USSGL Board Presentation

May 20, 2010

International Monetary Fund Assets

Exchange Stabilization Fund Assets

Valuation Change in Investments - ESF

Background: Exchange Stabilization Fund

The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury ("the Secretary").

Proposed New USSGL*

1193 International Monetary Fund Assets – Reserve Position

The balance of assets held in the International Monetary Fund excluding holdings of Special Drawing Rights

*Refer to USSGL Voting Ballot #10-01 for complete description

Proposed New USSGL*

1194 Exchange Stabilization Fund Assets – Holdings of Special Drawing

Rights

Special Drawing Rights held in the Exchange Stabilization Fund

*Refer to USSGL Voting Ballot #10-01 for complete description.

Proposed New USSGL*

5921 Valuation Change in Investments – Exchange Stabilization Fund

The accumulated unrealized gain or loss on financial stability and foreign currency investments in the Exchange Stabilization Fund. Unrealized gain or loss is due to adjustments for market value to assets. Although the normal balance for this account is credit, it is acceptable in some instances for this account to have a debit balance.

*Refer to USSGL Voting Ballot #10-01 for complete description

*Refer to SFFAS 7, Accounting for Revenue and Other Financing Sources, Paragraph 238.

Proposed Modification to Existing USSGL Accounts

1195 Other Monetary Assets

The balance of monetary assets for which a specific USSGL account has not been established. This includes gold (valued at market). It excludes monetary assets seized, (See USSGL account 1531, “Seized Monetary Instruments.”), special drawing rights, U.S. reserves in the International Monetary Fund, and all Exchange Stabilization Fund activity.

Purpose of Proposed Accounts

RT7 BUS_LINE_CD911 UNRLDISC921 FHOT931 ANAMTDISCPREM962 BORFRMPUB971 INVUSTREASSEC972 INVAGNCYSEC973 INVNONFEDSECN/A CGHNONFEDSECN/A SUBPMTCRDTRFMN/A BORFRMFFB951 BORFRMUSTREASN/A MISC961 RESPOS965 HOLDSDR

USSGL Account 1195, “Other Monetary Assets” with specific attributes were being directed to two business lines

Impact on USSGL Crosswalks

USSGL Account Number

Balance Sheet Net Cost Net Position Custodial Activity

Reclassified Balance Sheet

Reclassified Net Cost

1193 Line 7

Cash and Other Monetary Assets

N/A N/A N/A TBD N/A

1194 Line 7

Cash and Other Monetary Assets

N/A N/A N/A TBD N/A

5921 Line 32 (Cum. Results of Ops-Earmarked)

Line 33 (Cum. Results of Ops –Other Funds)

Line 2

(Earned Revenue)

N/A N/A Line 9.1

(Net Position-Nonearmarked Funds)

Line 9.2

(Net Position-Earmarked Funds)

Line 9

(Non-Federal Earned Revenue)

Any Questions?