department of defense agency financial report fiscal year 2012
department of defense agency financial report fiscal year 2012
department of defense agency financial report fiscal year 2012
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Department <strong>of</strong> Defense Agency Financial Report for FY <strong>2012</strong><br />
the right to take the work, except as provided for in contract clauses related to termination<br />
or acceptance. The Department is not obligated to make payment to contractors until<br />
delivery and acceptance.<br />
Outstanding Contract Financing Payments includes $61.9 billion in contract financing<br />
payments and an additional $3.4 billion in estimated future payments to contractors upon<br />
delivery and government acceptance <strong>of</strong> satisfactory product. Refer to Note 15, Other<br />
Liabilities, for further information.<br />
NOTE 7. CASH AND OTHER MONETARY ASSETS<br />
Cash and Other Monetary Assets Dollars in Millions<br />
As <strong>of</strong> September 30 <strong>2012</strong> 2011<br />
Cash $ 443.9 $ 472.9<br />
Foreign Currency 1,378.1 1,247.4<br />
Total Cash, Foreign Currency, and Other Monetary Assets $ 1,822.0 $ 1,720.3<br />
Cash (except for $112.9 million in undeposited collections and imprest funds) and Foreign<br />
Currency represent nonentity assets and are restricted and unavailable to fund the<br />
Department’s mission.<br />
NOTE 8. DIRECT LOAN AND LOAN GUARANTEES<br />
Direct Loan and Loan Guarantee Programs<br />
The Department operates the following direct loan and/or loan guarantee programs:<br />
• Military Housing Privatization Initiative (MHPI)<br />
• Armament Retooling and Manufacturing Support Initiative (ARMS)<br />
The Federal Credit Reform Act <strong>of</strong> 1990 governs all new and amended direct loan obligations<br />
and loan guarantee commitments made after FY 1991.<br />
Direct loans are <strong>report</strong>ed at the net present value <strong>of</strong> the following projected cash flows:<br />
• Loan disbursements<br />
• Repayments <strong>of</strong> principal<br />
• Payments <strong>of</strong> interest and other payments over the life <strong>of</strong> the loan after adjusting for<br />
estimated defaults, prepayments, fees, penalties, and recoveries<br />
Loan guarantee liabilities are <strong>report</strong>ed at the net present value. The cost <strong>of</strong> the loan<br />
guarantee is the net present value <strong>of</strong> the following estimated projected cash flows:<br />
• Payments by the Department to cover defaults and delinquencies, interest subsidies, or<br />
other payments; <strong>of</strong>fset by payments to the Department including origination and other<br />
fees, penalties, and recoveries.<br />
Military Housing Privatization Initiative<br />
The MHPI includes both direct loan and loan guarantee programs. The programs are<br />
authorized by the National Defense Authorization Act for FY 1996 (PL 104-106,<br />
90<br />
Financial Information
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