[Federal Register: March 28, 2001 (Volume 66, Number 60)]
[Notices]
[Page 16945-16946]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28mr01-59]
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FEDERAL RESERVE SYSTEM
[Docket No. R-1098]
Pro Forma Financial Statements For Federal Reserve Priced
Services
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice with request for comments.
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SUMMARY: The Board requests comment on a proposal to discontinue the
quarterly publication of interim pro forma financial statements for
Federal Reserve priced services (pro formas). The Board believes
information provided in the quarterly pro formas are of little value to
parties interested in the Federal Reserve's priced-services financial
results because it does not provide a relevant long-term cost-recovery
assessment.
DATES: Comments must be submitted by April 23, 2001.
ADDRESSES: Comments, which should refer to Docket No. R-1098, may be
mailed to Ms. Jennifer J. Johnson, Secretary, Board of Governors of the
Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551 or
mailed electronically to regs.comments@federalreserve.gov. Comments
addressed to Ms. Johnson also may be delivered to the Board's mail room
between 8:45 a.m. and 5:15 p.m. and to the security control room
outside of those hours. Both the mail room and the security control
room are accessible from the courtyard entrance on 20th Street between
Constitution Avenue and C Street, NW. Comments may be inspected in Room
MP-500 between 9:00 a.m. and 5:00 p.m. weekdays, pursuant to
Sec. 261.12, except as provided in Sec. 261.14 of the Board's Rules
Regarding Availability of Information, 12 CFR 261.12 and 261.14.
FOR FURTHER INFORMATION CONTACT: Gregory L. Evans, Manager (202/452-
3945); or Elizabeth Miyagi, Financial Analyst (202/452-2222), Division
of Reserve Bank Operations and Payment Systems.
SUPPLEMENTARY INFORMATION: Currently, the Board publishes pro forma
financial statements for Federal Reserve priced services (pro formas)
for the first, second, and third quarters each year in the Federal
Reserve Bulletin and the annual pro formas in the Annual Report of the
Board of Governors of the Federal Reserve System.
The Monetary Control Act of 1980 (MCA) requires the Federal Reserve
to set fees for its priced services to recover, over the long term, its
actual costs of providing the services, as well as imputed costs and
profits. Although it is not required by MCA, the Board has published
the pro formas since 1984 to provide information to the public in a
manner that is similar to the information published by other service
providers.
The Federal Reserve uses a ten-year cost recovery rate as a
benchmark to assess Reserve Bank compliance with MCA. The Board
believes the ten-year historical recovery rate, together with the
annual pro formas published in the Board's Annual Report and the
additional cost-recovery information
[[Page 16946]]
included in the annual repricing Federal Register notice, provides the
relevant information for the public to evaluate the Federal Reserve's
performance under the MCA. The information provided in the quarterly
pro formas, therefore, are of little value to parties interested in
priced-services financial results because they do not provide a
relevant long-term cost-recovery assessment.
Accordingly, the Board proposes to discontinue the quarterly
publication of the pro formas. The Board will continue to publish,
however, the annual pro formas in the Annual Report and the additional
cost-recovery information included in the annual repricing Federal
Register notice. The latest publication of the quarterly pro formas may
be found in the February 2001 issue of the Federal Reserve Bulletin.
The public may order the document online from the Board's web site at
http://www.federalreserve.gov/pubs/bulletin/default.htm.
The Board requests comments on whether there are benefits to
continuing the publication of the quarterly pro formas and, if so, what
elements of the current pro formas provide the most relevant
information.
By order of the Board of Governors of the Federal Reserve
System, March 22, 2001.
Robert deV. Frierson,
Associate Secretary of the Board.
[FR Doc. 01-7570 Filed 3-27-01; 8:45 am]
BILLING CODE 6210-01-P