ARCHIVED INFORMATION -- Fiscal Year 1996 Annual Accountability Report

United States Department of Education

Consolidated Statement of Cash Flows

For the Year Ended September 30, 1996 and 1995
(Dollars in Thousands)

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

1996 1995

(unaudited) (for comparative purposes)
Operating Cash Provided
Defaulted Loans Collected $ 2,448,328 $ 2,013,058     
Loan Origination and Other Fees 1,303,938 1,146,894     
Interest, Federal 915,999 804,695     
Interest and Penalty, Non-Federal 139,458 40,864     
Other Operating Cash Provided        8,518       11,239     
Total Operating Cash Provided      4,816,241 4,016,750     
Operating Cash Used
Interest and Penalties, Non-Federal (93) (54)     
Interest, Federal (992,879) (525,993)     
Defaulted Loan Payments (2,787,767) (2,521,173)     
Interest Subsidy Payments (3,077,813) (2,801,143)     
Mandatory Administrative Expenses (209,869) (257,862)     
Grant Award Payments (24,731,647) (25,014,693)     
Salaries and Benefits (304,297) (308,682)     
Rent, Communications and Utilities (93,159) (53,444)     
Contractual Program Services (637,266) (658,288)     
Printing and Reproduction (20,879) (15,718)     
Travel and Transportation (9,383) (11,954)     
Materials, Supplies and Equipment (22,332) (21,679)     
Guaranty Agency Collection Fees (335,818) (285,376)     
Payment of Origination Services (19,507) (3,750)     
Other Operating Cash Used           --                   (835)     
Total Operating Cash Used      (33,242,709) (32,480,644)     
Net Operating Cash Used by Operating Activities $ (28,426,468) $ (28,463,894)     

CASH PROVIDED (USED) BY INVESTING ACTIVITIES

1996 1995

(unaudited) (for comparative purposes)
Collection of Advances -- 750     
Collection of Loans Receivable 261,720 73,847     
Loan Disbursements (9,038,958) (3,267,940)     
Net Cash Used by Investing Activities (8,777,238) (3,193,343)     

CASH PROVIDED (USED) BY FINANCING ACTIVITIES

1996 1995

(unaudited) (for comparative purposes)
Appropriated Funds Received 29,378,082 33,274,634     
Appropriations Transferred (To) From Others (25,113) 34,218     
Appropriated Funds Returned (1,295,524) (875,040)     
Net Appropriations 28,057,445 32,433,812     
Repayments to U.S. Treasury For Borrowings (1,168,693) (759,319)     
Borrowing from U.S. Treasury 7,957,183 4,892,496     
Net Cash Provided by Financing Activities 34,845,935 36,566,989     
Net Cash Provided by Operating, Investing, and Financing Activities (2,357,771) 4,909,752     
Fund Balances with U. S. Treasury , Beginning of Year 39,375,252 34,465,500     
Fund Balances with U. S. Treasury , End of Year $37,017,481 $39,375,252     

RECONCILIATION OF NET OPERATING ACTIVITY BEFORE
APPROPRIATIONS TO NET CASH USED BY OPERATING ACTIVITY

1996 1995

(unaudited) (for comparative purposes)
Net Operating Activity $ (30,504,758) $ (29,355,915)     
Adjustments to Reconcile Net Operating Activity to Net Cash Used by Operating Activities:
Decrease (Increase) in Credit Program Receivable, Net:
    Direct Loans 428,277 457,924     
    Defaulted Guaranteed Loans (20,590) 301,843     
    Facilities Loans (22,556) (12,990)     
Decrease in Advances to Guaranty Agencies, Net 847 1     
Decrease (Increase) in Entity Accounts Receivable, Net (5,507) (8,408)     
Decrease (Increase) in Non-Entity Accounts Receivable, Net 7,907 (32,982)     
Increase in Interest Payable to U. S. Treasury 9,431 1,910     
Increase in Estimated Liabilities for Loan Guarantees 2,111,902 81,529     
Increase (Decrease) in Accrued Grant Liability (450,591) 76,309     
Increase (Decrease) in Accrued Contractual Services Liability 10,187 (6,313)     
Increase (Decrease) in Accrued Salaries and Benefits 3,265 (10,980)     
Increase in Other Accrued Liabilities 6,661 42,799     
Increase (Decrease) in Accrued Workers Compensation Liability (943) 1,379     
Net Adjustments     2,078,290     892,021     
Net Cash Used By Operating Activities $(28,426,468) $(28,463,894)     

The accompanying notes are an integral part of these statements.

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[Consolidated Statement of Operations and Changes in Net Position] [Table of Contents] [Accompanying Notes]