Treasurys Borrowings Program Federal Credit Reform Adam Charlton
Treasury’s Borrowings Program Federal Credit Reform Adam Charlton Accountant, Federal Borrowings Branch April 12, 2007
Summary of Presentation Overview of Borrowings n Borrowings Website n Borrowings Systems n Year-End Interest Calculators n Year-End Reminders n
Roles Division of Accounting Operations Veronica Lowther, Director (Acting) Federal Borrowings Branch Crystal Hanna, Manager Dorothy Dicks, Staff Accountant Jill Reeves, Team Lead Stephanie Blair, Accountant Carol Brooks, Accountant Adam Charlton, Accountant Gale Daggett, Accountant Tabitha Linch, Accountant Milissia Morris, Accountant
Federal Borrowings Branch Carol Brooks, Accountant Gale Daggett, Accountant Dorothy Dicks, Staff Accountant y Milissia bab Morris, & Accountant y Crystal bab Hanna, & Manager y Jill Stephanie bab Reeves, Blair, & Team Lead Accountant Adam Charlton, Accountant
Primary Roles of Borrowings Establish loan agreements n Approve loan transactions using GWA n Collect interest payments using IPAC n Report loans receivable, interest receivable and interest revenue n Publish Treasury certified interest rates n
Treasury Loans Outstanding 6% 5% 10% 49% 7% 23% As of February 28, 2007
Treasury Loans Outstanding Agency Balance Outstanding (millions) Percent Dept of Education $115, 925 49% Dept of Agriculture $54, 257 23% Dept of Homeland Security $17, 587 7% Dept of Treasury $14, 454 6% Small Business Administration $13, 092 5% All Others $23, 086 10% Total Loans Outstanding As of February 28, 2007 $238, 401
Credit vs Non-Credit Reform Funds with Outstanding Balances Number of Loans Outstanding Balance of Loans Outstanding (millions) 62 (77%) 19 (23%) 1, 705 (19%) 7, 276 (81%) $185, 177 (78%) $53, 224 (22%) As of February 28, 2007
Summary of Presentation Overview of Borrowings n Borrowings Website n Borrowings Systems n Year-End Interest Calculators n Year-End Reminders n
Treasury. Direct Website http: //www. treasurydirect. gov/tdhome. htm Click Here
Borrowings Link Click Here
Online Reports http: //www. treasurydirect. gov/govt/apps/tbp. htm Click here for online reports
Online Reports Choose Month
Report Selection Detailed Fund Specific Report Summary General Ledger Report
Detailed Fund Specific Report n Detailed Principal and Accrued Interest Balance Report has two sections: n n n $223, 184. 35 $9, 677, 265. 66 The top section contains principal outstanding and the related accrued interest. The bottom section shows other principal and accrued interest. Examples include accrued interest on early repayments for credit reform programs, overdue principal of matured loans and overdue interest. Adding the totals from each section will equal the totals found in the Summary General Ledger Balance Report.
Summary Ledger Report n n Summary General Ledger Balance Report illustrates the loans receivable, interest receivable and interest revenue. Treasury accrues interest on a daily basis. For credit reform funds, the prior fiscal year’s rate is used until the actual rate becomes available. n n When principal is repaid to Treasury between October 1 and August 31, Treasury reverses accrued interest reported and accrues ½ year of interest on the principal. When principal is repaid to Treasury between September 1 through September 30, Treasury will accrue a full year of interest.
Online Interest Rates http: //www. treasurydirect. gov/govt/apps/tbp. htm Click here for interest rates
Interest Rates Credit Reform Rates
Credit Reform Rates
Summary of Presentation Overview of Borrowings n Borrowings Website n Borrowings Systems n Year-End Interest Calculators n Year-End Reminders n
Systems Flowchart BPD Approved Borrowings & Repayments (Principal) Repayments (Interest) Invest One PARS
GWA Flowchart • BPD Certified • BPD Rejected • Agency Certified • Agency Rejected • New • Saved • Finished • Reversed Agency Preparer Agency Certifier Publications Supervisor • FMS Approved • Publication Rejected BPD Approver STAR
IPAC n All IPAC transactions will be required to have: n n n SGL data for both sender and receiver TAS for both sender and receiver BETC for both sender and receiver
Business Event Type Code The BETC is an 8 -character code used to indicate the type of activity being reported n Used in combination with TAS to classify the transaction n Replaces transaction codes and standard subclasses n
Implementation of BETC n Effective August 1, 2008 all IPAC transactions will use the new BETCs n n Agencies are encouraged to implement as soon as possible n n TFM Bulletin No. 2007 -04 IPAC will no longer be reported on 224 Further information can be found at http: //www. fms. treas. gov/gwa
IPAC BETCs for Borrowings Payment Collection Transaction BETC Sender (Agency) Gross Disbursement DISB Receiver (BPD) Collection To An Unavailable Receipt Account COLUVRCT Sender (Agency) Adjustment to Gross Disbursements DISBAJ Receiver Adjustment to Collections COLUVRAJ (BPD) for an Unavailable
GWA BETCs for Borrowings PREVIOUS NEW TRANS CODE SUB CLASS BETC Borrowing From The US Treasury 71 95 BPD Credit Reform Borrowing From The US Treasury 71 95 CRB Non-Credit Reform Borrowing From The US Treasury 71 95 NCRB Reverse Credit Reform Borrowing From The US Treasury 71 95 RCRB Reverse Non-Credit Reform Borrowing From The US Treasury 71 95 RNCRB Repayment of Borrowing From The US Treasury 61 85 BPDP Repayment of Credit Reform Borrowing From The US Treasury 61 85 PCRB Repayment of Non-Credit Reform Borrowing From The US Treasury 61 85 PNCRB Reverse Repayment of Credit Reform Borrowing From The US Treasury 61 85 RPCR Reverse Repayment of Non-Credit Reform Borrowing From The US Treasury 61 85 RPNCR Reverse Write-Off of Non-Credit Reform Borrowing From The US Treasury 61 85 RWNCR Write-Off of Non-Credit Reform Borrowing From The US Treasury 61 85 WNCR ACTIVITY TYPE Borrowing Repayment
Reversing GWA Transactions n Reversals are used when GWA transactions are incorrect and have already been STAR posted Reversal must be done by the person who submitted the original transaction n User must have the correct access in GWA n
Ensuring Correct Access https: //ups. twai. gov/TWAIUPS/user/login. jsp n Select Manage My Applications n Select VIEW by the GWA Application n Select Modify Access n Select Add Module/Role n From the --Select Module-- drop-down select BPDR n Select Next n Select Finish
Reversing the Transaction n Go to GWA & find the transaction you want to reverse under ‘Posted Transactions’ n n Select the blue reversal icon Select the ‘Reverse’ button at the bottom of the page
Summary of Presentation Overview of Borrowings n Borrowings Website n Borrowings Systems n Year-End Interest Calculators n Year-End Reminders n
Gold Stars! 11 X 4122 11 X 4137 11 X 4174 12 X 4049 12 X 4143 12 X 4146 12 X 4158 12 X 4177 12 X 4211 12 X 4212 12 X 4215 12 X 4221 12 X 4337 13 X 4314 13 X 4328 14 X 4163 14 X 4415 14 X 4416 19 X 4107 20 X 4088 20 X 4286 27 X 4133 36 X 4112 36 X 4124 36 X 4127 36 X 4130 36 X 4258 68 X 4322 69 X 4123 69 X 4304 69 X 4420 70 X 4234 71 X 4075 73 X 4148 73 X 4149 73 X 4150 83 X 4028 83 X 4161 86 X 4077 86 X 4105 86 X 4242 86 X 4587 91 X 4252 91 X 4253 97 X 4166
FY 2006 Calculators n 47 Programs sent their calculators in by Friday, September 29 th! n n Over 70% More than doubled the early submissions from FY 2005
Year-End Changes n OMB is releasing a revised Credit Subsidy Calculator (CSC 2) CSC 2 will combine the Financing Account Interest Calculator (FAIC) and the Credit Subsidy Calculator (CSC) n Interest will be compounded on repayments during the year n More information will be given in the 3: 15– 4: 15 session n
Additional CSC 2 Information Federal Credit Support Page www. whitehouse. gov/omb/credit To be notified of updates, email: ccurtis@omb. eop. gov All other questions should be referred to your Program Examiner at OMB
Summary of Presentation Overview of Borrowings n Borrowings Website n Borrowings Systems n Year-End Interest Calculators n Year-End Reminders n
Year-End Checklist n n September 30 th falls on a non-business day this year Process borrowings and repayments as soon as possible Verify that transactions agree with the interest calculator Submit all new sub-cohorts to Borrowings before entering the transactions in GWA
Normal Borrowings due to normal operations for the fiscal year n Certify final borrowing no later than 3 p. m. EST on Friday, September 28 th Transaction date: September 28, 2007 n Effective date: October 1, 2006 n
Borrowings to Pay Interest Borrowings that are used to pay interest n Certify final borrowing no later than 3 p. m. EST on Friday, September 28 th Transaction date: September 30, 2007 n Effective date: September 30, 2007 n
Repayments due on September 30 th n Certify final repayment no later than 3 p. m. EST on Friday, September 28 th Transaction date: September 28, 2007 n Effective date: September 28, 2007 n
Interest Payments TFM Volume 1 Part 2 Chapter 4600 n During the month of September, the amount of interest will be the same no matter when the IPAC transaction is processed
Year-End IPAC n n Submit interest payments in IPAC on or before 3 p. m. EST on Friday, September 28 th Send one IPAC per fund symbol for the total interest costs of all sub-cohorts Total should match the Calculator’s Interest Costs
Interest Income n Credit Accounting Branch at FMS oversees the interest income portion n n Submit IPAC charging 20 X 1880 to receive interest on uninvested funds IPAC needs to include a certification statement
Interest Calculator Deadline n Submit all calculators & supporting documentation by 1 p. m. EST on Friday, September 28 th E-mail: borrowings@bpd. treas. gov Fax: 304 -480 -5176
Naming Guidelines n Please include the following in the calculator file name: n n Treasury Account Symbol Sub-Cohort, if applicable
E-Mail Guidelines n Subject Line Examples: *Int Calc 11 X 4174, Revised #1 When sending calculators, please include the following in the subject line of the e-mail: n n E-Mail Calculators to: borrowings@bpd. treas. gov n Int Calc Treasury Account Symbol If Sending changes use ‘Revised #1’
FY 2007 Year-End Timeline 09/17 RATES Credit Reform Interest Rates Published 09/17 CSC 2 Credit Subsidy Calculator Available 09/28 CSC 2 Credit Subsidy Calculator due by 1 pm EST 09/28 GWA Borrowings for normal operations, Borrowings to pay interest and Repayments of principal by 3 pm EST 09/28 IPAC Interest payment due by 3 pm EST
Balance Confirmations n During the first week of October, Borrowings will send an e-mail requesting each fund to confirm their records against Borrowings’ Print the detailed report for your specific fund and the G/L Balance Report from Borrowings’ website n Fax signed reports to Borrowings n
Balance Confirmations n n Confirm loan balances by maturity date Verify cohort and sub-cohort information Sub. Cohort Maturity Date Cohort Year
References n Federal Credit Reform Act http: //www. fms. treas. gov/ussgl/creditreform/fcra. html n TFM Vol. 1 Part 2 Ch. 4600 http: //www. fms. treas. gov/tfm/vol 1/index. html#Part%202 n SFFAS No. 2 Accounting for Direct Loans and Loan Guarantees http: //www. fasab. gov/standards. html n GWA User Manual http: //fms. treas. gov/gwa/user_documentation. html n IPAC User Manual http: //fms. treas. gov/goals/ipacmanual/index. html. IPAC User Manual n Monthly Treasury Statement, Table 6 Schedule C http: //fms. treas. gov/mts/index. html n Intragovernmental Transaction Information http: //fms. treas. gov/factsi/index. html n OMB Circular A-11 http: //whitehouse. gov/omb/circulars/a 11/current_year/s 185. pdf
FMS Updates http: //fms. treas. gov/scripts/subscription/ n Be sure to signup for e-mail notifications on FMS’ website n Be notified of important events and upcoming changes
Borrowings Contacts n Address Department of the Treasury Bureau of the Public Debt Federal Borrowings Branch, Room H 113 P. O. Box 396 Parkersburg, WV 26106 -0396 n Phone 304 -480 -7488 n Fax 304 -480 -5176 n E-Mail borrowings@bpd. treas. gov
Agency Visits We would like to invite you and other members of your agency to visit the Federal Borrowings Branch at the Bureau of the Public Debt in Parkersburg, WV
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