Treasury Directive 32-06

Date: July 6, 1999

Sunset Review: July 6, 2003

SUBJECT: Administrative Expenses for Trust Funds

1. PURPOSE. This Directive establishes reporting requirements for administrative expenses incurred by Treasury bureaus in servicing the following accounts: the Unemployment Trust Fund (UTF), the Federal Old-Age and Survivors Insurance Trust Fund (FOASI), the Federal Disability Insurance Trust Fund (FDI), the Federal Hospital Insurance Trust Fund (FHI), the Federal Supplementary Medical Insurance Trust Fund (FSMI), the Black Lung Disability Trust Fund (BLD), and the Oil Spill Liability Trust Fund.

2. BACKGROUND. The Secretary of the Treasury is directed by statute to charge the trust funds named in paragraph 1. and, with the exception of the Oil Spill Liability Trust Fund, to reimburse the general fund of the Treasury for administrative expenses (including the collection of employment taxes) incurred by Treasury entities in servicing the trust funds. These transactions are processed quarterly. In addition, the Financial Management Service is authorized to be directly reimbursed by the trust funds named in paragraph 1., with the exception of the Oil Spill Liability Trust Fund, for certain expenses incurred in the issuance of payments from the trust funds. Section 104 of Public Law 101-136 (31 U.S.C. 306 note). The Bureau of the Public Debt is authorized to be directly reimbursed by the trust funds named in paragraph 1. for costs and services performed by the Bureau of the Public Debt in the administration of such funds. Section 101(h) of Public Law 105-277 (31 U.S.C. 306 note). (For the Oil Spill Liability Trust Fund, the Bureau of the Public Debt’s reimbursement authority is authorized by annual appropriation act).

3. RESPONSIBILITIES.

a. The Deputy Assistant Secretary (Administration), Heads of Bureaus, the Inspector General and the Treasury Inspector General for Tax Administration, with respect to their respective bureaus and offices and in fulfillment of the statutory responsibilities contained in paragraph 8., shall submit the following reports to the Trust Fund Management Branch, Division of Federal Investments, Office of Public Debt Accounting, Bureau of the Public Debt:

(1) a quarterly report setting out estimates of administrative expenses to be incurred for each of the trust funds for the current quarter, adjusted by actual expenses incurred in the previous quarter; and

(2) a fiscal year-end report to summarize and adjust estimated administrative expenses to actual expenses.

b. The Commissioner, Bureau of the Public Debt shall request any additional reports and information as may be necessary to meet Departmental or Office of Management and Budget requirements pertaining to administrative expenses for trust funds.

4. PROCEDURES.

a. If bureaus are unable to distribute administrative expenses among the FOASI, the FHI, and the FDI trust funds on an actual basis, such expenses should be reported in total under the FOASI classification, and Bureau of the Public Debt will make the distribution. Any expenses relating to the FSMI, the UTF, the BLD, and the Oil Spill Liability trust funds must be reported separately.

b. In the event the basis used in compiling the estimates for quarterly reports is changed, the first quarterly estimate in which the new basis is applied should be accompanied by an explanation of the new basis.

5. TIME FOR SUBMISSION OF QUARTERLY AND ANNUAL REPORTS.

a. Each quarterly report setting out estimates of administrative expenses to be incurred for each of the trust funds shall be submitted in an original and one copy, as follows:

Estimate Due On or Before For Quarter Ending

October 1 December 31

January 1 March 31

April 1 June 30

July 1 September 30

b. Any revisions of a previous quarterly report should be included in the next quarterly report.

c. Each annual report summarizing and adjusting estimated administrative expenses to actual expenses chargeable to the trust funds shall be submitted, in an original and one copy, not later than January 1 of the fiscal year following the fiscal year covered by the report.

6. ANNUAL ESTIMATES FOR BUDGET PURPOSES. Each bureau incurring administrative expenses for the trust funds shall submit to the Trust Fund Management Branch an estimate of expenses incurred, not later than December 1 of each fiscal year. These estimates shall include:

a. past year actual;

b. current year actual and estimates by month; and

c. annual estimates for the next ten fiscal years.

7. CANCELLATION. Treasury Directive 32-06, "Administrative Expenses for Trust Funds," dated December 4, 1991, is superseded.

8. AUTHORITIES.

a. 42 U.S.C. 401(g)(1)(B) and 1101(c)(2).

b. 26 U.S.C. 9501.

c. Section 104 of the Treasury Department Appropriations Act, 1989, Title I, Public Law 101-136 (31 U.S.C. 306 note).

d. Treasury Department Appropriations Act, 1999, as included in Public Law 105-277, § 101(h); 112 Stat. 2681-480, 2681-486, 2681-487 (31 U.S.C. 306 note).

9. OFFICE OF PRIMARY INTEREST. Division of Federal Investments, Office of Public Debt Accounting, Bureau of the Public Debt.