2. Government Agency Investment Services Federal Investments Branch March 2012

3. OPDA – Organizational Chart Office of Assistant Commissioner Division of Accounting Operations Division of Systems and Program Support Division of Federal Investments Trust Funds Management Branch Federal Investments Branch Where we fit in the organization…. March 2012

4. Account for and report on the Government Account Series (GAS) Investment Program, and to document and ensure compliance with statutory authorities and other Treasury policies Manage certain Federal Government Trust Funds on behalf of the Secretary of the Treasury who is designated by law or by express agreement as the managing trustee Formulate accounting policies and standards DFI Responsibilities

5. Only funds with statutory authority can invest in the Government Account Series securities. Treasury has preferred language that should be included in the legislation authorizing the fund to invest. Guidelines for the Government Account Series program are in the Department of the Treasury’s Operating Circular. Regulatory Function

6. InvestOne – Commercial off the shelf investment accounting system (mainframe) InvestOne Enterprise – Browser-based front-end to access InvestOne. FedInvest – Web-based front-end designed to provide customers access to selected portions of InvestOne We also use mainframe jobs and desktop COBOL programs for our daily processing and reports. Our Systems

7. Establishment of an Investment Fund The legislation then receives Legal review. Before a fund can invest, the program agency must request that OMB and FMS establish it in their systems. Once approved, FIB sets up the fund in InvestOne and investing can begin.

8. Receipts from the public Funding Government Investment Accounts Congressional appropriations of general revenues

9. Treasury-Managed: Social Security funds, Highway Trusts, Unemployment Trust Fund (UTF), etc. Agency-Managed: Bank Insurance Fund (FDIC), Bureau of Land Management funds (Dept. of Interior), etc. Franchise: Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and US Courts Types of Accounts

10. The agency determines how much to invest and in which securities to invest. The agency must analyze the purpose, funding sources and disbursement needs of the program. FIB assists by providing the agency with a listing of available securities. Investment Strategy

11. Mirror-Image Market-Based* Specials: Investment Options Market-Based Bills (typically mature in 13, 26, & 52 weeks) Market-Based Notes (Mature in 10 years or less) Market-Based Bonds (Mature in 30 years or less) Market-Based TIPS (Mature in 30 years or less) One Day Certificates (Mature next business day) (*Securities are traded only with Federal Investments Branch. They cannot be bought/sold between agencies.) Zero Coupon Bonds (ZCB’s)

12. Par Value Securities are issued only to agencies whose legislation gives them permission to invest in them. Par Value Securities

13. Provide Investment Funds maximum safety A wide range of maturities Liquidity Prevent Investment Funds from disrupting the public market for Government debt Reduce transaction costs Allow for better Government (including Treasury) oversight Advantages of Non-marketable Investment Securities

14. Rates for notes, bonds, and TIPS * are set by Treasury auction process. Rates for one day investments are based on the coupon-equivalent yield to maturity on the shortest regularly issued Treasury security, which is currently the 4-week bill. Calculations for rates for par value securities are established by legislation. (*Treasury Inflation Protected Securities) Interest Rates for Securities

15. One Day and par value securities are priced at “par” or $100. Bill, note, bond, and TIPS prices are calculated by BPD and ODM based on a survey of Treasury securities dealers taken by the FRB of New York between approximately 11:15 and 11:45 am each business day. Differences between BPDs calculation and those obtained from ODM’s price files are sent to ODM for certification. ZCB prices are requested from ODM by 11am as needed. Pricing is calculated based on a comparable STRIPS security from sources obtained through Bloomberg and Trade Web around noon. BPD can price ZCBs using Bloomberg in a contingency. Pricing Securities

16. ODM/OFP PARS Invest One GWA (IPAC/CTA) Daily Information goes to PARS, FMS, and Treasury

17. PARS Federal Investments Branch Zero Coupon Bond market valuation from FRB NY DTS FMS 1166 Interest Cost by Fund, Investment Funds Summary Holdings Report, Principal Outstanding Detail Report Customers Statements of Account and Accrual Reports Reports published on website Monthly Reporting & Reconciliation

18. FIB plays an important role in ensuring the accuracy of the FR by working to identify and reconcile differences in the intragovernmental eliminating entries. This includes working with the – Intragovernmental Reporting and Analysis System (IRAS) Intragovernmental Fiduciary Confirmation System (IFCS) Governmentwide Financial Report System (GFRS) Financial Report of the US Government (FR)

19. FIB serves on the Treasury Intra-Governmental Fiduciary Committee (better known as the Fruit Group). This group consists of members from OPDA, FMS, and Treasury. It works to reconcile and resolve elimination differences and improve the accuracy of the government’s FR. Fruit Group

20. Processed redemptions and investments each averaging $172 billion a day Processed redemptions and investments each over $43 trillion during the year Paid over $191 billion in interest Processed over 114,000 transactions There are currently 239 approved funds. During Fiscal Year 2011, we….

21. Monthly Statement of the Public Debt (MSPD) http://www.treasurydirect.gov/govt/reports/pd/mspd/mspd.htm

22. MSPD Detail

23. Daily Treasury Statement (DTS) http://fms.treas.gov/dts/index.html

24. Find more information about Federal Investments… On the web at www.TreasuryDirect.gov, then select Government.www.TreasuryDirect.gov