Most investments in treasury securities are reflected at par value with
a separate line for unrealized discount on the FMS 2108 as prescribed in
the Treasury Financial Manual (TFM) volume 1, part 2, chapter 4200,
appendix 1. The exception is investment in treasury zero coupon bonds
which are reported at par and adjusted to market value on the FMS 2108.
The market value adjustment is necessary to meet the Department of
Treasury policy for scoring zero coupon bond investments against the
debt subject to limit, the statutory ceiling of the amount of U.S. debt
outstanding. It was agreed that the market value basis was preferable to
the par value basis for scoring zero coupon bonds against the debt
subject to limit because scoring these securities at par would adversely
affect the debt subject to limit.

Each month the Department of Treasury provides the market value
adjustment to the agencies. The agencies are to report the adjustment on
their SF 224 Statement of Transactions. If the market value increases,
the agency reports the following on the SF 224:

[Column 1 - TAFS]{.underline} [Column 2- Receipts]{.underline}

\(72\) 89X5227 1,000 Credit

89X5227.2 1,000

If the market value decreases, the agency reports the following on the
SF 224:

[Column 1 - TAFS]{.underline} [Column 2- Receipts]{.underline}

\(72\) 89X5227 1,000

89X5227.2 1,000 Credit

The subclass (72) represents discount on treasury zero coupon bonds.
Subclass (72) activity corresponds to .931 on the FMS 2108. The point .2
account is a receipt account for earnings on investments.

On the FMS 2108, the par value of the zero is reflected as investments
in Treasury securities as 971 activity. The discount and the market
value adjustments are reflected as unamortized discount designated as
.931 activity.

**This scenario uses the June 2006 TFM (TFM release S2-06-02 Part 1 (P&F
only) and Part 2).**

The following USSGL accounts are used in this scenario:

  --------------------------- --------------------------------------------------------------
  **Account Number**          **Account Name**

                              

  [Budgetary]{.underline}     

  4114                        Appropriated Trust or Special Fund Receipts

  4201                        Total Actual Resources -- Collected

  4267                        Other Actual "governmental-type" Collections From Non-Federal
                              Sources

  **4290**                    **Amortization and Market Adjustment -- Investments in Zero
                              Coupon Bonds**

  4394                        Receipts Not available for Obligation Upon Collection

  4398                        Offsetting Collections Temporarily Precluded From Obligation

  4450                        Unapportioned Authority

                              

  [Proprietary]{.underline}   

  1010                        Fund Balance With Treasury

  1610                        Investments in U.S. Treasury Securities Issued by the Bureau
                              of the Public Debt

  1611                        Discount on U.S. Treasury Securities Issued by the Bureau of
                              the Public Debt

  1613                        Amortization of Discount and Premium on U.S. Treasury
                              Securities Issued by the Bureau of the Public Debt

  1630                        Investments in U.S. Treasury Zero Coupon Bonds Issued by the
                              Bureau of the Public Debt

  1631                        Discount on U.S. Treasury Zero Coupon Bonds Issued by the
                              Bureau of the Public Debt

  1633                        Amortization of Discount U.S. Zero Coupon Bonds Issued by
                              Public Debt

  1638                        Market Adjustment -- Investments in U.S. Treasury Zero Coupon
                              Bonds

  1639                        Contra market Adjustment -- Investments in U.S. Treasury Zero
                              Coupon Bonds

  3310                        Cumulative Results of Operations

  5311                        Interest Revenue -- Investments

  5900                        Other Revenue

                              
  --------------------------- --------------------------------------------------------------

[Definitions:]{.underline}

Proposed new account and definition:

**Account Title**: Amortization and Market Adjustment -- Investments in
Zero Coupon Bonds

**Account Number**: 4290

**Normal Balance**: Debit

**Definition**: The amount of amortized discount, unrealized gains and
losses (for market adjustments), and realized gains and losses in
Treasury Appropriations Fund Symbols that invest offsetting collections
in Zero Coupon Bonds.

**Zero Coupon Bond Investments**

**Part One -- Special and Non-Revolving Trust Fund**

The following scenario reflects investment activity for a special or
non-revolving trust fund. The fund collects receipts that are available
for investment but not obligation. If funds are available for
obligation, use the appropriate SGL account in place of SGL 4394.

+-----------------------+----------------------------------------------+
| Trial balance *prior* | # [Budgetary]{.underline}                    |
| to investment.        |                                              |
|                       | 4114 Appropriated Trust or Special Fund      |
| Revenue is classified | Receipts 60,000,000                          |
| as exchange           |                                              |
|                       | 4394 Receipts Not Available for Obligation   |
| **Note**: This is not | Upon                                         |
| a beginning trial     |                                              |
| balance or an ending  | Collection 60,000,000                        |
| trial balance. It     |                                              |
| lists the balances    | # [Proprietary]{.underline}                  |
| prior to the          |                                              |
| investment.           | 1010 Fund Balance with Treasury 60,000,000   |
|                       |                                              |
|                       | 5900 Other Revenue 60,000,000                |
+-----------------------+----------------------------------------------+
| 1\. Invests in a      | #### Budgetary                               |
| Treasury zero coupon  |                                              |
| bond (non-marketable, | None                                         |
| market based). The    |                                              |
| par value is          | # Proprietary                                |
| \$200,000,000 and the |                                              |
| discount is           | 1630 Investments in U.S. Treasury Zero       |
| \$180,000,000.        | Coupon Bonds                                 |
|                       |                                              |
| TC B128               | Issued by the Bureau of the Public Debt      |
|                       | 200,000,000                                  |
|                       |                                              |
|                       | ########                                     |
|                       |   1010 Fund Balance with Treasury 20,000,000 |
|                       |                                              |
|                       | ########  1631                               |
|                       | Discount on U.S. Treasury Zero Coupon Bonds  |
|                       |                                              |
|                       | Issued by the Bureau of the Public Debt      |
|                       | 180,000,000                                  |
+-----------------------+----------------------------------------------+

+-----------------------+----------------------------------------------+
| 2\. A Treasury note   | # [Budgetary]{.underline}                    |
| (non-marketable,      |                                              |
| market based) is      | None                                         |
| purchased. The par    |                                              |
| value is \$9,000,000  | # [Proprietary]{.underline}                  |
| and the discount is   |                                              |
| \$1,500,000.          | 1610 Investments in U.S. Treasury Securities |
|                       |                                              |
| TC B128               | Issued by the Bureau of the Public Debt      |
|                       | 9,000,000                                    |
|                       |                                              |
|                       | 1010 Fund Balance with Treasury 7,500,000    |
|                       |                                              |
|                       | 1611Discount on U.S. Treasury Securities     |
|                       |                                              |
|                       | Issued by the Bureau of the Public Debt      |
|                       | 1,500,000                                    |
+-----------------------+----------------------------------------------+
| 3\. The discount on   | # [Budgetary]{.underline}                    |
| the zero coupon bond  |                                              |
| is amortized. SFFAS   | 4114 Appropriated Trust or Special Fund      |
| No. 1 requires        | Receipts 9,000,000                           |
| agencies to use the   |                                              |
| interest method       | 4394 Receipts Unavailable for Obligation     |
| (paragraph 71).       | Upon                                         |
| Amortization occurs   |                                              |
| monthly but for       | Collection 9,000,000                         |
| illustrative purpose  |                                              |
| it is recorded in one | #### Proprietary                             |
| transaction.          |                                              |
|                       | 1633 Amortization of Discount U.S. Zero      |
| TC E11X               | Coupon Bonds                                 |
|                       |                                              |
|                       | Issued by Public Debt 9,000,000              |
|                       |                                              |
|                       | 5311 Interest Revenue -- Investments         |
|                       | 9,000,000                                    |
|                       |                                              |
|                       | #                                            |
+-----------------------+----------------------------------------------+
| 4\. The Treasury zero | # [Budgetary]{.underline}                    |
| coupon bond is        |                                              |
| adjusted to           | 4114 Appropriated Trust or Special Fund      |
| \$25,000,000, the     | Receipts 5,000,000                           |
| current market value  |                                              |
| based on information  | 4394 Receipts Unavailable for Obligation     |
| provided monthly from | Upon                                         |
| the Department of     |                                              |
| Treasury.             | Collection 5,000,000                         |
|                       |                                              |
| TC F140               | # [Proprietary]{.underline}                  |
|                       |                                              |
| **Note**:             | 1638 Market Adjustment -- Investments in     |
|                       | U.S. Treasury Zero                           |
|                       |                                              |
|                       | Coupon Bonds 5,000,000                       |
|                       |                                              |
|                       | 1639[^1] Contra Market Adjustment -          |
|                       | Investments in U.S.                          |
|                       |                                              |
|                       | Treasury Zero Coupon Bonds 5,000,000         |
+-----------------------+----------------------------------------------+

+-----------------------+---------------------------------------------+
| 5\. At year end the   | # [Budgetary]{.underline}                   |
| discount on the note  |                                             |
| is amortized. SFFAS   | None                                        |
| No. 1 requires        |                                             |
| agencies to use the   | #### Proprietary                            |
| interest method       |                                             |
| (paragraph 71).       | 1613 Amortization of Discount and Premium   |
|                       | on U.S.                                     |
| TC E117               |                                             |
|                       | Treasury Securities Issued by the Bureau of |
|                       | the Public Debt 150,000                     |
|                       |                                             |
|                       | 5311 Interest Revenue - Investments 150,000 |
+-----------------------+---------------------------------------------+
| Pre closing adjusted  | # [Budgetary]{.underline}                   |
| trial balance         |                                             |
|                       | 4114 Appropriated Trust or Special Fund     |
|                       | Receipts \$74,000,000                       |
|                       |                                             |
|                       | 4398 Offsetting Collections Temporarily     |
|                       | Precluded From                              |
|                       |                                             |
|                       | Obligation [\$74,000,000]{.underline}       |
|                       |                                             |
|                       | \$74,000,000 \$74,000,000                   |
|                       |                                             |
|                       | #                                           |
|                       |                                             |
|                       | # [Proprietary]{.underline}                 |
|                       |                                             |
|                       | 1010 Fund Balance with Treasury \$          |
|                       | 32,500,000                                  |
|                       |                                             |
|                       | 1610 Investments in U.S. Treasury           |
|                       | Securities                                  |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 9,000,000                                   |
|                       |                                             |
|                       | 1611 Discount in U.S. Treasury Securities   |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 1,500,000                                   |
|                       |                                             |
|                       | ### 1613 A                                  |
|                       | mortization of Discount and Premium on U.S. |
|                       |                                             |
|                       | Treasury Securities Issued by Public Debt   |
|                       | \$ 150,000                                  |
|                       |                                             |
|                       | 1630 Investments in U.S. Treasury Zero      |
|                       | Coupon Bonds                                |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 200,000,000                                 |
|                       |                                             |
|                       | 1631 Discount in U.S. Treasury Zero Coupon  |
|                       | Bonds                                       |
|                       |                                             |
|                       | ########  Issued by t                       |
|                       | he Bureau of the Public Debt \$180,000,000  |
|                       |                                             |
|                       | ### 1633 Am                                 |
|                       | ortization of Discount on U.S. Zero Coupon  |
|                       |                                             |
|                       | Bonds Issued by Public Debt \$ 9,000,000    |
|                       |                                             |
|                       | ### 16                                      |
|                       | 38 Market Adjustment - Investments in Zero  |
|                       |                                             |
|                       | ###  Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 1639 Contra Market Adjustment - Investments |
|                       | in                                          |
|                       |                                             |
|                       | Zero Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 5311 Interest Revenue - Investments \$      |
|                       | 9,150,000                                   |
|                       |                                             |
|                       | 5900 Other Revenue [. \$                    |
|                       | 60,000,000]{.underline} \$255,650,000       |
|                       | \$255,650,000                               |
|                       |                                             |
|                       | #                                           |
+-----------------------+---------------------------------------------+
| 6\. To record the     | # [Budgetary]{.underline}                   |
| consolidation of      |                                             |
| actual net-funded     | 4201 Total Actual Resources Collected       |
| resources.            | 74,000,000                                  |
|                       |                                             |
| TC F302               | 4114 Appropriated Trust or Special Fund     |
|                       | Receipts 74,000,000                         |
+-----------------------+---------------------------------------------+
| 7\. To record the     | #### Proprietary                            |
| closing of revenue to |                                             |
| cumulative results of | 5311 Interest Revenue - Investments         |
| operations.           | 9,150,000                                   |
|                       |                                             |
| TC F336               | 5900 Other Revenue 60,000,000               |
|                       |                                             |
|                       | 3310 Cumulative Results of Operations       |
|                       | 69,150,000                                  |
+-----------------------+---------------------------------------------+
| Post closing trial    | # [Budgetary]{.underline}                   |
| balance               |                                             |
|                       | 4201 Total Actual Resources Collected       |
|                       | \$74,000,000                                |
|                       |                                             |
|                       | 4394 Receipts Not Available for Obligation  |
|                       |                                             |
|                       | Upon Collection [\$74,000,000]{.underline}  |
|                       |                                             |
|                       | \$74,000,000 \$74,000,000                   |
|                       |                                             |
|                       | #                                           |
|                       |                                             |
|                       | # [Proprietary]{.underline}                 |
|                       |                                             |
|                       | 1010 Fund Balance with Treasury \$          |
|                       | 32,500,000                                  |
|                       |                                             |
|                       | 1610 Investments in U.S. Treasury           |
|                       | Securities                                  |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 9,000,000                                   |
|                       |                                             |
|                       | 1611 Discount in U.S. Treasury Securities   |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 1,500,000                                   |
|                       |                                             |
|                       | ### 1613 A                                  |
|                       | mortization of Discount and Premium on U.S. |
|                       |                                             |
|                       | Treasury Securities Issued by Public Debt   |
|                       | \$ 150,000                                  |
|                       |                                             |
|                       | 1630 Investments in U.S. Treasury Zero      |
|                       | Coupon Bonds Issued                         |
|                       |                                             |
|                       | by the Bureau of the Public Debt \$         |
|                       | 200,000,000                                 |
|                       |                                             |
|                       | 1631 Discount in U.S. Treasury Zero Coupon  |
|                       | Bonds                                       |
|                       |                                             |
|                       | ########  Issued by t                       |
|                       | he Bureau of the Public Debt \$180,000,000  |
|                       |                                             |
|                       | ### 1633 Am                                 |
|                       | ortization of Discount on U.S. Zero Coupon  |
|                       |                                             |
|                       | Bonds Issued by Public Debt \$ 9,000,000    |
|                       |                                             |
|                       | ### 16                                      |
|                       | 38 Market Adjustment - Investments in Zero  |
|                       |                                             |
|                       | ###  Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 1639 Contra Market Adjustment - Investments |
|                       | in                                          |
|                       |                                             |
|                       | Zero Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 3310 Cumulative Results of Operations [. \$ |
|                       | 69,150,000]{.underline} \$255,650,000       |
|                       | \$255,650,000                               |
+-----------------------+---------------------------------------------+

SF133 Report on Budget Execution and Budgetary Resources

  ------------- ---------------- ------------------------------------------------------ ----------
  **BUDGETARY                                                                           
  RESOURCES**                                                                           

  3\. Budget                                                                            
  authority:                                                                            

                A.                                                                      
                Appropriation:                                                          

                                 1\. Actual (4114E, 4394E)                              0

  7\. Total                                                                             0
  budgetary                                                                             
  resources                                                                             

  **status of                                                                           
  budgetary                                                                             
  resources**                                                                           

  11\. Total                                                                            0
  status of                                                                             
  budgetary                                                                             
  resources                                                                             

                                                                                        
  ------------- ---------------- ------------------------------------------------------ ----------

**FMS 2108 Yearend Closing Statement Unexpended Balances Investments,
and Imprest Funds**

  ------------------------------- ------------ ------------- ------------- ------------------- -----
  Column 1. Treasury              89X5227      89X5227.971   89X5227.911   89X5227.931         
  Appropriation Fund Symbol                                                                    

  Column 2. Preclosing Unexpended 32,500,000   209,000,000                                     
  Balance -- Treasury Supplied                                                                 

  Column 5. Postclosing           32,500,000                                                   
  Unexpended Balance                                                                           

  Column 6. For Treasury                       209,000,000                                     
  Appropriation Fund Symbols With                                                              
  Investments in Treasury                                                                      
  Securities (1610E, 1630E)                                                                    

  Column 6. For Treasury                                     (1,500,000)                       
  Appropriation Fund Symbols With                                                              
  Unrealized Discounts (1611E)                                                                 

  **Column 6. For Treasury                                                 **(166,000,000)**   
  Appropriation Fund Symbols With                                                              
  Unamortized Discounts or                                                                     
  Premiums (1631E, 1633E,                                                                      
  1638E)**                                                                                     

  Column 11. Unobligated Balance  74,000,000                                                   
  (4394E)                                                                                      

                                                                                               
  ------------------------------- ------------ ------------- ------------- ------------------- -----

**Budget Program and Financing (P&F) Schedule**

  --------------------------------------------------------- -------------
  **new budget authority (gross), detail**                  

  4020 Appropriation (special fund) (+) (4114E, 4394E)      0

  7000 Total new budget authority (gross) (-)(4000...6990   0
  and 2200)                                                 

                                                            

  **net budget authority and outlays**                      

  8900 Budget authority (net) (+) (sum 2200 --              
  (8800..8845), 8895, 8896)                                 

  9000 Outlays (net) (+) (sum (8690..8698) -- (8840..8845)) 

                                                            

  **memorandum (non-add) entries**                          

  9202 Total investments, end of year: Federal securities:  209,000,000
  Par value (+) (1610E1630E)                                

  []{.mark}                                                 
  --------------------------------------------------------- -------------

**Balance Sheet**

  ------------- -------------------- ---------------------------------------------------- ------------
  Assets                                                                                  

                Intragovernmental:                                                        

                                     1\. Fund balance with Treasury (1010E)               32,500,000

                                     2\. Investments (1610E, 1611E, 1613E, 1630E, 1631E,  36,650,000
                                     1633E, 1638E, 1639E)                                 

                6\. Total                                                                 69,150,000
                Intragovernmental                                                         

  15\. Total                                                                              69,150,000
  assets                                                                                  

                                                                                          

  Net position:                                                                           

                32\. Cumulative                                                           69,150,000
                results of                                                                
                operations -- other                                                       
                funds                                                                     

                33\. Total net                                                            69,150,000
                position                                                                  

  34\. Total                                                                              69,150,000
  liabilities                                                                             
  and net                                                                                 
  position                                                                                

                                                                                          
  ------------- -------------------- ---------------------------------------------------- ------------

**Net Cost**

  ------------ --------- --------------------------------------------------- --------------
  Program                                                                    
  Costs:                                                                     

               Program                                                       
               A:                                                            

                         2\. Less: Earned Revenue (5311E, 5900E)             (69,150,000)

                                                                             

  6\. Net Cost                                                               (69,150,000)
  of                                                                         
  Operations                                                                 

                                                                             
  ------------ --------- --------------------------------------------------- --------------

Change in Net Position

  ------------- ----------------------------------- ---------------- ----------------
                                                    **Earmarked      **All Other
                                                    Funds**          Funds**

  Cumulative                                                         
  Results Of                                                         
  Operations:                                                        

  Budgetary                                                          
  Financing                                                          
  Sources:                                                           

                6\. Nonexchange Revenue (5311E,                      0
                5900E)                                               

  14\. Total                                                         0
  Financing                                                          
  Sources                                                            

                                                                     

  15\. Net Cost                                                      (69,150,000)
  of Operations                                                      
  (+/-)                                                              

                                                                     

  16\. Net                                                           (69,150,000)
  Change                                                             

                                                                     

  17\.                                                               (69,150,000)
  Cumulative                                                         
  Results of                                                         
  Operations                                                         

                                                                     

  27\. Net                                                           (69,150,000)
  Position                                                           

                                                                     
  ------------- ----------------------------------- ---------------- ----------------

**Statement of Financing**

  -------------- -------------- ---------------------------------------------------- ------------
  *Resources                                                                         
  Used to                                                                            
  Finance                                                                            
  Activities:*                                                                       

  Budgetary                                                                          
  Resources                                                                          
  Obligated                                                                          

                 4\. Less:                                                           60,000,000
                 Offsetting                                                          
                 receipts                                                            
                 (5900E)                                                             

                 5\. Net                                                             60,000,000
                 obligations                                                         

  *11. Total                                                                         60,000,000
  resources used                                                                     
  to finance                                                                         
  activities*                                                                        

                                                                                     

  *18. Total                                                                         60,000,000
  resources used                                                                     
  to finance the                                                                     
  net cost of                                                                        
  operations                                                                         
  (11-17)*                                                                           

                                                                                     

  *Components of                                                                     
  the Net Cost                                                                       
  of Operations                                                                      
  that will not                                                                      
  Require or                                                                         
  Generate                                                                           
  Resources in                                                                       
  the Current                                                                        
  Period:*                                                                           

  Components not                                                                     
  Requiring or                                                                       
  Generating                                                                         
  Resources:                                                                         

                 25\.                                                                9,150,000
                 Depreciation                                                        
                 and                                                                 
                 amortization                                                        
                 (1613E, 1633E)                                                      

                 28\. Total                                                          9,150,000
                 components of                                                       
                 Net Cost of                                                         
                 Operations                                                          
                 that will not                                                       
                 require or                                                          
                 generate                                                            
                 resources                                                           

                                                                                     

                 *29. Total                                                          9,150,000
                 components of                                                       
                 net cost of                                                         
                 operations                                                          
                 that will not                                                       
                 require or                                                          
                 generate                                                            
                 resources in                                                        
                 the current                                                         
                 period*                                                             

                                                                                     

                 *30. Net Cost                                                       69,150,000
                 of Operations                                                       
                 (18+29)*                                                            

                                                                                     
  -------------- -------------- ---------------------------------------------------- ------------

**Part Two -- Revolving Trust Fund**

The following scenario reflects investment activity for a revolving
trust fund. The fund collects receipts that are available for investment
but not obligation. If funds are available for obligation, use the
appropriate SGL account in place of SGL 4398.

+-----------------------+----------------------------------------------+
| Trial balance prior   | # [Budgetary]{.underline}                    |
| to investment.        |                                              |
|                       | 4267 Other Actual "governmental-type"        |
| Revenue is classified | Collections From                             |
| as exchange           |                                              |
|                       | Non-Federal Sources 60,000,000               |
| **Note**: This is not |                                              |
| a beginning trial     | 4398 Offsetting Collections Temporarily      |
| balance or an ending  | Precluded                                    |
| trial balance. It     |                                              |
| lists the balances    | From Obligation 60,000,000                   |
| prior to the          |                                              |
| investment.           | # [Proprietary]{.underline}                  |
|                       |                                              |
|                       | 1010 Fund Balance with Treasury 60,000,000   |
|                       |                                              |
|                       | 5900 Other Revenue 60,000,000                |
+-----------------------+----------------------------------------------+
| 1\. Invests in a      | #### Budgetary                               |
| Treasury zero coupon  |                                              |
| bond (non-marketable, | None                                         |
| market based). The    |                                              |
| par value is          | # Proprietary                                |
| \$200,000,000 and the |                                              |
| discount is           | 1630 Investments in U.S. Treasury Zero       |
| \$180,000,000.        | Coupon Bonds                                 |
|                       |                                              |
| TC B128               | Issued by the Bureau of the Public Debt      |
|                       | 200,000,000                                  |
|                       |                                              |
|                       | ########                                     |
|                       |   1010 Fund Balance with Treasury 20,000,000 |
|                       |                                              |
|                       | ########  1631                               |
|                       | Discount on U.S. Treasury Zero Coupon Bonds  |
|                       |                                              |
|                       | Issued by the Bureau of the Public Debt      |
|                       | 180,000,000                                  |
+-----------------------+----------------------------------------------+

+-----------------------+----------------------------------------------+
| 2\. A Treasury note   | # [Budgetary]{.underline}                    |
| (non-marketable,      |                                              |
| market based) is      | None                                         |
| purchased. The par    |                                              |
| value is \$9,000,000  | # [Proprietary]{.underline}                  |
| and the discount is   |                                              |
| \$1,500,000.          | 1610 Investments in U.S. Treasury Securities |
|                       |                                              |
| TC B128               | Issued by the Bureau of the Public Debt      |
|                       | 9,000,000                                    |
|                       |                                              |
|                       | 1010 Fund Balance with Treasury 7,500,000    |
|                       |                                              |
|                       | 1611Discount on U.S. Treasury Securities     |
|                       |                                              |
|                       | Issued by the Bureau of the Public Debt      |
|                       | 1,500,000                                    |
+-----------------------+----------------------------------------------+
| 3\. The discount on   | # [Budgetary]{.underline}                    |
| the zero coupon bond  |                                              |
| is amortized. SFFAS   | **4290 Amortization and Market Adjustment -- |
| No. 1 requires        | Investments**                                |
| agencies to use the   |                                              |
| interest method       | **in Zero Coupon Bonds 9,000,000**           |
| (paragraph 71).       |                                              |
| Amortization occurs   | 4398 Offsetting Collections Temporarily      |
| monthly but for       | Precluded                                    |
| illustrative purpose  |                                              |
| it is recorded in one | From Obligation 9,000,000                    |
| transaction.          |                                              |
|                       | #### Proprietary                             |
| TC E11X               |                                              |
|                       | 1633 Amortization of Discount U.S. Zero      |
|                       | Coupon Bonds                                 |
|                       |                                              |
|                       | Issued by Public Debt 9,000,000              |
|                       |                                              |
|                       | 5311 Interest Revenue -- Investments         |
|                       | 9,000,000                                    |
|                       |                                              |
|                       | #                                            |
+-----------------------+----------------------------------------------+
| 4\. The Treasury zero | # [Budgetary]{.underline}                    |
| coupon bond is        |                                              |
| adjusted to           | **4290 Amortization and Market Adjustment -- |
| \$25,000,000, the     | investments**                                |
| current market value  |                                              |
| based on information  | **in Zero Coupon Bonds** **5,000,000**       |
| provided monthly from |                                              |
| the Department of     | 4398 Offsetting Collections Temporarily      |
| Treasury.             | Precluded                                    |
|                       |                                              |
| TC F14X               | From Obligation 5,000,000                    |
|                       |                                              |
| **Note**:             | # [Proprietary]{.underline}                  |
|                       |                                              |
|                       | 1638 Market Adjustment -- Investments in     |
|                       | U.S. Treasury Zero                           |
|                       |                                              |
|                       | Coupon Bonds 5,000,000                       |
|                       |                                              |
|                       | 1639[^2] Contra Market Adjustment -          |
|                       | Investments in U.S.                          |
|                       |                                              |
|                       | Treasury Zero Coupon Bonds 5,000,000         |
+-----------------------+----------------------------------------------+

+-----------------------+---------------------------------------------+
| 5\. At year end the   | # [Budgetary]{.underline}                   |
| discount on the note  |                                             |
| is amortized. SFFAS   | None                                        |
| No. 1 requires        |                                             |
| agencies to use the   | #### Proprietary                            |
| interest method       |                                             |
| (paragraph 71).       | 1613 Amortization of Discount and Premium   |
|                       | on U.S.                                     |
| TC E117               |                                             |
|                       | Treasury Securities Issued by the Bureau of |
|                       | the Public Debt 150,000                     |
|                       |                                             |
|                       | 5311 Interest Revenue - Investments 150,000 |
+-----------------------+---------------------------------------------+
| Pre closing adjusted  | # [Budgetary]{.underline}                   |
| trial balance         |                                             |
|                       | 4267 Other Actual "governmental-type"       |
|                       | Collections From                            |
|                       |                                             |
|                       | Non-Federal Sources \$60,000,000            |
|                       |                                             |
|                       | **4290 Amortization and Market Adjustment   |
|                       | -- Investments**                            |
|                       |                                             |
|                       | **in Zero Coupon Bonds** **\$14,000,000**   |
|                       |                                             |
|                       | 4398 Offsetting Collections Temporarily     |
|                       | Precluded                                   |
|                       |                                             |
|                       | From Obligation [\$74,000,000]{.underline}  |
|                       |                                             |
|                       | \$74,000,000 \$74,000,000                   |
|                       |                                             |
|                       | #                                           |
|                       |                                             |
|                       | # [Proprietary]{.underline}                 |
|                       |                                             |
|                       | 1010 Fund Balance with Treasury \$          |
|                       | 32,500,000                                  |
|                       |                                             |
|                       | 1610 Investments in U.S. Treasury           |
|                       | Securities                                  |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 9,000,000                                   |
|                       |                                             |
|                       | 1611 Discount in U.S. Treasury Securities   |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 1,500,000                                   |
|                       |                                             |
|                       | ### 1613 A                                  |
|                       | mortization of Discount and Premium on U.S. |
|                       |                                             |
|                       | Treasury Securities Issued by Public Debt   |
|                       | \$ 150,000                                  |
|                       |                                             |
|                       | 1630 Investments in U.S. Treasury Zero      |
|                       | Coupon Bonds                                |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 200,000,000                                 |
|                       |                                             |
|                       | 1631 Discount in U.S. Treasury Zero Coupon  |
|                       | Bonds                                       |
|                       |                                             |
|                       | ########  Issued by t                       |
|                       | he Bureau of the Public Debt \$180,000,000  |
|                       |                                             |
|                       | ### 1633 Am                                 |
|                       | ortization of Discount on U.S. Zero Coupon  |
|                       |                                             |
|                       | Bonds Issued by Public Debt \$ 9,000,000    |
|                       |                                             |
|                       | ### 16                                      |
|                       | 38 Market Adjustment - Investments in Zero  |
|                       |                                             |
|                       | ###  Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 1639 Contra Market Adjustment - Investments |
|                       | in                                          |
|                       |                                             |
|                       | Zero Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 5311 Interest Revenue - Investments \$      |
|                       | 9,150,000                                   |
|                       |                                             |
|                       | 5900 Other Revenue [. \$                    |
|                       | 60,000,000]{.underline} \$255,650,000       |
|                       | \$255,650,000                               |
|                       |                                             |
|                       | #                                           |
+-----------------------+---------------------------------------------+
| 6\. To record the     | # [Budgetary]{.underline}                   |
| consolidation of      |                                             |
| actual net-funded     | 4201 Total Actual Resources Collected       |
| resources.            | 74,000,000                                  |
|                       |                                             |
| TC F302               | 4267 Other Actual "governmental-type"       |
|                       | Collections                                 |
|                       |                                             |
|                       | From Non-Federal Sources 60,000,000         |
|                       |                                             |
|                       | **4290 Amortization and Market Adjustment   |
|                       | --**                                        |
|                       |                                             |
|                       | **Investments in Zero Coupon Bonds          |
|                       | 14,000,000**                                |
+-----------------------+---------------------------------------------+
| 7\. To record the     | #### Proprietary                            |
| closing of revenue to |                                             |
| cumulative results of | 5311 Interest Revenue - Investments         |
| operations.           | 9,150,000                                   |
|                       |                                             |
| TC F336               | 5900 Other Revenue 60,000,000               |
|                       |                                             |
|                       | 3310 Cumulative Results of Operations       |
|                       | 69,150,000                                  |
+-----------------------+---------------------------------------------+
| Post closing trial    | # [Budgetary]{.underline}                   |
| balance               |                                             |
|                       | 4201 Total Actual Resources Collected       |
|                       | \$74,000,000                                |
|                       |                                             |
|                       | 4394 Receipts Not Available for Obligation  |
|                       |                                             |
|                       | Upon Collection [\$74,000,000]{.underline}  |
|                       |                                             |
|                       | \$74,000,000 \$74,000,000                   |
|                       |                                             |
|                       | #                                           |
|                       |                                             |
|                       | # [Proprietary]{.underline}                 |
|                       |                                             |
|                       | 1010 Fund Balance with Treasury \$          |
|                       | 32,500,000                                  |
|                       |                                             |
|                       | 1610 Investments in U.S. Treasury           |
|                       | Securities                                  |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 9,000,000                                   |
|                       |                                             |
|                       | 1611 Discount in U.S. Treasury Securities   |
|                       |                                             |
|                       | Issued by the Bureau of the Public Debt \$  |
|                       | 1,500,000                                   |
|                       |                                             |
|                       | ### 1613 A                                  |
|                       | mortization of Discount and Premium on U.S. |
|                       |                                             |
|                       | Treasury Securities Issued by Public Debt   |
|                       | \$ 150,000                                  |
|                       |                                             |
|                       | 1630 Investments in U.S. Treasury Zero      |
|                       | Coupon Bonds Issued                         |
|                       |                                             |
|                       | by the Bureau of the Public Debt \$         |
|                       | 200,000,000                                 |
|                       |                                             |
|                       | 1631 Discount in U.S. Treasury Zero Coupon  |
|                       | Bonds                                       |
|                       |                                             |
|                       | ########  Issued by t                       |
|                       | he Bureau of the Public Debt \$180,000,000  |
|                       |                                             |
|                       | ### 1633 Am                                 |
|                       | ortization of Discount on U.S. Zero Coupon  |
|                       |                                             |
|                       | Bonds Issued by Public Debt \$ 9,000,000    |
|                       |                                             |
|                       | ### 16                                      |
|                       | 38 Market Adjustment - Investments in Zero  |
|                       |                                             |
|                       | ###  Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 1639 Contra Market Adjustment - Investments |
|                       | in                                          |
|                       |                                             |
|                       | Zero Coupon Bonds \$ 5,000,000              |
|                       |                                             |
|                       | 3310 Cumulative Results of Operations [. \$ |
|                       | 69,150,000]{.underline} \$255,650,000       |
|                       | \$255,650,000                               |
+-----------------------+---------------------------------------------+

SF133 Report on Budget Execution and Budgetary Resources

  ------------- ------------- --------------------------------------------------- ----------------
  **BUDGETARY                                                                     
  RESOURCES**                                                                     

  3\. Budget                                                                      
  authority:                                                                      

                D. Spending                                                       
                Authority                                                         
                from                                                              
                offsetting                                                        
                collections                                                       
                (gross):                                                          

                **1.                                                              
                Earned:**                                                         

                              **A. Collected (4267E, 4290E)**                     **74,000,000**

  5\.                                                                             (74,000,000)
  Temporarily                                                                     
  not available                                                                   
  pursuant to                                                                     
  Public Law                                                                      
  \_\_                                                                            
  (-)(4398E)                                                                      

  7\. Total                                                                       0
  budgetary                                                                       
  resources                                                                       

  **status of                                                                     
  budgetary                                                                       
  resources**                                                                     

  11\. Total                                                                      0
  status of                                                                       
  budgetary                                                                       
  resources                                                                       

  **NET                                                                           
  OUTLAYS**                                                                       

  19.Net                                                                          
  Outlays:                                                                        

                B. Offsetting                                                     (74,000,000)
                collections                                                       
                (-)(4267E,                                                        
                4273E)                                                            
  ------------- ------------- --------------------------------------------------- ----------------

**FMS 2108 Yearend Closing Statement Unexpended Balances Investments,
and Imprest Funds**

  ------------------------------- ------------ ------------- ------------- ------------------- -----
  Column 1. Treasury              89X5227      89X5227.971   89X5227.911   89X5227.931         
  Appropriation Fund Symbol                                                                    

  Column 2. Preclosing Unexpended 32,500,000   209,000,000                                     
  Balance -- Treasury Supplied                                                                 

  Column 5. Postclosing           32,500,000                                                   
  Unexpended Balance                                                                           

  Column 6. For Treasury                       209,000,000                                     
  Appropriation Fund Symbols With                                                              
  Investments in Treasury                                                                      
  Securities (1610E, 1630E)                                                                    

  Column 6. For Treasury                                     (1,500,000)                       
  Appropriation Fund Symbols With                                                              
  Unrealized Discounts (1611E)                                                                 

  **Column 6. For Treasury                                                 **(166,000,000)**   
  Appropriation Fund Symbols With                                                              
  Unamortized Discounts or                                                                     
  Premiums (1631E, 1633E,                                                                      
  1638E)**                                                                                     

  Column 11. Unobligated Balance  74,000,000                                                   
  (4398E)                                                                                      

                                                                                               
  ------------------------------- ------------ ------------- ------------- ------------------- -----

**Budget Program and Financing (P&F) Schedule**

  -------------------------------------------------------- ----------------
  **new budget authority (gross), detail**                 

  **5800 Spending Authority from offsetting collections    **14,000,000**
  (cash)(+) (4267E 4290E)**                                

  5845 Portion precluded from obligation (limitation on    (14,000,000)
  obligations)(-) (4398)                                   

                                                           

  **OFFSETS**                                              

  Offsetting Collections from:                             

  8820 Interest on Federal securities (-) (4290)           (14,000,000)

  8845 Offsetting governmental collections (from           (60,000,000)
  non-Federal sources) (-) (4267E)                         

                                                           

  **net budget authority and outlays**                     

  8900 Budget authority (net) (+) (sum 2200 --             (74,000,000)
  (8800..8845), 8895, 8896)                                

  9000 Outlays (net) (+) (sum (8690..8698) --              
  (8840..8845))                                            

                                                           

  **memorandum (non-add) entries**                         

  9202 Total investments, end of year: Federal securities: 209,000,000
  Par value (+) (1610E,1630E)                              

  []{.mark}                                                
  -------------------------------------------------------- ----------------

**Balance Sheet**

  ------------- -------------------- ---------------------------------------------------- ------------
  Assets                                                                                  

                Intragovernmental:                                                        

                                     1\. Fund balance with Treasury (1010E)               32,500,000

                                     2\. Investments (1610E, 1611E, 1613E, 1630E, 1631E,  36,650,000
                                     1633E, 1638E, 1639E)                                 

                6\. Total                                                                 69,150,000
                Intragovernmental                                                         

  15\. Total                                                                              69,150,000
  assets                                                                                  

                                                                                          

  Net position:                                                                           

                32\. Cumulative                                                           69,150,000
                results of                                                                
                operations -- other                                                       
                funds                                                                     

                33\. Total net                                                            69,150,000
                position                                                                  

  34\. Total                                                                              69,150,000
  liabilities                                                                             
  and net                                                                                 
  position                                                                                

                                                                                          
  ------------- -------------------- ---------------------------------------------------- ------------

**Net Cost**

  ------------ --------- --------------------------------------------------- --------------
  Program                                                                    
  Costs:                                                                     

               Program                                                       
               A:                                                            

                         2\. Less: Earned Revenue (5311E, 5900E)             (69,150,000)

                                                                             

  6\. Net Cost                                                               (69,150,000)
  of                                                                         
  Operations                                                                 

                                                                             
  ------------ --------- --------------------------------------------------- --------------

Change in Net Position

  ------------- ----------------------------------- ---------------- ----------------
                                                    **Earmarked      **All Other
                                                    Funds**          Funds**

  Cumulative                                                         
  Results Of                                                         
  Operations:                                                        

  Budgetary                                                          
  Financing                                                          
  Sources:                                                           

                6\. Nonexchange Revenue (5311E,                      0
                5900E)                                               

  14\. Total                                                         0
  Financing                                                          
  Sources                                                            

                                                                     

  15\. Net Cost                                                      (69,150,000)
  of Operations                                                      
  (+/-)                                                              

                                                                     

  16\. Net                                                           (69,150,000)
  Change                                                             

                                                                     

  17\.                                                               (69,150,000)
  Cumulative                                                         
  Results of                                                         
  Operations                                                         

                                                                     

  27\. Net                                                           (69,150,000)
  Position                                                           

                                                                     
  ------------- ----------------------------------- ---------------- ----------------

**Statement of Financing**

  -------------- -------------- -------------------------------------------------- --------------
  *Resources                                                                       
  Used to                                                                          
  Finance                                                                          
  Activities:*                                                                     

  Budgetary                                                                        
  Resources                                                                        
  Obligated                                                                        

                 2\. Less:                                                         60,000,000
                 Spending                                                          
                 authority from                                                    
                 offsetting                                                        
                 collections                                                       
                 and recoveries                                                    
                 (4267E)                                                           

                 3\.                                                               60,000,000
                 Obligations                                                       
                 net of                                                            
                 offsetting                                                        
                 collections                                                       
                 and recoveries                                                    

                 5\. Net                                                           60,000,000
                 obligations                                                       
                 (3-4)                                                             

  *11. Total                                                                       60,000,000
  resources used                                                                   
  to finance                                                                       
  activities                                                                       
  (5+10)*                                                                          

                                                                                   

  *18. Total                                                                       60,000,000
  resources used                                                                   
  to finance the                                                                   
  net cost of                                                                      
  operations                                                                       
  (11-17)*                                                                         

                                                                                   

  *Components of                                                                   
  the Net Cost                                                                     
  of Operations                                                                    
  that will not                                                                    
  Require or                                                                       
  Generate                                                                         
  Resources in                                                                     
  the Current                                                                      
  Period:*                                                                         

  Components not                                                                   
  Requiring or                                                                     
  Generating                                                                       
  Resources:                                                                       

                 25\.                                                              9,150,000
                 Depreciation                                                      
                 and                                                               
                 amortization                                                      
                 (1613E, 1633E)                                                    

                 28\. Total                                                        9,150,000
                 components of                                                     
                 Net Cost of                                                       
                 Operations                                                        
                 that will not                                                     
                 require or                                                        
                 generate                                                          
                 resources                                                         

                                                                                   

                 *29. Total                                                        9,150,000
                 components of                                                     
                 net cost of                                                       
                 operations                                                        
                 that will not                                                     
                 require or                                                        
                 generate                                                          
                 resources in                                                      
                 the current                                                       
                 period*                                                           

                                                                                   

                 *30. Net Cost                                                     69,150,000
                 of Operations                                                     
                 (18+29)*                                                          

                                                                                   
  -------------- -------------- -------------------------------------------------- --------------

[^1]: If the zero coupon bond is reported at market value on the balance
    sheet, SGL account 7180 Unrealized Gains -- Investments may be used
    in place of SGL 1639 in transaction #3. If the market value
    decreases, use SGL 7280 Unrealized Losses -- Investments.

[^2]: If the zero coupon bond is reported at market value on the balance
    sheet, SGL account 7180 Unrealized Gains -- Investments may be used
    in place of SGL 1639 in transaction #3. If the market value
    decreases, use SGL 7280 Unrealized Losses -- Investments.