Public enterprise funds-Continued CANTEEN SERVICE REVOLVING FUND-Continued primarily as a result of the Government Employees Sales program: Unpaid undelivered orders 1 Total Government equity. Financing. No appropriation by the Congress will be Operating results and financial condition.-Operating Revenue, Expense, and Retained Earnings (in thousands of dollars) 1964 actual 1965 1966 estimate estimate 49,797 52,055 53,941 668 395 390 -66 1963 actual -25 -31 135 99 110 767 505 11,011 10,278 -1,500 -1,119 9,664 10,278 5,417 بیاتی 3,407 364 4,124 30 -55 366 3,175 30 -55 -25 141 116 506 9,664 1965 1966 estimate estimate 5,230 5,310 5,519 5,519 2,850 2,983 3,079 366 3,223 366 Analysis of Government Equity (in thousands of dollars) 366 366 11,011❘ 10,278 366 366 9,664 10,000 11,377 10,644 10,030 10,366 Total number of permanent positions.... 10,000 Average salary of ungraded positions. 23.0 Rent, communications, and utilities. 25.1 Other services.. 26.0 Supplies and materials. Total costs, funded.... 94.0 Change in selected resources. 99.0 Total obligations.......... Identification code 1963 actual Program by activities: 972 1.178 1,178 1.178 1. Direct loans to veterans.. 1964 1965 1966 actual estimate estimate Personnel Summary 1964 2. Cash advances-vendee loans.. 3. Property improvements...... 10,462 111 49 11,354 851 105 741 51 230 35,289 504 49,125 281 49,406 2,603 280 2,873 6.9 $7,115 $3,770 1964 actual Total capital outlay, funded.... 197,007 -11.151 Operating costs, funded: 4. Interest on borrowings.. 5. Operating expenses, general.. 11,060 11,524 887 52 38,503 746 551 472 12,129 105 51 249 36,904 814 51,972 52,181 2,578 317 2,884 6.9 $7,547 $4,017 1965 estimate 15 120 DIRECT LOAN REVOLVING Fund The amount authorized by section 1823(a) of title 38, United States Code, to be advanced after June 30, 1965, by the Secretary of the Treas ury to the Administrator, for the purposes of the "Direct loan revolving fund" is hereby reduced by the amount of $100,000,000. Program and Financing (in thousands of dollars) 41,000 800 790 510 12,634 834 51 275 38.216 938 53,990 53,990 2,609 322 2,920 6.9 196,869 154,000 112,000 17 $7,624 1966 estimate 120 112.137 154,135 -2,000 151,608 110,137 25,000 850 790 510 1965 1966 estimate estimate 279 Such loans are made only in rural areas, small cities, and towns where private credit for the making of GI loans is and has been generally unavailable. The maximum loan amount is $15 thousand and the maximum term is 30 years. The interest rate is the same as the rate allowable for GI loans (38 U.S. Code, section 1811 as amended). Budget program-1. Direct loans to veterans.-Under 1,800 existing legislation, authority to make or to enter into commitments to make loans expires July 25, 1967, for World War II veterans, and January 31, 1975, for Korean conflict veterans. The following table summarizes the new loan activity: 181,140 -83,753-74,974 -45,012 -793 -970 -1,300 -133,523-187,000-177,500 -134 -93,000 -216 -808 -61,378 -926 600,000 -200 --900 -950 -53,407 -33,375 -5,665 -5,268 27,000 200,000 150,000 -280,512 -249,372-265,848 -314,983-343,386-364,496 28,950 139,087 249,372 265,848 78,848 180,000 133,523 187,000 150,000 100,000 -100,000 Total obligations. 226, 128 194,987 139,087 Receipts and other offsets (items 11-17)--281,531-416,096 -863,605 Obligations affecting expenditures. -55,403 -221,109-724,518 Obligated balance, end of year... Expenditures. -32,303-226,169 -685,947 249,979 183,401 151,196 -282,282-409,570-837,143 6. Property management expense.-Includes all the cost of ownership of acquired properties except those which increase the value of the property and are included under capital improvements. Included in management expense is grass cutting, repair of broken windows, winterizing, etc., also payments for services performed by management brokers and real estate taxes. 7. Sales expense.-Includes broker's fees and advertising costs incident to the sale of properties owned by Veterans Administration and averages approximately 5% of the selling price. Financing.-Public Law 87-84, approved July 6, 1961, authorizes the Veterans Administration to draw $1.1 billion from the U.S. Treasury at stated intervals through 1966 with the provision that after the first year (1962) the amount so authorized was to be reduced by the amount of loans sold in the preceding fiscal year. Through Public enterprise funds-Continued DIRECT LOAN REVOLVING FUND-Continued 1964, $400 million was borrowed from the Treasury and $200.6 million lapsed due to loan sales in prior years. No borrowings are contemplated in 1965 or 1966. Funds provided by the repayment of principal on loans outstanding, the sale of loans, the sale of mortgage pool participation certificates, and other revenue will provide sufficient funds for the requirements of the Direct loan program; and also make available $200 million for transfer to the Loan guaranty fund in 1965 and $180 million in 1966. Therefore, appropriation language is proposed to rescind the new 1966 authorization. 1964 actual 62,305 21,800 -27,000 Financial Condition (in thousands of dollars) 1964 actual 808 8,776 -9,957 900 9,185 -9,885 -373 21,427 200 15,633 16,444 10,871 1965 1966 estimate estimate 61,050 59,268 -1,978 978-20,625 59,072 38,643 15,433 9,433 10,871 26,504 408,181 413,484 1965 estimate 439,654 7,026 1,261,041 1,230,673 1,112,602 950 9,185 -9,935 200 9,633 26,504 1,261,041 1,230,673 1,019,602 36,137 1966 estimate 945,601 33,788 992, 153 -93.000-693,000 299,153 LOAN GUARANTY REVOLVING FUND [During the current fiscal year, the] The Loan guaranty revolving fund shall hereafter be available for expenses [, but not to exceed $380,000,000,] for property acquisitions and other loan guaranty and insurance operations under Chapter 37, title 38, United States Code, except administrative expenses, as authorized by section 1824 of such title: Provided, That the [retained earnings of the Direct loans to veterans and reserves revolving fund shall be available, during the current fiscal year, for transfer to said Loan guaranty revolving fund in such amounts as may be necessary to provide for the foregoing expenses: Provided further, That, in addition, not to exceed $200,000,000 of] unobligated balances including retained earnings of [said] the Direct loans revolving fund shall hereafter be available, during the current fiscal year,] for transfer to the Loan guaranty revolving fund in such [amount] amounts as may be necessary to provide for the foregoing expenses and the Administrator of Veterans' Affairs shall not be required to pay interest on amounts so transferred after the time of such transfer. (Independent Offices Appropriation Act, 1965.) Program and Financing (in thousands of dollars) 1964 actual Program by activities: Capital outlay, funded: 1. Real property acquired.. 2. Capital improvements to acquired 3. Claims paid. 4. Repurchase of loans sold, net.... 5. Cash advances-vendee loans.. 6. Loans acquired.......... 264,661 5,419 24,502 13,496 4,786 Total capital outlay, funded.... 313,376 Operating costs, funded: 7. Commission on sale of participa- 8. Property management expense. year.. 22.98 Unobligated balance transferred from year... New obligational authority... Total operating costs, funded... Financing: Receipts and reimbursements from: Loans repaid: Sale of participation certificates.. erans indebtedness) Other repayments... Rental and other revenue. 21.98 Unobligated balance available, start of (a) Vendee loans.. (b) Acquired loans. Cash proceeds from sale of mortgages: Premium on sale of loans.. Cash transactions: Gross expenditures.. 1965 1966 estimate estimate 273,000 5,900 24,500 16,500 7,600 328,100 24,410 21 41,937 40,700 355,313 368,800 265,000 5,000 24,000 17,000 317,000 600 24,400 18,000 43,000 71 Obligations affecting expenditures... | 90,462 49,829-140,680 72.98 Obligated balance, start of year. 5,321 19,285 20,914 74.98 Obligated balance, end of -19,285 -20,914 -14,117 year.. 90 Expenditures___ 76,498 339,199 360,000 Relationship of obligations to expendi tures: Total obligations... -27,000-200,000 180,000 48,200-133,883 Note. The above statement excludes the following exchanges of nonworking capital assets: The settlement of VA-guaranteed or insured loans by the acquisition of real property (1964, $255,791 thousand; 1965, $288,000 thousand; 1966, $302,000 thousand): The settlement of defaulted VA-owned loans by acquisition of real Property (1964, $32,693 thousand; 1965, $38,200 thousand; 1966, $44,300 thousand): The acquisition of vendee loans in exchange for real property (1964, $321,697 thousand; 1965, $309,000 thousand; 1966, $322,000 thousand). revenues obtained from principal repayments and proceeds of sales of vendee accounts, principal payments on acquired loans, income from interest payments on such assets, and miscellaneous income such as rental of properties, could be used to defray part of the expenses for paying claims, acquiring properties, managing and selling properties. The Loan guaranty revolving fund was established at the beginning of 1962 by 74 Stat. 533, in order that the Budget program.-The activities indicated in tables 1 and 2 below represent the numbers of each asset acquired on a check-issued basis. 1. Real property acquired.-Private lenders who have acquired property as a result of foreclosure on defaulted guaranteed or insured loans may elect to convey that property to the Veterans Administration. The table below reflects this activity and excludes the amount of indebtedness established against the veteran: Number of properties acquired. 3. Claims paid.-These payments are made to lenders in accordance with the Veterans Administration guaranty contract and represents the difference between the amount owed by the veteran on a defaulted loan and the value of the foreclosed property (as established by Veterans Administration). These payments are in addition to property -17,489-167,660 acquisition cost shown in 1, acquisition cost shown in 1, above. The table below reflects this activity. Number of property improvements. 2. Capital improvements to acquired properties.-After conveyance of the property to the Veterans Administration, capital repairs are often necessary to place the property in salable condition. The following table indicates the annual cash expenditures for this purpose: Number of claims.. 1964 actual 1965 estimate 1966 estimate 24,125 24,375 23,660 $11,200 $11,200 $273,000 $265,000 $10,970 $264,661 1964 actual 1965 estimate Number of loans repurchased.. 1966 estimate 20,000 $250 $5,000 1964 actual 1965 estimate 1966 estimate 24,604 24,500 24,000 $996 $1,000 $1,000 $24,502 $24,500 $24,000 4. Repurchase of loans sold.-Pursuant to Veterans Administration Regulation 4600, dated March 22, 1962, the Administrator may sell mortgage loans, which have been created incident to the sale of Veterans Administration acquired properties, with full recourse: 5. Cash advances-vendee loans.-Cash expenditures are not involved in the establishment of vendee loans or installment contracts. However, it is often necessary to subse-262,701-319,262-489,927 quently advance cash on behalf of the borrower in order 367,462 356,044 to protect the interest of the Government. These disbursements are of two general types, i.e., those necessary to prevent foreclosure such as deficiencies in escrow accounts established for the payment of taxes and insurance on the mortgaged property and those necessary to cover foreclosure costs that should be paid by the borrower. These advances are added to the unpaid loan balance and are included in the capital outlay section of the program 1966 estimate 1,550 $11,000 $17,000 Financing. Normal revenue and receipts consist principally of interest income and repayments on mortgage loans made incident to the sale of real property acquired as a result of foreclosure on guaranteed loans. It is estimated that $62 million in 1965 and $50.7 million in 1966 will be received from these sources. Also an estimated $250 million vendee loans will be sold in 1965 and 1966, respectively. 78 Stat. 661 provided authority to transfer from the Direct loan revolving fund "retained earnings", as available, and, in addition up to $200 million as needed of "unobligated balances" to this fund to cover expenses for property acquisitions and other loan guaranty and insurance operations under 38 U.S.C. 37, except administrative expenses, as authorized by section 1824 of such title. Language is proposed to extend these provisions through 1966. Mortgage pools.-This fund received $7 million in 1965 from the sale of participation certificates in the Government Mortgage Liquidation Trust, authorized by the Housing Act of 1964, Public Law 88-560. These estimates also include revenue of $200 million in 1966 from the sale of additional mortgage pool participation certifi cates. Transfer from "Direct loans to veterans and reserves revolving fund" (cash): Capital (borrowings from Treasury) (74 Stat. 532 and 76 Stat. 8).. End of year.. Non-interest-bearing capital: 41 25,704 354,517 -66,487-64,125 -67,775 -39,214 | -34,088 -42,495 8,591 13.567 13,000 12,000 321,697 309,000 322,000 -327,273 -315,000-326,700 7,992 7,000 7,30 86,271 36,773 188,574 502,45 3,271 5,421 4,606 4,62 211.308 253,750 253,750 -208,133 -250,000 -250,000 3,175 3,750 3,75 -28,047 -23,338 -31,44 -13,293-41,340 -64,67 105,718 -41.340 -64,678-96,12 622,488 1964 1965 1966 actual estimate estimate 441,725 467,204 313,17 210,71 253,701 219,421 225,000 723,504 738,572 916,572 1,069,08 524 11,26 73 7 65 26.78 35,158 30,599 441,725 474,204 520,17 105,718 105,718 24,706 26,044 -105,718 -7,000-207,00 622,488 105,718 30,00 755,206 955,20 |
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