This chapter prescribes the responsibilities, policies, and procedures that the Department of the Treasury (Treasury) has established for government accounts on the books of the Treasury for which the Secretary of the Treasury (Secretary) has been authorized or directed by law to invest. These accounts are referred to in this chapter as “Government Investment Accounts.”

The Secretary has delegated to the Bureau of the Fiscal Service (Fiscal Service) the Secretary’s responsibilities for investing monies in Government Investment Accounts. This chapter applies to Treasury and the federal agencies that have programmatic responsibility for Government Investment Accounts. These are referred to in this chapter as “Federal Program Agencies.”

When a Federal Program Agency submits to Treasury an instruction that Treasury invest any monies in, or redeem any investments held by, a Government Investment Account, that Federal Program Agency is deemed to have agreed to all the provisions of this chapter.

Treasury and the Federal Program Agency for a particular Government Investment Account may agree to supplement or supersede the provisions of this chapter by means of a written Memorandum of Understanding (MOU) between Treasury and the Federal Program Agency. Anywhere that federal statute or an MOU directly conflicts with this chapter, the statute or MOU will prevail.

This chapter applies to some “Deposit Fund Accounts” in which the Secretary holds the monies as a banker, fiscal agent, custodian, or trustee for the owner of the monies, or holds them temporarily until ownership is determined. 

At the request of a Federal Program Agency a Deposit Fund Account may be established for the investment of monies owned by persons or entities other than the United States Government. If there is no federal statute establishing a Deposit Fund Account, Treasury will develop a separate agreement with the Federal Program Agency to establish a Deposit Fund Account on the books of the Treasury to hold the monies. Treasury will also develop a separate MOU between Treasury and the Federal Program Agency to communicate the policies and procedures of Treasury regarding the Deposit Fund Account and describe the respective responsibilities of Treasury and the Federal Program Agency relating to the account.

This chapter does not apply to securities issued by the Federal Financing Bank.

The non-enforcement by Treasury of any term or condition of this chapter is not a waiver of such term or condition and does not prevent subsequent enforcement by Treasury of any term or condition of this chapter.

Many federal statutes and some treaties have established specific accounts on the books of the Treasury, generally to serve as accounting devices for tracking the receipts and disbursements of the federal programs authorized. These statutes and treaties generally require the Secretary to transfer specifically identified monies into (i.e., to “fund”) these established government accounts.

Certain of these statutes and treaties authorize, and some others require, the Secretary to invest all or portions of the monies in the accounts. Many of the statutes authorizing or requiring investment also expressly authorize the Secretary to issue obligations of the United States (i.e., Treasury securities) directly to these Government Investment Accounts as investments. Chapter 31 of Title 31 of the United States Code generally authorizes the Secretary to issue obligations of the United States to Government Investment Accounts for which statutes expressly authorize investment without specific authorization for the Secretary to issue obligations to the account. 31 U.S.C. § 3121 also authorizes the Secretary to determine the terms and conditions of the offers and the obligations. Under these statutes, the Secretary issues obligations of the United States (i.e., Treasury securities) to Government Investment Accounts as investments.

31 U.S.C. § 3513 authorizes the Secretary to develop a coordinated system of accounting and financial reporting and directs each federal agency to give the Secretary of the Treasury such financial reports and information as the Secretary requires in preparing the required financial reports. Several statutes, such as 26 U.S.C. § 9602 (a) , require the Secretary to prepare reports on the financial operations of the United States Government and of particular Government Investment Accounts.

4325.10—Investment Authority

Except for Deposit Fund Accounts, the Secretary requires legal authority, generally from statute or treaty, to invest government monies held in a government account. Treasury will review relevant statutes and treaties to determine whether sufficient legal authority exists for the Secretary, acting through Fiscal Service, to allow investments. If investment authority exists, Fiscal Service will also determine the permitted investments for the account and any restrictions or requirements that may apply to the investments. Completion of the review occurs prior to the establishment of the account within FedInvest, as described in Section 4325.40 of this chapter.

A specific statute directing the Secretary to invest monies in a Deposit Fund Account is not a requirement. Completion of any MOUs for Deposit Fund Account establishment and to communicate the policies, procedures, and responsibilities of Treasury and the Federal Program Agency relating to the account occurs prior to the establishment of the account within FedInvest, as described in Section 4325.40 of this chapter.

4325.20—Obtaining an account identification code from OMB for Government Investment Accounts

Upon presidential approval of congressionally enacted legislation or Senate ratification of a treaty that establishes a Government Investment Account, Federal Program Agencies should contact the applicable Office of Management and Budget (OMB) representative to obtain an account identification code to establish the new account within OMB’s budget system. Federal Program Agencies should refer to OMB Circular A-11 Section 79 (The Budget Data System) for directions on how to obtain an OMB account identification code for the new account. The Treasury Account Symbol (TAS) assigned by Treasury, as described in Section 4325.40 of this chapter, will be based on this identification code.

4325.30—Establishing Government Investment Accounts within CARS

After OMB has assigned an account identification code, Federal Program Agencies must submit a letter to Fiscal Service requesting the assignment of a TAS to establish a Government Investment Account within the Central Accounting Reporting System (CARS). Federal Program Agencies must refer to TFM Volume I Part 2 Chapter 1500 for directions on how to obtain a TAS for the new account and for related contact information. Each TAS is published in the Federal Account Symbol and Titles (FAST) Book.

Fiscal Service will notify Federal Program Agencies of the Treasury-assigned TAS, the official account title, and will confirm the related statutory authority for the account.

Federal Program Agencies must segregate investment transactions from normal receipt and expenditure transactions in CARS. Federal Program Agencies must request Fiscal Service to assign Business Event Type Codes (BETCs) to Government Investment Accounts to enable proper reporting. For assistance with BETC assignment, Federal Program Agencies should contact the Budget Reports Branch (see contacts). For additional information on BETCs, refer to the TFM BETC Guidance.

4325.40—Establishing Government Investment Accounts in FedInvest

FedInvest is the web-based application designed to provide Federal Program Agencies the ability to input investment activity and manage portfolios of Government Investment Accounts. It is the responsibility of Federal Program Agencies to notify and request Fiscal Service to establish Government Investment Accounts in FedInvest. This request must be delivered by Federal Program Agencies via email to FedInvestor@fiscal.treasury.gov, and must include the TAS assigned by Fiscal Service. The request must also include the names, email addresses, and telephone numbers of the Chief Financial Officer and any other necessary Federal Program Agency points of contact.

Once Fiscal Service and the other involved Treasury offices conclude that the Secretary is authorized or required to invest monies in a Government Investment Account and any required MOUs and/or other authority documentation are finalized, Fiscal Service will then establish the account in FedInvest.

If a statute or treaty authorizing or requiring the Secretary to invest monies in a Government Investment Account also establishes special reporting or accounting requirements for the account, such that modification or enhancement of FedInvest is required, Federal Program Agencies must work with Fiscal Service to establish mutually acceptable arrangements for the modifications or enhancements.

Federal Program Agencies must identify individuals that need access to FedInvest for Government Investment Accounts. New users must fill out the FedInvest Access Request Form. The user and supervisor are required to sign the form and email it to FedInvestor@fiscal.treasury.gov. For assistance with FedInvest, Federal Program Agencies should contact the Federal Investments and Borrowings Branch (see contacts).

4330.10—Funding Government Investment Accounts from Receipts from the Public

Certain statutes authorize Federal Program Agencies to retain user fees, royalties, fines, penalties, insurance premiums, donations, and other similar receipts to support the federal program that produced the receipts. Operationally, these receipts are frequently collected by Federal Program Agencies through a network of depositary accounts maintained by the federal government in commercial depositary institutions and Federal Reserve Banks throughout the country. Initially, Federal Program Agencies deposit these receipts into the General Fund of the Treasury and the funds are not credited directly into Federal Program Agency accounts. The commercial depositary institutions and the Federal Reserve Banks report information on the collections deposited into the General Fund of the Treasury to Fiscal Service through a deposit reporting system.

Federal Program Agencies have access to Treasury systems and can view daily information on deposits made using Agency Location Codes (ALCs). Federal Program Agencies must classify deposits to Government Investment Accounts in any internal Federal Program Agency accounting systems.

4330.20—Funding Government Investment Accounts from Congressional Appropriations of General Revenues

Appropriated monies will not be invested unless required by statute. Certain statutes appropriate general revenues from the General Fund of the Treasury for deposit into specific accounts established on the books of the Treasury by statute. These accounts generally serve as accounting devices for tracking the receipts and disbursements of the federal programs authorized by statute. Treasury will review the annual appropriation acts and any supplemental appropriation act enacted by United States Congress (Congress) to determine funding requirements approved by Congress. Fiscal Service will enter Warrants into CARS to transfer the appropriated monies from the General Fund of the Treasury to the respective Government Investment Accounts on the books of the Treasury and compare the appropriation amounts to available OMB information. Federal Program Agencies may obtain copies of processed Warrants by accessing CARS. Federal Program Agencies must record and account for the information in any internal Federal Program Agency accounting systems.

Federal Program Agencies must notify Fiscal Service of any legislation that includes an appropriation for its federal program and submit a letter to Fiscal Service requesting an appropriation Warrant and cite the legal authority. Federal Program Agencies should refer to TFM Volume I Part 2 Chapter 2000 for related guidance and Fiscal Service contacts.

At times, Congress authorizes or requires by law a movement of monies from one government account to another. Because such a transfer does not have an impact on the federal budget surplus or deficit and does not involve an Outlay of funds from the transferring account, the transfer is referred to as a Non-Expenditure Transfer (NET). Federal Program Agencies must use the CARS Agency Transaction Module (ATM) NET application to process NET transactions. Federal Program Agencies should refer to TFM Volume I Part 2 Chapter 2000 for directions on how to complete and submit a NET.

Fiscal Service will review the transfer authorization for validity before certifying the transfer and transmitting the data to its central accounting and financial reporting system for posting to the transferee accounts. A copy of the processed NET is stored in CARS. Federal Program Agencies must record and account for the information in any internal Federal Program Agency accounting systems.

4330.30—Funding Government Investment Accounts from Advances

Investments must not be made with borrowed funds, including repayable advances. If Federal Program Agencies have both borrowed funds and invested funds on the same day with both maturing the following Business Day, Treasury will decrease the Interest Rate on the invested funds, to the extent that the invested funds do not exceed the amount of the borrowed funds, so that the Interest Rate on the invested funds equals the Interest Rate on the borrowed funds. If the Interest Rate on the invested funds is less than the Interest Rate on the borrowed funds, the Interest Rate on the invested funds will not increase. This will be necessary to preclude any arbitrage. Generally, Federal Program Agencies must disinvest before requesting to borrow.

4335.10—Description of Government Account Series (GAS) Securities

GAS Securities offered to Government Investment Accounts as investments are non-Marketable Treasury Securities that are direct obligations of the United States and offered exclusively in book-entry form. For investments in Government Investment Accounts through Fiscal Service, Federal Program Agencies may only invest in GAS Securities. There are two categories of GAS Securities: “Market-Based” GAS Securities, and “Par-Value” GAS Securities.

4335.20—Description of Market-Based GAS Securities

Mirror-Image Market-Based GAS Securities: A Mirror-Image Market-Based GAS Security is a Treasury Security that is identical (except for transferability) to a particular outstanding Marketable Treasury Security in terms of Interest Rate, interest payment dates (if any), call dates (if any), and Maturity Date. Outstanding Marketable Treasury Securities include the following types of securities:

4335.30—Description of Par-Value GAS Securities

A Par-Value GAS Security is a GAS Security issued with an Interest Rate applied to its Par Amount, purchased at Par, and redeemed at Par plus Accrued Interest on or before the Maturity Date. Interest Rates on Par-Value GAS Securities are determined by Treasury according to statute-specified formula. Interest on Par-Value GAS Securities is payable on June 30, December 31, and upon redemption prior to or on the Maturity Date. Reference Section 4335.60 of this chapter for Treasury’s policy regarding investment of monies in Market-Based GAS Securities versus Par-Value GAS Securities based on the statutory language.

4335.40—Responsibilities Relating to the Development of an Investment Strategy for Government Investment Accounts

Federal Program Agencies should develop a strategy for the investment of monies not required to meet current federal program needs. Federal Program Agencies are generally in the best position to estimate federal program disbursement needs. Federal Program Agencies should, at least annually, estimate the timing and amounts of federal program disbursements over the following year, and develop a strategy for purchasing GAS Securities in principal amounts and having Maturity Dates or interest payments that approximately coincide with those disbursement estimates, and hold investments to the Maturity Dates. Early redemption of Market-Based GAS Securities should not be a normal or regularly recurring Federal Program Agency process.

4335.50—Responsibilities Relating to the Determination of Amounts Available for Investment and Amounts to be Invested

Monies may only be invested by Federal Program Agencies in Government Investment Accounts if those monies are available for investment. Monies are available for investment when credited to the General Fund of the Treasury and available for use by Treasury. Federal Program Agencies generally may consider funds available on the day of deposit when deposited via Fedwire or Automated Clearing House (ACH) through the Treasury Lockbox Network. Federal Program Agencies should refer to TFM Volume I Part 5 Chapter 4600 for more information about the Treasury Lockbox Network. When Federal Program Agencies deposit funds into a Treasury account at a commercial financial institution designated by Treasury as a depositary institution or at a Federal Reserve Bank using an SF 215, “Deposit Ticket,” funds generally are available two days after the date of deposit. Federal Program Agencies should refer to TFM Volume I Part 5 Chapter 6500 for more information about the availability of deposited funds.

Federal Program Agencies must determine the amount of money available for investment in Government Investment Accounts. This is the case even when the statute establishing the Government Investment Account provides that it is the Secretary of the Treasury who is to determine the amount to be invested or is silent as to who is to determine the amount in excess of program needs.

4335.60—Responsibilities and Limitations Relating to the Selection of the Investment Securities

Federal Program Agencies must select the particular GAS Securities in which monies in Government Investment Accounts are to be invested.

For Government Investment Accounts with authority to invest in Market-Based GAS Securities, Federal Program Agencies may select any appropriate Market-Based GAS Security available in FedInvest. Except for Zero-Coupon Bond GAS Securities, all Market-Based GAS Securities are created in FedInvest and available for investment when Treasury auctions the Marketable Treasury Securities. Zero-Coupon Bond GAS Securities may be established upon Federal Program Agency request and based on marketable pricing and determination of availability by Treasury’s Office of Debt Management (ODM). Prices for Market-Based GAS Securities are also available to Federal Program Agencies in FedInvest.

Prior to any initial Zero-Coupon Bond GAS Security investment for a Government Investment Account, Federal Program Agencies must contact Fiscal Service to modify security options to include Zero-Coupon Bond GAS Securities. Federal Program Agencies may select any outstanding marketable Treasury STRIPS interest or principal component that has five or more years remaining to the Maturity Date.

Fiscal Service may issue a Zero-Coupon Bond GAS Security that is identical (except for transferability) to the selected marketable Treasury STRIPS interest or principal component. When requesting investment in a Zero-Coupon Bond GAS Security, Federal Program Agencies must select and provide to Fiscal Service the Committee on Uniform Security Identification Procedures (CUSIP) code of the chosen marketable Treasury security. Fiscal Service will use the same CUSIP code to identify the Market-Based Zero-Coupon Bond GAS Security. The initial purchase of any Zero-Coupon Bond GAS Security for a Government Investment Account must be in an amount of at least $50 million, or in increments of $1 million above $50 million. Fiscal Service may offer additional amounts of a Zero-Coupon Bond GAS Security, provided the time remaining to the Maturity Date and minimum incremental requirements are met at the time the additional amount is purchased.

Treasury reserves the right to reject requests to invest in Zero-Coupon Bond GAS Securities. Federal Program Agencies may not request Fiscal Service to invest in more than five Zero-Coupon Bond GAS Securities on any one Business Day. Once a request to invest in a Zero-Coupon Bond GAS Security is received by Fiscal Service, Federal Program Agencies cannot cancel the investment request.

Federal Program Agencies may instruct Fiscal Service to invest in a Par-Value GAS Security only when the statute governing the Government Investment Account requires or when Treasury determines that the statute establishes a strong presumption in favor of investment in Par-Value GAS Securities.

If statutory investment authority allows for certain investments subject to a public interest determination of the Secretary of the Treasury, such determination will be at the sole discretion of the Secretary. The public interest is broader than the beneficiary fund’s interest. The Secretary will also consider, among other variables, the interest of taxpayers generally and the effects on the U.S. economy.

4335.70—Responsibilities and Procedures Relating to Investment Instructions

Fiscal Service will invest monies in Government Investment Accounts by issuing GAS Securities to the accounts pursuant to investment instructions received by Fiscal Service from Federal Program Agencies and in accordance with this chapter and Treasury's policies. The required method for Federal Program Agencies to submit investment instructions is by using FedInvest. FedInvest’s hours of operation are Business Days Monday through Friday 6:00 a.m. to 9:00 p.m. (Eastern Time). FedInvest provides Federal Program Agencies with account balances, transactions, various reports, current and historical pricing information, and a list of available securities for assistance in Federal Program Agency management of Government Investment Account portfolios.

In addition to specifying the particular GAS Securities in which the monies are to be invested, Federal Program Agencies must specify, via FedInvest, the amount of monies to be invested, and the date on which the monies are to be invested. Federal Program Agencies must also ensure that the person submitting the investment instruction is an official of the applicable Federal Program Agency authorized to submit investment instructions to Fiscal Service on behalf of that Federal Program Agency and certify as to the availability of monies in the applicable Government Investment Account for investment.

Any submission by Federal Program Agencies of investment instructions for purchases of all GAS Securities other than Zero-Coupon Bond GAS Securities must occur in FedInvest no later than 3:00 p.m. (Eastern Time) on the date of the intended investment. Any submission by Federal Program Agencies of investment requests for purchases of Zero-Coupon Bond GAS Securities must occur in FedInvest no later than 11:00 a.m. (Eastern Time) on the date of the intended investment. 

FedInvest allows input of investment instructions for future-dated purchases of Mirror-Image Market-Based GAS Securities and One-Day Certificate of Indebtedness GAS Securities up to 10 Business Days in advance of the effective dates for the transaction. Submission of investment instructions for the future-dated purchase of Zero-Coupon Bond GAS Securities and Par-Value GAS Securities are not permissible.

If the government securities market is open on a federal holiday, Fiscal Service will be open to receive investment instructions from Federal Program Agencies. Federal Program Agencies desiring to invest funds on such days will follow the operating procedures and deadlines prescribed by this chapter unless otherwise notified by Fiscal Service.

When the government securities market closes, no processing of investments in Mirror-Image Market-Based GAS Securities and Zero-Coupon Bond GAS Securities will occur. If Federal Program Agencies receive new deposits when the government securities market is closed, Federal Program Agencies may invest the amounts in a One-Day Certificate of Indebtedness GAS Security that matures the following Business Day and accrues interest at the rate in effect for the last preceding Business Day. However, in extenuating or unique circumstances, Fiscal Service may communicate different, specific instructions to Federal Program Agencies.

When part of the federal government experiences a temporary closure due to inclement weather or other reasons, Fiscal Service will generally remain open. However, if Fiscal Service is unable to process a properly received investment instruction due to temporary closure, Fiscal Service will process the transaction as soon as practicable thereafter. Such transactions will be processed by Fiscal Service as instructed by Federal Program Agencies in FedInvest, to include effective dates during the closure.

Federal Program Agencies should establish contingency procedures for conducting investment transactions with Fiscal Service in the event Federal Program Agency offices temporarily close due to local conditions. Federal Program Agencies should share such contingency plans with Fiscal Service.

Federal Program Agencies shall not engage in investment practices, including but not limited to security day-trading and large investment portfolio restructure, to take advantage of short-term Interest Rate fluctuations or to result in gains and losses for Government Investment Accounts.

4335.80—Pricing Investments in GAS Securities

ODM determines daily the purchase Prices for all outstanding, eligible Marketable Treasury Securities in accordance with the principles described in Appendix 1 of this chapter. Eligible Marketable Treasury Securities excludes Treasury bills that have less than one week remaining until the Maturity Date, Treasury floating rate notes that have less than three months remaining until the Maturity Date, and inflation-protected and fixed-principal Treasury notes and bonds that have less than six months remaining to the Maturity Date.

Fiscal Service will post the current day’s Prices in FedInvest as soon as the pricing is provided by ODM, generally around 1:00 p.m. (Eastern Time). When Federal Program Agencies request to invest in Zero-Coupon Bond GAS Securities, Fiscal Service will request purchase Price information for those securities from ODM. ODM will determine the purchase Prices for Zero-Coupon Bond GAS Securities in accordance with the principles described in Appendix 1 of this chapter and will send the requested pricing information to Fiscal Service by approximately 1:00 p.m. (Eastern Time).

The purchase Price for an investment in a Par-Value GAS Security is the face amount of the security (Par). If the statute authorizing the issuance of a Par-Value GAS Security specifies that the applicable Interest Rate is to be determined based on the market yield on outstanding Marketable Treasury Securities, ODM will determine the Interest Rate according to the formula prescribed in the statute. If the statute authorizing the issuance of Par-Value GAS Securities specifies that the applicable Interest Rate is to be determined based on the Interest Rates borne by outstanding Marketable Treasury Securities, Fiscal Service will determine the Interest Rate according to the formula prescribed in the statute.

4335.90—Investment Confirmations

Federal Program Agencies may confirm completion of GAS Security investment transactions in FedInvest. Confirmations will generally post following the availability of pricing on the day of the transaction and will include information on any Discount or Premium associated with the security purchase Price.

4340.10—Maturity Dates of GAS Securities

Fiscal Service will automatically redeem GAS Securities held in Government Investment Accounts on the stated Maturity Date. Federal Program Agencies are responsible for any reinvestment of proceeds via FedInvest. If Federal Program Agencies do not reinvest proceeds, Fiscal Service will credit the proceeds, including any earned interest, to Government Investment Accounts on the Maturity Date. Proceeds from Market-Based GAS Securities maturing on a non-Business Day are credited to Government Investment Accounts as of the Maturity Date but are processed on the following Business Day. Proceeds from Par-Value GAS Securities maturing on a non-Business Day are credited to Government Investment Accounts as of the Maturity Date but are processed on the preceding Business Day.

4340.20—Responsibilities Relating to Early Redemption Amounts

Federal Program Agencies should evaluate continuously the disbursement needs of the federal programs financed through Government Investment Accounts. Federal Program Agencies should practice an investment strategy to satisfactorily meet program disbursement needs through the automatic redemption of GAS Securities on the Maturity Date. However, Federal Program Agencies may instruct Fiscal Service to redeem one or more GAS Securities before the Maturity Date if the applicable program has immediate cash needs (cash needs arising within 60 calendar days of the redemption). Federal Program Agencies may not redeem GAS Securities before the Maturity Date if the applicable program does not have immediate cash needs. Federal Program Agencies must determine the amount of GAS Securities scheduled for redemption before the Maturity Date.

Early redemption of Market-Based GAS Securities should not be a normal or regularly recurring Federal Program Agency process. Federal Program Agencies may not redeem GAS Securities before the Maturity Date for the purpose of reinvesting in GAS Securities with higher Interest Rates.

4340.30—Responsibilities and Limitations Relating to Early Redemption Security Selection

If Federal Program Agencies conclude that Market-Based GAS Securities need to be redeemed before the Maturity Date to meet federal program disbursement needs, Federal Program Agencies must specify to Fiscal Service in FedInvest the particular Market-Based GAS Securities to be redeemed, subject to the policies and restrictions in this chapter.

Federal Program Agencies may not redeem before the Maturity Date any Market-Based GAS Security bill, note, bond, or Zero-Coupon Bond GAS Security before the close of the third Business Day after the day on which that GAS Security was issued.

Federal Program Agencies may request Fiscal Service to redeem before the Maturity Date a portion of a Zero-Coupon Bond GAS Security, but the portion must be at least $5 million in face amount or in an increment of $1 million above $5 million in face amount. Federal Program Agencies may not redeem a portion of a Zero-Coupon Band GAS Security before the Maturity Date if the redemption would reduce the face amount of the Zero-Coupon Bond GAS Security to less than $50 million. Federal Program Agencies must submit any requests for redemption of Zero-Coupon Bond GAS Securities no later than 11:00 a.m. (Eastern Time) on the date of the intended redemption. Treasury reserves the right to reject requests to redeem Zero-Coupon Bond GAS Securities. Federal Program Agencies may not request Fiscal Service to redeem before the Maturity Date more than five Zero-Coupon Bond GAS Securities on any one Business Day. Federal Program Agencies may not rescind any redemption request for Zero-Coupon Bond GAS Securities received by Fiscal Service.

If Federal Program Agencies conclude that Par-Value GAS Securities need to be redeemed before the Maturity Date to meet the federal program disbursement needs, Federal Program Agencies must specify to Fiscal Service in FedInvest only the dollar amount to be redeemed.

Upon receipt in FedInvest of a properly completed and submitted instruction to early redeem a specified dollar amount of Par-Value GAS Securities, Fiscal Service will process redemptions up to the specified dollar amount in the following order:

4340.40—Responsibilities and Procedures Relating to Redemption Instructions

Fiscal Service will redeem GAS Securities before the Maturity Date pursuant to redemption instructions received through FedInvest from Federal Program Agencies.

In addition to specifying the GAS Securities that are to be redeemed, Federal Program Agencies must specify the amount of monies to be redeemed, or face amount of GAS Securities that are to be redeemed, and the date on which the GAS Securities are to be redeemed. Federal Program Agencies must also ensure that the person submitting the redemption instruction is an official authorized to submit to Fiscal Service redemption instructions on behalf of that Federal Program Agency.

Any submission by Federal Program Agencies of redemption instructions for Mirror-Image Market-Based, Par-Value, and One-Day Certificate of Indebtedness GAS Securities must occur no later than 3:00 p.m. (Eastern Time) on the date of the intended redemption. Submission by Federal Program Agencies of redemption requests for Zero-Coupon Bond GAS Securities must occur no later than 11:00 a.m. (Eastern Time) on the date of the intended redemption. 

FedInvest allows input of instructions for future-dated redemptions of all Mirror-Image Market-Based GAS Securities up to 10 Business Days in advance of the effective dates for the transactions. Fiscal Service does not permit submission of instructions for the future-dated redemption of Zero-Coupon Bond GAS Securities or Par-Value GAS Securities.

If the government securities market is open on a federal holiday, Fiscal Service will be open to receive investment instructions from Federal Program Agencies. Federal Program Agencies desiring to redeem investments on such days will follow the operating procedures and deadlines prescribed by this chapter. If the government securities market is closed, Fiscal Service will not be open to receive redemption instructions from Federal Program Agencies.

When part of the federal government experiences a temporary closure due to inclement weather or other reasons, Fiscal Service will generally remain open. However, if Fiscal Service is unable to process a properly received redemption instruction due to temporary closure, Fiscal Service will process the transaction as soon as practicable thereafter. Such transactions will be processed by Fiscal Service as instructed by Federal Program Agencies in FedInvest, to include effective dates during the closure.

Federal Program Agencies should establish contingency procedures for conducting redemption transactions with Fiscal Service in the event Federal Program Agency offices temporarily close due to local conditions. Federal Program Agencies should share such contingency plans with Fiscal Service.

Federal Program Agencies shall not engage in investment practices, including but not limited to security day-trading and large investment portfolio restructure, to take advantage of short-term Interest Rate fluctuations or to result in gains and losses for Government Investment Accounts.

4340.50—Pricing Redemptions Before the Maturity Dates of GAS Securities

ODM determines daily the redemption Prices for all outstanding Marketable Treasury Securities in accordance with the principles described in Appendix 1 of this chapter. Fiscal Service will post the current day’s Prices in FedInvest as soon as the pricing is available, generally around 1:00 p.m. (Eastern Time) on the date of the intended redemption.

When Federal Program Agencies request to redeem Zero-Coupon Bond GAS Securities, Fiscal Service will request redemption Price information for those GAS Securities from ODM. ODM will determine the redemption Prices for Zero-Coupon Bond GAS Securities in accordance with the principles described in Appendix 1 of this chapter and will send the requested pricing information to Fiscal Service by approximately 1:00 p.m. (Eastern Time) on the date of the intended redemption.

The redemption Price for a Par-Value GAS Security is the face amount of the security (Par).

4340.60—Redemption Confirmations

Federal Program Agencies may confirm completion of GAS Security redemption transactions in FedInvest. Confirmations will generally post following the availability of pricing on the day of the transaction. Confirmations will specify the amount of proceeds from redemptions to Government Investment Accounts, including any earned interest. Confirmations of Market-Based GAS Security redemptions will also include information on any Discount or Premium associated with the security redemption Price.

4345.10—Policy Governing Disbursement of Monies from Government Investment Accounts

When Federal Program Agencies plan to disburse monies from a Government Investment Account and the monies are invested in GAS Securities, Federal Program Agencies must redeem securities in an amount sufficient to produce a cash balance at least equal to the amount planned to be disbursed before making the disbursement.

4345.20—Guidance on Disbursement Requirements

Federal Program Agencies should refer to TFM Volume I, Part 4 (“Disbursing”) for guidance on requirements that apply to making payments of money by check or electronic funds transfer from all government accounts, including Government Investment Accounts.

4350.10—Accounting Requirements

Provisions of Chapter 35 of Title 31 of the United States Code require executive agencies, which include Federal Program Agencies, to, among other things: establish and maintain systems of accounts and internal controls; implement and maintain financial management systems that comply substantially with applicable federal accounting standards and the United States Government Standard General Ledger at the transaction level; prepare financial statements covering all accounts and associated activities; and have the financial statements audited. 31 U.S.C. § 9105 requires Federal Program Agencies that are government corporations to, among other things, prepare financial statements covering all accounts and associated activities and have the financial statements audited.

4350.20—Fiscal Service Published Reporting

Reports are available on the Fiscal Service website showing transaction and distribution data for Government Investment Accounts currently or previously invested in GAS Securities. Federal Program Agencies should use the reports provided on Fiscal Service’s website and on FedInvest for monthly Classification Transactions and Accountability (CTA) submissions to Fiscal Service, as described in Section 4350.30 of this chapter, and in reconciliation processes, as described in Section 4350.40 of this chapter.

4350.30—Federal Program Agency CTA Submissions

31 U.S.C. § 3513 requires each executive agency to provide the Secretary of the Treasury reports and financial and operational information, if requested by the Secretary. Fiscal Service requires all federal agencies (i.e., all federal executive-, legislative-, and judicial-branch agencies and all federal government corporations) to report all receipt and disbursement activity via the CTA component of CARS.

In accordance with the Intra-governmental Transaction (IGT) Guide, found in TFM Volume I Part 2 Chapter 4700 Appendix 6, Fiscal Service will report federal investment activity in CARS on behalf of Federal Program Agencies invested in GAS Securities. Federal investment activity includes investments, Unrealized Discounts and Premiums, redemptions, and interest for all GAS Securities. Federal Program Agencies invested in GAS Securities shall continue to report investment fund receipts and disbursements under existing procedures and to receive the “Account Statement” expenditure activity report within CARS, which reflects all investment account activity for each month including information reported by Fiscal Service. For assistance related to these reports, Federal Program Agencies should contact the Federal Investments and Borrowings Branch (see contacts).

4350.40—Federal Program Agency Reconciliation Responsibilities

To ensure the integrity and accuracy of the financial reports and information that Fiscal Service obtains, Treasury requires Federal Program Agencies to reconcile Government Investment Account data and balances on a regular and recurring basis.

Fiscal Service posts appropriation Warrants, NETs, and all information obtained from Federal Program Agencies’ monthly CTA submissions in CARS. Fiscal Service provides Federal Program Agencies with updated data monthly about the fund balance the Federal Program Agency maintains in the Treasury through the “Account Statement” within CARS.

Federal Program Agencies must post all Government Investment Account transactions reported to Fiscal Service to a corresponding account in any internal Federal Program Agency accounting systems. Federal Program Agencies must also reconcile internal Federal Program Agency account balances with Treasury's corresponding account balances in CARS.

4350.50—Intra-governmental Eliminations

Federal Program Agencies should refer to TFM Volume I Part 2 Chapter 5100 for guidance on how to reconcile internal Federal Program Agency account balances with Treasury's account balances in CARS.

OMB and Treasury require Federal Program Agencies to reconcile elements of Government Investment Account investments, including principal, original Discount and Premium, amortization of Discount and Premium, and interest revenue. Fiscal Service submits balances reciprocating with Government Investment Accounts to the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS).

Quarterly, it is the responsibility of Federal Program Agencies to use GTAS to reconcile and confirm Government Investment Account balances. For Assistance regarding intra-governmental reconciliation, Federal Program Agencies should contact the Federal Investments and Borrowings Branch (see contacts).

Additional reporting and reconciliation guidance:

4355.10—Treasury’s General Reports

Section 3513 of Title 31 of the United States Code requires the Secretary of the Treasury to prepare reports that will inform the President of the United States, Congress, and the public on the financial operations of the United States Government. In fulfillment of this mandate, Fiscal Service publishes the Daily Treasury Statement, the Monthly Treasury Statement of Receipts and Outlays of the United States Government, the Combined Statement of Receipts, Outlays and Balances of the United States Government, the quarterly Treasury Bulletin, and the annual Financial Report of the United States Government. In addition, Fiscal Service publishes Daily and Monthly Statements of the Public Debt and the annual audited Schedules of Federal Debt.

4355.20—Responsibilities Relating to Specific Reporting Requirements

Treasury prepares and distributes several reports and statements on the financial management and operations of the United States Government. To support this effort, Treasury requires Federal Program Agencies to submit financial information through GTAS.

Various statutes require the Secretary of the Treasury to report annually to Congress on the financial condition and operations of Government Investment Accounts during the preceding fiscal year and on the expected conditions and operations of these accounts during a specified number of years in the future. In fulfillment of this requirement, Fiscal Service will use information from its central accounting and financial reporting system, and from Federal Program Agencies for an annual publication in one of the issues of the quarterly Treasury Bulletin.

Upon request, Federal Program Agencies must submit to Fiscal Service, for inclusion in the Treasury Bulletin, information on the expected conditions and operations of Government Investment Accounts during a specified number of years in the future.

Marketable Securities are those bills, notes, bonds, floating rate notes, and Treasury inflation-protected securities available for purchase and resale on the Secondary Market. Federal agencies must have specific investment authority granted by an act of the Congress before purchasing Marketable Securities. After Congress grants authority, agencies may purchase Marketable Securities on the Secondary Market through an independent brokerage firm. Agencies with existing statutory authority to invest in Marketable Securities, or which seek to obtain such authority, must notify Fiscal Service's Financial Reporting and Statement Team (FRST), (see contacts).

Section 4360.10—Reporting Requirements for Investments in Marketable Securities

Agencies must report changes in investments or redemptions in Marketable Securities to Fiscal Service monthly on the Statement of Transactions. Agencies record principal transactions at Par Value on the Statement of Transactions. If agencies purchase Marketable Securities through an independent brokerage firm, they must notify FRST (see contacts) within three Business Days of such purchases. This notification should report all outstanding investments at the CUSIP code level, listing the CUSIP code and the Par Value.

If agencies invest in Treasury inflation-protected securities, they must report to Fiscal Service any Inflation Compensation adjustments on these securities.

Monthly, by 8:00 a.m. (Eastern Time) on the first Business Day of the month, agencies must provide FRST with a complete listing of any Marketable Securities holdings, by CUSIP code and Par Value, using the template provided by FRST.

Monthly, by 10:00 a.m. (Eastern Time) on the first Business Day of the month, agencies must provide FRST with balances for all applicable USSGL accounts, again using the template provided by FRST.

For investment and redemption of GAS Securities, and associated accruals:

Department of the Treasury 
Bureau of the Fiscal Service 
Federal Investments and Borrowings Branch
PO Box 1328
Parkersburg, WV 26106-1328
304-480-5151
FedInvestor@fiscal.treasury.gov 
Website: Federal Investments Program

For guidance concerning the establishment of Government Investment Accounts and accounting responsibilities:

Department of the Treasury 
Bureau of the Fiscal Service 
Budget Reporting Branch 
Budget Appropriations and Analysis Section
PO Box 1328 
Parkersburg, WV 26106-1328
baasgroup@fiscal.treasury.gov

Direct questions concerning investments in Marketable Securities to:

Department of the Treasury 
Bureau of the Fiscal Service
Financial Reporting and Statement Team
PO Box 1328
Parkersburg, WV 26106-1328
304-480-5282
304-480-5277
frst@fiscal.treasury.gov