US Treasury: CreditReform

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Treasury’s Borrowings Program

Federal Credit Reform

Adam Charlton

Accountant, Federal Borrowings Branch

April 12, 2007



Summary of Presentation

Overview of Borrowings

Borrowings Website

Borrowings Systems

Year-End Interest Calculators

Year-End Reminders



Roles

Stephanie Blair, AccountantCarol Brooks, Accountant

Adam Charlton, AccountantGale Daggett, Accountant

Tabitha Linch, AccountantMilissia Morris, Accountant

Division of Accounting OperationsVeronica Lowther, Director (Acting)

Federal Borrowings BranchCrystal Hanna, Manager

Dorothy Dicks, Staff Accountant Jill Reeves, Team Lead



Federal Borrowings Branch

DorothyDicks, Staff Accountant

JillReeves,

Team Lead

StephanieBlair,

Accountant

GaleDaggett,

Accountant

CarolBrooks,

Accountant

MilissiaMorris,

Accountant

CrystalHanna,

Manager

AdamCharlton,

Accountant

& b a

b y

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b y

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b y





Primary Roles of Borrowings

Establish loan agreements

Approve loan transactions using GWA

Collect interest payments using IPAC

Report loans receivable, interestreceivable and interest revenue

Publish Treasury certified interestrates



Treasury Loans Outstanding

Dept of EducationDept of Agriculture

Dept of Homeland Security

Dept of Treasury

Small Business Administration

Other

5%6%

7%

23%

10%

49%

As of February 28, 2007



Treasury Loans Outstanding

$238,401Total Loans Outstanding

10%$23,086All Others5%$13,092Small Business Administration

6%$14,454Dept of Treasury

7%$17,587Dept of Homeland Security

23%$54,257Dept of Agriculture

49%$115,925Dept of Education

PercentBalance Outstanding

(millions)

Agency




Credit vs Non-Credit Reform

$53,224 (22%)$185,177 (78%)Balance of LoansOutstanding (millions)

7,276 (81%)1,705 (19%)Number of LoansOutstanding

19 (23%)62 (77%)Funds with OutstandingBalances

Non-Credit ReformCredit Reform






Borrowings Website

Borrowings Systems

Year-End Interest Calculators

Year-End Reminders



TreasuryDirect Website

Click Here

http://www.treasurydirect.gov/tdhome.htm



Borrowings Link

Click Here



Online Reportshttp://www.treasurydirect.gov/govt/apps/tbp/tbp.htm

Click here foronline reports



Online Reports

Choose Month



Report Selection

Detailed Fund Specific Report

Summary General Ledger Report



Detailed Fund Specific Report

$9,677,265.66$223,184,184.35

Detailed Principal and AccruedInterest Balance Report hastwo sections: The top section contains

principal outstanding and therelated accrued interest.

The bottom section shows otherprincipal and accrued interest.Examples include accruedinterest on early repayments forcredit reform programs, overdue

principal of matured loans andoverdue interest.

Adding the totals from eachsection will equal the totalsfound in the Summary GeneralLedger Balance Report.



Summary Ledger Report

Summary General Ledger Balance Report illustrates the loansreceivable, interest receivable and interest revenue.

Treasury accrues interest on a daily basis. For credit reformfunds, 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 intereston the principal.

When principal is repaid to Treasury between September 1 throughSeptember 30, Treasury will accrue a full year of interest.



Online Interest Rateshttp://www.treasurydirect.gov/govt/apps/tbp/tbp.htm

Click here forinterest rates



Interest Rates

Credit ReformRates



Credit Reform Rates





Borrowings Website

Borrowings Systems Year-End Interest Calculators

Year-End Reminders



Systems Flowchart

BPD ApprovedBorrowings & Repayments(Principal)

Repayments(Interest)

Invest One

PARS



GWA Flowchart

Agency

PreparerAgencyCertifier

BPD

Approver

PublicationsSupervisor

•Agency Certified•Agency Rejected

•BPD Certified•BPD Rejected

•FMS Approved•Publication Rejected

•New•Saved•Finished•Reversed

STAR



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



Business Event Type Code

The BETC is an 8-character codeused to indicate the type of activity

being reported Used in combination with TAS to

classify the transaction

Replaces transaction codes andstandard subclasses



Implementation of BETC

Effective August 1, 2008 all IPACtransactions 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 athttp://www.fms.treas.gov/gwa



IPAC BETCs for Borrowings

BETCTransaction

Adjustment to Collections

for an Unavailable

Adjustment to GrossDisbursements

Collection To AnUnavailable Receipt

Account

Gross Disbursement

COLUVRAJReceiver

(BPD)

DISBAJSender

(Agency)

C ol l e c t i on

COLUVRCTReceiver(BPD)

DISBSender

(Agency)P a ym en t





Reversing GWA Transactions

Reversals are used when GWAtransactions 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 inGWA



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



Reversing the Transaction

Go to GWA & find the transaction you wantto reverse under ‘Posted Transactions’ Select the blue reversal icon

Select the ‘Reverse’ button at the bottom of thepage





Borrowings Website


Year-End Reminders



Gold Stars!

11X4122 12X4337 36X4124 73X4149

11X4137 13X4314 36X4127 73X4150

11X4174 13X4324 36X4130 83X4028

12X4049 13X4328 36X4258 83X416112X4143 14X4163 68X4322 86X4077

12X4146 14X4415 69X4123 86X4105

12X4158 14X4416 69X4304 86X4242

12X4177 19X4107 69X4420 86X458712X4211 20X4088 70X4234 91X4252

12X4212 20X4286 71X4074 91X4253

12X4215 27X4133 71X4075 97X4166

12X4221 36X4112 73X4148



FY 2006 Calculators

47 Programs senttheir calculators in byFriday, September29th! Over 70%

More than doubled the

early submissions fromFY 2005



Year-End Changes

OMB is releasing a revised CreditSubsidy Calculator (CSC2)

CSC2 will combine the FinancingAccount Interest Calculator (FAIC) andthe 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



Additional CSC2 Information

Federal Credit Support Page

www.whitehouse.gov/omb/credit

To be notified of updates, email:

[email protected]

All other questions should be referred to yourProgram Examiner at OMB





Borrowings Website


Year-End Reminders



Year-End Checklist

September 30th falls on a non-businessday this year

Process borrowings and repayments assoon as possible

Verify that transactions agree with theinterest calculator

Submit all new sub-cohorts to Borrowingsbefore entering the transactions in GWA



Normal Borrowings

Certify final borrowing no later than3 p.m. EST on Friday, September 28th

Transaction date: September 28, 2007 Effective date: October 1, 2006

Borrowings due to normal operations for the fiscal year



Borrowings to Pay Interest

Certify final borrowing no later than3 p.m. EST on Friday, September 28th

Transaction date: September 30, 2007 Effective date: September 30, 2007

Borrowings that are used to pay interest



Repayments

Certify final repayment no later than3 p.m. EST on Friday, September 28th

Transaction date: September 28, 2007 Effective date: September 28, 2007

Repayments due on September 30th





Year-End IPAC

Submit interestpayments inIPAC on or

before 3 p.m.EST on Friday,September 28th

Send one IPAC

per fund symbolfor the totalinterest costs of all sub-cohorts

Total should match the

Calculator’s Interest Costs



Interest Income

Credit AccountingBranch at FMS overseesthe interest incomeportion Submit IPAC charging

20X1880 to receiveinterest on uninvestedfunds

IPAC needs to include acertification statement



Interest Calculator Deadline

Submit all calculators & supportingdocumentation by 1 p.m. EST on

Friday, September 28th

E-mail:

[email protected]

Fax:

304-480-5176

mailto:[email protected]





Naming Guidelines

Please include thefollowing in thecalculator filename: Treasury Account

Symbol

Sub-Cohort, if applicable



E-Mail Guidelines

When sendingcalculators, pleaseinclude the followingin the subject line of the e-mail: Int Calc

Treasury AccountSymbol

If Sending changesuse ‘Revised #1’

Subject Line Examples:Subject Line Examples:

*Int Calc 11X4174

*Int Calc 11X4174, Revised #1

E-Mail Calculators to:[email protected]



FY 2007 Year-End Timeline

09/17 09/17 09/28 09/28 09/28

RATESCreditReformInterestRates

Published

CSC2Credit

Subsidy

CalculatorAvailable

GWA

Borrowingsfor normaloperations,Borrowings

to payinterest andRepaymentsof principal

by 3 pm EST

IPAC

Interestpaymentdue by

3 pm EST

CSC2Credit

SubsidyCalculator

due by1 pm EST



Balance Confirmations

During the first week of October,Borrowings will send an e-mail

requesting each fund to confirmtheir records against Borrowings’ Print the detailed report for your

specific fund and the G/L BalanceReport from Borrowings’ website

Fax signed reports to Borrowings



Balance Confirmations

Confirm loan balances by maturity date

Verify cohort and sub-cohort information

CohortYear

Maturity Date

Sub-Cohort



References Federal Credit Reform Act

http://www.fms.treas.gov/ussgl/creditreform/fcra.html

TFM Vol. 1 Part 2 Ch. 4600http://www.fms.treas.gov/tfm/vol1/index.html#Part%202

SFFAS No. 2 Accounting for Direct Loans and Loan Guaranteeshttp://www.fasab.gov/standards.html

GWA User Manualhttp://fms.treas.gov/gwa/user_documentation.html

IPAC User Manualhttp://fms.treas.gov/goals/ipac/ipacmanual/index.htmlIPAC User Manual

Monthly Treasury Statement, Table 6 Schedule Chttp://fms.treas.gov/mts/index.html

Intragovernmental Transaction Informationhttp://fms.treas.gov/factsi/index.html

OMB Circular A-11http://whitehouse.gov/omb/circulars/a11/current_year/s185.pdf



FMS Updates

Be sure to sign-

up for e-mailnotifications onFMS’ website Be notified of

important eventsand upcomingchanges

http://fms.treas.gov/scripts/subscription/



Borrowings Contacts

AddressDepartment of the Treasury

Bureau of the Public Debt

Federal Borrowings Branch, Room H113

P.O. Box 396Parkersburg, WV 26106-0396

Phone304-480-7488

Fax304-480-5176

[email protected]



Agency Visits

We would like to invite you and othermembers of your agency to visit the

Federal Borrowings Branch at theBureau of the Public Debt inParkersburg, WV

Documents

US Treasury: CreditReform