Summary: Some general observations are made on an Office of Management and Budget (OMB) staff paper entitled "Achieving Better Control Over Federal Credit Programs."
GAO concurred with the general thrust of the analysis and recommendations which advocated more budgetary controls over Federal credit activities in both the legislative and executive branches. However, the following matters still concerned GAO: when loan guarantee agreements, or contracts, should result in the recording of obligations; the need for more attention to the question of proper budget authority treatment of borrowed funds; the lack of reporting on gross amounts in public enterprise revolving funds; the need for a clear and strong recommendation to place the activities of the Federal Financing Bank (FFB) on the budget; the increase in the direct loan portion of Federal credit programs; the need to modify a statement in the paper alleging that the FFB has aided in the avoidance of budget controls, as GAO believes the problem lies in the FFB budget status and/or its conventions used to score certificate of beneficial ownership sales; and the fact that loan demand, such as disaster loans may be unpredictable and thus more flexible funding provisions may be required.
