[Appendix]
[Financing Vehicles and the Board of Governors of the Federal Reserve]
[From the U.S. Government Publishing Office, www.gpo.gov]



   
      
      
         FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE                                                     
            
         
      
      
   
   
      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 System
            (Board). The Financing Corporation functions as a financing vehicle for the Federal Savings and Loan Insurance Corporation
            (FSLIC) Resolution Fund. 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'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, which is included here for information. Its budget is not subject to review
            by the President and is executed and presented here on a calendar-year basis. The previous year's data reflects the final
            budget, as approved by the Board.
         
         The 2015 balance sheets for the Financing Corporation and Resolution Funding Corporation are as of December 31, 2015, and
            the 2016 balance sheets are as of September 30, 2016.
         
      
      Federal Funds
         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 is to function as a financing vehicle for the FSLIC Resolution Fund, formerly the Federal Savings and Loan Insurance
            Corporation. 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 FICO's borrowing authority.
         
         The Act provided formulas pursuant to which the Federal Home Loan Banks make capital contributions to FICO. 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 are the primary source
            of repayment of the principal of 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 Federal Deposit Insurance Corporation's Deposit Insurance Fund.
         
         Note that consistent with updated Federal Accounting Standards Advisory Board guidance, 2015 assets and liabilities have been
            adjusted in line with the presentation of assets and liabilities in 2016 audited statements.
         
      
      Balance Sheet (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 920â4980â0â4â373
                  2015 actual
                  2016 actual
               
               
                  
                     
                  
               
               
                  
                  ASSETS:
               
               
                  
                  Federal assets:
               
               
                  
                  Investments in US securities:
               
               
                  1102
                  Segregated accounts investment, net
                  6,990
                  7,448
               
               
                  1801
                  Other Federal assets: Cash, cash equivalents
                  215
                  292
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  1999
                  Total assets
                  7,205
                  7,740
               
               
                  
                  LIABILITIES:
               
               
                  
                  Non-Federal liabilities:
               
               
                  2202
                  Interest payable
                  156
                  235
               
               
                  2203
                  Debt
                  8,158
                  8,161
               
               
                  2207
                  Other
                  71
                  66
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  2999
                  Total liabilities
                  8,385
                  8,462
               
               
                  
                  NET POSITION:
               
               
                  3100
                  FICO capital stock purchased by FHLBanks
                  680
                  680
               
               
                  3300
                  Cumulative results of operations
                  6,310
                  6,768
               
               
                  3300
                  FSLIC capital certificates
                  â8,170
                  â8,170
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  3999
                  Total net position
                  â1,180
                  â722
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  4999
                  Total liabilities and net position
                  7,205
                  7,740
               
               
                  
                     
                  
               
            
         
      
         Resolution Funding Corporation                                                                                           
            
         
         The Resolution Funding Corporation (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 (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 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 composed of the Chief
            Executive Officer of the Office of Finance of the Federal Home Loan Banks and two members selected from among the presidents
            of the 11 Federal Home Loan Banks (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 required that Federal Home Loan Banks (FHLBs) contribute 20 percent of net earnings annually to assist in the payment
            of interest on bonds issued by REFCORP until such time as the total payments are equivalent to a $300 million annual annuity
            with a final maturity date of April 15, 2030. The FHLBs fulfilled this obligation on August 5, 2011.
         
      
      Balance Sheet (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 920â4981â0â4â373
                  2015 actual
                  2016 actual
               
               
                  
                     
                  
               
               
                  
                  ASSETS:
               
               
                  
                  Federal assets:
               
               
                  
                  Investments in US securities:
               
               
                  1102
                  Principal fund account investment, net
                  17,260
                  18,299
               
               
                  1206
                  Non-Federal assets: Assessments receivable for interest expense
                  886
                  888
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  1999
                  Total assets
                  18,146
                  19,187
               
               
                  
                  LIABILITIES:
               
               
                  
                  Non-Federal liabilities:
               
               
                  2202
                  Accrued interest payable on long-term obligations
                  886
                  887
               
               
                  2203
                  Debt
                  30,063
                  30,061
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  2999
                  Total liabilities
                  30,949
                  30,948
               
               
                  
                  NET POSITION:
               
               
                  3100
                  Nonvoting capital stock issued to FHLBanks
                  2,513
                  2,513
               
               
                  3300
                  Cumulative results of operations
                  14,913
                  15,955
               
               
                  3300
                  RTC nonredeemable capital certificates
                  â31,286
                  â31,286
               
               
                  3300
                  Contributed capital - principal fund assessments
                  1,057
                  1,057
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  3999
                  Total net position
                  â12,803
                  â11,761
               
               
                  
                  
                  
                     
                  
                  
                     
                  
               
               
                  4999
                  Total liabilities and net position
                  18,146
                  19,187
               
               
                  
                     
                  
               
            
         
      
         Board of Governors of the Federal Reserve System                                                                         
            
         Program and Financing (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 920â4982â0â4â803
                  2015 actual
                  2016 est.
                  2017 est.
               
               
                  
                     
                  
               
               
                  
                  Obligations by program activity:
               
               
                  0801
                  Monetary and economic policy
                  137
                  151
                  167
               
               
                  0802
                  Federal Reserve System policy direction
                  36
                  39
                  40
               
               
                  0803
                  Supervisory, regulatory, and legal services
                  223
                  241
                  255
               
               
                  0804
                  Support and security services
                  213
                  238
                  265
               
               
                  0805
                  Extraordinary items
                  34
                  40
                  17
               
               
                  0806
                  Below reporting threshold
                  
                  
                  1
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  0809
                  Reimbursable program activities, subtotal
                  643
                  709
                  745
               
               
                  0810
                  Office of Inspector General operating expenses
                  29
                  32
                  34
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  0900
                  Total new obligations, unexpired accounts
                  672
                  741
                  779
               
               
                  
                     
                  
               
               
                  
                  Budgetary resources:
               
               
                  
                  Financing authority:
               
               
                  
                  Spending authority from offsetting collections, mandatory:
               
               
                  1800
                  Collected
                  672
                  741
                  779
               
               
                  1930
                  Total budgetary resources available
                  672
                  741
                  779
               
               
                  
                     
                  
               
               
                  
                  Change in obligated balance:
               
               
                  
                  Unpaid obligations:
               
               
                  3010
                  New obligations, unexpired accounts
                  672
                  741
                  779
               
               
                  3020
                  Outlays (gross)
                  â672
                  â741
                  â779
               
               
                  
                     
                  
               
               
                  
                  Financing authority and disbursements, net:
               
               
                  
                  Mandatory:
               
               
                  4090
                  Budget authority, gross
                  672
                  741
                  779
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  4110
                  Outlays, gross (total)
                  672
                  741
                  779
               
               
                  
                  Offsets against gross financing authority and disbursements:
               
               
                  
                  Offsetting collections (collected) from:
               
               
                  4123
                  Non-Federal sources
                  â672
                  â741
                  â779
               
               
                  4180
                  Budget authority, net (total)
                  
                  
                  
               
               
                  4190
                  Outlays, net (total)
                  
                  
                  
               
               
                  
                     
                  
               
            
         
      
      
         The Federal Reserve System operates under the provisions of the Federal Reserve Act of 1913, as amended, and other acts of
            the Congress.
         
         To carry out its responsibilities under this 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 Act. The Board's
            principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve banks and member
            banks.
         
         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. Also under the Act, the
            Board 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 "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 for production, issuance, retirement, and shipment
            of Federal Reserve notes are not included because those costs are reimbursed in full by the Federal Reserve banks.
         
      
      Object Classification (in millions of dollars)
      
         
            
               
                  
                     
                  
               
               
                  Identification code 920â4982â0â4â803
                  2015 actual
                  2016 est.
                  2017 est.
               
               
                  
                     
                  
               
               
                  
                  Reimbursable obligations:
               
               
                  11.1
                  Personnel compensation: Full-time permanent
                  385
                  420
                  454
               
               
                  12.1
                  Civilian personnel benefits
                  79
                  87
                  94
               
               
                  13.0
                  Benefits for former personnel
                  10
                  10
                  10
               
               
                  21.0
                  Travel and transportation of persons
                  17
                  17
                  18
               
               
                  23.2
                  Rental payments to others
                  26
                  29
                  33
               
               
                  23.3
                  Communications, utilities, and miscellaneous charges
                  10
                  11
                  11
               
               
                  24.0
                  Printing and reproduction
                  2
                  3
                  3
               
               
                  25.1
                  Advisory and assistance services
                  66
                  87
                  70
               
               
                  25.2
                  Other services from non-Federal sources
                  43
                  44
                  47
               
               
                  25.4
                  Operation and maintenance of facilities
                  2
                  2
                  3
               
               
                  25.7
                  Operation and maintenance of equipment
                  5
                  6
                  5
               
               
                  26.0
                  Supplies and materials
                  2
                  1
                  2
               
               
                  31.0
                  Equipment
                  25
                  24
                  29
               
               
                  
                  
                  
                     
                  
                  
                     
                  
                  
                     
                  
               
               
                  99.9
                  Total new obligations, unexpired accounts
                  672
                  741
                  779