Note 4. Investments

Bureau of the Comptroller and Global Financial Services
Report
November 17, 2014




Investments at September 30, 2014 and 2013, are summarized below (dollars in millions). All investments are classified as Intragovernmental Securities.

Summary of Investments
At September 30, 2014
(dollars in millions)
  Net
Investment
Market
Value
Maturity
Dates
Interest
Rates Range
Interest
Receivable
Non-Marketable, Par Value:          
Special Issue Securities $17,792 $17,792 2015-2028 1.375%-6.500% $157
Subtotal 17,792 17,792     157
Non-Marketable, Market Based:          
Israeli-Arab Scholarship Fund 5 5 2015 0.250%
Eisenhower Exchange Fellowship Fund 8 8 2015-2019 3.000%-8.875%
Middle Eastern-Western Dialogue Fund 15 15 2014-2019 0.250%-1.250%
Gift Funds, Treasury Bills 16 16 2014-2017 0.750%-3.125%
Subtotal 44 44    
Total Investments $17,836 $17,836     $157


Summary of Investments
At September 30, 2013
(dollars in millions)
  Net
Investment
Market
Value
Maturity
Dates
Interest
Rates Range
Interest
Receivable
Non-Marketable, Par Value:          
Special Issue Securities $17,364 $17,364 2015-2028 1.375%-6.500% $163
Subtotal 17,364 17,364     163
Non-Marketable, Market Based:          
Israeli-Arab Scholarship Fund 5 5 2015 0.250%
Eisenhower Exchange Fellowship Fund 8 8 2014-2019 3.000%-8.875%
Middle Eastern-Western Dialogue Fund 15 15 2013-2019 0.250%-1.250%
Gift Funds, Treasury Bills 16 16 2014-2017 0.750%-3.125%
Subtotal 44 44    
Total Investments $17,408 $17,408     $163

The Department's activities that have the authority to invest cash resources are Funds from Dedicated Collections (see Note 14). The Federal Government does not set aside assets to pay future benefits or other expenditures associated with funds from dedicated collections. The cash receipts collected from the public for funds from dedicated collections are deposited in the 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 Treasury. Because the Department and the 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 liability in the U.S. Government-wide financial statements.

Treasury securities provide the component entity with authority to draw upon the Treasury to make future benefits 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. The Government finances most expenditures in this way.