Summary

VETERANS ADMINISTRATION: REFERENCE IS MADE TO LETTER DATED JULY 19. THE INTERPRETATIONS OF YOUR ADMINISTRATION OF THE LANGUAGE OF THE APPROPRIATION ACT AS IT PERTAINS TO THE LOAN GUARANTY AND THE MEDICAL RESEARCH PROGRAMS ARE STATED IN THE ATTACHMENTS. IT IS NOTED THAT THE ACCOUNTING TREATMENT OF LEGISLATIVE LIMITATIONS WHICH ARE TYPIFIED BY THE LANGUAGE "NOT TO EXCEED. " DIFFERS FROM THE TREATMENT GIVEN SIMILAR LIMITATIONS IN PRIOR YEARS IN THAT THE DESCRIPTIVE LANGUAGE "NOT TO EXCEED" IS NOT INCLUDED IN THE LIMITATION ACCOUNTS DESCRIBED IN THE LETTER. ALTHOUGH THIS CHANGE IN DESCRIPTIVE LANGUAGE WILL NOT PREVENT A STRICT OBSERVANCE OF THE LEGISLATIVE CEILINGS INVOLVED. SINCE THE APPARENT RESULT OF THE NEW MANNER OF STATING THESE LIMITATION ACCOUNTS IS TO TEND TO OBSCURE A DISTINCTION WHICH THE AUDITORS AND ACCOUNTANTS MUST OBSERVE.