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I.
Corporate Fund Financial Statement Results -
Fourth Quarter 2004
BIF
- The BIF fund balance grew about 3 percent during 2004 to end the
year at $34.8 billion.
- For the twelve months ending December 31, 2004, BIF’s comprehensive
income was $1.0 billion, which is substantially lower than the $1.7 billion
reported in 2003. This reduction is primarily due to a significantly smaller
negative adjustment of $269 million to the provision for losses in 2004,
compared to a negative $931 million adjustment for the same period last year—a
$662 million difference.
- BIF reported a decrease in unrealized gains on available-for-sale
securities in 2004 of $112 million. BIF has experienced such declines for
both of the past two years. This decrease is largely due to the fact that
interest rates increased and reached a plateau in late 2003 after dropping
sharply in 2002 and early 2003. Despite the modest decrease in unrealized
gains in 2004, cumulative unrealized gains in the fund remained high at
$690 million.
SAIF
- The SAIF fund balance grew approximately 4 percent during 2004 to
end the year at $12.7 billion.
- For the twelve months ending December 31, 2004, SAIF’s comprehensive
income was $480 million. This is slightly lower than the $493 million reported
in 2003. This reduction is primarily due to lower earnings on U.S. Treasury
obligations of $6 million in 2004 when compared to last year.
- SAIF reported a decrease of $36 million in unrealized gains on available-for-sale
securities in 2004. This change can be attributed to the same Treasury
market conditions cited in the BIF analysis above.
FRF
- During 2004, the book value of FRF assets was reduced from $125
million to $64 million —a reduction of approximately 49 percent. In
2005, staff anticipates further reducing this balance by an additional
$30 million.
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For the twelve months ending December 31, 2004, FRF received $83
million in tax benefit sharing agreement collections. There are eight such
agreements remaining, down from 18 at the beginning of 2004.
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