Audit Report

OIG-22-029

FINANCIAL MANAGEMENT

Audit of the Exchange Stabilization Fund’s Financial 

Statements for Fiscal Years 2021 and 2020

March 9, 2022

Office of Inspector General

Department of the Treasury
This Page Intentionally Left Blank
DEP AR T M E N T OF T H E TRE ASUR Y

WASHINGTON, D. C. 20220

March 9, 2022 OFFICE OF

INSPECTOR GENERAL

MEMORANDUM FOR ANDREW BAUKOL

PRINCIPAL DEPUTY ASSISTANT SECRETARY FOR 

INTERNATIONAL MONETARY POLICY

FROM: Pauletta Battle /s/

Deputy Assistant Inspector General, Financial Management 

and Transparency Audits

SUBJECT: Audit of the Exchange Stabilization Fund’s Financial 

Statements for Fiscal Years 2021 and 2020

We hereby transmit the attached subject report. Under a contract monitored by our 

office, KPMG LLP (KPMG), a certified independent public accounting firm, audited 

the Exchange Stabilization Fund’s (ESF) balance sheets as of September 30, 2021 

and 2020, and the related statements of net cost, changes in net position, and 

budgetary resources for the years then ended. The contract required that the audit 

be performed in accordance with U.S. generally accepted government auditing 

standards, Office of Management and Budget Bulletin No. 21-04, Audit 

Requirements for Federal Financial Statements, and the Government Accountability 

Office/Council of the Inspectors General on Integrity and Efficiency, Financial Audit 

Manual.

In its audit of the ESF, KPMG found

• the financial statements were fairly presented, in all material respects, in 

accordance with U.S. generally accepted accounting principles;

• no deficiencies in internal control over financial reporting that are considered 

material weaknesses; and

• no instances of reportable noncompliance with laws, regulations, and 

contracts tested.
Page 2

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

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

from an audit performed in accordance with U.S. generally accepted government 

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

express, an opinion on the ESF’s financial statements or conclusions about the 

effectiveness of internal control or compliance with laws and regulations. KPMG is 

responsible for the attached auditors’ report dated March 9, 2022, and the 

conclusions expressed in the report. However, our review disclosed no instances 

where KPMG did not comply, in all material respects, with U.S. generally accepted 

government auditing standards. 

If you wish to discuss this report, please contact me at (202) 927-5792, or a 

member of your staff may contact Catherine Yi, Manager, Financial Statement 

Audits, at (202) 927-5591.

Attachment
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Financial Statements

September 30, 2021 and 2020
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Table of Contents

Page

Management Discussion and Analysis (Unaudited) ....................................................................... 1

Independent Auditors’ Report ....................................................................................................... 11

Balance Sheets........................................................................................................................... 14

Statements of Net Cost................................................................................................................... 16

Statements of Changes in Net Position.......................................................................................... 17

Statements of Budgetary Resources............................................................................................... 19

Notes to the Financial Statements ................................................................................................. 21

Required Supplementary Information (Unaudited)....................................................................... 56
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

1

(Continued)

MISSION

Section 10 of the Gold Reserve Act of 1934 established the Exchange Stabilization Fund (ESF), originally 

for the purpose of stabilizing the exchange value of the dollar. Section 10 has been amended several times 

since 1934. This Section currently authorizes the Secretary of the Treasury (Secretary), with the approval 

of the President, to deal in gold, foreign exchange, and instruments of credit and securities consistent with 

U.S. obligations in the International Monetary Fund (IMF). In 2020, Congress passed and the President 

signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act), P.L. 116-136, authorizing 

the Secretary to make certain loans, loan guarantees, and investments in support of the coronavirus disease 

2019 (COVID-19) pandemic recovery. The ESF’s assets principally include U.S. dollars, foreign 

currencies, and Special Drawing Rights (SDRs), an international reserve asset created by the IMF. The 

ESF’s assets also include COVID-19 investments and receivables.

ORGANIZATION 

The Secretary, subject to the approval of the President, has the authority to use the ESF in accordance 

with section 10 of the Gold Reserve Act. The Secretary is the lead decision-maker for all ESF foreign 

exchange intervention, credit operations, and investment activities, but has delegated to the Under 

Secretary of International Affairs non-policy related investment decisions regarding technical adjustments 

to the ESF’s foreign currency holdings and operations. 

Treasury’s Office of International Affairs has responsibility for managing ESF operations, and Treasury’s 

Office of the Deputy Chief Financial Officer provides the recordkeeping and financial reporting services 

for the ESF.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

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(Continued)

The Federal Reserve Bank of New York (FRBNY) acts as the fiscal agent for the ESF, as permitted by 

the Federal Reserve Act of 1913 (Federal Reserve Act). As the fiscal agent, the FRBNY plays a significant 

role in the processing of foreign currency transactions that the Secretary authorizes. The manager of the 

ESF foreign currency portfolio at the FRBNY consults regularly with the Federal Open Market Committee 

and Treasury about the disposition of investments and the status of the portfolio. 

Treasury’s ESF management is responsible for the record keeping and investment decisions for foreign 

currency transaction activity carried out by the FRBNY. The level and currency composition of the ESF 

foreign currency portfolio are the products of Treasury’s policy determinations. Per reserve management 

guidelines, the liquidity and safety of the investments are top priorities of the ESF’s management given 

the foreign exchange intervention role of the ESF. Under current guidance, investment instruments 

continue to carry low cost or have ample market liquidity while managing and/or limiting price, credit, 

and settlement risk. In addition, consistent with the objectives of liquidity and safety, the currency 

portfolios are designed to earn a high rate of return. 

PERFORMANCE OVERVIEW

The Secretary is responsible for the formulation and implementation of U.S. international monetary and 

financial policy, including exchange market intervention policy. The ESF helps the Secretary to carry out 

these responsibilities. By law, the Secretary has considerable discretion over the use of ESF resources.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

3

(Continued)

The ESF reports the results of its operations under the Treasury-wide goal to “Boost U. S. Economic 

Growth.” Treasury is responsible for fostering prosperity and security for the American people and plays 

a critical role in the domestic and global economies. Treasury utilizes the ESF to help safeguard U.S. 

economic prosperity by strengthening the external environment to support U.S. growth, preventing and 

mitigating global financial instability, and managing key domestic and global challenges. In 2020, for 

example, the ESF utilized a portion of its U.S. dollars and appropriated funds under the CARES Act to 

make investments in facilities managed by the Federal Reserve Bank that extended loans to firms to 

support the U.S. economy.

To carry out its supporting mission, the ESF has historically leveraged its assets, including U.S. dollars; 

foreign currency holdings of euros, yen, and other foreign currency denominated assets; and holdings of 

SDRs. Appropriated funds from Congress also funded COVID-19 programs.

Consistent with its mission, the ESF has established the following two strategic goals: 

• Goal 1: Exchange Stabilization. To engage in targeted foreign exchange intervention to address 

excessive exchange rate volatility and to provide sovereign loans to emerging and developing 

economies; this includes supporting the Government’s obligations to the International Monetary 

Fund to ensure orderly currency exchange arrangements worldwide.

• Goal 2: Economic Recovery Program. To support economic growth and stability at home, 

including in response to the COVID-19 pandemic. 

Goal 1: Exchange Stabilization

Congress, in 1934, appropriated to the ESF the sum of $2.0 billion out of the increment resulting from the 

reduction in the “weight of the gold dollar.” Subsequent amendments to the Gold Reserve Act approved 

the operation of the ESF through June 30, 1945. Section 7 of the Bretton Woods Agreements Act, 

approved July 31, 1945, continued its operations permanently. The Bretton Woods Agreements Act also 

directed the Secretary to pay $1.8 billion from the ESF to the IMF for the initial U.S. quota subscription 

in the IMF, thereby reducing the ESF’s appropriated capital from its initial $2.0 billion to $200 million. 

Section 10 of the Gold Reserve Act was codified in 31 United States Code (U.S.C.) 5302.

Reflecting termination of the fixed exchange rate system, legislation enacted in 1976 (P.L. 94-564, 

October 19, 1976) amended the language of Section 10 of the Gold Reserve Act to specify that the ESF 

is to be used as the Secretary “may deem necessary to and consistent with the United States obligations in 

the International Monetary Fund.” This amendment became effective on April 1, 1978, the date of entry 

into force of the Second Amendment of the IMF Articles of Agreement. In 1977, P.L. 95-147 further 

amended Section 10 of the Gold Reserve Act. The following Gold Reserve Act codification now provides 

in relevant part:

“Consistent with the obligations of the Government in the International Monetary Fund on orderly 

exchange arrangements and a stable system of exchange rates, the Secretary or an agency 

designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

4

(Continued)

and other instruments of credit and securities the Secretary considers necessary. However, a loan 

or credit to a foreign entity or government of a foreign country may be made for more than 6 

months in a 12-month period only if the President gives Congress a written statement that unique 

or emergency circumstances require the loan or credit be for more than 6 months (31 U.S.C. 5302 

(b)).”

Pursuant to the Special Drawing Rights Act of 1968 (P.L. 90-349, amended by P.L. 94-564), SDRs 

allocated by the IMF to the United States or otherwise acquired by the United States are resources of the 

ESF.

22 U.S.C. 286p allows for SDRs to be monetized/demonetized through the issuance/redemption by the 

Secretary of SDR certificates to the Federal Reserve Banks in exchange for dollars. The total amount of 

SDR certificates outstanding cannot exceed the dollar equivalent of ESF (i.e., U.S.) holdings of SDRs; 

such certificates are a liability of the ESF.

Since the start of the 21st century, the United States has intervened in foreign exchange markets two times

during bouts of extremely disorderly market conditions and through coordinated G7 action. Each of these 

interventions utilized roughly $1 billion in ESF assets, working as a signal to stabilize markets rather than 

an attempt to directly affect the level of an exchange rate. 

The SDR is an international reserve asset created by the IMF in 1969 to supplement the existing reserve 

assets of IMF member countries, including the United States. In addition to its role as a supplementary 

reserve asset, the SDR serves as a means of payment within the IMF and with some other International 

Financial Institutions (IFIs), as well as the unit of account for the IMF and several other international 

organizations. Pursuant to the Special Drawing Rights Act of 1968, as amended, SDRs allocated by the 

IMF to, or otherwise acquired by the United States, are resources (holdings) of the ESF.

To meet the long-term global need to supplement existing reserve assets, in August 2021, the IMF Board 

of Governors approved a general allocation of SDRs equivalent to about $650 billion (SDR 456 billion). 

This SDR allocation increased the total global stock of SDRs outstanding from about $290 billion (SDR 

204 billion) to $940 billion (SDR 661 billion). Of the total August 2021 allocation, the United States 

received about $113 billion (about SDR 80 billion). 

Until the late 1990s, the most frequent use of the ESF was to provide sovereign loans to foreign governments

experiencing external balance crises, often as short-term bridge loans to facilitate financing from 

International Financial Institutions (IFIs). Since 2000, Treasury has used the ESF to provide short-term 

credit for bridge loans to Uruguay ($1.5 billion in 2002), to the International Development Association 

(IDA) to facilitate the clearance of Liberia’s arrears with the World Bank ($888 million in 2008), and to the 

IDA to facilitate the clearance of Sudan’s arrears to the World Bank ($1.2 billion in 2021). Treasury also 

has a notional written agreement with Mexico setting out the framework for providing a $9 billion Foreign 

Currency swap, should circumstances require it.1 

1 Drawings are not automatic: the U.S. and Mexico would have to negotiate the amount, duration, interest rate, and assured 

source of repayment of any borrowings.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

5

(Continued)

Goal 2: Economic Recovery Program:

Treasury has used the ESF during the past two economic and financial crises to help stabilize domestic 

financial markets in support of a stable international monetary system. Treasury used the ESF in 

coordination with the Federal Reserve to help stabilize financial markets in 2007-2008. These programs 

have expired, and the ESF’s financial statements no longer reflect this support. Following the 2008 crisis, 

however, Congress prohibited Treasury from using the ESF specifically to establish future guarantee 

programs for the U.S. money market mutual fund industry (which prohibition was temporarily lifted by the 

CARES Act).

In March of 2020, the Federal Reserve Board of Governors (Board) and Congress took steps to limit the 

economic damage caused by the pandemic in the United States by helping to reduce the financial burden 

on individuals and their families, minimize business and employment losses, and enhance the liquidity of 

the U.S. financial system. The ESF played a critical role in the implementation and support of these 

actions by the Board and Congress primarily through Treasury’s execution of Coronavirus Aid, Relief,

and Economic Security Act (CARES Act, P.L. 116-136) appropriations used to support programs in 

support recovery from the COVID-19 pandemic. Treasury pledged $215 billion to Federal Reserve lending 

facilities—$20 billion committed from existing ESF assets and the remainder under the authority of the 

CARES Act.

2

The CARES Act appropriated $500.0 billion to the ESF to fund the credit subsidy costs associated with 

making loans, loan guarantees or investments through December 31, 2020 in support of eligible businesses, 

states and municipalities that incurred losses as a result of COVID-19. The CARES Act authorized Treasury 

to make such loans, loan guarantees and other investments that did not, in the aggregate, exceed $500.0 

billion. Treasury executed the COVID-19 programs through the ESF. During FY 2020, the ESF disbursed 

an aggregate of $104.3 billion (comprised of $102.5 billion and $1.8 billion for investments and direct loans, 

respectively), which was financed with $19.3 billion of the appropriation to fund the credit subsidy portion 

of the investments and direct loans, and $85.0 billion of borrowings from the Fiscal Service. As of September 

30, 2020, $480.6 billion of the CARES Act appropriation remained. 

Also during FY 2020, the ESF transferred $11.5 billion of the $20.0 billion committed under its core 

authority provided by Section 10 of the Gold Reserve Act, as amended, to support two of the COVID-19 

programs.

 

The December 27, 2020 enactment of the Consolidated Appropriations Act, 2021 (CAA), among other 

things, eliminated the ESF’s authority to make new loans and investments under the CARES Act and 

prohibited the Federal Reserve from engaging in further lending or extensions of credit. Accordingly, on 

December 27, 2020, the CAA rescinded $478.8 billion of the $500.0 billion appropriation provided to 

Treasury (through the ESF).

2 The CARES Act provided Treasury authorization and appropriations to support Federal Reserve credit facilities using the ESF. 

Using the ESF’s authority and CARES Act authority, Treasury supported facilities providing support to the money market 

mutual fund market; the commercial paper, corporate bond, and municipal bond markets; asset-backed loans; and main street 

loans.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

6

(Continued)

On December 29, 2020, consistent with the CAA, Treasury cancelled and de-obligated any remaining 

undisbursed investment commitments totaling an aggregate of $92.5 billion (along with an additional $8.5 

billion that was committed by ESF core funds), and the ESF received an interim distribution totaling an 

aggregate of $62.2 billion related to four COVID programs. The ESF used this cash received to repay 

outstanding debt to the Fiscal Service that was used to finance the non-subsidized portion of these investment 

transactions. Also during FY 2021, the FRBNY and FRBB fully dissolved three of its liquidity facilities, 

resulting in a distribution to the ESF totaling an aggregate of $25.4 billion (of which $11.5 billion constituted 

a return of ESF’s core funds). (Refer to Note 6).

FINANCIAL HIGHLIGHTS AND ANALYSIS OF OPERATIONS

The financial highlights below are an analysis of the information included in the ESF’s financial 

statements that appear within Part 2, “Financial Section” of this report. The ESF prepared principal 

financial statements to report the financial position and results of operations of its programs consistent 

with the requirements of 31 U.S.C. 3515(b). These statements have been prepared from the books and 

records of the ESF (and the Department of the Treasury) in accordance with U.S. Generally Accepted 

Accounting Principles (GAAP) for federal entities and the formats prescribed by the Office of 

Management and Budget. These statements are in addition to the financial reports used to monitor and 

control budgetary resources that are prepared from the same books and records, and should be read with 

the understanding that they are for a component of the U. S. Government.

 

The chart below presents changes in key financial statement line items as of and for the fiscal year ended 

September 30, 2021, as compared to September 30, 2020.

Summary Financial Information (dollars in thousands)

2021 2020 $ Change % Change

Total Assets $ 236,991,931 $ 676,366,926 $ (439,374,995) (65.0) %

Total Liabilities $ 194,768,607 $ 154,854,419 $ 39,914,188 25.8 %

Total Net Position $ 42,223,324 $ 521,512,507 $ (479,289,183) (91.9) %

Total Net Cost (Income) – Core Exchange Stabilization $ 725,062 $ (1,261,054) $ 1,986,116 (157.5) %

Total Net Cost (Income) – Economic Recovery Program $ (4,256,380) $ 5,626,220 $ (9,882,600) 175.7 %

Total Net Cost (Income) from Operations $ (3,531,318) $ 4,365,166 $ (7,896,484) 180.9 %

Total Budgetary Resources $ 172,659,259 $ 757,593,604 $ (584,934,345) (77.2) %

Agency Outlays, Net $ (24,535,407) $ 29,528,266 $ (54,063,673) (183.1) %

Financial Overview. The ESF financial performance as of and for the fiscal year ended September 30, 

2021, when compared to 2020, primarily reflects a $478.8 billion rescission of initial CARES Act 

appropriations in fiscal year 2021, compared to the initial receipt in fiscal year 2020 of $500.0 billion of 

CARES Act appropriations to fund commitments to disburse investments and loans as financial support 

provided for economic recovery programs in response to the global spread of COVID-19. Additionally 

in fiscal year 2021, the IMF approved a $650.0 billion general SDR allocation to meet the long-term global 

need to supplement existing reserve assets. The allocation was distributed to IMF member countries in

proportion to their quota shares at the IMF on August 23, 2021, resulting in an increase of $112.8 billion in
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

7

(Continued)

ESF SDR holding assets and a corresponding increase in a related liability for allocations of SDRs. 

Total Assets

Total assets of $237.0 billion at September 30, 2021, primarily included fund balance with Treasury of 

$2.0 billion, nonmarketable U.S. Treasury securities of $22.8 billion, SDR holdings and related interest 

receivable of $163.9 billion, foreign currency and other monetary assets totaling $20.9 billion, and 

economic recovery program assets totaling $27.4 billion. The $439.4 billion (or 65.0%) decrease in total 

assets at the end of FY 2021 from the prior year primarily reflects a $478.7 billion decrease in fund balance 

due to a $478.8 billion rescission of the CARES Act appropriations in December 2020. This 

appropriations funding was initially received in FY 2020 to fund investments and loans to U.S. eligible 

businesses, states and municipalities, and to enhance the liquidity of the U.S. financial system in response 

to the pandemic (refer to Notes 6, 7 and 8 within the Financial Statements). 

The decline in total assets in FY 2021 also is attributable to an $83.8 billion decrease in economic recovery 

program assets. These assets primarily consisted of equity investments in Special Purpose Vehicles 

(SPVs) of $25.6 billion and $107.9 billion as of September 30, 2021, and 2020, respectively. The decrease

in these SPV investments primarily stems from an aggregate of $86.1 billion of capital contributions that

were returned to Treasury (except for $10.0 billion which was returned to the ESF) by the Federal Reserve

in connection with interim and final distributions made pursuant to the amended SPV LLC Agreements

(refer to Note 6 within the Financial Statements). Capital contributions to the SPVs totaling $112.5 billion

were initially disbursed in FY 2020. Also returned to the ESF in FY 2021 was $1.5 billion of contributed

capital that was previously disbursed in FY 2020 to a Federal Reserve liquidity facility, along with $134

million of accrued facility fee residual earnings.

Partially offsetting these declinesin total assetsin FY 2021 was an increase of $11.7 billion in nonmarketable

U.S Treasury securities, reflecting the re-investment of those funds that were returned to the ESF by the

Federal Reserve. The ESF initially used its nonmarketable investments in FY 2020 to fund capital

contributions of $10.0 billion and $1.5 billion to the Commercial Paper Funding Facility and Money Market

Mutual Fund Liquidity Facility, respectively. Total assets also increased by $112.8 billion in FY 2021 as a

result of the IMF’s General SDR Allocation. 

Total Liabilities

Total liabilities of $194.8 billion at September 30, 2021, primarily included intragovernmental liabilities 

comprised of $24.0 billion of intra-governmental Debt and $3.3 billion of amounts due to the General 

Fund, as well as other-than-intra-governmental liabilities comprised of $161.8 billion of SDR allocations 

and related interest and $5.2 billion of SDR certificates issued to the Federal Reserve Banks. The $39.9 

billion (or 25.8%) increase in total liabilities at the end of FY 2021 over the prior year primarily reflects 

a $112.8 billion increase in SDR Allocations resulting from the IMF’s General SDR allocation.

Partially offsetting this increase was a decrease of $63.1 billion in intra-governmental debt, which was 

paid down in December 2020 and September 2021 upon the FRB’s return of excess funds from four SPVs 

and the final dissolution of one SPV, partially offset by new borrowing to fund downward subsidy 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

8

(Continued)

reestimates (see Note 11). Amounts due to the General Fund also decreased by $9.6 billion, reflecting a 

decrease in the downward subsidy accrual compared to FY 2020. 

Net Position

The Net Position of $42.2 billion at September 30, 2021 represents the combined total of the ESF’s 

unexpended appropriations and cumulative results of operations. The $479.3 billion (or 91.9%) decrease 

in FY 2021 was driven by the $478.8 billion rescission of CARES Act appropriated funds.

Net Cost of Operations

Total Net Cost of Operations as presented on the ESF’s Statements of Net Costs represents the gross costs, 

net of earned revenues, the ESF incurred related to both its core exchange stabilization operations and 

economic recovery program operations. For FY 2021, the ESF reported net income from operations 

totaling $3.5 billion compared to a net cost of operations in the prior year of $4.4 billion. The $7.9 billion 

year-over-year reduction in net cost was attributable to a $9.9 billion reduction in net cost for the economic 

recovery program operations, partially offset by a $2.0 billion increase in net cost for the core ESF 

operations.

The Economic Recovery Program reported net income from operations of $4.3 billion for the fiscal year 

ended September 30, 2021, compared to a net cost of operations of $5.6 billion for the prior year. The 

$9.9 billion reduction in net cost in FY 2021 was primarily attributable to changes in the valuation of the 

program’s assets which reflected $4.7 billion of gains on investments and credit program receivables in 

FY 2021 compared to losses of $4.8 billion in FY 2020.

The ESF core operations reported a net cost from operations of $725 million for the fiscal year ended 

September 30, 2021, compared to net income of $1.3 billion for the prior year. The $2.0 billion increased 

net cost in FY 2021 primarily reflects changes in the valuations of the ESF’s foreign currency denominated 

investments which resulted in valuation losses of $690 million for FY 2021 compared to gains of $1.1 

billion for FY 2020.

Statement of Budgetary Resources

Total budgetary resources of $172.7 billion in FY 2021 decreased $584.9 billion (or 77.2%) from 

budgetary resources which totaled $757.6 billion in FY 2020. During FY 2021, the Consolidated 

Appropriations Act, 2021 (CAA) rescinded $478.8 billion of the $500.0 billion in appropriations the ESF 

received in FY 2020 pursuant to the CARES Act, which eliminated Treasury’s authority through ESF to 

finance new economic recovery program loans and investments after January 9, 2021, and which 

prohibited the Federal Reserve from engaging in further lending or extensions of credit, after December 

31, 2020, through facilities established by the Federal Reserve. The rescission also reduced ESF’s 

borrowing authority by $173.8 billion in FY 2021 related to finance certain economic recovery programs. 

Partially offsetting the reductions in budgetary resources were $112.8 billion of new resources obtained 

by the ESF’s core program upon allocation to the ESF of new SDRs in response to the global economic 

stress caused by the COVID-19 pandemic.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

9

(Continued)

Agency Outlays, net

ESF reported net collections of $24.5 billion in FY 2021 compared to net outlays of $29.5 billion reported 

in FY 2020, a year-over-year change of $54.1 billion. During FY 2021, $11.5 billion of ESF core funds 

that were previously outlayed in FY 2020 to support two economic recovery programs were returned to 

the ESF in FY 2021. Additionally in FY 2021, $14.0 billion of downward reestimates pertaining to the 

revaluation of all the economic recovery program investments and receivables were recorded as budgetary 

receipts, partially offset by $1.1 billion in outlays for subsidies in support of additional direct loans that 

were funded in 2021. In FY 2020, $11.5 billion of ESF core funds were outlayed to fund support for two 

economic recovery programs, and $19.3 billion was distributed to fund the credit subsidies in support of 

the SPV and loans programs. 

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE

The ESF’s management is responsible for managing risks and maintaining effective internal control and 

financial management systems to meet the objectives of the Federal Managers’ Financial Integrity Act 

(FMFIA) and the Federal Financial Management Improvement Act (FFMIA). OMB Circular A-123, 

Management’s Responsibility for Enterprise Risk Management and Internal Control provides the 

implementing guidance for FMFIA and defines management’s responsibility for establishing and assessing 

internal controls. The Circular also requires federal agencies to adhere to the Government Accountability 

Office’s (GAO) Standards for Internal Control in the Federal Government, and to evaluate and report on 

the effectiveness of the organization’s internal controls to achieve the objectives of: (1) effective and 

efficient operations, (2) reliable reporting for internal and external use, and (3) compliance with applicable 

laws and regulations (FMFIA Section 2). Additionally, agencies are required to assess whether financial 

management systems comply with federal financial management systems requirements (FMFIA Section 4).

The ESF’s internal controls are assessed in accordance with the Treasury Guide for Assessing Internal 

Control in Accordance with OMB Circular A-123 Appendix A: Management of Reporting and Data Integrity 

Risk, which includes a comprehensive risk-based internal control evaluation plan. This plan includes a 

methodology that identifies and documents key controls and provides for the assessment and testing of those 

controls to obtain reasonable assurance that the controls are designed, implemented, and operating 

effectively.

The ESF uses centralized financial management, budget formulation and performance management, and IT 

hosting services provided by the Bureau of the Fiscal Service’s (Fiscal Service) Administrative Resource 

Center (ARC). The shared service approach enables the ESF to have access to core financial systems without 

having to maintain separate technical and system architectures. Using shared services reduces the need for 

the ESF to maintain duplicative financial management systems, thereby promoting efficiency and cost 

savings while enhancing the quality, timeliness, and accuracy of financial management processes.

The FFMIA requires federal agencies to implement and maintain financial management systems that 

substantially comply with federal financial management systems requirements, applicable federal 

accounting standards, and the U.S. Standard General Ledger at the transaction level. As a component of the 

Department of the Treasury, the ESF assesses its financial management systems annually for conformance 
DEPARTMENT OF THE TREASURY

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Management’s Discussion and Analysis (Unaudited)

Fiscal Year 2021

10

in accordance with OMB Circular A-123, Appendix D, Compliance with the Federal Financial 

Management Improvement Act of 1996. As we use ARC’s financial management system as part of a shared 

service arrangement, we rely on ARC’s Service Organization Control 1-Type 2 report and the Fiscal 

Service’s FFMIA Assessment to conduct our review.

Based on the results of the assessments of internal controls and financial management systems referred to 

above, the ESF can provide reasonable assurance that, in accordance with Section 2 of the FMFIA, the ESF’s 

internal control over operations, reporting, and compliance with laws and regulations were operating 

effectively as of September 30, 2021. In addition, we can provide reasonable assurance that, as of September 

30, 2021, our financial management systems are in substantial conformance with the federal financial 

management systems requirements of Section 4 of the FMFIA.

OUTLOOK FOR REMAINDER OF 2022

Given Treasury’s limited use of the ESF since the 2000s for foreign currency intervention, Treasury sees 

minimal scope for the ESF for currency intervention to stabilize markets and currencies throughout the 2022 

fiscal year unless market volatility increases substantially. Treasury will continue to purchase or sell SDRs, 

on a case-by-case basis, from other IMF members to promote an orderly system of exchange rates and to 

help provide liquidity support to our global partners. In the period from October 1, 2021, through March 4, 

2022, Treasury, through the ESF, purchased SDR 1.1 billion of SDRs from other IMF participants (Ukraine, 

Paraguay, Jamaica, Serbia) in exchange for $1.6 billion. These purchases increased the ESF’s SDR 

Holdings and decreased the ESF’s Nonmarketable U.S. Treasury Securities, which were used to fund these 

purchases.

The COVID-19 pandemic continues to represent a risk to economic growth and recovery. While some of 

the CARES Act-appropriated funds, as well as CARES Act-authorized loans and investments, remained on 

the ESF’s books as of September 30, 2021, Treasury no longer has authority to use these funds to make new 

loans and investments.
Independent Auditors’ Report

Deputy Inspector General

Department of the Treasury

Report on the Financial Statements

We have audited the accompanying financial statements of the Department of the Treasury’s Exchange 

Stabilization Fund (ESF), which comprise the balance sheets as of September 30, 2021 and 2020 and the 

related statements of net cost, changes in net position, and budgetary resources for the years then ended, and 

the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and 

maintenance of internal control relevant to the preparation and fair presentation of financial statements that are 

free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 

our audits in accordance with auditing standards generally accepted in the United States of America, in 

accordance with the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, and in accordance with Office of Management and 

Budget (OMB) Bulletin No. 21-04, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 21-04 require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of 

the risks of material misstatement of the financial statements, whether due to fraud or error. In making those 

risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation 

of the financial statements in order to design audit procedures that are appropriate in the circumstances, but 

not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we 

express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and 

the reasonableness of significant accounting estimates made by management, as well as evaluating the overall 

presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion.

Opinion 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial 

position of the Department of the Treasury’s Exchange Stabilization Fund as of September 30, 2021 and 2020, 

and its net costs, changes in net position, and budgetary resources for the years then ended, in accordance 

with U.S. generally accepted accounting principles.

KPMG LLP

Suite 12000

1801 K Street, NW

Washington, DC 20006

KPMG LLP, a Delaware limited liability partnership and a member firm of 

the KPMG global organization of independent member firms affiliated with 

KPMG International Limited, a private English company limited by guarantee. 
12

Emphasis of Matter

As discussed in Note 1 to the financial statements, in fiscal year 2021, the ESF elected to present the financial 

statements and related notes to the financial statements in accordance with accounting and reporting standards

promulgated by the Federal Accounting Standards Advisory Board (FASAB). Prior to October 1, 2020, the ESF 

presented the financial statements and related notes to the financial statements in accordance with accounting 

and reporting standards promulgated by the Financial Accounting Standards Board. The financial statements 

for the year ended September 30, 2020, were changed to be presented in accordance with accounting and 

reporting standards promulgated by the FASAB. Our opinion is not modified with respect to this matter.

Other Matter

Required Supplementary Information

U.S. generally accepted accounting principles require that the information in the Management’s Discussion and 

Analysis and Required Supplementary Information sections be presented to supplement the basic financial 

statements. Such information, although not a part of the basic financial statements, is required by the FASAB

who considers it to be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to the

required supplementary information in accordance with auditing standards generally accepted in the United 

States of America, which consisted of inquiries of management about the methods of preparing the information 

and comparing the information for consistency with management’s responses to our inquiries, the basic

financial statements, and other knowledge we obtained during our audits of the basic financial statements. We 

do not express an opinion or provide any assurance on the information because the limited procedures do not 

provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements as of and for the year ended September 30, 

2021, we considered the ESF’s internal control over financial reporting (internal control) as a basis for 

designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion 

on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the ESF’s 

internal control. Accordingly, we do not express an opinion on the effectiveness of the ESF’s internal control.

We did not test all internal controls relevant to operating objectives as broadly defined by the Federal 

Managers’ Financial Integrity Act of 1982. 

A deficiency in internal control exists when the design or operation of a control does not allow management or 

employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a 

deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet 

important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section

and was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal 

control that we consider to be material weaknesses. However, material weaknesses may exist that have not 

been identified.
13

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the ESF’s financial statements as of and for the year 

ended September 30, 2021 are free from material misstatement, we performed tests of its compliance with 

certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have 

a direct and material effect on the financial statements. However, providing an opinion on compliance with 

those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests disclosed no instances of noncompliance or other matters that are required to be reported 

under Government Auditing Standards or OMB Bulletin No. 21-04. 

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

results of that testing, and not to provide an opinion on the effectiveness of the ESF’s internal control or 

compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, DC

March 9, 2022
14

DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

BALANCE SHEETS

 As of September 30,

(in thousands) 2021 2020

ASSETS

Intra-Governmental

Fund Balance with Treasury (Note 2) $ 1,984,276 $ 480,643,983

Nonmarketable U.S. Treasury Securities (Note 3) 22,836,891 11,169,942

Total Intra-Governmental 24,821,167 491,813,925

Other Than Intra-Governmental

Foreign Currency and Other Monetary Assets 

 Foreign Currency and Foreign Currency Denominated Assets (Note 4) 15,669,159 15,867,039

 Special Drawing Right Holdings and Related Interest Receivable (Note 5) 163,884,490 51,740,204

Other Receivable (Note 6) 462,467 -

COVID-19 Investments, Receivables, and Other

 Investments, Net (Note 6) 25,578,448 107,946,003

 Credit Program Receivables, Net (Note 7) 1,310,966 1,579,620

 Other (Note 8) - 1,618,699

Other Investments, Net (Note 9) 5,265,234 5,801,436

Total Other Than Intra-Governmental 212,170,764 184,553,001

Total Assets $ 236,991,931 $ 676,366,926

The accompanying notes are an integral part of these statements.
15

DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

BALANCE SHEETS (Cont.)

As of September 30,

(in thousands) 2021 2020

LIABILITIES

Intra-Governmental

Debt (Note 11) $ 23,997,698 $ 87,102,396

Due to the General Fund (Note 10) 3,251,365 12,834,861

Other Liabilities (Notes 6 and 7) 482,935 -

Total Intra-Governmental 27,731,998 99,937,257

Other Than Intra-Governmental

Special Drawing Right Allocations and Related Interest Payable (Note 5) 161,835,969 49,716,537

Special Drawing Right Certificates Issued to Federal Reserve Banks (Note 5) 5,200,000 5,200,000

Other Liabilities 640 625

Total Other Than Intra-Governmental 167,036,609 54,917,162

Total Liabilities 194,768,607 154,854,419

Commitments and Contingencies (Note 12)

NET POSITION

Unexpended Appropriations

Funds from Dedicated Collections (Combined) (Note 13) 200,000 200,000

Funds from Other than Dedicated Collections (Combined) 1,603,868 480,643,698

Total Unexpended Appropriations 1,803,868 480,843,698

Cumulative Results of Operations

Funds from Dedicated Collections (Combined) (Note 13) 40,419,805 41,127,295

Funds from Other than Dedicated Collections (Combined) (349) (458,486)

Total Cumulative Results of Operations 40,419,456 40,668,809

Total Net Position 42,223,324 521,512,507

Total Liabilities and Net Position $ 236,991,931 $ 676,366,926

The accompanying notes are an integral part of these statements.
16

DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

STATEMENTS OF NET COST

For the Fiscal Years Ended September 30,

(in thousands) 2021 2020

STRATEGIC GOAL 1: EXCHANGE STABILIZATION

Gross Cost

 Interest Expense on Special Drawing Rights Allocations and Remuneration $ 39,270 $ 182,356

 Losses on Currency Valuation and Other:

 Special Drawing Right Holdings (Note 5) 716,172 -

 Special Drawing Right Allocations (Note 5) - 1,564,077

 Other Investments (Note 9) 689,611 - 

 International Monetary Fund Annual Assessment and Other 974 711

 Total Losses on Currency Valuation and Other 1,406,757 1,564,788

 Total Gross Cost 1,446,027 1,747,144

Less Earned Revenue

 Interest Income:

 Nonmarketable U.S. Treasury Securities (Note 3) (7,055) (169,724)

 Foreign Currency and Foreign Currency Denominated Assets (Note 4) 8,923 42,865

 Special Drawing Right Holdings (Note 5) (40,631) (189,442)

 Other Investments (Note 9) 35,513 (3,373)

 Total Interest Income (3,250) (319,674)

 Gains on Currency Valuation and Other: 

 Special Drawing Right Holdings (Note 5) - (1,626,363)

 Special Drawing Right Allocations (Note 5) (717,715) -

 Other Investments (Note 9) - (1,062,161)

 Total Gains on Currency Valuation and Other (717,715) (2,688,524)

 Total Earned Revenue (720,965) (3,008,198)

Total Net Cost (Income) of Operations – Exchange Stabilization 725,062 (1,261,054)

STRATEGIC GOAL 2: ECONOMIC RECOVERY PROGRAM

Gross Cost

 Interest Expense on Debt (Note 11) 606,518 3,106,564

 Losses on Investments and Credit Program Receivables (Notes 6 and 7) - 4,797,778

 Administrative Expenses 19,228 5,102

Total Gross Cost – Economic Recovery Program 625,746 7,909,444

Less: Earned Revenue

 Interest Income on Uninvested Funds (Note 2) (130,334) (2,160,551)

 Interest Income on Credit Program Receivables (Note 7) (71,573) (3,974)

 Facility Fee Income (Note 8) (15,021) (118,699)

 Gains on Investments and Credit Program Receivables (Notes 6 and 7) (4,665,198) -

Total Earned Revenue – Economic Recovery Program (4,882,126) (2,283,224)

Total Net Cost (Income) of Operations – Economic Recovery Program (4,256,380) 5,626,220

Total Net Cost (Income) of Operations $ (3,531,318) $ 4,365,166

The accompanying notes are an integral part of these statements.
17

DEPARTMENT OF THE TREASURY 

EXCHANGE STABILIZATION FUND

STATEMENT OF CHANGES IN NET POSITION

For the Fiscal Year Ended September 30, 2021

(in thousands)

Funds from 

Dedicated 

Collections

(Consolidated)

Funds from Other 

than Dedicated 

Collections

(Consolidated) Consolidated Total

UNEXPENDED APPROPRIATIONS 

Beginning Balance $ 200,000 $ 480,643,698 $ 480,843,698

 Appropriations Received - 906,019 906,019

 Appropriations Rescinded (Notes 6 and 7) - (478,796,257) (478,796,257)

 Appropriations Used (Notes 6 and 7) - (1,149,592) (1,149,592)

Net Change in Unexpended Appropriations - (479,039,830) (479,039,830)

Ending Balance 200,000 1,603,868 1,803,868

CUMULATIVE RESULTS OF OPERATIONS

Beginning Balance 41,127,295 (458,486) 40,668,809

 Appropriations Used (Notes 6 and 7) - 1,149,592 1,149,592

 Transfers Out without Reimbursement - (483,605) (483,605)

 Imputed Financing Sources - 134 134

 Transfers to the General Fund and Other - (4,446,792) (4,446,792)

 Total (Net Cost) Income of Operations (707,490) 4,238,808 3,531,318

Net Change in Cumulative Results of Operations (707,490) 458,137 (249,353)

Ending Balance 40,419,805 (349) 40,419,456

NET POSITION $ 40,619,805 $ 1,603,519 $ 42,223,324

The accompanying notes are an integral part of these statements.
18

DEPARTMENT OF THE TREASURY 

EXCHANGE STABILIZATION FUND

STATEMENT OF CHANGES IN NET POSITION

For the Fiscal Year Ended September 30, 2020

(in thousands)

Funds from 

Dedicated 

Collections

(Consolidated)

Funds from Other 

than Dedicated 

Collections

(Consolidated) Consolidated Total

UNEXPENDED APPROPRIATIONS 

Beginning Balance $ 200,000 $ - $ 200,000

 Appropriations Received (Notes 6 and 7) - 500,000,000 500,000,000

 Appropriations Transferred Out - (25,000) (25,000)

 Appropriations Used (Notes 6 and 7) - (19,331,302) (19,331,302)

Net Change in Unexpended Appropriations - 480,643,698 480,643,698

Ending Balance 200,000 480,643,698 480,843,698

CUMULATIVE RESULTS OF OPERATIONS

Beginning Balance 39,701,109 - 39,701,109

 Appropriations Used (Notes 6 and 7) - 19,331,302 19,331,302

 Imputed Financing Sources - 32 32

 Transfers to the General Fund and Other - (13,998,468) (13,998,468)

 Total (Net Cost) Income of Operations 1,426,186 (5,791,352) (4,365,166)

Net Change in Cumulative Results of Operations 1,426,186 (458,486) 967,700

Ending Balance 41,127,295 (458,486) 40,668,809

NET POSITION $ 41,327,295 $ 480,185,212 $ 521,512,507

The accompanying notes are an integral part of these statements.
19

DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

STATEMENT OF BUDGETARY RESOURCES

For the Fiscal Year Ended September 30, 2021

(in thousands)

Budgetary

Non-Budgetary

Credit Reform

Financing

Account

Total

BUDGETARY RESOURCES 

Unobligated balance from prior year budget authority, Net (discretionary and 

mandatory) (Note 14)

$ 623,474,888 $ 12,289,484 $ 635,764,372

Appropriations (discretionary and mandatory) (477,890,238) - (477,890,238)

Borrowing authority (discretionary and mandatory) - 14,713,402 14,713,402

Spending authority from offsetting collections (discretionary and mandatory) 11,654,704 (11,582,981) 71,723

Total Budgetary Resources $ 157,239,354 $ 15,419,905 $ 172,659,259

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 115,083,681 $ 15,039,789 $ 130,123,470

Unobligated balance, end of year:

 Apportioned, unexpired accounts 1,591,044 - 1,591,044

 Unapportioned, unexpired accounts 40,564,629 380,116 40,944,745

Unobligated balance, end of year 42,155,673 380,116 42,535,789

Total Status of Budgetary Resources $ 157,239,354 $ 15,419,905 $ 172,659,259

OUTLAYS, NET, AND DISBURSEMENTS, NET

Outlays, net (discretionary and mandatory) $ (10,505,119) $ - $ (10,505,119)

Distributed offsetting receipts (14,030,288) - (14,030,288)

Agency Outlays, Net (Discretionary and Mandatory) $ (24,535,407) $ - $ (24,535,407)

Disbursements, net (mandatory) $ (63,485,485) $ (63,485,485)

The accompanying notes are an integral part of these statements.
20

DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

STATEMENT OF BUDGETARY RESOURCES

For the Fiscal Year Ended September 30, 2020

(in thousands)

Budgetary

Non-Budgetary 

Credit Reform 

Financing

Account

Total

BUDGETARY RESOURCES 

Unobligated balance from prior year budget authority, Net

(discretionary and mandatory) (Note 14)

$ 42,854,368 $ 

-

$ 42,854,368

Appropriations (discretionary and mandatory) 499,975,000 - 499,975,000

Borrowing authority (discretionary and mandatory) 

- 

 

188,523,874 

 

188,523,874 

Spending authority from offsetting collections (discretionary 

and mandatory)

 

139,144 

 

26,101,218 

 

26,240,362 

Total Budgetary Resources $ 542,968,512 $ 214,625,092 $ 757,593,604 

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 53,730,400 $ 214,625,092 $ 268,355,492

Unobligated balance, end of year:

 Apportioned, unexpired accounts 468,136,265 - 468,136,265 

 Unapportioned, unexpired accounts 21,101,847 - 21,101,847 

Unobligated balance, end of year 489,238,112 - 489,238,112 

Total Status of Budgetary Resources $ 542,968,512 $ 214,625,092 $ 757,593,604

OUTLAYS, NET, AND DISBURSEMENTS, NET

Outlays, net (discretionary and mandatory) $ 30,691,873 $ - $ 30,691,873 

Distributed offsetting receipts (1,163,607) - (1,163,607)

Agency Outlays, Net (Discretionary and Mandatory) $ 29,528,266 $ - $ 29,528,266 

Disbursements, net (mandatory) $ 87,102,396 $ 87,102,396 

The accompanying notes are an integral part of these statements.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

21

(continued)

NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES 

A. Reporting Entity 

The Exchange Stabilization Fund (ESF) was originally established by Section 10 of the Gold Reserve 

Act of 1934 for the purpose of stabilizing the exchange value of the dollar. Section 10 has been 

amended several times since 1934. This Section currently authorizes the Secretary of the U.S.

Department of the Treasury (Treasury), with the approval of the President of the U.S., to deal in 

gold, foreign exchange, and instruments of credit and securities consistent with U.S. obligations in 

the International Monetary Fund (IMF) on orderly exchange arrangements and a stable system of 

exchange rates (31 U.S.C. 5302(b)).

The Federal Reserve Bank of New York (FRBNY) acts as the fiscal agent for the ESF, as permitted 

by the Federal Reserve Act of 1913 (Federal Reserve Act). As the fiscal agent, the FRBNY plays a 

significant role in the processing of foreign currency transactions that the Secretary of Treasury 

(Secretary) authorizes. The manager of the ESF foreign currency portfolio at the FRBNY consults 

regularly with the Federal Open Market Committee and Treasury about the disposition of 

investments and the status of the portfolio. The level and currency composition of the ESF foreign 

currency portfolio are the products of Treasury’s policy determinations. The ESF management is 

responsible for the record keeping and investment decisions for foreign currency transaction activity

carried out by the FRBNY.

The global spread of a new coronavirus disease (COVID-19) in early spring of 2020 resulted in a 

severe global health and economic crisis. In March 2020, the Federal Reserve Board of Governors 

(Board) and Congress took steps to limit the damage caused by the pandemic in the U.S. by helping 

to reduce the financial burden on individuals and their families, minimize business and employment 

losses, and enhance the liquidity of the U.S. financial system.

Among other things, the Board used its emergency-lending authority under Section 13(3) of the 

Federal Reserve Act (Section 13(3) hereafter) authorizing the FRBNY and the Federal Reserve Bank 

of Boston (FRBB) to establish liquidity lending facilities for the purpose of making loans and 

purchasing debt and other commercial paper of eligible entities to support key U.S. financial markets. 

Additionally, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES 

Act), P.L. 116-136, authorizing the Secretary to make certain loans, loan guarantees and other 

investments to provide liquidity to eligible businesses, States, and municipalities and appropriating 

$500.0 billion to the ESF to carry out such authorities. The ESF played a critical role in supporting 

and implementing programs authorized by the Board and Congress. The ESF’s financial statements 

for the fiscal years (FY) ended September 30, 2021 and 2020 were impacted by the effects of these 

transactions and reports them as either Economic Recovery Program or COVID-19. 

Pursuant to Section 10 of the Gold Reserve Act of 1934, the ESF is not permitted to pay 

administrative expenses, except under the specific authority provided by the CARES Act. Treasury’s 

Office of International Affairs has responsibility for managing ESF operations, and Treasury’s 

Office of the Deputy Chief Financial Officer provides the recordkeeping and financial reporting 

services for the ESF. These Treasury offices bear all administrative expenses of the ESF except for 

those authorized by the CARES Act. These authorized administrative expenses are reported on the 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

22

(continued)

Statements of Net Cost and include immaterial imputed costs related to services received from other 

federal entities (refer to Note 1L).

B. Basis of Accounting and Presentation 

The accompanying financial statements have been prepared from ESF’s accounting records in 

conformity with U.S. Generally Accepted Accounting Principles (GAAP) for federal entities, and 

Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirements, 

as revised. Accounting principles generally accepted for federal entities are the standards prescribed 

by the Federal Accounting Standards Advisory Board (FASAB). The American Institute of Certified 

Public Accountants recognizes FASAB as the official accounting standards-setting body for the U.S. 

government. Certain presentations and disclosures may be modified, if needed, to prevent the 

disclosure of classified information.

These financial statements consist of the Balance Sheets, the Statements of Net Cost, the Statements 

of Changes in Net Position, and the Statements of Budgetary Resources. The statements and the 

related notes are prepared in a comparative form to present both fiscal years 2021 and 2020 

information. These statements should be read with the understanding that they are for a component of

the U.S. government, a sovereign entity.

Intra-governmental assets and liabilities are those due from or to other federal entities. Intragovernmental earned revenues are collections or accruals of revenue from other federal entities, 

and intra-governmental costs are payments or accruals of expenditures to other federal entities.

Changes in Financial Reporting

In fiscal year 2021, the ESF changed to accounting standards promulgated by the FASAB for 

federal agencies for purposes of ESF’s financial accounting and reporting. Prior to October 1, 

2020, the ESF presented the financial statements in accordance with the accounting standards 

published by the Financial Accounting Standards Board (FASB). Management decided to make 

this change to align with the form and content of the financial statements in the U.S. Treasury’s 

Agency Financial Report and applied the change retrospectively.

Accounting standards published by FASAB require that the ESF present a Balance Sheet, a 

Statement of Net Cost, a Statement of Changes in Net Position, and a Statement of Budgetary 

Resources as of and for each year ended and related notes to the financial statements. These 

replace the financial statements that ESF had previously prepared under accounting standards 

published by FASB, which includes the Statements of Financial Position, Statements of Operations 

and Comprehensive (Loss) Income, Statements of Changes in Equity, and Statements of Cash 

Flows as of and for each year ended. In accordance with the accounting standards published by 

FASAB, the ESF also added Note 10 – Due to the General Fund, Note 13 – Funds from Dedicated 

Collections, Note 14 – Statement of Budgetary Resources, and Note 15 – Reconciliation of Net 

Cost of Operations to Budgetary Outlays, and Required Supplementary Information, which 

includes the Management Discussion and Analysis and the Combining Statement of Budgetary 

Resources.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

23

(continued)

Further, the change to accounting standards published by FASAB from accounting standards 

published by FASB resulted in changes in FCRA due to the general fund liabilities reported under 

FASAB but not under FASB, as reflected in the balance sheet as of September 30, 2020. The 

statements contain additional immaterial changes in the valuation of certain COVID-19 related 

direct loans and appropriations used to fund the subsidy costs of these assets, as reflected in the 

Statements of Net Cost and Statement of Changes in Net Position, respectively for the year ended 

September 30, 2020.

C. Fund Balance with Treasury 

Fund Balance with Treasury is the aggregate amount of ESF’s accounts with the U.S. government’s 

central accounts from which the ESF is authorized to make expenditures and pay liabilities. It is an 

asset because it represents ESF’s claim to the U.S. government’s resources. The ESF does not 

maintain cash in commercial bank accounts. Treasury processes cash receipts and disbursements.

D. Nonmarketable U.S. Treasury Securities

The ESF may invest dollars in excess of its immediate needs in overnight, nonmarketable U.S. 

government securities issued by Treasury. Treasury uses the cash collected for general purposes and 

issues securities to the ESF as evidence of the receipts. The securities are assets of the ESF and 

liabilities of Treasury. These securities and related accrued interest receivable are reported as intragovernmental assets on the ESF’s Balance Sheets at amounts that approximate their fair values. The 

interest rate earned on the investments is equal to the overnight repurchase agreement rate as 

established by the U.S. Treasury Bureau of the Fiscal Service (Fiscal Service). Interest income is 

added to the balance and available for repurchasing securities unless authorized by the 

Secretary/Congress for another purpose.

E. Foreign Currency and Foreign Currency Denominated Assets

Foreign Currency and Foreign Currency Denominated Assets (FCDAs) represent deposits and 

investments in foreign government securities denominated in both euro and yen that have original 

maturities of three months or less. They are both readily convertible to known amounts of cash, 

and so near their maturity that they present insignificant risk of change in value due to changes in 

interest rates. Accordingly, these assets and related accrued interest receivable are reported on the 

Balance Sheets at amounts that approximate their fair values. The interest rate earned is based on 

the constant effective yield as determined by the FRBNY. Those FCDAs that have original 

maturities greater than three months are reported on the Balance Sheet as “Other Investments, Net” 

(refer to Notes 1(I) and 9).

F. Special Drawing Rights

The Special Drawing Right (SDR) is an international reserve asset created by the IMF to

supplement its member countries’ official reserves. In addition to its role as a supplementary 

reserve asset, the SDR serves as a means of payment within the IMF, as well as the unit of account 

for the IMF and several other international organizations. Under its Articles of Agreement, the 

IMF may allocate SDRs to member countries in proportion to their IMF quotas. The SDR’s value
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

24

(continued)

is based on a weighted average of a basket of key international reserve currencies issued by IMF 

members (or monetary unions that include IMF members) which have been determined by the 

IMF to be freely usable currencies. These currencies are currently the U.S. dollar, the Euro, the 

Japanese yen, the U.K. pound sterling, and the Chinese renminbi. The SDR carries a variable 

interest rate, calculated weekly as a weighted average of representative interest rates on short-term 

debt in the money markets of the SDR basket currencies. The ESF’s SDR Allocations and 

Holdings are revalued monthly, based on the SDR valuation rate calculated by the IMF, and 

unrealized gains or losses are recognized upon revaluation. Pursuant to the Special Drawing 

Rights Act of 1968, as amended, the ESF holds all SDRs allocated to or otherwise acquired by the 

U.S.

SDR Holdings and Related Interest Receivable, and SDR Allocations and Related Interest Payable

The ESF records the SDR holdings that are permanent resources to the U.S. as part of “Foreign 

Currency and Other Monetary Assets,” and records the SDR allocations as a liability within the 

“Special Drawing Right Allocations and Related Interest Payable” line on the Balance Sheets 

when the IMF allocates SDRs to the U.S. The SDR allocations are a liability to the ESF since the 

U.S. is obligated to repay the allocation amount to the IMF under the following circumstances: (i)

withdrawal by the U.S. from the IMF membership or termination of its position in the SDR 

Department of the IMF; cancellation of the SDRs; or (ii) liquidation of the IMF or SDR 

Department of the IMF. SDR holdings primarily increase as a result of IMF SDR allocations. The 

ESF records SDR transactions as incurred, and includes acquisitions and sales of SDRs, interest 

received on SDR holdings, interest charges on SDRs allocations, and valuation adjustments. The 

U.S. government also receives remuneration in SDRs from the IMF based on claims on the IMF 

as represented by the U.S. Reserve Position in the IMF and loans receivable from the supplemental 

borrowing arrangement. The ESF pays the dollar equivalent to the U. S. Government’s Treasury 

General Account (TGA) at an equivalent amount of dollars plus nominal interest. 

SDRs and related accrued interest receivable or payable are revalued to reflect exchange rates in 

affect as of the reporting date. Gains or losses related to foreign currency revaluations are 

recognized in the period of the fluctuations and reported on the Statements of Net Cost as “Gains 

on Currency Valuation and Other” or “Losses on Currency Valuation and Other,” depending 

upon the net results of valuation by asset category.

SDR Certificates Issued to the Federal Reserve Banks

The Special Drawing Rights Act of 1968, as amended, authorizes the Secretary to issue certificates, 

not to exceed the value of SDRs held against the certificates, to the Federal Reserve Banks (FRBs)

in return for dollar amounts equal to the face value of certificates issued. The ESF issues

certificates to finance the acquisition of SDRs from other countries or to provide U.S. dollar 

resources to finance other ESF operations. Certificates issued are redeemed by the ESF at such 

times and in such amounts as the Secretary may determine, and do not bear interest. Certificates 

issued to the FRBs are reported on the Balance Sheets at their face value which approximates their 

carrying value since, under the terms of the arrangements with the Board, there is no set repayment 

date and no interest accrued while certificates remain outstanding.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

25

(continued)

G. COVID-19: Investments, Net 

 

In FY 2020, in response to the economic effects of the COVID-19 pandemic, the ESF made equity 

investments in Special Purpose Vehicles (SPVs) formed to operationalize emergency liquidity 

lending facilities established by the Board through the FRBNY and FRBB. The ESF presents these 

non-federal investment holdings at their fair value within the “COVID-19: Investments, Net” line of

the Balance Sheets. Subsequent changes in fair value are recognized as unrealized gains or losses on

the Statements of Net Cost within the line item “Gains on Investments and Credit Program

Receivables” or “Losses on Investments and Credit Program Receivables,” respectively. Refer to

Note 6 for further discussion.

H. COVID-19: Credit Program Receivables, Net

COVID-19 credit program receivables relate to direct loans disbursed by the ESF as authorized by 

the CARES Act. These direct loans provide liquidity to eligible businesses which incurred losses as 

a result of COVID-19, including air carriers and other related businesses, as well as businesses critical 

to maintaining national security. The ESF accounts for the direct loans under the provisions of credit

reform accounting pursuant to the Federal Credit Reform Act of 1990 (FCRA). These direct loans

are presented on the Balance Sheets as “COVID-19: Credit Program Receivables, Net” (refer to

Note 7). 

The ESF applies the accounting provisions of SFFAS No. 2, Accounting for Direct Loans and Loan

Guarantees, as amended (SFFAS No. 2). SFFAS No. 2 requires measurement of the asset or liability

at the net present value of the estimated future cash flows. 

The primary purpose of the FCRA is to measure the cost of federal credit programs, and to place

the cost of such credit programs on a basis equivalent with other federal spending. FCRA requires

that the ultimate costs of a credit program be calculated and the budgetary resources be obtained

before incurring the direct loan obligations. To accomplish this, the ESF first predicts or estimates

the future performance of direct loans when preparing the annual budget. The ESF re-estimates

the data used for these budgetary estimates at the fiscal year-end to reflect changes in actual loan

performance and actual interest rates in effect when the loans were issued. The re-estimated data

reflects adjustments for market risks, asset performance, and other key variables and economic

factors. The ESF then uses the re-estimated data to report the adjustment to the cost of the direct

loans disbursed within “Losses on Investments and Credit Program Receivables” or “Gains on

Investments and Credit Program Receivables” line on the Statements of Net Cost.

Cash flows associated with the ESF’s credit programs generally include disbursements,

repayments, repurchases, fees, recoveries, interest, dividends, proceeds from sales of instruments,

borrowings from Treasury, negative subsidy, and the subsidy cost received from the program

accounts. The ESF draws security-level data and assumptions used as the basis for cash flow

model forecasts and program performance from widely available market sources, as well as

information published by investees. The recorded subsidy cost associated with each of the credit

programs represents the difference between disbursed amounts and the net present value of future

cash flows the ESF anticipates receiving. The subsidy allowance, as initially established by the

subsidy cost, takes into consideration projected repayments and defaults, and the projected cost of
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

26

(continued)

borrowings. The ESF amortizes the allowance to reflect the difference between projected and

actual financing costs. 

I. Other Investments, Net

Other Investments are FCDAs that have original maturities greater than three months and are 

classified as either trading or available-for-sale securities. These holdings are normally invested in 

interest-bearing securities issued or held through foreign governnents or monetary authories. The 

ESF’s trading securities are bought and held principally for the purpose of selling them in the near 

term. Available-for-sale securities are those which are neither trading nor held-to-maturity. Both 

trading and available-for-sale securities are recorded at fair value with all realized and unrealized 

holding gains or losses reported on the Statements of Net Cost as “Gains on Currency Valuation and 

Other - Other Investments” or “Losses on Currency Valuation and Other - Other Investments” line,

depending upon the net results by category. Realized gains and losses from the sale of trading 

securities are determined on a specific-identification basis.

Interest on investments, amortization of premiums, and accretion of discounts are recognized on an 

accrual basis as “Interest Income - Other Investments” on the Statements of Net Cost. Premiums 

and discounts are amortized or accreted over the life of the related investment security as an 

adjustment to yield using the effective interest method.

J. Debt

Debt represents borrowings payable to the Fiscal Service that were incurred to finance, in part, the 

making of investments and loans (reported as credit program receivables), as authorized by the 

CARES Act. Interest costs accrue as an expense as incurred and are reported as entity costs on the 

Statements of Net Cost.

K. Commitments and Contingencies

In accordance with SFFAS No. 5, Accounting for Liabilities of the Federal Government, the ESF

recognizes material contingent liabilities meeting the following criteria:

• A past event or exchange transaction has occurred;

• A future cash outflow is probable; and

• A future cash outflow is measurable

The estimated liability recorded is either a specific amount or within a range of amounts. If some 

amount within the range is a better estimate than any other amount within the range, that amount is 

recognized. If no amount within the range is a better estimate than any other amount, the ESF

recognizes the minimum amount in the range, and discloses the range and a description of the nature 

of the contingency. The ESF follows this policy in recording a contingent liability, if any, related to 

amounts that could become payable to the Federal Old-Age and Survivors Insurance Trust Fund, 

pursuant to the CARES Act, in connection with ESF’s COVID-19 related investments and credit 

program receivables that were financed by a combination of appropriations and Fiscal Service debt 

(refer to Notes 6 and 7), and other loss contingencies that could arise from claims, assessments, 

litigations, fines, penalties, and other sources.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

27

(continued)

If one or more, but not all, of the above criteria for recognition are met, and there is a reasonable 

possibility of loss, the ESF will disclose, if material, the nature of the contingent liability, along with 

a range of possible loss, if estimable, and a description of the nature of the contingency. 

L. Revenue and Other Financing Sources

The ESF’s core exchange stabilization program activities are primarily financed through exchange

revenue the ESF receives from others, including interest received on Nonmarketable U.S. Treasury 

Securities, and Other Investments, SDRs. A portion of the core exchange stablization program, 

along with all of the ESF’s economic recovery program, use financing sources such as appropriations 

provided by Congress and borrowings from Fiscal to finance these activities. The ESF recognizes

exchange revenue when earned, i.e., goods are delivered or services are rendered. The ESF

recognizes appropriations used as financing sources when related expenses are incurred or assets are 

purchased. 

As a component entity of Treasury, the ESF receives goods and services from other federal entities 

or from other entities within Treasury at no cost or as a cost less than the full cost. The ESF 

recognizes these subsidized costs on the Statements of Net Cost, and recognizes the imputed 

financing for these costs on the Statements of Changes in Net Position. As a result, there is no effect 

on Net Position. 

M. Net Position

Unexpended Appropriations 

Unexpended Appropriations represents the amount of spending authorized as of year-end that is 

unliquidated or unobligated and has not lapsed, been rescinded, or withdrawn. Appropriations 

remain available for upward or downward adjustment of obligations until canceled. The ESF reports

adjustments related to unexpended appropriations, such as cancellations of expired funds or 

rescissions, on the Statements of Changes in Net Position.

Cumulative Results of Operations 

Cumulative Results of Operations represents the net results of the ESF’s operations not funded by 

appropriations or some other source,since inception through the end of the fiscal year. Also included 

as a reduction in Cumulative Results of Operations are accruals for which the related expenses 

require funding from future appropriations, earnings and assessments. These future funding 

requirements include, among others, credit reform cost re-estimates and expenses for contingent 

liabilities, if applicable.

N. Funds from Dedicated Collections

The ESF accounts for revenues and other financing sources for Funds from Dedicated Collections

separately from other funds within ESF’s financial statements. Such funds are financed by 

specifically identified revenues provided to the U.S. government by non-federal sources, often 

supplemented by federal and other financing sources, which remain available over time. Statute 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

28

(continued)

requires the use of these specifically identified revenues and other financing sources for designated 

activities, benefits, or purposes. (Refer to Note 13).

The federal government does not set aside assets to pay future benefits or other expenditures 

associated with the ESF’s Funds from Dedicated Collections. The dedicated cash receipts from 

transactions with the public are deposited into Nonmarketable U.S. Treasury Securities held at the 

Fiscal Service, which uses the cash for general government purposes. Treasury securities are issued 

to the ESF as evidence of its receipts, and provide the ESF with authority to draw upon Treasury to 

make future expenditures. Treasury securities are an asset to the ESF and a liability to Treasury.

O. Appropriations and Other Budgetary Activity

The ESF records appropriations when authorized by legislation. Incurred obligations of 

appropriations are recorded when the ESF places orders or signs contracts for goods and services, or 

takes other actions that require the ESF to make payments to the public or another federal entity. 

Outlays are recorded when disbursements are made. As of September 30, 2021 and 2020, all 

liabilities are covered by budgetary resources except for the immaterial amounts related to unfunded 

accrued payroll and other benefits-related accruals.

With respect to credit programs executed in accordance with FCRA, the ESF also has permanent 

and indefinite appropriation authority to fund increases in the projected subsidy costs of credit 

programs as determined by the re-estimation process required by FCRA (refer to Note 1H above).

P. Tax-Exempt Status

As a component of Treasury, which is an agency of the U.S. government, the ESF is exempt from 

all income taxes imposed by any governing body, whether it is a federal, state, commonwealth, local, 

or foreign government. Accordingly, no provision for income taxes is recorded. 

Q. Fair Value Measurement

The ESF estimates certain of its financial instruments at fair value, a market-based measurement. 

For certain assets and liabilities, observable market transactions or market information may be 

available. For other assets and liabilities, observable market transactions and market information 

may not be available. However, the objective of a fair value measurement in both cases is to estimate 

the price at which an orderly transaction to sell an asset or to transfer a liability between market 

participants at the measurement date occurs under current market conditions.

When a price for an identical asset or liability is not observable, a reporting entity measures fair 

value using another valuation technique that maximizes the use of relevant observable inputs and 

minimizes the use of unobservable inputs. Because fair value is a market-based measurement, it is 

measured using the assumptions that market participants would use when pricing the asset or 

liability, including assumptions about risk.

The fair value measurement of an asset or a liability is categorized with different levels of fair value 

hierarchy as follows:
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

29

(continued)

• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the

reporting entity can access at the measurement date.

• Level 2 - Inputs other than quoted prices included within Level 1 inputs that are observable 

for the asset or liability, either directly or indirectly.

• Level 3 - Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing assets and liabilities are not necessarily indicative of the 

risks associated with those assets and liabilities.

Valuation of COVID-19 Investments, Net includes Level 3 inputs. Refer to Note 6 for further 

information about these financial assets, including changes in Level 3 financial assets and related 

fair value measurements.

The ESF’s FCDAs and Other Investments, Net are Level 1 measurements since these financial assets 

are traded in active markets where quoted values are readily available. Refer to Notes 4 and 9.

R. Other-Than-Temporary Impairment 

A decline in the market value (either due to credit, price or currency) of any investment below cost

that is deemed to be other-than-temporary is accounted for as an impairment, and the carrying value

is reduced to fair value for financial reporting purposes. The impairment is reported as a cost on the

Statements of Net Cost, and the charge establishes a new cost basis for the investment. To determine

whether an impairment is other-than-temporary, the ESF considers whether it has the ability and

intent to hold the investment until a market price recovery and considers whether evidence indicating

that the cost of the investment is recoverable outweighs evidence to the contrary. The ESF regularly

evaluates whether unrealized losses on investment securities indicate other-than-temporary

impairment that would require recognition in the financial statements.

S. Risks, Uncertainties and Use of Estimates 

The ESF faces certain risks and uncertainties as a result of holding foreign currency securities. The

price of the ESF’s holdings of such securities may fluctuate widely as a result of volatility in foreign

currency markets and changes in real and perceived credit risk of ESF’s counterparties.

Credit risk related to the ESF’s holdings has the potential, no matter how remote, for financial loss

from a failure of a borrower or counterparty to perform in accordance with underlying contractual

obligations.

The preparation of financial statements in accordance with GAAP requires management to make

certain estimates and assumptions that affect the reported amounts of assets, liabilities, and

disclosures of contingent assets and liabilities as of the date of the financial statements, and the

reported amounts of revenues and expenses during the reporting period. Transactions involving

estimates principally include the ESF’s holdings in FCDAs and Investment Securities, as well as the

COVID-19 Investments, COVID-19 Credit Program Receivables and related subsidy costs (refer to

Notes 1I and 1H).
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

30

(continued)

Amounts based on estimates involve numerous assumptions subject to varying and potentially

significant degrees of judgment and uncertainty. Therefore, accounting estimates and assumptions

may change over time and actual results could differ materially from those estimates.

T. Disclosure Entities and Related Parties

SFFAS No. 47, Reporting Entity, requires that the financial statements reflect the balances and

activities of consolidation entities, including Treasury bureaus and other reporting entities, meeting

the following “principles for inclusion” when considered as a whole: (i) the entity is included in the

Budget of the U.S. (also known as the President’s Budget), (ii) the U.S. government holds “majority

ownership interest,” (iii) the U.S. government has “control with risk of loss or expectation of

benefit,” or (iv) it would be misleading to exclude such entity. SFFAS No. 47 also provides guidance

for assessing whether an organization meeting the inclusion principles is reported as a disclosure

entity or related party. 

A disclosure entity exists when the ESF determines that an entity meets any of the SFFAS No. 47

“principles for inclusion” with respect to the U.S. government but does not meet the characteristics

of a “consolidation entity” included in its principal financial statements and footnotes. 

A related party exists when one party to an established relationship has the ability to exercise 

significant influence over another party in making policy decisions. Related parties generally do not

meet the SFFAS No. 47 inclusion principles; however, the ESF reports on any relationship that is of

such significance that it would be misleading to exclude information about that entity.

Disclosure entities and related parties are not considered components of the ESF reporting entity

and, thus, are only disclosed in the notes to the ESF financial statements. Using the principles

prescribed in SFFAS No. 47, the ESF identified the following disclosure entity as of September 30,

2021 and 2020. There were no related parties.

FRB-Managed Special Purpose Vehicles – Liquidity Lending Facilities

In response to the COVID-19 pandemic, the ESF holds equity investments in SPVs established by

the Board through the FRBNY and FRBB for the purpose of enhancing the liquidity of the U.S.

financial system. The ESF’s involvement in these programs represents non-permanent intervention

activities designed to help mitigate the economic impacts of the pandemic. Accordingly, ESF’s

equity interests in these SPVs meet the SFFAS No. 47 criteria for classifying the SPV investments

as disclosure entities. The value of these investments is presented within the “COVID-19:

Investments, Net” line on the Balance Sheets (refer to Note 6).

NOTE 2 -FUND BALANCE WITH TREASURY 

Fund Balance is increased: (i) by receiving appropriations, reappropriations, continuing resolutions,

appropriation restorations, and allocations, and (ii) when transfers and reimbursements from other

federal agencies are received. Fund Balance can also be increased by amounts borrowed from the

Fiscal Service, and by amounts collected and credited to appropriation or fund accounts. 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

31

(continued)

Fund Balance is reduced when: (i) disbursements are made to pay liabilities or to purchase assets,

goods, and services; (ii) investments in U.S. securities (securities issued by Fiscal Service or other

federal agencies); (iii) expired appropriations are canceled, or the ESF makes transfers and

reimbursements to other federal entities, non-federal entities, or to the General Fund; and (iv) due to

sequestration or rescission of appropriations.

Interest income on Fund Balance in the FCRA funds is reported within the “Interest Income on

Uninvested Funds” line on the Statements of Net Cost and is received annually on September

30. For the fiscal years ended September 30, 2021 and 2020, the ESF recorded interest income

totaling $130 million and $2.2 billion, respectively, related to these fund balances. The accrued

interest income was collected in full on September 30, 2021 and 2020.

Fund balance activity for the fiscal years ended September 30, 2021 and 2020, and fund balance

status as of September 30, 2021 and 2020 are presented below. 

Fiscal Year Ended

(in thousands) September 30, 2021 September 30, 2020

Balance, beginning of period $ 480,643,983 $ - 

 Rescissions (478,796,257) - 

 Appropriations Received 906,018 500,000,000 

 Appropriations Transferred Out - (25,000)

 Transfers to the General Fund (14,030,287) (1,163,528)

 Borrowings from (Repayments to) Fiscal Service, Net (63,104,698) 87,102,396 

 Disbursements for Loans and Investments (857,984) (104,320,000)

 Return of Investment Capital and Collections of Loan Principal 77,670,801 - 

 Disbursements for Net Interest, Administrative Costs and Other (447,300) (949,885)

Balance, end of period $ 1,984,276 $ 480,643,983

As of

(in thousands) September 30, 2021 September 30, 2020

Unobligated Balance:

 Available $ 1,591,044 $ 468,136,265 

 Unavailable 380,116 - 

Obligated Balance Not Yet Disbursed 13,116 106,045,953 

Non-Budgetary Fund Balance with Treasury:

 Borrowing Authority Not Yet Converted to Fund Balance - (93,538,235)

Total Status of Fund Balance with Treasury $ 1,984,276 $ 480,643,983

The Unobligated Balances, both available and unavailable, decreased by a total of $466.2 billion

year-over-year primarily due to the return of the fund balance prompted by the $478.8 billion of

CARES Act appropriation authority that was rescinded pursuant to the Consolidated Appropriations 

Act, 2021 (CAA). Partially offsetting this amount was a de-obligation of $12.3 billion that was to

be used to fund the subsidy portion of obligated but undisbursed CARES Act investments and loans.

The CAA also canceled $105.6 billion of Obligated Balance Not Yet Disbursed and led to the

withdrawal of Borrowing Authority Not Yet Converted to Fund Balance. Other changes in these

accounts represent FY 2021 activity in the remaining loans and investments. Refer to Notes 6 and 7
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

32

(continued)

and for additional details.

NOTE 3-NONMARKETABLE U.S. TREASURY SECURITIES

The interest rate earned on the Nonmarketable U.S. Treasury Securities is equal to the overnight

repurchase agreement rate as established by the Fiscal Service. These market-based investments had

a cost/acquisition value of $22.8 billion and $11.2 billion at September 30, 2021 and 2020,

respectively, which approximated their fair value.

The year-over-year increase in this balance is primarily a result of the return in FY 2021 of ESF core

funds of $11.5 billion that were previously disbursed in FY 2020 to finance support for the

Commercial Paper Funding Facility ($10.0 billion) and the Money Market Mutual Fund Liquidity

Facility ($1.5 billion) established by the Board as emergency liquidity lending facilities as a result

of the COVID-19 pandemic (refer to Notes 6 and 8).

Statutory Debt Limit 

The statutory debt limit is the total amount of money that the U.S. government is authorized to

borrow to meet its existing legal obligations, with certain adjustments. The ESF’s Nonmarketable

U.S. Treasury Securities are part of the authorized debt. Treasury has statutory authority to take

certain “extraordinary measures” in the event that the public debt nears the statutory debt limit and

the statutory debt limit has not been raised or suspended or otherwise lifted. One such extraordinary

measure is the suspension of new issuances of U.S. Treasury securities to the ESF. When Treasury

discontinues its use of extraordinary measures, Treasury resumes normal debt management

operations. While Treasury may restore the ESF, relevant statutes do not permit Treasury to pay the

ESF interest lost during a period of delay. No suspension of new issuances to the ESF occurred in

2021 or 2020. 

NOTE 4–FOREIGN CURRENCY AND FOREIGN CURRENCY DENOMINATED ASSETS 

Foreign currency and FCDAs represent foreign deposit accounts and securities with original 

maturities of three months or less which were valued at $15.7 billion and $15.9 billion as of 

September 30, 2021 and 2020, respectively. The totals were comprised of $9.5 billion of foreign 

currency and $6.2 billion of FCDAs for 2021 and $10.3 billion of foreign currency and $5.6 billion

of FCDAs for 2020.

NOTE5 -SPECIAL DRAWING RIGHTS 

SDR Holdings and SDR Allocations are reported as an asset and liability respectively in the 

financial statements of the ESF. The ESF also issued certificates to the Federal Reserve valued at 

$5.2 billion which were reported as a liability on the Balance Sheets as of September 30, 2021 and 

2020.

SDR Allocations

SDRs, once allocated to the U.S., are permanent resources unless:
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

33

(continued)

• They are canceled by an 85 percent majority decision of the total voting power of the

 Board of Governors of the IMF;

• The SDR Department of the IMF is liquidated;

• The IMF is liquidated; or

• The U.S. chooses to withdraw from the IMF or terminate its participation in the SDR

 Department.

Due to the fact that the SDRs could be required to be repaid under the limited circumstances above, 

the ESF carries a liability related to such allocations.

Except for the payment of interest and charges on SDR Allocations to the U.S., the payment of 

ESF’s liability related to the SDR Allocations is conditional on events listed above, in which the 

U.S. has a controlling vote or makes a unilateral determination. Allocations of SDRs were made 

during calendar years 1970, 1971, 1972, 1979, 1980, 1981, 2009, and 2021. As of September 30, 

2021, and 2020, the value of SDR Allocations to the U.S., including related interest payable, was 

the equivalent of $161.8 billion and $49.7 billion, respectively.

SDR Holdings

Pursuant to the Special Drawing Rights Act of 1968, as amended, SDRs allocated by the IMF to, or 

otherwise acquired by the U.S., are the resources (holdings) of the ESF. SDR Holdings represent 

SDRs held by the ESF resulting from these SDR activities, primarily the result of IMF allocations. 

Other transactions reported are recorded as they are incurred and include any SDR acquisitions and 

sales, interest received on SDR Holdings, interest charges on SDR Allocations, and other SDR 

related activities, as well as valuation adjustments. The SDR Holdings and related net accrued 

interest receivable are revalued to reflect exchange rates in effect as of the reporting date.

On August 2, 2021, the Board of Governors of the IMF made a general allocation of SDRs, which 

included an allocation valued at $112.8 billion to the U.S. government, increasing the ESF’s 

balance in SDR Holdings, and a corresponding increase in SDR Allocations, from $51.7 billion as 

of September 30, 2020 to $163.9 billion as of September 30, 2021. Of the $716 million loss 

reported within the “Special Drawing Right Holdings” line on the Statements of Net Cost, $764 

million pertains to the loss in value of the general allocation from August 2, 2021 until September 

30, 2021. This loss is offset by a corresponding $764 million gain included in the “Special 

Drawing Right Allocations” line on the Statements of Net Cost. 

The following schedule reflects the activity related to SDR Holdings during fiscal years 2021 and 

2020, by SDR and dollar equivalent: 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

34

(continued)

As of September 30

(SDRs in thousands) 2021 2020

Balance, beginning of period $ 36,753,372 $ 36,658,104 

 General/Special Allocations 79,546,208 -

 Interest Credits on Holdings 26,311 189,322

 Interest Charges on Allocations (25,277) (182,237)

 Remuneration 16,017 88,652 

 IMF Annual Assessment (593) (469) 

Balance, end of period $ 116,316,038 $ 36,753,372 

As of September 30

(Dollar Equivalent in thousands) 2021 2020

Balance, beginning of period $ 51,732,943 $ 49,976,358

 General/Special Allocations 112,833,910 -

 Interest Credits on Holdings 37,597 260,807

 Interest Charges on Allocations (36,120) (251,046) 

 Remuneration 22,889 122,145 

 IMF Annual Assessment (851) (641)

 Net Gain/(Loss) on Valuation of Holdings (716,193) 1,625,320 

Balance, end of period (1)

 $ 163,874,175 $ 51,732,943

(1) This amount excludes related interest receivable of $10.3 million and $7.3 million as of September 30, 2021 and 2020, respectively.

The table above reflects the actual dollar equivalent amount of SDRs received or transferred by the 

ESF. Amounts within the financial statements are computed on an accrual basis and will thus differ 

due to: 1) changes in SDR exchange rates between accrual date and transaction date, and 2) changes

in related interest receivable balances between beginning and end of year.

Other SDR Activities

The U.S. government receives remuneration in SDRs from the IMF on the U.S. claim on the IMF, 

represented by the U.S. Reserve Position, and from other lending to the IMF. The ESF is the only 

fund within Treasury permitted to transact in SDRs. Such SDRs received as remuneration become 

the resources of the ESF, as required by law, and the ESF pays the dollar equivalent to the U.S. 

Government’s TGA. The ESF's receipt of the SDRs and payment of the dollar equivalent to the 

TGA are not simultaneous. Typically, the payment is several weeks after the receipt of SDRs from 

the IMF. Therefore, the ESF must reimburse the TGA the interest it earned on the dollar equivalent 

of the SDRs held on behalf of the TGA during the period which elapsed between the receipt of the 

SDRs and the dollar payment to the TGA.

The ESF paid to the TGA $651 and $79 thousand in fiscal years 2021 and 2020, respectively, in 

interest due on the transferred dollars. The ESF did not transact to buy or sell SDRs to any 

participating members during fiscal years 2021 and 2020. 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

35

(continued)

NOTE 6-COVID-19: INVESTMENTS, NET 

Investments Overview

In March 2020, the Board, using its emergency-lending authority under Section 13(3) with approval 

from Treasury, authorized the FRBNY and the FRBB to establish liquidity lending facilities for the 

purpose of making loans and purchasing debt and other commercial paper of eligible entities to 

support key U.S. financial markets. Additionally, Congress passed the CARES Act, authorizing the 

Secretary to make certain loans, loan guarantees and other investments to provide liquidity to eligible 

businesses, states, and municipalities and appropriating funds to the ESF to carry out such 

authorities. The ESF utilized its core authority provided by Section 10 of the Gold Reserve Act, as 

amended, to support two of the Board’s liquidity lending facilities. 

In FY 2020, the CARES Act appropriated $500.0 billion to the ESF to primarily fund the credit 

subsidy costs associated with making loans, loan guarantees or investments through December 31, 

2020 in support of eligible businesses, states and municipalities that incurred losses as a result of 

COVID-19. The CARES Act authorized Treasury to make such loans, loan guarantees and other 

investments that did not, in the aggregate, exceed $500.0 billion. Of this amount, $46.0 billion was 

available to make direct loans and loan guarantees to passenger air carriers and certain related 

businesses, air cargo carriers, and businesses critical to maintaining national security (refer to Note 

7), and $454.0 billion (together with any unused amounts from the $46.0 billion) was available to 

make loans and loan guarantees to, and investments in, programs or facilities the Board established 

to provide liquidity to the financial system that supported lending to eligible businesses, states, or 

municipalities. Treasury executed its loans and investments through the ESF.

During FY 2020, the ESF disbursed an aggregate of $104.3 billion (comprised of $102.5 billion and 

$1.8 billion for investments and direct loans, respectively), which was financed with $19.3 billion 

of cash provided by the appropriation to fund the credit subsidy portion of the investments and direct 

loans, and $85.0 billion in borrowings from the Fiscal Service. As of September 30, 2020, $480.6

billion of the CARES Act appropriation remained and was reported in the Fund Balance with 

Treasury (refer to Note 2). 

In addition to the amounts disbursed during FY 2020, the ESF also had obligated but undisbursed 

amounts committed as of September 30, 2020, for future investment and direct loan disbursements 

totaling $106.0 billion (comprised of $92.5 billion and $13.5 billion, respectively). Accordingly, 

when factoring in the obligated but undisbursed amounts committed, ESF’s unobligated budgetary 

resources available as of September 30, 2020, were $468.1 billion ($480.6 billion remaining 

appropriation less $12.5 billion of obligated but undisbursed subsidy). 

The December 27, 2020 enactment of the CAA, among other things, eliminated the ESF’s ability to 

make new loans and investments under the CARES Act effective January 9, 2021, and prohibited 

the Federal Reserve from engaging in further lending or extensions of credit, after December 31, 

2020, through all but one facility the Federal Reserve established under Section 13(3) in which the 

ESF made an investment pursuant to the CARES Act (and after January 8, 2021, for that one facility). 

Accordingly, on December 27, 2020, the CAA rescinded $429.0 billion of the $500.0 billion 

appropriation provided to Treasury (through the ESF). In accordance with the CAA, an additional 

$49.8 billion was rescinded on January 9, 2021. As of September 30, 2021, $1.6 billion of the 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

36

(continued)

CARES Act appropriation remained and was reported in the Fund Balance with Treasury (refer to 

Note 2).

The tables below summarize the ESF’s key budgetary resources and the status of those resources by 

program for the fiscal years ended September 30, 2021 and 2020, enacted in response to the COVID19 pandemic:

 Fiscal Year Ended September 30, 2021

(in thousands)

Beginning 

Available 

Budgetary 

Resources

Rescissions and 

Other 

Adjustments(1)

Less: 

Obligations 

Incurred

Remaining 

Available 

Budgetary 

Resources

Section 13(3) Federal Reserve 

Programs - Liquidity Facilities $ 423,835,009 $ (423,835,009) $ - $ -

Direct Loans to Air Carriers and 

National Security Business 44,301,242 (42,692,474) (17,725) 1,591,043

Total $ 468,136,251 $ (466,527,483) $ (17,725) $ 1,591,043

(1)Rescissions and Other Adjustments primarily include a total of $478.8 billion of CARES Act appropriation authority that was rescinded pursuant to 

the CAA. Partially offsetting this amount was a de-obligation of $12.3 billion that wasto be used to fund the subsidy portion of obligated but undisbursed 

CARES Act investments and loans.

 Fiscal Year Ended September 30, 2020

(in thousands)

Appropriations 

and Other 

Authority(1)

Borrowing 

Authority and 

Other 

Adjustments(2)

Less: 

Obligations 

Incurred

Remaining 

Available 

Budgetary 

Resources

Section 13(3) Federal Reserve 

Programs - Liquidity Facilities $ 454,000,000 $ 164,835,009 $ (195,000,000) $ 423,835,009

Direct Loans to Air Carriers and 

National Security Business 46,000,000 13,656,242 (15,355,000) 44,301,242

Total $ 500,000,000 $ 178,491,251 $ (210,355,000) $ 468,136,251

(1)Appropriation and Other Authority includes appropriation authority provided by the CARES Act which, together with the ESF’s core authority under 

the Gold Reserve Act, was used to finance emergency relief program.

(2)Appropriation Authority (first column) was used to finance the subsidy costs associated with making the investments and direct loans in accordance 

with the provisions of FCRA. Borrowing Authority (second column) was used to finance the remainder of the disbursed amounts via borrowings from 

Fiscal Service. 

Section 13(3) Federal Reserve Programs

In FY 2020, the FRBNY and FRBB established emergency liquidity lending facilities to enhance 

the liquidity of the U.S. financial system as a result of the severe global health and economic crisis. 

The FRBNY and FRBB implemented certain of the facilities through SPVs governed by Limited 

Liability Company (LLC) agreements between Treasury and the applicable FRB. The FRBNY and 

FRBB established these SPVs for the purpose of making loans and purchasing debt and other 

commercial paper of eligible entities affected by COVID-19. The liquidity lending facilities 

established included the: (i) Corporate Credit Facilities LLC (CCF), (ii) Main Street Facilities LLC 

(MSF), (iii) Municipal Liquidity Facility LLC (MLF), (iv) Term Asset-Backed Securities II LLC 

(TALF), (v) Commercial Paper Funding Facility II LLC (CPFF), and (vi) Money Market Mutual 

Fund Liquidity Facility (MMLF).

The FRBNY and FRBB contributed $10.00 in cash to capitalize each SPV they established. 

Additionally, the FRBNY and FRBB made loans to the SPVs, on a recourse basis, to fund the SPVs’ 

purchase of assets from, or loans to, eligible U.S. issuers and businesses with certain assets as 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

37

(continued)

collateral. As the managing member of each SPV, FRBNY or FRBB, as applicable, has the 

exclusive right to manage the business of the SPV and has all powers and rights necessary to carry 

out the purposes and business of the SPV.

The ESF provided equity to each SPV in FY 2020 to protect the FRBNY and FRBB from potential 

losses from financing the facilities. The ESF provided this protection by committing and 

contributing capital in the form of cash to the SPVs in exchange for a preferred equity interest in the 

SPVs. To the extent the FRBNY and FRBB experience losses, ESF’s preferred equity accounts 

absorb such losses up to the maximum amounts per the terms of the LLC agreements. As a preferred 

equity member, the ESF has no voting, consent, or control rights over the SPV. The managing 

member and preferred equity member are the sole members of the SPVs.

Each SPV maintains the proceeds of the ESF’s equity investment within a preferred equity account. 

As mutually agreed to by the applicable FRB and Treasury, 85 percent of the preferred equity cash 

proceeds of each SPV are permitted to be invested in interest-bearing, special, non-marketable 

Treasury securities. The remaining 15 percent is retained in cash or cash-equivalents by the SPV for 

its cash requirements. Any interest and other proceeds from these investments are deposited into the 

preferred equity account.

Under the terms of the LLC agreements, membership interests would not receive periodic or other 

distributions during the life of the SPV (except for the interim distribution that occurred on December 

29, 2020 as further discussed below). Distribution of the SPV’s assets would be made only upon 

dissolution of the facility, after liabilities and other interests were paid. Upon dissolution, the ESF

will be entitled to an amount equal to the cash balance of the preferred equity account plus 90 percent 

of the cash balance in all the other accounts of the SPV. The applicable FRB is entitled to 10 percent 

of the cash balance in all the other accounts of the SPV. The final distribution amount received by 

the ESF will be used to repay all costs associated with the preferred equity investment in the SPV, 

including the initial subsidy amounts funded by appropriation and all amounts borrowed from Fiscal 

Service. In accordance with the CARES Act, any excess amount of the final distribution after 

repayment of the appropriations and debt will be deposited into the Federal Old-Age and Survivors 

Insurance Trust Fund established under Section 201(a) of the Social Security Act. 

During FY 2020, the ESF funded disbursementsto all but two of the liquidity lending facilities using, 

in part, the $454.0 billion of funds appropriated to the ESF under the CARES Act to provide the 

subsidy amounts necessary for such disbursements in accordance with the provisions of FCRA. The 

ESF funded the remainder of the disbursed amounts by borrowings from Fiscal Service. For two of 

the liquidity facilities, CPFF and MMLF, the ESF used its core funds, which were previously

invested in overnight, Nonmarketable U.S. Treasury Securities (refer to Note 3) and were available 

for use by the Secretary consistent with the relevant statutory requirements.

On December 29, 2020, consistent with the CAA, Treasury and the Federal Reserve amended the 

SPV LLC Agreements for each of the SPVs funded under the CARES Act. The amended 

agreements provided for the cancellation, on December 29, 2020, of the ESF’s undisbursed 

investment commitments totaling an aggregate of $92.5 billion, and an interim distribution to the 

ESF, between December 31, 2020 and January 8, 2021, totaling an aggregate of $62.2 billion, to 

return funds disbursed by the ESF in excess of the purchase price of the assets, loans, and/or loan 

participations, as the case may be, within each facility at such time. The aggregate of $62.2 billion 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

38

(continued)

of excess funds were returned to Treasury (through the ESF) on January 5, 2021, for the CCF, TALF, 

and MLF, and on January 8, 2021, for the MSF. The ESF used this cash received to repay 

outstanding debt to the Fiscal Service that was used to finance the non-subsidized portion of these 

investment transactions. Further, the ESF’s canceled commitments in the amount of $92.5 billion 

were de-obligated in FY 2021. The funds remaining in the SPVs funded under the CARES Act 

cannot be used for further lending, asset purchases, or extensions of credit. 

During FY 2021, the FRBNY and FRBB dissolved several of the liquidity facilities. The FRBB 

dissolved the MMLF in April 2021, and the FRBNY dissolved the CPFF and CCF in June and 

September 2021, respectively. None of the facilities are available for future disbursements as of 

September 30, 2021. See below for further discussion of these transactions.

 

(in thousands)

FY 2020 

Original 

Commitment

FY 2020 

Disbursements

Available for 

Future 

Disbursements 

9/30/2020

FY 2021 

Canceled 

Commitments

Available for 

Future 

Disbursement 

9/30/2021

Corporate Credit Facilities(1) $ 75,000,000 $ (37,500,000) $ 37,500,000 $ (37,500,000) $ -

Main Street Facilities(1) 75,000,000 (37,500,000) 37,500,000 (37,500,000) -

Municipal Liquidity 

Facility(1) 35,000,000 (17,500,000) 17,500,000 (17,500,000) -

Term Asset-Backed 

Securities 10,000,000 (10,000,000) - - -

Commercial Paper Funding 

Facility 10,000,000 (10,000,000) - - -

Money Market Mutual Fund 

Liquidity Facility

(2)

10,000,000 (1,500,000) 8,500,000 (8,500,000) -

Total 13(3) Facilities $ 215,000,000 $ (114,000,000) $ 101,000,000 $(101,000,00) $ -

(1) The undisbursed commitment amount for this facility as of September 30, 2020, was canceled on December 29, 2020 pursuant to the CAA.

(2) The undisbursed commitment amount as of September 30, 2020, was canceled pursuant to the April 12, 2021 dissolution of the MMLF facility.

(in thousands)

FY 2020 

Disbursements

Interim 

Distribution

Final 

Dissolution(1)

Remaining 

Outstanding 

Equity 

Contribution 

9/30/21(2)

Corporate Credit Facilities $ 37,500,000 $ (23,618,984) $ (13,881,016) $ -

Main Street Facilities 37,500,000 (20,927,945) - 16,572,055

Municipal Liquidity Facility 17,500,000 (11,223,776) - 6,276,224

Term Asset-Backed Securities 10,000,000 (6,450,927) - 3,549,073

Commercial Paper Funding Facility 10,000,000 - (10,000,000) -

Money Market Mutual Fund Liquidity 

Facility 1,500,000 - (1,500,000) -

Total 13(3) Facilities $ 114,000,000 $ (62,221,632) $ (25,381,016) $ 26,397,352

(1) These amounts exclude residual amounts received in connection with the dissolution of these facilities.

(2) These amounts exclude cumulative 9/30/21 fair valuations associated with these assets. See table below for such fair valuations.

The following is a description of the liquidity lending facilities, with the exception of the MMLF 

discussed in Note 8. 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

39

(continued)

Corporate Credit Facilities LLC

On April 13, 2020, the FRBNY established the CCF as the SPV to facilitate both the Primary Market 

Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) 

programs in support of providing the flow of credit to employers through corporate bond and loan 

issuances. 

The FRBNY loaned to the SPV, on a recourse basis. The PMCCF was intended to purchase qualified 

bonds from eligible issuers, and to purchase portions of syndicated loans or bonds at issuance, giving 

issuers access to credit so that they are better able to maintain business operations and capacity during 

the period of disruption COVID-19 caused. The SMCCF supported the flow of credit to employers 

by providing liquidity to the market for outstanding corporate bonds.

Treasury had initially committed to contribute, through the ESF, up to a combined total of $75.0 

billion in capital to the single common SPV supporting both programs. On May 11, 2020, the ESF 

acquired an equity interest in the SPV by transferring a combination of CARES Act appropriated 

and borrowed funds for an aggregate total of $37.5 billion to the CCF SPV to cover potential losses 

FRBNY incurred in connection with this program. On December 29, 2020, the ESF’s undisbursed 

investment commitment of $37.5 billion was canceled pursuant to the amended SPV LLC

agreement, and excess funds of $23.6 billion were returned to the ESF on January 5, 2021. The

ESF used the proceeds to repay the outstanding debt to the Fiscal Service. The SPV ceased

purchasing eligible notes on December 31, 2020. The FRBNY sold the credit holdings in the SPV

and, on September 24, 2021, returned to the ESF its remaining outstanding equity contribution of

$13.9 billion and $17 million of interest earnings on special nonmarketable Treasury securities

invested within the SPV. Upon final dissolution of the CCF SPV on December 14, 2021, the ESF

had received additional amounts totaling $463 million equal to 90 percent of the cash balance in

all the other accounts of the SPV. This final dissolution amount was estimated at $462 million as

of September 30, 2021, which is reported within the “Other Receivable” line on the Balance

Sheets and “Gains on Investments and Credit Program Receivables” line on the Statements of

Net Cost.

Main Street Facilities LLC

On May 18, 2020, the FRBB established the MSF SPV to support lending to small and mediumsized businesses that were in sound financial condition before the onset of the COVID-19

pandemic and have good post-pandemic prospects. Through loans from the FRBB, the SPV

purchased 95 percent participations in loans originated by eligible lenders, while the lender

retained five percent. Loans issued under the MSF program have a five-year maturity, principal

payments are deferred for two years, and interest payments are deferred for one year. 

Treasury had initially committed to contribute, through the ESF, up to $75.0 billion in capital to

the single common SPV in connection with the MSF. On June 1, 2020, the ESF acquired an equity

interest in the SPV by transferring a combination of CARES Act appropriated and borrowed funds

for an aggregate total of $37.5 billion to the MSF to cover potential losses incurred by the FRBB

in connection with this program. On December 29, 2020, the ESF’s undisbursed investment

commitment of $37.5 billion was canceled pursuant to the amended SPV LLC agreement, and

excess funds of $20.9 billion were returned to the ESF on January 8, 2021. The SPV ceased
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

40

(continued)

purchasing loan participations on January 8, 2021.

Significant unobservable inputs used to estimate the value of ESF’s preferred equity investments

in the MSF are:

• Estimated credit ratings for MSF instruments

• Estimated default rates, recovery rates, market discount rates, prepayment rates, and

floating interest rates

• Estimated SPV fees

Municipal Liquidity Facility LLC

On May 1, 2020, the FRBNY established the MLF SPV to help state and local governments

manage cash flow pressures while continuing to serve households and businesses in their

communities. The FRBNY loaned to the MLF, on a recourse basis, to allow the facility to purchase

short-term notes directly from eligible U.S. states (including the District of Columbia), counties

and cities. 

Treasury had initially committed to contribute, through the ESF, up to $35.0 billion in capital to

the MLF SPV. On May 26, 2020, the ESF acquired an equity interest in the SPV by transferring

a combination of CARES Act appropriated and borrowed funds for an aggregate total of $17.5

billion to the MLF LLC to cover potential losses incurred by FRBNY in connection with this

program. On December 29, 2020, the ESF’s undisbursed investment commitment of $17.5 billion

was canceled pursuant to the amended SPV LLC agreement, and excess funds of $11.2 billion

were returned to the ESF on January 5, 2021. The SPV ceased purchasing eligible notes on

December 31, 2020.

Term Asset-Backed Securities Loan Facility LLC

FRBNY established the TALF SPV on March 23, 2020, to support the flow of credit to consumers

and businesses for purposes of stabilizing the U.S. financial system. The TALF facilitated the

issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans

guaranteed by the Small Business Administration, commercial mortgages, and certain other assets. 

On June 16, 2020, the ESF acquired an equity interest in the SPV by committing to and transferring

a combination of CARES Act appropriated and borrowed funds for an aggregate total of $10.0

billion to the TALF LLC to cover potential losses incurred by the FRBNY in connection with this

program. On January 5, 2021, excess funds of $6.5 billion were returned to the ESF pursuant to

the amended SPV LLC agreement. No new credit extensions were made after December 31, 2020.

Commercial Paper Funding Facility LLC

On March 30, 2020, the FRBNY established the CPFF SPV to provide liquidity to short-term

funding markets by purchasing three-month unsecured and asset-backed commercial paper

directly from eligible issuers. To cover potential losses incurred by FRBNY in connection with

this program, on April 13, 2020, the ESF made a capital contribution in the CPFF SPV by

transferring $10.0 billion of its core funds to the SPV in exchange for a preferred equity interest

in the SPV. The SPV ceased purchasing commercial paper on March 31, 2021. Commencing June
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

41

(continued)

29, 2021 and concluding on July 7, 2021, the FRBNY made final distributions to the ESF of the

$10.0 billion capital contribution, $5 million of interest earnings on special nonmarketable

Treasury securities invested within the SPV, and $44 million of residual earnings equivalent to 90

percent of the cash balance in all the other accounts of the SPV. These cash proceeds were

reinvested in overnight, Nonmarketable U.S. Treasury Securities. The CPFF SPV was terminated

on July 8, 2021.

The following is financial information about the assets held in each of the remaining SPVs as of

September 30, 2021 and 2020, which was obtained from the FRB’s Combined Quarterly Financial

Reports (unaudited):

As of September 30, 2021

(in thousands)

Total Assets Excluding 

ESF’s Equity 

Contribution

ESF’s Equity 

Contribution(1)

Total Assets Including 

ESF’s Equity 

Contribution

Main Street Facilities $ 13,865,573 $ 16,585,741 $ 30,451,314

Municipal Liquidity Facility 4,493,039 6,283,952 10,776,991

Term Asset-Backed Securities 1,490,650 3,552,944 5,043,594

Total $ 19,849,262 $ 26,422,637 $ 46,271,899 

(1) Amounts include interest earnings on special, non-marketable Treasury securities.

As of September 30, 2020

(in thousands)

Total Assets Excluding 

ESF’s Equity

Contribution

ESF’s Equity 

Contribution(1)

Total Assets Including 

ESF’s Equity 

Contribution

Corporate Credit Facilities $ 13,100,000 $ 37,500,000 $ 50,600,000 

Main Street Facilities 2,100,000 37,500,000 39,600,000

Municipal Liquidity Facility 1,700,000 17,500,000 19,200,000

Term Asset-Backed Securities 3,200,000 10,000,000 13,200,000

Commercial Paper Funding Facility 59,000 10,000,000 10,059,000

Total SPV Assets $ 20,159,000 $ 112,500,000 $ 132,659,000 

(1) Amounts include interest earnings on special, non-marketable Treasury securities.

The following section entitled “COVID-19: Investments, Net” is a discussion of the ESF’s

accounting for the credit support provided to the FRBs’ liquidity lending facilities, with the

exception of the MMLF facility, which is discussed in Note 8.

COVID-19: Investments, Net

As of September 30, 2021 and 2020, the preferred equity investments in the SPVs were valued as

follows:
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

42

(continued)

As of September 30, 2021

(in thousands) Gross Investment

Cumulative Valuation

Gain/(Loss) Fair Value

Main Street Facilities(1) $ 16,572,055 $ (998,749) $ 15,573,306

Municipal Liquidity Facility(1) 6,276,224 176,823 6,453,047

Term Asset-Backed Securities(1) 3,549,073 3,022 3,552,095

Total COVID-19 Investments in SPVs $ 26,397,352 $ (818,904) $ 25,578,448

(1) In January 2021, ESF’s investment in excess of amounts equivalent to the purchase price of the assets held within these SPVs was returned to the 

ESF.

As of September 30, 2020

(in thousands) Gross Investment

Cumulative Valuation 

Gain/(Loss) Fair Value

Corporate Credit Facilities $ 37,500,000 $ (96,191) $ 37,403,809

Main Street Facilities 37,500,000 (4,253,643) 33,246,357

Municipal Liquidity Facility 17,500,000 (176,762) 17,323,238

Term Asset-Backed Securities 10,000,000 (73,913) 9,926,087

Commercial Paper Funding Facility 10,000,000 46,512 10,046,512

Total COVID-19 Investments in SPVs(1) $ 112,500,000 $ (4,553,997) $ 107,946,003

(1) The $1.5 billion funded credit support to the MMLF is included in Other Assets rather than as an investment (refer to Note 8 for further details).

Budgetary vs. Proprietary Accounting Treatment of SPVs

The CARES Act stipulated that the SPV investment transactions, to the extent they involved the

use of the CARES Act appropriation, be funded in accordance with the provisions of FCRA. The

CARES Act provided up to $454.0 billion of the $500.0 billion in appropriation to finance the

subsidy portion of these transactions, and to borrow from the Fiscal Service for the remainder of

the financing. During FY 2020, the ESF disbursed an aggregate total of $102.5 billion to acquire

equity interests in the SPVs, of which $19.1 billion represented the subsidy portion funded by the

CARES Act appropriation, and the remaining $83.4 billion was funded by Fiscal Service

borrowings. The ESF reported the $500.0 billion of subsidy financing made available pursuant to

the CARES Act less the $19.1 billion, or $480.9 billion, within the “Fund Balance with Treasury”

line of the Balance Sheets as of September 30, 2020. In FY 2021, the CAA rescinded $478.8

billion of the $480.9 billion September 30, 2020 appropriation balance. Of the remaining $2.1

billion, $500 million was used to fund subsidy costs related to direct loan disbursements and

administrative expenses incurred, leaving $1.6 billion of this appropriation within the “Fund

Balance with Treasury” line as of September 30, 2021. The ESF reported these CAA rescissions

within the line item “Appropriations Rescinded” on the Statement of Changes in Net Position for

the fiscal year ending September 30, 2021. Additionally, in FY 2021, Treasury and the Federal

Reserve amended four of the SPV agreements governing the SPVs executing the emergency credit

facilities, which resulted in a return of capital totaling an aggregate of $62.2 billion. The ESF used

these proceeds to repay outstanding borrowings used to finance the non-subsidized portion of these

investments. For budgetary accounting purposes, the ESF accounted for the initial investment

financing in FY 2020 and subsequent activity in FY 2021 related to these investments pursuant to

FCRA guidelines in accordance with Section 185 of Office of Management and Budget (OMB)

Circular A-11, Preparation, Submission, and Execution of the Budget.

For proprietary accounting purposes, the ESF accounted for all SPV investments as equity
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

43

(continued)

investments at fair value, rather than as direct loans, as these instruments do not meet the criteria

of SFFAS No. 2. Accordingly, the ESF records changes in the fair value of these investments as

realized or unrealized fair value gains or losses within either the “Gains on Investments and Credit

Program Receivables” or the “Losses on Investments and Credit Program Receivables” line item

of the Statements of Net Cost. The budgetary subsidy cost allowance is based on cash flows

discounted using a Treasury rate to determine the subsidy cost and the proprietary fair value

adjustment is based on market interest rates to discount projected cash flows. For the fiscal years

ended September 30, 2021 and 2020, the ESF recorded an unrealized fair value net loss of $819

million and $4.6 billion related to these investments, respectively.

Fair Value Estimation Factors

In determining the fair value of the SPV equity investments, the ESF uses available market pricing

data, market pricing of floating interest-rate swaps, expected loss rates, and contractual instrument

terms to estimate scenario-specific, expected cash flows for the SPVs. For market pricing data,

the ESF specifically uses: (i) active market prices for the TALF where public securities serve as

collateral for loans made by the TALF program, (ii) Bloomberg estimated prices for securities

owned by the MLF program, in which Treasury has made an equity investment, that do not have

active market prices but have estimated prices in Bloomberg, or (iii) market prices for baskets of

comparable publicly traded bonds for the MSF program, based on relevant bond attributes, such

as instrument credit rating, time to maturity, issuer industry, coupon rate, and call provisions. The

ESF uses contractual instrument terms, active market prices, expected loss rates and, where

applicable, market pricing of floating interest-rate swaps to estimate scenario-specific, expected

cash flows, which are discounted using market-based discount rates. 

In deriving the fair value of the SPV investments, the ESF relied upon market observed prices for

SPV purchased assets and collateral, market prices for comparable assets, asset valuations

performed by third parties, historical asset data, discussions with subject matter experts within

Treasury, and other information pertinent to the valuations. Because Treasury’s equity

investments into TALF, MSF, and MLF are not publicly traded, there is no comparable trading

information available. The fair valuations rely on Level 3 inputs that reflect assumptions about

the expectations that market participants would use in pricing Treasury’s equity investments into

these SPVs.

Transfer of Proceeds Upon Dissolution of SPVs 

For those SPVs that were funded through a combination of CARES Act appropriation and Fiscal

Service borrowings in accordance with FCRA guidelines, all proceeds that the ESF realizes from

these investments upon the dissolution of the SPVs are transferred to the ESF to repay all

borrowings and other funding costs incurred from these investments. In accordance with the

CARES Act, the ESF must transfer any remaining excess residual proceeds to the Federal OldAge and Survivors Insurance Trust Fund. To the extent that the fair value of the SPV equity

investment assets also incorporate anticipated realization of excess residual proceeds, the ESF

records a corresponding liability due to the Federal Old-Age and Survivors Insurance Trust Fund. 

The ESF recorded a liability of $222 million as of September 30, 2021 within the “IntraGovernmental: Other Liabilities” line of the Balance Sheets; there was no liability recorded as of

September 30, 2020.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

44

(continued)

Entity vs. Non-Entity Exchange Transactions. 

The SPV preferred equity investments are treated as exchange transactions in that the ESF received

a preferred equity interest in the SPVs in exchange for its capital funding of the liquidity facilities. 

All SPV investment assets funded through a combination of CARES Act appropriation and Fiscal

Service borrowings, along with any related income or loss associated with these assets, are treated

as entity transactions, with the exception of that portion of the assets and related income or loss

representing the excess residual proceeds that will be remitted to the Federal Old-Age and

Survivors Insurance Trust Fund, which are treated as non-entity transactions. The SPV equity

investment and MMLF credit support that were funded using the ESF’s core funds, and any related

income or loss associated with these assets, are treated as entity transactions.

NOTE 7– COVID-19: CREDIT PROGRAM RECEIVABLES, NET

The CARES Act authorized Treasury, through the ESF, to make direct loans and loan guarantees

to eligible passenger and cargo air carriers and national security businesses to provide them

liquidity for losses incurred as a result of the COVID-19. Treasury chose to make only direct loans

under this authorization. Of the $500.0 billion appropriation provided under the CARES Act, up

to $46.0 billion was authorized to be used to fund the subsidy costs associated with making these

loans. The CARES Act stipulated that the direct loans were to be made in accordance with the

provisions of FCRA; accordingly, the ESF funded the direct loans using a combination of the $46.0

billion in authorized appropriations and borrowings from Fiscal Service. The ESF finalized loan

agreements for up to $7.0 billion and $15.4 billion during fiscal years 2021 and 2020, respectively,

for which the ESF disbursed an aggregate total of $858 million and $1.8 billion during fiscal years

2021 and 2020, respectively. As of September 30, 2021, there were no remaining loan

commitments for which future borrowings could be made under the CARES Act.

The CARES Act specified that the Secretary determines the terms and conditions of the loans and

stated that the duration of the loans will be no longer than five years. It also mandated that these

loans “shall be at a rate determined based on the risk and the current average yield on outstanding

marketable obligations of the United States of comparable maturity.” As “financial protection of

the Government,” the CARES Act also mandated that the ESF obtains certain financial instruments

including, but not limited to, common stock in the eligible business for the benefit of taxpayers.

The following is a discussion of the ESF’s accounting related to the direct loans.

The ESF presents the direct loans as credit program receivables on the Balance Sheets. As of

September 30, 2021, the net credit program receivables of the passenger airlines and other related

businesses (which includes national security businesses, air cargo carriers, ticket agents, and

maintenance and repair firms) programs of $594 million and $717 million, respectively, included

a negative subsidy allowance of $213 million and a positive subsidy allowance of $56 million,

respectively. As of September 30, 2020, the net credit program receivables of the passenger airlines

and other related businesses of $1.4 billion and $163 million, included a positive subsidy

allowance of $159 million and $85 million, respectively. The negative or positive subsidies at the

end of 2021 and 2020 reflect the ESF’s projection as of those dates that these programs would

result in net earnings or net cost to the ESF, respectively, after accounting for principal loan

repayments, interest, and fees. Included in these receivables are the projected cash flows associated

with the common stock warrants, common stock shares, and senior debt instruments received in
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

45

(continued)

connection with making these direct loans.

The ESF performed a financial statement re-estimate of these credit programs costs. The reestimates performed as of September 30, 2021 resulted in a downward re-estimate or decrease of

$415 million and $268 million in the cost of the passenger airline programs and other related

businesses programs, respectively. The FY 2021 re-estimates recorded by the ESF included the

expected Federal Old-Age and Survivors Insurance Trust Fund liabilities for passenger airlines

and other related businesses. These re-estimate results stemmed from lower expected losses for

the outstanding investments and collections received during FY 2021, which included several large

prepayments. The re-estimates performed as of September 30, 2020, resulted in an upward reestimate, or increase in the cost of the passenger airlines program, of $12 million, and resulted in

a downward re-estimate, or decrease in the cost of the single other related business program cost,

of $29 million. These re-estimate results stemmed primarily from the September 30, 2020, market

prices which implied higher or lower loss rates than those the ESF initially estimated in the budget

formulation estimate for these programs.

The net credit program receivables, including loan principal repayments, interest, fees, and 

proceeds from common stock sales, are treated as entity exchange transactions since all such future 

proceeds realized by the ESF from the net credit program receivables will be used to repay all of 

its borrowing and other funding costs incurred from these direct loans. In accordance with the 

CARES Act, the ESF must transfer any remaining excess residual proceeds to the Federal OldAge and Survivors Insurance Trust Fund. Accordingly, to the extent that the net credit program 

receivables also incorporate anticipated realization of excess residual proceeds, the ESF records a 

corresponding liability due to the Federal Old-Age and Survivors Insurance Trust Fund. Hence, 

the ESF’s net credit program receivables, including loan principal repayments, interest, fees, and 

proceeds from common stock sales are treated as entity transactions, with the exception of any 

excess residual amounts owed to this trust fund, which are treated as non-entity transactions. As 

of September 30, 2021, the ESF recorded a liability of $261 million due to the Federal Old-Age 

and Survivors Insurance Trust Fund within the “Intra-Governmental: Other Liabilities” line on

the Balance Sheets. As of September 30, 2020, the ESF did not record a liability as there was a 

combined net positive subsidy cost of $244 million associated with the passenger airline and 

national security business loans, indicating that the ESF had not yet recovered its costs. 

NOTE 8–COVID-19:OTHERASSETS

Money Market Mutual Fund Liquidity Facility

The FRBB launched the MMLF on March 23, 2020 to make loans available to eligible financial

institutions, on a non-recourse basis, secured by high-quality assets purchased by the financial

institution from money mutual funds. The ESF committed to provide $10.0 billion of creditsupport

to the MMLF. On May 20, 2020, the ESF transferred an initial $1.5 billion of the $10.0 billion of

committed funds from its core funds. The FRBB agreed to pay the ESF a “facility fee” for the use

of the MMLF credit support based on the amount of interest owed by the borrower on each MMLF

loan. The FRBB did not make new credit extensions after March 31, 2021, and FRBB terminated

the MMLF. On April 12, 2021, the FRBB returned to the ESF its $1.5 billion of contributed capital,

along with $134 million of accrued facility fee residual earnings. The undisbursed credit support

commitment of $8.5 billion was also canceled on April 12, 2021.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

46

(continued)

The ESF’s participation in the MMLF program involved transferring in FY 2020, $1.5 billion

(which was previously invested by the ESF in overnight federal investments) to a separate deposit

account maintained by the FRBNY in the name of the FRBB (MMLF Account) for the purpose of

providing credit support of the MMLF program. Based on the nature of the restrictions associated

with the MMLF Account, the ESF reclassified the $1.5 billion from an overnight investment

account to a restricted cash account as reported in the “COVID-19: Other” line of the Balance

Sheets as of September 30, 2020. In connection with the April 2021 termination of this program

in which the ESF received a return of $1.5 billion that the ESF had made available as creditsupport,

the ESF also received $134 million of accrued facility fee residual earnings. The Statements of

Net Cost reflect accrued facility fee earnings of $15 million and $119 million for the fiscal years

ended September 30, 2021 and 2020, respectively.

NOTE 9 - OTHER INVESTMENTS, NET

Other Investments, Net include foreign currency holdings that the ESF typically invests in interestbearing securities issued or held through foreign governments or monetary authorities. Of the total

$5.2 billion fair value of foreign investments (excluding related interest receivable) held at

September 30, 2021 $0.8 billion will mature within one year, $2.4 billion will mature after one

year but before five years, and $2.0 billion will mature after five years but before ten years. The

fair value of the available-for-sale and trading investment securities is determined using Level 1

inputs.

As of September 30, 2021, and 2020, Other Investments, Net consisted of the following:

(in thousands)

Cost/ 

Acquisition 

Value

Unamortized 

(Premium)/ 

Discount

Interest 

Receivable 9/30/2021 Net 

Investment

Unrealized 

Gain/(Loss)

9/30/2021 Fair 

Value

Investment Type:

Foreign 

Investments:

Euro Bonds & Notes $ 4,713,632 $ 288,916 $ 45,174 $ 5,047,722 $ 211,220 $ 5,258,942

Japanese 

Government Bonds 6,531 18 - 6,549 (257) 6,292

Total $4,720,163 $ 288,934 $ 45,174 $5,054,271 $ 210,963 $ 5,265,234

Investment 

Classification:

Available for Sale

 Debt securities $ 717,508 $ 25,900 $ 10,524 $ 753,932 $ 48,421 $ 802,353

Trading

 Debt securities 4,002,655 263,034 34,650 4,300,339 162,542 4,462,881

Total Non-Federal $ 4,720,163 $ 288,934 $ 45,174 $ 5,054,271 $ 210,963 $ 5,265,234
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

47

(continued)

(in thousands)

Cost/ 

Acquisition 

Value

Unamortized 

(Premium)/ 

Discount

Interest 

Receivable 9/30/2020 Net 

Investment

Unrealized 

Gain/(Loss)

9/30/2020 Fair 

Value

Investment Type:

Foreign 

Investments:

Euro Bonds & Notes $ 4,503,460 $ 289,785 $ 53,251 $ 4,846,496 $ 437,442 $ 5,283,938

Japanese 

Government Bonds 333,736 121 105 333,962 41,425 375,387

French Time 

Deposits 142,201 - (88) 142,113 (2) 142,111

Total $ 4,979,397 $ 289,906 $ 53,268 $ 5,322,571 $ 478,865 $ 5,801,436

Investment 

Classification:

Available for Sale

 Debt securities $ 1,306,561 $ 46,528 $ 15,266 $ 1,368,355 $ 127,789 $ 1,496,144

Trading

 Debt securities 3,672,836 243,378 38,002 3,954,216 351,076 4,305,292

Total Non-Federal $ 4,979,397 $ 289,906 $ 53,268 $ 5,322,571 $ 478,865 $ 5,801,436 

The following table provides a reconciliation of ESF’s investment activity for the fiscal year ended 

September 30, 2021:

For the Year Ended

(in thousands) September 30, 2021

Balance, beginning of period $ 5,801,436

 Valuation Adjustments (267,902)

 Gain/Loss on Sales/ Dispositions

Acquisition of Investments

(245,077)

9,185,047

 Sale/Repayment of Investments (9,199,200)

 Change in Interest Income/Other (9,070)

Balance, end of period $ 5,265,234

NOTE 10 – DUE TO THE GENERAL FUND

The General Fund consists of assets and liabilities used to finance the daily and long-term operations 

of the U.S government, as a whole. It also includes accounts used in the management of the Budget 

of the U.S. Government. 

The ESF’s Due to the General Fund liability at September 30, 2021 and 2020 of $3.3 billion and 

$12.8 billion, respectively, represents the amount of accrued downward subsidy re-estimates to be 

returned to the General Fund. These re-estimates reflect changes in the valuation of assets budgeted 

under FCRA and reported as COVID-19: Investments (refer to Note 6) and COVID-19: Credit 

Program Receivables (refer to Note 7) on the Balance Sheets. (See table below.) The change in the 

net cost of the investments and receivables is reported within “Gains on Investments and Credit 

Program Receivables” or “Losses on Investments and Credit Program Receivables” on the 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

48

(continued)

Statements of Net Cost.

(in millions) 2021 2020

Credit Reform Downward Subsidy Re-estimates for COVID-19 Investments (2,859,532) (12,805,622) 

Credit Reform Downward Subsidy Re-estimates for Credit Programs Receivable (391,833) (29,239)

Total $ (3,251,365) $ (12,834,861)

NOTE 11 - DEBT 

During FY 2021, the ESF disbursed $858 million for direct loans under CARES Act authority which 

the ESF financed with $642 million of Fiscal Service borrowings and the remainder with the CARES 

Act appropriated funding. During FY 2020, the ESF disbursed $102.5 billion and $1.8 billion for 

investments and direct loans, respectively, under CARES Act authority which the ESF financed, in 

part, with $87.1 billion of Fiscal Service borrowings and the remainder with the CARES Act 

appropriated funding. This principal borrowing amount also includes $14.0 billion needed to finance 

the actual amount of the downward subsidy re-estimates, of which $12.8 billion was accrued based 

on estimates at the end of FY 2020 (refer to Note 10). ESF also borrowed $290 million and $945

million during fiscal years 2021 and 2020, respectively, to finance the scheduled payment of interest 

due to the Fiscal Service on outstanding principal borrowings.

The maturity dates for the debt payable to the Fiscal Service range from September 30, 2024 to 

September 30, 2026. Effective interest rates range from 0.80 percent to 1.71 percent. In January 

2021, the FRB returned an aggregate of $62.2 billion of excess funds to Treasury (through the ESF) 

from four SPV credit facilities(refer to Note 6). The ESF used the cash received to repay outstanding 

debt to the Fiscal Service initially incurred under the CARES Act authority. In September 2021, the 

FRB returned an additional $13.9 billion of the remaining equity contributions for one of these SPV 

credit facilities, of which $13.6 billion was used to repay its remaining outstanding debt. All debt

and related interest costs are intra-governmental and covered by budgetary resources. See additional 

details on borrowing authority in Note 14.

Interest expense on the outstanding debt is accrued and reported within the “Economic Recovery 

Program - Interest Expense on Debt” line on the Statements of Net Cost and paid annually on 

September 30. For the fiscal years ended September 30, 2021 and 2020, the ESF recorded interest 

expense totaling $607 million and $3.1 billion, respectively, related to this debt. The accrued interest 

expense was paid in full on September 30, 2021 and 2020.

The following table presents a summary of debt payable to the Fiscal Service as of September 30, 

2021 and 2020, as issued in connection with each of the liquidity lending facilities and loan 

programs:
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

49

(continued)

(in thousands)

FY 2020 Ending 

Balance (1)

FY 2021 Net 

Borrowing/(Repayment)(2)

FY 2021 Ending 

Balance

SPV Investment-Related Borrowing:

 Corporate Credit Facilities $ 36,906,000 $ (36,906,000) $ - 

 Main Street Facilities 20,938,545 (7,396,726) 13,541,819

 Municipal Liquidity Facility 17,723,079 (11,602,739) 6,120,340

 Term Asset-Backed Securities 9,972,297 (6,504,573) 3,467,724

Direct Loans-Related Borrowing:

 Passenger Air Carriers 1,428,716 (1,025,621) 403,095

 National Security Businesses and 

Cargo Air Carriers 133,759 330,961 464,720

Total Intra-Governmental Debt $ 87,102,396 $ (63,104,698) $ 23,997,698 

(1) The FY 2020 ending balance represents net borrowings made in FY 2020. Downward subsidy re-estimates accrued for in FY 2020 were funded 

in FY 2021. (2)Inclusive of $14.0 billion in borrowing needed to finance the actual amount of the downward subsidy re-estimates.

NOTE 12-COMMITMENTSAND CONTINGENCIES

Foreign Currency Denominated Agreements

Foreign currency denominated agreements that exist between Treasury and foreign entities or 

governments provide for drawings of dollars by those entities or governments and drawings of 

foreign currencies by Treasury. Treasury enters into these agreements through the ESF. Under 

these agreements, the ESF receives repayment of an agreed-upon amount in dollars regardless of 

currency fluctuations. With the exception of the Mexico agreement noted below, there were no 

foreign currency denominated exchange stabilization agreements as of September 30, 2021 and 

2020. 

Exchange Stabilization Agreement

The North American Framework Agreement (NAFA), which was signed in 1994 and is renewed

annually, is implemented by Treasury through the Exchange Stabilization Agreement (ESA) with 

Mexico. Treasury, through the ESF, offers Mexico a swap line with drawings contingent on certain 

conditions being met. Effective November 30, 2018, an amended and restated ESA increased the 

potential size of the swap line from $3.0 billion to $9.0 billion. The amounts and terms (including 

the assured source of repayment) of any swap arrangement under the NAFA and/or the ESA will 

have to be negotiated and agreed to before any actual drawing can occur. The ESA and NAFA were 

renewed through December 15, 2022 and December 12, 2022, respectively. There were no 

drawings outstanding on the ESF swap line as of September 30, 2021, and 2020.

NOTE 13–FUNDS FROM DEDICATED COLLECTIONS

Pursuant to Section 10 of the Gold Reserve Act of 1934, as amended, the Secretary, with the 

approval of the President, through the ESF, may deal in gold, foreign exchange, and other 

instruments of credit and securities the Secretary considers necessary, consistent with U.S. 

obligations in the IMF on orderly exchange arrangements and a stable system of exchange rates. 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

50

(continued)

The ESF core exchange stabilization program (Treasury Account Symbol 020X4444) accounts for 

and reports its holdings to the Fiscal Service on the Standard Form 224, “Statement of 

Transactions,” and provides other reports to Congress. Interest on SDRs in the IMF, investments 

in Treasury securities, and investments in foreign currency assets are the ESF’s primary sources of 

revenue. The ESF’s earnings and realized gains, or losses, on SDRs and foreign currency assets 

represent resources, or uses, to the U.S. government. In FY 2020, the ESF used $11.5 billion of its 

existing balance in Treasury securities to support the COVID-19 programs by investing $10.0 

billion in the CPFF SPV and $1.5 billion in the MMLF (refer to Notes 6 and 8, respectively). In 

FY 2021, the Board returned these funds to the ESF, including related earnings residuals 

The tables below reflect condensed total assets, total liabilities, net cost of operations and net position 

of the core fund established to support the ESF’s core exchange stabilization program activities:

BALANCE SHEETS

As of September 30, 

(in thousands) 2021 2020

ASSETS

Nonmarketable U.S. Treasury Securities $ 22,836,891 $ 11,169,942

Foreign Currency and Other Monetary Assets 179,553,649 67,607,243

COVID-19 Investments and Other - 11,665,211

Other Investments, Net 5,265,234 5,801,436

Total Assets $ 207,655,774 $ 96,243,832

LIABILITIES AND NET POSITION

LIABILITIES

Special Drawing Right Allocations and Related Interest Payable $ 161,835,969 $ 49,716,537

Special Drawing Right Certificates Issued to Federal Reserve Banks 5,200,000 5,200,000

Total Liabilities 167,035,969 54,916,537

NET POSITION

Total Unexpended Appropriations 200,000 200,000

Total Cumulative Results of Operations 40,419,805 41,127,295

Total Net Position 40,619,805 41,327,295

Total Liabilities and Net Position $ 207,655,774 $ 96,243,832
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

51

(continued)

STATEMENTS OF NET COST

Fiscal Year Ended September 30,

(in thousands) 2021 2020

Gross Cost of Operations $ 1,446,027 $ 1,747,144

Earned Revenue (738,537) (3,173,330)

Net Cost of (Net Income from) Operations $ 707,490 $ (1,426,186)

STATEMENTS OF CHANGES IN NET POSITION

Fiscal Year Ended September 30,

(in thousands) 2021 2020

UNEXPENDED APPROPRIATIONS $ 200,000 $ 200,000

CUMULATIVE RESULTS OF OPERATIONS

Beginning Balance 41,127,295 39,701,109

(Net Cost) Net Income of Operations (707,490) 1,426,186

Total Cumulative Result of Operations 40,419,805 41,127,295

NET POSITION $ 40,619,805 $ 41,327,295

NOTE 14 - STATEMENT OF BUDGETARY RESOURCES

The Statement of Budgetary Resources (SBR) presents information about total budgetary resources 

available to the ESF and the status of those resources. 

Net Adjustments to Unobligated Balance, Brought Forward, October 1

Net adjustments to unobligated balance, brought forward, October 1 as of September 30, 2021 and 

2020 consisted of the following: 

As of 

(in thousands) September 30, 2021 September 30, 2020

Unobligated Balance, Brought Forward From Prior Year $ 489,238,112 $ 39,773,406

Adjustments to Budgetary Resources Made During Current Year

 Downward Adjustments of Prior Year Undelivered Orders 126,369,654 -

 Borrowing Authority Withdrawn (93,290,516) -

 General Allocation of SDRs 112,833,910 -

 Downward Adjustments of Prior Year Delivered Orders 2,019,612 396,320

 Other Adjustments (1,406,400) 2,684,642

Unobligated Balance From Prior Year Budgetary Authority, Net

(Discretionary and Mandatory) $ 635,764,372 $ 42,854,368

The increase in Unobligated Balance, Brought Forward From Prior Year is primarily the result of the 

carryforward into FY 2021 of the unobligated portion of the $500.0 billion CARES Act appropriation 

received in FY 2020. The increase in Downward Adjustments of Prior Year Undelivered Orders is 
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

52

(continued)

driven by undisbursed SPV investment and direct loan commitments which were de-obligated 

pursuant to the CAA in December 2020 (refer to Notes 6 and 7), as well as direct loan repayments and 

commitment expirations in FY 2021. The decrease in Borrowing Authority Withdrawn reflects the 

reduction in resources that are no longer needed for the SPV investments and direct loan commitments 

which were de-obligated pursuant to the CAA (refer to Notes 6 and 7). The increase in General 

Allocation of SDRs reflects a general allocation of SDRs to the U.S. government by the IMF valued 

at $112.8 billion, increasing the ESF’s balance in SDR Holdings, and a corresponding increase in SDR 

Allocations (refer to Note 5). 

Undelivered Orders 

Undelivered orders represent goods and services ordered and obligated which have not been received. 

Thisincludes any orders for which the ESF has paid in advance, but for which delivery or performance 

has not yet occurred. Undelivered orders totaling $13 million as of September 30, 2021 were all 

unpaid, of which $2 million and $11 million involved federal and non-federal entities, respectively. 

Undelivered orders totaling $127.0 billion as of September 30, 2020 were all unpaid, of which $12.5 

billion and $114.5 billion involved federal and non-federal entities, respectively. The decrease in 

Undelivered Orders – Unpaid as of September 30, 2021, primarily resulted from the de-obligation on 

December 27, 2020 of undisbursed but previously committed CARES Act funds totaling $106.0 billion 

(refer to Note 6).

Terms of Borrowing Authority Used

The FCRA provides indefinite borrowing authority to financing accounts to fund the unsubsidized 

portion of direct loans and to satisfy obligations in the event the financing account’s resources are 

insufficient. OMB Circular No. A-11 defines repayment requirements. Interest expense due is 

calculated based on the beginning balance of borrowings outstanding and the borrowings/repayments 

activity that occurred during the fiscal year. Undisbursed borrowings earn interest at the same rate as 

the financing account pays on its debt owed to the Fiscal Service. In the event that principal and interest 

collections exceed the interest expense due, the ESF receives the excess payment. If principal and 

interest do not exceed interest expense due, the ESF will borrow the difference. The ESF makes 

periodic principal repayments based on the analysis of cash balances and future disbursement needs. 

All interest on borrowings is due on September 30. Interest rates on FCRA borrowings range from 

0.80 percent to 1.71 percent. No borrowing authority remained as of September 30, 2021, as resources 

are no longer needed for the SPV investments and direct loan commitments which were de-obligated 

pursuant to the CAA (refer to Notes 6 and 7). The related borrowing authority was $93.5 billion as of 

September 30, 2020. 

Reconciliation of the President’s Budget

The FY 2023 Budget of the U.S. (also known as the President’s Budget), with actual numbers for 

FY 2021, was not published at the time that these financial statements were issued. The FY 2023 

President’s Budget is expected to be published by OMB in late-March 2022, and will be available 

from the U.S. Government Publishing Office. The FY 2022 President’s Budget was reconciled to 

the ESF’s SBR amounts reported for FY 2020. The only differences between the two documents 

were due to rounding.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

53

(continued)

Legal Arrangements Affecting Use of Unobligated Balances

The use of the ESF’s unobligated balances made available to the ESF by the CARES Act is governed 

by Section 1003(a)(2)(C) of the CAA, which provides that such funds may be used (i) to pay costs 

for modifications and the exercise of existing rights, as well administrative expenses, associated with

existing loans, loan guarantees, and other investments authorized by the CARES Act, (ii) for the 

Office of the Special Inspector General for Pandemic Recovery to carry out the purposes of the 

CARES Act, and (iii) for reimbursement of certain expenses of the Congressional Oversight 

Commission under the CARES Act. Any such funds remaining on January 1, 2026 will be 

transferred to the General Fund to be used for deficit reduction.

The rest of the ESF’s unobligated balances is governed by Section 10 of the Gold Reserve Act of

1934, as amended, codified at 31 U.S.C. 5302, except that (i) pursuant to the CARES Act, as 

amended, the ESF may not be used for any program or facility established under Section 13(3) of 

the Federal Reserve Act that is the same as any such program or facility in which the Secretary made 

an investment pursuant to the CARES Act other than the TALF SPV and (ii) pursuant to the 

Emergency Economic Stabilization Act of 2008, the ESF may not be used to establish future 

guarantee programs for the U.S. money market mutual fund industry. The ESF’s unobligated 

balances governed by Section 10 is the dollar value of cash and cash equivalents, investment 

securities and SDR Holdings in amounts that are not encumbered by any existing obligations of the 

ESF, are available for use by the Secretary consistent with the relevant statutory requirements and 

are available without fiscal year limitation.

NOTE 15 – RECONCILIATION OF NET COST OF OPERATIONS TO BUDGETARY 

OUTLAYS, NET 

The Reconciliation of Net Cost of the ESF’s Operations to the ESF’s Outlays, Net (referred to as 

“Net Outlays” for purposes of this note) depicts the difference between proprietary information and 

budgetary accounting information. Proprietary financial accounting information is intended to depict 

the U.S. government’s financial operations and financial position presented on an accrual basis in 

accordance with GAAP, which includes the recognition of assets and liabilities for which collections 

and payments, respectively, have or have not been made. In contrast, budgetary accounting 

information is used for planning and control purposes, and includes net outlays that reflect both the 

receipt and use of cash, as well as reporting of the federal deficit. The reconciliation of Net Cost 

(presented on an accrual basis) and Net Outlays (presented on a budgetary basis) reflects the 

relationship between proprietary accounting and budgetary information. The reconciliation serves 

not only to identify costs paid in the past and those that will be paid in the future, but also to assure 

integrity between financial and budgetary accounting. 

For the fiscal years ended September 30, 2021 and 2020, the Reconciliation of Net Cost of the ESF’s

Operations to the ESF’s Outlays, Net consisted of the following:
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

54

(continued)

Fiscal Year Ended September 30, 2021

(in thousands) IntraGovernmental

Other Than 

IntraGovernmental2021 Total

Total Net Cost (Income) of ESF Operations $ 474,132 $ (4,005,450) $ (3,531,318)

Components of Net Operating Cost Not Part of Budgetary 

Outlays:

 Unrealized Valuation (Loss) on Investments (Notes 6 and 9) - (314,415) (314,415)

 Unrealized Valuation Gain on Special Drawing Rights (Note 5) - 1,540 1,540

 Year-end Credit Reform Subsidy Accrual Re-Estimates - (9,125,350) (9,125,350)

Increase/(Decrease) in Assets:

 Special Drawing Rights Holdings and Related Interest Receivable

(Note 5) - 112,836,965 112,836,965

 COVID-19 Other (Note 8) - (118,699) (118,699)

 Other Investments, Net (Note 9) - (9,071) (9,071)

(Increase)/Decrease in Liabilities:

 Special Drawing Right Allocations and Related Interest Payable 

(Note 5) - (112,837,165) (112,837,165)

 Other Liabilities (482,903) (48) (482,951)

Other Financing Sources:

 Imputed Costs (134) - (134)

Total Components of Net Operating Cost Not Part of Budgetary 

Outlays (483,037) (9,566,243) (10,049,280)

Components of Budgetary Outlays That Are Not Part of Net Cost

 Sale of COVID Investments (Note 6) - (10,000,000) (10,000,000)

 Sale of COVID-19 Other (Note 8) - (1,500,000) (1,500,000)

Other Financing Sources:

 Transfers (In)/Out Without Reimbursement 483,605 - 483,605

Total Components of Budgetary Outlays That Are Not Part of Net 

Cost 483,605 (11,500,000) (11,016,395)

Other Reconciling Items

 Other Reconciling Items - 61,586 61,586

Total Other Reconciling Items - 61,586 61,586

Agency Outlays, Net $ 474,700 $ (25,010,107) $ (24,535,407)
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

Notes to the Financial Statements

September 30, 2021 and 2020

55

Fiscal Year Ended September 30, 2020

(in thousands) IntraGovernmental

Other Than 

IntraGovernmental2020 Total

Total Net Cost of ESF Operations $ 779,672 $ 3,585,494 $ 4,365,166

Components of Net Operating Cost Not Part of Budgetary 

Outlays:

 Unrealized Valuation Gain on Investments (Notes 6 and 9) - 1,108,674 1,108,674

 Unrealized Valuation Gain on Special Drawing Rights (Note 5) - 62,248 62,248

 Year-end Credit Reform Subsidy Accrual Re-Estimates - 12,376,715 12,376,715

Increase/(Decrease) in Assets:

 Special Drawing Rights Holdings and Related Interest Receivable 

(Note 5) - (70,321) (70,321)

 COVID-19 Other (Note 8) - 118,699 118,699

Other Investments, Net - (80,202) (80,202)

(Increase)/Decrease in Liabilities:

 Special Drawing Right Allocations and Related Interest Payable 

(Note 5) - 67,497 67,497

 Other Liabilities - (399) (399)

Other Financing Sources:

 Imputed Costs (32) - (32)

Total Components of Net Operating Cost Not Part of Budgetary 

Outlays (32) 13,582,911 13,582,879

Components of Budgetary Outlays That Are Not Part of Net Cost

 Purchase of COVID Investments (Note 6) - 10,000,000 10,000,000

 Purchase of COVID-19 Other (Note 8) - 1,500,000 1,500,000

Total Components of Budgetary Outlays That Are Not Part of Net 

Cost - 11,500,000 11,500,000

Other Reconciling Items

 Other Reconciling Items - 80,221 80,221

Total Other Reconciling Items - 80,221 80,221

Agency Outlays, Net $ 779,640 $ 28,748,626 $ 29,528,266

NOTE 16–SUBSEQUENT EVENTS 

The following event transpired after September 30, 2021 but prior to the issuance date of this report:

In November 2021, Treasury and the respective Federal Reserve Banks amended the limited liability 

company agreements for MSLP, TALF, and MLF to provide for periodic interim distributions of 

“excess equity.” For MSLP and MLF, this means the excess of Treasury’s remaining equity 

contribution (including investment earnings thereon) over the purchase price of all participations 

held by the facility. For TALF, this means the excess of Treasury’s remaining equity contribution 

(including investment earnings thereon) over the aggregate principal amount of all outstanding 

facility loans. Treasury received the first such distributions, totaling $5.14 billion, on November 19, 

2021. Future distributions will take place at six-month intervals, provided that MSLP is not required 

to make any further interim distributions if the remaining amount of Treasury’s equity contribution 

is $1 billion or less.
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

REQUIRED SUPPLEMENTARY INFORMATION (Unaudited)

56 (continued)

REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) 

Combining Statement of Budgetary Resources by Major Budget Account

The Statement of Budgetary Resources as of September 30, 2021 and 2020 presents total budgetary 

resources and the status of resources by each major budget account within the ESF: (i) the fund 

reporting Dedicated Collections (refer to Note 13) that supports Exchange Stabilization, (ii) the 

program fund for FCRA-budgeted COVID-19 Investments (refer to Note 6) and Credit Program 

Receivables (refer to Note 7), and (iii) the non-budgetary financing account for FCRA-budgeted

COVID-19 Investments and Credit Program Receivables.

For the Year Ended September 30, 2021 

(in thousands)

Exchange 

Stabilization 

Program 

Budgetary 

Account 

COVID-19 

Budgetary 

Account 

COVID-19 

Non-Budgetary 

Financing 

Account Total

BUDGETARY RESOURCES 

Unobligated balance from prior year budget 

authority, Net (discretionary and mandatory) 

(Note 14)

$ 143,048,969 $ 480,425,919 $ 12,289,484 $ 635,764,372

Appropriations (discretionary and mandatory) - (477,890,238) - (477,890,238)

Borrowing authority (discretionary and 

mandatory) - - 14,713,402 14,713,402

Spending authority from offsetting collections 

(discretionary and mandatory) 11,654,704 - (11,582,981) 71,723

Total Budgetary Resources $ 154,703,673 $ 2,535,681 $ 15,419,905 $ 172,659,259

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 114,139,044 $ 944,637 $ 15,039,789 $ 130,123,470

Unobligated balance, end of year:

 Apportioned, unexpired accounts - 1,591,044 - 1,591,044

 Unapportioned, unexpired accounts 40,564,629 - 380,116 40,944,745

Unobligated balance, end of year 40,564,629 1,591,044 380,116 42,535,789

Total Status of Budgetary Resources $ 154,703,673 $ 2,535,681 $ 15,419,905 $ 172,659,259

OUTLAYS, NET, AND 

DISBURSEMENTS, NET

Outlays, net (discretionary and mandatory) $ (11,654,704) $ 1,149,585 $ - $ (10,505,119)

Distributed offsetting receipts (1) (14,030,287) - (14,030,288)

Agency Outlays, Net (Discretionary and 

Mandatory) $ (11,654,705) $ (12,880,702) $ - $ (24,535,407)

Disbursements, net (mandatory) $ (63,485,485) $ (63,485,485)
DEPARTMENT OF THE TREASURY

EXCHANGE STABILIZATION FUND

REQUIRED SUPPLEMENTARY INFORMATION (Unaudited)

57

For the Year Ended September 30, 2020

(in thousands)

Exchange 

Stabilization 

Program 

Budgetary 

Account 

COVID-19 

Budgetary 

Account 

COVID-19 

Non-Budgetary 

Financing 

Account Total

BUDGETARY RESOURCES 

Unobligated balance from prior year budget 

authority, Net (discretionary and mandatory) 

(Note 14)

$ 42,854,368 $ - $ - $ 42,854,368

Appropriations (discretionary and mandatory) - 499,975,000 - 499,975,000

Borrowing authority (discretionary and 

mandatory) - - 188,523,874 188,523,874

Spending authority from offsetting collections 

(discretionary and mandatory) 139,144 - 26,101,218 26,240,362

Total Budgetary Resources $ 42,993,512 $ 499,975,000 $ 214,625,092 $ 757,593,604

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 21,891,665 $ 31,838,735 $ 214,625,092 $ 268,355,492

Unobligated balance, end of year:

 Apportioned, unexpired accounts - 468,136,265 - 468,136,265

 Unapportioned, unexpired accounts 21,101,847 - - 21,101,847

Unobligated balance, end of year 21,101,847 468,136,265 - 489,238,112

Total Status of Budgetary Resources $ 42,993,512 $ 499,975,000 $ 214,625,092 $ 757,593,604

OUTLAYS, NET, AND 

DISBURSEMENTS, NET

Outlays, net (discretionary and mandatory) $ 11,360,856 $ 19,331,017 $ - $ 30,691,873

Distributed offsetting receipts (79) (1,163,528) - (1,163,607)

Agency Outlays, Net (Discretionary and 

Mandatory) $ 11,360,777 $ 18,167,489 $ - $ 29,528,266

Disbursements, net (mandatory) $ 87,102,396 $ 87,102,396
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