Note 6. Accounts and Loans Receivable, Net

FY 2007 Financial Report
Bureau of Resource Management
November 2007
Report

The Department's Accounts Receivable and Loans Receivable at September 30, 2007and 2006 are summarized here (Dollars in Thousands). All are entity receivables.

Accounts Receivable and Loans Receiveable
At September 30, 2007 and 2006
(Dollars in Thousands)
  2007 2006
Entity
Receivables
Allowance for Uncollectible Net
Receivables
Entity
Receivables
Allowance for Uncollectible Net
Receivables
Intragovernmental Accounts Receivable $407,521 $(15,961) $391,560 $359,998 $(15,960) $344,038
Non-Intragovernmental Accounts and Loans Receivable   43,132
single underline
 (10,598)
single underline
  32,534
single underline
  42,726
single underline
  (8,407)
single underline
  34,319
single underline
Total Receivables $450,653
double underline
$(26,559)
double underline
$424,094
double underline
$402,724
double underline
$(24,367)
double underline
$378,357
double underline

Included in Non-Intragovernmental Accounts and Loans Receivable are approximately $551 thousand and ($123) thousand, in 2007 and 2006, respectively, of Repatriation Loans administered by the Department. Repatriation Loans enable destitute American citizens overseas to return to the United States. Repatriation loans made prior to 1992 are reported net of an allowance for uncollectible loans based upon historical experience. The Federal Credit Reform Act of 1990 (the Act), as amended, governs Repatriation loan obligations made after 1991, and the resulting direct loans. The Act requires that the present value of all direct costs (i.e., interest rate differentials, estimated delinquencies and defaults) associated with a loan be recognized and funded completely in the year the loan is disbursed. This value is termed the "subsidy cost" for the year, and is expressed as a percentage of the total face amount of loans disbursed that year. Funding for subsidy costs for loans made after 1991 establishes the subsidy allowance against which future collections and future loan write-offs are netted. In FY 2006, the subsidy was greater than the loans outstanding. Per the provisions of the Act, the Department borrows from Treasury the difference between the face value of loans disbursed and their calculated subsidy costs. The administrative costs associated with loan administration are separately budgeted and funded.

 


< Go to Previous Page         Go to Next Page >