Debt Ceiling: Analysis of Actions During the 2002 Debt Issuance Suspension Periods
GAO-03-134
Published: Dec 13, 2002. Publicly Released: Dec 13, 2002.
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Highlights
In connection with fulfilling our requirement to audit the financial statements of the U.S. government, we audit the Schedules of Federal Debt Managed by the Bureau of the Public Debt, which includes testing compliance with the debt ceiling. To assist us in this testing and because of the nature of and sensitivity towards actions taken during a debt issuance suspension period, we (1) developed a chronology of significant events, (2) analyzed the financial aspects of Treasury's actions taken during the debt issuance suspension periods and assessed the legal basis of these actions, and (3) analyzed the impact of the policies and procedures used by Treasury to manage the debt during the debt issuance suspension periods.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | The Secretary of the Treasury should direct the Undersecretary for Domestic Finance to document the necessary policies and procedures that should be used during any future debt issuance suspension period. Further, the document developed should clearly state which office is responsible for approving any modifications to the documented policies and procedures. |
Closed – Implemented
As of March 31, 2003, Treasury had prepared documented policies and procedures that were implemented during the February-May 2003 debt issuance suspension period (DISP). Furthermore, these policies and procedures identified the offices responsible for investment and redemption decisions during a DISP.
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Topics
Federal fund accountsFinancial managementPublic debtFederal employees retirement systemSecuritiesCivil serviceDebt ceilingTreasury securitiesData errorsBenefit payments