[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Notices]
[Pages 8218-8220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4398]
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DEPARTMENT OF COMMERCE
Bureau of the Census
Quarterly Financial Report
ACTION: Proposed collection: comment request.
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SUMMARY: The Department of Commerce, as part of its continuing effort
to reduce paperwork and respondent burden, invites the general public
and other Federal agencies to
[[Page 8219]]
take this opportunity to comment on proposed and/or continuing
information collections, as required by the Paperwork Reduction Act of
1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).
DATES: Written comments must be submitted on or before April 25, 1997.
ADDRESSES: Direct all written comments to Linda Engelmeier,
Departmental Forms Clearance Officer, Department of Commerce, Room
5327, 14th and Constitution Avenue, NW, Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the information collection instrument(s) and instructions
should be directed to Ronald Lee, Bureau of the Census, Room 301-11
Iverson Mall, Washington, DC 20233, Telephone (301) 763-5435.
SUPPLEMENTARY INFORMATION:
I. Abstract
The Bureau of the Census plans to revise three of four data
collection forms it uses in its Quarterly Financial Report (QFR)
Program. QFR Forms QFR-101(MG)-long form, QFR-102(TR)-long form, and
QFR-101A(MG)-short form are being revised. Form QFR-103(NB)-Nature of
Business Report will not be revised. The purpose of these revisions is
to bring the data collection forms up-to-date from an accounting and
financial statement presentation viewpoint and to provide more
meaningful data to users. These forms have not been substantially
revised since their introduction in 1973.
The QFR Program has published up-to-date aggregate statistics on
the financial results and position of U.S. corporations since 1947. It
is a principal economic indicator that also provides financial data
essential to the calculation of key Government measures of national
economic performance. The importance of this data collection is
reflected by the granting of specific authority to conduct the program
in Title 13 of the United States Code, Section 91, which requires that
financial statistics of business operations be collected and published
quarterly. Public Law 103-105 extended the authority of the Secretary
of Commerce to conduct the QFR Program under Section 91 through
September 30, 1998.
The purpose of the QFR Program is to provide timely, accurate data
on business financial conditions for use by Government and private-
sector organizations and individuals. An extensive subscription mailing
list attests to the diverse groups using these data including foreign
countries, universities, financial analysts, unions, trade
associations, public libraries, banking institutions, and U.S. and
foreign corporations. The primary users are governmental organizations
charged with economic policy-making responsibilities. These
organizations play a major role in providing guidance, advice, and
support to the QFR Program.
While the Office of Management and Budget's (OMB) current approval
for the QFR Program's data collection forms runs through September 30,
1998, the current quarterly report forms are outdated and have not
undergone substantial revision for more than 20 years. There have been
sweeping changes in financial statement presentation and the underlying
accounting principles since the form's introduction in 1973. We have
been able to forestall form revision because QFR ``catchall'' data line
items provided corporations with a dumping ground for new data items
spawned by these accounting changes. The published values in the
``catchall'' items however, have increased measurably, and will
continue to do so, as the number of accounting changes since 1973
mounts.
Our primary data users, the Bureau of Economic Analysis (BEA) and
the Federal Reserve Board (FRB), want less data item aggregation
particularly in the QFR. This would allow separation of recurring and
nonrecurring income/expense items. Others in the user community
repeatedly request QFR data presentation to be more consistent with
other financial data sets, such as SEC filings and request the addition
of new line items for improved calculation of ratios measuring industry
performance. Also, large reporting companies frequently call for
assistance because there is insufficient space on the forms to
accommodate the reporting of data items they usually report separately
in their financial statements.
In order to bring the QFR data collection forms up-to-date and
provide more meaningful data to users, we plan to make changes to the
quarterly financial report forms QFR-101(MG)-long form, QFR-102(TR)-
long form, and QFR-101A(MG)-short form. Form QFR-103(NB)-Nature of
Business Report which is used to determine industry classification,
verify corporate identity, and analyze parent-subsidiary relations will
not be revised. The proposed new forms retain the single-page format.
The number of reportable data items increases from 35 to 36 for form
QFR-101A to accommodate for interest expense. The number of reportable
data items remain the same for forms QFR-101 and QFR-102. These two
forms do, however contain more detailed reporting of significant
economic events such as asset sales and disposal of business segments.
This additional level of detail will enable BEA to adjust more
accurately the ``income before tax'' numbers for these events.
Currently, we and BEA do ad hoc research of newspapers for these items
and often must telephone companies for their detail. The proposed new
forms also contain separate information on interest expense and
corporate bonds. Both of these data items have been long standing
requests from a variety of users, including the FRB, business
economists, and the banking community.
We began addressing the issue of form redesign with a draft of the
revised forms in January 1993. We sent these forms to more than 100
trade associations, interested parties, and user agencies for comment.
Most of the comments received were positive. A number of the trade
associations asked their members to comment on the proposed revision
and they in turn passed these comments back to us. Suggestions for
rewording and clarification of requirements were incorporated in a
revised draft. The most notable change was the dropping of the research
and development expense request. The comments we received indicated
that these data are not uniformly available on a quarterly basis.
In July 1994, pursuant to the OMB generic clearance for
questionnaire pretesting research (OMB number 0607-0725), we conducted
a pretest of the revised forms and instructions. Revised QFR data
collection forms were sent to 100 corporations currently participating
in the QFR Program. Thirty of these cases were selected from the
noncertainty or sample segment of the program and 70 cases were
selected from the certainty or ``take all'' segment.
The results of the test were favorable. Response rates for the test
cases were similar to those having to file the old or ``current'' form.
The average time it took to complete the revised form for the
noncertainty cases did not differ significantly from the time we
estimate it takes to complete the current form. However, the average
time it took for the certainty cases was significantly less than we
estimate it takes to complete the current form. We believe this
difference is primarily due to an over-estimate of the time it takes to
complete the current form, rather than a result of the revised form.
This is corroborated by the responses to the question on the debriefing
questionnaire that compared the difficulty of the new form to the
current form. Over 80% of the certainty
[[Page 8220]]
cases reported that the revised and current forms required about the
same level of effort to complete.
II. Method of Collection
The Census Bureau will use mail out/mail back survey forms to
collect data. Companies will be asked to respond to the survey within
25 days of the end of the quarter the data are being requested for.
Letters and/or telephone calls encouraging participation will be
directed to respondents that have not responded by the designated time.
III. Data
OMB Number: 0607-0432
Form Number: QFR-101 (Sent to manufacturing, mining, and wholesale
trade corporations with assets of $50 million or more at time of
sampling), QFR-102 (Sent to retail trade corporations with assets of
$50 million or more at time of sampling), QFR-101A (Sent to
manufacturing corporations with assets of less than $50 million at time
of sampling), and QFR-103 (Sent at the beginning of sample selection
and at 2-year intervals if the corporation is included in the sample
for more than eight quarters)
Type of Review: Regular Review
Affected Public: Manufacturing corporations with assets of $250
thousand or more and mining and wholesale and retail trade corporations
with assets of $50 million or more.
Estimated Number of Respondents:
Form QFR-101--3,475 per quarter, 13,900 annually
Form QFR-102--575 per quarter, 2,300 annually
Form QFR-101A--4,500 per quarter, 18,000 annually
Form QFR-103--1,225 per quarter 4,900 annually
Estimated Time Per Response: The average for all respondents is
about 2.1 hours. For companies completing form the QFR-101 or QFR-102,
the range is from less than 1 to 10 hours, averaging 2.9 hours. For
companies completing form QFR-101A, the range is less than 1 hour to 3
hours, averaging 1.2 hours. For companies completing form QFR-103, the
range is from 1 to 4 hours, averaging 2.4 hours.
Estimated Total Annual Burden Hours: The total annual burden for
fiscal years 1997 and 1998 is estimated to be 78,600 hours.
Estimated Total Annual Cost: $2,950,000
Respondents' Obligation: Mandatory
Legal Authority: Title 13 United States Code, Sections 91 and 224
IV. Request for Comments
Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information shall have practical
utility; (b) the accuracy of the agency's estimate of the burden
(including hours and cost) of the proposed collection of information;
(c) ways to enhance the quality, utility, and clarity of the
information to be collected; and (d) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques or other forms of information
technology.
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval of this information
collection; they also will become a matter of public record.
Dated: February 18, 1997.
Linda Engelmeier,
Departmental Forms Clearance Officer, Office of Management and
Organization.
[FR Doc. 97-4398 Filed 2-21-97; 8:45 a.m.]
BILLING CODE 3510-07-P
