Department Of Defense Agency Financial Report 2007 - Section 2: Financial Information Page 41
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82Section 2: Financial Information
Department of Defense Agency Financial Report 2007
5
Note 7. Cash and Other Monetary Assets
As of September 30
2007
2006
(amounts in millions)
Cash
$
13,907.0
$
1,389.0
Foreign Currency
1,121.0
810.8
Total Cash, Foreign Currency, & Other Monetary Assets
$
15,028.0
$
2,199.8
The Department began reporting the accrued assets, liabilities, and expenses of the Foreign Military Sales Trust Fund during
FY 2007, resulting in the recognition of an additional $12.4 billion in cash. Nonentity assets of $15.0 billion, consisting of
$13.7 billion in cash and $1.1 billion in foreign currency which are restricted and unavailable for use in the Department’s
mission.
The balance in Cash includes $12.4 billion that the Department is executing on behalf of the Executive Office of the
President. The Department holds these amounts as stewards on the behalf of others and are therefore, not available for use
by the Department.
Note 8. Direct Loan and/or Loan Guarantee Programs
Direct Loan and/or Loan Guarantee Programs
The Department operates the following direct loan and loan guarantee programs:
• Foreign Military Account Program (FMA)
• Military Housing Privatization Initiative (MHPI)
• Armament Retooling and Manufacturing Support Initiative (ARMS)
The Federal Credit Reform Act of 1990 governs all amended direct loan obligations and loan guarantee commitments made
after FY 1991 and the resulting direct loans or loan guarantees. The OMB Circular A-11, section 185, "Federal Credit" and
OMB Circular A-129 provide additional guidance for direct loan and loan guarantee programs.
Direct loans are reported at the net present value of the following projected cash flows:
• Loan disbursements;
• Repayments of principal; and
• Payments of interest and other payments over the life of the loan after adjusting for estimated defaults, prepayments,
fees, penalties and other recoveries.
Loan guarantee liabilities are reported at the net present value. The cost of the loan guarantee is the net present value of the
following estimated projected cash flows:
• Payments by the Department to cover defaults and delinquencies, interest subsidies, or other payments; offset by
• Payments to the Department including origination and other fees, penalties, and recoveries.
Foreign Military Account Program
The FMA is a military assistance program that includes both direct loan and loan guarantee programs. The Department is
authorized by the U.S. Congress to execute the authorities of the Foreign Assistance Act of 1961, as amended, section 503(a)
and the Arms Export Control Act of 1976, as amended, section 23. The Defense Security Cooperation Agency, under the
auspices of the Executive Office of the President (EOP), administers the FMA program. The FMA program is comprised of:
(1) the pre 1992 Foreign Military Loan Liquidating Account, (2) the post 1991 Foreign Military Financing Account, and (3) the
post 1991 Military Debt Reduction Financing Account.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Department Of Defense Child Development Program Request For Care Record Dd Form 2606 (jul 1998)
Business
Dd Form 1172-2 2007, Application For Department Of Defense Common Access Card Deers Enrollment
Business
Related Categories
Parent category: Business