Veterans Affairs banner with U.S. FlagVeterans Affairs banner with U.S. Flag

Office of Budget

Fiscal Year 2004 Performance and Accountability Report
Published November 15, 2004

Back to Table of Contents

19. Disclosures Related to the Statements of Budgetary Resources

Apportionment categories of obligations incurred
Obligations Years Ended September 30, 2004 2003
Category A, Direct $ 31,972 $ 29,252
Category B, Direct 37,398 34,432
Reimbursable 4,657 4,434
Exempt from Apportionment 394 1,231
Total Obligations $ 74,421 $ 69,349

Borrowing Authority

Loan Guaranty had borrowing authority of $1.1 billion and $1.3 billion as of September 30, 2004 and 2003, respectively. The Vocational Rehabilitation Program had borrowing authority of $4.1 and $3.5 million as of September 30, 2004 and 2003, for making direct loans. Loan Guaranty borrowing is repaid to Treasury through the proceeds of portfolio loan collections, funding fees, and the sale of loans to Vinnie MAC trusts. The Vocational Rehabilitation loans generally had duration of 1 year, and repayment was made from offsetting collections.

Adjustments to Budgetary Resources

During the reporting period, adjustments to budgetary resources available at the beginning of the year included VA appropriations that were subjected to a rescission that totaled $443 million. Additionally, unobligated balances of prior year recoveries of $270 million were rescinded. Various VA program accounts received a cut in discretionary budget authority.

Permanent Indefinite Appropriations

VA has three permanent and indefinite appropriations. The Veterans Housing Benefit Program Fund covers all estimated subsidy costs arising from post-1991 loan obligations for veterans housing benefits. The Fund's objective is to encourage and facilitate the extension of favorable credit terms by private lenders to veterans for the purchase, construction, or improvement of homes to be occupied by veterans and their families. The Loan Guarantee Revolving Fund is a liquidating account that contains all of VA's pre-credit reform direct and guaranteed loans. It also holds fund balances received from reimbursements from financing accounts for loan modifications and rentals of foreclosed properties not yet transferred to financing accounts. The Native American Direct Loan Account was established to cover all subsidy costs arising from direct loan obligations related to a veteran's purchase, construction, or renovation of a dwelling on trust land.

Use of Unobligated Balances of Budget Authority

Available unobligated balances on the Statement of Budgetary Resources are composed of current fiscal year apportioned funds for annual, multi-year, and no-year appropriations from Congress as well as revolving and trust funds. Other balances not available are composed of expired appropriation unobligated amounts, which generally are not available for new obligations, but can be used to increase existing obligations under certain circumstances. This amount also includes unobligated funds that were not apportioned by OMB for FY 2004 use.

Unobligated VA funds are available for uses defined in VA's FY 2004 Appropriation Law (P.L. 108-199). These purposes include veterans medical care, research, education, construction and maintenance of VA buildings, veterans and dependents benefits, veterans life insurance, loan guaranty programs, veterans burial benefits, and administrative functions. Various obligation limitations are imposed on individual VA appropriations. Examples include travel obligation limitations and limitation of the use of medical care multi-year funds to object classes for equipment, structures, and land.

Explanation of Differences Between Statement of Budgetary Resources and the Budget

As a result of an analysis of aged obligations, obligations were reduced by $90 million on the Statements of Budgetary Resources for both FY 2004 and FY 2003. These adjustments were not reflected in the FACTS II data used to prepare the President's Budget. No other differences were identified as of the preparation date of the financial statements.

Contributed Capital

The amount of contributed capital received during FY 2004 consisted of donations in the amount of $40.5 million to the General Post Fund and $0.1 million to the National Cemetery Gift Fund.