Contents and Abstract:

10.1 Cash and Security Holdings Definition

10.11 Assets Outside of Census Bureau Definition

10.12 Major Classification Changes with Fiscal Year 1987-88 Data

Governments' balance sheets contain a wide variety of assets; however, only those that are cash and investment securities are included in Census Bureau statistics. Moreover, this category applies solely to state and local governments. Although the Federal Government holds large amounts of cash and investments, no comparable statistics are collected on them (much of which consists of its own securities).

10.1 Cash and Security Holdings Definition

The title of this category, cash and security holdings, is self-defining. Examples to supplement this definition include cash on hand, demand or time deposits, savings accounts, government and private securities (bonds, notes, mortgages, corporate stocks, etc.), and loans and other credit paper held by government loan and investment funds. Chart 10-A has a lengthy list of specific assets that fall within (and outside) the scope of this category.

This definition includes cash and security holdings of not only the general government but also those of all autonomous agencies, boards, commissions, or other organizations categorized as dependent on the government concerned (see Chapter 3). Stated in terms of the accounting procedures from which these data originate, this category covers cash and security holdings of all accounting funds of a government other than intragovernmental service (revolving), agency, and private trust funds.

The value of cash and securities is reported as of the last day of the government's fiscal year. Along with debt outstanding, this is the only finance data to represent fiscal condition at a specific point in time (rather than financial activity during the fiscal year).

Effective with fiscal year 1987-88 finance data, cash and security holdings are classified according to the purpose for which they are held. For public employee retirement systems and unemployment compensation funds, these data are categorized further by the type of cash or security involved.

10.11 Assets Outside of Census Bureau Definition

• Real property, land, buildings, improvements, machinery, equipment, and other fixed assets (see Note 1).
• Construction in progress.
• Materials, supplies, and inventories.
• Accounts receivables, taxes receivables, special assessment receivables, interfund receivables, tax liens, advances to other funds, and other such monies owed to a government.
• Unamortized premiums on investments.
• Prepaid or deferred expenses.
• Goods or commodities held for resale (e.g., of liquor stores or utilities).
• Intangible assets.
• Assets held by private trust funds or by funds representing agency transactions (e.g., withholdings of employee Social Security taxes).

10.12 Major Classification Changes with Fiscal Year 1987-88 Data

Because of the growing complexity of government cash and investment management practices (particularly pooled investment funds, described below in Section 10.4), the Bureau found the classification of cash and securities by the type of cash or security held becomingly increasingly difficult to obtain. Consequently, nearly all categories relating to the type of cash or security held by a government were consolidated, effective with fiscal year 1987-88 data. The only exceptions were cash and security holdings of government-administered public employee retirement systems and unemployment compensation systems.

This consolidation of categories is summarized by the following:

A classification change in the debt area had an important effect on cash and security data. The amount of Public Debt for Private Purposes (code 44T) outstanding at the end of the fiscal year is recorded as an Offset to Debt (code W01). Before fiscal year 1987-88 data, this treatment was limited to mortgage revenue debt.

10.2 Types of Cash and Securities Covered

Traditionally, the Census Bureau measured and reported investment securities at their book value (less any discounts), not at their current market value or par (face) value. (Any profit or loss on their sale is reported as a revenue or expenditure). However, in the 1997 Census of Governments and in subsequent annual surveys, there was a revision to this treatment for the large holding of public employment retirement systems. For these systems, two additional categories were added to the classification system to measure the holdings of corporate stocks (equity funds, Z78) and corporate bonds (Z77). These additions were needed to keep pace with industry accounting standards.

These additional categories apply to the special exhibit statistics on Employee Retirement Systems. They are not included in the regular statistics on government finances.

10.3 Purpose of Holdings of Cash and Securities

10.31 Insurance Trust Funds

Public Employee Retirement Systems
Unemployment Compensation Systems(see Note 3)
Workers' Compensation Systems
Other Insurance Trusts Systems

See the Description Sheets for a more detailed definition of these categories. Chapter 11 contains a formal definition of an insurance trust system.

10.32 Other Than Insurance Trust Funds

See the Description Sheet for a more detailed definition of these categories.

10.33 Additional Notes Regarding Offsets to Debt Category

10.4 Pooled Investments

1. The retirement survey collects data on real property holdings using special exhibit codes; see Chapter 11 for details. citation.
2. These categories have been preserved as special exhibit statistics; see Chapter 11. citation.
3. Although the Federal-state cooperative unemployment compensation trust fund is administered by the Federal Government, the account of each state (and the District of Columbia) is reported with the latter's cash and security holdings. citation.