SCOPE OF REGULATION 3. This regulation requires the submission of financial statements by corporate and noncorporate Government agencies of the following character: a. All wholly owned and mixed ownership Government corporations specifically included in the Government Corporation Control Act and amendments thereto, or subsequently brought under the provisions of that Act. b. All other activities of the Government operating as revolving funds (accounts symbolized 4000-4999 and 8400-8499 by the Treasury Department), for which business-type public enterprise or intragovernmental fund budgets are required by the Bureau of the Budget. c. Other activities or agencies (1) which are of a business-type nature; or (2) whose operations, services, or functions are largely self-liquidating or primarily of a revenue producing nature; or (3) whose operations result in the accumulation of substantial inventories, investments or other recoverable assets. Agencies and other activities to report under this category will be designated by the Fiscal Assistant Secretary of the Treasury. ISSUANCE OF INSTRUCTIONS 4. Financial statements and related information under this regulation shall be prepared and submitted by the agencies concerned, in the form and the manner prescribed in the procedural instructions issued by the Fiscal Assistant Secretary of the Treasury. WAIVERS 5. The Fiscal Assistant Secretary of the Treasury is authorized to waive the provisions of this regulation in whole or in part as to any agency or activity when it is determined that full compliance by such agency or activity is not necessary to accomplish the overall objective to obtain information required for the preparation of financial reports or for the purposes of the Bureau of the Budget. PERIODIC REPORTS REQUIRED 6. Agencies responsible for the administration of corporate or noncorporate activities of the type specified in paragraph 3 shall furnish for each such activity periodic financial statements, as follows: a. A Statement of Financial Condition showing the assets, liabilities, and investments of the United States Government in the enterprise. b. A Statement of Income and Expense and Changes in Accumulated Net Income (or Deficit) showing in condensed form the earnings or losses arising from operations and changes in accumulated net income (or deficit) for the fiscal year to the end of the reporting period. c. A Statement of Sources and Application of Funds showing the manner in which funds have been applied to the acquisition of assets, to expenses, and to retirement of borrowings and capital; the manner in which funds have been provided by the realization of assets, by income, by borrowings and capital contributions; and from which the net effect of such operations on the budget for the Government as a whole can be determined. d. A Statement of Long-range Commitments and Contingencies containing a short description of the program and a statement showing the gross amount outstanding of loans guaranteed or insured by the reporting agency, insurance programs, obligations issued on credit of or guaranteed by the United States, long-range commitments and other contingent liabilities, and assets held as offsets to such liabilities. ACCOUNTING SUPPORT FOR REPORTS 7. One of the principles upon which the Treasury Department is proceeding in connection with the responsibility for preparing central financial reports is that such reports should present fairly the financial condition and results of operations of the agencies as shown by their books and records. Hence, agencies shall furnish the Treasury Department with such information regarding the accounting basis for their reports submitted under this regulation, as may be required for proper evaluation of such reports. EFFECTIVE DATE 8. This regulation, with the concurrence of the Director of the Bureau of the Budget, supersedes Budget-Treasury Regulation No. 3, dated September 1, 1944, and revised March 15, 1947, issued pursuant to Executive Order No. 8512 of August 13, 1940, as amended by Executive Order No. 9084 of March 3, 1942, and shall be effective with the period ending March 31, 1956. W. RANDOLPH BURGESS, Acting Secretary of the Treasury. TREASURY DEPARTMENT FISCAL SERVICE Washington INSTRUCTIONS UNDER TREASURY DEPARTMENT CIRCULAR No. 966 Relating to the submission of business-type financial statements by Government corporations and certain unincorporated agencies I. GENERAL AUTHORITY FOR INSTRUCTIONS 1. These instructions are issued pursuant to Treasury Department Circular No. 966, issued under the authority contained in Section 114. of the Budget and Accounting Procedures Act of 1950 (31 U. S. C. 66b). SCOPE OF INSTRUCTIONS 2. These instructions explain the kinds of reports and other information to be furnished to the Treasury Department under the regulation; the periods of time to which the reports shall relate; and other reporting specifications, including information concerning accounting support of the data reported. 3. All questions pertaining to the regulations or these instructions should be submitted to the Bureau of Accounts, Treasury Department. KINDS OF REPORTS AND INFORMATION REQUIRED 4. The financial statements shall be submitted on the following standard forms: Standard Form 220. Statement of Financial Condition Standard Form 222. Statement of Sources and Application of Funds The printed forms may be purchased through the General Services Administration. Supporting schedules to be submitted as bereinafter required should be prepared or reproduced on letter size (8 by 10% inches) paper with appropriate title and references. Minus or "red" figures should be indicated by an asterisk (*). A duly authorized officer of the reporting agency will sign the original Standard Form 221. The copies need not be signed but should bear the name of the signing officer. 5. Where there are several regional corporations or institutions in a financial system performing identical functions, such as the twelve banks of the Federal intermediate credit bank system, consolidated statements shall be prepared and submitted for the system. Separate statements for each regional corporation or institution are not required. Where a single fund operated by an unincorporated agency covers activities made up of unlike functions, agencies may be requested to submit separate statements on a program or functional basis. 6. Each item group reported on the Statement of Financial Condition and the Statement of Long-range Commitments and Contingencies submitted for the last quarter in each fiscal year, should be described, in reasonable detail, outlining the accounting principles followed in reporting each item group on these statements unless such descriptive material is included in annual reports of the agencies submitted under paragraph 8 below. The description of the item groups should cover such subjects as (1) nature of accounts, e. g., whether on a cash, accrual, or modified accrual basis; (2) basis of reporting, e. g., whether at cost or some other value; (3) methods used in determining and reporting allowances for losses; (4) extent of departure from the account classifications provided in the regulation; and (5) extent, if any, of departure in reporting from the preceding year. The descriptive matter should be presented in the same order in which the respective item groups appear in the statements. The statements due quarterly as of the quarters ending September 30, December 31, March 31, and June 30 of each year shall be submitted on or before the 15th of the second month following those dates, except that all statements required at the fiscal year end should be submitted as soon as possible following the close of the fiscal year, but not later than the following September 30. Schedule 2-Investments in Public Debt Securities, provided for in paragraph 14f, shall be submitted each month within twenty days after the month for which it is rendered. The original of each statement and schedule shall be submitted to: Report Preparation Branch Treasury Department Two copies of each statement indicated above for the Bureau of the Budget shall be submitted directly to that agency at the same time the originals are sent to the Treasury. 8. Any corporation or agency required to report under this regulation, which prepares an annual financial report for publication or general distribution outside the agency, shall furnish one copy thereof to the Division of Central Reports, Bureau of Accounts, Treasury Department and two copies to the Bureau of the Budget at the time the report becomes available for distribution. ACCOUNTING SUPPORT FOR REPORTS 9. As stated in the regulation, one of the principles upon which the Treasury Department is proceeding in connection with its responsibility for preparing central financial reports is that such reports present fairly the financial condition and results of operations of agencies, as shown by their books and records. The statements for the period ending June 30 should be in agreement with the corresponding statements submitted annually to the Bureau of the Budget for the last completed fiscal year, recognizing that the arrangement and grouping of items in accordance with the prescribed forms of this regulation may not provide a breakdown that is identical in all respects with that required for the corresponding Budget statements. EFFECTIVE DATE 10. These procedural instructions shall be effective with the reports to be submitted for the quarter ending March 31, 1956. II. STATEMENT OF FINANCIAL CONDITION GENERAL 11. The Statement of Financial Condition (Standard Form 220) will show in condensed form the assets, liabilities, investment of the United States Government, and other capital of each of the reporting corporations and enterprises. The items to be reported under each classification are described below with appropriate reference to the line number on Standard Form 220. For purposes of uniformity, reporting agencies will adhere to the group classifications provided. Certain group classifications contain blank lines for reporting items to be determined and titled by the reporting agency. Supporting detail for certain items shall be furnished in supplemental schedules as indicated. Other supplemental schedules in addition to those specified herein may on occasion be requested from selected reporting agencies. 12. Interagency Items. Interagency receivables and payables representing amounts due to and from other Federal Government agencies on open accounts, notes, or similar indebtedness will be reported on the separate lines provided therefor under the appropriate asset and liability groups on the Statement of Financial Condition. Any reporting agency holding securities or a proprietory interest in the capital of another Government agency will report such holding under investments and include the same as a separate item in Schedule 3 (see paragraph 14f). Bonds, debentures, and notes payable of the reporting agency which are payable to other Government agencies shall be reflected on Schedule 5. REPORTING OF ASSETS 13. Cash and Fund Balances.-Report under this group cash belonging to the reporting agency or held for the account of others, including unexpended balances of funds made available by appropriation. Balances on deposit in banks and in the Treasury should be reflected on a basis of confirmed deposits and checks issued and consistent with the basis for determining unexpended balances of appropriations and funds in the Treasury central accounts. The itemization hereunder will show: a. Cash in banks (line 1).-Report on this line cash in commercial banks which is subject to withdrawal by the reporting agency for regular operations. b. Cash on hand and in transit (line 2).—Report on this line cash on hand. Imprest funds and advances with agent cashiers will be included only in cases where the amount of the initial advance was made from a commercial bank account or was treated as a reduction in the fund balance available with the United States Treasury. Imprest funds, advances to agent cashiers, and all other cash on hand not related to specific appropriations or funds but treated as part of the accountability of disbursing officers shall not be included. This item will also 49199-60-4 |