                4, par. 124)                                  

59A method is economically feasible if the benefits resulting from
implementing the method outweigh its costs.

Cost Accounting in General Costing Methodology  Yes, No or N/A Explanation 
                      (34 - 40)                                   
    38. For cost allocation purposes, do indirect                 
      costs assigned to a given cost pool have                    
    similar characteristics? (SFFAS 4, par. 136)                  
    39. Are common costs60 assigned to activities                 
       either on a cause-and-effect basis, if                     
    feasible, or through reasonable allocations?                  
                 (SFFAS 4, par. 140)                              
40. 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)                           

60Common 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.

               Revenues (41 - 63)             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)
41. 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)                                                       
    42. 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)                            
43. 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)                                        
     44. Are nonexchange revenues and                         
     other financing sources excluded                         
       from calculating net cost of                           
operations for the reporting entity?                       
            (SFFAS 7, par. 44)                                

                   Revenues (41 - 63)                  Yes, No or Explanation 
                                                          N/A     
45. 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)                                             
46. 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)             
47. 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)                             

                 Revenues (41 - 63)                Yes, No or N/A Explanation 
48. 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)                            
49. 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)                            
50. 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)                  
51. 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))                                                         
52. 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))                                
    53. 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))                                     
54. 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))                            

                   Revenues (41 - 63)                  Yes, No or Explanation 
                                                          N/A     
     55. 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))                       
56. 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))              
57. 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)                                             
58. Is the measurement of revenue from exchange                
transactions based on the actual price received or             
receivable under established pricing arrangements?             
(SFFAS 7, par. 38)                                             
     59. 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)                        
60. 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)                                 
    61. 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)                                  

                 Revenues (41 - 63)                Yes, No or N/A Explanation 
62. 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)                            
63. As the lessor in any lease arrangements,                   
does the entity disclose the following in a                    
note to the financial statements? a. any                       
information necessary to disclose the                          
commitment of the entity's assets including                    
but not limited to the major asset category                    
and lease terms b. future lease revenues, by                   
major asset category, for all noncancelable                    
leases with terms longer than one year c.                      
other information necessary for understanding                  
leases not disclosed in the above categories.                  
(OMB Bulletin 01-09, p. 85, section 9.17B)                     

    Costs Pensions and Other Retirement     Yes, No or N/A      Explanation   
and Post Employment Benefits (64 - 91)                     
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)
64. Are pensions and ORB recognized as                     
    expenses at the time the employee's                       
services are rendered? (SFFAS 5, par.                      
                    59)                                       
65. Are postemployment benefits                            
recognized as expenses at the time the                     
accountable event occurs? (SFFAS 5,                        
par. 59)                                                   
      66. 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)                                       

    Costs Pensions and Other Retirement and Post   Yes, No or N/A Explanation 
            Employment Benefits (64 - 91)                         
67. 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)                     
68. 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)                                      
69. 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)                                                    
70. Does the administrative entity disclose the                
    assumptions used to calculate pension benefit                 
            expenses? (SFFAS 5, par. 67)                          
71. When a new pension plan is initiated or                    
current one amended, does the administrative                   
entity recognize all past and prior service                    
costs61 or gains immediately, without                          
amortization? (SFFAS 5, par. 69 & 70)                          
    72. Does the administrative entity recognize                  
     actuarial gains and losses 62 immediately,                   
    without amortization? (SFFAS 5, par. 69 & 70)                 

61Past 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.
62Actuarial 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.

    Costs Pensions and Other Retirement and Post   Yes, No or N/A Explanation 
            Employment Benefits (64 - 91)                         
73. 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)                       
      74. Does the administrative entity report                   
         pension plan revenue for the sum of                      
    contributions from the following entities? a.                 
the employer b. its employees 63 c. interest on                
the plan's investments (SFFAS 5, par. 73 & 78)                 
75. 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)                   

63The 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.

      Costs Pensions and Other Retirement and Post     Yes, No or Explanation 
              Employment Benefits (64 - 91)               N/A     
76. 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)                    
         77. If the employer entity is also the                   
     administrative entity, does it also report the               
      liability64 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)                   
    78. 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)                                  
79. Are expenses and other liabilities attributable            
     to ORB expenses allocated based on the service               
      rendered by each employee? (SFFAS 5, par. 82)               
80. 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)                                             

64The 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.

    Costs Pensions and Other Retirement and Post   Yes, No or N/A Explanation 
            Employment Benefits (64 - 91)                         
81. 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 longterm federal government                     
    borrowing rate) for unfunded plans? (SFFAS 5,                 
                       par. 83                                    
82. Does the administrative entity disclose the                
assumptions used to calculate projected ORB                    
costs? (SFFAS 5, par. 83)                                      
83. 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)                        
84. 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)                                
    85. Does the administrative entity recognize                  
all actuarial gains and losses from changes in                 
       the ORB liability immediately, without                     
        amortization? (SFFAS 5, par. 86 & 87)                     

    Costs Pensions and Other Retirement and Post   Yes, No or N/A Explanation 
            Employment Benefits (64 - 91)                         
86. 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)                       
    87. Does the administrative entity report ORB                 
    revenue for the sum of contributions from the                 
    employer entity and its employees? (SFFAS 5,                  
                      par. 89)                                    
88. 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)                                    

Costs Pensions and Other Retirement and Post   Yes, No or    Explanation   
           Employment Benefits (64 - 91)              N/A      
89. 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)                                          
      90. If the employer entity is also the                   
    administrative entity, does it also report                 
the liability65 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)
    91. 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)                       

65The 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)

      Costs Inventory, Materials, Supplies, and    Yes, No or N/A Explanation 
               Commmodities (92 - 100)                            
92. 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)                                    
93. 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)                     
94. 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)                    
95. 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)                                                          
96. 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)                                               

      Costs Inventory, Materials, Supplies, and    Yes, No or N/A Explanation 
               Commmodities (92 - 100)                            
97. 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)                                                  
98. Are any unrealized gains or losses                         
resulting from periodic revaluations of                        
inventory captured in a designated allowance                   
account? (SFFAS 3, par. 23 & 24)                               
99. 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)                      
100. Are abnormal costs of stockpile materials,                
    such as excessive handling and rework costs,                  
expensed in current operations? (SFFAS 3, par.                 
                         53)                                      

    Costs Property, Plant, and Equipment     Yes, No or N/A     Explanation   
                 (101 - 117)                                  
    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, 66 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)
101. Is depreciation expense recognized                    
on all general PP&E? (SFFAS 6, par. 35)                    
102. 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)                             
103. 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                           
acquired67 recognized as either a gain                     
or a loss? (SFFAS 6, par. 32)                              
104. 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)                               
105. 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)                                      

66The 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.
67The 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.

     Costs Property, Plant, and Equipment (101 -   Yes, No or N/A Explanation 
                        117)                                      
106. 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)                       
107. 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)                                       
108. 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)                                                  
109. 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)                                                        
110. 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)                           
111. 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)                                                          

     Costs Property, Plant, and Equipment (101 -   Yes, No or N/A Explanation 
                        117)                                      
112. 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)                                    
113. 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)                                              
114. 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)                                     
115. 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)                                    
116. 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)                           
117. 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)                                                       

          Costs Clean-up Costs (118 - 126)         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)
118. When PP&E is placed into service, does the                
entity estimate the associated clean-up costs?                 
                 (SFFAS 6, par. 94)                               
119. 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)                                             
120. 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)                                                    
121. 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)                                    

          Costs Clean-up Costs (118 - 126)         Yes, No or N/A Explanation 
122. 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)                      
123. 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)                         
124. 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)                              
125. 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)                         

          Costs Clean-up Costs (118 - 126)         Yes, No or N/A Explanation 
     126. 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 cleanup 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 priorperiod                   
      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)                  

             Costs Interest (127 - 128)            Yes, No or N/A Explanation 
        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)
127. 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)                         
128. 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)                                    

     Costs Insurance and Subsidies (129 - 132)    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)
    129. 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)                                 
130. 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)                   
      131. 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)                                 
132. Does the entity recognize an expense for               
social insurance 68 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)                                 

68Social insurance programs include Social Security, Medicare, Railroad
Retirement, Black Lung Benefits, and Unemployment Insurance (SFFAS 17,
par. 14).

      Costs Credit Programs (133 - 180)      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)
      133. 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)                      
134. 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)                                 
135. Are the following components of                       
estimated subsidy costs (and offsetting                    
receipts) of post-1991 loans and                           
guarantees separately recognized? a.                       
interest subsidy costs 69 b. default                       
costs 70 c. present value of fees and                      
other collections d. other subsidy                         
costs (SFFAS 2, par. 25-29)                                

69The 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.
70The default cost of direct loans or loan guarantees is measured at the
present value of projected payment delinquencies and
omissions minus projected net recoveries.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
       136. Is the subsidy cost allowance for                     
     post-1991 direct loans amortized using the                   
interest method? 71 (SFFAS 2, par. 30, 31, and                 
     app. B, part I B (2); SFFAS 19, par. 7(a))                   
    137. 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))                       
138. 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))                
139. 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))                        
140. 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))                              

71Under 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.

       Costs Credit Programs (133 - 180)       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)
141. 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)                               
142. 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 separately                    
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)                              
143. If the assumed interest rates used in                   
calculating the subsidy expenses for                         
cohorts 72 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))                                       
144. 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))                       

72Cohort, 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.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
145. Are technical/default reestimates made                    
each year as of the date of the financial                      
statements? (SFFAS 18, par. 9 (B))                             
146. 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)                       
147. 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)                                                       
     148. 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)                       
149. 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)                                            

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
150. 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))                                        
151. Does the reporting entity disclose, at the                
    program level, the subsidy rates73 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))                      
152. 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))                          

73The subsidy rate is the dollar amount of the subsidy component as a
percentage of the direct loans or loan guarantees obligated in the cohort.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
153. Does the reporting entity disclose,                       
discuss, and explain events and changes in                     
economic conditions, other risk factors,                       
legislation, credit policies, 74 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))                           
    154. 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))                                  
155. 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)                                                       
156. 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)                         

74Changes 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.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
157. 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)                 
158. 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)                                                       
159. 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)                                              
      160. 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)                
     161. 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)                
162. 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)                                             
163. 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)                                           

       Costs Credit Programs (133 - 180)      Yes, No or N/A    Explanation   
164. 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)
165. 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)                                    
166. 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)                               
167. 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)                                    
    168. 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)                               

     Costs Credit Programs (133 - 180)      Yes, No or N/A      Explanation   
169. 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)                                         
170. 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)                                                   
    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)
171. If pre-1992 or post-1991 direct                       
loans are modified, is the excess of                       
the premodification value75 over the                       
postmodification value 76 recognized                       
as a modification expense? (SFFAS 2,                       
par. 45 & app. B, parts I D (1-3) & II                     
B (1-3))                                                   

75This is the present value of the net cash inflows estimated under
premodification terms discounted at the current Treasury
rate.
76This is the present value of the net cash inflows estimated under
postmodification terms discounted at the current Treasury
rate.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
172. 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?77 (SFFAS 2, par. 48 &                    
app. B, parts I D (4 & 5) & II B (4 & 5))                      
173. 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?78 (SFFAS 2, par. 48 &                    
app. B, parts I D (4 & 5), & part II B (4 & 5))                
    174. If pre-1992 or post-1991 loan guarantees                 
         are modified, is the excess of the                       
        postmodification liability79 over the                     
    premodification liability 80 recognized as a                  
modification expense? (SFFAS 2, par. 49 & app.                 
         B, parts III D (1-3), & IV B (1-3))                      
      175. 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))                      
      176. 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))                              
177. If the premodification value of post-1991                 
and pre1992 loans sold81 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))                                          

77A 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)
78A 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)
79This is the present value of the net cash flows under postmodification
terms discounted at the current Treasury rate.
80This is the present value of the net cash flows under premodification
terms discounted at the current Treasury rate.
81This is the present value of the loans' net cash inflows discounted at
the current discount rate.

          Costs Credit Programs (133 - 180)        Yes, No or N/A Explanation 
178. 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)                                  
179. 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))                             
180. 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))                                

The 39 questions in this section are related to the Statement of Changes
in Net Position

Question Numbers

1. General 1 -5

2. Budgetary Financing Sources 6 - 22

3. Other Financing Sources 23 -39

                General (1 - 5)               Yes, No or N/A    Explanation   
           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 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)                           

                   General (1 - 5)                 Yes, No or N/A Explanation 
2. 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)                       
3. When errors 82 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)                                                  

82Errors 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.

                   General (1 - 5)                 Yes, No or N/A Explanation 
4. 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))                                        
5. If changes in accounting principles 83 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 period84 (SFFAS                   
21, par. 12 & 13; SFFAS 23, par. 17 & 18)                      

83A 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. 84Financial statements of subsequent periods need
not repeat the disclosure.

      Budgetary Financing Sources (6 - 22)     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 485 "Instructions on Budget
             Execution," as amended. (OMB Bulletin 01-09, p. 36, section 5.4)
6. Do budgetary "appropriations received"86                
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)                        
7. Are unexpended appropriations reduced as                
appropriations are used? (SFFAS 7, par. 71)                
8. Are unexpended appropriations adjusted                  
for other changes in budgetary resources,                  
such as rescissions and transfers? (SFFAS                  
7, par. 71)                                                
    9. 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)                         
    10. Do "other adjustments87 (rescissions,                 
etc.) (+/-)" include adjustments to either                 
       cumulative results of operations or                    
    unexpended appropriations? (OMB Bulletin                  
           01-09, p. 36, section 5.4)                         
    11. 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)                         

85OMB Circular No. A-11 superceded OMB Circular No. A-34 in June 2002 and
was revised on July 25, 2003.
86Appropriations 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)
87Some 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.

        Budgetary Financing Sources (6 - 22)       Yes, No or N/A Explanation 
12. Are "appropriations used" recognized as a                  
financing source when goods and services are                   
received or when benefits and grants are                       
provided?88 (SFFAS 7, par. 72; OMB Bulletin                    
01-09, p. 36, section 5.4)                                     
13. 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)                       
14. Do "appropriations 89 used" exclude the                    
following? a. undelivered orders b. unobligated                
appropriations c. dedicated tax receipts,                      
earmarked receipts, and donations 90 (OMB                      
Bulletin 01-09, p. 36, section 5.4)                            
     15. Is nonexchange revenue recognized as a                   
     financing source (and not as a deduction in                  
determining the net cost of operations)? (SFFAS                
                     7, par. 60)                                  
16. Does the entity recognize nonexchange                      
revenues, such as taxes, if it is legally                      
entitled to the revenue? (SFFAS 7, par. 48 &                   
49)                                                            

88This 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.
89Appropriations 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.
90Those financing sources are reported as either exchange or nonexchange
revenue.

        Budgetary Financing Sources (6 - 22)       Yes, No or N/A Explanation 
17. 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)                         
     18. 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)                           
19. 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)                            
20. Do "transfers-in/out without reimbursement                 
     (+/-)" under "budgetary financing sources"                   
     include intragovernmental nonappropriated91                  
balance transfers in or out during the current                 
     reporting year? (OMB Bulletin 01-09, p. 37,                  
                    section 5.4)                                  
21. 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)                  

91Nonappropriated balances include financing sources and revenue not
reported as unexpended appropriations.

        Budgetary Financing Sources (6 - 22)       Yes, No or N/A Explanation 
     22. 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)                           

          Other Financing Sources (23 - 39)        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)
       23. Do the items reported in the "other                    
    financing sources" section equal the amounts                  
    reported as similar line items in the "other                  
      resources"92 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)                           
24. 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)                        
25. 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? 93 (SFFAS                
7, par. 74; OMB Bulletin 01-09, p. 37, section                 
5.5)                                                           
26. When assets 94 are transferred in or out by                
     entities without reimbursement: a. Does the                  
receiving entity recognize the transferin 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)                      

92Other 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 No. A-11
superceded OMB Circular No. A-34 in June 2002
and was revised on July 25, 2003.
93FASAB Technical Bulletin 2003-1 offers specific guidance dealing with
transfers arising from the creation of the Department of
Homeland Security and other transfers of operations between federal
entities directed by the Homeland Security Act of 2002.
94This amount includes intragovernmental transfers in to or out of
capitalized assets during the current reporting year.

          Other Financing Sources (23 - 39)        Yes, No or N/A Explanation 
     27. 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)                              
28. 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)                           
29. 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)                                      
30. 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)                   
31. Is a gain95 from the modification96 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))                               
      32. Is a loss97 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))                   

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

          Other Financing Sources (23 - 39)        Yes, No or N/A Explanation 
33. Is a gain98 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))                                                         
34. Is a loss99 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))                    
    35. 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))                                
36. 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))                                
37. 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)                                      
38. 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)                                     

98The excess of the cost of the modification over the increase in
liability discounted at the Treasury rate. 99The excess of the increase in
liability, discounted at the Treasury rate, over the cost of the
modification.

          Other Financing Sources (23 - 39)        Yes, No or N/A Explanation 
39. 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)                

The 27 questions in this section concern the 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 No. A11,100                    
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 disaggregated101 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)                                                       

100OMB Circular No. A-11 superceded OMB Circular No. A-34 in June 2002 and
was revised on July 25, 2003. 101Small budgetary accounts may be
aggregated.

      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)                                      

      Statement of Budgetary Resources (1 - 27)    Yes, No or N/A Explanation 
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)                                                       

      Statement of Budgetary Resources (1 - 27)    Yes, No or N/A Explanation 
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"102 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)                                                       

102Appropriations 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.

      Statement of Budgetary Resources (1 - 27)    Yes, No or N/A Explanation 
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)                 
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.                 
obligated 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 receipts103 (OMB                    
     Bulletin 01-09, p. 40, section 6.3 & p. 42,                  
                    section 6.4)                                  

103Offsetting 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.

    Statement of Budgetary Resources (1 -    Yes, No or N/A     Explanation   
                     27)                                      
16. Do the outlays104 reported in                          
"Relationship of Obligations to                            
Outlays" section agree with the agency                     
outlay totals reported in the Budget of                    
the United States Government?105 (OMB                      
Bulletin 01-09, p. 43, section 6.7)                        
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 basis106 as                       
per OMB Circular No. A-11?107 (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?108 (OMB Bulletin 01-09, p. 44,                     
                section 6.7)                                  

104Outlays consist of disbursements net of offsetting collections.
105That is, do the outlays agree with the aggregate of the outlays for
accounts within the Budget of the United States
Government?
106Agencies report their disbursements and collections using the SF 224,
Statement of Transactions; SF 1219, Statement of
Accountability; and SF 1220, Statement of Transactions.
107OMB Circular No. A-11 superceded OMB Circular No. A-34 in June 2002 and
was revised on July 25, 2003.
108A list of distributed offsetting receipt accounts can be found in the
Treasury Annual Report Appendix, Part 4, Other
Information.

        Statement of Budgetary Resources (1 - 27)      Yes, No or Explanation 
                                                          N/A     
    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)                         
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?109 (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 outlays110 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)            

109Agencies use the SF 224, Statement of Transactions; SF 1219, Statement
of Accountability; and SF 1220, Statement of
Transactions.
110Net outlays are equal to gross outlays less offsetting collections and
receipts.

      Statement of Budgetary Resources (1 - 27)    Yes, No or N/A Explanation 
24. Does the entity disclose the amount of                     
direct and reimbursable obligations incurred                   
against amounts apportioned under category111                  
"A," "B," and "exempt from apportionment"? (OMB                
Bulletin 01-09, p. 93, section 9.27)                           
25. Does the disclosure of the amount of direct                
and reimbursable obligations incurred against                  
amounts apportioned under category112 "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)                                                          

111Apportionment categories are to be determined in accordance with
guidance provided in OMB Circular No. A-11, Part 4,
Instructions on Budget Execution, which superceded Circular No. A-34.
112Apportionment categories are to be determined in accordance with
guidance provided in OMB Circular No. A-11, Part 4
Instructions on Budget Execution, which superceded Circular No. A-34.

      Statement of Budgetary Resources (1 - 27)    Yes, No or N/A Explanation 
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 Government113 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)                                        

  113FASAB Technical Bulletin 2002-2 indicates what disclosures should be made
 when the entity issues financial statements for a given year before the Budget
 of the United States Government with actual budget numbers for the same fiscal
                               year is published.

      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)                                            

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

Resources Used to Finance Activities    Yes, No or N/A      Explanation    
                  (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-11114 and 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)
1. Is the budgetary information used                      
to calculate net obligations115 in                        
the "Resources Used to Finance                            
Activities" section of the                                
Consolidated Statement of Financing,                      
presented on a combined basis116 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)                                              

114OMB Circular No. A-11, Part 4, Instructions on Budget Execution, has
superceded OMB Circular No A-34. 115The 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." 116A
combined basis means the aggregation of account-level information as
opposed to a consolidation that implies the elimination of inter-account
transactions.

    Resources Used to Finance Activities (1 - 8)   Yes, No or N/A Explanation 
2. Does the amount reported as "obligations                    
incurred" equal the obligations incurred117                    
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 offsetting118 collections and                             
recoveries"119 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)                                                   
5. Does the amount reported as "less:                          
offsetting receipts" equal the offsetting                      
receipts120 line item as reported on the                       
Statement of Budgetary Resources? (OMB Bulletin                
01-09, p. 48, section 7.3)                                     
6. Do "net obligations"121 equal the difference                
between "obligations net of offsetting                         
collections and recoveries" and "offsetting                    
receipts?" (OMB Bulletin 01-09, p. 48, section                 
7.3)                                                           

117This 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)
118"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)
119Recoveries 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)
120Offsetting 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)
121Net obligations reflect obligations incurred net of offsetting
collections, recoveries, and offsetting receipts.

    Resources Used to Finance Activities (1 - 8)   Yes, No or N/A Explanation 
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 obligations                
122 and net other (nonbudgetary) resources used                
to finance activities? (OMB Bulletin 01-09, p.                 
                  46, section 7.2)                                

122One 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.

    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 (+/-),"123                         
       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)                                      

123This 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)

Resources Used to Finance Items Not Part of the Yes, No or N/A Explanation 
           Net Cost of Operations (9 - 14)                        
10. Does the line item, "resources that fund                   
expenses recognized in prior periods,"124                      
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)                                                           
11. Do the line items included under "budgetary                
offsetting collections and receipts that do not                
affect net cost of operations" reflect                         
offsetting collections and receipts125 that are                
not reported as exchange revenue in the                        
Statement of Net Cost? (OMB Bulletin 01-09, pp.                
48 & 49, section 7.4)                                          

124This 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) 125Examples 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)

Resources Used to Finance Items Not Part of the Yes, No or N/A Explanation 
           Net Cost of Operations (9 - 14)                        
12. Does the line item, "resources that finance                
the acquisition of assets," reflect budgetary                  
resources obligated126 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," activities 127 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)                

126An example of this activity is the purchase of capital assets. (SFFAS 7
Implementation Guide (April 2002), par. 62) 127This 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.

Components of the Net Cost of Operations                                   
that Will Not Require or Generate          Yes, No or N/A    Explanation
Resources in the Current Period (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 increase128 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?129 (OMB                   
Bulletin 01-09, p. 50, section 7.5)                         
18. Are these credit subsidy reestimates                    
      reflected as liabilities covered by                      
     budgetary resources?130 (OMB Bulletin                     
          01-09, p. 50, section 7.5)                           

128An 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)
129The 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)
130Budget authority to fund reestimates is permanent and indefinite and no
further congressional action is needed to provide the
resources.

Components of the Net Cost of Operations that                              
Will Not Require or Generate Resources in the   Yes, No or N/A Explanation
Current Period (15- 24)                                        
    19. Does the line item, "increase in exchange                 
    revenue receivable from the public," include                  
    exchange revenue recognized as a component131                 
    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 assets132 or amortization of liabilities133                 
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                   
recognized134 during the revaluation of assets                 
     or liabilities? (OMB Bulletin 01-09, p. 50,                  
                    section 7.6;)                                 

131Absent 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)
132Budgetary 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)
133Budgetary 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)
134Gains are shown as a negative; losses are shown as a positive.

Components of the Net Cost of Operations that                              
Will Not Require or Generate Resources in the   Yes, No or N/A Explanation
Current Period (15- 24)                                        
23. Does the entity report as "other" under the                
section "components not requiring or generating                
resources," all other expenses135 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)                                     

135An example of this would be default expenses of pre-credit reform (or
pre-1992) loans.

          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, 136 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)                                       

            136See OMB Circular No. A-11, sections 20.4 (l) and 71.6

The 27 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
Other Accompanying Information 20 - 27

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

           Sources of Collections (3- 10)          Yes, No or N/A Explanation 
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 collections137                
based on amounts actually received during the                  
fiscal period including withholdings, estimated                
payments, final payments, and collections of                   
receivables? (SFFAS 7, par. 50 & 59)                           

137Cash 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.

           Sources of Collections (3- 10)          Yes, No or N/A Explanation 
      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 offsets 138 and                
          drawbacks?139 (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,140 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)                                     

138Refund offsets are amounts withheld from refunds on behalf of other
agencies and paid to such agencies.
139Drawbacks are refunds of duties paid on imported goods that are
subsequently exported or destroyed.
140Accrual 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.

         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)                      

                Disclosures (16- 19)               Yes, No or N/A Explanation 
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)                          

        Dedicated Collection 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)                                                       

     Dedicated Collection and Other Accompanying   Yes, No or N/A Explanation 
                Information (20- 27)                              
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)                          

     Dedicated Collection and Other Accompanying   Yes, No or N/A Explanation 
                Information (20- 27)                              
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)                      
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)                         

     Dedicated Collection and Other Accompanying   Yes, No or N/A Explanation 
                Information (20- 27)                              
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)                                                  

The five questions in this section are related to the disclosure of significant
                              accounting policies.

        Notes to Financial Statements (1- 5)       Yes, No or N/A Explanation 
     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)                 

The questions related to the Supplementary Information are organized in
the following eight 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

See Section XI for Social Insurance Information

     Required Supplementary Stewardship                                       
      Information: Property, Plant, &       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)                                             

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
        Property, Plant, & Equipment (1 - 14)                     
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 land141 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)                                              

141Land 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.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
        Property, Plant, & Equipment (1 - 14)                     
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)                                                         
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)                             

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
        Property, Plant, & Equipment (1 - 14)                     
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)                                    
     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.                   
     disclosed142 as "cost of stewardship land"                   
      (SFFAS 6, par. 69 & 73; SFFAS 8, par. 80)                   

  142Disclosure 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.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
        Property, Plant, & Equipment (1 - 14)                     
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 use 143                  
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)                   

143Where parcels of stewardship land have more than one use, the
predominant use of the land shall be considered the major use.

     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. 144 human capital: expenses incurred
for programs for education and training of the public145 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)                     

144Grants for maintenance and operations are not considered investments in
nonfederal physical property. 145The definition excludes education and
training expensed for federal civilian and military personnel.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
          Stewardship Investments (15 - 42)                       
      17. Are expenses incurred for nonfederal                    
physical property program costs, contracts, or                 
grants with split purposes 146 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)                   

146An 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.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
          Stewardship Investments (15 - 42)                       
    23. If neither historical expense nor outlay                  
    data are available on 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                 
purposes 147 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)                                   

147An example of an investment with a split purpose is a grant issued to a
teaching hospital for both medical education and medical research.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
          Stewardship Investments (15 - 42)                       
    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)                     
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 purposes 148 reported in RSSI on the                
    basis of a logical allocation? (SFFAS 8, par.                 
                         98)                                      

148ibid.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
          Stewardship Investments (15 - 42)                       
     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)                                    
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 data 149 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)                     

149In 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.

Required Supplementary Stewardship Information: Yes, No or N/A Explanation 
          Stewardship Investments (15 - 42)                       
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)                                  
    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?150                
            (SFFAS 8, par. 88, 95, & 101)                         

             150This reporting is encouraged, but is not required.

      Required Supplementary Information: Risk     Yes, No or N/A Explanation 
              Assumed Information (43)                            
       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)                   

    Required Supplementary Information: Custodial  Yes, No or N/A Explanation 
                 Activity (44 - 45)                               
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)                     

     Required Supplementary Information: Segment   Yes, No or N/A Explanation 
                Information (46 - 47)                             
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)                                             

         Required Supplementary Information:       Yes, No or N/A Explanation 
Management's Discussion and Analysis (48 - 61)                 
    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)                                  

         Required Supplementary Information:       Yes, No or N/A Explanation 
Management's Discussion and Analysis (48 - 61)                 
     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)                              

         Required Supplementary Information:       Yes, No or N/A Explanation 
Management's Discussion and Analysis (48 - 61)                 
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)                                 

         Required Supplementary Information:       Yes, No or N/A Explanation 
Management's Discussion and Analysis (48 - 61)                 
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)                                  

      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)                                                       
    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)

    Required Supplementary Information: Deferred   Yes, No or N/A Explanation 
                Maintenance (62 - 65)                             
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)                                                    
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                  
a. 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 b. the                    
dollar amount of maintenance actually performed                
during the period c. the difference between the                
forecast and actual maintenance d. any                         
adjustments to the scheduled amounts deemed                    
necessary by the managers of the PP&E e. the                   
ending cumulative balance for the reporting                    
period for each major class of asset                           
experiencing deferred maintenance (SFFAS 6,                    
par. 83)                                                       

    Required Supplementary Information: Deferred   Yes, No or N/A Explanation 
                Maintenance (62 - 65)                             
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)                                             

         Required Supplementary Information:       Yes, No or N/A Explanation 
         Intragovernmental Amounts (66 - 78)                      
    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)                          

         Required Supplementary Information:       Yes, No or N/A Explanation 
         Intragovernmental Amounts (66 - 78)                      
    71. Are all intragovernmental amounts net of                  
intraentity 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?151 (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)                                   

151Reporting 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.

         Required Supplementary Information:       Yes, No or N/A Explanation 
         Intragovernmental Amounts (66 - 78)                      
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?152 (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)                                             

152The 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.

The 24 questions in this section are related to social insurance programs
                              covered by SFFAS 17.

    Social Insurance Programs (1 -      Yes, No or N/A        Explanation     
                  24)                                      
         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) On July 17, 2003, FASAB
        issued SFFAS 25, Reclassification of Stewardship Responsibilities and
     Eliminating the Current Services Assessment. For periods beginning after
September 30, 2004, the information required by paragraphs 27(3) and 32(3)
        of SFFAS 17 (checklist questions 17-20 below) shall be presented as a
    basic financial statement and other social insurance information shall be
         presented as Required Supplementary Information (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. FASAB issued an exposure draft in March 2004, which would
    amend SFFAS 25 to make the significant assumptions underlying projections
           and estimates (other information required by SFFAS 17)153 required
      disclosures to the social insurance basic financial statement. Although
     earlier implementation is encouraged, for periods ending as of or before
    September 30, 2004, all social insurance information required by SFFAS 17
can be presented as Required Supplementary Stewardship Information (RSSI).

153As discussed in checklist question 5 below.

         Social Insurance Programs (1 - 24)        Yes, No or N/A Explanation 
1. 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 status 154? (SFFAS 17,                 
     par. 24; OMB Bulletin 01-09, p.104, section                  
                        10.B)                                     
2. 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)                                 
3. 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)                       
    4. Are projections and estimates based on the                 
     entity's best estimates of demographic and                   
      economic assumptions? (SFFAS 17, par. 25)                   
       5. Does the entity disclose significant                    
      assumptions used in making estimates and                    
          projections? (SFFAS 17, par. 25)                        
6. 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)                                            
     7. Does the entity consistently follow this                  
    valuation date from year to year? (SFFAS 17,                  
                      par. 26)                                    

154This is the status of a program based on statistical calculations and
actuarial assumptions about future economic, demographic, and other
conditions and events.

                                                       Yes, No or Explanation 
           Social Insurance Programs (1 - 24)             N/A     
8. 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))                          
      9. 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))             
       10. 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))                                
11. 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                    
"crossover points")? (SFFAS 17, par. 27 (1) (a))               
12. 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))                           
13. 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))                                    
    14. 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))               

         Social Insurance Programs (1 - 24)        Yes, No or N/A Explanation 
15. 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))                                                        
16. 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))                                    

         Social Insurance Programs (1 - 24)        Yes, No or N/A Explanation 
17. 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?155 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 period156 (SFFAS 17,                
par. 27 (3) (a)-(g); OMB Bulletin 0109, p. 104,                
section 10.4B)                                                 

155For 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)
156Cash flow during the projection period is derived from subtracting the
actuarial present value of future contributions and tax
income during the projection period (17b above) from the actuarial present
value of future expenditures for the projection
period (17a above).

         Social Insurance Programs (1 - 24)        Yes, No or N/A Explanation 
       18. 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?157 (SFFAS 17, par. 27 (3) (h))                 
19. 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?158 (SFFAS 17,                    
par. 27 (3) (i))                                               
20. 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?159 (SFFAS 17, par. 27 (3) (j))                
21. 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))                                           
22. 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))                 

157For 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)
158ibid.
159ibid.

         Social Insurance Programs (1 - 24)        Yes, No or N/A Explanation 
23. 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)                                                 
24. Does information on the UI program provide                 
a stateby-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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