Note 5. Investments

FY 2007 Financial Report
Bureau of Resource Management
November 2007
Report

Summary of Investments

Investments at September 30, 2007 and 2006 are summarized below (Dollars in Thousands). All investments are classified as Intragovernmental.

Summary of Investments
At September 30, 2007
(Dollars in Thousands)
  Par Unamortized
Premium
(Discount)
Investments
(Net)
Market
Value
Maturity
Dates
Interest
Rates Range
Interest
Receivable

Non-Marketable, Par Value:

             
Special Issue Securities $14,377,713
single underline
$  — 
single underline
$14,377,713
single underline
$14,377,713
single underline
2008-2022 3.50%-7.25% $194,371
single underline
Subtotal $14,377,713
single underline
$  — 
single underline
$14,377,713
single underline
$14,377,713
single underline
    $194,371
single underline
Non-Marketable, Market Based:              
Israeli-Arab Scholarship, Notes       4,723    (1)        4,722       4,753 2008 4.75%-5.00%        64 
Eisenhower Exchange Fellowship, Notes       7,567   (12)        7,555       7,593 2008-2015 3.25%-6.00%        43 
Middle Eastern-Western Dialogue, Note      17,100  396       17,496      17,464 2008-2010 3.375%-6.50%       227 
Gift Funds, Bills       5,005
single underline
 (44)
single underline
      4,961
single underline
      4,972
single underline
2007 1.93%        —
single underline
Subtotal $    34,395
single underline
$339 
single underline
$    34,734
single underline
$    34,782
single underline
     $    334 
single underline
Total Investments $14,412,108
double underline
$339 
double underline
$14,412,447
double underline
$14,412,495
double underline
     $194,705 
double underline

 

Summary of Investments
At September 30, 2006
(Dollars in Thousands)
  Par Unamortized
Premium
(Discount)
Investments
(Net)
Market
Value
Maturity
Dates
Interest
Rates Range
Interest
Receivable
Non-Marketable, Par Value:              
Special Issue Securities $13,875,717
single underline
$  — 
single underline
$13,875,717
single underline
$13,875,717
single underline
2007-2021 3.50%-7.375% $191,762
single underline
Subtotal $13,875,717
single underline
$  — 
single underline
$13,875,717
single underline
$13,875,717
single underline
    $191,762
single underline
Non-Marketable, Market Based:              
Israeli-Arab Scholarship, Notes       4,723   11        4,734       4,732 2006-2008 3.125%-6.625%        80 
Eisenhower Exchange Fellowship, Notes       7,521    (8)        7,513       7,505 2007-2014 3.25%-6.25%        45 
Middle Eastern-Western Dialogue, Note      17,096  556       17,652      17,406 2006-2010 2.25%-6.625%       294 
Gift Funds, Bills       4,005
single underline
 (37)
single underline
      3,968
single underline
      3,970
single underline
2006 2.41%        —
single underline
Subtotal $    33,345
single underline
$522 
single underline
$    33,867
single underline
$    33,613
single underline
     $    419 
single underline
Total Investments $13,909,062
double underline
$522 
double underline
$13,909,584
double underline
$13,909,330
double underline
     $192,181 
double underline

 

The Department's activities that have the authority to invest cash resources are earmarked funds (see Note 15 "Earmarked Funds"). The Federal Government does not set aside assets to pay future benefits or other expenditures associated with earmarked funds. The cash receipts collected from the public for an earmarked fund are deposited in the U.S. Treasury, which uses the cash for general Government purposes. Treasury securities are issued to the Department as evidence of its receipts. Treasury securities are an asset to the Department and a liability to the U.S. Treasury. Because the Department and the U.S. Treasury are both parts of the Government, these assets and liabilities offset each other from the standpoint of the Government as a whole. For this reason, they do not represent an asset or a liability in the U.S. Government-wide financial statements.

Treasury securities provide the (component entity) with authority to draw upon the U.S. Treasury to make future benefit payments or other expenditures. When the Department requires redemption of these securities to make expenditures, the Government finances those expenditures out of accumulated cash balances, by raising taxes or other receipts, by borrowing from the public or repaying less debt, or by curtailing other expenditures. This is the same way that the Government finances all other expenditures.

Although funds in the Chancery Development Trust Account and the Bosnia Federation Defense Fund are invested, because they are considered non-entity assets the investments for these funds are not shown in this section, but are described in Note 7, " Cash and Other Monetary Assets."

 


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