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Carryover Balances

Back to Table of Contents:  FY 2009 MDUFMA Financial Report
 

Under MDUFMA, fees collected, appropriated, and not obligated by the end of a fiscal year remain available to FDA for future fiscal years.  They are referred to as carryover balances.  Operations in FY 2009 resulted in an increase of carryover balances of $14,490,176, and increased the net carryover balance from $23,396,299 to $37,886,475 by the end of the year. 

The table below captures FDA’s carryover balances at the beginning of each fiscal year since the beginning of MDUFMA in FY 2003.
 

FOOD AND DRUG ADMINISTRATION
STATEMENT OF CASH, OBLIGATIONS, AND CARRYOVER BALANCES BY FISCAL YEAR
AS OF SEPTEMBER 30 OF EACH FISCAL YEAR

Fiscal YearBeginning CarryoverNet CashObligationsYear-End Carryover
2003-------$21,936,910$14,837,600$7,099,310
2004$7,099,310$26,828,534$23,875,200$10,052,644
2005$10,052,644$31,102,864$27,171,400$13,984,108
2006$13,984,108$34,325,120$32,068,610$16,240,618
2007$16,240,618$29,824,954$35,202,700$10,862,872
2008$10,862,872$48,956,327$36,422,900$23,396,299
2009$23,396,299$61,792,920$47,302,744$37,886,475
2010$37,886,475---------------------


The carryover balances in the table reflect the cumulative cash from the beginning to the end of each fiscal year, the net cash collected, and any refunds or other adjustments that occurred during each fiscal year.  The net cash amount for FY 2009 is less than the fees credited to  FY 2009, shown on page 3.  Some of the cash collected in FY 2009 was for fees owed from previous years.  Net cash also reflects all refunds processed in FY 2009 even if the fee was paid in a previous fiscal year.
 

FEE AMOUNTS APPROPRIATED, FEES COLLECTED, AND DIFFERENCES

Under MDUFMA II, if cumulative collections through FY 2010 and estimated for FY 2011 exceed cumulative fee appropriations for the same period, FDA will reduce fees when fees are set for FY 2012 by the cumulative amount by which fees collected over this period exceed fees appropriated over the same period.  The following table depicts for each year cumulative net collections, collection ceilings (appropriated amount of fees that may be collected each year), and differences through the end of FY 2009.


FOOD AND DRUG ADMINISTRATION
STATEMENT OF FEES APPROPRIATED, FEES COLLECTED, AND DIFFERENCES 
AS OF SEPTEMBER 30, 2009


Fiscal YearFees AppropriatedFees CollectedDifferences
2003$25,125,000$21,620,549($3,504,451)
2004$31,654,000$26,280,073($5,373,927)
2005$33,938,000$31,817,879($2,120,121)
2006$40,300,000$35,063,434($5,236,566)
2007$43,726,000$28,726,239($14,999,761)
MDUFMA I Total$174,743,000$143,508,174($31,234,826)
2008$48,431,000$49,157,896$726,896
2009$52,547,312$62,011,733$9,464,421
MDUFMA II Total$100,978,312$111,169,629$10,191,317


 

 

 

 

 

 


 

As the table shows, the total amount of fees collected for each year of MDUFMA I fell short of the amount appropriated every year.  In FY 2009, for the second time, fees collected exceeded the appropriation, by a total of $9,464,421.  Cumulative differences from FY 2008 through 2010, and estimated for FY 2011, if positive, will offset fee amounts when they are set for FY 2012.


AVAILABILITY OF CARRYOVER BALANCES


Of the FY 2009 carryover balance, $8,196,299 is unearned revenue which is coming from applications that are not yet received by FDA.  This is the $5,610,279 for FY 2009, plus a total of $2,586,020 from previous years.  FDA also holds $1,000,000 in reserve for potential refunds in future years.  In addition, MDUFMA requires FDA to have at least 1 month of operating funds from fees in reserve at the end of each fiscal year for use at the beginning of the next fiscal year.  All three of these amounts must be held in reserve and are not available for allocation.  The table below shows the amounts of carryover that must be held in reserve and the amount, $23,535,176, available for allocation in subsequent fiscal years.  (MDUFMA II anticipated a growing carryover balance through FY 2010, which would then be drawn down in the final 2 years.)


FOOD AND DRUG ADMINISTRATION
MEDICAL DEVICE FEE REVENUE CARRYOVER BALANCE
AS OF SEPTEMBER 30, 2009
 

Status of Carryover FundsAmount
Unearned Fees$8,196,299
Reserve for Future Refunds$1,000,000
1-Month Reserve for Next Fiscal Year$5,155,000
Available Cash for Allocation in Future$23,535,176
Total Carryover Balance$37,823,475

 

 

 

 

 
 

Next Section:  Total Cost of the Process for the Review of Medical Device Applications