Note 22. Dedicated Collections

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

The Department administers nine Trust Funds that receive dedicated collections. In the U.S. Government budget, Trust Funds are accounted for separately and used only for specified purposes. A brief description of these Funds and their purpose follows.

Foreign Service Retirement and Disability Fund (19X8186)

The Foreign Service Retirement and Disability Fund (FSRDF) was established in 1924 to provide pensions to retired and disabled members of the Foreign Service. The FSRDF's revenues consist of contributions from active participants and their U.S. Government agency employers; appropriations; and interest on investments. Monthly annuity payments are made to eligible retired employees or their survivors. Separated employees without title to an annuity may take a refund of their contributions. P.L. 96-465 limits the amount of administrative expense that can be charged to the fund to $5,000. The total cost for administering FSRDF was $3.0 million and $2.9 million in 2003 and 2002, respectively. Cash is invested in U.S. Treasury securities until it is needed for disbursement.

Foreign Service National Separation Liability Trust Fund (FSNSLTF) (19X8340)

FSNSLTF funds separation liabilities to foreign service national (FSNs) and personal service contractor (PSCs) employees who voluntarily resign, retire, or lose their jobs due to a reduction in force. The liability is applicable only in those countries that, due to local law, require a lump-sum voluntary separation payment based on years of service. The FSNSLTF was authorized in 1991 and initially capitalized with a transfer from the Department. Contributions are made to the FSNSLTF by the Department's appropriations, from which the FSNs and PSCs are paid. Once the liability to the separating FSN or PSC is computed in accordance with the local compensation plan, the actual disbursement is made from the FSNSLTF.

Conditional and Unconditional Gift Funds (19X8821 and 19X8822)

The Department maintains two Trust Funds for receiving and disbursing donations. It is authorized to accept gifts from private organizations and individuals in the form of cash, gifts-in-kind, and securities. Gifts are classified as Restricted or Unrestricted Gifts. Restricted Gifts must be used in the manner specified by the donor. Unrestricted Gifts can be used for any expense normally covered by an appropriation, such as representational purposes or embassy refurbishment.

Israeli-Arab Scholarship Program (19X8271)

The Israeli-Arab Scholarship Program provides grants and scholarships to Israeli-Arab students for degree programs at universities and colleges in the United States. This program was authorized by Section 214 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 (P.L. 102-138). A permanent endowment of $4.9 million was established in 1992.

Eisenhower Exchange Fellowship Program Trust Fund (95X8276)

The Eisenhower Exchange Fellowship Act of 1990 (P.L. 101-454) authorized a permanent endowment for the Eisenhower Exchange Fellowship Program to honor the late president by increasing educational opportunities for young leaders who wish to prepare for and enhance their professional careers and advance peace through international understanding. The 1992 Department of State and Related Agencies Appropriations Act provided $5.0 million to establish a permanent endowment for the Program, and appropriated the interest and earnings. The 1995 Department of State and Related Agencies Appropriations Act made an additional payment of $2.5 million to the endowment.

Miscellaneous Trust Funds, Information and Exchange Programs (19X8166, 19X8167, and 19X8272)

Funds advanced by other governments, business concerns, and private organizations to the Department are used to send experts abroad to perform requested services; give foreign nationals scientific, technical, or other training; purchase films and other products owned or controlled by the Department; and for international exhibitions.

Financial data of the Trust Funds as of and for the years ending September 30, 2003 and 2002, is summarized on the following two tables (Dollars in Thousands). Intra-departmental transactions have not been eliminated in the amounts presented

Trust Funds
For the Year Ending September 30, 2003
(Dollars in Thousands)
  FSRDF FSNSLTF Gift Funds Israeli-Arab Scholarship Eisenhower Exchange Fellowship Misc. Trust Funds

Assets:

Fund Balances with Treasury $        43  $94,878 $12,908 $  484 $    6 $2,670
Investments  12,289,302        —       —  4,388  7,483      —
Other Assets     202,949 
single underline
      —
single underline
     11
single underline
   106
single underline
     —
single underline
     4
single underline
Total Assets  12,492,294 
double underline
 94,878
double underline
 12,919
double underline
 4,978
double underline
 7,489
double underline
 2,674
double underline
 

Liabilities:

Payable to Beneficiaries      42,645        —       —      —      —      —
Actuarial Liability       9,653        —       —      —      —      —
Other Liabilities  13,093,800 
single underline
  4,941
single underline
  4,178
single underline
     —
single underline
     —
single underline
   103
single underline
Total Liabilities  13,146,098 
double underline
  4,941
double underline
  4,178
double underline
     —
double underline
     —
double underline
   103
double underline
Net Position (Deficit)    (653,804)
single underline
 89,937
single underline
  8,741
single underline
 4,978
single underline
 7,489
single underline
 2,571
single underline
Total Liabilities and Net Position $12,492,294 
double underline
$94,878
double underline
$12,919
double underline
$4,978
double underline
$7,489
double underline
$2,674
double underline
 

Revenues and Financing:

Exchange Revenue:            

Intragovernmental

$ 1,151,649  $ 9,454 $     — $  259 $    — $    —

Governmental

     25,416        —       —      —      —      —
Non Exchange Revenue:            

Intragovernmental

          —        —      54      —    450      2

Governmental

          —        —   3,927      —      —      —
Other Financing Sources           — 
single underline
       — 
single underline
      —
single underline
     —
single underline
     —
single underline
     —
single underline
Total Revenues and Financing   1,177,065 
double underline
  9,454
double underline
  3,981
double underline
   259
double underline
   450
double underline
     2
double underline
 

Expenses:

Program Expenses           —    9,712   3,661    371    419    229
Actuarial Expenses   1,506,093 
single underline
      —
single underline
      —
single underline
     —
single underline
     —
single underline
     —
single underline
Total Expenses $ 1,506,093 
double underline
$ 9,712
double underline
$3,661
double underline
$  371
double underline
$  419
double underline
$  229
double underline

 

Trust Funds
For the Year Ending September 30, 2002
(Dollars in Thousands)
  FSRDF FSNSLTF Gift Funds Israeli-Arab Scholarship Eisenhower Exchange Fellowship Misc. Trust Funds

Assets:

Fund Balances with Treasury $         -  $95,130 $ 7,581 $  530 $  105 $2,133
Investments  11,734,240        —   3,980  4,454  7,353    711
Other Assets     203,793 
single underline
      —
single underline
      8
single underline
   105
single underline
     —
single underline
     4
single underline
Total Assets  11,938,033 
double underline
 95,130
double underline
 11,569
double underline
 5,089
double underline
 7,458
double underline
 2,848
double underline
 

Liabilities:

Payable to Beneficiaries      41,283        —       —      —      —      —
Actuarial Liability  12,211,800        —       —      —      —      —
Other Liabilities       9,726 
single underline
  4,934
single underline
  3,146
single underline
     —
single underline
     —
single underline
    50
single underline
Total Liabilities  12,262,809 
double underline
  4,934
double underline
  3,146
double underline
     —
double underline
     —
double underline
    50
double underline
Net Position (Deficit)    (324,776)
single underline
 90,196
single underline
  8,423
single underline
 5,089
single underline
 7,458
single underline
 2,798
single underline
Total Liabilities and Net Position $11,938,033 
double underline
$95,130
double underline
$11,569
double underline
$5,089
double underline
$7,458
double underline
$2,848
double underline
 

Revenues and Financing:

Exchange Revenue:            

Intragovernmental

$ 1,133,237  $ 9,606 $     — $    — $    — $    —

Governmental

     24,199        —       —      —      —      —
Non Exchange Revenue:            

Intragovernmental

          —        —      88    263    730     15

Governmental

          —        —  33,582      —      —      —
Other Financing Sources           — 
single underline
       — 
single underline
      —
single underline
     —
single underline
     —
single underline
     —
single underline
Total Revenues and Financing   1,157,436 
double underline
  9,606
double underline
 33,670
double underline
   263
double underline
   730
double underline
    15
double underline
 

Expenses:

Program Expenses           —    8,651  33,495    402    356    515
Actuarial Expenses   1,057,328 
single underline
      —
single underline
      —
single underline
     —
single underline
     —
single underline
     —
single underline
Total Expenses $ 1,057,328 
double underline
$ 8,651
double underline
$33,495
double underline
$  402
double underline
$  356
double underline
$  515
double underline