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Office of Budget

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

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21. Dedicated Collections

In the Federal Government, dedicated collections are accounted for in trust funds and special funds. The term "trust funds" as used in this report and in Federal budget accounting is frequently misunderstood. In the private sector, "trust" refers to funds of one party held by a second party (the trustee) in a fiduciary capacity. In the Federal budget, the term "trust fund" means only that the law requires that funds be accounted for separately and used only for specified purposes and that the account be designated as a "trust fund."

A change in law may change the future receipts and the terms under which the fund's resources are spent. The "trust fund assets" represent all sources of receipts and amounts due the trust fund regardless of source. This includes "related governmental transactions," which are transactions between two different entities within the Federal Government. The "Investments with Treasury" assets are comprised of investments in Federal debt securities and related accrued interest. These securities will require redemption if a fund's disbursements exceed its receipts. Unless specifically provided for by law, trust funds may only place excess funds in Federally backed investments (e.g., Federal debt securities).

The table below summarizes the name, type, and purpose of the funds within VA that receive dedicated collections. All of the funds listed use the accrual basis of accounting. However, collections are reported as actually received in accordance with OMB Circular A-34. The insurance funds listed also adhere to the requirements of FASB No. 120, "Accounting and Reporting by Mutual Life Insurance Enterprise," and issue a separate annual report. All of the funds generally receive authority to use current year contributions as well as a portion of previously contributed amounts.

Fund Name Fund Type Treasury Symbol Authority Purpose of Fund Financing Sources
Medical Care Collections Fund Special 36x5287 P.L. 105-33 111 Stat 665 Accumulates recoveries from third parties and patient copayments. Public, primarily insurance carriers.
Health Service Improvement Fund Special 36x5358 P.L. 106-117 113 Stat 1561 Accumulates recoveries from enhanced use leases and patient copayments. Public.
Escrowed Funds for Shared Medical Equipment Purchases Deposit 36x6019 106 Stat 1974 Receives payments from public companies involved in joint purchases of medical equipment. Public, universities, pharmaceuticals & other medical organizations.
Personal Funds of Patients Deposit 36x6020 38 U.S.C. 3204 Temporarily holds funds. Public, patients.
Employee Allotments for Savings Bonds Deposit 36x6050 31 U.S.C. 3105 Temporarily holds funds. Employees.
Cemetery Gift Fund Trust 36x8129 38 U.S.C. 1007 Receives donations for veteran cemeteries. Public donors.
National Service Life Insurance Fund Trust 36x8132 38 U.S.C. 720 Accumulates premiums to insure veterans of WWII. Public, veterans.
Post-Vietnam Era Education Assistance Program Trust 36x8133 38 U.S.C. 1622 Subsidizes the cost of education to veterans. Veterans, DoD.
U.S. Government Life Insurance Trust 36x8150 38 U.S.C. 755 Premiums insure WWI veterans. Public, veterans.
Veterans Special Life Insurance Fund Trust 36x8455 38 U.S.C. 723 101-228 Premiums insure Korean conflict veterans without Service-related disabilities. Public, veterans.
General Post Fund, National Homes Trust 36x8180 38 U.S.C. 101-228 Receives restricted and unrestricted use donations. Public, mostly veterans.

The following tables provide condensed information on assets, liabilities, fund balances, net costs, and changes in fund balances:

For the year ended September 30, 2004
Fund Symbol 5287 5358 6020 8132 8133 8150 8455 8180 Total
Assets:
Fund balance with Treasury $ 155 $ - $ 45 $ 10 $ 75 $ - $ 1 $ - $ 286
Investments with Treasury - - - 11,121 - 51 1,923 68 13,163
Other Assets 555 5 - 545 1 2 109 18 1,235
Total Assets 710 5 45 11,676 76 53 2,033 86 14,684
Liabilities:
Payables to Beneficiaries - - - 142 1 1 10 - 154
Other Liabilities - - 45 11,251 - 50 1,955 2 13,303
Total Liabilities - - 45 11,393 1 51 1,965 2 13,457
Net Position:
Cumulative Results 710 5 - 283 75 2 68 84 1,227
Total Liabilities & Net Position $ 710 $ 5 $ 45 $ 11,676 $ 76 $ 53 $ 2,033 $ 86 $ 14,684
For the year ended September 30, 2004
Fund Symbol 5287 5358 8132 8133 8150 8455 8180 Total
Revenues:
Exchange - Federal $ (24) $ - $ 718 $ - $ 3 $ 141 $ - $ 838
Exchange - Public 2,006 (114) 466 1 - 72 2 2,433
Non-Exchange - Federal - - - - - - - -
Non-Exchange - Public - - - - - - - -
Total Revenues 1,982 (114) 1,184 1 3 213 2 3,271
Expenses:
Program Expenses 212 (19) 1,211 4 4 215 40 1,667
Total Expenses 212 (19) 1,211 4 4 215 40 1,667
Net Change from Operations
Beginning Net Position 568 132 309 77 2 69 80 1,237
Total Financing Sources (1,628) (31) 1 - - - 42 (1,616)
Change in Accounting Policy - - - - - - - -
Net Cost of Operations 1,770 (96) (27) (2) - (1) (38) 1,606
Ending Equity $ 710 $ 5 $ 283 $ 75 $ 2 $ 68 $ 84 $ 1,227