1 / 11

Federal Investments Seminar

Federal Investments Seminar. INVESTMENT/BORROWING/ FEDERAL CREDIT REFORM SUBCOMMITTEE Presented By: BILL FLEMING MAY 17, 2005. BACKGROUND. Subcommittee set up to address intragovernmental differences for the following Reciprocal Categories (RCPs): Investments

Download Presentation

Federal Investments Seminar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Federal Investments Seminar INVESTMENT/BORROWING/ FEDERAL CREDIT REFORM SUBCOMMITTEEPresented By:BILL FLEMING MAY 17, 2005

  2. BACKGROUND • Subcommittee set up to address intragovernmental differences for the following Reciprocal Categories (RCPs): Investments • FMS developed this plan “to sufficiently identify and track intragovernmental material differences reported to FMS by the Federal Program Agencies (FPAs)”.

  3. Background (continued) Borrowing

  4. Background (continued) • Current members include: • Ella Hughes-Bailey - Treasury FMS • Richard Bennett - EPA • Stephanie Brown - Treasury - BPD • Susan.Chapman - Treasury - BPD • Scott Chayette - DOE • Trina Cook - Treasury - BPD • Dan Decena – Treasury/ office of the fiscal assistant secretary • William Fleming - Education • Veronica Freeman - DOL • Jeanne Johnson-Education OCFO • Gail Matthews - Education OCFO • Eileen Parlow - FASAB • Sheldonna Proctor - EPA • Keith Rake - Treasury - BPD • Wendy Stover-HUD • Hayward Trapps -Treasury FMS • Kristina Kaminski - SSA • Letha, Holliday - SSA

  5. Future Actions • Recruit additional members from agencies affected by investment/borrowing issues • Review Intragovernmental Fiduciary Confirmation System (IFCS) reports for agencies with differences below current studies threshold to determine source of differences. • Classify into groups already defined • Discuss specific agency situations with BPD/FFB and agency personnel • Produce narrative explaining differences by agencies

  6. Future Actions (continued) • Detail current and future corrective actions • Government-wide • Individual agency

  7. Current Conclusions • Bring Accounting Methodologies into Agreement • Accounting for Premiums and Discounts (Effective Interest, Level Yield, Straight Line, Etc.) • Zero Coupon Bonds Amortization Methodology (Effective Interest vs. Mark-to-Market) • BPD staff reviewed the problem and issued a recommendation • Treasury is currently reviewing the paper • OMB Mediation Process for Unresolved Differences

  8. Current Conclusions – (continued) • Timing Differences • Quarterly Borrowing Differences - Encourage agencies to accrue interest expense/payables at least quarterly (possibly using BPD accruals as the basis of the entry) • Need to examine year-end cutoffs

  9. Current Conclusions – (continued) • Deposit Funds • Researching Accounting Guidance • Recommend changes to allow such investments to be coded as non-federal • Recommend that additional Deposit Fund guidance be added to the Fiduciary Business Rules

  10. Current Conclusions – (continued) • Alleviating Accounting/Coding Errors • Largest class of differences • Probably the easiest to materially reduce • For most agencies, federal balances for the subject SGL accounts are almost exclusively Treasury (TP 20). • Adequate information exists through IFCS and FedInvest.com and other BPD reports available to trading partners • FACTS I file is simple and can be edited manually if necessary • IFCS/FACTS I/Quarterly “F” file assistance is readily available from Treasury • Need to address quality control issues at individual agencies

  11. Current Conclusions – (continued) • Alleviating Accounting/Coding Errors (continued) • Send special report to FACTS I/ ”F”/GFRS preparer before transmission showing expected balances by SGL, Fund, and trading partner. • IRAS provides feedback on IRAS/IFCS differences after the fact • Close BPD/FFB IFCS window before quarterly “F” file windows to allow for additional oversight before reporting (IFCS window does close before the FACTS I window at year end.

More Related