25.2 Services of other agencies.... 1,690 -1,592 17,261 -19,867 74.98 Obligated balance, end of year.. -9,125 -9,153 -8,981 90 Expenditures -15,955 -26,755 -26,900 98 -2,606 Cash transactions: 93 Gross expenditures. 94 Applicable receipts. 20,007 12,208 13.513 -35,962-38,963 -40,413 1964 actual 1965 1966 estimate estimate 1,650 4,000 2,833 VETERANS SPECIAL TERM INSURANCE FUND 3. Cash surrenders.. 1964 actual 1965 estimate The fund finances the payment of claims on nonparticipating insurance policies issued before January 1, 1957, to veterans who served in the Armed Forces subsequent to 18,099 April 1951 (38 U.S.C., sec. 723). Policyholders were given the right (72 Stat. 1716) to convert to a permanent plan of insurance or to a new form of term insurance. Those who converted to a permanent plan also acquired the right to purchase total disability income coverage with an additional premium. Administrative expenses are paid from the appropriation, General operating 1966 estimate 9,436 expenses. Budget program-1. Death claims.-Payments to surviving beneficiaries continue to increase as deaths occur among policyholders. 2. Disability claims.-Payments to individuals who have purchased total disability coverage and who subsequently become totally disabled began in 1960. 3. Cash surrenders.-A policyholder may terminate his insurance by cashing in his policy for its cash value. 4. Special dividend.-Payments were authorized to insureds converting old term policies to new insurance 10,837 plans. This special authority expired in 1964. 6. Policy loans made. The policyholders who converted their insurance from term to permanent plan were subsequently entitled to borrow up to 94% of the cash value of the new policy. The following table reflects the decrease in the number of policies and the amount of insurance in force (dollars in thousands): Financing: Receipts and reimbursements from: Administrative budget accounts: In $5,700,398 $5,674,079 $5,596,000 $5,525,000 Financing. Payments from this fund are financed -1,900 primarily from premium receipts and interest on invest -15 -1,825 -100,170 -115, 120-140,197 1,650 115,120 140,197 7,000 160,269 ments. Operating results and financial condition.-Favorable mortality experience on insurance written against this fund has kept death claim payments well below the amount of premium and interest receipts, thereby producing an annual increase in the retained earnings of the fund. Part of the surplus retained earnings were used to finance the special dividend which expired in 1964. In 1965 it is proposed to transfer $1.7 million of surplus retained earnings to the new Veterans reopened insurance fund to provide initial capital for that account. In 1966 it is planned to use $7 million of the surplus retained the Veterans insurance and indemnities appropriation. earnings to partially offset new obligational authority in Number of policies. June 30, 645, 195 June 30, 637,000 1966 630,000 nued ste 881 1965 1966 estimate estimate Nonfunded.. 35,656 187 37,245 236 38,510 Total revenue. 10 38,775 Expense..... 39,766 34,323 35,323 Capital outlay, funded: Loans to veterans (obligations) (object class 42.0).. Analysis of retained earnings: 3,452 14 Retained earnings, start of year.. Unobligated balance transfer to (proposed): Veterans insurance and indemnities appropriation.... 21.98 Receipts and reimbursements from: Non-Federal sources: Loans repaid... Unobligated balance available, start of year... Unobligated balance available, end of Veterans reopened insurance fund (revolving) -1,650 year... -218 4,200 12 13 13 Cash transactions: Total assets.. Gross expenditures.. 94 Applicable receipts. Liabilities: Current.. 8,278 58,749 Premium waiver disability re serves.. 9,308 9,327 9,167 79,271 101,500 123,000 7,031 21,849 22,348 23,768 4,733 5,840 6,300 6,800 2,109 2,713 3,500 4,300 dividend.... 16,811 This fund is used to make loans up to $100 to disabled veterans eligible for vocational rehabilitation who are without sufficient funds to meet their expenses (38 U.S.C. 1507). Repayments are used to make new loans. Administrative expenses are borne by the appropriation, General operating expenses. WORKLOAD, AMOUNTS LOANED AND REPAID 1964 actual 1965 estimate Government equity: 1966 estimate Number of loans made.. Retained earnings.. 2,000 6,614 Average per loan.... $100 $100 $100 Number of loans outstanding.. 1,918 1,918 1,918 Analysis of Government Equity (in thousands of dollars) Average amount per loan outstanding.. $50 $50 $50 Total amount of loans made (in thou sands). $249 Unobligated balance.. Operating reserves.. Invested capital and earnings. Repayment of loans (in thousands). $218 $285 $200 Revenue, Expense, and Retained Earnings (in thousands of dollars) Total Government equity... 12,577 8,654 10,162 6,614 2222 are identified on the statement The Supply fund finances, on a reimbursable basis, the procurement of supplies and certain equipment throughout the Veterans Administration in accordance with the 96 provisions of 38 U.S.C. 5011, and nonperishable subsistence and drugs for all civilian agencies. Unobligated balance. 322 292 292 292 Invested capital.......... 67 96 96 Total Government equity. 389 388 388 Intragovernmental funds: SUPPLY FUND Program and Financing (in thousands of dollars) 388 Budget program.-The fund provides for the procurement of supplies and equipment, the maintenance and operation of three supply depots located at Somerville, N.J., Hines, Ill., and Wilmington, Calif., the operation of service and reclamations shops at each supply depot, a centralized periodical procurement activity, and printing service to Veterans Administration installations on & centralized basis. The publications and reproduction program provides printing service to Veterans Administration installations. Printed matter is acquired in accordance with the rules of the Joint Committee on Printing from the Government Printing Office, the General Services Administration, a Veterans Administration-operated plant in Arlington, Va., and from commercial sources. The Veterans Administration has been designated as the Government's purchasing and distribution agent for nonperishable subsistence and drugs required by the civilian agencies. Contracting and purchasing of these commodities began in the latter part of 1961. The Veterans Administration is currently collaborating with the General Services Administration, Health, Education, and Welfare and Department of Defense in a study of distribution methods for subsistence items; it is anticipated that this joint study will be completed during 1965. A decrease in procurement and sales volume in 1965 and 1966 over 1964 is anticipated due to direct procurement from the applicable appropriations of certain equipment previously provided through the Supply fund. Personal services and other costs incidental to the operation and administration of supply activities in the Veterans Administration central office and field organizations are charged directly to applicable appropriations and are not an operating expense of the Supply fund. Financing.-Consuming appropriations reimburse the fund for the cost of supplies and equipment provided and services rendered by the above specified activities. -168,830-162,420-162,693 Supply depot operating costs are recovered from the appropriations and funds receiving supplies and equipment -2,865 -2,900 -853 15, 107 10,464 -2,900 ADMINISTRATIVE PROVISIONS Not to exceed 5 per centum of any appropriation for the current fiscal year for "Compensation and pensions", "Readjustment benefits", and "Veterans insurance and indemnities" may be transferred to any other of the mentioned appropriations, but not to exceed 10 per centum of the appropriations so augmented. Appropriations available to the Veterans Administration for the current fiscal year for salaries and expenses shall be available for services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a). The appropriation available to the Veterans Administration for the current fiscal year for "Medical care" shall be available for funeral, burial, and other expenses incidental thereto (except burial awards authorized by section 902 of title 38, United States Code), for beneficiaries of the Veterans Administration receiving care under such appropriations. No part of the appropriations in this Act for the Veterans Administration (except the appropriation for "Construction of hospital and domiciliary facilities") shall be available for the purchase of any site for or toward the construction of any new hospital or home. No part of the foregoing appropriations shall be available for hospitalization or examination of any persons except beneficiaries entitled under the laws bestowing such benefits to veterans, unless reimbursement of cost is made to the appropriation at such rates as may be fixed by the Administrator of Veterans Affairs. (Independent Offices Appropriation Act, 1965.) |