Note 15. Earmarked Funds

FY 2007 Financial Report
Bureau of Resource Management
November 2007
Report

Earmarked funds are financed by specifically identified revenues, often supplemented by other financing sources, which remain available over time. These specifically identified revenues and other financing sources are required by statute to be used for designated activities, benefits or purposes, and accounted for separately from the Government's general revenues. See Note 5 "Investments" for further information on investments in U.S. Treasury securities for earmarked funds. There are no intradepartmental transactions between the various earmarked funds.

The Department administers thirteen earmarked funds as listed below. A brief description of the individually reported earmark funds and their purpose follows.

Earmarked Funds
Treasury Fund Symbol Description Statute
19X5497 Foreign Service National Defined Contribution Fund 22 USC 3968(a)(1)
19X8166 American Studies Endowment Fund 108 Stat. 425
19X8167 Trust Funds 22 USC 1479
19X8186 Foreign Service Retirement and Disability Fund 22 USC 4042-4065
19X8271 Israeli Arab Scholarship Programs 105 Stat. 696, 697
19X8272 Eastern Europe Student Exchange Endowment Fund 105 Stat. 699
19X8340 Foreign Service National Liability Trust Fund 105 Stat. 672
19X8341 Foreign Service National Liability Trust Fund 105 Stat. 672
19X8812 Gifts and Bequests, National Commission on Educational, Scientific, and Cultural Cooperation 22 USC 287q
19X8813 Center for Middle Eastern-Western Dialogue Trust Fund 118 Stat. 84
19X8821 Unconditional Gift Fund 22 USC 809, 1046
19X8822 Conditional Gift Fund 22 809, 1046
95X8276 Eisenhower Exchange Fellowship Program Trust Fund PL 101-454

 

Foreign Service National Defined Contributions Retirement Fund (FSNDCF) (19X5497)

The Foreign Service National Defined Contributions Retirement Fund is a retirement savings program designed to provide benefits upon separation to locally employed staff under local compensation plans at overseas U.S. diplomatic or consular missions or establishments. Contributions are made to the FSNDCF by the Department's appropriations from which the benefits are paid.

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 $4.3 million in both 2006 and 2005, respectively. Cash is invested in U.S. Treasury securities until it is needed for disbursement. The Department also issues separate annual financial statements for the FSRDF.

Foreign Service National Separation Liability Trust Funds (FSNSLTF) (19X8340 and 19X8341)

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.

Summary Financial Statements - Earmarked Funds
(Dollars in Thousands)
  FSRDF FSNSLTF FSNDCF GIFT Total - Other Earmarked Total Earmarked Funds
Balance Sheet As of September 30, 2007:            
Assets:            
Fund Balances with Treasury $       467  $81,458  $    55  $14,622  $ 2,630  $    99,232 
Investments 14,377,713       -        -    4,961   29,774  14,412,448
Taxes and Interest Receivable     194,371        -        -        -      334      194,705 
Other Assets       9,683 
single underline
      - 
single underline
 45,247 
single underline
  1,864 
single underline
      - 
single underline
     56,794 
single underline
Total Assets $14,582,234 
double underline
$81,458 
double underline
$45,302 
double underline
$21,447 
double underline
$32,738 
double underline
$14,763,179 
double underline

Liabilities
           
Actuarial Liability $14,728,700  $     -  $     -  $     -  $     -  $14,728,700 
Other Liabilities      62,515 
single underline
      - 
single underline
     61 
single underline
   (213)
single underline
       9  
single underline
     62,372 
single underline
Total Liabilities: $14,791,215 
double underline
$     - 
double underline
$    61 
double underline
$  (213)
double underline
$     9 
double underline
$14,791,072 
double underline

Net Position
           
Unexpended Appropriations $         -  $     -  $     -  $     -  $     -  $         - 
Cumulative Results of Operations    (208,981)
single underline
 81,458 
single underline
 45,241 
single underline
 21,660 
single underline
 32,729 
single underline
     (27,893) 
single underline

Total Liabilities and Net Position
$14,582,234 
double underline
$81,458 
double underline
$45,302 
double underline
$21,447 
double underline
$32,738 
double underline
$14,763,179 
double underline

Statement of Net Cost for the Period Ended September 30:
           
Gross Program Costs $         -  $16,951  $  3,894  $ 6,645  $ 2,251  $    29,741 
Less Earned Revenues    1,251,011  
single underline
 10,641 
single underline
  14,571 
single underline
       -  
single underline
       -  
single underline
  1,276,223 
single underline
Net Program Costs  (1,251,011)   6,310   (10,677)   6,645    2,251   (1,246,482)
Costs Not Attributable to Program Costs   1,266,562        -        -        -        -    1,266,562 
Less Earmed Revenues Not Attributable to Program Costs            -  
single underline
      - 
single underline
       -  
single underline
      - 
single underline
      - 
single underline
          - 
single underline
Net Cost of Operations  $   15,551 
double underline
$ 6,310 
double underline
$(10,677)
double underline
$ 6,645 
double underline
$ 2,251 
double underline
$    20,080 
double underline

Statement of Changes in Net Position for the Period Ended September 30:
           
Net Position Beginning of Period $  (193,430) $87,768  $ 34,564  $17,587  $33,687  $   (19,824)
Non-Exchange Revenue $         -  $     -  $      -  $10,718  $ 1,293  $    12,011 
Other Financing Sources           -        -         -        -        -            - 
Net Cost of Operations     (15,551)  (6,310)   10,677   (6,645)  (2,251)     (20,080)
Taxes and Other Nonexchange Revenue           - 
single underline
      - 
single underline
       - 
single underline
      - 
single underline
      - 
single underline
          - 
single underline
Change in Net Position $   (15,551)
single underline
$(6,310)
single underline
$ 10,677 
single underline
$ 4,073 
single underline
$  (958)
single underline
$    (8,069)
single underline
Net Position End of Period $  (208,981)
double underline
$ 1,458 
double underline
$ 45,241 
double underline
$21,660 
double underline
$32,729 
double underline
$   (27,893)
double underline

 

Summary Financial Statements - Earmarked Funds
(Dollars in Thousands)
  FSRDF FSNSLTF FSNDCF GIFT Total - Other Earmarked Total Earmarked Funds
Balance Sheet As of September 30, 2006:            
Assets:            
Fund Balances with Treasury $     2,070  $87,768  $    49  $11,925  $ 3,373  $   105,185 
Investments 13,875,717       -        -    3,968   29,899  13,909,584
Taxes and Interest Receivable     191,762        -        -        -      419      192,181 
Other Assets       9,552 
single underline
      - 
single underline
 34,564 
single underline
  1,695 
single underline
      4 
single underline
     45,815 
single underline
Total Assets $14,079,101 
double underline
$87,768 
double underline
$34,613 
double underline
$17,588 
double underline
$33,695 
double underline
$14,252,765 
double underline

Actuarial Liability
$14,215,300  $     -  $     -  $     -  $     -  $14,215,300 
Other Liabilities      57,231 
single underline
      - 
single underline
     49 
single underline
      1 
single underline
       8  
single underline
     57,289 
single underline
Total Liabilities: $14,272,531 
double underline
$     - 
double underline
$    49 
double underline
$     1 
double underline
$     8 
double underline
$14,272,589 
double underline

Unexpended Appropriations
$         -  $     -  $     -  $     -  $     -  $         - 
Cumulative Results of Operations    (193,430)
single underline
 87,768 
single underline
 34,564 
single underline
 17,587 
single underline
 33,687 
single underline
     (19,824) 
single underline

Total Liabilities and Net Position
$14,079,101 
double underline
$87,768 
double underline
$34,613 
double underline
$17,588 
double underline
$33,695 
double underline
$14,252,765 
double underline

Statement of Net Cost for the Period Ended September 30:
           
Gross Program Costs $         -  $12,491  $ 1,716  $ 4,155  $   878  $    19,240 
Less Earned Revenues    1,220,904  
single underline
 10,464 
single underline
  8,539 
single underline
       -  
single underline
       -  
single underline
  1,239,907 
single underline
Net Program Costs  (1,220,904)   2,027   (6,823)   4,155      878   (1,220,667)
Costs Not Attributable to Program Costs   1,486,862        -        -        -        -    1,486,862 
Less Earmed Revenues Not Attributable to Program Costs            -  
single underline
      - 
single underline
       -  
single underline
      - 
single underline
      - 
single underline
          - 
single underline
Net Cost of Operations  $  265,958 
double underline
$ 2,027 
double underline
$(6,823)
double underline
$ 4,155 
double underline
$   878 
double underline
$   266,195 
double underline

Statement of Changes in Net Position for the Period Ended September 30:
           
Net Position Beginning of Period $    72,528  $89,795  $27,741  $13,758  $28,440  $   232,262 
Non-Exchange Revenue $         -  $     -  $     -  $ 7,984  $ 1,189  $     9,173 
Other Financing Sources           -        -        -        -    4,936        4,936 
Net Cost of Operations    (265,958)  (2,027)   6,823   (4,155)    (878)    (266,195)
Taxes and Other Nonexchange Revenue           - 
single underline
      - 
single underline
      - 
single underline
      - 
single underline
      - 
single underline
          - 
single underline
Change in Net Position $  (265,958)
single underline
$(2,027)
single underline
$ 6,823 
single underline
$ 3,829 
single underline
$ 5,247 
single underline
$  (252,086)
single underline
Net Position End of Period $  (193,430)
double underline
$87,768 
double underline
$34,564 
double underline
$17,587 
double underline
$33,687 
double underline
$   (19,824)
double underline

 


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