Investments Outside the US Treasury

Description of Cash and Investments Held Outside of the U.S. Treasury Categories

Introduction

Requirements have been developed to maintain and improve accountability control and custodial responsibility over all cash resources entrusted to the federal government by taxpayers and other depositing entities. However, cash and investments held outside of the U.S. Treasury fall within two distinct categories. They include budgetary funds and nonbudgetary funds. Both categories are subject to the control and accountability of federal government entities and/or their employees, officers, or agents.

Treasury's Policies on Entities' Requirements

In addition to developing policies, systems, and procedures to ensure cash and investment activity in Treasury and non-Treasury accounts, Treasury requires entities:

To maintain full accountability and reconciliation control over funds owned by or in the custody of the federal government or any federal government officer, employee, or agent,

To comply with applicable statutes regarding the deposit and/or investment of such funds, and

To support government-wide collateral, accounting, and reporting requirements, as described in the TFM.

Entities' Reporting Responsibilities and Requirements

Reporting requirements set forth in this chapter apply to all departments, entities, and corporations of the federal government. It is each entity's responsibility to:

Follow the policy and requirements set forth in this chapter, and

Incorporate those requirements in its financial system procedures and as part of the overall audit activities.

Federal Account Symbols Requirements

Entities use Treasury Account Symbols and Business Event Type Codes to report on cash and investments held outside of the U.S. Treasury and changes in non-federal securities. They submit data to the Treasury using the following Business Event Type Codes (BETCs):

Funds Held Outside the Treasury, Credit – FHOTXC; Adjustment to Funds Held Outside the Treasury, Credit – FHOTXCAJ; Funds Held Outside the Treasury, Debit – FHOTXD; Adjustment to Funds Held Outside the Treasury, Debit – FHOTXDAJ are used to report cash held outside of the U.S. Treasury, for both budgetary accounts and deposit funds,

Change in Non-Federal Securities, Credit – CNONFSC; Adjustment to Change in Non-Federal Securities, Credit – CNFSCAJ; Change in Non-Federal Securities, Debit – CNONFSD; Adjustment to Change in Non-Federal Securities, Debit – CNFSDAJ to report the investments and changes in non-federal securities (market value) for both budgetary and non-budgetary accounts, and

Offset of Change in Non-Federal Securities, Credit – OCNONFSC, Adjustment to Offset of Change in Non-Federal Securities, Credit – OCNFSCAJ, Offset of Change in Non-Federal Securities, Debit – OCNONFSD, and Adjustment to Offset of Change in Non-Federal Securities, Debit – OCNFSDAJ are used as a contra account to report budgetary investments and changes in non-federal securities.

Entities also report on the cash and investments held outside of the U.S. Treasury using existing budgetary account symbols, or a deposit fund account, as appropriate. See Appendix 1 for pro-forma central accounting and reporting entries typical of most federal transactions involving cash and investments held outside of the U.S. Treasury. For additional information regarding BETCs and related GTAS edit validations, review the BETC Guidance posted on the Fiscal Service website under the GWA Reporting section.

Federal Financial Management Standards

Functions and Activities

Financial Asset Information Processing – Other Federal Assets (FFM.020.050)

Record financial asset type, category, value, and value adjustments; Includes financial asset information processing for seized and forfeited assets and investments in Treasury securities.

Financial Asset Information Reporting (FFM.020.060)

Provide financial asset information (e.g., asset type, value) for financial reporting and reconciliation with information in the asset management systems.

Federal Financial Management System Requirements (FFMSR)

Managing Financial Asset Information (FFMSR 1.1.3)

Capture federal government asset type (for example, entity, non-entity, governmental, and intragovernmental), category [for example, property, plant, and equipment (PP&E); inventory; seized and forfeited; investments in Treasury securities], and subcategory (for example, general PP&E or heritage PP&E) consistent with The Federal Accounting Standards Advisory Board (FASAB) Handbook of Accounting Standards, and Other Pronouncements, as Amended (FASAB Handbook).

Determine asset value and provide for adjustments – such as depreciation, impairment, allowance for uncollectible amounts, and subsidy allowance – consistent with FASAB Handbook.

Use Cases

Record to Report

Treasury Financial Manual (TFM)

TFM Volume I, Part 2 Chapter 3400; Accounting for and Reporting on Cash and Investments Held Outside of the U.S. Treasury

Contact Information

Contact Details

Direct inquiries concerning material in this section and Statement of Transactions, CTA Module Reporting, or using Business Event Type Codes to:

Chad Morris, Manager
Cash Accounting Branch
Fiscal Accounting Operations
Bureau of the Fiscal Service

P.O. Box 1328
Parkersburg, WV 26106-1328

CashAnalysisSection.FAO@fiscal.treasury.gov

Direct inquiries concerning the ATB reporting to:

Steve Riley, Manager
General Ledger and Advisory Branch
Fiscal Accounting Operations
Bureau of the Fiscal Service

P.O. Box 1328
Parkersburg, WV 26106-1328

304-480-6485

GTAS.Team@fiscal.treasury.gov

Direct inquiries concerning the use of Treasury Account Symbols to:

Jerome Jackson, Manager
Budget Reporting Branch
Fiscal Accounting Operations
Bureau of the Fiscal Service

P.O. Box 1328
Parkersburg, WV 26106

BAASGroup@fiscal.treasury.gov