Catalogue of Federal Insurance Activities (04-MAR-05,		 
GAO-05-265R).							 
                                                                 
The federal government assumes insurance risk for a wide range of
activities that are funded through numerous federal budget	 
accounts and administered by a variety of federal organizations. 
For some activities, such as those funded through the National	 
Flood Insurance account, the federal government assumes the	 
entire insurance risk. The federal government also assumes part  
of the risk for insurance activities that are administered by	 
state and local governments--for example, those funded through	 
the Unemployment Trust Fund or that are partly underwritten by	 
private insurers, such as those funded through the Special	 
Workers' Compensation Expenses account. These insurance risks,	 
whether fully or partially assumed by the federal government, are
in lines of insurance that private insurers also recognize:	 
health, life, disability, and property/casualty insurance. The	 
federal government has generally assumed insurance risks for at  
least two reasons. First, the government may step in when	 
insurance is not widely available because private insurers cannot
collectively absorb or affordably price the insurance risk. For  
example, when private insurers were unable to offer affordable	 
terrorism insurance in the aftermath of September 11, 2001, the  
federal government created a terrorism insurance program. Second,
the federal government has self-insured--that is, elected to pay 
for losses itself when it has determined that doing so is	 
preferable to purchasing insurance in the private market. For	 
example, the government has self-insured for risks associated	 
with legal settlements and awards to resolve property damage	 
claims, employment litigation, and contract disputes, even though
recognized lines of private insurance could cover these risks.	 
Federal insurance activities can be difficult to identify in part
because no generally accepted definition of federal insurance	 
exists. They may also be difficult to identify because they may  
be funded through budget accounts with names and primary	 
activities that are not directly related to federal insurance.	 
For example, the Health Resources Services Administration of the 
Department of Health and Human Services, has a Medical		 
Malpractice Claims Fund that provides medical liability insurance
to physicians at federal health centers. This fund is part of the
administration's much larger Health Resources and Services	 
account, whose primary mission is to provide various		 
non-insurance health services to low-income individuals. The	 
malpractice claim fund's fiscal year 2003 outlays of $23 million 
were a small part of the overall account's outlays of $6.1	 
billion. Finally, federal insurance activities can be difficult  
to identify because their costs may be integrated in the account 
that funds overall agency operations. As part of the committee's 
in-depth review of insurance regulation, Congress asked us for	 
information on federal insurance activities. On the basis of that
request and subsequent discussions with committee staff, this	 
report (1) provides criteria for identifying federal insurance	 
activities and (2) describes federal insurance activities that	 
meet these criteria.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-05-265R					        
    ACCNO:   A18878						        
  TITLE:     Catalogue of Federal Insurance Activities		      
     DATE:   03/04/2005 
  SUBJECT:   Comparative analysis				 
	     Disability insurance				 
	     Eligibility criteria				 
	     Federal fund accounts				 
	     Federal funds					 
	     Health insurance					 
	     Insurance						 
	     Insurance regulation				 
	     Life insurance					 
	     Private sector practices				 
	     Risk management					 
	     Federal Insurance					 

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GAO-05-265R

United States Government Accountability Office Washington, DC 20548

March 4, 2005

The Honorable Michael G. Oxley
Chairman
Committee on Financial Services
House of Representatives

Subject: Catalogue of Federal Insurance Activities

Dear Mr. Chairman:

The federal government assumes insurance risk for a wide range of
activities that are funded through numerous federal budget accounts and
administered by a variety of federal organizations.1 For some activities,
such as those funded through the National Flood Insurance account, the
federal government assumes the entire insurance risk. The federal
government also assumes part of the risk for insurance activities that are
administered by state and local governments-for example, those funded
through the Unemployment Trust Fund or that are partly underwritten by
private insurers, such as those funded through the Special Workers'
Compensation Expenses account. These insurance risks, whether fully or
partially assumed by the federal government, are in lines of insurance
that private insurers also recognize: health, life, disability, and
property/casualty insurance.

The federal government has generally assumed insurance risks for at least
two reasons. First, the government may step in when insurance is not
widely available because private insurers cannot collectively absorb or
affordably price the insurance risk. For example, when private insurers
were unable to offer affordable terrorism insurance in the aftermath of
September 11, 2001, the federal government created a terrorism insurance
program. Second, the federal government has self-insured-that is, elected
to pay for losses itself when it has determined that doing so is
preferable to purchasing insurance in the private market. For example, the
government has self-insured for risks associated with legal settlements

1Insurance risk, as used in this report, is the exposure to potential net
financial loss resulting from being required to make payments under the
terms of an insurance program or activity.

and awards to resolve property damage claims, employment litigation, and
contract disputes, even though recognized lines of private insurance could
cover these risks.

Federal insurance activities can be difficult to identify in part because
no generally accepted definition of federal insurance exists. They may
also be difficult to identify because they may be funded through budget
accounts with names and primary activities that are not directly related
to federal insurance. For example, the Health Resources Services
Administration of the Department of Health and Human Services, has a
Medical Malpractice Claims Fund that provides medical liability insurance
to physicians at federal health centers. This fund is part of the
administration's much larger Health Resources and Services account, whose
primary mission is to provide various non-insurance health services to
low-income individuals. The malpractice claim fund's fiscal year 2003
outlays of $23 million were a small part of the overall account's outlays
of $6.1 billion. Finally, federal insurance activities can be difficult to
identify because their costs may be integrated in the account that funds
overall agency operations.

As part of the committee's in-depth review of insurance regulation, you
asked us for information on federal insurance activities. On the basis of
your request and subsequent discussions with committee staff, this report
(1) provides criteria for identifying federal insurance activities and (2)
describes federal insurance activities that meet these criteria.

We used two criteria to identify federal insurance activities. First, the
federal government must accept the risk of financial loss in providing
protection against specific types of losses, events, or conditions whose
timing, magnitude, or duration, are uncertain or unknown.2 Second, by
accepting this insurance risk, the federal government must be obligated to
pay compensation or provide benefits if the losses, events, or conditions
occur. In addition, we verified that the activities we catalogued as
federal insurance were also recognized lines of insurance in the private
sector. However, we found that federal insurance differed from private
sector insurance in a number of ways:

2The government's protection and obligation may extend to past events
having potential adverse effects that are not immediately known. For
example, coal miners exposed to coal dust and adverse mining conditions,
whether before or after the creation of the Black Lung Disability program,
are covered if they eventually develop black lung disease.

o  Those covered by federal insurance need not pay premiums;3

o  	For many federal insurance activities, such as those serving a
nationwide population, the federal government need not identify a risk
pool for pricing its risk because the pool of insureds will be
sufficiently large and diverse;4

o  	The insureds need not be policyholders or enrolled in the insurance
activity before the loss, event, or condition occurs for which
compensation or benefits are available;

o  	A contract need not exist between the insured or a group of insureds
and the insurer;

o  	Financial resources need not be set aside or specifically designated
for paying compensation or benefits;

o  	The federal government may be the backup or secondary source rather
than the initial source of compensation or benefit payments; and

o  	The federal government is assumed to have an insurable interest
through the legislation authorizing the insurance activity.

Some of the federal insurance activities that we have identified are
directly comparable to private sector insurance, and a consensus will
likely exist that they constitute federal insurance. Other activities that
we categorize as insurance are sometimes identified by others as benefit
programs or social insurance, because they serve groups with particular
risks that are

3Insurance premiums are collected to cover the insurer's cost of providing
insurance coverage. The premium is calculated by dividing the estimated
potential loss associated with the activity during the period of coverage
by the estimated size of the insured population, or risk pool. Therefore,
the risk of loss to the insurer when a premium is charged is the risk of
under-pricing the insurance premium. However, when a premium is not
charged-as in the case of some federal insurance-the risk of loss is the
entire potential loss associated with the insured activity.

4Unlike the federal government, private insurers must determine whether
the pool of potential policyholders is sufficiently large and diverse for
pricing risk when deciding whether to offer insurance in a market. But
unlike private insurers, the federal government typically considers not
only financial profitability, but also the benefit to the public when
deciding whether to offer federal insurance. Since the government has
determined that providing insurance represents a "social good" the
decision not to charge a full premium to insureds (or indeed any premium
in some cases) can be viewed as a decision to spread the risk of loss
across the entire population through the tax revenue.

uninsurable or underinsured in the private insurance market. For example,
one such activity is the State Children's Health Insurance Fund, which
provides health insurance for children in low-income families. We have
included this activity in our catalogue because it meets our criteria for
federal insurance, and health insurance is a recognized line of insurance
in the private market. In addition, we have included federal defined
benefit retirement plans in our catalogue of federal insurance activities
because they provide beneficiaries or their survivors with guaranteed
income (or income protection) for life. These plans expose the government
to insurance risk and the benefits are equivalent to private annuities, a
commonly recognized insurance product. Finally, we include in enclosure IV
a number of activities that we label "self-insurance," where the
government assumes the risk of loss that arises from some of its own
activities. For example, claims against an agency for damage caused to
property or vehicles incident to the agency's mission, or exposure to
litigation costs arising from employment discrimination or contract
disputes. Because the timing, magnitude, or duration of these losses are
uncertain, and because in the private sector, it would be possible to
purchase insurance against them, we have included them in a separate
listing.

Examining two types of activities that did not meet our criteria for
federal insurance helps to further clarify our criteria for federal
insurance. First, activities under the Employees Life Insurance Fund and
the Federal Long Term Care Insurance Program do not meet our criteria for
federal insurance because the federal government does not assume the
insurance risk itself. Rather, the government facilitates the payment of
premiums to private insurers that assume the risk. Second, disaster relief
programs appear to serve an insurance-like function in that the federal
government may provide assistance to communities and individuals to
compensate them for losses following natural disasters such as hurricanes
and tornados. However, because the federal government can elect whether to
provide assistance, disaster relief does not qualify as federal insurance.
Specifically, the governor of a state in which a disaster has occurred
must ask the President to declare an area a disaster site, and the
government provides assistance only if the President issues a formal
declaration.

We developed our catalogue of federal insurance activities through a
review of the federal budget and other sources. Other criteria and search
methods could yield federal activities that may not be in our catalogue.

For example, financial protection against liability for injury or damage
caused by nuclear energy hazards provided by Section 4 of the Atomic
Energy Damages Act (also known as the Price-Anderson Act)5 and American
Nuclear Insurers is not part of our catalogue. Even though the federal
government assumes part of the risk of potentially paying for claims in
the event of nuclear injury or damage, Price-Anderson insurance activities
are not part of our catalog because claims stipulated by the act have not
represented a cost to the federal government and therefore were not
identified in the course of our budget search for federal insurance
activities. The activities that meet our criteria are described in
enclosures II-V. The information provided for each activity varies
depending on whether the activity is insurance that covers entities other
than the federal government (enclosure II), the activity can be
categorized as federal deposit insurance, federal pension insurance, or a
federal loan guarantee (enclosure III); or the activity is federal
self-insurance (enclosure IV). All quantitative data are for fiscal year
2003, unless otherwise indicated.

More specifically, enclosure I contains a complete description of our
scope and methodology. Enclosure II describes 71 activities that provide
federal insurance to entities other than the federal government. We
provide the most comprehensive information for these activities because of
your particular interest in understanding the scope of the federal
government's efforts to provide insurance to nonfederal entities and a
general lack of familiarity with many of the activities the enclosure
describes. Enclosure III lists 64 federal deposit insurance, pension
guaranty insurance, and loan guarantee activities that also provide
federal insurance to entities other than the federal government. We
provide descriptions of each of these three insurance categories rather
than of the individual activities because the activities in each category
tend to be similar and because these activities are generally better
known. Enclosure IV describes the 22 federal self-insurance activities we
identified that had outlays in fiscal year 2003. Because of limitations in
our methodology, we likely did not identify all federal self-insurance
activities (see enclosure I). We were also limited in our efforts to find
information on these activities because, as we have noted, the federal
budget does not generally report self-insurance activities separately from
those related to an agency's overall mission. Finally, to provide a
perspective on the diversity of the 157 insurance activities that we
identified and the 30 federal organizations that administer them,
enclosure V lists all the activities presented in the

5Codified at 42 U.S.C. S: 2210.

report, alphabetically by the administering organization. Enclosure VI
lists
key contributors to this correspondence.

It should be noted that, although we relied extensively on federal
budgetary information published by the Office of Management and Budget
(OMB), our project was not an audit of the federal budget process nor of
OMB but simply a search for and compilation of information on federal
insurance activities.

We did our work between January 2004 and March 2005, in Chicago, Ill.,
and Washington, D.C. in accordance with generally accepted government
auditing standards. Enclosure I contains a complete description of our
scope and methodology.

As agreed with your office, unless you publicly announce the contents of
this report earlier, we plan no further distribution until 30 days from
the
date of this letter. At that time we will send copies of this report to
the
Honorable Barney Frank, Ranking Member, Committee on Financial
Services and other interested parties. We will also make copies available
to others on request. In addition, the report will be available at no
charge
on the GAO Web site at http://www.gao.gov.

If you or your staff have any questions about this report, please contact
me
at (202) 512-8678 or [email protected]. Key contributors to this report are
listed in enclosure VI.

Richard J. Hillman
Director, Financial Markets and

Community Investment

                       Enclosure I: Scope and Methodology

To provide criteria for identifying federal insurance activities, we
reviewed the Federal Accounting Standards Advisory Board's (FASAB)
Statement of Federal Financial Accounting Standards Number 5, "Accounting
for Liabilities of the Federal Government." The statement discusses
characteristics of federal insurance, including risk assumption, loss
protection, and compensation payment that became central elements of our
criteria for federal insurance. We also reviewed the National Association
of Insurance Commissioners' (NAIC) Annual Financial Statement Instructions
to better understand the nature of private sector insurance and how it
might be similar to or different from federal insurance.1 In addition, we
reviewed the chapter on credit and insurance in Analytical Perspectives,
Budget of the United States Government, Fiscal Year 2005 to determine what
guidance the Office of Management and Budget (OMB) offered for developing
our criteria and to identify any features the federal insurance activities
shared. Further, we reviewed the definition of insurance found in section
302 of the Gramm-Leach-Bliley Act2 to determine whether that definition
could help us identify federal insurance activities. In addition, we
consulted with FASAB, NAIC, and OMB representatives and insurance experts
at the U.S. Department of the Treasury, American Academy of Actuaries, and
Wharton School of Business to learn which criteria they would use in
identifying federal insurance and to obtain their comments on our
criteria. In our meetings with OMB officials, we also attempted to clarify
how OMB defines federal insurance for budgetary purposes.

To describe federal insurance activities that meet the criteria we
developed, we first attempted to identify the universe of such activity.
We began by asking FASAB, NAIC, and OMB representatives to share with us
any work they had done on federal insurance. They told us that their
organizations had not attempted to compile a complete list of federal
insurance accounts or activities. However, as part of our discussions, OMB
officials identified some budget accounts with activities they considered
to be federal insurance, and we included these activities in our
catalogue. In addition, we reviewed a 1997 GAO report that, as part of
exploring federal budgeting issues, also described a number of activities
that met our criteria for federal insurance and are included in our
catalogue. Next, we searched the Appendix, Budget of the United States
Government, Fiscal

1The Annual Financial Statement Instructions provide insurance companies
guidance for preparing the statements that they submit to NAIC each year.

2Codified at 15 U.S.C. S: 6712(c).

Enclosure I: Scope and Methodology

Year 2005, using key words, such as "annuity," "benefits," "catastrophic,"
"claims," "compensation," "contingency," "damages," "disability,"
"disaster," "emergency," "indemnity," "insurance," "pension,"
"reinsurance," "reserve," and "retirement." Searching the Appendix allowed
us to develop a comprehensive list of federal insurance because we could
identify accounts that had small amounts of insurance activity. For
example, we were able to identify the U.S. Department of Defense military
personnel accounts that fund death benefits for military personnel, among
other things.

Once we had identified an account through our word search, we applied our
criteria for federal insurance to descriptions of the activities funded
through the account. Our key word search ultimately allowed us to identify
two kinds of accounts. First, we identified accounts through which the
government provides insurance to entities other than the federal
government-for example, crop insurance for farmers and flood insurance for
communities. Second, we identified accounts with self-insurance outlays in
fiscal year 2003 for various kinds of damages, litigation, and claims,
such as court judgments and torts arising out of vehicle accidents and
employment discrimination.

To test the reliability of our criteria and better support our decision to
include an activity in our catalogue of federal insurance, we verified
that the insurance matched one or more lines of private sector insurance
that NAIC had identified. According to NAIC, approximately 95 percent of
private sector insurance companies use these descriptions in preparing the
annual financial statements they submit to the association. Also, to
better assure that we were consistently applying our criteria, we compared
our treatment of activities that had similar characteristics. For example,
we compared the Non-insured Crop Disaster Assistance Program activities
found in the Farm Service Agency's Salaries and Expenses account
(enclosure II, table 63) with insurance activity found in the Federal Crop
Insurance Corporation Fund (enclosure II, table 64) and observed that both
protect farmers against catastrophic loss of crops due to unavoidable
natural events. Based on our criteria, we identified both of these
activities as federal insurance.

Our catalogue of insurance activities is based solely on the criteria we
developed for this report: other criteria might yield a list that differs
from ours in both number and composition of activities. Also, alternative
methods for searching the budget or other sources might yield insurance
activities that are not included in this report. For example, we
identified numerous budget accounts with federal self-insurance activity
for fiscal

Enclosure I: Scope and Methodology

year 2003 within a category called "insurance claims and indemnities."
However, using a key word search, we could not identify all self-insurance
activities because not all budget accounts with self-insurance activities
separately break out insurance claims and indemnities for fiscal year
2003.

To describe the federal insurance activities in the accounts we identified
and in the deposit insurance, pension insurance, and loan guarantee
categories, we reviewed budget documents, agency annual reports, agency
Websites, and/or information provided by agency officials. Because 2003
was the latest year for which the Budget of the United States Government,
Fiscal Year 2005 provided actual data rather than estimates, the
quantitative data are for fiscal year 2003, unless otherwise indicated. As
a quality control, we provided a draft of each of the 95 tables in
enclosures II and IV to officials in the relevant agencies and received a
total of 82 responses. Based on the comments received, we revised the
tables as appropriate. We used budget data that the agency provided us
when that data differed from the federal budget data and when doing so
provided more precise and/or accurate information. Data from the agencies
differed from data in the federal budget in some instances when the
federal insurance activity was only a part of the overall account activity
and thus was not accounted for separately in the budget. Despite our best
efforts, the amount and quality of information on individual accounts may
vary.

Except for certain federal loan guarantees (discussed below), the
activities are identified by the name of the budget account that funds
them. Enclosure II describes activities that provide federal insurance to
entities other than the federal government. Some overlap exists among
categories found in the enclosure because several of the retirement
annuity activities are funded from accounts that also contain disability,
health, and life insurance. Although some of these activities provide
retirement, health, and disability benefits for federal employees, their
beneficiaries, and survivors we included the activities here because they
benefit federal employees and others whom we defined as separate from the
federal government. In contrast, we cataloged activities involving legal
settlements that agencies pay to other entities as self-insurance
(enclosure

IV) because the agencies make these payments to protect their own
financial self-interests. For example, if an agency pays another entity in
settlement for a claim from an accident involving a federal employee
driving an agency vehicle, the employee would be an agency representative,
and the payment would comprise a federal self-insurance expenditure.

Enclosure I: Scope and Methodology

Enclosure III lists federal deposit insurance, pension guaranty insurance,
and loan guarantee activities that also provide federal insurance to
nonfederal entities. For a perspective on the relative sizes and activity
levels of the various accounts, we provided outlays, obligated balances,
and unobligated balances for federal deposit insurance and federal pension
guaranty insurance. For guaranteed loan activities, we provided data on
the amount of federal loan guarantees outstanding. Enclosure IV describes
the activities that we identified with expenditures for federal
self-insurance in fiscal year 2003-that is, federal agency costs for
damages to government property and losses associated with litigation and
claims, including compensation for employment discrimination. Less
information is available on the activities in this enclosure than on those
in enclosure II because the federal budget does not generally report or
fund self-insurance activities separately from those related to an
agency's overall mission. Because of a lack of detailed budget
information, the quantitative data were generally provided by agency
officials. For example, outlays differ from the total outlays (gross)
reported in enclosure II, as the data in enclosure II are directly from
the budget. Enclosure V provides a complete list of insurance activities
identified for this report, listed by the responsible agency.

We have included the financial data described above, particularly that on
total outlays by activity, as well as obligated and unobligated balances,
in order to provide a general perspective on the level of financial
activity and resources of each federal insurance activity that we
catalogued. However, the data provide a perspective for one point in time
and therefore do not measure the long term federal costs or budgetary
impact of these insurance activities. Also the data do not measure the
exposure to insurance risk that the federal government may face in these
activities. Widely agreed upon measures of federal insurance risks are not
available or calculable in most instances.

We did our work in accordance with generally accepted government auditing
standards between January 2004 and March 2005. We performed our work in
Chicago, Ill. and Washington, D.C.

  Enclosure II: Description of Accounts Funding Federal Insurance Provided to
                   Entities Other Than the Federal Government

This enclosure describes 71 activities that provide federal insurance to
entities other than the federal government, identified by the name of the
budget account that funds them. For activities that are not primarily
insurance, or that are found in an account whose title does not suggest
the presence of insurance, we have provided additional information in
parentheses after the account name. We collected the information presented
in this enclosure from budget documents, agency officials, annual reports,
agency Web sites, or some combination of these sources. Because 2003 is
the latest year for which the Budget of the United States Government,
Fiscal Year 2005 provides actual data rather than estimates, the
quantitative data are for fiscal year 2003, unless otherwise indicated.

For each activity, we have provided a table with the following
information: (1) administering organization, (2) insurance description,
(3) funding source(s), (4) total outlays (gross), (5) obligated balance,
(6) unobligated balance, and (7) number of federal full-time equivalent
(FTE) employees. Total outlays (gross) are total fiscal year expenditures
for the account's insurance activity. Obligated balances show the
financial resources of the account at the end of the fiscal year that are
committed to specific purposes related to the insurance activity in the
coming fiscal year. Unobligated balances show the financial resources of
the account at fiscal year-end that are not yet designated for specific
purposes. The number of FTE employees is a measure of the size of the
federal workforce devoted to the account's insurance activity. Unless
otherwise indicated, FTE data are reported for the principle federal
organization administering the insurance activity and not other public or
private sector organizations that may also devote resources to the
activity. We are providing information on total outlays, obligated
balances and unobligated balances in order to give a perspective on the
budgetary impact of each activity for the year that we report. These
figures do not reflect the total cost of these activities to the federal
government over time. Moreover, they are not intended to describe the
exposure that the federal government may have to the financial risks
associated with these activities, either individually or in the aggregate,
as such information is largely unavailable. Finally, although
administrative expenses for some insurance activities were funded by
separate accounts, we did not list those accounts separately but included
the administrative expenses data along with the other data for the
particular activity in one table.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Disability, Workers, and Table 1: Black Lung Disability Trust Fund

Unemployment
Compensation Administering organization Division of Coal Mine Workers'
Compensation, Office of

Workers' Compensation Programs, and Employment

(Tables 1-10)	Standards Administration, U.S. Department of Labor, U.S.
Department of Health and Human Services, and U.S. Department of the
Treasury

Insurance description 	This account pays workers' compensation and medical
benefits to former miners who become totally disabled with pneumoconiosis
(a respiratory condition resulting from coal dust exposure that is
commonly known as black lung disease). To be eligible for payments from
this account, the disease must be work-related, the individual must have
stopped working as a miner before 1970, and it must not be possible to
assign financial liability for the miner's condition to a particular mine
operator. The fund also pays benefits to survivors if an eligible miner's
death can be attributed at least partially to the disease. Premiums are
not paid for coverage.

Funding source(s)  o  Excise taxes on mined coal and borrowings from the

                                       a

             U.S. Treasury Total outlays (gross)  o  $1,041 million

                     Obligated balance  o  -$8,205 millionb

Unobligated balance  o  $30 million

Number of FTE employees  o  214

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8144-0-7-601, p. 723; and U.S.
Department of Labor, U.S. Department of Health and Human Services, and
U.S. Department of the Treasury.

aFor the past few years annual revenues have been sufficient to pay all
annual benefits and administrative costs. Thus new borrowings from the
U.S. Treasury have been only to service interest payments on the
accumulated debt.

bThe obligated balance is negative because it includes $8,244 million in
outstanding debt to the U.S. Treasury.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 2: Disability Compensation Benefits (Veterans)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	The account pays compensation to veterans and their
survivors for disabilities that the veteran incurred or that were
aggravated during active military service. The account also pays
dependency and indemnity compensation to survivors of service persons or
veterans whose death occurred while on active duty or as a result of
serviceconnected disabilities. In addition, children of Vietnam veterans
who were born with certain birth defects are eligible for compensation and
vocational rehabilitation. Veterans with certain conditions are eligible
for a clothing allowance. Finally, the department may provide other
miscellaneous benefits to certain veterans, including automobile grants
and adaptive equipment. During fiscal year 2003, the fund paid benefits to
2,444,807 veterans, 311,813 survivors, and 1,044 children. A separate
account funds administrative expenses.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $24,705 million (benefits)

o  $713 million (administrative)

Obligated balance  o  $2,002 million (benefits)

o  $125 million (administrative)

Unobligated balance  o  $1,112 million (benefits)

o  $40 million (administrative)

Number of FTE  o  7,264 employees

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 36-0102-0-1-701 (benefits) and
36-0102-4-1-701(administrative), pp. 876-878; and U.S. Department of
Veterans Affairs.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 3: Energy Employees Occupational Illness Compensation Fund

Administering organization 	Division of Energy Employees' Occupational
Illness Compensation, Office of Workers' Compensation Programs, Employment
Standards Administration, U.S. Department of Labor

Insurance description 	This account provides benefits to federal employees
at Department of Energy facilities and employees of contractors and
sub-contractors under the Energy Employees' Occupational Illness
Compensation Program Act of 2000a suffering from certain illnesses related
to their exposure to radiation as a result of their work in producing or
testing nuclear weapons. The benefits typically cover radiation-related
cancer and lung disease (beryllium disease and silicosis) caused by
exposure to beryllium or silica. For such illnesses the account will pay
the employee a lump sum of up to $150,000 and reimbursement of medical
expenses. The account also provides smaller lump-sum payments and medical
benefits to those eligible under the Radiation Exposure Compensation Act.b
A separate account funds administrative expenses. During fiscal year 2003,
the compensation and administrative accounts received $450 million in
appropriations.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $321 million (benefits)

o  $61 million (administrative)

Obligated balance  o  $1 million (benefits)

o  $46 million (administrative)

Unobligated balance  o  $59 million (benefits)

o  $140 million (administrative)

                             FTE employees  o  380

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 16-1523-0-1-053 (benefits) and
16-1524-0-1-053 (administrative), p. 721; and U.S. Department of Labor.

aCodified at 42 U.S.C. S:S: 7384 et seq. bCodified at 42 U.S.C. S: 2210
note.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                Table 4: Federal Disability Insurance Trust Fund

Administering organization U.S. Social Security Administration

Insurance description 	The insurance pays cash benefits to those who are
unable to work due to a physical or mental impairment that lasts or can be
expected to last continuously for at least 12 months or that can be
expected to result in death. The insurance also provides benefits to
spouses, dependent minor children, and disabled dependent children of wage
earners over age 18, if the child's disability occurred before age 22 and
continues. In fiscal year 2003, 179.7 million workers were covered, or
about 78 percent of the U.S. population between the ages of 20 and 65.

Funding source(s)  o  	Social Security taxes paid by wage earners and
selfemployed individuals

Total outlays (gross)  o  $71,982 million

Obligated balance  o  $17,605 million

Unobligated balance  o  $153,188 million

                Number of FTE employees  o  Approximately 20,700

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8007-0-7-651, pp. 10811082; and U.S.
Social Security Administration.

Table 5: Public Safety Officers' Benefits

Administering organization Bureau of Justice Assistance, U.S. Department
of Justice

Insurance description 	The insurance provides death, disability, and
educational benefits for public safety officers killed or permanently and
totally disabled in the line of duty. Public safety officers include paid
and unpaid individuals serving a public agency as law enforcement
officers, firefighters, or members of a public rescue squad or ambulance
crew. The insurance also provides death benefits to eligible survivors of
public safety officers and educational assistance to children or spouses
of officers who were killed or permanently disabled in the line of duty.
In fiscal year 2003, 510 claims totaling $55.2 million were paid to
beneficiaries.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $56 million

Obligated balance  o  $5 million

Unobligated balance  o  $5 million

                 Number of FTE employees  o  6 and 1 contractor

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 15-0403-0-1-754, p. 701; and U.S.
Department of Justice.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

               Table 6: Service-Disabled Veterans Insurance Fund

Administering organization U.S. Department of Veterans Affairs

Insurance description 	The fund provides life insurance policies for
veterans who left military service after April 24, 1951 and have a
serviceconnected disability. Veterans are eligible for the insurance if
they (1) are in good health other than for their serviceconnected
disability, (2) apply for the insurance within 2 years of establishing
that their disability is serviceconnected, and (3) received other than a
dishonorable discharge. Policy premiums are based on rates that healthy
veterans would have paid when the program began in 1951; these premiums
may be waived for eligible veterans who are totally disabled. At the end
of fiscal year 2003, the fund had $1.5 billion of insurance in force on
154,537 policies.

Funding source(s)  o  	Interest on loans to policyholders, premiums, and
appropriations

Total outlays (gross)  o  $66 million

Obligated balance  o  $9 million

Unobligated balance  o  $9 million

a

Number of FTE employees  o  513 for 6 veterans programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 36-4012-0-3-701, p. 886; and U.S.
Department of Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 7: Special Benefits (Federal Employees)

Administering organization 	Division of Federal Employees' Compensation,
Office of Workers' Compensation Programs, Employment Standards
Administration, U.S. Department of Labor

Insurance description 	This account provides monetary and medical benefits
to federal workers and their survivors when the federal worker sustains a
work-related injury or disease or dies from workrelated causes. Benefits
include long-term wage replacement benefits, coverage of medical care
costs, and medical and vocational rehabilitation assistance needed for
returning to work. The account covered 2.8 million federal employees,
including postal employees and civilian employees of the armed services as
of the end of fiscal year 2003. This account and a separate salaries and
expenses account funds administrative expenses.

Funding source(s)  o  	Appropriations and reimbursements from employing
federal agencies

Total outlays (gross)  o  $2,371 million (benefits)

o  $130 million (administrative)

Obligated balance  o  $145 million (benefits)

o  	$1.2 million (administrative from salaries and expenses account)

                     Unobligated balance  o  Not available

Number of FTE employees  o  133a

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 16-1521-0-1-600, pp. 719720; and U.S.
Department of Labor.

aAnother 839 FTEs are funded from a separate salaries and expenses
account.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

               Table 8: Special Benefits for Disabled Coal Miners

Administering organization 	Division of Coal Mine Workers' Compensation,
Office of Workers' Compensation Programs, Employment Standards
Administration, U.S. Department of Labor

Insurance description 	This account provides workers' compensation and
medical benefits to former miners who were totally disabled by
work-related pneumoconiosis (a respiratory condition resulting from coal
dust exposure that is commonly known as black lung disease). It also
provides benefits to coal miners' survivors if an eligible miner's death
can be attributed at least partially to the disease. The account pays
benefits on claims filed between December 30, 1969, and June 30, 1973.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $421 million

Obligated balance  o  $37 million

Unobligated balance  o  $2 million

Number of FTE employees  o  17

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 16-0169-0-1-601, p. 722; and U.S.
Department of Labor.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 9: Special Workers' Compensation Expenses

Administering organization 	Employment Standards Administration, U.S.
Department of Labor

Insurance description 	This trust fund provides additional compensation
and medical benefits to maritime workers who become disabled as a result
of a second injury received on the job and benefits to their dependents if
the injury causes death. Compensation may be in the form of continuing
benefits when an employer defaults on its obligation or when an employer's
obligation is limited to a specific time period. The account also funds a
portion of the benefits paid to maritime workers permanently disabled
before 1972, maintenance payments to disabled maritime workers in
vocational rehabilitation, and covers the procurement of such services.

Funding source(s)  o  	Assessments on commercial insurers and employers of
maritime workers that self-insure rather than buy coverage from commercial
insurers, fines and penalty payments, appropriations, and funding amounts
the department receives when an employee entitled to benefits dies without
having a beneficiary entitled to compensation.

                     Total outlays (gross)  o  $144 million

                       Obligated balance  o  $144 million

                      Unobligated balance  o  $67 million

Number of FTE employees  o  107

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 16-9971-0-7-601, pp. 724725; and U.S.
Department of Labor.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 10: Unemployment Trust Fund

Administering organization 	Employment and Training Administration, U.S.
Department of Labor

Insurance description 	The insurance pays benefits to the unemployed,
covering almost all wage and salary workers. State and federal payroll
taxes on employers that are deposited into the account fund the bulk of
benefits and administrative costs. The state employer payroll taxes cover
standard state unemployment benefits, while the federal employer payroll
taxes cover extended unemployment benefits and administrative costs. The
fund invests the taxes in U.S. government securities until needed to pay
benefits or administrative costs. In fiscal year 2003, 128.9 million
workers were covered. During this period, $54 billion was paid to the
unemployed, compensating them for 211 million weeks of unemployment.

Funding source(s)  o  Federal and state payroll taxes on employers

                   Total outlays (gross)  o  $58,393 million

                      Obligated balance  o  $1,304 million

                    Unobligated balance  o  $45,810 million

Number of FTE employees  o  202

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8042-0-7-999, pp. 713714; and U.S.
Department of Labor.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Medical Liability and Injury Compensation (Tables 11-14)

Table 11: Health Resources and Services (Medical Malpractice Claims Fund)

Administering organization 	Health Resources and Services Administration,
U.S. Department of Health and Human Services

Insurance description 	The fund pays medical malpractice claims made
against physicians and health care employees acting within the scope of
their employment at federally supported health centers, including free
health clinics. The insurance is provided at no charge to the centers and
clinics and is intended to reduce or eliminate the need for participants
to purchase private medical malpractice insurance, thereby making more
funds available for health services.

Funding source(s)  o  Appropriations

a

                Total outlays (gross)  o  $23 million in claims

Obligated balance  o  Not available

Unobligated balance  o  Not available

Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-0350-0-1-550, pp. 423425; and U.S.
Department of Health and Human Services.

aClaims are projected to rise to $50 million in fiscal year 2004.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 12: Public Health and Social Services Emergency Fund (Smallpox
Injury Compensation)

Administering organization 	Health Resources and Services Administration,
U.S. Department of Health and Human Services

Insurance description 	The insurance provides medical, death, and lost
employment income benefits to eligible parties, including (1) individuals
who received a smallpox vaccine under a department-approved federal,
state, or local plan and who sustained a resulting medical injury, (2)
individuals who contracted a sickness, called vaccinia, that results from
contact with someone who received the smallpox vaccination or from contact
with someone who had the sickness, and (3) the estate and certain
survivors of the individuals described in (1) and (2). Fifty-one requests
were made for benefits from the program's inception on April 30, 2003,
through July 5, 2005.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $214,000

Obligated balance  o  $0

                     Unobligated balance  o  $41.7 million

Number of FTE employees  o  6

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-9912-0-1-551, p. 461; and U.S.
Department of Health and Human Services.

                     Table 13: Vaccine Injury Compensation

Administering organization 	Health Resources and Services Administration,
U.S. Department of Health and Human Services

Insurance description 	The insurance provides compensation and benefits to
individuals, or the estates of individuals, who were injured or died as a
result of receiving routinely administered vaccines such as polio,
measles, and mumps before October 1, 1988. The insurance also generally
provides medical liability protection to doctors, drug manufacturers, and
hospitals that administer the vaccines on behalf of the U.S. Public Health
Service.

a

Funding source(s)  o  Appropriations

                  Total outlays (gross)  o  about $900 million

                    Obligated balance  o  about $900 million

Unobligated balance  o  $1.4 million

Number of FTE employees  o  9

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-0320-0-1-551, p. 425; and U.S.
Department of Health and Human Services.

aThe account has not received appropriations since fiscal year 1997
because prior year balances have been sufficient to pay claims.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 14: Vaccine Injury Compensation Program Trust Fund

Administering organization 	Health Resources and Services Administration,
U.S. Department of Health and Human Services

Insurance description 	The insurance provides compensation and benefits to
individuals, or the estates of individuals, who were injured or died as a
result of receiving routinely administered vaccines such as polio,
measles, and mumps after October 1, 1988. Vaccine purchasers, such as the
Centers for Disease Control and Prevention and health care providers, pay
excise taxes to vaccine producers. These taxes are remitted to the U.S.
Department of the Treasury for deposit into the trust fund. Using the
fund's resources, the Department of Health and Human Services purchases
government-owned annuity contracts from private insurance companies to
cover benefits provided to the injured party. In addition, the insurance
generally provides medical liability protection to doctors, drug
manufacturers, and hospitals that administer the vaccines. Over 950
annuity contracts were purchased from the program's inception on October
1, 1988, to July 2, 2004. In fiscal year 2003, $73.4 million was awarded
to 59 petitioners.

Funding source(s)  o  Excise taxes and interest on investments

Total outlays (gross)  o  $84 million

Obligated balance  o  $1 million

                     Unobligated balance  o  $1,901 million

Number of FTE employees  o  9

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8175-0-7-551, pp. 428429; and U.S.
Department of Health and Human Services.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Health Insurance

Table 15: Employees and Retired Employees Health Benefit Funds

(Tables 15-22)

Administering organization U.S. Office of Personnel Management

Insurance description 	This account is comprised of the Federal Employees
Health Benefits (FEHB) program and the Retired Employees Health Benefits
(REHB) program. The FEHB program covers the cost of health benefits for
employees who are currently active or retired after July 1960, or their
survivors. The REHB program covers the cost of health benefits for other
retired employees, or their survivors, including those who retain or
purchase private insurance or enroll in government sponsored insurance.
The Office of Personnel Management approves the various health plans that
are offered (approximately 205 at the end of fiscal year 2003). As of the
end of fiscal year 2003, 2.2 million active federal employees and 1.8
million annuitants were enrolled in the FEHB program, and 2,362 retirees
were enrolled in the REHB program.

Funding source(s)  o  	Employee withholdings, contributions from federal
employing agencies and annuitants, appropriations, and interest income.
Employee and government contributions also fund a contingency reserve that
the Office of Personnel Management maintains and that may be used to pay
for increased costs or benefits.

                   Total outlays (gross)  o  $24,964 million

                      Obligated balance  o  $2,484 million

                     Unobligated balance  o  $6,554 million

Number of FTE employees  o  100

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 24-9981-0-8-55, pp. 10651066; and U.S.
Office of Personnel Management.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 16: Federal Hospital Insurance Trust Fund (Medicare Part A)

Administering organization 	Centers for Medicare and Medicaid Services,
U.S. Department of Health and Human Services

Insurance description 	The account funds the Medicare Part A program,
which partially covers the costs of, among other things, home health care
and inpatient care in hospitals and skilled nursing facilities and fully
covers the costs of hospice care. Based on their work history, most U.S.
citizens and permanent residents and their spouses are eligible for
Medicare Part A if they are 65 years of age or older. Also, persons under
65 years old with certain types of disabilities or with chronic renal
disease are eligible for coverage. Enrollees or their spouses who have
contributed to Medicare through payroll taxes for at least 10 years of
employment are automatically enrolled at age 65 and need not pay premiums
to receive coverage. Individuals who have not met this eligibility
requirement may purchase Part A coverage. Medicare Part A had 40.5 million
enrollees at mid-fiscal year 2003.

Funding source(s)  o  Payroll taxes and premiums payments

Total outlays (gross)  o  $152,793 million

Obligated balance  o  $1,228 million

Unobligated balance  o  $249,863 million

Number of FTE employees  o  Not availablea

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8005-0-7-571, p. 447; and U.S.
Department of Health and Human Services.

aAn estimated 3,471 FTEs supported all Medicare programs in fiscal year
2003.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 17: Federal Supplementary Medical Insurance Trust Fund (Medicare
Part B)

Administering organization 	Centers for Medicare and Medicaid Services,
U.S. Department of Health and Human Services

Insurance description 	This account, also known as Medicare Part B,
partially covers the cost of doctors' services and outpatient hospital
care. It also covers other services that are not covered under Medicare
Part A, such as durable medical equipment and outpatient laboratory
services. Eligibility requirements for Medicare Part B are the same as
those for Part A (see table 16). However, unlike for Medicare Part A,
eligible individuals must enroll and pay a premium to receive Part B
coverage. Medicare Part B had an average of 38.4 million enrollees in
fiscal year 2003.

Funding source(s)  o  Primarily beneficiary premiums and appropriations

                   Total outlays (gross)  o  $124,055 million

Obligated balance  o  $1,072 million

                    Unobligated balance  o  $23,729 million

Number of FTE employees  o  Not availablea

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8004-0-7-571, pp. 449450; and U.S.
Department of Health and Human Services.

aAn estimated 3,471 FTEs supported all Medicare programs in fiscal year
2004.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                 Table 18: Payments to Health Care Trust Funds

Administering organization 	Centers for Medicare and Medicaid Services,
U.S. Department of Health and Human Services

Insurance description 	The primary purpose of this account is to pay
benefits under the Federal Hospital Insurance Trust Fund and the Federal
Supplementary Medical Insurance Trust Fund accounts, commonly known as
Medicare Parts A and B, respectively, to the small groups of beneficiaries
who did not qualify for the benefits at the programs' inception. Such
groups include workers and their spouses who reached the age of 65 by
1968, people on active military duty before 1957, and federal workers who
converted from the Civil Service Retirement System to the Federal
Employees Retirement System. In 1986, the account received a lump sum
payment to cover all future benefits. Since then, agency actuaries and
trustees have reviewed the account every 5 years to determine if
adjustments are needed.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $393 million

Unobligated balance  o  $0

Obligated balance  o  $0

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-0580-0-1-571, p. 443; and U.S.
Department of Health and Human Services.

Table 19: Railroad Unemployment Insurance Trust Fund

Administering organization U.S. Railroad Retirement Board

Insurance description 	Consistent with the Railroad Retirement Board's
mission of administering benefit programs for railroad workers and their
families, the insurance provides two kinds of benefits for railroad
employees-unemployment benefits for those who are able but not working and
sickness benefits for those who are unable to work because of illness or
injury. In the benefit year ending June 30, 2003, the fund paid
unemployment and sickness benefits to 36,400 of 259,100 employees
qualified to receive benefits.

Funding source(s)  o  Employer contributions and investment income

                     Total outlays (gross)  o  $123 million

Obligated balance  o  $5 million

Unobligated balance  o  $0

Number of FTE employees  o  170

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 60-8051-0-7-603, pp. 11771178; and U. S.
Railroad Retirement Board.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                Table 20: State Children's Health Insurance Fund

Administering organization 	Centers for Medicare and Medicaid Services,
U.S. Department of Health and Human Services

Insurance description 	The account funds health insurance for children
under 19 years old who live with low-income families. An expansion of the
Social Security Act created the program, which is administered by the
states. Some states have expanded the minimum income requirements, and
others are covering entire families, not just children. The program
funding "sunsets" after fiscal year 2007.a In all of fiscal year 2003, 5.8
million children were enrolled in the program.

Funding source(s)  o  Appropriations that match state funding

                    Total outlays (gross)  o  $4,355 million

                      Obligated balance  o  $9,755 million

Unobligated balance  o  $0

Number of FTE employees  o  75

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-0515-0-1-551, p. 446; and U.S.
Department of Health and Human Services.

aFunding is said to "sunset" when it is subject to automatic statutory
termination at the end of a fixed period unless formally renewed.

Table 21: Transitional Drug Assistance, Federal Supplementary Medical
Assistance Trust Fund

Administering organization 	Centers for Medicare and Medicaid Services,
U.S. Department of Health and Human Services

Insurance description 	The account funds a $600 credit to help cover the
cost of prescription drugs for low-income Medicare participants in the
Transitional Drug Assistance program. Individuals are eligible for
benefits if their income is not more than 135 percent of the poverty line,
and they do not have outpatient drug coverage from other sources. Coverage
from the program will end when the Medicare Part D drug benefit becomes
effective on January 1, 2006. The program credit assisted 1.3 million
enrollees as of the end of fiscal year 2004.a

  Funding sources  o  Appropriations Total outlays (gross)  o  $216 million in
                     fiscal year 2004 for credit benefitsa

Obligated balance  o  $281 million in fiscal year 2004a

Unobligated balance  o  Not available

Number of FTE employees  o  270 in fiscal year 2004a

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-8307-0-7-571, p. 450; and U.S
Department of Health and Human Services.

aData are first available for the fourth quarter of fiscal year 2004 when
the program was implemented.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

             Table 22: Uniformed Services Retiree Health Care Fund

             Administering organization U.S. Department of Defense

Insurance description 	The fund provides coverage for medical expenses not
covered by Medicare, with some restrictions, and medical care provided at
military treatment facilities. Retirees of the uniformed services who are
eligible for Medicare and qualifying dependents can receive coverage for
expenses not covered by Medicare, but they must first be enrolled in
Medicare Part B unless they receive care at a military treatment facility.
In that case, they need only be eligible for Medicare Part A. In fiscal
year 2003, 1.7 million individuals received benefits.

Funding source(s)  o  	Appropriations, agency contributions, and
investment income

                    Total outlays (gross)  o  $4,315 million

                       Obligated balance  o  $268 million

Unobligated balance  o  $0

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 97-5472-0-2-551, p. 928; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Life Insurance and Death

Table 23: Burial Benefits (Veterans)

Benefits

                                 (Tables 23-38)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	The Department of Veterans Affairs uses this
account to fund and administer a range of burial benefit programs for
veterans through two of its organizations-the Veterans Benefits
Administration and the National Cemetery Administration. Benefits include
flags for draping caskets and cash allowances for funeral and burial
expenses, headstones and markers, and grave maintenance. Fund outlays
cover, among other things, benefit payments and administrative expenses.
The latter are funded from a separate account. During fiscal year 2003,
the burial benefit programs provided cash allowances for 78,000 burials
and 341,000 headstones and markers.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $143 million (benefits)

o  $206 million (administrative)

Obligated balance  o  $0 (benefits)

o  $129 million (administrative)

Unobligated balance  o  $0 (benefits)

o  $175 million (administrative)

                       Number of FTE employees  o  1,655

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 36-0139-0-1-701 (benefits) and
36-0129-0-1-700 (administrative), pp. 885-886; and U.S. Department of
Veterans Affairs.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 24: Insurance Benefits (Veterans Mortgage Life Insurance)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	Veterans Mortgage Life Insurance was established in
1971 to pay up to $90,000 on an unpaid home mortgage in the event of an
eligible veteran's death. The insurance covers veterans who received
grants from the Department of Veterans Affairs for housing specially
adapted for veterans with severe disabilities incurred during military
service. At the end of fiscal year 2003, the program had $175 million of
insurance in force on 2,793 policies.

Funding source(s)  o  Appropriations and premiums

Total outlays (gross)  o  $30 million

Obligated balance  o  $209,000

Unobligated balance  o  $615,000

a

Number of FTE employees  o  513 people administer 6 insurance programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 36-0120-0-1-701 (benefits) and
36-0141-0-1-701 (administrative), pp. 882-883; and U.S. Department of
Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Table 25: Military Personnel, Air Force (death gratuity)

Administering organization U.S. Air Force, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding
various expenses of Air Force personnel, including pay, allowances, and
certain travel expenses, the account funds a $12,000 death gratuity to
beneficiaries of deceased Air Force military personnel whose death
occurred (a) while on active duty or traveling to or from duty, (b) during
the 120day period following date of discharge or release from active duty
when death results from a service-connected or -aggravated injury or
disease, or (c) while traveling to or from or while at a place for final
acceptance or entry into active duty.

Funding source(s)  o  Appropriations Total outlays (gross)  o  $1.9 million for
death gratuities to 160 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 57-3500-0-1-051, pp. 250251; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 26: Military Personnel, Army (death gratuity)

Administering organization U.S. Army, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding
various expenses of Army personnel, including pay, allowances, and certain
travel expenses, the account funds a $12,000 death gratuity to
beneficiaries of deceased Army military personnel whose death occurred (a)
while on active duty or traveling to or from duty, (b) during the 120-day
period following date of discharge or release from active duty when death
results from a service-connected or aggravated injury or disease, or (c)
while traveling to or from active duty, or while at a place for final
acceptance or entry into active duty.

Funding source(s)  o  Appropriations Total outlays (gross)  o  $3.2 million for
death gratuities to 528 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 21-2010-0-1-051, p. 248; and U.S.
Department of Defense.

Table 27: Military Personnel, Marine Corps (death gratuity)

Administering organization U.S. Marine Corps, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding
various expenses of Marine Corps personnel, including pay, allowances, and
certain travel expenses, the account funds insurance claim and indemnity
activities that include making $12,000 death gratuity payments to
beneficiaries of deceased Marine Corps personnel whose death occurred (a)
while on active duty or traveling to or from duty, (b) during the 120-day
period following date of discharge or release from active duty when death
results from a serviceconnected or -aggravated injury or disease, or (c)
while traveling to or from active duty, or while at a place for final
acceptance or entry into active duty.

Funding source(s)  o  Appropriations Total outlays (gross)  o  $1.2 million for
death gratuities to 104 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 17-1105-0-1-051, pp. 249250; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 28: Military Personnel, Navy (death gratuity)

Administering organization U.S. Navy, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding
various expenses of Navy personnel, including pay, allowances, and certain
travel expenses, the account funds a $12,000 death gratuity to
beneficiaries of deceased Navy military personnel whose death occurred (a)
while on active duty or traveling to or from duty, (b) during the 120-day
period following date of discharge or release from active duty when death
results from a service-connected or -aggravated injury or disease, or (c)
while traveling to or from active duty, or while at a place for final
acceptance or entry into active duty.

Funding source(s)  o  Appropriations
Total outlays (gross)  o  $1.6 million for death gratuities paid to 260
beneficiaries

                      Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 17-1453-0-1-151, pp. 248249; and U.S.
Department of Defense.

Table 29: National Guard Personnel, Air Force (death gratuity)

Administering organization U.S. Air Force, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding the
salaries and expenses of Air Force National Guard personnel, the account
funds a $12,000 death gratuity to beneficiaries of deceased Air Force
National Guard personnel whose death occurred (a) while on active duty,
(b) participating in training for active or inactive duty, or (c)
traveling directly to or from duty.

  Funding source(s)  o  Appropriations Total outlays (gross)  o  $12,000 for a
      death gratuity to 1 beneficiary Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 57-3850-0-1-051, p. 254; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 30: National Guard Personnel, Army (death gratuity)

Administering organization Army National Guard, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding the
salaries and expenses of Army National Guard personnel, the account funds
a $12,000 death gratuity to beneficiaries of deceased Army National Guard
personnel whose death occurred (a) while on active duty, (b) participating
in training for active or inactive duty, or (c) while traveling to or from
duty.

  Funding source(s)  o  Appropriations Total outlays (gross)  o  $316,000 for
    death gratuities to 53 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 21-2060-0-1-051, p. 253254; and U.S.
Department of Defense.

Table 31: National Service Life Insurance Fund (Veterans)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	This fund was opened in 1940 to meet the insurance
needs of World War II military service personnel. By the time the program
was closed in 1951 it had issued over 22 million policies with an
aggregate face value of $174 billion. The basic policy has a maximum face
amount of $10,000, although policyholders could purchase additional
insurance that would provide income if they became totally disabled before
age 65. At the end of fiscal year 2003, the program had $14.8 billion of
insurance in force on 1.4 million policies, and the average policy in
force had a face value of about $10,500.

Funding source(s)  o  Investment income, premiums, and appropriations

                    Total outlays (gross)  o  $1,613 million

                      Obligated balance  o  $1,461 million

                     Unobligated balance  o  $9,795 million

a

Number of FTE employees  o  513 people administer 6 insurance programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 36-8132-0-7-701, pp. 895896; and U.S.
Department of Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 32: Reserve Personnel, Air Force (death gratuity)

Administering organization U.S. Air Force, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding the
salaries and expenses of U.S. Air Force reserve personnel, the account
funds a $12,000 death gratuity to beneficiaries of deceased Air Force
reserve personnel whose death occurred (a) while on active duty, (b)
participating in training for active or inactive duty, or (c) traveling
directly to or from duty.

Funding source(s)  o  Appropriations Total outlays (gross)  o  $24,000 for death
       gratuities to 2 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 57-3700-0-1-051, pp. 252253; and U.S.
Department of Defense.

Table 33: Reserve Personnel, Army (death gratuity)

Administering organization U.S. Army, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding the
salaries and expenses of Army reserve personnel, the account funds a
$12,000 death gratuity to beneficiaries of deceased Army reserve personnel
whose death occurred (a) while on active duty, (b) participating in
training for active or inactive duty, or (c) traveling directly to or from
duty.

  Funding source(s)  o  Appropriations Total outlays (gross)  o  $114,000 for
    death gratuities to 9 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 21-2070-0-1-051, p. 251; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 34: Reserve Personnel, Marine Corps (death gratuity)

Administering organization U.S. Marine Corps, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of funding the
salaries and expenses of Marine Corps reserve personnel, the account funds
a $12,000 death gratuity to beneficiaries of deceased Marine Corps reserve
personnel whose death occurred (a) while on active duty, (b) participating
in training for active or inactive duty, or (c) traveling directly to or
from duty.

Funding source(s)  o  Appropriations Total outlays (gross)  o  $48,000 for death
       gratuities to 4 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 17-1108-0-1-051, p. 252; and U.S.
Department of Defense.

               Table 35: Reserve Personnel, Navy (death gratuity)

Administering organization U.S. Navy, U.S. Department of Defense

Insurance description 	In addition to its primary purpose of paying the
salaries and expenses of Navy reserve personnel, the account funds a
$12,000 death gratuity to beneficiaries of deceased Navy reserve personnel
whose death occurred (a) while on active duty, (b) participating in
training for active or inactive duty, or (c) while traveling directly to
or from duty.

  Funding source(s)  o  Appropriations Total outlays (gross)  o  $132,000 for
    death gratuities to 11 beneficiaries Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 17-1405-0-1-051, pp. 251252; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 36: United States Government Life Insurance Fund (Veterans)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	This account funds life insurance for persons in
the military before October 8, 1940, and was created to meet the needs of
World War I veterans when private insurers were unwilling to assume
war-related risks. In addition to the death benefit, the policy provides a
disability benefit to veterans who become totally and permanently
disabled. The level of assets in the trust fund was sufficient to allow
the program to declare all policies paid up as of January 1, 1983, and to
stop collecting premiums from policyholders. In addition, the investment
earnings by the trust fund have exceeded amounts needed to pay future
claims, allowing the program to pay dividends to policyholders. The
program had $37 million of insurance in force on 11,770 policies at the
end of fiscal year 2003.

Funding source(s)  o  	Investment income, interest on loans to
policyholders, and appropriations

                     Total outlays (gross)  o  $10 million

                       Obligated balance  o  $17 million

                      Unobligated balance  o  $39 million

a

Number of FTE employees  o  513 people administer 6 insurance programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 36-8150-0-7-701, pp. 896897; and U.S.
Department of Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                   Table 37: Veterans Reopened Insurance Fund

Administering organization U.S. Department of Veterans Affairs

Insurance description 	This fund was created to provide life insurance for
disabled veterans, mainly from World War II and the Korean Conflict, who,
between October 8, 1940, and January 1, 1957, had been eligible for or
enrolled in an insurance program but had dropped out or were uninsurable
because of their disability. The disabled veterans had 1 year, beginning
May 1, 1965, to apply for coverage. At the end of fiscal year 2003, the
fund had $556 million of insurance in force on 63,000 policies.

Funding source(s)  o  	Investment income, premiums, and interest on loans
to policyholders

                     Total outlays (gross)  o  $64 million

                       Obligated balance  o  $51 million

                      Unobligated balance  o  $409 million

a

Number of FTE employees  o  513 people administer 6 insurance programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 36-4010-0-3-701, p. 887; and U.S.
Department of Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                 Table 38: Veterans Special Life Insurance Fund

Administering organization U.S. Department of Veterans Affairs

Insurance description 	This fund was established in 1951 to meet the
insurance needs of veterans who served during the Korean Conflict and a
few years thereafter-a period from April 2, 1951, through January 1, 1957.
During this period, all service members on active duty received $10,000 of
life insurance coverage at no cost to them. That coverage remained in
force for 120 days after their discharge, at which time they could
purchase $10,000 of term life insurance. Policyholders could also elect to
purchase disability income coverage. The fund has been distributing excess
income resulting from lower than expected death rates to policyholders as
dividends. At the end of fiscal year 2003, 220,719 policies were in force
with an aggregate face value of $2.6 billion.

Funding source(s)  o  	Investment income, premiums, and interest on loans
to policyholders

                     Total outlays (gross)  o  $189 million

                       Obligated balance  o  $312 million

                     Unobligated balance  o  $1,540 million

a

Number of FTE employees  o  513 people administer 6 insurance programs

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 36-8455-0-8-701, p. 897; and U.S.
Department of Veterans Affairs.

aThe following insurance programs for veterans are administered from the
department's Philadelphia office: Veterans Mortgage Life Insurance,
National Service Life Insurance, Veterans Reopened Life Insurance,
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, and
U.S. Government Life Insurance.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Retirement Annuity (Tables 39-53)

Table 39: Central Intelligence Agency Retirement and Disability System
Fund

Administering organization U.S. Central Intelligence Agency

Insurance description 	This account maintains the funds needed to operate
the agency's retirement program for designated employees with at least 5
years of qualifying service involving activities abroad hazardous to life
or health, or clearly distinguishable from normal government service
because of specialized security duties. The fund pays the costs of
disbursing annuities related to military service, costs not covered by
employee and employer contributions, and costs of financing unfunded
liabilities.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $223 million

Obligated Balance  o  $0

Unobligated Balance  o  $0

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 56-3400-0-1-054 pp. 10901091.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 40: Civil Service Retirement and Disability Fund

Administering organization U.S. Office of Personnel Management

Insurance description 	The fund provides retirement and disability
benefits for active federal employees and federal retirees and survivors.
The account pays benefits under two federal civilian retirement systems:
(1) the Civil Service Retirement System, a defined benefit plan that
covers federal employees hired before 1984 and (2) the Federal Employees'
Retirement System that covers federal employees hired after 1983 and those
who convert from the Civil Service Retirement System. The Federal
Employees' Retirement System is a three-tiered pension program that
includes a basic defined benefit, a thrift savings plan, and social
security. This fund provides the basic defined benefit component. Other
funds provide for the Thrift Savings Plan and social security benefits.
The fund covered 2.7 million active federal employees and 2.4 million
federal retirees and survivors in fiscal year 2003.

Funding source(s)  o  Employee and agency contributions and appropriations

                   Total outlays (gross)  o  $50,368 million

Obligated balance  o  $4,402 million

                    Unobligated balance  o  $597,334 million

Number of FTE employees  o  800

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 24-8135-0-7-602, pp. 10631064; and U.S.
Office of Personnel Management.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 41: District of Columbia Federal Pension Liability Trust Fund (and
Federal Supplemental District of Columbia Fund)

Administering organization 	Office of District of Columbia Pensions, U.S.
Department of the Treasury

Insurance description 	The District of Columbia Federal Pension Liability
Trust Fund pays the retirement benefits earned through June 30, 1997, of
district police officers, firefighters, and teachers and the expenses of
the Secretary of the Treasury in administering the fund. The Department of
Treasury established this fund and two others (the District of Columbia
Judicial Retirement and Survivors Annuity Fund and the Federal
Supplemental District of Columbia Pension Fund) in 1997 when it assumed
financial responsibility for certain pension obligations of the District
of Columbia. The District of Columbia retained responsibility for funding
retirement benefits earned after June 1997 through current contributions
by police, firefighters, and teachers and the District of Columbia funds.
Because federal liability for these plans pertains to benefits earned
before July 1997, employees do not contribute to the fund. After the
liability trust fund is depleted, benefits and administrative costs will
be paid from the Federal Supplemental District of Columbia Pension Fund.
The liability trust and supplemental funds covered 20,409 active and
retired employees at the end of fiscal year 2003.

Funding source(s)  o  Investment income, appropriations

Total outlays (gross)  o  $488 million for liability trust fund

o  $0 for supplemental fund

Obligated balance  o  $67 million in liability trust fund

o  $0 in supplemental fund

Unobligated balance  o  $1,992 million in liability trust fund

o  $1,640 million in supplemental fund

a

Number of FTE employees  o  21 administer 3 funds

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 20-8230-0-7-601 (liability trust fund)
and 20-5500-0-2-601 (supplemental fund), pp. 1110-1112; and U.S.
Department of the Treasury.

aThe three funds are the District of Columbia Federal Pension Liability
Trust Fund, the District of Columbia Judicial Retirement and Survivors
Annuity Fund, and the Federal Supplemental District of Columbia Pension
Fund.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 42: District of Columbia Judicial Retirement and Survivors Annuity
Fund

Administering organization 	Office of District of Columbia Pensions, U.S.
Department of the Treasury

Insurance description 	The fund provides the retirement and survivor
benefits of active and retired District of Columbia judges. As of the end
of fiscal year 2003, 138 active and retired judges were covered by the
fund. The U.S. Department of Treasury established this fund and two others
(the District of Columbia Federal Pension Liability Trust Fund and the
Federal Supplemental District of Columbia Pension Fund) in 1997 when it
assumed financial responsibility for certain pension obligations of the
District of Columbia.

Funding source(s)  o  	Appropriations, investment earnings, and payroll
withholdings

Total outlays (gross)  o  $7 million

Obligated balance  o  $1 million

Unobligated balance  o  $91 million

a

               Number of FTE employees  o  21 administer 3 funds

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8212-0-7-602, p. 1107 and U.S.
Department of the Treasury.

aThe three funds are the District of Columbia Federal Pension Liability
Trust Fund, the District of Columbia Judicial Retirement and Survivors
Annuity Fund, and the Federal Supplemental District of Columbia Pension
Fund.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 43: Federal Old Age and Survivors Insurance (Social Security)

Administering organization U.S. Social Security Administration

Insurance description 	This trust fund provides monthly cash benefits to
retired workers and their dependents and to survivors of deceased workers.
While most beneficiaries receive retirement benefits, others receive
benefits because they are one of the following: (1) a disabled widow, or
disabled adult child of a deceased worker, (2) a spouse or child of
someone who receives social security, (3) a spouse or child of a deceased
worker, or (4) a dependent parent of a deceased worker. The fund's largest
funding source is social security payroll taxes, which finance social
security benefits paid to current recipients. The level of payroll taxes
collected is not expected to keep pace with growth in the number of
beneficiaries. If, as projected, the number of persons 65 years old and
older doubles within the next 15 years, fund resources are projected to be
insufficient to maintain existing benefit levels unless steps are taken to
more closely balance funding and benefits. In December 2003, 39.4 million
people were receiving benefits.

Funding source(s)  o  	Payroll taxes from employers, employees, and the
selfemployed; interest income; and income taxes on benefits

                   Total outlays (gross)  o  $402,698 million

Obligated balance  o  $39,949 million

                   Unobligated balance  o  $1,273,446 million

Number of FTE employees  o  19,000a

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-8006-0-7-651, p. 1080; and U.S.
Social Security Administration.

aData include overtime converted into FTEs.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 44: Foreign Service Retirement and Disability Fund

Administering organization 	Bureau of Human Resources, Personnel
Retirement Division, U.S. Department of State

Insurance description 	The insurance pays retirement and disability
benefits to foreign service officers and their survivors. Various
departments and agencies employ these officers, including the Departments
of State, Agriculture, and Commerce as well as the Peace Corps and U.S.
Agency for International Development. Foreign Service retirement benefits
are paid under two plans, the Foreign Service Retirement and Disability
System, which is equivalent to the Civil Service Retirement System, and
the Foreign Service Pension System, which is equivalent to the Federal
Employees Retirement System. Under the defined benefit provisions of these
pension plans, participants earn a retirement annuity based on participant
and employer contributions and participant salary and years of service.
About 14,600 beneficiaries received $623 million in fiscal year 2003.

Funding source(s)  o  	Employee withholdings, employing agencies'
contributions, appropriations, and interest on investments

Total outlays (gross)  o  $623 million

Obligated balance  o  $0

Unobligated balance  o  $12,300 million

                Number of FTE employees  o  30 and 5 contractors

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 19-8186-0-7-602, pp. 747748; and U.S.
Department of State.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 45: Judicial Officers' Retirement Fund

Administering organization Administrative Office of the U.S. Courts

Insurance description 	This trust fund pays the retirement annuities of
U.S. bankruptcy and magistrate judges. Bankruptcy judges for a judicial
district are appointed by the judges of the U.S. court of appeal for the
circuit and exercise jurisdiction over bankruptcy matters. Magistrate
judges are appointed by each U.S. district court and exercise jurisdiction
over matters assigned by law and those delegated by the district judges.
As of June 30, 2004, 157 active judges were enrolled in the program, and
216 retired judges were receiving retirement annuities.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $22 million

Obligated balance  o  $1 million

Unobligated balance  o  $174 million

               Number of FTE employees  o  4 as of June 30, 2004

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 10-8122-0-7-602, pp. 6364; and
Administrative Office of the U.S. Courts.

                  Table 46: Judicial Survivors' Annuities Fund

Administering organization Administrative Office of the U.S. Courts

Insurance description 	This trust fund pays annuities to the surviving
widows and dependent children of judicial officers, including survivors of
justices and judges of the U.S. Courts; full time bankruptcy and
magistrate judges; the administrative assistant to the Chief Justice of
the Supreme Court; and the directors of the Federal Judicial Center and
Administrative Office of the U.S. Courts. As of June 30, 2004, 1,488
judicial officers were participating in the program, and 294 survivors of
participants were receiving benefits.

Funding source(s)  o  	Investment earnings, withholdings from salaries,
and federal payments.

Total outlays (gross)  o  $16 million

Obligated balance  o  $2 million

Unobligated balance  o  $418 million

               Number of FTE employees  o  3 as of June 30, 2004

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 10-8110-0-7-602, p. 64; and
Administrative Office of the U.S. Courts.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 47: Military Retirement Fund

             Administering organization U.S. Department of Defense

Insurance description 	The fund finances a defined benefit pension plan
for military personnel who have retired with at least 20 years of service
or who were disabled in combat. Retirees can also make elective
contributions so that upon their death a surviving spouse or dependents
can continue to receive survivor benefits. At the end of fiscal year 2003,
about 1.722 million retirees and 265,000 surviving families were covered
by the fund.

Funding source(s)  o  	U.S. Treasury general fund, agency contributions,
and investment income

                   Total outlays (gross)  o  $35,568 million

                      Obligated balance  o  $2,963 million

Unobligated balance  o  $0

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 197-8097-0-7-602, pp. 927928; and U.S.
Department of Defense.

                     Table 48: Pension Benefits (Veterans)

Administering organization U.S. Department of Veterans Affairs

Insurance description 	The account funds pensions for certain veterans or
their survivors. Veterans are entitled to benefits if they were on active
duty for 90 days or more during a designated war period, sustained
permanent and total disabilities, and have income below a certain level.
The disability requirement does not apply to certain survivors or to
veterans that are at least 65 years old. A separate account funds
administrative expenses.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $3,229 million (benefits)

o  $149 million (administrative)

Obligated balance  o  $264 million

Unobligated balance  o  $65 million

Number of FTE employees  o  827

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification codes 36-0154-0-1-701 (benefits) and
36-0143-0-1-701(administrative), pp. 883-884; and U.S. Department of
Veterans Affairs.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                    Table 49: Railroad Industry Pension Fund

Administering organization U.S. Railroad Retirement Board

Insurance description 	The fund provides income protection during old age
and in the event of disability, sickness, or death to: (1) railroad
workers who retire because of age or disability; (2) eligible spouses and
divorced spouses of retired employees; and (3) surviving widow(er)s,
remarried widow(er)s, surviving divorced spouses, children, and dependent
parents of deceased employees. The fund paid benefits to 666,200
individuals in fiscal year 2003.

Funding source(s)  o  	Appropriations; employer and employee payroll
taxes; transfers from the Railroad Retirement Account, the Social Security
Equivalent Benefit Account, and the Dual Benefits Payments Account; and
investment income.

a

                   Total outlays (gross)  o  $21,437 million

Obligated balance  o  $301 million

Unobligated balance  o  $206 million

Number of FTE employees  o  909

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 60-8011-0-7-601, pp. 11781179; and U.S.
Railroad Retirement Board.

aTotal outlays (gross) includes $17,750 million in transfers to the
National Railroad Retirement Investment Trust and excludes outlays for the
Social Security Equivalent Benefit Account and Dual Benefits Payments
Account.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 50: Retired Pay (U.S. Coast Guard)

Administering organization U.S. Coast Guard, U.S. Department of Homeland
Security

Insurance description 	The account funds retirement pay for military
personnel of the U.S. Coast Guard and Coast Guard Reserve and members of
the former Lighthouse Service. It also provides an annuity for survivors
of Coast Guard retirees who elect to participate in the related plan.
Additionally, it funds payments for the medical care of retired personnel
and their dependents. In fiscal year 2003, the account paid $832 million
in benefits: $667 million in retirement benefits to regular military
personnel, $45 million in retirement benefits to reserve personnel, $16
million in survivor benefits, and $104 million in medical care benefits to
retirees and their dependents. At the end of the fiscal year, 35,000
personnel were eligible for the account's retirement pay benefits.

                      Funding source(s)  o  Appropriations

Outlays  o  $812 million

Obligated balance  o  $141 million

Unobligated balance  o  $0

Number of FTE employees  o  0

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-0602-0-1-403, pp. 492493; and U.S.
Department of Homeland Security.

Table 51: Retirement Pay and Medical Benefits for Commissioned Officers
(Public Health Service)

Administering organization 	U.S. Public Health Service, U.S. Department of
Health and Human Services

Insurance description 	The account funds medical, dental, disability, and
retirement pay and benefits for retired Public Health Service commissioned
officers. It also provides payments and medical benefits to survivors of
deceased officers and medical benefits to dependents and beneficiaries. In
fiscal year 2003, the account paid $291 million in benefits: $214 million
for retirement benefits, $13 million for survivor benefits, and $64
million for medical care benefits to about 33,000 beneficiaries.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $305 million

Obligated balance  o  $30 million

Unobligated balance  o  $0

Number of FTE employees  o  8 FTEs, 3 consultants, and 2 temporary
contractors

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-0379-0-1-551, p. 463; and U.S.
Department of Health and Human Services.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 52: Special Benefits for Certain World War II Veterans

Administering organization U.S. Social Security Administration

Insurance description 	This account funds social security benefits for
certain World War II veterans who meet program eligibility criteria. Those
eligible for program benefits include individuals who: (1) were at least
65 years old as of December 14, 1999 and reside outside the United States;
(2) were in the U.S. military during World War II, including veterans who
were in the Filipino Army and Filipino Scouts; and (3) were eligible for
Supplemental Security Income for the month of December 1999 and meet other
requirements.

a

Funding source(s)  o  Appropriations and state supplement payments

                      Total Outlays (Gross)  o  $9 million

                       Obligated balances  o  -$1 million

Unobligated balances  o  $0

Number of FTE employees  o  5

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 28-0401-0-1-701, pp. 10781079; and U.S.
Social Security Administration.

aCalifornia provides additional funds to the Social Security
Administration for the benefit of the veterans receiving benefits under
this insurance activity.

Table 53: United States Court of Federal Claims Judges' Retirement Fund

Administering organization Administrative Office of the U.S. Courts

Insurance description 	This trust fund pays the retirement annuities of
U.S. Court of Federal Claims judges. The court's jurisdiction includes,
among other things, most claims for money damages against the United
States, disputes over federal contracts, federal contract bid protests,
constitutional claims, and patent and copyright infringement. Three active
and 13 retired judges were enrolled or receiving benefits as of June 30,
2004.

Funding source(s)  o  Appropriations

Total outlays (gross)  o  $2 million

Obligated balance  o  $0

Unobligated balance  o  $11 million

Number of FTE employees  o  Less than 1 as of June 30, 2004

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 10-8124-0-7-602, pp. 6465; and
Administrative Office of the U.S. Courts.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Property Damage or Table 54: Agricultural Credit Insurance Program Account
(Dairy Indemnity Program)

Financial Loss

                                  Compensation
                                 (Tables 54-62)

Administering organization Farm Service Agency, U.S. Department of
Agriculture

Insurance description 	The program compensates dairy farmers for milk or
cows at fair market value when a regulatory agency (such as the
departments of agriculture or public health in the various states) directs
them to remove raw milk from the commercial market or to destroy their
livestock because of contamination by certain pesticides, toxic
substances, chemical residues, or nuclear radiation or fallout. The
program also compensates manufacturers at fair market value for dairy
products removed from the commercial market because of pesticide
contamination.

                      Funding source(s)  o  Appropriations

Total outlays (gross)  o  $393,000

Obligated balance  o  $0

Unobligated balance  o  $1 million

Number of FTE employees  o  Less than 5

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-1140-0-1-351, p. 106108; and U.S.
Department of Agriculture.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 55: Animal and Plant Health Inspection Service (disease control
compensation)

Administering organization 	Animal and Plant Health Inspection Service,
U.S. Department of Agriculture

Insurance description 	In addition to its primary purpose of funding
activities designed to protect the nation's animal and plant resources
from destructive pests and diseases, this account reimburses owners for
the loss of animals that the agency determines are diseased and need to be
destroyed. During fiscal year 2003, the agency reimbursed owners for the
loss of animals or plants with, among other diseases, Tuberculosis (a
contagious bacteria affecting both animals and humans), Exotic Newcastle
(a contagious and fatal viral disease affecting all species of birds),
Chronic Wasting Disease (a neurological illness affecting deer and elk),
Spring Viremia of Carp (a contagious and potentially fatal viral disease
of fish such as koi and carp) and with citrus canker (a disease affecting
citrus growing plants).

Funding source(s)  o  	Transfers from Department of Agriculture's
Commodity Credit Corporation.

a

Total outlays (gross)  o  $98 million in agency reimbursements to owners

b

                      Obligated balance  o  Not applicable

c

                     Unobligated balance  o  Not applicable

                   Number of FTE employees  o  Not availabled

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-1600-0-1-352, pp. 8789; and U.S.
Department of Agriculture.

aThe $98 million in reimbursements to animal and plant owners is about 8
percent of the account's $1,153 million in total outlays (gross).

bThe obligated balance for the reimbursements for departmental activity
related to destroyed animals is not reported separately from the Animal
and Plant Health Inspection Service Salaries and Expenses account in the
budget.

cThe unobligated balance for the reimbursements for departmental activity
related to destroyed animals is not reported separately from the Animal
and Plant Health Inspection Service Salaries and Expenses account in the
budget.

dFTEs are not separately determined for reimbursements for departmental
activity related to destroyed animals and plants.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                     Table 56: Check Forgery Insurance Fund

Administering organization 	Financial Management Service, U.S. Department
of the Treasury

Insurance description 	This account funds the replacement of forged and
stolen U.S. Treasury checks. Losses are incurred when the fund is unable
to recover from parties responsible for the thefts or forgeries. In fiscal
year 2003, total losses, gross were about $23 million of which $20 million
were recovered and $3 million were unrecovered. Losses may be recovered
through claims made against a forger or thief, or against the financial
institution that negotiated the forged or stolen check.

Funding source(s)  o  Appropriations and offsetting collections

Total outlays (gross)  o  $23 million

Obligated balance  o  $1 million

Unobligated balance  o  $8 million

                   Number of FTE employees  o  Not availablea

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-4109-0-3-803, p. 847; and U.S.
Department of the Treasury.

a Staff are devoted to this activity part-time.

                     Table 57: Fishermen's Contingency Fund

Administering organization 	National Oceanic and Atmospheric
Administration, U.S. Department of Commerce

Insurance description 	The account compensates U.S. commercial fishermen
for damage and losses to their fishing equipment when debris from U.S.
Outer Continental Shelf activities related to oil and gas exploration,
development, or production damage fishing boats and related fishing gear.
The fund also compensates fishermen for 50 percent of their gross economic
loss when damage to boats and equipment prevents them from fishing or
causes them to reduce their fishing efforts. Eighteen claims totaling
$108,000 were paid in fiscal year 2003.

Funding source(s)  o  	Assessments on oil and gas companies operating on
the Outer Continental Shelf and interest on invested balances, and funds
recovered by the government by persons responsible for covered damages.

Total outlays (gross)  o  $1 million

Obligated balance  o  $0

                     Unobligated balance  o  $1.25 million

Number of FTE employees  o  1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 13-5120-0-2-376, pp. 222223; and U.S.
Department of Commerce.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 58: Homeowners Assistance Fund

             Administering organization U.S. Department of Defense

Insurance description 	The account provides funds to reduce the financial
hardship or loss to military, Coast Guard, and civilian personnel when
Department of Defense base realignments or closures require them to
relocate and dispose of their homes. Eligible personnel may be reimbursed
for certain losses that result from the forced sale of their homes. In
fiscal year 2003, homeowners made 110 claims and received $2.4 million in
assistance.

Funding source(s)  o  	Appropriations and revenue from the sale of homes
the Defense Department acquires as a result of base realignments or
closures

                      Total outlays (gross)  o  $9 million

                        Obligated balance  o  $1 million

                      Unobligated balance  o  $18 million

Number of FTE employees  o  10

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 97-4090-0-3-051, pp. 309; and U.S.
Department of Defense.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 59: National Endowment for the Arts (Arts and Artifacts Indemnity Program)

Administering organization Federal Council on the Arts and Humanities

Insurance description 	The program provides insurance coverage for losses
or damages to artifacts in exhibitions from abroad while traveling in the
United States. Such exhibits include artwork, artifacts, or rare documents
with educational, cultural, historical, or scientific value that are
certified by the U.S. Department of State as being in the national
interest. The exhibits may come from foreign state and private museums,
and private collections. Any domestic museum that seeks to bring an
exhibit into the United States from abroad may apply for coverage of up
$600 million. Total coverage of all exhibits under the program at any
given time may not exceed $8 billion. By making this insurance coverage
available, the program seeks to provide U.S. citizens an opportunity to
see exhibits from abroad. At the end of fiscal year 2003, the program had
$4.98 billion in insurance in force on 33 exhibitions that if obtained
commercially would have cost exhibitors an estimated $13.3 million in
premiums.

Funding source(s)  o  Special appropriations that cover claims

o  	Administrative expenses that are absorbed by the National Endowment
for the Arts

Total outlays (gross)  o  	$104,700 for two claims since the program began
in 1975.

o  $100,000 annually in administrative costs

                            Obligated balance  o  $0

                           Unobligated balance  o  $0

                         Number of FTE employees  o  1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 59-0100-0-1-503, pp. 11591160; and
Federal Council on the Arts and Humanities.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 60: Oil Spill Liability Trust Fund

Administering organization 	National Pollution Funds Center, U.S. Coast
Guard, U.S. Department of Homeland Security

Insurance description 	The insurance pays valid claims from parties
damaged by oil spills in navigable waters and from onshore production and
storage facilities when a responsible party does not pay. The damage must
have occurred after August 17, 1990. Costs and damages covered by the fund
include uncompensated oil removal costs, damages to natural resources,
damages to real or personal property, loss of subsistence, loss of
government revenues, and increased costs of public services. Any
individual, corporation, or state or local government can present a claim
for uncompensated removal costs or damages. The account paid $50 million
to remove 551 oil spills and $24 million to settle 255 claims in fiscal
year 2003. During the same period, over 19,000 vessels and over 1,100
operating companies were regulated through the National Pollution Funds
Center.

Funding source(s)  o  	Fines and penalties, cost recoveries, and interest
on investments

Total outlays (gross)  o  $76 million

                       Obligated balance  o  $123 million

Unobligated balance  o  $31 million

                   Number of FTE employees  o  Not availablea

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-8185-0-7-304, p. 495; and U.S.
Department of Homeland Security.

aThe National Pollution Funds Center office had 112 FTEs that administered
this and other activities.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 61: Postal Service Fund (Domestic and Foreign Mail Indemnity Claim
Fund)

Administering organization U.S. Postal Service

Insurance description 	In addition to its primary purpose of funding
various postal activities, the fund supports the activities of the U.S.
Postal Service Domestic and Foreign Mail Indemnity Program, under which
postal customers can purchase up to $5,000 of insurance against loss or
damage to mailed items. During fiscal year 2003, the U.S. Postal Service
processed approximately 270,000 mail indemnity claims.

Funding source(s)  o  Fees collected from customers

a

Total outlays (gross)  o  $24 million for claims

Obligated balance  o  Not availableb

Unobligated balance  o  Not availablec

Number of FTE employees  o  27 for claims over $50d

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 18-4020-0-3-372, pp. 11741176; and U.S.
Postal Service.

aTotal outlays (gross) are for the Domestic And Foreign Mail Indemnity
Program and not for the entire account.

bThe obligated balance for the Domestic and Foreign Mail Indemnity Program
is not reported separately from the postal service fund account in the
budget and is, therefore, not available.

cThe unobligated balance for the Domestic And Foreign Mail Indemnity
Program is not reported separately from The Postal Service Fund account in
the budget and is, therefore, not available.

dClaims for losses or damages of $50 or less are typically processed and
resolved at the windows of the thousands of local post offices throughout
the country. The local post offices do not maintain records of the amount
of staff time spent processing such claims.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                Table 62: Surety Bond Guarantees Revolving Fund

Administering organization U.S. Small Business Administration

Insurance description 	The fund provides bond guarantees of up to $2
million to surety companies that enter into construction, service, and
supply contracts with contractors that cannot obtain surety bonds through
regular commercial channels or otherwise compete in the contracting
industry due to such factors as size or newness to the industry.
Contractors must meet the surety's bonding qualifications and qualify as a
small business. The program will reimburse surety companies up to 90
percent of the losses they sustain if a contractor defaults. In fiscal
year 2003, 25 surety companies received bond guarantees.

Funding source(s)  o  	Fees from surety companies, recoveries from
defaulting contractors, and appropriations

                      Total outlays (gross)  o  $9 million

Obligated balance  o  $0

                      Unobligated balance  o  $23 million

Number of FTE employees  o  25

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 73-4156-0-3-376, p. 1068; and U.S. Small
Business Administration.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Natural Disaster Compensation (Tables 63-65)

Table 63: Farm Service Agency Salaries and Expenses (Non-Insured Crop
Disaster Assistance Program)

Administering organization Farm Service Agency, U.S. Department of
Agriculture

Insurance description 	The account provides crop loss protection to
producers of crops (of food or fiber) that are not insurable and for which
catastrophic natural disaster insurance is unavailable. To be eligible for
coverage, among other things, the natural disaster must occur before or
during the harvest and must directly affect the crop. Eligible events
include drought, tornados, hurricanes, earthquakes, and floods. Conditions
related to these events may also be eligible for coverage such as disease
or insect infestation. In fiscal year 2003, 63,932 producers were covered.

Funding source(s)  o  	Service fees and the Department of Agriculture,
Commodity Credit Corporation

                    Total outlays (gross)  o  Not available

                      Obligated balance  o  Not available

                     Unobligated balance  o  Not available

                   Number of FTE employees  o  Not availablea

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-0600-0-1-351, pp. 103104; and U.S.
Department of Agriculture.

aStaff in 2,500 U.S. Department of Agriculture Service Centers in all 50
states provide fractional units of administrative time.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 64: Federal Crop Insurance Corporation Fund

Administering organization Risk Management Agency, U.S. Department of
Agriculture

Insurance description 	The fund provides crop producers multi-peril and
catastrophic crop insurance protection against losses from unavoidable
natural events and market fluctuations. Under various insurance plans,
producers of wheat, feed grains, soybeans, rice, cotton, and other crops
receive protection against revenue losses resulting from low prices, poor
yields, or a combination of both. Compensation is provided for losses up
to a certain percentage of the expected market price or average crop
yield. Premiums charged to producers are partially or fully subsidized,
depending on the level of insurance protection obtained. At the end of
crop year 2003, the program had $40,586 billion of insurance in force in
50 states and 3,067 counties.

Funding source(s)  o  Premium income from farmers and appropriations

                    Total outlays (gross)  o  $4,087 million

                       Obligated balance  o  $120 million

                     Unobligated balance  o  $1,854 million

Number of FTE employees  o  568 ceiling

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-4085-0-3-351, p. 102; and U.S.
Department of Agriculture.

                    Table 65: National Flood Insurance Fund

Administering organization 	Mitigation Division, Federal Emergency
Management Agency, U.S. Department of Homeland Security

Insurance description 	The fund was created to, among other things,
provide federally backed insurance to homeowners, renters, and business
owners in flood-prone communities. In exchange for the insurance, eligible
communities must adopt and enforce floodplain management ordinances
intended to reduce future flood damage. Insurance coverage may be in
amounts of up to $350,000 for residential buildings and $1 million for
other types of buildings. At the end of fiscal year 2003, $662 billion of
flood insurance was in force on 4.4 million policies, covering 20,000
communities. Premium income totaled $1.9 billion during the fiscal year.

Funding source(s)  o  	Premium and fee income, investment income, and
authorization to borrow from the U.S. Treasury

                    Total outlays (gross)  o  $1,097 million

                       Obligated balance  o  $615 million

                     Unobligated balance  o  $1,440 million

Number of FTE employees  o  239

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-4236-0-4-453, p. 503; and U.S.
Department of Homeland Security.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Political and War Risk

                  Table 66: Aviation Insurance Revolving Fund

Insurance

(Tables 66-71) Administering organization 	Federal Aviation
Administration, U.S. Department of Transportation

Insurance description 	The insurance covers commercial aircraft that
provide essential air service during extraordinary circumstances- such as
war and other hostilities-when such insurance is unavailable commercially
or under reasonable terms and conditions. The insurance also provides
protection for U.S. aircraft used by the U.S. Departments of Defense and
State in certain government contract operations. The Federal Aviation
Administration provides war risk insurance for (1) aircraft hull loss and
(2) passenger and third party liability for damage or destruction of
property, personal injury, or death. The insurance covers civil aircraft
operations losses above $50 million and up to $100 million. As of July 3,
2004, 115 policies were in force. No claims were made or paid in fiscal
year 2003.

Funding source(s)  o  	Premiums and fees paid by commercial aircraft
owners and income from investments in U.S. Treasury securities

                     Total outlays (gross)  o  $15 million

Obligated balance  o  $5 million

                      Unobligated balance  o  $218 million

Number of FTE employees  o  3

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 69-4120-0-3-402, pp. 768769; and U.S.
Department of Transportation.

                      Table 67: Fishermen's Guaranty Fund

Administering organization U.S. Department of State

Insurance description 	This fund compensates commercial fishermen for
financial losses resulting from the seizure of their fishing vessels in a
foreign country and for allowed resulting economic losses, including the
loss of equipment, confiscation of catch, and loss of fishing time. No
claims were filed or paid in fiscal year 2003.

Funding source(s)  o  No funding requested or received for the fiscal year

Total outlays (gross)  o  $0

Obligated balance  o  $0

Unobligated balance  o  $3 million

                   Number of FTE employees  o  Less than one

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 19-5121-0-2-376, p. 758759; and U.S.
Department of State.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 68: Fishermen's Protective Fund

              Administering organization U.S. Department of State

Insurance description 	The fund provides financial compensation for losses
to owners of fishing vessels by reimbursing them for fines, fees and other
charges they incur to secure the release of their vessels and crews when
seized by foreign governments. The fund does not cover seizures by
countries at war with the United States or seizures that are in accordance
with conventions or treaties between the United States and foreign
governments.

Funding source(s)  o  	No funding in fiscal year 2003 and no new budget
authority requested for fiscal years 2004 and 2005

Total outlays (gross)  o  $0

Obligated balance  o  $0

Unobligated balance  o  $1 million

                   Number of FTE employees  o  Less than one

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 19-5121-0-2-376, p. 758759; and U.S.
Department of State.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 69: Overseas Private Investment Corporation Noncredit Account

Administering organization Overseas Private Investment Corporation

Insurance description 	This account funds political risk insurance for
U.S. investors, contractors, exporters, and financial institutions
involved in international transactions. The insurance provides protection
against asset losses resulting from, among other things, (1) deterioration
of a developing country's currency relative to the U.S. dollar that could
impede an investor's ability to transfer profits and meet debt
obligations; (2) nationalization, confiscation, or expropriation of
investments by a foreign government; and (3) war, revolution,
insurrection, terrorism, or political strife. The insurance generally
covers 90 percent of an investment for up to 20 years. At the end of
fiscal year 2003, the program had $11.9 billion of insurance in force,
which was about 41 percent of the statutory limit of $29 billion. The
program has paid about $1 billion in claims since its origination in 1949.

Funding source(s)  o  	Income from political risk insurance premiums and
interest income from U.S. Treasury securities and loans

Total outlays (gross)  o  $76 million

Obligated balance  o  $63 million

                     Unobligated balance  o  $3,608 million

Number of FTE employees  o  23a

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 71-4184-0-3-151, pp. 10121013; and
Overseas Private Investment Corporation.

aThe 23 FTEs reported are less than half of the total FTEs for fiscal year
2003 when indirect FTEs are included.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

Table 70: Terrorism Insurance Program

Administering organization 	Terrorism Risk Insurance Office, U.S.
Department of the Treasury

Insurance description 	Through this insurance the federal government,
insurers, and policyholders share the risk of property and casualty losses
resulting from terrorist acts. Coverage is for fiscal years 2003 through
2005 and is limited to foreign-related terrorist acts, as defined by law,
that result in more than $5 million of property and casualty insurance
losses. Under the enacting legislation, generally all insurers must offer
coverage (1) to any person or entity that purchases commercial property
and casualty insurance coverage within the United States, and (2) for U.S.
air carriers and maritime vessels operating outside the United States. If
an act of terrorism occurs, the federal government's share is 90 percent
of the insured losses that are in excess of an insurer's deductible, with
overall insured loss payments subject to an aggregate annual cap of $100
billion. While no upfront charge is made for the federal government's
reinsurance-type coverage under the program, the federal government has
mandatory and discretionary authority to recoup the federal share of
compensation through subsequent policyholder surcharges.

Funding source(s)  o  Permanent indefinite appropriationa

                       Total outlays (gross)  o  $564,000

                       Obligated balance  o  $3.5 million

                      Unobligated balance  o  $4.9 million

Number of FTE employees  o  8

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-0123-0-1-376, p. 832; and U.S.
Department of the Treasury.

aThe legislation provides for the mandatory and discretionary recoupment
of the federal share of compensation for insured losses through
prospective policyholder surcharges, not to exceed 3 percent of the
premium charged for the policy's property and casualty coverage, and for
the remittance of the surcharges to the Secretary of the Department of the
Treasury.

Enclosure II: Description of Accounts Funding Federal Insurance Provided
to Entities Other Than the Federal Government

                  Table 71: War Risk Insurance Revolving Fund

Administering organization 	Maritime Administration, U.S. Department of
Transportation

Insurance description 	The insurance protects against wartime damage to or
loss of, among other things, shipping vessels and their cargo. It also
covers the death or injury of vessel crew. The goal of the insurance is to
preserve the regular flow of commerce and the availability of merchant
vessels for national defense when commercial insurance cannot be obtained
on reasonable terms and conditions. When damage or loss occurs, the
Maritime Administration initially pays claims, but is then reimbursed by
the Department of Defense. In fiscal year 2003, 97 policies were issued.
Between September 28, 2001, and April 1, 2004, 315 policies were in force,
covering $10 billion in risk.

Funding source(s) Premiums, fees, and investment income

Total outlays (gross) $50,000

Obligated balance $0

                        Unobligated balance $37 million

Number of FTE employees 2

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 69-4302-0-3-403, p. 815; and U.S.
Department of Transportation.

                   Enclosure III: Federal Deposit Insurance,
                     Pension Insurance, and Loan Guarantees

Federal Deposit and Pension Insurance

This enclosure lists 64 federal deposit insurance, pension insurance, and
loan guarantee activities that, like the activities included in enclosure
II, provide federal insurance to entities other than the federal
government. The enclosure also provides a description of each of these
three categories of insurance, with the activities listed alphabetically
under each category by administering organization. We have also included
certain quantitative data to provide a perspective on relative size and
activity level, including outlays, obligated balances, and unobligated
balances for federal deposit insurance and pension insurance and federally
guaranteed amounts outstanding for federal loan guarantees.

Federal deposit insurance protects individual depositors from financial
loss should the depository institutions holding their deposits fail. The
protection is capped at a maximum dollar amount per individual account and
covers deposits in commercial banks, savings associations (thrifts), and
most credit unions. Federal deposit insurance is intended to promote U.S.
financial stability and prevent bank failures from causing widespread
disruption in the financial markets. Federal deposit insurance activities
are funded primarily by assessments collected from financial institutions
with federal deposit insurance and investment income. Table 72 below
provides data on the four federal deposit insurance accounts, three of
which are administered by the Federal Deposit Insurance Corporation and
one by the National Credit Union Administration.

Pension insurance protects pensioners against loss of benefits if their
private sector defined benefit pension plans are terminated or unable to
pay benefits. Employers provide defined benefit pension plans and commit
to paying employees a specific benefit for life, typically through
annuities. Pension plans are sometimes unable to pay benefits if employers
underfund them or become insolvent. The federal government provides
pension insurance through the Pension Benefit Guaranty Corporation, which
covers millions of workers and retirees participating in private sector
pension plans. As shown in table 72, the insurance activities of the
Pension Benefit Guaranty Corporation are funded through trust funds
established in the Pension Benefit Guaranty Corporation Fund, which is
administered by the Department of Labor. The account is funded primarily
by investment income, appropriations, and premiums collected from
employers whose pension plans are insured.

Enclosure III: Federal Deposit Insurance, Pension Insurance, and Loan Guarantees

Table 72: Federal Deposit Insurance and Federal Pension Insurance Agencies
and Accounts, Fiscal Year 2003

                             (Dollars in millions)

Obligated Unobligated Accounts Outlays balance balance

                       Federal Deposit Insurance Accounts

Federal Deposit Insurance Corporation National Credit Union Administration

                              Bank Insurance Fund  $2,487    $31,262      $37 
               Federal Savings and Loan Insurance                      
                      Corporation Resolution Fund   $504      $3,268       $2 
               Savings Association Insurance Fund   $371     $11,505       $4 

National Credit Union Share
Insurance Fund $72 $6,081 ($277)

                       Federal Pension Insurance Account

U.S. Department of Labor

Pension Benefit Guaranty
Corporation Fund $2,529 $12,219 $98

Federal Loan Guarantees

Source: Appendix, Budget of the United States Government, Fiscal Year
2005.

Federal loan guarantees are intended to reduce the price and increase the
availability of credit for particular uses. These agreements involve three
parties-a lender, a borrower, and the federal government as guarantor. The
lender agrees to provide a loan to the borrower if the federal government
agrees to repay a portion or all of the loan should the borrower default.
Federal loan guarantees are often funded by fees collected from borrowers
and lenders, although many are also funded fully or partially by
appropriations. According to the Congressional Budget Office, more than
two-thirds of the $365 billion in new loans the federal government
guaranteed in fiscal year 2003 were for home mortgages. Other loan
guarantees went to companies in specific sectors, such as the airline,
steel, oil, and gas industries.

We identified 59 federally guaranteed loan activities with aggregate
federally guaranteed amounts outstanding of at least $834 billion at the
end of fiscal year 2003 (table 73). Many of these activities have up to
three accounts associated with them-a liquidating, financing, and/or
program account. Government cash flows for loan guarantees may be recorded
either in liquidating accounts or financing accounts, depending on whether
the guarantees were made before, or on or after October 1, 1991,

Enclosure III: Federal Deposit Insurance, Pension Insurance, and Loan
Guarantees

respectively. Program accounts are used to record federal administrative
and subsidy costs associated with loan guarantees made after 1991. In the
table below, we did not separately list each of the accounts associated
with the 59 activities. Rather, when more than one account existed, we
listed the activity itself and presented the aggregated financial data as
appropriate.

                   Table 73: Federal Guaranteed Loan Activity

Federal Entity

                                                         Federally guaranteed
                                                           amount outstanding
                                                           at fiscal year-end
                                                             2003 (dollars in
                       Name of the Federal Guaranteed Loan Activity millions)

                   U.S. Agency for International Development

Development Credit Authority Guaranteed Loan
Accounts $28

Housing and Other Credit Guaranty Programs $1,361

Loan Guarantees to Israel Accounts $10,789

Microenterprise and Small Enterprise Development
Guaranteed Loans $25

Urban and Environmental Credit Program Guaranteed
Loans $540

                    Export-Import Bank of the United States

Export-Import Bank Guaranteed Loan Accounts $33,502

                       International Security Assistance

Foreign Military Loan Liquidating Account $3,146

International Security Assistance Economic Support
Fund N.A.a

                    Overseas Private Investment Corporation

Overseas Private Investment Corporation Guaranteed
Loan Accounts $3,119

Presidio Trust

10 Presidio Trust Fund N.A.a 11 Presidio Trust Guaranteed Loan Accounts $0

U.S. Small Business Administration

12 Business Guaranteed Loan Accounts $51,525 13 Business Loan Fund
Liquidating Account $666 14 Disaster Loan Fund Liquidating Account N.A.a
15 Pollution Control Equipment Fund $8

Enclosure III: Federal Deposit Insurance, Pension Insurance, and Loan
Guarantees

U.S. Department of Agriculture

            16    Agricultural Credit Insurance Fund Guaranteed Loan 
                                                            Accounts   $9,301 
                    Agricultural Resource Conservation Demonstration 
                                            Guaranteed Loan Accounts      $12 
                 Commodity Credit Corporation Export Guaranteed Loan 
                                                            Accounts   $3,656 
                            Local Television Loan Guarantee Accounts       $0 
                         Rural Business and Industry Guaranteed Loan 
                                                            Accounts   $3,226 
                         Rural Business Investment Program Guarantee 
                                                            Accounts    N.A.a 
                    Rural Communication Development Fund Liquidating 
                                                             Account       $4 
                                 Rural Community Advancement Program    N.A.a 
                   Rural Community Facility Guaranteed Loan Accounts     $373 
                Rural Development Insurance Fund Liquidating Account      $46 
                         Rural Electrification and Telecommunication 
                                            Guaranteed Loan Accounts     $516 
                        Rural Housing Insurance Fund Guaranteed Loan 
                                                            Accounts  $12,088 
                      Rural Water and Waste Disposal Guaranteed Loan 
                                                            Accounts      $29 

                          U.S. Department of Commerce

Economic Development Revolving Fund Liquidating
Account N.A.a

Emergency Oil and Gas Guaranteed Loan Accounts $2

Emergency Steel Guaranteed Loan Accounts $156

32 	Federal Ship Financing Fund Fishing Vessels Liquidating Account $23

33 Fisheries Finance Guaranteed Loan Accounts $32

U.S. Department of Defense

         34        Arms Initiative Guaranteed Loan Account            $24 
         35         Defense Export Loan Guarantee Accounts             $0 
         36       Family Housing Improvement Guaranteed Loan    
                                   Accounts                          $389 

U.S. Department of Education

37 Federal Family Education Loan Accounts $81,448 38 Federal Student Loan
Reserve Fund $0

U.S. Department of Health and Human Services

                  39 Health Center Guaranteed Loan Accounts $8

Enclosure III: Federal Deposit Insurance, Pension Insurance, and Loan
Guarantees

              40         Health Education Assistance Loan Accounts     $2,345 
              41     Health Maintenance Organization Loan and Loan 
                                                    Guarantee Fund         $0 
                        Medical Facilities Guarantee and Loan Fund        $13 

                U.S. Department of Housing and Urban Development

Community Development Loan Guarantees Accounts $2,230

FHA General and Special Risk Guaranteed Loan
Accounts $72,048

FHA General and Special Risk Insurance Funds
Liquidating Account $17,070

FHA-Loan Guarantee Recovery Fund Accounts $5

FHA Mutual Mortgage and Cooperative Housing
Insurance Funds Liquidating Account $24,952

FHA Mutual Mortgage Insurance Guaranteed Loan
Accounts $382,234

Indian Federal Guarantees Accounts $71

Indian Housing Loan Guarantee Fund Accounts $61

Low-Rent Public Housing-Loans $1,916

Native Hawaiian Housing Loan Guarantee Fund $0

                        U.S. Department of the Interior

Indian Guaranteed Loan Accounts $274

Indian Loan Guaranty and Insurance Fund Liquidating
Account $13

                       U.S. Department of Transportation

       55     Federal Ship Financing Fund Liquidating Account         $78 
       56        Maritime Guaranteed Loan Title XI Accounts        $3,465 
       57    Minority Business Resource Center Guaranteed Loan   
                                  Accounts                             $7 

U.S. Department of the Treasury

58 	Air Transportation Stabilization Guaranteed Loan Accounts $1,473

U.S. Department of Veterans Affairs

59 Housing Guaranteed Loan Accounts (Veterans) $110,109

Totals $834,406

Source: Appendix, Budget of the United States Government, Fiscal Year
2005.

aData are not available

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

This enclosure describes 22 federal self-insurance activities with outlays
in fiscal year 2003. The activities involve expenditures for damages to
government property and losses associated with litigation and claims,
including compensation for employment discrimination. As we have noted,
less information is generally available for these activities than for
others we identified because the federal budget does not generally report
them separately from activities related to the agency's overall mission or
operations.

We identify the activities in this enclosure by the name of the budget
account that funds them. The information is from budget documents, agency
officials, agency annual reports, and agency Websites. However, given the
lack of detailed information in the budget, we obtained most of the
quantitative data from agency officials. These data are for fiscal year
2003, unless otherwise indicated.

The self-insurance activities in this enclosure are presented
alphabetically by administering organization and include the following
information: (1) administering organization(s), (2) insurance description,
(3) outlays, and (4) number of full-time equivalent (FTE) employees.

Agency for International Development (Table 74)

Table 74: Operating Expenses of the United States Agency for International
Development

Administering organization U.S. Agency for International Development

Insurance description 	In addition to the account's primary purpose of
funding the operations and salaries of the agency, the account pays
insurance claims and legal settlements related to personal property loss
or damage caused by foreign service personnel. For personal property
claims, the federal government is liable for up to $40,000 per claim or up
to $100,000 if the loss or damage occurred under emergency circumstances.
The Secretary of State may waive the limitations under exceptional
circumstances.

                        Outlays  o  Less than $1 million

Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 72-1000-0-1-151, p. 1001; and U.S.
Agency for International Development.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

Securities and Exchange Table 75: Securities and Exchange Commission,
Salaries and Expenses

Commission

(Table 75) Administering organization U.S. Securities and Exchange
Commission

Insurance description 	In addition to its primary purpose of funding the
administration and enforcement of federal securities laws and maintaining
fair, honest, and efficient markets, this account pays for insurance
claims and indemnities, including claims filed against the Securities and
Exchange Commission by its employees for damages from auto accidents and
lawsuits.

                              Outlays  o  $948,000

                        Number of FTE employees  o  1-2

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 50-0100-0-1-376, pp. 11821183; and U.S.
Securities and Exchange Commission.

Social Security Table 76: Social Security Administration, Limitation on
Administrative Expenses

Administration

(Table 76) Administering organization U.S. Social Security Administration

Insurance description 	In addition to its primary purpose of paying the
expenses to administer benefit programs, including the Old Age and
Survivors Insurance, Disability Insurance, and Supplemental Security
Income programs, the account funds insurance claims and indemnities. These
include annual payments to the Department of Labor for administering
workers compensation claims for Social Security Administration employees
and payment of

a

attorney fees under the Equal Access to Justice Act.

                            Outlays  o  $20 million

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 28-8704-0-7-651, p. 1083; and U.S.
Social Security Administration.

aCodified at 5 U.S.C. S: 504.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of Agriculture (Tables 77-79)

Table 77: Capital Improvement and Maintenance

Administering organization Forest Service, U.S. Department of Agriculture

Insurance description 	In addition to its primary purpose of funding the
construction, reconstruction, maintenance, and acquisition of Forest
Service facilities, the account funds insurance claims and indemnities
covering personal injuries to Forest Service employees, damage to or
destruction of Forest Service vehicles or other property, and equal
employment opportunity claims.

Outlays  o  	Approximately $700,000 for insurance claims and indemnities

Number of FTE employees  o  Approximately 20 for 3 accountsa

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-1103-0-1-302, pp. 180182; and U.S.
Department of Agriculture.

aThe Department of Agriculture could not separately report the FTEs for
the self-insurance activities of three accounts: (1) Forest Service,
Capital Improvement and Maintenance; (2) Wildland Fire Management; and (3)
National Forest System.

                       Table 78: Wildland Fire Management

Administering organization Forest Service, U.S. Department of Agriculture

Insurance description 	In addition to its primary purpose of funding U.S.
Forest Service fire management and suppression efforts, the account funds
insurance claims and indemnities covering personal injuries to Forest
Service employees, damage to or destruction of Forest Service vehicles or
other property, and equal employment opportunity claims.

Outlays  o  	Approximately $700,000 for insurance claims and indemnities

Number of FTE employees  o  Approximately 20 for 3 accountsa

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-1115-0-1-302, pp. 184186; and U.S.
Department of Agriculture.

aThe Department of Agriculture could not separately report the FTEs for
the self-insurance activities of three accounts: (1) Forest Service,
Capital Improvement and Maintenance; (2) Wildland Fire Management; and (3)
National Forest System.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

Table 79: National Forest System

Administering organization Forest Service, U.S. Department of Agriculture

Insurance description 	In addition to its primary purpose of funding the
Forest Service's expenses for managing, protecting, improving, and
utilizing the national forest system, the account funds insurance claims
and indemnities for personal injuries to Forest Service employees, damage
to or destruction of Forest Service vehicles or other property, and equal
employment opportunity claims.

Outlays  o  $1.7 million

Number of FTE employees  o  Approximately 20 for 3 accountsa

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 12-1106-0-1-302, pp. 179180; and U.S.
Department of Agriculture.

aThe Department of Agriculture could not separately report the FTEs for
the self-insurance activities of three accounts: (1) Forest Service,
Capital Improvement and Maintenance; (2) Wildland Fire Management; and (3)
National Forest System.

U.S. Department of Table 80: Revolving FundDefense

(Table 80)

Administering organization 	U.S. Army Corps of Engineers, U.S. Department
of Defense

Insurance description 	In addition to its primary purpose of funding the
acquisition, operation, and maintenance of plant and equipment used in
Corps of Engineers civil works projects, the account provides resources
for insurance claim and indemnity activities that cover, among other
things, damage to and by Corps of Engineers' plant and equipment. The
insurance is funded by premiums paid by users of the fund's assets. Fund
users include civil works projects such as flood control and navigation
projects that are serviced by fund assets. Assets include buildings,
cranes, boats, and various types of vehicles.

Outlays  o  	Approximately $633,000 for insurance claim and indemnity
activities

                  Number of FTE employees  o  Approximately 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 96-4902-0-4-301, pp. 917918; and U.S.
Department of Defense.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of Health and Human Services (Tables 81-82)

Table 81: Food and Drug Administration, Salaries and Expenses

Administering organization 	Food and Drug Administration, U.S. Department
of Health and Human Services

Insurance description 	In addition to its primary purpose of paying the
salaries and operating expenses of the Food and Drug Administration, the
account pays (1) claims submitted by Food and Drug Administration civilian
employees for injuries, deaths, and property loss or damage associated
with work-related duties and (2) settlements of claims under equal
employment opportunity laws. The Food and Drug Administration had 9,691
civilian employees in fiscal year 2004.

Outlays  o  $2.8 million for claims and settlements

                         Number of FTE employees  o  2

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-9911-0-1-554, p. 422; and U.S.
Department of Health and Human Services.

Table 82: Substance Abuse and Mental Health Services Administration

Administering organization 	Substance Abuse and Mental Health Services
Administration, Department of Health and Human Services

Insurance description 	In addition to funding the account's primary
purpose of helping people recover from substance abuse and mental
illnesses, the account pays insurance claims and indemnities that include
compensation for personal injury or death and attorney fees for claims
under the Equal

                                       a

Access to Justice Act. The fund paid about 76 claims in fiscal year 2003.

Outlays  o  	$1.8 million for workers compensation, Equal Access to
Justice Act, and other claims

                    Number of FTE employees  o  Less than 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 75-1362-0-1-551, p. 440; and U.S.
Department of Health and Human Services.

a5 U.S.C. S: 504.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of Table 83: Customs and Border Protection Homeland Security

(Tables 83-86) Administering organization 	Customs and Border Protection,
U.S. Department of Homeland Security

Insurance description 	U.S. Customs and Border Protection self-insures for
obligations resulting from property damage that occurs during customs
inspections. The agency pays up to $1,000 for each incident for which it
is determined to be negligent or otherwise liable, subject to the
provisions of the Federal Tort Claims Act.a Negligence would not be
attributed to damages that are the necessary or unavoidable result of
conducting an inspection but could be attributed to damages that are
incidental to an inspection. For example, the agency would not be liable
for damages to a car's gasoline tank that resulted from dismantling it to
determine whether contraband was inside, but could be liable for damages
to the car's brakes that occurred during the dismantling of the gas tank.
About two hundred selfinsurance payments were made in fiscal year 2003.
The payments accounted for 0.1 percent of the account's total outlays
(gross) of $5,294 million in fiscal year 2003.

Outlays  o  $600,000

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-0350-0-1-999, pp. 478479; and U.S.
Department of Homeland Security.

aCh. 753, Title IV, 60 Stat. 842 (Aug. 2, 1946) (current version codified
in scattered sections of title 28, United States Code).

Table 84: Citizenship and Immigration Services

Administering organization 	Citizenship and Immigration Services, U.S.
Department of Homeland Security

Insurance description 	In addition to its primary purpose of funding
activities related to the legal immigration of people seeking to enter,
reside, and/or work in the United States, the account funds insurance
claim and indemnity activities that consist of paying equal employment
opportunity and contractor claim settlements and related attorney fees. In
fiscal year 2003, 3 equal employment opportunity claims, and 11 attorney
fee awards were paid.

                      Outlays  o  $600,000 in fee payments

Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-0300-0-1-751, pp. 474475; and U.S.
Department of Homeland Security.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

Table 85: Federal Protective Service

Administering organization 	Federal Protective Service, U.S. Department of
Homeland Security

Insurance description 	In addition to its primary purpose of providing
funding for policing, securing, and insuring a safe environment for over
8,800 federal facilities nationwide, the account funds insurance claim and
indemnity activity that consists of paying tort claims for damages caused
by Federal Protective Service employees or equipment. The account provides
coverage for all 1,453 Federal Protective Service employees.

Outlays  o  $115,047 for damage claims

Number of FTE employees  o  Approximately 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-0542-0-1-804, pp. 482483; and U.S.
Department of Homeland Security.

Table 86: United States Coast Guard Operating Expenses

Administering organization U.S. Coast Guard, U.S. Department of Homeland
Security

Insurance description 	In addition to its primary purpose of funding U.S.
Coast Guard general operating and maintenance expenses, the account funds
benefit payments to eligible military and civilian Coast Guard employees
from the social insurance and federal retirement trust funds. The account
also pays for settlements of equal employment opportunity claims. All
39,219 Coast Guard employees in fiscal year 2003 were covered by the
insurance.

                       Outlays  o  $1.6 million in claims

Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 70-0610-0-1-999, pp. 488489; and U.S.
Department of Homeland Security.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of
Interior
(Tables 87-88)

Table 87: Resource Management

Administering organization Fish and Wildlife Service, U.S. Department of
the Interior

Insurance description 	In addition to its primary purpose of funding the
operations of the U.S. Fish and Wildlife Service, the account funds
insurance claim and indemnity activities including vehicle tort, equal
employment opportunity, and human resource claim settlements. In fiscal
year 2003, 31 individuals received professional liability payments, 11
individuals or firms received indemnity or settlement claim payments, and
about 35 individuals or insurance companies received vehicle tort claim
payments.

Outlays  o  	$533,048 for professional liability and indemnity or
settlement claims

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 14-1611-0-1-302, pp. 602603; and U.S.
Department of the Interior.

Table 88: Natural Resource Damage Assessment Fund

Administering organization 	Natural Resource Damage Assessment and
Restoration Program Office, U.S. Department of the Interior

Insurance description 	The account funds the restoration of natural
resources entrusted to the Department of the Interior that have been
injured as a result of oil spills or hazardous substance releases. Account
activities include assessing the injury to natural resources and
negotiating legal settlements or taking other legal actions against the
responsible parties. Settlement funds are used to restore the injured
resources at no expense to taxpayers.

                           Outlays  o  Not available

Number of FTE employees  o  4

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 14-1618-0-1-302, pp. 641642; and U.S.
Department of the Interior.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of Justice Table 89: Drug Enforcement Administration,
Salaries and Expenses (Tables 89-90)

Administering organization 	Drug Enforcement Administration, U.S.
Department of Justice

Insurance description 	In addition to its primary purpose of funding
necessary expenses of the Drug Enforcement Administration, including
salaries, training, and data processing and communications equipment, this
account pays for property damages, agency adjudicated awards, litigated
awards, and settlements. Examples include awards for cases filed under the
Equal Access to Justice Act,a automobile repair expenses, and automobile
collision damages. Claims of $2,500 or less are paid by the Drug
Enforcement Administration, and claims of over $2,500 are paid by the
Department of Treasury Judgment Fund. In fiscal year 2003, 235 claims were
paid.

Outlays  o  	$734,743 for Equal Access to Justice Act awards and property,
auto repair, and auto collision damages

Number of FTE employees  o  	11 employees spend part of their time on the
account's insurance activities

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 15-110-0-1-751, p. 687; and U.S.
Department of Justice.

a5 U.S.C. S: 504.

                        Table 90: Federal Prison System

Administering organization Federal Prison System, U.S. Department of
Justice

Insurance description 	In addition to its primary purpose of funding the
administration, operation, and maintenance of federal penal and
correctional institutions, this account pays insurance claims and
indemnities, including those related to property damage, personal injury
or death, attorney fees, and settlements and awards.

                           Outlays  o  Not availablea

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 15-1060-0-1-753, pp. 689691; and U.S.
Department of Justice.

aThe account had $1.4 million in fiscal year 2003 obligations.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

U.S. Department of

Transportation Table 91: Vessel Operations Revolving Fund

(Table 91) Administering organization 	Maritime Administration, U.S.
Department of Transportation

Insurance Description 	In addition to its primary purpose of funding the
operations and maintenance of Department of Transportation-owned merchant
ships to meet shipping needs during national emergencies, the department
self-insures the ships through this account. The account also pays claims
resulting from sickness and/or personal injuries of the crew while serving
on the vessels.

Outlays Approximately $724,000 for 12 sickness and injury claims

                  Number of FTE employees  o  Approximately 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 69-4303-0-3-403, p. 814; and U.S.
Department of Transportation.

U.S. Department of the
Treasury
(Tables 92-95)

Table 92: Claims, Judgments, and Relief Acts (Judgment Fund)

Administering organization 	Financial Management Service, U.S. Department
of the Treasury

Insurance description 	This fund was established to pay large judgments,
awards or settlements for violations of certain federal laws by other
federal agencies. The account exists to make prompt payments when federal
agencies generally cannot finance large payments in the year that the
judgments, awards, or settlements are required. The account also serves to
reduce interest or other costs to the government that would otherwise
accrue if payments were delayed until agency appropriations were
available. Agencies are required to reimburse the judgment fund from their
available appropriations. During fiscal years 2003, the fund incurred
expenses of $1,010 million that included $718 million in court judgments
and $290 million for claims in contract disputes that were
administratively adjudicated. The fund also incurred claims for damages of
about $2 million.

Funding source(s)  o  Permanent indefinite appropriation

Outlays  o  $1,091 million

Number of FTE employees  o  20

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-1895-0-1-808, p. 845: and U.S.
Department of the Treasury.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

Table 93: Processing, Assistance, and Management

Administering organization Internal Revenue Service, U.S. Department of
the Treasury

Insurance description 	In addition to its primary purpose of providing
funds for such activities as processing tax returns, assisting taxpayers,
and issuing technical rulings, the account funds insurance claim and
indemnity activities that consist of, among other things, indemnity
payments; awards, judgments, and settlements, including those related to
equal employment opportunity; attorney fees; and administrative relief of
loss which represents authority to resolve a physical loss or deficiency.
About 100-300 tort claims are paid annually.

Outlays  o  $1 million

                  Number of FTE employees  o  Approximately 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-0912-0-1-803, pp. 856857; and U.S.
Department of the Treasury.

Table 94: Tax Law Enforcement

Administering organization Internal Revenue Service, U.S. Department of
the Treasury

Insurance description 	In addition to its primary purpose of funding
activities such as establishing tax liabilities, providing departmental
litigation support, and conducting enforcement activities, the account
funds insurance claim and indemnity activities that consist of, among
other things, indemnity payments; awards, judgments and settlements,
including those related to equal employment opportunity; attorney fees;
and administrative relief of loss, which represents authority to resolve a
physical loss or deficiency. About 100-300 tort claims are paid annually.

Outlays  o  $1 million

                  Number of FTE employees  o  Approximately 1

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-0913-0-1-999, pp. 857859; and U.S.
Department of the Treasury.

Enclosure IV: Description of Accounts With Federal Self-Insurance Activity

               Table 95: Payment of Government Losses in Shipment

Administering organization U.S. Department of the Treasury

Insurance description 	This account self-insures the federal government
against losses that occur during shipments of valuable U.S. Government
property such as coins, currency, and securities, and losses in connection
with the redemption of U.S. savings bonds. The account also insures
against certain losses regarding lost, damaged, or destroyed stamps,
securities, obligations, or money incurred by the U.S. Postal Service
while acting on behalf of the Treasury Department. The account pays
approximately 150 claims annually.

                      Funding source(s)  o  Appropriations

Outlays  o  $1 million

                   Number of FTE employees  o  Not available

Sources: Appendix, Budget of the United States Government, Fiscal Year
2005, account identification code 20-1710-0-1-803, p. 855; and U.S.
Department of the Treasury.

      Enclosure V: Listing of All Accounts with Federal Insurance Activity

This enclosure lists the 157 federal insurance activities that are
presented in enclosures II, III, and IV. The list is organized
alphabetically by administering organization. Its purpose is to provide a
perspective on the diversity of insurance activities that we identified
and the 30 federal organizations that administer them.

Administrative Office of the U.S. Courts

Judicial Officers' Retirement Fund
Judicial Survivors' Annuities Fund
United States Court of Federal Claims Judges' Retirement Fund

U.S. Agency for International Development

Development Credit Authority Guaranteed Loan Accounts
Housing and Other Credit Guaranty Programs
Loan Guarantees to Israel Accounts
Microenterprise and Small Enterprise Development Guaranteed Loans
Operating Expenses of the Agency for International Development

(self-insurance) Urban and Environmental Credit Program Guaranteed Loans

U.S. Central Intelligence Agency

Central Intelligence Agency Retirement and Disability System Fund

Export-Import Bank of the United States

Export-Import Bank Guaranteed Loan Accounts

Federal Council on the Arts and Humanities

National Endowment for the Arts (Arts and Artifacts Indemnity Program)

Federal Deposit Insurance Corporation

Bank Insurance Fund
FSLIC Resolution Fund
Savings Association Insurance Fund

Enclosure V: Listing of All Accounts with Federal Insurance Activity

International Security Assistance

Foreign Military Loan Liquidating Account
International Security Assistance Economic Support Fund

National Credit Union Administration

National Credit Union Share Insurance Fund

U.S. Office of Personnel Management

Civil Service Retirement and Disability Fund
Employees and Retired Employees Health Benefit Funds

Overseas Private Investment Corporation

Overseas Private Investment Corporation Guaranteed Loan Accounts Overseas
Private Investment Corporation Noncredit Account

Presidio Trust

Presidio Trust Fund Presidio Trust Guaranteed Loan Accounts

U.S. Railroad Retirement Board

Railroad Industry Pension Fund
Railroad Unemployment Insurance Trust Fund

U.S. Securities and Exchange Commission

Securities and Exchange Commission, Salaries and Expenses (selfinsurance)

U.S. Small Business Administration

Business Guaranteed Loan Accounts Business Loan Fund Liquidating Account
Disaster Loan Fund Liquidating Account Pollution Control Equipment Fund
Surety Bond Guarantees Revolving Fund

Enclosure V: Listing of All Accounts with Federal Insurance Activity

U.S. Social Security Administration

Federal Disability Insurance Trust Fund
Federal Old Age and Survivors Insurance (Social Security)
Social Security Administration, Limitation on Administrative Expenses

(self-insurance)
Special Benefits for Certain World War II Veterans

U.S. Department of Agriculture

Agricultural Credit Insurance Fund Guaranteed Loan Accounts Agricultural
Credit Insurance Program Account (Dairy Indemnity Program) Agricultural
Resource Conservation Demonstration Guaranteed Loan Accounts Animal and
Plant Health Inspection Service (disease control

compensation) Capital Improvement and Maintenance (self-insurance)
Commodity Credit Corporation Export Guaranteed Loan Accounts Farm Service
Agency Salaries and Expenses (Non-Insured Crop Disaster

Assistance Program) Federal Crop Insurance Corporation Fund Local
Television Loan Guarantee Accounts National Forest System (self-insurance)
Rural Business and Industry Guaranteed Loan Accounts Rural Business
Investment Program Guarantee Accounts Rural Communication Development Fund
Liquidating Account Rural Community Advancement Program Rural Community
Facility Guaranteed Loan Accounts Rural Development Insurance Fund
Liquidating Account Rural Electrification and Telecommunication Guaranteed
Loan Accounts Rural Housing Insurance Fund Guaranteed Loan Accounts Rural
Water and Waste Disposal Guaranteed Loan Accounts Wildland Fire Management
(self-insurance)

U.S. Department of Commerce

Economic Development Revolving Fund Liquidating Account
Emergency Oil and Gas Guaranteed Loan Accounts
Emergency Steel Guaranteed Loan Accounts
Federal Ship Financing Fund Fishing Vessels Liquidating Account
Fisheries Finance Guaranteed Loan Accounts
Fishermen's Contingency Fund

Enclosure V: Listing of All Accounts with Federal Insurance Activity

U.S. Department of Defense

Arms Initiative Guaranteed Loan Account
Defense Export Loan Guarantee Accounts
Family Housing Improvement Guaranteed Loan Accounts
Homeowners Assistance Fund
Military Personnel, Air Force (death gratuity)
Military Personnel, Army (death gratuity)
Military Personnel, Marine Corps (death gratuity)
Military Personnel, Navy (death gratuity)
Military Retirement Fund
National Guard Personnel, Air Force (death gratuity)
National Guard Personnel, Army (death gratuity)
Reserve Personnel, Air Force (death gratuity)
Reserve Personnel, Army (death gratuity)
Reserve Personnel, Marine Corps (death gratuity)
Reserve Personnel, Navy (death gratuity)
Revolving Fund (self-insurance)
Uniformed Services Retiree Health Care Fund

U.S. Department of Education

Federal Family Education Loan Accounts Federal Student Loan Reserve Fund

U.S. Department of Health and Human Services

Federal Hospital Insurance Trust Fund (Medicare Part A)
Federal Supplementary Medical Insurance Trust Fund (Medicare Part B)
Food and Drug Administration, Salaries and Expenses (self-insurance)
Health Center Guaranteed Loan Accounts
Health Education Assistance Loan Accounts
Health Maintenance Organization Loan and Loan Guarantee Fund
Health Resources and Services General and Special Funds (Medical

Malpractice Claims Fund)
Medical Facilities Guarantee and Loan Fund
Payments to Health Care Trust Funds
Public Health and Social Services Emergency Fund (Smallpox Injury
Compensation)
Retirement Pay and Medical Benefits for Commissioned Officers (Public

Health Service)
State Children's Health Insurance Fund

Enclosure V: Listing of All Accounts with Federal Insurance Activity

Substance Abuse and Mental Health Services Administration (self-insurance)
Transitional Drug Assistance, Federal Supplementary Medical Assistance

Trust Fund Vaccine Injury Compensation Vaccine Injury Compensation Program
Trust Fund

U.S. Department of Homeland Security

Customs and Border Protection (self-insurance)
Citizenship and Immigration Services (self-insurance)
Federal Protective Service (self-insurance)
National Flood Insurance Fund
Oil Spill Liability Trust Fund
United States Coast Guard Operating Expenses (self-insurance)
Retired Pay (U.S. Coast Guard)

U.S. Department of Housing and Urban Development

Community Development Loan Guarantees Accounts
FHA General and Special Risk Guaranteed Loan Accounts
FHA General and Special Risk Insurance Funds Liquidating Account
FHA-Loan Guarantee Recovery Fund Accounts
FHA Mutual Mortgage and Cooperative Housing Insurance Funds

Liquidating Account FHA Mutual Mortgage Insurance Guaranteed Loan Accounts
Indian Federal Guarantees Accounts Indian Housing Loan Guarantee Fund
Accounts Low-Rent Public Housing-Loans Native Hawaiian Housing Loan
Guarantee Fund

U.S. Department of the Interior

Indian Guaranteed Loan Accounts
Indian Loan Guaranty and Insurance Fund Liquidating Account
Natural Resource and Damage Assessment Fund (self-insurance)
Resource Management (self-insurance)

U.S. Department of Justice

Drug Enforcement Administration, Salaries and Expenses (self-insurance)
Federal Prison System (self-insurance)
Public Safety Officers' Benefits

Enclosure V: Listing of All Accounts with Federal Insurance Activity

U.S. Department of Labor

Black Lung Disability Trust Fund
Energy Employees Occupational Illness Compensation Fund
Pension Benefit Guaranty Corporation Fund-Multi-and Single-Employer

Program
Special Benefits (Federal Employees)
Special Benefits for Disabled Coal Miners
Special Workers' Compensation Expenses
Unemployment Trust Fund

U.S. Department of State

Fishermen's Guaranty Fund
Fishermen's Protective Fund
Foreign Service Retirement and Disability Fund

U.S. Department of Transportation

Aviation Insurance Revolving Fund
Federal Ship Financing Fund Liquidating Account
Maritime Guaranteed Loan Title XI Accounts
Minority Business Resource Center Guaranteed Loan Accounts
Vessel Operations Revolving Fund (self-insurance)
War Risk Insurance Revolving Fund (maritime)

U.S. Department of the Treasury

Air Transportation Stabilization Guaranteed Loan Accounts
Check Forgery Insurance Fund
Claims, Judgments, and Relief Acts (Judgment Fund, self-insurance)
District of Columbia Federal Pension Liability Trust Fund (and Federal

Supplemental District of Columbia Fund)
District of Columbia Judicial Retirement and Survivors Annuity Fund
Processing, Assistance, and Management (self-insurance)
Tax Law Enforcement (self-insurance)
Payment of Government Losses in Shipment (self-insurance)
Terrorism Insurance Program

U.S. Department of Veterans Affairs

Burial Benefits (Veterans)
Disability Compensation Benefits (Veterans)

Enclosure V: Listing of All Accounts with Federal Insurance Activity

Housing Guaranteed Loan Accounts (Veterans)
Insurance Benefits (Veterans Mortgage Life Insurance)
National Service Life Insurance Fund (Veterans)
Pension Benefits (Veterans)
Service-Disabled Veterans Insurance Fund
United States Government Life Insurance Fund (Veterans)
Veterans Reopened Insurance Fund
Veterans Special Life Insurance Fund

U.S. Postal Service

Postal Service Fund (Domestic and Foreign Mail Indemnity Claim Fund)

              Enclosure VI: GAO Contacts and Staff Acknowledgments

GAO Contacts

Staff Acknowledgments

(250184)

      Richard J. Hillman, (202) 512-9073 Lawrence D. Cluff, (202) 512-8023

In addition to the individuals named above, Chris Bonham, Emily Chalmers,
Marc Molino, Angela Pun, Carl Ramirez, Linda Rego, Steve Ruszczyk, Melvin
Thomas, and Cecile Trop made key contributions to this report.

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