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FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE This chapter contains descriptions of and data on financing vehicles and the Board of Governors of the Federal Reserve listed below. —The Financing Corporation functions as a financing vehicle for the FSLIC Resolution Fund. It operates under the supervision and control of the Federal Housing Finance Board. —The Resolution Funding Corporation provided financing for the Resolution Trust Corporation (RTC) and is subject to the general oversight and direction of the Secretary of the Treasury. The Board of Governors of the Federal Reserve System’s transactions are not included in the budget because of its unique status in the conduct of monetary policy. The Board provides data on its administrative budget on a calendar year basis, which is included here for information. Its budget schedules and statements are not subject to review by the President. Balance Sheet (in millions of dollars) 2002 actual 2003 actual 2004 est. 2005 est. ASSETS: Investments in US securities: 1102 Segregated accounts investment, net 1206 Receivables, net ...................................... 1801 Cash, cash equivalents ........................... 1901 Other assets ............................................ 2,307 91 66 9 2,459 .................. 281 8 .................. .................. .................. .................. .................. .................. .................. .................. 1999 Identification code 99–4033–0–3–373 Total assets ........................................ LIABILITIES: 2202 Interest payable ....................................... 2203 Debt ......................................................... 2207 Other ........................................................ 2,473 2,748 .................. .................. 157 8,150 28 235 8,151 73 .................. .................. .................. .................. .................. .................. 2999 8,335 8,459 .................. .................. 680 1,628 –8,170 680 1,779 –8,170 .................. .................. .................. .................. .................. .................. 3999 Total net position ................................ –5,862 –5,711 .................. .................. 4999 FINANCING VEHICLES Total liabilities .................................... NET POSITION: 3100 FICO capital stock purchased by FHLBanks ............................................ 3300 Cumulative results of operations ............ 3300 FSLIC capital certificates ........................ Total liabilities and net position ............ 2,473 2,748 .................. .................. Note: Consistent with Government-wide practice, information for 2004 and 2005 was not required to be collected. f FINANCING CORPORATION The Financing Corporation (FICO) is a mixed-ownership government corporation, chartered by the Federal Home Loan Bank Board pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987, as amended (the ‘‘Act’’). FICO’s sole purpose was to function as a financing vehicle for the FSLIC Resolution Fund, formerly the Federal Savings and Loan Insurance Corporation (FSLIC). FICO operates under the supervision and control of the Federal Housing Finance Board (the ‘‘Finance Board’’). Pursuant to the Act, FICO was authorized to issue debentures, bonds and other obligations subject to limitations contained in the Act, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC Resolution Fund, or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 terminated the FICO’s borrowing authority. The Act provided formulas pursuant to which the Federal Home Loan Banks made capital contributions to FICO at the direction of the Finance Board for the purchase of FICO capital stock. FICO used the proceeds received from the sales of such capital stock to purchase non-interest bearing securities for deposit in a segregated account as required by the Act. The non-interest bearing securities held in the segregated account will be the primary source of repayment of the principal of the FICO obligations. Securities in the segregated account are kept separate from other FICO accounts and funds but are not specifically pledged as collateral for the payment of obligations. The primary source of payment of interest on the obligations is the receipt of assessments imposed on and collected from institutions’ accounts which are insured by the Bank Insurance Fund (the ‘‘BIF’’) and the Savings Association Insurance Fund (the ‘‘SAIF’’). RESOLUTION FUNDING CORPORATION The Resolution Funding Corporation (the ‘‘REFCORP’’) is a mixed-ownership government corporation established by Title V of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The sole purpose of REFCORP was to provide financing for the Resolution Trust Corporation (the ‘‘RTC’’). Pursuant to FIRREA, REFCORP was authorized to issue debentures, bonds, and other obligations, subject to limitations contained in the Act and regulations established by the Thrift Depositor Protection Oversight Board. The proceeds of the debt (less any discount, plus any premium, net of issuance cost) were used solely to purchase nonredeemable capital certificates of the RTC or to refund any previously issued obligations. Until October 29, 1998, REFCORP was subject to the general oversight and direction of the Thrift Depositor Protection Oversight Board. At that time, the Oversight Board was abolished and its authority and duties were transferred to the Secretary of the Treasury. The day-to-day operations of REFCORP are under the management of a three-member Directorate comprised of the Director of the Office of Finance of the Federal Home Loan Banks and two members selected from among the presidents of the twelve Federal Home Loan Banks (‘‘the FHLBanks’’). Members of the Directorate serve without compensation, and REFCORP is not permitted to have any paid employees. FIRREA, as amended, and the regulations adopted by the Thrift Depositor Protection Oversight Board and the Secretary of the Treasury provide formulas pursuant to which the Federal Home Loan Banks made capital contributions to REFCORP’s Principal Fund and continue to make interest payments on outstanding REFCORP obligations. FIRREA also provides that the U.S. Treasury cover any interest shortfall. 1201 VerDate jul 14 2003 22:38 Jan 20, 2004 Jkt 198921 PO 00000 Frm 00001 Fmt 3604 Sfmt 3604 E:\BUDGET\FVF.XXX FVF 1202 THE BUDGET FOR FISCAL YEAR 2005 FINANCING VEHICLES—Continued RESOLUTION FUNDING CORPORATION—Continued 86.98 Outlays from mandatory balances ................................ 16 15 15 Funds designated for the Principal Funds were used to purchase zero-coupon bonds. The zero-coupon bonds will be held in the Principal Fund and are the primary source of repayment of the principal of the obligations at maturity. 87.00 Total outlays (gross) ................................................. 245 266 279 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. ¥245 ¥266 ¥279 Balance Sheet (in millions of dollars) 2002 actual Identification code 99–4029–0–3–373 ASSETS: Investments in US securities: 1102 Principal fund account investment, net .................................................. 1206 Assessments receivable for interest expense ................................................... 2003 actual 2004 est. 2005 est. The figures presented may differ from other Board financial material because they are prepared in accordance with OMB guidelines which vary from the Board’s budget and accounting procedures. 6,270 6,646 .................. .................. 887 888 .................. .................. Total assets ........................................ LIABILITIES: 2202 Accrued interest payable on long-term obligations .......................................... 2203 Debt ......................................................... 7,157 7,534 .................. .................. 886 30,059 888 30,058 .................. .................. .................. .................. 2999 30,945 30,946 .................. .................. 2,513 3,928 –31,286 2,513 4,304 –31,286 .................. .................. .................. .................. .................. .................. 1999 Total liabilities .................................... NET POSITION: 3100 Nonvoting capital stock issued to FHLBanks ............................................ 3300 Cumulative results of operations ............ 3300 RTC nonredeemable capital certificates 3300 Contributed capital—principal fund assessments ........................................... Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... ................... ................... ................... 1,057 1,057 .................. .................. 3999 Total net position ................................ –23,788 –23,412 .................. .................. 4999 Total liabilities and net position ............ 7,157 7,534 .................. .................. Note: Consistent with Government-wide practice, information for 2004 and 2005 was not required to be collected. f BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Program and Financing (in millions of dollars) 2002 actual Identification code 99–4450–0–3–803 2003 est. 2004 est. 09.01 09.02 09.03 09.04 Obligations by program activity: Monetary and economic policy ...................................... Services to financial institutions and the public ......... Supervision and regulation of financial institutions System policy direction and oversight .......................... 102 5 96 38 111 5 105 41 116 6 110 43 09.09 09.10 Subtotal: Board operating expenses ......................... Office of Inspector General operating expenses ........... 241 4 262 4 275 4 10.00 The Federal Reserve System operates under the provisions of the Federal Reserve Act of 1913, as amended, and other acts of Congress. Program.—To carry out its responsibilities under the Act, the Board determines general monetary, credit, and operating policies for the System as a whole and formulates the rules and regulations necessary to carry out the purposes of the Federal Reserve Act. The Board’s principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve banks and member banks. Financing.—Under the provisions of section 10 of the Federal Reserve Act, the Board of Governors levies upon the Federal Reserve banks, in proportion to their capital and surplus, an assessment sufficient to pay its estimated expenses. The Board, under the Act, determines and prescribes the manner in which its obligations are incurred and its expenses paid. Funds derived from assessments are deposited in the Federal Reserve Bank of Richmond, and the Act provides that such funds ‘‘shall not be construed to be Government funds or appropriated moneys.’’ No Government appropriation is required to support operations of the Board. The information presented pertains to Board operations only. Expenditures made on behalf of the Federal Reserve banks for production, issuance, retirement, and shipment of Federal Reserve notes are not included, since they are reimbursed in full by the Federal Reserve banks. Object Classification (in millions of dollars) 2003 actual Identification code 99–4450–0–3–803 245 266 279 245 ¥245 266 ¥266 279 ¥279 New budget authority (gross), detail: Mandatory: 69.00 Offsetting collections (cash) ..................................... 245 266 279 Change in obligated balances: 72.40 Obligated balance, start of year ................................... 73.10 Total new obligations .................................................... 73.20 Total outlays (gross) ...................................................... 74.40 Obligated balance, end of year ..................................... 26 245 ¥245 26 26 266 ¥266 26 26 279 ¥279 26 Outlays (gross), detail: 86.97 Outlays from new mandatory authority ......................... 229 251 11.1 11.3 11.5 138 3 2 146 3 2 155 3 2 11.9 12.1 21.0 22.0 23.3 24.0 25.1 25.2 25.2 26.0 31.0 Total personnel compensation .............................. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Transportation of things ................................................ Communications, utilities, and miscellaneous charges Printing and reproduction .............................................. Advisory and assistance services .................................. Other services ................................................................ Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... 143 25 5 1 8 2 5 4 23 9 20 151 27 6 2 9 3 5 4 26 9 24 160 28 5 2 9 2 5 4 35 9 20 99.0 Reimbursable obligations ..................................... 245 266 279 Total new obligations ................................................ 245 266 279 264 22:38 Jan 20, 2004 Jkt 198921 2005 est. 99.9 Total new obligations ................................................ Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 23.95 Total new obligations .................................................... VerDate jul 14 2003 2004 est. Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... Other personnel compensation .................................. PO 00000 Frm 00002 Fmt 3604 Sfmt 3643 E:\BUDGET\FVF.XXX FVF
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