EXPLANATION OF ANNEXED BUDGETS Part IV presents detailed schedules and explanatory statements on seven self-supporting Government agencies and programs which are outside the normal budget process. Like the budgets for the legislative branch and the judiciary, the annexed budgets have not been reviewed by the President but are presented in the amounts submitted by the agencies. Three agencies (Banks for Cooperatives, Federal Intermediate Credit Banks, and the Federal Deposit Insurance Corporation) have been included in the Governmentsponsored enterprise group in the computation of consolidated cash totals for some years, and the net totals for each have been displayed. However, data were reported only for certain debt and investment transactions, rather than for all of their activities, and the information was 1286 | obtained informally. The presentation of more complete annexed budgets does not change their handling in the totals. The other four agencies and programs (Milk Marketing Administration, Comptroller of the Currency, Exchange Stabilization Fund, and the Board of Governors of the Federal Reserve System) are also not included in the administrative budget, and are included only in part in the deposit fund group within the trust fund totals. In part they are outside all traditional figures on Federal finances. The material in this part is presented in the general format of similar material for public enterprise funds in part I. No appropriation language appears in part IV because action by the Congress is not required. ANNEXED BUDGETS DEPARTMENT OF AGRICULTURE CONSUMER AND MARKETING SERVICE 1 1965 nouncement of class and uniform blend prices, associated butterfat differentials and with examination of handlers records and facilities to verify their reports and payments to producers and in checking weights and tests of producers milk. The expenses of each local office are met from an administrative fund and a marketing service fund which are prescribed in each order. The administrative fund is derived from prorated handler assessments. The marketing service fund of the individual order provides for the expense of disseminating market information to producers who are not members of a qualified cooperative. It also 12,820 12,820 provides for the verification of the weights, sampling and testing of milk from these producers. The cost of these services is borne by such producers. 11,020 11,120 11,220 12,949 -7,502 7,502 12,820 -12,820 65 72.98 Obligated balance, start of year.. 74.98 Obligated balance, end of 1,020 year.. -1,100 90 Expenditures (not included under (millions) 88.9 93.8 1962 Producer deliveries (billion -15 Revenue, Expense, and Retained Earnings (in thousands of dollars) Receipts and other offsets (items 11-17) Obligations affecting expenditures.. 12,820 -12,820 Milk sold by regulated handlers supplied about 100 million persons 60% of the total nonfarm population— during calendar year 1964. The following table gives an indication of the growing role of Federal orders on the marketing of milk over the past few calendar years. Cash transactions: Gross expenditures....... Applicable receipts.. 1 Administrative fund totals are comprised of 75 separate independent order accounts, The Marketing service fund totals are comprised of 67 separate independent order accounts. The Secretary of Agriculture is authorized by the Agricultural Marketing Agreement Act of 1937, as amendedunder certain conditions-to issue Federal milk marketing orders establishing minimum prices which handlers are required to pay for milk purchased from producers. Market administrators are responsible for carrying out locally the terms of specific marketing orders. Their operating expenses, partly financed by assessments on regulated handlers, and partly by deductions from producers, are reported in these schedules. These funds are collected locally, deposited in local banks and disbursed directly by the market administrator. Each milk order is administered locally by a market administrator who is appointed by the Secretary. His staff is employed directly by the market administrator. The activities conducted in the local office are concerned primarily with monthly computations and public an Testing and weighing expenses. Miscellaneous__ Gross expenditures.. Applicable receipts.. 1 Balances of selected resources are identified on the statement of financial condition. The Office of the Comptroller of the Currency, the administrator of national banks, was established by the National Bank Act of 1863 (12 U.S.C. 1 et seq., 12 Stat. 665). That act provided for the chartering and supervision of a banking system by this Federal agency and thus created the unique American "dual banking system" of Federal- and State-chartered banks. The administrator of national banks is empowered by law to issue charters to new banking institutions which choose to operate under Federal law. Each approval or disapproval issues only upon a comprehensive field investigation which is subsequently subjected to thorough analysis by an expert staff of attorneys and economists. The operations of existing banks are subject to the supervision of the Comptroller. A staff of approximately 1,200 national bank examiners conducts a detailed examination of each of nearly 5,000 operating national banks on a regular basis. The end product of these examinations is a determination of the financial condition of national banks, the soundness of their operations, and their compliance with applicable laws and regulations. In addition, the Comptroller must approve all mergers involving national banks as well as applications for new branch offices. In accordance with statute, the Comptroller of the Currency promulgates regulations and rulings for the guidance of national banks. All laws, regulations, and rulings relating to national banks are published in the "Comptrollers Manual for National Banks" and the "Comptrollers Manual for Representatives in Trusts." both available in the Comptroller's office. 93 94 17,276 18,976 19,921 -19,095 -20,119 -21,380 |