Treasury's Borrowings Program: Overview, Systems, and Online Reports

1. Treasury’s Borrowings Program Federal Credit Reform Adam Charlton Accountant, Federal Borrowings Branch April 12, 2007

2. Summary of Presentation • Overview of Borrowings • Borrowings Website • Borrowings Systems • Year-End Interest Calculators • Year-End Reminders

3. Roles Division of Accounting Operations Veronica Lowther, Director (Acting) Federal Borrowings Branch Crystal Hanna, Manager Jill Reeves, Team Lead Dorothy Dicks, Staff Accountant Stephanie Blair, Accountant Carol Brooks, Accountant Adam Charlton, Accountant Gale Daggett, Accountant Tabitha Linch, Accountant Milissia Morris, Accountant

4. & baby & baby & baby Federal Borrowings Branch Milissia Morris, Accountant Carol Brooks, Accountant Crystal Hanna, Manager Gale Daggett, Accountant Adam Charlton, Accountant Dorothy Dicks, Staff Accountant Jill Reeves, Team Lead Stephanie Blair, Accountant

6. Primary Roles of Borrowings • Establish loan agreements • Approve loan transactions using GWA • Collect interest payments using IPAC • Report loans receivable, interest receivable and interest revenue • Publish Treasury certified interest rates

7. Treasury Loans Outstanding 10% 5% 6% 49% 7% 23% As of February 28, 2007

8. Treasury Loans Outstanding As of February 28, 2007

9. Credit vs Non-Credit Reform As of February 28, 2007

10. Summary of Presentation • Overview of Borrowings • Borrowings Website • Borrowings Systems • Year-End Interest Calculators • Year-End Reminders

11. TreasuryDirect Website http://www.treasurydirect.gov/tdhome.htm Click Here

12. Borrowings Link Click Here

13. Click here for online reports Online Reports http://www.treasurydirect.gov/govt/apps/tbp/tbp.htm

14. Online Reports Choose Month

15. Detailed Fund Specific Report Summary General Ledger Report Report Selection

16. $223,184,184.35 $9,677,265.66 Detailed Fund Specific Report • Detailed Principal and Accrued Interest Balance Report has two sections: • 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.

17. Summary Ledger Report • 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. • 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.

18. Click here for interest rates Online Interest Rates http://www.treasurydirect.gov/govt/apps/tbp/tbp.htm

19. Credit Reform Rates Interest Rates

20. Credit Reform Rates

21. Summary of Presentation • Overview of Borrowings • Borrowings Website • Borrowings Systems • Year-End Interest Calculators • Year-End Reminders

22. Systems Flowchart BPD Approved Borrowings & Repayments (Principal) Invest One Repayments (Interest) PARS

23. •New •Saved •Finished •Reversed •BPD Certified •BPD Rejected •Agency Certified •Agency Rejected Agency Preparer BPD Approver Agency Certifier Publications Supervisor STAR •FMS Approved •Publication Rejected GWA Flowchart

24. IPAC • All IPAC transactions will be required to have: • SGL data for both sender and receiver • TAS for both sender and receiver • BETC for both sender and receiver

25. Business Event Type Code • The BETC is an 8-character code used to indicate the type of activity being reported • Used in combination with TAS to classify the transaction • Replaces transaction codes and standard subclasses

26. Implementation of BETC • Effective August 1, 2008 all IPAC transactions will use the new BETCs • TFM Bulletin No. 2007-04 • Agencies are encouraged to implement as soon as possible • IPAC will no longer be reported on 224 • Further information can be found at http://www.fms.treas.gov/gwa

27. IPAC BETCs for Borrowings

28. GWA BETCs for Borrowings

29. Reversing GWA Transactions • 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 • User must have the correct access in GWA

30. Ensuring Correct Access https://ups.twai.gov/TWAIUPS/user/login.jsp • Select Manage My Applications • Select VIEW by the GWA Application • Select Modify Access • Select Add Module/Role • From the --Select Module-- drop-down select BPDR • Select Next • Select Finish

31. Reversing the Transaction • Go to GWA & find the transaction you want to reverse under ‘Posted Transactions’ • Select the blue reversal icon • Select the ‘Reverse’ button at the bottom of the page

32. Summary of Presentation • Overview of Borrowings • Borrowings Website • Borrowings Systems • Year-End Interest Calculators • Year-End Reminders

33. Gold Stars! 11X4122 12X4337 36X4124 73X4149 11X4137 13X4314 36X4127 73X4150 11X4174 13X4324 36X4130 83X4028 12X4049 13X4328 36X4258 83X4161 12X4143 14X4163 68X4322 86X4077 12X4146 14X4415 69X4123 86X4105 12X4158 14X4416 69X4304 86X4242 12X4177 19X4107 69X4420 86X4587 12X4211 20X4088 70X4234 91X4252 12X4212 20X4286 71X4074 91X4253 12X4215 27X4133 71X4075 97X4166 12X4221 36X4112 73X4148

34. FY 2006 Calculators • 47 Programs sent their calculators in by Friday, September 29th! • Over 70% • More than doubled the early submissions from FY 2005

35. Year-End Changes • OMB is releasing a revised Credit Subsidy Calculator (CSC2) • CSC2 will combine the Financing Account Interest Calculator (FAIC) and the Credit Subsidy Calculator (CSC) • Interest will be compounded on repayments during the year • More information will be given in the 3:15–4:15 session

36. Additional CSC2 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

37. Summary of Presentation • Overview of Borrowings • Borrowings Website • Borrowings Systems • Year-End Interest Calculators • Year-End Reminders

38. Year-End Checklist • September 30th 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

39. Normal Borrowings Borrowings due to normal operations for the fiscal year • Certify final borrowing no later than 3 p.m. EST on Friday, September 28th • Transaction date: September 28, 2007 • Effective date: October 1, 2006

40. Borrowings to Pay Interest Borrowings that are used to pay interest • Certify final borrowing no later than 3 p.m. EST on Friday, September 28th • Transaction date: September 30, 2007 • Effective date: September 30, 2007

41. Repayments Repayments due on September 30th • Certify final repayment no later than 3 p.m. EST on Friday, September 28th • Transaction date: September 28, 2007 • Effective date: September 28, 2007

42. Interest Payments • During the month of September, the amount of interest will be the same no matter when the IPAC transaction is processed TFM Volume 1 Part 2 Chapter 4600

43. Total should match the Calculator’s Interest Costs Year-End IPAC • Submit interest payments in IPAC on or before 3 p.m. EST on Friday, September 28th • Send one IPAC per fund symbol for the total interest costs of all sub-cohorts

44. Interest Income • Credit Accounting Branch at FMS oversees the interest income portion • Submit IPAC charging 20X1880 to receive interest on uninvested funds • IPAC needs to include a certification statement

45. Interest Calculator Deadline • Submit all calculators & supporting documentation by 1 p.m. EST on Friday, September 28th E-mail: borrowings@bpd.treas.gov Fax: 304-480-5176

46. Naming Guidelines • Please include the following in the calculator file name: • Treasury Account Symbol • Sub-Cohort, if applicable

47. E-Mail Guidelines • When sending calculators, please include the following in the subject line of the e-mail: • Int Calc • Treasury Account Symbol • If Sending changes use ‘Revised #1’ Subject Line Examples: *Int Calc 11X4174 *Int Calc 11X4174, Revised #1 E-Mail Calculators to: borrowings@bpd.treas.gov

48. FY 2007 Year-End Timeline 09/17 09/17 09/28 09/28 09/28 CSC2 Credit Subsidy Calculator Available RATES Credit Reform Interest Rates Published CSC2 Credit Subsidy Calculator due by 1 pm EST GWA Borrowings for normal operations, Borrowings to pay interest and Repayments of principal by 3 pm EST IPAC Interest payment due by 3 pm EST

49. Balance Confirmations • 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 • Fax signed reports to Borrowings

50. Balance Confirmations • Confirm loan balances by maturity date • Verify cohort and sub-cohort information Sub- Cohort Cohort Year Maturity Date