2010   Financial Report of the United States Government

Notes to the Financial Statements

Note 2. Cash and Other Monetary Assets

 Cash and Other Monetary Assets as of September 30
(In billions of dollars)
2010
2009
Unrestricted cash:
  Cash held by Treasury for Governmentwide operations 103.6 104.0
  Other 9.0 8.4
Restricted cash:
  Cash held by Treasury for Governmentwide operations 200.0 165.0
  Other 19.4 17.7
    Total cash 332.0 295.1
 
International monetary assets 70.4 71.4
Gold 11.1 11.1
Foreign currency 15.1 15.6
  Total cash and other monetary assets 428.6 393.2

Unrestricted cash includes cash held by Treasury for Governmentwide operations (Operating Cash) and all other unrestricted cash held by the Federal agencies. Operating Cash represents balances from tax collections, other revenue, Federal debt receipts, and other various receipts net of cash outflows for budget outlays and other payments. Operating Cash includes balances invested with commercial depositaries in Treasury Tax and Loan Accounts (including funds invested through the Term Investment Option program and the Repo Pilot program). Treasury checks outstanding are netted against Operating Cash until they are cleared by the Federal Reserve System. Other unrestricted cash not included in Treasury’s Operating Cash balance includes balances representing cash, cash equivalents, and other funds held by agencies, such as undeposited collections, deposits in transit, demand deposits, amounts held in trust, imprest funds, and amounts representing the balances of petty cash.

Restricted cash is restricted due to the imposition on cash deposits by law, regulation, or agreement. Restricted cash is primarily composed of the SFP and cash held by the Foreign Military Sales programs. On September 18, 2008, Treasury began issuing specific cash management bills to fund the SFP. The SFP is a temporary program that deposits cash with the Federal Reserve to support Federal Reserve initiatives aimed at addressing the ongoing crisis in financial markets. As of September 30, 2010, there were a total of eight SFP cash management bills outstanding that totaled $200.0 billion. As of September 30, 2009, there were five SFP cash management bills outstanding that totaled $165.0 billion. The Foreign Military Sales program included $18.6 billion and $17.2 billion as of September 30, 2010, and 2009, respectively. All cash held by depositary institutions is either insured by the Federal Deposit Insurance Corporation (FDIC) or collateralized by securities pledged by the depositary institution or through securities held under reverse repurchase agreements. The Dodd-Frank Wall Street Reform and Consumer Protection Act (signed on July 21, 2010) made changes related to the FDIC’s deposit insurance mandate. These changes include a permanent increase in the standard deposit insurance amount to $250,000 (retroactive to January 1, 2008) and unlimited deposit insurance coverage for non-interest bearing transaction accounts for two years, from December 31, 2010, to the end of 2012.

International monetary assets include the U.S. reserve position in the International Monetary Fund (IMF) and U.S. holdings of Special Drawing Rights (SDRs).

The U.S. reserve position in the IMF reflects the reserve asset portion of the financial subscription that the United States has paid in as part of its participation in the IMF. The IMF promotes international monetary cooperation and a stable payment system to facilitate growth in the world economy. Its primary activities are surveillance of member economies, financial assistance as appropriate and technical assistance.

Only a portion of the U.S. financial subscriptions to the IMF is made in the form of reserve assets; the remainder is provided in the form of a letter of credit from the United States to the IMF. The balance available under the letter of credit totaled $45.2 billion and $53.1 billion as of September 30, 2010, and 2009, respectively. The U.S. reserve position in the IMF has a U.S. dollar equivalent of $12.9 billion and $13.4 billion as of September 30, 2010, and 2009, respectively.

SDRs are in international monetary reserves issued by the IMF. These interest-bearing assets can be obtained by IMF allocations, transactions with IMF member countries, interest earnings on SDR holdings, or U.S. reserve position in the IMF. SDR holdings are an asset of Treasury’s Exchange Stabilization Fund (ESF), which held SDRs totaling $57.4 billion and $58.0 billion equivalent as of September 30, 2010, and 2009, respectively.

The IMF allocates SDRs to its members in proportion to each member’s quota in the IMF. The SDR Act, enacted in 1968, authorized the Secretary of the Treasury to issue SDRCs to the Federal Reserve in exchange for dollars. The amount of SDRCs outstanding cannot exceed the dollar value of SDR holdings. The Secretary of the Treasury determines when Treasury will issue or redeem SDRCs. SDRCs outstanding totaled $5.2 billion as of September 30, 2010, and 2009 respectively, and are included in Note 19—Other Liabilities.

As of September 30, 2010, and 2009, other liabilities included $55.0 billion and $56.0 billion of interest-bearing liability to the IMF for SDR allocations. The SDR allocation item represents the cumulative total of SDRs distributed by the IMF to the United States in allocations that occurred in 1970, 1971, 1972, 1979, 1980, 1981, and 2009.

Gold is valued at the statutory price of $42.2222 per fine troy ounce. The number of fine troy ounces was 261,498,900 as of September 30, 2010, and 2009. The market value of gold on the London Fixing was $1,307 and $996 per fine troy ounce as of September 30, 2010, and 2009, respectively. Gold totaling $11.1 billion as of September 30, 2010, and 2009, was pledged as collateral for gold certificates issued and authorized to the FRBs by the Secretary of the Treasury. Gold certificates were valued at $11.0 billion as of September 30, 2010, and 2009, which are included in Note 19—Other Liabilities. Treasury may redeem the gold certificates at any time. Foreign currency is translated into U.S. dollars at the exchange rate at fiscal yearend. The foreign currency is maintained by various U.S. Federal agencies and foreign banks.


Last Updated:  December 07, 2011