Financial Audit Manual: Volume Three, Exposure Draft, June 2007  
(29-JUN-07, GAO-07-313G).					 
                                                                 
The U.S. Government Accountability Office (GAO) and the 	 
President's Council on Integrity and Efficiency (PCIE) maintain  
the GAO/PCIE Financial Audit Manual (FAM). The FAM provides	 
guidance for performing financial statement audits of federal	 
entities. The FAM is a key tool for enhancing accountability over
taxpayer-provided resources.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-313G					        
    ACCNO:   A71709						        
  TITLE:     Financial Audit Manual: Volume Three, Exposure Draft,    
June 2007							 
     DATE:   06/29/2007 
  SUBJECT:   Auditing procedures				 
	     Auditing standards 				 
	     Auditors						 
	     Audits						 
	     Financial statement audits 			 
	     Internal auditors					 
	     Internal audits					 

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GAO-07-313G

   

     * [1]GAOHQ-1905050-v5-VOLUME_III_-_2010_CHECKLIST_.pdf

          * [2]Abbreviations
          * [3]2010 - Checklist for Federal Accounting

               * [4]Section I - Overview

          * [5]Introduction
          * [6]Checklist Organization
          * [7]Authoritative Guidance

               * [8]Section II - General Accounting Item

                    * [9]General Item (1)

               * [10]Section III - Assets

                    * [11]Cash and Other Monetary Assets (30-31)
                    * [12]Inventory (32 - 53)
                    * [13]Operating Materials and Supplies
                    * [14](54 - 64)
                    * [15]Stockpile Materials (65 - 75)
                    * [16]Seized Property (76 - 82)
                    * [17]Forfeited Property (83 - 95)
                    * [18]Goods Held Under Price Support and Stabilization
                      Program (96
                    * [19]General Property, Plant, & Equipment (Net) (108 -
                      152)
                    * [20]Software (153 - 180)
                    * [21]Other Assets (181 - 183)

               * [22]Section IV - Liabilities

                    * [23]Liabilities in General (1 - 2)
                    * [24]Accounts Payable and Interest Payable
                    * [25](3 - 8)

               * [26]Section V - Net Position and Related Changes

                    * [27]Unexpended Appropriations & Cumulative Results of
                      Operations
                    * [28]Budgetary Financing Sources (3 - 18)
                    * [29]Other Financing Sources (19 - 27)

               * [30]Section VI - Net Cost

                    * [31]Cost Accounting - Overall Requirements
                    * [32](1 - 7)
                    * [33]Cost Accounting - Responsibility Segments (8 - 10)
                    * [34]Cost Accounting - Full Cost
                    * [35](11 - 18)
                    * [36]Cost Accounting - Inter-entity Costs
                    * [37](19 - 23)
                    * [38]Cost Accounting - Costing Methodology
                    * [39](24 - 30)
                    * [40]Revenues (31 - 44)
                    * [41]Pensions, Other Retirement, and Post Employment
                      Benefit Cost
                    * [42]Inventory, Materials, Supplies, and Commodities
                      Costs (69 -
                    * [43]Property, Plant, and Equipment Costs
                    * [44](78 - 92)
                    * [45]Clean-up Costs (93 - 100)
                    * [46]Interest Costs (101 - 102)
                    * [47]Insurance and Subsidies Costs (103 - 106)

               * [48]Section VII - Budgetary Resources

                    * [49]Budgetary Resources (1 - 5)

               * [50]Section VIII - Custodial Activity

                    * [51]General (1)
                    * [52]Sources of Collections (2 - 7)
                    * [53]Dedicated Collection and Other Accompanying
                      Information (8 -

               * [54]Section IX - Required Supplementary Stewardship
                 Information

                    * [55]Stewardship Investments (1 - 14)

               * [56]Section X - Social Insurance
               * [57]Section XI - Credit Reform

                    * [58]Credit Program Receivables (1 - 29)
                    * [59]Liabilities for Loan Guarantees (30 - 37)
                    * [60]Credit Programs Costs (38 - 75)

     * [61]GAOHQ-1887205-v5-VOLUME_III_-_2020_CHECKLIST.pdf

          * [62]Abbreviations
          * [63]2020 - Checklist for Federal Reporting and Disclosures
          * [64]Section I--Overview
          * [65]Introduction
          * [66]Checklist Organization
          * [67]Authoritative Guidance

               * [68]Section II - Management Discussion and Analysis
               * [69]Section III - Performance Reporting
               * [70]Section IV - Financial Statements
               * [71]Section V -- Note Disclosures

                    * [72]Direct Loans and Loan Guarantees (Items 42 - 73)
                    * [73]Inventory and Related Property, Net
                    * [74](Items 74 - 89)
                    * [75]General Property, Plant, & Equipment, Net (Items 90
                      - 94)
                    * [76]Stewardship PP&E (Items 95 - 100)
                    * [77]Other Assets (Items 101 - 104)
                    * [78]Liabilities Not Covered by Budgetary Resources
                      (Items 105-10
                    * [79]Yes, No, or N/A
                    * [80]Explanation
                    * [81]Federal Employee and Veteran's Benefits (Items 113
                      - 115)
                    * [82]Suborganization Program Costs/Program Costs by
                      Segment (Item
                    * [83]Cost of Stewardship PP&E (Items 141 - 14

               * [84]Section VI - Required Supplementary Stewardship
                 Information
               * [85]Section VII - Required Supplementary Information
               * [86]Section VIII - Other Accompanying Information

     * [87]GAOHQ-1905050-v5-VOLUME_III_-_2010_CHECKLIST_.pdf

          * [88]Abbreviations
          * [89]2010 - Checklist for Federal Accounting

               * [90]Section I - Overview

          * [91]Introduction
          * [92]Checklist Organization
          * [93]Authoritative Guidance

               * [94]Section II - General Accounting Item

                    * [95]General Item (1)

               * [96]Section III - Assets

                    * [97]Cash and Other Monetary Assets (30-31)
                    * [98]Inventory (32 - 53)
                    * [99]Operating Materials and Supplies
                    * [100](54 - 64)
                    * [101]Stockpile Materials (65 - 75)
                    * [102]Seized Property (76 - 82)
                    * [103]Forfeited Property (83 - 95)
                    * [104]Goods Held Under Price Support and Stabilization
                      Program (96
                    * [105]General Property, Plant, & Equipment (Net) (108 -
                      152)
                    * [106]Software (153 - 180)
                    * [107]Other Assets (181 - 183)

               * [108]Section IV - Liabilities

                    * [109]Liabilities in General (1 - 2)
                    * [110]Accounts Payable and Interest Payable
                    * [111](3 - 8)

               * [112]Section V - Net Position and Related Changes

                    * [113]Unexpended Appropriations & Cumulative Results of
                      Operations
                    * [114]Budgetary Financing Sources (3 - 18)
                    * [115]Other Financing Sources (19 - 27)

               * [116]Section VI - Net Cost

                    * [117]Cost Accounting - Overall Requirements
                    * [118](1 - 7)
                    * [119]Cost Accounting - Responsibility Segments (8 - 10)
                    * [120]Cost Accounting - Full Cost
                    * [121](11 - 18)
                    * [122]Cost Accounting - Inter-entity Costs
                    * [123](19 - 23)
                    * [124]Cost Accounting - Costing Methodology
                    * [125](24 - 30)
                    * [126]Revenues (31 - 44)
                    * [127]Pensions, Other Retirement, and Post Employment
                      Benefit Cost
                    * [128]Inventory, Materials, Supplies, and Commodities
                      Costs (69 -
                    * [129]Property, Plant, and Equipment Costs
                    * [130](78 - 92)
                    * [131]Clean-up Costs (93 - 100)
                    * [132]Interest Costs (101 - 102)
                    * [133]Insurance and Subsidies Costs (103 - 106)

               * [134]Section VII - Budgetary Resources

                    * [135]Budgetary Resources (1 - 5)

               * [136]Section VIII - Custodial Activity

                    * [137]General (1)
                    * [138]Sources of Collections (2 - 7)
                    * [139]Dedicated Collection and Other Accompanying
                      Information (8 -

               * [140]Section IX - Required Supplementary Stewardship
                 Information

                    * [141]Stewardship Investments (1 - 14)

               * [142]Section X - Social Insurance
               * [143]Section XI - Credit Reform

                    * [144]Credit Program Receivables (1 - 29)
                    * [145]Liabilities for Loan Guarantees (30 - 37)
                    * [146]Credit Programs Costs (38 - 75)



                                                       Financial Audit Manual

                                                                 Volume THREE

                                                   Exposure Draft - June 2007

United States Government Accountability Office

President's Council on Integrity & Efficiency

Source: GAO

GAO-07-313G

                 United States Government Accountability Office

                President's Council on Integrity and Efficiency

                             FINANCIAL AUDIT MANUAL

                                   Volume III

             2020 - Checklist for Federal Reporting and Disclosures

Contents

Abbreviations.....................................................................................ii
2020 - Checklist for Federal Reporting and Disclosures................1
Section
I--Overview......................................................................................1
Section II - Management Discussion and
Analysis..........................................................7
Section III - Performance
Reporting...............................................................................12
Section IV - Financial Statement
Requirements............................................................15
Section V -- Note
Disclosures.....................................................................................49
Section VI - Required Supplementary Stewardship
Information...............................121
Section VII - Required Supplementary
Information....................................................126
Section VIII - Other Accompanying
Information.........................................................138

Abbreviations

AcSEC   Accounting Standards Executive Committee                
AICPA   American Institute of Certified Public Accountants      
CFO Act Chief Financial Officers Act of 1990                    
CSRS    Civil Service Retirement System                         
FASAB   Federal Accounting Standards Advisory Board             
FASB    Financial Accounting Standards Board                    
FDIC    Federal Deposit Insurance Corporation                   
FERS    Federal Employees Retirement System                     
FFMIA   Federal Financial Management Improvement Act of 1996    
FHA     Federal Housing Administration                          
FIFO    First-In, First-Out (method of inventory valuation)     
FMFIA   Federal Managers' Financial Integrity Act of 1982       
GAAP    (U.S.) Generally Accepted Accounting Principles         
GAAS    (U.S.) Generally Accepted Auditing Standards            
GAGAS   (U.S.) Generally Accepted Government Auditing Standards 
GASB    Government Accounting Standards Board (state & local)   
GMRA    Government Management and Results Act of 1994           
GPRA    Government Performance and Results Act of 1993          
GSE     Government Sponsored Enterprise                         
HI      Hospital Insurance (Medicare Part A)                    
IMF     International Monetary Fund                             
IPIA    Improper Payments Information Act                       
MD&A    Management's Discussion and Analysis                    
MRS     Military Retirement System                              
OAI     Other Accompanying Information                          
OASDI   Old Age, Survivors, and Disability Insurance            
OMB     Office of Management and Budget                         
OPEB    Other Post Employment Benefits                          
ORB     Other Retirement Benefits                               
PP&E    Property, Plant, and Equipment                          
RRB     Railroad Retirement Benefits                            
RSI     Required Supplementary Information                      
RSSI    Required Supplementary Stewardship Information          
SBR     Statement of Budgetary Resources                        
SCNP    Statement of Change in Net Position                     
SFAS    Statement of Financial Accounting Standards             
SFFAC   Statements of Federal Financial Accounting Concepts     
SFFAS   Statements of Federal Financial Accounting Standards    
SMI     Supplementary Medical Insurance (Medicare Part B & D)   
SNC     Statement of Net Cost                                   
SOP     Statement of Position                                   
SOSI    Statement of Social Insurance                           
TVA     Tennessee Valley Authority                              
UI      Unemployment insurance                                  

2020 - Checklist for Federal Reporting and Disclosures

Section I--Overview

Introduction

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

The previous checklist, FAM 1050, Checklist for Federal Accounting,
Reporting, and Disclosures (July 2004), included guidance for accounting,
reporting, and disclosures. This checklist has been revised and is
separated into two separate checklists: FAM 2010, Checklist for Federal
Accounting and FAM 2020, Checklist for Federal Reporting and Disclosures.
FAM 2010 provides guidance for federal accounting that entities may
complete during the year and auditors may review the completed checklist
during interim audit work. FAM 2020 provides guidance for year end
reporting and disclosure that entities may complete when they prepare
their annual financial statements and auditors may review the completed
checklist during the reporting phase of the audit.

These checklists are designed to assist (i) federal entities in preparing
their financial statements in accordance with U.S. GAAP, and (ii) auditors
in auditing them in accordance with U.S. generally accepted government
auditing standards (GAGAS). Neither the entities nor the auditors are
required to use this checklist and may develop their own checklists.
However, entities should document how they are satisfied that their
financial statements conform with U.S. GAAP. Likewise, auditors should
document the basis for accepting that the entity's financial statements
are in conformity with U.S. GAAP if they do not use the checklist.

The checklist provides a systematic, organized, and structured approach to
preparing or reviewing federal entity financial statements. While the
questions contained in the checklist are taken from authoritative sources,
the checklist itself is not authoritative, nor is it comprehensive.
Preparers and auditors may also consult financial management regulations
and policies for their individual entity, as these regulations and
policies may have guidance when standards allow alternatives or management
flexibility, such as for property capitalization limits.

Checklist Organization

In order to facilitate the completion of the checklist, an index of
relevant reporting and disclosure requirements is included in the
following section. The preparer uses the index to determine those areas
that apply to the entity. The checklist is divided into 7 sections as
follows

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

Section II - Management's Discussion and Analysis (MD&A)           
Section III - Performance Reporting                                
Section IV - Financial Statements                                  
Section V - Note Disclosures                                       
Section VI - Required Supplementary Stewardship Information (RSSI) 
Section VII - Required Supplementary Information (RSI)             
Section VIII - Other Accompanying Information                      

Authoritative Guidance

Each question in this guide is referenced to a source. The sources cited
are (1) Federal Accounting Standards Advisory Board (FASAB) Statements of
Federal Financial Accounting Concepts (SFFAC), (2) FASAB Statements of
Federal Financial Accounting Standards (SFFAS), and (3) OMB Circular No.
A-136, Financial Reporting Requirements. Because this checklist is for the
federal entity reporting level, and is not for the financial report of the
U.S. government, certain sources are excluded.

The four approved accounting concept statements and year they were issued
are:

SFFAC 1, Objectives of Federal Financial Reporting, 1993

SFFAC 2, Entity and Display, 1995

SFFAC 3, Management's Discussion and Analysis, 1999

SFFAC 4, Intended Audience and Qualitative Characteristics for the
Consolidated Financial Report of the United States Government, 2003 (Not
covered by this checklist)

The 32 SFFAS standards and year they were issued are:

SFFAS 1, Accounting for Selected Assets and Liabilities, 1993

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

SFFAS 3, Accounting for Inventory and Related Property, 1993

SFFAS 4, Managerial Cost Accounting Standards and Concepts, 1995

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

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

SFFAS 7, Accounting for Revenue and Other Financing Sources and Concepts
for Reconciling Budgetary and Financial Accounting, 1996

SFFAS 8, Supplementary Stewardship Reporting, 1996

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

SFFAS 10, Accounting for Internal Use Software, 1998

SFFAS 11, Amendments to Accounting for Property, Plant, and Equipment -
Definitional Changes, 1998^2

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

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

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

SFFAS 14, Amendments to Deferred Maintenance Reporting, 1999

SFFAS 15, Management's Discussion and Analysis, 1999

SFFAS 16, Amendments to Accounting for Property, Plant, and Equipment -
Measurement and Reporting for Multi-Use Heritage Assets, 1999^3

SFFAS 17, Accounting for Social Insurance, 1999

SFFAS 18, Amendments to Accounting Standards For Direct Loans and Loans
Guarantees in SFFAS No. 2, 2000

SFFAS 19, Technical Amendments to Accounting Standards for Direct Loans
and Loan Guarantees in SFFAS No. 2, 2001

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

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

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

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

SFFAS 24, Selected Standards for the Consolidated Report of the United
States Government, 2003 (Not covered by this checklist)

SFFAS 25, Reclassification of Stewardship Responsibilities and Eliminating
the Current Services Assessment, 2003^4

SFFAS 26, Presentation of Significant Assumptions for the Statement of
Social Insurance, 2004

SFFAS 27, Identifying and Reporting Earmarked Funds, 2004

SFFAS 28, Deferral of the Effective Date of Reclassification of the
Statement of Social Insurance, 2005

SFFAS 29, Heritage Assets and Stewardship Land, 2005

SFFAS 30, Inter-Entity Cost Implementation, 2005

SFFAS 31, Accounting for Fiduciary Activities, 2006

SFFAS 32, CFR of the U.S. Government Requirements, 2006 (Not covered by
this checklist)

^3 SFFAS 16 was rescinded in its entirety by SFFAS 29.

^4 SFFAS 25 changes reporting requirements for social insurance
information required by SFFAS 17.

Also included in this checklist is FASAB's Implementation Guide to
Accounting for Revenue and Other Financing Sources, (June 1996), and OMB
Circular No. A-136, Financial Reporting Requirements, (July 24, 2006),
that provides detailed requirements for the form and content of entity
financial statements.

FASAB interpretations and technical bulletins are not covered in this
checklist; consult this material as necessary for guidance on specific
situations. Furthermore, preparers and auditors should document how the
entity complied with any new standards issued after SFFAS 32.

      How to Use the Index to the Checklist

The preparer completes the following index to FAM 2020, Checklist for
Federal Reporting and Disclosures before completing the detailed
checklist. For each category of reporting and disclosure listed in the
index on the next two pages, the preparer indicates whether it is
applicable (Y) to the entity's financial statements, or is not applicable
(NA). Complete only those sections of the detailed checklist that are
applicable to the entity's financial statements. If the entity has an
insignificant amount of transactions or balances for a section, it may
decide not to complete that section. It may document that decision by
indicating "not significant" (NS). Those areas that are not applicable or
not significant are not considered further, thus eliminating the need to
read and evaluate each individual question. For example, many federal
agencies do not administer loan, loan guarantee, or loan insurance
programs and, therefore, do not have credit program receivables and
related property. Consequently, the questions on these receivables,
property, and subsidies would not apply.

How to Use the Detailed Checklist

To the right of each question are two columns. The first column provides
for a "yes," "no," or "N/A" (not applicable) answer to each question. The
second column provides for an explanation of the answer to each question.

A "yes" answer indicates that the financial statements contain the
information asked by the question. This would include immaterial items if
the entity elected to disclose them. For each "yes" answer, include in the
explanation column the page number or location in the financial statements
where the information is found. Also, provide any other information
pertinent to the question and the response in the explanation column.

A "no" answer indicates that the information asked for in the question is
not included in the financial statements, notes, or supplementary
information, respectively. This would include immaterial items that need
not be disclosed. Describe in the explanation column or footnote why the
information is not included and whether this causes the financial
statements to not be in conformity with U.S. GAAP.

An "N/A" answer indicates that the question does not apply to the federal
entity. Describe in the explanation column or footnote why this
information is not applicable.

Completion and Review of the Checklists

Preparers of entity financial statements may complete the checklists to
document that applicable accounting, reporting, and disclosure items have
been addressed, including those contained in OMB Circular No. A-136.
Auditors generally should then review the checklists for completeness and
accuracy.

Index to the Checklist

                                                     Applicable (Y), Not      
                                                   Applicable (NA), or Not    
Page No.      Disclosure Considerations            Significant (NS)        
7        Section II - Management Discussion                                
            & Analysis                                                        
12       Section III - Performance Reporting                               
15       Section IV - Financial Statements                                 
16       General                                                           
21       Balance Sheet                                                     
23       Statement of Net Cost                                             
26       Statement of Changes in Net                                       
            Position                                                          
31       Statement of Budgetary Resources                                  
37       Statement of Financing                                            
45       Statement of Custodial Activities                                 
47       Statement of Social Insurance                                     
49       Section V - Note Disclosures                                      
51       Significant Accounting Policies                                   
54       Non-entity Assets                                                 
55       Fund Balance with Treasury                                        
57       Cash and Other Monetary Assets                                    
59       Investments                                                       
61       Receivables (Net)                                                 
63       Direct Loans and Loan Guarantees                                  
74       Inventory and Related Property                                    
83       General Property, Plant, and                                      
            Equipment (Net)                                                   
85       Stewardship Property                                              
87       Other Assets                                                      
88       Liabilities Not Covered by                                        
            Budgetary Resources                                               
89       Debt                                                              
91       Federal Employee and Veterans'                                    
            Benefits                                                          
93       Environmental Liabilities                                         
94       Cleanup Cost Adjustments                                          
95       Other Liabilities                                                 
96       Leases                                                            
99       Life Insurance Liabilities                                        
100      Commitments and Contingencies                                     
102      Earmarked Funds                                                   
104      Intragovernmental Costs and                                       
            Exchange Revenue                                                  
105      Suborganization Program                                           
            Costs/Program Costs by Segment                                    
106      Stewardship PP&E                                                  
107      Exchange Revenues                                                 
108      Statement of Budgetary Resources                                  
            Disclosures                                                       
110      Statement of Financing Disclosures                                
111      Statement of Custodial Activity                                   
            Disclosures                                                       
113      Statement of Social Insurance                                     
            Disclosures                                                       
114      Dedicated Collections                                             
116      Restatements                                                      
118      Fiduciary Activities                                              
122      Section VI - Required Supplementary                               
            Stewardship Information                                           
123      Non-federal Physical Property                                     
124      Human Capital                                                     
125      Research and Development                                          
126      Section VII - Required                                            
            Supplementary Information                                         
127      Stewardship Property, Plant, &                                    
            Equipment                                                         
128      Deferred Maintenance                                              
131      Social Insurance                                                  
135      Statement of Budgetary Resources                                  
136      Statement of Custodial Activity                                   
137      Risk-Assumed Information                                          
138      Section VIII - Other Accompanying                                 
            Information                                                       
139      Revenue Forgone                                                   
139      Tax Burden/Tax Gap                                                
140      Tax Expenditures with Directed Flow                               
            of Resources                                                      
140      Management Challenges                                             
141      Improper Payments Information Act                                 
            (IPIA) Reporting                                                  
143      Other Agency-specific Statutorily                                 
            Required Reports                                                  

  Section II - Management Discussion and Analysis

     Management Discussion and Analysis (Items 1 - 8)    Yes, No, Explanation 
                                                          or N/A              
Management's Discussion and Analysis (MD&A) is Section 1 of the entity's
Performance and Accountability Report (PAR) and should follow the Entity
Head's Message. The MD&A is intended for a non-technical audience and
provides an overview of the entity's financial and performance results.
(OMB Circular No. A-136 p. 13, section II.I.2)        
      1) Does the MD&A provide a clear, concise, brief                        
      overview of the entire PAR that a non-technical                         
      audience can understand? (OMB Circular No. A-136,                       
      pp.13 &15, section II.1.2 & II.2.1)                                     
      2) Is the MD&A limited to the most important                            
      matters that could                                                      
                                                                              
              a) lead to significant actions or                               
              proposals by top management of the                              
              reporting unit,                                                 
              b) be significant to the managing,                              
              budgeting, and oversight functions of                           
              Congress and the administration, and                            
              c) significantly affect the judgment of                         
              citizens about the efficiency and                               
              effectiveness of the entity?                                    
                                                                              
      (SFFAS 15, par. 5 & 6 and OMC Circular A-136, p16,                      
      section II.2.2)                                                         
      3) Does the MD&A provide information on                                 
                                                                              
              a) mission and organizational structure,                        
              b) performance goals, objectives and                            
              results,                                                        
              c) analysis of the financial statements                         
              and stewardship information,                                    
              d) analysis of systems, controls and legal                      
              compliance,                                                     
      e) forward-looking information about the possible                       
      effects of the important existing and anticipated                       
      performance and financial demands, events,                              
      conditions and trends, and                                              
      f) important problems that need to be addressed                         
      and corrective actions planned to address those                         
      problems?                                                               
                                                                              
(SFFAS 15, par. 2-4; OMB Circular No. A-136, pp.16                         
-20, sections II.2.3-II.2.8)                                               
      4) Does the mission and organizational structure                        
      describe its related organizational structure                           
      consistent with the entity's strategic plan? (OMB                       
      Circular No. A-136, p.17, section II.2.5)                               
      5) Does the performance goals, objectives, and                          
      results section present highlights that provide                         
                                                                              
              a) a clear, objective picture of the                            
              entity's program results compared to its                        
              goals and objectives,                                           
              b) the extent to which its programs are                         
              achieving their intended goals and                              
              objectives,                                                     
              c) an explanation of performance trends,                        
              d) a discussion of the strategies and                           
              resources the entity uses to achieve its                        
              performance goals,                                              
              e) an evaluation of underlying factors                          
              that may have affected the reported                             
              performance, including information on                           
              factors that are substantially outside the                      
              entity's control and factors over which                         
              the entity has significant control,                             
                                                                              
              f) an explanation of plans and timelines                        
              to improve performance where targets were                       
              not met,                                                        
              g) summary procedures management has                            
              designed and followed to provide                                
              reasonable assurance that reported                              
              performance information is relevant and                         
              reliable,                                                       
              h) a discussion of important limitations                        
              and difficulties associated with                                
              performance measurement and reporting,                          
              and, if relevant, information relative to                       
              the efficiency and effectiveness,                               
              including cost effectiveness, of the                            
              entity's programs/operations?                                   
                                                                              
      (SFFAC 3, par. 11 & 13 & OMB Circular No. A-136,                        
      pp. 17 &18, section II.2.6)                                             
      6) Does the analysis of the financial statements                        
      and stewardship information section include                             
                                                                              
              a) comparisons of the current year to                           
              prior year with an analysis of the                              
              entity's overall financial position and                         
              results of operations to assist users in                        
              assessing whether the financial position                        
              has improved or deteriorated as a result                        
              of the year's activities,                                       
              b) major changes in types or amounts of                         
              assets, liabilities, costs, revenues,                           
              obligations, and outlays,                                       
              c) relevance of particular balances and                         
              amounts shown in the principal financial                        
              statements, particularly if relevant to                         
              important financial management issues,                          
              d) stewardship information, and                                 
      e) discussion of key financial-related measures                         
      emphasizing financial trends and the assessment of                      
      financial operations?                                                   
                                                                              
(OMB Circular No. A-136, p. 19, section II.2.7)                            
      7) Does the analysis of the systems, controls and                       
      legal compliance section include                                        
                                                                              
              a) management's assurances as to the                            
              status and effectiveness of the internal                        
              controls and financial management systems                       
              that support the preparation of the                             
              financial statements, and                                       
                                                                              
              b) a separate section entitled "Management                      
              Assurances" that provides assurances                            
              related to 31 U.S.C. 3512 (c), (d),                             
              commonly known as the Federal Manager's                         
              Financial Integrity Act (FMFIA), and its                        
              compliance determinations required by the                       
              Federal Financial Management Improvement                        
              Act (FFMIA) and OMB Circular No. A-123,                         
              Management's Responsibility for Internal                        
              Control?                                                        
                                                                              
      (OMB Circular No. A-136, p. 19, section II.2.8)                         
      8) Does the MD&A include additional items for                           
                                                                              
              a) a brief summary of what the entity has                       
              accomplished and plans to accomplish with                       
              regard to the Improper Payments                                 
              Information Act,                                                
              b) other management information,                                
              initiatives and issues,                                         
              c) a section on the limitations of the                          
              financial statements including:                                 
      i) the principal financial statements have been                         
      prepared to report the financial position and                           
      results of operations of the entity, pursuant to                        
      the requirements of 31 U.S.C. 3515 (b). While the                       
      statements have been prepared from the books and                        
      records of the entity in accordance with GAAP for                       
      federal entities and the formats prescribed by                          
      OMB, the statements are in addition to the                              
      financial reports used to monitor and control                           
      budgetary resources which are prepared from the                         
      same books and records,                                                 
      ii) the statements are for a component of the U.S.                      
      Government, a sovereign entity?                                         
                                                                              
(OMB Circular A-136, pp. 20-21, sections II.2.9,                           
II.2.10 & II.2.11)                                                         

  Section III - Performance Reporting

        Performance Reporting (Items 1 - 5)        Yes, No, or   Explanation  
                                                       N/A                    
Agencies prepare an annual performance report that is included in the PAR.
If program performance data for the fiscal year is incomplete or estimated
in that year's report, the agency may include updated information in the
performance budget and the subsequent year's PAR. (OMB Circular No. A-136,
p. 22, section II.3.1)                         
      1) Does the annual performance report                                   
      include                                                                 
                                                                              
              a) a comparison of actual                                       
              performance with the projected                                  
              (target) levels of performance as                               
              set out in the performance goals in                             
              the entity's annual performance                                 
              budget,                                                         
              b) actual performance information                               
              for at least four fiscal years,                                 
              c) an explanation where a                                       
              performance goal was not achieved                               
              and why the goal was not met,                                   
              d) a description of the plans and                               
              schedules to meet an unmet goal in                              
              the future, or alternatively,                                   
              recommended action regarding an                                 
              unmet goal where management                                     
              concluded it is impractical or                                  
              infeasible to achieve that goal,                                
              e) an evaluation of the entity's                                
              performance budget for the current                              
              fiscal year, taking into account                                
              the actual performance achieved,                                
              and                                                             
              f) an assessment of the reliability                             
              and completeness of the performance                             
              information included in the                                     
              performance report?                                             
                                                                              
      (OMB Circular No. A-136, p. 23, section                                 
      II.3.4)                                                                 
      2) Does the comparison of actual                                        
      performance to performance goals include                                
                                                                              
              a) actual performance for every                                 
              performance goal in the entity's                                
              annual performance budget, even if                              
              the goal was discontinued after                                 
              that year, and                                                  
              b) performance goals where actual                               
              performance information is missing,                             
              incomplete, preliminary, or                                     
              estimated?                                                      
                                                                              
              For such goals, does the annual                                 
              performance report indicate the                                 
              approximate date when actual                                    
              performance information, sufficient                             
              to make an accurate comparison with                             
              performance goal target levels,                                 
              will be available?                                              
                                                                              
      (OMB Circular No. A-136, pp. 23-24, section                             
      II.3.4.1)                                                               
      3) Is an explanation of why a performance                               
      goal or target was not met, either with                                 
                                                                              
              a) A specific reason why a                                      
              significant performance shortfall                               
              occurred, the consequences, and                                 
              corrective actions to eliminate or                              
              reduce future shortfalls for this                               
              goal, or                                                        
              b) a generic explanation if the                                 
              difference between the goal target                              
              level and actual performance is                                 
              slight?                                                         
                                                                              
      (OMB Circular No. A-136, p. 24, section                                 
      II.3.4.2)                                                               
      4) Does the PAR                                                         
                                                                              
              a) include preliminary data only if                             
              actual data is not available, and                               
              b) disclose that actual data will                               
              be included in subsequent reports                               
              when available?                                                 
                                                                              
      (OMB Circular No. A-136, p. 24, section                                 
      II.3.4.4)                                                               
      5) Are other elements included in the                                   
      performance report such as                                              
                                                                              
              a) program evaluations, including a                             
              summary of findings and                                         
              recommendations of evaluations                                  
              completed during the fiscal year or                             
              a disclosure that no evaluations                                
              were completed,                                                 
              b) an acknowledgement of the role                               
              and a brief description of any                                  
              significant contribution made by a                              
              non-federal entity in preparing the                             
              report,                                                         
                                                                              
              c) classified appendices not                                    
              available to the public, and                                    
              d) budget information consistent                                
              with obligation amounts shown in                                
              the Budget Appendix?                                            
                                                                              
      (OMB Circular No. A-136, p. 26, section                                 
      II.3.7)                                                                 

  Section IV - Financial Statements

Caption                              Question Numbers 
General                                   1 - 16      
Balance Sheet                            17 - 22      
Statement of Net Cost                    23 - 35      
Statement of Changes in Net Position     36 - 55      
Statement of Budgetary Resources         56 - 73      
Statement of Financing                   74 - 97      
Statement of Custodial Activities        98 - 106     
Statement of Social Insurance           107 - 109     

                General (Items 1 - 16)              Yes, No, or  Explanation  
                                                        N/A                   
Reporting entities should ensure that information in the financial
statements is presented in accordance with U.S. GAAP for federal entities
and the requirements of OMB Circular No. A-136. Preparers of financial
statements seeking additional guidance on matters involving the
recognition, measurement, and disclosure requirements should refer to the
specific FASAB standards governing those requirements. These standards are
available at http://www.fasab.gov. Where the FASAB standards or
instructions in Circular No. A-136 do not provide guidance, agencies shall
follow the hierarchy of accounting principles described in Section II.4.2
Q&A. (OMB Circular No. A-136, p. 27, section II.4.1)
      1) In the PAR, is there a dated transmittal                             
      letter from the agency head highlighting                                
                                                                              
              a) the entity's mission with goals                              
              and accomplishments, and                                        
              b) an assessment of whether financial                           
              and performance data in the report is                           
              reliable and complete, identifying                              
              material internal control weaknesses                            
              and corrective actions?                                         
                                                                              
      (OMB Circular No. A-136, p.13, section                                  
      II.1.2)                                                                 
      2) Does the PAR consist of                                              
                                                                              
              a) an MD&A                                                     
              b) a performance section;                                       
              c) a financial section including:                               
                                                                              
                      i) a CFO letter,                                        
                      ii) the auditor's report,                               
                      iii) basic statements and                               
                      notes,                                                  
                      iv) required supplementary                              
                      stewardship information                                 
                      (RSSI),                                                 
                      v) required supplementary                               
                      information (RSI); and                                  
                                                                              
              d) other accompanying information                               
              (OAI), that provides users of the                               
              financial statements with a better                              
              understanding of the entity's                                   
              programs and the extent to which                                
              program objectives were achieved?                               
                                                                              
              (OMB Circular No. A-136, pp. 13-14,                             
              section II.1.2)                                                 
      3) Do the basic statements include                                      
                                                                              
              a) Balance Sheet,                                               
              b) Statement of Net Cost,                                       
              c) Statement of Changes in Net                                  
              Position,                                                       
              d) Statement of Budgetary Resources,                            
              e) Statement of Financing,                                      
              f) Statement of Custodial Activity                              
              (when applicable), and                                          
              g) Statement of Social Insurance                                
              (when applicable)?                                              
                                                                              
      (OMB Circular No. A-136, p. 30, section                                 
      II.4.2, item 2)                                                         
      4) Are the basic statements presented in                                
      accordance with U.S. GAAP? (OMB Circular No.                            
      A-136, p. 27, sec. II.4.1, item A)                                      
      5) Is comparative information and the related                           
      footnote disclosures presented for the                                  
      current year and prior year for the basic                               
      financial statements, except for the                                    
      Statement of Social Insurance^5? (OMB                                   
      Circular No. A-136, pp. 27 and 31, section                              
      II.4.1, item B, and section II.4.2, item 3)                             
      6) Is comparative information presented in                              
      the RSSI and RSI when the information would                             
      be meaningful to the user of the financial                              
      report? (OMB Circular No. A-136, p. 31,                                 
      section II.4.2, item 3)                                                 
      7) When the entity presents disaggregated                               
      information for component organizations, does                           
      the total column for the entity as a whole                              
      show consolidated totals net of intra-entity                            
      transactions, except for the Statement of                               
      Budgetary Resources, which is presented on a                            
      combined basis? (OMB Circular No. A-136, p.                             
      27, sec. II.4.1, item C)                                                
      8) If the entity aggregates line items in its                           
      departmental statements, is the composition                             
      of the aggregated line items disclosed? (OMB                            
      Circular No. A-136, p. 28 section II.4.1,                               
      item D)                                                                 
      9) If the entity disaggregates line items in                            
      its departmental statements, is the total of                            
      the disaggregated line items provided either                            
      on the face of the statements or in a note?                             
      (OMB Circular No. A-136, p. 28 section                                  
      II.4.1, item D)                                                         
      10) Do schedule totals presented in the                                 
      footnotes, in support of amounts presented in                           
      financial statements, agree with the amounts                            
      presented in the body of the financial                                  
      statements? (OMB Circular No. A-136, p. 28,                             
      section II.4.1, item G)                                                 
      11) When presenting dollar amounts in the                               
      statements and the footnotes, does the entity                           
                                                                              
              a) round amounts to the nearest whole                           
              dollar, thousand, million, or billion                           
              based upon informative value to the                             
              reader,                                                         
              b) maintain the chosen rounding level                           
              throughout the financial statements                             
              and footnotes, and                                              
              c) adjust line items for the                                    
              differences created by the rounding                             
              process rather than adjusting column                            
              totals?                                                         
                                                                              
      (OMB Circular No. A-136, p. 28, section                                 
      II.4.1, item H)                                                         
      12) Are statement line items, footnotes, and                            
      lines, or columns in footnotes that do not                              
      apply or are not informative for the                                    
      reporting entity properly omitted? (OMB                                 
      Circular No. A-136, p. 28, section II.4.1,                              
      item F)                                                                 
      13) Are line numbers (i.e. 1.) used for                                 
      reference purposes on illustrative statement                            
      formats properly omitted on the statements?                             
      (OMB Circular No. A-136, p. 28, sec. II.4.1,                            
      item I)                                                                 
      14) Are footnotes sequentially numbered? (OMB                           
      Circular No. A-136, p. 28, section II.4.1,                              
      item J)                                                                 
      15) Does the entity use the following                                   
      hierarchy as the source of guidance in                                  
      preparing its financial statements                                      
                                                                              
              a) FASAB Statements &                                           
              Interpretations, as well as AICPA and                           
              FASB pronouncements if made                                     
              applicable to federal government                                
              entities by a FASAB Statement or                                
              Interpretation,                                                 
              b) FASAB Technical Bulletins and, if                            
              specifically made applicable to                                 
              federal government entities by AICPA                            
              and cleared by FASAB, AICPA Industry                            
              Audit and Accounting Guides and AICPA                           
              Statements of Position,                                         
              c) AICPA Accounting Standards                                   
              Executive Committee (AcSEC) Practice                            
              Bulletins if specifically made                                  
              applicable to federal government                                
              entities and cleared by the FASAB, as                           
              well as Technical Releases of the                               
              Accounting and Auditing Policy                                  
              Committee of the FASAB,                                         
              d) implementation guides published by                           
              the FASAB staff and practices that                              
              are widely recognized and prevalent                             
              in the federal government, and                                  
              e) other relevant accounting                                    
              literature?^6                                                   
                                                                              
      (OMB Circular No. A-136, pp. 28- 29, section                            
      II.4.2, item 1)                                                         
While a department receives budget authority in accordance with law, the
same law may require that department (the parent) to allocate some or even
all of the budget authority to another federal entity. When a parent makes
such a delegation, the Treasury Department establishes a subsidiary
account called a "transfer appropriation account" (the child account). The
transfer itself is referred to as an allocation transfer. In the child
account, the receiving federal entity receives the budget authority, and
then obligates and outlays sums up to the amount included in the
allocation. (OMB Circular No. A-136, p. 32, section II.4.2, item 7)
      16) Are all budgetary and proprietary                                   
      activity reported by the parent in its                                  
      financial statements, whether material to the                           
      parent or not? (OMB Circular No. A-136, p.                              
      32, section II.4.2, item 7)                                             

^5 The statement of social insurance has separate requirements for
comparative data discussed in the section of this checklist specific to
that statement.

^6 Other accounting literature includes for example, FASAB Concept
Statements, Governmental Accounting Standards Board (GASB) Statements,
Interpretations, Technical Bulletins, and Concept Statements, AICPA Issue
Papers, International Accounting Standards of the International Accounting
Standards Committee, pronouncements of other professional associations or
regulatory agencies, AICPA Technical Practice Aids, and accounting
textbooks, handbooks, and articles.

         Balance Sheet (Items 17 - 22)        Yes, No, or N/A   Explanation   
The Balance Sheet presents, as of a specific time, amounts of future
economic benefits owned or managed by the reporting entity (assets),
amounts owed by the entity (liabilities), and amounts that comprise the
difference (net position). (SFFAC 2, par. 57; OMB Circular No. A-136, p.
34, section II.4.3.1)                      
      17) Do "other" assets and liabilities                                   
      include only items that are immaterial                                  
      to the entity and do not warrant                                        
      separate reporting? (OMB Circular No.                                   
      A-136, p. 28 section II.4.1, Item E)                                    
      18) Are entity and nonentity assets                                     
      combined on the face of the balance                                     
      sheet but nonentity assets are                                          
      disclosed in a footnote? (OMB Circular                                  
      No. A-136, p. 34, section II.4.3.1 and                                  
      p. 36, section II.4.3.3)                                                
      19) Is there a line item on the balance                                 
      sheet with a footnote that discloses                                    
      information about heritage assets and                                   
      stewardship land^7? (SFFAS 29, par. 25                                  
      & 40)                                                                   
      20) Are unexpended appropriations and                                   
      cumulative results of operations                                        
      related to earmarked funds shown                                        
      separately on the face of the balance                                   
      sheet, if material? (SFFAS 27, par. 29,                                 
      and OMB Circular No. A-136, p. 45,                                      
      section II.4.3.5)                                                       
Liabilities covered by budgetary resources are liabilities covered by
realized budgetary resources as of the balance sheet date. Budgetary
resources encompass not only new budget authority but also other resources
available to cover liabilities for specified purposes in a given year.
Available budgetary resources include (1) new budget authority, (2)
unobligated balances of budgetary resources at the beginning of the year
or net transfers of prior year balances during the year, (3) spending
authority from offsetting collections (credited to an appropriation or
fund account), and (4) recoveries of unexpired budget authority through
downward adjustments of prior year obligations. Liabilities are covered by
budgetary resources if they are to be funded by permanent indefinite
appropriations or borrowing authority, which have been enacted and signed
into law and are available for use as of the balance sheet date, provided
that the resources may be apportioned by OMB without further action by the
Congress and without a contingency having to be met first. (OMB Circular
No. A-136, p. 41, section II.4.3.4)        
      21) Are liabilities covered by                                          
      budgetary resources and liabilities not                                 
      covered by budgetary resources combined                                 
      on the face of the balance sheet, but                                   
      liabilities not covered by budgetary                                    
      resources disclosed in a footnote? (OMB                                 
      Circular No. A-136, p. 34, section                                      
      II.4.3.1, p. 42, section II.4.3.4)                                      
Intragovernmental assets arise from transactions among federal entities.
Intragovernmental assets represent claims of a federal entity against
other federal entities. Intragovernmental liabilities are claims against
the reporting entity by other federal entities. (OMB Circular No. A-136,
p. 36, section II.4.3.3; p. 42, section II.4.3.4)
      22) Are intragovernmental assets and                                    
      liabilities reported separately from                                    
      assets and liabilities from non-federal                                 
      entities? (The Federal Reserve system                                   
      and government sponsored enterprises                                    
      are considered non-federal entities.)^8                                 
      (OMB Circular No. A-136, p. 36, section                                 
      II.4.3.3, p. 42, section II.4.3.4)                                      

^7 No asset dollar amount is shown, except for multi-use heritage assets,
which are capitalized and reported as part of general PP&E.

^8 Government sponsored enterprises (GSE) are federally chartered but
privately owned and operated entities.

         Statement of Net Cost (Items 23 - 35)       Yes, No, or  Explanation 
                                                         N/A                  
The Statement of Net Cost is designed to show separately the components of
the net cost of the reporting entity's operations for the period. The
statement and any related supporting schedules classify revenue and cost
information by major program and by suborganization or responsibility
segment. (OMB Circular No. A-136, p. 46, section II.4.4.1)
                                                     
Managerial cost accounting is the process of accumulating, measuring,
analyzing, interpreting, and reporting cost information useful to both
internal and external groups concerned with the way in which the
organization uses, accounts for, safeguards, and controls its resources to
meet its objectives. (SFFAS 4, par. 42)           
                                                     
A cost accounting "system" is a continuous and systematic cost accounting
process that may be designed to accumulate and assign costs to a variety
of objects routinely or as desired by management. (SFFAS 4, par. 74)
                                                     
Cost finding is a method for determining the cost of producing goods or
services using appropriate procedures, for example, special cost studies
or analyses. (SFFAS 4, par. 76)                   
      23) Are net costs reported for the entity as a                          
      whole and for its suborganizations^9 and major                          
      programs? (OMB Circular No. A-136, p. 47,                               
      section II.4.4.1)                                                       
      24) Does the entity present responsibility                              
      segments that align directly with the major                             
      goals and outputs described in the entity's                             
      strategic and performance plans required by                             
      the Government Performance and Results Act of                           
      1993 (GPRA)? (SFFAS 4, par. 69; OMB Circular                            
      No. A-136, p. 46, section II.4.4.1)                                     
      25) Does the Statement of Net Cost report by                            
      program                                                                 
                                                                              
              a) gross costs,                                                 
              b) related exchange revenues,                                   
              c) excess of costs over exchange                                
              revenues (net program costs),                                   
              d) costs that cannot be assigned to                             
              specific programs or outputs, and                               
              e) exchange revenues that cannot be                             
              attributed to specific programs and                             
              outputs?                                                        
                                                                              
      (SFFAS 7, par. 43 & 44; OMB Circular No.                                
      A-136, p. 47, section II.4.4.1)                                         
      26) Are the full costs of goods and services                            
      received from other federal entities, whether                           
      or not the providing entity is fully                                    
      reimbursed, included in the Statement of Net                            
      Cost? (SFFAS 4, par. 105; SFFAS 30, par. 5;                             
      OMB Circular No. A-136, p. 48, section                                  
      II.4.4.3)                                                               
      27) Are inter-entity expenses and financing                             
      sources eliminated for any consolidated                                 
      financial statements covering both entities?                            
      (SFFAS 4, par. 109)                                                     
      28) Are costs related to the production of                              
      outputs reported separately from costs that                             
      are not related to the production of outputs                            
      (i.e., nonproduction costs)? (OMB Circular No.                          
      A-136, p. 49, section II.4.4.3)                                         
      29) Are general management and administrative                           
      support costs that cannot be directly traced,                           
      assigned on a cause-and-effect basis, or                                
      reasonably allocated to segments and their                              
      outputs reported as costs not assigned to                               
      programs on the Statement of Net Cost? (SFFAS                           
      4, par. 92; OMB Circular No. A-136, p. 50,                              
      section II.4.4.6)                                                       
      30) Are non-production costs that cannot be                             
      assigned to a particular program reported as                            
      costs not assigned to programs on the                                   
      Statement of Net Cost? (SFFAS 4, par. 92; OMB                           
      Circular No. A-136, p. 50, section II.4.4.6)                            
      31) Is earned revenue reported on the                                   
      Statement of Net Cost or in a supplementary                             
      schedule (regardless of whether the entity is                           
      permitted to retain the revenue in whole or in                          
      part)? OMB Circular No. A-136, pp. 49-50,                               
      section II.4.4.4)                                                       
      32) Are earned revenues deducted from the full                          
      cost of outputs or outcomes to determine their                          
      net program costs? (SFFAS 7, par. 43; OMB                               
      Circular No. A-136, p. 50, sections II.4.4.4                            
      and II.4.4.5)                                                           
      33) Is the net amount of gains (or losses)                              
      subtracted from (or added to) the gross cost                            
      to determine the net cost of operations and                             
      programs? (SFFAS 7, par. 44)                                            
      34) Are earned revenues that are insignificant                          
      or cannot be attributed to particular outputs                           
      or programs reported separately as a deduction                          
      to determine the net cost of operations of the                          
      reporting entity as a whole? (OMB Circular No.                          
      A-136, p. 50, section II.4.4.7)                                         
      35) Are nonexchange revenues and other                                  
      financing sources excluded from calculating                             
      net cost of operations for the reporting                                
      entity? (SFFAS 7, par. 44)                                              

^9 Suborganizations are considered to be generally equivalent to
responsibility segments

    Statement of Changes in Net Position (Items 36 -  Yes, No, or Explanation 
                          55)                             N/A                 
The Statement of Changes in Net Position (SCNP) reports the change in net
position during the reporting period. Net position is affected by changes
to its two components: Cumulative Results of Operations and Unexpended
Appropriations. (OMB Circular No. A-136, p. 51, section II.4.5.1)
      36) Do beginning balances of Cumulative Results                         
      of Operations and Unexpended Appropriations                             
      agree with the amounts reported as net position                         
      on the prior year's Balance Sheet? (OMB                                 
      Circular No. A-136, p. 55, section II.4.5.5)                            
      37) Are "beginning balances, as adjusted,"                              
      equal to the sum of the beginning balances of                           
      net position as reported on the prior year's                            
      Balance Sheet, and the prior period                                     
      adjustments? (OMB Circular No. A-136, p. 57,                            
      section II.4.5.5)                                                       
      38) Are the net position balances attributable                          
      to earmarked funds reported separately from all                         
      other funds, if material? (OMB Circular No.                             
      A-136, p. 55, section II.4.5.5)                                         
      39) Are adjustments to the beginning balances                           
      for Cumulative Results of Operations and                                
      Unexpended Appropriations reported for                                  
                                                                              
              a) changes in accounting principles?                            
              b) correction of errors?                                        
                                                                              
      (OMB Circular No. A-136, pp. 55-57, section                             
      II.4.5.5)                                                               
      40) Are earmarked non-exchange revenue and                              
      other financing sources, including                                      
      appropriations, and net cost of operations                              
      reported separately on the face of the SCNP?                            
      (OMB Circular No. A-136, p. 55, section                                 
      II.4.5.4)                                                               
      41) Are portions of Cumulative Results of                               
      Operations and Unexpended Appropriations                                
      attributable to earmarked funds reported                                
      separately on the face of the SCNP? (OMB                                
      Circular No. A-136, p. 55, section II.4.5.4)                            
      42) Are earmarked and all other funds presented                         
      on a combined basis? (OMB Circular No. A-136,                           
      p. 55, section II.4.5.4)                                                
      43) Are eliminations shown on the SCNP,                                 
      including eliminations between the earmarked                            
      funds and all other funds, as well as                                   
      eliminations within earmarked and all other                             
      funds? (OMB Circular No. A-136, p. 55, section                          
      II.4.5.4)                                                               
      44) Does the entity use a columnar presentation                         
      for its SCNP? (OMB Circular No. A-136, p. 55,                           
      sections II.4.5.3 and II.4.5.4)                                         
      45) If the entity chose to use a linear                                 
      presentation, did the entity also display                               
                                                                              
              a) elimination amount for each affected                         
              statement line, and                                             
              b) the SCNP in a columnar presentation                          
              in the footnote?                                                
                                                                              
      (OMB Circular No. A-136, p. 55, section                                 
      II.4.5.4)                                                               
      46) If errors^10 were discovered after the                              
      issuance of the prior year financial                                    
      statements, and if those financial statements                           
      or the current financial statements would be                            
      materially misstated absent correction of the                           
      errors, were corrections made in the SCNP as                            
      follows:                                                                
                                                                              
              a) If only the current period statement                         
              is presented, is the cumulative effect                          
              of correcting the error reported as a                           
              prior period adjustment to the                                  
              beginning balance of the cumulative                             
              results of operations?                                          
              b) If comparative financial statements                          
              are presented, are individual amounts                           
              on the financial statements corrected                           
              in the earliest affected period                                 
              presented?                                                      
              c) If the earliest period presented in                          
              the comparative financial statements is                         
              not the period in which the error                               
              occurred and the cumulative effect is                           
              attributable to prior periods, is the                           
              cumulative effect reported as a prior                           
              period adjustment to the beginning                              
              balance of cumulative results of                                
              operations in the SCNP for the earliest                         
              period presented?                                               
                                                                              
      (SFFAS 21, par. 10 & 11; OMB Circular No.                               
      A-136, pp. 55-56, section II.4.5.5)                                     
      47) Is the nature of an error in previously                             
      issued financial statements and the effect of                           
      its correction on relevant balances disclosed?                          
      (SFFAS 21, par. 10 (c))                                                 
      48) If changes in accounting principles^11                              
      would have resulted in a change to prior period                         
      financial statements, are they handled in the                           
      following manner                                                        
                                                                              
              a) the cumulative effect of the change                          
              on prior periods is reported as a                               
              "change in accounting principle" and                            
              reported as an adjustment to the                                
              beginning balance of the cumulative                             
              results of operations in the SCNP for                           
              the period that the change is made,                             
              b) if comparative financial statements,                         
              prior period amounts are presented as                           
              previously reported, and                                        
              c) the nature of the changes in                                 
              accounting principle and its effect on                          
              relevant balances are disclosed in the                          
              current period?^12                                              
                                                                              
      (SFFAS 21, par. 12 & 13)                                                
      49) Do the items reported in the "other                                 
      financing sources" section equal the amounts                            
      reported as similar line items in the "other                            
      resources"^13 section on the Statement of                               
      Financing? (OMB Circular No. A-136, p. 59,                              
      section II.4.5.7)                                                       
      50) Does imputed financing reported on the                              
      Statement of Changes in Net Position equal the                          
      amount of imputed costs within the Statement of                         
      Net Cost? (OMB Circular No. A-136, p. 59,                               
      section II.4.5.7)                                                       
      51) Does the amount "net cost of operations"                            
      reported under cumulative results of operations                         
      agree with "net cost of operations" as reported                         
      on the Statement of Net Cost and Statement of                           
      Financing? (OMB Circular No. A-136, p. 59,                              
      section II.4.5.8 & p. 74, section II.4.7.7)                             
      52) Is the difference between the net cost of                           
      operations and the sum of the financing sources                         
      (i.e., budgetary and other) and beginning                               
      balance, as adjusted, equal to the ending                               
      balance of net position as it relates to the                            
      cumulative results of operations? (OMB Circular                         
      No. A-136, p. 59, section II.4.5.8)                                     
      53) Do the ending balances of the cumulative                            
      results of operations and unexpended                                    
      appropriations agree with the amounts reported                          
      as net position on the current year's Balance                           
      Sheet? (OMB Circular No. A-136, p. 59, section                          
      II.4.5.10)                                                              
      54) If the entity incurs virtually no cost in                           
      connection with earning exchange revenue, is                            
      such revenue shown as a financing source on the                         
      Statement of Changes in Net Position or (if                             
      appropriate) Statement of Custodial Activity                            
      and not recognized in the Statement of Net                              
      Cost? (SFFAS 7, par. 45)                                                
      55) Is any portion of exchange revenue that                             
      cannot be retained by the entity reported as a                          
      transfer-out on the Statement of Changes in Net                         
      Position? (OMB Circular No. A-136, p. 50,                               
      section II.4.4.4)                                                       

^10 Errors in financial statements result from mathematical mistakes,
mistakes in the application of accounting principles, or oversight or
misuse of facts that existed at the time the financial statements were
prepared.

^11 A change in accounting principle is a change from one generally
accepted accounting principle to another one that can be justified as
preferable; this would also include changes occasioned by the adoption of
new federal accounting standards.

^12 Financial statements of subsequent periods need not repeat the
disclosure.

^13 Other resources increase net position but are not budgetary resources
as reported on the "Statement of Budgetary Resources" or defined as such
in OMB Circular No. A-11, Part 4.

           Statement of Budgetary Resources           Yes, No,                
                                                       or N/A    Explanation  
                    (Items 56 - 73)                                           
The budget is the primary financial planning and control tool of the
government. The Statement of Budgetary Resources (SBR) and the related
disclosures provide information about how budgetary resources were made
available as well as their status at the end of the period. It is the only
financial statement predominantly derived from an entity's budgetary
general ledger, prepared in accordance with budgetary accounting rules,
which are incorporated into U.S. GAAP for the Federal Government. (SFFAS
7, par. 77; OMB Circular No. A-136, p. 60, section II.4.6.1)
      56) Is the recognition and measurement of                               
      budgetary information reported on the SBR                               
      based on budget terminology, definitions, and                           
      guidance in OMB Circular No. A-11,                                      
      Preparation, Submission and Execution of the                            
      Budget, (June 2006)? (SFFAS 7, par. 78; OMB                             
      Circular No. A-136, p. 61, section II.4.6.1)                            
      57) Is information on the SBR consistent with                           
      budget execution information reported on the                            
      Report on Budget Execution and Budgetary                                
      Resources (SF 133) and with information                                 
      reported in the Budget of the United States                             
      Government? (OMB Circular No. A-136, p. 60,                             
      section II.4.6.1)                                                       
      58) Is the format of the SBR based on the                               
      format of the SF-133 as described in OMB                                
      Circular A-11, as amended? (OMB Circular No.                            
      A-136, p. 61, section II.4.6.3)                                         
      59) Are material differences between                                    
      comparable information contained in the SBR                             
      and the Budget of the United States Government                          
      disclosed in the footnotes? (OMB Circular No.                           
      A-136, p. 61, II.4.6.1)                                                 
      60) Is the budgetary information in the SBR                             
      presented on a combined basis that is                                   
      consistent with the aggregate of the                                    
      account-level information presented on the SF                           
      133s? (OMB Circular No. A-136, p. 61, section                           
      II.4.6.2)                                                               
      61) Are non-budgetary credit reform financing                           
      accounts reported separately from the                                   
      budgetary accounts? (OMB Circular No. A-136,                            
      p. 61, section II.4.6.3)                                                
      62) In its SBR under "Budgetary Resources"                              
      does the entity include                                                 
                                                                              
              a) unobligated balances, brought                                
              forward,                                                        
              b) recoveries of prior year unpaid                              
              obligations,                                                    
              c) new budget authority, including                              
                                                                              
                      i) appropriation,                                       
                      ii) borrowing authority,                                
                      iii) contract authority,                                
                                                                              
              d) spending authority from offsetting                           
              collections, including                                          
                                                                              
                      i) earned authority that is                             
                      collected and/or change in                              
                      receivables from federal                                
                      sources,                                                
                      ii) changes in unfilled                                 
                      customer orders with                                    
                      advance(s) received, and/or                             
                      without advance(s) from                                 
                      federal sources,                                        
                      iii) previously unavailable,                            
                      iv) expenditure transfers from                          
                      trust funds,                                            
                                                                              
              e) nonexpenditure transfers, net,                               
              anticipated (should be zero at year                             
              end), and actual,                                               
              f) budgetary resources temporarily not                          
              available pursuant to public law, and                           
              g) budgetary resources permanently not                          
              available?                                                      
                                                                              
      (OMB Circular No. A-136, p. 64, section                                 
      II.4.6.5 & p. 66, section II.4.6.6; SFFAS 7,                            
      par. 77)                                                                
      63) Do the budgetary resources reported in                              
      this section agree with the total budgetary                             
      resources reported for all of the budget                                
      accounts on the year-end SF 133? (OMB Circular                          
      No. A-136, p. 66, section II.4.6.6)                                     
      64) Are expired obligated and unobligated                               
      balances that cancel at the end of the fiscal                           
      year reported as canceled on the year-end SBR?                          
      OMB Circular No. A-136, p. 66, section                                  
      II.4.6.6)                                                               
      65) In its SBR under "Status of Budgetary                               
      Resources" does the entity include                                      
                                                                              
              a) obligations incurred that are:                               
                                                                              
                      i) direct and/or,                                       
                      ii) reimbursable,                                       
                                                                              
              b) unobligated balance(s) that are:                             
                                                                              
                      i) apportioned and/or,                                  
                      ii) exempt from apportionment,                          
                                                                              
              c) unobligated balance(s) not                                   
              available?                                                      
                                                                              
      (OMB Circular No. A-136, p. 65, section                                 
      II.4.6.5 & p. 66, section II.4.6.7; SFFAS 7,                            
      par. 77)                                                                
      66) Does the total amount displayed for the                             
      "status of budgetary resources" section of the                          
      SBR equal "total budgetary resources"                                   
      available to the reporting entity as of the                             
      reporting date? (OMB Circular No. A-136, p.                             
      66, section II.4.6.7)                                                   
      67) Does the status of budgetary resources                              
      reported on the SBR agree with the total                                
      status reported for the aggregate of all                                
      budget accounts on the year-end SF 133? (OMB                            
      Circular No. A-136, p. 66, section II.4.6.7)                            
      68) In its SBR under "Change in Obligated                               
      Balance" does the entity include                                        
                                                                              
              a) obligated balance(s), net, that                              
              are:                                                            
                                                                              
                      i) unpaid obligations, brought                          
                      forward,                                                
                      ii) uncollected customer                                
                      payments from federal sources,                          
                      brought forward,                                        
                                                                              
              b) obligations incurred, net,                                   
              c) gross outlays,                                               
              d) obligated balance transferred, net                           
              that are:                                                       
                                                                              
                      i) actual transfers, unpaid                             
                      obligations,                                            
                      ii) actual transfers,                                   
                      uncollected customer payments                           
                      from federal sources,                                   
                                                                              
              e) recoveries of prior year unpaid                              
              obligations, actual,                                            
              f) change in uncollected customer                               
              payments from federal sources,                                  
              g) obligated balance, net, end of                               
              period that are:                                                
                                                                              
                      i) unpaid obligations, and                              
                      ii) uncollected customer                                
                      payments from federal sources?                          
                                                                              
      (OMB Circular No. A-136, p. 65, section                                 
      II.4.6.5 & p. 66, section II.4.6.8)                                     
      69) In its SBR under "Net Outlays" does the                             
      entity include                                                          
                                                                              
              a) gross outlays,                                               
              b) offsetting collections, and                                  
              c) distributed offsetting receipts?^14                          
                                                                              
      (OMB Circular No. A-136, p. 65, section                                 
      II.4.6.5 & p. 66, section II.4.6.9)                                     
      70) Do the outlays^15 reported in "Net                                  
      Outlays" section agree with the agency outlay                           
      totals reported in the Budget of the United                             
      States Government?^16 (OMB Circular No. A-136,                          
      p. 66, section, II.4.6.9)                                               
      71) Do the outlays also agree with the                                  
      aggregate of outlays reported on the year-end                           
      SF 133 for the aggregate of all budget                                  
      accounts, including non-budgetary financing                             
      accounts and the disbursements and collections                          
      reported to Treasury on a monthly basis^17 as                           
      per OMB Circular No. A-11, as amended? (OMB                             
      Circular No. A-136, p. 66, section II.4.6.9)                            
Offsetting receipts are collections that are credited to general fund,
special fund, or trust fund receipt accounts and that offset gross
outlays. Unlike offsetting collections, which are credited to expenditure
accounts and offset outlays at the account level, offsetting receipts are
credited to receipt accounts and offset outlays at the agency or
governmentwide level.                             
                                                     
Offsetting receipts may be distributed to agencies or undistributed.
Distributed offsetting receipts offset the outlays of the agency, while
undistributed offsetting receipts offset governmentwide outlays.
Distributed offsetting receipts typically offset the outlays of the agency
that conducts the activity, generating the receipts and the subfunction to
which the activity is assigned. Offsetting receipts are composed of
proprietary receipts from the public, receipts from intragovernmental
transactions, and offsetting governmental receipts. (OMB Circular No.
A-136, p. 67, section II.4.6.9)                   
      72) Does the amount of distributed offsetting                           
      receipts reported on the SBR agree with the                             
      aggregate of cash collected in the receipt                              
      accounts and reported to Treasury on a monthly                          
      basis? (OMB Circular No. A-136, p. 67, section                          
      II.4.6.9)                                                               
      73) Does the amount of offsetting receipts                              
      that are distributed to entities and reported                           
      on the SBR agree with the deductions for                                
      offsetting receipts as reported in the Budget                           
      of the United States Government, if available                           
      by the time the financial statements must be                            
      finalized and submitted? (OMB Circular No.                              
      A-136, p. 67, section II.4.6.9)                                         

^14 Offsetting receipts offset budget authority and outlays at the agency
level in the Budget of the United States Government, but are not reflected
in budget execution reports (SF 133s), which provide account-level
information only. Since the SBR is an agencywide report, offsetting
receipts are included to reconcile to information in the Budget of the
United States Government.

^15 Outlays consist of disbursements net of offsetting collections.

^16 That is, do the outlays agree with the aggregate of the outlays for
accounts within the Budget of the United States Government?

^17 Agencies report their disbursements and collections using the SF 224,
Statement of Transactions; SF 1219, Statement of Accountability; and SF
1220, Statement of Transactions.

      Statement of Financing (Items 74 - 97)      Yes, No, or    Explanation  
                                                      N/A                     
The Statement of Financing is the bridge between an entity's budgetary and
financial (i.e., proprietary) accounting. The Statement of Financing
articulates the relationship between net obligations derived from an
entity's budgetary accounts and net cost of operations derived from the
entity's proprietary accounts by identifying and explaining key
differences between the two numbers.          
                                                 
Most entity transactions are recorded in both budgetary and proprietary
accounts. However, because different accounting bases are used for
budgetary and proprietary accounting, some transactions may appear in only
one set of accounts (e.g., accrual of environmental and disposal
liabilities, which is recorded only in the proprietary records).
Furthermore, not all obligations or offsetting collections may result in
expenses or exchange revenue (e.g., purchase of a building is capitalized
on the balance sheet in the proprietary accounts but obligated and
outlayed in the budgetary accounts).          
                                                 
The statement is structured to first identify total resources used by an
entity during the period (budgetary and other) and then make adjustments
to the resources based upon how they were used to finance net obligations
or net cost. Budgetary resources reported in this statement are those
resources as defined in OMB Circular No. A-11 and are also reported on the
Statement of Budgetary Resources. Other resources reported in this
statement are also reflected in the Statement of Changes in Net Position.
(OMB Circular No. A-136, p. 69, section II.4.7.1; SFFAS 7, par. 80 & 95)
                                                 
The section "Resources Used to Finance Activities" reflects the budgetary
resources obligated and other resources that are used to finance the
activities of the agency. The obligations of budgetary resources are net
of offsetting collections, recoveries, and offsetting receipts. The other
resources are financing sources that increase net position but are not
budgetary resources. Every line item in this section is also reported on
either the Statement of Budgetary Resources, or the Statement of Changes
in Net Position. (OMB Circular No. A-136, p. 71, section II.4.7.3)
                      Resources Used to Finance Activities
      74) Is the budgetary information used to                                
      calculate net obligations^18 in the                                     
      "Resources Used to Finance Activities"                                  
      section of the Consolidated Statement of                                
      Financing, presented on a combined                                      
      basis^19 and in agreement with similar                                  
      amounts reported on the SBR? (OMB Circular                              
      No. A-136, p. 31, section II.4.2, item 5,                               
      & p. 69, section II.4.7.1)                                              
      75) Does the amount reported as                                         
      "obligations incurred" equal the                                        
      obligations incurred line item as reported                              
      on the SBR?                                                             
                                                                              
      Does this include all budget accounts,                                  
      including nonbudgetary financing accounts?                              
      (OMB Circular No. A-136, p. 71, section                                 
      II.4.7.3)                                                               
      76) Does the line item "less: spending                                  
      authority from offsetting^20 collections                                
      and recoveries"^21 agree with the spending                              
      authority from offsetting collections and                               
      recoveries as reported on the SBR?                                      
                                                                              
      Does this include all budget accounts,                                  
      including nonbudgetary financing accounts?                              
      (OMB Circular No. A-136, pp. 71-72,                                     
      section II.4.7.3)                                                       
      77) Is "Obligations net of offsetting                                   
      collections and recoveries" equal to the                                
      difference between "obligations incurred"                               
      and "spending authority from offsetting                                 
      collections and recoveries?" (OMB Circular                              
      No. A-136, p. 72, section II.4.7.3)                                     
      78) Does the amount reported as "less:                                  
      offsetting receipts" equal the offsetting                               
      receipts^22 line item as reported on the                                
      SBR? (OMB Circular No. A-136, p. 72,                                    
      section II.4.7.3)                                                       
      79) Do "net obligations"^23 equal the                                   
      difference between "obligations net of                                  
      offsetting collections and recoveries" and                              
      "offsetting receipts?" (OMB Circular No.                                
      A-136, p. 72, section II.4.7.3)                                         
      80) Does the entity's Statement of                                      
      Financing include other nonbudgetary                                    
      resources used to finance activities?                                   
                                                                              
      Do the line item amounts as reported on                                 
      the entity's Statement of Financing equal                               
      the following corresponding line item                                   
      amounts reported as "other financing                                    
      sources" on the Statement of Changes in                                 
      Net Position for                                                        
                                                                              
              a) donations and forfeitures of                                 
              property?                                                       
              b) transfers in or out without                                  
              reimbursement?                                                  
              c) imputed financing from costs                                 
              absorbed by others?                                             
              d) other?                                                       
                                                                              
      (OMB Circular No. A-136, p. 72, section                                 
      II.4.7.3)                                                               
      81) Is "total resources used to finance                                 
      activities" equal to the sum of net                                     
      obligations^24 and net other                                            
      (nonbudgetary) resources used to finance                                
      activities? (OMB Circular No. A-136, p.                                 
      70, section II.4.7.2)                                                   
The section, "Resources Used to Finance Items Not Part of the Net Cost of
Operations," in the Statement of Financing adjusts total resources used to
finance the activities of the entity to account for items that were
included in net obligations and other resources, but which were not part
of the net cost of operations. This section would include items in which
the expense was recognized in a prior period but the budgetary resource
and obligation are recognized in the current period (e.g., upward/downward
reestimates of subsidy expense accrued in the prior period but obligated
in the current period). It would also include budgetary resources and
obligations recognized in the current period that do not affect the net
cost of operations (e.g., the acquisition of assets reflected in net
obligations but not in net cost of operations for the period). (OMB
Circular No. A-136, p. 72, section II.4.7.4)  
Resources Used to Finance Items Not Part of the Net Cost of Operations
      82) Does the line item, "change in                                      
      budgetary resources obligated for goods,                                
      services, and benefits ordered but not yet                              
      provided (+/-),"^25 reflect undelivered                                 
      orders, or adjustments thereof, that are                                
      included in net obligations, but which are                              
      not part of the net cost of operations?                                 
      (OMB Circular No. A-136, p. 72, section                                 
      II.4.7.4)                                                               
      83) Does the line item, "resources that                                 
      fund expenses recognized in prior                                       
      periods,"^26 reflect the obligation of                                  
      resources that were part of the net cost                                
      of operations in a prior period? (OMB                                   
      Circular No. A-136, p. 72, section                                      
      II.4.7.4)                                                               
      84) Do the line items included under                                    
      "budgetary offsetting collections and                                   
      receipts that do not affect net cost of                                 
      operations" reflect offsetting collections                              
      and receipts^27 that are not reported as                                
      exchange revenue in the Statement of Net                                
      Cost? (OMB Circular No. A-136, p. 72,                                   
      section II.4.7.4)                                                       
      85) Does the line item, "resources that                                 
      finance the acquisition of assets,"                                     
      reflect budgetary resources obligated^28                                
      that are not expenses as reported on the                                
      Statement of Net Cost? (OMB Circular No.                                
      A-136, p. 73, section II.4.7.4)                                         
      86) Does the agency include under the line                              
      item, "other resources or adjustments to                                
      net obligated resources that do not affect                              
      net cost of operations," activities^29 not                              
      otherwise classified under the other line                               
      items in this section of the Statement of                               
      Financing? (OMB Circular No. A-136, p. 73,                              
      section II.4.7.4)                                                       
      87) Does the line item, "total resources                                
      used to finance the net cost of                                         
      operations," consist of the difference                                  
      between the line items "total resources                                 
      used to finance activities" and "total                                  
      resources used to finance items not part                                
      of the net cost of operations?" (OMB                                    
      Circular No. A-136, p. 70, section                                      
      II.4.7.2)                                                               
The section, "Components of the Net Cost of Operations that will not
Require or Generate Resources in the Current Period," identifies (1) items
that are recognized as a component of the net cost of operations (i.e.,
current period expenses and exchange revenues) for which budgetary
resources (and related obligations) will not be provided (or incurred)
until a subsequent period and (2) items (i.e., current period expenses)
that are recognized as a part of the net cost of operations for the period
but will not generate or require the use of resources in the current
period. (OMB Circular No. A-136, p. 73, section II.4.7.5 & p. 74, section
II.4.7.6)                                     
Components of the Net Cost of Operations that Will Not Require or Generate
                        Resources in the Current Period
      88) Does the line item, "increase in                                    
      annual leave liability," include the                                    
      expense related to the increase^30 in                                   
      annual leave liability for which the                                    
      budgetary resources will be provided in a                               
      subsequent period? (OMB Circular No.                                    
      A-136, p. 73, section II.4.7.5)                                         
      89) Does the line item, "increase in                                    
      environmental and disposal liability,"                                  
      include the expense related to the                                      
      increase in environmental and disposal                                  
      liability for which the budgetary                                       
      resources will be provided in a subsequent                              
      period? (OMB Circular No. A-136, p. 74,                                 
      section II.4.7.5)                                                       
      90) Does the line item "upward/downward                                 
      reestimates of credit subsidy expense                                   
      (+/-)," include the expense recognized as                               
      a result of an upward (+) or downward (-)                               
      reestimate of credit program subsidy cost                               
      for which budgetary resources (or                                       
      obligations) will be provided (or                                       
      incurred) in a subsequent period?^31 (OMB                               
      Circular No. A-136, p. 74, section                                      
      II.4.7.5)                                                               
      91) Are credit subsidy reestimates                                      
      reflected as liabilities covered by                                     
      budgetary resources?^32 (OMB Circular No.                               
      A-136, p. 74, section II.4.7.5)                                         
      92) Does the line item, "increase in                                    
      exchange revenue receivable from the                                    
      public," include exchange revenue                                       
      recognized as a component^33 of the net                                 
      cost of operations for the period? (OMB                                 
      Circular No. A-136, p. 74, section                                      
      II.4.7.5)                                                               
      93) Does the entity report as "other"                                   
      under the section "Components Requiring or                              
      Generating Resources in Future Periods,"                                
      all other expenses and exchange revenue                                 
      not specifically mentioned in the                                       
      preceding questions that do not require or                              
      generate resources in the current period                                
      but will do so in a subsequent period?                                  
      (OMB Circular No. A-136, p. 74, section                                 
      II.4.7.5)                                                               
      94) Does the line item, "depreciation and                               
      amortization," reflect the current period                               
      usage of assets^34 or amortization of                                   
      liabilities^35 for which budgetary                                      
      resources were obligated in a prior                                     
      period? (OMB Circular No. A-136, p. 74,                                 
      section II.4.7.6)                                                       
      95) Does the line item, "revaluation of                                 
      assets and liabilities," include gains and                              
      losses recognized^36 during the                                         
      revaluation of assets or liabilities? (OMB                              
      Circular No. A-136, p. 74, section                                      
      II.4.7.6)                                                               
      96) Does the entity report as "other"                                   
      under the section "components not                                       
      requiring or generating resources," all                                 
      other expenses^37 and exchange revenue not                              
      specifically mentioned in the preceding                                 
      questions that will not require or                                      
      generate resources in the current period?                               
      (OMB Circular No. A-136, p. 74, section                                 
      II.4.7.6)                                                               
      97) Does the sum of the line items "total                               
      resources used to finance net cost of                                   
      operations" and "total components of net                                
      cost of operations that will not require                                
      or generate resources in the current                                    
      period" agree with the net cost of                                      
      operations as reported in the Statement of                              
      Net Cost as well as the Statement of                                    
      Changes in Net Position? (OMB Circular No.                              
      A-136, p. 74, section II.4.7.7, and page                                
      52, line 15)                                                            

^18 The budgetary information includes the line items (1) "obligations
incurred," (2) "less: spending authority from offsetting collections and
recoveries," (3) "obligations net of offsetting collections and
recoveries," and 4) "less: offsetting receipts."

^19 A combined basis means the aggregation of account-level information as
opposed to a consolidation that implies the elimination of inter-account
transactions.

^20 "Offsetting" in the term "offsetting collections" means that the
resources generated by the collecting activity are added to the
expenditure accounts and hence "offset" gross obligations. (SFFAS 7
Implementation Guide (April 2002), par. 22)

^21 Recoveries are budgetary resources that offset obligations on the
Statement of Budgetary Resources, but are not a proprietary financing
source used to offset costs on the Statement of Net Cost. (OMB Circular
A-136, p. 73, section II.4.7.4)

^22 Offsetting receipts differ from "offsetting collections." Offsetting
collections are included in the entity's expenditure account and thus are
usually available for spending for the purposes of the account without
further action by Congress. (SFFAS 7 Implementation Guide (April 2002),
par. 23)

^23 Net obligations reflect obligations incurred net of offsetting
collections, recoveries, and offsetting receipts.

^24 One of the reasons that net obligations does not equal the amount of
the net cost of operations is that there are resources that are not
reported in the Budget of the United States Government that may finance
the net cost of operations or other activities of the agency.

^25 This line item is used to explain the difference between the total
resources used to finance activities and the net cost of operations
because of the change in "budgetary resources obligated for goods,
services, and benefits ordered but not yet provided," i.e., "undelivered
orders." Undelivered orders are part of "obligations incurred," but they
do not affect the net cost of operations. Thus, for a transaction
involving the placing a $100 undelivered order, obligations incurred would
increase by $100 but would be shown as a negative or a reduction to total
resources used to finance activities. (SFFAS 7 Implementation Guide (April
2002), par. 53-55)

^26 This line item is used to explain differences in resources and net
cost of operations caused by expenses, which were accrued in previous
periods but paid in the current period. If, for example, the amount of
annual leave taken or obligated was worth $250 but the amount of annual
leave earned (i.e., expensed) for the period was $200, the difference of
$50 between obligation and expense would be shown as a negative. (SFFAS 7
Implementation Guide (April 2002), par. 56-58)

^27 Examples of offsetting collections and receipts that are not exchange
revenue are (1) collections of subsidy expenses for post -1991 credit
programs, (2) collections of exchange revenue receivable from the public,
and (3) advances (i.e., unfilled customer orders) for work not performed,
with the caveat that in most cases, orders from the public without
advances cannot be accepted. This line item is usually shown as a
positive, the opposite (i.e., negative) of what is included under the line
item, "less: spending authority from offsetting collections and
recoveries," unless there is a net decrease in unfilled customer orders.
(SFFAS 7 Implementation Guide (April 2002), par. 59-61)

^28 An example of this activity is the purchase of capital assets. (SFFAS
7 Implementation Guide (April 2002), par. 62)

^29 This activity may include noncash recoveries of prior year
obligations. Recoveries are budgetary resources that offset obligations on
the Statement of Budgetary Resources, but which are not a proprietary
financing source used to offset costs on the Statement of Net Cost.

^30 An increase in annual leave liability has no effect on budgetary
accounts, because it is not funded on an accrual basis. It is financed
when it is taken and the amounts are paid to employees who took the leave.
Thus, budgetary resources are zero, but the net cost of operations
includes the amount of accrued leave. (SFFAS 7 Implementation Guide (April
2002), par. 40)

^31 The Credit Reform Act of 1990, as amended, provides that agencies will
receive subsidies to cover defaults and other situations for direct loans
and loan guarantees obligated after September 30, 1991. (SFFAS 7
Implementation Guide (April 2002), par. 66)

^32 Budget authority to fund reestimates is permanent and indefinite and
no further congressional action is needed to provide the resources.

^33 Absent specific legislation to the contrary, public receivables do not
count as budgetary resources until they are collected. Hence, the revenue
related to accruals of those resources is not reflected in offsetting
collection activity at the time they are accrued. (SFFAS 7 Implementation
Guide (April 2002) par. 70)

^34 Budgetary resources are obligated when the asset is acquired, not when
it is depreciated or used up. No budgetary resources are used when an
asset is depreciated. (SFFAS Implementation Guide, par. 44)

^35 Budgetary resources are obligated when an allowance (i.e., liability
or contra-asset) for a subsidy is set up, and as the estimated expenses
are realized the allowance account is amortized. The budgetary accounts,
which have already recognized the obligation and offsetting collection for
subsidy expense, are not affected by the transaction. (SFFAS 7
Implementation Guide (April 2002), par. 92)

^36 Gains are shown as a negative; losses are shown as a positive.

^37 An example of this would be default expenses of pre-credit reform (or
pre-1992) loans.

           Statement of Custodial Activities          Yes, No, or             
                                                          N/A     Explanation 
                     (Items 98-106)                                           
Entities that collect nonexchange revenue for the General Fund of the
Treasury, a trust fund, or other recipient entities account for the
sources and disposition of these collections in a Statement of Custodial
Activity.                                          
                                                      
An entity need not prepare a Statement of Custodial Activity when
custodial collections are immaterial and incidental to their primary
mission. In these cases, the sources and disposition of the collections
may be disclosed in accompanying footnotes. (OMB Circular No. A-136, p.
75, section II.4.8.1)                              
      98) Is nonexchange revenue transferred to                               
      others reported on the Statement of Custodial                           
      Activity? (OMB Circular No. A-136, p. 75,                               
      section II.4.8.1, par. 1)                                               
      99) In exceptional circumstances, has the                               
      entity reported exchange revenue with virtually                         
      no collection costs on the Statement of                                 
      Custodial Activity? (OMB Circular No. A-136, p.                         
      75, section II.4.8.1. par. 3)                                           
                             Sources of Collections   
      100) Are the components of cash collections                             
      classified by source and nature of collection,                          
      such as by type of tax or duty? (OMB Circular                           
      No. A-136, p. 77, section II.4.8.3)                                     
      101) Are nonexchange revenue accrual                                    
      adjustments shown separately in the "sources of                         
      collections" section and added or subtracted                            
      from the net collections to determine the total                         
      custodial exchange revenue? (OMB Circular No.                           
      A-136, p. 77, section II.4.8.3)                                         
                           Disposition of Collections 
      102) Do the amounts transferred to others,                              
      reported in the "disposition of collections"                            
      section, identify the specific agencies to                              
      which collections were transferred and the                              
      amounts transferred? (OMB Circular No. A-136,                           
      p. 77, section II.4.8.4)                                                
      103) Is the change in liability for accrued and                         
      collected revenue yet to be transferred                                 
      reported separately in the "disposition of                              
      collections" section of the Statement of                                
      Custodial Activity? (OMB Circular No. A-136, p.                         
      77, section II.4.8.4)                                                   
      104) Are the amounts of refunds and other                               
      payments made reported separately in the                                
      "disposition of collections" section of the                             
      Statement of Custodial Activity? (OMB Circular                          
      No. A-136, p. 77 section II.4.8.4)                                      
      105) Are collections retained by the entity                             
      separately reported as exchange revenue in the                          
      Statement of Net Cost and treated as a                                  
      disposition of collections revenue in the                               
      statement of custodial activity? (OMB Circular                          
      No. A-136, p. 75, section II.4.8.1 & p. 77,                             
      section II.4.8.4)                                                       
      106) Do total sources of collections equal                              
      total disposition of collections (revenue) so                           
      that the net custodial activity is zero? (OMB                           
      Circular No. A-136, p. 77, section II.4.8.5)                            

              Statement of Social Insurance            Yes, No,               
                                                        or N/A   Explanation  
                     (Items 107-108)                                          
Reporting on stewardship responsibilities aids in assessing the federal
government's financial condition and the sufficiency of future budgetary
resources to sustain public services and meet obligations as they become
due. Information for social insurance programs is reported to address
fundamental questions about the current and future financial condition of
these programs. These fundamental questions include whether scheduled
expenditures are sustainable with current scheduled income. Information to
be disclosed for social insurance programs is intended to facilitate an
assessment of the long-term sustainability of the program as well as the
ability of the program to raise resources from future program participants
to pay for benefits to present participants.        
                                                       
For the programs listed as social insurance, the Statement of Social
Insurance (SOSI) present the actuarial present value for the projection
period of all future contributions and tax income (excluding interest)
received from or on behalf of current and future participants; the
actuarial present value for the projection period of estimated future
scheduled expenditures paid to or on behalf of current and future
participants; and the actuarial present value for the projection period of
the estimated future excess of contributions and tax income (excluding
interest) over future scheduled expenditures. The SOSI provides
information for the current year and separate estimates for each of the
preceding four years. (SFFAS 17, par. 1; OMB Circular No. A-136, p. 78,
section II.4.9.1)                                   
      107) For all social insurance programs except                           
      Unemployment Insurance (UI),^38 does the                                
      responsible entity's SOSI present                                       
                                                                              
              a) The actuarial present value of all                           
              future expenditures during the                                  
              projection period related to benefit                            
              payments: (SFFAS 17, par. 27 (3) (a) -                          
              (c))                                                            
                                                                              
                      i) to or on behalf of current                           
                      participants who have not yet                           
                      attained retirement/eligibility                         
                      age;                                                    
                      ii) to or on behalf of current                          
                      participants who have attained                          
                      retirement/eligibility age; and                         
                      iii) to or on behalf of those                           
                      who are expected to become plan                         
                      participants during a projection                        
                      period encompassing                                     
                      substantially all the present                           
                      value attributed to i) and ii)                          
                      immediately above.                                      
                                                                              
              b) the actuarial present value of all                           
              future contributions and tax income                             
              (from taxation of benefits) during the                          
              projection period: (SFFAS 17, par. 27                           
              (3) (d) - (f)),                                                 
                                                                              
                      i) from or on behalf of current                         
                      participants who have not yet                           
                      attained retirement/eligibility                         
                      age;                                                    
                      ii) from or on behalf of current                        
                      participants who have attained                          
                      retirement/eligibility age; and                         
                      iii) from or on behalf of those                         
                      who are expected to become plan                         
                      participants during a projection                        
                      period encompassing                                     
                      substantially all the present                           
                      value attributed to i) and ii)                          
                      immediately above.                                      
                                                                              
              c) the net present value of cash flow                           
              during the projection period?                                   
                                                                              
      (SFFAS 17, par. 27 (3) (g))                                             
      108) Is the information detailed in the                                 
      preceding question for the current year and for                         
      each of the preceding four years? (SFFAS 17,                            
      par. 27 (3) (j); OMB Circular No. A-136, p. 79,                         
      section II.4.9.1)                                                       
      109) Are all projections and estimates made as                          
      of a date (the valuation date) as close to the                          
      end of the fiscal year being reported upon                              
      ("current year") as possible and no more than                           
      one year prior to the end of the current year?                          
      (SFFAS 17, par. 26)                                                     

^38 Although SFFAS 17 lists UI for general public, the requirements for
the SOSI in paragraphs 27(3) and 32(3) of SFFAS 17 specifically exclude
UI. Therefore, a SOSI is not required for UI.

  Section V -- Note Disclosures

The question numbers related to each caption are identified below.

Note Disclosure                                           Question numbers 
Significant Accounting Policies                                1 - 10      
Non-entity Assets                                                11        
Fund Balance with Treasury                                    12 - 21      
Cash and Other Monetary Assets                                22 - 26      
Investments                                                   27 - 35      
Receivables:                                                               
Accounts Receivable, Net                                      36 - 38      
Taxes Receivable, Net                                            39        
Interest Receivable, Net                                      40 - 41      
Direct Loans and Loan Guarantees, Non-Federal Borrowers       42 - 73      
Inventory and Related Property, Net:                                       
Inventory (primarily held for sale)                           74 - 76      
Operating Materials and Supplies                              77 - 79      
Stockpile Materials                                           80 - 81      
Seized Property                                               82 - 85      
Forfeited Property                                            86 - 87      
Goods Held Under Price Support and Stabilization Programs     88 - 89      
General Property, Plant, and Equipment (PP&E), Net            90 - 94      
Stewardship PP&E                                              95 - 100     
Other Assets                                                 101 - 104     
Liabilities Not Covered by Budgetary Resources               105 - 107     
Debt                                                         108 - 112     
Federal Employee and Veterans' Benefits                      113 - 115     
Environmental Liabilities                                       116        
Cleanup Cost Adjustments                                        117        
Other Liabilities                                            118 - 120     
Leases                                                       121 - 124     
Life Insurance Liabilities                                   125 - 126     
Commitments and Contingencies                                127 - 130     
Earmarked Funds                                              131 - 133     
Intragovernmental Costs and Exchange Revenue                 134 - 138     
Suborganization Program Costs/Program Costs by Segment       139 - 140     
Cost of Stewardship PP&E                                      141 -142     
Exchange Revenues                                               143        
Budgetary Resources Statement Disclosures                     144 -146     
Financing Statement Disclosures                                 147        
Custodial Activity Statement Disclosures                     148 - 153     
Social Insurance Statement Disclosures                        154 -157     
Dedicated Collections                                         158 -160     
Restatements                                                 161 - 164     
Fiduciary Activities                                         165 - 178     

            Significant Accounting Policies          Yes, No, or  Explanation 
                                                         N/A                  
                    (Items 1 - 10)                                            
Disclosure of accounting policies identifies and describes the accounting
principles followed by the reporting entity and the methods of applying
those principles. In general, the disclosure encompasses important
judgments as to the valuation, recognition, and allocation of assets,
liabilities, expenses, revenues and other financing sources. (OMB Circular
No. A-136, p. 83, section II.4.10.1)              
      1) Is a description of the reporting entity                             
      including identification of its major                                   
      components disclosed in significant accounting                          
      policies? (OMB Circular No. A-136, p. 83,                               
      section II.4.10.1)                                                      
      2) Has entity management summarized all                                 
      appropriate accounting principles and their                             
      application to fairly present the entity's                              
      assets, liabilities, net cost of operations,                            
      changes in net position and budgetary                                   
      resources in the disclosure of significant                              
      accounting policies? (OMB Circular No. A-136,                           
      p. 83, section II.4.10.1)                                               
      3) Does the disclosure of accounting policies                           
      encompass important judgments as to the                                 
      valuation, recognition, and allocation of                               
      assets, liabilities, expenses, revenues and                             
      other financing sources? (OMB Circular No.                              
      A-136, p. 83, section II.4.10.1)                                        
      4) Do the disclosures of accounting policies                            
      not duplicate details in other notes to the                             
      financial statements? (OMB Circular No. A-136,                          
      p. 83, section II.4.10.1)                                               
      5) Is a description of changes in generally                             
      accepted accounting principles, and an                                  
      explanation of concepts, such as Fund Balance                           
      with Treasury and Earmarked Funds unique to                             
      Federal financial statements included in the                            
      disclosure of significant accounting policies?                          
      (OMB Circular No. A-136, p. 83, section                                 
      II.4.10.1)                                                              
      6) If the entity is a "parent" involved in an                           
      allocation transfer with a different federal                            
      entity, is there an explanation (no amount) in                          
      the significant accounting policies disclosure                          
      that there are amounts being reported on its                            
      net cost of operations, changes in net                                  
      position, and budgetary resources where                                 
      activity is being performed by the receiving                            
      federal entity? (OMB Circular No. A-136, p.                             
      83, section II.4.10.1)                                                  
      7) If the entity is a "child" involved in an                            
      allocation transfer with a different federal                            
      entity, is there an explanation (no amount)                             
      that it performed activity being reported in                            
      the financial statements of the "parent"? (OMB                          
      Circular No. A-136, p. 84, section II.4.10.1)                           
      8) Regardless of whether the entity is the                              
      "parent" or the "child" in an allocation                                
      transfer, are the names of the federal                                  
      departments involved in the allocation                                  
      transfers disclosed? (OMB Circular No. A-136,                           
      p. 84, section II.4.10.1)                                               
      9) Are significant changes in the composition                           
      of the entity or manner in which the entity                             
      aggregates information for financial reporting                          
      purposes disclosed? (OMB Circular No. A-136,                            
      p. 84, section II.4.10.1)                                               
      10) Changes in the composition of the                                   
      reporting entity or manner in which the                                 
      reporting entity aggregates information for                             
      financial reporting purposes, in effect,                                
      result in a new reporting entity. Therefore,                            
      has the entity restated financial statements                            
      for prior periods presented to correspond to                            
      the changes? (OMB Circular No. A-136, p. 84,                            
      section II.4.10.1)                                                      

        Non-entity Assets (Item 11)         Yes, No, or N/A     Explanation   
Entity assets are assets that the reporting entity has authority to use in
its operations. The authority to use funds in an entity's operations means
that entity management has the authority to decide how funds are used, or
management is legally obligated to use funds to meet entity obligations,
e.g., repay loans from Treasury. Non-entity assets are assets held by an
entity but are not available to the entity. An example of non-entity
assets is tax receivables, which the Internal Revenue Service collects for
the U.S. Government but has no authority to spend. (OMB Circular No.
A-136, p. 36, section II.4.3.3)        
      11) Are the amounts and types of                                        
      non-entity assets disclosed in a                                        
      note to the financial statements?                                       
      (OMB Circular No. A-136, p. 34,                                         
      section II.4.3.1; p. 36, section                                        
      II.4.3.3; p. 85, section II.4.10.2)                                     

            Fund Balance with Treasury           Yes, No, or                  
                                                     N/A        Explanation   
                 (Items 12 - 21)                                              
A federal entity's Fund Balance with Treasury (FBWT) is the aggregate
amount of funds in the entity's accounts with Treasury for which the
entity is authorized to make expenditures and pay liabilities. FBWT
includes clearing account balances and the dollar equivalent of foreign
currency account balances. From the reporting entity's perspective, FBWT
is an (intragovernmental) asset (although it is an intragovernmental
liability to Treasury.) From the perspective of the federal government as
a whole, FBWT is neither an asset nor a liability and is eliminated in the
federal consolidated financial statements. FBWT represents a commitment to
make resources available to federal departments, agencies, programs, and
other entities. (SFFAS 1, par. 31 & 32 with parenthesis provided for
clarification.)                              
      12) Is the FBWT reported as an                                          
      intragovernmental asset? (SFFAS 1, par.                                 
      31; OMB Circular No. A-136, p. 35,                                      
      section II.4.3.2)                                                       
      13) Are amounts disclosed as fund                                       
      balances in deposit, suspense, and                                      
      clearing accounts that are not available                                
      to finance entity activities reported as                                
      nonentity assets? (OMB Circular No.                                     
      A-136, p. 36, section II.4.3.3)                                         
      14) Does the entity distinguish funds                                   
      within FBWT as the obligated balance not                                
      yet disbursed^39 and the unobligated                                    
      balance^40 in a note to the financial                                   
      statements? (SFFAS 1, par. 37; OMB                                      
      Circular No. A-136, p. 85, section                                      
      II.4.10.3)                                                              
      15) Are fund balances that agencies are                                 
      authorized to use disclosed by fund type                                
      (e.g., trust funds, revolving funds,                                    
      appropriated funds, other fund types)?                                  
      (OMB Circular No. A-136, p. 85, section                                 
      II.4.10.3, item A)                                                      
      16) Are restrictions on unobligated                                     
      balances related to future use disclosed?                               
      (SFFAS 1, par. 38; OMB Circular No.                                     
      A-136, p. 85, section II.4.10.3, item B)                                
      17) Does the entity disclose any                                        
                                                                              
              a) differences and the causes of                                
              such differences between FBWT in                                
              its general ledger accounts and                                 
              the balance in its Treasury's                                   
              accounts,^41 and                                                
              b) other information necessary                                  
              for understanding the nature of                                 
              fund balances?                                                  
                                                                              
      (SFFAS 1, par. 39; OMB Circular No.                                     
      A-136, p. 86, section II.4.10.3, item C)                                
      18) Does the entity disclose information                                
      on unused funds in expired appropriations                               
      that are returned to Treasury at the end                                
      of a fiscal year? (SFFAS 1, par. 39)                                    
      19) Are balances in deposit accounts,                                   
      such as collections pending litigation,                                 
      funds awaiting determination of proper                                  
      accounting disposition, or funds being                                  
      held by the entity in the capacity of a                                 
      banker or agent for others, disclosed                                   
      under "other fund types?" (OMB Circular                                 
      No. A-136, p. 85, section II.4.10.3, item                               
      A)                                                                      
      20) If any of the balances under "other                                 
      fund types" are material, are they listed                               
      separately? (OMB Circular No. A-136, p.                                 
      85, section II.4.10.3, item A)                                          
      21) Is other information necessary for                                  
      understanding Fund Balances with Treasury                               
      disclosed? (OMB Circular No. A-136, p.86,                               
      section II.4.10.3, item C)                                              

^39 The obligated balance not yet disbursed is the amount of funds against
which budgetary obligations have been incurred, but disbursements have not
been made.

^40 The unobligated balance is the amount of funds available to the entity
against which no claims have been recorded. (SFFAS 1, par. 38)

^41 The entity should reconcile differences and correct errors when
preparing financial reports. Although both SFFAS 1 and OMB Circular No.
A-136 state "any differences", for audit purposes materiality would apply.
FASAB standards generally state that they need not be applied to
immaterial items; however, the determination of immateriality requires
considerable judgment based upon specific facts and circumstances.

            Cash and Other Monetary Assets           Yes, No, or              
                                                         N/A      Explanation 
                    (Items 22 - 26)                                           
Cash (including imprest funds) consists of: coins, paper currency, readily
negotiable instruments (such as checks, money orders, and bank drafts),
demand deposits, and foreign currencies stated in U.S. dollars at the
Treasury exchange rate on the financial statement date.
                                                     
Other monetary assets consist of other items such as gold, special drawing
rights, and U.S. reserves in the International Monetary Fund (IMF). (SFFAS
1, par. 27; OMB Circular No. A-136, p. 37, section II.4.3.3)
      22) Are the components of cash and other                                
      monetary assets disclosed and described in a                            
      note to the financial statements? (OMB                                  
      Circular No. A-136, p. 37, section II.4.3.3 &                           
      p. 86, section II.4.10.4)                                               
Entity cash is the amount of cash that the reporting entity holds and is
authorized by law to spend. Nonentity cash is the cash that a federal
entity collects and holds on behalf of the U.S. government or other
entities. In some instances the entity deposits cash in its accounts in a
fiduciary capacity for the U.S. Treasury or other entities. (SFFAS 1, par.
28 & 29)                                          
      23) Is nonentity cash disclosed in the notes                            
      to the financial statements, separately from                            
      entity cash? (SFFAS 1, par. 29; OMB Circular                            
      No. A-136, p. 36, section II.4.3.3)                                     
      24) If cash is restricted,^42 is the nature                             
      and reason disclosed? (SFFAS 1, par. 30; OMB                            
      Circular No. A-136, p. 86, section II.4.10.4)                           
      25) Does the entity disclose restrictions on                            
      the use or conversion of cash denominated in                            
      foreign currencies and the significant effects                          
      of changes in the exchange rate on the                                  
      entity's financial position that occur after                            
      the end of the reporting period but before the                          
      issuance of financial statements? (OMB                                  
      Circular No. A-136, p. 87, section II.4.10.4)                           
      26) Is other information on cash and other                              
      monetary assets disclosed, as appropriate,                              
      such as the valuation rate of gold? (OMB                                
      Circular No. A-136, p. 87, section II.4.10.4)                           

^42 Nonentity cash is always restricted. Other examples of restricted cash
includes cash held in escrow to pay property taxes and insurance related
to property associated with defaulted loans, seized cash (recognized as an
asset per SFFAS No. 3), bid deposits held in a commercial bank, and cash
held in earmarked funds.

          Investments (Items 27- 35)          Yes, No, or N/A    Explanation  
Investments in federal (i.e., Treasury) securities include (1)
nonmarketable par value Treasury securities, (2) market-based Treasury
securities expected to be held to maturity, (3) marketable Treasury
securities expected to be held to maturity, and (4) securities issued by
other federal entities. Nonfederal securities include those issued by
state and local governments, private corporations, and
government-sponsored enterprises. (SFFAS 1, par. 62; OMB Circular No.
A-136, p. 37, section II.4.3.3)           
      27) Are investments in federal                                          
      securities reported separately from                                     
      investments in nonfederal securities?                                   
      (SFFAS 1, par. 67; OMB Circular No.                                     
      A-136, p. 37, section II.4.3.3.)                                        
      28) Are investments in securities                                       
      reported at their acquisition cost or                                   
      amortized acquisition cost (less an                                     
      allowance for losses, if any)? (SFFAS                                   
      1, par. 68 & 69; OMB Circular No.                                       
      A-136, p. 37, section II.4.3.3)                                         
      29) Subsequent to acquisition, are                                      
      investments in securities reported at                                   
      their acquisition cost adjusted for                                     
      amortized premium or discount? (SFFAS                                   
      1, par. 70-71; OMB Circular No. A-136,                                  
      p. 89, section II.4.10.5)                                               
      30) Is the market value of                                              
      market-based and marketable securities                                  
      disclosed? (SFFAS 1, par. 72; OMB                                       
      Circular No. A-136, pp. 87 & 88,                                        
      section II.4.10.5)                                                      
      31) Are investments grouped by type of                                  
      security, such as marketable or                                         
      market-based Treasury securities?                                       
      (SFFAS 1, par. 72; OMB Circular No.                                     
      A-136, p. 89, section II.4.10.5)                                        
      32) Are the components of investments                                   
      (e.g., cost, amortization, other                                        
      adjustments) disclosed in the                                           
      footnotes to the financial statements?                                  
      (OMB Circular No. A-136, p. 37,                                         
      section II.4.3.3 & pp. 87 and 88,                                       
      section II.4.10.5)                                                      
      33) Are securities that have been                                       
      reclassified as securities available                                    
      for sale or early redemption                                            
      disclosed? (SFFAS 1, par. 73; OMB                                       
      Circular No. A-136, p. 89, section                                      
      II.4.10.5, item C)                                                      
      34) Does the entity disclose any other                                  
      information relative to understanding                                   
      the nature of reported investments,                                     
      such as permanent impairments? (OMB                                     
      Circular No. A-136, p. 89, section                                      
      II.4.10.5, item C)                                                      
      35) If the entity has investments in                                    
      Treasury Securities for earmarked                                       
      funds are issues disclosed in a                                         
      footnote to the financial statements?                                   
      (SFFAS 27, par. 27 & 28; OMB Circular                                   
      No. A-136, p. 89, section II.4.10.5,                                    
      item B)                                                                 

            Receivables (Items 36 - 41)            Yes, No, or   Explanation  
                                                       N/A                    
Receivables are amounts that the entity claims for payment from others.
Receivables can result from such activities as the sales of goods or
services, the non-payment of taxes, the making of loans or loans assumed
from defaults on previously made loan guarantees, the earning of interest,
the advance or prepayment of monies, etc. (SFFAC 2, par. 84)
                    Accounts Receivable, Net (Items 36 - 38)
      36) Are receivables from federal entities                               
      reported as intragovernmental receivables,                              
      and reported separately from receivables                                
      from nonfederal entities? (SFFAS 1, par.                                
      42; OMB Circular No. A-136, p. 36, section                              
      II.4.3.3)                                                               
Entity receivables are amounts due from other federal or nonfederal
entities that the federal entity is authorized by law to include in its
obligational authority or to offset its expenditures and liabilities upon
collection. Nonentity receivables are amounts that the entity is to
collect on behalf of the federal government or other entities, and the
entity is not authorized to spend. (SFFAS 1, par. 43)
      37) Are receivables not available to the                                
      entity disclosed in a note to the financial                             
      statements as non-entity assets, separate                               
      from receivables available to the entity?                               
      (SFFAS 1, par. 43; OMB Circular No. A-136,                              
      p. 36, section II.4.3.3 & p. 85, section                                
      II.4.10.2)                                                              
      38) Does the reporting entity disclose                                  
                                                                              
              a) major categories of accounts                                 
              receivable by amount (gross and                                 
              net) and type,                                                  
              b) methodology used to estimate the                             
              allowance for uncollectible                                     
              amounts, and                                                    
              c) total dollar amount of the                                   
              allowance for uncollectible                                     
              accounts?                                                       
                                                                              
      (SFFAS 1, par. 52; OMB Circular No. A-136,                              
      p. 90, section II.4.10.6)                                               

Receivables (Items 36 - 41) Yes, No, or N/A Explanation 

                        Taxes Receivable, Net (Item 39)                     
      39) Does the reporting entity disclose                                  
                                                                              
              a) gross taxes receivable,                                      
              b) allowance for uncollectible taxes receivable,                
              c) net taxes receivable, and                                    
              d) methodology used to estimate the allowance for               
              uncollectible taxes?                                            
                                                                              
      (SFFAS 1, par. 52; OMB Circular No. A-136, p. 90, section II.4.10.7)    
                      Interest Receivable (Items 40 - 41)                   
      40) Is interest accrued on uncollectible accounts receivable            
      disclosed until (1) the interest payment requirement has been waived    
      by the federal government or (2) the related debt has been written      
      off? (SFFAS 1, par. 55)                                                 
      41) Is interest receivable from federal entities accounted for and      
      reported separately from interest receivable from the public? (SFFAS    
      1, par. 56)                                                             

Direct Loans and Loan Guarantees (Items 42 - 73)   Yes, No,   Explanation  
                                                       or N/A                 
The Federal Credit Reform Act of 1990, as amended, divides direct loans
and loan guarantees (for non-federal borrowers) into two groups: pre-1992
and post-1991. Pre-1992 refers to direct loan obligations or loan
guarantee commitments made prior to fiscal year 1992; post-1991 refers to
direct loan obligations or loan guarantee commitments made after fiscal
year 1991.^43 (OMB Circular No. A-136, p. 98, section II.4.10.8, item A)
      42) Is interest receivable related to pre-1992                          
      and post-1991 direct loans and acquired                                 
      defaulted guaranteed loans reported as a                                
      component of loans receivables and related                              
      foreclosed property? (OMB Circular No. A-136,                           
      p. 38, section II.4.3.3)                                                
      43) Are special fund receipt accounts for                               
      negative subsidies and downward subsidy                                 
      reestimates included in the credit reporting                            
      entity's financial statements? (OMB Circular                            
      No. A-136, p. 38, section II.4.3.3)                                     
      44) Are any assets in these special fund                                
      receipt accounts shown as non-entity assets                             
      that are offset by intragovernmental                                    
      liabilities covered by budgetary resources?                             
      (OMB Circular No. A-136, p. 38, section                                 
      II.4.3.3)                                                               
      45) Did the entity disclose that direct loan                            
      obligations and loan guarantee commitments                              
      made after fiscal year 1991, and the resulting                          
      direct loans or loan guarantees, are governed                           
      by the Federal Credit Reform Act of 1990, as                            
      amended? (OMB Circular No. A-136, p. 98,                                
      section II.4.10.8, instruction A)                                       
      46) Do the notes disclose other relevant and                            
      appropriate information related to direct                               
      loans and loan guarantees including                                     
                                                                              
              a) a description of the                                         
              characteristics of the loan programs,                           
              b) commitments to guarantee,                                    
              c) management's method for accruing                             
              interest revenue and recording                                  
              interest receivable, and                                        
              d) management's policy for accruing                             
              interest on nonperforming loans?                                
                                                                              
      (OMB Circular No. A-136, p. 99, section                                 
      II.4.10.8)                                                              
      47) Is the value of the assets related to                               
      defaults^44 included in the reported credit                             
      program receivables for                                                 
                                                                              
              a) pre-1992 direct loans,                                       
              b) post-1991 direct loans,                                      
              c) pre-1992 guarantee loans, and                                
              d) post-1991 guaranteed loans?                                  
                                                                              
      (OMB Circular No. A-136, p. 102, section                                
      II.4.10.8, instruction I)                                               
      48) Does the entity disclose whether pre-1992                           
      direct loans and loan guarantees are reported                           
      on a present value basis or are reported under                          
      the allowance method? (OMB Circular No. A-136,                          
      p. 98, section II.4.10.8, instruction A)                                
      49) Are components of assets related to                                 
      pre-1992 direct loans receivable disclosed by                           
      loan program for                                                        
                                                                              
              a) loans receivable, gross,                                     
              b) interest receivable,                                         
              c) estimated net realizable value of                            
              related foreclosed property,                                    
              d) present value allowance^45 (if the                           
              present value method is used),                                  
              e) allowance for loan losses^46 (if                             
              the allowance-for-loss method is                                
              used), and                                                      
              f) value of assets related to direct                            
              loans receivable, net?                                          
                                                                              
      (OMB Circular No. A-136, p. 100, section                                
      II.4.10.8, instruction B)                                               
      50) Are components of assets related to                                 
      post-1991 direct loans receivable disclosed by                          
      loan program for                                                        
                                                                              
              a) loans receivable, gross,                                     
              b) interest receivable,                                         
              c) estimated net realizable value of                            
              foreclosed property,                                            
              d) allowance for subsidy costs                                  
              (present value), and                                            
              e) value of assets related to direct                            
              loans receivable, net?                                          
                                                                              
      (OMB Circular No. A-136, p. 100, section                                
      II.4.10.8, instruction C)                                               
      51) Are components of defaulted guaranteed                              
      loans receivable from pre-1992 guarantees                               
      disclosed by loan program for                                           
                                                                              
              a) defaulted guaranteed loans                                   
              receivable, gross,                                              
              b) interest receivable,                                         
              c) the estimated net realizable value                           
              of related foreclosed property,                                 
              d) the present value allowance (if the                          
              present value method is used),                                  
              e) the allowance for loan losses (if                            
              the allowance for loss method is                                
              used), and                                                      
              f) value of assets related to                                   
              defaulted guaranteed loans receivable,                          
              net?                                                            
                                                                              
      (OMB Circular No. A-136, p. 102, section                                
      II.4.10.8, instruction H)                                               
      52) Are components of defaulted guaranteed                              
      loans receivable from post-1991 guarantees                              
      disclosed by loan program for                                           
                                                                              
              a) defaulted guaranteed loans                                   
              receivable, gross,                                              
              b) interest receivable,                                         
              c) estimated net realizable value of                            
              foreclosed property,                                            
              d) allowance for subsidy costs                                  
              (present value), and                                            
              e) value of assets related to                                   
              defaulted guaranteed loans receivable,                          
              net?                                                            
                                                                              
      (OMB Circular No. A-136, p. 102, section                                
      II.4.10.8, instruction I)                                               
Foreclosed property is any asset, which is assumed to be held for sale,
that is either received in satisfaction of a loan receivable or as a
result of payment of a claim under a guaranteed or insured loan (excluding
commodities acquired under price support programs). Pre-1992 foreclosed
property refers to property associated with direct loans obligated or loan
guarantees committed before October 1, 1991. Post-1991 foreclosed property
refers to property associated with direct loans obligated or loan
guarantees committed after September 30, 1991. (SFFAS 3, par. 79 & 80)
      53) When the government acquires foreclosed                             
      assets in full or partial settlement of a                               
      direct or guaranteed loan (pre-1992 and                                 
      post-1991), is information disclosed for                                
                                                                              
              a) valuation basis for foreclosed                               
              property,                                                       
              b) changes from prior-year's                                    
              accounting methods,                                             
              c) restrictions on the use/disposal of                          
              property,                                                       
              d) balances by categories (i.e.,                                
              pre-1992 and post-1991 foreclosed                               
              property),                                                      
              e) number of properties held and                                
              average holding period by type or                               
              category, and                                                   
              f) number of properties for which                               
              foreclosure proceedings are in process                          
              at the end of the period?                                       
                                                                              
      (SFFAS 3, par. 91; OMB Circular No. A-136, p.                           
      99 & 100, section II.4.10.8, instruction A)                             
      54) Is the total amount of new direct loans                             
      and guaranteed loans disbursed for the current                          
      and prior year reported by program? (SFFAS 2,                           
      par. 11 (A); OMB Circular No. A-136, p. 100 &                           
      102, section II.4.10.8, instructions D & J)                             
      55) Is a reconciliation between beginning and                           
      ending balances presented in a footnote for                             
                                                                              
              a) the subsidy cost allowances for                              
              outstanding direct loans, and                                   
              b) the liability for outstanding loan                           
              guarantees?                                                     
                                                                              
      (SFFAS 18, par. 10; OMB Circular No. A-136,                             
      pp. 101 & 103, section II.4.10.8, instructions                          
      G & N)                                                                  
      56) Does the reconciliation of beginning and                            
      ending subsidy cost allowances and loan                                 
      guarantee liability balances include changes                            
      for                                                                     
                                                                              
              a) interest subsidy costs, default                              
              costs, fees and other collections, and                          
              other subsidy costs,                                            
              b) interest rate and technical/default                          
              reestimates, and                                                
              c) other adjustments?                                           
                                                                              
      (SFFAS 18, par. 10)                                                     
      57) Does each loan guarantee program disclose                           
                                                                              
              a) face value of outstanding principal                          
              of guaranteed loans disbursed by a                              
              third party, and                                                
              b) amount of outstanding principal                              
              that is guaranteed?                                             
                                                                              
      (SFFAS 2, para. 23; OMB Circular No. A-136, p.                          
      102, section II.4.10.8, instruction J)                                  
      58) Does the liability for loan guarantees                              
      disclose                                                                
                                                                              
              a) present value of liabilities for                             
              losses on pre-1992 loan guarantees (if                          
              the present value method is used),                              
              b) estimated future default claims on                           
              pre-1992 loan guarantees (if the                                
              estimated future default claims method                          
              is used),                                                       
              c) present value of the estimated net                           
              cash flows (outflows less inflows) to                           
              be paid as a result of post-1991 loan                           
              guarantees, and                                                 
              d) total liabilities for loan                                   
              guarantees?                                                     
                                                                              
      (OMB Circular No. A-136, p. 102, section                                
      II.4.10.8, instruction K)                                               
      59) When the total loan guarantee liability                             
      for all of the credit programs is negative, is                          
      it reported as an asset? (OMB Circular No.                              
      A-136, p. 42, section II.4.3.4)                                         
      60) If the loan guarantee liability is the                              
      result of both positive and negative amounts                            
      of the various components, is the total shown                           
      as a liability?                                                         
                                                                              
      Are the negative components (of the loan                                
      guarantee liability) disclosed?                                         
                                                                              
      (OMB Circular No. A-136, p. 42, section                                 
      II.4.3.4)                                                               
For post-1991direct loans and guarantees, a subsidy expense is recognized
in the year they are disbursed. For pre-1992 direct loans and guarantees,
disclosure of a loss and liability is not recognized until it is more
likely than not that a loan (either direct or guaranteed) will go into
default. (SFFAS 2, par. 24 & 39)                  
      61) Does the reporting entity disclose,                                 
      discuss, and explain events and changes in                              
      economic conditions, other risk factors,                                
      legislation, credit policies,^47 and subsidy                            
      estimation methodologies and assumptions that                           
      have had a significant and measurable effect                            
      on subsidy rates, subsidy expenses, and                                 
      subsidy reestimates? (SFFAS 18, par. 11 (C) &                           
      OMB Circular No. A-136, p. 99, section                                  
      II.4.10.8, instruction A)                                               
      62) Does the disclosure and discussion include                          
      events and changes that have occurred and are                           
      more likely than not to have a significant                              
      impact, but whose effects are not measurable                            
      at the reporting date? (SFFAS 18, par. 11 (C)                           
      & OMB Circular No. A-136, p. 99, section                                
      II.4.10.8, instruction A)                                               
      63) Are components of subsidy expense for new                           
      direct loans disbursed disclosed by loan                                
      program for                                                             
                                                                              
              a) interest rate differential costs,                            
              b) default costs (net of recoveries),                           
              c) fees and other collections,                                  
              d) other costs, and                                             
              e) total subsidy expense for new                                
              direct loans?                                                   
                                                                              
      (SFFAS 18, par. 11 (A); OMB Circular No.                                
      A-136, p. 100, section II.4.10.8, instruction                           
      E1)                                                                     
      64) Are components of subsidy expense related                           
      to direct loan modifications and reestimates                            
      disclosed for                                                           
                                                                              
              a) total subsidy expense for                                    
              modifications of direct loans                                   
              previously disbursed, and                                       
              b) total reestimates of the subsidy                             
              expense for direct loans, previously                            
              disbursed, by component (i.e.,                                  
              interest rate and technical/default)?                           
                                                                              
      (SFFAS 18, par. 11 (A); OMB Circular No.                                
      A-136, p. 101, section II.4.10.8, instruction                           
      E2)                                                                     
      65) Is the total subsidy expense for current                            
      and prior year's direct loans, modifications,                           
      and reestimates disclosed? (SFFAS 18, par. 11                           
      (A); OMB Circular No. A-136, p. 101, section                            
      II.4.10.8, instruction E3)                                              
      66) Are components of subsidy expense for new                           
      loan guarantees disclosed by loan program for                           
                                                                              
              a) interest supplement costs,                                   
              b) default costs (net of recoveries),                           
              c) fees and other collections,                                  
              d) other costs, and                                             
              e) total subsidy expense for new loan                           
              guarantees?                                                     
                                                                              
      (SFFAS 18, par. 11 (A); OMB Circular No.                                
      A-136, p. 103, section II.4.10.8, instruction                           
      L1)                                                                     
      67) Are components of subsidy expense related                           
      to loan guarantee modifications and                                     
      reestimates disclosed for                                               
                                                                              
              a) total subsidy expense for                                    
              modifications of loan guarantees on                             
              guaranteed loans previously disbursed                           
              by a third party, and                                           
              b) total reestimates of the subsidy                             
              expense for loan guarantees,                                    
              previously committed, by component                              
              (i.e., interest rate and                                        
              technical/default)?                                             
                                                                              
      (SFFAS 18, par. 11 (A); OMB Circular No.                                
      A-136, p. 103, section II.4.10.8, instruction                           
      L2)                                                                     
      68) Is the total subsidy expense for current                            
      and prior year's loan guarantees,                                       
      modifications, and reestimates disclosed?                               
      (SFFAS 18, par. 11 (A); OMB Circular No.                                
      A-136, p. 103, section II.4.10.8, instruction                           
      L3)                                                                     
      69) Does the reporting entity disclose, at the                          
      program level, the subsidy rates^48 for direct                          
      loans and loan guarantees in the current                                
      year's budget for the current year's cohorts                            
      for                                                                     
                                                                              
              a) total subsidy cost,                                          
              b) interest subsidy costs,                                      
              c) default costs (net of recoveries),                           
              d) fees and other collections, and                              
              e) other costs?                                                 
                                                                              
      (SFFAS 18, par. 11 (B); OMB Circular No.                                
      A-136, p. 101, section II.4.10.8, instructions                          
      F & M)                                                                  
      70) If the entity uses trend data in the notes                          
      to display significant fluctuations in subsidy                          
      rates, are these data accompanied by an                                 
      analysis that explains the underlying causes                            
      for the fluctuations? (SFFAS 18, par. 11 (B);                           
      OMB Circular No. A-136, p. 101, section                                 
      II.4.10.8, instructions F & M)                                          
A loan modification is a federal government action that directly or
indirectly alters the estimated subsidy cost and the present value of
outstanding direct loans or the liability of loan guarantees. A direct
modification changes the subsidy cost by altering the terms of existing
contracts or through the sale of direct loans. An indirect modification
changes the subsidy costs by altering the way loans and loan guarantees
are administered. A modification does not include subsidy cost
reestimates, routine administrative workouts of troubled loans, and other
actions permitted within existing contract terms. (SFFAS 2, par. 41-44)
      71) Are loan modifications by program                                   
      disclosed in the notes to the financial                                 
      statements for                                                          
                                                                              
              a) the nature of the modification of                            
              direct loans or loan guarantees,                                
              b) the discount rate used in                                    
              calculating the modification expense,                           
              and                                                             
              c) the basis for recognizing a gain or                          
              loss related to the modification?                               
                                                                              
      (SFFAS 2, par. 56 & OMB Circular No. A-136, p.                          
      99, section II.4.10.8, instruction A)                                   
      72) Is the expectation that proceeds from the                           
      sale of its loans will differ from the                                  
      reported face value of the loans or the value                           
      of their related assets disclosed? (OMB                                 
      Circular No. A-136, p. 99, section II.4.10.8,                           
      instruction A)                                                          
      73) Are administrative expenses for loans and                           
      loan guarantee programs broken out and                                  
      disclosed by program? (OMB Circular No. A-136,                          
      p. 104, section II.4.10.8, instruction O)                               

^43 Section 506 (a) of the Federal Credit Reform Act, as amended, exempts
the credit activities of certain agencies, such as the Federal Deposit
Insurance Corporation (FDIC) and the Tennessee Valley Authority (TVA).
These agencies can report in accordance with other requirements.

^44 That is, the sum of (1) defaulted guaranteed loans receivable gross,
(2) interest receivable, and (3) foreclosed property, less the allowance
for subsidy cost at present value.

^45 Under the present value method, the nominal amount of the direct loans
is reduced by an allowance equal to the difference between the nominal
amount and the present value of the expected net cash flows from the
loans. OMB Circular A-136, p. 98, section II.4.10.8, instruction A, 4th
par.)

^46 Under the allowance-for-loss method, the nominal amount of the direct
loans is reduced by an allowance for uncollectible amounts. (OMB Circular
A-136, p. 98, section II.4.10.8, Instruction A, 4th par.)

^47 Changes in legislation or credit policies include, for example,
changes in borrowers' eligibility, the levels of fees or interest rates
charged to borrowers, the maturity terms of loans, and the percentage of
private loans that are guaranteed.

^48 The subsidy rate is the dollar amount of the subsidy component as a
percentage of the direct loans or loan guarantees obligated in the cohort.

          Inventory and Related Property, Net         Yes, No,                
                                                       or N/A    Explanation  
                    (Items 74 - 89)                                           
               Inventory (primarily held for sale) (Items 74-76)
Inventory is tangible personal property that is (1) held for sale
including raw materials and work in process, (2) in process of production
for sale, or (3) to be consumed in the production of goods for sale or in
the provision of services for a fee. Inventory does not include other
assets held for sale such as (1) stockpile materials, (2) seized and
forfeited property, (3) foreclosed property, and (4) goods held under
price support and stabilization programs. (SFFAS 3, par. 1; OMB Circular
No. A-136, p.104, section II.4.10.9)              
      74) Are inventory stocks, which are maintained                          
      because they are not readily available in the                           
      market or because there is more than a remote                           
      chance that they will eventually be needed,                             
      classified as inventory held in reserve for                             
      future sale, and reported as either                                     
                                                                              
              a) included in the inventory line item                          
              on the face of the financial                                    
              statements with separate disclosure in                          
              the footnotes, or                                               
              b) shown as a separate line item on                             
              the face of the financial statements?                           
                                                                              
      (SFFAS 3, par. 27)                                                      
      75) Is inventory identified as excess,                                  
      obsolete, or unserviceable reported as either                           
                                                                              
              a) included in the inventory line item                          
              on the face of the financial                                    
              statements with separate disclosures                            
              in the footnotes, or                                            
              b) shown as a separate line item on                             
              the face of the financial statements?                           
                                                                              
      (SFFAS 3, par. 29; OMB Circular No. A-136, p.                           
      104, section II.4.10.9)                                                 
      76) Does entity disclosure of inventory                                 
      include                                                                 
                                                                              
              a) general composition,                                         
              b) basis for determining inventory                              
              values (including the valuation method                          
              and any cost flow assumptions),                                 
              c) changes from prior years'                                    
              accounting methods, if any,                                     
              d) balances for each of the following                           
              categories of inventory (unless                                 
              otherwise presented on the financial                            
              statements):                                                    
                                                                              
                      i) inventory held for current                           
                      sale                                                    
                      ii) inventory held in reserve                           
                      for future use                                          
                      iii) excess, obsolete, and                              
                      unserviceable inventory                                 
                      iv) inventory held for repair                           
                                                                              
              e) difference between the carrying                              
              amount of the inventory before                                  
              identification as excess, obsolete, or                          
              unserviceable, and its expected net                             
              realizable value,                                               
              f) restriction on the sale of                                   
              inventory,                                                      
              g) decision criteria for categorizing                           
              inventory, and                                                  
              h) changes in the criteria for                                  
              categorizing inventory?                                         
                                                                              
      (SFFAS 3, par. 18, 27-29, 31, 32 & 35; OMB                              
      Circular No. A-136, p. 104, section II.4.10.9)                          
                 Operating Materials and Supplies (Items 77-79)
Operating materials and supplies are tangible personal property to be
consumed in normal operations. Excluded are (1) goods that have been
acquired to construct real property or equipment for the entity's use (2)
stockpile materials, (3) goods held under price stabilization programs,
(4) foreclosed property, (5) seized and forfeited property, and (6)
inventory. (SFFAS 3, par. 36 & OMB Circular No. A-136, p. 38, section
II.4.3.3)                                         
      77) Are operating materials and supplies                                
      stocks, which are maintained because they are                           
      not readily available in the market or because                          
      there is more than a remote chance that they                            
      will eventually be needed (although not                                 
      necessarily in the normal course of                                     
      operations), classified as operating materials                          
      and supplies held in reserve for future use,                            
      and reported as either                                                  
                                                                              
              a) included in the operating materials                          
              and supplies line item on the face of                           
              the financial statements with separate                          
              disclosure in the footnotes, or                                 
              b) shown as a separate line item on                             
              the face of the financial statements?                           
                                                                              
      (SFFAS 3, par. 45)                                                      
      78) Are operating materials and supplies                                
      identified as excess, obsolete, or                                      
      unserviceable reported as either                                        
                                                                              
              a) included in the operating materials                          
              and supplies line item on the face of                           
              the financial statements with separate                          
              disclosure in the footnotes, or                                 
              b) shown as a separate line item on                             
              the face of the financial statements?                           
                                                                              
              (SFFAS 3, par. 47)                                              
      79) Does entity disclosure of operating                                 
      materials and supplies include                                          
                                                                              
              a) general composition,                                         
              b) basis for valuation (including                               
              valuation method and any cost flow                              
              assumptions),                                                   
              c) change from prior years' accounting                          
              methods,                                                        
              d) balances in each operating material                          
              and supply category,^49                                         
              e) difference between the carrying                              
              amount of the operating materials and                           
              supplies before identification as                               
              excess, obsolete, or unserviceable and                          
              estimated net realizable value,                                 
              f) restrictions on the use of                                   
              materials and supplies, if any,                                 
              g) decision criteria for identifying                            
              each category to which material and                             
              supplies are assigned, and                                      
              h) changes in the criteria for                                  
              identifying the category to which the                           
              operating materials and supplies are                            
              assigned?                                                       
                                                                              
      (SFFAS 3, par. 50; OMB Circular No. A-136, p.                           
      105, section II.4.10.9)                                                 
                       Stockpile Materials (Items 80-81)
Stockpile materials are strategic and critical materials held due to
statutory requirements for use in national defense, conservation, or
national emergencies. Not included under this category are (1) items held
for sale or use in normal operations, (2) items held for use in the event
of an agency's operating emergency or contingency, and (3) materials
acquired to support market prices. (SFFAS 3, par. 51 & OMB Circular No.
A-136, p. 38, section II.4.3.3)                   
      80) Is any difference between the carrying                              
      amount of the stockpile materials held for                              
      sale and their estimated selling price                                  
      disclosed? (SFFAS 3, par. 55)                                           
      81) Does entity disclosure of stockpile                                 
      materials include                                                       
                                                                              
              a) general composition,                                         
              b) basis for valuing stockpile                                  
              materials, including valuation method                           
              and any cost flow assumptions,                                  
              c) changes from prior year's                                    
              accounting methods,                                             
              d) restrictions on the use of the                               
              material,                                                       
              e) balances in each category of                                 
              stockpile material (i.e., stockpile                             
              materials and stockpile materials held                          
              for sale),                                                      
              f) decision criteria for categorizing                           
              stockpile material as held for sale,                            
              and                                                             
              g) changes in criteria for                                      
              categorizing stockpile materials as                             
              held for sale?                                                  
                                                                              
      (SFFAS 3, par. 56; OMB Circular No. A-136, p.                           
      105, section, II.4.10.9)                                                
                         Seized Property (Items 82-85)
Seized property includes monetary instruments, real property, and tangible
personal property belonging to others in actual or constructive possession
of the custodial agency. This includes illegal drugs, contraband, and
counterfeit items seized by authorized law enforcement agencies (SFFAS 3,
par. 59; OMB Circular No. A-136, p. 38, section II.4.3.3)
                                                     
There may be as many as three government entities involved with seized
property: (1) the seizing agency, (2) the custodial agency, and (3)
another agency with a "central fund" set up for financial recordkeeping of
seizure activities. (SFFAS 3, par. 57)            
      82) Is seized property other than monetary                              
      instruments disclosed in a note to the                                  
      financial statements? (SFFAS 3, par. 62)                                
      83) Does entity disclosure of seized property                           
      by type in its custody include                                          
                                                                              
              a) explanation of what constitutes a                            
              seizure and a general description of                            
              the composition of seized property.                             
              b) valuation method(s).                                         
              c) changes from prior years'                                    
              accounting methods,                                             
              d) analysis of change in seized                                 
              property (including dollar value and                            
              number of seized properties) that are                           
                                                                              
                      i) on hand at the start of the                          
                      year,                                                   
                      ii) seized during the year,                             
                      iii) disposed of during the                             
                      year,                                                   
                      iv) on hand at the end of the                           
                      year, and                                               
                      v) known liens or other claims                          
                      against the property?                                   
                                                                              
              (SFFAS 3, par. 66; OMB Circular No.                             
              A-136, p. 39, section II.4.3.3 & p.                             
              106, section II.4.10.9)                                         
      84) Where material, does the entity also                                
      disclose the method of disposal of seized                               
      property? (SFFAS 3, par. 66; OMB Circular No.                           
      A-136, p. 106, section II.4.10.9)                                       
      85) Is a liability for seized monetary                                  
      instruments reported in "Other Liabilities" in                          
      an amount equal to the seized asset value?                              
      (OMB Circular No. A-136, p. 106, section                                
      II.4.10.9)                                                              
                        Forfeited Property (Items 86-87)
Forfeited property consists of (a) property (i.e., monetary instruments,
intangible property, real property, and tangible personal property)
acquired through forfeiture proceedings, (b) property acquired to satisfy
a tax liability, and (c) unclaimed and abandoned merchandise. (SFFAS 3,
par. 67 & 68 & OMB Circular No. A-136, p. 39, section II.4.3.3)
      86) For forfeited property that cannot be sold                          
      due to legal restrictions, but may be either                            
      donated or destroyed, does the entity disclose                          
      the composition, valuation, and disposition of                          
      the property? (SFFAS 3, par. 71 & 78)                                   
      87) Does entity disclosure of forfeited                                 
      property include                                                        
                                                                              
              a) composition of the property,                                 
              b) valuation method(s),                                         
              c) restrictions on the use or                                   
              disposition of forfeited property,                              
              d) changes from prior year's                                    
              accounting methods,                                             
              e) analysis of the changes in                                   
              forfeited property by dollar amount                             
              and number of forfeitures that                                  
              includes, forfeitures on hand at the                            
              beginning of the year ; additions;                              
              disposals and method of disposition;                            
              and forfeitures on hand at the end of                           
              the year, and                                                   
              f) if available, an estimate of the                             
              value of property or funds to be                                
              distributed to other federal, state,                            
              and local agencies in future reporting                          
              periods?                                                        
                                                                              
      (SFFAS 3, par. 78; OMB Circular No. A-136, p.                           
      106, section II.4.10.9)                                                 
    Goods Held Under Price Support and Stabilization Programs (Items 88-89)
Goods acquired under price support and stabilization programs (i.e.,
commodities) are items of commerce or trade (usually farm commodities)
having an exchange value. They are acquired, held, sold, or otherwise
disposed of to satisfy or help satisfy economic goals. Producers of the
goods (1) are either given nonrecourse loans under which they can, at
their option, repay the loan with interest or surrender their commodity
pledged as collateral for the loan or (2) may enter into purchase
agreements that allow the producer the option to sell commodities to the
government (the Commodity Credit Corporation) at the price support rate.
(SFFAS 3, par. 92, 93, & 94)                      
      88) If a loss contingency arising from a                                
      purchase agreement is not recognized because                            
      it is less than probable or is not reasonably                           
      measurable, is the loss contingency disclosed                           
      if it is at least "reasonably possible that a                           
      loss may occur?" (SFFAS 3, par. 98)                                     
      89) Does entity disclosure of goods held under                          
      price support and stabilization programs                                
      include                                                                 
                                                                              
              a) basis for valuing commodities                                
              including valuation method and cost                             
              flow assumptions (e.g., FIFO, weighted                          
              average, moving average, specific                               
              identification),                                                
              b) changes from prior years'                                    
              accounting methods,                                             
              c) restrictions on the use, disposal,                           
              or sale of commodities, and                                     
              d) analysis of the changes in dollar                            
              amount and volume of commodities,                               
              including those:                                                
                                                                              
                      i) on hand at the beginning of                          
                      the year,                                               
                      ii) acquired during the year,                           
                      iii) disposed of during the                             
                      year by method of disposition,                          
                      iv) on hand at the end of the                           
                      year,                                                   
                      v) on hand at year's end and                            
                      estimated to be donated or                              
                      transferred during the coming                           
                      period,                                                 
                      vi) received as a result of                             
                      surrender of collateral                                 
                      related to nonrecourse loans                            
                      outstanding, and                                        
                      vii) dollar value and volume                            
                      of purchase agreement                                   
                      commitments?                                            
                                                                              
              (SFFAS 3, par. 108 & 109; OMB Circular                          
              No. A-136, p. 106-107, section                                  
              II.4.10.9)                                                      

^49 Major categories of operating materials and supplies include (1) items
held for use; (2) items held in reserve for future uses; and (3) excess,
obsolete, and unserviceable items.

General Property, Plant, & Equipment, Net (Items Yes, No, or  Explanation  
                       90 - 94)                         N/A                   
General property, plant, and equipment (PP&E) consists of tangible assets
that (1) have an estimated useful life of 2 or more years, (2) are not
intended for sale in the ordinary course of business, and (3) are intended
to be used or available for use by the entity. (SFFAS 6, par. 17) General
property, plant, and equipment (PP&E) are any property, plant, and
equipment used in providing goods or services. (SFFAS 6, par. 23)
      90) Does entity disclosure of its general                               
      PP&E include                                                            
                                                                              
              a) the cost, associated accumulated                             
              depreciation, and book value by major                           
              class (e.g., building and structures,                           
              fixtures, equipment),                                           
              b) the estimated useful lives for                               
              each major class,                                               
              c) the method(s) of depreciation for                            
              each major class,                                               
              d) capitalization threshold(s)                                  
              including any changes in                                        
              thresholds(s) during the period, and                            
              e) restrictions on the use or                                   
              convertibility of general PP&E?                                 
                                                                              
      (SFFAS 6, par. 45; OMB Circular No. A-136. p.                           
      107, section II.4.10.10)                                                
      91) To record existing general PP&E, is the                             
      difference in amounts added to asset and                                
      contra-accounts credited (or charged) to the                            
      net position of the entity, with the amount                             
      of the adjustment disclosed as a "prior                                 
      period adjustment" in the Statement of                                  
      Changes in Net Position? (SFFAS 6, par. 43)                             
      92) To record existing general PP&E                                     
      previously identified as national defense                               
      PP&E, is the difference in amounts added to                             
      asset and contra accounts disclosed as a                                
      "change in accounting principle" with an                                
      adjustment to the beginning balance of                                  
      cumulative results of operations in the                                 
      statement of changes in net position? (SFFAS                            
      23, par. 10 & 16)                                                       
      93) Does the entity include footnote                                    
      disclosure explaining that "physical                                    
      quantity" information for the multiuse                                  
      heritage assets is included in the                                      
      Stewardship PP&E note? (OMB Circular No.                                
      A-136, p. 40, section II.4.3.3)                                         
Software includes the application and operating system programs,
procedures, rules, and any associated documentation pertaining to the
operation of a computer system or program. "Internal use software"
includes software that is purchased from commercial vendors "off the
shelf," internally developed, or contractor-developed solely to meet the
entity's internal or operational needs. (SFFAS 10, par. 8)
      94) Does entity disclosure of capitalized                               
      software include                                                        
                                                                              
              a) the cost, associated amortization,                           
              and book value,                                                 
              b) the estimated useful life for each                           
              major class of software, and                                    
              c) the method(s) of amortization?                               
                                                                              
      (SFFAS 10, par. 35; SFFAS 6, par. 45)                                   

      Stewardship PP&E (Items 95 - 100)       Yes, No, or N/A    Explanation
Stewardship PP&E includes heritage assets and stewardship land. PP&E are
classified as heritage assets if they have (1) historical or natural
significance; (2) cultural, educational, or artistic importance; or (3)
significant architectural characteristic. Multiuse heritage assets are
heritage assets that are predominately used in general government
operations (e.g., buildings such as the main Treasury building, which is
used as an office building). (SFFAS 29, par. 15 & 18; OMB Circular A-136,
p. 40, section II.4.3.3)                 
                                            
Stewardship land is land and land rights owned by the federal government
but not acquired for or in connection with items of general PP&E. (SFFAS
29, par. 33; OMB Circular No. A-136, p. 40, section II.4.3.3 )
      95) Does entity disclosure of stewardship PP&E                          
      include                                                                 
                                                                              
              a) a statement explaining how they relate                       
              to the mission of the entity, and                               
              b) a description of the entity's                                
              stewardship policies?                                           
                                                                              
      (SFFAS 29, par. 25 and 40; OMB Circular No. A-136,                      
      pp. 108 & 109, section II.4.10.11)                                      
      96) Does the entity disclose that multi-use                             
      heritage assets are recognized and presented with                       
      general PP&E in the basic financial statements and                      
      that additional information for the multi-use                           
      heritage assets is included with the heritage                           
      assets information? (SFFAS 29, par. 27)                                 
Questions 97 & 98 are effective for reporting periods beginning after
September 30, 2007                       
      97) Does the entity present a concise description                       
      of each major category of heritage asset in a note                      
      to the financial statements? (SFFAS 29, par. 25 &                       
      40; OMB Circular No. A-136, p. 132, section                             
      II.4.12.2)                                                              
      98) Does the entity present physical unit                               
      information for stewardship PP&E at the end of the                      
      reporting period in a note to the financial                             
      statements? (SFFAS 29, par. 25 & 40; OMB Circular                       
      No. A-136, p. 132, section II.4.12.2)                                   
Questions 99 & 100 are effective for reporting periods beginning after
September 30, 2008                       
      99) Does the entity disclose the number of physical                     
      units acquired and withdrawn for stewardship PP&E                       
      by major category during the year in a note to the                      
      financial statements? (SFFAS 29, par. 25 & 40; OMB                      
      Circular No. A-136, p. 132, section II.4.12.2)                          
      100) Does the entity disclose in a note to the                          
      financial statements a description of the major                         
      methods of acquisition and withdrawal of                                
      stewardship PP&E during the reporting period                            
      including                                                               
                                                                              
              a) the number of physical units by major                        
              category,                                                       
              b) transfers between federal entities, and                      
              c) the number of physical units acquired                        
              through donation or devise?                                     
                                                                              
      (SFFAS 29, par. 25 & 40; OMB Circular No. A-136, p.                     
      132, section II.4.12.2)                                                 

            Other Assets (Items 101 - 104)           Yes, No, or  Explanation 
                                                         N/A                  
      101) Are assets that are not reported in a                              
      separate category on the face of the balance                            
      sheet included under the "other" assets                                 
      category? (OMB Circular No. A-136, p. 41,                               
      section II.4.3.3)                                                       
      102) Are other asset amounts listed and                                 
      described in a note to the financial                                    
      statements and broken out by major homogenous                           
      components and intragovernmental versus other                           
      (nonfederal) entity assets)? (OMB Circular No.                          
      A-136, p. 109, section II.4.10.12)                                      
Advances are cash outlays made by a federal entity to its employees,
contractors, grantees, or others to cover the recipient's anticipated
expenses or as advance payments for the costs of goods and services
acquired by an entity. (SFFAS 1, par. 57; OMB Circular A-136, p. 41,
section II.4.3.3)                                 
                                                     
Prepayments are payments made by a federal entity to cover certain
periodic expenses before those expenses are incurred (SFFAS 1, par. 58;
OMB Circular No. A-136, p. 41, section II.4.3.3)  
                                                     
Progress payments on work in progress are not included in advances and
prepayments (OMB Circular A-136, p. 41, section II.4.3.3)
      103) Are advances and prepayments shown as                              
      assets and disclosed in the notes to the                                
      financial statements? (SFFAS 1, par. 59; OMB                            
      Circular No. A-136, p. 41, section II.4.3.3)                            
      104) Are advances and prepayments that are                              
      made to federal entities reported separately                            
      from those made to nonfederal entities? (SFFAS                          
      1, par. 61; Circular No. A-136, p. 109,                                 
      section II.4.10.12)                                                     

      Liabilities Not Covered by Budgetary    Yes, No, or N/A   Explanation   
           Resources (Items 105-107)                                          
Liabilities of federal agencies are reported under two major categories:
(1) liabilities covered by budgetary resources,^50 and (2) liabilities not
covered by budgetary resources.^51 Within each of these two categories,
liabilities are classified as either (1) intragovernmental liabilities,
which are amounts owed to other federal entities, or (2) governmental
liabilities, which are amounts owed to nonfederal entities by the federal
government or an entity within the federal government. (SFFAS 1, par. 18-
21; SFFAS 5, footnote 1 in summary; OMB Circular No. A-136, pp. 41-42,
section II.4.3.4)                          
      105) Are the amounts and types of                                       
      liabilities not covered by budgetary                                    
      resources separately disclosed?                                         
      (SFFAS1, par. 80 & 86; OMB Circular No.                                 
      A-136, pp. 42 & 110, sections II.4.3.4                                  
      & II4.10.13)                                                            
      106) Are amounts and types of                                           
      intragovernmental liabilities not                                       
      covered by budgetary resources                                          
      separately disclosed? (OMB Circular No.                                 
      A-136, p. 110, section II.4.10.13)                                      
      107) Is other information needed to                                     
      understand the nature of liabilities                                    
      not covered by budgetary resources                                      
      provided? (OMB Circular No. A-136, p.                                   
      110, section II.4.10.13)                                                

^50 Liabilities covered by budgetary resources are liabilities covered by
realized budgetary resources as of the balance sheet date. Budgetary
resources include (1) new budget authority, (2) unobligated balances of
budgetary resources at the beginning of the year or net transfers of prior
year balances during the year, (3) spending authority from offsetting
collections (credited to an appropriation or fund account), (4) recoveries
of unexpired budget authority through downward adjustments of prior year
obligations, and (5) permanent indefinite appropriations or borrowing
authority, which have been enacted and signed into law as of the balance
sheet date, provided that the resources may be apportioned by OMB without
further action by the Congress and without a contingency having to be met.

^51 Liabilities not covered by budgetary resources are liabilities for
which congressional action is needed before budgetary resources can be
provided.

Debt (Items 108 - 112)                           Yes, No, or Explanation   
                                                    N/A                       
Debts are amounts borrowed from the Treasury, the Federal Financing Bank,
other federal agencies, or the public under general or special financing
authority, such as Treasury bills, notes, bonds, and Federal Housing
Administration (FHA) debentures. The components of debt are disclosed in
the notes to the financial statements. (SFFAS 5, par. 47; OMB Circular No.
A-136, p. 42, section II.4.3.4)                  
      108) Is all debt owed to Treasury, the                                  
      Federal Financing Bank, or other federal                                
      agencies reported under intragovernmental                               
      liabilities on the balance sheet and                                    
      disclosed by category? (OMB Circular No.                                
      A-136, p. 112, section II.4.10.14)                                      
      109) Is all debt owed to the public reported                            
      on a separate line entitled "debt held by                               
      public" on the balance sheet? (OMB Circular                             
      No. A-136, p. 112, section II.4.10.14)                                  
      110) Are prior and current year beginning                               
      balances, net borrowings, and ending balances                           
      of debt disclosed for                                                   
                                                                              
              a) total Treasury debt (reported by                             
              the Treasury Department only)                                   
              classified between intragovernmental                            
              and debt held by the public,                                    
              b) total agency debt issued under                               
              special financing authority (e.g.,                              
              FHA debentures and Tennessee Valley                             
              Authority (TVA) bonds) classified                               
              between intragovernmental and debt                              
              held by the public, and                                         
              c) other debt classified by debt owed                           
              to the Treasury (including direct                               
              loan and guaranteed loan financing                              
              account debt), debt owed to the                                 
              Federal Financing Bank and debt owed                            
              to other federal agencies?                                      
                                                                              
      (OMB Circular No. A-136, p. 112, section                                
      II.4.10.14)                                                             
      111) Are the names of agencies disclosed,                               
      other than Treasury or the Federal Financing                            
      Bank, to which intragovernmental debt is owed                           
      and the corresponding amounts disclosed? (OMB                           
      Circular No. A-136, p. 112, section                                     
      II.4.10.14)                                                             
      112) Does the entity disclose other                                     
      information relative to debt such as                                    
      redemption or call of debt owed to the public                           
      before maturity date, or write-offs of debts                            
      owed to Treasury or the Federal Financing                               
      Bank? (OMB Circular No. A-136, p. 112,                                  
      section II.4.10.14)                                                     

     Federal Employee and Veteran's Benefits   Yes, No, or N/A  Explanation   
                (Items 113 - 115)                                             
Entities responsible for accounting for pensions, other retirement
benefits (ORB) (e.g., health benefits for retirees), and other
post-employment benefits (OPEB) are to calculate and report these
liabilities and related expenses in accordance with SFFAS No. 5. The
accrued entitlement benefits payable that are applicable to the current
period, but not yet paid, and annuities for the current fiscal year
administered by trust, pension, or insurance programs for which payment
would be made in the following fiscal year, are classified as current
liabilities. Liabilities for federal employee and veteran benefits include
the actuarial portion of these benefits. They do not include liabilities
related to ongoing continuous expenses such as employees' accrued salary
and accrued annual leave, which are reported as other liabilities.
Actuarial liabilities, assumptions used to compute the actuarial
liabilities and the components of expense for the period for pensions,
other retirement benefits, and other post-employment benefits are
disclosed in the notes to the financial statements. (SFFAS 1, par. 83 &
84; SFFAS 5, par. 56; OMB Circular No. A-136, p. 42, section II.4.3.4)
                                               
In the context of accounting for pensions, ORB, and OPEB, the
"administrative entity" manages and accounts for the pension or other
employee plan, while the "employer entity" employs federal workers and
generates employee costs, for which it would typically receive a salary
and expense appropriation. (SFFAS 5, par. 57, footnote 38)
                                               
The "aggregate entry age normal" actuarial cost method is where expenses
or liabilities arising from the actuarial present value of projected
pension benefits are allocated on a level basis over the earnings or the
service of the group between entry age and assumed exit ages. The portion
of the actuarial present value allocated to a valuation year is called
"normal cost." (SFFAS 5, par. 64)           
      113) Does the administrative entity                                     
      disclose the assumptions used to                                        
      calculate the liability for pensions,                                   
      ORB, and OPEB? (SFFAS 5, par. 67 & 83;                                  
      OMB Circular No. A-136, p. 112, section                                 
      II.4.10.15)                                                             
      114) If the assumptions for a pension                                   
      plan differ from the assumptions used by                                
      the three primary plans--Civil Service                                  
      Retirement System (CSRS), Federal                                       
      Employees Retirement System (FERS), and                                 
      Military Retirement System (MRS)--does                                  
      the administrative entity disclose how                                  
      and why the assumptions differ from                                     
      those of the primary plans? (SFFAS 5,                                   
      par. 67; OMB Circular No. A-136, p. 112,                                
      section II.4.10.15)                                                     
      115) For the period, does the                                           
      administrative entity separately                                        
      disclose individual components of                                       
      pension and other retirement expense for                                
                                                                              
              a) normal cost,                                                 
              b) interest on the liability for                                
              the period,                                                     
              c) prior and past service cost                                  
              from plan amendments during the                                 
              period,                                                         
              d) any gains/losses due to a                                    
              change in the medical inflation                                 
              rate assumption, and                                            
              e) other actuarial gains or                                     
              losses during the period?                                       
                                                                              
      (SFFAS 5, par. 72; OMB Circular No.                                     
      A-136, p. 112, section II.4.10.15)                                      

Environment and Disposal Liabilities       Yes, No, or N/A                 
                                                              Explanation     
(Item 116)                                                                 
Cleanup costs are the costs of removing, containing, and/or disposing of
(1) hazardous waste from property, or (2) material and/or property that
consists of hazardous waste at permanent or temporary closure or shutdown
of associated PP&E.                        
                                              
SFFAS No. 5 provides criteria for recognizing a contingent liability,
which the entity applies to determine whether to recognize clean-up costs
as liabilities and/or disclose them in a note. SFFAS No. 6 supplements the
liability standard by providing guidance for recording cleanup costs
related to general and stewardship PP&E used in federal operations. The
guidance applies to cleanup costs from federal operations known to result
in hazardous waste which the federal government is required by federal,
state and/or local statutes and/or regulations to cleanup. Depending on
the materiality of the amount, the liability for cleanup costs may be
displayed separately or included with other liabilities. Note disclosures
for liabilities associated with cleanup costs are described in SFFAS No.
6, TR No. 2, and OMB Circular No. A-136, p. 43, section II.4.3.4.
      116) Does entity disclosure of clean-up                                 
      costs include                                                           
                                                                              
              a) sources (i.e., applicable                                    
              laws and regulations) of                                        
              clean-up requirements,                                          
              b) method for assigning                                         
              estimated total clean-up costs                                  
              to current operating periods                                    
              (e.g., physical capacity versus                                 
              passage of time),                                               
              c) unrecognized portion of                                      
              estimated total clean-up costs                                  
              associated with PP&E,                                           
              d) material changes in total                                    
              estimated clean-up costs due to                                 
              changes in laws, technology, or                                 
              plans,                                                          
              e) portion of change in an                                      
              estimate that relates to                                        
              prior-period operations,                                        
              f) the nature of estimates, and                                 
              g) information regarding                                        
              possible changes due to                                         
              inflation, deflation,                                           
              technology, or applicable laws                                  
              and regulations?                                                
                                                                              
      (SFFAS 6, par. 107-111; OMB Circular                                    
      No. A-136, pp. 112 &113, section                                        
      II.4.10.16)                                                             

        Cleanup Costs Adjustments (Item 117)      Yes, No, or N/A Explanation 
      117) Are amounts of prior-period                                        
      adjustments arising from belated                                        
      recognition of clean-up costs and                                       
      liabilities disclosed?                                                  
                                                                              
      Are amounts associated with current and                                 
      prior periods noted?                                                    
                                                                              
      (SFFAS 6, par. 105; SFFAS 21, par. 13)                                  

Other Liabilities (Items 118 - 120)          Yes, No, or    Explanation    
                                                N/A                           
Other liabilities include liabilities that are not recognized in specific
categories. They include (but are not limited to) liabilities related to:
capital leases, insurance, advances and prepayments, deposit fund amounts
held in escrow, and accrued liabilities related to ongoing continuous
expenses such as federal employee salaries and accrued employee annual
leave. This item also covers adjudicated losses due to litigation, claims,
and contingencies. Clean up costs are reported as "Other Liabilities" if
they are not material to the balance sheet. Clean up costs that are
material are reported separately as "Environmental and Disposal
Liabilities."                                
                                                
Separate reporting of items normally characterized as "Other Liabilities"
is appropriate if the amounts are significant to the balance sheet. Other
current liabilities may include accrued expenses. Entities separately
disclose the amount of other current liabilities. (SFFAS 1, par. 83-86;
OMB Circular No. A-136, p. 43, section II.4.3.4)
      118) Are significant other liabilities                                  
      reported separately? (OMB Circular No.                                  
      A-136, p. 43, section II.4.3.4)                                         
      119) Does the entity disclose and/or                                    
      classify the portion of other liabilities                               
                                                                              
              a) covered by budgetary resources                               
              that not covered by budgetary                                   
              resources,                                                      
              b) payable to federal entities                                  
              (intragovernmental liabilities),                                
              c) payable to non-federal                                       
              entities, and                                                   
              d) that are current and                                         
              noncurrent?                                                     
                                                                              
      (SFFAS 1, par. 83, 85 & 86; OMB Circular                                
      No. A-136, pp. 113-114, section                                         
      II.4.10.17)                                                             
      120) Is other information necessary for                                 
      understanding other liabilities                                         
      disclosed? (OMB Circular No. A-136, p.                                  
      114, section II.4.10.17)                                                

                Leases (Items 121 - 124)              Yes, No, or Explanation 
                                                          N/A                 
Capital leases are leases that transfer substantially all of the benefits
and risks of ownership to the lessee. Leases not meeting the criteria of a
capital lease are operating leases. (SFFAS 5, par. 43)
                            Capital Leases - Lessee   
      121) As the lessee, does entity disclosure of                           
      its capital leases include                                              
                                                                              
              a) gross amounts of assets under                                
              capital lease by major asset category                           
              with the related total accumulated                              
              amortization,                                                   
              b) a description of the lease                                   
              arrangements, (for example, future                              
              funding commitments, lease terms,                               
              renewal options, escalation clauses,                            
              restrictions, amortization periods),                            
              c) future payments due, by major asset                          
              category, and deductions for imputed                            
              interest and executory costs for all                            
              noncancelable leases with terms longer                          
              than 1 year,                                                    
              d) a breakout of portions of the                                
              capital lease liability covered by                              
              budgetary resources and not covered by                          
              budgetary resources, and                                        
              e) other information necessary for                              
              understanding lessee capital leases?                            
                                                                              
      (OMB Circular No. A-136, pp. 115-116, section                           
      II.4.10.18, items A & C)                                                
                            Capital Leases - Lessor   
      122) As the lessor, does entity disclosure of                           
      its capital leases include                                              
                                                                              
              a) information regarding the commitment                         
              of the entity's assets, including major                         
              asset category and lease terms,                                 
              b) future projected receipts, by major                          
              asset category, for all noncancelable                           
              leases with terms longer than one year,                         
              and                                                             
              c) other information necessary for                              
              understanding lessor capital leases?                            
                                                                              
              (OMB Circular No. A-136, p. 116,                                
              section II.4.10.18, items B & C)                                
                           Operating Leases - Lessee  
      123) As the lessee, does entity disclosure of                           
      its operating leases include                                            
                                                                              
              a) a description of the lease                                   
              arrangements, such as future funding                            
              commitments, lease terms, renewal                               
              options, escalation clauses,                                    
              restriction, amortization periods,                              
              b) future payments due, by major asset                          
              category, for all noncancelable leases                          
              with terms longer than 1 year, and                              
              c) other information necessary for                              
              understanding lessee operating leases?                          
                                                                              
              (OMB Circular No. A-136, pp. 114-115,                           
              section II.4.10.18, items A & C)                                
                           Operating Leases - Lessor  
      124) As the lessor, does entity disclosure of                           
      its operating leases include                                            
                                                                              
              a) information regarding the commitment                         
              of the entity's assets, including but                           
              not limited to, the major asset                                 
              category and lease terms,                                       
              b) future projected receipts, by major                          
              asset category, for all noncancelable                           
              leases with terms longer than one year,                         
              and                                                             
              c) other information necessary for                              
              understanding lessor operating leases?                          
                                                                              
      (OMB Circular No. A-136, p. 116, section                                
      II.4.10.18, items B & C)                                                

          Life Insurance Liabilities         Yes, No, or N/A                  
                                                                Explanation   
              (Items 125 - 126)                                               
Insurance liabilities are reported as a component of Other Liabilities on
the balance sheet and disclosed in a separate note to the financial
statements.                              
                                            
Entities with federal insurance and guarantee programs, except social
insurance and loan guarantee programs, recognize a liability for unpaid
claims incurred, resulting from insured events that have occurred as of
the reporting date. The amount recognized is the liability known with
certainty plus an accrual for a contingent liability recognized when an
existing condition, situation, or set of circumstances involving
uncertainty as to possible loss exists and the uncertainty is ultimately
resolved when one or more future events occur or fail to occur, a future
outflow or other sacrifice of resources is probable, and the future
outflow or sacrifice of resources is measurable. Life insurance programs
recognize a liability for future policy benefits in addition to the
liability for unpaid claims incurred. (SFFAS 5, par. 104 & 105; OMB
Circular No. A-136, p. 44, section II.4.3.4)
      125) Are liabilities for future                                         
      benefits of whole life insurance                                        
      policies reported and disclosed in                                      
      accordance with private sector                                          
      accounting standards (i.e., FASB                                        
      Statement of Accounting Standards                                       
      (SFAS) 60, 97, & 120; American                                          
      Institute of Certified Public                                           
      Accountants (AICPA) and Statement of                                    
      Position (SOP) 95-1)? (SFFAS 5, par.                                    
      117; OMB Circular No. A-136, p. 116,                                    
      section II.4.10.19)                                                     
      126) Does the entity separately                                         
      disclose the components^52 of the                                       
      liability for future policy benefits                                    
      of whole life insurance contracts                                       
      along with a description of each                                        
      amount and explanation of its                                           
      projected use and any other potential                                   
      uses? (SFFAS 5, par. 121; OMB                                           
      Circular No. A-136, p. 116, section                                     
      II.4.10.19)                                                             

^52 The net-level premium reserve for a death and endowment policy and the
liability for terminal dividends.

          Commitments and Contingencies          Yes, No, or                  
                                                     N/A        Explanation   
                (Items 127 - 130)                                             
A loss contingency is an existing condition, situation, or set of
circumstances involving uncertainty as to possible loss to an entity. The
uncertainty will ultimately be resolved when one or more future events
occur or fail to occur. A loss contingency is a liability when a past
event or exchange transaction has occurred; a future outflow or other
sacrifice of resources is probable; and the future outflow or sacrifice of
resources is measurable.                     
                                                
In addition to loss contingencies in SFFAS No. 5, the entity also
discloses (1) an estimate of obligations related to canceled
appropriations for which the reporting entity has a contractual commitment
for payment, and (2) amounts for contractual arrangements that may require
future financial obligations. Examples of claims or other contingencies
include: (1) indemnity agreements -reimbursements due to licensees or
contractors for losses incurred in support of federal activities; (2)
claims against the federal government that are in process of judicial
proceedings; (3) the unfunded portion of total liabilities to
international organizations; and (4) litigation addressing claims for
equity relief or non-monetary judgments whereby claimants are seeking
specific actions by a federal agency. (SFFAS 5, par. 35 & 36, as amended
by SFFAS 12, SFFAS 6, par. 85-111, TR No. 2; OMB Circular No. A-136, p.
44, section II.4.3.4)                        
      127) When determining an estimated                                      
      contingent liability, if no amount within                               
      a range of amounts is a better estimate                                 
      than any other amount, does the entity                                  
      disclose a minimum amount in the range                                  
      with a description of the nature of the                                 
      contingency? (SFFAS 5, par. 39)                                         
      128) If any one of the conditions for                                   
      recognizing a contingent liability is not                               
      met and there is at least a "reasonable                                 
      possibility" ^53 that a loss or                                         
      additional loss may be incurred, does the                               
      entity disclose the nature of the                                       
      contingency^54 and one of the following                                 
                                                                              
              a) an estimate of the possible                                  
              liability, or                                                   
              b) an estimate of the range of                                  
              the possible liability, or                                      
              c) a statement that such an                                     
              estimate cannot be made?                                        
                                                                              
      (SFFAS 5, par. 36, 38, 40, & 41, as                                     
      amended by SFFAS 12)                                                    
      129) If information about remote                                        
      contingencies, or related to remote                                     
      contingencies, is included in general                                   
      purpose federal financial reports,^55 is                                
      the information labeled to avoid the                                    
      misleading implication that there is more                               
      than a remote chance of a loss of that                                  
      amount? (SFFAS 5, par. 42)                                              
      130) Are the following commitments and                                  
      contingencies disclosed                                                 
                                                                              
              a) an estimate of obligations                                   
              related to canceled                                             
              appropriations for which the                                    
              reporting entity has a                                          
              contractual commitment for                                      
              payment, and                                                    
              b) amounts for contractual                                      
              arrangements that may require                                   
              future financial obligations?                                   
                                                                              
      (OMB Circular no. A-136, p. 116, section                                
      II.4.10.20)                                                             

^53 The chance of a future event occurring is less than "probable" but
more than "remote."

^54 Examples of claims or other contingencies include (1) indemnity
agreements-reimbursements due to licenses or contractors for losses
incurred in support of federal activities; (2) adjudicated claims (i.e.,
claims against the federal government that are in the process of judicial
proceedings); and (3) commitments to international institutions-payment
due to international institutions.

^55 An example of information related to a remote contingency would be the
total face amount of insurance and guarantees in force.

             Earmarked Funds (Items 131 - 133)            Yes, No, or N/A     
Earmarked funds are financed by specifically identified revenues, often
supplemented by other financing sources, which remain available over time.
These specifically identified revenues and other financing sources are
required by statute to be used for designated activities, benefits or
purposes, and are accounted for separately from the entity's general
revenues. (SFFAS 27, par. 11; OMB Circular No. A-136 p.118, section
II.4.10.21 )                                           
      131) Is earmarked non-exchange and other financing                      
      sources, including appropriations, and net cost of                      
      operations shown separately on the Statement of                         
      Changes in Net Position? (SFFAS 27, par. 19)                            
      132) Does entity disclosure for each selected                           
      individual earmarked fund and in the aggregate for                      
      all remaining earmarked funds include                                   
                                                                              
              a) condensed information about assets and                       
              liabilities showing investments in Treasury                     
              securities, other assets, liabilities due                       
              and payable, other liabilities, cumulative                      
              results of operations and net position,                         
              b) condensed information on gross cost,                         
              exchange revenue, net cost, nonexchange                         
              revenues and other financing sources, and                       
              change in net position,                                         
              c) a description of each fund's purpose,                        
              how the entity accounts for and reports the                     
              fund, and its authority to use those                            
              revenues and other financing sources,                           
              d) the sources of revenue or other                              
              financing for the period and an explanation                     
              of the extent to which they are inflows of                      
              resources to the entity or the result of                        
              intragovernmental flows, and                                    
              e) any change in legislation during or                          
              subsequent to the reporting period and                          
              before the issuance of the financial                            
              statements that significantly changes the                       
              purpose of the fund or that redirects a                         
              material portion of the accumulated                             
              balance?                                                        
                                                                              
      (SFFAS 27, par. 22-23; OMB Circular No. A-136, p.                       
      118, section II.4.10.21)                                                
      133) Do total cumulative results of operations of                       
      all earmarked funds shown in the note disclosure                        
      agree with the cumulative results of operations of                      
      earmarked funds shown on the entity's Balance Sheet                     
      and the Statement of Changes in Net Position?                           
                                                                              
      (SFFAS 27, par. 25; OMB Circular No. A-136, p. 118,                     
      section II.4.10.21)                                                     

      Intragovernmental Costs and Exchange Revenue    Yes, No, or Explanation 
                   (Items 134 - 138)                      N/A                 
Intragovernmental gross costs and earned revenues, and public costs and
earned revenues are disclosed. (OMB Circular No. A-136, p.47, section
II.4.4.1)                                          
      134) Are intragovernmental costs (exchange                              
      transactions made between two reporting                                 
      entities within the federal government)                                 
      disclosed separately from costs with the public                         
      (exchange transactions made between the                                 
      reporting entity and a non-federal entity)?                             
      (OMB Circular No. A-136, p. 119, section                                
      II.4.10.22)                                                             
      135) Are intragovernmental exchanges revenue                            
      (exchange transactions made between two                                 
      reporting entities within the federal                                   
      government) disclosed separately from exchange                          
      revenue with the public (exchange transactions                          
      made between the reporting entity and a                                 
      non-federal entity) for each program? (OMB                              
      Circular No. A-136, p. 119, section II.4.10.22)                         
      136) Is the definition criteria used to                                 
      classify costs and/or revenues between                                  
      intragovernmental and public disclosed? (OMB                            
      Circular No. A-136, p. 119, section II.4.10.22)                         
      137) Is an explanation included that                                    
      intragovernmental expenses relate to the source                         
      of goods and services purchased by the                                  
      reporting entity and not to the classification                          
      of related revenue? (OMB Circular No. A-136, p.                         
      119, section II.4.10.22)                                                
      138) Is the classification of revenue and/or                            
      costs as intragovernmental or with the public                           
      determined on a transaction by transaction                              
      basis for disclosure? (OMB Circular No. A-136,                          
      p. 119, section II.4.10.22)                                             

     Suborganization Program Costs/Program Costs by   Yes, No, or Explanation 
               Segment (Items 139 - 140)                  N/A                 
A responsibility segment is a component of a reporting entity that is
responsible for carrying out a mission, conducting a major line of
activity, or producing one or a group of related products or services.
(SFFAS 4, par. 78)                                 
      139) Are supporting schedules of costs and                              
      revenue by major program and activity disclosed                         
      in the footnotes if not disclosed on the                                
      Statement of Net Cost? (OMB Circular No. A-136,                         
      p. 120, section II.4.10.23)                                             
      140) Are supporting schedules of costs,                                 
      revenues, and intra-entity eliminations by                              
      suborganization (segment) that support summary                          
      information in the Statement of Net Costs                               
      disclosed in the footnotes? (OMB Circular No.                           
      A-136, p. 120, section II.4.10.23)                                      

    Cost of Stewardship PP&E (Items 141 - 142)   Yes, No, or    Explanation   
                                                     N/A                      
                            Cost of Stewardship PP&E
The cost of acquiring, constructing, improving, reconstructing, or
renovating heritage assets (other than multi-use heritage assets), and the
cost of acquiring stewardship land and any costs to prepare stewardship
land for its intended use are recognized as a cost in the SNC in the
period when it is incurred. (OMB Circular No. A-136, p. 121, section
II.4.10.24)                                  
      141) Are the costs of stewardship PP&E                                  
      reported either separately in the                                       
      Statement of Net Cost, or disclosed in                                  
      the footnotes? (OMB Circular No. A-136,                                 
      p. 121, section II.4.10.24)                                             
        Stewardship PP&E Acquired Through Transfer, Donation, or Devise
Heritage assets and stewardship land acquired through transfer, donation,
or devise are not recognized as a cost in calculating net cost, but the
fair value of the property is disclosed, if known and material. If the
fair value is not known or reasonably estimable, information related to
the type and quantity of assets received is disclosed. (OMB Circular No.
A-136, p. 121, section II.4.10.25)           
      142) For heritage assets and stewardship                                
      land acquired through transfer, donation,                               
      or devise, does the entity disclose                                     
                                                                              
              a) if the cost is known and                                     
              material, the fair value, or                                    
              b) if the fair value is not known                               
              or reasonably estimable,                                        
              information related to the type                                 
              and quantity of assets received?                                
                                                                              
      (OMB Circular No. A-136, p. 121, section                                
      II.4.10.25)                                                             

              Exchange Revenues (Item 143)            Yes, No, or Explanation 
                                                          N/A                 
Exchange (or earned) revenues arise when a government entity provides
goods or services to the public or to another government entity for a
price. (SFFAS 7, par. 30; OMB Circular No. A-136, p. 49, section II.4.4.4)
      143) Does a reporting entity that provides                              
      goods or services to the public or other                                
      government entity disclose                                              
                                                                              
              a) a pricing policy that differs from                           
              the full cost or market pricing                                 
              guidance set forth in OMB Circular No.                          
              A-25 and the possible effect on demand                          
              and revenue if prices were raised to                            
              reflect the market or full cost,                                
              b) exchange transactions with the                               
              public in which prices are set by law                           
              or executive order and are not based                            
              on full cost or market price, or the                            
              possible effect on demand and revenue                           
              if prices were raised to reflect the                            
              market or full cost,                                            
              c) the nature of intragovernmental                              
              exchange transactions in which goods                            
              or services are provided free or at                             
              less than full cost and the reasons                             
              for differences between billing and                             
              full cost, and                                                  
              d) the full amount of any expected                              
              loss when specific goods or services                            
              are provided or made to order under a                           
              contract and a loss is both probable                            
              and measurable?                                                 
                                                                              
      (SFFAS 7, par. 46 & 47)                                                 

Budgetary Resources Statement Disclosures (Items 144  Yes, No, Explanation 
                          - 146)                          or N/A              
      144) Does the entity disclose the amount of direct                      
      and reimbursable obligations incurred against                           
      amounts apportioned under category^56 "A," "B,"                         
      and "exempt from apportionment"? (OMB Circular No.                      
      A-136, p. 122, section II.4.10.28)                                      
      145) Does the disclosure of the amount of direct                        
      and reimbursable obligations incurred against                           
      amounts apportioned under category "A," "B," and                        
      "exempt from apportionment" agree with                                  
                                                                              
              a) the aggregate of the related                                 
              information as reported on the entity's                         
              year-end SF 133, and                                            
                                                                              
                      b) the amounts reported under                           
                      direct and reimbursable                                 
                      obligations incurred, reported on                       
                      the SBR?                                                
                                                                              
      (OMB Circular No. A-136, p. 122, section                                
      II.4.10.28)                                                             
      146) Does entity disclosure of the status of                            
      budgetary resources include                                             
                                                                              
              a) available borrowing and contract                             
              authority at the end of the period,                             
              b) repayment requirements, financing                            
              sources for repayment, and other terms of                       
              borrowing authority used,                                       
              c) adjustments to "budgetary resources                          
              available at the beginning of the year,"                        
              during the reporting period, as well as an                      
              explanation of the adjustments,                                 
              d) existence, purpose, and availability of                      
              permanent, indefinite appropriations,                           
              e) information about legal arrangements                         
              affecting the use of unobligated balances                       
              of budget authority, such as time limits,                       
              purpose, and obligation limitations,                            
              f) explanations of any material                                 
              differences between amounts reported in                         
              the SBR and amounts reported in the Budget                      
              of the United States Government,^57                             
              g) a statement that the President's Budget                      
              with actual numbers for the current fiscal                      
              year has not yet been published, as well                        
              as an explanation as to when it is                              
              expected to be published and an indication                      
              where it will be available,                                     
              h) the amount of budgetary resources                            
              obligated for undelivered orders at the                         
              end of the period, and                                          
              i) the amount of any capital infusion                           
              received during the reporting period?                           
                                                                              
      (SFFAS 7, par. 79; OMB Circular No. A-136, pp.                          
      122-124, sections II.4.10.28-II.4.10.36)                                

^56 Apportionment categories are determined in accordance with guidance
provided in OMB Circular No. A-11, Part 4, Instructions on Budget
Execution.

^57 FASAB Technical Bulletin 2002-2 indicates disclosures when the entity
issues financial statements for a given year before the Budget of the
United  States Government for the same fiscal year is published.

            Financing Statement Disclosures           Yes, No, or             
                                                          N/A     Explanation 
                       (Item 147)                                             
      147) Is the relationship between amounts                                
      reported as "liabilities not covered by                                 
      budgetary resources" reported on the Balance                            
      Sheet and amounts reported as "components                               
      requiring or generating resources in future                             
      periods" on the Statement of Financing                                  
      identified and explained in a note to the                               
      financial statements? (OMB Circular No. A-136,                          
      p. 124, section II.4.10.37)                                             

Custodial Activities Statement Disclosures (Items  Yes, No, or Explanation 
                       148 - 153)                         N/A                 
      148) If custodial revenues are immaterial and                           
      incidental to the entity's primary mission and                          
      are not reported separately on the Statement of                         
      Custodial Activity, the sources and amounts of                          
      the collections and amounts to be distributed                           
      to others may be disclosed in a note. Does the                          
      entity disclose such collections? (OMB Circular                         
      No. A-136, p. 125, section II.4.10.39)                                  
      149) Do entities that collect taxes and duties                          
      disclose in a note or narrative the                                     
                                                                              
              a) basis of accounting,                                         
              b) factors affecting the collectibility                         
              and timing of taxes and other                                   
              nonexchange revenues, and                                       
              c) cash collections and refunds by tax                          
              year and type of tax for the reporting                          
              period?                                                         
                                                                              
      (SFFAS 7, par. 65.1 & 65.3; OMB Circular No.                            
      A-136, p. 125, section II.4.10.40)                                      
      150) Does the collecting entity disclose and                            
      explain the                                                             
                                                                              
              a) basis of accounting when application                         
              of the general rule for recognizing                             
              nonexchange revenue (i.e., specifically                         
              identifiable, legally enforceable, and                          
              reasonably estimable) results in a                              
              modified cash basis of accounting,                              
              b) specific potential accruals that are                         
              not made as a result of using the                               
              modified cash basis accounting,                                 
              c) practical and inherent limitations                           
              affecting the accrual of taxes and                              
              duties, and                                                     
              d) use of accrual-based accounting, if                          
              applicable?                                                     
                                                                              
      (SFFAS 7, par.48 & 64)                                                  
      151) If trust fund revenues are not recorded in                         
      accordance with applicable law, do the                                  
      collecting and recipient entities disclose the                          
      reasons? (SFFAS 7, par. 66)                                             
      152) If material, are accrual adjustments^58                            
      disclosed in the notes? (OMB Circular No.                               
      A-136, p. 77, section II.4.8.3)                                         
      153) Are refunds of taxes or other non-exchange                         
      revenues disclosed by component in the notes?                           
      (OMB Circular No. A-136, p. 77, section                                 
      II.4.8.3)                                                               

^58 Accrual adjustments, which modify the net of cash collections and
refunds to determine the amount of revenue recognized, are the net
increases or decreases during the reporting period in accounts receivable,
allowance for uncollectible accounts, and accounts payable for refunds.

Social Insurance Statement Disclosures (Items 154  Yes, No, or Explanation 
                         - 157)                           N/A                 
      154) Are significant assumptions used in making                         
      estimates and projections disclosed? (SFFAS 17,                         
      par. 27 (4), SFFAS 26, par. 5; OMB Circular No.                         
      A-136, p. 125, section II.4.10.41)                                      
      155) Does the fund balance at the valuation                             
      date disclose the accumulated excess of all                             
      past cash receipts, including interest on                               
      investments, over all past cash disbursements?                          
      (SFFAS 17, par. 27 (3) (h); OMB No. Circular                            
      A-136, p. 126, section II.4.10.41)                                      
      156) Is there disclosure that the actuarial net                         
      present value of the excess of future scheduled                         
      expenditures paid to or on behalf of current                            
      participants is calculated by subtracting the                           
      actuarial present value of future contributions                         
      and tax income paid by and for current                                  
      participants from the actuarial present value                           
      of the future scheduled expenditures? (SFFAS                            
      17, par. 27 (3) (i); OMB Circular No. A-136, p.                         
      126, section II.4.10.41)                                                
      157) The underlying significant assumptions                             
      shall be included in the notes that are                                 
      presented as an integral part of the basic                              
      financial statements. Other information                                 
      required by SFFAS 17 - including the                                    
      sensitivity analysis required in par. 27(4) for                         
      the component entity and 32(4) for the                                  
      governmentwide entity - shall be presented as                           
      required supplementary information, except to                           
      the extent that the preparer elects to include                          
      some or all of that information in notes that                           
      are presented as an integral part of the basic                          
      financial statements. (SFFAS 26, par. 5)                                

      Dedicated Collections (Items 158 - 160)      Yes, No, or   Explanation  
                                                       N/A                    
Dedicated collections are funds held with the expectation that they will
be held for and applied to the purposes for which the funds were
dedicated. Such funds include all funds within the budget classified as
trust funds, those funds within the budget that are classified as "special
funds" but that are similar in nature to trust funds, and those funds
(inside or outside the budget) that are fiduciary in nature. (SFFAS 7,
par. 83; OMB Circular No. A-136, p. 126, section II.4.10.42)
      158) Are the receipts and expenditures of                               
      dedicated trust funds, "special funds," and                             
      fiduciary or deposit funds (both inside and                             
      outside the budget) that do not meet the                                
      definition of earmarked funds disclosed?                                
      (SFFAS 7, par. 83; OMB Circular No. A-136,                              
      pp. 126-127, section II.4.10.42)                                        
      159) Is separate financial information                                  
      about dedicated funds presented? (SFFAS 7,                              
      par. 84; OMB Circular No. A-136, p. 126,                                
      section II.4.10.42)                                                     
      160) Does entity disclosure for individual                              
      funds that account for dedicated                                        
      collections include                                                     
                                                                              
              a) a description of each fund's                                 
              purpose, how the administrative                                 
              entity accounts for and reports the                             
              fund, and its authority to use                                  
              those collections,                                              
              b) the sources of revenue or other                              
              financing for the period and an                                 
              explanation of the extent to which                              
              they are inflows of resources to                                
              the government or the result of                                 
              intragovernmental flows,                                        
              c) condensed information about                                  
              assets and liabilities showing                                  
              investments in Treasury securities,                             
              other assets, liabilities due and                               
              payable to beneficiaries, other                                 
              liabilities, and fund balance,                                  
              d) condensed information on net                                 
              cost and changes to fund balance                                
              showing revenues by type (exchange                              
              or nonexchange), program expenses,                              
              other expenses, other financing                                 
              sources, and other changes in fund                              
              balance, and                                                    
              e) the amounts of any                                           
              revenues--other financing sources                               
              or costs attributable to the fund                               
              under accounting standards--that                                
              are not legally allowable as                                    
              credits or charges to the fund?                                 
                                                                              
      (SFFAS 7, par. 85; OMB Circular No. A-136,                              
      p. 127, section II.4.10.42)                                             

        Restatements (Items 161 - 164)       Yes, No, or      Explanation
                                                 N/A            
Errors in financial statements result from mathematical mistakes, mistakes
in the application of accounting principles, or oversight or misuse of
facts that existed at the time the financial statements were prepared.
When errors are discovered after the issuance of financial statements, and
if the financial statements would be materially misstated absent
correction of the errors, corrections are made as follows:
                                            
      (a)  If only the current period statements are presented, then the
      cumulative effect of correcting the error is reported as a prior period
      adjustment.                           
      (b)  If comparative financial statements are presented, then the error
      is corrected in the earliest affected period presented by correcting
      individual amounts on the financial statements. (SFFAS 21, par. 10)
      161) Does entity disclosure for                                         
      restatement of financial statements                                     
      due to material errors include                                          
                                                                              
              a) the nature of the error                                      
              and the reason for the                                          
              restatement,                                                    
              b) the year(s) being                                            
              restated,                                                       
              c) the financial statements                                     
              that are impacted,                                              
              d) amounts being restated,                                      
              and                                                             
              e) effect of the restatement                                    
              on the financial statements                                     
              as a whole (e.g., change in                                     
              overall net position and                                        
              change in audit opinion)?                                       
                                                                              
      (SFFAS 21, par. 10(c); OMB Circular                                     
      No. A-136, p. 127, section II.4.10.3                                    
      162) Does the entity discuss the                                        
      actions management took after                                           
      discovering the error? (OMB Circular                                    
      No. A-136, p. 127, section II.4.10.3)                                   
Restatements (Items 161 - 164)             Yes, No, or N/A   Explanation   
      163) If the entity discovered                                           
      misstatements in a prior period with                                    
      a material effect on current or prior                                   
      period financial statements, did the                                    
      entity restate its financial                                            
      statements?                                                             
                                                                              
      Did the entity determine the material                                   
      effect based on accounting                                              
      materiality which is often less than                                    
      the auditor's planning materiality                                      
      (defined as 3% of the materiality                                       
      base in FAM 230.11) as it includes                                      
      any qualitative factors?                                                
                                                                              
      (SFFAS 21, par 2-6 & 11)                                                
      164) Although immaterial to the                                         
      entity's consolidated financial                                         
      statements, the entity may disclose                                     
      the restatement of a component                                          
      entity's financial statement in a                                       
      note to its consolidated financial                                      
      statements. Did the entity disclose a                                   
      component restatement?                                                  
                                                                              
      (SFFAS 21 par. 11)                                                      

          Fiduciary Activities (Item 165-178)         Yes, No, or Explanation 
                                                          N/A                 
In a fiduciary activity a federal entity collects or receives and
subsequently manages, protects, accounts for, invests, and/or disposes of
cash or other assets in which non-federal individuals or entities (or
"non-federal parties") have an ownership interest that the federal
government upholds. (SFFAS 31, par. 10)            
                                                      
Note: SFFAS 31 is effective for periods beginning after September 30,
2008. Earlier adoption is prohibited.              
      165) Is a statement included to indicate that                           
      fiduciary assets are not assets of the entity                           
      and are not recognized on the balance sheet?                            
      (SFFAS 31, par. 17)                                                     
      166) Does entity disclosure for fiduciary                               
      activities describe                                                     
                                                                              
              a) the fiduciary relationship (e.g.,                            
              the applicable legal authority),                                
              b) the objectives of the fiduciary                              
              activity, and                                                   
              c) a general description of the                                 
              beneficial owners or class of owners?                           
                                                                              
      (SFFAS 31, par. 18a)                                                    
      167) Is a Schedule of Fiduciary Activity for                            
      all periods included that discloses                                     
                                                                              
              a) beginning balance of net assets,                             
              b) inflows from the fiduciary                                   
              activities by category (e.g.,                                   
              contributions, investment earnings) and                         
              outflows by category (e.g., benefit                             
              payments, refunds, administrative                               
              expenses),                                                      
              c) change in net assets, and                                    
              d) ending balance of net assets?                                
                                                                              
      (SFFAS 31, par. 18b)                                                    
      168) Does a Schedule of Fiduciary Net Assets                            
      disclose the current and prior period ending                            
      balances for                                                            
                                                                              
              a) cash and any other assets by                                 
              category (e.g., receivables,                                    
              investments),                                                   
              b) liabilities by category (e.g.,                               
              accounts payable, refunds payable), and                         
              c) significant changes from the prior                           
              period?                                                         
                                                                              
      (SFFAS 31, par. 18c)                                                    
      169) Does entity disclosure for non-monetary                            
      fiduciary assets describe                                               
                                                                              
              a) composition of the assets,                                   
              b) the method(s) of valuation, and                              
                                                                              
                      c) changes from prior period                            
                      accounting methods?                                     
                                                                              
              (SFFAS 31, par. 18c)                                            
      170) Are non-valued fiduciary assets,^59                                
      disclosed in a Schedule of Changes in                                   
      Non-Valued Fiduciary Assets, which includes                             
                                                                              
              a) a description of non-valued                                  
              fiduciary assets,                                               
              b) beginning quantity,                                          
              c) quantity received,                                           
              d) quantity disposed of,                                        
              e) net increase/decrease in non-valued,                         
              fiduciary assets, and                                           
              f) ending total quantity?                                       
                                                                              
      (SFFAS 31, par. 18d)                                                    
      171) If separate audited financial statements                           
      are issued for an individual fiduciary activity                         
      that is presented individually in accordance                            
      with the acceptable criteria,^60 does                                   
      disclosure include                                                      
                                                                              
              a) the basis of accounting used and                             
              auditor's opinion on the current or                             
              most recent financial statements,                               
              b) the reason(s) stated by the auditors                         
              if the auditor's opinion was not                                
              unqualified, and a reference to the                             
              audit opinion for further information,                          
              and                                                             
              c) how the reader can obtain a copy of                          
              the financial statements and the audit                          
              opinion thereon?                                                
                                                                              
      (SFFAS 31, par. 18e & 22)                                               
      172) If the separate audited financial                                  
      statements for an individual fiduciary activity                         
      are prepared with a fiscal year-end other than                          
      September 30, is information provided for the                           
      fiduciary activity's most recent fiscal year?                           
      (SFFAS 31, par. 18e)                                                    
      173) If more than one entity administers a                              
      fiduciary activity, and the separate portions                           
      of the activity can be clearly identified with                          
      a responsible entity, does each entity disclose                         
      its portion, including the identification of                            
      the other entities that administer the                                  
      activity? (SFFAS 31, par. 19)                                           
      174) If separate portions of the activity                               
      cannot be identified, does the entity with                              
      program management responsibility disclose the                          
      fiduciary activity? (SFFAS 31, par. 19)                                 
      175) For entities with several distinct                                 
      fiduciary activities, is a summary of financial                         
      information provided for each fiduciary                                 
      activity presented individually? (SFFAS 31,                             
      par. 18 & 20)                                                           
      176) Does the entity consider both quantitative                         
      and qualitative criteria^61 when selecting                              
      fiduciary activities to be presented                                    
      individually? (SFFAS 31, par. 21)                                       
      177) Is prior year information not displayed in                         
      the initial year of implementation? (SFFAS 31,                          
      par. 23)                                                                
      178) In the reporting periods following the                             
      initial year of implementation, are prior                               
      period amounts disclosed? (SFFAS 31, par. 23)                           

^59 Nonvalued fiduciary assets are fiduciary assets for which required
disclosure does not include dollar values. Non-valued fiduciary assets may
include land held in trust.

^60 Acceptable criteria include: quantitative factors such as the
percentage of the reporting entity's fiduciary net assets or inflows; and
qualitative factors such as whether a fiduciary activity is of immediate
concern to beneficiaries, whether it is politically sensitive or
controversial, whether it is accumulating large balances, or whether the
information provided in the fiduciary note disclosure would be the primary
source of financial information for the public.

^61 Acceptable criteria include: quantitative factors such as the
percentage of the reporting entity's fiduciary net assets or inflows; and
qualitative factors such as whether a fiduciary activity is of immediate
concern to beneficiaries, whether it is politically sensitive or
controversial, whether it is accumulating large balances, or whether the
information provided in the fiduciary note disclosure would be the primary
source of financial information for the public.

  Section VI - Required Supplementary Stewardship Information

Stewardship reporting involves the federal government reporting on its
stewardship over certain resources entrusted to it and certain
responsibilities assumed by it that cannot be measured in traditional
financial reports. These resources and responsibilities do not meet the
criteria for assets and liabilities that are required to be reported in
the financial statements, but are important to understanding the
operations and financial condition of the federal government.

The questions related to the unaudited required supplementary stewardship
information (RSSI) are presented under one caption of stewardship
investments. The question numbers related to the caption for each type of
investment are identified below.

Stewardship Investments       Question Numbers 
Non-federal Physical Property      1 - 5       
Human Capital                      6 - 10      
Research and Development          11 - 16      

      Stewardship Investments (Items 1 - 16)     Yes, No, or    Explanation   
                                                     N/A                      
Stewardship investments are substantial investments made by the Federal
Government for the benefit of the nation but are not physical assets owned
by the Federal Government. When incurred, they are treated as expenses in
determining the net cost of operations. However, these items merit special
treatment so that users of Federal financial reports know the extent of
investments that are made for long-term benefit. Such investments are
incurred for: (1) federally-financed but not federally-owned physical
property (Non-federal Physical Property); (2) certain education and
training programs (Human Capital); and (3) federally-financed research and
development (Research and Development) (OMB Circular No. A-136, p. 129,
section II.4.11.2)                           
                  Non-federal Physical Property (Items 1 - 5)
      1) Does RSSI include the full cost of the                               
      investment, a narrative description, of                                 
      the federal property transferred to state                               
      and local governments for the year being                                
      reported on, as well as at least the                                    
      preceding 4 years? (SFFAS 8, par. 87; OMB                               
      Circular No. A-136, p. 129, section                                     
      II.4.11.3 & p. 131, section II.4.11.6)                                  
      2) Does the description of major programs                               
      involving federal investments include a                                 
      description of programs or policies under                               
      which non-cash assets are transferred to                                
      state and local governments? (SFFAS 8,                                  
      par. 87; OMB Circular No. A-136, p. 131,                                
      section II.4.11.6)                                                      
      3) Is expense or outlay data for                                        
      investments in nonfederal physical                                      
      property reported at a meaningful                                       
      category or level (e.g., by major                                       
      program/department)? (SFFAS 8, par. 87)                                 
      4) If expense data for the purchase of                                  
      PP&E for state and local governments for                                
      the year being reported on and for the                                  
      preceding 4 years is not available, does                                
      the entity report outlay data for these                                 
      periods? (SFFAS 8, par. 87; OMB Circular                                
      No. A-136, p. 131, section II.4.11.6)                                   
      5) If neither historical expense nor                                    
      outlay data is available on stewardship                                 
      investments for the year being reported                                 
      on and the preceding 4 years, does the                                  
      entity report expense data for the                                      
      current reporting year and such other                                   
      years, as available? (SFFAS 8, par. 87;                                 
      OMB Circular No. A-136, p. 131, section                                 
      II.4.11.6)                                                              
                          Human Capital (Items 6 - 10)
      6) Does the RSSI include the full cost                                  
      and a narrative description of the                                      
      investment made in human capital for the                                
      year being reported on, as well as the                                  
      preceding 4 years? (SFFAS 8, par. 94; OMB                               
      Circular No. A-136, p. 129, section                                     
      II.4.11.3, and p. 131, section II.4.11.6)                               
      7) Is a narrative description of the                                    
      major education and training programs                                   
      considered to be federal investments                                    
      included? (SFFAS 8, par. 94; OMB Circular                               
      No. A-136, p. 131, section II.4.11.6)                                   
      8) If expense data for the investments in                               
      human capital for the year being reported                               
      and for the preceding 4 years is not                                    
      available, does the entity report outlay                                
      data? (SFFAS 8, par. 94; OMB Circular No.                               
      A-136, p. 131, section II.4.11.6)                                       
      9) If neither historical expense nor                                    
      outlay data for the investments in human                                
      capital is available for the year being                                 
      reported on and the preceding 4 years,                                  
      does the entity report expense data for                                 
      the current reporting year and such other                               
      years? (SFFAS 8, par. 94; OMB Circular                                  
      No. A-136, p. 131, section II.4.11.6)                                   
      10) Is expense or outlay data for                                       
      investments in human capital reported at                                
      a meaningful category or level (e.g., by                                
      major program or department)? (SFFAS 8,                                 
      par. 94)                                                                
                    Research and Development (Items 11 - 16)
      11) Does the RSSI include the full cost,                                
      including a narrative description, of the                               
      investment made in major research and                                   
      development programs for the year being                                 
      reported on, as well as the preceding 4                                 
      years? (SFFAS 8, par. 100; OMB Circular                                 
      No. A-136, p. 129, section II.4.11.3, and                               
      p. 131, section II.4.11.6)                                              
      12) Is a narrative description of the                                   
      major research and development programs                                 
      included? (SFFAS 8, par. 100; OMB                                       
      Circular No. A-136, p. 131, section                                     
      II.4.11.6)                                                              
      13) If expense data for the investments                                 
      in research and development for the year                                
      being reported and for the preceding 4                                  
      years are not available, does the entity                                
      report outlay data, if available? (SFFAS                                
      8, par. 100; OMB Circular No. A-136, p.                                 
      131, section II.4.11.6)                                                 
      14) If neither historical expense nor                                   
      outlay data are available for the year                                  
      being reported on and the preceding 4                                   
      years, does the entity report expense                                   
      data for the current year and such other                                
      years as available? (SFFAS 8, par. 100;                                 
      OMB Circular No. A-136, p. 131, section                                 
      II.4.11.6)                                                              
      15) Is expense or outlay data for                                       
      investments in research and development                                 
      reported at a meaningful category or                                    
      level (e.g., by major                                                   
      program/department)? (SFFAS 8, par 100)                                 
      16) Does the RSSI include the amounts of                                
      significant contributions from state,                                   
      local, private, and other sources to its                                
      investments in nonfederal physical                                      
      property, human capital, and research and                               
      development?^62 (SFFAS 8, par. 88, 95, &                                
      101)                                                                    

^62This reporting is encouraged, but is not required.

  Section VII - Required Supplementary Information

The questions related to the unaudited required supplementary information
(RSI) requirements are presented under six captions. The question numbers
related to each caption are identified below.

Caption                          Question Numbers 
Stewardship PP&E                      1 - 5       
Deferred Maintenance                  6 - 9       
Social Insurance                     10 - 26      
Statement of Budgetary Resources     27 - 28      
Statement of Custodial Activity      29 - 30      
Risk Assumed Information             31 - 33      

          Stewardship PP&E (Items 1 - 5)         Yes, No, or    Explanation   
                                                     N/A                      
SFFAS 29, Heritage Assets and Stewardship Land, reclassifies all heritage
assets and stewardship land information as basic except for condition
information, which is classified as RSI, which may be reported with the
deferred maintenance information. The reclassification as basic of the
heritage assets and stewardship land information is being phased. The
phase-in approach provides for full implementation for reporting periods
beginning after September 30, 2008. (OMB Circular No. A-136, p. 129,
section II.4.12.2)                           
      1) Is a concise description of each major                               
      category of heritage asset presented?                                   
      (SFFAS 29, par. 25 & 40; OMB Circular No.                               
      A-136, p. 132, section II.4.12.2)                                       
      2) Is physical unit information for the                                 
      end of the reporting period for                                         
      stewardship PP&E presented? (SFFAS 29,                                  
      par. 25 & 40; OMB Circular No. A-136, p.                                
      132, section II.4.12.2)                                                 
      3) Are the number of physical units                                     
      acquired and withdrawn for stewardship                                  
      PP&E during the year reported by major                                  
      category? (SFFAS 29, par. 25 & 40; OMB                                  
      Circular No. A-136, p. 132, section                                     
      II.4.12.2)                                                              
      4) Is a description of the major methods                                
      of acquisition and withdrawal of                                        
      stewardship PP&E during the reporting                                   
      period presented, including the number of                               
      physical units, by major category, of                                   
      transfers between federal entities and                                  
      the number of physical units acquired                                   
      through donation or devise? (SFFAS 29,                                  
      par. 25 & 40; OMB Circular No. A-136, p.                                
      132, section II.4.12.2)                                                 
      5) Is the condition of the stewardship                                  
      PP&E reported in a note if not included                                 
      with the deferred maintenance                                           
      information? (SFFAS 29, par. 26 & 41; OMB                               
      Circular No. A-136, p. 132, section                                     
      II.4.12.2)                                                              

           Deferred Maintenance (Items 6 - 9)         Yes, No, or Explanation 
                                                          N/A                 
Maintenance is the act of keeping fixed assets in acceptable condition.
Maintenance includes preventive maintenance, normal repairs, replacement
of parts and structural components, and other activities needed to
preserve the asset so that it continues to provide acceptable services and
achieves its expected life.                        
                                                      
Maintenance excludes activities aimed at expanding the capacity of an
asset or otherwise upgrading it to serve needs different from, or
significantly greater than, originally intended.   
                                                      
Deferred maintenance is maintenance that was not performed when it should
have been, or was scheduled to be, and that, therefore, is put off or
delayed for a future period. (SFFAS 6, par. 77 & 78)
      6) Does the entity report for each major                                
      category of its PP&E (i.e., general PP&E,                               
      heritage assets, and stewardship land) the                              
                                                                              
              a) identity (e.g., building, equipment,                         
              land) of each major class of asset for                          
              which maintenance was deferred, and                             
              b) method of measuring deferred                                 
              maintenance for each major class of                             
              asset?                                                          
                                                                              
      (SFFAS 6, par. 83; OMB Circular No. A-136, p.                           
      133, section II.4.12.3)                                                 
Amounts reported for deferred maintenance may be measured using condition
assessment surveys or life-cycle cost forecasts.   
                                                      
Condition assessment surveys are periodic inspections of PP&E, based on
generally accepted and consistently applied methods, to determine PP&E's
current condition and the estimated cost to correct any deficiencies.
(SFFAS 6, par. 81)                                 
                                                      
Life-cycle costing is an acquisition or procurement technique that
considers operating, maintenance, and other costs in addition to the
acquisition cost of assets. (SFFAS 6, par. 82)     
      7) If the condition assessment survey method is                         
      used to measure deferred maintenance, does each                         
      major class of PP&E in RSI disclose                                     
                                                                              
              a) a description of requirements or                             
              standards for acceptable operating                              
              condition,                                                      
              b) any changes in the condition                                 
              requirements or standards, and                                  
              c) asset condition and a range estimate                         
              of the dollar amount of maintenance                             
              needed to return it to its acceptable                           
              operating condition?                                            
                                                                              
      (SFFAS 6, par. 83)                                                      
      8) If the total life cycle cost method is used                          
      to measure deferred maintenance, does each                              
      major class of PP&E disclose                                            
                                                                              
              a) the original date of the maintenance                         
              forecast and an explanation for any                             
              changes to the forecast,                                        
              b) prior-year balance of the cumulative                         
              deferred maintenance amount,                                    
              c) the dollar amount of maintenance                             
              that was defined by the professionals                           
              who designed, built, or managed the                             
              PP&E as required maintenance for the                            
              reporting period,                                               
              d) the dollar amount of maintenance                             
              actually performed during the period,                           
              e) the difference between the forecast                          
              and actual maintenance,                                         
              f) any adjustments to the scheduled                             
              amounts deemed necessary by the                                 
              managers of the PP&E, and                                       
              g) the ending cumulative balance for                            
              the reporting period for each major                             
              class of asset experiencing deferred                            
              maintenance?                                                    
                                                                              
      (SFFAS 6, par. 83)                                                      
      9) If management elects to break out deferred                           
      maintenance by critical and noncritical amounts                         
      needed to bring each class of asset to its                              
      acceptable operating condition, does it also                            
      include its definition of these categories?                             
      (SFFAS 6, par. 84; OMB Circular No. A-136, p.                           
      133, section II.4.12.3)                                                 

          Social Insurance (Items 10 - 26)          Yes, No, or  Explanation  
                                                        N/A                   
Reporting on stewardship responsibilities aids in assessing the federal
government's financial condition and the sufficiency of future budgetary
resources to sustain public services and meet obligations as they become
due. Supplementary information for social insurance programs is reported
to address fundamental questions about the current and future financial
condition of these programs. Information disclosed for social insurance
programs is intended to facilitate an assessment of the long-term
sustainability of the program as well as the ability of the program to
raise resources from future program participants to pay for benefits to
present participants. (OMB Circular No. A-136, p. 129, section II.4.12.4)
      10) Is a clear and concise description of                               
      the program, including how its financed, how                            
      benefits are calculated, and its financial                              
      and actuarial status included in RSI? (SFFAS                            
      17, par. 24; OMB Circular No. A-136, p. 135,                            
      section II.4.12.4)                                                      
      11) Does this description include                                       
                                                                              
              a) discussion of the long-term                                  
              sustainability and financial                                    
              condition of the program, and                                   
              b) an illustration and explanation                              
              of the long-term trends revealed in                             
              the data?                                                       
                                                                              
      (SFFAS 17, par. 24)                                                     
      12) Are statutory or other material changes,                            
      and implications thereof, affecting the                                 
      program after the current fiscal year                                   
      described? (SFFAS 17, par. 24)                                          
      13) Does information on the financial and                               
      actuarial status of the social insurance                                
      program(s) include projections of cash flows                            
      during a projection period sufficient to                                
      illustrate long-term sustainability and show                            
      the annual cash flows in nominal dollars for                            
      current and future participants? (SFFAS 17,                             
      par. 27 (1); OMB Circular No. A-136, p. 134,                            
      section II.4.12.4)                                                      
      14) Are the actuarial projections of cash                               
      flow amounts reported for at least every                                
      fifth year in the projection period? (SFFAS                             
      17, par. 27 (1) (a))                                                    
      15) Does the cash flow information show                                 
                                                                              
              a) total cash inflow from all                                   
              sources (i.e., by and on behalf of                              
              participants) less net interest on                              
              intragovernmental borrowing and                                 
              lending, and                                                    
              b) total cash outflow?                                          
                                                                              
      (SFFAS 17, par. 27 (1) (a))                                             
      16) Does the narrative accompanying the cash                            
      flow data include identification of any year                            
      or years during the projection period when                              
      cash outflow exceeds cash inflow, with and                              
      without interest on intragovernmental                                   
      borrowing or lending (the "cross-over                                   
      points")? (SFFAS 17, par. 27 (1) (a))                                   
      17) Does the narrative provide an                                       
      explanation of the significance of the cash                             
      flow "cross-over points" where cash outflows                            
      begin exceeding cash inflows? (SFFAS 17,                                
      par. 27 (1) (a))                                                        
      18) Do the cash flow projections (net of                                
      interest on intragovernmental                                           
      borrowing/lending) for Social Security                                  
      (OASDI) and Medicare Part A (HI) include an                             
      estimate of cash flows as a percentage of                               
      taxable payroll? (SFFAS 17, par. 27 (1) (b))                            
      19) Do the cash flow projections (net of                                
      interest on intragovernmental                                           
      borrowing/lending) for OASDI, HI, and                                   
      Medicare Parts B and D (SMI) include an                                 
      estimate of cash flows as a percentage of                               
      gross domestic product? (SFFAS 17, par. 27                              
      (1) (b))                                                                
      20) For OASDI and HI programs, does the                                 
      entity's cash flow information show its                                 
      estimate of the ratio of the number of                                  
      contributors to the number of beneficiaries                             
      during the same projection period as for                                
      cash flow projections (commonly called the                              
      "dependency ratio")? (SFFAS 17, par. 27 (2);                            
      OMB Circular No. A-136, p. 135, section                                 
      II.4.12.4)                                                              
      21) Is the ratio of contributors to                                     
      beneficiaries for OASDI and HI reported for                             
      the beginning and end of the projection                                 
      period? (SFFAS 17, par. 27 (2))                                         
      22) For all social insurance programs except                            
      UI, does the responsible entity illustrate                              
      the sensitivity of the projections of cash                              
      flows and actuarial present values to                                   
      changes in the most significant individual                              
      assumptions? (SFFAS 17, par. 27 (4) (a),                                
      SFFAS 26, par. 5; OMB Circular No. A-136, p.                            
      135, section II.4.12.4)                                                 
      23) Do the Social Security and Medicare                                 
      programs analyze assumptions regarding                                  
      factors for                                                             
                                                                              
              a) birth and death rates,                                       
              b) net immigration,                                             
              c) real wage differential,^63 and                               
              d) real interest rate?                                          
                                                                              
      (SFFAS 17, par. 27 (4) (a))                                             
      24) Are the health care cost factors and                                
      their trend analyzed for the Medicare                                   
      program? (SFFAS 17, par. 27 (4) (a))                                    
      25) Does the sensitivity analysis for UI                                
      programs show the effects of increasing the                             
      unemployment rate                                                       
                                                                              
              a) by approximately one percentage                              
              point, and                                                      
              b) to a level sufficient enough to                              
              put stress on the system (e.g., to                              
              simulate the largest recession                                  
              occurring within the last 25 years)?                            
                                                                              
      (SFFAS 17, par. 27 (4) (b), SFFAS 26, par.                              
      5; OMB Circular No. A-136, p. 135, section                              
      II.4.12.4)                                                              
      26) Does information on the UI program                                  
      provide a state-by-state analysis                                       
      illustrating the relative solvency of                                   
      individual state programs, including the                                
      ratio of each state's current accumulated                               
      fund balance to a year's projected benefit                              
      payments based on the highest level of                                  
      annual benefit payments experienced by that                             
      state over the last 20 years? (SFFAS 17,                                
      par. 27 (5); OMB Circular A-136, p. 135,                                
      section II.4.12.4)                                                      

^63 The real-wage differential is the difference between the annual
percentage increase in wages in covered employment and the inflation rate,
as measured by the CPI.

           Statement of Budgetary Resources          Yes, No, or              
                                                         N/A      Explanation 
                    (Items 27 - 28)                                           
Budgetary information aggregated for purposes of the SBR is disaggregated
for each of the reporting entity's major budget accounts and presented as
RSI. (OMB Circular No. A-136, p. 129, section II.4.12.5)
      27) Is budgetary information disaggregated for                          
      each of the reporting entity's major budget                             
      accounts and presented as RSI? (SFFAS 7, par.                           
      78; OMB Circular No. A-136, p. 135, section                             
      II.4.12.5)                                                              
      28) Do the major accounts and the aggregate of                          
      small budget accounts, in total, agree with                             
      the amounts reported on the face of the SBR?                            
      (OMB Circular No. A-136, p. 135, section                                
      II.4.12.5)                                                              

            Statement of Custodial Activity           Yes, No, or             
                                                          N/A     Explanation 
                    (Items 29 - 30)                                           
Entities that collect taxes and duties provide information on potential
collections and custodial responsibilities as RSI. (OMB Circular No.
A-136, p. 129, section II.4.12.6)                  
      29) Do entities that collect taxes and duties                           
      provide RSI relating to their potential revenue                         
      and custodial responsibilities that includes                            
                                                                              
              a) the estimated realizable value, as                           
              of the end of the reporting period, of                          
              compliance assessments and, if                                  
              reasonably estimable, pre-assessment                            
              work in process, based on management's                          
              best estimate that is appropriately                             
              identified as to their reliability,                             
              b) other claims for refunds not yet                             
              accrued but likely to be paid when                              
              administrative action is complete,                              
              based on management's best estimates,                           
              c) amount of assessments written-off                            
              (i.e., no further collection potential)                         
              that continues to be statutorily                                
              collectable, and                                                
              d) amounts by which trust funds may be                          
              overfunded or underfunded in comparison                         
              with the requirements of the law?                               
                                                                              
      (SFFAS 7, par. 67; OMB Circular No. A-136, pp.                          
      135-136, section II.4.12.6)                                             
      30) If the entity receiving funds from the                              
      collecting entity is itself a trust fund, does                          
      it provide as supplementary information amounts                         
      by which related trust funds may be overfunded                          
      or underfunded in comparison with the                                   
      requirements of the law? (SFFAS 7, par. 68; OMB                         
      Circular No. A-136, p. 136, section II.4.12.6)                          

        Risk Assumed Information (Items 31 - 33)       Yes, No or Explanation 
                                                          N/A                 
Risk-assumed information is generally measured by the present value of
unpaid expected losses net of associated premiums based on the risk
inherent in the insurance or guarantee coverage in force. (SFFAS 5, par.
105 & 106; OMB Circular No. A-136, p. 136, section II.4.12.7)
      31) Does the entity include as RSI the current                          
      amount and periodic changes of "risk assumed"                           
      arising from insurance and guarantee programs?                          
      (SFFAS 5, par. 105, 106, 110; SFFAS 25, par. 2;                         
      OMB Circular No. A-136, p. 136, section                                 
      II.4.12.7)                                                              
      32) Does the entity also report under RSI the                           
      indicators of the range of uncertainty around                           
      insurance-related estimates and sensitivity of                          
      the estimates to changes in major assumptions?                          
      (SFFAS 5, par. 114; SFFAS 25, par.4)                                    
      33) Does the entity report under RSI the major                          
      assumptions and "risks assumed" (i.e., the                              
      present value of unpaid expected losses net of                          
      associated premiums based on risk inherent in                           
      the insurance or guarantee coverage) for all                            
      sponsored insurance programs (except for social                         
      insurance, life insurance, and loan guarantee                           
      programs)? (SFFAS 5, par. 105 & 106; SFFAS 25,                          
      par. 4)                                                                 

  Section VIII - Other Accompanying Information

The questions related to the unaudited other accompanying information
(OAI) requirements are presented under six captions. The question numbers
related to each caption are identified below.

Caption                                            Question Numbers 
Revenue Forgone                                           1         
Tax Burden/Tax Gap                                        2         
Tax Expenditures with Directed Flow of Resources          3         
Management Challenges                                     4         
Improper Payments Information Act (IPIA)                  5         
Other Agency-specific Statutorily Required Reports        6         

              Other Accompanying Information             Yes, No,             
                                                          or N/A  Explanation 
                       (Items 1 - 6)                                          
Other Accompanying Information includes such items as revenue foregone,
tax burden/tax gap, tax expenditure with directed flow of resources, and
management challenges. (OMB Circular No. A-136, p. 14, section II.1.2)
                                Revenue Foregone         
      1) Does the entity disclose differences between                         
      the prices it charges in exchange transactions and                      
      full cost or market price?                                              
                                                                              
      If so, does the entity provide an estimate of the                       
      amount of revenue foregone and explain whether,                         
      and to what extent, the quantity demanded was                           
      assumed to change as a result of a difference in                        
      price?                                                                  
                                                                              
      (OMB Circular No. A-136, p. 137, section II.5.2)                        
                               Tax Burden/Tax Gap        
      2) Does the tax collecting entity present                               
                                                                              
              a) a perspective on the income tax burden                       
              such as a summary of the latest available                       
              information on the income tax and on                            
              related income, deductions, exemptions,                         
              and credits for individuals by income                           
              level and for corporations by value of                          
              assets, and                                                     
              b) available information on the size of                         
              the tax gap, including any relevant                             
              estimates of the annual tax gap that                            
              become available as a result of federal                         
              surveys or studies?                                             
                                                                              
      (SFFAS 7, par. 69.1 & 69.2; OMB Circular No.                            
      A-136, p. 137, section II.5.3)                                          
                Tax Expenditures with Directed Flow of Resources
      3) Does the entity having tax expenditures with a                       
      directed flow of resources disclose information on                      
                                                                              
              a) tax expenditures relevant to entity                          
              performance, which is appropriately                             
              described, explained, and qualified, and                        
              b) directed flows of resources which are                        
              appropriately described, explained, and                         
              qualified?                                                      
                                                                              
      (SFFAS 7, par. 69.3 & 69.4; OMB Circular No.                            
      A-136, p. 138, section II.5.4)                                          
                             Management Challenges       
      4) Does the PAR include                                                 
                                                                              
              a) a statement prepared by the entity's                         
              Inspector General (IG) summarizing what                         
              the IG considers to be the most serious                         
              management and performance challenges                           
              facing the entity and briefly assesses the                      
              entity's progress in addressing those                           
              challenges, and                                                 
              b) the entity head's response to IG's                           
              management challenges statement?                                
                                                                              
      (OMB Circular No. A-136, p. 138, section II.5.5)                        
               Improper Payments Information Act (IPIA) Reporting
      5) Does the entity disclose for IPIA                                    
                                                                              
              a) description of the risk assessment(s),                       
              performed subsequent to completing its                          
              full program inventory, including a list                        
              of the risk-susceptible programs (i.e.,                         
              programs that have a significant risk of                        
              improper payments) identified through its                       
              risk assessments and the programs                               
              previously identified in the former                             
              Section 57 of OMB Circular No. A-11,                            
              b) description of the statistical sampling                      
              process conducted to estimate the improper                      
              payment rate for each program identified,                       
              c) description of corrective action plans                       
              for:                                                            
                                                                              
                      i) reducing the estimated rate of                       
                      improper payments, including what                       
                      is seen as the cause(s) of errors,                      
                      corresponding steps necessary to                        
                      prevent future occurrences, and                         
                      efforts to prevent such                                 
                      occurrences, and                                        
                      ii) grant-making agencies with                          
                      risk susceptible grant programs,                        
                      including a discussion of what the                      
                      entity has accomplished in                              
                      stewardship of funds past the                           
                      primary recipient, status of                            
                      projects, and results of reviews.                       
                                                                              
              d) table that includes                                          
                                                                              
                      i) all risk susceptible programs,                       
                      ii) the date by which a                                 
                      measurement is expected where no                        
                      measurement is provided,                                
                                                                              
                      iii) baseline measurement year,                         
                      iv) separation of amounts for                           
                      newly established measurement                           
                      components and previously                               
                      established measurement                                 
                      components,                                             
                      v) outlay estimates for the                             
                      current plus 3 years,                                   
                      vi) current year activity but if                        
                      not feasible, then prior year                           
                      activity, and                                           
                      vii) future year outlay estimates                       
                      (current year plus 3 years) should                      
                      match the outlay estimates for                          
                      those years as reported in the                          
                      most recent President's Budget.                         
                                                                              
              e) discussion of recovery auditing effort,                      
              if applicable, to include                                       
                                                                              
                      i) any contract types excluded                          
                      from review and the justification                       
                      for doing so, and                                       
                      ii) actions taken to recoup                             
                      improper payments, business                             
                      process changes, and internal                           
                      controls instituted and/or                              
                      strengthened to prevent further                         
                      occurrences.                                            
                                                                              
              f) table which includes                                         
                                                                              
                      i) entity component,                                    
                      ii) amount subject to review for                        
                      current year reporting,                                 
                      iii) actual amount reviewed and                         
                      reported,                                               
                      iv) amounts identified for                              
                      recovery,                                               
                      v) amounts recovered in the                             
                      current year, and                                       
                      vi) amounts recovered in prior                          
                      years.                                                  
                                                                              
              g) description of the steps the entity has                      
              taken and plans to take (including time                         
              line) to reduce and recover improper                            
              payments,                                                       
              h) description of whether the entity                            
                                                                              
                      i) has the information systems and                      
                      infrastructure it needs to reduce                       
                      improper payments, or                                   
                      ii) a description of the resources                      
                      requested in the most recent                            
                      budget submission to obtain the                         
                      necessary information systems and                       
                      infrastructure.                                         
                                                                              
              i) description of                                               
                                                                              
              i) statutory or regulatory barriers that                        
              may limit the entity's corrective actions                       
              in reducing improper payments, and                              
                                                                              
              ii) actions taken by the entity to                              
              mitigate the barriers' effects, and                             
                                                                              
              j) additional comments on overall efforts,                      
              specific programs, best practices, or                           
              common challenges identified, as a result                       
              of IPIA implementation?                                         
                                                                              
      (OMB Circular No. A-136, pp. 138-141, section                           
      II.5.6)                                                                 
               Other Agency-specific Statutorily Required Reports
      6) Does the entity disclose other agency-specific                       
      statutorily required reports pertaining to                              
      financial or performance management based on                            
      consultation with OMB and the Congress? (OMB                            
      Circular No. A-136, p. 142, section II.5.7)                             

                     [This page intentionally left blank.]

June 29, 2007

TO AUDIT OFFICIALS, AGENCY CFOS, AND OTHERS INTERESTED IN

FEDERAL FINANCIAL AUDITING, ACCOUNTING, AND REPORTING

This letter transmits an exposure draft of Volume III of the Government
Accountability Office (GAO) and the President's Council on Integrity and
Efficiency (PCIE) Financial Audit Manual (FAM) for your review and
comment. GAO and PCIE issued the joint FAM in July 2001. The FAM presents
a methodology to perform financial statement audits of federal entities in
accordance with professional standards. It is now time to update the FAM
for significant changes that have occurred in auditing financial
statements in the federal government since the last major revisions to the
FAM were issued in July 2004.

To help the FAM continue to meet the needs of the federal audit community
and the public it serves, GAO and the PCIE created a joint FAM Working
Group. The Group is comprised of auditors from GAO and several Offices of
the Inspectors General experienced in conducting audits of federal entity
financial statements. Through a collaborative effort, the FAM Working
Group has prepared an exposure draft of a new FAM Volume III that contains
accounting, reporting, and disclosure checklists.

The checklists are intended to assist federal entities and their auditors
in documenting financial statement conformity with professional standards.
We invite your comments on the accompanying exposure draft of FAM Volume
III. We are also working on revisions to FAM Volumes I and II, which
contain the audit methodology. We plan to issue exposure drafts for public
comment on these volumes later this year.

The revisions to the FAM are primarily due to changes in (1) professional
auditing and attestation standards of the Auditing Standards Board of the
American Institute of Certified Public Accountants (AICPA); (2) GAO's
Government Auditing Standards; (3) Office of Management and Budget (OMB)
audit and reporting guidance; (4) Federal Accounting Standards Advisory
Board (FASAB) accounting standards; and (5) laws and regulations.

Summary of Major Revisions and Improvements for FAM Volume III

The exposure draft of FAM Volume III incorporates FASAB accounting
concepts and standards issued through May 31, 2007, including new
requirements in accounting, reporting, and disclosure for social
insurance, heritage assets and stewardship land, and earmarked funds. It
also includes financial reporting guidance provided by OMB Circular No.
A-136, Financial Reporting Requirements, (July 24, 2006).^1 Additionally,
FAM Volume III has been revised to improve efficiency and includes two
checklists as follows:

FAM 2010 - Federal Accounting Checklist

FAM 2020 - Federal Reporting and Disclosure Checklist

These checklists are tools that may be used by entities and auditors to
document conformity with U.S. generally accepted accounting principles
(U.S. GAAP). The use of these checklists is a policy decision to be made
by each organization. However, auditors should document the alternative
means for determining whether the entity's financial statements conform
with U.S. GAAP. Major changes to improve efficiency are:

           o Two checklists have been created to spread completion and review
           work over the entire audit period, rather than performing all of
           this work at year end. Previously, FAM 1050 included all of this
           information in one checklist that created a difficult process to
           complete at the end of the audit. The new FAM 2010 contains
           questions on federal accounting that entities may complete during
           the year and auditors may review as part of interim audit work.
           The new FAM 2020 contains questions on year end reporting and
           disclosure that entities may complete when they prepare their
           annual financial statements and auditors may review during the
           reporting phase of the audit.
           o Only those sections of the detailed checklists that are
           applicable to the entity's financial statements need detailed
           completion. Those areas that are not applicable or not significant
           are simply documented one time, thus eliminating the need to read
           and evaluate each individual question.
           o The checklists are better organized, with accounting issues
           grouped by line item and reporting and disclosure issues grouped
           by statement, footnote, and other required supplemental
           disclosures to reduce overlap and duplication.

When issued in final form, FAM Volume III will supersede FAM 1050,
Checklist for Federal Accounting, Reporting, and Disclosures (July 2004).
We anticipate that, when finalized, FAM Volume III will be available for
use in preparing and auditing financial statements for the fiscal year
ended September 30, 2007.

Instructions for Commenting on Exposure Draft

The exposure draft of FAM Volume III is available only in electronic form
and can be downloaded from GAO's Web Page at
[147]http://www.gao.gov/special.pubs/gaopcie/ . We are requesting comments
from federal audit officials, CFOs, financial managers, the public
accounting profession, and other interested parties. Please associate your
comments with specific references to section, page, and question number.
Also, please provide the rationale for your comments and proposed changes,
along with suggested revised language. Please send your comments
electronically to [148][email protected] no later than July 30, 2007.

^1 A-136 is currently under revision and changes to FAM Volume III may be
made after A-136 is issued.

In addition, we are interested in your response to the following four
questions:

           1. Does the format of the two checklists make it easier for
           preparers and auditors to determine that financial statements
           comply with U.S. GAAP?
           2. Does the revised format lead to more efficient preparation and
           review?
           3. How can these tools be improved to make them more effective and
           efficient?
           4. Do the checklists accurately capture the significant
           requirements, especially the recent changes?

You may click on the attached link at
[149]http://www.gao.gov/special.pubs/gaopcie/famcomment.htm to respond.

Should you need additional information, please call GAO's Financial
Management and Assurance Assistant Directors Roger Stoltz at (202)
512-9408, or Janet Krell at (202) 512-4716, Director Steve Sebastian at
(202) 512-9521, or PCIE Working Group Leaders Alex Biggs at (202)
693-5258, or Joel Grover at (202) 927-5768.

Sincerely yours,

Jeffrey C. Steinhoff The Honorable John P. Higgins

Managing Director Chairman, Audit Committee

Financial Management and Assurance President's Council on Integrity

U.S. Government Accountability Office and Efficiency

Enclosures

                     [This page intentionally left blank.]

                 United States Government Accountability Office

                President's Council on Integrity and Efficiency

                             FINANCIAL AUDIT MANUAL

                                   Volume III

                    2010 - Checklist for Federal Accounting

Contents

Abbreviations.....................................................................................ii
2010            -             Checklist            for             Federal
Accounting..........................................1
Section                                I                                 -
Overview............................................................................................................1
Section           II            -            General            Accounting
Item................................................................................7
Section                               III                                -
Assets...............................................................................................................8
Section                                IV                                -
Liabilities.......................................................................................................53
Section       V       -        Net       Position       and        Related
Changes..............................................................67
Section                    VI                    -                     Net
Cost.........................................................................................................76
Section                  VII                  -                  Budgetary
Resources................................................................................106
Section                 VIII                  -                  Custodial
Activity.....................................................................................108
Section      IX      -       Required      Supplementary       Stewardship
Information..............................114
Section                   X                    -                    Social
Insurance...........................................................................................118
Section                   XI                   -                    Credit
Reform.............................................................................................120

Abbreviations

AcSEC   Accounting Standards Executive Committee                
AICPA   American Institute of Certified Public Accountants      
CFO Act Chief Financial Officers Act of 1990                    
CSRS    Civil Service Retirement System                         
FASAB   Federal Accounting Standards Advisory Board             
FASB    Financial Accounting Standards Board                    
FDIC    Federal Deposit Insurance Corporation                   
FERS    Federal Employees Retirement System                     
FFMIA   Federal Financial Management Improvement Act of 1996    
FHA     Federal Housing Administration                          
FIFO    First-In, First-Out (method of inventory valuation)     
FMFIA   Federal Managers' Financial Integrity Act of 1982       
GAAP    (U.S.) Generally Accepted Accounting Principles         
GAAS    (U.S.) Generally Accepted Auditing Standards            
GAGAS   (U.S.) Generally Accepted Government Auditing Standards 
GASB    Government Accounting Standards Board (state & local)   
GMRA    Government Management Reform Act of 1994                
GPRA    Government Performance and Results Act of 1993          
GSE     Government Sponsored Enterprise                         
HI      Hospital Insurance (Medicare Part A)                    
IMF     International Monetary Fund                             
IPIA    Improper Payments Information Act                       
MD&A    Management's Discussion and Analysis                    
MRS     Military Retirement System                              
OAI     Other Accompanying Information                          
OASDI   Old Age, Survivors, and Disability Insurance            
OMB     Office of Management and Budget                         
OPEB    Other Post Employment Benefits                          
ORB     Other Retirement Benefits                               
PP&E    Property, Plant, and Equipment                          
RRB     Railroad Retirement Benefits                            
RSI     Required Supplementary Information                      
RSSI    Required Supplementary Stewardship Information          
SBR     Statement of Budgetary Resources                        
SCNP    Statement of Change in Net Position                     
SFAS    Statement of Financial Accounting Standards             
SFFAC   Statements of Federal Financial Accounting Concepts     
SFFAS   Statements of Federal Financial Accounting Standards    
SMI     Supplementary Medical Insurance (Medicare Part B & D)   
SNC     Statement of Net Cost                                   
SOP     Statement of Position                                   
SOSI    Statement of Social Insurance                           
TVA     Tennessee Valley Authority                              
UI      Unemployment insurance                                  
UTF     Unemployment Trust Fund                                 

2010 - Checklist for Federal Accounting

  Section I - Overview

Introduction

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

The previous checklist, FAM 1050, Checklist for Federal Accounting,
Reporting, and Disclosures (July 2004), included guidance for accounting,
reporting, and disclosures. This checklist has been revised and is
separated into two separate checklists: FAM 2010, Checklist for Federal
Accounting and FAM 2020, Checklist for Federal Reporting and Disclosures.
FAM 2010 provides guidance for federal accounting that entities may
complete during the year and auditors may review the completed checklist
during interim audit work. FAM 2020 provides guidance for year end
reporting and disclosure that entities may complete when they prepare
their annual financial statements and auditors may review the completed
checklist during the reporting phase of the audit.

These checklists are being issued to assist (i) federal entities in
preparing their financial statements in accordance with U.S. GAAP, and
(ii) auditors in auditing them in accordance with U.S. generally accepted
government auditing standards (GAGAS). Neither the entities nor the
auditors are required to use this checklist and may develop their own
checklists. However, entities should document how they are satisfied that
their financial statements conform with U.S. GAAP. Likewise, auditors
should document the basis for accepting that the entity's financial
statements conform with U.S. GAAP if they do not use the checklist.

The checklist provides a systematic, organized, and structured approach to
preparing or reviewing federal entity financial statements. While the
questions contained in the checklist are taken from authoritative sources,
the checklist itself is not authoritative, nor is it comprehensive.
Preparers and auditors may also consult financial management regulations
and policies for their individual entity, as these regulations and
policies may have guidance when standards allow alternatives or management
flexibility, such as for property capitalization limits.

Checklist Organization

In order to facilitate the completion of the checklist, an index of
relevant accounting requirements is included in the following section. The
preparer uses the index to determine those areas that apply to the entity.
The checklist is divided into 10 sections as follows

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

Section II - General Accounting Item                        
Section III - Assets                                        
Section IV - Liabilities                                    
Section V - Net Position and Related Changes                
Section VI - Net Cost                                       
Section VII - Budgetary Resources                           
Section VIII - Custodial Activity                           
Section IX - Required Supplementary Stewardship Information 
Section X - Social Insurance                                
Section XI - Credit Reform                                  

Authoritative Guidance

Each question in this guide is referenced to a source. The sources cited
are (1) Federal Accounting Standards Advisory Board (FASAB) Statements of
Federal Financial Accounting Concepts (SFFAC), (2) FASAB Statements of
Federal Financial Accounting Standards (SFFAS), and (3) OMB Circular No.
A-136, Financial Reporting Requirements.

Because this checklist is for the federal entity reporting level, and is
not for the financial report of the U.S. government, certain sources are
excluded.

The four approved accounting concept statements and year they were issued
are:

SFFAC 1, Objectives of Federal Financial Reporting, 1993

SFFAC 2, Entity and Display, 1995

SFFAC 3, Management's Discussion and Analysis, 1999

SFFAC 4, Intended Audience and Qualitative Characteristics for the
Consolidated Financial Report of the United States Government, 2003 (Not
covered by this checklist)

The 32 SFFAS standards and year they were issued are:

SFFAS 1, Accounting for Selected Assets and Liabilities, 1993

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

SFFAS 3, Accounting for Inventory and Related Property, 1993

SFFAS 4, Managerial Cost Accounting Standards and Concepts, 1995

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

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

SFFAS 7, Accounting for Revenue and Other Financing Sources and Concepts
for Reconciling Budgetary and Financial Accounting, 1996

SFFAS 8, Supplementary Stewardship Reporting, 1996

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

SFFAS 10, Accounting for Internal Use Software, 1998

SFFAS 11, Amendments to Accounting for Property, Plant, and Equipment -
Definitional Changes, 1998^2

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

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

SFFAS 14, Amendments to Deferred Maintenance Reporting, 1999

SFFAS 15, Management's Discussion and Analysis, 1999

SFFAS 16, Amendments to Accounting for Property, Plant, and Equipment -
Measurement and Reporting for Multi-Use Heritage Assets, 1999^3

SFFAS 17, Accounting for Social Insurance, 1999

SFFAS 18, Amendments to Accounting Standards for Direct Loans and Loans
Guarantees in SFFAS No. 2, 2000

SFFAS 19, Technical Amendments to Accounting Standards for Direct Loans
and Loan Guarantees in SFFAS No. 2, 2001

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

SFFAS 21, Reporting Corrections of Errors & Changes in Accounting
Principles, 2001

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

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

SFFAS 24, Selected Standards for the Consolidated Report of the United
States Government, 2003 (Not covered by this checklist)

SFFAS 25, Reclassification of Stewardship Responsibilities and Eliminating
the Current Services Assessment, 2003^4

SFFAS 26, Presentation of Significant Assumptions for the Statement of
Social Insurance, 2004

SFFAS 27, Identifying and Reporting Earmarked Funds, 2004

SFFAS 28, Deferral of the Effective Date of Reclassification of the
Statement of Social Insurance, 2005

SFFAS 29, Heritage Assets and Stewardship Land, 2005

SFFAS 30, Inter-Entity Cost Implementation, 2005

SFFAS 31, Accounting for Fiduciary Activities, 2006

SFFAS 32, CFR of the U.S. Government Requirements, 2006 (Not covered by
this checklist)

^2 SFFAS 11 was rescinded in its entirety by SFFAS 23.

^3 SFFAS 16 was rescinded in its entirety by SFFAS 29.

^4  SFFAS  25   changes  reporting  requirements   for  social   insurance
information required by SFFAS 17.

Also included in this checklist is FASAB's Implementation Guide to
Accounting for Revenue and Other Financing Sources, (June 1996), and OMB
Circular No. A-136, Financial Reporting Requirements, (July 24, 2006),
that provides detailed requirements for the form and content of entity
financial statements.

FASAB interpretations and technical bulletins are not covered in this
checklist; consult this material as necessary for guidance on specific
situations. Furthermore, preparers and auditors should document how the
entity complied with any new standards issued after SFFAS 32.

      How to Use the Index to the Checklist

The preparer completes the index to FAM 2010, Checklist for Federal
Accounting prior to completing the detailed checklist. For each category
of accounting considerations listed in the index on the next two pages,
the preparer indicates whether it is either applicable (Y) to the entity's
financial statements, or is not applicable (NA). Complete only those
sections of the detailed checklist that are applicable to the entity's
financial statements. If the entity has an insignificant amount of
transactions or balances for a section, it may decide not to complete that
section. It may document that decision by indicating "not significant"
(NS). Those areas that are not applicable or not significant are not
considered further, thus eliminating the need to read and evaluate each
individual question. For example, many federal agencies do not administer
loan, loan guarantee, or loan insurance programs and, therefore, do not
have credit program receivables and related property. Consequently, the
questions on these receivables, property, and subsidies would not apply.

How to Use the Detailed Checklist

To the right of each question are two columns. The first column provides
for a "yes," "no," or "N/A" (not applicable) answer to each question. The
second column provides for an explanation of the answer to each question.

A "yes" answer indicates that the financial statements contain the
information asked by the question. This would include immaterial items if
the entity elected to disclose them. For each "yes" answer, include in the
explanation column the page number or location in the financial statements
where the information is found. Also, provide any other information
pertinent to the question and the response in the explanation column.

A "no" answer indicates that the information asked for in the question is
not included in the financial statements, notes, or supplementary
information, respectively. This would include immaterial items that need
not be disclosed. Describe in the explanation column or footnote why the
information is not included and whether this causes the financial
statements to not be in conformity with U.S. GAAP.

An "N/A" answer might indicate that the question does not apply to the
federal entity. Describe in the explanation column or footnote why this
information is not applicable.

Completion and Review of the Checklists

Preparers of entity financial statements may complete the checklists to
document that applicable accounting, reporting, and disclosure items have
been addressed, including those contained in OMB Circular No. A-136.
Auditors generally should then review the checklists for completeness and
accuracy.

Index to the Checklist

                                                        Applicable (Y), Not   
                                                      Applicable (NA), or Not 
Page No.         Accounting Considerations            Significant (NS)     
      7     Section II - General Accounting Item                              
      8     Section III - Assets                                              
      9     Fund Balance with Treasury                                        
      11    Investments                                                       
      12    Accounts Receivable                                               
      16    Interest Receivable                                               
      17    Cash and Other Monetary Assets                                    
      18    Inventory                                                         
      22    Operating Materials and Supplies                                  
      25    Stockpile Materials                                               
      27    Seized Property                                                   
      28    Forfeited Property                                                
      31    Goods Held Under Price Support and                                
            Stabilization Programs                                            
      34    General Property, Plant, and Equipment                            
            (Net)                                                             
      46    Software                                                          
      52    Other Assets                                                      
      53    Section IV - Liabilities                                          
      54    Liabilities in General                                            
      56    Accounts Payable and Interest Payable                             
      57    Capital Lease Liabilities                                         
      58    Federal Debt and Related Interest                                 
      60    Pensions, Other Retirement Benefits, and                          
            Postemployment Benefits                                           
      61    Other Liabilities                                                 
      67    Section V - Net Position and Related                              
            Changes                                                           
      68    Unexpended Appropriations & Cumulative                            
            Results of Operation                                              
      69    Budgetary Financing Sources                                       
      72    Other Financing Sources                                           
      74    Earmarked Funds                                                   
      76    Section VI - Net Cost                                             
      77    Cost Accounting                                                   
      87    Revenues                                                          
      90    Pensions, Other Retirement, and                                   
            Postemployment Benefit Costs                                      
      96    Inventory, Materials, Supplies, and                               
            Commodities Costs                                                 
      98    Property, Plant, and Equipment Costs                              
     101    Clean-up Costs                                                    
     103    Interest Costs                                                    
     104    Insurance and Subsidies Costs                                     
     106    Section VII - Budgetary Resources                                 
     108    Section VIII - Custodial Activity                                 
     114    Section IX - Required Supplementary                               
            Stewardship Information                                           
     118    Section X - Social Insurance                                      
     120    Section XI - Credit Reform                                        

  Section II -  General Accounting Item

This question relates to overall general accounting at the entity.

                    General Item (1)                  Yes, No, or Explanation 
                                                          N/A                 
      1) Does the entity use the following hierarchy                          
      as its source of guidance                                               
                                                                              
              a) FASAB Statements and Interpretations                         
              as well as AICPA and FASB                                       
              pronouncements if made applicable to                            
              federal government entities by a FASAB                          
              Statement or Interpretation,                                    
              b) FASAB Technical Bulletins and, if                            
              specifically made applicable to federal                         
              government entities by AICPA and                                
              cleared by FASAB, AICPA Industry Audit                          
              and Accounting Guides, and AICPA                                
              Statements of Position,                                         
              c) AICPA Accounting Standards Executive                         
              Committee (AcSEC) Practice Bulletins if                         
              specifically made applicable to federal                         
              government entities and cleared by                              
              FASAB, as well as Technical Releases of                         
              the Accounting and Auditing Policy                              
              Committee of FASAB,                                             
              d) Implementation guides published by                           
              FASAB staff and practices that are                              
              widely recognized and prevalent in the                          
              federal government, and                                         
              e) In the absence of a pronouncement                            
              covered by federal U. S. Generally                              
              Accepted Accounting Principles (U.S.                            
              GAAP) or another source of established                          
              principles, other accounting                                    
              literature, depending on its relevance                          
              in the circumstances?^5 (OMB Circular                           
              No. A-136, p. 29, item1)                                        

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

  Section III -  Assets

Questions related to accounting for assets in federal financial statements
are presented under the following captions.

Caption                                                   Question Numbers 
Fund Balance with Treasury                                     1 - 6       
Investments                                                    7 - 10      
Accounts Receivable                                           11 - 25      
Interest Receivable                                           26 - 29      
Cash and Other Monetary Assets                                30 - 31      
Inventory                                                     32 - 53      
Operating Materials and Supplies                              54 - 64      
Stockpile Materials                                           65 - 75      
Seized Property                                               76 - 82      
Forfeited Property                                            83 - 95      
Goods Held Under Price Support and Stabilization Programs     96 - 107     
General Property, Plant, and Equipment (Net)                 108 - 152     
Software                                                     153 - 180     
Other Assets                                                 181 - 183     

        Fund Balance with Treasury (1 - 6)        Yes, No, or    Explanation  
                                                      N/A                     
A federal entity's fund balance with the Treasury is the aggregate amount
of funds in the entity's accounts with Treasury for which the entity is
authorized to make expenditures and pay liabilities. Fund balance with
Treasury includes clearing account balances and the dollar equivalent of
foreign currency account balances. For the reporting entity, a fund
balance with Treasury is an asset but for Treasury it is a liability. From
the perspective of the federal government as a whole, the fund balance is
neither an asset nor a liability as it eliminates in consolidation.
However, it represents a commitment from the Treasury to make resources
available to federal departments, agencies, programs, and other entities.
(SFFAS 1, par. 31 & 32)                       
      1) Does fund balance with Treasury include                              
                                                                              
              a) clearing account balances,                                   
              b) balances for direct loan and                                 
              loan guarantee activities held in                               
              the credit reform program,                                      
              financing, and liquidating                                      
              accounts,                                                       
              c) funds actually borrowed from                                 
              Treasury under statutory                                        
              authority, and                                                  
              d) the dollar equivalent of                                     
              foreign currency account balances?                              
                                                                              
      (SFFAS 1, par. 32 & 35)                                                 
      2) Are foreign currency account balances                                
      reported on the balance sheet translated                                
      into U.S. dollars at exchange rates                                     
      determined by the Treasury and effective                                
      at the financial reporting date? (SFFAS 1,                              
      par. 32)                                                                
      3) Does fund balance with Treasury exclude                              
      contract authority^6 or unused authority                                
      to borrow? (SFFAS 1, par. 34)                                           
      4) Does the entity record an increase in                                
      its fund balance with Treasury when it                                  
                                                                              
              a) receives appropriations,                                     
              reappropriations, continuing                                    
              resolutions, appropriation                                      
              restorations, and allocations,                                  
              b) redeems investments in U.S.                                  
              securities,                                                     
              c) receives transfers and                                       
              reimbursements from other                                       
              agencies,                                                       
              d) borrows from the Treasury,                                   
              Federal Financing Bank, or other                                
              entities, and                                                   
              e) collects and credits amounts to                              
              its appropriations or fund                                      
              accounts that the entity is                                     
              authorized to spend or use to                                   
              offset its expenditures?                                        
                                                                              
      (SFFAS 1, par. 33)                                                      
      5) Does the entity record a decrease in                                 
      its fund balance with Treasury when it                                  
                                                                              
              a) disburses to pay liabilities or                              
              to purchase assets, goods, and                                  
              services,                                                       
              b) invests in U.S. securities,                                  
              c) cancels expired appropriations,                              
              d) makes transfers and                                          
              reimbursements to other entities                                
              or to the Treasury, and                                         
              e) cancels appropriations through                               
              sequestration or rescission?                                    
                                                                              
      (SFFAS 1, par. 36)                                                      
      6) Are unexpended appropriations                                        
      recognized as capital and included under                                
      fund balance with Treasury when they are                                
      made available for apportionment? (SFFAS                                
      7, par. 71)                                                             

^6 Contract authority is  a statutory authority  under which contracts  or
other obligations may be entered into prior to receiving an  appropriation
for the payment of obligations.

               Investments (7 - 10)              Yes, No, or    Explanation   
                                                     N/A                      
Investments in federal (i.e., Treasury) securities include (1)
nonmarketable par value Treasury securities, (2) market-based Treasury
securities expected to be held to maturity, (3) marketable Treasury
securities expected to be held to maturity, and (4) securities issued by
other federal entities. Nonfederal securities include those issued by
state and local governments, private corporations, and
government-sponsored enterprises. (SFFAS 1, par. 62)
      7) Are investments in federal securities                                
      initially recorded at their acquisition                                 
      cost or amortized acquisition cost (less                                
      an allowance for losses, if any)? (SFFAS                                
      1, par. 68 & 69)                                                        
      8) Are investments in federal securities                                
      acquired in exchange for nonmonetary                                    
      assets recognized at the fair market                                    
      value of either the securities acquired                                 
      or the assets given up, whichever is more                               
      definitively determinable? (SFFAS 1, par.                               
      68)                                                                     
      9) Subsequent to acquisition, is the                                    
      carrying amount (i.e., acquisition cost)                                
      of investments in federal securities,                                   
      adjusted for amortized premium or                                       
      discount? (SFFAS 1, par. 70-71)                                         
      10) Is the interest method (i.e.,                                       
      effective interest rate multiplied by the                               
      carrying amount) used in amortizing the                                 
      premium or discount over the life of the                                
      Treasury security? (SFFAS 1, par. 71)                                   

            Accounts Receivable (11 - 25)           Yes, No, or  Explanation  
                                                        N/A                   
Accounts receivable arise from claims to  cash or other assets. (SFFAS  1,
par. 40)                                         
      11) Is a receivable recognized when a federal                           
      entity establishes a claim to cash or other                             
      assets against other entities based on legal                            
      provisions, or when goods or services are                               
      provided? (SFFAS 1, par. 41)                                            
      12) If the exact amount of a receivable is                              
      unknown, is a reasonable estimate made?                                 
      (SFFAS 1, par. 41)                                                      
      13) Are losses on receivables recognized when                           
      it is more likely than not (greater than a 50                           
      percent chance of occurrence) that the                                  
      receivables will not be totally collected?                              
      (SFFAS 1, par. 44)                                                      
      14) Is an allowance for estimated                                       
      uncollectible amounts recognized to reduce                              
      the gross amount of receivables to their net                            
      realizable value?                                                       
                                                                              
      If so, is this allowance reestimated on each                            
      annual financial reporting date and when                                
      information indicates that the latest                                   
      estimate is no longer correct?                                          
                                                                              
      (SFFAS 1, par. 45)                                                      
      15) Is an allowance for uncollectible amounts                           
      based on an analysis of both individual                                 
      accounts receivable and groups of accounts                              
      receivable? (SFFAS 1, par. 47-51; SFFAS 7,                              
      par. 56)                                                                
      16) Are accounts that represent significant                             
      amounts individually analyzed to determine                              
      the loss allowance? (SFFAS 1, par. 47)                                  
      17) Is a loss estimation for individual                                 
      accounts based on                                                       
                                                                              
              a) the debtor's ability to pay,                                 
              b) the debtor's payment record and                              
              willingness to pay, and                                         
              c) probable recovery of amounts from                            
              secondary sources including liens,                              
              garnishments, cross collections, and                            
              other applicable collection tools?                              
                                                                              
      (SFFAS 1, par. 47)                                                      
      18) If information is not available to make a                           
      reliable assessment of losses on an                                     
      individual account basis, or if the nature of                           
      the receivables does not lend itself to                                 
      individual account analysis, are the                                    
      potential losses assessed on a group basis?                             
      (SFFAS 1, par. 48)                                                      
      19) If potential losses are assessed on a                               
      group basis, are the receivables separated                              
      into groups of homogeneous accounts with                                
      similar risk characteristics? (SFFAS 1, par.                            
      49-51)                                                                  
      20) Is an account receivable arising from a                             
      nonexchange transaction recognized when a                               
      collecting entity establishes a specifically                            
      identifiable, measurable, and legally                                   
      enforceable claim to cash or other assets?                              
      (SFFAS 7, par. 53, footnote 9)                                          
      21) Are assessments recognized as accounts                              
      receivable if an enforceable claim for taxes                            
      and duties exists in instances where                                    
                                                                              
              a) tax returns are filed by the                                 
              taxpayer without sufficient payment,                            
              b) customs documents are filed by the                           
              importer without sufficient payment,                            
              c) taxpayer agreements to assessments                           
              are signed at the conclusion of an                              
              audit or where assessments substitute                           
              for a tax return,                                               
              d) importer agreements to                                       
              supplemental assessments are signed,                            
              e) court actions determine an                                   
              assessment,                                                     
              f) taxpayer (or importer) agreements                            
              to pay an assessment exist on an                                
              installment plan, and                                           
              g) receivables determined to be                                 
              currently not collectible have future                           
              collection potential?                                           
                                                                              
      (SFFAS 7, par. 53 & 54)                                                 
Entity receivables are amounts due from other federal or nonfederal
entities that the federal entity is authorized by law to include in its
obligational authority or to offset its expenditures and liabilities upon
collection. Nonentity receivables are amounts that the entity is to
collect on behalf of the federal government or other entities, and the
entity is not authorized to spend. (SFFAS 1, par. 43)
      22) Is an entity receivable recognized when                             
      (1) a legally enforceable claim exists                                  
      between a collecting entity and a recipient                             
      entity for the transfer or repayment of taxes                           
      or duties, and (2) payment of such a claim is                           
      probable and measurable? (SFFAS 7, par. 60)                             
      23) Are receivables distinguished between                               
      entity receivables and non-entity                                       
      receivables? (SFFAS 1, par. 43)                                         
Compliance assessments are proposed assessments by the collecting entity
in definitive amounts, but with which the taxpayer (or importer) still has
the right to disagree or object. (SFFAS 7, par. 55.A)
                                                    
Preassessment work-in-process are assessments not yet officially asserted
by the collecting entity that are subject to a taxpayer's right to
conference in response to initial information notices. (SFFAS 7, par.
55.B)                                            
                                                    
Compliance assessments and preassessment work-in-process are not accounts
receivable.                                      
      24) Do nonexchange-related accounts                                     
      receivable for taxes and duties exclude                                 
                                                                              
              a) amounts received or due with tax                             
              returns received after the close of                             
              the reporting period,                                           
              b) compliance assessments, and                                  
              c) preassessment work-in-process?                               
                                                                              
      (SFFAS 7, par. 54)                                                      
      25) Are compliance assessments reclassified                             
      and recognized as account receivables in                                
      instances when                                                          
                                                                              
              a) the taxpayer files an amended tax                            
              return (agreeing to the assessment),                            
              b) customs' protest or retention                                
              period lapses,                                                  
              c) court action or an appeal finally                            
              determines the assessment,                                      
              d) the taxpayer (or importer) agrees                            
              to pay currently or through an                                  
              installment agreement, and                                      
              e) an offer in compromise is                                    
              accepted?                                                       
                                                                              
      (SFFAS 7, par. 55.A)                                                    

             Interest Receivable (26 - 29)            Yes, No, or Explanation 
                                                          N/A                 
      26) Is interest receivable recognized for the                           
      amount of interest income earned but not                                
      received for the accounting period, including                           
      interest earned on investments in                                       
      interest-bearing securities? (SFFAS 1, par. 53)                         
      27) Is interest receivable recognized on                                
      outstanding accounts receivable and other U.S.                          
      government claims against persons and entities                          
      in accordance with 31 U.S.C. 3717, Interest and                         
      Penalty on Claims?^7 (SFFAS 1, par. 53)                                 
      28) Does interest receivable exclude interest                           
      on accounts receivable or investments that are                          
      determined to be uncollectible? (SFFAS 1, par.                          
      54)                                                                     
      29) Is interest receivable from federal                                 
      entities accounted for separately from interest                         
      receivable from the public? (SFFAS 1, par. 56)                          

^7 See also Federal Claims Collection Standards, 31 C.F.R. Parts 900-904)

      Cash and Other Monetary Assets (30-31)     Yes, No, or    Explanation   
                                                     N/A                      
Cash (including imprest funds) consists of: coins, paper currency, readily
negotiable instruments (such as checks, money orders, and bank drafts),
demand deposits, and foreign currencies stated in U.S. dollars at the
exchange rate on the financial statement date. (SFFAS 1, par. 27; OMB
Circular No. A-136, p. 37, Section II.4.3.3) 
                                                
Entity cash is the amount of cash that the reporting entity holds and is
authorized to spend. Nonentity cash is cash that a federal entity collects
and holds on behalf of the U.S. government or other entities. In some
instances the entity deposits cash in its accounts in a fiduciary capacity
for the U.S. Treasury or other entities. (SFFAS 1, par. 28 & 29)
                                                
Other monetary assets consist of other items such as gold, special drawing
rights, and U.S. reserves in the International Monetary Fund (IMF). (OMB
Circular No. A-136, p. 37, Section II.4.3.3) 
      30) Does the entity record all cash and                                 
      monetary assets to include                                              
                                                                              
              a) cash such as coins, paper                                    
              currency, negotiable instruments,                               
              and demand deposits,                                            
              b) cash available for agency use                                
              such as petty cash and cash held                                
              in revolving funds that will not                                
              be transferred to the general                                   
              fund,                                                           
              c) foreign currency, and                                        
              d) monetary assets such as gold,                                
              special drawing rights, and                                     
              reserves in the IMF?                                            
                                                                              
      (OMB Circular No. A-136, p. 86, Section                                 
      II.4.10.4)                                                              
      31) Does the entity record separately any                               
      cash restrictions such as                                               
                                                                              
              a) non-entity cash,                                             
              b) escrow cash,                                                 
              c) seized cash,                                                 
              d) bid deposits, and                                            
              e) cash held in Earmarked Funds?                                
                                                                              
      (OMB Circular No. A-136, p. 86-87,                                      
      Section II.4.10.4)                                                      

                 Inventory (32 - 53)                Yes, No, or  Explanation  
                                                        N/A                   
Inventory is tangible personal property that is (1) held for sale,
including raw materials and work in process, (2) in process of production
for sale, or (3) to be consumed in the production of goods for sale or in
the provision of services for a fee. Inventory does not include other
assets held for sale such as (1) stockpile materials, (2) seized and
forfeited property, (3) foreclosed property, and (4) goods held under
price support and stabilization programs. (SFFAS 3, par. 17; OMB Circular
No. A-136, p. 38, section II.4.3.3)             
      32) Is inventory recognized when title                                  
      passes or when goods are delivered to the                               
      purchasing entity? (SFFAS 3, par. 19)                                   
      33) Is inventory valued at historical cost,                             
      latest acquisition cost, or net realizable                              
      value? (SFFAS 3, par. 20 & 26)                                          
      34) If inventory is valued at historical                                
      cost, does that cost include the purchase                               
      amount and all other costs, such as                                     
      transportation and production costs,                                    
      incurred to bring the inventory into its                                
      current condition and location? (SFFAS 3,                               
      par. 21)                                                                
      35) Are abnormal costs, such as excessive                               
      handling or rework costs, charged to                                    
      operations for the period? (SFFAS 3, par.                               
      21)                                                                     
      36) Is donated inventory valued at its fair                             
      value at the time of donation? (SFFAS 3,                                
      par. 21)                                                                
      37) Is inventory acquired through exchange                              
      of nonmonetary assets (e.g., barter) valued                             
      at the fair value of the asset received at                              
      the time of the exchange? (SFFAS 3, par. 21)                            
      38) For inventory acquired through exchange                             
      of nonmonetary assets, is any difference                                
      between the recorded amount of the asset                                
      surrendered and the fair value of the asset                             
      received recognized as a gain or loss?                                  
      (SFFAS 3, par 21)                                                       
      39) Is one of the following historical cost                             
      flow assumptions used to value inventory                                
                                                                              
              a) first-in, first out (FIFO), or                               
              b) weighted average, or                                         
              c) moving average, or                                           
              d) any other valuation method (such                             
              as a standard cost system) whose                                
              results reasonably approximate "a",                             
              "b", or "c" above?                                              
                                                                              
      (SFFAS 3, par. 22)                                                      
      40) If the latest acquisition cost method of                            
      inventory valuation is used, is the latest                              
      invoice price (actual cost) applied to all                              
      like units held, including those acquired                               
      through donation or nonmonetary exchange?                               
      SFFAS 3, par. 23)                                                       
      41) Under the latest acquisition cost                                   
      method, is the inventory revalued                                       
      periodically (or at least by the end of the                             
      fiscal year)?^8 (SFFAS 3, par. 23)                                      
      42) Under the latest acquisition cost                                   
      method, is the ending balance of an                                     
      allowance account to capture gains or losses                            
      (if used) the cumulative difference between                             
      the historical cost, based on estimated or                              
      actual valuation, and the latest acquisition                            
      cost of ending inventory? (SFFAS 3, par. 24)                            
      43) Under the latest acquisition cost                                   
      method, is the balance for the gain/loss                                
      account adjusted each time the inventory                                
      balance is adjusted? (SFFAS 3, par. 24)                                 
      44) Is the adjustment necessary to bring the                            
      allowance to the appropriate balance a                                  
      component of the cost of goods sold as                                  
      computed under the latest acquisition cost                              
      method?^9 (SFFAS 3, par. 24 & 25)                                       
      45) If the latest acquisition cost method is                            
      used to value inventory, is the reported                                
      cost of goods sold adjusted by the                                      
      difference between the beginning and ending                             
      unrealized holding gains and losses? (SFFAS                             
      3, par. 24 & 25)                                                        
      46) Does the entity value inventory at net                              
      realizable value when there is                                          
                                                                              
              a) an inability to determine                                    
              approximate cost, or                                            
              b) immediate marketability at quoted                            
              prices, or                                                      
              c) unit interchangeability (e.g.,                               
              petroleum reserves)?                                            
                                                                              
      (SFFAS 3, par. 26)                                                      
      47) Is excess, obsolete, and unserviceable                              
      inventory valued at its expected net                                    
      realizable value? (SFFAS 3 par. 30)                                     
      48) When inventory is declared excess,                                  
      obsolete, or unserviceable, is the                                      
      difference between the carrying amount and                              
      the expected net realizable value recognized                            
      as a loss (or gain)? (SFFAS 3, par. 30)                                 
      49) For excess, obsolete, or unserviceable                              
      inventory, are any subsequent adjustments to                            
      the inventory's net realizable value or any                             
      loss (or gain) upon disposal recognized as                              
      losses (or gains)? (SFFAS 3, par. 30)                                   
      50) When inventory is held for repair, is it                            
      valued using                                                            
                                                                              
              a) the allowance method (valued at                              
              the same value as a serviceable item                            
              and a contra-asset repair allowance                             
              account is established), or                                     
              b) the direct method (valued at the                             
              same value as a serviceable item                                
              less estimated repair costs)?                                   
                                                                              
      (SFFAS 3, par. 32 & 33)                                                 
      51) If inventory is transferred to                                      
      "inventory held for repair," are estimated                              
      prior period repair costs either credited to                            
      the repair allowance (under the repair                                  
      allowance method) or to the inventory                                   
      account (under the direct method) and                                   
      reported as an adjustment to equity? (SFFAS                             
      3, par. 34)                                                             
      52) Is inventory held in reserve for future                             
      sale valued using the same basis as                                     
      inventory held for sale in normal                                       
      operations? (SFFAS 3, par. 27)                                          
      53) Are items intended for sale that are                                
      held for remanufacture^10 valued in the same                            
      manner as items intended for sale or items                              
      held for repair, as applicable?                                         
      (Interpretation No. 7, par. 10)                                         

^8 Revaluation results in  recognition of unrealized holding  gains/losses
in the  ending inventory  value. Upon  adjustment for  unrealized  holding
gains/losses, the  latest  acquisition  cost method  then  results  in  an
approximation of historical cost.

^9 Cost of goods sold under the latest acquisition cost method equals  (1)
beginning inventory at  beginning-of-the period  latest acquisition  cost,
less: beginning  allowance  for  unrealized  holding  gains/losses,  plus:
actual purchases,  and (2)  resulting cost  of goods  available for  sale,
less: ending inventory at end-of-the period latest acquisition cost, plus:
ending allowance for unrealized holding gains/losses.

^10 Items  held for  remanufacture are  in the  process of  (or  awaiting)
inspection, disassembly,  evaluation, cleaning,  rebuilding,  refurbishing
and/or restoration  to  serviceable  or  technologically  updated/upgraded
condition. Items may  consist of direct  materials, (including  repairable
parts and subassemblies, also referred to as "carcasses" at the Department
of Defense) and work-in-process (including labor costs).

            Operating Materials and Supplies          Yes, No, or             
                                                          N/A     Explanation 
                       (54 - 64)                                              
Operating materials and supplies are tangible personal property to be
consumed in normal operations. (SFFAS 3, par. 36)  
      54) Are operating materials and supplies                                
      recognized as assets when produced or purchased                         
      (the consumption method of accounting)? (SFFAS                          
      3, par. 38)                                                             
      55) Are operating materials and supplies                                
      expensed when purchased (purchase method) only                          
      if                                                                      
                                                                              
              a) amounts are not significant, and                             
              b) they are in the hands of end users,                          
              or                                                              
              c) it is not cost-beneficial to apply                           
              the consumption method of accounting?                           
                                                                              
      (SFFAS 3, par. 40)                                                      
      56) Are operating materials and supplies valued                         
      at historical cost, including all appropriate                           
      purchase and production costs incurred to bring                         
      the items to their current condition &                                  
      location? (SFFAS 3, par. 42-43)                                         
      57) Are donated operating materials and                                 
      supplies valued at their fair value at the time                         
      of donation? (SFFAS 3, par. 43)                                         
      58) Are operating materials and supplies                                
      acquired through exchange of nonmonetary assets                         
      (e.g., barter)                                                          
                                                                              
              a) valued at the fair value of the                              
              asset received at the time of exchange,                         
              and                                                             
              b) is any difference between the                                
              recorded amount of the asset                                    
              surrendered and the fair value of the                           
              asset received recognized as a gain or                          
              loss?                                                           
                                                                              
      (SFFAS 3, par. 43)                                                      
      59) Is one of the following historical cost                             
      flow assumptions used to value operating                                
      materials and supplies                                                  
                                                                              
              a) FIFO, or                                                     
              b) weighted average, or                                         
              c) moving average, or                                           
              d) any other valuation method (such as                          
              a standard cost system) whose results                           
              reasonably approximate "a", "b", or "c"                         
              above?                                                          
                                                                              
      (SFFAS 3, par. 42 & 44)                                                 
      60) Are excess, obsolete, and unserviceable                             
      operating materials and supplies valued at                              
      their estimated net realizable value? (SFFAS 3,                         
      par. 48)                                                                
      61) When operating materials and supplies are                           
      declared excess, obsolete, or unserviceable is                          
      the difference between the carrying amount                              
      before identification as excess, obsolete, or                           
      unserviceable and the estimated net realizable                          
      value recognized as a loss (or gain)? (SFFAS 3,                         
      par. 48)                                                                
      62) For excess, obsolete, or unserviceable                              
      operating materials and supplies, are any                               
      subsequent adjustments to the operating                                 
      materials and supplies' estimated net                                   
      realizable value or any loss (or gain) upon                             
      disposal recognized as losses (or gains)?                               
      (SFFAS 3, par. 48)                                                      
      63) Are items held for remanufacture that meet                          
      the definition of operating materials and                               
      supplies valued in the same manner as items                             
      held for repair or operating materials and                              
      supplies, as applicable? (Interpretation No. 7,                         
      par. 13)                                                                
      64) Are operating materials and supplies held                           
      in reserve for future use valued using the same                         
      basis as operating materials and supplies held                          
      for use in normal operations? (SFFAS 3, par.                            
      45)                                                                     

             Stockpile Materials (65 - 75)            Yes, No, or Explanation 
                                                          N/A                 
Stockpile materials are strategic and critical materials held due to
statutory requirements for use in national defense, conservation, or
national emergencies. (SFFAS 3, par. 51)           
      65) Are stockpile materials recognized as                               
      assets when produced or purchased (i.e.,                                
      recognized as assets using the consumption                              
      method)? (SFFAS 3, par. 52)                                             
      66) If the contract between the buyer and                               
      seller of the stockpile materials is silent                             
      regarding passage of the title, is title                                
      assumed to pass upon delivery of the goods?                             
      (SFFAS 3, par. 52)                                                      
      67) Are stockpile materials valued at                                   
      historical cost, including all appropriate                              
      purchase, transportation, and production costs                          
      incurred to bring the items to their current                            
      condition and location? (SFFAS 3, par. 53)                              
      68) Are abnormal costs, such as excessive                               
      handling or rework costs, charged to operations                         
      for the period? (SFFAS 3, par. 53)                                      
      69) Is one of the following historical cost                             
      flow assumptions used to value stockpile                                
      materials under the consumption method                                  
                                                                              
              a) FIFO,                                                        
              b) weighted average,                                            
              c) moving average, or                                           
              d) any other valuation method (such as                          
              a standard cost system) whose results                           
              reasonably approximate "a", "b", or "c"                         
              above?                                                          
                                                                              
      (SFFAS 3, par. 53)                                                      
      70) If stockpile materials have either suffered                         
      a permanent decline in value to an amount below                         
      cost, or have become damaged or decayed, has                            
      their value been reduced to expected net                                
      realizable value? (SFFAS 3, par. 54)                                    
      71) Is the resultant decline in value                                   
      recognized as a loss or expense in the period                           
      in which it occurs? (SFFAS 3, par. 54)                                  
      72) When stockpile materials are authorized to                          
      be sold, are those materials reported as                                
      stockpile materials held for sale? (SFFAS 3,                            
      par. 55)                                                                
      73) Are stockpile materials authorized for sale                         
      valued using the same basis used before they                            
      were authorized for sale? (SFFAS 3, par. 55)                            
      74) If stockpile materials are sold, is the                             
      cost removed from stockpile materials and                               
      reported as a cost of goods sold? (SFFAS 3,                             
      par. 55)                                                                
      75) Is any gain (or loss) from the sale of                              
      stockpile materials recognized as a gain (or                            
      loss) at that time? (SFFAS 3, par. 55)                                  

            Seized Property (76 - 82)          Yes, No, or N/A  Explanation   
Seized property includes monetary instruments, real property, and tangible
personal property belonging to others in actual or constructive possession
of the custodial agency. This includes illegal drugs, contraband, and
counterfeit items seized by authorized law enforcement agencies (SFFAS 3,
par. 59)                                    
                                               
There may be as many as three government entities involved with seized
property: (1) the seizing agency, (2) the custodial agency, and (3)
another agency with a "central fund" set up for financial recordkeeping of
seizure activities. (SFFAS 3, par. 57)      
      76) Is seized property accounted for by                                 
      the entity that is operating as the                                     
      central fund? (SFFAS 3, par. 60)                                        
      77) Are seized monetary instruments                                     
      recognized as seized assets when seized?                                
      (SFFAS 3, par. 61)                                                      
      78) If monetary instruments are seized,                                 
      are seized assets recognized at market                                  
      value of the monetary instruments, and a                                
      liability equal to the seized asset                                     
      value established? (SFFAS 3, par. 61 &                                  
      65)                                                                     
      79) Is the existence of seized property                                 
      other than monetary instruments                                         
      accounted for in the entity's property                                  
      management records? (SFFAS 3, par. 62)                                  
      80) Is seized property valued at its                                    
      market value when seized (or as soon                                    
      thereafter as reasonably possible if the                                
      market value cannot be readily                                          
      determined)? (SFFAS 3, par. 63)                                         
      81) If no active market exists for the                                  
      property in the general area in which it                                
      was seized, is a value in the principal                                 
      market nearest the place of seizure                                     
      used? (SFFAS 3, par. 63)                                                
      82) Is the valuation of property seized                                 
      under the Internal Revenue Code based on                                
      the taxpayer's equity (market value less                                
      any third-party liens)? (SFFAS 3, par.                                  
      64)                                                                     

             Forfeited Property (83 - 95)            Yes, No, or  Explanation 
                                                         N/A                  
Forfeited property consists of (a) property (i.e., monetary instruments,
intangible property, real property, and tangible personal property)
acquired through forfeiture proceedings, (b) property acquired to satisfy
a tax liability, and (c) unclaimed and abandoned merchandise. (SFFAS 3,
par. 67 & 68)                                     
      83) When a forfeiture judgment is obtained for                          
      seized monetary instruments                                             
                                                                              
              a) are they reclassified as forfeited                           
              monetary instruments at the current                             
              market value,                                                   
              b) is revenue recognized in an amount                           
              equal to the value of the monetary                              
              asset, and                                                      
              c) is the liability associated with                             
              the seized monetary instrument                                  
              classification removed?                                         
                                                                              
      (SFFAS 3, par. 69)                                                      
      84) When a forfeiture judgment is obtained for                          
      real, tangible, and intangible property                                 
                                                                              
              a) is the property recorded as an                               
              asset at its fair value at the time of                          
              forfeiture,                                                     
              b) is an allowance account                                      
              (contra-asset account) established for                          
              liens or claims from third party                                
              claimants against forfeited property,                           
              and                                                             
              c) is offsetting deferred revenue                               
              recognized?                                                     
                                                                              
      (SFFAS 3, par. 70)                                                      
      85) Does the entity not recognize the                                   
      financial value concerning the composition,                             
      valuation, and disposition of forfeited                                 
      property that cannot be sold due to legal                               
      restrictions, but may be either donated or                              
      destroyed (such as ivory)? (SFFAS 3, par. 71)                           
      86) Is revenue from the sale of forfeited                               
      property recognized when sold? (SFFAS 3, par.                           
      72)                                                                     
Forfeited property not held for sale may be placed into official use,
transferred to another federal agency, distributed to a state or local law
enforcement agency, or distributed to a foreign government. (SFFAS 3, par.
73)                                               
      87) When a determination is made that                                   
      forfeited property will not be held for sale,                           
      but distributed in one of the manners                                   
      described above, is the property reclassified                           
      as forfeited property held for donation or                              
      use? (SFFAS 3, par. 74)                                                 
      88) Is revenue associated with property not                             
      disposed of through sale recognized upon                                
      approval of distribution and the previously                             
      established deferred revenue reversed? (SFFAS                           
      3, par. 74)                                                             
      89) Is a distinction maintained in the                                  
      entity's accounting reports between revenue                             
      arising from the sale of forfeited property                             
      and revenue arising from forfeited property                             
      being transferred, donated, or placed into                              
      official use? (SFFAS 3, par. 72-75 & Table 1)                           
      90) Is property acquired by the government to                           
      satisfy a taxpayer's liability recorded when                            
      title to the property passes to the federal                             
      government, and is a credit made to the                                 
      related account receivable? (SFFAS 3, par. 76)                          
      91) Is the property acquired in satisfaction                            
      of a taxpayer's liability valued at its market                          
      value less any third party liens? (SFFAS 3,                             
      par. 76)                                                                
      92) Upon sale of forfeited property acquired                            
      in satisfaction of a taxpayer's liability, is                           
      revenue recognized in the amount of the sale                            
      proceeds, and are the property and third party                          
      liens removed from the accounts? (SFFAS 3,                              
      par. 76)                                                                
      93) Is unclaimed and abandoned merchandise                              
      recorded with an offsetting deferred revenue                            
      when statutory and/or regulatory requirements                           
      for forfeiture have been met? (SFFAS 3, par.                            
      77)                                                                     
      94) Is unclaimed and abandoned merchandise                              
      valued at its market value? (SFFAS 3, par. 77)                          
      95) Upon the sale of unclaimed and abandoned                            
      merchandise, is revenue recognized in the                               
      amount of the sale proceeds, and the                                    
      merchandise and the deferred revenue removed                            
      from the accounts? (SFFAS 3, par. 77)                                   

         Goods Held Under Price Support and        Yes, No, or   Explanation  
          Stabilization Program (96 - 107)             N/A                    
Goods acquired under price support and stabilization programs (i.e.,
commodities) are items of commerce or trade (usually farm commodities)
having an exchange value. Producers of the goods (1) are either given
nonrecourse loans under which they can, at their option, repay the loan
with interest or surrender their commodity pledged as collateral for the
loan, or (2) may enter into purchase agreements that allow the producer of
the option to sell commodities to the government (the Commodity Credit
Corporation) at the price support rate. (SFFAS 3, par. 92, 93, & 94)
      96) Are nonrecourse loans recognized as                                 
      assets when the loan principal is disbursed                             
      and recorded at the amount of the loan                                  
      principal? (SFFAS 3, par. 96)                                           
      97) Is interest accrued on nonrecourse                                  
      loans? (SFFAS 3, par. 96)                                               
      98) When the entity has entered into a                                  
      purchase agreement and there is an expected                             
      loss                                                                    
                                                                              
              a) is a loss^11 recognized if it is                             
              probable that a loss has been                                   
              incurred on purchase agreements                                 
              outstanding and the amount of the                               
              loss can be reasonably measured,                                
              and                                                             
              b) is a corresponding liability                                 
              recognized?                                                     
                                                                              
      (SFFAS 3, par. 97 & 103)                                                
      99) When commodities are acquired to                                    
      satisfy a nonrecourse loan or purchase                                  
      agreement, are they recognized as assets at                             
      the lower of cost or net realizable value?                              
      (SFFAS 3, par. 99 & 104)                                                
      100) When commodities acquired to satisfy                               
      the terms of a nonrecourse loan or purchase                             
      agreement are sold                                                      
                                                                              
              a) are revenues recognized, and                                 
              b) is the carrying amount of the                                
              commodities removed from the asset                              
              account and reported as a cost of                               
              goods sold?                                                     
                                                                              
      (SFFAS 3, par. 100)                                                     
      101) When commodities are held for purposes                             
      other than sale, is the carrying amount                                 
      reported as an expense and removed from the                             
      commodity asset account upon transfer?                                  
      (SFFAS 3, par. 101)                                                     
      102) Are all nonrecourse loans recorded at                              
      their face amounts, and is a valuation                                  
      allowance set up to recognize losses on                                 
      such loans when it is "more likely than                                 
      not" (i.e., more than a 50 percent chance)                              
      that loans will not be totally collected?                               
      (SFFAS 3, par. 102)                                                     
      103) Is this allowance reestimated on each                              
      financial reporting date? (SFFAS 3, par.                                
      102)                                                                    
      104) Does the cost for the commodities                                  
      acquired through a nonrecourse loan                                     
      settlement include the following amounts                                
                                                                              
              a) loan principal (excluding                                    
              interest),                                                      
              b) processing and packaging costs                               
              incurred after acquisition, and                                 
              c) other costs (e.g.,                                           
              transportation) incurred in taking                              
              title to the commodity?                                         
                                                                              
      (SFFAS 3, par. 105)                                                     
      105) Does the cost for commodities acquired                             
      though a purchase agreement include the                                 
      following amounts                                                       
                                                                              
              a) the unit price agreed upon in                                
              the purchase agreement multiplied                               
              by the number of units purchased,                               
              and                                                             
              b) other costs incurred in taking                               
              title to the commodity?                                         
                                                                              
      (SFFAS 3, par. 106)                                                     
      106) Is any adjustment necessary to reduce                              
      the carrying amount of the acquired                                     
      commodities to the lower of cost or net                                 
      realizable value recognized                                             
                                                                              
              a) as a loss on farm price support                              
              in the current period, and                                      
              b) recorded in a commodity                                      
              valuation allowance?                                            
                                                                              
      (SFFAS 3, par. 107)                                                     
      107) Are recoveries of losses recognized up                             
      to the point of any previously recognized                               
      losses on the commodities, and is the                                   
      commodity valuation allowance reduced                                   
      accordingly in the current period? (SFFAS                               
      3, par. 107)                                                            

^11 The loss amount is the  difference between the contract price and  the
net realizable value of the commodities.

    General Property, Plant, & Equipment (Net) (108 -   Yes, No,  Explanation 
                           152)                          or N/A               
General property, plant, and equipment (PP&E) are any property, plant, and
equipment used in providing goods or services. (SFFAS 6, par. 23)
      108) Has the entity established and consistently                        
      followed PP&E capitalization thresholds suitable                        
      to its financial and operational conditions?                            
      (SFFAS 6, par. 13)                                                      
      109) Does PP&E consist of tangible assets,                              
      including land, which                                                   
                                                                              
              a) have estimated useful lives of 2 years                       
              or more,                                                        
              b) are not intended for sale in the                             
              ordinary course of operations, and                              
              c) are acquired or constructed with the                         
              intention of being used or being                                
              available for use by the entity?                                
                                                                              
      (SFFAS 6, par. 17)                                                      
      110) Does PP&E include                                                  
                                                                              
              a) assets acquired through capital                              
              leases, including leasehold improvements,                       
              b) property owned by the reporting entity                       
              in the hands of others (e.g., state and                         
              local governments, colleges and                                 
              universities, federal contractors), and                         
              c) land rights?                                                 
                                                                              
      (SFFAS 6 par. 18)                                                       
      111) Does general PP&E exclude                                          
                                                                              
              a) items held in anticipation of physical                       
              consumption such as operating materials                         
              and supplies, and                                               
              b) items the federal entity has a                               
              reversionary interest in?                                       
                                                                              
      (SFFAS 6, par. 19 & 21)                                                 
      112) In determining which categories to place                           
      PP&E, has the entity considered                                         
                                                                              
              a) the cost of maintaining different                            
              accounting methods for property and the                         
              usefulness (benefit) of the information,                        
              b) the diversity of the PP&E (e.g.,                             
              useful lives, value, alternative uses),                         
              c) the programs being served by the PP&E,                       
              and                                                             
              d) future disposition of the PP&E?                              
                                                                              
      (SFFAS 6, par. 22)                                                      
      113) Does the entity categorize an asset under                          
      general PP&E if it has one or more of the                               
      following characteristics                                               
                                                                              
              a) it could be used for alternative                             
              purposes (e.g., by other federal                                
              programs, state or local governments,                           
              nongovernmental entities) but is used to                        
              produce goods or services or to support                         
              the mission of the entity,                                      
              b) it is used for business-type                                 
              activities,^12 and                                              
              c) it is used by entities in activities                         
              whose costs can be compared to those of                         
              other entities performing similar                               
              activities (e.g., federal hospital                              
              services in comparison to other                                 
              hospitals)?                                                     
                                                                              
      (SFFAS 6, par. 23)                                                      
      114) Is PP&E of entities operating as                                   
      business-type activities categorized as general                         
      PP&E whether or not it meets the definition of                          
      other PP&E categories (e.g., heritage assets)?                          
      (SFFAS 6, par. 24)                                                      
      115) Are land and land rights specifically                              
      acquired for or in connection with other general                        
      PP&E included in general PP&E? (SFFAS 6, par. 25)                       
      116) Is all general PP&E recorded at cost? (SFFAS                       
      6, par. 26)                                                             
      117) Does the cost of general PP&E include all                          
      costs to bring it to a form and location suitable                       
      for its intended use to include                                         
                                                                              
              a) amounts paid to vendors,                                     
              b) transportation charges to the point of                       
              initial use,                                                    
              c) handling and storage costs,                                  
              d) labor and other direct or indirect                           
              production costs (for assets produced or                        
              constructed),                                                   
              e) costs of engineering, architectural,                         
              and other outside services for designs,                         
              plans, specifications, and surveys,                             
              f) acquisition and preparation costs of                         
              buildings and other facilities,                                 
              g) an appropriate share of the cost of                          
              the equipment and facilities used in                            
              construction work,                                              
              h) fixed equipment and related                                  
              installation costs required for                                 
              activities in a building or facility,                           
              i) direct costs of inspection,                                  
              supervision, and administration of                              
              construction contracts and construction                         
              work,                                                           
              j) legal and recording fees and damage                          
              claims,                                                         
              k) fair value of facilities and equipment                       
              donated to the government, and                                  
              l) material amounts of interest costs                           
              paid?                                                           
                                                                              
      (SFFAS 6, par. 26)                                                      
      118) Is the cost of general PP&E acquired through                       
      donation, devise, or judicial process, excluding                        
      forfeiture, capitalized at estimated fair value                         
      at the time acquired by the entity? (SFFAS 6,                           
      par. 30)                                                                
      119) Is general PP&E transferred from other                             
      federal entities capitalized at the book amount                         
      recorded by the transferring entity? (SFFAS 6,                          
      par. 31)                                                                
      120) Is general PP&E transferred from other                             
      federal entities capitalized at the fair value at                       
      the time of the transfer, if the receiving entity                       
      cannot reasonably ascertain the book amount of                          
      the PP&E being transferred? (SFFAS 6, par. 31)                          
      121) If general PP&E is acquired through exchange                       
      between a federal entity and a nonfederal entity,                       
      is it capitalized at the fair value of the PP&E                         
      surrendered at the time of the exchange? (SFFAS                         
      6, par. 32)                                                             
      122) If general PP&E is acquired through exchange                       
      between a federal entity and a nonfederal entity                        
      and the fair value of the PP&E is more readily                          
      determinable than that of the PP&E surrendered,                         
      is the acquired general PP&E capitalized at its                         
      fair value? (SFFAS 6, par. 32)                                          
      123) If general PP&E is acquired through exchange                       
      between a federal entity and a nonfederal entity                        
      and neither the fair value of the PP&E acquired                         
      or surrendered is determinable, is the acquired                         
      general PP&E capitalized at the book amount of                          
      the PP&E surrendered? (SFFAS 6, par. 32)                                
      124) If cash is included in an exchange of                              
      general PP&E between a federal entity and a                             
      nonfederal entity, is the cost of PP&E acquired                         
      increased by the amount of cash surrendered or                          
      decreased by the amount of cash received? (SFFAS                        
      6, par. 32)                                                             
      125) For general PP&E acquired through exchange                         
      between a federal entity and a nonfederal entity,                       
      is any difference between the net recorded amount                       
      of the PP&E surrendered and the cost of the PP&E                        
      acquired recognized as a gain or loss? (SFFAS 6,                        
      par. 32)                                                                
      126) Is PP&E recognized when title passes to the                        
      acquiring entity or when PP&E is delivered to the                       
      entity or to an agent of the entity? (SFFAS 6,                          
      par. 34)                                                                
      127) If general PP&E is under construction, is it                       
      recorded as construction work in process until it                       
      is placed into service and transferred to general                       
      PP&E? (SFFAS 6, par. 34)                                                
Depreciation expense is calculated through the systematic and rational
allocation of the cost of general PP&E, less its estimated salvage or
residual value over its estimated useful life. (SFFAS 6, par. 35)
      128) Is depreciation expense recognized on all                          
      general PP&E, except land and land rights of                            
      unlimited duration? (SFFAS 6, par. 35)                                  
      129) Do estimates of useful life of general PP&E                        
      consider such factors as physical wear and tear                         
      and technological change? (SFFAS 6, par. 35)                            
      130) Are changes in estimated useful life or                            
      salvage and residual value of general PP&E                              
      accounted for in the period of change and future                        
      periods? (SFFAS 6, par. 35)                                             
      131) Is the depreciation method systematic,                             
      rational, and best reflective of the use of the                         
      PP&E, including the use of a composite or a group                       
      methodology^13 where the costs of PP&E are                              
      allocated using the same allocation rate? (SFFAS                        
      6, par. 35; SFFAS 23, par. 9(f))                                        
      132) Are depreciation and amortization expenses                         
      accumulated in contra-asset accounts? (SFFAS 6,                         
      par. 36)                                                                
      133) Are costs that either extend the useful life                       
      of existing general PP&E or enlarge or improve                          
      its capacity capitalized and                                            
      depreciated/amortized over the remaining useful                         
      life of the asset? (SFFAS 6, par. 37)                                   
      134) When general PP&E is disposed of, retired,                         
      or removed from service, is the asset removed                           
      from the asset accounts along with the associated                       
      accumulated depreciation/amortization? (SFFAS 6,                        
      par. 38)                                                                
      135) When general PP&E is disposed of, retired,                         
      or removed from service, is the difference                              
      between the book amount of the PP&E and any                             
      amount realized from its sale, scrap, or exchange                       
      recognized as a gain or loss in the period of                           
      disposal? (SFFAS 6, par. 38)                                            
      136) Is general PP&E removed from general PP&E                          
      accounts along with associated accumulated                              
      depreciation/amortization if prior to disposal,                         
      retirement, or removal from service, it no longer                       
      provides service in the operations of the entity?                       
      (SFFAS 6, par. 39)                                                      
      137) Is PP& E that has been removed from the                            
      asset accounts recorded in an appropriate asset                         
      account at its expected net realizable value?                           
      (SFFAS 6, par. 39)                                                      
      138) Is any difference in the book amount and its                       
      expected net realizable value of about-to-be                            
      disposed, retired, or removal-from-service PP&E                         
      recognized as a gain or loss in the period of                           
      adjustment? (SFFAS 6, par. 39)                                          
      139) Is the expected net realizable value of such                       
      PP&E assets adjusted at the end of each                                 
      accounting period, and are any further                                  
      adjustments in value recognized as a gain or                            
      loss? (SFFAS 6, par. 39)                                                
      140) If historical cost information for existing                        
      general PP&E has not been maintained, are cost                          
      estimates based on                                                      
                                                                              
              a) the cost of similar assets at the time                       
              of acquisition, or                                              
              b) the current cost of similar assets                           
              discounted for inflation since the time                         
              of acquisition?                                                 
                                                                              
      (SFFAS 6, par. 40)                                                      
      141) For general PP&E previously considered                             
      national defense PP&E, is the initial                                   
      capitalization amount for these assets the                              
      initial historical cost for the items including                         
      any major improvements or modifications? (SFFAS                         
      23, par. 10)                                                            
      142) For general PP&E previously considered                             
      national defense PP&E where obtaining initial                           
      historical cost is not practical, is estimated                          
      historical cost used, based on                                          
                                                                              
              a) current replacement cost of similar                          
              items, deflated through the use of                              
              price-level indexes to the acquisition                          
              year or estimated acquisition year if the                       
              actual year is unknown,                                         
              b) other information indicating amount                          
              expended, such as budget, appropriation,                        
              or engineering documents and other                              
              reports reflecting amounts expended, or                         
              c) other reasonable approaches for                              
              estimating historical cost?^14                                  
                                                                              
      (SFFAS 23, par. 12 & 13)                                                
      143) For general PP&E previously considered                             
      national defense PP&E that was in service upon                          
      implementation of SFFAS 23, are cleanup cost                            
      liabilities adjusted as needed?^15 (SFFAS 23,                           
      par. 15)                                                                
      144) Is accumulated depreciation/amortization                           
      recorded based on                                                       
                                                                              
              a) the estimated cost of the PP&E and the                       
              number of years the PP&E has been in use                        
              relative to its estimated useful life,                          
              b) the PP&E's estimated net remaining                           
              cost^16 and the depreciation or                                 
              amortization charged over the remaining                         
              life based on that net remaining cost, or                       
              c) a composite or a group methodology                           
              whereby the costs of PP&E are allocated                         
              using the same allocation rate?                                 
                                                                              
      (SFFAS 6, par. 41; SFFAS 23, par. 9(f))                                 
      145) If general PP&E would have been                                    
      substantially depreciated or amortized had it                           
      been recorded upon acquisition, does the entity                         
      weigh materiality and cost-benefit to                                   
                                                                              
              a) record only improvements made during                         
              the period beyond the initial expected                          
              useful life of general PP&E, or                                 
              b) make an aggregate entry for whole                            
              classes of PP&E (e.g., entire facilities                        
              rather than a building-by-building                              
              estimate)?                                                      
                                                                              
      (SFFAS 6, par. 42)                                                      
      146) In recording existing general PP&E, is the                         
      difference in amounts added to asset and                                
      contra-accounts credited (or charged) to the net                        
      position of the entity? (SFFAS 6, par. 43)                              
      147) In recording existing general PP&E                                 
      previously identified as national defense PP&E,                         
      is the difference in amounts added to asset and                         
      contra accounts reported as a "change in                                
      accounting principle"? (SFFAS 23, par. 10 & 16)                         
Capital leases are leases that transfer substantially all the benefits and
risks of ownership to the lessee. Operating leases are leases in which the
federal entity does not assume the risks of ownership of PP&E. Multiyear
service contracts and multiyear purchase agreements for expendable
commodities are not capital leases. (SFFAS 6, par. 20, footnote 22; SFFAS
5, par. 43)                                          
      148) Does the entity classify a lease as a                              
      capital lease if at its inception the lease                             
      either                                                                  
                                                                              
              a) transfers ownership of the property to                       
              the lessee by the end of the lease term,                        
              b) contains an option to purchase the                           
              leased property at a bargain price,                             
              c) has a term is equal to or greater than                       
              75 percent of the estimated economic life                       
              of the leased property, and the beginning                       
              of the lease term does not fall within                          
              the last 25 percent of the total                                
              estimated economic life of the property,                        
              or                                                              
              d) the present value of rental and other                        
              minimum lease payments, excluding that                          
              portion of the payments representing                            
              executory cost, equals or exceeds 90                            
              percent of the fair value of the leased                         
              property, and the beginning of the lease                        
              term does not fall within the last 25                           
              percent of the total estimated economic                         
              life of the property?                                           
                                                                              
      (SFFAS 6, par. 20; SFFAS 5, par. 43)                                    
      149) Is the cost of general PP&E acquired under a                       
      capital lease equal to the amount recognized as a                       
      liability^17 for the capital lease at its                               
      inception? (SFFAS 6, par. 29)                                           
Property, plant, and equipment are classified as heritage assets if they
have (1) historical or natural significance; (2) cultural, educational, or
artistic importance; or (3) significant architectural characteristic.
(SFFAS 29, par. 15)                                  
                                                        
Multiuse heritage assets are heritage assets that are predominately used
in general government operations (e.g., buildings such as the main
Treasury building, which is used as an office building). (SFFAS 29, par.
22)                                                  
      150) Is the cost of acquisition, improvement,                           
      reconstruction or renovation of multi-use                               
      heritage asset(s) capitalized as general PP&E and                       
      depreciated over its estimated useful life?                             
      (SFFAS 29, par. 22)                                                     
      151) Are multiuse heritage assets acquired                              
      through donation or devise recognized as general                        
      PP&E at the assets' fair value? (SFFAS 29, par.                         
      23)                                                                     
      152) For multiuse heritage assets acquired                              
      through donation or devise, are the assets fair                         
      value also recognized as "nonexchange revenue,"                         
      as defined in SFFAS 7? (SFFAS 29, par. 23)                              

^12 A business-type activity is defined as a significantly self-sustaining
activity that  finances its  continuing cycle  of operations  through  the
collection of exchange revenue.

^13 The composite methodology is a method of calculating depreciation that
applies a single  average rate to  a number of  heterogeneous assets  that
have dissimilar characteristics and  service lives. The group  methodology
is a method  of calculating  depreciation that applies  a single,  average
rate to a number of  homogenous assets having similar characteristics  and
service lives.

^14 For  example,  the latest  acquisition  cost may  be  substituted  for
current replacement cost in some situations.

^15 This adjustment may  be needed because the  Department of Defense  may
have already recognized the total  estimated cleanup costs as a  liability
and expense for some military equipment (SFFAS 6.101).

^16 Net  remaining  cost  is the  original  cost  of the  asset  less  any
accumulated depreciation/amortization to date (i.e., book value).

^17 The liability is  the net present value  of lease payments unless  the
net present value  of the  lease payments exceeds  the fair  value of  the
asset, in which  case the amount  recorded as the  liability would be  the
fair value of the asset. (SFFAS 5, par. 44)

                  Software (153 - 180)                Yes, No, or Explanation 
                                                          N/A                 
Software includes the application and operating system programs,
procedures, rules, and any associated documentation pertaining to the
operation of a computer system or program.         
                                                      
"Internal use software" is software that is purchased from commercial
vendors "off the shelf," internally developed, or contractor-developed
solely to meet the entity's internal or operational needs. (SFFAS 10, par.
8)                                                 
      153) Does the entity capitalize the cost of                             
      software when it is                                                     
                                                                              
              a) specifically identifiable,                                   
              b) has a determinate life of 2 years or                         
              more,                                                           
              c) not intended for sale in the                                 
              ordinary course of operations,                                  
              d) acquired or developed with the                               
              intention of being used by the entity,                          
              and                                                             
              e) meets the criteria for general                               
              property, plant, and equipment in that                          
              it is used in providing goods and                               
              services?                                                       
                                                                              
      (SFFAS 6, par. 17; SFFAS 10, par. 15)                                   
      154) Does the capitalized cost of internally                            
      developed software include the full cost (i.e.,                         
      direct and indirect costs) incurred during the                          
      software development stage? (SFFAS 10, par. 16)                         
      155) Are capitalized internally developed                               
      software development costs limited to costs                             
      incurred after                                                          
                                                                              
              a) management authorizes and commits to                         
              a computer software project and                                 
              believes that it is more likely than                            
              not that the project will be completed,                         
              b) the software will be used to perform                         
              the intended function with an estimated                         
              service life of 2 years or more, and                            
              c) the conceptual formulation, design,                          
              and testing of possible software                                
              project alternatives (i.e., preliminary                         
              design stage) have been completed?                              
                                                                              
      (SFFAS 10, par. 16)                                                     
      156) Do software capitalization costs include                           
      costs for new software^18 and documentation                             
      manuals? (SFFAS 10, par. 17)                                            
      157) Do the capitalized costs for commercial                            
      off-the-shelf (COTS) software include the                               
      amount paid to the vendor? (SFFAS 10, par. 18)                          
      158) Do the capitalized costs for                                       
      contractor-developed software include the                               
      amount paid to a contractor to design, program,                         
      install, and implement the software? (SFFAS 10,                         
      par. 18)                                                                
      159) Does the entity capitalize internal costs                          
      incurred to implement the COTS or                                       
      contractor-developed software and otherwise                             
      make it ready for use? (SFFAS 10, par. 18)                              
      160) Does the entity expense as incurred all                            
      data conversion costs for internally developed,                         
      contractor-developed, or COTS software as well                          
      as the cost to develop or obtain software that                          
      allows for access or conversion of existing                             
      data to the new software? (SFFAS 10, par. 19)                           
      161) Does the entity expense costs incurred                             
      after the completion of final acceptance                                
      testing? (SFFAS 10, par. 20)                                            
      162) Does the entity treat software that serves                         
      both internal uses and stewardship purposes^19                          
      as internal use software and capitalize it to                           
      the extent such software meets criteria for                             
      general PP&E? (SFFAS 10, par. 21)                                       
      163) Is computer software that is integrated                            
      into and necessary to operate general PP&E,^20                          
      rather than perform a separate application,                             
      considered part of the PP&E of which it is an                           
      integral part, and is it capitalized and                                
      depreciated? (SFFAS 10, par. 22)                                        
      164) If the entity purchased software as part                           
      of a package of products and services, does it                          
      use a reasonable estimate of the relative fair                          
      value of the individual elements in allocating                          
      the cost as capitalizable or noncapitalizable                           
      (i.e., expense) elements? (SFFAS 10, par. 23)                           
      165) If the entity purchased software as part                           
      of a package of products and services, does it                          
      expense software costs that are not susceptible                         
      to allocation between maintenance and                                   
      relatively minor enhancements? (SFFAS 10, par.                          
      23)                                                                     
      166) Has the entity established capitalization                          
      thresholds for its internal-use software                                
      including bulk purchases of software programs                           
      and modules or components of a total software                           
      system? (SFFAS 10, par. 24)                                             
      167) Does the entity capitalize the acquisition                         
      cost of enhancements to existing internal-use                           
      software, as well as related modules, when it                           
      is more likely than not that they will result                           
      in significant additional capabilities? (SFFAS                          
      10, par. 25)                                                            
      168) Does the entity expense, in the period                             
      incurred, the cost of minor enhancements                                
      resulting from ongoing systems maintenance as                           
      well as the purchase of enhanced versions of                            
      software for a minimal charge? (SFFAS 10, par.                          
      26)                                                                     
      169) Are costs incurred solely to repair a                              
      design flaw or to perform minor upgrades that                           
      may extend the useful life of the software                              
      without adding capabilities expensed?^21 (SFFAS                         
      10, par. 27)                                                            
      170) Does the entity recognize a loss upon                              
      impairment of computer software when                                    
      post-implementation or operational conditions                           
      apply where                                                             
                                                                              
              a) the software is no longer expected                           
              to provide substantive service                                  
              potential and will be removed from                              
              service, or                                                     
              b) a significant reduction occurs in                            
              the capabilities, functions, or uses of                         
              the software (or module thereof)?                               
                                                                              
      (SFFAS 10, par. 28 & 29)                                                
      171) If impaired software is to remain in use,                          
      is the loss due to impairment measured as the                           
      difference between the book value and                                   
                                                                              
              a) the cost to acquire software that                            
              would perform similar remaining                                 
              functions (i.e., unimpaired), or                                
              b) the portion of book value                                    
              attributable to the remaining                                   
              functional elements of the software?                            
                                                                              
      (SFFAS 10, par. 29)                                                     
      172) If the loss due to impairment cannot be                            
      determined, is the book amount of the software                          
      amortized over the remaining useful life of the                         
      software? (SFFAS 10, par. 29)                                           
      173) If impaired software is to be removed from                         
      use, is the loss due to impairment measured as                          
      the difference between the book amount and any                          
      net realizable value (NRV)? (SFFAS 10, par. 30)                         
      174) In situations of impaired software to be                           
      removed from use, does the entity transfer the                          
      NRV, if any, to an appropriate asset account                            
      until such time as the software is disposed of                          
      and the NRV realized? (SFFAS 10, par. 30)                               
      175) If the entity's managers conclude that it                          
      is no longer "more likely than not" that                                
      developmental software or a module thereof will                         
      be completed and placed in service, is the                              
      accumulated book value or the balance in a work                         
      in process account, if applicable, reduced to                           
      reflect the expected NRV and a loss recognized?                         
      (SFFAS 10, par. 31)                                                     
      176) Does the entity amortize capitalized                               
      internal use software systematically and                                
      rationally over the estimated useful life of                            
      the software? (SFFAS 10, par. 32)                                       
      177) Does amortization of each module or                                
      component of a software project begin when that                         
      module or component has been successfully                               
      tested? (SFFAS 10, par. 33)                                             
      178) If the use of a module is dependent on the                         
      completion of another module(s), does the                               
      amortization begin only when both that module                           
      and the other module(s) have been successfully                          
      tested? (SFFAS 10, par. 33)                                             
      179) Are additions to the book value or changes                         
      in useful life of capitalized software treated                          
      prospectively (i.e., during the period of                               
      change and future periods only) when the                                
      software is amortized? (SFFAS 10, par. 34)                              
      180) When the entity replaces existing                                  
      internal-use software with new software, is the                         
      unamortized cost of the old software expensed                           
      when the new software has been successfully                             
      tested? (SFFAS 10, par. 34)                                             

^18 Examples  of  costs for  new  software are  salaries  of  programmers,
systems  analysts,   project  managers,   and  administrative   personnel;
associated  employee  benefits;  outside  consultants'  fees;  rent;   and
supplies.

^19 Software that serves  both internal uses  and stewardship purposes  is
referred to  as multiuse  software.  An example  is a  global  positioning
system used in  connection with  national defense  activities and  general
operating activities and services.

^20 For example, such software could include software necessary to operate
airport radar and computer operated lathes.

^21  SFFAS  10  provides  that  material  expenditures  to  add   software
capability/functionality would be capitalized  but that expenditures  that
result in extending useful life or capacity would be expensed. (SFFAS  10,
par. 42 & 43)

             Other Assets (181 - 183)            Yes, No, or    Explanation   
                                                     N/A                      
Advances are cash outlays made by a federal entity to its employees,
contractors, grantees, or others to cover the recipient's anticipated
expenses or as advance payments for the costs of goods and services
acquired by an entity. (SFFAS 1, par. 57)    
                                                
Prepayments are payments made by a federal entity to cover certain
periodic expenses before those expenses are incurred (SFFAS 1, par. 58)
                                                
Progress payments on work in progress are not included in advances and
prepayments (OMB Circular No. A-136, p. 41, section II.4.3.3)
      181) Are amounts of advances or                                         
      prepayments that are subject to a refund                                
      transferred to accounts receivable?                                     
      (SFFAS 1, par. 59)                                                      
      182) Are advances and prepayments paid                                  
      out reported separately as assets and not                               
      netted against the liability for advances                               
      and prepayments that the entity received?                               
      (SFFAS 1, par. 60)                                                      
      183) Are advances and prepayments that                                  
      are made to federal entities accounted                                  
      for separately from those made to                                       
      nonfederal entities? (SFFAS 1, par. 61)                                 

  Section IV -  Liabilities

Questions related to accounting for liabilities in the financial
statements are presented below.

Caption                                                   Question Numbers 
Liabilities in General                                         1 - 2       
Accounts Payable and Interest Payable                          3 - 8       
Capital Lease Liabilities                                      9 - 12      
Federal Debt and Related Interest                             13 - 19      
Pensions, Other Retirement Benefits, and Postemployment       20 - 24      
Benefits                                                                   
Other Liabilities                                             25 - 48      

            Liabilities in General (1 - 2)            Yes, No,   Explanation  
                                                       or N/A                 
Liabilities of the federal agencies are reported under two major
categories: (1) liabilities covered by budgetary resources^22 and (2)
liabilities not covered by budgetary resources.^23 Within each of these
two categories, liabilities are classified as (1) intra-governmental
liabilities, which are amounts owed to other federal entities or (2)
governmental liabilities, which are amounts owed to nonfederal entities by
the federal government or an entity within the federal government. (SFFAS
1, par. 21; SFFAS 5, footnote 1 in summary)       
      1) Does the federal entity recognize a                                  
      liability for probable^24 and measurable^25                             
      future outflows or other sacrifices of                                  
      resources arising from one or more events from                          
                                                                              
              a) past exchange transactions,                                  
              b) government-related events, such as                           
              a federal entity accidentally causing                           
              damage to private property,                                     
              c) government-acknowledged events,                              
              such as natural disasters, for which                            
              the government has taken formal                                 
              responsibility for the related costs,                           
              and                                                             
              d) nonexchange transactions that,                               
              according to current law and                                    
              applicable policy, are unpaid amounts                           
              due as of the reporting date?                                   
                                                                              
      (SFFAS 5, par. 19)                                                      
      2) Are liabilities recognized when incurred                             
      regardless of whether they are covered by                               
      available budgetary resources (including those                          
      liabilities related to appropriations canceled                          
      under "M" account legislation (P.L. 101-510,                            
      section 1405)? (OMB Circular A-136, p. 41,                              
      section II.4.3.4)                                                       

^22 Liabilities covered by budgetary resources are liabilities covered  by
realized budgetary  resources  as of  the  balance sheet  date.  Budgetary
resources include (1)  new budget authority,  (2) unobligated balances  of
budgetary resources at the beginning of the year or net transfers of prior
year balances  during the  year, (3)  spending authority  from  offsetting
collections (credited to an appropriation or fund account), (4) recoveries
of unexpired budget authority through  downward adjustments of prior  year
obligations, and  (5)  permanent indefinite  appropriations  or  borrowing
authority, which have been enacted and  signed into law as of the  balance
sheet date, provided that the resources may be apportioned by OMB  without
further action by the Congress and without a contingency having to be met.

^23 Liabilities not  covered by  budgetary resources  are liabilities  for
which congressional action  is needed  before budgetary  resources can  be
provided.

^24 Probable  refers  to that  which  can  be reasonably  expected  or  is
believed to be more likely than not on the basis of available evidence  or
logic. However, in  the context  of assessing  the outcome  of matters  of
pending or threatened litigation and unasserted claims and recognizing  an
associated liability, "probable" refers  to that which  is likely, not  to
that which is "more likely than not."

^25 Measurable refers to  that which can be  quantified in monetary  units
with sufficient reliability to be reasonably estimable.

         Accounts Payable and Interest Payable        Yes, No, or             
                                                          N/A     Explanation 
                        (3 - 8)                                               
Accounts payable are amounts owed by a federal entity for goods and
services received, progress in contract performance, and rents due to
other entities. (SFFAS 1, par. 74)                 
      3) Do accounts payable exclude amounts related                          
      to ongoing continuous expenses, such as salary                          
      and related benefits expense, which are                                 
      classified as other current liabilities? (SFFAS                         
      1, par. 75)                                                             
      4) When an entity accepts title to goods,                               
      whether the goods are delivered or in transit,                          
      does the entity recognize a liability for the                           
      unpaid cost of goods? (SFFAS 1, par. 77)                                
      5) If invoices for goods, for which the entity                          
      has accepted the title, are not available, does                         
      the entity estimate the amount owed? (SFFAS 1,                          
      par. 77)                                                                
      6) For facilities or equipment constructed or                           
      manufactured by contractors or grantees                                 
      according to agreements or contract                                     
      specifications, are amounts recorded as payable                         
      based on an estimate of work completed under                            
      the contract or the agreement in accordance                             
      with the federal entity's engineering and                               
      management evaluation of actual performance                             
      progress and incurred costs? (SFFAS 1, par. 78                          
      & 79)                                                                   
      7) Is interest incurred, but unpaid on borrowed                         
      funds, late payments, and refunds recognized as                         
      interest payable and reported as a liability at                         
      the end of each period? (SFFAS 1, par. 81)                              
      8) Is interest payable to federal entities                              
      accounted for separately from interest payable                          
      to the public? (SFFAS 1, par. 82)                                       

           Capital Lease Liabilities (9 - 12)          Yes, No or Explanation 
                                                          N/A                 
Capital leases are leases that transfer substantially all of the benefits
and risks of ownership to the lessee. (SFFAS 5, par. 43)
      9) Is the amount recorded by the lessee as a                            
      liability under a capital lease arrangement the                         
      present value of rental and other minimum lease                         
      payments (excluding executory costs) during the                         
      lease term? (SFFAS 5, par. 44)                                          
      10) If the present value of the rental and other                        
      minimum lease payments during the lease term                            
      exceeds the fair value of the leased property,                          
      is the liability recorded as the fair value^26                          
      of the property at the inception of the lease?                          
      (SFFAS 5, par. 44)                                                      
      11) Does the entity use the applicable Treasury                         
      borrowing rate to determine the discount rate                           
      charged on a capital lease unless                                       
                                                                              
              a) it is practicable for the lessee to                          
              learn the implicit rate computed by the                         
              lessor, and                                                     
              b) the implicit rate is less than the                           
              Treasury borrowing rate?                                        
                                                                              
      (SFFAS 5, par. 45)                                                      
      12) During the lease term, is each minimum lease                        
      payment allocated between a reduction of the                            
      obligation and interest expense so as to produce                        
      a constant periodic rate of interest on the                             
      remaining balance of the liability? (SFFAS 5,                           
      par. 46)                                                                

^26 Fair value is the price for which  an asset could be bought or sold  in
an arm's-length transaction between unrelated  parties. Roman L. Well  and
Patrick C. O'Brien,  Accounting: The  Language of Business,  9th ed.  (Sun
Lakes, Arizona: Thomas Horton and Daughters, 1994).

           Federal Debt and Related Interest          Yes, No, or             
                                                          N/A     Explanation 
                       (13 - 19)                                              
Debts are amounts borrowed from the Treasury, the Federal Financing Bank,
other federal agencies, or the public under general or special financing
authority such as Treasury bills, notes, bonds, and Federal Housing
Administration (FHA) debentures. (SFFAS 5, par. 47)
      13) Does the entity accounting for federal debt                         
      identify the amount of the outstanding debt                             
      liability at any given time and the related                             
      interest cost for each accounting period?                               
      (SFFAS 5, par. 48)                                                      
      14) Are fixed-value securities with known                               
      redemption or maturity amounts at time of issue                         
      valued at their original face (par) value net                           
      of any unamortized discount or premium? (SFFAS                          
      5, par. 50)                                                             
      15) For fixed-value securities, is the interest                         
      method^27 used for amortizing any discount or                           
      premium? (SFFAS 5, par. 51)                                             
      16) If the interest method is not used, is the                          
      straight line method of discount or premium                             
      amortization used for                                                   
                                                                              
              a) short-term securities with a                                 
              maturity of 1 year or less, and                                 
              b) longer term securities, where the                            
              difference between the amount of                                
              amortization under the interest and                             
              straight-line methods is immaterial?                            
                                                                              
              (SFFAS 5, par. 50)                                              
      17) If the entity has issued variable value                             
      securities of unknown redemption or maturity                            
      values, are they appraised at their original                            
      value and periodically revalued on the basis of                         
      the regulations or offering language? (SFFAS 5,                         
      par. 52)                                                                
      18) Are old currencies issued by the federal                            
      government and not yet redeemed or written off                          
      identified as a noninterest bearing federal                             
      debt liability at face value? (SFFAS 5, par.                            
      55)                                                                     
      19) Is all debt owed to federal entities                                
      recorded separately from debt owed to the                               
      public? (SFFAS 1, par. 18-24)                                           

^27 The interest method for amortizing  a bond premium or discount  reduces
the discount or premium by  the difference between the effective  interest
and stated interest on the bond. (SFFAS 1, app B, tables 1 & 2)

    Pensions, Other Retirement Benefits, and   Yes, No, or N/A  Explanation   
        Postemployment Benefits (20 - 24)                                     
Federal employee and veterans benefits include the actuarial portion of
pensions, other retirement benefits, and other postemployment benefits.
(SFFAS 1, par. 83 & 84; SFFAS 5, par. 56)   
                                               
In the context of accounting for pensions, other retirement benefits
(ORB), and other postemployment benefits, the "administrative entity"
manages and accounts for the pension or other employee plan, while the
"employer entity" employs federal workers and generates employee costs,
for which it would typically receive a salary and expense appropriation.
(SFFAS 5, par. 57, footnote 38)             
                                               
The "aggregate entry age normal" actuarial cost method is one under which
the expenses or liabilities arising from the actuarial present value of
projected pension benefits are allocated on a level basis over the
earnings or the service of the group between entry age and assumed exit
ages. The portion of the actuarial present value allocated to a valuation
year is called "normal cost." (SFFAS 5, par. 64)
      20) Is the aggregate entry age normal                                   
      actuarial cost method used to calculate,                                
      for the administrative entity financial                                 
      statements, the liabilities arising from                                
      pension and ORB expenses? (SFFAS 5, par.                                
      64 & 82)                                                                
      21) If other actuarial cost methods are                                 
      used because the results are not                                        
      materially different, does the entity                                   
      provide an explanation why aggregate                                    
      entry age normal is not used? (SFFAS 5,                                 
      par. 64 & 82)                                                           
      22) Does the administrative entity                                      
      report pension and ORB assets separately                                
      from liabilities as opposed to netting                                  
      them? (SFFAS 5, par. 68 & 85)                                           
      23) Does the administrative entity carry                                
      pension and ORB assets at their                                         
      acquisition cost, adjusted for                                          
      amortization, if appropriate? (SFFAS 5,                                 
      par. 85)                                                                
      24) Does the employer entity recognize                                  
      the long-term other postemployment                                      
      benefits liability as the present value                                 
      of future payments discounted at the                                    
      Treasury borrowing rate for securities                                  
      of similar maturity? (SFFAS 5, par. 95)                                 

            Other Liabilities (25 - 48)            Yes, No, or   Explanation  
                                                       N/A                    
Unless they are reported separately, other liabilities include liabilities
not recognized in other categories. They may include, but are not limited
to: capital leases, insurance, advances and prepayments, deposit funds
held in escrow, accrued liabilities related to ongoing continuous expenses
such as federal employee salaries and accrued employee annual leave, and
estimated losses for claims and other contingencies. Claims and other
contingencies include indemnity agreements, adjudicated claims, and
commitments to international institutions. (SFFAS 1, par. 83-86)
      25) Do all federal insurance and guarantee                              
      programs (except social insurance and loan                              
      guarantee programs) recognize a liability                               
      for unpaid claims incurred resulting from                               
      insured events that have occurred as of the                             
      reporting date? (SFFAS 5, par. 104)                                     
      26) Do federal insurance programs accrue a                              
      liability when an existing condition,                                   
      situation, or set of circumstances                                      
      involving uncertainty as to possible loss                               
      exists, and where                                                       
                                                                              
              a) the uncertainty will be resolved                             
              when one or more probable future                                
              events either occur or fail to                                  
              occur, and                                                      
              b) future outflow or other                                      
              sacrifice of resources is probable                              
              and measurable?                                                 
                                                                              
      (SFFAS 5, par. 104 & 108)                                               
      27) Is a liability recognized for future                                
      life insurance policy benefits (such as                                 
      death or disability)? (SFFAS 5, par. 104)                               
      28) When insurance payments and losses                                  
      extend beyond the current year, does the                                
      liability at the end of the year represent                              
      net losses calculated on a present-value                                
      basis to reflect the time value of money?                               
      (SFFAS 5, par. 109)                                                     
The liability for future policy benefits is the present value of future
outflows to be paid to (or on behalf of) policyholders, less the present
value of future related premiums. In general, for whole life policies, the
liability for future policy benefits should be no less than the cash
surrender value that accrues to the benefit of the policyholder. (SFFAS 5,
par. 116)                                      
      29) Are liabilities for future benefits of                              
      whole life insurance policies recorded as                               
      prescribed by private sector standards                                  
      (i.e., Financial Accounting Standards Board                             
      (FASB) Statement of Accounting Standards                                
      (SFAS) 60, 97, & 120; American Institute of                             
      Certified Public Accountants (AICPA)                                    
      Statement of Position (SOP) 95-1)? (SFFAS                               
      5, par. 117)                                                            
      30) Does the liability for future benefits                              
      relating to participating life insurance                                
      contracts equal the sum of                                              
                                                                              
              a) the net level premium reserve                                
              for death and endowment policy                                  
              benefits,                                                       
              b) liability for terminal                                       
              dividends, and                                                  
              c) any premium deficiency?^28                                   
                                                                              
      (SFFAS 5, par. 118 & 120)                                               
      31) Has the entity compared the liability                               
      for future policy benefits using actuarial                              
      assumptions applicable at the time the                                  
      contract was made (contract assumptions)                                
      with the liability for future policy                                    
      benefits using assumptions that consider                                
                                                                              
              a) current economic conditions                                  
              (i.e., current and expected                                     
              investments and expected long-term                              
              yields), and                                                    
              b) experience (i.e., mortality,                                 
              morbidity, and termination rates)?                              
                                                                              
      (SFFAS 5, par. 119)                                                     
      32) Does the agency record "unearned                                    
      revenue" as a liability if it receives                                  
      advances or progress payments prior to                                  
      receipt of cash, and it records the                                     
      amounts? (SFFAS 7, par. 37)                                             
      33) Are amounts payable for refunds, refund                             
      offsets,^29 and drawbacks^30 recognized as                              
      liabilities when measurable and legally                                 
      payable under established processes of the                              
      collecting entity? (SFFAS 7, par. 57)                                   
      34) Do amounts payable for refunds include                              
      refund claims filed by the taxpayer when                                
      the government has determined the amount                                
      refundable and identified the payee? (SFFAS                             
      7, par. 57)                                                             
      35) Are amounts payable for refunds with                                
      respect to returns or claims filed as of                                
      the end of the reporting period included in                             
      accounts payable for refunds if they do not                             
      require specific approval before payment?                               
      (SFFAS 7, par. 57)                                                      
      36) For claims filed for refunds where                                  
      specific administrative actions are                                     
      required before payments can be made, are                               
      the amounts excluded from being recognized                              
      as a liability if the required                                          
      administrative actions are not yet complete                             
      as of the close of the reporting period,                                
      even if reasonably estimable? (SFFAS 7,                                 
      par. 58.A)                                                              
      37) Are unasserted claims for refunds by                                
      taxpayers or importers, such as unfiled                                 
      claims for refunds or drawbacks for which                               
      no claim has been filed, excluded from                                  
      liabilities, even if reasonably estimable?                              
      (SFFAS 7, par. 58.B)                                                    
      38) Are amounts voluntarily made as                                     
      deposits, such as those made to stop the                                
      accrual of interest or those made pending                               
      settlements and judgments, separately                                   
      recognized as deposit liabilities? (SFFAS                               
      7, par. 59)                                                             
A loss contingency is an existing condition, situation, or set of
circumstances involving uncertainty as to possible loss to an entity. The
uncertainty should ultimately be resolved when one or more future events
occur or fail to occur. (SFFAS 5, par. 35)     
      39) Does the entity recognize estimated                                 
      losses for claims or other contingencies if                             
      all of the following conditions apply                                   
                                                                              
              a) a past event or exchange                                     
              transaction has occurred,                                       
              b) a future outflow or other                                    
              sacrifice of resources is                                       
              probable,^31 and                                                
              c) the future outflow or sacrifice                              
              of resources is measurable (e.g.,                               
              the federal entity's management                                 
              determines an estimated settlement                              
              amount)?                                                        
                                                                              
      (SFFAS 5, par. 38; SFFAS 6, par. 91; SFFAS                              
      12, par. 10 & 11)                                                       
      40) When determining an estimated                                       
      contingent liability, if some amount within                             
      a range of amounts is a better estimate                                 
      than any other amount within the range, is                              
      that amount recognized? (SFFAS 5, par. 39)                              
      41) When determining an estimated                                       
      liability, if no amount within a range of                               
      amounts is a better estimate than any other                             
      amount, is the minimum amount in the range                              
      recognized? (SFFAS 5, par. 39)                                          
      42) Does the entity separately recognize a                              
      liability for environmental clean-up                                    
      costs^32 for PP&E if                                                    
                                                                              
              a) they are related to a past                                   
              transaction or event, and                                       
              b) the related costs are probable                               
              and measurable?                                                 
                                                                              
      (SFFAS 5, par. 38 & SFFAS 6, par. 91-93)                                
      43) When clean-up costs are paid, are the                               
      payments recognized as a reduction in the                               
      liability for clean-up costs? (SFFAS 6,                                 
      par. 100)                                                               
      44) If clean-up costs have not been                                     
      previously recognized, is a liability                                   
      recognized for the portion of the estimated                             
      total clean-up cost that is attributable to                             
      either the portion of the physical capacity                             
      used or the portion of the estimated useful                             
      life that has passed since the PP&E was                                 
      placed into service? (SFFAS 6, par.                                     
      104-106)                                                                
      45) Are any subsequent changes (made in                                 
      periods following implementation) in                                    
      estimated total clean-up cost immediately                               
      expensed (if costs are to be recovered                                  
      though user charges) and included in the                                
      related liability balance? (SFFAS 6, par.                               
      104)                                                                    
      46) When clean-up costs are recognized for                              
      the first time, is the offsetting charge                                
      for any liability for clean-up costs shown                              
      as a "prior-period adjustment?" (SFFAS 6,                               
      par. 105; SFFAS 21, par. 13)                                            
Social insurance programs provide for the maintenance and distribution of
incomes and medical benefits during periods of unemployment, disability,
and retirement. These programs are Social Security, Medicare, Railroad
Retirement Benefits, Black Lung Benefits, and Unemployment Insurance.
Expense and liability recognition for these programs is the same for both
the consolidated governmentwide entity and for the component entities.
(SFFAS 17, par. 2, 4, 14, 15, 19, 30, & app. D, glossary)
      47) Does the entity recognize a liability                               
      for social insurance benefits due and                                   
      payable including claims incurred but not                               
      reported? (SFFAS 17, par. 22)                                           
      48) Does the liability for unemployment                                 
      insurance include                                                       
                                                                              
              a) amounts due to states and                                    
              territories for benefits they have                              
              paid to beneficiaries but for which                             
              they have not withdrawn funds from                              
              the federal Unemployment Trust Fund                             
              (UTF) as of the fiscal year end,                                
              and                                                             
              b) estimated amounts to be                                      
              withdrawn from UTF and benefits                                 
              paid by states and territories                                  
              after fiscal year end for                                       
              compensatory days occurring prior                               
              to fiscal year end?                                             
                                                                              
      (SFFAS 17, par. 23)                                                     

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

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

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

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

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

  Section V -  Net Position and Related Changes

Questions related to accounting for net position and related changes in
the financial statements are presented below.

Caption                                                   Question Numbers 
Unexpended Appropriations & Cumulative Results of              1 - 2       
Operation                                                                  
Budgetary Financing Sources                                    3 - 18      
Other Financing Sources                                       19 - 27      
Earmarked Funds                                               28 - 32      

Unexpended Appropriations & Cumulative Results of  Yes, No,   Explanation  
                  Operations (1 - 2)                   or N/A                 
Net position is affected by changes to its two components: Cumulative
Results of Operations and Unexpended Appropriations. They are broken out
into two separate columns in the Statement of Changes in Net Position.
(OMB Circular No. A-136, p. 51, sections II.4.5.1)
      1) Does the line item "unexpended                                       
      appropriations" include both the portion of                             
      the entity's appropriation represented by                               
      undelivered orders and unobligated balances?                            
      (OMB Circular No. A-136, p. 45, section                                 
      II.4.3.5)                                                               
      2) Does the line item "cumulative results of                            
      operations" include                                                     
                                                                              
              a) the net results of operations since                          
              inception,                                                      
              b) the cumulative amount of                                     
              prior-period adjustments, and                                   
              c) the cumulative amount of donations                           
              and transfers of assets in and out                              
              without reimbursement?                                          
                                                                              
      (OMB Circular No. A-136, p. 45, section                                 
      II.4.3.5)                                                               

        Budgetary Financing Sources (3 - 18)       Yes, No, or   Explanation  
                                                       N/A                    
Budgetary Financing Sources displays financing sources and nonexchange
revenue that are also budgetary resources, or adjustments to these
resources, as reported on the Statement of Budgetary Resources and defined
as such by OMB Circular No. A-11, Preparation, Submission and Execution of
the Budget, as amended. (OMB Circular No. A-136, p. 57, section II.4.5.6)
      3) Are unexpended appropriations reduced as                             
      appropriations are used? (SFFAS 7, par. 71)                             
      4) Are unexpended appropriations adjusted                               
      for other changes in budgetary resources,                               
      such as rescissions and transfers? (SFFAS                               
      7, par. 71)                                                             
      5) Do "appropriations transferred in/out                                
      (+/-)" equal the amount of appropriations                               
      received in the current or prior year(s)                                
      that have been transferred in or out during                             
      the current reporting year? (OMB Circular                               
      No. A-136, p. 58, section II.4.5.6)                                     
      6) Do "other adjustments^33 (rescissions,                               
      etc.) (+/-)" include adjustments to either                              
      cumulative results of operations or                                     
      unexpended appropriations? (OMB Circular                                
      No. A-136, p. 58, section II.4.5.6)                                     
      7) Are appropriations used by collecting                                
      entities to provide refunds of monies                                   
      deposited to Treasury and trust funds                                   
      reported under "other adjustments                                       
      (rescissions, etc. (+/-))" rather than as                               
      an "appropriations used?" (OMB Circular No.                             
      A-136, p. 58, section II.4.5.6)                                         
      8) Are "appropriations used" recognized as                              
      a financing source when goods and services                              
      are received or when benefits and grants                                
      are provided?^34 (SFFAS 7, par. 72)                                     
      9) Is the amount of appropriations used                                 
      subtracted from unexpended appropriations                               
      and added to cumulative results of                                      
      operations for a net zero effect on net                                 
      position as a whole? (OMB Circular No.                                  
      A-136, p. 58, section II.4.5.6)                                         
      10) Do "appropriations^35 used" exclude                                 
                                                                              
              a) undelivered orders, and                                      
              b) unobligated appropriations?                                  
                                                                              
      (OMB Circular No. A-136, p. 58, section                                 
      II.4.5.6)                                                               
      11) Is nonexchange revenue recognized by                                
      the recipient entity as a financing source                              
      (and not as a deduction in determining the                              
      net cost of operations)? (SFFAS 7, par. 60)                             
      12) Does the entity recognize nonexchange                               
      revenues, such as taxes, if legally                                     
      entitled to the revenue? (SFFAS 7, par. 48                              
      & 49)                                                                   
      13) Is nonexchange revenue recognized when                              
      the government's claim to resources can be                              
      characterized as                                                        
                                                                              
              a) specifically identifiable,                                   
              b) legally enforceable,                                         
              c) reasonably estimable, and                                    
              d) more likely than not                                         
              collectable?                                                    
                                                                              
      (SFFAS 7, par. 48)                                                      
      14) Is revenue recognized by recipient                                  
      entities the sum of                                                     
                                                                              
              a) cash or cash equivalents                                     
              transferred to them by the                                      
              collecting entities, and                                        
              b) the net change in any related                                
              inter-entity balances between the                               
              collecting and the receiving                                    
              entities (i.e., the amount to be                                
              transferred to the recipient                                    
              entities from the collecting entity                             
              or vice versa)?                                                 
                                                                              
      (SFFAS 7, par. 60)                                                      
      15) Do "donations and forfeitures of cash                               
      and cash equivalents" include voluntary                                 
      gifts and involuntary forfeitures of                                    
      resources to the federal government by                                  
      nonfederal entities? (OMB Circular No.                                  
      A-136, p. 58, section II.4.5.6)                                         
      16) Do "transfers-in/out without                                        
      reimbursement (+/-)" under "budgetary                                   
      financing sources" include                                              
      intra-governmental nonappropriated^36                                   
      balance transfers in or out during the                                  
      current reporting year? (OMB Circular No.                               
      A-136, p. 58, section II.4.5.6)                                         
      17) Is exchange revenue (included in                                    
      calculating an entity's net cost of                                     
      operations) required to be transferred to                               
      the Treasury or another federal entity                                  
      recognized as a transfer out? (OMB Circular                             
      No. A-136, p. 58, section II.4.5.6)                                     
      18) Do "other budgetary financing sources"                              
      include other financing sources that affect                             
      budgetary resources that have not been                                  
      covered by the preceding questions? (OMB                                
      Circular No. A-136, p. 58, section                                      
      II.4.5.6)                                                               

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

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

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

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

           Other Financing Sources (19 - 27)          Yes, No, or Explanation 
                                                          N/A                 
Other Financing Sources displays financing sources and nonexchange revenue
that do not represent budgetary resources as reported on the Statement of
Budgetary Resources and defined as such by OMB Circular No. A-11, as
amended (OMB Circular A-136, p. 59, section II.4.5.7)
      19) Is revenue arising from donations of                                
      property measured at the estimated fair value                           
      of the contribution at the time of the                                  
      donation? (SFFAS 6, par. 30; SFFAS 7, par. 62)                          
      20) Are transferred assets recorded at the book                         
      amount of the transferring entity, or, if the                           
      receiving entity does not know the book amount,                         
      is the asset recorded at its estimated fair                             
      value as of the date of the transfer? ^37                               
      (SFFAS 7, par. 74)                                                      
      21) When assets^38 are transferred in or out by                         
      entities without reimbursement                                          
                                                                              
              a) does the receiving entity recognize                          
              the transfer-in as an increase in                               
              financing sources in its statement of                           
              net position, and                                               
              b) does the transferring entity                                 
              recognize the transfer out as a                                 
              decrease in financing sources in its                            
              statement of changes in net position?                           
                                                                              
      (SFFAS 7, par. 74)                                                      
      22) Does the reporting entity recognize an                              
      imputed financing source for costs funded                               
      through other federal entities, as well as                              
      nonreimbursed costs of goods and services                               
      provided by other federal entities? (SFFAS 4,                           
      par. 109; SFFAS 7, par. 73)                                             
      23) Do "other financing sources" include other                          
      financing sources that do not represent                                 
      budgetary resources and that have not been                              
      covered by the preceding questions? (OMB                                
      Circular No. A-136, p. 59, section II.4.5.7)                            
      24) Is exchange revenue transferred to another                          
      government entity or to the Treasury recognized                         
      as a "transfer out" in determining the net                              
      results of operations? (SFFAS 7, par. 75)                               
      25) Are assets included in general PP&E that                            
      are transferred to another federal entity for                           
      use as heritage assets or stewardship land                              
      recognized as a transfer-out of capitalized                             
      assets? (SFFAS 29 par. 21 & 39)                                         
      26) For transfers of multi-use heritage assets                          
      from one federal entity to another, does the                            
      receiving entity recognize a transfer-in at the                         
      transferring entity's book value or at its                              
      estimated fair value if book value is not                               
      provided? (SFFAS 29, par. 24)                                           
      27) For transfers of multi-use heritage assets                          
      from one federal entity to another, does the                            
      transferring entity recognize a transfer-out at                         
      the transferring entity's book value? (SFFAS                            
      29, par. 24)                                                            

37 FASAB Technical Bulletin 2003-1  offers specific guidance dealing  with
transfers arising from the creation of the Department of Homeland Security
and other transfers of operations between federal entities directed by the
Homeland Security Act of 2002 (P.L. 107-296).

38 This  amount includes  intra-governmental  transfers in  to or  out  of
capitalized assets during the current reporting year.

          Earmarked Funds (Items 28 - 32)         Yes, No, or    Explanation  
                                                      N/A                     
Earmarked funds are financed by specifically identified revenues, often
supplemented by other financing sources, which remain available over time.
These specifically identified revenues and other financing sources are
required by statute to be used for designated activities, benefits or
purposes, and must be accounted for separately from the entity's general
revenues. (SFFAS 27, par. 11)                 
      28) Are earmarked funds accounted for                                   
      separately from the entity's general                                    
      revenues? (SFFAS 27, par.11)                                            
      29) Do funds designated as earmarked meet                               
      these criteria                                                          
                                                                              
              a) a statute committing the                                     
              federal government to use                                       
              specifically identified revenues                                
              and other financing sources only                                
              for designated activities,                                      
              benefits or purposes,                                           
              b) explicit authority for the                                   
              earmarked fund to retain revenues                               
              and other financing sources not                                 
              used in the current period for                                  
              future use to finance the                                       
              designated activities, benefits,                                
              or purposes, and                                                
              c) a requirement to account for                                 
              and report on the receipt, use,                                 
              and retention of the revenues and                               
              other financing sources that                                    
              distinguishes the earmarked fund                                
              from the Government's general                                   
              revenues?                                                       
                                                                              
      (SFFAS 27, par.11)                                                      
      30) Are intra-governmental funds, credit                                
      financing accounts, and fiduciary funds                                 
      not characterized as earmarked funds?                                   
      (SFFAS 27, par.18)                                                      
      31) If more than one component entity is                                
      responsible for carrying out the program                                
      financed with earmarked revenues and other                              
      financing sources, can each portion                                     
                                                                              
              a) be clearly identified and the                                
              entity includes its respective                                  
              portion, or                                                     
              b) not be clearly identified and                                
              the entity with program management                              
              responsibility report the entire                                
              fund?                                                           
                                                                              
      (SFFAS 27, par. 20)                                                     
      32) Does the quantitative and qualitative                               
      criteria used to present individual                                     
      earmarked funds include                                                 
                                                                              
              a) percentages of the reporting                                 
              entity's earmarked revenues or                                  
              cumulative results of operations                                
              from earmarked funds,                                           
              b) whether an earmarked fund is of                              
              immediate concern to constituents                               
              of the fund,                                                    
              c) whether it is politically                                    
              sensitive or controversial,                                     
              d) whether it is accumulating                                   
              large balances, and                                             
              e) whether the information                                      
              provided in the financial                                       
              statements would be the primary                                 
              source of financial information                                 
              for the public?                                                 
                                                                              
      (SFFAS 27, par. 24)                                                     

  Section VI -  Net Cost

Questions related to accounting for net cost in the financial statements
are presented below.

Caption                                                   Question Numbers 
Cost Accounting - Overall Requirements                         1 - 7       
Cost Accounting - Responsibility Segments                      8 - 10      
Cost Accounting - Full Cost                                   11 - 18      
Cost Accounting - Inter-entity Costs                          19 - 23      
Cost Accounting - Costing Methodology                         24 - 30      
Revenues                                                      31 - 44      
Pensions  and   Other  Retirement   and   Postemployement     45 - 68      
Benefits Costs                                                             
Inventory, Materials, Supplies, and Commodities Costs         69 - 77      
Property, Plant, and Equipment Costs                          78 - 92      
Clean-up Costs                                                93 - 100     
Interest Costs                                               101 - 102     
Insurance and Subsidies Costs                                103 - 106     

        Cost Accounting - Overall Requirements      Yes, No, or               
                                                        N/A      Explanation  
                       (1 - 7)                                                
Managerial cost accounting is the process of accumulating, measuring,
analyzing, interpreting, and reporting cost information useful to both
internal and external groups concerned with the way in which the
organization uses, accounts for, safeguards, and controls its resources to
meet its objectives. (SFFAS 4, par. 42)          
                                                    
A cost accounting "system" is a continuous and systematic cost accounting
process that may be designed to accumulate and assign costs to a variety
of objects routinely or as desired by management. (SFFAS 4, par. 74)
                                                    
Cost finding is a method for determining the cost of producing goods or
services using appropriate procedures, for example, special cost studies
or analyses. (SFFAS 4, par. 76)                  
      1) Are costs related to the production of                               
      outputs recorded separately from costs that                             
      are not related to the production outputs                               
      (i.e., nonproduction costs)? (OMB Circular                              
      No. A-136, p. 49, section II.4.4.3)                                     
      2) Has the entity established appropriate                               
      procedures and practices to enable the                                  
      consistent and regular collection,                                      
      measurement, accumulation, analysis,                                    
      interpretation, and communication of cost                               
      information? (SFFAS 4, par. 68-70)                                      
      3) As a means of providing cost information                             
      in an efficient and reliable manner on a                                
      continuing basis, does the entity regularly                             
      accumulate and report the costs of its                                  
      activities either by means of cost accounting                           
      systems or cost finding techniques? (SFFAS 4,                           
      par. 68-70)                                                             
      4) Does the reporting entity's cost                                     
      accounting system or cost finding technique,                            
                                                                              
              a) collect cost information by                                  
              responsibility segments identified by                           
              management,                                                     
              b) define outputs for each                                      
              responsibility segment,                                         
              c) measure the full cost (including                             
              the cost of goods or services                                   
              provided by other entities) of                                  
              outputs so that total operational                               
              costs and total unit costs of outputs                           
              can be determined,                                              
              d) use a costing methodology (e.g.,                             
              activity-based, job order, standard                             
              costing) that is appropriate for                                
              management's needs and the operating                            
              environment,                                                    
              e) provide information needed to                                
              determine and report service efforts                            
              and accomplishments and information                             
              necessary to meet the requirements of                           
              GPRA (or interface with a system that                           
              provides such information),                                     
              f) report cost information in a                                 
              timely manner and on a regular basis                            
              consistent with the needs of                                    
              management and budgetary and                                    
              financial reporting requirements,                               
              g) rely on the United States Standard                           
              General Ledger as a basis for                                   
              integrating its cost information with                           
              its financial accounting,                                       
              h) supply cost data precise enough to                           
              provide reliable and useful                                     
              information to internal and external                            
              users in making evaluations or                                  
              decisions but also avoid unnecessary                            
              precision and refinement of data, and                           
              i) accommodate management's cost                                
              information needs?                                              
                                                                              
      (SFFAS 4, par. 71)                                                      
      5) Are all managerial cost accounting                                   
      activities, processes, and procedures                                   
      documented? (SFFAS 4, par. 71)                                          
      6) In determining the appropriate detail for                            
      its cost accounting processes and procedures,                           
      has the reporting entity evaluated                                      
                                                                              
              a) nature of its operations,                                    
              b) precision desired and needed in                              
              cost information,                                               
              c) practicality of data collection                              
              and processing,                                                 
              d) availability of electronic                                   
              data-handling facilities,                                       
              e) cost of installing, operating, and                           
              maintaining the cost accounting                                 
              processes, and                                                  
              f) specific information needs of                                
              management?                                                     
                                                                              
      (SFFAS 4, par. 72)                                                      
      7) Has the entity used similar or compatible                            
      cost accounting processes throughout its                                
      component units? (SFFAS 4, par. 73)                                     

Cost Accounting - Responsibility Segments (8 -   Yes, No, or  Explanation  
                         10)                            N/A                   
A responsibility segment is a component of a reporting entity that is
responsible for carrying out a mission, conducting a major line of
activity, or producing one or a group of related products or services.
(SFFAS 4, par. 78)                              
      8) Has the entity defined and established                               
      responsibility segments? (SFFAS 4, par. 77)                             
      9) Does management designate or establish                               
      responsibility segments based on                                        
                                                                              
              a) the entity's organizational                                  
              structure,                                                      
              b) its lines of responsibility and                              
              missions,                                                       
              c) its output (goods or services it                             
              delivers), and                                                  
              d) budget accounts and funding                                  
              authorities?                                                    
                                                                              
      (SFFAS 4, par. 86)                                                      
      10) For each responsibility segment, does                               
      the entity                                                              
                                                                              
              a) define and accumulate outputs                                
              and, if feasible, quantify each type                            
              of output in units,                                             
              b) accumulate costs and quantitative                            
              units of resources consumed in                                  
              producing the outputs,                                          
              c) assign costs to outputs and                                  
              calculate the cost per unit of each                             
              type of output, and                                             
              d) establish cost centers within                                
              responsibility segments?                                        
                                                                              
      (SFFAS 4, par. 79 & 88)                                                 

            Cost Accounting - Full Cost            Yes, No, or                
                                                       N/A       Explanation  
                     (11 - 18)                                                
Full cost is the sum of all costs that contribute to an output and
includes direct and indirect costs regardless of funding sources. It also
includes the costs of supporting services provided by other responsibility
segments or entities. (SFFAS 4, par. 89)       
                                                  
Output is any product or service generated from the consumption of
resources. (SFFAS 4, par. 89) Direct costs are costs that can be
specifically identified with an output. (SFFAS 4, par. 90) Indirect costs
are costs of resources that are jointly or commonly used to produce two or
more types of outputs, but are not specifically identifiable with any of
the outputs. (SFFAS 4, par. 91)                
      11) Does the entity include all direct                                  
      costs in the full cost of outputs,                                      
      including                                                               
                                                                              
              a) salaries and other benefits for                              
              employees who work directly on the                              
              output,                                                         
              b) materials and supplies used in                               
              the work,                                                       
              c) various costs associated with                                
              office space, equipment,                                        
              facilities, and utilities that are                              
              used exclusively to produce the                                 
              output, and                                                     
              d) costs of goods or services                                   
              received from other segments or                                 
              entities that are used to produce                               
              the output?                                                     
                                                                              
      (SFFAS 4, par. 90)                                                      
      12) In the full cost of outputs, does the                               
      reporting entity include                                                
                                                                              
              a) indirect costs incurred within a                             
              responsibility segment, and                                     
              b) the costs of support services                                
              that a responsibility segment                                   
              receives from other segments or                                 
              entities?                                                       
                                                                              
      (SFFAS 4, par. 91, 122, & 123)                                          
      13) Are the costs of employee benefits^39                               
      included as part of the cost of outputs?                                
      (SFFAS 4, par. 93-97)                                                   
      14) Are the costs of other postemployment                               
      benefits reported as expenses for the                                   
      period during which a future outflow or                                 
      other sacrifice of resources is probable                                
      and measurable on the basis of an event                                 
      occurring on or before the accounting date?                             
      (SFFAS 4, par. 96-97)                                                   
      15) Are the full costs of transfer payments                             
      for welfare, insurance, grants, and other                               
      public assistance programs separately                                   
      identified from the costs of operating such                             
      programs? (SFFAS 4, par. 98-101)                                        
      16) Is depreciation expense incurred by                                 
      responsibility segments on general PP&E                                 
      included in the full costs of the goods and                             
      services that the segments produce? (SFFAS                              
      4, par. 102)                                                            
      17) Are the costs of acquiring or                                       
      constructing heritage assets excluded from                              
      the full cost of goods and services and                                 
      treated as a program cost^40 or period                                  
      expense? (SFFAS 4, par. 103)                                            
      18) Are nonproduction costs incurred by                                 
      responsibility segments, such as                                        
      reorganization costs and nonrecurring                                   
      clean-up costs resulting from facility                                  
      abandonment, excluded from the full cost of                             
      outputs and treated as current-period                                   
      expenses? (SFFAS 4, par. 104)                                           

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

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

          Cost Accounting - Inter-entity Costs        Yes, No, or             
                                                          N/A     Explanation 
                       (19 - 23)                                              
Within the federal government, some reporting entities rely on other
federal entities to help them achieve their missions. Often, this involves
support services, but may include the provision of goods. The reporting
entity generally should account for the full cost of goods or services
provided to or received from other federal entities. (SFFAS 4, par.
105-108)                                           
                                                      
Costs between reporting entities that are part of the same department or
larger reporting entity (such as bureaus, components or responsibility
segments within a department) are considered intra-departmental costs.
Reporting entities should account for imputed intra-departmental costs in
accordance with the full cost provisions of SFFAS 4. (FASAB Interpretation
No. 6, par. 4 & 8)                                 
Question 19 is effective for reporting periods beginning prior to
September 30, 2008.                                
      19) Does the entity recognize specific                                  
      inter-entity costs as identified by OMB whether                         
      or not the entity is fully reimbursed?^41                               
      (SFFAS 4, par 110)                                                      
Question 20 is effective for reporting periods beginning after September
30, 2008. Early implementation is encouraged.      
      20) Does the entity recognize all material                              
      inter-entity costs whether or not the entity is                         
      fully reimbursed?^42 ( SFFAS 4, par 111-112;                            
      SFFAS 30, par. 23; OMB Circular No. A-136, p.                           
      49, section II.4.4.3)                                                   
      21) Is recognition of inter-entity costs that                           
      are not fully reimbursed limited to material                            
      items based on an assessment of the importance                          
      of the individual inter-entity transaction in                           
      light of                                                                
                                                                              
              a) significance to the entity,                                  
              b) directness of relationship to the                            
              entity's operations, and                                        
              c) identifiability?                                             
                                                                              
      (SFFAS 4, par. 112)                                                     
      22) Are the costs of broad, general support                             
      services provided by a federal entity to other                          
      federal entities excluded from the costs of the                         
      recipient entity unless such services are                               
      integral to the receiving entity (e.g.,                                 
      Treasury check-writing services provided for                            
      the Social Security Administration)? (SFFAS 4,                          
      par. 112)                                                               
      23) If the receiving entity cannot get complete                         
      information on the full cost of goods or                                
      services provided by another reporting entity,                          
      does the receiving entity use a reasonable                              
      estimate of the cost of the goods or services                           
      received or the market value of the goods or                            
      services received if an estimate of the cost                            
      cannot be made? (SFFAS 4, par. 109)                                     

41 Examples of unreimbursed costs that reporting entities are required  to
recognize include  (but  are  not limited  to):  (1)  employees'  pension,
post-retirement  health   and   life   insurance   benefits,   (2)   other
post-employment benefits for retired, terminated, and inactive  employees,
which includes  unemployment and  workers compensation  under the  Federal
Employees' Compensation  Act, as  amended, and  (3) losses  in  litigation
proceedings (see  FASAB  Interpretation  No. 2,  Accounting  for  Treasury
Judgment Fund Transactions). In the case of employee benefits, the imputed
amount is the difference  between employer/employee contributions and  the
total cost of the benefit. (OMB Circular A-136, p. 49, section II.4.4.3)

42 See footnote above.

       Cost Accounting - Costing Methodology      Yes, No, or                 
                                                      N/A        Explanation  
                     (24 - 30)                                                
Cost accumulation is the process of collecting cost data in an organized
way by responsibility segment. (SFFAS 4, par. 117) Cost assignment is a
process that identifies accumulated costs with reporting periods and cost
objects. Three methods of cost assignment are direct tracing, cause and
effect, and allocating costs on a reasonable and consistent basis. (SFFAS
4, par. 120) Cost object or cost objective is an activity, output, or item
the cost of which is to be measured. (SFFAS 4, par. 121)
                                                 
Entities are not required to use a particular costing system or costing
methodology, but the costing system or methodology used should be
appropriate to the entity's operating environment and used consistently.
Four examples of acceptable (but not necessarily mutually exclusive)
costing methodologies are activity-based costing, job order costing,
process costing, and standard costing. (SFFAS 4, par. 144-147)
      24) Is the entity's accounting system                                   
      capable of identifying costs within                                     
      responsibility segments? (SFFAS 4, par.                                 
      118)                                                                    
      25) Are the costs of resources used by                                  
      responsibility segments classified by type                              
      of resource, such as costs of employees,                                
      materials, capital, utilities, and rent?                                
      (SFFAS 4, par. 119)                                                     
      26) Are data on the quantity of units                                   
      (e.g., staff days, gallons of gasoline                                  
      consumed) related to the various cost                                   
      categories maintained, when appropriate                                 
      and feasible? (SFFAS 4, par. 119)                                       
      27) How are costs assigned to outputs                                   
                                                                              
              a) directly tracing costs used in                               
              the production of an output,                                    
              wherever economically feasible,^43                              
              or                                                              
              b) assigning costs on a                                         
              cause-and-effect basis, or                                      
              c) allocating costs on a                                        
              reasonable and consistent basis?                                
                                                                              
      (SFFAS 4, par. 124)                                                     
      28) For cost allocation purposes, do                                    
      indirect costs assigned to a given cost                                 
      pool have similar characteristics? (SFFAS                               
      4, par. 136)                                                            
      29) Are common costs^44 assigned to                                     
      activities either on a cause-and-effect                                 
      basis, if feasible, or through reasonable                               
      allocations? (SFFAS 4, par. 140)                                        
      30) Are the full costing methodologies                                  
      that are appropriate to a segment's                                     
      operating environment used and                                          
      consistently followed, and any changes                                  
      documented and explained? (SFFAS 4, par.                                
      145 & 146)                                                              

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

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

                   Revenues (31 - 44)                 Yes, No, or Explanation 
                                                          N/A                 
Revenues are inflows of resources that the government demands, earns, or
receives by donation. Revenue comes from two sources: exchange
transactions and nonexchange transactions. (SFFAS 7, par. 30)
                                                     
Exchange (or earned) revenues arise when a government entity provides
goods or services to the public or to another government entity for a
price. (SFFAS 7, par. 30) Nonexchange revenues arise primarily from the
government's sovereign power to demand payments from the public (e.g.,
taxes, duties, fines), and also include donations. (SFFAS 7, par. 30)
                                                     
The net cost of a program is the difference between its gross costs and
related exchange revenues. (OMB Circular A-136, p. 50, section II.4.4.5)
The net cost of operations by a reporting entity consists of gross cost
incurred by the reporting entity less any exchange revenue earned from its
activities. (OMB Circular No. A-136, p. 50, section II.4.4.8)
      31) Is collected custodial nonexchange revenue                          
      that is legally retained by the collecting                              
      entity as reimbursement for the cost of                                 
      collection, recognized as exchange revenue?                             
      (SFFAS 7, par. 60.3)                                                    
      32) Is revenue received from the public or                              
      other government entity in return for                                   
      providing goods or services recognized as                               
      exchange revenue? (SFFAS 7, par. 34)                                    
      33) If an exchange transaction is unusual or                            
      nonrecurring for a particular entity, is a                              
      gain or loss recognized rather than a revenue                           
      or expense? (SFFAS 7, par. 35)                                          
      34) Is exchange revenue recognized when                                 
      services are performed for transactions in                              
      which services are provided to the public or                            
      another government entity? (SFFAS 7, par. 34 &                          
      36 (a))                                                                 
      35) If specific goods or services are made to                           
      order under terms of a contract, is exchange                            
      revenue (and any probable loss) recognized in                           
      proportion to estimated total cost when goods                           
      and services are acquired to fulfill the                                
      contract? (SFFAS 7, par. 36(b))                                         
      36) When goods are kept in inventory so that                            
      they are available to customers when ordered,                           
      is exchange revenue recognized when the goods                           
      are delivered to the customer? (SFFAS 7, par.                           
      36(c))                                                                  
      37) If services are rendered continuously or                            
      the right to use an asset extends continually                           
      over time, is exchange revenue recognized in                            
      proportion to the passage of time or the use                            
      of the asset? (SFFAS 7, par. 36(d))                                     
      38) Is interest received on intra-governmental                          
      loans recognized as exchange revenue if the                             
      source of borrowed funds is predominately                               
      exchange revenue? (SFFAS 7, par. 36(d))                                 
      39) When an asset other than inventory is                               
      sold, is any gain (or loss) recognized when                             
      the asset is delivered to the purchaser?                                
      (SFFAS 7, par. 36(e))                                                   
      40) When advance fees or payments are                                   
      received, such as for large-scale, long-term                            
      projects, is revenue recognized only as the                             
      cost of providing the corresponding goods and                           
      services are incurred? (SFFAS 7, par. 37)                               
      41) Is the measurement of revenue from                                  
      exchange transactions based on the actual                               
      price received or receivable under established                          
      pricing arrangements? (SFFAS 7, par. 38)                                
      42) To the extent that realization of the full                          
      amount of exchange revenue is not probable due                          
      to credit losses (caused by the failure of the                          
      debtor to pay the established or negotiated                             
      price), is an expense recognized and the                                
      allowance for bad debts increased, if the bad                           
      debts can be reasonably estimated? (SFFAS 7,                            
      par. 40)                                                                
      43) If the realization of the full amount of                            
      exchange revenue is not probable for reasons                            
      apart from credit losses (e.g., returns and                             
      allowances), is a provision made to reduce the                          
      recognized revenue (if amounts can be                                   
      reasonably estimated), with the provision                               
      recognized as a revenue adjustment? (SFFAS 7,                           
      par. 41)                                                                
      44) Is exchange revenue recognized regardless                           
      of whether the entity retains the revenue for                           
      its own use or transfers it to other entities?                          
      (SFFAS 7, par. 43)                                                      

Pensions, Other Retirement, and Post Employment  Yes, No, or  Explanation  
               Benefit Costs (45 - 68)                  N/A                   
Pension benefits include all retirement, disability, and survivor benefits
financed through a pension plan, including unfunded pension plans.
Required federal payments to social insurance plans (i.e., Social Security
and Medicare) and matching federal payments to defined contribution
pension plans are also considered to be plan expenses. (SFFAS 5, par. 61)
                                                    
Costs of pensions and other retirement benefits (ORB), whether they are
paid for in part or in total by other governmental entities, are included
in the costs of program outputs. (SFFAS 4, par. 95)) Recognition of other
postemployment benefits (OPEB) is linked to the occurrence of an OPEB
event rather than the production of an output. OPEB costs are generally
treated as period expenses. Special-purpose cost studies may distribute
OPEB costs over a number of prior years to determine the cost of outputs
OPEB recipients helped produce. (SFFAS 4, par. 96 & 97)
                                                    
In accounting for pensions, ORB, and OPEB, the "administrative entity,"
typically manages and accounts for the related assets and liabilities. The
"employer entity" accounts for the related costs of pensions, ORB, and
OPEB. For these costs the employer entity receives a salary and expense
appropriation, imputes a financing source, or both. (SFFAS 5, par. 57,
footnote 38)                                     
                                                    
The "aggregate entry age normal" actuarial cost method is one under which
the expenses or liabilities arising from the actuarial present value of
projected pension benefits are allocated on a level basis over the
earnings or the service of the group between entry age and assumed exit
ages. The portion of the actuarial present value of pension plan and
benefits and expenses that is allocated to a valuation year is called
"normal cost." (SFFAS 5, par. 64)                
      45) Are pensions and ORB recognized as                                  
      expenses at the time the employee's services                            
      are rendered? (SFFAS 5, par. 59)                                        
      46) Are postemployment benefits recognized as                           
      expenses at the time the accountable event                              
      occurs? (SFFAS 5, par. 59)                                              
      47) Is the "aggregate entry age normal"                                 
      actuarial cost method (or other actuarial                               
      cost method, if the results are not                                     
      materially different and an explanation is                              
      provided) used to calculate pension expense,                            
      the liability for the administrative entity                             
      financial statements, and the expense for the                           
      employer entity financial statements? (SFFAS                            
      5, par. 64)                                                             
      48) When using the "aggregate entry age                                 
      normal" actuarial cost method, does the                                 
      entity allocate pension expenses on the basis                           
      of a level percentage of earnings? (SFFAS 5,                            
      par. 64)                                                                
      49) Does the administrative entity base its                             
      actuarial assumptions for pension plans on                              
      the experience of the covered groups,                                   
      long-term trends, and guidance of the                                   
      Actuarial Standards Board? (SFFAS 5, par. 65)                           
      50) Does the administrative entity base its                             
      interest rate assumptions on the estimated                              
      long-term investment yield for the pension                              
      plan or, if the plan is not being funded, on                            
      some other appropriate long-term assumption                             
      (e.g., the federal long-term borrowing rate)?                           
      (SFFAS 5, par. 66)                                                      
      51) When a new pension plan is initiated or a                           
      current one amended, does the administrative                            
      entity recognize all past and prior service                             
      costs^45 or gains immediately, without                                  
      amortization? (SFFAS 5, par. 69)                                        
      52) Does the administrative entity recognize                            
      actuarial gains and losses^46 immediately,                              
      without amortization? (SFFAS 5, par. 69)                                
      53) Does the administrative entity report                               
      pension plan revenue for the sum of                                     
      contributions from                                                      
                                                                              
              a) the employer,                                                
              b) its employees,^47 and                                        
              c) interest on the plan's                                       
              investments?                                                    
                                                                              
      (SFFAS 5, par. 73)                                                      
      54) Does the employer entity recognize a                                
      pension expense that equals the service cost                            
      (normal cost) for its employees for the                                 
      accounting period, less the amount                                      
      contributed by the employees, if any? (SFFAS                            
      5, par. 74)                                                             
      55) Is the employer entity's pension expense                            
      balanced by (1) a decrease to its "fund                                 
      balance with Treasury" for the amount of its                            
      contribution to the pension plan, if any; and                           
      if this does not equal the full pension                                 
      expense, by (2) an increase to an account                               
      representing an intra-governmental financing                            
      source (e.g., "imputed financing- expenses                              
      paid by other agencies)?" (SFFAS 5, par. 75)                            
      56) If the employer entity is also the                                  
      administrative entity, does it also report                              
      the liability^48 and recognize the expense                              
      for all components of the pension plan's                                
      cost? (SFFAS 5, par. 71 & 76)                                           
ORB includes all retirement benefits other than pension benefits. The
predominant ORB expense in the federal government is retirement health
benefits. (SFFAS 5, par. 58 & 79)                
      57) Is the "aggregate entry age normal"                                 
      actuarial cost method (or other actuarial                               
      cost method, if the results are not                                     
      materially different and an explanation is                              
      provided) used to calculate the ORB expense                             
      and liability for the administrative entity                             
      financial statements and the expense for the                            
      employer entity financial statements? (SFFAS                            
      5, par. 82)                                                             
      58) Are expenses and other liabilities                                  
      attributable to ORB expenses allocated based                            
      on the service provided by each employee?                               
      (SFFAS 5, par. 82)                                                      
      59) Do the amounts calculated for financial                             
      reports prepared for ORB plans reflect                                  
                                                                              
              a) general actuarial and economic                               
              assumptions that are consistent with                            
              those used for pensions, and                                    
              b) a health care cost trend                                     
              assumption that is consistent with                              
              Medicare projections or other                                   
              authoritative sources appropriate for                           
              the population covered by the plan?                             
                                                                              
      (SFFAS 5, par. 83)                                                      
      60) Does the administrative entity discount                             
      the projected ORB costs at the rate of                                  
      expected return of plan assets, if the plan                             
      is being funded, or on some other long-term                             
      assumptions (e.g., the long-term federal                                
      government borrowing rate) for unfunded                                 
      plans? (SFFAS 5, par. 83)                                               
      61) Is the accrual period for ORB based on                              
      the expected retirement age rather than the                             
      age when the employee first becomes eligible                            
      for retirement benefits? (SFFAS 5, par. 84)                             
      62) When a new ORB plan is initiated or a                               
      current one amended, does the administrative                            
      entity recognize all past and prior service                             
      costs or gains immediately, without                                     
      amortization? (SFFAS 5, par. 86 & 87)                                   
      63) Does the administrative entity recognize                            
      all actuarial gains and losses from changes                             
      in the ORB liability immediately, without                               
      amortization? (SFFAS 5, par. 86 & 87)                                   
      64) Does the administrative entity report ORB                           
      revenue for the sum of contributions from the                           
      employer entity and its employees? (SFFAS 5,                            
      par. 89)                                                                
      65) Does the employer entity report ORB                                 
      expenses equal to the service cost (normal                              
      cost) for its employees for the accounting                              
      period, less the amount contributed by the                              
      employees? (SFFAS 5, par. 90)                                           
      66) Is the employer entity's ORB expense                                
      balanced by either                                                      
                                                                              
              a) a decrease to its "fund balance                              
              with Treasury" for the amount of its                            
              contribution to the ORB plan, if any,                           
              or                                                              
              b) an increase to an account                                    
              representing an intra-governmental                              
              imputed financing source (e.g.,                                 
              "imputed financing-expenses paid by                             
              other entities")?                                               
                                                                              
      (SFFAS 5, par. 91)                                                      
      67) If the employer entity is also the                                  
      administrative entity, does it also report                              
      the liability^49 and recognize the expense                              
      for all components of the ORB's cost? (SFFAS                            
      5, par. 88 & 92)                                                        
OPEB are provided to former or inactive employees, beneficiaries, and
covered dependents outside pension or ORB plans. Postemployment benefits
can include salary continuation, severance benefits, counseling and
training, continuation of health care or other benefits, unemployment
workers' compensation, and veterans' disability compensation benefits paid
by the employer. (SFFAS 4, par. 96; SFFAS 5, par. 57 & 94)
      68) Does the employer recognize an expense                              
      and a liability for OPEB when a future                                  
      outflow or other sacrifice of resources is                              
      probable (i.e., more likely than not) and                               
      measurable? (SFFAS 5, par. 95)                                          

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

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

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

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

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

    Inventory, Materials, Supplies, and Commodities   Yes, No, or Explanation 
                    Costs (69 - 77)                       N/A                 
Upon sale of inventory (when the title passes or the goods are delivered)
or upon use in the provision of a service, the related expense shall be
recognized and the cost of those goods shall be removed from inventory.
(SFFAS 3, par. 19)                                 
                                                      
The cost of goods shall be removed from operating materials and supplies
(i.e., the asset account) and reported as an operating expense in the
period they are issued to an end user for consumption in normal
operations. (SFFAS 3, par. 39)                     
      69) Upon sale or use of inventory, is the                               
      related expense recognized and the cost of                              
      those goods removed from the inventory asset                            
      account? (SFFAS 3, par. 19)                                             
      70) To arrive at the historical cost of ending                          
      inventory and cost of goods sold, is one of the                         
      following cost flow assumptions used                                    
                                                                              
              a) FIFO,                                                        
              b) weighted average,                                            
              c) moving average, or                                           
              d) any other valuation method (such as                          
              a standard cost system) whose results                           
              reasonably approximate one of the above                         
              historical cost methods?                                        
                                                                              
      (SFFAS 3, par. 22)                                                      
      71) Are operating materials and supplies                                
      expensed using the consumption method (i.e.,                            
      reported as an operating expense when they are                          
      issued to the end user for consumption in                               
      normal operations)? (SFFAS 3, par. 38 & 39)                             
      72) Are operating materials and supplies                                
      expensed upon purchase (purchase method) if                             
                                                                              
              a) they are of insignificant amounts,                           
              and                                                             
              b) they are in the hands of the end                             
              user for use in normal operations, or                           
              c) it is not cost beneficial to apply                           
              the consumption method?                                         
                                                                              
      (SFFAS 3, par. 40 & 41)                                                 
      73) Are inventory and operating materials and                           
      supplies acquired through a nonmonetary                                 
      exchange valued at the fair value of the items                          
      received at the time of the exchange, and is                            
      the difference between the fair value of the                            
      acquired items and the recorded amount                                  
      surrendered reported as a gain or loss? (SFFAS                          
      3, par. 21 & 43)                                                        
      74) Are abnormal costs associated with                                  
      inventory and operating materials and supplies,                         
      such as excessive handling or rework costs,                             
      charged to operations of the period? (SFFAS 3,                          
      par. 21 & 43)                                                           
      75) Are any unrealized gains or losses                                  
      resulting from periodic revaluations of                                 
      inventory captured in a designated allowance                            
      account? (SFFAS 3, par. 23 & 24)                                        
      76) Is the cost of stockpile materials removed                          
      from the corresponding asset account and                                
      reported as an operating expense when issued                            
      for use or sale? (SFFAS 3, par. 52)                                     
      77) Are abnormal costs of stockpile materials,                          
      such as excessive handling and rework costs,                            
      expensed in current operations? (SFFAS 3, par.                          
      53)                                                                     

         Property, Plant, and Equipment Costs        Yes, No, or              
                                                         N/A      Explanation 
                       (78 - 92)                                              
A common expense related to PP&E that is included in the Statement of Net
Cost is depreciation. Other PP&E-related expenses that are reported in the
Statement of Net Cost include all current costs of acquiring and
maintaining stewardship land and heritage assets (other than multiuse
heritage assets.) (SFFAS 6, par. 35, & 69; SFFAS 16, par. 8)
                                                     
Depreciation expense is calculated through systematic and rational
allocation of the cost of PP&E, less its estimated salvage or residual
value, over its estimated useful life. A composite or group
methodology,^50 whereby the costs of PP&E are allocated using the same
allocation rate, is permissible. (SFFAS 6, par. 35; SFFAS 23, par. 9, item
f)                                                
      78) Is depreciation expense recognized on all                           
      general PP&E? (SFFAS 6, par. 35)                                        
      79) If historical cost information has not                              
      been maintained for PP&E, does the entity                               
      depreciate or amortize the estimated net                                
      remaining cost over its remaining useful life                           
      in a systematic and rational manner? (SFFAS 6,                          
      par. 35, 40, & 41)                                                      
      80) In an exchange transaction with a                                   
      nonfederal entity, is the difference between                            
      the book value (i.e., cost less accumulated                             
      depreciation) of PP&E surrendered and the cost                          
      of PP&E acquired^51 recognized as either a                              
      gain or a loss? (SFFAS 6, par. 32)                                      
      81) In the event that cash consideration is                             
      included in the exchange transaction with a                             
      non federal entity, is the cost of PP&E                                 
      acquired either increased by the amount of                              
      cash consideration surrendered or decreased by                          
      the amount of cash consideration received?                              
      (SFFAS 6, par. 32)                                                      
      82) When assets have been removed from PP&E in                          
      anticipation of disposal, retirement, or                                
      removal from service, has the entity stopped                            
      recording depreciation and amortization                                 
      expenses for such assets? (SFFAS 6, par. 38 &                           
      39)                                                                     
      83) For general PP&E that is disposed of,                               
      retired or removed from service, is any                                 
      difference between the book value of the PP&E                           
      and amounts realized recognized as a gain or a                          
      loss in the period of disposal, retirement, or                          
      removal from service? (SFFAS 6, par. 38)                                
      84) For PP&E assets removed from general PP&E                           
      accounts prior to disposal, retirement or                               
      removal from service, is the expected net                               
      realizable value of these assets adjusted at                            
      the end of each accounting period, and is any                           
      adjustment made recognized as either a gain or                          
      loss? (SFFAS 6, par. 39)                                                
      85) Are costs to acquire, improve,                                      
      reconstruct, or renovate heritage assets,                               
      other than multiuse heritage assets,                                    
      recognized for the period in which the costs                            
      are incurred? (SFFAS 29, par. 19)                                       
      86) Do the recognized costs of heritage assets                          
      also include all costs incurred during the                              
      period to bring the item(s) to their current                            
      condition? (SFFAS 29, par. 19)                                          
      87) Are amounts for heritage assets acquired                            
      through donation or devise excluded from the                            
      cost of heritage assets with the exception of                           
      multi-use heritage assets? (SFFAS 29, par. 20)                          
      88) Are amounts for stewardship land acquired                           
      through donation or devise excluded from the                            
      cost of stewardship land? (SFFAS 29, par. 38)                           
      89) Is the cost of acquisition of stewardship                           
      land, including all costs to prepare                                    
      stewardship land for its intended purpose                               
      (e.g., razing a building), recognized for the                           
      period in which the cost is incurred? (SFFAS                            
      29, par. 37)                                                            
      90) If stewardship land is acquired along with                          
      existing structures and the structure is                                
      deemed a heritage asset that is significant,                            
      does the entity treat the acquisition cost as                           
      either the cost of stewardship land, heritage                           
      asset, or both based on its judgment? (SFFAS                            
      29, par. 37a)                                                           
      91) If stewardship land is acquired along with                          
      existing structures and the structure is to be                          
      used in operations (e.g., as general PP&E) but                          
      the value is significant or its acquisition is                          
      merely a byproduct of the acquisition of the                            
      land, is the cost treated as an acquisition of                          
      stewardship land? (SFFAS 29, par. 37b)                                  
      92) If stewardship land is acquired along with                          
      existing structures and the structure is                                
      significant and has an operating use (e.g., a                           
      constructed hotel or employee housing block),                           
      is the structure treated as general PP&E by                             
      identifying the cost attributable to general                            
      PP&E and segregated from the cost of the                                
      stewardship land acquired? (SFFAS 29, par.                              
      37c)                                                                    

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

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

             Clean-up Costs (93 - 100)             Yes, No, or   Explanation  
                                                       N/A                    
Clean-up costs are the costs of removing, containing, and/or disposing of
(1) hazardous waste from property or (2) material and/or property that
consists of hazardous waste upon permanent or temporary closure or
shutdown of associated PP&E. Clean-up costs may include, but are not
limited to, decontamination, decommissioning, site restoration, site
monitoring, closure, and postclosure costs. (SFFAS 6, par. 85 & 87)
      93) When PP&E is placed into service, does                              
      the entity estimate the associated clean-up                             
      costs? (SFFAS 6, par. 94)                                               
      94) In estimating clean-up costs and                                    
      liability, has the entity evaluated                                     
                                                                              
              a) the level of restoration to be                               
              performed,                                                      
              b) current legal and regulatory                                 
              requirements,                                                   
              c) current technology, and                                      
              d) current costs (i.e., amount that                             
              would be paid if all goods and                                  
              services included in the clean-up                               
              estimate were acquired in the                                   
              current period)?                                                
                                                                              
      (SFFAS 6, par. 95)                                                      
      95) Are estimated clean-up costs                                        
      periodically revised to account for                                     
      material changes due to inflation or                                    
      deflation and changes in regulations,                                   
      plans, and/or technology? (SFFAS 6, par.                                
      96)                                                                     
      96) When PP&E is placed into service, does                              
      the entity recognize cleanup costs during                               
      each period that general PP&E is in                                     
      operation, in a systematic and rational                                 
      manner based on either                                                  
                                                                              
              a) physical capacity of the PP&E,                               
              (e.g., expected usable landfill                                 
              area), or                                                       
              b) the estimated useful life of the                             
              associated PP&E (if physical                                    
              capacity is not applicable or                                   
              estimable)?                                                     
                                                                              
      (SFFAS 6, par. 97)                                                      
      97) Does recognition of the cleanup costs                               
      and the accumulation of the related                                     
      liability begin on the date that the                                    
      associated PP&E is placed into service,                                 
      continue in each period that operation                                  
      continues, and end when the PP&E ceases                                 
      operation? (SFFAS 6, par. 98)                                           
      98) If clean-up costs are reestimated, are                              
      the cumulative effects of changes in total                              
      estimated cleanup costs related to current                              
      and past operations of PP&E immediately                                 
      recognized as an expense and is the                                     
      corresponding liability adjusted? (SFFAS 6,                             
      par. 99)                                                                
      99) When stewardship PP&E is placed into                                
      service, does the entity expense the total                              
      estimated clean-up costs and establish a                                
      liability in the period the asset is placed                             
      into service? (SFFAS 6, par. 101)                                       
      100) If clean-up costs for stewardship PP&E                             
      are reestimated, are any adjustments to the                             
      liability associated with clean-up costs                                
      expensed in the period of the change in                                 
      estimate? (SFFAS 6, par. 102)                                           

               Interest Costs (101 - 102)             Yes, No. or Explanation 
                                                          N/A                 
Interest incurred results from borrowing funds from Treasury, Federal
Financing Bank, other federal entities, or the public. Interest also
should be recorded on late payment of bills by the federal entity and on
refunds. (SFFAS 1, par. 81)                        
                                                      
Interest costs are generally related to securities and other debt
instruments issued by the U.S. Treasury or other federal agencies. (SFFAS
5, par. 47-48)                                     
      101) Does the related interest cost of federal                          
      debt include                                                            
                                                                              
              a) the accrued (prorated) share of the                          
              interest incurred during the accounting                         
              period,                                                         
              b) the amortized discounts or premiums                          
              for each accounting period for fixed                            
              value securities, and                                           
              c) the amount of change in the current                          
              value for the accounting period for                             
              variable value securities?                                      
                                                                              
      (SFFAS 5, par. 53)                                                      
      102) If securities are retired before maturity,                         
      is the difference between the reacquisition                             
      price and net carrying value of the                                     
      extinguished debt recognized in the period of                           
      extinguishment as a gain or loss? (SFFAS 5,                             
      par. 54)                                                                

     Insurance and Subsidies Costs (103 - 106)    Yes, No, or    Explanation  
                                                      N/A                     
Federal insurance and guarantee programs are established to assume risks
that private sector entities are unwilling or unable to assume or to
subsidize the provision of insurance to achieve social objectives. For
life insurance, a premium deficiency occurs if the liability for future
policy benefits using current conditions exceeds the liability for future
policy benefits using contract conditions. (SFFAS 5, par. 97 & 120)
      103) If an insured event has occurred as                                
      of the financial statement reporting date,                              
      has the federal entity recognized an                                    
      expense for all claims incurred during the                              
      period, including, when appropriate, those                              
      incurred but not reported (IBNR) and                                    
      contingencies that meet the criteria for                                
      recognition? (SFFAS 5, par. 104 & 109)                                  
      104) Are changes in estimates of claim                                  
      cost resulting from                                                     
                                                                              
      (1) the present value calculations,                                     
                                                                              
      (2) the continuous review process, and                                  
                                                                              
      (3) differences between the estimates and                               
      actual payments for claims,                                             
                                                                              
      recognized as charges against operations                                
      of the period in which the estimates are                                
      changed or payments are made?                                           
                                                                              
      (SFFAS 5, par. 109)                                                     
      105) If the liability for future [life                                  
      insurance] policy benefits using current                                
      conditions exceeds the liability for                                    
      future policy benefits under contract                                   
      conditions (resulting in a premium                                      
      deficiency), is the difference recognized                               
      as a charge to operations in the current                                
      period? (SFFAS 5, par. 120)                                             
      106) Does the entity recognize an expense                               
      for social insurance^52 benefits paid                                   
      during the reporting period plus any                                    
      increase (or less any decrease) in the                                  
      liability for social insurance benefits                                 
      due and payable to or on behalf of                                      
      beneficiaries, from the end of the prior                                
      period to the end of the current period?                                
      (SFFAS 17, par. 22)                                                     

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

  Section VII -  Budgetary Resources

There are five questions in this section which relate to accounting for
budgetary resources in the Statement of Budgetary Resources (SBR).

           Budgetary Resources (1 - 5)           Yes, No, or    Explanation   
                                                     N/A                      
Offsetting receipts are collections that are credited to general fund,
special fund, or trust fund receipt accounts and that offset gross
outlays. Unlike offsetting collections, which are credited to expenditure
accounts and offset outlays at the account level, offsetting receipts are
credited to receipt accounts and offset outlays at the agency or
governmentwide level.                        
                                                
Offsetting receipts may be distributed or undistributed to agencies.
Distributed offsetting receipts offset the outlays of the agency, while
undistributed offsetting receipts offset governmentwide outlays.
Distributed offsetting receipts typically offset the outlays of the agency
that conducts the activity, generating the receipts and the subfunction to
which the activity is assigned. Offsetting receipts are composed of
proprietary receipts from the public, receipts from intra-governmental
transactions, and offsetting governmental receipts. (OMB Circular No.
A-136, p. 67, section II.4.6.9)              
      1) Do offsetting receipts include all                                   
      distributed offsetting receipts for the                                 
      entity?^53 (OMB Circular No. A-136, p.                                  
      67, section II.4.6.9)                                                   
      2) Do offsetting receipts include receipt                               
      accounts for the entity contained in                                    
      Treasury Combined Statement (TCS) Part                                  
      Four, Other Information/Receipts by                                     
      Department Listing for                                                  
                                                                              
              a) Proprietary Receipts from the                                
              Public,                                                         
              b) Intrabudgetary Receipts                                      
              Deducted by Agencies, and                                       
              c) Offsetting Governmental                                      
              Receipts?                                                       
                                                                              
      (OMB Circular No. A-136, p. 67, section                                 
      II.4.6.9)                                                               
      3) Is the amount of distributed                                         
      offsetting receipts the aggregate of cash                               
      collected in these receipt accounts and                                 
      reported to Treasury on a monthly                                       
      basis?^54 (OMB Circular No. A-136, p. 67,                               
      section II.4.6.9)                                                       
      4) Does the entity credit undistributed                                 
      offsetting receipts to governmentwide                                   
      outlay totals which results in an                                       
      exclusion from the SBR? (OMB Circular No.                               
      A-136, p. 67, section II.4.6.9)                                         
      5) In order to have consistency between                                 
      the information presented in the SBR and                                
      the Budget of the United States                                         
      Government, does the entity                                             
                                                                              
              a) post all changes, whether                                    
              material or not, to OMB's MAX                                   
              A-11 budget preparation system                                  
              during the time frames provided                                 
              by OMB, and                                                     
              b) post all changes, whether                                    
              material or not, to the Federal                                 
              Agencies Centralized                                            
              Trial-balance System II (FACTS                                  
              II) during the time period                                      
              specified for posting corrections                               
              to the budget information?                                      
                                                                              
      (OMB Circular No. A-136, p. 32, section                                 
      II.4.2, item 6)                                                         

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

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

  Section VIII -  Custodial Activity

Questions related to accounting for custodial activity in the financial
statements are presented below.

Caption                                                  Question Numbers 
General                                                         1         
Sources of Collections                                        2 - 7       
Dedicated Collections and Other Accompanying Information      8 - 12      

                    General (1)                   Yes, No, or N/A Explanation 
Collecting entities do not recognize as revenue those collections that
have been or should be transferred to others as revenues.^55 Rather, they
shall account for sources and disposition of the collections as custodial
activities.                                    
                                                  
Custodial collections are normally nonexchange revenues, such as taxes and
duties collected by the Internal Revenue Service and the U.S. Customs and
Border Protection. (OMB Circular No. A-136, p. 75, section II.4.8.1)
      1) If the entity collects exchange revenue                              
      (e.g., rents and royalties) on behalf of                                
      other entities and recognizes virtually no                              
      costs in connection with earning that                                   
      revenue, does the entity account for it as                              
      a custodial activity? (SFFAS 7, par. 45)                                

55 Revenue collected is not revenue that the collecting entity can use  in
its operations and is thus not recognized. The sources of cash  collection
are reported  by  type  as  indicated  in  the  illustrated  statement  of
custodial activity. (OMB Circular A-136, p. 75, section II.4.8.2)

             Sources of Collections (2 - 7)           Yes, No, or Explanation 
                                                          N/A                 
      2) Are transactions recognized as taxes and                             
      other nonexchange revenues from the public for                          
                                                                              
              a) individual and corporate income                              
              taxes, social insurance taxes and                               
              contributions, excise taxes, estate and                         
              gift taxes, and customs duties,                                 
              b) social insurance taxes and                                   
              contributions paid by federal                                   
              employees,                                                      
              c) deposits by states for unemployment                          
              trust funds,                                                    
              d) user fees and harbor maintenance                             
              trust fund payments,                                            
              e) customs service fees,                                        
              f) deposits of earnings from the                                
              Federal Reserve System,                                         
              g) donations, except types of PP&E that                         
              are expensed,                                                   
              h) fines and penalties,                                         
              i) penalties due to delinquent taxes in                         
              connection with custodial activity, and                         
              j) forfeitures?                                                 
                                                                              
      (SFFAS 7, par. 49; SFFAS 7, Appendix B, par.                            
      242 - 264)                                                              
      3) Does the collecting entity measure taxes and                         
      duties on a cash basis and then modify that                             
      with an accrual adjustment to determine the                             
      amount of revenue to be recognized? (SFFAS 7,                           
      par. 49 & 52)                                                           
      4) Except for deposits, are cash collections^56                         
      based on amounts actually received during the                           
      fiscal period including withholdings, estimated                         
      payments, final payments, and collections of                            
      receivables? (SFFAS 7, par. 50 & 59)                                    
      5) Are the components of cash collections                               
      classified by source and nature of collection,                          
      such as by type of tax or duty? (OMB Circular                           
      No. A-136, p. 77, section II.4.8.3)                                     
      6) Are cash refunds of nonexchange revenue                              
      based on refunds of taxes and duties during the                         
      period? (SFFAS 7, par. 51)                                              
      7) Do cash refunds of nonexchange revenue for                           
      taxes and duties include refund offsets^57 and                          
      drawbacks?^58 (SFFAS 7, par. 51)                                        

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

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

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

    Dedicated Collection and Other Accompanying   Yes, No, or    Explanation  
               Information (8 - 12)                   N/A                     
Dedicated collections are funds held with the expectation that they will
be applied to the purposes for which the funds were dedicated. Such funds
include all funds within the budget classified as trust funds, those funds
within the budget that are classified as "special funds" but that are
similar in nature to trust funds, and those funds (inside or outside the
budget) that are fiduciary in nature. (SFFAS 7, par. 83)
Questions 8 - 10 are applicable to funds not meeting the definition of
earmarked funds defined in SFFAS 27.          
      8) Does the management of a reporting                                   
      entity identify and track the receipts and                              
      expenditures of dedicated trust funds,                                  
      "special funds," and fiduciary or deposit                               
      funds (both inside and outside the budget)                              
      for which it is responsible? (SFFAS 7,                                  
      par. 83)                                                                
      9) If revenues, other financing sources,                                
      or costs are associated with, but not                                   
      legally allowable to a fund, does the                                   
      larger reporting entity of which the fund                               
      is a component recognize them? (SFFAS 7,                                
      par. 86)                                                                
      10) If more than one reporting entity is                                
      responsible for carrying out a program                                  
      financed with dedicated collections, does                               
      the entity with the largest share of the                                
      activity take responsibility for reporting                              
      all revenues, other financing sources,                                  
      assets, liabilities, and costs of the                                   
      fund? (SFFAS 7, par. 87)                                                
      11) If information on actual collections                                
      is not currently available from the                                     
      collecting entity, do the trust funds that                              
      are legally entitled to receive only                                    
      excise taxes that are actually collected                                
      by the collecting entity recognize revenue                              
      from excise taxes on the basis of                                       
      assessments in lieu of excise taxes                                     
      actually collected? (SFFAS 7, par. 60.1)                                
      12) Is the amount of revenue recognized by                              
      the social security trust fund based on                                 
      the best available information (i.e., on                                
      the basis of the higher of the amount of                                
      Internal Revenue Service (IRS) assessments                              
      or the amounts actually reported by                                     
      employers to Social Security                                            
      Administration)? (SFFAS 7, par. 60.2)                                   

  Section IX -  Required Supplementary Stewardship Information

Questions related to accounting for stewardship investments in the
financial statements are presented below.

           Stewardship Investments (1 - 14)         Yes, No, or  Explanation  
                                                        N/A                   
Stewardship investments are substantial investments made by the federal
government for the benefit of the nation. When incurred, they are treated
as expenses in calculating net cost, but they are also separately reported
as RSSI to highlight the extent of investments that are made for long-term
benefit. (SFFAS 8, par. 12) Stewardship investments include:
                                                    
      o nonfederal physical property: federally financed (but not federally
      owned) purchases, construction, or major renovation of physical
      property owned by state and local governments, including major
      additions, alterations, and replacements, the purchase of major
      equipment; and the purchase or improvement of other physical assets.^59
      o human capital: expenses incurred for programs for education and
      training of the public^60 that are intended to increase or maintain
      national productive capacity and that produce outputs and outcomes that
      provide evidence of maintaining or increasing national productive
      capacity.                                     
      o research and development: expenses incurred to support the search for
      new or refined knowledge and ideas and for the application or use of
      such knowledge and ideas for the development of new or improved
      products and processes with the expectation of maintaining or
      increasing national productive capacity or yielding other future
      benefits. (SFFAS 8, par. 12, 83, 89, 90, & 96)
      1) Are nonfederal physical property                                     
      investments reported in nominal dollars on                              
      the basis of "expenses incurred" and measured                           
      on the same basis of accounting used for                                
      financial statement purposes, including                                 
      appropriate accrual adjustments, general and                            
      administrative overhead, and costs of                                   
      facilities? (SFFAS 8, par. 84)                                          
      2) Are investments in nonfederal physical                               
      property and related cash grants reported as                            
      expenses in arriving at the net cost of                                 
      operations? (SFFAS 8, par. 85)                                          
      3) Are expenses incurred for nonfederal                                 
      physical property program costs, contracts,                             
      or grants with split purposes^61 reported in                            
      RSSI on the basis of a logical allocation?                              
      (SFFAS 8, par. 86)                                                      
      4) If an allocation of nonfederal physical                              
      property program costs, contracts, or grants                            
      with split purposes is not feasible, is the                             
      investment reported on the basis of the                                 
      predominant application of the expenses                                 
      incurred? (SFFAS 8, par. 86)                                            
      5) Are investments in human capital reported                            
      in nominal dollars on the basis of "expenses                            
      incurred" and measured on the same basis of                             
      accounting as financial statements, including                           
      appropriate accrual adjustments, general and                            
      administrative overhead, and costs of                                   
      facilities? (SFFAS 8, par. 91)                                          
      6) Are expenses incurred for human capital                              
      program costs, contracts, or grants with                                
      split purposes^62 reported in RSSI on the                               
      basis of a logical allocation? (SFFAS 8, par.                           
      92)                                                                     
      7) If an allocation of human capital program                            
      costs, contracts, or grants with split                                  
      purposes is not feasible, is the investment                             
      reported on the basis of the predominant                                
      application of the expenses incurred? (SFFAS                            
      8, par. 92)                                                             
      8) Does the entity link its investments in                              
      human capital to outcomes that can be                                   
      described in financial, economic, or                                    
      quantitative terms? (SFFAS 8, par. 93)                                  
      9) If outcome data are not available, does                              
      the reporting entity report output data that                            
      best provide indications of the intended                                
      program outcomes? (SFFAS 8, par. 93)                                    
      10) Is the investment in research and                                   
      development reported in nominal dollars on                              
      the basis of "expenses incurred" and measured                           
      on the same basis of accounting used for                                
      financial statement purposes, including                                 
      appropriate accrual adjustments, general and                            
      administrative overhead, and costs of                                   
      facilities? (SFFAS 8, par. 97)                                          
      11) Are expenses incurred for research and                              
      development program costs, contracts, or                                
      grants with split purposes^63 reported in                               
      RSSI on the basis of a logical allocation?                              
      (SFFAS 8, par. 98)                                                      
      12) If an allocation of research and                                    
      development program costs, contracts, or                                
      grants with split purposes is not feasible,                             
      is the investment reported on the basis of                              
      the predominant application of the expenses                             
      incurred? (SFFAS 8, par. 98)                                            
      13) Does the entity link its investments in                             
      research and development to program outcome                             
      data via a narrative discussion of the major                            
      results achieved by the program during the                              
      year for                                                                
                                                                              
              a) basic research, which refers to an                           
              identification of any major new                                 
              discoveries that were made during the                           
              year,                                                           
              b) applied research, which refers to                            
              an identification of any major new                              
              applications that were developed                                
              during the year, and                                            
              c) development, which refers to the                             
              progress of major developmental                                 
              projects including the results with                             
              respect to projects completed or                                
              otherwise terminated during the year                            
              and the status of projects that will                            
              continue?                                                       
                                                                              
      (SFFAS 8, par. 99)                                                      
      14) If outcome data are not available, does                             
      the reporting entity use output data^64 that                            
      best provide indications of the intended                                
      program outcomes? (SFFAS 8, par. 99)                                    

59 Grants for maintenance and operations are not investments in nonfederal
physical property.

60 The definition  excludes education  and training  expensed for  federal
civilian and military personnel.

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

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

63 ibid.

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

  Section X -  Social Insurance

Questions related to accounting for social insurance programs in the
Statement of Social Insurance (SOSI) are presented below.

          Statement of Social Insurance        Yes, No, or N/A                
                                                                Explanation   
                  (Items 1 - 7)                                               
Reporting on stewardship responsibilities aids in assessing the federal
government's financial condition and the sufficiency of future budgetary
resources to sustain public services and meet obligations as they become
due. Information for social insurance programs is to be reported to
address fundamental questions about the current and future financial
condition of these programs. These fundamental questions include whether
scheduled expenditures are sustainable with current scheduled income.
Information required to be disclosed for social insurance programs is
intended to facilitate an assessment of the long-term sustainability of
the program as well as the ability of the program to raise resources from
future program participants to pay for benefits to present participants.
                                               
For the programs listed as social insurance, the entity should present the
actuarial present value for the projection period of all future
contributions and tax income (excluding interest) received from or on
behalf of current and future participants; the actuarial present value for
the projection period of estimated future scheduled expenditures paid to
or on behalf of current and future participants; and the actuarial present
value for the projection period of the estimated future excess of
contributions and tax income (excluding interest) over future scheduled
expenditures. The entity should provide such information for the current
year and separate estimates for each of the preceding four years. (SFFAS
17, par. 1; OMB Circular No. A-136, p. 78, section II.4.9.1)
      1) Are projections and estimates based                                  
      on the entity's best estimates of                                       
      demographic and economic assumptions?                                   
      (SFFAS 17, par. 25)                                                     
      2) Are future changes mandated by                                       
      current law incorporated into the                                       
      entity's demographic and economic                                       
      assumptions? (SFFAS 17, par. 24)                                        
      3) Are all projections and estimates                                    
      made as of a date (i.e., the valuation                                  
      date) as close to the end of the fiscal                                 
      year (i.e., current year) being reported                                
      on as possible and no more than 1 year                                  
      prior to the end of the current year?                                   
      (SFFAS 17, par. 26)                                                     
      4) Is the valuation date consistently                                   
      followed from year to year? (SFFAS 17,                                  
      par. 26)                                                                
      5) Are benefits paid during the                                         
      reporting period plus any increase (or                                  
      less any decrease) in the liability from                                
      the end of the prior period to the end                                  
      of the current period recognized as an                                  
      expense for the reporting period? (SFFAS                                
      17, par. 22)                                                            
      6) Are social insurance benefits due and                                
      payable to or on behalf of beneficiaries                                
      at the end of the reporting period,                                     
      including claims incurred but not                                       
      reported (IBNR) recognized as a                                         
      liability? (SFFAS 17, par. 22)                                          
      7) For Unemployment Insurance (UI), are                                 
      liabilities recognized for                                              
                                                                              
              a) amounts due to states and                                    
              territories for benefits they                                   
              have paid to beneficiaries but                                  
              for which they have not                                         
              withdrawn funds from the federal                                
              Unemployment Trust Fund (UTF) as                                
              of fiscal year end, and                                         
              b) estimated amounts to be                                      
              withdrawn from UTF and benefits                                 
              paid by states and territories                                  
              after fiscal year end for                                       
              compensable days occurring prior                                
              to fiscal year end?                                             
                                                                              
      (SFFAS 17, par. 23)                                                     

  Section XI -  Credit Reform

Questions related to accounting for credit reform in the financial
statements are presented below.

Caption                         Question Numbers 
Credit Program Receivables           1 - 29      
Liabilities for Loan Guarantees     30 - 37      
Credit Program Costs                38 - 75      
Other Financing Sources             76 - 81      

        Credit Program Receivables (1 - 29)        Yes, No, or   Explanation  
                                                       N/A                    
The Federal Credit Reform Act (FCRA) of 1990, as amended, divides loans
and loan guarantees into two groups: pre-1992 and post-1991. Pre-1992
refers to direct loan obligations or loan guarantee commitments made prior
to fiscal year 1992. Post-1991 refers to direct loan obligations or loan
guarantee commitments made after fiscal year 1991.^65 (OMB Circular No.
A-136, p. 98, section II.4.10.8, instructions item A)
      1) Are credit program receivables                                       
      considered an entity asset if                                           
                                                                              
              a) the entity has the authority to                              
              determine the use of the funds                                  
              collected, or                                                   
              b) the entity is legally obligated                              
              to use the funds to meet entity                                 
              obligations (e.g., loans payable to                             
              Treasury)?                                                      
                                                                              
      (OMB Circular No. A-136, p. 38, section                                 
      II.4.3.3)                                                               
      2) If a loan guarantee program, which                                   
      guarantees a loan, is generating a negative                             
      subsidy and the lender has not disbursed                                
      the loan as of the balance sheet date, does                             
      the entity include this amount as part of                               
      the total undelivered orders?^66 (OMB                                   
      Circular No. A-136, p. 38, section                                      
      II.4.3.3)                                                               
For post-1991 direct loans and guarantees, a subsidy expense is recognized
in the year they are disbursed. For pre-1992 direct loans and guarantees,
a loss and liability need not be recognized until it is more likely than
not that a loan (either direct or guaranteed) will go into default. (SFFAS
2, par. 24 & 39)                               
      3) Are post-1991 direct loans disbursed and                             
      outstanding recognized as assets at the                                 
      present value (discounted at a comparable                               
      Treasury rate) of their estimated net cash                              
      inflows? (SFFAS 2, par. 22 & app. B, part I                             
      A)                                                                      
      4) Is the difference between the                                        
      outstanding principal of post-1991 direct                               
      loans and the present value of their net                                
      cash inflows recognized as a subsidy cost                               
      allowance? (SFFAS 2, par. 22 & app. B, part                             
      I A)                                                                    
      5) When post-1991 direct loans are written                              
      off, is the unpaid principal removed from                               
      unpaid loans receivable and charged against                             
      the allowance for subsidy costs? (SFFAS 2,                              
      par. 61)                                                                
      6) Are losses of pre-1992 direct loans                                  
      obligated recognized (and a corresponding                               
      allowance amount set up) when it is more                                
      likely than not that the direct loans will                              
      not be totally collected? (SFFAS 2, par. 39                             
      & app. B, part II A)                                                    
      7) Are allowances for uncollectible                                     
      pre-1992 loans reestimated each year?                                   
      (SFFAS 2, par. 39)                                                      
A loan modification is a federal government action that directly or
indirectly alters the estimated subsidy cost and the present value of
outstanding direct loans or the liability of loan guarantees. A direct
modification changes the subsidy cost by altering the terms of existing
contracts or through the sale of direct loans. An indirect modification
changes the subsidy costs by altering the way loans and loan guarantees
are administered. A modification does not include subsidy cost
reestimates, routine administrative workouts of troubled loans, and other
actions permitted within existing contract terms. (SFFAS 2, par. 41-44)
      8) When post-1991 loans are modified, is                                
      the existing book amount changed to an                                  
      amount equal to the present value of the                                
      loans' net cash inflows that are projected                              
      under the modified terms from the time of                               
      the modification to the loans' maturity and                             
      discounted at the original rate? (SFFAS 2,                              
      par. 46 & app. B, part I D (4))                                         
      9) When pre-1992 loans are directly                                     
      modified, are they                                                      
                                                                              
              a) transferred from the liquidating                             
              account to a financing account, and                             
              b) recorded at their                                            
              post-modification value?                                        
                                                                              
      (SFFAS 2, par. 47 & app. B, part II B (4))                              
      10) Are subsequent (direct) modifications                               
      of pre-1992 loans treated as a modification                             
      of post-1991 loans? (SFFAS 2, par. 47)                                  
      11) When pre-1992 loans are indirectly                                  
      modified, are they                                                      
                                                                              
              a) kept in a liquidating account,                               
              and                                                             
              b) reassessed and adjusted to                                   
              reflect amounts that would not be                               
              collected due to the modification?                              
                                                                              
      (SFFAS 2, par. 47)                                                      
      12) When post-1991 and pre-1992 loans are                               
      sold, is the sale treated as a direct                                   
      modification if the agency did not assume                               
      sales proceeds in the cash flow estimates                               
      for the initial subsidy calculation? (SFFAS                             
      2, par. 53 & App. B, Part I F, footnote 23)                             
Foreclosed property is any asset, which is assumed to be held for sale,
that is either received in satisfaction of a loan receivable or as a
result of payment of a claim under a guaranteed or insured loan (excluding
commodities acquired under price support programs). Pre-1992 foreclosed
property refers to property associated with direct loans obligated or loan
guarantees committed before October 1, 1991. Post-1991 foreclosed property
refers to property associated with direct loans obligated or loan
guarantees committed after September 30, 1991. (SFFAS 3, par. 79 & 80)
      13) Is post-1991 foreclosed property valued                             
      at the net present value of the projected                               
      future cash flows associated with the                                   
      property? (SFFAS 3, par. 81)                                            
      14) Is pre-1992 foreclosed property                                     
      recorded at cost and adjusted to the lower                              
      of cost or net realizable value with any                                
      difference between cost and net realizable                              
      value carried in a valuation allowance?                                 
      (SFFAS 3, par. 81)                                                      
      15) In determining net present value, does                              
      the entity project future cash flows to                                 
      include estimates of                                                    
                                                                              
              a) sales proceeds,                                              
              b) rent, management expense, and                                
              repair costs during the holding                                 
              period, and                                                     
              c) selling expense (i.e.,                                       
              advertising and commissions)?                                   
                                                                              
      (SFFAS No. 3, par. 82)                                                  
      16) In estimating sales proceeds for                                    
      projecting the future cash flows associated                             
      with the property in determining net                                    
      present value, has the entity considered                                
      its historical experience in selling                                    
      property as well as the nature of the sale?                             
      (SFFAS 3, par. 82)                                                      
      17) Were the estimated future cash flows of                             
      post-1991 foreclosed property or acquired                               
      loans discounted at the original (or                                    
      Treasury) discount rate in effect at the                                
      time the underlying loan or guarantee was                               
      granted? (SFFAS 2, par. 57& 59; SFFAS 3,                                
      par. 83; SFFAS 19, par. 7(e))                                           
      18) Is the net present value of post-1991                               
      foreclosed property adjusted periodically                               
      to recognize both changes in the expected                               
      future cash flows and accrual of interest                               
      due to the passage of time? (SFFAS 3, par.                              
      84)                                                                     
      19) Are any adjustments in the carrying                                 
      amounts of post-1991 foreclosed property                                
      included in the presentation of "interest                               
      income" and the reestimate of "subsidy                                  
      expense?" (SFFAS 3, par. 84)                                            
      20) Is post-1991 foreclosed property                                    
      accounted for by                                                        
                                                                              
              a) recording third party claims at                              
              their net present value at the time                             
              of the foreclosure, using the same                              
              discount rate that applies to                                   
              related foreclosed property, and                                
              b) including any periodic changes                               
              in net present value of the claim                               
              in "interest income" and "subsidy                               
              expense"?                                                       
                                                                              
      (SFFAS 3, par. 87)                                                      
      21) Are receipts or disbursements                                       
      associated with acquiring and holding                                   
      post-1991 foreclosed property charged or                                
      credited to foreclosed property? (SFFAS 3,                              
      par. 88)                                                                
      22) When foreclosed assets are acquired in                              
      full or partial settlement of post-1991                                 
      direct loans or guarantees, is the present                              
      value of the government's claim against the                             
      borrowers reduced by the amount settled as                              
      a result of the foreclosure? (SFFAS 2, par.                             
      60)                                                                     
      23) If a lender, debtor, or other third                                 
      party has a legitimate claim to a post-1991                             
      foreclosed asset, is the net present value                              
      of the estimated claim recognized as a                                  
      special contra-valuation allowance? (SFFAS                              
      2, par. 58; SFFAS 3, par. 87)                                           
      24) Is pre-1992 foreclosed property                                     
      recorded at cost and adjusted, if                                       
      necessary, to the lower of cost or net                                  
      realizable value? (SFFAS 3, par. 81 & 85)                               
      25) Is the net realizable value based on an                             
      estimate of the market value of the                                     
      property adjusted for any expected losses                               
      consistent with historical experience,                                  
      abnormal market conditions, and time                                    
      limitations as well as any other costs of                               
      the sale? (SFFAS 3, par. 85 & 86)                                       
      26) Is the estimate of market value based                               
      on                                                                      
                                                                              
              a) the market value of the property                             
              if an active market exists,                                     
              b) the market value of similar                                  
              properties if no active market                                  
              exists, or                                                      
              c) a reasonable forecast of                                     
              expected cash flows adjusted for                                
              estimates of all holding costs,                                 
              including any cost of capital?                                  
                                                                              
      (SFFAS 3, par. 85)                                                      
      27) For pre-1992 foreclosed property, are                               
      third-party claims recorded at the expected                             
      amount of cash required to settle the                                   
      claims? (SFFAS 3, par. 87)                                              
      28) If foreclosed property is not sold but                              
      placed into operation, is the asset removed                             
      from foreclosed property? (SFFAS 3, par.                                
      90)                                                                     
      29) If reimbursement for the transfer of                                
      assets from one program to another is made,                             
      are the proceeds from the transfer treated                              
      in the same manner as a sale to a third                                 
      party? (SFFAS 3, par. 90)                                               

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

66 Undelivered orders  are the  value of  goods and  services ordered  and
obligated but not yet received.

       Liabilities for Loan Guarantees (30 - 37)      Yes, No, or Explanation 
                                                          N/A                 
A loan guarantee is any guarantee, insurance (but not deposit insurance),
or other pledge with respect to the payment of all or part of the
principal or interest on any debt obligation of a nonfederal borrower to a
nonfederal lender. (SFFAS 2, app. C)               
                                                      
The Federal Credit Reform Act of 1990 requires federal entities to
estimate and budget for the costs arising from default of guaranteed loans
made after fiscal year (FY) 1991 (i.e., post 1991). (SFFAS 2, par. 7)
      30) Is the present value of estimated net cash                          
      outflows from post-1991 (i.e., committed after                          
      September 30, 1991) loan guarantees recognized                          
      as a liability? (SFFAS 2, par. 23)                                      
      31) Is a liability for a pre-1992 (i.e.,                                
      committed before October 1, 1991) loan                                  
      guarantee recognized when it is more likely                             
      than not that the loan guarantee will require a                         
      future cash outflow to pay a default claim?                             
      (SFFAS 2, par. 39 & app. B, part IV A)                                  
      32) Are the liabilities for the pre-1992 loan                           
      guarantees reestimated each year as of the date                         
      of the financial statements? (SFFAS 2, par. 39)                         
      33) When post-1991 loan guarantees are                                  
      modified, is the existing book amount of the                            
      related liability changed to an amount equal to                         
      the present value of net cash outflows that are                         
      projected under the modified terms from the                             
      time of the modification to the loan's                                  
      maturity, and discounted at the original                                
      discount rate?^67 (SFFAS 2, par. 50 & app. B,                           
      part III D(4); SFFAS 19, par. 7(d))                                     
      34) When pre-1992 loan guarantees are directly                          
      modified, are                                                           
                                                                              
              a) the loan guarantees transferred from                         
              the liquidating account to a financing                          
              account, and                                                    
              b) the existing book value of the                               
              liability of the modified loan                                  
              guarantees changed to an amount equal                           
              to its postmodification liability                               
              (i.e., the present value of the net                             
              cash outflows under postmodification                            
              terms discounted at the current                                 
              Treasury rate)?                                                 
                                                                              
      (SFFAS 2, par. 51 & app. B, part IV B (2) &                             
      (4))                                                                    
      35) When pre-1992 loan guarantees are                                   
      indirectly modified, are                                                
                                                                              
              a) the loan guarantees kept in a                                
              liquidating account, and                                        
              b) the related liability reassessed and                         
              adjusted to reflect any change in the                           
              liability resulting from the                                    
              modification?                                                   
                                                                              
      (SFFAS 2, par. 51)                                                      
      36) Are subsequent modifications of pre-1992                            
      loan guarantees treated as modifications of                             
      post-1991 loan guarantees? (SFFAS 2, par. 51)                           
      37) If a post-1991 or pre-1992 loan is sold                             
      with a recourse provision, is the present value                         
      (discounted at the Treasury rate in effect at                           
      the time of the sale) of the estimated losses                           
      recognized as a subsidy expense and a loan                              
      guarantee liability? (SFFAS 2, par. 54 & app.                           
      B, part I F(3))                                                         

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

          Credit Programs Costs (38 - 75)         Yes, No, or    Explanation  
                                                      N/A                     
In accordance with the Federal Credit Reform Act of 1990, as amended, a
subsidy expense is recognized for direct or guaranteed loans disbursed
during the fiscal year. The amount of the subsidy expense equals the
present value of estimated cash outflows over the life of the loans minus
the present value of the estimated cash inflows. The discount rate used to
calculate the present value is the average interest rate on marketable
Treasury securities of similar maturity to the cash flows of the direct
loan or loan guarantee for which the estimate is being made. (SFFAS 2,
par. 6, 7, 24, 30, & 31; SFFAS 19, par. 6 & 7)
      38) For post-1991 direct or loan guarantee                              
      programs, is the present value of                                       
      estimated cash outflows over the life of                                
      the loans minus the present value of                                    
      estimated cash inflows discounted at the                                
      interest rate of marketable Treasury                                    
      securities with similar maturity to the                                 
      cash flows? (SFFAS 2, par. 24; SFFAS 19,                                
      par. 6)                                                                 
      39) For post-1991 direct or loan guarantee                              
      programs, are the net present values                                    
      recognized as subsidy expense in the year                               
      the loan is disbursed? (SFFAS 2, par. 24;                               
      SFFAS 19, par. 6)                                                       
      40) Are the components of estimated                                     
      subsidy costs (and offsetting receipts) of                              
      post-1991 loans and guarantees separately                               
      recognized for                                                          
                                                                              
              a) interest subsidy costs,^68                                   
              b) default costs,^69                                            
              c) present value of fees and other                              
              collections, and                                                
              d) other subsidy costs?                                         
                                                                              
      (SFFAS 2, par. 25-29)                                                   
      41) Is the subsidy cost allowance for                                   
      post-1991 direct loans amortized using the                              
      interest method? ^70 (SFFAS 2, par. 30,                                 
      31, and app. B, part I B (2); SFFAS 19,                                 
      par. 7(a))                                                              
      42) If the effective interest for                                       
      post-1991 direct loans is less than the                                 
      nominal interest, is the subsidy cost                                   
      allowance increased by the difference and                               
      recognized as a reduction in interest                                   
      income? (SFFAS 2, par. 30 & app. B, part I                              
      B (2); SFFAS 19, par. 7(a))                                             
      43) If the effective interest for                                       
      post-1991 direct loans is greater than the                              
      nominal interest, is the subsidy cost                                   
      allowance decreased by the difference and                               
      recognized as an increase in interest                                   
      income? (SFFAS 2, par. 30 & app. B, part I                              
      B (2); SFFAS 19, par. 7(a))                                             
      44) Is interest accrued and compounded on                               
      the liabilities of post-1991 loan                                       
      guarantees at the interest rate that was                                
      originally used to calculate the present                                
      value of the loan guarantee liabilities                                 
      when the guaranteed loans were disbursed,                               
      after adjusting for the interest                                        
      reestimate? (SFFAS 2, par. 31 & app. B,                                 
      part III B (2); SFFAS 19, par. 7(b))                                    
      45) Is the interest accrued and compounded                              
      on the liabilities of post-1991 loan                                    
      guarantees recognized as an interest                                    
      expense? (SFFAS 2, par. 31 & app. B, part                               
      III B (2))                                                              
Two kinds of reestimates for the subsidy cost allowance for outstanding
direct loans and the liability for outstanding loan guarantees are (1)
interest rate reestimates and (2) technical/default reestimates. An
interest rate reestimate is due to a change in the interest rates from
those that were assumed in budget preparation and used in calculating the
subsidy expense to the interest rates that are prevailing during the
periods in which the direct or guaranteed loans are disbursed. A
technical/default reestimate is due to changes in projected cash flows of
outstanding direct loans and loan guarantees after reevaluating the
underlying assumptions and other factors (except for interest rate
reestimates) that affect cash flow projections as of the financial
statement date. (SFFAS 18, par. 9)            
      46) Does the entity measure reestimates of                              
      allowances for subsidy costs of post-1991                               
      loans and liabilities for guarantees in                                 
      two components separately, specifically:                                
      the interest rate reestimate and the                                    
      technical/default reestimate? (SFFAS 18,                                
      par. 9)                                                                 
      47) Is any increase (or decrease) in the                                
      subsidy cost allowance of post-1991 direct                              
      loans or loan guarantee liabilities                                     
      resulting from the interest rate and                                    
      technical /default reestimates recognized                               
      as a subsidy expense (or a reduction in                                 
      subsidy expense)? (SFFAS 2, par. 32; SFFAS                              
      18, par. 9)                                                             
      48) If the assumed interest rates used in                               
      calculating the subsidy expenses for                                    
      cohorts^71 from which direct or guaranteed                              
      loans are disbursed differ from the rates                               
      prevailing at the time of the loan                                      
      disbursement, is an interest rate                                       
      reestimate for those cohorts made as of                                 
      the date of the financial statements?                                   
      (SFFAS 2, par. 32 (A); (A)SFFAS 18, par. 9                              
      (A))                                                                    
      49) Do technical/default reestimates take                               
      into consideration all factors that may                                 
      have affected various components of                                     
      projected cash flows, including defaults,                               
      delinquencies, recoveries, and                                          
      prepayments? (SFFAS 2, par. 32 (B); SFFAS                               
      18, par. 9 (B))                                                         
      50) Are technical/default reestimates made                              
      each year as of the date of the financial                               
      statements? (SFFAS 18, par. 9 (B))                                      
      51) For direct loans, do other adjustments                              
      include loan modifications, fees received,                              
      loans written off, foreclosed property or                               
      other recoveries acquired, and subsidy                                  
      allowance amortization? (SFFAS 18, par.                                 
      10)                                                                     
      52) For loan guarantees, do other                                       
      adjustments include loan guarantee                                      
      modifications, fees received, interest                                  
      supplements paid, claim payments made to                                
      lenders, foreclosed property or other                                   
      recoveries acquired, and interest                                       
      accumulated on the loan guarantee                                       
      liability? (SFFAS 18, par. 10)                                          
      53) Are default costs estimated and                                     
      periodically reestimated for each                                       
      post-1991 loan and loan guarantee program                               
      on the basis of separate cohorts and risk                               
      categories? (SFFAS 2, par. 33)                                          
      54) In estimating default costs, did the                                
      entity evaluate                                                         
                                                                              
              a) loan performance experience,                                 
              b) the current and forecasted                                   
              international, national, or                                     
              regional economic conditions that                               
              may affect the performance of the                               
              loans,                                                          
              c) financial and other relevant                                 
              characteristics of borrowers,                                   
              d) the value of collateral to loan                              
              balance,                                                        
              e) changes in recoverable value of                              
              collateral,                                                     
              f) newly developed events that                                  
              could affect the loans'                                         
              performance, and                                                
              g) improvements in methods to                                   
              reestimate defaults?                                            
                                                                              
      (SFFAS 2, par. 34)                                                      
      55) In estimating and reestimating future                               
      default costs for each group, cohort, and                               
      risk category of loan and guarantee, has                                
      the agency used a systematic methodology                                
      based on experience? (SFFAS 2, par. 35 &                                
      36)                                                                     
      56) Is interest (at the discount rate in                                
      effect when the loans were first                                        
      disbursed) accrued on post-1991 direct                                  
      loans, including amortized interest,                                    
      recognized as interest income? (SFFAS 2,                                
      par. 37 & app. B, part I B (2) & C)                                     
      57) Is interest (at the original discount                               
      rate) accrued on debt to the Treasury                                   
      arising from post-1991 direct loans                                     
      recognized as interest expense? (SFFAS 2,                               
      par. 37 & app. B, part I B (2) & C)                                     
      58) Is interest (at the discount rate in                                
      effect when the loans were first                                        
      disbursed) accrued on liability of                                      
      post-1991 loan guarantees recognized as                                 
      interest expense? (SFFAS 2, par. 37 & app.                              
      B, part III B (2) & C)                                                  
      59) Is interest (at the original discount                               
      rate) due from the Treasury on uninvested                               
      funds associated with post-1991 loan                                    
      guarantee liabilities recognized as                                     
      interest income? (SFFAS 2, par. 37 & app.                               
      B, part III B (2) & C)                                                  
      60) Are costs for administering credit                                  
      activities (such as salaries, legal fees,                               
      and servicing) that are incurred in                                     
      support of direct loan and guaranteed loan                              
      programs recognized as administrative                                   
      expenses and not included in direct loan                                
      and loan guarantee subsidy costs? (SFFAS                                
      2, par. 38)                                                             
      61) Are losses (as well as valuation                                    
      allowances and corresponding liabilities)                               
      of direct loans obligated and loan                                      
      guarantees committed before October 1,                                  
      1991, recognized when it is more likely                                 
      than not that the direct loans will not be                              
      totally collected or that the loan                                      
      guarantees will require a future cash                                   
      outflow to pay default claims? (SFFAS 2,                                
      par. 39)                                                                
Foreclosed properties are assets received in satisfaction of a loan
receivable or as a result of payment of a claim under a guaranteed or
insured loan (excluding commodities acquired under price support
programs.) All properties included in foreclosed property are assumed to
be held for sale. Pre-1992 foreclosed property refers to property
associated with direct loans obligated or loan guarantees committed before
October 1, 1991. Post-1991 foreclosed property refers to property
associated with direct loans obligated or loan guarantees committed after
September 30, 1991. (SFFAS 3, par. 79 & 80)   
      62) If, at the time of the foreclosure,                                 
      the expected net realizable value of                                    
      pre-1992 foreclosed property is less than                               
      the cost (i.e., the carrying amount of the                              
      loan, or for a loan guarantee, the amount                               
      of the claim paid), is the loss charged to                              
      operations and tracked in a valuation                                   
      allowance account? (SFFAS 3, par. 86)                                   
      63) If the pre-1992 foreclosed asset's net                              
      realizable value subsequently increases or                              
      decreases, does the entity credit or                                    
      charge this amount to results of                                        
      operations and adjust the valuation                                     
      allowance? (SFFAS 3, par. 86)                                           
      64) Upon sale of foreclosed property, is                                
      any difference between the net carrying                                 
      amount of foreclosed property and the net                               
      proceeds of the sale recognized as a                                    
      component of operating results? (SFFAS 3,                               
      par. 89)                                                                
      65) For post-1991 foreclosed property, is                               
      interest income accrued from the previous                               
      periodic adjustment in the carrying amount                              
      up to the sale date? (SFFAS 3, par. 89)                                 
      66) For post-1991 foreclosed property, is                               
      the resulting difference between the                                    
      adjusted carrying amount and the net sales                              
      proceeds recognized as a reestimate of                                  
      "subsidy expense"? (SFFAS 3, par. 89)                                   
      67) For pre-1992 foreclosed property, is                                
      the difference between the adjusted                                     
      carrying amount and net sales proceeds                                  
      recognized as a gain or a loss on the sale                              
      of foreclosed property? (SFFAS 3, par. 89)                              
The term modification, as it applies to direct loans and loan guarantees,
means a federal government action, including new legislation or
administrative action that directly or indirectly alters the estimated
subsidy cost and the present value of outstanding direct loans, or the
liability of loan guarantees. The cost of the modification is the excess
of the premodification value of a direct loan (or postmodification
liability of loan guarantees) over the postmodification value of a direct
loan (or premodification liability of loan guarantees), both of which have
been discounted at the Treasury rate in effect when the modification
occurred. (SFFAS 2, par. 41; SFFAS 2, par. 45, notes 3 & 4 & par. 49,
notes 6 & 7; SFFAS 19, par. 6)                
                                                 
The book value of the loan or guarantee is discounted at the Treasury rate
originally used to calculate the present value of the direct loan or loan
guarantee liability when the loan was originally disbursed. (SFFAS 2, par.
48 & 50, app. B parts I D (4 & 5), II B (4), III B (4), & IV B (4))
                                                 
The sale of post-1991 and pre-1992 direct loans is treated as a direct
modification of the loans sold if the sale proceeds were not included in
the cash flows estimates for the initial subsidy calculation. The cost of
modification is determined on the basis of the premodification value of
the loans sold. However, if sale proceeds were included in the cash flow
estimates for the initial subsidy calculation, the effect of the loan sale
on the cost of the program is recognized in the reestimates. (SFFAS 2,
par. 53, Appendix B. par 1F)                  
      68) If pre-1992 or post-1991 direct loans                               
      are modified, is the excess of the                                      
      premodification value^72 over the                                       
      postmodification value^73 recognized as a                               
      modification expense? (SFFAS 2, par. 45 &                               
      app. B, parts I D (1-3) & II B (1-3))                                   
      69) If the cost of modifying pre-1992 or                                
      post-1991 loans is either greater or less                               
      than the decrease in the loans' book                                    
      value, is the difference recognized as                                  
      either a gain or loss? (SFFAS 2, par. 48 &                              
      app. B, parts I D (4 & 5) & II B (4 & 5))                               
      70) If pre-1992 or post-1991 loan                                       
      guarantees are modified, is the excess of                               
      the postmodification liability^74 over the                              
      premodification liability^75 recognized as                              
      a modification expense? (SFFAS 2, par. 49                               
      & app. B, parts III D (1-3), & IV B (1-3))                              
      71) If the cost of modifying pre-1992 or                                
      post-1991 loan guarantees is either                                     
      greater or less than the increase in the                                
      book value of the related loan guarantee                                
      liabilities, is the difference recognized                               
      as a either a gain or loss? (SFFAS 2, par.                              
      52 & app. B, parts III D (4 & 5), & IV B                                
      (5))                                                                    
      72) If the premodification value of                                     
      post-1991 and pre-1992 loans sold^76                                    
      exceeds the net proceeds from the sale, is                              
      the excess treated as the cost of                                       
      modification and recognized as a                                        
      modification expense? (SFFAS 2, par. 45 &                               
      53 & app. B, part I F (1))                                              
      73) If a loan is sold with recourse, is                                 
      the present value of estimated losses                                   
      under the recourse or guarantee                                         
      obligations recognized as a subsidy                                     
      expense and as a loan guarantee liability?                              
      (SFFAS 2, par. 54)                                                      
      74) If the modification expense arising                                 
      from a loan sale is greater than the book                               
      value loss, is the difference recognized                                
      as a gain? (SFFAS 2, par. 55 & app. B,                                  
      part I F (2))                                                           
      75) If the modification expense arising                                 
      from a loan sale is less than the book                                  
      value loss, is the difference recognized                                
      as a loss? (SFFAS 2, par. 55 & app. B,                                  
      part I F (2))                                                           

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

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

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

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

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

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

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

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

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

           Other Financing Sources (76 - 81)          Yes, No, or Explanation 
                                                          N/A                 
      76) Is a gain^77 from the modification^78 of                            
      post-1991 loans reported as a reduction in                              
      financing source and paid to the Treasury as a                          
      "modification adjustment transfer?" (SFFAS 2,                           
      par. 48, & app. B, part I D (5))                                        
      77) Is a loss^79 from the modification of                               
      post-1991 loans reported as a financing source                          
      when the reporting entity receives from the                             
      Treasury a "modification adjustment transfer?"                          
      (SFFAS 2, par. 48 & app. B, part I D (5))                               
      78) Is a gain^80 resulting from a modification                          
      of post-1991 loan guarantees reported as a                              
      reduction in financing source and paid to the                           
      Treasury as a "modification adjustment                                  
      transfer?" (SFFAS 2, par. 52 & app. B, part III                         
      D (5))                                                                  
      79) Is a loss^81 resulting from a modification                          
      of post-1991 loan guarantees reported as a                              
      financing source when the reporting entity                              
      receives from the Treasury a "modification                              
      adjustment transfer" to offset the difference?                          
      (SFFAS 2, par. 52 & app. B, part III D (5))                             
      80) Is a gain on the sale of a post-1991 loan                           
      reported as a reduction in financing source and                         
      paid to the Treasury as a "modification                                 
      adjustment transfer?" (SFFAS 2, par. 55 & app.                          
      B, part I F (2))                                                        
      81) Is a loss on the sale of a post-1991 loan                           
      reported as a financing source when the                                 
      reporting entity receives from the Treasury a                           
      "modification adjustment transfer?" (SFFAS 2,                           
      par. 55 & app. B, part I F (2))                                         

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

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

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

80 The  excess  of the  cost  of the  modification  over the  increase  in
liability discounted at the Treasury rate.

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

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References

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