DEPARTMENT OF VETERANS AFFAIRS

Veterans Health Administration

Federal Funds

Medical Services

For necessary expenses for furnishing, as authorized by law, inpatient and outpatient care and treatment to beneficiaries of the Department of Veterans Affairs and veterans described in section 1705(a) of title 38, United States Code, including care and treatment in facilities not under the jurisdiction of the Department, and including medical supplies and equipment, bioengineering services, food services, and salaries and expenses of health care employees hired under title 38, United States Code, aid to State homes as authorized by section 1741 of title 38, United States Code, assistance and support services for caregivers as authorized by section 1720G of title 38, United States Code, and loan repayments authorized by section 604 of the Caregivers and Veterans Omnibus Health Services Act of 2010 (Public Law 111–163; 124 Stat. 1174; 38 U.S.C. 7681 note); [$41,354,000,000] $165,000,000, which shall be in addition to funds previously appropriated under this heading that became available on October 1, 2012; and, in addition, $43,557,000,000, plus reimbursements, shall become available on October 1, [2012] 2013, and shall remain available until September 30, [2013] 2014: Provided, That, of the amount made available on October 1, 2013, under this heading, $1,400,000,000 shall remain available until September 30, 2015: Provided further, That notwithstanding any other provision of law, the Secretary of Veterans Affairs shall establish a priority for the provision of medical treatment for veterans who have service-connected disabilities, lower income, or have special needs: Provided further, That notwithstanding any other provision of law, the Secretary of Veterans Affairs shall give priority funding for the provision of basic medical benefits to veterans in enrollment priority groups 1 through 6: Provided further, That notwithstanding any other provision of law, the Secretary of Veterans Affairs may authorize the dispensing of prescription drugs from Veterans Health Administration facilities to enrolled veterans with privately written prescriptions based on requirements established by the Secretary: Provided further, That the implementation of the program described in the previous proviso shall incur no additional cost to the Department of Veterans Affairs. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Special and Trust Fund Receipts (in millions of dollars)


Identification code 36–0160–0–1–703 2011 actual 2012 est. 2013 est.

0100 Balance, start of year 236 233 233
Receipts:
0220 Pharmaceutical Co-payments, MCCF 730 696 759
0221 Medical Care Collections Fund, Third Party Prescription Claims 33 33 33
0222 Enhanced-use Lease Proceeds, MCCF 1 2 2
0223 First Party Collections, MCCF 178 177 188
0224 Third Party Collections, MCCF 1,767 1,792 1,917
0225 Parking Fees, MCCF 4 4 4
0226 Compensated Work Therapy, MCCF 55 57 57
0227 MCCF, Long-term Care Copayments 3 4 4
0240 Payments from Compensation and Pension, MCCF 1 2 2



0299 Total receipts and collections 2,772 2,767 2,966



0400 Total: Balances and collections 3,008 3,000 3,199
Appropriations:
0500 Medical Care Collections Fund –2,775 –2,767 –2,966



0799 Balance, end of year 233 233 233

Program and Financing (in millions of dollars)


Identification code 36–0160–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Acute hospital care 7,664 7,210 7,286
0002 Rehabilitative care 555 426 446
0003 Psychiatric care 3,726 4,479 4,988
0004 Nursing home care 3,638 3,889 4,144
0005 Subacute care 55 72 77
0006 State home domiciliary 59 54 57
0007 Outpatient care 21,860 24,126 25,095
0008 CHAMPVA 1,138 1,188 1,291



0091 Total operating expenses 38,695 41,444 43,384
0101 Acute hospital care 289 329 354
0102 Rehabilitative care 25 29 31
0103 Psychiatric care 162 184 198
0104 Nursing home care 103 116 125
0105 Subacute care 2 3 3
0107 Outpatient care 634 723 775



0191 Total capital investment 1,215 1,384 1,486



0293 Total direct program 39,910 42,828 44,870



0799 Total direct obligations 39,910 42,828 44,870
0801 Reimbursable program 294 281 287



0900 Total new obligations 40,2041 43,109 45,157

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 1,208 1,015 398
Budget authority:
Appropriations, discretionary:
1100 Appropriation 1,000 1,400 1,565
1120 Appropriations transferred to other accts [36–0169] –49 –173
1120 Appropriations transferred to other accts [36–0165] –65 –15 –15
1121 Transferred from other accounts [36–5287] 2,771 2,749 2,966
1130 Appropriations permanently reduced –2



1160 Appropriation, discretionary (total) 3,655 3,961 4,516
Advance appropriations, discretionary:
1170 Advance appropriation 36,136 39,650 41,354
1173 Advance appropriations permanently reduced –72 –1,400 –1,400



1180 Advanced appropriation, discretionary (total) 36,064 38,250 39,954
Spending authority from offsetting collections, discretionary:
1700 Collected 285 281 289
1701 Change in uncollected payments, Federal sources 8



1750 Spending auth from offsetting collections, disc (total) 293 281 289
1900 Budget authority (total) 40,012 42,492 44,759
1930 Total budgetary resources available 41,220 43,507 45,157
Memorandum (non-add) entries:
1940 Unobligated balance expiring –1
1941 Unexpired unobligated balance, end of year 1,015 398

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 4,916 5,151 6,697
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –11 –12 –12



3020 Obligated balance, start of year (net) 4,905 5,139 6,685
3030 Obligations incurred, unexpired accounts 40,204 43,109 45,157
3031 Obligations incurred, expired accounts –91
3040 Outlays (gross) –39,878 –41,563 –43,829
3050 Change in uncollected pymts, Fed sources, unexpired –8
3051 Change in uncollected pymts, Fed sources, expired 7
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 5,151 6,697 8,025
3091 Uncollected pymts, Fed sources, end of year –12 –12 –12



3100 Obligated balance, end of year (net) 5,139 6,685 8,013

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 40,012 42,492 44,759
Outlays, gross:
4010 Outlays from new discretionary authority 34,508 36,641 38,543
4011 Outlays from discretionary balances 5,370 4,922 5,286



4020 Outlays, gross (total) 39,878 41,563 43,829
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources –107 –63 –63
4033 Non-Federal sources –187 –218 –226



4040 Offsets against gross budget authority and outlays (total) –294 –281 –289
Additional offsets against gross budget authority only:
4050 Change in uncollected pymts, Fed sources, unexpired –8
4052 Offsetting collections credited to expired accounts 9



4060 Additional offsets against budget authority only (total) 1



4070 Budget authority, net (discretionary) 39,719 42,211 44,470
4080 Outlays, net (discretionary) 39,584 41,282 43,540
4180 Budget authority, net (total) 39,719 42,211 44,470
4190 Outlays, net (total) 39,584 41,282 43,540

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

For 2014, the Budget is requesting $54.5 billion in advance appropriations for the three medical care appropriations: Medical Services, Medical Support and Compliance, and Medical Facilities. This request for advance appropriations fulfills the Administration's commitment to provide reliable and timely resources to support the delivery of accessible and high-quality medical services for veterans. Advance appropriations require a multi-year approach to budget planning whereby one year builds off the previous year. This funding enables timely and predictable funding for VA's medical care to prevent our Nation's veterans from being adversely affected by budget delays, and provides opportunities to more effectively use resources in a constrained fiscal environment. For example, estimated savings from management improvements to be achieved in 2012 will be carried forward into 2013 to reduce the appropriations needed . Without the carryover of these resources from 2012 , currently estimated at $500 million, VA would need a higher level of appropriations in 2013 .

For 2013, Medical Care appropriations are increased by $165 million over the enacted 2013 advance appropriations of $52.5 billion. Each year, VA updates its budget estimates to incorporate the most recent data on health care utilization rates, actual program experience, and other factors, such as economic trends in unemployment and inflation. As a result, in 2012 and 2013 VA was able to reinvest funding in high priority medical programs.

With the resources requested for 2013 and 2014, VA will provide the highest quality health care services for veterans. VA estimates it will treat 6.3 million patients in 2013 and 6.4 million patients in 2014. Operation Enduring Freedom, Operation Iraqi Freedom and Operation New Dawn (OEF/OIF/OND) veterans are expected to reach 610,416 in 2013 (9.7 percent of the total) and 654,480 in 2014 (10.3 percent of the total).

Medical Services._For Medical Services, the Budget reflects the following appropriation funding: the 2012 enacted advance appropriations of $39.6 billion; the 2013 appropriation request of $41.5 billion; and the 2014 advance appropriations request of $43.6 billion. This appropriation provides for a comprehensive, integrated health care delivery system that addresses the needs of eligible veterans and beneficiaries in VA medical centers, outpatient clinic facilities, contract hospitals, State homes, and outpatient programs on a fee basis. Hospital and outpatient care is also provided by the private sector for certain dependents and survivors of veterans under the Civilian Health and Medical Programs for the Department of Veterans Affairs (CHAMPVA).

Medical Care Collections Fund (MCCF)._VA estimates collections of $3.0 billion in 2013 and nearly $3.1 billion in 2014, representing five percent of available resources in both years. VA has the authority to collect inpatient and outpatient co-payments, medication co-payments, and nursing home co-payments; authority for certain income verification; authority to recover third-party insurance payments from veterans for nonservice-connected conditions; and authority to collect revenue from enhanced use leases. These collections also include those collected from the Compensated Work Therapy Program, Compensation and Living Expenses Program, and the Parking Program.

WORKLOAD

Acute hospital care._Costs for 2013 are estimated to be $7,640 million for operating medical, neurological, surgical, contract and State home hospital beds.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 627,242 641,657 653,863
Average daily census 8,921 9,009 9,112
Average employment 42,308 42,805 43,835

Rehabilitative care._Costs for 2013 are estimated to be $477 million for the provision of rehabilitative care, including spinal cord injury care.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 15,910 16,280 16,712
Average daily census 1,133 1,140 1,148
Average employment 4,333 4,383 4,488

Psychiatric care._Costs for 2013 are estimated to be $5,186 million for the inpatient, residential, and outpatient care of veterans with problems related to mental illness, including alcohol and drug problems.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 153,648 156,257 159,942
Average daily census 9,999 10,130 10,230
Average employment 28,690 29,026 29,725

Nursing home care._Costs for 2013 are estimated to be $4,269 million for the care of residents in VA community living centers, contract nursing homes, and State nursing homes.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 97,221 98,967 100,028
Average daily census 36,573 36,673 36,923
Average employment 19,988 20,222 20,709

Noninstitutional extended care._Costs for 2013 are estimated to be $1,477 million for noninstitutional extended care programs such as adult day care; home based primary care, skilled nursing and rehabilitation care; and home health aids.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Average daily census 95,092 113,254 120,118

Subacute care._Costs for 2013 are estimated to be $80 million for the treatment of veterans who require a level of care between acute and long-term care, as provided in VA hospital intermediate bed sections.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 3,000 2,287 1,715
Average daily census 107 87 69
Average employment 510 516 529

State home domiciliary care._Costs for 2013 are estimated to be $57 million for the care of veterans in locations other than their own homes, such as domiciliary care programs.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Patients treated 4,162 4,039 3,941
Average daily census 3,662 3,712 3,762

Outpatient care._Costs for 2013 are estimated to be $24,695 million for outpatient medical and dental care provided by staff, physicians, and dentists participating under a fee basis arrangement for certain eligible veterans.
Estimated operating levels are:

NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS


2011 actual 2012 est. 2013 est.

Medical visits (in thousands):
Staff visits 70,896 73,487 76,215
Fee visits 12,231 12,823 13,379

Readjustment counseling 1,377 1,444 1,508



Total 84,504 87,754 91,102
Dental procedures: 4,120,152 4,274,083 4,394,018
Average employment 89,235 90,903 93,091

Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA)._Costs for 2013 are estimated to be $1,291 million for private hospital and outpatient care for dependents and survivors of certain veterans.
Estimated operating levels are:


2011 actual 2012 est. 2013 est.

Outpatient (in thousands) 11,019 11,312 11,862

PERFORMANCE MEASURES

Provide high-quality health care._Use of clinical practice guidelines in treating patients results in improved health of veterans and reduced use of services. The prevention index spotlights and summarizes a variety of evidence-based measures for high-quality preventive health care. VHA's strategy to monitor satisfaction through patient surveys will identify areas of improvement in all medical services.


2011 actual 2012 est. 2013 est.

Clinical Practice Guidelines Index III/IV (2011 - results are CPGI III and 2012 and 2013 are CPGI IV) 91% 92% 92%
Prevention Index IV/V (2011 - results are PI IV and 2012 and 2013 are PI V) 92% 93% 93%

Access to medical care._VA's strategy is to improve access and timeliness of service by reducing waiting times in specialty and primary care clinics for new patient appointments in medical centers nationwide and by relying more extensively on non-institutional forms of long-term care. In 2012, VHA will begin measuring the four appointment performance measures using a 14-day standard, as noted in the chart below. VA strives to improve timely access to the delivery of primary and specialty care which is critical to providing high-quality care to veterans.


2011 actual 2012 est. 2013 est.

New appointment performance measures are provided below:
Percentage of new primary care appointments completed within 14 days of the desired date N/Av 83% 84%
Percentage of established primary care appointments completed within 14 days of the desired date N/Av 94% 95%
Percentage of new specialty care appointments completed within 14 days of the desired date N/Av 84% 85%
Percentage of established specialty care appointments completed within 14 days of the desired date N/Av 95% 96%
Non-institutional long-term care average daily census 95,092 113,254 120,118

VA /DoD sharing._VA's strategy is to improve collaboration and exchange with the Department of Defense (DoD).


2011 actual 2012 est. 2013 est.

Amount billed for health care services provided to DoD beneficiaries at VA facilities ($ in millions) $184 $187 $191

Revenue cycle improvement._VHA is seeking to improve its performance in the area of medical care collections. The revenue cycle improvement plan includes initiatives that will improve efficiency and accuracy.


2011 actual 2012 est. 2013 est.

Gross days of revenue outstanding third-party collections 48 46 40

Object Classification (in millions of dollars)


Identification code 36–0160–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
Personnel compensation:
11.1 Full-time permanent 13,565 13,943 14,405
11.3 Other than full-time permanent 274 283 292
11.5 Other personnel compensation 1,570 1,613 1,666



11.9 Total personnel compensation 15,409 15,839 16,363
12.1 Civilian personnel benefits 4,478 4,456 4,681
13.0 Benefits for former personnel 15 15 15
21.0 Employee travel 85 81 78
21.0 Beneficiary travel 824 919 966
21.0 Interagency motor pool payments 18 18 19
21.0 All other 2 2 2
22.0 Transportation of things 12 14 16
23.2 Rental payments to others 3
23.3 Communications, utilities, and miscellaneous charges 277 308 343
24.0 Printing and reproduction 18 22 28
25.2 Other contractual services 4,210 5,320 4,813
25.6 Outpatient dental fees 102 109 116
25.6 Medical and nursing fees 1,526 1,788 2,094
25.6 Community nursing homes 573 610 667
25.6 Contract hospitalization 1,451 1,669 1,920
25.6 Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) 848 899 973
26.0 Medical supplies and materials 7,818 8,352 9,027
31.0 Equipment 1,209 1,384 1,486
32.0 Land and structures 6
41.0 Medical grants, subsidies, and contributions 822 733 765
41.0 Medical grants to private organizations 204 290 498



99.0 Direct obligations 39,910 42,828 44,870
99.0 Reimbursable obligations 294 281 287



99.9 Total new obligations 40,204 43,109 45,157

Employment Summary


Identification code 36–0160–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 183,268 186,073 190,505
2001 Reimbursable civilian full-time equivalent employment 1,796 1,782 1,872

Medical Support and Compliance

For necessary expenses in the administration of the medical, hospital, nursing home, domiciliary, construction, supply, and research activities, as authorized by law; administrative expenses in support of capital policy activities; and administrative and legal expenses of the Department for collecting and recovering amounts owed the Department as authorized under chapter 17 of title 38, United States Code, and the Federal Medical Care Recovery Act (42 U.S.C. 2651 et seq.); [$5,746,000,000] $6,033,000,000, plus reimbursements, shall become available on October 1, [2012] 2013, and shall remain available until September 30, [2013] 2014: Provided, That, of the amount available under this heading, $100,000,000 shall remain available until September 30, 2015. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0152–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Acute hospital care 1,087 1,184 1,220
0002 Rehabilitative care 104 84 88
0003 Psychiatric care 694 894 985
0004 Nursing home care 472 486 503
0005 Subacute care 9 11 12
0006 Outpatient care 2,756 2,723 2,713
0007 CHAMPVA 78 82 89



0091 Total operating expenses 5,200 5,464 5,610
0101 Acute hospital care 17 27 33
0102 Rehabilitative care 1 2 2
0103 Psychiatric care 14 22 26
0104 Nursing home care 9 15 18
0105 Outpatient care 39 64 77



0191 Total capital investment 80 130 156



0293 Total direct program 5,280 5,594 5,766



0799 Total direct obligations 5,280 5,594 5,766
0801 Reimbursable program activity 71 77 78



0900 Total new obligations 5,3511 5,671 5,844

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 132 104 21
Budget authority:
Appropriations, discretionary:
1100 Appropriation 100 100 100
1120 Transferred to other accounts [36–0169] –10 –24



1160 Appropriation, discretionary (total) 90 76 100
Advance appropriations, discretionary:
1170 Advance appropriation 5,207 5,535 5,746
1173 Advance appropriations permanently reduced –44 –100 –100



1180 Advanced appropriation, discretionary (total) 5,163 5,435 5,646
Spending authority from offsetting collections, discretionary:
1700 Collected 68 77 78
1701 Change in uncollected payments, Federal sources 3



1750 Spending auth from offsetting collections, disc (total) 71 77 78
1900 Budget authority (total) 5,324 5,588 5,824
1930 Total budgetary resources available 5,456 5,692 5,845
Memorandum (non-add) entries:
1940 Unobligated balance expiring –1
1941 Unexpired unobligated balance, end of year 104 21 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 1,042 896 1,087
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –1 –3 –3



3020 Obligated balance, start of year (net) 1,041 893 1,084
3030 Obligations incurred, unexpired accounts 5,351 5,671 5,844
3031 Obligations incurred, expired accounts –83
3040 Outlays (gross) –5,414 –5,480 –5,715
3050 Change in uncollected pymts, Fed sources, unexpired –3
3051 Change in uncollected pymts, Fed sources, expired 1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 896 1,087 1,216
3091 Uncollected pymts, Fed sources, end of year –3 –3 –3



3100 Obligated balance, end of year (net) 893 1,084 1,213

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 5,324 5,588 5,824
Outlays, gross:
4010 Outlays from new discretionary authority 4,571 4,962 5,172
4011 Outlays from discretionary balances 843 518 543



4020 Outlays, gross (total) 5,414 5,480 5,715
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources –67 –77 –78
4033 Non-Federal sources –3



4040 Offsets against gross budget authority and outlays (total) –70 –77 –78
Additional offsets against gross budget authority only:
4050 Change in uncollected pymts, Fed sources, unexpired –3
4052 Offsetting collections credited to expired accounts 2



4060 Additional offsets against budget authority only (total) –1



4070 Budget authority, net (discretionary) 5,253 5,511 5,746
4080 Outlays, net (discretionary) 5,344 5,403 5,637
4180 Budget authority, net (total) 5,253 5,511 5,746
4190 Outlays, net (total) 5,344 5,403 5,637

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

For 2014, the Budget is requesting $6.0 billion in advance appropriations for Medical Support and Compliance. This request for advance appropriations fulfills the Administration's commitment to provide reliable and timely resources to support the delivery of accessible and high-quality medical services for veterans.

For Medical Support and Compliance, the Budget reflects the following appropriation funding: the 2012 enacted advance appropriations of $5.5 billion; the 2013 appropriations request of $5.7 billion; and the 2014 advance appropriations request of $6.0 billion. The Medical Support and Compliance appropriation finances the expenses of management, security, and administration of the VA health care system through the operation of VA medical centers, other facilities, Veterans Integrated Service Network offices and facility director offices, chief of staff operations, quality of care oversight, legal services, billing and coding activities, procurement, financial management, and human resource management.

Object Classification (in millions of dollars)


Identification code 36–0152–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
Personnel compensation:
11.1 Full-time permanent 2,554 2,612 2,632
11.3 Other than full-time permanent 49 49 50
11.5 Other personnel compensation 297 304 306



11.9 Total personnel compensation 2,900 2,965 2,988
12.1 Civilian personnel benefits 879 838 893
13.0 Benefits for former personnel 5 5 5
21.0 Employee travel 86 81 79
21.0 All other 4 4 4
22.0 Transportation of things 12 13 15
23.3 Communications, utilities, and miscellaneous charges 107 114 123
24.0 Printing and reproduction 64 25 32
25.2 Other contractual services 1,035 1,290 1,322
25.6 Medical and nursing fees 5 5 6
26.0 Medical supplies and materials 99 124 143
26.0 Provisions 3
31.0 Equipment 80 130 156
32.0 Land and structures 1



99.0 Direct obligations 5,280 5,594 5,766
99.0 Reimbursable obligations 71 77 78



99.9 Total new obligations 5,351 5,671 5,844

Employment Summary


Identification code 36–0152–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 44,430 44,470 44,945
2001 Reimbursable civilian full-time equivalent employment 828 831 869

DOD-VA Health Care Sharing Incentive Fund

Program and Financing (in millions of dollars)


Identification code 36–0165–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 DOD-VA health care sharing incentive fund 69 79 70

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 126 189 140
1021 Recoveries of prior year unpaid obligations 2



1050 Unobligated balance (total) 128 189 140
Budget authority:
Appropriations, discretionary:
1121 Transferred from VA account [36–0160] 65 15 15
1121 Transferred from DOD account [97–0130] 65 15 15



1160 Appropriation, discretionary (total) 130 30 30
1930 Total budgetary resources available 258 219 170
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 189 140 100

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 64 42 28
3030 Obligations incurred, unexpired accounts 69 79 70
3040 Outlays (gross) –89 –93 –80
3080 Recoveries of prior year unpaid obligations, unexpired –2
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 42 28 18



3100 Obligated balance, end of year (net) 42 28 18

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 130 30 30
Outlays, gross:
4011 Outlays from discretionary balances 89 93 80
4180 Budget authority, net (total) 130 30 30
4190 Outlays, net (total) 89 93 80

The purpose of the Department of Defense-Veterans Affairs Health Care Sharing Incentive Fund, often referred to as the Joint Incentive Fund (JIF), is to enable the Departments to carry out a program to identify and provide incentives to implement creative sharing initiatives at the facility, intra-regional and nationwide levels. The JIF promotes collaboration and new approaches to problem solving to enable the Departments to improve the coordination of health care services. The Departments have established the fund and developed processes and criteria to solicit and select projects. Section 721 of the 2003 National Defense Authorization Act, Public Law 107–314, established the fund and requires VA and Department of Defense to establish a joint incentive program. In 2013, each Secretary shall contribute a minimum of $15 million to the fund after the appropriation is enacted.

Object Classification (in millions of dollars)


Identification code 36–0165–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
11.1 Personnel compensation: Full-time permanent 11 11 11
12.1 Civilian personnel benefits 2 2 2
25.1 Advisory and assistance services 38 42 40
26.0 Supplies and materials 6 8 6
31.0 Equipment 11 15 10
32.0 Land and structures 1 1 1



99.9 Total new obligations 69 79 70

Employment Summary


Identification code 36–0165–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 132 151 140

Medical Facilities

For necessary expenses for the maintenance and operation of hospitals, nursing homes, domiciliary facilities, and other necessary facilities of the Veterans Health Administration; for administrative expenses in support of planning, design, project management, real property acquisition and disposition, construction, and renovation of any facility under the jurisdiction or for the use of the Department; for oversight, engineering, and architectural activities not charged to project costs; for repairing, altering, improving, or providing facilities in the several hospitals and homes under the jurisdiction of the Department, not otherwise provided for, either by contract or by the hire of temporary employees and purchase of materials; for leases of facilities; and for laundry services, [$5,441,000,000] $4,872,000,000, plus reimbursements, shall become available on October 1, [2012] 2013, and shall remain available until September 30, [2013] 2014: Provided, That, of the amount made available under this heading, $250,000,000 shall remain available until September 30, 2015. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0162–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Acute hospital care 762 874 877
0002 Rehabilitative care 76 53 59
0003 Psychiatric care 502 802 833
0004 Nursing home care 348 479 512
0005 Subacute care 8 9 9
0007 Outpatient care 1,863 1,958 2,152
0008 CHAMPVA 5 5 6



0091 Total operating expenses 3,564 4,180 4,448
0101 Acute hospital care 503 267 245
0102 Rehabilitative care 50 26 24
0103 Psychiatric care 325 173 159
0104 Nursing home care 231 123 113
0105 Subacute care 4 2 2
0107 Outpatient care 1,091 581 530



0191 Total capital investment 2,204 1,172 1,073



0293 Total direct program 5,768 5,352 5,521



0799 Total direct obligations 5,768 5,352 5,521
0801 Reimbursable program 34 42 43



0900 Total new obligations 5,8021 5,394 5,564

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 109 44 81
Budget authority:
Appropriations, discretionary:
1100 Appropriation 100 250 250
1120 Appropriations transferred to other accts [36–0169] –10 –37



1160 Appropriation, discretionary (total) 90 213 250
Advance appropriations, discretionary:
1170 Advance appropriation 5,640 5,426 5,441
1173 Advance appropriations permanently reduced –26 –250 –250



1180 Advanced appropriation, discretionary (total) 5,614 5,176 5,191
Spending authority from offsetting collections, discretionary:
1700 Collected 33 42 43



1750 Spending auth from offsetting collections, disc (total) 33 42 43
1900 Budget authority (total) 5,737 5,431 5,484
1930 Total budgetary resources available 5,846 5,475 5,565
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 44 81 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 3,030 3,319 3,239
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –1



3020 Obligated balance, start of year (net) 3,029 3,319 3,239
3030 Obligations incurred, unexpired accounts 5,802 5,394 5,564
3031 Obligations incurred, expired accounts 1
3040 Outlays (gross) –5,514 –5,474 –5,325
3051 Change in uncollected pymts, Fed sources, expired 1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 3,319 3,239 3,478



3100 Obligated balance, end of year (net) 3,319 3,239 3,478

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 5,737 5,431 5,484
Outlays, gross:
4010 Outlays from new discretionary authority 3,401 4,075 4,116
4011 Outlays from discretionary balances 2,113 1,399 1,209



4020 Outlays, gross (total) 5,514 5,474 5,325
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources –22 –16 –16
4033 Non-Federal sources –13 –26 –27



4040 Offsets against gross budget authority and outlays (total) –35 –42 –43
Additional offsets against gross budget authority only:
4052 Offsetting collections credited to expired accounts 2



4070 Budget authority, net (discretionary) 5,704 5,389 5,441
4080 Outlays, net (discretionary) 5,479 5,432 5,282
4180 Budget authority, net (total) 5,704 5,389 5,441
4190 Outlays, net (total) 5,479 5,432 5,282

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

For 2014, the Budget is requesting advance appropriations of $4.9 billion for 2014 for Medical Facilities. This request for advance appropriations fulfills the Administration's commitment to provide reliable and timely resources to support the delivery of accessible and high-quality medical services for veterans.

For Medical Facilities, the Budget reflects the following appropriation funding: the 2012 enacted advance appropriations of $5.4 billion; the 2013 appropriations request of $5.4 billion; and the 2014 advance appropriations request of $4.9 billion. Medical Facilities provides for the operations and maintenance of the capital infrastructure required to provide health care to the Nation's veterans. These costs include utilities, engineering, capital planning, leases, laundry services, grounds maintenance, trash removal, housekeeping, fire protection, pest management, facility repair, and property disposition and acquisition. In 2014, VA is proposing to move Biomedical Engineering Services from Medical Facilities to Medical Services in order to properly align funding with the nature of the services provided.

Object Classification (in millions of dollars)


Identification code 36–0162–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
Personnel compensation:
11.1 Full-time permanent 1,064 1,095 1,131
11.3 Other than full-time permanent 21 21 22
11.5 Other personnel compensation 124 128 132



11.9 Total personnel compensation 1,209 1,244 1,285
12.1 Civilian personnel benefits 383 368 389
13.0 Benefits for former personnel 2 2 2
21.0 Employee travel 9 9 8
21.0 All other 24 25 26
22.0 Transportation of things 16 16 17
23.1 Rental payments to GSA 21 23 26
23.2 Rental payments to others 339 492 534
23.3 Communications, utilities, and miscellaneous charges 543 558 573
25.2 Other contractual services 714 1,111 1,216
26.0 Medical supplies and materials 304 333 372
31.0 Equipment 122 162 175
32.0 Medical land and structures 2,082 1,009 898



99.0 Direct obligations 5,768 5,352 5,521
99.0 Reimbursable obligations 34 42 43



99.9 Total new obligations 5,802 5,394 5,564

Employment Summary


Identification code 36–0162–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 23,430 23,583 24,231
2001 Reimbursable civilian full-time equivalent employment 478 478 490

Medical and Prosthetic Research

For necessary expenses in carrying out programs of medical and prosthetic research and development as authorized by chapter 73 of title 38, United States Code, [$581,000,000] $582,674,000, plus reimbursements, shall remain available until September 30, [2013] 2014. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0161–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Bio-medical laboratory science research 252 268 262
0002 Rehabilitation research 105 106 104
0003 Health services research 93 97 94
0004 Clinical science research 113 116 112



0091 Total operating expenses 563 587 572
0101 Bio-medical laboratory science research 17 14 14
0102 Rehabilitation research 28 3 3
0103 Health services research 1 1 1
0104 Clinical science research 4 3 3



0191 Total capital investment 50 21 21



0192 Total direct program 613 608 593



0799 Total direct obligations 613 608 593
0801 Reimbursable program 36 35 35



0900 Total new obligations 6491 643 628

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 106 72 45
Budget authority:
Appropriations, discretionary:
1100 Appropriation 581 581 583
1130 Appropriations permanently reduced –1



1160 Appropriation, discretionary (total) 580 581 583
Spending authority from offsetting collections, discretionary:
1700 Collected 36 35 35



1750 Spending auth from offsetting collections, disc (total) 36 35 35
1900 Budget authority (total) 616 616 618
1930 Total budgetary resources available 722 688 663
Memorandum (non-add) entries:
1940 Unobligated balance expiring –1
1941 Unexpired unobligated balance, end of year 72 45 35

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 204 253 289
3030 Obligations incurred, unexpired accounts 649 643 628
3031 Obligations incurred, expired accounts –5
3040 Outlays (gross) –595 –607 –608
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 253 289 309



3100 Obligated balance, end of year (net) 253 289 309

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 616 616 618
Outlays, gross:
4010 Outlays from new discretionary authority 350 439 440
4011 Outlays from discretionary balances 245 168 168



4020 Outlays, gross (total) 595 607 608
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources –23 –35 –35
4033 Non-Federal sources –13



4040 Offsets against gross budget authority and outlays (total) –36 –35 –35



4070 Budget authority, net (discretionary) 580 581 583
4080 Outlays, net (discretionary) 559 572 573
4180 Budget authority, net (total) 580 581 583
4190 Outlays, net (total) 559 572 573

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

For 2013, the total budgetary resources of $1.9 billion is comprised of $583 million in direct appropriations, $583 million in medical care support, and $710 million in Federal and private sector grants. The research program will support 3,526 full time equivalents through direct appropriation and a total of over 15,000 research staff through all funding sources.

This account is an intramural program that has had significant success developing research leading to clinical achievements that improve the health and quality of life for veterans and the Nation. VA is at the forefront of producing new transformational approaches and technologies for preventing, diagnosing, and treating disease. VA research transforms medicine by uniquely engaging veterans both as clinical patients and as research volunteers. Through technology, advancements, and information, research helps transform VA's health care into a leading example of medicine in the 21st Century.

High priority research programs in 2013 will provide Operation Enduring Freedom (OEF), Operation Iraqi Freedom (OIF) and Operation New Dawn (OND) veterans and rural veterans with critical needs research activity. VA will focus on key areas affecting OEF/OIF/OND veterans including Homelessness/Access to Care and Rural Health, Personalized Medicine and Military Exposure-Related Illnesses. Homelessness is a top priority for VA, and research will focus on interventions, risk factors and health care usage patterns in an effort to eliminate homelessness. With regard to Access to Care, one of the critical missions of VA research is to identify system-wide gaps in care to veterans. This includes assessing specific barriers to care for vulnerable populations, including rural veterans. VA research has demonstrated an explicit focus on access as a component of validating the quality of care in all VA health care services, organizational structures, and mechanisms for delivering care. Current studies address new telemedicine and telehealth initiatives, community based outpatient clinics (CBOCs), collaborative care models, access for OEF/OIF/OND veterans, and access to specialized care such as VA rehabilitation services. The development, evaluation, and implementation of new telemedicine technologies represent an important focus of research to improve access to VA health care, particularly for rural veterans. Emphasis will also be placed on personalized medicine where using information on a patients' genetic make-up can lead to a more tailored, precise and effective level of care. The Million Veteran Program, with the goal of collecting one million genetic samples, will continue to be a significant undertaking in 2013 as VA investigates whether genetic influences in disease and/or responses to medications can be used to further advance personalized care with the ultimate goal to develop an evidence base for treatments that are optimized to each veteran's genetic makeup.

VA core research priorities in 2013 will include Mental Health, Gulf War Veterans' Illnesses and Exposures, Prosthetics, Traumatic Brain Injury , Spinal Cord Injury, Women Veterans, and a special initiative on Researching Pain.

VA scientists who partner with colleagues from other Federal agencies, academic medical centers, nonprofit organizations, and commercial entities nationwide further expand the reach and scope of VA research. Through VA's academic affiliations as well as collaborations with other Federal agencies, it is fully integrated with the larger biomedical research community.

Veterans' health issues are addressed comprehensively in the following four program divisions and the medical care research support required for these programs:

Biomedical laboratory._Supports preclinical research to understand life processes from a molecular, genomic, and physiological level in regard to diseases affecting veterans.

Clinical science._Administers investigations (i.e., human subject research such as drug, surgical, single subject, pilot and multi-center cooperative studies as well as feasibility trials) aimed at instituting new, more effective clinical care.

Health services._Supports studies to identify and promote effective and efficient strategies to improve the delivery of health care to veterans.

Rehabilitation._Develops novel approaches to restoring veterans with traumatic amputation, central nervous system injuries, loss of sight and/or hearing, or other physical and cognitive impairments to full and productive lives.
VA's Medical and Prosthetic Research programs are included in the Federal Research and Development (R&D) budget.

Performance Measure


2011 Actual 2012 est. 2013 est.

Progress toward researching, developing, and implementing innovations in clinical practice that ensure improved access to health care for Veterans, especially in rural areas 42% 63% 84%
Percent of milestones completed leading to the use of genomic testing to inform the course of care of patients with mental illness 35% 45% 55%
Percent of milestones completed towards development of one new objective method to diagnose mild Traumatic Brain Injury 22% 55% 66%

SUMMARY OF PROGRAM RESOURCES [in millions of dollars]


2011 actual 2012 est. 2013 est.

Medical and prosthetic research appropriation 580 581 583
Federal resources (includes VA Medical Care support funding) 1,017 1,096 1,098

Other non-federal resources 173 195 195




Total program resources 1,770 1,872 1,876




Object Classification (in millions of dollars)


Identification code 36–0161–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
Personnel compensation:
11.1 Full-time permanent 171 173 177
11.3 Other than full-time permanent 7 7 8
11.5 Other personnel compensation 46 46 47



11.9 Total personnel compensation 224 226 232
12.1 Civilian personnel benefits 78 80 83
21.0 Employee travel 4 6 4
23.1 Rental payments to GSA 3 3 3
23.3 Communications, utilities, and miscellaneous charges 1 1 1
24.0 Printing and reproduction 1 1 1
25.2 Other services from non-Federal sources 202 191 172
26.0 Supplies and materials 40 40 39
31.0 Equipment 60 60 58



99.0 Direct obligations 613 608 593
99.0 Reimbursable obligations 36 35 35



99.9 Total new obligations 649 643 628

Employment Summary


Identification code 36–0161–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 3,045 3,045 3,045
2001 Reimbursable civilian full-time equivalent employment 481 481 481

Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund

Program and Financing (in millions of dollars)


Identification code 36–0169–0–1–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Direct program activity 102 253
0801 Reimbursable program activity 1 6



0900 Total new obligations 1031 259

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 1 1
Budget authority:
Appropriations, discretionary:
1121 Appropriations transferred from other accts [36–0162] 10 37
1121 Appropriations transferred from other accts [36–0152] 10 24
1121 Appropriations transferred from other accts [36–0160] 49 173
1121 Appropriations transferred from other accts [36–0167] 2 7
1121 Appropriations transferred from other accts [97–0130] 28
1121 Appropriations transferred from other accts [36–5287] 4 18



1160 Appropriation, discretionary (total) 103 259
Spending authority from offsetting collections, discretionary:
1700 Collected 1



1750 Spending auth from offsetting collections, disc (total) 1
1900 Budget authority (total) 104 259
1930 Total budgetary resources available 104 260 1
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1 1 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 38 55
3030 Obligations incurred, unexpired accounts 103 259
3040 Outlays (gross) –65 –242 –24
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 38 55 31



3100 Obligated balance, end of year (net) 38 55 31

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 104 259
Outlays, gross:
4010 Outlays from new discretionary authority 65 233
4011 Outlays from discretionary balances 9 24



4020 Outlays, gross (total) 65 242 24
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources –1
4180 Budget authority, net (total) 103 259
4190 Outlays, net (total) 64 242 24

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

The Department of Veterans Affairs and the Department of Defense will each contribute funding to the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund, established by section 1704 of Public Law 111–84, the National Defense Authorization Act for Fiscal Year 2010. The 2013 Budget includes anticipated transfers of $247.4 million from VA and $139.5 million from DoD, totaling $386.9 million. VA will make transfers to the Fund from Medical Services, Medical Support and Compliance, Medical Facilities, and Information Technology. These funds will support the Captain James A. Lovell Federal Health Care Center (FHCC), which opened on December 20, 2010. The Fund will support 2,685 full time equivalents in 2013, comprised of 1,961 civilian and 724 uniformed military employees.

Object Classification (in millions of dollars)


Identification code 36–0169–0–1–703 2011 actual 2012 est. 2013 est.

Direct obligations:
11.1 Personnel compensation: Full-time permanent 50 144
12.1 Civilian personnel benefits 1 10
25.1 Advisory and assistance services 29 35
26.0 Supplies and materials 10 20
31.0 Equipment 3 15
32.0 Land and structures 9 29



99.0 Direct obligations 102 253
99.0 Reimbursable obligations 1 6



99.9 Total new obligations 103 259

Employment Summary


Identification code 36–0169–0–1–703 2011 actual 2012 est. 2013 est.

1001 Direct civilian full-time equivalent employment 479 1,961

Medical Care Collections Fund

Program and Financing (in millions of dollars)


Identification code 36–5287–0–2–703 2011 actual 2012 est. 2013 est.

Budgetary Resources:
Budget authority:
Appropriations, discretionary:
1101 Appropriation (special or trust fund) 2,775 2,767 2,966
1120 Transferred to other accounts [36–0160] –2,771 –2,749 –2,966
1120 Appropriations transferred to other accts [36–0169] –4 –18

VA has the authority to collect co-payments which are deposited into the Medical Care Collections Fund (MCCF) receipt account. As allowed by the provisions of the appropriations Act, these receipts are transferred to the Medical Services appropriation and the Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund (Joint Demonstration Fund) where they remain available until expended for the purposes of this account. In 2011, $2.8 billion was collected in the MCCF receipt account and transferred to the Medical Services appropriation and Joint Demonstration Fund to provide health care to our veterans. These collections consist of co-payments from veterans for inpatient, outpatient, and nursing home care, and prescribed medications; third-party insurance payments from veterans for nonservice-connected conditions; and collections from enhanced-use leases, the Compensated Work Therapy Program, Compensation and Living Expensed Program, and the Parking Program.

Canteen Service Revolving Fund

Program and Financing (in millions of dollars)


Identification code 36–4014–0–3–705 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0801 Reimbursable operating expenses 223 245 249
0802 Reimbursable direct operations 148 163 166
0810 Reimbursable capital investment: Sales program: Purchase of equipment and leasehold 16 18 19



0900 Total new obligations 3871 426 434

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 2 1 3
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 385 428 434
1801 Change in uncollected payments, Federal sources 1



1850 Spending auth from offsetting collections, mand (total) 386 428 434
1930 Total budgetary resources available 388 429 437
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1 3 3

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 11 5
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –2 –3 –3



3020 Obligated balance, start of year (net) 9 2 –3
3030 Obligations incurred, unexpired accounts 387 426 434
3040 Outlays (gross) –393 –431 –434
3050 Change in uncollected pymts, Fed sources, unexpired –1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 5
3091 Uncollected pymts, Fed sources, end of year –3 –3 –3



3100 Obligated balance, end of year (net) 2 –3 –3

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 386 428 434
Outlays, gross:
4100 Outlays from new mandatory authority 380 423 429
4101 Outlays from mandatory balances 13 8 5



4110 Outlays, gross (total) 393 431 434
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4120 Federal sources –2
4123 Non-Federal sources –385 –426 –434



4130 Offsets against gross budget authority and outlays (total) –385 –428 –434
Additional offsets against gross budget authority only:
4140 Change in uncollected pymts, Fed sources, unexpired –1
4170 Outlays, net (mandatory) 8 3
4190 Outlays, net (total) 8 3

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

The Veterans Canteen Service was established to furnish, at reasonable prices, meals, merchandise, and services necessary for the comfort and well-being of veterans in VA medical facilities.

Financing._ Operations will be financed from current revenues.

Object Classification (in millions of dollars)


Identification code 36–4014–0–3–705 2011 actual 2012 est. 2013 est.

Reimbursable obligations:
Personnel compensation:
11.1 Full-time permanent 133 133 133
11.3 Other than full-time permanent 1 1 1



11.9 Total personnel compensation 134 134 134
12.1 Civilian personnel benefits 1 3 4
21.0 Travel and transportation of persons 3 4 5
25.2 Other services from non-Federal sources 6 6 6
26.0 Supplies and materials 243 268 272
31.0 Equipment 11 13



99.9 Total new obligations 387 426 434

Employment Summary


Identification code 36–4014–0–3–705 2011 actual 2012 est. 2013 est.

2001 Reimbursable civilian full-time equivalent employment 3,274 3,400 3,450

Medical Center Research Organizations

Program and Financing (in millions of dollars)


Identification code 36–4026–0–3–703 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0801 Operating expenses 251 269 279

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 10 10
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 261 269 279



1850 Spending auth from offsetting collections, mand (total) 261 269 279
1930 Total budgetary resources available 261 279 289
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 10 10 10

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 10
3030 Obligations incurred, unexpired accounts 251 269 279
3040 Outlays (gross) –261 –269 –279

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 261 269 279
Outlays, gross:
4100 Outlays from new mandatory authority 251 269 279
4101 Outlays from mandatory balances 10



4110 Outlays, gross (total) 261 269 279
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4123 Non-Federal sources –261 –269 –279

These nonprofit corporations provide a flexible funding mechanism for the conduct of approved research at Department of Veterans Affairs medical centers. These organizations will derive funds to operate various research activities from Federal and non-Federal sources. No appropriation is required to support these activities.

Object Classification (in millions of dollars)


Identification code 36–4026–0–3–703 2011 actual 2012 est. 2013 est.

Reimbursable obligations:
21.0 Travel and transportation of persons 8 8 8
25.2 Other services from non-Federal sources 210 228 238
26.0 Supplies and materials 24 24 24
31.0 Equipment 9 9 9



99.9 Total new obligations 251 269 279

Trust Funds

General Post Fund, National Homes

Special and Trust Fund Receipts (in millions of dollars)


Identification code 36–8180–0–7–705 2011 actual 2012 est. 2013 est.

0100 Balance, start of year
Receipts:
0220 General Post Fund, National Homes, Deposits 27 27 28
0240 General Post Fund, National Homes, Interest on Investments 1 2 2



0299 Total receipts and collections 28 29 30



0400 Total: Balances and collections 28 29 30
Appropriations:
0500 General Post Fund, National Homes –28 –29 –30



0799 Balance, end of year

Program and Financing (in millions of dollars)


Identification code 36–8180–0–7–705 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Religious, recreational, and entertainment activities 25 25 26
0003 Therapeutic residence maintenance 1 1



0900 Total new obligations 251 26 27

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 77 80 83
Budget authority:
Appropriations, mandatory:
1201 Appropriation (special or trust fund) 28 29 30



1260 Appropriations, mandatory (total) 28 29 30
1930 Total budgetary resources available 105 109 113
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 80 83 86

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 5 4 3
3030 Obligations incurred, unexpired accounts 25 26 27
3040 Outlays (gross) –26 –27 –28
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 4 3 2



3100 Obligated balance, end of year (net) 4 3 2

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 28 29 30
Outlays, gross:
4100 Outlays from new mandatory authority 25 27
4101 Outlays from mandatory balances 26 2 1



4110 Outlays, gross (total) 26 27 28
4180 Budget authority, net (total) 28 29 30
4190 Outlays, net (total) 26 27 28

Memorandum (non-add) entries:
5000 Total investments, SOY: Federal securities: Par value 79 81 87
5001 Total investments, EOY: Federal securities: Par value 81 87 89

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

This fund consists of gifts, bequests, and proceeds from the sale of property left in the care of the facilities by former beneficiaries; patients' fund balances; and proceeds from the sale of effects of beneficiaries who die leaving no heirs or without having otherwise disposed of their estate. Such funds are used to promote the comfort and welfare of veterans at hospitals, nursing homes, and domiciliaries where no general appropriation is available. Public Law 102–54 authorizes compensation work therapy and therapeutic transitional housing and loan programs to be funded from the General Post Fund. (38 U.S.C. chs. 83 and 85.)

Object Classification (in millions of dollars)


Identification code 36–8180–0–7–705 2011 actual 2012 est. 2013 est.

Direct obligations:
25.2 Other services from non-Federal sources 10 10 10
26.0 Supplies and materials 12 13 13
31.0 Equipment 3 3 3
32.0 Land and structures 1



99.9 Total new obligations 25 26 27

Benefits Programs

Federal Funds

Compensation and Pensions

(including transfer of funds)

For the payment of compensation benefits to or on behalf of veterans and a pilot program for disability examinations as authorized by section 107 and chapters 11, 13, 18, 51, 53, 55, and 61 of title 38, United States Code; pension benefits to or on behalf of veterans as authorized by chapters 15, 51, 53, 55, and 61 of title 38, United States Code; and burial benefits, the Reinstated Entitlement Program for Survivors, emergency and other officers' retirement pay, adjusted-service credits and certificates, payment of premiums due on commercial life insurance policies guaranteed under the provisions of title IV of the Servicemembers Civil Relief Act (50 U.S.C. App. 541 et seq.) and for other benefits as authorized by sections 107, 1312, 1977, and 2106, and chapters 23, 51, 53, 55, and 61 of title 38, United States Code, [$51,237,567,000] $61,741,232,000, to remain available until expended: Provided, That not to exceed [$32,187,000] $9,204,000 of the amount appropriated under this heading shall be reimbursed to "General operating expenses, Veterans Benefits Administration'', "Medical support and compliance'', and "Information technology systems'' for necessary expenses in implementing the provisions of chapters 51, 53, and 55 of title 38, United States Code, the funding source for which is specifically provided as the "Compensation and pensions'' appropriation: Provided further, That such sums as may be earned on an actual qualifying patient basis, shall be reimbursed to "Medical care collections fund'' to augment the funding of individual medical facilities for nursing home care provided to pensioners as authorized. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0102–0–1–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0101 Veterans 43,862 50,209 53,085
0102 Survivors 5,307 5,802 6,114



0191 Compensation sub-total 49,169 56,011 59,199



0200 Other compensation expenses 49,169 56,011 59,199
0201 Chapter 18 20 21 21
0202 Clothing allowance 84 95 102
0203 Misc assistance (EAJ, SAFD) 13 13 13
0204 Medical exam pilot program 169 236 248
0205 OBRA payment to VBA and IT 1 2 2
0206 Reinstated entitlement program for survivors 6 6 6



0291 Total other compensation expenses 293 373 392



0293 Total compensation 49,462 56,384 59,591
0302 Veterans 3,033 3,100 3,235
0303 Survivors 1,261 1,454 1,686



0391 Pensions sub total 4,294 4,554 4,921
0401 Reimbursements to GOE, ITand VHA 24 27 10



0492 Total pensions 4,318 4,581 4,931
0502 Burial allowance 19 34 35
0503 Burial plots 7 23 25
0504 Service-connected deaths 33 34 35
0505 Burial flags 19 18 19
0506 Headstones and markers 59 70 75
0507 Graveliners/Pre-placed crypts 15 21 32



0591 Total burial program 152 200 221



0900 Total new obligations (object class 42.0) 53,9321 61,165 64,743

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 14,056 12,929 3,002
1010 Unobligated balance transfer to other accts [36–0137] –939



1050 Unobligated balance (total) 13,117 12,929 3,002
Budget authority:
Appropriations, mandatory:
1200 Appropriation 53,978 51,238 61,741



1260 Appropriations, mandatory (total) 53,978 51,238 61,741
1930 Total budgetary resources available 67,095 64,167 64,743
Memorandum (non-add) entries:
1940 Unobligated balance expiring –234
1941 Unexpired unobligated balance, end of year 12,929 3,002

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 3,923 277 5,249
3030 Obligations incurred, unexpired accounts 53,932 61,165 64,743
3040 Outlays (gross) –57,578 –56,193 –64,521
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 277 5,249 5,471



3100 Obligated balance, end of year (net) 277 5,249 5,471

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 53,978 51,238 61,741
Outlays, gross:
4100 Outlays from new mandatory authority 39,831 42,984 56,268
4101 Outlays from mandatory balances 17,747 13,209 8,253



4110 Outlays, gross (total) 57,578 56,193 64,521
4180 Budget authority, net (total) 53,978 51,238 61,741
4190 Outlays, net (total) 57,578 56,193 64,521

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

WORKLOAD


2011 actual 2012 est 2013 est.

Compensation:
Rating-Related Actions 1,202,149 1,337,992 1,489,185
Non Rating Actions 356,367 396,637 441,457
Pension:
Rating-Related Actions 108,942 121,252 134,954
Non Rating Actions 317,329 353,187 393,097

This appropriation provides for the payment of compensation, pension, and burial benefits to veterans and survivors.

Compensation is paid to veterans for disabilities incurred in or aggravated during active military service. Dependency and Indemnity Compensation is paid to survivors of servicepersons or veterans whose death occurred while on active duty or as a result of service-connected disabilities. Compensation and vocational rehabilitation is provided to the children of Vietnam veterans who were born with certain birth defects. The Secretary may pay a clothing allowance to each veteran who uses a prescribed medication for a service-connected skin condition or wears a prosthetic or orthopedic appliance (including a wheelchair) which, in the judgment of the Secretary, tends to damage or tear the clothing of such veteran.

Miscellaneous benefits provided for are:

(a) payments for claims made pursuant to the provision of the World War Adjusted Compensation Act of 1924, as amended;

(b) a special allowance (38 U.S.C. 1312) to dependents of certain Veterans who died after December 31, 1956, but who were not fully and currently insured under the Social Security Act; and

(c) payments authorized by the Equal Access to Justice Act.

The appropriation also provides for a program to allow VA to perform income matches for certain compensation recipients.

In accordance with Public Law 97–377, the Reinstated Entitlement Program for Survivors (REPS) program restores Social Security benefits to certain surviving spouses or children of veterans who died of service-connected causes.

Legislation is proposed to provide a cost-of-living adjustment comparable to the annual social security increase to recipients of disability compensation, dependency and indemnity compensation, and clothing allowances. The increase, effective with payments made on January 1, 2013, is expected to be 1.9 percent.

AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS


2011 actual 2012 est 2013 est.

Veterans:
Cases 3,284,356 3,452,172 3,626,468

Average payment per case, per year $13,355 $14,544 $14,638




Total obligations (in millions) $43,862 $50,209 $53,086



Survivors:
Cases 341,776 348,494 356,796

Average payment per case, per year $15,529 $16,649 $17,136




Total obligations (in millions) $5,307 $5,802 $6,114



Chapter 18:
Children 1,173 1,162 1,151

Average payment per case, per year $17,177 $17,796 $18,134




Total obligations (in millions) $20 $21 $21



Clothing allowance:
Number of veterans 117,388 123,379 129,607

Average payment per case, per year $716 $771 $784




Total obligations (in millions) $84 $95 $102



Other compensation caseload:
Special allowance dependents 50 50 50

Equal Access to Justice payments 2,375 2,375 2,375



REPS:
Cases 228 233 241

Average benefit $24,228 $24,014 $24,859




Obligations (in millions) $6 $6 $6




Pension benefits may be paid to veterans or their survivors. A veteran's entitlement is based on active duty service of a specific length (normally 90 days or more) during a designated war period, disabilities considered permanent and total, and countable income below established levels. There is no disability requirement for survivor cases or veterans age 65 or older. Income support is provided at established benefit levels.

An automatic annual cost-of-living increase comparable to the annual social security increase is provided for those pensioners in the improved program and to parents receiving dependency and indemnity compensation. The increase, effective with payments made on January 1, 2013, is expected to be 1.9 percent.

AVERAGE NUMBER OF PENSION CASES AND PAYMENTS


2011 actual 2012 est. 2013 est.

Veterans:
Cases 313,674 313,926 314,154

Average payment per case, per year $9,669 $9,874 $10,299




Total obligations (in millions) $3,033 $3,100 $3,236



Survivors:
Cases 203,046 203,878 205,797

Average payment per case, per year $6,209 $7,132 $8,191




Total obligations (in millions) $1,261 $1,454 $1,686




Burial benefits provide for: (a) the payment of an allowance of $700 (plus transportation charges where death occurs under VA care) to reimburse, in part, the burial and funeral expense of an eligible deceased veteran; (b) the payment of $700 for a plot allowance where an eligible veteran is not buried in a national cemetery or other cemetery under the jurisdiction of the United States; (c) the payment of a burial allowance up to $2,000 when a veteran dies as a result of a service-connected disability; (d) furnishing a flag to drape the casket of each deceased veteran entitled thereto; (e) furnishing a headstone or marker for the grave of a veteran and, in certain cases, eligible dependents; and (f) authority to provide outer burial receptacles in the National Cemetery Administration.

NUMBER OF BURIAL BENEFITS


2011 actual 2012 est. 2013 est.

Burial allowance 40,956 45,727 47,605
Burial plot 22,530 33,212 34,254
Service-connected deaths 17,560 16,842 17,680
Burial flags 489,428 500,002 500,002
Headstones and markers 372,659 353,533 350,027
Graveliners 26,403 28,211 27,814
Preplaced crypts 56,045 34,583 63,500

Compensation and Pensions

(Legislative proposal, subject to PAYGO)

Legislation will be proposed to extend the Rounding-Down of the Compensation and Dependency and Indemnification Compensation (DIC) Cost of Living Adjustment, expand eligibility for Veterans Medallion for Headstones, and allow for Government Furnished Headstones.

Readjustment Benefits

For the payment of readjustment and rehabilitation benefits to or on behalf of veterans as authorized by chapters 21, 30, 31, 33, 34, 35, 36, 39, 41, 51, 53, 55, and 61 of title 38, United States Code, [$12,108,488,000] and for the payment of benefits under the Veterans Retraining Assistance Program, $12,607,476,000, to remain available until expended: Provided, That expenses for rehabilitation program services and assistance which the Secretary is authorized to provide under subsection (a) of section 3104 of title 38, United States Code, other than under paragraphs (1), (2), (5), and (11) of that subsection, shall be charged to this account. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0137–0–1–702 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0101 Sons and daughters 394 381 416
0102 Spouses 69 63 65



0191 Total education and training 463 444 481
0201 Vocational rehabilitation training 472 516 564
0202 Subsistence allowance 287 433 492
0203 Automobiles and adaptive equipment 78 98 100
0204 Housing grants 58 58 63
0205 Housing Technology Grants 1 1



0291 Total special assistance to disabled veterans 895 1,106 1,220
0301 Work study 32 37 39
0302 Payments to States 18 19 19
0303 All-volunteer assistance: Basic benefits and all other 8,961 10,405 10,815
0304 Veterans Retraining Assistance Program 12 199 1,101
0305 Tuition Assistance 2 11 10
0306 Licensing and Certification 6 1 1
0307 Reporting fees 12 13
0308 Reimbursement to GOE 3 1



0391 Total All-volunteer assistance and other 9,031 10,687 11,999



0393 Total Readjustment benefits direct program 10,389 12,237 13,700



0799 Total direct obligations 10,389 12,237 13,700
0801 Veterans and servicepersons basic benefits 2 3 2
0802 Veterans and servicepersons supplementary benefits 80 104 123
0803 Chapter 1606 reservists benefits 108 108 110
0804 Chapter 1606 reservists supplementary benefits 95 96 97
0805 Chapter 1607 reservists benefits 95 101 96



0809 Reimbursable program activities, subtotal 380 412 428



0899 Total reimbursable obligations 380 412 428



0900 Total new obligations 10,7691 12,649 14,128

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 276 1,222 1,093
1011 Unobligated balance transfer from other accts [36–0102] 939



1050 Unobligated balance (total) 1,215 1,222 1,093
Budget authority:
Appropriations, mandatory:
1200 Appropriation 10,396 12,108 12,607



1260 Appropriations, mandatory (total) 10,396 12,108 12,607
Spending authority from offsetting collections, mandatory:
1800 Collected 380 412 428



1850 Spending auth from offsetting collections, mand (total) 380 412 428
1900 Budget authority (total) 10,776 12,520 13,035
1930 Total budgetary resources available 11,991 13,742 14,128
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1,222 1,093

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 417 101 223
3030 Obligations incurred, unexpired accounts 10,769 12,649 14,128
3040 Outlays (gross) –11,085 –12,527 –14,128
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 101 223 223



3100 Obligated balance, end of year (net) 101 223 223

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 10,776 12,520 13,035
Outlays, gross:
4100 Outlays from new mandatory authority 10,393 11,205 12,813
4101 Outlays from mandatory balances 692 1,322 1,315



4110 Outlays, gross (total) 11,085 12,527 14,128
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4120 Federal sources –380 –412 –428
4180 Budget authority, net (total) 10,396 12,108 12,607
4190 Outlays, net (total) 10,705 12,115 13,700

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Summary of Budget Authority and Outlays (in millions of dollars)


2011 actual 2012 est. 2013 est.

Enacted/requested:
Budget Authority 10,396 12,108 12,607
Outlays 10,705 12,115 13,700
Legislative proposal, subject to PAYGO:
Budget Authority 16
Outlays 16
Total:
Budget Authority 10,396 12,108 12,623
Outlays 10,705 12,115 13,716

WORKLOAD - Vocational Rehabilitation and Employment


2011 actual 2012 est. 2013 est.

Evaluation and planning 70,612 71,318 72,031
Extended Evaluation 8,272 8,355 8,438
Rehabilitation services 74,933 75,682 76,439
Employment services status 18,662 18,849 19,037
Vocational/educational counseling 17,100 17,271 17,444

WORKLOAD - Education


2011 actual 2012 est. 2013 est.

Original claims 565,316 576,000 603,000
Adjustments/supplemental claims 2,799,660 3,264,000 3,417,000

This appropriation finances educational assistance allowances for certain service persons, veterans, and for eligible dependents of those: (a) veterans who died from service-connected causes or have a total and permanent rated service-connected disability; and (b) servicepersons who were captured or missing in action. In addition, certain disabled veterans are provided with vocational rehabilitation, specially adapted housing grants, and automobile grants with the associated approved adaptive equipment. Voluntary contributions by eligible servicepersons and matching contributions provided by the Department of Defense are included in the Post-Vietnam Era Veterans Education Account.

The Post 9–11 GI Bill (Chapter 33)._Public Law 110–252, greatly expanded education benefits beginning on August 1, 2009. Based on length of active duty service and training rate, trainees may be entitled to benefits including: tuition and fees, housing allowance, books and supplies stipend, kickers, and Yellow Ribbon matching payments. Certain active duty members of the Armed Forces may transfer benefits to a spouse or children.

All volunteer force educational assistance (Montgomery GI Bill)._Public Law 98–525, enacted October 19, 1984, established two new educational programs: an assistance program for veterans who enter active duty during the period beginning July 1, 1985; and an assistance program for certain members of the Selected Reserve. Public Law 108–375 established a program to provide educational assistance to members of the reserve components called or ordered to active service in response to a war or national emergency declared by the President or the Congress, in recognition of the sacrifices that those members make in answering the call to duty. The Readjustment Benefit appropriation pays the basic benefit allowance for veterans, except for certain Post-Vietnam Era Veterans Education participants who transferred to the Montgomery GI Bill program. Supplementary educational assistance, Post-Vietnam Era Veterans Education converters, reservists, and the National Call to Service Program are financed by payments from Department of Defense.

Survivors and Dependants Educational Assistance (Chapter 35)._Benefits are provided to children and spouses of veterans who died of a service-connected disability or whose service-connected disability is rated permanent and total. In addition, dependents of servicepersons missing in action or interned by a hostile foreign government for more than 90 days are also eligible. The following table provides a comparison of trainees and costs for the Dependents Educational Assistance program.
The Veterans Retraining Assistance Program, established under Public Law 112–56, is a program that, beginning on July 1, 2012, will provide up to 12 months of retraining assistance to veterans at least 35 years of age but not more than 60 years of age, who are unemployed, received an honorable discharge and have no eligibility remaining for other education benefits. Veterans participating in this program would receive monthly payments equal to the three-year payment rate under the Montgomery GI Bill (MGIB) chapter 30 program.
The following table shows a caseload and cost comparison for these beneficiaries under existing legislation.

CASELOAD AND AVERAGE COST DATA


2011 actual 2012 est. 2013 est.

Chapter 33:
Number of trainees 555,329 594,490 606,318

Average cost per trainee $13,871 $15,736 $16,314




Total cost (in millions) $7,703 $9,355 $9,891



Chapter 30:
Number of trainees 185,220 157,478 133,897

Average cost per trainee $7,483 $7,195 $7,717




Total cost (in millions) $1,386 $1,133 $1,033



Chapter 1606:
Number of trainees 65,216 64,337 62,506

Average cost per trainee $3,089 $3,151 $3,274




Total cost (in millions) $201 $203 $205



Chapter 1607:
Number of trainees 27,302 28,238 26,033

Average cost per trainee $3,491 $3,561 $3,700




Total cost (in millions) $95 $101 $96




Chapter 35 Sons and Daughters:
Number of trainees 75,753 79,714 83,889

Average cost per trainee (in dollars) $5,205 $4,777 $4,962




Total cost (in millions) $394 $381 $416



Chapter 35 Wives and Widow(ers):
Chapter 35 Wives and Widow(ers): 14,904 14,904 14,904

Average cost per trainee (in dollars) $4,599 $4,222 $4,387




Total cost (in millions) $69 $63 $65



Veterans Retraining Assistance Program
Number of trainees 45,000 99,000

Average cost per trainee $4,419 $11,118




Total cost (in millions) $199 $1,101




Vocational Rehabilitation and Employment (Chapter 31)._Servicemembers and veterans with service-connected disabilities receive the assistance necessary to help them prepare for, obtain, and maintain suitable employment. Comprehensive assessments may include interest and aptitude testing as well as specialized assessments such as functional capacity examinations. During the training phase of the program, eligible servicemembers and veterans are provided assistance for necessary training such as tuition, fees, books and supplies at colleges, technical schools and other training programs. A veteran enrolled in training receives a monthly subsistence allowance. Eligible veterans may also receive specialized or adaptive equipment to help them overcome a disability or enable them to compete with non-disabled individuals. At the completion of training, veterans are provided with employment and placement services, including supplies and equipment needed to enter employment, adaptive equipment and workplace accommodations, incentives to employers to reimburse them for hiring and training veterans with disabilities, and two final months of subsistence allowance.

CASELOAD AND AVERAGE COST DATA


2011 actual 2012 est. 2013 est.

Chapter 31:
Rehabiliation, Evaluation, Planning and Service cases 20,235 21,247 22,309
Number of trainees 83,332 87,499 91,874

Average cost per trainee (in dollars) $9,114 $10,848 $11,495




Total cost (in millions) $759 $949 $1,056




Specially Adapted Housing Grants._Specially adapted housing grants, up to a maximum of $63,780, are provided to certain severely disabled veterans. In 2011, the maximum grant amount was $63,870 and is projected to increase, based on a cost of construction index, to $65,757 in 2013. Veterans who suffer service-connected blindness or who have lost the use of both upper extremities can receive up to $12,756 in 2011. The maximum grant amount is projected to increase to $13,151 in 2013.

Specially Adapted Housing Assistive Technology Grants._Under the Veterans Benefits Act of 2010, (Public Law 111–275), VA may provide grants of up to $200,000 per fiscal year to individuals or entities for the development of specially adapted housing assistive technologies and limits to $1 million the aggregate amount of such grants VA may award in any fiscal year.

Automobile Grants and Adaptive Equipment._Certain disabled veterans are provided with automobile grants with the associated approved adaptive equipment. An allowance is provided to certain service-disabled veterans and servicepersons toward the purchase price of an automobile. The maximum allowance was $11,000 in 2011, but will increase to $18,900 in 2012, under The Veterans Benefits Act of 2010, (Public Law 111–275) and will continue to increase based on the CPI-U. Adaptive equipment and the maintenance and replacement of such equipment is also provided.

CASELOAD AND AVERAGE COST DATA


2011 actual 2012 est. 2013 est.

Housing grants:
Number of housing grants 1,354 1,354 1,407

Average cost per grant $43,131 $43,131 $44,859




Total cost (in millions) $58 $58 $63



Housing Technology Grants
Number of housing technology grants 5 5

Average cost per grant $200,000 $200,000




Total cost (in millions) $1 $1



Automobiles or other conveyances:
Number of conveyances 1,577 1,892 1,892

Average benefit $10,918 $18,900 $19,202




Obligations (in millions) $17 $36 $36



Adaptive equipment (including maintenance, repair, and installation for automobiles):
Number of items 7,786 7,786 7,786

Average benefit $7,782 $7,997 $8,218




Obligations (in millions) $61 $62 $64




Tuition Assistance._Public Law 106–398, enacted October 30, 2000, allows the military services to pay up to 100 percent of tuition and expenses charged by a school for service members. If a service department pays less than 100 percent, a service member eligible for the Montgomery GI Bill Active-duty (MGIB) or the Post 9–11 GI Bill (Chapter 33) can elect to receive VA benefits for all or a portion of the remaining expenses. Public Law 108–454 established a program that provides availability of education benefits for payment for national admissions exams and national exams for credit at institutions of higher education.

The National Exams._The benefit allows VA to reimburse for the fee charged for national tests for admission to institutions of higher learning and national tests providing an opportunity for course credit at institutions of higher learning.

Licensing and Certification Test Payments._Under Public Law 106–419, veterans and other eligible persons may receive up to $2,000 to pay fees required for civilian occupational licensing and certification examinations needed to enter, maintain, or advance in employment in a vocation or profession, effective March 1, 2001.

National Call to Service._The 2003 National Defense Authorization Act directs the Department of Defense to offer an active duty enlistment option of 15 months plus training time to facilitate interest in National Service. Program participants will be given the opportunity to select one of the following incentives: a $5,000 enlistment bonus, repayment of student loans up to $18,000, or one of two education allowances.

Work-Study._Certain veterans, reservists, and dependents pursuing a program of rehabilitation, education or training, who are enrolled as full-time students, can work up to 250 hours per semester, receiving the Federal ($7.25 as of July 24, 2009) or state minimum wage rate, whichever is higher.

Payments to States._State approving agencies are reimbursed for the costs of inspecting, approving, and supervising programs of education and training offered by educational institutions and training establishments in which veterans, dependents, and reservists are enrolled or are about to enter.

Reporting Fees._Reporting fees are paid to education and training institutions to help defray the costs of certifying education enrollment for veterans enrolled in training during a calendar year.

Object Classification (in millions of dollars)


Identification code 36–0137–0–1–702 2011 actual 2012 est. 2013 est.

41.0 Direct obligations: Grants, subsidies, and contributions 10,389 12,237 13,700
99.0 Reimbursable obligations 380 412 428



99.9 Total new obligations 10,769 12,649 14,128

Readjustment Benefits

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)


Identification code 36–0137–4–1–702 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0201 Vocational rehabilitation training 1
0204 Housing grants 15



0393 Total Readjustment benefits direct program 16



0900 Total new obligations (object class 41.0) 16

Budgetary Resources:
Budget authority:
Appropriations, mandatory:
1200 Appropriation 16



1260 Appropriations, mandatory (total) 16
1900 Budget authority (total) 16
1930 Total budgetary resources available 16

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 16
3040 Outlays (gross) –16

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 16
Outlays, gross:
4100 Outlays from new mandatory authority 16
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4180 Budget authority, net (total) 16
4190 Outlays, net (total) 16

Legislation will be proposed to: extend Rounding-Down of Education COLA Through 2018; make permanent the Pilot Expansion of Certain Work-Study Activities; increase Cap on Contract Counseling; exclude temporary Residence Adaptations (TRA) Grants from the Three Specially Adapted Housing (SAH) Grants Limit; replace the SAH Program's Grant Limit; amend the Visual Impairment Standard For SAH Grants; restore Eligibility for Housing Adaptation; and provide SAH Grants to Veterans Living with Family.

Veterans Insurance and Indemnities

For military and naval insurance, national service life insurance, servicemen's indemnities, service-disabled veterans insurance, and veterans mortgage life insurance as authorized by chapters 19 and 21, title 38, United States Code, [$100,252,000] $104,600,000, to remain available until expended. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–0120–0–1–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0010 VMLI death claims 14 20 20
0012 Payment to service-disabled veterans insurance 64 81 85



0100 Total direct expenses 78 101 105



0799 Total direct obligations 78 101 105
0801 Reimbursable program activity - VMLI Death Claims 2 5 5



0809 Reimbursable program activities, subtotal 2 5 5



0900 Total new obligations 801 106 110

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 1 2 1
Budget authority:
Appropriations, mandatory:
1200 Appropriation 78 100 105



1260 Appropriations, mandatory (total) 78 100 105
Spending authority from offsetting collections, mandatory:
1800 Collected 3 5 5



1850 Spending auth from offsetting collections, mand (total) 3 5 5
1900 Budget authority (total) 81 105 110
1930 Total budgetary resources available 82 107 111
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 2 1 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 5 1
3030 Obligations incurred, unexpired accounts 80 106 110
3040 Outlays (gross) –85 –105 –110
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 1 1



3100 Obligated balance, end of year (net) 1 1

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 81 105 110
Outlays, gross:
4100 Outlays from new mandatory authority 78 105 110
4101 Outlays from mandatory balances 7



4110 Outlays, gross (total) 85 105 110
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4123 Non-Federal sources –3 –5 –5
4180 Budget authority, net (total) 78 100 105
4190 Outlays, net (total) 82 100 105

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

WORKLOAD


2011 actual 2012 est. 2013 est.

Policy service actions 938,398 951,920 928,043
Collections 1,026,210 941,600 863,800
Disability claims 45,922 51,980 42,650
Insurance awards 253,555 247,070 245,070

Note._Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit schedules previously shown for this account have been discontinued.
The insurance business line administers six life insurance programs, including two trust funds, two public enterprise funds, a trust revolving fund, and Veterans' Mortgage Life Insurance (VMLI), and supervises four additional programs for the benefit of servicepersons, veterans, and their beneficiaries through contracts with a commercial company. All programs are operated on a commercial basis, to the extent possible, consistent with all applicable statutes. The insurance appropriation is the supplemental funding mechanism for the following Government life insurance activities: National Service Life Insurance (NSLI); Service-Disabled Veterans Insurance Fund (S-DVI); and Veterans' Mortgage Life Insurance.

National Service Life Insurance._Payments are made to the NSLI fund for certain World War II veterans for: (a) extra hazards of service; (b) gratuitous insurance granted to certain persons unable to apply for National Service Life Insurance; and (c) death claims on policies under the waiver of a premium while the insured was on active duty.

Payment to Service-Disabled Veterans Insurance Fund._Payments are made to the S-DVI fund to supplement the premiums and other receipts of the fund in amounts necessary to pay claims on insurance policies issued to veterans with service-connected disabilities.

Veterans' Mortgage Life Insurance._Payments are made to mortgage holders under this program, which provides mortgage protection life insurance to veterans who have received a grant for specially adapted housing due to severe disabilities. The trend in the number and amount of insurance policies in force appears in the following table.

POLICIES AND INSURANCE IN FORCE


VMLI Policies 2011 actual 2012 est. 2013 est.

Number of Policies 2,395 2,400 2,390
Amount of Insurance (dollars in millions) $179 $315 $330

Object Classification (in millions of dollars)


Identification code 36–0120–0–1–701 2011 actual 2012 est. 2013 est.

42.0 Direct obligations: Insurance claims and indemnities 78 101 105
99.0 Reimbursable obligations 2 5 5



99.9 Total new obligations 80 106 110

Filipino Veterans Equity Compensation Fund

Program and Financing (in millions of dollars)


Identification code 36–1121–0–1–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Filipino veterans equity compensation fund 10 10 10



0900 Total new obligations (object class 42.0) 101 10 10

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 69 59 49
1930 Total budgetary resources available 69 59 49
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 59 49 39

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 10 10 10
3040 Outlays (gross) –10 –10 –10

Budget authority and outlays, net:
Discretionary:
Outlays, gross:
4011 Outlays from discretionary balances 10 10 10
4190 Outlays, net (total) 10 10 10

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

This fund was established under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 (PL 110–329), to make payments to eligible persons who served in the Philippines during World War II. Payments were subsequently authorized by Congress in the American Recovery and Reinvestment Act of 2009 (PL 111–5). Original funding of $198,000,000 was supplemented by a transfer of $67,000,000 authorized by PL 111–212 that remains available until expended. Payments to citizens of the United States are $15,000. Payments to non-U.S. citizens are $9,000.

Service-disabled Veterans Insurance Fund

Program and Financing (in millions of dollars)


Identification code 36–4012–0–3–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0801 Capital investment 19 21 23
0802 Death claims 85 125 127
0803 All other 6 7 7
0804 Payments to GOE and IT 8 9 9



0900 Total new obligations 1181 162 166

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 9 20 10
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 129 152 162



1850 Spending auth from offsetting collections, mand (total) 129 152 162
1900 Budget authority (total) 129 152 162
1930 Total budgetary resources available 138 172 172
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 20 10 6

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 8 13 13
3030 Obligations incurred, unexpired accounts 118 162 166
3040 Outlays (gross) –113 –162 –166
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 13 13 13



3100 Obligated balance, end of year (net) 13 13 13

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 129 152 162
Outlays, gross:
4100 Outlays from new mandatory authority 104 152 162
4101 Outlays from mandatory balances 9 10 4



4110 Outlays, gross (total) 113 162 166
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4120 Federal sources –64 –81 –85
4123 Non-Federal sources –65 –71 –77



4130 Offsets against gross budget authority and outlays (total) –129 –152 –162
4170 Outlays, net (mandatory) –16 10 4
4190 Outlays, net (total) –16 10 4

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

The Insurance Act of 1951 established the Service-Disabled Veterans Insurance (S-DVI) program for veterans with service-connected disabilities. S-DVI is open to veterans who separated from the service on or after April 25, 1951. This fund finances the payment of claims on existing life insurance policies and remains open for new issues at standard rates to veterans having service-connected disabilities.

Operating costs

Death claims._Represents payments to designated beneficiaries.

All other._Represents payments to policyholders who surrender their policies for their cash value and hold endowment policies which have matured.

Capital investment._A policyholder may borrow up to 94 percent of the value of his or her policy.

Payments to General Operating Expenses (GOE), Veterans Benefits Administration._Represents the administrative costs of claims processing and account maintenance.
The trend in the number and amount of policies in force is indicated in the following table.

POLICIES AND INSURANCE IN FORCE


2011 actual 2012 est. 2013 est.

Number of policies (EOY) 227,887 245,480 259,453
Insurance in force (dollars in millions) (EOY) $2,340 $2,667 $2,812

Financing._Operations are financed from premiums and other receipts. Additional funds are received by transfer from the Veterans Insurance and Indemnities appropriation, instead of direct appropriations to this fund.

Operating results and financial condition._Since premium and other receipts are insufficient to cover operations, the fund continues to project liabilities in excess of assets. The deficit is expected to reach an estimated $1,230 million by September 30, 2013.

Object Classification (in millions of dollars)


Identification code 36–4012–0–3–701 2011 actual 2012 est. 2013 est.

Reimbursable obligations:
33.0 Investments and loans 19 21 22
42.0 Insurance claims and indemnities 99 141 144



99.9 Total new obligations 118 162 166

Veterans Reopened Insurance Fund

Program and Financing (in millions of dollars)


Identification code 36–4010–0–3–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0801 Death claims 34 32 31
0802 Dividends 6 5 4
0803 All other 5 6 5
0804 Capital investment: policy loans 2 1 1



0900 Total new obligations 471 44 41

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 262 237 212
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 23 19 17
1801 Change in uncollected payments, Federal sources –1



1850 Spending auth from offsetting collections, mand (total) 22 19 17
1930 Total budgetary resources available 284 256 229
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 237 212 188

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 51 48 45
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –4 –3 –3



3020 Obligated balance, start of year (net) 47 45 42
3030 Obligations incurred, unexpired accounts 47 44 41
3040 Outlays (gross) –50 –47 –45
3050 Change in uncollected pymts, Fed sources, unexpired 1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 48 45 41
3091 Uncollected pymts, Fed sources, end of year –3 –3 –3



3100 Obligated balance, end of year (net) 45 42 38

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 22 19 17
Outlays, gross:
4100 Outlays from new mandatory authority 22 19 17
4101 Outlays from mandatory balances 28 28 28



4110 Outlays, gross (total) 50 47 45
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4121 Interest on Federal securities –16 –13 –12
4123 Non-Federal sources –7 –6 –5



4130 Offsets against gross budget authority and outlays (total) –23 –19 –17
Additional offsets against gross budget authority only:
4140 Change in uncollected pymts, Fed sources, unexpired 1
4170 Outlays, net (mandatory) 27 28 28
4190 Outlays, net (total) 27 28 28

Memorandum (non-add) entries:
5000 Total investments, SOY: Federal securities: Par value 308 281 253
5001 Total investments, EOY: Federal securities: Par value 281 253 225

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Note._Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit schedules previously shown for this account have been discontinued.
This fund pays claims and administrative costs on participating life insurance policies issued during the period May 1, 1965, through May 2, 1966, under three life insurance programs: (1) service-disabled standard insurance; (2) service-disabled rated insurance; and (3) nonservice-disabled insurance availing disabled World War II and Korean conflict veterans an opportunity to acquire life insurance coverage who were no longer eligible for other government insurance.
Budget program:

Death claims._Represents payments to designated beneficiaries.

Dividends._Policyholders participate in the distribution of annual dividends.

All other._This represents resources for the administrative costs of processing claims and maintaining the accounts, and to those policyholders who: (a) surrender their policies for cash value; (b) hold endowment policies which have matured; and (c) have purchased total disability income coverage and subsequently become disabled.

Policy loans made._A policyholder may borrow up to 94 percent of the cash value of his policy at an interest rate adjusted to reflect private sector borrowing costs.

The following table reflects the decrease in the number of policies and the amount of insurance in force:

POLICIES AND INSURANCE IN FORCE


2011 actual 2012 est. 2013 est.

Number of policies 27,605 24,055 20,725
Insurance in force (dollars in millions) $282 $250 $220

Financing._Operations are financed from premiums collected from policyholders and interest on investments. Excess earnings of the fund are distributed to the policyholders in the form of an annual dividend.

Object Classification (in millions of dollars)


Identification code 36–4010–0–3–701 2011 actual 2012 est. 2013 est.

Reimbursable obligations:
33.0 Investments and loans 2 1 1
42.0 Insurance claims and indemnities 37 36 34
43.0 Interest and dividends 8 7 6



99.9 Total new obligations 47 44 41

Servicemembers' Group Life Insurance Fund

Program and Financing (in millions of dollars)


Identification code 36–4009–0–3–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0801 Premium payments 805 814 812
0802 Payments to carrier 265 266
0803 Payment to GOE 3 3 3



0900 Total new obligations (object class 41.0) 1,0731 1,083 815

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 1 1 1
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 1,073 1,083 815



1850 Spending auth from offsetting collections, mand (total) 1,073 1,083 815
1930 Total budgetary resources available 1,074 1,084 816
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1 1 1

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 1,073 1,083 815
3040 Outlays (gross) –1,073 –1,083 –815

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 1,073 1,083 815
Outlays, gross:
4100 Outlays from new mandatory authority 1,073 1,083 815
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4123 Non-Federal sources –1,073 –1,083 –815

Memorandum (non-add) entries:
5000 Total investments, SOY: Federal securities: Par value 1 1 1
5001 Total investments, EOY: Federal securities: Par value 1 1 1

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

This fund finances the payment of group life insurance premiums to private insurance companies under the Servicemembers' Group Life Insurance (SGLI) Act of 1965, as amended. SGLI is a program for Servicemembers on active duty, ready reservists, members of the National Guard, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, cadets and midshipmen of the four service academies, and members of the Reserve Officer Training Corps. SGLI coverage is available in $50,000 increments up to the maximum of $400,000. Veterans' Group Life Insurance (VGLI) is a program of post-separation insurance which allows Servicemembers to convert their SGLI coverage to renewable term insurance. Family Servicemembers' Group Life Insurance (FSGLI) is a program extended to the spouses and dependent children of members insured under the SGLI program. FSGLI provides up to a maximum of $100,000 of insurance coverage for spouses, not to exceed the amount of SGLI the insured member has in force, and $10,000 of free coverage for dependent children. Spousal coverage is issued in increments of $10,000.

The Servicemembers' Group Life Insurance Traumatic Injury Protection Program (TSGLI) became effective December 1, 2005. TSGLI provides for payment between $25,000 and $100,000 (depending on the type of injury) to any member of the uniformed services covered by SGLI who sustains a traumatic injury that results in certain serious losses.

Object Classification (in millions of dollars)


Identification code 36–4009–0–3–701 2011 actual 2012 est. 2013 est.

Reimbursable obligations:
41.0 Grants, subsidies, and contributions 1,073 1,083 815
99.0 Reimbursable obligations 1,073 1,083 815

Veterans Housing Benefit Program Fund

For the cost of direct and guaranteed loans, such sums as may be necessary to carry out the program, as authorized by subchapters I through III of chapter 37 of title 38, United States Code: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That during fiscal year [2012] 2013, within the resources available, not to exceed $500,000 in gross obligations for direct loans are authorized for specially adapted housing loans.

In addition, for administrative expenses to carry out the direct and guaranteed loan programs, [$154,698,000] $157,814,000. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–1119–0–1–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
Credit program obligations:
0701 Direct loan subsidy 2
0702 Loan guarantee subsidy 4 147 185
0705 Reestimates of direct loan subsidy 53 402
0706 Interest on reestimates of direct loan subsidy 35 327
0707 Reestimates of loan guarantee subsidy 1,091 689
0708 Interest on reestimates of loan guarantee subsidy 205 91
0709 Administrative expenses 141 155 158



0900 Total new obligations 1,5291 1,813 343

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 43 59 43
1020 Adjustment of unobligated bal brought forward, Oct 1 –16



1050 Unobligated balance (total) 43 43 43
Budget authority:
Appropriations, discretionary:
1100 Appropriation 165 155 158



1160 Appropriation, discretionary (total) 165 155 158
Appropriations, mandatory:
1200 Appropriation 1,387 1,658 185



1260 Appropriations, mandatory (total) 1,387 1,658 185
1900 Budget authority (total) 1,552 1,813 343
1930 Total budgetary resources available 1,595 1,856 386
Memorandum (non-add) entries:
1940 Unobligated balance expiring –7
1941 Unexpired unobligated balance, end of year 59 43 43

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 1,529 1,813 343
3040 Outlays (gross) –1,529 –1,813 –343

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 165 155 158
Outlays, gross:
4010 Outlays from new discretionary authority 142 155 158
Mandatory:
4090 Budget authority, gross 1,387 1,658 185
Outlays, gross:
4100 Outlays from new mandatory authority 1,387 1,658 185
4180 Budget authority, net (total) 1,552 1,813 343
4190 Outlays, net (total) 1,529 1,813 343

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Summary of Budget Authority and Outlays (in millions of dollars)


2011 actual 2012 est. 2013 est.

Enacted/requested:
Budget Authority 1,552 1,813 343
Outlays 1,529 1,813 343
Legislative proposal, subject to PAYGO:
Budget Authority 1
Outlays 1
Total:
Budget Authority 1,552 1,813 344
Outlays 1,529 1,813 344

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)


Identification code 36–1119–0–1–704 2011 actual 2012 est. 2013 est.

Direct loan levels supportable by subsidy budget authority:
115001 Acquired Direct Loans 10 51 63
115004 Vendee Direct Loans 253 1,090 1,263



115999 Total direct loan levels 263 1,141 1,326
Direct loan subsidy (in percent):
132001 Acquired Direct Loans –0.13 4.09 –2.29
132004 Vendee Direct Loans –2.42 –2.12 –2.55



132999 Weighted average subsidy rate –2.33 –1.84 –2.54
Direct loan subsidy budget authority:
133001 Acquired Direct Loans 2 –1
133004 Vendee Direct Loans –6 –23 –32



133999 Total subsidy budget authority –6 –21 –33
Direct loan subsidy outlays:
134001 Acquired Direct Loans 2 –1
134004 Vendee Direct Loans –6 –23 –32



134999 Total subsidy outlays –6 –21 –33
Direct loan upward reestimates:
135001 Acquired Direct Loans 7
135004 Vendee Direct Loans 5 13
135005 Acquired and Vendee Loan Reestimates 76 717



135999 Total upward reestimate budget authority 88 730
Direct loan downward reestimates:
137001 Acquired Direct Loans –2 –12
137004 Vendee Direct Loans –8 –2
137005 Acquired and Vendee Loan Reestimates –2



137999 Total downward reestimate budget authority –12 –14

Guaranteed loan levels supportable by subsidy budget authority:
215001 Housing Guaranteed Loans 71,931 63,941 49,640
215002 Guaranteed Loan Sale Securities—Vendee 186 1,119 1,181



215999 Total loan guarantee levels 72,117 65,060 50,821
Guaranteed loan subsidy (in percent):
232001 Housing Guaranteed Loans –0.31 –0.13 –0.10
232002 Guaranteed Loan Sale Securities—Vendee 2.00 10.75 15.65



232999 Weighted average subsidy rate –0.30 0.06 0.27
Guaranteed loan subsidy budget authority:
233001 Housing Guaranteed Loans –223 –83 –50
233002 Guaranteed Loan Sale Securities—Vendee 4 120 185



233999 Total subsidy budget authority –219 37 135
Guaranteed loan subsidy outlays:
234001 Housing Guaranteed Loans –223 –83 –50
234002 Guaranteed Loan Sale Securities—Vendee 4 120 185



234999 Total subsidy outlays –219 37 135
Guaranteed loan upward reestimates:
235001 Housing Guaranteed Loans 1,264 707
235002 Guaranteed Loan Sale Securities—Vendee 33 74



235999 Total upward reestimate budget authority 1,297 781
Guaranteed loan downward reestimates:
237001 Housing Guaranteed Loans –17 –78
237002 Guaranteed Loan Sale Securities—Vendee –1



237999 Total downward reestimate subsidy budget authority –18 –78

Administrative expense data:
3510 Budget authority 165 155 158
3590 Outlays from new authority 142 155 158

As required by the Federal Credit Reform Act of 1990, this account records, for these programs, the subsidy costs associated with the direct loans obligated and loan guarantees committed in 1992 and beyond, (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any year), as well as for the administrative expenses of these programs. The subsidy amounts are estimated on a net present value basis.

Veterans Affairs (VA) housing program account._The housing program helps eligible veterans, active duty personnel, surviving spouses, and members of the Reserves and National Guard purchase, retain, and adapt homes in recognition of their service to the Nation. When a borrower purchases a home, the program operates by substituting the Federal Government's guaranty for a down payment that might otherwise be required. Under 38 U.S.C. 3703, the guaranty amount for a borrower with full entitlement is as follows:
(a) 50 percent for loans of $45,000 or less;
(b) $22,500 for loans greater than $45,000, but no more than $56,250;
(c) The lesser of $36,000 or 40 percent of the loan amount for loans greater than $56,250, but not more than $144,000;
(d) 25 percent of the loan amount for loans of $144,001 to $417,000; or
(e) For certain loans in excess of $417,000, the guaranty will be the lesser of: 25 percent of the county loan limit, or 25 percent of the loan.
This appropriation provides for the corporate leadership and operational support to VA's housing business line.
The housing program facilitates the extension of private capital, on more liberal terms than generally available to nonveterans, to assist veterans and servicepersons in obtaining housing credit, and assist veterans in retaining their homes during periods of temporary economic difficulty through intensive supplemental mortgage loan servicing.

Guaranteed transitional housing loans for homeless veterans._Established as a pilot project by the Veterans Benefits Improvement Act of 1998, Public Law 105–368, this program will not execute any new loans. The existing loan will continue to be serviced within the financing account and no further funds will be required from the program account.

WORKLOAD [In thousands]


2011 actual 2012 est. 2013 est.

Construction and valuation 331 282 212
Loan processing 756 645 483
Loan service and claims 113 100 100

Object Classification (in millions of dollars)


Identification code 36–1119–0–1–704 2011 actual 2012 est. 2013 est.

Direct obligations:
25.2 Other services from non-Federal sources 141 155 158
41.0 Grants, subsidies, and contributions 1,388 1,658 185



99.9 Total new obligations 1,529 1,813 343

Veterans Housing Benefit Program Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)


Identification code 36–1119–4–1–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Direct program activity 1



0900 Total new obligations (object class 41.0) 1

Budgetary Resources:
Budget authority:
Appropriations, mandatory:
1200 Appropriation 1



1260 Appropriations, mandatory (total) 1
1930 Total budgetary resources available 1

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 1
3040 Outlays (gross) –1

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 1
Outlays, gross:
4100 Outlays from new mandatory authority 1
4180 Budget authority, net (total) 1
4190 Outlays, net (total) 1

Legislation will be proposed to permit a servicemember's dependent children to satisfy the occupancy requirement in 38 U.S.C. 3704 in those cases where the servicemember is unable to personally occupy the property due to his or her military service.

Housing Direct Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 36–4127–0–3–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0003 Property sales expense 1 2
0004 Property management/other expense 4 7 5



0091 Subtotal 5 7 7
Credit program obligations:
0710 Direct loan obligations 263 1,140 1,325
0713 Payment of interest to Treasury 130 94 99
0740 Negative subsidy obligations 6 23 34
0742 Downward reestimate paid to receipt account 8 13
0743 Interest on downward reestimates 4 1



0791 Direct program activities, subtotal 411 1,271 1,458



0900 Total new obligations 4161 1,278 1,465

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 153 170
1021 Recoveries of prior year unpaid obligations 12
1023 Unobligated balances applied to repay debt –115 –170



1050 Unobligated balance (total) 50
Financing authority:
Borrowing authority, mandatory:
1400 Borrowing authority 336 1,278 1,466
1421 Borrowing authority applied to repay debt –208



1440 Borrowing authority, mandatory (total) 128 1,278 1,466
Spending authority from offsetting collections, mandatory:
1800 Collected 408 1,930 1,279
1825 Spending authority from offsetting collections applied to repay debt –1,930 –1,279



1850 Spending auth from offsetting collections, mand (total) 408
1900 Financing authority(total) 536 1,278 1,466
1930 Total budgetary resources available 586 1,278 1,466
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 170 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 15 7 20
3030 Obligations incurred, unexpired accounts 416 1,278 1,465
3040 Financing disbursements (gross) –412 –1,265 –1,462
3080 Recoveries of prior year unpaid obligations, unexpired –12
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 7 20 23



3100 Obligated balance, end of year (net) 7 20 23

Financing authority and disbursements, net:
Mandatory:
4090 Financing authority, gross 536 1,278 1,466
Financing disbursements:
4110 Financing disbursements, gross 412 1,265 1,462
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4120 Federal sources: Payments from program account –87 –731
4120 Reimbursements from DLFA –3 –1 –2
4120 Transfer of loan sales from loan sale security –186 –1,124 –1,187
4122 Interest on uninvested funds –58
4123 Repayments of principal –34 –26 –29
4123 Interest received on loans –27 –34 –35
4123 Fees –4 –10 –12
4123 Cash sale of properties –9 –4 –14



4130 Offsets against gross financing auth and disbursements (total) –408 –1,930 –1,279



4160 Financing authority, net (mandatory) 128 –652 187
4170 Financing disbursements, net (mandatory) 4 –665 183
4180 Financing authority, net (total) 128 –652 187
4190 Financing disbursements, net (total) 4 –665 183

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Direct Loans (in millions of dollars)


Identification code 36–4127–0–3–704 2011 actual 2012 est. 2013 est.

Position with respect to appropriations act limitation on obligations:
1131 Direct loan obligations exempt from limitation 263 1,140 1,325



1150 Total direct loan obligations 263 1,140 1,325

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 639 670 645
1231 Disbursements: Direct loan disbursements 258 1,140 1,325
Repayments:
1251 Repayments and prepayments –34 –25 –29
1253 Proceeds from loan asset sales to the public with recourse –186 –1,124 –1,187
Write-offs for default:
1263 Direct loans –5 –16 –11
1264 Other adjustments, Data Reconciliation –2



1290 Outstanding, end of year 670 645 743

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from direct loans obligated in 1992 and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this account are a means of financing and are not included in the budget totals.

Balance Sheet (in millions of dollars)


Identification code 36–4127–0–3–704 2010 actual 2011 actual

ASSETS:
Federal assets:
1101 Fund balances with Treasury 168 177
Investments in US securities:
1106 Receivables, net 63 761
Net value of assets related to post-1991 direct loans receivable:
1401 Direct loans receivable, gross 639 670
1402 Interest receivable 8 12
1404 Foreclosed property 22 8
1405 Allowance for subsidy cost 714 –6


1499 Net present value of assets related to direct loans 1,383 684


1999 Total assets 1,614 1,622
LIABILITIES:
Federal liabilities:
2103 Debt 1,587 1,599
2105 Other 19 17
2207 Non-Federal liabilities: Other 8 6


2999 Total liabilities 1,614 1,622


4999 Total upward reestimate subsidy BA [36–1119] 1,614 1,622

Housing Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 36–4129–0–3–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0002 Losses on defaulted loans 900 706 599
0004 Reimburse DLFA for loan sales 186 1,124 1,187
0005 Payment to trustee reserve 26 7 7
0006 Reimburse liquidating for subordination certificate 1 1
0009 Property sales expense 113 98 115
0010 Property management expense 154 81 94
0011 Property improvement expense 3 14 17
0012 Loans acquired 9 63 70



0091 Subtotal 1,392 2,093 2,090
Credit program obligations:
0711 Default claim payments on principal 1,348 1,307 1,507
0713 Payment of interest to Treasury 8
0740 Negative subsidy obligations 223 109 50
0742 Downward reestimate paid to receipt account 7 35
0743 Interest on downward reestimates 11 43



0791 Direct program activities, subtotal 1,597 1,494 1,557



0900 Total new obligations 2,9891 3,587 3,647

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 2,213 3,247 3,879
Financing authority:
Borrowing authority, mandatory:
1400 Borrowing authority 212 109 50
1421 Borrowing authority applied to repay debt –212



1440 Borrowing authority, mandatory (total) 109 50
Spending authority from offsetting collections, mandatory:
1800 Collected 4,024 4,219 3,733
1801 Change in uncollected payments, Federal sources –1
1825 Spending authority from offsetting collections applied to repay debt –109 –50



1850 Spending auth from offsetting collections, mand (total) 4,023 4,110 3,683
1900 Financing authority(total) 4,023 4,219 3,733
1930 Total budgetary resources available 6,236 7,466 7,612
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 3,247 3,879 3,965

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 269 284 51
3010 Uncollected pymts, Fed sources, brought forward, Oct 1 –6 –5 –5



3020 Obligated balance, start of year (net) 263 279 46
3030 Obligations incurred, unexpired accounts 2,989 3,587 3,647
3040 Financing disbursements (gross) –2,974 –3,820 –3,643
3050 Change in uncollected pymts, Fed sources, unexpired 1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 284 51 55
3091 Uncollected pymts, Fed sources, end of year –5 –5 –5



3100 Obligated balance, end of year (net) 279 46 50

Financing authority and disbursements, net:
Mandatory:
4090 Financing authority, gross 4,023 4,219 3,733
Financing disbursements:
4110 Financing disbursements, gross 2,974 3,820 3,643
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4120 Payments from program account –1,300 –927 –185
4120 Recoveries from DLFA –255 –851 –983
4122 Interest on uninvested funds –138 –65 –68
4123 Funding fees –913 –814 –825
4123 Cash sale of properties –1,229 –525 –609
4123 Redemption of properties and other –3
4123 Loan sale proceeds –186 –1,037 –1,063



4130 Offsets against gross financing auth and disbursements (total) –4,024 –4,219 –3,733
Additional offsets against financing authority only (total):
4140 Change in uncollected pymts, Fed sources, unexpired 1
4170 Financing disbursements, net (mandatory) –1,050 –399 –90
4190 Financing disbursements, net (total) –1,050 –399 –90

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Guaranteed Loans (in millions of dollars)


Identification code 36–4129–0–3–704 2011 actual 2012 est. 2013 est.

Position with respect to appropriations act limitation on commitments:
2131 Guaranteed loan commitments exempt from limitation 71,931 63,941 49,640
2132 Guaranteed loan commitments for loan asset sales with recourse 186 1,119 1,181



2150 Total guaranteed loan commitments 72,117 65,060 50,821
2199 Guaranteed amount of guaranteed loan commitments 20,039 18,766 14,882

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 224,306 257,727 314,071
2231 Disbursements of new guaranteed loans 71,931 63,941 49,640
2232 Guarantees of loans sold to the public with recourse 186 1,119 1,181
2251 Repayments and prepayments –33,182 –6,634 –7,882
Adjustments:
2262 Terminations for default that result in acquisition of property –1,348 –1,307 –1,507
2263 Terminations for default that result in claim payments –935 –775 –676
2264 Other adjustments, net –3,231



2290 Outstanding, end of year 257,727 314,071 354,827

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 76,290 91,866 103,284

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Government resulting from loan guarantees committed in 1992 and beyond, including modifications of guaranteed loans that resulted from commitments in any year, and from the guarantee of loans sold through the securitization programs. The amounts in this account are a means of financing and are not included in the budget totals.

Balance Sheet (in millions of dollars)


Identification code 36–4129–0–3–704 2010 actual 2011 actual

ASSETS:
Federal assets:
1101 Fund balances with Treasury 2,477 3,527
Investments in US securities:
1106 Receivables, net 1,483 969
Net value of assets related to post-1991 acquired defaulted guaranteed loans receivable:
1504 Accounts receivable from foreclosed property 11
1504 Foreclosed property 1,200 852


1599 Net present value of assets related to defaulted guaranteed loans 1,200 863


1999 Total assets 5,160 5,359
LIABILITIES:
2105 Federal liabilities: Other liabilities 10 15
Non-Federal liabilities:
2201 Accounts payable 15 286
2203 Debt 254
2204 Non-federal liabilities for loan guarantees 4,881 5,058


2999 Total liabilities 5,160 5,359


4999 Total liabilities and net position 5,160 5,359

Housing Liquidating Account

Program and Financing (in millions of dollars)


Identification code 36–4025–0–3–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0104 Claims processed and repaid default claims 1 1 1
0105 Other operating expenses 2 2 2



0191 Total operating expenses 3 3 3
Credit program obligations:
0711 Default claim payments on principal 4 3 2



0900 Total new obligations 71 6 5

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 2 1
1022 Capital transfer of unobligated balances to general fund –1



1050 Unobligated balance (total) 2
Budget authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 15 13 11
1820 Capital transfer of spending authority from offsetting collections to general fund –9 –7 –6



1850 Spending auth from offsetting collections, mand (total) 6 6 5
1930 Total budgetary resources available 8 6 5
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 2 3
3030 Obligations incurred, unexpired accounts 7 6 5
3040 Outlays (gross) –6 –9 –5
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 3



3100 Obligated balance, end of year (net) 3

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 6 6 5
Outlays, gross:
4100 Outlays from new mandatory authority 4 6 5
4101 Outlays from mandatory balances 2 3



4110 Outlays, gross (total) 6 9 5
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4123 Loan repayments and prepayments –2 –2 –2
4123 Sale of homes, cash –4 –3 –3
4123 Interest on loans –1 –1 –1
4123 Interest on subordinate certificates –1 –1 –1
4123 Interest collection on Veteran liability debts –2 –2 –2
4123 Principal collection on Veteran liability debts –3 –4 –2
4123 Other revenues (including adjustments) –2



4130 Offsets against gross budget authority and outlays (total) –15 –13 –11



4160 Budget authority, net (mandatory) –9 –7 –6
4170 Outlays, net (mandatory) –9 –4 –6
4180 Budget authority, net (total) –9 –7 –6
4190 Outlays, net (total) –9 –4 –6

Memorandum (non-add) entries:
5010 Total investments, SOY: non-Fed securities: Market value 140 140 140
5011 Total investments, EOY: non-Fed securities: Market value 140 140 140

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Direct Loans (in millions of dollars)


Identification code 36–4025–0–3–704 2011 actual 2012 est. 2013 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 17 14 12
1251 Repayments: Repayments and prepayments –3 –2 –1



1290 Outstanding, end of year 14 12 11

Status of Guaranteed Loans (in millions of dollars)


Identification code 36–4025–0–3–704 2011 actual 2012 est. 2013 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 696 587 497
2251 Repayments and prepayments –104 –87 –74
Adjustments:
2261 Terminations for default that result in loans receivable –1
2262 Terminations for default that result in acquisition of property –4 –3 –2



2290 Outstanding, end of year 587 497 421

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 248 211 211

Addendum:
Cumulative balance of defaulted guaranteed loans that result in loans receivable:
2310 Outstanding, start of year 21 15 11
2331 Disbursements for guaranteed loan claims 1
2351 Repayments of loans receivable –2 –2 –1
2361 Write-offs of loans receivable –4 –3 –2



2390 Outstanding, end of year 15 11 8

As required by the Federal Credit Reform Act of 1990, this account records all cash flows to and from the Government resulting from direct loans obligated and loan guarantees committed prior to 1992. All new activity in this program in 1992 and beyond is recorded in the corresponding program and financing accounts.

Balance Sheet (in millions of dollars)


Identification code 36–4025–0–3–704 2010 actual 2011 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 5 4
1201 Non-Federal assets: Investments in non-Federal securities, net 140 140
1601 Direct loans, gross 17 14
1603 Allowance for estimated uncollectible loans and interest (-) –2 –2


1604 Direct loans and interest receivable, net 15 12
1606 Foreclosd property direct loans 9 10


1699 Value of assets related to direct loans 24 22
1701 Defaulted guaranteed loans, gross 21 15
1703 Allowance for estimated uncollectible loans and interest (-) –18 –14


1704 Defaulted guaranteed loans and interest receivable, net 3 1
1706 Foreclosed property 7 4


1799 Value of assets related to loan guarantees 10 5


1999 Total assets 179 171
LIABILITIES:
2103 Federal liabilities: Debt 177 169
2207 Non-Federal liabilities: Other 2 2


2999 Total liabilities 179 171


4999 Total liabilities and net position 179 171

Object Classification (in millions of dollars)


Identification code 36–4025–0–3–704 2011 actual 2012 est. 2013 est.

Direct obligations:
32.0 Land and structures 4 3 2
33.0 Investments and loans 3 3 3



99.9 Total new obligations 7 6 5

Native American Veteran Housing Loan Program Account

For administrative expenses to carry out the direct loan program authorized by subchapter V of chapter 37 of title 38, United States Code, [$1,116,000] $1,089,000.

Vocational Rehabilitation Loans Program Account

For the cost of direct loans, $19,000, as authorized by chapter 31 of title 38, United States Code: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That funds made available under this heading are available to subsidize gross obligations for the principal amount of direct loans not to exceed [$3,019,000] $2,729,000.

In addition, for administrative expenses necessary to carry out the direct loan program, [$343,000] $346,000, which may be paid to the appropriation for "General operating expenses, Veterans Benefits Administration''. (Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)


Identification code 36–1120–0–1–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
Credit program obligations:
0705 Reestimates of direct loan subsidy 5 10
0706 Interest on reestimates of direct loan subsidy 3
0709 Administrative expenses 1 1 1



0900 Total new obligations 61 14 1

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 2 2 2
Budget authority:
Appropriations, discretionary:
1100 Appropriation 1 1 1



1160 Appropriation, discretionary (total) 1 1 1
Appropriations, mandatory:
1200 Appropriation 5 13



1260 Appropriations, mandatory (total) 5 13
1900 Budget authority (total) 6 14 1
1930 Total budgetary resources available 8 16 3
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 2 2 2

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 6 14 1
3040 Outlays (gross) –6 –14 –1

Budget authority and outlays, net:
Discretionary:
4000 Budget authority, gross 1 1 1
Outlays, gross:
4010 Outlays from new discretionary authority 1 1 1
Mandatory:
4090 Budget authority, gross 5 13
Outlays, gross:
4100 Outlays from new mandatory authority 5 13
4180 Budget authority, net (total) 6 14 1
4190 Outlays, net (total) 6 14 1

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)


Identification code 36–1120–0–1–704 2011 actual 2012 est. 2013 est.

Direct loan levels supportable by subsidy budget authority:
115002 Native American Direct Loans 7 11 11
115003 Vocational Rehabilitation 2 3 3



115999 Total direct loan levels 9 14 14
Direct loan subsidy (in percent):
132002 Native American Direct Loans –13.65 –11.97 –17.84
132003 Vocational Rehabilitation 1.57 0.63 0.68



132999 Weighted average subsidy rate –10.27 –9.27 –13.87
Direct loan subsidy budget authority:
133002 Native American Direct Loans –1 –1 –2



133999 Total subsidy budget authority –1 –1 –2
Direct loan subsidy outlays:
134002 Native American Direct Loans –1 –1 –2



134999 Total subsidy outlays –1 –1 –2
Direct loan upward reestimates:
135002 Native American Direct Loans 5 13



135999 Total upward reestimate budget authority 5 13
Direct loan downward reestimates:
137002 Native American Direct Loans –3 –5



137999 Total downward reestimate budget authority –3 –5

Administrative expense data:
3510 Budget authority 1
3590 Outlays from new authority 1

The Native American Veterans Housing Loan program provides direct loans to veterans living on trust lands under 38 U.S.C. chapter 37, section 3761. These loans are available to purchase, construct, or improve homes to be occupied as the veteran's residence. This program began as a pilot in 1993 and was made permanent on June 15, 2006 through Public Law 109–233.

The Vocational Rehabilitation Loan Program provides additional funding assistance to cover the costs of subsistence, tuition, books, supplies, and equipment in conjunction with service connected disability benefits provided to Veterans participating in VA's Vocational Rehabilitation and Counseling Program as authorized by chapter 31 of title 38, United States Code. Repayment of these loans is made in monthly installments, without interest, through deductions from future payments of compensation, pension, subsistence allowance, educational assistance allowance, or retired pay.

Object Classification (in millions of dollars)


Identification code 36–1120–0–1–704 2011 actual 2012 est. 2013 est.

Direct obligations:
25.2 Other services from non-Federal sources 6 1 1
41.0 Grants, subsidies, and contributions 13



99.9 Total new obligations 6 14 1

Native American Direct Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 36–4130–0–3–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
Credit program obligations:
0710 Direct loan obligations 7 11 11
0713 Payment of interest to Treasury 4 2 2
0740 Negative subsidy obligations 1 1 2
0742 Downward reestimate paid to receipt account 3 4
0743 Interest on downward reestimates 1 1



0900 Total new obligations 161 19 15

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 2 7
1023 Unobligated balances applied to repay debt –7



1050 Unobligated balance (total) 2
Financing authority:
Borrowing authority, mandatory:
1400 Borrowing authority 16 19 15
1421 Borrowing authority applied to repay debt –5



1440 Borrowing authority, mandatory (total) 11 19 15
Spending authority from offsetting collections, mandatory:
1800 Collected 10 25 12
1825 Spending authority from offsetting collections applied to repay debt –25 –12



1850 Spending auth from offsetting collections, mand (total) 10
1900 Financing authority(total) 21 19 15
1930 Total budgetary resources available 23 19 15
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 7

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 2 2 2
3030 Obligations incurred, unexpired accounts 16 19 15
3040 Financing disbursements (gross) –16 –19 –15
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 2 2 2



3100 Obligated balance, end of year (net) 2 2 2

Financing authority and disbursements, net:
Mandatory:
4090 Financing authority, gross 21 19 15
Financing disbursements:
4110 Financing disbursements, gross 16 19 15
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4120 Federal sources –5 –13
4122 Interest on uninvested funds –1
4123 Non-federal sources - Repayments and prepayments of principal –2 –9 –9
4123 Non-Federal sources - Interest received on loans –2 –3 –3



4130 Offsets against gross financing auth and disbursements (total) –10 –25 –12



4160 Financing authority, net (mandatory) 11 –6 3
4170 Financing disbursements, net (mandatory) 6 –6 3
4180 Financing authority, net (total) 11 –6 3
4190 Financing disbursements, net (total) 6 –6 3

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Direct Loans (in millions of dollars)


Identification code 36–4130–0–3–704 2011 actual 2012 est. 2013 est.

Position with respect to appropriations act limitation on obligations:
1131 Direct loan obligations exempt from limitation 7 11 11



1150 Total direct loan obligations 7 11 11

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 58 61 64
1231 Disbursements: Direct loan disbursements 8 11 11
1251 Repayments: Repayments and prepayments –2 –8 –8
1264 Write-offs for default: Adjustments other –3



1290 Outstanding, end of year 61 64 67

The account preceding this section contains information on the Native American Veterans Housing Loan program, and the account following this section contains information on the Guaranteed Transitional Housing Loans for Homeless Veterans program. The Transitional Housing loans are 100% guaranteed and use the Federal Financing Bank (FFB) as the lending institution. For budget purposes, all FFB loans shall be treated as direct loans.

As required by the Federal Credit Reform Act of 1990, these non-budgetary accounts record all cash flows to and from the Government resulting from direct loans obligated in 1992 and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in the accounts are a means of financing and are not included in the budget totals.

Balance Sheet (in millions of dollars)


Identification code 36–4130–0–3–704 2010 actual 2011 actual

ASSETS:
Federal assets:
1101 Fund balances with Treasury 3 9
Investments in US securities:
1106 Receivables, net 3
Net value of assets related to post-1991 direct loans receivable:
1401 Direct loans receivable, gross 58 61
1402 Interest receivable 1 1


1499 Net present value of assets related to direct loans 59 62
1901 Other Federal assets: Other assets 2


1999 Total assets 64 74
LIABILITIES:
Federal liabilities:
2103 Federal liabilities debt 63 73
2105 Other liabilities 1 1


2999 Total liabilities 64 74


4999 Total liabilities and net position 64 74

Transitional Housing Direct Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 36–4258–0–3–704 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0005 Transitional housing direct loan financing account 1



0900 Total new obligations 11

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 5 5 5
Financing authority:
Spending authority from offsetting collections, mandatory:
1800 Collected 1



1850 Spending auth from offsetting collections, mand (total) 1
1930 Total budgetary resources available 6 5 5
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 5 5 5

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 1
3040 Financing disbursements (gross) –1

Financing authority and disbursements, net:
Mandatory:
4090 Financing authority, gross 1
Financing disbursements:
4110 Financing disbursements, gross 1
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4123 Non-Federal sources –1

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Direct Loans (in millions of dollars)


Identification code 36–4258–0–3–704 2011 actual 2012 est. 2013 est.

Position with respect to appropriations act limitation on obligations:
1121 Limitation available from carry-forward 95 95 95
1143 Unobligated limitation carried forward –95 –95 –95



1150 Total direct loan obligations

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 5 5
1263 Write-offs for default: Direct loans –5



1290 Outstanding, end of year 5

Balance Sheet (in millions of dollars)


Identification code 36–4258–0–3–704 2010 actual 2011 actual

ASSETS:
1101 Federal assets: Fund balances with Treasury 5 5
Net value of assets related to post-1991 direct loans receivable:
1401 Direct loans receivable, gross 5 5
1405 Allowance for subsidy cost (-) –5 –5


1499 Net present value of assets related to direct loans


1999 Total assets 5 5
LIABILITIES:
2103 Federal liabilities: Debt 5 5


4999 Total liabilities and net position 5 5

Vocational Rehabilitation Direct Loan Financing Account

Program and Financing (in millions of dollars)


Identification code 36–4112–0–3–702 2011 actual 2012 est. 2013 est.

Obligations by program activity:
Credit program obligations:
0710 Direct loan obligations 2 3 3



0900 Total new obligations 21 3 3

Budgetary Resources:
Financing authority:
Borrowing authority, mandatory:
1400 Authority to borrow (indefinite) 2 3 3
1421 Borrowing authority applied to repay debt –2



1440 Borrowing authority, mandatory (total) 3 3
Spending authority from offsetting collections, mandatory:
1800 Collected 2 3 3
1825 Spending authority from offsetting collections applied to repay debt –3 –3



1850 Spending auth from offsetting collections, mand (total) 2
1900 Financing authority(total) 2 3 3
1930 Total budgetary resources available 2 3 3

Change in obligated balance:
3030 Obligations incurred, unexpired accounts 2 3 3
3040 Financing disbursements (gross) –2 –3 –3

Financing authority and disbursements, net:
Mandatory:
4090 Financing authority, gross 2 3 3
Financing disbursements:
4110 Financing disbursements, gross 2 3 3
Offsets against gross financing authority and disbursements:
Offsetting collections (collected) from:
4123 Repayments and prepayments of principal –2 –3 –3

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Status of Direct Loans (in millions of dollars)


Identification code 36–4112–0–3–702 2011 actual 2012 est. 2013 est.

Position with respect to appropriations act limitation on obligations:
1111 Limitation on direct loans 2 3 3



1150 Total direct loan obligations 2 3 3

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 1 1 1
1231 Disbursements: Direct loan disbursements 2 3 3
1251 Repayments: Repayments and prepayments –2 –3 –3



1290 Outstanding, end of year 1 1 1

Balance Sheet (in millions of dollars)


Identification code 36–4112–0–3–702 2010 actual 2011 actual

ASSETS:
Federal assets: Investments in US securities:
1104 Investments US Securities 1
1401 Net value of assets related to post-1991 direct loans receivable: Direct loans receivable, gross 1 1


1999 Total assets 1 2
LIABILITIES:
2103 Federal liabilities: Debt 1 2


4999 Total liabilities and net position 1 2

Trust Funds

Post-Vietnam Era Veterans Education Account

Special and Trust Fund Receipts (in millions of dollars)


Identification code 36–8133–0–7–702 2011 actual 2012 est. 2013 est.

0100 Balance, start of year
Receipts:
0240 Contributions, Post-Vietnam Era Veterans Education Account 1 1 1



0400 Total: Balances and collections 1 1 1
Appropriations:
0500 Post-Vietnam Era Veterans Education Account –1 –1 –1



0799 Balance, end of year

Program and Financing (in millions of dollars)


Identification code 36–8133–0–7–702 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Payment to post-Vietnam era trainees 1 1
0003 Participant disenrollments 1



0900 Total new obligations 11 1 1

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 65 65 65
Budget authority:
Appropriations, mandatory:
1201 Appropriation (special or trust fund) 1 1 1



1260 Appropriations, mandatory (total) 1 1 1
1930 Total budgetary resources available 66 66 66
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 65 65 65

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 1 1 1
3030 Obligations incurred, unexpired accounts 1 1 1
3040 Outlays (gross) –1 –1 –1
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 1 1 1



3100 Obligated balance, end of year (net) 1 1 1

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 1 1 1
Outlays, gross:
4101 Outlays from mandatory balances 1 1 1
4180 Budget authority, net (total) 1 1 1
4190 Outlays, net (total) 1 1 1

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

This account consists of voluntary contributions by eligible servicepersons and matching contributions provided by the Department of Defense. The fund provides educational assistance payments to participants who entered the service after December 31, 1976, and are pursuing training under chapter 32, title 38, U.S.C. Section 901 is a non-contributory program with educational assistance provided by the Department of Defense. Public Law 99–576, enacted October 28, 1986, closed the program permanently for new enrollments effective March 31, 1987. Public Law 106–419, enacted November 1, 2000, provides qualified participants in this program another opportunity (through October 31, 2001) to convert to the All-Volunteer Force Educational Assistance program (Montgomery GI Bill). The estimated activity in the fund follows:

CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES [dollars in millions]


2011 actual 2012 est. 2013 est.

Total budget authority $1 $1 $1
Servicepersons contributions $0 $0 $0
Transferred from Department of Defense (bonus) $0 $0 $0
Transferred from Department of Defense (matching) $0 $0 $0
Transferred from Department of Defense (section 901) $0 $0 $0
Total participants (end of year) 193,291 192,725 192,214
Number of disenrollments 523 473 423
Total refunds $1 $1 $1
Total trainees 112 106 101
Total trainee cost $1 $1 $1
Average cost per trainee (actual dollars) $1,144 $1,144 $1,144
Section 901 trainees 35 33 32

Object Classification (in millions of dollars)


Identification code 36–8133–0–7–702 2011 actual 2012 est. 2013 est.

Direct obligations:
41.0 Grants, subsidies, and contributions 1 1
44.0 Refunds 1



99.9 Total new obligations 1 1 1

National Service Life Insurance Fund

Special and Trust Fund Receipts (in millions of dollars)


Identification code 36–8132–0–7–701 2011 actual 2012 est. 2013 est.

0100 Balance, start of year 6,901 6,367 5,762
Receipts:
0220 NSLI Fund, Premium and Other Receipts 92 80 69
0240 NSLI Fund, Interest 417 362 317



0299 Total receipts and collections 509 442 386



0400 Total: Balances and collections 7,410 6,809 6,148
Appropriations:
0500 National Service Life Insurance Fund –510 –442 –385
0501 National Service Life Insurance Fund –533 –605 –612



0599 Total appropriations –1,043 –1,047 –997



0799 Balance, end of year 6,367 5,762 5,151

Program and Financing (in millions of dollars)


Identification code 36–8132–0–7–701 2011 actual 2012 est. 2013 est.

Obligations by program activity:
0001 Death claims 723 743 714
0002 Disability claims 6 5 4
0003 Matured endowments 33 40 49
0004 Cash surrenders 29 30 30
0005 Dividends 154 126 106
0006 Interest paid on dividend credits and deposits 43 44 37
0007 Payment to insurance account 19 23 23



0091 Total operating expenses 1,007 1,011 963
0201 Capital investment: Policy loans 35 35 34



0799 Total direct obligations 1,042 1,046 997
0801 Death claims 140 122 109
0802 Disability claims 1 1 1
0803 Matured endowments 7 7 7
0804 Cash surrenders 6 5 5
0805 Dividends 30 21 16
0806 Interest paid on dividend credits and deposits 8 7 6
0807 Payment to insurance account 4 4 3



0899 Total reimbursable obligations 196 167 147



0900 Total new obligations 1,2381 1,213 1,144

Budgetary Resources:
Unobligated balance:
1000 Unobligated balance brought forward, Oct 1 1 1
Budget authority:
Appropriations, mandatory:
1201 Appropriation (special or trust fund) 510 442 385
1203 Appropriation (previously unavailable) 533 605 612



1260 Appropriations, mandatory (total) 1,043 1,047 997
Spending authority from offsetting collections, mandatory:
1800 Collected 196 166 147



1850 Spending auth from offsetting collections, mand (total) 196 166 147
1900 Budget authority (total) 1,239 1,213 1,144
1930 Total budgetary resources available 1,239 1,214 1,145
Memorandum (non-add) entries:
1941 Unexpired unobligated balance, end of year 1 1 1

Change in obligated balance:
Obligated balance, start of year (net):
3000 Unpaid obligations, brought forward, Oct 1 (gross) 1,269 1,181 1,098
3030 Obligations incurred, unexpired accounts 1,238 1,213 1,144
3040 Outlays (gross) –1,326 –1,296 –1,228
Obligated balance, end of year (net):
3090 Unpaid obligations, end of year (gross) 1,181 1,098 1,014



3100 Obligated balance, end of year (net) 1,181 1,098 1,014

Budget authority and outlays, net:
Mandatory:
4090 Budget authority, gross 1,239 1,213 1,144
Outlays, gross:
4100 Outlays from new mandatory authority 608 532
4101 Outlays from mandatory balances 1,326 688 696



4110 Outlays, gross (total) 1,326 1,296 1,228
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4123 Non-Federal sources –196 –166 –147
4180 Budget authority, net (total) 1,043 1,047 997
4190 Outlays, net (total) 1,130 1,130 1,081

Memorandum (non-add) entries:
5000 Total investments, SOY: Federal securities: Par value 8,161 7,541 6,853
5001 Total investments, EOY: Federal securities: Par value 7,541 6,853 6,158

1Total obligations include the net of recoveries of prior year paid and unpaid obligations while VA is modifying its financial system to record recoveries consistent with OMB Circular A-11.

Note._Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit schedules previously shown for this account have been discontinued.
This fund was established in 1940. It is for the World War II servicemen's and veterans' insurance program. Over 22 million policies were issued under this program. Activity of the fund reflects a declining claim workload. The trend in the number and amount of policies in force is shown as follows:

POLICIES AND INSURANCE IN FORCE


2011 actual 2012 est. 2013 est.

Number of policies 665,394 586,154 510,444
Insurance in force (dollars in millions) $8,040 $7,172 $6,321

This fund is operated on a commercial basis to the extent possible. The income of the fund is derived from premium receipts, interest on investments, and payments which are made to the fund from the Veterans Insurance and Indemnities appropriation.

Assets of the fund, which are largely invested in special interest-bearing Treasury securities and in policy loans, are expected to decrease from an estimated $6,862 million as of September 30, 2012 to $6,167 million as of September 30, 2013. The actuarial estimate of policy obligations as of September 30, 2013, totals $6,221 million, leaving a balance of $289 million for contingency reserves.

Status of Funds (in millions of dollars)


Identification code 36–8132–0–7–701 2011 actual 2012 est. 2013 est.

Unexpended balance, start of year:
0100 Balance, start of year 8,170 7,549 6,861



0199 Total balance, start of year 8,170 7,549 6,861
Cash income during the year:
Current law:
Offsetting receipts (proprietary):
1220 NSLI