Page:United States Statutes at Large Volume 92 Part 2.djvu/388

 9 2 STAT. 1668

PUBLIC LAW 95-497—OCT. 21, 1978 determined for such fiscal year that the city is making substantial progress toward operating under expense budgets which do not show a deficit. (2) PRINCIPLES TO BE APPLIED UNDER PARAGRAPH (i). — The Sec-

Ante, p. 461.

retary shall make the determination required under paragraph (1) on the basis of— (A) whether o r not the requirements of paragraph (5) of section 103 of the New Y o r k City L o a n Guarantee Act of 1978 (as such Act is i n effect on the date of enactment of this Act) are being met, and (B) the annual audited financial statements of the city prepared in accordance with generally accepted accounting principles (including principles applicable to municipal governments which provide for a clear division between 'operating outlays and revenues on the one h and and capital ' >•> expenditures and revenues on the other h and) and in accordance with generally accepted auditing standards, (d) P L A N S H A VI N G NEGATIVE C A S H F L O W. —

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(1) IN GENERAL.—An acquisition of any city indebtedness by a city plan does not meet the requirements of this section if the plan would have a negative cash flow for the fiscal year of acquisition. (2) SPECIAL RULES.—For purposes of paragraph (1) — (A) cash flow shall be determined by the plan for each fiscal year, and also whenever the plan enters into an agreement which must be submitted to the Secretary under section 'if- n I 1 (c) (including any amendment of, or waiver under, such an agreement), (B) cash flow shall be determined in the same manner as -«n •'; provided in paragraph (3) of subsection (e), and (C) the effect of completed and proposed acquisitions during the plan year on the cash flow shall be taken into account. (e) REPORTS.— (1) A N N U A L REPORT BY PLANS ON RECEIPTS, DISBURSEMENTS,
 * i;; HOLDINGS, AND CASH FLOW.—

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(A) A N N U A L REPORT.—An acquisition of any city indebtedness by any participating city pension plan does not meet the requirements of this section unless, for each preceding plan year beginning after June 30, 1978, and ending more than 8 months and 15 days before the date of the acquisition, the plan has submitted a n annual report which meets the requirements of paragraph (2) to the Secretary and to the a p p r o p r i a t e committees of the Congress. (B) PROJECTED CASH FLOW.—An acquisition of city indebt-

edness by any participating city pension plan for any plan year does not meet the requirements of this section unless the committees of the Congress a statement showing the projected cash flow for the plan year. (2) A N N U A L REPORT BY INDEPENDENT PUBLIC ACCOUNTANT.—An
 * r T plan has submitted to the Secretary and to the appropriate

annual report does not meet the requirements of this paragraph unless it—

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