EXPLANATION OF ESTIMATES FOR TRUST FUNDS Part II contains detailed schedules and explanatory statements on the various trust funds. It excludes the detail on trust fund programs which require annual action by Congress (shown in part I) and the detail on the District of Columbia municipal government funds (contained in a separate budget volume). TRUST AND DEPOSIT FUNDS DISTINGUISHED The funds which are covered in this part of the budget are of two types as follows: Trust funds are those funds established to account for receipts which are held in a fiduciary capacity by the Government for use in carrying out specific purposes and programs in accordance with a trust agreement or a statute. Within the category of trust funds, there is a subcategory of trust revolving funds, which are trust funds used to carry on a cycle of business-type operations, including certain corporations which are partly owned by the Government and partly by private interests. Deposit funds are those funds established to account for collections that are either (a) held in suspense temporarily and later refunded or paid into some other fund of the Government, or (b) held by the Government as banker or agent for others, being paid out in lump sums at the direction of the owner. Such funds are not available for paying salaries, expenses, grants, or other expenditures of the Government. While the transactions in these groups of funds are a part of the financial program of the Government, trust and deposit funds are reserved for the purposes of the trust or the terms of the deposit; hence these transactions are excluded from the administrative budget totals. OBLIGATIONAL AUTHORITY FOR TRUST FUNDS Most trust fund receipts are made available for use by permanent law, without requiring further action by Congress. In a few cases receipts of trust funds can be obligated and expended only in accordance with appropriations enacted by Congress from year to year. Examples are the funds of the United States Soldiers' Home and the general municipal revenues of the District of Columbia. In the case of the Highway trust fund, Congress controls expenditures by appropriations annually, but it grants contract authorizations in advance thereof. In a few other cases, the trust receipts are permanently available for program purposes, but Congress imposes annual limitations on administrative expenses. 1024 FORM OF TRUST FUND PRESENTATIONS The detailed material in part II covers the trust funds which do not require annual action by Congress. Consolidated schedules are used for the smaller trust funds of each bureau or independent agency. The material here follows the general format of the similar material in part I. In most cases, all receipts of a trust fund are permanently appropriated as the receipts are collected. În cases where the receipts are not appropriated as the money is collected, an additional schedule identifies the amounts available for appropriation. No appropriation language appears here, and the narrative statement of program and performance usually consists only of an explanation of the sources of money for the fund, the purposes for which it is authorized to be spent, and the legal citations. TRUST FUND RECEIPTS AND EXPENDITURES Receipts. Like budget receipts, trust fund receipts are based upon collections received and deposited, including U.S. Government securities received in lieu of cash and contributions to the trust funds from the general fund. Reported receipts exclude borrowing and the sale or redemptions of U.S. Government securities. Expenditures. Like budget expenditures, trust fund expenditures are stated on a checks-issued basis, less refunds collected. The repayment of borrowing and the purchase of U.S. Government securities are excluded from the expenditure figures. Trust revolving funds.-The small group of funds which constitute trust revolving funds are reported on a net expenditure basis. The collections of trust revolving funds, instead of being reported as receipts, are deducted from expenditures. DEPOSIT FUND EXPENDITURES Deposit fund expenditures are shown only in total for each agency as a whole. These expenditures are on a net basis; that is, the collections are deducted from checks issued, and the resulting figure is shown as an expenditure. Checks issued include transactions to move money into other funds, as well as refunds and the return of money to depositors. When the collections are larger than the gross expenditures, the amount shown as an expenditure is a negative item. TRUST FUNDS GIFT AND TRUST FUND ACCOUNTS, NON-REVOLVING Program and Financing (in thousands of dollars) 1965 actual 1966 1967 estimate estimate Identification code 01-25-9998-0-7-704 Program by activities: 1. Acquisition of library materials.. 64 2. Reader and reference services.. 1,436 1,479 3. Organization of the collections 360 10 Total obligations. 1,860 1,829 Financing: 13 Receipts and reimbursements from: Trust fund accounts.. 50 300 50 1,475 300 1,825 -1,200 1,825 1. Acquisition of Library materials.-During 1965, this included the procurement of manuscripts, Hispanic materials, fine prints, books and other library materials from certain foreign areas for the Library of Congress, and the acquisition and distribution of Government documents for the Library of Congress and cooperating libraries. 2. Reader and reference services. These services during 1965 included the preparation of bibliographies, indexes, digests, and checklists; lectures; surveys of bibliographic services; poetry readings; musical concerts; furtherance of musical research, composition, performance, and appreciation; and providing photostats, photographs, microfilm, and other forms of photoduplication, and sound recordings of folksongs and poetry to other Government agencies, libraries, and other institutions, and to the general public. 3. Organization of the collections.-During 1965, work was continued on the LC Catalog, Books: Subjects, 1960-64. This 5-year cumulation will total approximately 26 volumes. Work was completed on Dewey Decimal Classification, 17th edition; Dewey Decimal Classification, 9th abridged edition; and the Union List of Serials, 3d edition. The first was published in July 1965, the second in September 1965, and the third is scheduled for publication in early calendar year 1966. The preparation of the index and subject headings for Dissertation Abstracts was continued as well as the preparation of printed catalog cards for additional manuscript collections located in the Library of Congress and other institutions. Work was completed on the National Union Catalog of 1,150 Manuscript Collections, 1963-64, which was published during September 1965. Work was begun on the National Register of Microform Masters with a view toward publication of its first issue during October 1965. 90 Expenditures.. 1,897 Expenditures are distributed as follows: Payment of interest on bequest of Gertrude Payment of interest on bequest of Gertrude Library of Congress trust fund, income M. Hubbard. Payment of interest on permanent loan Library of Congress gift fund.. 551 460 460 account.... Service fees, Library of Congress. Library of Congress trust fund, income from investment account. Object Classification (in thousands of dollars) Identification code This schedule covers (1) funds received as gifts for immediate expenditure and receipts from the sale of recordings and photoduplication materials financed from capital originally received as gifts, (2) income from investments held by the Library of Congress Trust Fund Board, and (3) interest at the rate of 4% per annum paid by the Treasury on the principal funds deposited therewith as described under "Library of Congress trust fund, principal accounts." (2 U.S.C. 156-160; 31 U.S.C. 725s; 37 Stat. 319.) 200-100-66-65 Total personnel compensation... 01-25-9998-0-7-704 This schedule covers two principal accounts-permanent loan and bequest of Gertrude M. Hubbard. Both funds represent gifts or bequests in cash, which have been deposited with the Treasurer of the United States as permanent loans to the United States, the interest upon which, at 4% per annum, payable semiannually, is available to the Librarian for the purposes specified in each case. As of June 30, 1965, the principal in the permanent loan account, which shall not exceed the sum of $10 million (2 U.S.C. 158; 31 U.S.C. 725s, Public Law 87-522), was distributed as follows (in thousands of dollars): 74.98 Receivables in excess of obligations, end of year.. 1 Change in selected resources as of June 30 are as follows: Advances, 1964. $0: 1965 adjustments, $62 thousand; 1965, $0; 1966, $0; 1967. $0. The number of judges participating in the system established by 28 U.S.C. 376 increased in 1965 from 414 to 423. There were 465 judges on the roll at the end of the year as compared with 459 at the beginning of the year. As of June 30, 1965, there were 42 nonparticipants as compared with 45 a year ago. The number of survivor annuitants on the roll increased in 1965 from 150 at the beginning of the year to 152 at the end of the year. The average annuity increased $172, from $3,124 to $3,296. Current awards to annuitants are substantially higher than the annuities granted to widows in previous years because of statutory increases in the salaries of judges. Receivables in excess of obligations, start of year.. Status of Unfunded Contract Authorization (in thousands of dollars) Unfunded balance, start of year. Contract authorization (new). Unfunded balance, end of year..... Appropriation to liquidate contract authorization.... 1,302,705 1,578,567 1,356,449 770,687 1,135,850 1,143,600 -1,302,705 -1,578,567 -1,718,225 824,431 859,988 1.003,942 This trust fund is used for military assistance sales of defense articles and services. Defense articles sold consist largely of aircraft, ships, combat and other vehicles, missiles, electronic equipment, spare parts, and related supporting equipment. In dollar volume, the major portion of this program consists of sales to European and other developed countries of the free world. Defense articles from Department of Defense stocks and defense services are sold to eligible countries and international organizations if they agree to pay in dollars not less than the value thereof in advance or, as authorized by the President, within 3 years after delivery. Payment within 120 days of delivery is normally required and the 3-year credit provision is rarely used. Defense articles and defense services are also procured for sale if the purchasers provide the U.S. Government with a dependable undertaking to: (1) pay the full amount of the procurement contract, which assures the U.S. Government against any loss on the contract, and (2) to make funds available in such amounts and at such times as may be required to meet the payments or other costs under the contract. Where it is found to be in the national interest, the Department of Defense may accept a dependable undertaking under which the eligible purchaser agrees to pay 120 days after delivery. In such cases, Department of Defense appropriations are used to meet payments required by such contracts, and these appropriations are reimbursed by amounts subsequently received from the purchasers. Object Classification (in thousands of dollars) Identification code 04-09-8242-0-7-057 21.40 21.49 24.40 Cash (appropriation). 24.49 Contract authorization.. 675,289 665,055 725,540 1,175,172 1,419,553 1,529,190 69 New obligational authority (contract authorization).. 25.1 Other services.. 13 61,616 15 68,191 15 77,464 Relation of obligations to expendi 44.0 Refunds... 13,573 11,697 11,921 |