2077 Uniform method for determining net losses and gains from divestitures required by the act of July 2, 2010 (P.?L. 266, no. 44) for the period of July 1, 2010, through June 30, 2011

OFFICE OF THE BUDGET

Uniform Method for Determining Net Losses and Gains from Divestitures Required by the Act of July 2, 2010 (P. L. 266, No. 44) for the Period July 1, 2010, through June 30, 2011

[41 Pa.B. 6477]
[Saturday, December 3, 2011]

 Section 9(2) of the Protecting Pennsylvania's Investments Act of July 2, 2010 (P. L. 266, No. 44) (Act 44 of 2010) (72 P. S. § 3837.9(2)) requires the Secretary of the Budget to annually establish, in consultation with each of the public funds that are subject to Act 44 of 2010 (State Employees' Retirement Fund, Public School Employees' Retirement Fund, Pennsylvania Municipal Retirement Fund, any fund of which the State Treasurer is the custodian), a uniform method for determining each fund's net gains, net losses, costs and expenses when the funds sell, redeem, divest or withdraw from the funds' direct holdings in the securities of companies that are on the Scrutinized Companies with Activities in Iran List or on the Scrutinized Companies with Activities in Sudan List.

 Each fund subject to Act 44 of 2010 shall calculate its itemized budget request for reimbursement for the period July 1, 2010, through June 30, 2011, as follows:

 • Each fund's actual realized net gain or net loss during the reporting period from any sale, redemption, divestiture or withdrawal of each of the fund's direct holdings in the securities of companies that are on the Scrutinized Companies with Activities in Iran List or are on the Scrutinized Companies with Activities in Sudan List, or both, during the 26-month divestiture period mandated by section 4(c) of Act 44 of 2010 shall be calculated for each trade of these company's securities by subtracting the fund's actual cost basis in the security from the price at which the fund sold, redeemed, divested or withdrew from the security. The net gain or net loss of each trade shall be reported in chronological order from oldest to most recent trade on the form marked Attachment 1, ''Actual Amount Realized on the Sale of Securities.'' The funds shall report the trades of each company in United States dollars, and shall group together each company's trades in alphabetical order.

 In the event that a trade was not conducted in United States dollars and that the fund has not previously converted that trade into United States dollars, the fund must convert the amount of the trade from the currency in which the trade took place into United States dollars on the date of the trade. The fund shall first convert its actual costs basis in the security on the date(s) of purchase into United States dollars, shall next convert the price received on the date of sale into United States dollars, and shall then compute in United States dollars the net gain or net loss on the sale in the manner set out previously.

 If the securities of a company sold on a given date were acquired or purchased by the fund on different dates with different acquisition or purchase prices, the fund may average the original acquisition or purchase prices of that company's security sold on that given date, and then use that average as the fund's actual cost basis in the security to determine its net gain or net loss resulting from the trade of that security.

 • Each fund shall report on a form marked Attachment 2, ''Actual Expenses Incurred Related to the Administration of Act 44,'' the personnel costs the fund directly incurred by each employee that performed duties and responsibilities connected to Act 44 of 2010 for the fund. The fund may report each employee's personnel cost (including paid benefits) either as a percentage of the gross salary paid to the employee, or by multiplying the number of hours or parts of hours that the employee worked to further the fund's duties and responsibilities under Act 44 of 2010 by the employee's hourly rate of pay.

 • Each fund may report on a form marked Attachment 2, ''Actual Expenses Incurred Related to the Administration of Act 44,'' the cost of postage, office supplies, and other similar office administration costs incurred by the fund to carry out its duties and responsibilities under Act 44 of 2010.

 • Each fund shall report on a form marked Attachment 2, ''Actual Expenses Incurred Related to the Administration of Act 44,'' the amounts paid by the fund for software and software licenses, and to consultants and other third parties retained by the fund, to assist the fund in complying with Act 44 of 2010, including costs paid to: identify companies that must be placed on the Scrutinized Companies with Activities in Iran List or on the Scrutinized Companies with Activities in Sudan List; monitor the business activities of companies on the Scrutinized Companies with Activities in Iran List or on the Scrutinized Companies with Activities in Sudan List; and determine when a company must be removed from the Scrutinized Companies with Activities in Iran List or the Scrutinized Companies with Activities in Sudan List. The fund shall report the name of the software company or licensor, or consultant or other third party, and shall report the amount paid to the company, licensor, or third party during the reporting period per invoice issued by the company, licensor or third party to the fund. In the event that payments were not made to a consultant, licensor or third party in United States dollars and that the fund has not previously converted those payments into United States dollars, the fund must convert the amount of each payment from the currency in which the trade took place into United States dollars on the date of each payment.

 Each fund shall submit its itemized budget request (including completed Attachments 1 and 2) for reimbursement under Act 44 of 2010 for the period July 1, 2010, through June 30, 2011, to the Office of the Budget for transmission to the General Assembly in the same form and manner that all other budget requests are submitted to the Office of the Budget as part of the annual budget process, and the amount of each request shall be the total amount of each fund's net losses plus the fund's costs and expenses for the reporting period offset by any net gains experienced by the fund.

Uniform Method for Determining Net Losses and Gains
Under Act 44 of 2010 for the Period July 1, 2010, through June 30, 2011

Act 44 of 2010 Divestiture Reimbursement Request

Agency Name: _________________
FISCAL PERIOD:   From ______
To ______

Actual Amount Realized on the Sale of Securities

All sales during the fiscal period that are applicable to Act 44 divestment must be reported. Actual Gain/(Loss) is automatically calculated by subtracting the original cost basis from the net proceeds from sale.

Date Security Sold	Security SEDOL or CUSIP	Security Name	Number of Shares	Original Cost Basis	Net Proceeds from Sale	Actual Gain/(Loss)
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
						$      -
Totals				$        -	$        -	$      -

Note: Net Proceeds from Sale should include any transaction fees that were incurred as part of the divestiture. All reported amounts must be supported by investment statements.

Actual Expenses Incurred Related to the Administration of Act 44

List all actual expenses incurred during the fiscal period related to the administration of Act 44 by major category. An example of a major category includes salaries of staff or consulting services. Supporting documentation detailing the expenses must be attached to this form when submitting for reimbursements.

Expense Category	Description	Amount
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
		$      -
	Subtotal	$      -
	Total Gain/Loss and Actual Expenses	$      -

Agency	DATE:
APPROVED: _________________	_________________
Office of the  Budget	DATE:
APPROVED: _________________	_________________

CHARLES B. ZOGBY, 
Secretary

[Pa.B. Doc. No. 11-2077. Filed for public inspection December 2, 2011, 9:00 a.m.]