Audit Report

OIG-08-004

FINANCIAL MANAGEMENT: 

Report on the Bureau of the Public Debt Trust Fund Management 

Branch Schedules for Selected Trust Funds as of and for the 

Year Ended September 30, 2007 

November 5, 2007 

Office of 

Inspector General 

Department of the Treasury 
DEPARTMENT OF THE TREASURY

WASHINGTON, D.C. 20220

OFFICE OF November 5, 2007 INSPECTOR GE AL NER

MEMORANDUM FOR VAN ZECK, COMMISSIONER 

BUREAU OF THE PUBLIC DEBT 

FROM: Michael Fitzgerald /s/ 

Director, Financial Audits 

SUBJECT: Report on the Bureau of the Public Debt 

 Trust Fund Management Branch Schedules for 

 Selected Trust Funds as of and for the 

 Year Ended September 30, 2007 

I am pleased to transmit the attached Report on the Bureau of the Public Debt Trust 

Fund Management Branch (TFMB) Schedule of Assets and Liabilities and the related 

Schedule of Activity of Selected Trust Funds as of and for the year ended 

September 30, 2007 (the Schedules). Under a contract monitored by the Office of 

Inspector General, KPMG LLP, an independent certified public accounting firm, 

performed an examination of TFMB’s assertions pertaining to the Schedules as of 

and for the year ended September 30, 2007. These Schedules relate solely to the 

functions performed by TFMB as custodian of the following Trust Funds’ monies and 

investments: 

• Federal Supplementary Medical Insurance Trust Fund, 

• Federal Hospital Insurance Trust Fund, 

• Highway Trust Fund, 

• Airport and Airway Trust Fund, 

• Hazardous Substance Superfund Trust Fund, 

• Leaking Underground Storage Tank Trust Fund, 

• Oil Spill Liability Trust Fund, 

• Harbor Maintenance Trust Fund, 

• Inland Waterways Trust Fund, and 

• South Dakota Terrestrial Wildlife Habitat Restoration 

Trust Fund 

The contract required that the examination be performed in accordance with 

generally accepted government auditing standards and the attestation standards 

established by the American Institute of Certified Public Accountants. 
Page 2 

In its examination of TFMB’s assertions pertaining to the Schedules, KPMG LLP, 

found TFMB’s assertions (which are included in the Independent Auditors’ Report on 

Management’s Assertions) pertaining to the Schedules are fairly stated, in all 

material respects, based on the measurement and disclosure criteria set forth in 

note 1 to the Schedules. 

In connection with the contract, we reviewed KPMG LLP’s report and related 

documentation and inquired of its representatives. Our review, as differentiated from 

an examination of assertions in accordance with generally accepted government 

auditing standards, was not intended to enable us to express, and we do not 

express, an opinion on TFMB’s assertions. KPMG LLP is responsible for the attached 

auditors’ report dated November 2, 2007 and the conclusions expressed in the 

report. However, our review disclosed no instances where KPMG LLP did not 

comply, in all material respects, with generally accepted government auditing 

standards. 

Should you have any questions, please contact me at (202) 927-5789, or a member 

of your staff may contact Mark S. Levitt, Audit Manager, Financial Audits at 

(202) 927-5076. 

Attachment 

cc: Kenneth E. Carfine 

 Fiscal Assistant Secretary 
U. S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Schedules and Notes for Selected Trust Funds 

As of and for the Year Ended September 30, 2007
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Table of Contents 

Page 

I Independent Auditors’ Report on Management’s Assertions 1 

II Schedule of Assets and Liabilities of Selected Trust Funds 4 

III Schedule of Activity of Selected Trust Funds 7 

IV Notes to the Schedules of Selected Trust Funds 10 
I. INDEPENDENT AUDITORS’ REPORT ON 

MANAGEMENT’S ASSERTIONS 
KPMG LLP 

2001 M Street, NW 

Washington, DC 20036 

Independent Auditors’ Report on Management’s Assertions 

Inspector General, U.S. Department of the Treasury, and 

Commissioner, Bureau of the Public Debt: 

We have examined the following assertions of the Trust Fund Management Branch (TFMB) of the Bureau 

of the Public Debt (BPD) of the U.S. Department of the Treasury (Treasury) with respect to the applicable 

accounts of each trust fund included on the accompanying Schedule of Assets and Liabilities of Selected 

Trust Funds as of September 30, 2007 and the related Schedule of Activity of Selected Trust Funds for the 

year then ended: 

• Fund balance with Treasury is reported based on the balance reported by Treasury’s Financial 

Management Service (FMS) in the Government-wide Accounting and Reporting Modernization Project 

(GWA) Account Statement and reconciling transactions identified and recorded by TFMB. 

• Interest receivables are calculated and reported by TFMB based on the investment terms received and 

recorded by TFMB from BPD’s Federal Investments Branch (FIB) in the investment confirmations and 

monthly statements of account. 

• Other receivables and other payables are reported based on amounts received and recorded by TFMB 

from the program agencies responsible for the respective trust fund activity. 

• Investments, net are calculated and reported at net cost based on the cost and premium/discount 

amounts reported to TFMB in the investment confirmations and monthly statements of account 

received from FIB. 

• The market value of investments is calculated and reported by TFMB using the recorded investment 

cost and the market rates published in the September 28, 2007 Treasury Quote file and unrealized gains 

and losses are calculated and reported by TFMB as the difference between the market value and the 

investments, net. 

• Program agency equity is calculated and reported by TFMB based on the assets of the trust fund. 

• Available program agency equity is reported based on amounts received and recorded by TFMB from 

the program agencies responsible for the respective trust fund activity. 

• Other program agency equity is calculated and reported by TFMB as the difference between the assets 

of the trust fund and the available program agency equity received and recorded by TFMB from the 

program agencies responsible for the respective trust fund activity. 

KPMG LLP. KPMG LLP, a U.S. limited liability partnership, is 

a member of KPMG International, a Swiss cooperative. 
2

• Interest revenue is reported based on the amounts received and recorded by TFMB from FIB in the 

monthly statements of account and accrued interest and amortization calculated by TFMB.

Amortization of any premiums and discounts on investments is calculated and reported by TFMB

based on the investment terms reported to TFMB by FIB using the straight-line method for investments 

with a term equal to or less than one year and using the level yield method which approximates the 

interest method for investments with a term of greater than one year. 

• Penalties, fines, administrative fees, transfers in from program agencies, premiums, cost recoveries,

and other income are reported based on the amounts received and recorded by TFMB from FMS and 

the program agencies responsible for the respective trust fund activity. 

• Tax revenues, tax adjustments, tax refunds, and other income – tax revenue transfers are reported based

on the amounts received and recorded by TFMB from the Office of Tax Analysis, Internal Revenue 

Service and/or FMS. 

• Transfers to program agencies and other transfers are calculated and reported based on the

disbursement request amounts received and recorded by TFMB from the program agencies responsible 

for the respective trust fund activity and the disbursement amounts returned and recorded by TFMB

from the program agencies responsible for the respective trust fund activity. 

• Reimbursements to Treasury bureaus and the General Fund are reported based on the disbursement

request amounts received and recorded by TFMB from various Treasury bureaus, including BPD and 

FMS. 

TFMB’s management is responsible for the assertions. Our responsibility is to express an opinion on these 

assertions based on our examination. Our examination was conducted in accordance with attestation 

standards established by the American Institute of Certified Public Accountants (AICPA) and the standards 

applicable to attestation engagements contained in Government Auditing Standards issued by the 

Comptroller General of the United States and, accordingly, included examining on a test basis, evidence

supporting the assertions stated above and performing such other procedures as we considered necessary in 

the circumstances. We believe that our examination provides a reasonable basis for our opinion. 

In our opinion, TFMB’s assertions referred to above relating to the applicable accounts of each trust fund 

reported on the accompanying Schedule of Assets and Liabilities of Selected Trust Funds as of

September 30, 2007, and the related Schedule of Activity of Selected Trust Funds for the year then ended,

are fairly stated, in all material respects based on the measurement and disclosure criteria set forth in note 1 

to the schedules of selected trust funds. 

This report is intended solely for the information and use of the management of BPD, program agencies

responsible for their respective trust fund activity, the U.S. Department of the Treasury Office of Inspector

General, the Office of Management and Budget, the Government Accountability Office, and the U. S. 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

November 2, 2007
II. SCHEDULE OF ASSETS AND LIABILITIES OF 

SELECTED TRUST FUNDS 
U.S. DEPARTMENT OF THE TREASURY

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH

Schedule of Assets and Liabilities of Selected Trust Funds 

As of September 30, 2007 

Assets: 

Fund balance with Treasury 

Interest receivables Other receivables Investments, net 

$ 

Federal 

Supplementary 

Medical 

Insurance 

Trust Fund 

145,462,209 

479,930,214 

8,483,565,673 

39,248,013,000 

Federal 

Hospital 

Insurance 

Trust Fund 

7,726,830 

4,090,118,187 

484,100,000 

319,377,370,000 

Highway 

Trust Fund 

2,546,784,489 

— 

— 

12,204,544,000 

Airport 

and Airway 

Trust Fund 

715,577,95

75,831,26

— 

7,930,943,00

Total assets 48,356,971,096 323,959,315,017 14,751,328,489 8,722,352,21

Liabilities: 

Other payables Program agency equity: 

Available Other 

— 

24,235,760,468 

24,121,210,628 

8,483,565,673 

20,892,422,161 

294,583,327,183 

— 

14,751,328,489 

— 

— 

2,855,239,22

5,867,112,99

Total program agency equity 48,356,971,096 315,475,749,344 14,751,328,489 8,722,352,21

Total liabilities $ 48,356,971,096 323,959,315,017 14,751,328,489 8,722,352,21

4 
U.S. DEPARTMENT OF THE TREASURY

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH

Schedule of Assets and Liabilities of Selected Trust Funds 

Assets: 

Fund balance with Treasury Interest receivables Other receivables Investments, net 

Total assets 

Liabilities: 

Other payables Program agency equity:

AvailableOther

Total program agency equity 

Total liabilities 

Leaking

Underground

Storage Tank

Trust Fund

$ 12,856,000 

30,464,417 

— 

2,970,749,197 

3,014,069,614 

— 

$ 

80,252,080 

2,933,817,534 

3,014,069,614 

3,014,069,614 

As of September 30, 2007 

Oil Spill Harbor 

Liability Maintenance 

Trust Fund Trust Fund 

20,663,000 80,902,812 

4,371,337 22,967,291 

— — 

917,666,072 3,707,768,394 

942,700,409 3,811,638,497 

— — 

113,436,519 — 

829,263,890 3,811,638,497 

942,700,409 3,811,638,497 

942,700,409 3,811,638,497 

Inland

Waterways

Trust Fund

5,258,000 

28,648 

— 

204,096,354 

209,383,002 

— 

71,718,879 

137,664,123 

209,383,002 

209,383,002 

See accompanying notes to the schedules of selected trust funds. 

5
III. SCHEDULE OF ACTIVITY OF 

SELECTED TRUST FUNDS 
U.S. DEPARTMENT OF THE TREASURY

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH

Schedule of Activity of Selected Trust Funds 

For the Year Ended September 30, 2007 

Federal 

Supplementary 

Medical 

Insurance 

Trust Fund 

Federal 

Hospital 

Insurance 

Trust Fund 

Highway 

Trust Fund 

Airport 

and Airway 

Trust Fund 

Revenues: 

Interest revenue Penalties, fines, and 

administrative fees 

Transfers in from program agencies Tax revenues and adjustments Tax refunds Premiums Cost recoveries Other income Other income - tax revenue transfers 

$ 2,083,809,436 

— 

179,179,538,913 

— 

— 

54,414,948,264 

— 

16,045,235 

— 

16,285,436,405 

425,170,357 

11,852,215,232 

187,991,709,870 

— 

2,835,677,697 

— 

3,750,844 

— 

2,385,732 

16,868,607 

— 

40,385,077,388 

(1,040,135,668) 

— 

— 

10,361,561 

(223,307,280) 

473,308,65

— 

— 

11,534,814,61

(67,229,33

— 

— 

— 

223,307,28

Total revenues 235,694,341,848 219,393,960,405 39,151,250,340 12,164,201,21

Disposition of revenues: 

Transfers to program agencies Other transfers Reimbursements to Treasury bureaus 

and the General Fund 

Total disposition of 

revenues 

229,348,428,686 

(8,483,565,673) 

157,684 

220,865,020,697 

201,881,821,770 

8,483,565,673 

134,971,975 

210,500,359,418 

37,787,933,729 

— 

— 

37,787,933,729 

12,054,845,80

— 

— 

12,054,845,80

Net increase/(decrease) 

in program agency 

equity $ 14,829,321,151 8,893,600,987 1,363,316,611 109,355,40

7 
U.S. DEPARTMENT OF THE TREASURY

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH

Schedule of Activity of Selected Trust Funds

For the Year Ended September 30, 2007

Leaking 

Underground 

Storage Tank 

Trust Fund 

Oil Spill 

Liability 

Trust Fund 

Harbor 

Maintenance 

Trust Fund 

Inland 

Waterways 

Trust Fund 

Revenues: 

Interest revenue $ 117,579,298 30,545,729 154,032,570 10,381,33Penalties, fines, and 

administrative fees — 6,856,307 — — 

Transfers in from program agencies Tax revenues and adjustments Tax refunds Premiums 

— 

228,257,000 

(2,063,000) 

— 

— 

452,372,000 

— 

— 

— 

1,261,731,132 

— 

— 

— 

91,097,00

— 

— 

Cost recoveries — 16,117,287 — — Other income — — — — Other income - tax revenue transfers — — — — 

Total revenues 343,773,298 505,891,323 1,415,763,702 101,478,33

Disposition of revenues: 

Transfers to program agencies Other transfers 

80,200,000 

— 

167,540,888 

— 

909,873,962 

— 

159,767,05

— 

Reimbursements to Treasury bureaus 

and the General Fund — 50,425 — — 

Total disposition of 

revenues 80,200,000 167,591,313 909,873,962 159,767,05

Net increase/(decrease) 

in program agency 

equity $ 263,573,298 338,300,010 505,889,740 (58,288,72

See accompanying notes to the schedules of selected trust funds. 

8 
IV. NOTES TO THE SCHEDULES OF 

SELECTED TRUST FUNDS 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

(1) Summary of Significant Accounting Policies 

(a) Reporting Entity 

The accompanying Schedule of Assets and Liabilities of Selected Trust Funds and related Schedule 

of Activity of Selected Trust Funds (Schedules) pertain to the aspects of certain Treasury-managed 

Trust Funds that are serviced by the Trust Fund Management Branch (TFMB) of the Bureau of the 

Public Debt (BPD) of the U.S. Department of the Treasury (Treasury). The Trust Funds were created 

by legislation enacted by the U.S. Congress. 

TFMB acts as a service organization which processes receipts, disbursements, and transfers related 

to the trust funds based upon information received and recorded by TFMB from the Internal Revenue 

Service (IRS) and the Office of Tax Analysis (OTA), the program agencies responsible for their trust 

fund activity, Treasury’s Financial Management Service (FMS), and other Treasury bureaus. As part 

of its functions, BPD also manages the investments, maintains related accounting records and 

supporting documentation, and reports financial activity. The financial activity reported in these 

Schedules is limited to the activities performed by TFMB. 

The program agencies are responsible for administering, regulating, and monitoring the program 

activities funded by the trust funds. The program agencies make all decisions regarding dispositions 

from the trust funds. As such, these Schedules do not include information regarding the ultimate 

disposition of amounts transferred from the trust funds to the program agencies. 

(b) Basis of Presentation 

The Schedules have been prepared to report the assets and liabilities of the trust funds under the 

function performed by TFMB, and the related activity, in accordance with the measurement and 

criteria discussed below. 

(c) Basis of Accounting 

The Schedules are recorded using the accrual basis of accounting in accordance with U.S generally 

accepted accounting principles. 

(d) Fund Balance with Treasury 

The Trust Funds do not maintain cash in commercial bank accounts. Treasury processes cash 

receipts and disbursements. Fund Balance with Treasury represents net revenue, disposition of 

revenue, and investment activity. Fund balance with Treasury is reported based on the balance 

reported by Treasury’s Financial Management Service (FMS) in the Government-wide Accounting 

and Reporting Modernization Project (GWA) Account Statement and reconciling transactions 

identified and recorded by TFMB. 

(e) Interest Receivables 

Interest receivables are calculated and reported by TFMB based on the investment terms received 

and recorded by TFMB from BPD’s Federal Investments Branch (FIB) in the investment 

confirmations and monthly statements of account. 

10 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

(f) Other Receivables and Other Payables 

Other receivables and other payables are reported based on amounts received and recorded by TFMB 

from the program agencies responsible for the respective trust fund activity. 

(g) Investments, Net 

Pursuant to authorizing legislation, the Secretary of the Treasury shall invest, at the direction of the 

program agencies, such portion of the trust fund balances as is not, in the judgment of the program 

agencies, necessary to meet current withdrawals. Such investments shall be in non-marketable par 

value or non-marketable market-based securities as authorized by legislation. Par value securities are 

special issue bonds or certificates of indebtedness that bear interest determined by legislation or the 

Treasury. Market-based securities are Treasury securities that are not traded on any securities 

exchange, but mirror the prices of marketable securities with similar terms. Both par value and 

market-based securities are issued and redeemed by FIB. 

TFMB follows Treasury fiscal investment policy guidelines. TFMB determines the term of the 

securities purchased based on direction provided by the program agencies. The securities are 

acquired and held in the name of the Secretary of the Treasury for the trust funds. The interest on and 

proceeds from the sale or redemption of any security held for the trust funds are credited to the 

appropriate trust fund. Investments are selected for liquidation based on the following order: earliest 

maturity date, lowest prevailing interest rate, and first security in first security out. 

Investments, net are calculated and reported at net cost based on the cost and premium/discount 

amounts reported to TFMB in the investment confirmations and monthly statements of account 

received from FIB. The market value of investments is calculated and reported by TFMB using the 

recorded investment cost and the market rates published in the September 28, 2007 Treasury Quote 

file (the last work day of the fiscal year) and unrealized gains and losses are calculated and reported 

by TFMB as the difference between the market value and the investments, net. 

(h) Available and Other Program Agency Equity 

Program agency equity is calculated and reported by TFMB based on the assets of the trust fund. 

Program agency equity consists of available and other program agency equity. 

Available program agency equity represents the amount of program agency equity that may be 

transferred as of September 30, 2007 to the program agencies at the request of the program agencies. 

Available program agency equity is reported based on amounts received and recorded by TFMB 

from the program agencies responsible for the respective trust fund activity. 

The remaining balance of program agency equity is reported as other program agency equity. Other 

program agency equity is calculated and reported by TFMB as the difference between the assets of 

the trust fund and the available program agency equity received and recorded by TFMB from the 

program agencies responsible for the respective trust fund activity. 

11 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

(i) Interest Revenue 

Interest revenue is reported based on the amounts received and recorded by TFMB from FIB in the 

monthly statements of account and accrued interest and amortization calculated by TFMB. 

Amortization of any premiums and discounts on investments is calculated and reported by TFMB 

based on the investment terms reported to TFMB by FIB using the straight-line method for 

investments with a term equal to or less than one year and using the level yield method which 

approximates the interest method for investments with a term of greater than one year. 

(j) Revenues 

Pursuant to authorizing legislation, revenue activity recorded in the trust funds consists primarily of 

interest, penalties, fines, administrative fees, transfers in from program agencies, tax revenues, tax 

adjustments, tax refunds, premiums, cost recoveries, and other income, which are transferred from 

the General Fund of the Treasury or from program agencies to the Trust Funds. 

Penalties, fines, administrative fees, transfers in from program agencies, premiums, cost recoveries, 

and other income are reported based on the amounts received and recorded by TFMB from FMS and 

the program agencies responsible for the respective trust fund activity. 

Tax revenues, tax adjustments, tax refunds, and other income – tax revenue transfers are reported 

based on the amounts received and recorded by TFMB from the OTA, IRS and/or FMS. OTA 

estimates the tax revenues each month based on projected tax receipts and provides the estimates to 

FMS. FMS transfers the amount of estimated taxes to the trust fund accounts. The IRS or program 

agencies generally certify the tax revenues two quarters after the taxes are estimated (i.e., 1st quarter 

estimate is certified in the 3rd quarter) and provide this certification to FMS. FMS calculates the tax 

adjustment as the difference between the taxes estimated by OTA and taxes certified by the 

IRS/program agencies and adjusts the trust fund accounts accordingly. FMS reports the tax 

adjustments to TFMB. As a result of the timing of the certification, the statement of activity includes 

certified tax revenues (i.e. actual tax revenues) for the first two quarters of the fiscal year and 

estimated tax revenues for the second two quarters of the fiscal year. 

(k) Transfers to Program Agencies and Other Transfers 

Dispositions from the Trust Funds are made in accordance with the authorizing legislation to the 

program agencies, which are responsible for the ultimate disposition of such funds, to cover program 

administration and related costs as defined by law. Transfers to program agencies and other transfers 

are calculated and reported based on the disbursement request amounts received and recorded by 

TFMB from the program agencies responsible for the respective trust fund activity and the 

disbursement amounts returned and recorded by TFMB from the program agencies responsible for 

the respective trust fund activity. 

(l) Reimbursements to Treasury Bureaus and the General Fund 

In the case of certain trust funds, BPD and Financial Management Service (FMS) are authorized by 

law to receive direct reimbursement from the trust funds for certain administrative expenses. Also, 

the Secretary of the Treasury is directed by law to charge trust funds to reimburse the General Fund 

12 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

for administrative expenses incurred by other Treasury bureaus in performing activities related to 

administering the trust funds. These reimbursement amounts are determined by Treasury based on its 

assessment of the value of the services provided. Reimbursements to Treasury bureaus and the 

General Fund are reported based on the disbursement request amounts received and recorded by 

TFMB from various Treasury bureaus, including BPD and FMS. 

(2) Investments, Net 

Federal Supplementary Medical Insurance Trust Fund 

Investments at September 30, 2007, are non-marketable, par value intra governmental securities with a cost 

of $39,248,013,000. 

Federal Hospital Insurance Trust Fund 

Investments at September 30, 2007, are non-marketable, par value intra governmental securities with a cost 

of $319,377,370,000. 

Highway Trust Fund 

Investments at September 30, 2007, are non-marketable, par value intra governmental securities with a cost 

of $12,204,544,000. In accordance with Public Law 105-277, 112 Statute 2681, investments held by the 

Trust Fund ceased earning interest after September 30, 1998. However, the fund can earn interest pursuant 

to the Cash Management Improvement Act. 

Airport and Airway Trust Fund 

Investments at September 30, 2007, are non-marketable, par value intra governmental securities with a cost 

of $7,930,943,000. 

Hazardous Substance Superfund Trust Fund 

Investments at September 30, 2007, are non-marketable, market-based intra governmental securities as 

follows: 

Net 

unamortized 

premium Net Market 

Cost (discount) investments value 

One-day certificates $ 264,705,993 N/A 264,705,993 264,705,993 

Bills and notes 2,478,803,000 (4,453,750) 2,474,349,250 2,479,165,524 

Total $ 2,743,508,993 (4,453,750) 2,739,055,243 2,743,871,517 

The net unrealized gain on investments is $4,816,274 at September 30, 2007. 

13 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

Leaking Underground Storage Tank Trust Fund 

The investments at September 30, 2007, are non-marketable, market-based intra governmental securities as 

follows: 

Cost 

Net 

unamortized 

premium 

(discount) 

Net 

investments 

Market 

value 

One-day certificates 

Bills and notes 

$ 152,290,236 

2,784,522,000 

N/A 

33,936,961 

152,290,236 

2,818,458,961 

152,290,236 

2,849,144,094 

Total $ 2,936,812,236 33,936,961 2,970,749,197 3,001,434,330 

The net unrealized gain on investments is $30,685,133 at September 30, 2007. 

Oil Spill Liability Trust Fund 

The investments at September 30, 2007, are non-marketable, market-based intra governmental securities as 

follows: 

Net 

unamortized 

premium Net Market 

Cost (discount) investments value 

One-day certificates $ 212,628,488 N/A 212,628,488 212,628,488 

Bills and notes 707,412,000 (2,374,416) 705,037,584 705,397,869 

Total $ 920,040,488 (2,374,416) 917,666,072 918,026,357 

The net unrealized gain on investments is $360,285 at September 30, 2007. 

Harbor Maintenance Trust Fund 

The investments at September 30, 2007, are non-marketable, market-based intra governmental securities as 

follows: 

Net 

unamortized 

premium Net Market 

Cost (discount) investments value 

One-day certificates $ 422,246,124 N/A 422,246,124 422,246,124 

Bills and notes 3,292,858,000 (7,335,730) 3,285,522,270 3,314,354,338 

Total $ 3,715,104,124 (7,335,730) 3,707,768,394 3,736,600,462 

14 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

The net unrealized gain on investments is $28,832,068 at September 30, 2007. 

Inland Waterways Trust Fund 

The investments at September 30, 2007, are non-marketable, market-based intra governmental securities as

follows: 

Net 

unamortized 

premium Net Market 

Cost (discount) investments value 

One-day certificates $ 129,239,243 N/A 129,239,243 129,239,243 

Bills and notes 76,001,000 (1,143,889) 74,857,111 74,868,289 

Total $ 205,240,243 (1,143,889) 204,096,354 204,107,532 

The net unrealized gain on investments is $11,178 at September 30, 2007. 

South Dakota Terrestrial Wildlife Habitat Restoration Trust Fund 

The investments at September 30, 2007, are non-marketable, market-based intra governmental securities as

follows: 

Net 

unamortized 

premium Net Market 

Cost (discount) investments value 

Bills and notes $ 102,808,202 (327,361) 102,480,841 102,400,818 

The net unrealized loss on investments is $80,023 at September 30, 2007. 

(3) Change in Program Agency Equity 

Federal Supplementary Medical Insurance Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 33,527,649,945 

Increase in balance 14,829,321,151 

Balance, end of year $ 48,356,971,096 

15 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

Federal Hospital Insurance Trust Fund 

Change in the program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of yea r $ 306,582,148,357

Increase in balance 8,893,600,987

Balance, end of year $ 315,475,749,344

Highway Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 13,388,011,878

Increase in balance 1,363,316,611

Balance, end of year $ 14,751,328,489

The program agency equity available as of September 30, 2007 is $14,751,328,489. However, Congress 

has authorized appropriations in excess of current available trust fund assets that amounts to 

$3,628,503,594 after considering amounts already transferred to the program agency. 

Airport and Airway Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 8,612,996,812

Increase in balance 109,355,406

Balance, end of year $ 8,722,352,218

Hazardous Substance Superfund Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 2,628,276,757

Increase in balance 125,111,691

Balance, end of year $ 2,753,388,448

16 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

Leaking Underground Storage Tank Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of yea r $ 2,750,496,316 

Increase in balance 263,573,298 

Balance, end of year $ 3,014,069,614 

Oil Spill Liability Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 604,400,399 

Increase in balance 338,300,010 

Balance, end of year $ 942,700,409 

Harbor Maintenance Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 3,305,748,757 

Increase in balance 505,889,740 

Balance, end of year $ 3,811,638,497 

Inland Waterways Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of yea r $ 267,671,726 

Decrease in balance (58,288,724) 

Balance, end of year $ 209,383,002 

South Dakota Terrestrial Wildlife Habitat Restoration Trust Fund 

Change in program agency equity for the year ended September 30, 2007, is: 

Balance, beginning of year $ 89,338,783 

Increase in balance 14,153,756 

Balance, end of year $ 103,492,539 

17 (Continued) 
U.S. DEPARTMENT OF THE TREASURY 

BUREAU OF THE PUBLIC DEBT TRUST FUND MANAGEMENT BRANCH 

Notes to the Schedules of Selected Trust Funds 

September 30, 2007 

The Omnibus Consolidated and Emergency Supplemental Appropriations Act dated October 21, 1998 

(Public Law 105-277, DIVISION C, Title VI, Section 603) established this trust fund in 1999. This Act 

states that the Secretary of the Treasury may not transfer or withdraw any amount deposited in the trust 

fund until the aggregate amount is equal to at least $108,000,000. As such, the program agency equity 

balance as of September 30, 2007 is not available to the program agency. 

(4) Other Income 

South Dakota Terrestrial Wildlife Habitat Restoration Trust Fund 

The $10,000,000 of other income for the year ended September 30, 2007 represents the amounts deposited 

into the trust fund by the Secretary of the Treasury in accordance with the trust fund’s enabling legislation 

(Public Law 105-277, DIVISION C, Title VI, Section 603). 

(5) Other Income – Tax Revenue Transfers 

Airport and Airway Trust Fund and Highway Trust Fund 

Other income – tax revenue transfers of $223,307,280 represents the transfer of amounts from the Highway 

Trust Fund to the Airport and Airway Trust Fund. During fiscal year 2006, the program agency provided 

TFMB excise tax collections for diesel fuel to be recorded in the Highway Trust Fund and TFMB recorded 

and reported such amounts in the Highway Trust Fund. In fiscal year 2007, the OTA, IRS and/or FMS 

requested TFMB to transfer amounts from the Highway Trust Fund to the Airport and Airway Trust Fund 

and TFMB reported this as other income – tax revenue transfers on the fiscal year 2007 schedule of 

activity of selected trust funds. 

(6) Other Payables, Receivables, and Transfers 

Federal Supplementary Medical Insurance Trust Fund and Federal Hospital Insurance Trust Fund 

From May 2005 to August 2007, the program agency requested transfers from Federal Supplementary 

Medical Insurance Trust Fund for hospice benefits and TFMB recorded and reported such transfers in the 

Federal Supplementary Medical Insurance Trust Fund. In fiscal year 2007, the program agency determined 

that it should have requested the transfers for hospice benefits from the Federal Hospital Insurance Trust 

Fund and requested that TFMB transfer $8,483,565,673 from the Federal Supplementary Medical 

Insurance Trust Fund to the Federal Hospital Insurance Trust Fund as of September 30, 2007. TFMB 

reported the $8,483,565,673 as other transfers on the schedule of activity, and as an other payable in the 

Federal Hospital Insurance Trust Fund and an other receivable in the Federal Supplementary Medical 

Insurance Trust Fund on the schedule of assets and liabilities. 

(7) Related Parties 

TFMB, on behalf of the Secretary of the Treasury, compiles amounts deposited into the trust funds, invests 

receipts in Treasury securities, redeems securities and transfers funds to the program agencies, maintains 

accounting records for receipts and disbursements of the trust funds, and reports trust fund financial 

activity to the program agencies and other interested parties. The OTA, IRS, and/or FMS determine the 

amounts to be deposited in the trust funds. The program agencies determine the disposition of the trust 

fund balances. 

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