DOC FY 2007 PAR - Note 18. Combined Statements of Budgetary Resources

The amount of Budget Authority, Appropriations on the Combined Statements of Budgetary Resources (SBR) reconciles to the amount of Budgetary Financing Sources, Appropriations Received reported on the Consolidated Statements of Changes in Net Position (SCNP) as follows:

Total borrowing authority available for NTIA’s Digital Television Transition and Public Safety Fund amounted to $919.7 million and $0.0 at September 30, 2007 and 2006, respectively, while total borrowing authority available for NOAA’s loan programs amounted to $204.4 million and $239.6 million at September 30, 2007 and 2006, respectively. The Borrowing Authority amounts reported in the SBR Budgetary Resources section represent only borrowing authority realized during the fiscal year being reported. See Note 1M, Debt to Treasury, for debt repayment requirements, financing sources for repayments, and other terms of borrowing authority used.

Eighty-five percent of the Department’s reporting entities have one or more permanent no-year appropriations to finance operations.

Reductions to the Department’s appropriations under Public Law 110-05 amounted to $32.0 million for FY 2007, while reductions for FY 2006 under Public Law 109-108 and Public Law 109-148 amounted to $116.1 million. These reductions are included in the SBR Budgetary Resources line Permanently Not Available. These reductions are also part of the amounts reported on the line Other Adjustments in the Unexpended Appropriations section, Budgetary Financing Sources subsection of the SCNP.

Legal arrangements affecting the Department’s use of Unobligated Balances of Budget Authority and/or Fund Balance with Treasury during FY 2007 and FY 2006 include the following:

The Department’s Deposits Funds, reported in Note 2, Fund Balance with Treasury, are not available to finance operating activities. These funds are also included in Note 2, Fund Balance with Treasury, on the line Non-budgetary (breakdown by status).
The Department’s Fund Balance with Treasury as of September 30, 2007 and 2006 includes $528.7 and $516.5 million, respectively, of USPTO offsetting collections exceeding prior years’ appropriations. USPTO may use these funds only as authorized by the U.S. Congress, and only as made available by the issuance of a Treasury warrant. These funds are included in Note 2, Fund Balance with Treasury, on the lines General Funds (breakdown by type), and Temporarily Not Available Pursuant to Public Law (breakdown by status).
The Omnibus Budget Reconciliation Act of 1990 established revenue withholding on certain statutory patent fees collected by USPTO. Subsequent legislation extended the revenue withholding through the end of FY 1998. These withheld revenues were deposited into the Patent and Trademark Surcharge Fund, a Special Fund Receipt Account at Treasury. USPTO may use monies from this account only as authorized by Congress and made available by the issuance of a Treasury warrant. As of September 30, 2007 and 2006, $233.5 million is held in the Patent and Trademark Surcharge Fund. These funds are included in Note 2, Fund Balance with Treasury, on the lines Special Fund (Patent and Trademark Surcharge Fund) (breakdown by type), and Non-budgetary (breakdown by status).
The Department’s Fund Balance with Treasury as of September 30, 2007 and 2006 includes $27.7 and $30.7 million, respectively, of funds temporarily not available for the Coastal Zone Management Fund, which accounts for the Coastal Energy Impact Program direct loans. These funds are included in Note 2, Fund Balance with Treasury, on the lines Revolving Funds (breakdown by type), and Temporarily Not Available Pursuant to Public Law (breakdown by status).
For loan programs prior to the Federal Credit Reform Act of 1990 (pre-FY 1992 loans), most or all liquidating fund unobligated balances in excess of working capital needs are required to be transferred to Treasury as soon as practicable during the following fiscal year.
For direct loan programs under the Federal Credit Reform Act of 1990 (post-FY 1991 loans) that have outstanding debt to Treasury, regulations require that most unobligated balances be returned to Treasury on September 30, or require that the borrowing authority be cancelled on September 30.
For loan guarantee programs under the Federal Credit Reform Act of 1990 that have outstanding debt to Treasury, regulations require that unobligated balances in excess of the outstanding guaranteed loans’ principal and interest be returned to Treasury on September 30.

There are no material differences between the amounts reported in the Combined Statement of Budgetary Resources for the year ended September 30, 2006 and the actual amounts reported in the FY 2008 budget of the U.S. government.

Apportionment Categories of Obligations Incurred:

The amounts of direct and reimbursable obligations incurred against amounts apportioned under Categories A, B, and Exempt from Apportionment are as follows:

Undelivered Orders:

Undelivered orders were $6.41 billion and $5.24 billion at September 30, 2007 and 2006, respectively.

Digital Television Transition and Public Safety Fund:

The Digital Television Transition and Public Safety Fund (Fund) was created by the Digital Television Transition and Public Safety Act of 2005. This NTIA fund receives proceeds from the auction of licenses for recovered analog spectrum from discontinued analog television signals, and provides funding for several Departmental programs from these receipts. Funding for these programs, prior to the availability of auction receipts, is also provided by Treasury borrowings, as discussed in Note 1, Summary of Significant Accounting Policies. There was no financial activity during FY 2006 for this Fund.

The Federal Communications Commission will conduct the auction of the licenses for recovered analog spectrum by commencing the bidding not later than January 28, 2008, and shall deposit the proceeds of such auction into the Fund no later than June 30, 2008. On September 30, 2009, the Fund shall transfer $7.36 billion to the general fund of the Treasury.

As of September 30, 2007, payments for the programs under this Fund may currently not exceed $2.29 billion, while Treasury borrowings under this Fund may not exceed $2.65 billion.

Below is a brief summary of the three largest programs under this Fund, and significant financial activity recorded in the FY 2007 Combined Statement of Budgetary Resources for each program:

Public Safety Interoperable Communications (PSIC): This is a grant program to assist public safety agencies in the acquisition of, deployment of, or training for the use of interoperable communications systems that can utilize reallocated public safety spectrum for radio communication. The Fund may make payments not to exceed $1.00 billion through FY 2010. The Department has in place a Memorandum of Understanding with the Federal Emergency Management Agency (FEMA), in which FEMA administers the PSIC grant program. NTIA provides FEMA with funds for the grants under the program, and for the charges for FEMA’s management and administrative services. NTIA records budgetary obligations with FEMA, while FEMA records the grants activity under the program. Budgetary obligations for FY 2007 to FEMA under the PSIC program amounted to $974.7 million, while Treasury borrowings for FY 2007 amounted to $56.0 million. As of September 30, 2007, FEMA executed all of the grant awards, totaling $968.4 million.

Digital-to-Analog Converter Box Program: This program is to provide households in the U.S. with forty dollar coupons (two-per-household maximum) that can be applied toward the purchase of digital-to-analog converter boxes. The Fund may make payments not to exceed $990.0 million through FY 2009. Furthermore, if the Department transmits to the House and Senate a statement certifying that the sum of $990.0 million is insufficient, then maximum payments may be increased to not exceed $1.50 billion. Budgetary obligations for FY 2007 for this program, funded by Treasury borrowings, amounted to $87.3 million.

National Alert and Tsunami Warning Program: This program is to implement a unified national alert system capable of alerting the public, on a national, regional, or local basis to emergency situations by using a variety of communications technologies. The Fund may make payments not to exceed $156.0 million during FY 2007 through FY 2012. The Department shall use $50.0 million of such amounts to implement a tsunami warning and coastal vulnerability program. There were no budgetary obligations for FY 2007 for this program. Treasury borrowings for FY 2007 amounted to $10.0 million.