Note 4. Cash and Other Monetary Assets

Cash and Other Monetary Assets consist primarily of the time account balances at the Medicare contractors’ commercial banks.  The HHS uses the “Checks Paid Letter-of-Credit” method for reimbursing Medicare contractors for the payment of covered Medicare services.  Medicare contractors issue checks against Medicare Benefits Accounts maintained at commercial banks.  To compensate the commercial banks for handling the Medicare Benefits Accounts, Medicare funds are deposited into non-interest bearing time accounts.  The interest foregone by HHS on these time accounts is used to reimburse the commercial banks for the service.  The account balances as of September 30, 2007 and 2006, were $129 million and $145 million, respectively.

Report Date: November 15, 2007

AFR Section II Links:

• Message from the Chief Financial Officer
• Office of Inspector General Transmittal
• Independent Auditor's Reports
• Financial Statements and Notes
• Required Supplementary Stewardship Information
• Required Supplementary Information