Effective Date: September 30, 2008
Expiration Date: September 30, 2023
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1.1.1 This chapter prescribes the accounting requirements for recording and reporting investment transactions. Investments represent the value of securities with the U.S. Treasury.
1.2.1 NASA invests in market-based Government accounting series bonds and bills issued by the U.S. Treasury. Treasury issues bills at a discount with a maturity date of 6 months or less from the date of issue. Treasury issues bonds at a discount or premium. Bonds carry a stated rate of interest, payable semiannually. Market-based bonds mature in more than 10 years. In accordance with Treasury Financial Manual (TFM) 2-4300, Reporting Instruction for Accounts Invested in the Department of the Treasury Securities. NASA may not invest funds before the funds are deposited, collected, and considered available to Treasury. NASA makes investments using two of its trust funds which are non-revolving trust funds. The National Aeronautics and Space Administration, Endeavor Teacher Fellowship Trust contains funds that are invested in Treasury bills and those in the Science, Space, and Technology Education Trust Fund are invested in Treasury bonds and bills.
1.2.2 NASA is required to record and report investment transactions in accordance with the directives prescribed in the Statement of Federal Financial Accounting Standard (SFFAS) No. 1, Accounting for Selected Assets and Liabilities. Office of Management and Budget (OMB) Circulars No. A-11 Preparation, Submission and Execution of the Budget, and A-136, Financial Reporting Requirements TFM 2-4700, Agency Reporting Requirements for the Financial Report of the United States Government, and TFM 2-4300 (see 1.2.1). Investments should be recognized at their acquisition cost. If the acquisition cost differs from the face (par) value, the security should be recorded at the acquisition cost, which equals the security's face value plus or minus the premium or discount on the investment. Subsequent to their acquisition, investments in U.S. Treasury securities should be carried at their acquisition cost, adjusted for amortization of the discount or premium as applicable. Premiums and discounts should be amortized over the life of the Treasury bonds using the interest method and Treasury bills using the straight-line method.
1.2.3 NASA shall distinguish between the different types of investment activities (investments, redemptions, and unrealized discounts) by using a point account with the 4-digit appropriation fund or receipt account Treasury Account Symbol (TAS) to classify realized earnings as receipts. Interest receivable is recognized as it is earned on investments in interest-bearing securities.
1.2.4 NASA investments in U.S. securities (securities issued by the U.S. Treasury and Federal agencies) are intragovernmental investments and should be accounted for and reported as Federal assets separately from Non-Federal assets. Investments in securities issued by non-Federal entities are considered Non-Federal assets. NASA shall reconcile and confirm investment balances and activity with Treasury's Bureau of Public Debt (BPD) on a quarterly basis.
1.2.5 The components of investments including the market value of the investments should be disclosed in notes to the financial statements, in accordance with the reporting requirements detailed in OMB Circular A-136. NASA is also required to include investment balances in budget reports and schedules. The BPD reports NASA's investment transactions affecting the Fund Balance with Treasury (investment, redemption, and interest received) using the TAS and Business Even Type Code (BETC) applicable to the appropriate trust fund and event.
1.3.1 NASA Agency Chief Financial Officer (CFO)/ Deputy CFO. NASA Agency CFO and DCFO are responsible for investing funds; recording, reporting, and reconciling investment transactions; and monitoring the Fund Balance with Treasury reported by Treasury's Bureau of Public Debt.
1.3.2 NASA Regional Finance Office/Goddard Space Flight Center CFO. NASA Regional Finance Office/Goddard Space Flight Center CFO is responsible for disbursing interest received on investments as required by 42 U.S.C. § 2467.
The Agency CFO or DCFO may determine that any of the stated responsibilities may be performed in coordination with or delegated to NASA Centers or Technical and Service Support Centers.
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