Note 6. Accounts and Loans Receivable, Net
The Department's Accounts Receivable and Loans Receivable at September 30, 2007and 2006 are summarized here (Dollars in Thousands). All are entity receivables.
|Allowance for Uncollectible||Net
|Allowance for Uncollectible||Net|
|Intragovernmental Accounts Receivable||$407,521||$(15,961)||$391,560||$359,998||$(15,960)||$344,038|
|Non-Intragovernmental Accounts and Loans Receivable|| 43,132
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.