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entitled 'Financial Audit: Office of Financial Stability (Troubled 
Asset Relief Program) Fiscal Years 2014 and 2013 Financial Statements' 
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GAO-15-132R: 

United States Government Accountability Office: 
GAO:
441 G St. N.W. 
Washington, DC 20548: 

November 7, 2014: 

Congressional Committees: 

Financial Audit: Office of Financial Stability (Troubled Asset Relief 
Program) Fiscal Years 2014 and 2013 Financial Statements: 

This report transmits the GAO auditor's report on the results of our 
audits of the fiscal years 2014 and 2013 financial statements of the 
Office of Financial Stability (Troubled Asset Relief Program), which 
is incorporated in the enclosed Office of Financial Stability 
(Troubled Asset Relief Program) Agency Financial Report for Fiscal 
Year 2014. 

As discussed more fully in the auditor's report that begins on page 34 
of the enclosed agency financial report, we found: 

* the Office of Financial Stability's (OFS) financial statements for 
the Troubled Asset Relief Program (TARP) as of and for the fiscal 
years ended September 30, 2014, and 2013, are presented fairly, in all 
material respects, in accordance with U.S. generally accepted 
accounting principles; 

* OFS maintained, in all material respects, effective internal control 
over financial reporting for TARP as of September 30, 2014; and; 

* no reportable noncompliance for fiscal year 2014 with provisions of 
applicable laws, regulations, contracts, and grant agreements we 
tested. 

The Emergency Economic Stabilization Act of 2008 (EESA)[Footnote 1] 
that authorized TARP on October 3, 2008, requires that TARP, which is 
implemented by OFS,[Footnote 2] annually prepare and submit to 
Congress and the public audited fiscal year financial statements that 
are prepared in accordance with U.S. generally accepted accounting 
principles.[Footnote 3] EESA further requires that GAO audit TARP's 
financial statements annually.[Footnote 4] We are also required under 
EESA to report at least every 60 days on the findings resulting from 
our oversight of the actions taken under TARP.[Footnote 5] This report 
responds to both of these requirements. 

We are sending copies of this report to the Secretary of the Treasury, 
the Deputy Assistant Secretary for Financial Stability, the Financial 
Stability Oversight Board, the Special Inspector General for TARP, the 
Director of the Office of Management and Budget, interested 
congressional committees and members, and other interested parties. In 
addition, the report is available at no charge on the GAO website at 
[hyperlink, http://www.gao.gov]. 

If you or your staffs have questions about this report, please contact 
me at (202) 512-3406 or engelg@gao.gov. Contact points for our Offices 
of Congressional Relations and Public Affairs may be found on the last 
page of this report. 

Signed by: 

Gary T. Engel: 
Director: 
Financial Management and Assurance: 

Enclosure: 

Footnotes: 

[1] Pub. L. No. 110-343, div. A, 122 Stat 3765 (Oct. 3, 2008), 
classified in part, as amended, at 12 U.S.C. §§ 5201-5261. 

[2] Section 101 of EESA, 12 U.S.C. § 5211, established OFS within the 
Department of the Treasury to implement TARP. 

[3] EESA § 116(b), 12 U.S.C. § 5226(b). 

[4] EESA § 116(b), 12 U.S.C. § 5226(b). 

[5] EESA § 116(a)(3), 12 U.S.C. § 5226(a)(3). 

List of Committees: 

The Honorable Barbara A. Mikulski: 
Chairwoman: 
The Honorable Richard C. Shelby: 
Vice Chairman: 
Committee on Appropriations: 
United States Senate: 

The Honorable Tim Johnson: 
Chairman: 
The Honorable Mike Crapo: 
Ranking Member: 
Committee on Banking, Housing, and Urban Affairs: 
United States Senate: 

The Honorable Patty Murray: 
Chairman: 
The Honorable Jeff Sessions: 
Ranking Member: 
Committee on the Budget: 
United States Senate: 

The Honorable Ron Wyden: 
Chairman: 
The Honorable Orrin G. Hatch: 
Ranking Member: 
Committee on Finance: 
United States Senate: 

The Honorable Harold Rogers: 
Chairman: 
The Honorable Nita M. Lowey: 
Ranking Member: 
Committee on Appropriations: 
House of Representatives: 

The Honorable Paul Ryan: 
Chairman: 
The Honorable Chris Van Hollen: 
Ranking Member: 
Committee on the Budget: 
House of Representatives: 

The Honorable Jeb Hensarling: 
Chairman: 
The Honorable Maxine Waters: 
Ranking Member: 
Committee on Financial Services: 
House of Representatives: 

The Honorable Dave Camp: 
Chairman: 
The Honorable Sander Levin: 
Ranking Member: 
Committee on Ways and Means: 
House of Representatives: 

[End of section] 

The Department of the Treasury: Agency Financial Report: Office of 
Financial Stability: Troubled Asset Relief Program: Fiscal Year 2014: 

Figure: 2013 Certificate of Excellence: 

[Refer to PDF for image: snapshot of certificate] 

AGA Certificate of Excellence in Accountability Reporting: 

U.S. Department of the Treasury, Office of Financial Stability: 

In recognition of your outstanding efforts in preparing the Agency 
Financial Report and Summary of Performance and Financial Information 
for the fiscal year ending September 30, 2012. 

A Certificate of Excellence in Accountability Reporting is presented 
by AGA to federal government agencies whose Agency Financial Reports 
achieve the highest standards demonstrating accountability and 
communicating results. 

[End of figure] 

Table of Contents: 

Foreword: 

Message From The Deputy Assistant Secretary For Financial Stability: 

Executive Summary: 

Part 1: Management's Discussion and Analysis: 

Background, OFS Organization Structure and Programs: 

OFS Operational Goals: 

Operational Goal One: Complete the Wind-down of the Investment 
Programs: 

Capital Purchase Program: 

Targeted Investment Program: 

Asset Guarantee Program: 

Community Development Capital Initiative: 

Public Private Investment Program: 

Term Asset-Backed Securities Loan Facility: 

Small Business Administration 7(a) Securities Purchase Program: 

Automotive Industry Financing Program: 

American International Group (AIG) Investment Program: 

Operational Goal Two: Continue Helping Families in Need to Avoid 
Foreclosure: 

Operational Goal Three: Minimize Cost to Taxpayer: 

Operational Goal Four: Continue to Operate with the Highest Standards 
of Transparency, Accountability, and Integrity: 

Fiscal Year 2014 and 2013 Financial Summary and Cumulative Net Income: 

Systems, Controls, and Legal Compliance: 

Other Management Information, Initiatives, and Issues: 

Limitations of the Financial Statements: 

Part 2: Financial Report: 

Message From The Chief Financial Officer (Cf0): 

Government Accountability Office Auditor's Report: 

Appendix I: Management's Report on Internal Control Over Financial 
Reporting: 

Appendix II: OFS Response to Auditor's Report: 

Financial Statements: 

Notes To The Financial Statements: 

Required Supplementary Information: 

Part 3: Other Information (Unaudited): 

Section A - Schedule of Spending: 

Section B - IPIA (as amended by IPERA): 

Part 4: Appendices: 

Appendix A: TARP Glossary: 

Appendix B: Abbreviations and Acronyms: 

Websites: 

For the online version of this Report see [hyperlink, 
http://www.FinancialStability.gov] and search on Reports by Frequency, 
Yearly: 

Foreword: 

The Office of Management and Budget (OMB) Circular A-136 provides 
agencies with the guidance for reporting financial and performance 
information to Congress, the President, and the American people on an 
annual basis. In lieu of the consolidated Performance and 
Accountability Report (PAR), the U.S. Department of Treasury's 
(Treasury) Office of Financial Stability (OFS) has chosen to prepare a 
series of separate reports to provide the fiscal year 2014 financial 
and performance information for the Troubled Asset Relief Program 
(TARP). The following Agency Financial Report (AFR) is the first in 
this series of reports, and includes the following components: 

* Message from the Deputy Assistant Secretary: A statement from the 
Deputy Assistant Secretary providing his assessment of the reliability 
and completeness of the financial and performance data contained in 
the report, as well as a summary status of TARP programs. 

* Management's Discussion and Analysis: This section contains summary 
information about the history of TARP and the mission and 
organizational structure of OFS; background and analysis of OFS 
programs and Operational Goals; and analysis of financial statements, 
systems, controls, and legal compliance, including the Deputy 
Assistant Secretary's Statement of Assurance. 

* Financial Report: This section provides a message from the Chief 
Financial Officer; the Report of the Independent Auditors; the 
financial statements; the notes to the financial statements; and other 
statutory reporting. 

* Other Information: This section includes the Schedule of Spending 
and information regarding the Improper Payments Information Act (IPIA). 

In addition to this AFR, the performance section of the OFS fiscal 
year 2016 Congressional Budget Justification and the Citizens' Report 
satisfy the reporting requirements of the following major legislation: 

* Reports Consolidation Act of 2000; 

* Government Performance and Results Act of 1993 (GPRA) and GPRA 
Modernization Act of 2010; 

* Government Management Reform Act of 1994 (GMRA); 

* Federal Managers' Financial Integrity Act of 1982 (FMFIA); 

* Federal Financial Management Improvement Act of 1996 (FFMIA); 

* Improper Payments Information Act of 2002 (IPIA), as amended by the 
Improper Payments Elimination and Recovery Act of 2010 (IPERA). 

These reports will be available on the OFS website at: [hyperlink, 
http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/default.aspx]. 

[End of section] 

Message From The Deputy Assistant Secretary For Financial Stability: 

[Photograph of Timothy J. Bowler] 

November 5, 2014: 

I am pleased to present the Office of Financial Stability's (OFS) 
Agency Financial Report for the Fiscal Year 2014. This report 
describes our financial and performance results for the sixth year of 
the Troubled Asset Relief Program (TARP). Within this report you will 
find the comparative fiscal years 2014 and 2013 financial statements 
for TARP, and the Government Accountability Office's (GAO) auditor's 
report with the audit opinion on these financial statements, an 
opinion from GAO on OFS's internal control over financial reporting 
for TARP, and the results of the GAO's tests of OFS's compliance with 
selected provisions of laws, regulations, contracts, and grant 
agreements applicable to OFS. 

The Emergency Economic Stabilization Act (EESA) of 2008 established 
OFS within the Office of Domestic Finance at the Department of the 
Treasury (Treasury) to implement TARP. With the nation in the midst of 
the worst financial crisis since the Great Depression, TARP was 
created to "restore the liquidity and stability of the financial 
system." It was an extraordinary response to an extraordinary crisis. 

Today, it is generally agreed that as a result of the forceful and 
coordinated response by the federal government through TARP and many 
other emergency programs, we helped avert what could have been a 
devastating collapse of our financial system. Although we are still 
repairing the damage from the crisis and many families still face 
challenges on a daily basis, the financial system is much more stable 
and our economy is growing, albeit not as fast as we would like. 
Credit is more available than would otherwise be the case for 
families, businesses, and local governments, banks are better 
capitalized, and we are implementing reforms to address the underlying 
causes of the crisis. 

OFS has made significant progress towards winding down TARP 
investments. As of September 30, 2014, OFS had collected 103 percent 
of the $412.1 billion in program funds that were disbursed under TARP 
investment programs, as well as an additional $17.5 billion from 
Treasury's equity stake in AIG. Here is where we stand concerning the 
four categories of TARP investment programs: 

* Banking Programs. OFS has collected more than $275.0 billion 
(including $1.7 billion collected in fiscal year 2014) for all TARP 
bank support programs through repayments, sales, dividends, interest, 
and other income compared to $245.5 billion invested. As of September 
30, 2014, $1.1 billion in banking program investments remained 
outstanding, primarily in community banks, and OFS is continuing to 
wind-down these investments through repurchases by banks and asset 
sales. 

* Credit Market Programs. OFS has substantially completed the wind-
down of all of the TARP credit market programs, including investments 
made under the Public-Private Investment Program (PPIP), Term Asset-
Backed Securities Loan Facility (TALF) program, and SBA 7(a) 
Securities Purchase Program. As of the end of fiscal year 2014, OFS 
collected $23.6 billion as compared to $19.1 billion of disbursements 
under these programs. 

* Auto Industry Financing Program. As of September, 30 2014, OFS 
collected $68.9 billion through sales, repayments, dividends, 
interest, and other income, compared to the $79.7 billion in funds 
that were disbursed under the Automotive Industry Financing Program 
(AIFP). Chrysler exited the program in July 2011 and the wind-down of 
the General Motors (GM) stake was completed in December 2013. In 
November 2013, OFS received a repayment of $5.9 billion from Ally 
Financial Inc. (Ally) under an agreement announced in August 2013. In 
January 2014, OFS collected $3.0 billion from a sale of Ally stock to 
private investors. The company executed a successful initial public 
offering in April 2014, which brought in $2.4 billion in proceeds on 
behalf of taxpayers, plus $181 million associated with the over-
allotment option that was exercised in May 2014. OFS has since begun 
selling its remaining stake through a series of pre-defined written 
trading plans. As of September 30, 2014, OFS collected approximately 
$18.1 billion on the Ally investment, roughly $923 million more than 
the original $17.2 billion investment. 

* American International Group. In fiscal year 2013, OFS exited all 
remaining holdings in American International Group, Inc. (AIG). During 
the financial crisis, the peak amount of assistance provided by OFS 
and the Federal Reserve to prevent the collapse of AIG totaled $182.3 
billion, a part of which was later canceled. As a result of the 
combined efforts of AIG, Treasury, and the Federal Reserve, $22.7 
billion in excess of the total of funds disbursed to AIG has been 
recovered through sales and other income. Of the $67.8 billion total 
disbursed to AIG by OFS, TARP's cumulative net collections from 
repayments, sales, dividends, interest, and other income related to 
AIG assets totaled $55.3 billion. Treasury's non-TARP AIG shares 
generated proceeds in excess of cost of $17.5 billion, resulting in 
net proceeds in excess of cost of $5.0 billion for Treasury as a whole. 

While OFS carefully winds down the investment programs under TARP, we 
are continuing to implement the TARP Housing Programs to help millions 
of struggling homeowners avoid foreclosure, primarily through mortgage 
modifications and other forms of assistance. These programs (which 
includes government sponsored enterprise (GSE) and non-GSE programs) 
have also set new mortgage modification and consumer protection 
standards which have helped to transform the mortgage servicing 
industry and thereby helped millions more families. On June 26, 2014, 
the Obama Administration announced the extension of the application 
deadline for the Making Home Affordable Program through at least 
December 2016 in order to provide struggling homeowners additional 
time to access sustainable mortgage relief. 

The financial and performance data contained in this report are 
reliable and complete. For the sixth consecutive year, OFS has earned 
unmodified opinions on its financial statements for TARP and its 
internal control over financial reporting for TARP from the GAO. In 
2014, OFS was also awarded its fifth consecutive Certificate of 
Excellence in Accountability Reporting by the Association of 
Government Accountants. 

Sincerely, 

Signed by: 

Timothy J. Bowler: 
Deputy Assistant Secretary for Financial Stability: 

[End of section] 

Executive Summary: 

Six years ago, the U.S. financial system faced challenges on a scale 
not seen since the Great Depression. The banks and financial markets, 
that American families and businesses rely on to meet their everyday 
financing needs, were on the brink of failure. By October 2008, major 
financial institutions of all sizes were threatened and many of them 
tried to shore up their balance sheets by shedding risky assets and 
hoarding cash. People were rapidly losing trust and confidence in the 
stability of America's financial system and the capacity of the 
government to contain the damage. Without immediate and forceful 
action by Congress and the federal government, the U.S. economy faced 
the risk of falling into a second Great Depression. 

It was out of these extraordinary circumstances that TARP and OFS were 
created. They were a central part of the emergency measures taken by 
the federal government pursuant to the Emergency Economic 
Stabilization Act of 2008 (EESA). Collectively, TARP and the federal 
government's other emergency programs helped to prevent the collapse 
of our financial system. As a result of the careful design, 
implementation, and coordination of these programs, the federal 
government was able to limit the broader financial and economic damage 
caused by the crisis. Although we are still recovering, these measures 
were critical to restarting economic growth, and in restoring access 
to capital and credit. 

Since late 2010 when OFS's authority to make new commitments under 
TARP expired, OFS has focused on carefully winding down TARP's 
investment programs, recovering the OFS's outstanding investments, and 
continuing to implement the various housing programs under TARP to 
help struggling homeowners avoid foreclosure. While the total 
disbursed for TARP programs was $425.9 billion, OFS has collected 
$422.9 billion (or $440.4 billion if including the $17.5 billion in 
proceeds from the additional Treasury AIG shares discussed on page 13) 
through repayments, sales, dividends, interest, and other income. As 
of September 30, 2014, only $2.9 billion in investments remain 
outstanding. 

The MD&A highlights the establishment of OFS, its background, mission, 
organizational structure, and programs. OFS administers programs that 
fall into two major categories: Investments and Housing. In total, OFS 
had responsibility for 12 individual programs. Most of these programs 
have either been closed or are in the process of winding down. 

Each year, OFS reports on our Operational Goals, which were developed 
by management to achieve our strategic goal to promote domestic 
economic growth and stability while continuing reforms of the 
financial system. The first operational goal for OFS is to complete 
the wind-down of the TARP investment programs. OFS is continuing to 
implement the three-pronged exit strategy announced in May 2012 for 
the Capital Purchase Program (CPP). That strategy includes waiting for 
those banks that are able to repay in full in the near future to do 
so, restructuring OFS's investments in limited cases, and selling 
investments through auctions in cases where the bank is not expected 
to repay in the near future. As of September 30, 2013, both the 
Targeted Investment Program (TIP) and the Asset Guarantee Program 
(AGP) were closed and had generated positive returns on behalf of 
taxpayers. 

As of September 30, 2014, OFS has substantially completed the wind-
down of the three TARP credit market programs which resulted in a 
positive return on behalf of taxpayers. OFS has recovered all debt and 
equity investments made in the Public-Private Investment Program 
(PPIP). OFS's $100 million loan made through the Term Asset-Backed 
Securities Loan Facility (TALF) was fully repaid or extinguished 
during fiscal year 2013. The Small Business Administration 7(a) 
Securities Purchase Program (SBA 7(a)) was successfully closed during 
fiscal year 2012. 

OFS continued to wind down the Automotive Industry Financing Program 
(AIFP) during fiscal year 2014. OFS sold the remaining 101 million 
shares of GM common stock in accordance with the plan announced in 
December 2012, completing the wind-down of OFS's investment in GM. In 
November 2013, per an August 2013 agreement, OFS collected a total of 
$5.9 billion from Ally to repurchase all of its Mandatory Convertible 
Preferred (MCP) stock from OFS and to eliminate certain rights under 
the original agreement. OFS collected $3.0 billion from a sale of Ally 
stock to private investors in January 2014, almost $2.4 billion from 
Ally's initial public offering (IPO) in April 2014, and $181 million 
associated with the over-allotment option that was exercised in May 
2014. OFS is actively seeking to wind down the remaining Ally 
investment and on August 14, 2014, commenced the disposition of a 
portion of the remaining 75 million common shares of Ally common stock 
through a series of pre-arranged written trading plans. 

OFS exited its remaining holdings in the American International Group, 
Inc. (AIG) Investment Program in December 2012 and sold the remaining 
warrants in March 2013. As of September 30, 2013, OFS did not hold any 
residual interest in AIG. 

OFS's second operational goal is to continue helping struggling 
homeowners avoid foreclosure. The Making Home Affordable Program (MHA) 
is helping homeowners and assisting in stabilizing the housing market. 
On June 26, 2014, the Administration extended the application deadline 
for MHA programs for at least one additional year through 2016, in 
order to provide struggling homeowners additional time to access 
sustainable mortgage relief. The largest program within MHA is the 
Home Affordable Modification Program (HAMP). Under this program more 
than 1.4 million homeowners have had their mortgages modified 
permanently. HAMP has also set new standards and changed practices 
throughout the mortgage servicing industry in fundamental ways. 

In addition, the Hardest Hit Fund (HHF) provides funding to 18 states 
and the District of Columbia to provide assistance to struggling 
homeowners through locally-tailored programs. All 19 HHF programs are 
fully operational and have created extensive infrastructures including 
selecting and training networks of housing counselors to assist with 
applications, creating portals to aid homeowners in applying for 
assistance, and hiring underwriters and other staff to review and 
approve applications. Six states and the District of Columbia have 
closed their HHF application portals in anticipation of full 
commitment of program funds. 

The third operational goal of OFS is to minimize the cost of the TARP 
programs to the taxpayer. OFS manages TARP investments to minimize 
costs to taxpayers by carefully managing the timely exit of these 
investments to reduce taxpayers' exposure, returning TARP funds to 
reduce the federal debt, and continuing to replace government 
assistance with private capital in the financial system. OFS also 
takes steps to ensure that TARP recipients comply with any TARP-
related statutory or contractual obligations such as executive 
compensation requirements and restrictions on dividend payments. 

OFS's final operational goal is to continue to operate with the 
highest standards of transparency, accountability, and integrity. OFS 
posts a variety of reports online that provide taxpayers with regular 
and comprehensive information about how TARP funds are being spent, 
who has received them and on what terms, and how much has been 
collected to date. In addition to discussing program performance, the 
MD&A also addresses OFS's financial performance in the Fiscal Year 
2014 and 2013 Financial Summary and Cumulative Net Income section. OFS 
provides an overview of its financial data and explains its fiscal 
year 2014 net income from operations and related loans, equity 
investments and other credit programs. 

Finally, the Systems, Controls, and Legal Compliance section of the 
MD&A provides a discussion of the actions OFS has taken to address its 
management control responsibilities. This section includes OFS's 
assurance related to the Federal Manager's Financial Integrity Act, 
the determination of its compliance with both the Federal Financial 
Management Improvement Act and the Improper Payment Elimination and 
Recovery Act. 

[End of section] 

Part 1: Management's Discussion and Analysis: 

Background, OFS Organization Structure and Programs: 

Background: 

In response to the worst financial crisis since the Great Depression, 
the Troubled Asset Relief Program (TARP) was created pursuant to the 
Emergency Economic Stabilization Act (EESA) on October 3, 2008. To 
carry out the authorities given to the Secretary of the Treasury to 
implement TARP, the U.S. Department of the Treasury (Treasury) 
established the Office of Financial Stability (OFS) within the Office 
of Domestic Finance. EESA authorized the Secretary of the Treasury to 
establish TARP to "purchase, and to make and fund commitments to 
purchase, troubled assets from any financial institution, on terms and 
conditions as are determined by the Secretary" to restore the 
liquidity and stability of the financial system. The terms "troubled 
assets" and "financial institution" are defined within EESA, which can 
be found at: [hyperlink, http://www.gpo.gov/fdsys/pkg/BILLS-
110hr1424enr/pdf/BILLS-110hr1424enr.pdf]. 

In addition, Section 109 of EESA provides authority to assist 
homeowners. 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the 
Dodd-Frank Act), signed into law in July 2010, reduced total TARP 
purchase authority from $700 billion to a cumulative $475 billion. 
OFS's authority to make new commitments under TARP expired on October 
3, 2010. OFS is carefully managing the disposition of TARP financial 
assets to recover OFS's outstanding investments while continuing to 
implement initiatives to help struggling homeowners avoid foreclosure. 

OFS Organization Structure: 

OFS is currently headed by the Deputy Assistant Secretary for 
Financial Stability. 

Reporting to the Deputy Assistant Secretary are five major 
organizations the: Office of the Chief Investment Officer, Office of 
Finance and Operations, Office of the Chief Home Ownership 
Preservation Officer, Office of Financial Agents, and Office of the 
Chief Compliance Officer. A Chief Counsel's Office also reports to the 
Deputy Assistant Secretary and to the Office of the General Counsel in 
the Department of the Treasury. 

The OFS organization chart follows: 

Top level: 
Deputy Assistant Secretary for Financial Stability: 
* Office of Financial Agents; 
* Chief Counsel. 

Second level, reporting to Deputy Assistant Secretary for Financial 
Stability: 
* Office of Finance and Operations; 
* Office of the Chief Home Ownership Preservation Officer; 
* Office of the Chief Investment Officer; 
* Office of the Chief Compliance Officer. 

OFS is not envisioned as a permanent organization, so to the maximum 
extent possible when economically efficient and appropriate, OFS 
utilizes private sector expertise in support of the execution and 
liquidation of TARP programs. These firms assist in the areas of 
custodial services, accounting and internal controls, administrative 
support, legal advisory, financial advisory, and information 
technology. 

OFS Programs: 

Bank Support Programs (CPP, TIP, AGP, CDCI, CAP, SCAP): 

By late September 2008, several major financial institutions had 
already failed. Many others were at risk of failure and people were 
rapidly losing confidence in the nation's financial system as a whole. 
Therefore beginning in early October 2008, OFS launched five bank 
support programs to help stabilize the nation's banking institutions. 

Capital Purchase Program: 

The Capital Purchase Program (CPP) was launched in October 2008 to 
help stabilize the financial system by providing capital to viable 
financial institutions of all sizes throughout the nation. Without a 
viable banking system, lending to businesses and consumers could have 
frozen and the financial crisis might have spiraled further out of 
control. Based on market indicators at the time, it was clear that 
financial institutions needed additional capital to absorb losses and 
restart the flow of credit. 

With the additional capital, CPP participants were better equipped to 
undertake new lending and continue to provide other services to 
consumers and businesses, even while absorbing write-downs and charge-
offs on non-performing assets. OFS received preferred stock or 
subordinated debt securities in exchange for the CPP investments. Most 
financial institutions participating in the CPP initially paid OFS a 
five percent dividend on preferred shares for the first five years and 
a nine percent rate thereafter. In addition, OFS received warrants to 
purchase common shares or other securities from the banks at the time 
of the CPP investment. The purpose of the additional securities was to 
enable OFS to receive additional returns on its investments as banks 
recovered. 

OFS has focused on winding down the CPP according to the exit strategy 
announced on May 3, 2012. That strategy includes a combination of 
repayments in the case of banks which are expected to repay in the 
near future, selling OFS's positions in banks that are unlikely to 
repay in the near-term through auctions, and restructuring some 
investments, typically in connection with a merger or other plan of 
the bank to infuse capital. 

Targeted Investment Program: 

OFS established the Targeted Investment Program (TIP) in December 
2008. The program gave OFS the necessary flexibility to provide 
funding to financial institutions that were critical to the 
functioning of the U.S. financial system. 

OFS invested a total of $40.0 billion in two institutions - Bank of 
America (BofA) and Citigroup - under the TIP. Similar to the CPP, OFS 
invested in preferred stock and received warrants to purchase common 
stock in each institution. 

The TIP investments provided for annual dividends of eight percent. 
The program also imposed greater reporting requirements and more 
onerous terms on the companies than under the CPP terms, including 
restricting common stock dividends to $0.01 per share per quarter, 
restrictions on executive compensation, restrictions on corporate 
expenses, and other measures. 

Asset Guarantee Program: 

Under the Asset Guarantee Program (AGP), TARP commitments were used to 
support two institutions - BofA and Citigroup. They were selected 
because of the large number of illiquid assets that both of them held 
at the time of the financial crisis and the severe impact that their 
failure would have had on the broader economy. In January 2009, OFS, 
the Federal Reserve, and the Federal Deposit Insurance Corporation 
(FDIC) agreed in principle to share potential losses on a $118 billion 
pool of financial instruments owned by BofA. However, in May 2009, 
before the transaction was finalized, BofA decided to terminate 
negotiations, and in September 2009, the government and BofA entered 
into an agreement under which the bank agreed to pay a termination fee 
of $425 million to the government, $276 million of which went to OFS. 
In January 2009, OFS, the Federal Reserve, and the FDIC similarly 
agreed to share potential losses on a $301 billion pool of Citigroup's 
covered assets. The arrangement was finalized and, as a premium for 
the guarantee, OFS and the FDIC received $7.0 billion of Citigroup 
preferred stock of which $4.0 billion was OFS's portion (which was 
reduced by $1.8 billion upon termination of the agreement). OFS also 
received warrants to purchase 66.5 million shares of common stock. 

Community Development Capital Initiative: 

OFS created the Community Development Capital Initiative (CDCI) on 
February 3, 2010, to help viable certified Community Development 
Financial Institutions (CDFIs) and the communities they serve cope 
with effects of the financial crisis. It was put in place to help keep 
day-to-day financing available to families and businesses in hard-hit 
communities that are underserved by traditional banks. 

Since many CDFIs don't have the same access to capital markets as 
larger banks, the CDCI was designed with more generous terms than the 
CPP. Under this program, CDFI banks, thrifts, and credit unions 
received investments aggregating $570 million in capital with an 
initial dividend or interest rate of two percent, compared to the five 
percent rate offered under the CPP. To encourage repayment while 
recognizing the unique circumstances facing CDFIs, the dividend rate 
increases to nine percent after eight years, compared to after five 
years under the CPP. CDFIs that participated in the CPP and were in 
good standing were allowed to exchange their CPP securities for 
securities under the more favorable terms of this program. 

Capital Assistance Program (CAP) and the Supervisory Capital 
Assessment Program (SCAP): 

In 2009, Treasury worked with federal banking regulators to develop a 
comprehensive "stress test" known as the Supervisory Capital 
Assessment Program (SCAP). The purpose of the SCAP was to determine 
the health of the nation's 19 largest bank holding companies with 
unprecedented transparency and help restore confidence in the banking 
system. In conjunction with the SCAP, Treasury announced that it would 
provide capital under TARP through the Capital Assistance Program 
(CAP) to those institutions that needed additional capital but were 
unable to raise it through private sources. The CAP closed on November 
9, 2009, without making any investments. 

For additional information on the bank support programs please visit 
the OFS website at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/bank-investment-programs/Pages/default.aspx]. 

Credit Market Programs (PPIP, TALF, SBA 7(a)): 

As the financial crisis reached its peak, banks were not making new 
loans to businesses, or even to one another. As a result, many 
businesses could not get loans for new investments, municipalities and 
state governments could not issue bonds at reasonable rates, and 
families could not get credit. The securitization markets--which 
provide financing for credit cards, student loans, auto loans, and 
other consumer loans as well as small business loans--had basically 
stopped functioning. OFS launched three programs in 2009 to help 
unfreeze these markets and bring down the cost of borrowing for 
families and businesses: the Public-Private Investment Program (PPIP), 
the Term Asset-Backed Securities Loan Facility (TALF), and the SBA 
7(a) Securities Purchase Program. Although the specific goals and 
implementation methods of each program differed, the overall goal of 
these three programs was the same--to restart the flow of credit to 
meet the critical needs of small businesses and consumers. 

Public-Private Investment Program: 

On March 23, 2009, OFS launched the Legacy Securities Public-Private 
Investment Program (PPIP) to help restart the market for non-agency 
residential mortgage-backed securities (RMBS) and commercial mortgage-
backed securities (CMBS). 

The purpose of PPIP was to draw new private capital into the market 
for legacy RMBS and CMBS by providing financing on attractive terms as 
well as a matching equity investment from OFS. Using up to $22.1 
billion of TARP funds alongside equity capital raised from private 
investors, PPIP was designed to generate significant purchasing power 
and demand for troubled RMBS and CMBS. 

Term Asset-Backed Securities Loan Facility: 

The Term Asset-Backed Securities Loan Facility (TALF) was a joint OFS-
Federal Reserve program that was designed to restart the asset-backed 
securities (ABS) and commercial mortgage-backed securities (CMBS) 
markets that had ground to a virtual standstill during the early 
months of the financial crisis. 

Under the TALF, the Federal Reserve Bank of New York (FRBNY) provided 
non-recourse funding to any qualified borrower that owned eligible 
collateral. On fixed days each month, borrowers were allowed to 
request three-year, or in certain cases, five-year TALF loans. If the 
borrower did not repay the loan, the FRBNY would enforce its rights to 
the collateral and sell it to TALF, LLC-a special purpose vehicle 
(SPV) established specifically to purchase and manage these assets. 
OFS initially committed $20.0 billion in subordinated loans to the SPV 
but did not directly lend to TALF borrowers. 

Small Business Administration 7(a) Securities Purchase Program: 

OFS launched the Small Business Administration (SBA) 7(a) Securities 
Purchase Program to help facilitate the recovery of the secondary 
market for small business loans, and thus help free up credit for 
small businesses. Under this program, OFS purchased securities 
comprised of the guaranteed portion of SBA 7(a) loans, which finance a 
wide range of small business needs. OFS invested approximately $367 
million in 31 SBA 7(a) securities between March and September 2010. 
These securities were comprised of 1,001 loans from 17 different 
industries, including retail, food services, manufacturing, scientific 
and technical services, healthcare, and educational services. 

For additional information on the credit market programs, please visit 
the OFS website at: [hyperlink, 
http://www.treasury.gov/initiatives/financial-stability/TARP-
Programs/credit-market-programs/Pages/default.aspx]. 

Automotive Industry Financing Program (AIFP): 

The Automotive Industry Financing Program (AIFP) was launched in 
December 2008 to help prevent the disorderly liquidations of General 
Motors (GM) and Chrysler, and thus significant disruption of the U.S. 
auto industry. The potential for such a disruption at that time 
threatened the overall economy as it could have led to a loss of as 
many as one million American jobs. Recognizing that both GM and 
Chrysler were on the verge of collapse, OFS extended loans to both 
companies and their financing entities. 

In 2009, OFS agreed to provide additional funds conditioned on each 
company and its stakeholders participating in a fundamental 
restructuring. Sacrifices were made by unions, dealers, creditors and 
other stakeholders, and the restructurings were achieved through 
bankruptcy court proceedings in record time. In total OFS disbursed 
$79.7 billion in loans and equity investments to GM, Chrysler, and 
General Motors Acceptance Corporation (now known as Ally Financial). 
As a result, General Motors Company (New GM), Chrysler Group LLC (New 
Chrysler), and Ally are more competitive and viable companies, 
supporting American jobs and the economy. Operating results have 
improved, the industry added jobs, and TARP investments have largely 
been repaid. 

For additional information on the AIFP, please visit the OFS website 
at: [hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/automotive-programs/Pages/default.aspx]. 

American International Group, Inc. (AIG) Investment Program: 

On September 15, 2008, Lehman Brothers filed for bankruptcy. This 
triggered the start of a run on money market funds generally. The day 
after that, AIG - one of the largest and most complex financial firms 
in the world - was on the verge of failure. Confidence was already 
fragile in the financial system as a whole and firms were trying to 
shore up their balance sheets by selling risky assets, reducing 
exposure to other financial institutions, and hoarding cash. At the 
time, AIG was one of the most complex financial firms in the world. 
When the financial crisis hit, AIG had hundreds of billions of dollars 
in commitments without the capital and liquidity to back them up. 
Millions of people depended on AIG for their life savings and it had a 
huge presence in many critical financial markets, including municipal 
bonds. Therefore, with AIG facing potentially fatal liquidity problems 
and with the crisis threatening to intensify and spread more broadly 
throughout the economy, OFS and the Federal Reserve provided 
assistance to AIG. 

During this time, the Federal Reserve and OFS took a series of steps 
to prevent AIG's disorderly failure and mitigate systemic risks. The 
initial assistance to AIG was provided by the FRBNY before the passage 
of EESA. After EESA became law, OFS and the FRBNY continued to work 
together to address the challenges posed by AIG. In 2008 and 2009, OFS 
funds were used to provide further support to AIG. In fiscal year 
2011, OFS, the FRBNY, the trustees of the AIG Credit Facility Trust 
(the Trust)1[Footnote 1] and AIG completed a restructuring of the 
assistance provided by OFS and the FRBNY. A series of integrated 
transactions and corporate actions were executed to accelerate the 
repayment of taxpayer funds and to promote AIG's transition from a 
majority government owned and supported entity to a financially sound 
and independent entity. 

For additional information on the AIG Investment Program, please visit 
the Office of Financial Stability website at: [hyperlink, 
http://www.treasury.gov/initiatives/financial-stability/TARP-
Programs/aig/Pages/default.aspx]. 

Housing Programs: 

OFS established several housing programs under TARP to address the 
historic housing crisis and help struggling homeowners avoid 
foreclosure wherever possible. These programs have helped homeowners 
avoid foreclosure and introduced important new reforms for the 
mortgage servicing industry to help make mortgage modifications become 
more sustainable and affordable. 

Making Home Affordable (MHA): 

In early 2009, OFS launched the Making Home Affordable® Program (MHA) 
to help struggling homeowners avoid foreclosure and stabilize the 
housing market. MHA is only one part of the Administration's broader 
efforts to strengthen the housing market. OFS has committed $29.8 
billion under the MHA program. 

MHA is aimed at helping homeowners who are experiencing financial 
hardships remain in their homes until their financial position 
improves or they relocate to a more sustainable living situation. At 
the same time, MHA protects the interests of taxpayers by disbursing 
funds only when transactions are completed and only as long as those 
contracts remain in place. Therefore, funds will be disbursed over 
many years. 

The cornerstone of MHA is the Home Affordable Modification Program 
(HAMP), which provides eligible homeowners the opportunity to reduce 
their monthly mortgage payments to more affordable and sustainable 
levels, so they can avoid the pain and substantial cost of 
foreclosure. In addition to HAMP, OFS introduced programs under MHA to 
help homeowners who are unemployed, "underwater" on their loan (i.e. 
those who owe more on their home than it is currently worth), or are 
struggling with a second lien. MHA also includes options for 
homeowners who would like to transition to a more affordable living 
situation through a short sale or deed-in-lieu of foreclosure. 

In early 2012, the Administration announced a one-year extension and 
important enhancements to MHA that expanded the pool of eligible 
borrowers. Extending the reach of HAMP facilities assists a broader 
pool of struggling homeowners, offering support for tenants at risk of 
displacement due to foreclosure, and providing more robust relief to 
those who participate. On May 30, 2013, the Administration extended 
the application deadline for MHA programs to December 31, 2015, and 
then on June 26, 2014, the Administration announced that the 
application deadline would be extended at least a year to December 31, 
2016. Extending the program will benefit additional families while 
maintaining clear standards and accountability for the servicing 
industry. 

MHA has set new standards for mortgage assistance and consumer 
protection, which have contributed to millions of homeowners receiving 
assistance to avoid foreclosure through other government programs and 
proprietary mortgage modifications. 

In addition to HAMP, MHA includes additional programs to help 
homeowners address specific types of mortgages, in conjunction with 
the Federal Housing Administration (FHA), and the United States 
Department of Agriculture (USDA). 

Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit 
Housing Markets (Hardest Hit Fund): 

The Administration established the Hardest Hit Fund in February 2010 
to provide targeted aid to homeowners in states hit hardest by the 
economic and housing market downturn. As part of the Administration's 
overall strategy for restoring stability to housing markets, the 
Hardest Hit Fund provides funding for state Housing Finance Agencies 
(HFAs) to develop locally-tailored foreclosure prevention solutions in 
areas that have been hardest hit by home price declines and high 
unemployment. From its initial announcement, this program evolved from 
a $1.5 billion initiative focused on HFAs in the five states with the 
steepest home price declines to a broader-based $7.6 billion 
initiative encompassing 18 states and the District of Columbia (DC). 

Hardest Hit Fund programs vary state to state, but may include such 
programs as mortgage payment assistance for unemployed or 
underemployed homeowners, principal reduction to help homeowners get 
into more affordable mortgages, funding to eliminate homeowners' 
second lien loans, funding for blight elimination activities, and help 
for homeowners who are transitioning out of their homes and into more 
affordable living situations. 

For additional information on the housing programs, please visit the 
OFS website at: [hyperlink, 
http://www.treasury.gov/initiatives/financial-stability/TARP-
Programs/housing/Pages/default.aspx]. 

Footnote: 

[1] The independent trust established to manage the Department of the 
Treasury's beneficial interest in Series C preferred AIG shares. 

[End of section] 

OFS Operational Goals: 

OFS's Operational Goals were developed by management to achieve our 
strategic objective to wind down emergency financial crisis response 
programs under our strategic goal to promote domestic economic growth 
and stability while continuing reforms of the financial system. The 
following discussion of OFS operational goals focuses largely on the 
significant events that occurred during fiscal years 2014 and 2013. 

Operational Goal One: Complete the Wind-down of the Investment 
Programs: 

Banking Support Programs: 

OFS disbursed a total of $245.5 billion under the various TARP bank 
programs. As of September 30, 2014, OFS has collected more than $275.0 
billion through repayments, dividends, interest, warrant sales, and 
other income, representing $29.5 billion in excess of disbursements. 
OFS is focused on recovering TARP funds in a manner that continues to 
promote the nation's financial stability while maximizing returns on 
behalf of the taxpayers. 

Capital Purchase Program: 

In fiscal year 2014, OFS continued to make substantial progress 
winding down the CPP according to the three-pronged exit strategy 
announced in May 2012. Each dollar collected from CPP participants now 
represents an additional positive return on behalf of taxpayers. From 
inception of the program through September 30, 2014, OFS has received 
$199.4 billion in CPP repayments/sales, along with $12.1 billion in 
dividends and interest, and $14.9 billion of proceeds in excess of 
cost totaling $226.4 billion. As of September 30, 2014, $625: 

million in CPP gross investments remained outstanding. 

Under this program, OFS provided capital to 707 financial institutions 
in 48 states, Puerto Rico, and DC, including more than 450 small and 
community banks and 22 CDFIs. The largest investment was $25.0 billion 
and the smallest was $301,000. 

OFS received preferred stock or debt in each bank in which it made an 
investment, as well as warrants. Under the terms of the CPP, 
participating financial institutions may repay the funds they received 
at any time, so long as they have the approval of their regulators. 

Throughout fiscal year 2014, OFS continued to implement the CPP exit 
strategy by periodically selling preferred stock and subordinated debt 
in CPP participants through private auctions. OFS held six auctions 
with combined proceeds of $289 million during fiscal year 2014 
compared to 14 auctions with $1.5 billion in proceeds in fiscal year 
2013. During fiscal year 2014 and 2013, 62 and 173 investments were 
repaid or sold for a total of $1.5 billion and $4.8 billion, 
respectively. 

Another component of OFS's exit strategy for the CPP is to restructure 
certain investments in limited cases. This is typically done in 
connection with a merger or the bank's plan to raise new capital and 
is generally proposed by the bank. 

Under the CPP, OFS has also received warrants to purchase common 
shares or other securities from the banks. OFS has followed a policy 
of disposing of warrants as soon as practicable if no agreement is 
reached on a repurchase. As of September 30, 2014, OFS has collected 
$8.0 billion in net proceeds from the sale of warrants since inception. 

Additional information on the CPP, including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/bank-investment-
programs/cap/Pages/default.aspx]. 

Targeted Investment Program: 

OFS completed the wind-down of the TIP in December 2009 when both BofA 
and Citigroup repaid their TIP investments in full. This resulted in 
net proceeds of $4.4 billion in excess of disbursements. Additional 
information on TIP, including details on the program's purpose, 
overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/bank-investment-
programs/tip/Pages/default.aspx]. 

Asset Guarantee Program: 

OFS completed the wind-down of the AGP in February 2013, and received 
more than $4.1 billion in proceeds from the AGP without disbursing any 
claim payments. Additional information on the AGP, including details 
on the program's purpose, overview, and status can be found at the 
following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/bank-investment-
programs/agp/Pages/default.aspx]. 

Community Development Capital Initiative: 

Unlike the CPP, OFS did not take substantial actions during fiscal 
year 2014 to wind-down the CDCI because of the unique circumstances 
facing participating institutions. In particular, many CDCI 
participants lack the same access to capital markets that CPP 
institutions have, making it more challenging for them to repay the 
TARP investments in their institutions. 

OFS completed funding through this program in September 2010 with a 
total investment amount of $570 million for 84 institutions. Of this 
amount, $363 million (nearly $356 million from principal and nearly $8 
million from warrants) represented exchanges by 28 CPP institutions 
converting into the CDCI. During fiscal years 2014 and 2013, OFS 
collected a total of $20 million and $97 million, respectively, in 
repayments, dividends and interest from institutions in the CDCI 
program. As of September 30, 2014, $465 million in CDCI investments 
remained outstanding. 

OFS will continue to closely monitor the performance of the CDCI and 
make decisions regarding the program's wind-down at a later date. 
Additional information on CDCI, including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/bank-investment-
programs/cdci/Pages/default.aspx]. 

Credit Market Programs: 

OFS has now substantially completed the wind-down of all three credit 
market programs that were launched under TARP. A total of $19.1 
billion was disbursed through these programs and a total of $23.6 
billion has been collected through September 30, 2014. 

Public Private Investment Program: 

OFS substantially completed the wind-down of the PPIP during fiscal 
year 2013, with no debt or equity investments outstanding after the 
final outstanding equity repayment was made in June 2013. During 
fiscal year 2014, OFS received termination notices from five Public 
Private Investment Funds (PPIFs), leaving only 1 of the original 9 
PPIFs in the process of winding down as of September 30, 2014. From 
inception of the program through September 30, 2014, OFS has received 
$2.4 billion in interest and investment income and $1.5 billion in net 
proceeds in excess of cost. The total of $22.5 billion of repayments, 
sales, and investment income exceeds the original investment by $3.9 
billion, with all future PPIP payments providing additional profit to 
OFS. 

Additional information on PPIP, including details on fund performance 
can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Public-Private-Investment-Program-Quarterly-
Report.aspx]. 

Term Asset-Backed Securities Loan Facility: 

OFS originally committed to provide credit protection of up to $20.0 
billion in the form of a subordinated loan commitment to TALF, LLC to 
support up to $200.0 billion of lending by the FRBNY. After subsequent 
reductions in OFS's commitments in 2013, the commitment was $100 
million - the initial loan amount disbursed by OFS to fund the TALF, 
LLC. 

During fiscal year 2013, OFS's original $100 million loan disbursed 
was fully repaid with interest. As of September 30, 2014, the balance 
of outstanding TALF loans provided by FRBNY had declined to $14 
million from $101 million on September 30, 2013, due to scheduled and 
voluntary prepayments by borrowers. All loans that have not been 
repaid-in-full are current in their payments of principal and interest 
and are fully collateralized by the residual balance held by the TALF, 
LLC. As of September 30, 2014, accumulated income earned from 
investments in TALF, LLC totaled $645 million, all of which occurred 
during fiscal years 2014 and 2013. 

Additional information on TALF, including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/credit-market-
programs/talf/Pages/default.aspx]. 

Small Business Administration 7(a) Securities Purchase Program: 

During fiscal year 2012, OFS completed the fifth and final disposition 
of securities within the SBA 7(a) Securities Purchase Program, marking 
the successful wind-down of the program. OFS collected a total of $376 
million through the program. This includes $334 million in sales, $29 
million in principal payments, and $13 million in interest payments 
over the life of the program. These cash collections exceeded OFS's 
original investment amount by $9 million, excluding purchased accrued 
interest. 

Additional information on SBA 7(a), including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/credit-market-
programs/sba7a/Pages/default.aspx]. 

Automotive Industry Financing Program: 

OFS continued to make substantial progress in the wind-down of the 
AIFP during fiscal year 2014, including the exit from its investment 
in GM. In total, OFS disbursed $79.7 billion in loans and equity 
investments to the auto industry through the AIFP. As of September 30, 
2014, OFS has collected $68.9 billion through sales, repayments, 
dividends and interest under this program. 

OFS disbursed a total of $12.4 billion to Chrysler related entities 
including Old Chrysler and New Chrysler. During fiscal year 2011, OFS 
fully exited its loans and investment relating to Chrysler entities, 
six years ahead of the scheduled maturity of its loans. Of the $12.4 
billion that was disbursed to Chrysler related entities under TARP, 
OFS collected $11.1 billion through principal repayments, sale of 
investments, and interest. OFS retains a right to receive proceeds 
from a liquidation trust, no significant future cashflows are expected. 

In December 2013, OFS fully exited its investment in GM completing the 
disposition of its remaining shares of GM common stock. The total 
amount collected for fiscal year 2014 was $3.8 billion, raising to 
$39.7 billion the total collected by Treasury from its original GM 
investment (this excludes the $884 million loan to GM which was 
converted to GMAC common stock). 

OFS invested $17.2 billion ($16.3 billion in initial GMAC investments 
and an $884 million loan to Old GM which was converted to GMAC stock) 
in Ally Financial (Ally) under TARP. As of September 30, 2014, OFS's 
outstanding investment in Ally stood at $1.8 billion. During fiscal 
year 2014, Ally completed the two strategic initiatives OFS previously 
said were critical to maximize recovery of the investment - the 
Chapter 11 proceeding of Ally's mortgage subsidiary, Residential 
Capital LLC (ResCap), to address Ally's legacy mortgage liabilities 
and the sale of its international auto finance operations. During 
fiscal year 2013, Ally, ResCap, and ResCap's major creditors agreed on 
terms for a plan of reorganization and the settlement of certain 
claims against Ally. In December 2013, the bankruptcy court approved 
ResCap's final plan to liquidate and exit bankruptcy, thus allowing 
Ally to cut its ties to ResCap. Ally also has sold or entered into 
agreements to sell all of its international auto finance operations 
for a total of $9.2 billion. All related transactions have closed with 
the exception of one joint venture that is awaiting a foreign 
government's regulatory approval. 

On August 19, 2013, Ally entered into private placement agreements 
with investors of Ally common stock for an aggregate price of $1.0 
billion (later increased to $1.3 billion in November 2013). 
Concurrently, Ally also entered into agreements with OFS to repurchase 
all of the outstanding MCP stock and terminate the MCP's Share 
Adjustment Right (SAR), which provided OFS with the right to receive 
additional common stock of Ally under certain circumstances if certain 
events occurred prior to December 30, 2016. Ally repurchased all of 
its MCP stock from OFS for $5.2 billion in November 2013. In addition, 
OFS received an additional $725 million for the elimination of the SAR. 

OFS took significant action in fiscal year 2014 to reduce its 
remaining investment in Ally. In January 2014, Treasury sold Ally 
common stock in a private offering for approximately $3.0 billion. In 
April 2014, Treasury sold common stock as part of Ally's initial 
public offering (IPO) for almost $2.4 billion and $181 million 
associated with the over-allotment option that was exercised in May 
2014. On August 14, 2014, OFS commenced the disposition of its 
remaining 75 million common shares of Ally common stock through a 
series of pre-arranged written trading plans. These sales increased 
the total amount collected by OFS on behalf of taxpayers to $18.1 
billion, which is $923 million more than the original investment in 
Ally. OFS is actively seeking to wind-down the remaining investment in 
Ally, which represents approximately 13.4 percent of Ally's common 
stock as of September 30, 2014. 

Additional information on the AIFP, including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/automotive-programs/Pages/default.aspx]. 

American International Group (AIG) Investment Program: 

In fiscal year 2013, OFS exited all remaining holdings in AIG through 
the sale of common stock and AIG's repurchase of warrants. During the 
financial crisis, the OFS's and the FRBNY's peak support for AIG 
totaled $182.3 billion. That included $69.8 billion that OFS committed 
and $112.5 billion committed by the FRBNY, including $22.1 billion of 
these commitments which were later canceled. As a result of the 
combined efforts of AIG, OFS, and the Federal Reserve, $22.7 billion 
in excess of the total of funds disbursed were recovered through sales 
and other income. OFS's cumulative net proceeds from repayments, 
sales, dividends, interest, and other income related to AIG assets 
totaled $55.3 billion. While TARP recovered less than its $67.8 
billion total investment, this was offset by the proceeds from the 
additional Treasury shares of AIG, resulting in overall proceeds 
exceeding disbursements by $5.0 billion for Treasury as a whole. 

Additional information on the AIG Investment Program, including 
details on the program's purpose, overview, and status can be found at 
the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/aig/Pages/default.aspx]. 

Operational Goal Two: Continue Helping Families in Need to Avoid 
Foreclosure: 

Making Home Affordable (MHA): 

Consistent with OFS's goal of continuing to help struggling homeowners 
find solutions to avoid foreclosure wherever possible, OFS is 
continuing to implement the MHA program and to reach as many 
homeowners as possible. As of September 30, 2014, 81 non-GSE servicers 
are participating in MHA. As of September 30, 2014, OFS has 
commitments to fund up to $29.8 billion in MHA payments and has 
disbursed $9.3 billion since inception. 

OFS publishes quarterly assessments of servicer performance containing 
data on compliance with program guidelines as well as program results 
metrics. OFS believes that these assessments have set the standard for 
transparency about mortgage servicer efforts to assist homeowners at 
risk of foreclosure, and encourage servicers to improve processes and 
performance for foreclosure prevention activities. 

MHA performance highlights for fiscal year 2014 can be found at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Making-Home-Affordable-Program-Performance-
Report.aspx]. 

Additional information on MHA, including details on the program's 
purpose, overview, and status can be found at the following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/housing/mha/Pages/default.aspx]. 

Home Affordable Modification Program (HAMP): 

The largest program within MHA is the Home Affordable Modification 
Program (HAMP). HAMP offers eligible homeowners at risk of foreclosure 
the opportunity to obtain reduced monthly mortgage payments that are 
affordable and sustainable over the long-term. 

As of September 30, 2014, approximately 1.4 million homeowners have 
received permanent modifications through HAMP.[Footnote 1] This 
includes modifications on both non-GSE loans (for which the cost is 
paid by TARP) and GSE loans (for which the cost is paid by the GSEs). 
Homeowners participating in HAMP have collectively experienced nearly 
a 42 percent median reduction in their mortgage payments--representing 
more than $540 per month. MHA has also encouraged the mortgage 
industry to adopt similar programs that have helped millions more at 
no cost to taxpayers by establishing standards and best practices for 
loss mitigation evaluations. 

Housing Finance Agency Innovation Fund for the Hardest Hit Housing 
Markets (Hardest Hit Fund): 

In addition to MHA, OFS also operates the Hardest Hit Fund, which 
allows participating HFAs in the nation's hardest hit housing and 
unemployment markets to design innovative, locally-targeted 
foreclosure prevention programs. As of September 30, 2014, all 19 HFAs 
are fully operational and have created extensive infrastructures to 
operate these programs, including selecting and training networks of 
housing counselors to assist with applications, creating homeowner 
portals to aid homeowners in applying for assistance, and hiring 
underwriters and other staff to review and approve applications. The 
five largest servicers (Bank of America, JPMorgan Chase, Wells Fargo, 
Citibank, and Ocwen) are currently participating in programs in all 19 
jurisdictions, primarily through mortgage payment assistance and 
mortgage loan reinstatement assistance. 

As of September 30, 2014, the 19 HFAs have collectively drawn 
approximately $4.5 billion (59 percent) of the $7.6 billion allocated 
under the program. For fiscal years 2014 and 2013, this program has 
disbursed $1.6 billion and $1.4 billion, respectively. Each state 
draws down funds as they are needed, but must have no more than five 
percent of their allocation on hand before they can draw down 
additional funds. States have until December 31, 2017 to enter into 
agreements with borrowers. As of September 30, 2014, seven HFAs had 
stopped accepting new applications for assistance in anticipation of 
full commitment of program funds: the District of Columbia, Illinois, 
New Jersey, Ohio, Oregon, Rhode Island and Tennessee. 

Each HFA submits a quarterly report on the progress of its program. 
These reports measure the states' performance against metrics set by 
OFS for various aspects of their programs. Direct links to each 
state's most recent performance report can be found at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/housing/Pages/Program-Documents.aspx]. 

OFS also publishes a Quarterly Performance Summary, a companion 
reference to the HFAs' Quarterly Performance Reports. The Summary 
contains performance data and trends, key economic and loan 
performance indicators, and brief program descriptions for each HFA. 
The Quarterly Performance Summary can be found at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Documents/FINAL%20Q1%202014%20Hardest%20Hit%20Fund%20P
rogram%20Performance%20Summary.pdf]. 

Additional information on the Hardest Hit Fund, including details on 
the program's purpose, overview, and status can be found at the 
following website: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/TARP-Programs/housing/hhf/Pages/default.aspx]. 

FHA Refinance Program: 

On March 26, 2010, HUD and Treasury announced enhancements to the 
Federal Housing Administration Refinance Program (FHA Refinance), 
designed to make homeownership more affordable for borrowers whose 
homes are worth less than the remaining amounts on their mortgage 
loans (negative equity). TARP funds were made available by OFS through 
an $8.0 billion letter of credit facility, in order to fund a share of 
the losses associated with this program (subsequently reduced to $1.0 
billion in fiscal year 2013 due to low utilization). As of September 
30, 2014, FHA guaranteed 2,069 Refinance loans with a total face value 
of almost $292 million currently under OFS's letter of credit facility. 

Operational Goal Three: Minimize Cost to Taxpayer: 

OFS manages TARP investments to minimize costs to taxpayers by 
managing the timely exit of these investments to reduce taxpayers' 
exposure, return TARP funds to reduce the federal debt, and continue 
to replace government assistance with private capital in the financial 
system. OFS has taken a number of steps during fiscal years 2014 and 
2013 to dispose of OFS's outstanding investments in a manner that 
balances the desire to exit these investments as quickly as 
practicable with maximizing returns on behalf of taxpayers. OFS 
continues to take steps to ensure that TARP recipients comply with any 
TARP-related statutory or contractual obligations such as executive 
compensation requirements and restrictions on dividend payments. 

OFS takes a disciplined portfolio approach - reviewing each investment 
and closely monitoring risk and performance. In addition to repayments 
by participants, OFS has disposed of investments to third parties 
through public and private offerings and auctions with approval from 
regulators. 

Risk Assessment: 

OFS has developed procedures to identify and mitigate investment risk. 
These procedures are designed to identify TARP recipients that face a 
heightened financial risk and determine appropriate responses to 
preserve OFS's investment on behalf of taxpayers, while maintaining 
financial stability. Specifically, OFS's external asset managers 
review publicly available information to identify recipients for which 
pre-tax, pre-provision earnings and capital may be insufficient to 
offset future losses and maintain required capital. For certain 
institutions, OFS and its external asset managers engage in heightened 
monitoring and due diligence that reflects the severity and timing of 
the challenges. 

Compliance: 

OFS takes steps to ensure that TARP recipients comply with their TARP-
related statutory and contractual obligations. Statutory obligations 
include executive compensation restrictions. Contractual obligations 
vary by investment type. For most of OFS's preferred stock 
investments, TARP recipients must comply with restrictions on payment 
of dividends and on repurchases of junior securities. Recipients of 
exceptional assistance (currently Ally) must comply with additional 
restrictions on executive compensation, lobbying, and corporate 
expenses. 

OFS also performs periodic reviews of the 19 HFAs participating in the 
HHF program, to evaluate each HFA's ongoing compliance with their 
contractual agreement with Treasury, as well as compliance with HHF 
program terms and underwriting requirements. 

In addition, all mortgage servicers participating in MHA are subject 
to program guidelines, which require the servicer to offer MHA 
assistance to all eligible borrowers and to have systems that can 
process all MHA-eligible loans. Servicers are subject to periodic, on-
site compliance reviews performed by OFS's compliance agent, Making 
Home Affordable-Compliance (MHA-C), a separate, independent division 
of Freddie Mac, to monitor whether servicers' obligations under MHA 
requirements are being met. In fiscal year 2011, OFS began publishing 
quarterly assessments of the largest servicers that currently comprise 
approximately 88% of the HAMP mortgage servicing and continued 
publishing these quarterly assessments throughout fiscal year 2014. 
These assessments have helped prompt the industry to improve its 
practices. 

Operational Goal Four: Continue to Operate with the Highest Standards 
of Transparency, Accountability, and Integrity: 

To protect taxpayers and help ensure that every dollar is directed 
toward promoting financial stability, OFS established comprehensive 
accountability and transparency measures. OFS is committed to 
operating its investment and housing programs in full view of the 
public. This includes providing regular and comprehensive information 
about how TARP funds are being spent, who has received them and on 
what terms, and how much has been collected to date. 

All of this information, along with numerous reports of different 
frequencies, is posted in the Financial Stability section of the 
Treasury.gov website, which can be found at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/default.aspx]. 

These reports include: 

* A Daily TARP Update, which features detailed financial data related 
to each TARP investment program including the status of disbursements 
and all collections by category; 

* A monthly report to Congress that details how TARP funds have been 
used, the status of recovery of such funds by program, and information 
on the estimated cost of TARP; 

* A monthly report on dividend and interest payments; 

* A quarterly report on Making Home Affordable; 

* A report of each transaction (such as an investment or repayment) 
within two business days of each transaction; 

* A quarterly report on the Hardest Hit Fund; and: 

* A quarterly report to Congress on administrative expense activities. 

In addition, OFS regularly publishes data files related to MHA and 
transaction reports that show activity related to MHA and HHF. The 
release of the data file fulfills a requirement within the Dodd-Frank 
Act to make available loan-level data about the program. OFS updates 
the file monthly. Researchers interested in using the MHA Data File 
can access the file and user guide at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/mha_publicfile.aspx]. 

Audited Financial Statements: 

OFS prepares separate financial statements for TARP on an annual 
basis. This is the sixth OFS Agency Financial Report (AFR), and 
includes the audited financial statements for the fiscal years ended 
September 30, 2014 and September 30, 2013. Additional reports for 
prior periods are available at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Annual-Agency-Financial-Reports.aspx]. 

In its six years of operation, TARP's financial statements have 
received unmodified audit opinions from its auditor, the GAO. OFS also 
received a Certificate of Excellence in Accountability Reporting 
(CEAR) from the Association of Government Accountants for fiscal years 
2013, 2012, 2011, 2010 and the period ending September 30, 2009. 

TARP Tracker: 

During fiscal year 2013, OFS launched an expanded version of its 
existing TARP Tracker, which is an online, interactive tool that 
allows users to track the flow of TARP funds in greater detail over 
the lifetime of each individual TARP investment area. The expanded 
capability allows users to view each investment area separately to get 
a clearer sense of what has occurred in a particular program, 
including a scroll of events, major transactions, and legislative 
actions that have impacted the program. 

Readers are invited to refer to these documents at: [hyperlink, 
http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/default.aspx]. 

Oversight by Three Separate Agencies: 

OFS activities are currently reviewed by three oversight entities: 

* The Financial Stability Oversight Board, established by EESA Section 
104; 

* Specific responsibilities for the GAO as set out in EESA Section 116; 

* The Special Inspector General for TARP, established by EESA Section 
121; 

OFS has productive working relationships with all of these bodies, and 
cooperates with each oversight agency's effort to produce periodic 
audits and reports that focus on the many aspects of TARP. 
Individually and collectively, the oversight bodies' audits and 
reports have made and continue to make important contributions to the 
development, strengthening, and transparency of TARP programs. 

Congressional Hearings and Testimony: 

OFS officials have testified in numerous Congressional hearings since 
TARP was created. Copies of their written testimony are available at: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/news-room/Pages/default.aspx]. 

Footnote: 

[1] 783,301 of these modifications were OFS funded. 

[End of section] 

Fiscal Year 2014 and 2013 Financial Summary and Cumulative Net Income: 

OFS's fiscal year 2014 net cost of operations of $3.0 billion includes 
the reported net income related to loans, equity investments, and 
other credit programs, as well as expenses for the Treasury housing 
programs under TARP and administrative expenses. For the fiscal year 
ended September 30, 2014, OFS reported net subsidy income for 5 
programs -CPP, CDCI, TALF, AIFP, and FHA-Refinance. These programs 
collectively reported net subsidy income of $1.5 billion. Fiscal year 
2014 expenses for the Treasury housing programs under TARP are $4.3 
billion and administrative costs are $186 million. For the fiscal year 
ended September 30, 2013, the net income from operations was $7.7 
billion. These net cost and income amounts reported in the financial 
statements reflect only transactions through September 30, 2014 and 
September 30, 2013, respectively, and therefore are different than 
lifetime cost estimates made for budgetary purposes. 

Over time the cost of TARP programs will change. As described later in 
the OFS audited financial statements, these estimates are based in 
part on currently projected economic factors. These economic factors 
will likely change, either increasing or decreasing the lifetime cost 
of TARP. 

TARP Program Summary: 

Table 1 provides a financial summary for TARP programs since its 
inception on October 3, 2008, through September 30, 2014. For each 
program, the table provides utilized TARP authority (which includes 
purchases made, legal commitments to make future purchases, and 
offsets for guarantees made), the amount actually disbursed, 
repayments to OFS from program participants or from sales of the 
investments, write-offs and losses, net outstanding balance as of 
September 30, 2014, and cash inflows on the investments in the form of 
dividends, interest or other fees. 

Table 1: TARP Summary[1].
From TARP Inception through September 30, 2014.
(Dollars in billions). 

Bank Support Programs: 

Capital Purchase Program[2]; 
Purchase Price or Guarantee Amounts: $204.9; 
Total Disbursed: $204.9; 
Investment Sales and Repayments: ($199.4)[5]; 
Write-offs and Losses[6]: ($4.9); 
Outstanding Balance[7]: ($0.6); 
Received from Investments: $27.0. 

Targeted Investment Program; 
Purchase Price or Guarantee Amounts: $40.0; 
Total Disbursed: $40.0; 
Investment Sales and Repayments: ($40.0); 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: [Empty]; 
Received from Investments: $4.4. 

Asset Guarantee Program; 
Purchase Price or Guarantee Amounts: $5.0; 
Total Disbursed: [Empty]; 
Investment Sales and Repayments: [Empty]; 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: [Empty]; 
Received from Investments: $4.1. 

Community Development Capital Initiative; 
Purchase Price or Guarantee Amounts: $0.6; 
Total Disbursed: $0.6; 
Investment Sales and Repayments: ($0.1); 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: $0.5; 
Received from Investments: ($0.1). 

Credit Market Programs: 

Public-Private Investment Program; 
Purchase Price or Guarantee Amounts: $18.7; 
Total Disbursed: $18.6; 
Investment Sales and Repayments: ($18.6); 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: [Empty]; 
Received from Investments: $3.9. 

Term Asset-Backed Securities Loan Facility; 
Purchase Price or Guarantee Amounts: $0.1; 
Total Disbursed: $0.1; 
Investment Sales and Repayments: ($0.1); 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: [Empty]; 
Received from Investments: $0.6. 

SBA 7(a) Securities Purchase Program; 
Purchase Price or Guarantee Amounts: $0.4; 
Total Disbursed: $0.4; 
Investment Sales and Repayments: ($0.4); 
Write-offs and Losses[6]: [Empty]; 
Outstanding Balance[7]: [Empty]; 
Received from Investments: [Empty]. 

Other Programs: 

Automotive Industry Financing Program; 
Purchase Price or Guarantee Amounts: $79.7; 
Total Disbursed: $79.7; 
Investment Sales and Repayments: ($61.8); 
Write-offs and Losses[6]: ($16.1); 
Outstanding Balance[7]: $1.8; 
Received from Investments: $7.1. 

American International Group Investment Program[3]; 
Purchase Price or Guarantee Amounts: $67.8; 
Total Disbursed: $67.8; 
Investment Sales and Repayments: ($54.3); 
Write-offs and Losses[6]: ($13.5); 
Outstanding Balance[7]: [Empty]; 
Received from Investments: $1.0. 

Sub-total for Investment Programs; 
Purchase Price or Guarantee Amounts: $417.2; 
Total Disbursed: $412.1; 
Investment Sales and Repayments: ($374.75); 
Write-offs and Losses[6]: ($34.5); 
Outstanding Balance[7]: $2.9; 
Received from Investments: $48.2. 

Treasury Housing Programs under TARP; 
Purchase Price or Guarantee Amounts: $38.5[4]; 
Total Disbursed: $13.8; 
Investment Sales and Repayments: N/A; 
Write-offs and Losses[6]: N/A; 
Outstanding Balance[7]: N/A; 
Received from Investments: N/A. 

Total for TARP Program; 
Purchase Price or Guarantee Amounts: $455.7; 
Total Disbursed: $425.9; 
Investment Sales and Repayments: ($374.7); 
Write-offs and Losses[6]: ($34.5); 
Outstanding Balance[7]: $2.9; 
Received from Investments: $48.2. 

[1] This table shows TARP activity for the period from inception 
through September 30, 2014, on a cash basis. Received from investments 
includes dividends and interest income reported in the Statement of 
Net Cost, and Proceeds from sale and repurchases of assets in excess 
of costs. 

[2] OFS received $31.9 billion in proceeds from sales of Citigroup 
common stock, of which $25.0 billion is included at cost in investment 
repayments, and $6.9 billion of net proceeds in excess of cost is 
included in Received from Investments. 

[3] The amounts for AIG reflect only the operations of TARP and do not 
reflect proceeds received from the sale of shares of AIG common stock 
held by Treasury outside of TARP (additional Treasury shares). 

[4] Individual obligation amounts are $29.8 billion for the Making 
Home Affordable Program, $7.6 billion for the Hardest Hit Fund, and 
$1.0 billion committed for the FHA-Refinance Program. 

[5] Includes $2.2 billion of SBLF refinancing outside of TARP and CDCI 
exchanges from CPP of $363 million. 

[6] Losses represent proceeds less than cost on sales of assets which 
are reflected in the financial statements within "net proceeds from 
sales and repurchases of assets in excess of (less than) cost". 

[7] Total disbursements less repayments, write-offs and losses do not 
equal the total outstanding balance because the disbursements for the 
Treasury housing programs under TARP generally do not require (and OFS 
does not expect) repayments. 

[End of table] 

Most TARP funds were used to make investments in preferred stock or to 
make loans. OFS has generally received dividends on the preferred 
stock and interest payments on the loans from the institutions 
participating in TARP programs. These payments represent additional 
proceeds received on OFS's TARP investments. From inception through 
September 30, 2014 OFS received a total of $24.5 billion in dividends 
and interest. 

OFS has conducted several sales of its investments in banking 
institutions as part of its exit strategy for winding down TARP. OFS 
plans to continue to sell its investments in banks that are not 
expected to repay OFS in the foreseeable future. These sales are being 
conducted over time and in stages and include both common and 
preferred stock and debentures. During fiscal years 2014 and 2013, OFS 
sold its investments in 31 and 113 banks for combined proceeds of $263 
million and $1.5 billion, respectively, through individual private 
auctions. These auctions resulted in net proceeds less than cost of 
$73 million and $455 million for those investments during fiscal years 
2014 and 2013, respectively. 

OFS also received warrants in connection with most of its investments, 
which provides an opportunity for OFS on behalf of taxpayers to 
realize additional proceeds on investments. Since the program's 
inception, through September 30, 2014, OFS has received $9.6 billion 
in gross proceeds from the disposition of warrants associated with 216 
CPP, TIP, AGP, and AIG, consisting of (i) $4.0 billion from issuer 
repurchases at agreed upon values and (ii) $5.6 billion from auctions. 
TARP's Warrant Disposition Report is posted on the OFS website at the 
following link: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/PagesWarrant-Disposition-Reports.aspx]. 

Summary of TARP Equity Investments: 

Table 2 provides information on the estimated values of TARP direct 
loan and equity investments by program, as of the end of fiscal years 
2014 and 2013. OFS housing programs under TARP are excluded from the 
chart because no repayments are expected. The Outstanding Balance 
column represents the amounts disbursed by OFS relating to the loans 
and equity investments that were outstanding as of September 30, 2014 
and 2013. The Estimated Value of the Investment column represents the 
present value of net cash inflows that OFS estimates it will receive 
from the loans and equity investments. These estimates include market 
risk assumptions. For equity investments, this amount represents fair 
value. The total difference of $679 million (2014) and $5.6 billion 
(2013) between the two columns is considered the "subsidy cost 
allowance" under the Federal Credit Reform Act methods OFS follows for 
budget and accounting purposes. 

See Note 6 in the financial statements for further discussion. 

Table 2: Summary of TARP Equity Investments: 
(Dollars in billions): 

Bank Support Programs: 

Program: Capital Purchase Program; 
Outstanding Balance as of September 30, 2014[1]: $0.6; 
Estimated Value of Investment as of September 30, 2014: $0.3; 
Outstanding Balance as of September 30, 2014[1]: $3.1; 
Estimated Value of Investment as of September 30, 2013: $1.8. 

Program: Community Development Capital Initiative; 
Outstanding Balance as of September 30, 2014[1]: $0.5; 
Estimated Value of Investment as of September 30, 2014: $0.4; 
Outstanding Balance as of September 30, 2013[1]: $0.5; 
Estimated Value of Investment as of September 30, 2013: $0.4. 

Credit Market Programs: 

Program: Public-Private Investment Program; 
Outstanding Balance as of September 30, 2014[1]: $0.0; 
Estimated Value of Investment as of September 30, 2014: $0.0; 
Outstanding Balance as of September 30, 2013[1]: $0.0; 
Estimated Value of Investment as of September 30, 2013: $0.0. 

Program: Term Asset-Backed Securities Loan Facility; 
Outstanding Balance as of September 30, 2014[1]: $0.0; 
Estimated Value of Investment as of September 30, 2014: $0.0; 
Outstanding Balance as of September 30, 2013[1]: $0.0; 
Estimated Value of Investment as of September 30, 2013: $0.1. 

Other Programs: 

Program: Automotive Industry Financing Program; 
Outstanding Balance as of September 30, 2014[1]: $1.8; 
Estimated Value of Investment as of September 30, 2014: $1.5; 
Outstanding Balance as of September 30, 2013[1]: $19.9; 
Estimated Value of Investment as of September 30, 2013: $15.6. 

Program: American International Group Investment Program; 
Outstanding Balance as of September 30, 2014[1]: $0.0; 
Estimated Value of Investment as of September 30, 2014: $0.0; 
Outstanding Balance as of September 30, 2013[1]: $0.0. 

Program: Total; 
Outstanding Balance as of September 30, 2014[1]: $2.9; 
Estimated Value of Investment as of September 30, 2014: $2.2; 
Outstanding Balance as of September 30, 2013[1]: $23.5; 
Estimated Value of Investment as of September 30, 2013: $17.92. 

[1] Before subsidy cost allowance. 

[End of table] 

The ultimate cost of TARP will not be known for some time, but it is 
not expected to change significantly as only a few investment programs 
remain open with much of the original disbursed investments repaid. 
The financial performance of the remaining programs will depend on 
many factors, such as future economic and financial conditions, and 
the business prospects of specific institutions. The cost estimates 
are sensitive to slight changes in model assumptions, such as general 
economic conditions, specific stock price volatility of the entities 
in which OFS has an equity interest, estimates of expected defaults, 
and prepayments. Wherever possible, OFS uses market prices of tradable 
securities to estimate the fair value of TARP investments. Use of 
market prices is possible for TARP investments that trade in public 
markets or are closely related to tradable securities. For those TARP 
investments that do not have direct analogs in private markets, OFS 
uses internal market-based models to estimate the market value of 
these investments. All future cash flows are adjusted for market risk. 
Further details on asset valuation can be found in Note 6 of the 
Financial Statements. 

Comparison of Estimated Lifetime TARP Costs Over Time: 

Market conditions and the performance of specific financial 
institutions are critical determinants of TARP's estimated lifetime 
cost. The changes in OFS estimates since TARP's inception through 
September 30, 2014, provide a good illustration of this impact. Table 
3 provides information on how OFS's estimated lifetime cost of TARP 
has changed over time. The cost estimates for the non-housing programs 
have fluctuated in large part due to changes in the market prices of 
common stock for AIG, GM and Ally. The future value of OFS's remaining 
investment in Ally will be determined based on market prices of Ally 
common stock, which could be influenced by industry and macroeconomic 
factors. This table assumes that all expected investments and 
disbursements for Treasury housing programs under TARP are completed, 
and adhere to general government budgeting guidance. This table will 
not tie to the financial statements since it includes repayments and 
disbursements expected to be made in the future. Table 3 is consistent 
with the estimated TARP lifetime cost disclosures on the OFS web site 
at: [hyperlink, http://www.treasury.gov/initiatives/financial-
stability/Pages/default.aspx]. 

The cost amounts in Table 3 are based on assumptions regarding future 
events, which are inherently uncertain. 

Table 3: Estimated Lifetime TARP Costs (Income)[1]: 
(Dollars in billions): 

Estimated Lifetime Cost (Income) as of September 30: 

Bank Support Programs: 

Program: Capital Purchase Program; 
2009[5]: ($14.6); 
2010: ($11.2); 
2011: ($13.0); 
2012: ($14.9); 
2013: ($16.1); 
2014: ($16.1). 

Program: Targeted Investment Program; 
2009[5]: ($1.9); 
2010: ($3.8); 
2011: ($4.0); 
2012: ($4.0); 
2013: ($4.0); 
2014: ($4.0). 

Program: Asset Guarantee Program[2]; 
2009[5]: ($2.2); 
2010: ($3.7); 
2011: ($3.7); 
2012: ($3.9); 
2013: ($4.0); 
2014: ($4.0). 

Program: Community Development Capital Initiative; 
2009[5]: $0.4; 
2010: $0.3; 
2011: $0.2; 
2012: $0.2; 
2013: $0.1; 
2014: $0.1. 

Credit Market Programs: 

Program: Public-Private Investment Program; 
2009[5]: $1.4; 
2010: ($0.7); 
2011: ($2.4); 
2012: ($2.4); 
2013: ($2.7); 
2014: ($2.7). 

Program: Term Asset-Backed Securities Loan Facility; 
2009[5]: ($0.3); 
2010: ($0.4); 
2011: ($0.4); 
2012: ($0.5); 
2013: ($0.6); 
2014: ($0.6), 

Program: SBA 7(a) Securities Purchase Program; 
2009[5]: N/A; 
2010: 0.0; 
2011: 0.0; 
2012: 0.0; 
2013: 0.0; 
2014: [Empty]. 

Other Programs: 

Program: Automotive Industry Financing Program; 
2009[5]: $34.5; 
2010: $14.7; 
2011: $23.6; 
2012: $24.3; 
2013: $14.7; 
2014: $12.2. 

Program: American International Group Investment Program[3]; 
2009[5]: $56.8; 
2010: $36.9; 
2011: $24.3; 
2012: $15.3; 
2013: $15.2; 
2014: $15.2. 

Program: Subtotal; 
2009[5]: $74.1; 
2010: $32.1; 
2011: $24.6; 
2012: $14.1; 
2013: $2.6; 
2014: $0.1. 

Treasury Housing Programs under TARP[4]; 
2009[5]: $50.0; 
2010: $45.6; 
2011: $45.6; 
2012: $45.6; 
2013: $37.7; 
2014: $37.4. 

Program: Total; 
2009[5]: $124.1; 
2010: $77.7; 
2011: $70.2; 
2012: $59.7; 
2013: $40.3; 
2014: $37.5. 

[1] Estimated program costs (+) or savings (in parentheses) over the 
life of the program, including interest on re-estimates and excluding 
administrative costs. 

[2] Prior to the termination of the guarantee agreement, OFS 
guaranteed up to $5.0 billion of potential losses on a $301.0 billion 
portfolio of loans. 

[3] The amounts for AIG reflect only the operations of TARP and do not 
reflect proceeds received from the sale of shares of AIG common stock 
held by Treasury outside of TARP (additional Treasury shares). For 
further details, see the discussion of the American International 
Group Investment Program, beginning on page 13. 

[4] The estimated lifetime cost for Treasury Housing Programs under 
TARP represent the total commitment except for the FHA Refinance 
Program, which is accounted for under credit reform. The estimated 
lifetime cost of the FHA Refinance Program represents the total 
estimated subsidy cost associated with total obligated amount. 

[5] Estimated lifetime cost for 2009 includes funds for projected 
disbursements and anticipated obligations. 

[End of table] 

Key Trends/Factors Affecting TARP Future Activities and Ultimate Cost: 

TARP investment programs are nearly wound down with only $2.9 billion 
of the $412.1 billion still outstanding, representing 64 million 
shares of Ally Financial and 111 small banks in the CPP and CDCI 
portfolios. The estimated lifetime costs of investment programs are 
currently $67 million and may fluctuate in the future. Going forward, 
the fluctuations in Ally common stock prices and expenditures for 
Treasury housing programs under TARP are expected to most significantly
affect changes to the lifetime cost of TARP. The ultimate cost of 
Treasury housing programs will depend on macroeconomic factors, 
including real-estate values, financing available in capital markets, 
and the market demand for housing. 

[End of section] 

Systems, Controls, and Legal Compliance: 

Management Assurance Statement: 

The Office of Financial Stability's (OFS) management is responsible 
for establishing and maintaining effective internal control and 
financial management systems that meet the objectives of the Federal 
Managers' Financial Integrity Act (FMFIA), 31 U.S.C. 3512(c),(d). OFS 
has evaluated its management controls, internal controls over 
financial reporting, and compliance with the federal financial systems 
standards. As part of the evaluation process, we considered the 
results of extensive documentation, assessment and testing of controls 
across OFS, as well as the results of independent audits. We conducted 
our reviews of internal controls in accordance with FMFIA and Office 
of Management and Budget (OMB) Circular A-123. 

As a result of our reviews, management concludes that the management 
control objectives described below, taken as a whole, were achieved as 
of September 30, 2014. Specifically, this assurance is provided 
relative to Section 2 (internal controls) and 4 (systems controls) of 
FMFIA. OFS further assures that the financial management systems 
relied upon by OFS are in substantial compliance with the requirements 
imposed by the Federal Financial Management Improvement Act (FFMIA). 

OFS' internal controls are designed to meet the management objectives 
established by Treasury and listed below: 

(a) Programs achieve their intended results;
(b) Resources are used consistent with overall mission;
(c) Programs and resources are free from waste, fraud, and 
mismanagement;
(d) Laws and regulations are followed;
(e) Controls are sufficient to minimize any improper or erroneous 
payments;
(f) Performance information is reliable;
(g) Systems security is in substantial compliance with all relevant 
requirements;
(h) Continuity of operations planning in critical areas is sufficient 
to reduce risk to reasonable levels;
(i) Financial management systems are in compliance with federal 
financial systems standards, i.e., FMFIA Section 4 and FFMIA;
(j) Complete and accurate data is reported on USAspending; and: 
(k) Controls and policies are in place to prevent fraud and 
inappropriate use of government charge cards. 

In addition, OFS management conducted its assessment of the 
effectiveness of internal control over financial reporting which 
includes the safeguarding of assets and compliance with applicable 
laws and regulations, in accordance with OMB Circular A-123, 
Management's Responsibility for Internal Control, Appendix A, Internal 
Control over Financial Reporting. Based on the results of this 
evaluation, OFS provides unqualified assurance that internal control 
over financial reporting is appropriately designed and operating 
effectively as of September 30, 2014, with no related material 
weaknesses noted. 

Sincerely, 

Signed by: 

Timothy J. Bowler: 
Deputy Assistant Secretary for Financial Stability: 

[End of section] 

Federal Managers' Financial Integrity Act (FMFIA): 

The management control objectives under FMFIA are to reasonably ensure 
that: 

* Obligations and costs are in compliance with applicable law; 

* Funds, property, and other assets are safeguarded against waste, 
loss, unauthorized use, or misappropriation; and: 

* Revenues and expenditures applicable to agency operations are 
properly recorded and accounted for to permit the preparation of 
accounts, reliable financial and statistical reports, and to maintain 
accountability over the assets. 

FMFIA requires agencies to evaluate and report on the effectiveness of 
controls over operations and financial reporting (FMFIA Section 2), 
and conformance with financial management systems requirements (FMFIA 
Section 4 and FFMIA) that protect the integrity of federal programs. 
Deficiencies that seriously affect an agency's ability to meet these 
objectives are deemed "material weaknesses." 

OFS continues to have a high performing internal control program in 
compliance with FMFIA. FMFIA and OMB Circular A-123, Management's 
Responsibility for Internal Control, require agencies to evaluate and 
report on internal controls in place to help ensure effectiveness and 
efficiency of operations, compliance with applicable laws and 
regulations, and reliability of financial reporting. OFS has completed 
these rigorous assessments since fiscal year 2009. 

OFS has a Senior Assessment Team (SAT) to guide the organization's 
efforts to meet the statutory and regulatory requirements surrounding 
a sound system of internal control. OFS's internal control framework 
is based on the principles of the Committee of Sponsoring 
Organizations of the Treadway Commission (COSO). The SAT leverages 
this framework in communicating control objectives across OFS and its 
third-party service providers. Furthermore, managers throughout OFS 
are responsible for ensuring that effective internal controls are 
implemented in their areas of responsibility. Senior management 
throughout OFS provides sub-certification statements annually 
concerning whether there is reasonable assurance that the objectives 
of internal control are met. Senior management also reports on and 
takes steps to correct control weaknesses and tracks those weaknesses 
through resolution. 

OFS management believes that maintaining integrity and accountability 
in all programs and operations is critical to its mission and 
demonstrates responsible stewardship over assets and resources. It 
also promotes responsible leadership and maximizes desired program 
outcomes. OFS has received unmodified opinions from the GAO on its 
financial statements and internal control over financial reporting for 
TARP since fiscal year 2009, its first year of operation. OFS 
continues to execute its internal controls assessment process to 
ensure that management can identify risks and deficiencies and take 
timely corrective actions. The OFS fiscal year 2014 self-assessment of 
its system of internal controls did not identify any significant 
deficiencies or material weaknesses. 

Federal Financial Management Improvement Act (FFMIA) and Financial 
Management Systems: 

FFMIA: 

FFMIA mandates that agencies "…implement and maintain financial 
management systems that comply substantially with federal financial 
management systems requirements, applicable federal accounting 
standards, and the United States Government Standard General Ledger 
(USSGL) at the transaction level." FFMIA also requires the development 
of remediation plans by any entity unable to report substantial 
compliance with these requirements. 

During fiscal year 2014, OFS used a risk-based approach to assess its 
financial management systems' compliance with FFMIA, as required by 
OMB and in accordance with Treasury-wide guidance. OFS conducted its 
self-assessment to determine its risk levels and determined that all 
OFS financial management systems are in compliance with FFMIA. 

Financial Management Systems Framework: 

OFS's financial management systems framework consists of two 
fundamental components: 1) core financial and mixed systems maintained 
by OFS and Treasury bureaus that cross-service OFS; and 2) systems 
that are financially relevant operated and supported by financial 
agents. Combined, this framework satisfies OFS's diverse financial 
operational and reporting needs as well as OFS's internal and external 
reporting requirements. 

In fiscal year 2014, OFS continued to utilize and improve the Core 
Investment Transaction Flow (CITF), TARP's system of record and 
accounting translation engine. OFS continued to fine-tune standardized 
management reports from CITF to improve their usefulness to 
management's decision-making and reduce reliance on manual processes. 

In addition, OFS utilizes financial systems maintained by Treasury 
Departmental Offices and various Treasury bureaus. These systems are 
also in substantial compliance with federal financial management 
systems requirements and undergo regular independent audits. 

In fiscal year 2014, OFS devoted substantial attention to simplifying 
its technology foot-print in concert with the reduced activity and 
size of OFS operations. The simplification effort helps ensure the 
reliability, maintainability, and controllability of OFS technology as 
TARP programs wind-down. 

Certain financially relevant systems are operated and supported by 
financial agents, which provide services to OFS. The financial agency 
agreements, maintained by the Treasury Office of the Fiscal Assistant 
Secretary in support of OFS, require financial agents to design and 
implement suitably robust security plans and internal control 
programs. These plans and programs are reviewed and approved by OFS at 
least on an annual basis. 

Legal Compliance: 

OFS is subject to numerous legislative and regulatory requirements 
that promote and support an effective internal control environment. At 
least on an annual basis, OFS conducts a formal process to identify 
and document applicable laws and regulations. This process includes 
the review and consideration of Treasury guidance, statutory and OMB 
requirements as well as consultation with OFS program management and 
the Treasury Office of General Counsel. OFS program managers are 
responsible for identifying laws and regulations which impact their 
areas, developing policies and procedures which ensure compliance with 
those laws and regulations, and disseminating information to employees 
regarding compliance responsibilities. 

In order to test compliance with laws and regulations, OFS maps the 
requirements of each applicable law or regulation to controls that 
support the requirements. The majority of the laws and regulations 
applicable to OFS are tested in this manner. In instances where OFS 
cannot leverage specific controls, OFS either performs alternative 
evaluation procedures or, through adherence to the guidance provided 
by Treasury, checks that controls are in place to meet guidance 
concerns and specifications where they apply. 

The results of OFS's evaluation of compliance with applicable laws and 
regulations are reflected in OFS's assurance statement. 

[End of section] 

Other Management Information, Initiatives, and Issues: 

Areas for Improvement: 

Over the next year, OFS management will focus on maintaining its 
internal control environment in several key areas as follows: 

* As programs continue to wind-down, OFS will remain vigilant to 
maintain effective processes and controls. OFS management will take 
steps to sustain adequate segregation of duties and the right level of 
institutional knowledge among remaining staff as the size of the 
organization decreases. 

* Third-party service providers will continue to support critical 
services as programs continue to wind-down. OFS will oversee and 
monitor closely these third parties to safeguard OFS resources and 
help ensure the operational efficiency of programs and processes. 
Where necessary and appropriate to ensure fiscal responsibility, OFS 
will look to reduce the number of third-party service providers 
commensurate with the wind-down in OFS operations. 

* As OFS programs conclude and staff continues to decrease, OFS plans 
to streamline the number and depth of policies and procedures to make 
them more efficient. OFS will manage this process through the SAT to 
ensure that any resulting risk is minimal and controlled. 

[End of section] 

Limitations of the Financial Statements: 

The principal financial statements have been prepared to report the 
financial position and results of operations of OFS's TARP programs, 
consistent with the requirements of 31 U.S.C. 3515(b). While the 
statements have been prepared from the books and records of OFS and 
the Department of the Treasury in accordance with section 116 of EESA 
and Generally Accepted Accounting Principles (GAAP) for Federal 
entities and the formats prescribed by OMB, the statements are in 
addition to the financial reports used to monitor and control 
budgetary resources which are prepared from the same books and records. 

The statements should be read with the realization that they are for a 
component of the U.S. Government, a sovereign entity. 

[End of section] 

Part 2: Financial Report: 

Message From The Chief Financial Officer (CF0): 

The Office of Financial Stability's (OFS) Agency Financial Report for 
fiscal year 2014 provides readers information on financial results 
relating to the Troubled Asset Relief Program (TARP) as required by 
the Emergency Economic Stabilization Act (EESA) of 2008 and other 
laws. It is a critical part of our efforts to ensure the highest level 
of transparency and accountability to the American people. 

For fiscal year 2014, the Government Accountability Office (GAO) 
provided OFS unmodified audit opinions on the fair presentation of our 
financial statements and the effectiveness of our internal control 
over financial reporting for TARP. In addition, the auditors 
determined that we had no material weaknesses or significant 
deficiencies relating to internal control over our accounting and 
financial reporting processes for TARP. Since the inception of TARP in 
2009, the program has consistently received unmodified audit 
opinions - a remarkable achievement for a start-up organization with 
complex programs. 

I would like to acknowledge senior management's commitment to good 
governance as well as the discipline, transparency, and care exhibited 
by OFS employees in creating and executing our organization's policies 
and procedures. We were honored to have received the Certificate of 
Excellence in Accountability Reporting (CEAR) award from the 
Association of Government Accountants for each of the five periods 
from inception through the fiscal year 2013. 

For fiscal year 2014, net cost of operations was $3.0 billion, 
resulting in a cumulative net cost of operations of $15.6 billion 
since inception. Cumulative net cost of operations consists of (1) 
total net subsidy cost of $132 million, and (2) housing costs and 
administrative costs of $14.0 billion and $1.5 billion, respectively. 
Total cumulative net subsidy cost consists of net subsidy income from 
the CPP, TIP, AGP, PPIP, SBA and TALF investments totaling $27.5 
billion, offset primarily by net subsidy cost from investments in AIG 
of $15.2 billion, and automobile company investments of $12.3 billion. 

During fiscal year 2014, OFS collected a total of $17.4 billion 
through repayments, sales, dividends, and other receipts. OFS's gross 
outstanding loan and equity investment balance as of September 30, 
2014 was $2.9 billion, comprised of $1.8 billion in AIFP, $625 million 
in CPP, and the remainder in CDCI. OFS is committed to exiting 
investments in a timely manner while maximizing collections on behalf 
of the taxpayer. During fiscal year 2014, 62 CPP institutions repaid, 
were auctioned, or were restructured and sold. OFS also fully exited 
its investment in GM in fiscal year 2014 and continued with the 
disposition of its Ally investment with an initial repayment by Ally 
followed by sales of common stock through a private offering, a public 
offering, and pre-arranged trading plans. 

In fiscal year 2014, as OFS continued to wind down, we have 
streamlined many of our processes to eliminate redundancy and become 
more efficient, making sure to maintain coverage over key controls. As 
an organization, OFS has and will continue to consolidate roles, as 
appropriate, and without comprising the internal control environment. 
Consolidation allows for the continued retention of institutional 
knowledge and helps ensure that all control points are monitored and 
executed. Maintaining rigorous internal control processes around 
transaction processing, disbursements, collections, and financial 
reporting will continue to be one of OFS's top priorities. 

I feel fortunate to play a role in continuing the tradition of sound 
fiscal stewardship at OFS. This organization recognizes the importance 
of a robust control environment and will continue to uphold the 
highest standards of integrity as we carry out our fiduciary 
responsibilities to the American people. 

Sincerely, 

Signed by: 

Lorenzo Rasetti: 
Chief Financial Officer: 

[End of section] 

Government Accountability Office Auditor's Report: 

United States Government Accountability Office: 
GAO:
441 G St. N.W. 
Washington, DC 20548: 

Independent Auditor's Report: 

To the Deputy Assistant Secretary for Financial Stability: 

In our audits of the fiscal years 2014 and 2013 financial statements 
of the Troubled Asset Relief Program (TARP), which is implemented by 
the Office of Financial Stability (OFS),[Footnote 1] we found: 

* the OFS financial statements for TARP as of and for the fiscal years 
ended September 30, 2014, and 2013, are presented fairly, in all 
material respects, in accordance with U.S. generally accepted 
accounting principles; 

* OFS maintained, in all material respects, effective internal control 
over financial reporting for TARP as of September 30, 2014; and: 

* no reportable noncompliance for fiscal year 2014 with provisions of 
applicable laws, regulations, contracts, and grant agreements we 
tested. 

The following sections discuss in more detail (1) our report on the 
financial statements and on internal control over financial reporting, 
which includes two emphasis of matters related to certain factors 
affecting the valuation of TARP direct loans and equity investments 
and the TARP reporting entity, and required supplementary information 
(RSI)[Footnote 2] and other information[Footnote 3] included with the 
financial statements; (2) our report on compliance with laws, 
regulations, contracts, and grant agreements; and (3) agency comments. 
In addition to our responsibility to audit OFS's annual financial 
statements for TARP, we are also required under the Emergency Economic 
Stabilization Act of 2008 (EESA)[Footnote 4] to report at least every 
60 days on the findings resulting from our oversight of the actions 
taken under TARP.[Footnote 5] This report responds to both of these 
requirements. We have issued numerous other reports on TARP in 
connection with this 60-day reporting responsibility, which can be 
found on GAO's website at [hyperlink, http://www.gao.gov]. 

Report on the Financial Statements and on Internal Control over 
Financial Reporting: 

In accordance with EESA, we have audited the OFS financial statements 
for TARP. The OFS financial statements for TARP comprise the balance 
sheets as of September 30, 2014, and 2013; the related statements of 
net cost of operations, changes in net position, and budgetary 
resources for the fiscal years then ended; and the related notes to 
the financial statements. We also have audited OFS's internal control 
over financial reporting for TARP as of September 30, 2014, based on 
criteria established under 31 U.S.C. § 3512(c), (d), commonly known as 
the Federal Managers' Financial Integrity Act (FMFIA). 

We conducted our audits in accordance with U.S. generally accepted 
government auditing standards.[Footnote 6] We believe that the audit 
evidence we obtained is sufficient and appropriate to provide a basis 
for our audit opinions. 

Management's Responsibility: 

OFS management is responsible for (1) the preparation and fair 
presentation of these financial statements in accordance with U.S. 
generally accepted accounting principles; (2) preparing, measuring, 
and presenting the RSI in accordance with U.S. generally accepted 
accounting principles; (3) preparing and presenting other information 
included in documents containing the audited financial statements and 
auditor's report, and ensuring the consistency of that information 
with the audited financial statements and the RSI; (4) maintaining 
effective internal control over financial reporting, including the 
design, implementation, and maintenance of internal control relevant 
to the preparation and fair presentation of financial statements that 
are free from material misstatement, whether due to fraud or error; 
(5) evaluating the effectiveness of internal control over financial 
reporting based on the criteria established under FMFIA; and (6) 
providing its assertion about the effectiveness of internal control 
over financial reporting as of September 30, 2014, based on its 
evaluation, included in the accompanying Management's Report on 
Internal Control Over Financial Reporting in appendix I. 

Auditor's Responsibility: 

Our responsibility is to express an opinion on these financial 
statements and an opinion on OFS's internal control over financial 
reporting for TARP based on our audits. U.S. generally accepted 
government auditing standards require that we plan and perform the 
audits to obtain reasonable assurance about whether the financial 
statements are free from material misstatement, and whether effective 
internal control over financial reporting was maintained in all 
material respects. We are also responsible for applying certain 
limited procedures to the RSI and other information included with the 
financial statements. 

An audit of financial statements involves performing procedures to 
obtain audit evidence about the amounts and disclosures in the 
financial statements. The procedures selected depend on the auditor's 
judgment, including the auditor's assessment of the risks of material 
misstatement of the financial statements, whether due to fraud or 
error. In making those risk assessments, the auditor considers 
internal control relevant to the entity's preparation and fair 
presentation of the financial statements in order to design audit 
procedures that are appropriate in the circumstances. An audit of 
financial statements also involves evaluating the appropriateness of 
the accounting policies used and the reasonableness of significant 
accounting estimates made by management, as well as evaluating the 
overall presentation of the financial statements. An audit of internal 
control over financial reporting includes obtaining an understanding 
of internal control over financial reporting, assessing the risk that 
a material weakness exists, evaluating the design and operating 
effectiveness of internal control over financial reporting based on 
the assessed risk, and testing relevant internal control over 
financial reporting. Our audit of internal control also considered the 
entity's process for evaluating and reporting on internal control over 
financial reporting based on criteria established under FMFIA. Our 
audits also included performing such other procedures as we considered 
necessary in the circumstances. 

We did not evaluate all internal controls relevant to operating 
objectives as broadly established under FMFIA, such as those controls 
relevant to preparing performance information and ensuring efficient 
operations. We limited our internal control testing to testing 
controls over financial reporting. Our internal control testing was 
for the purpose of expressing an opinion on whether effective internal 
control over financial reporting was maintained, in all material 
respects. Consequently, our audit may not identify all deficiencies in 
internal control over financial reporting that are less severe than a 
material weakness.[Footnote 7] 

Definitions and Inherent Limitations of Internal Control over 
Financial Reporting: 

An entity's internal control over financial reporting is a process 
effected by those charged with governance, management, and other 
personnel, the objectives of which are to provide reasonable assurance 
that (1) transactions are properly recorded, processed, and summarized 
to permit the preparation of financial statements in accordance with 
U.S. generally accepted accounting principles, and assets are 
safeguarded against loss from unauthorized acquisition, use, or 
disposition, and (2) transactions are executed in accordance with laws 
governing the use of budget authority and with other applicable laws, 
regulations, contracts, and grant agreements that could have a direct 
and material effect on the financial statements. 

Because of its inherent limitations, internal control over financial 
reporting may not prevent, or detect and correct, misstatements due to 
fraud or error. We also caution that projecting any evaluation of 
effectiveness to future periods is subject to the risk that controls 
may become inadequate because of changes in conditions, or that the 
degree of compliance with the policies or procedures may deteriorate. 

Opinion on Financial Statements: 

In our opinion, OFS's financial statements for TARP present fairly, in 
all material respects, TARP's financial position as of September 30, 
2014, and 2013, and its net cost of operations, changes in net 
position, and budgetary resources for the fiscal years then ended in 
accordance with U.S. generally accepted accounting principles. 

Emphasis of Matters: 

Valuation of TARP's Direct Loans and Equity Investments: 

As discussed in notes 2 and 6 to OFS's financial statements for TARP, 
the valuation of TARP's direct loans and equity investments is based 
on estimates using economic and financial credit subsidy models. The 
estimates use entity-specific as well as relevant market data as the 
basis for assumptions about future performance, and incorporate an 
adjustment for market risk to reflect the variability around any 
unexpected losses. In valuing the direct loans and the equity 
investments, OFS management considered and selected assumptions and 
data that it believed provided a reasonable basis for the estimated 
subsidy allowance and related subsidy cost or income reported in the 
financial statements.[Footnote 8] However, there are numerous factors 
that affect these assumptions and estimates, which are inherently 
subject to substantial uncertainty arising from the likelihood of 
future changes in general economic, regulatory, and market conditions. 
The estimates have an added uncertainty resulting from the unique 
nature of certain TARP assets. As such, there will be differences 
between the net estimated values of the direct loans and equity 
investments as of September 30, 2014, and 2013 (which totaled $2.2 
billion and $17.9 billion, respectively) and the amounts that OFS will 
ultimately realize from these assets, and such differences may be 
material. These differences will also affect TARP's ultimate cost. 
Further, TARP's ultimate cost will change as OFS continues to incur 
costs relating to its Treasury Housing Programs.[Footnote 9] 

TARP Reporting Entity: 

As discussed in note 1 to the financial statements, while OFS's 
financial statements for TARP reflect activity of OFS in implementing 
TARP, including providing resources to various entities to help 
stabilize the financial markets, the statements do not include the 
assets, liabilities, or results of operations of these entities in 
which OFS has a significant equity interest. As also discussed in note 
1 to the financial statements, OFS's investments were not made to 
engage in the business activities of the respective entities, and OFS 
has determined that none of these entities meet the criteria for a 
federal entity. 

Our opinion on OFS's financial statements for TARP is not modified 
with respect to these matters. 

Opinion on Internal Control over Financial Reporting: 

In our opinion, OFS maintained, in all material respects, effective 
internal control over financial reporting for TARP as of September 30, 
2014, based on criteria established under FMFIA. 

During our fiscal year 2014 audit, we identified deficiencies in OFS's 
internal control over financial reporting for TARP that we do not 
consider to be material weaknesses or significant deficiencies. 
[Footnote 10] Nonetheless, these deficiencies warrant OFS management's 
attention. We have communicated these matters to OFS management and, 
where appropriate, will report on them separately. 

Other Matters: 

Required Supplementary Information: 

U.S. generally accepted accounting principles issued by the Federal 
Accounting Standards Advisory Board (FASAB) require that RSI be 
presented to supplement the financial statements. Although not a part 
of the financial statements, FASAB considers this information to be an 
essential part of financial reporting for placing the financial 
statements in appropriate operational, economic, or historical 
context. We have applied certain limited procedures to the RSI in 
accordance with U.S. generally accepted government auditing standards, 
which consisted of inquiries of management about the methods of 
preparing the RSI and comparing the information for consistency with 
management's responses to the auditor's inquiries, the financial 
statements, and other knowledge we obtained during the audit of the 
financial statements, in order to report omissions or material 
departures from FASAB guidelines, if any, identified by these limited 
procedures. We did not audit and we do not express an opinion or 
provide any assurance on the RSI because the limited procedures we 
applied do not provide sufficient evidence to express an opinion or 
provide any assurance. 

Other Information: 

OFS's other information contains a wide range of information, some of 
which is not directly related to the financial statements. This 
information is presented for purposes of additional analysis and is 
not a required part of the financial statements or RSI. We read the 
other information included with the financial statements in order to 
identify material inconsistencies, if any, with the audited financial 
statements. Our audit was conducted for the purpose of forming an 
opinion on OFS's financial statements for TARP. We did not audit and 
do not express an opinion or provide any assurance on the other 
information. 

Report on Compliance with Laws, Regulations, Contracts, and Grant 
Agreements: 

In connection with our audits of OFS's financial statements for TARP, 
we tested compliance with selected provisions of applicable laws, 
regulations, contracts, and grant agreements consistent with our 
auditor's responsibility discussed below. We caution that 
noncompliance may occur and not be detected by these tests. We 
performed our tests of compliance in accordance with U.S. generally 
accepted government auditing standards. 

Management's Responsibility: 

OFS management is responsible for complying with laws, regulations, 
contracts, and grant agreements applicable to OFS. 

Auditor's Responsibility: 

Our responsibility is to test compliance with selected provisions of 
laws, regulations, contracts, and grant agreements applicable to OFS 
that have a direct effect on the determination of material amounts and 
disclosures in the TARP financial statements, and perform certain 
other limited procedures. Accordingly, we did not test compliance with 
all laws, regulations, contracts, and grant agreements applicable to 
OFS. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, 
and Grant Agreements: 

Our tests for compliance with selected provisions of applicable laws, 
regulations, contracts, and grant agreements disclosed no instances of 
noncompliance for fiscal year 2014 that would be reportable under U.S. 
generally accepted government auditing standards. However, the 
objective of our tests was not to provide an opinion on compliance 
with laws, regulations, contracts, and grant agreements applicable to 
OFS. Accordingly, we do not express such an opinion. 

Intended Purpose of Report on Compliance with Laws, Regulations, 
Contracts, and Grant Agreements: 

The purpose of this report is solely to describe the scope of our 
testing of compliance with selected provisions of applicable laws, 
regulations, contracts, and grant agreements, and the results of that 
testing, and not to provide an opinion on compliance. This report is 
an integral part of an audit performed in accordance with U.S. 
generally accepted government auditing standards in considering 
compliance. Accordingly, this report on compliance with laws, 
regulations, contracts, and grant agreements is not suitable for any 
other purpose. 

Agency Comments: 

In commenting on a draft of this report, OFS stated that it is proud 
to receive unmodified opinions on its financial statements and its 
internal control over financial reporting. OFS also stated that it is 
committed to maintaining the high standards and transparency reflected 
in these audit results. The complete text of OFS's response is 
reprinted in appendix II. 

Signed by: 

Gary T. Engel: 
Director: 
Financial Management and Assurance: 

November 5, 2014: 

Footnotes: 

[1] Section 101 of the Emergency Economic Stabilization Act of 2008, 
Pub. L. No. 110-343, div. A, 122 Stat 3765, 3767 (Oct. 3, 2008), 
classified at 12 U.S.C. § 5211, established OFS within the Department 
of the Treasury (Treasury) to implement TARP. 

[2] RSI consists of "Management's Discussion and Analysis" and the 
"Combined Statement of Budgetary Resources", which are included with 
the financial statements. 

[3] Other information consists of information included with the 
financial statements, other than RSI and the auditor's report. 

[4] EESA is classified, in part, as amended, as sections 5201 through 
5261 of Title 31 of the United States Code. Section 116(b) of EESA, 12 
U.S.C. § 5226(b), requires that Treasury annually prepare and submit 
to Congress and the public audited fiscal year financial statements 
for TARP that are prepared in accordance with generally accepted 
accounting principles. Section 116(b) further requires that GAO audit 
TARP's financial statements annually in accordance with generally 
accepted auditing standards. 

[5] EESA § 116(a)(3), 12 U.S.C. § 5226(a)(3). 

[6] Section 116(b) of EESA requires that GAO audit TARP's financial 
statements annually in accordance with generally accepted auditing 
standards (GAAS). U.S. generally accepted government auditing 
standards incorporates by reference the American Institute of 
Certified Public Accountants Statements on Auditing Standards which 
constitutes GAAS. 

[7] A material weakness is a deficiency, or combination of 
deficiencies, in internal control over financial reporting, such that 
there is a reasonable possibility that a material misstatement of the 
entity's financial statements will not be prevented, or detected and 
corrected, on a timely basis. A deficiency in internal control exists 
when the design or operation of a control does not allow management or 
employees, in the normal course of performing their assigned 
functions, to prevent, or detect and correct, misstatements on a 
timely basis. 

[8] The subsidy cost or income is composed of (1) the change in the 
subsidy cost allowance, net of write-offs; (2) net intragovernmental 
interest cost; (3) certain inflows from the direct loans and equity 
investments (e.g., dividends, interest, net proceeds from sales and 
repurchases of assets in excess of cost, and other realized fees); and 
(4) the change in the estimated discounted net cash flows related to 
the Federal Housing Administration refinance program. 

[9] The Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Pub. L. No. 111-203, title XIII, § 1302, 124 Stat. 1376, 2133 (July 
21, 2010), (1) limited Treasury's authority to purchase or guarantee 
troubled assets to a maximum of $475 billion; (2) changed this limit 
to a cap on all purchases and guarantees made without regard to 
subsequent sale, repayment, or cancellation of assets or guarantees; 
and (3) prohibited Treasury, under EESA, from incurring any 
obligations for a program or initiative unless the program or 
initiative had already been initiated prior to June 25, 2010. 

[10] A significant deficiency is a deficiency, or a combination of 
deficiencies, in internal control that is less severe than a material 
weakness, yet important enough to merit attention by those charged 
with governance. 

[End of section] 

Appendix I: Management's Report on Internal Control Over Financial 
Reporting: 

Department of The Treasury: 
Washington, D.C. 20220: 

Management's Report on Internal Control Over Financial Reporting: 

The Office of Financial Stability's (OFS) internal control over 
financial reporting (for TARP) is a process effected by those charged 
with governance, management, and other personnel, the objectives of 
which are to provide reasonable assurance that (1) transactions are 
properly recorded, processed, and summarized to permit the preparation 
of financial statements in accordance with U.S. generally accepted 
accounting principles, and assets are safeguarded against loss from 
unauthorized acquisition, use, or disposition; and (2) transactions 
are executed in accordance with laws governing the use of budget 
authority and with other applicable laws, regulations, contracts, and 
grant agreements that could have a direct and material effect on the 
financial statements. 

OFS management is responsible for maintaining effective internal 
control over financial reporting, including the design, 
implementation, and maintenance of internal control relevant to the 
preparation and fair presentation of financial statements that are 
free from material misstatement, whether due to fraud or error. OFS 
management evaluated the effectiveness of OFS's internal control over 
financial reporting as of September 30, 2014, based on the criteria 
established under 31 U.S.C. 3512(c), (d) (commonly known as the 
Federal Managers' Financial Integrity Act). 

Based on that evaluation, we conclude that, as of September 30, 2014, 
OFS's internal control over financial reporting was effective. 

Office of Financial Stability: 

Signed by: 

Timothy Bowler: 
Deputy Assistant Secretary for Financial Stability: 

Signed by: 

Lorenzo Rasetti: 
Chief Financial Officer: 

November 5, 2014: 

[End of section] 

Appendix II: OFS Response to Auditor's Report: 

Department of The Treasury: 
Deputy Assistant Secretary: 
Washington, D.C. 20220: 

November 5, 2014: 

Mr. Gary T. Engel: 
Director, Financial Management and Assurance: 
U.S. Government Accountability Office: 
441 G Street, N.W.
Washington, DC 20548: 

Dear Mr. Engel: 

We have reviewed the Independent Auditor's Report concerning your 
audit of the Office of Financial Stability's (OFS) fiscal year 2014 
financial statements. OFS is proud to receive unmodified opinions on 
our financial statements and our internal controls over financial 
reporting. 

We appreciate the professionalism and commitment demonstrated by your 
staff throughout the audit process. The process was valuable for us 
and resulted in concrete improvements in our operations and financial 
management efforts. 

OFS is committed to maintaining the high standards and transparency 
reflected in these audit results as we carry out our responsibilities 
for managing the Troubled Asset Relief Program. 

Sincerely, 

Signed by: 

Timothy J. Bowler: 
Deputy Assistant Secretary for Financial Stability: 

[End of section] 

Financial Statements: 

The Office of Financial Stability (OFS) prepares financial statements 
for the Troubled Asset Relief Program (TARP) as a critical aspect of 
ensuring the accountability and stewardship for the public resources 
entrusted to it and as required by Section 116 of the Emergency 
Economic Stabilization Act of 2008 (EESA). Preparation of these 
statements is also an important part of the OFS's financial management 
goal of providing accurate and reliable information that may be used 
to assess performance and allocate resources. The OFS management is 
responsible for the accuracy and propriety of the information 
contained in the financial statements and the quality of internal 
controls. The statements are, in addition to other financial reports, 
used to monitor and control budgetary resources. The OFS prepares 
these financial statements from its books and records in conformity 
with the accounting principles generally accepted in the United States 
for federal entities and the formats prescribed by the Office of 
Management and Budget (OMB). 

While these financial statements reflect activity of the OFS in 
executing its programs, including providing resources to various 
entities to help stabilize the financial markets, they do not include, 
as more fully discussed in Note 1, the assets, liabilities, or results 
of operations of commercial entities in which the OFS has a 
significant equity interest. 

The Balance Sheet summarizes the OFS assets, liabilities and net 
position as of September 30, 2014 and 2013. Intragovernmental assets 
and liabilities resulting from transactions between federal agencies 
are presented separately from assets and liabilities resulting from 
transactions with the public. 

The Statement of Net Cost presents the net cost of (income from) 
operations for the fiscal years ended September 30, 2014 and 2013. 

The Statement of Changes in Net Position presents the change in OFS's 
net position for two components, Cumulative Results of Operations and 
Unexpended Appropriations, for the fiscal years ended September 30, 
2014 and 2013. The ending balances of both components of net position 
are also reported on the Balance Sheet. 

The Statement of Budgetary Resources provides information about 
funding and availability of budgetary resources and the status of 
those resources for the fiscal years ended September 30, 2014 and 2013. 

The accompanying notes are an integral part of these financial 
statements. 

Office of Financial Stability (Troubled Asset Relief Program): 
Balance Sheet: 
As of September 30, 2014 and 2013 (Dollars in Millions): 

Assets: 

Intragovernmental Assets: 

Fund Balance with Treasury (Note 3); 
2014: $33,210; 
2013: $53,240. 

Other; 
2014: [Empty]; 
2013: $1. 

Total Intragovernmental Assets; 
2014: $33,210; 
2013: $53,241. 

Cash on Deposit for Housing Program (Note 4): 
2014: $50; 
2013: $50. 

Direct Loans and Equity Investments, Net (Note 6); 
2014: $2,174; 
2013: $17,869. 

Total Assets; 
2014: $35,434; 
2013: $71,160. 

Liabilities: 

Intragovernmental Liabilities: 

Accounts Payable and Other Liabilities; 
2014: $4; 
2013: $1. 

Due to the General Fund (Note 7); 
2014: $1,488; 
2013: $8,139. 

Principal Payable to the Bureau of the Public Debt (Note 8); 
2014: $1,3304; 
2013: $11,949. 

Total Intragovernmental Liabilities; 
2014: $2,796; 
2013: $20,089. 

Accounts Payable and Other Liabilities; 
2014: $47; 
2013: $87. 

Liability for Treasury Housing Programs Under TARP: 

FHA - Refinance Program (Notes 5 and 6); 
2014: $6; 
2013: $9. 

Making Home Affordable Program and Hardest Hit Fund (Note 5);
2014: $243; 
2013: $263. 

Total Intragovernmental Liabilities; 
2014: $
2013: $20,448. 

Commitments and Contingencies (Note 9): 

Net Position: 

Unexpended Appropriations; 
2014: $32,295; 
2013: $50,663. 

Cumulative Results of Operations; 
2014: $47; 
2013: $49. 

Total Net Position; 
2014: $32,342; 
2013: $50,712. 

Total Liabilities and Net Position; 
2014: $35,434; 
2013: $71,160. 

[End of table] 

Statement Of Net Cost: 
For the Years Ended September 30, 2014 and 2013 (Dollars in Millions): 

Strategic Goal: To Ensure The Overall Stability And Liquidity Of The 
Financial System, Prevent Avoidable Foreclosures And Preserve 
Homeownership: 

Gross Cost of (Income from) Operations: 

Program Subsidy Cost (Income) (Note 6): 

Direct Loan and Equity Investment Programs; 
2014: ($1,492); 
2013: ($11,794). 

Other Credit Programs; 
2014: ($3); 
2013: ($116). 

Total Program Subsidy Cost (Income); 
2014: ($1,495); 
2013: ($11,910). 

Interest Expense on Borrowings from the Bureau of the Public Debt 
(Note 10); 
2014: $218; 
2013: $856. 

Treasury Housing Programs Under TARP (Note 5); 
2014: $4,280; 
2013: $3,961. 

Administrative Cost; 
2014: $186; 
2013: $248. 

Total Gross Cost of (Income from) Operations; 
2014: $3,189; 
2013: ($6,845). 

Earned Revenue: 

Dividend and Interest Income - Programs (Note 6); 
2014: ($245); 
2013: ($1,292). 

Interest Income on Financing Account (Note 10); 
2014: ($29); 
2013: ($235). 

Subsidy Allowance Amortization (Note 10); 
2014: $56; 
2013: $671. 

Total Earned Revenue; 
2014: ($218); 
2013: ($856). 

Total Net Cost of (Income from) Operations; 
2014: $2,971; 
2013: ($7,701). 

[End of table] 

Statement Of Changes In Net Position: 
For the Years Ended September 30, 2014 and 2013 (Dollars in Millions): 

Beginning Balances: 
2014 Unexpended Appropriations: $50,663; 
2014 Cumulative Results of Operations: $49; 
2013 Unexpended Appropriations: $54,572; 
2013 Cumulative Results of Operations: ($707). 

Budgetary Financing Sources: 

Appropriations Received: 
2014 Unexpended Appropriations: $308; 
2014 Cumulative Results of Operations: 0; 
2013 Unexpended Appropriations: $788; 
2013 Cumulative Results of Operations: 0. 

Appropriations Used: 
2014 Unexpended Appropriations: ($4,556); 
2014 Cumulative Results of Operations: $4,556; 
2013 Unexpended Appropriations: ($4,697); 
2013 Cumulative Results of Operations: $4,697. 

Other Adjustments - Canceled Authority: 
2014 Unexpended Appropriations: ($14,120); 
2014 Cumulative Results of Operations: 0; 
2013 Unexpended Appropriations: 0; 
2013 Cumulative Results of Operations: 0. 

Other Financing Sources: 
2014 Unexpended Appropriations: 0; 
2014 Cumulative Results of Operations: ($1,587); 
2013 Unexpended Appropriations: 0; 
2013 Cumulative Results of Operations: ($6,945). 

Total Financing Sources: 
2014 Unexpended Appropriations: ($18,368); 
2014 Cumulative Results of Operations: $2,969; 
2013 Unexpended Appropriations: ($3,909); 
2013 Cumulative Results of Operations: $756. 

Net (Cost of) Income from Operations; 
2014 Unexpended Appropriations: 0; 
2014 Cumulative Results of Operations: ($2,971); 
2013 Unexpended Appropriations: 0; 
2013 Cumulative Results of Operations: $7,701. 

Net Change: 
2014 Unexpended Appropriations: ($18,368); 
2014 Cumulative Results of Operations: ($2); 
2013 Unexpended Appropriations: ($3,909); 
2013 Cumulative Results of Operations: $756. 

Ending Balances: 
2014 Unexpended Appropriations: $32,295; 
2014 Cumulative Results of Operations: $47; 
2013 Unexpended Appropriations: $50,663; 
2013 Cumulative Results of Operations: $49. 

[End of table] 

Statement Of Budgetary Resources: 
For the Years Ended September 30, 2013 and 2012 (Dollars in Millions): 

Budgetary Resources: 

Unobligated Balances Brought Forward: 
2014: 
Budgetary Accounts: $21,606; 
Nonbudgetary Financing Accounts: $1,462; 
2013: 
Budgetary Accounts: $14,350; 
Nonbudgetary Financing Accounts: $17,631. 

Recoveries of Prior Year Unpaid Obligations; 
2014: 
Budgetary Accounts: $261; 
Nonbudgetary Financing Accounts: $865; 
2013: 
Budgetary Accounts: $7,246; 
Nonbudgetary Financing Accounts: $4,941. 

Borrowing Authority Withdrawn; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($2,611). 

Actual Repayments of Debt, Prior Year Balances; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($1,444); 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($17,738). 

Canceled Authority: 
2014: 
Budgetary Accounts: ($14,120); 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: 0. 

Unobligated Balance from Prior-Year Budget Authority, Net: 
2014: 
Budgetary Accounts: $7,747; 
Nonbudgetary Financing Accounts: $883; 
2013: 
Budgetary Accounts: $21,596; 
Nonbudgetary Financing Accounts: $2,223. 

Appropriations: 
2014: 
Budgetary Accounts: $308; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $788; 
Nonbudgetary Financing Accounts: 0. 

Borrowing Authority: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $839; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $208. 

Spending Authority from Offsetting Collections; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $7,394; 
2013: 
Budgetary Accounts: $1; 
Nonbudgetary Financing Accounts: $13,131. 

Total Budgetary Resources (Note 11): 
2014: 
Budgetary Accounts: $8,055; 
Nonbudgetary Financing Accounts: $9,116; 
2013: 
Budgetary Accounts: $22,385; 
Nonbudgetary Financing Accounts: $15,562. 

Status Of Budgetary Resources: 

Obligations Incurred: 
2014: 
Budgetary Accounts: $$295; 
Nonbudgetary Financing Accounts: $8,502; 
2013: 
Budgetary Accounts: $779; 
Nonbudgetary Financing Accounts: $14,100. 

Unobligated Balance, Apportioned: 
2014: 
Budgetary Accounts: $14; 
Nonbudgetary Financing Accounts: $558; 
2013: 
Budgetary Accounts: $11; 
Nonbudgetary Financing Accounts: $668. 

Unapportioned: 
2014: 
Budgetary Accounts: $7,746; 
Nonbudgetary Financing Accounts: $56; 
2013: 
Budgetary Accounts: $21,595; 
Nonbudgetary Financing Accounts: $794. 

Total Unobligated Balance: 
2014: 
Budgetary Accounts: $7,760;
Nonbudgetary Financing Accounts: $614; 
2013: 
Budgetary Accounts: $21,606; 
Nonbudgetary Financing Accounts: $1,462. 

Total Status Of Budgetary Resources: 
2014: 
Budgetary Accounts: $8,055; 
Nonbudgetary Financing Accounts: $9,116; 
2013: 
Budgetary Accounts: $22,385; 
Nonbudgetary Financing Accounts: $15,562. 

Change In Obligated Balances: 

Obligated Balance Brought Forward: 

Unpaid Obligations Brought Forward October 1: 
2014: 
Budgetary Accounts: $29,406; 
Nonbudgetary Financing Accounts: $993; 
2013: 
Budgetary Accounts: $40,548; 
Nonbudgetary Financing Accounts: $5,926. 

Obligations Incurred: 
2014: 
Budgetary Accounts: $295; 
Nonbudgetary Financing Accounts: $8,502; 
2013: 
Budgetary Accounts: $779; 
Nonbudgetary Financing Accounts: $14,100. 

Gross Outlays: 
2014: 
Budgetary Accounts: ($4,612); 
Nonbudgetary Financing Accounts: ($8,503); 
2013: 
Budgetary Accounts: ($4,675); 
Nonbudgetary Financing Accounts: ($14,092). 

Recoveries of Prior Year Unpaid Obligations: 
2014: 
Budgetary Accounts: ($261); 
Nonbudgetary Financing Accounts: ($865); 
2013: 
Budgetary Accounts: ($7,246); 
Nonbudgetary Financing Accounts: ($4,941). 

Obligated Balance, Net, End of Year: 

Unpaid Obligations, End of Year: 
2014: 
Budgetary Accounts: $24,828; 
Nonbudgetary Financing Accounts: $127; 
2013: 
Budgetary Accounts: $29,406; 
Nonbudgetary Financing Accounts: $993. 

Uncollected Customer Payments from Federal Sources: 

Uncollected Payments Brought Forward, October 1: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($226); 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($349). 

Change in Uncollected Payments: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $197; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $123. 

Uncollected Payments from Federal Sources, End of Year: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($29); 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($226). 

Obligated Balance, Net, End of Year: 
2014: 
Budgetary Accounts: $24,828; 
Nonbudgetary Financing Accounts: $98; 
2013: 
Budgetary Accounts: $29,406; 
Nonbudgetary Financing Accounts: $767. 

Obligated Balances: 

(Net of Unpaid Obligations and Uncollected Payments Above): 

Obligated Balance, Net, Brought Forward, October 1: 
2014: 
Budgetary Accounts: $29,406; 
Nonbudgetary Financing Accounts: $767; 
2013: 
Budgetary Accounts: $40,548; 
Nonbudgetary Financing Accounts: $5,577. 

Obligated Balance, Net, End of Year: 
2014: 
Budgetary Accounts: $24,828; 
Nonbudgetary Financing Accounts: $98; 
2013: 
Budgetary Accounts: $29,406; 
Nonbudgetary Financing Accounts: $767. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross: 
2014: 
Budgetary Accounts: $308; 
Nonbudgetary Financing Accounts: $8,233; 
2013: 
Budgetary Accounts: $789; 
Nonbudgetary Financing Accounts: $13,339. 

Actual Offsetting Collections: 
2014: 
Budgetary Accounts: 0;
Nonbudgetary Financing Accounts: ($17,541); 
2013: 
Budgetary Accounts: ($1); 
Nonbudgetary Financing Accounts: ($36,604). 

Change in Uncollected Customer Payments from Federal Sources: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $197; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $123. 

Budget Authority, Net; 
2014: 
Budgetary Accounts: $308; 
Nonbudgetary Financing Accounts: ($9,111); 
2013: 
Budgetary Accounts: $788; 
Nonbudgetary Financing Accounts: ($23,142). 

Gross Outlays; 
2014: 
Budgetary Accounts: $4,612; 
Nonbudgetary Financing Accounts: $8,503; 
2013: 
Budgetary Accounts: $4,675; 
Nonbudgetary Financing Accounts: $14,092. 

Actual Offsetting Collections: 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: ($17,541); 
2013: 
Budgetary Accounts: ($1); 
Nonbudgetary Financing Accounts: ($36,604). 

Net Outlays: 
2014: 
Budgetary Accounts: $4,612; 
Nonbudgetary Financing Accounts: ($9,038); 
2013: 
Budgetary Accounts: $4,674; 
Nonbudgetary Financing Accounts: ($22,512). 

Distributed Offsetting Receipts; 
2014: 
Budgetary Accounts: ($8,238); 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: ($13,218); 
Nonbudgetary Financing Accounts: 0. 

Agency Outlays, Net: 
2014: 
Budgetary Accounts: ($3,626); 
Nonbudgetary Financing Accounts: ($9,038); 
2013: 
Budgetary Accounts: ($8,544); 
Nonbudgetary Financing Accounts: ($22,512). 

[End of table] 

Notes To The Financial Statements: 

Note 1. Reporting Entity: 

The Troubled Asset Relief Program (TARP) was authorized by the 
Emergency Economic Stabilization Act of 2008, as amended (EESA or "the 
Act"). The Act gave the Secretary of the Treasury (the Secretary) 
broad and flexible authority to establish the TARP to purchase and 
insure mortgages and other troubled assets, which permitted the 
Secretary to inject capital into banks and other commercial companies 
by taking equity positions in those entities to help stabilize the 
financial markets. 

The EESA established certain criteria under which the TARP would 
operate, including provisions that impact the budgeting, accounting, 
and reporting of troubled assets acquired under the Act. Section 115 
of the EESA limited the authority of the Secretary to purchase 
troubled assets up to $700.0 billion outstanding at any one time, 
calculated as the aggregate purchase prices of all troubled assets 
held. In July 2010, the Dodd-Frank Wall Street Reform and Consumer 
Protection Act amended Section 115 of the EESA, limiting the TARP's 
authority to a total of $475.0 billion cumulative obligations (i.e. 
purchases and guarantees) and prohibiting any new obligations for 
programs or initiatives that had not been publicly announced prior to 
June 25, 2010. Of the maximum $475.0 billion authority under the EESA, 
OFS had utilized (including purchases made, legal commitments to make 
purchases and offsets for guarantees made) $455.7 billion as of 
September 30, 2014 and $456.6 billion as of September 30, 2013. The 
reduction between 2014 and 2013 reflects the deobligation of unused 
funds in certain programs. 

During fiscal year 2014, the TARP administered the following programs: 
the Capital Purchase Program (CPP); the Community Development Capital 
Initiative (CDCI); the Public-Private Investment Program (PPIP); the 
Term Asset-Backed Securities Loan Facility (TALF); the Automotive 
Industry Financing Program (AIFP); and the Treasury Housing Programs 
Under TARP. During fiscal year 2013, the American International Group, 
Inc. (AIG) Investment Program (formerly known as the Systemically 
Significant Failing Institutions Program) and the Asset Guarantee 
Program (AGP) were closed. See Notes 5 and 6 for details regarding 
these programs. 

While these financial statements reflect the activity of the OFS in 
executing its programs, including providing resources to various 
entities to help stabilize the financial markets, they do not include 
the assets, liabilities, or results of operations of commercial 
entities in which the OFS has a significant equity interest. Through 
the purchase of troubled assets, the OFS entered into several 
different types of direct loan, equity investment, and other credit 
programs (which consist of the AGP and the Federal Housing 
Administration (FHA) Refinance Program) (collectively, the OFS 
programs) with private entities. The OFS programs were entered into 
with the intent of helping to stabilize the financial markets and 
mitigating, as best as possible, any adverse impact on the economy; 
they were not entered into to engage in the business activities of the 
respective private entities. Based on this intent, the OFS concluded 
that such programs are considered "bailouts," under the provisions of 
paragraph 50 of Statement of Federal Financial Accounting Concepts 
(SFFAC) No. 2, Entity and Display. In addition, these entities are not 
included in the Federal budget and, therefore, do not meet the 
conclusive criteria in SFFAC No. 2. As such, the OFS determined that 
none of these entities should be classified as a federal entity. 
Consequently, their assets, liabilities and results of operations were 
not consolidated in these OFS financial statements, but the value of 
such investments was recorded in the OFS financial statements. 

In addition, the OFS has made loans and investments in certain Special 
Purpose Vehicles (SPV)[Footnote 3]. SFFAC No. 2, paragraphs 43 and 44, 
reference indicative criteria such as ownership and control to carry 
out government powers and missions, as criteria in the determination 
about whether an entity should be classified as a federal 
entity. The OFS has concluded that none of the SPVs meet the 
conclusive or indicative criteria to be classified as a federal 
entity. As a result, the assets, liabilities and results of operations 
of the SPVs are not included in these OFS financial statements. 
Additional disclosures regarding certain SPV equity interests are 
included in Notes 2 and 6; see PPIP and TALF Investment Programs. 

The EESA established the OFS within the Office of Domestic Finance of 
the U.S. Department of the Treasury (Treasury) to administer the TARP 
and required its separate audited financial statements. The OFS 
prepares stand-alone financial statements for TARP to satisfy EESA 
Section 116(b)(1). Additionally, as an office of the Treasury, its 
financial statements are consolidated into Treasury's Agency Financial 
Report. 

Note 2. Summary Of Significant Accounting Policies: 

Basis of Accounting and Presentation: 

The accompanying financial statements include the results of 
operations of the TARP and have been prepared from the accounting 
records of the OFS in conformity with accounting principles generally 
accepted in the United States for federal entities (Federal GAAP), and 
the OMB Circular A-136, Financial Reporting Requirements, as amended. 
Federal GAAP includes the standards issued by the Federal Accounting 
Standards Advisory Board (FASAB). The FASAB is recognized by the 
American Institute of Certified Public Accountants (AICPA) as the 
official accounting standards-setting body for the U.S. Government. 

Section 123(a) of the EESA requires that the budgetary cost of 
purchases of troubled assets and guarantees of troubled assets, and 
any cash flows associated with authorized activities, be determined in 
accordance with the Federal Credit Reform Act of 1990 (FCRA). Section 
123(b)(1) of the EESA requires that the budgetary costs of troubled 
assets and guarantees of troubled assets be calculated by adjusting 
the discount rate for market risks. As a result of this requirement, 
the OFS considered market risk in its calculation and determination of 
the estimated net present value of its direct loans, equity 
investments and other credit programs for budgetary purposes. 
Similarly, market risk is considered in the valuations for financial 
reporting purposes (see Note 6 for further discussion). 

Consistent with its accounting policy for equity investments in 
private entities, including SPVs, the OFS accounts for its equity 
investments at fair value. Since fair value is not defined in federal 
accounting standards, as established in Statement of Federal Financial 
Accounting Standards (SFFAS) No. 34, The Hierarchy of Generally 
Accepted Accounting Principles, Including the Application of Standards 
Issued by the Financial Accounting Standards Board, the OFS conforms 
to fair value definitions contained in the private sector Financial 
Accounting Standards Codification (ASC) 820, Fair Value Measurement. 
OFS defines fair value of its equity investments as the estimated 
amount of proceeds that would be received if the equity investments 
were sold to a market participant in an orderly transaction. Note 6 
presents Direct Loan and Equity Investments tabulated by the Level of 
Observation of the inputs used in the valuation process. Level 1 
assets are measured using quoted market prices for identical assets. 
Level 2 assets are measured using observable market inputs other than 
direct market quotes. Level 3 assets are measured using unobservable 
inputs. 

The OFS uses the present value accounting concepts embedded in SFFAS 
No. 2, Accounting for Direct Loans and Loan Guarantees, as amended 
(SFFAS No. 2), to derive fair value measurements for its equity 
investments in Levels 2 and 3. The OFS concluded that some of the 
equity investments, such as preferred stock, were similar to direct 
loans since there was a stated rate and a redemption feature which, if 
elected, required repayment of the amount invested. Furthermore, 
consideration of market risk provided a basis to arrive at a fair 
value measurement. Therefore, the OFS concluded that SFFAS No. 2 (as 
more fully discussed below) should be followed for reporting and 
disclosure requirements of its equity investments. 

The OFS applies the provisions of FCRA for budgetary accounting and 
the associated FASAB accounting standard SFFAS No. 2 for financial 
reporting for direct loans and other credit programs. Direct loans 
disbursed and outstanding are recognized as assets at the net present 
value of their estimated future cash flows. Liabilities under the FHA-
Refinance Program are recognized at the net present value of their 
estimated future cash flows when the FHA guarantees loans. 

For direct loans and equity investments, the subsidy allowance account 
represents the difference between the face value of the outstanding 
direct loan and equity investment balance and the net present value of 
the expected future cash flows or fair value, and is reported as an 
adjustment to the face value of the direct loan or equity investment. 

The OFS recognizes dividend income associated with equity investments 
when declared by the entity in which the OFS has invested and when 
received in relation to any repurchases, exchanges and restructurings. 
The OFS recognizes interest income when earned on performing loans; 
interest income is not accrued on non-performing loans. The OFS 
reflects changes, referred to as reestimates, in its determination of 
the value of direct loans, equity investments, and other credit 
programs in the subsidy cost on the Statement of Net Cost annually. 

In certain programs, the OFS has received common stock warrants, 
additional preferred stock (referred to as warrant preferred stock) or 
additional notes as additional consideration. The OFS accounts for any 
proceeds received from the sale of these investments as fees under 
SFFAS No. 2; as such, they are credited to the subsidy allowance 
rather than to income. 

Use of Estimates: 

The OFS has made certain estimates and assumptions relating to the 
reporting of assets, liabilities, revenues, and cost to prepare these 
financial statements. Actual results could significantly differ from 
these estimates. Major financial statement lines that include 
estimates are Direct Loans and Equity Investments, Net, and the 
Liabilities for Treasury Housing Programs Under TARP on the Balance 
Sheet, and related Program Subsidy Cost (Income) on the Statement of 
Net Cost (see Note 6). 

The most significant differences between actual results and estimates 
may occur in the valuation of OFS programs. These valuation estimates 
are sensitive to slight changes in model assumptions, such as general 
economic conditions, specific stock price volatility of the entities 
in which the OFS has an equity interest, estimates of expected 
default, and prepayment rates. Forecasts of future financial results 
have inherent uncertainty, and the Direct Loans and Equity 
Investments, Net, as of fiscal year ends, include relatively illiquid 
assets with values that are sensitive to future economic conditions 
and other assumptions. Estimates are also prepared for the FHA-
Refinance Program to determine the liability for losses. 

Credit Reform Accounting: 

The OFS accounts for the cost of direct loans, equity investments and 
other credit programs in accordance with Section 123(a) of the EESA 
and the FCRA for budgetary accounting, and fair value and SFFAS No. 2 
for financial reporting. The FCRA calls for the establishment of 
program, financing and general fund receipt accounts to segregate and 
report receipts and disbursements. These accounts are classified as 
either budgetary or non-budgetary in the Statement of Budgetary 
Resources. The OFS maintains budgetary program accounts which receive 
appropriations and obligate funds to cover the subsidy cost of direct 
loans, equity investments and other credit programs, and disburses the 
subsidy cost to the OFS financing accounts. The financing accounts are 
non-budgetary accounts that are used to record all of the cash flows 
resulting from the OFS direct loans, equity investments and other 
credit programs. Cash flows include disbursements, borrower 
repayments, repurchases, fees, recoveries, interest, dividends, 
proceeds from the sale of stock and warrants, borrowings from and 
repayments to Treasury, negative subsidy and the subsidy cost received 
from the program accounts, as well as subsidy reestimates and 
modifications. 

Financing arrangements specifically for the TARP activities are 
provided for in EESA as follows: (1) borrowing for program funds under 
Section 118, reported as "appropriations" in these financial 
statements and (2) borrowing by financing accounts for amounts not 
covered by subsidy cost, under the FCRA and Section 123. The OFS uses 
budgetary general fund receipt accounts to record the receipt of 
amounts paid from the financing accounts when there is a negative 
subsidy or negative modification (a reduction in subsidy cost due to 
changes in program policy or terms that change estimated future cash 
flows) from the original estimate or a downward reestimate. Any assets 
in these accounts are non-entity assets, not available to the OFS, and 
are offset by intragovernmental liabilities. At the end of the fiscal 
year, the fund balance transferred to the U.S. Treasury through the 
general fund receipt accounts is not included in the OFS's reported 
Fund Balance with Treasury. 

SFFAS No. 2 requires that the actual and expected costs of federal 
credit programs be fully recognized in financial reporting. The OFS 
calculated and recorded initial estimates of the future performance of 
direct loans, equity investments, and other credit programs. The data 
used for these estimates were reestimated annually, at fiscal year-
end, to reflect adjustments for market risk, asset performance, and 
other key variables and economic factors. The reestimate data were 
then used to estimate and report the "Program Subsidy Cost (Income)" 
in the Statement of Net Cost. A detailed discussion of the OFS subsidy 
calculation and reestimate assumptions, process and results is 
provided in Note 6. 

Fund Balance with Treasury: 

The Fund Balance with Treasury includes general, financing and other 
funds available to pay current liabilities and finance authorized 
purchases. Cash receipts and disbursements are processed by the 
Treasury, and the OFS's records are reconciled with those of the 
Treasury on a regular basis. 

Available unobligated balances represent amounts that are apportioned 
for obligation in the current fiscal year. Unavailable unobligated 
balances represent unanticipated collections in excess of the amounts 
apportioned which are unavailable. Obligated balances not yet 
disbursed include undelivered orders and unpaid expended authority. 
See Note 3. 

Direct Loans and Equity Investments, Net: 

Direct Loans and Equity Investments, Net represents the estimated net 
outstanding amount of the OFS direct loans and equity investments. The 
direct loan and equity investment balances have been determined in 
accordance with the provisions of SFFAS No. 2 or at fair value (see 
Note 6). Write-offs of gross direct loan and equity investment 
balances (presented in Note 6 table) are recorded when a legal event 
occurs, such as a bankruptcy or liquidation with suspension or 
termination of collection action, or extinguishment of a debt 
instrument by agreement and there is currently no expectation of 
further collection. Under SFFAS No. 2, write-offs do not affect the 
Statement of Net Cost because the written-off asset is fully reserved. 
Therefore, the write-off removes the asset balance and the associated 
subsidy allowance. 

Asset Guarantee Program: 

During fiscal year 2010, the OFS and the Federal Deposit Insurance 
Corporation (FDIC) entered into a termination agreement with the Asset 
Guarantee Program's sole participant, Citigroup. In fiscal year 2013, 
under the termination agreement, the FDIC transferred certain 
Citigroup trust preferred securities to the OFS, less any losses on 
FDIC's guarantee of Citigroup debt, which OFS then sold. As of 
September 30, 2013, there were no remaining securities under the Asset 
Guarantee Program. See Note 6. 

General Property and Equipment: 

Equipment with a cost of $50,000 or more per unit and a useful life of 
two years or more is capitalized at full cost and depreciated using 
the straight-line method over the equipment's useful life. Other 
equipment not meeting the capitalization criteria is expensed when 
purchased. Software developed for internal use is capitalized and 
amortized over the estimated useful life of the software if the cost 
per project is greater than $250,000. However, OFS may expense such 
software if management concludes that total period costs would not be 
materially distorted and the cost of capitalization is not 
economically prudent. Based upon these criteria, the OFS reports no 
capitalized property, equipment or software on its Balance Sheet as of 
September 30, 2014 and 2013. 

Accounts Payable and Other Liabilities: 

Accounts Payable and Other Liabilities are amounts due to 
intragovernmental or public entities that are anticipated to be 
liquidated during the next operating cycle (within one year from the 
balance sheet date). 

Due to the General Fund: 

Due to the General Fund represents the amount of accrued downward 
reestimates not yet funded, related to direct loans, equity 
investments and other credit programs as of September 30, 2014 and 
2013. See Notes 6 and 7. 

Principal Payable to the Bureau of the Fiscal Service: 

Principal Payable to the Bureau of the Fiscal Service (Fiscal Service) 
is the net amount due for equity investments, direct loans and other 
credit programs funded by borrowings from the Fiscal Service as of the 
end of the fiscal year. Additionally, OFS borrows from the Fiscal 
Service for payment of intragovernmental interest and payment of 
negative subsidy cost to the general fund, as necessary. See Note 8. 

Liabilities for the Treasury Housing Programs Under TARP: 

There are three initiatives in the Treasury Housing Programs: the 
Making Home Affordable Program, the Housing Finance Agency Hardest-Hit 
Fund and the FHA-Refinance Program. The OFS has determined that credit 
reform accounting is not applicable to the Treasury Housing Programs 
Under TARP except for the FHA-Refinance Program. Therefore, 
liabilities for the Making Home Affordable Program and Housing Finance 
Agency Hardest-Hit Fund are accounted for in accordance with SFFAS No. 
5, Accounting for Liabilities of the Federal Government. In accordance 
with this standard, a liability is recognized for any unpaid amounts 
due and payable as of the reporting date. The liability estimate, as 
of September 30, 2014 and 2013, is based on information about loan 
modifications reported by participating servicers for the Making Home 
Affordable Program and participating states for the Housing Finance 
Agency Hardest-Hit Fund. See Note 5. 

At the end of fiscal year 2010, the OFS entered into a loss-sharing 
agreement with the FHA to support a program in which FHA would 
guarantee refinancing for borrowers whose homes are worth less than 
the remaining amounts owed under their mortgage loans, i.e. 
"underwater." The liability for OFS's share of losses was determined 
under credit reform accounting and shown as FHA-Refinance Program, one 
of the Liabilities for Treasury Housing Programs Under TARP, on the 
Balance Sheet. See Notes 4, 5 and 6. 

Unexpended Appropriations: 

Unexpended Appropriations represents the OFS undelivered orders and 
unobligated balances reduced by canceled authority in budgetary 
appropriated funds as of September 30, 2014 and 2013. 

Cumulative Results of Operations: 

Cumulative Results of Operations, presented on the Balance Sheet and 
on the Statement of Changes in Net Position, represents the net 
results of the OFS operations not funded by appropriations or some 
other source, such as borrowing authority, from inception through 
fiscal year end. Cumulative Results of Operations in 2014 and 2013 
included $50 million reported as Cash on Deposit for Housing Program 
on the Balance Sheet, see Note 4. 

Other Financing Sources: 

The Other Financing Sources line in the Statement of Changes in Net 
Position for each year consists primarily of downward reestimates. 
Each program's reestimates, upward and downward, are recorded 
separately, not netted together. 

Leave: 

A liability for the OFS employees' annual leave is accrued as it is 
earned and reduced as leave is taken. Each year the balance of accrued 
annual leave is adjusted to reflect current pay rates as well as 
forfeited "use or lose" leave. Amounts are unfunded to the extent 
current or prior year appropriations are not available to fund annual 
leave earned but not taken. Sick leave and other types of non-vested 
leave are expensed as taken. The liability is included in the Balance 
Sheet amount for Accounts Payable and Other Liabilities. 

Employee Health and Life Insurance and Workers' Compensation Benefits: 

The OFS employees may choose to participate in the contributory 
Federal Employees Health Benefit and the Federal Employees Group Life 
Insurance Programs. The OFS matches a portion of the employee 
contributions to each program. Matching contributions are recognized 
as current operating expenses. 

The Federal Employees' Compensation Act (FECA) provides income and 
medical cost protection to covered Federal civilian employees injured 
on the job, and employees who have incurred a work-related injury or 
occupational disease. Future workers' compensation estimates are 
generated from an application of actuarial procedures developed to 
estimate the liability for FECA benefits. The actuarial liability 
estimates for FECA benefits include the expected liability for death, 
disability, medical, and miscellaneous costs for approved compensation 
cases. Any FECA amounts relating to OFS employees are expensed as 
incurred. 

Employee Pension Benefits: 

The OFS employees participate in either the Civil Service Retirement 
System (CSRS) or the Federal Employees' Retirement System (FERS) and 
Social Security. These systems provide benefits upon retirement and in 
the event of death, disability or other termination of employment and 
may also provide pre-retirement benefits. They may also include 
benefits to survivors and their dependents, and may contain early 
retirement or other special features. The OFS contributions to 
retirement plans and Social Security, as well as imputed costs for 
pension and other retirement benefit costs administered by the Office 
of Personnel Management, are recognized on the Statement of Net Cost 
as Administrative Cost. Federal employee benefits also include the 
Thrift Savings Plan (TSP). For FERS employees, a TSP account is 
automatically established and the OFS matches employee contributions 
to the plan, subject to limitations. The matching contributions are 
recognized as Administrative Costs on the Statement of Net Cost. 

Related Parties: 

There are no related parties for OFS. 

Note 3. Fund Balances With Treasury: 

Fund Balances with Treasury, by fund type and status, as of September 
30, 2014 and 2013, are presented in the following table. 

Fund Balances: 

General Funds: 
As of September 30, 2014: $32,231; 
As of September 30, 2013: $36,630. 

Program Funds: 
As of September 30, 2014: $358; 
As of September 30, 2013: $14,382. 

Financing Funds: 
As of September 30, 2014: $621; 
As of September 30, 2013: $2,228. 

Total Fund Balances: 
As of September 30, 2014: $33,210; 
As of September 30, 2013: $53,204. 

Status of Fund Balances: 

Unobligated Balances: 

Available: 
As of September 30, 2014: $572; 
As of September 30, 2013: $678. 

Unavailable: 
As of September 30, 2014: $7,802; 
As of September 30, 2013: $22,389. 

Obligated Balances Not Yet Disbursed: 
As of September 30, 2014: $24,836; 
As of September 30, 2013: $30,173. 

Total Status of Fund Balances: 
As of September 30, 2014: $33,210; 
As of September 30, 2013: $53,240. 

[End of table] 

Collections relating to the AGP are deposited in the Troubled Assets 
Insurance Financing Fund (TAIFF) (which is within OFS Financing Funds 
balance) as required by the EESA Section 102(d). In fiscal year 2013 
the TAIFF was closed because the AGP program was completed and 
investments sold. 

Note 4. Cash On Deposit For Housing Program: 

As of September 30, 2014 and 2013, the OFS had $50 million on deposit 
with a commercial bank to facilitate its payments of claims under the 
FHA-Refinance Program as OFS's agent. 

Under terms of the agreement with the commercial bank, unused funds 
will be returned to the OFS upon the termination of the program. 

Note 5. Treasury Housing Programs Under TARP: 

Fiscal years 2014 and 2013 saw continued advancement of programs 
designed to provide stability for both the housing market and 
homeowners. These programs assist homeowners who are experiencing 
financial hardships to remain in their homes until their financial 
position improves or they relocate to a more sustainable living 
situation. The programs fall into three initiatives: 

1) Making Home Affordable Program (MHA);
2) Hardest-Hit Fund (HHF); and: 
3) FHA-Refinance Program. 

Features of these initiatives follow: 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
First Lien Modification Program; 
Features: Provides for upfront, monthly and annual incentives to 
servicers, borrowers and investors who participate, whereby the 
investor and OFS share the costs of modifying qualified first liens, 
conditional on borrower performance. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
Principal Reduction Alternative Program; 
Features: Pays financial incentives to investors for principal 
reduction in conjunction with a first lien HAMP modification. Home 
Price Depreciation Program (HPDP) Provides financial incentives to 
investors to partially offset losses from home price declines. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) Home 
Affordable Foreclosure Alternatives (HAFA); 
Features: Designed to assist eligible borrowers unable to retain their 
homes through a HAMP modification, by simplifying and streamlining the 
short sale and deed-in-lieu of foreclosure processes and providing 
financial incentives to servicers and investors as well as relocation 
assistance to borrowers who pursue short sales and deeds-in-lieu. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
Unemployment Forebearance Program (UP); 
Features: Offers assistance to unemployed homeowners through temporary 
forebearance of a portion of their mortgage payments. This program 
does not require any payments from OFS. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) FHA-
HAMP; 
Features: Provides mortgage modifications similar to HAMP, but for FHA-
insured or guaranteed loans offered by the FHA, VA or USDA. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
Second Lien Program (2MP); 
Features: Offers financial incentives to participating servicers who 
modify second liens in conjunction with a HAMP modification. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
Treasury/FHA Second Lien Program (FHA 2LP); 
Features: Provides for reduction or elimination of second mortgages on 
homes whose servicers participate in the FHA Refinance Program. 

Housing Program: MHA: Home Affordable Modification Program (HAMP) 
Rural Development Program (RD-HAMP); 
Features: Provides for lower monthly payments on USDA guaranteed loans. 

Housing Program: HHF 
Features: Provides targeted aid to families in the states hardest hit 
by the housing market downturn and unemployment. 

Housing Program: FHA-Refinance Program 
Features: Joint initiative with HUD to encourage refinancing of 
existing underwater mortgage loans not currently insured by FHA into 
FHA insured mortgages. 

[End of table] 

MHA: 

In early 2009, Treasury launched the Making Home Affordable Program 
(MHA) to help struggling homeowners avoid foreclosure. Since its 
inception, MHA has helped homeowners avoid foreclosure by providing a 
variety of solutions to modify or refinance their mortgages, get 
temporary forbearance if they are unemployed, or transition out of 
homeownership via a short sale or deed-in-lieu of foreclosure. The 
cornerstone of MHA is the Home Affordable Modification Program (HAMP), 
which provides eligible homeowners the opportunity to reduce their 
monthly mortgage payments to more affordable levels. Treasury also 
launched programs under MHA to help homeowners who are unemployed, 
"underwater" on their loans (those who owe more on their home than it 
is currently worth), or struggling with second liens. It also includes 
options for homeowners who would like to transition to a more 
affordable living situation through a short sale or deed-in-lieu of 
foreclosure. MHA includes several additional programs to help 
homeowners refinance or address specific types of mortgages, in 
conjunction with the Federal Housing Administration (FHA) and the U.S. 
Department of Agriculture (USDA). 

In fiscal year 2013, the deadline for applications under the MHA 
programs was extended from December 31, 2013, to December 31, 2015, 
and in fiscal year 2014 it was announced that it would be extended 
again at least a year to December 31, 2016. In addition, in fiscal 
year 2014, OFS made changes to MHA programs to align with recently 
issued Consumer Financial Protection Bureau (CFPB) regulations and to 
address the interest rate increase and enhance borrower awareness of 
any payment change and resources available should they need assistance. 

All MHA disbursements are made to servicers either for themselves or 
for the benefit of borrowers and investors, and all payments are 
contingent on borrowers remaining in good standing. 

Fannie Mae, as the MHA Program Administrator, provides direct 
programmatic support as a third party agent on behalf of the OFS. 
Freddie Mac provides compliance oversight of servicers as a third 
party agent on behalf of the OFS, and the servicers work directly with 
the borrowers to modify and service the borrowers' loans. Fees paid to 
Fannie Mae and Freddie Mac are included in administrative costs 
reported on the Statement of Net Cost. 

HHF: 

The HHF was implemented in fiscal year 2010, and provides targeted aid 
to homeowners in the states hit hardest by the housing market downturn 
and unemployment through each state's Housing Finance Agency (HFA). 
States that meet the criteria for this program, consisting of Alabama, 
Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, 
Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, 
Oregon, Rhode Island, South Carolina, Tennessee, as well as the 
District of Columbia, receive funding from the OFS. Approved states 
develop and roll out their own programs with timing and types of 
programs targeted to address the specific needs and economic 
conditions of their state. States have until December 31, 2017 to 
enter into agreements with borrowers. 

In fiscal year 2014, state HFAs continued to adapt their programs to 
best meet borrower needs in evolving economic and housing markets. A 
total of fourteen HFAs now offer principal reduction to induce a loan 
modification, refinance, or recast. In addition to Florida, Illinois, 
and Ohio, now Nevada and North Carolina provide HHF resources to 
enhance modification of loans purchased through distressed asset note 
sales. Oregon continues to offer refinancing options to underwater 
homeowners ineligible for other options. Illinois, Indiana, and Ohio 
joined Michigan in allocating a portion of their HHF funds to blight 
elimination in an effort to stabilize neighborhoods and prevent 
foreclosures. Finally, another five HFAs followed Rhode Island and 
Illinois in closing their HHF application portals in anticipation of 
full commitment of program funds: the District of Columbia, New 
Jersey, Ohio, Oregon, and Tennessee. 

FHA-Refinance Program: 

The FHA-Refinance Program is a joint initiative with the U. S. 
Department of Housing and Urban Development (HUD) which is intended to 
encourage refinancing of existing underwater mortgage loans not 
currently insured by FHA into FHA-insured mortgages. HUD will pay a 
portion of the amount refinanced to the investor and OFS will pay 
incentives to encourage the extinguishment of second liens associated 
with the refinanced mortgages. OFS established a letter of credit that 
obligated the OFS portion of any claims associated with the FHA-
guaranteed mortgages. The OMB determined that for budgetary purposes, 
the FHA-Refinance Program cost is calculated under the FCRA, and 
accordingly OFS determined that it was appropriate to follow SFFAS No. 
2 for financial reporting. Therefore, the liability is calculated at 
the net present value of estimated future cash flows. Homeowners can 
refinance into FHA-guaranteed mortgages through December 31, 2014, and 
OFS will honor its share of claims against the letter of credit 
through September 2020. As of September 30, 2014, and September 30, 
2013, 3,015 loans had been refinanced. 

OFS deposited $50 million with a commercial bank as its agent to 
administer payment of claims under the program; $47,840 in claim 
payments were made as of September 30, 2013. No additional claim 
payments were made in fiscal year 2014. See Notes 4 and 6 for further 
details about the deposit and the program. OFS paid $0.8 million in 
fiscal year 2014 and $2 million in fiscal year 2013 to maintain the 
letter of credit. 

The table below recaps housing program commitments as of September 30, 
2014, and payments and accruals as of September 30, 2014 and 2013. 

Treasury Housing Programs Under TARP (Dollars in Millions): 

MHA: 
Total Commitments as of September 30, 2014[1]: $29,829; 
Fiscal Year Payments through September 30, 2014: $2,739; 
Fiscal Year Payments through September 30, 2013: $2,541; 
Accruals as of September 30, 2014: $243.
Accruals as of September 30, 2013: $263. 

HFA Hardest Hit Fund: 
Total Commitments as of September 30, 2014[1]: $7,600; 
Fiscal Year Payments through September 30, 2014: $1,560; 
Fiscal Year Payments through September 30, 2013: $1,396; 
Accruals as of September 30, 2014: 0.
Accruals as of September 30, 2013: 0. 

FHA Refinance[2]: 
Total Commitments as of September 30, 2014[1]: $1,025; 
Fiscal Year Payments through September 30, 2014: $1; 
Fiscal Year Payments through September 30, 2013: $2; 
Accruals as of September 30, 2014: 0.
Accruals as of September 30, 2013: 0. 

Totals: 
Total Commitments as of September 30, 2014[1]: $38,492; 
Fiscal Year Payments through September 30, 2014: $4,300; 
Fiscal Year Payments through September 30, 2013: $3,939; 
Accruals as of September 30, 2014: $243.
Accruals as of September 30, 2013: $263. 

[1] Total commitments represent amounts obligated to support all of 
OFS's Housing programs. This differs from the $24,429 outstanding
commitments as of September 30, 2014, which are the remaining funds 
available to be spent. 

[2] Payments do not include $50 million to establish reserve, shown on 
Balance Sheet as Cash on Deposit for Housing Program, nor the subsidy 
cost to fund OFS's estimated share of defaults, which establishes the 
liability for losses, see Note 6. Payments are the FHA-Refinance 
administrative expense only. 

[End of table] 

Note 6. Troubled Asset Relief Program Direct Loans And Equity 
Investments, Net And Other Credit Programs: 

The OFS administers a number of programs designed to help stabilize 
the financial system and restore the flow of credit to consumers and 
businesses. The OFS made direct loans and equity investments under 
TARP. The OFS also entered into other credit programs, which consist 
of an asset guarantee program and a loss-sharing program under the 
TARP. The table below recaps OFS programs by title and type: 

Direct Loans and Equity Investments: 

Program: Capital Purchase Program; 
Program Type: Equity Investment/Subordinated Debentures. 

Program: Community Development Capital Initiative; 
Program Type: Equity Investment/Subordinated Debentures. 

Program: Public-Private Investment Program; 
Program Type: Equity Investment and Direct Loan. 

Program: Term Asset-Backed Securities Loan Facility; 
Program Type: Subordinated Debentures. 

Program: Automotive Industry Financing Program; 
Program Type: Equity Investment and Direct Loan. 

Program: American International Group, Inc. Investment Program; 
Program Type: Equity Investment. 

Other Credit Programs: 

Program: Asset Guarantee Program; 
Program Type: Asset Guarantee. 

Program: FHA-Refinance Program; 
Program Type: Loss-sharing Program with FHA. 

Direct Loan and Equity Investment Programs: 

Capital Purchase Program (CPP): 

In October 2008, the OFS began implementation of the TARP with the 
Capital Purchase Program (CPP), designed to help stabilize the 
financial system by assisting in building the capital base of certain 
viable U.S. financial institutions to increase the capacity of those 
institutions to lend to businesses and consumers and support the 
economy. 

The OFS invested a total of $204.9 billion in 707 institutions under 
the CPP program between October 2008 and December 2009. 

Under this program, the OFS purchased senior perpetual preferred stock 
from qualifying U.S. controlled banks, savings associations, and 
certain bank and savings and loan holding companies (Qualified 
Financial Institution or QFI). The senior preferred stock has a stated 
dividend rate of 5.0 percent through year five, increasing to 9.0 
percent in subsequent years. The dividends are cumulative for bank 
holding companies and non-cumulative for others; they are payable when 
and if declared by the institution's board of directors. In addition 
to the senior preferred stock, the OFS received warrants, with a 10-
year term, as required by Section 113(d) of: 

EESA, from public QFIs to purchase a number of shares of common stock. 
QFIs that are Subchapter S corporations issued subordinated debentures 
instead of preferred stock (to comply with tax code regulations) with 
interest rates of 7.7 percent for the first five years and 13.8 
percent thereafter. 

The OFS received warrants from non-public QFIs for the purchase of 
additional senior preferred stock (or subordinated debentures if 
appropriate) with a stated dividend rate of 9.0 percent (13.8 percent 
interest rate for subordinate debentures) and a liquidation preference 
equal to 5.0 percent of the total senior preferred stock (additional 
subordinate debenture) investment. These warrants were immediately 
exercised and resulted in the OFS holding additional senior preferred 
stock (subordinated debentures) (collectively referred to as "warrant 
preferred stock") of non-public QFIs. 

In addition to the above transactions, the OFS entered into other 
transactions with various financial institutions including exchanging 
existing preferred shares for a like amount of non-tax-deductible 
Trust Preferred Securities, exchanging preferred shares for shares of 
mandatorily convertible preferred securities and selling preferred 
shares to financial institutions that were acquiring the QFIs that 
have issued the preferred shares. 

Generally, these transactions are entered into with financial 
institutions in poor financial condition with a high likelihood of 
failure. As such, in accordance with SFFAS No. 2, these transactions 
are considered workouts and not modifications. The changes in cost 
associated with these transactions are captured in the year-end 
reestimates. 

During fiscal year 2014 and 2013, OFS continued auction sales of 
selected remaining CPP investments. 

In fiscal year 2014, OFS sold 31 CPP investments in 6 separate 
auctions for total net proceeds of $289 million. These auction sales 
resulted in net proceeds less than cost of $73 million. In addition, 
other sales and redemptions for 31 institutions resulted in net 
proceeds less than cost of $96 million. 

In fiscal year 2013, OFS sold 113 CPP investments in 14 separate 
auctions for total net proceeds of $1.5 billion. These auction sales 
resulted in net proceeds less than cost of $455 million. In addition, 
other sales and redemptions for 60 institutions resulted in net 
proceeds less than cost of $38 million. 

During fiscal year 2014, three institutions, in which OFS had invested 
$27 million, were either closed by their regulators or declared 
bankruptcy. During fiscal year 2013, seven institutions, in which OFS 
had invested $137 million, were either closed by their regulators or 
declared bankruptcy. The ultimate amount received, if any, from the 
investments in institutions that filed for bankruptcy and institutions 
closed by regulators primarily depends upon the outcome of the 
bankruptcy proceedings and of each institution's receivership. At 
closing or bankruptcy, they are valued by OFS at zero. : 

During fiscal year 2014, 27 institutions that entered bankruptcy or 
were closed by their regulators between 2009 to 2014 were written off 
for $797 million, the amount of OFS's original investments. During 
fiscal year 2013, one CPP institution was written off for $104 
million. OFS had originally invested $110 million and recovered $6 
million. The write-offs reduced gross investment outstanding and 
subsidy allowance by equal offsetting amounts, since the investments 
were valued at zero through the subsidy cost reestimates. 

The following tables provide key data points related to the CPP for 
the fiscal years ending September 30, 2014 and 2013: 

CPP Participating Institutions: 

Number of Institutions Funded: 
2014: 707; 
2013: 707. 

Institutions Paid in Full, Merged or Investments Sold: 
2014: (469); 
2013: (407). 

Institutions Transferred to CDCI: 
2014: (28); 
2013: (28). 

Institutions Refinanced to SBLF: 
2014: (137); 
2013: (137). 

Institutions Written Off After Bankruptcy or Receivership: 
2014: (30); 
2013: (3). 

Number of Institutions with Outstanding OFS Investments: 
2014: 43; 
2013: 132. 

Institutions in Bankruptcy or Receivership: 
2014: 0; 
2013: (24). 

Number of CPP Institutions Valued at Year-End: 
2014: 43; 
2013: 108. 

Of the Institutions Valued, Number that Have Missed One or More
Dividend Payments: 
2014: 36; 
2013: 76. 

CPP Investments: 
(Dollars in Millions) 

Outstanding Beginning Balance, Investment in CPP Institutions, Gross: 
Fiscal Year 2014: $3,143; 
Fiscal Year 2013: $8,664. 

Repayments and Sales of Investments: 
Fiscal Year 2014: ($1,454); 
Fiscal Year 2013: ($4,752). 

Write-Offs: 
Fiscal Year 2014: ($797); 
Fiscal Year 2013: ($104). 

Losses from Sales and Repurchases of Assets in Excess of Cost: 
Fiscal Year 2014: ($267); 
Fiscal Year 2013: ($665). 

Outstanding Balance, Investment in CPP Institutions, Gross: 
Fiscal Year 2014: $625; 
Fiscal Year 2013: $3,143. 

Interest and Dividend Collections: 
Fiscal Year 2014: $88; 
Fiscal Year 2013: $262. 

Net Proceeds from Sales and Repurchases of Assets Less Than Cost: 
Fiscal Year 2014: ($169); 
Fiscal Year 2013: ($493). 

[End of table] 

Community Development Capital Initiative (CDCI): 

In February 2010, the OFS announced the Community Development Capital 
Initiative (CDCI) to invest lower cost capital in Community 
Development Financial Institutions (CDFIs). Under the terms of the 
program, the OFS purchased senior preferred stock (or subordinated 
debt) from eligible CDFIs. The senior preferred stock had an initial 
dividend rate of 2 percent. CDFIs could apply to receive capital up to 
5 percent of risk-weighted assets. To encourage repayment while 
recognizing the unique circumstances facing CDFIs, the dividend rate 
increases to 9 percent after eight years. 

For CDFI credit unions, the OFS purchased subordinated debt at rates 
equivalent to those offered to CDFIs and with similar terms. These 
institutions could apply for up to 3.5 percent of total assets - an 
amount approximately equivalent to the 5 percent of risk-weighted 
assets available to banks and thrifts. 

CDFIs participating in the CPP, subject to certain criteria, were 
eligible to exchange, through September 30, 2010, their CPP preferred 
shares (subordinated debt) then held by OFS for CDCI preferred shares 
(subordinated debt). These exchanges were treated as disbursements 
from CDCI and repayments to CPP. OFS invested a total of $570 million 
($363 million as a result of exchanges from CPP) in 84 institutions 
under the CDCI. 

During fiscal year 2014, there were no CDCI institutions written off. 
During fiscal year 2013, one CDCI institution, in which the OFS 
invested $7 million, was written off. 

In fiscal year 2014, OFS received $10 million in repayments and $10 
million in dividends and interest from its CDCI investments with, as 
of September 30, 2014, an outstanding balance of $465 million and 
value of $372 million. In fiscal year 2013, OFS received $86 million 
in repayments and $11 million in dividends and interest from its CDCI 
investments with, as of September 30, 2013, an outstanding balance of 
$475 million and value of $371 million. 

Public-Private Investment Program (PPIP): 

The PPIP was part of the OFS's efforts to help restart the financial 
securities market and provide liquidity for legacy securities. Under 
this program, the OFS (as a limited partner) made equity investments 
in and loans to nine investment vehicles (referred to as Public 
Private Investment Funds or "PPIFs") established by private investment 
managers between September and December 2009. The OFS equity 
investments were used to match private capital and equaled 49.9 
percent of the total equity invested. Each PPIF elected to receive a 
loan commitment equal to 100 percent of partnership equity. Agreements 
between the OFS and the PPIFs require cash flows from purchased 
securities received by the PPIFs to be distributed in accordance with 
a priority of payments schedule (waterfall) designed to help protect 
the interests of secured parties. Security cash flows collected are 
disbursed: 1) to pay administrative expenses; 2) to pay margin 
interest on permitted hedges; 3) to pay current period interest to 
OFS; 4) to maintain a required interest reserve account; 5) to pay 
principal on the OFS loan when the minimum Asset Coverage Ratio Test 
is not satisfied; 6) to pay other amounts on interest rate hedges if 
not paid under step 2 ; 7) for additional temporary investments or to 
prepay loans (both at the discretion of the PPIF); 8) for 
distributions to equity partners up to the lesser of 12 months' net 
interest collected or 8 percent of the funded capital commitments; 9) 
for loan prepayments to OFS; and 10) for distribution to equity 
partners. 

As a condition of its investment, the OFS also received a warrant from 
each of the PPIFs entitling the OFS to 2.5 percent of investment 
proceeds (excluding those from temporary investments) otherwise 
allocable to the non-OFS partners after the PPIFs return of 100 
percent of the non-OFS partners' capital contributions. Distributions 
relating to the warrants generally occur upon the final distribution 
of each partnership. 

The PPIFs were allowed to purchase commercial and non-agency 
residential mortgage-backed securities (CMBS and RMBS, respectively) 
issued prior to January 1, 2009, that were originally rated AAA or an 
equivalent rating by two or more nationally recognized statistical 
rating organizations without external credit enhancement and that are 
secured directly by the actual mortgage loans, leases or other assets 
(eligible assets) and not other securities. The PPIFs investment 
period ended December 2012 and as of June 30, 2013, all of the PPIF's 
securities portfolios were completely liquidated. 

In fiscal year 2013, the six remaining PPIFs liquidated investments 
and fully repaid investors, including OFS. During fiscal year 2014, 
upon final termination notice from five PPIF partnerships, the OFS 
received $10 million, of which $6 million was recognized as investment 
income and $4 million as net proceeds in excess of cost. During fiscal 
year 2013, the OFS received $17 million in interest on loans and $5.7 
billion in loan principal repayments from the PPIFs and received $5.5 
billion in equity distributions, of which $254 million was recognized 
as investment income, $1.2 billion as net proceeds in excess of cost 
and $4.1 billion as a reduction of the gross investment outstanding. 

As of September 30, 2014, OFS had no PPIF equity investments or loans 
outstanding. As of September 30, 2013, OFS had no PPIF equity 
investments or loans outstanding. The $10 million positive balance in 
the PPIP subsidy allowance account represented additional proceeds 
expected upon final liquidation of remaining partnerships. 

Of the legal commitments to disburse up to $984 million to remaining 
PPIFs as of September 30, 2013, $858 million were canceled in 2014 
since all PPIFs had ceased operations and termination notices had been 
received from all but one of them. There is little likelihood of 
additional disbursement as they would only occur if a factor 
adjustment to a trade was recognized, requiring additional funds from 
the investors in the PPIF. 

Term Asset-Backed Securities Loan Facility (TALF): 

The Term Asset-Backed Securities Loan Facility (TALF) was created by 
the Federal Reserve Board (FRB) to provide low cost funding to 
investors in certain classes of Asset-Backed Securities (ABS). The OFS 
agreed to participate in the program by providing liquidity and credit 
protection to the FRB. Under the TALF, the Federal Reserve Bank of New 
York (FRBNY), as implementer of the TALF program, originated loans on 
a non-recourse basis to purchasers of certain AAA-rated ABS secured by 
consumer and commercial loans and commercial mortgage backed 
securities (CMBS). The FRBNY ceased issuing new loans on June 30, 
2010. As of September 30, 2014, one loan due to FRBNY of approximately 
$14.3 million remained outstanding. As of September 30, 2013, $101 
million of loans due to the FRBNY remained outstanding. 

As part of the program, the FRBNY created the TALF, LLC, a special 
purpose vehicle that agreed to purchase from the FRBNY any collateral 
it has seized due to borrower default. The TALF, LLC would fund 
purchases from the accumulation of monthly fees paid by the FRBNY as 
compensation for the agreement. Only if the TALF, LLC had insufficient 
funds to purchase the collateral did the OFS commit to invest up to 
$20.0 billion in non-recourse subordinated notes issued by the TALF, 
LLC. In July 2010, the OFS's commitment was reduced to $4.3 billion. 
In June 2012, the OFS's commitment was reduced to $1.4 billion. In 
fiscal year 2013, the remaining commitment was terminated. 

The OFS disbursed $100 million upon the creation of TALF, LLC in 2009. 
Upon its wind-down, when collateral defaults, reaches final maturity 
or is sold, available cash will be disbursed to FRBNY and OFS 
according to the legal agreement between them. 

In fiscal year 2014, OFS received $62 million of contingent interest, 
recorded as proceeds in excess of cost. 

In fiscal year 2013, a modification to the terms of the legal 
agreement resulted in $55 million in subsidy income for the program. 
The modification allowed OFS to receive $100 million in repayments, 
$13 million in interest and $570 million of contingent interest, 
recorded as proceeds in excess of cost, in fiscal year 2013 rather 
than in fiscal year 2015 as originally expected. 

As of September 30, 2014 or 2013, no TALF loans were in default and 
consequently no collateral was purchased by the TALF, LLC. 

Automotive Industry Financing Program (AIFP): 

The Automotive Industry Financing Program (AIFP) was designed to help 
prevent a significant disruption of the American automotive industry, 
which could have had a negative effect on the economy of the United 
States. 

General Motors Company (New GM) and General Motors Corporation (Old 
GM): 

In the period ended September 30, 2009, the OFS provided $51.0 billion 
to General Motors Corporation (Old GM) through various loan agreements 
including the initial loan for general and working capital purposes, 
auto supplier and warranty programs, and the final loan for debtor in 
possession (DIP) financing while Old GM was in bankruptcy. As of 
September 30, 2012, after various sales and restructurings of its 
investment, the OFS held 500 million shares of common stock of New GM, 
the post-bankruptcy GM entity, and had received a cumulative total of 
$23.9 billion in stock sale proceeds, loan repayments, dividends and 
interest. 

During fiscal year 2014, OFS sold its remaining 101 million shares of 
GM common stock for $3.8 billion. The sales resulted in net proceeds 
less than cost of $639 million. At September 30, 2014, the OFS 
retained no ownership in the common stock of New GM. 

During fiscal year 2013, OFS sold 399 million shares of GM common 
stock for $12.0 billion. The sales resulted in net proceeds less than 
cost of $5.4 billion. 

At September 30, 2013, the OFS held 101 million shares of the common 
stock of New GM that represented approximately 7.3 percent of the 
common stock of New GM outstanding. Market value of the 101 million 
shares as of September 30, 2013 was $3.6 billion. 

In fiscal year 2011, $986 million of OFS's loan to Old GM was 
converted to an administrative claim. OFS retains the right to recover 
additional proceeds but recoveries are dependent on actual liquidation 
proceeds and pending litigation. OFS recovered $1 million and $22 
million in fiscal years 2014 and 2013, respectively, on the 
administrative claim. The outstanding balance at September 30, 2013 
was $827 million. Because OFS does not expect to recover any 
significant additional proceeds from this claim, OFS recognized a 
write-off of the remaining $826 million in fiscal year 2014 resulting 
in no outstanding balance at September 30, 2014. 

Chrysler Group LLC (New Chrysler) and Chrysler Holding LLC (Old 
Chrysler): 

During fiscal years 2009 and 2010, OFS invested $7.8 billion in 
Chrysler Holding LLC (Old Chrysler), including the auto supplier and 
warranty programs, and an additional $4.6 billion in Chrysler Group 
LLC (New Chrysler) under the terms of Chrysler's bankruptcy agreement. 
Prior to fiscal year 2012, pursuant to several agreements with New 
Chrysler that included write-offs, OFS had received loan repayments, 
interest and additional payments totaling $11.1 billion and had no 
remaining interest in New Chrysler. 

OFS continues to hold a right to receive proceeds from a bankruptcy 
liquidation trust related to Old Chrysler, but no significant cash 
flows are expected. Nothing was received from the trust in fiscal year 
2014 or 2013. The underlying loan balance was extinguished in the 
Chrysler bankruptcy, and was written off by OFS in fiscal year 2010. 

Ally Financial Inc. (formerly known as GMAC): 

The OFS invested a total of $16.3 billion in GMAC between December 
2008 and December 2009, to help support its ability to originate new 
loans to GM and Chrysler dealers and consumers and to help address 
GMAC's capital needs. In addition, in May 2009, under the terms of a 
separate $884 million loan to Old GM, OFS exercised its exchange 
option and received 190,921 shares of GMAC common stock from Old GM in 
full satisfaction of the loan. In May 2010, GMAC changed its corporate 
name to Ally Financial, Inc. (Ally), a private bank holding company. 
As a result of original investments, exchanges, conversions, warrant 
exercises and sales, at the beginning of fiscal year 2013, OFS had 
received $5.7 billion in sales proceeds, dividends, and additional 
payments on its initial investment and held 981,971 shares of common 
stock (73.8 percent of Ally's outstanding common stock) and 119 
million shares of Series F-2 mandatorily convertible preferred 
securities (Series F-2). The Series F-2 were convertible into at least 
513,000 shares of common stock. 

Per an August 2013 agreement, all of the Series F-2 were repurchased 
by Ally from OFS for $5.2 billion in November 2013 along with an 
additional $725 million for the elimination of certain rights under 
the original agreement. This transaction resulted in proceeds in 
excess of cost of $300 million. The August 2013 agreement also 
included terms for Ally to issue a November 2013 private offering of 
new common stock at a price of $6,000 per share. Following the private 
offering, OFS's ownership was reduced to 63.4 percent of Ally's 
outstanding common stock. A stock split of 310/1 was also announced by 
Ally following the private offering. 

The OFS received $141 million and $534 million in dividends, 
respectively, from the Ally investment in fiscal years 2014 and 2013. 

During fiscal year 2014, OFS sold 410,000 pre-split shares and 113 
million post-split shares of Ally common for $5.8 billion. The sales 
resulted in net proceeds less than cost of $1.4 billion. 

At September 30, 2014, the OFS held 64,110,418 shares of Ally common 
stock (post-split), with a market value of $1.5 billion, representing 
13.4 percent ownership in Ally. 

At September 30, 2013, the OFS held 981,971 shares of Ally common 
stock (pre-split), representing 73.8 percent ownership in Ally. The 
total investment in Ally was valued at $12.0 billion at September 30, 
2013, considering the effects of the August 2013 agreement: $5.9 
billion for the common stock and $6.1 billion for the Series F-2. 

American International Group, Inc. (AIG) Investment Program: 

The OFS provided assistance to systemically significant financial 
institutions on a case by case basis in order to help provide 
stability to institutions that were deemed critical to a functioning 
financial system and were at substantial risk of failure as well as to 
help prevent broader disruption to financial markets. OFS invested in 
one institution, AIG, under the program. 

In November 2008, the OFS invested $40.0 billion in AIG in the form of 
Series D 10 percent cumulative perpetual preferred stock. An 
additional $27.8 billion was drawn from a capital facility made 
available to AIG by OFS, secured by additional preferred stock and 
common stock warrants. By January 2011, and as a result of various 
restructurings of both the OFS's and the Federal Reserve Bank of New 
York's investments in AIG, the OFS's entire investment outstanding 
consisted of $20.3 billion of interests in two AIG subsidiaries 
organized as Special Purpose Vehicles (the "AIG SPVs") and 1.1 billion 
shares of AIG common stock. 

In fiscal year 2013, OFS sold the remainder of its common stock and 
warrants for $5.0 billion, resulting in proceeds less than cost of 
$1.7 billion. 

As of September 30, 2013, OFS retained no ownership interest in AIG, 
common or preferred, nor any interests in SPVs. 

On its original $67.8 billion investment in AIG, OFS received $55.3 
billion in repayments, sales proceeds, fees and dividends. OFS also 
incurred net interest cost of $2.7 billion, for a total subsidy cost 
of $15.2 billion, or 22.4 percent of original investment. 

Valuation Methodology: 

The OFS applies fair value and the provisions of SFFAS No. 2 to 
account for direct loans, equity investments and other credit 
programs. This standard requires measurement of the asset or liability 
at the net present value of the estimated future cash flows. The cash 
flow estimates for each transaction reflect the actual structure of 
the instruments. For each of these instruments, analytical cash flow 
models generate estimated cash flows to and from the OFS over the 
estimated term of the instrument. Further, each cash flow model 
reflects the specific terms and conditions of the program, technical 
assumptions regarding the underlying assets, risk of default or other 
losses, and other factors as appropriate. The models also incorporate 
an adjustment for market risk to reflect the additional return 
required by the market to compensate for variability around the 
expected losses reflected in the cash flows (the "unexpected loss"). 

The adjustment for market risk requires the OFS to determine the 
return that would be required by market participants to enter into 
similar transactions or to purchase the assets held by OFS. 
Accordingly, the measurement of the assets attempts to represent the 
proceeds expected to be received if the assets were sold to a market 
participant in an orderly transaction. The methodology employed for 
determining market risk for equity investments generally involves 
using market prices of similar securities to estimate an appropriate 
market-adjusted discount rate that results in measuring equity 
investments at fair value. The adjustment for market risk for loans is 
intended to capture the risk of unexpected losses, but not intended to 
represent fair value, i.e. the proceeds that would be expected to be 
received if the loans were sold to a market participant. The OFS uses 
market observable inputs, when available, in developing cash flows and 
incorporating the adjustment required for market risk. For purposes of 
this disclosure, the OFS has classified its programs' asset valuations 
as follows, based on the observability of inputs that are significant 
to the measurement of the asset: 

* Quoted prices for Identical Assets (Level 1): The measurement of 
assets in this classification is based on direct market quotes for the 
specific asset, e.g. quoted prices of common stock. 

* Significant Observable Inputs (Level 2): The measurement of assets 
in this classification is primarily derived from market observable 
data, other than a direct market quote, for the asset. This data could 
be market quotes for similar assets for the same entity. 

* Significant Unobservable Inputs (Level 3): The measurement of assets 
in this classification is primarily derived from inputs which 
generally represent management's best estimate of how a market 
participant would assess the risk inherent in the asset. These 
unobservable inputs are used because there is little to no direct 
market activity. 

The following table displays the assets held by the observability of 
inputs significant to the measurement of each value: 

As of September 30, 2014: 

Program: Capital Purchase Program; 
Quoted Prices for Identical Assets Level 1): $106; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $175; 
Total: $281. 

Program: CDCI and TALF; 
Quoted Prices for Identical Assets Level 1): $38; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $372; 
Total: $410; 

Program: Automotive Industry Financing Program; 
Quoted Prices for Identical Assets Level 1): $1,483; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): 0; 
Total: $1,483. 

Program: Total TARP Programs; 
Quoted Prices for Identical Assets Level 1): $1,627; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $547; 
Total: $2,174. 

As of September 30, 2013: 

Program: Capital Purchase Program; 
Quoted Prices for Identical Assets Level 1): $125; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $1,668; 
Total: $1,793. 

Program: CDCI and TALF; 
Quoted Prices for Identical Assets Level 1): $18; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $451; 
Total: $469; 

Program: Public-Private Investment Program; 
Quoted Prices for Identical Assets Level 1): 0; 
Significant Observable Inputs (Level 2): 0; 
Significant Unobservable Inputs (Level 3): $10; 
Total: $10. 

Program: Automotive Industry Financing Program; 
Quoted Prices for Identical Assets Level 1): $3,647; 
Significant Observable Inputs (Level 2): $11,950; 
Significant Unobservable Inputs (Level 3): 0; 
Total: $15,597. 

Program: Total TARP Programs; 
Quoted Prices for Identical Assets Level 1): $3,790; 
Significant Observable Inputs (Level 2): $11,950; 
Significant Unobservable Inputs (Level 3): $2,129; 
Total: $17,869. 

[End of table] 

The following provides a description of the methodology used to 
develop the cash flows and incorporate the market risk into the 
measurement of the OFS assets. 

Financial Institution Equity Investments[Footnote 2]: 

The estimated values of preferred equity investments are the net 
present values of the expected dividend payments and proceeds from 
repurchases and sales. The model assumes that the key decisions 
affecting whether or not institutions pay their preferred dividends 
are made by each institution based on the strength of its balance 
sheet. The model assumes a probabilistic approach to estimate the 
projected cash flows due to the Treasury based on market pricing data 
and the strength of a given institution's balance sheet. Each 
institution's performance is subject to uncertainty. For a given 
institution, the model uses market pricing data and the strength of 
its balance sheet to estimate its future performance. 

In fiscal year 2014, OFS implemented a new estimation methodology in 
its model for its remaining equity investments. The new model was 
implemented as the risk profile of the remaining equity investments 
within the TARP portfolio evolved over time and as the portfolio as a 
whole continued to wind down. Within the new model, some institutions 
are increasingly likely to default or to miss the preferred dividends 
as the quality of their assets deteriorates or the level of capital 
they have available to absorb losses declines as a share of their 
assets. The probability of default was estimated based on the 
performance of a large sample of U.S. banks over time and on the 
historical behavior of the TARP's own equity investments. At the other 
end of the spectrum, institutions are increasingly likely to call 
their preferred shares over time as their balance sheets improve. 
Inputs to the model included institution-specific accounting data 
obtained from regulatory filings, an institution's stock price 
volatility and historical bank failure information, as well as market 
pricing data of comparable securities trading in the market. The 
market risk adjustment is estimated by grouping institutions with 
similar financial performance and applying credit spreads from similar 
securities. 

For equity valuations at September 30, 2013, the OFS model assumed 
that institutions managed their asset-to-liability ratios in such a 
way that they revert over time to a target level. Historical 
volatility was used to scale the likely evolution of each 
institution's asset-to-liability ratio. When equity decreased, i.e. 
the asset-to-liability ratio fell, institutions were increasingly 
likely to default, either because they entered bankruptcy or were 
closed by regulators. The probability of default was estimated based 
on the performance of a large sample of U.S. banks. At the other end 
of the spectrum, institutions called their preferred shares when the 
present value of expected future dividends exceeded the call price; 
this occurred when equity was high and interest rates were low. Inputs 
to the model included institution-specific accounting data obtained 
from regulatory filings, an institution's stock price volatility and 
historical bank failure information, as well as market prices of 
comparable securities trading in the market. The market risk 
adjustment was obtained through a calibration process to the market 
value of certain trading securities of financial institutions within 
TARP programs or other comparable financial institutions. : 

For both its September 30, 2013 model and its new model implemented in 
fiscal year 2014, OFS estimates the values and projects the cash flows 
of warrants using an option-pricing approach based on the current 
stock price and its volatility. Investments in common stock that are 
exchange traded are valued at the quoted market price as of year end. : 

Public-Private Investment Program: 

At September 30, 2014 and 2013, since the PPIFs no longer held 
security portfolios, their valuation represented expected proceeds to 
OFS upon final liquidation notice from the remaining PPIFs. 

Term Asset-Backed Securities Loan Facility: 

For fiscal year 2014, the valuation represents expected proceeds to 
the OFS upon final wind down of the Federal Reserve Bank of New York 
(FRBNY) TALF LLC SPV because the OFS loan was fully repaid in fiscal 
year 2013 and only one FRBNY TALF loan remained outstanding as of 
September 30, 2014. 

During fiscal year 2013, the OFS model derived the cash flows to the 
SPV and ultimately the OFS, based on the performance of underlying 
collateral under various economic scenarios. Loss probabilities on the 
underlying collateral were calculated based on analysis of historical 
loan performance by credit sector and subsector. Scenario outcomes 
consisting of a range of loss scenarios were probability-weighted to 
generate the expected net present value of future cash flows. 

Automotive Industry Financing Program: 

Shares of common stock in General Motors Company (New GM) held by OFS 
were valued by multiplying the publicly traded share price by the 
number of shares held plus the value of any traded but not settled 
shares as of September 30, 2013. Traded but not settled shares as of 
September 30, 2013, were valued based on the actual trade proceeds. 
OFS had no investment in GM common stock remaining as of September 30, 
2014. 

At September 30, 2014, shares of common stock in Ally, held by OFS, 
were valued by multiplying the publicly traded share price by the 
number of shares held plus the value of any traded but not settled 
shares as of September 30, 2014. Traded but not settled shares as of 
September 30, 2014, were valued based on the actual trade proceeds. 

To value its holdings in Ally at September 30, 2013, OFS considered 
observable market data from the August 2013 agreement for the 
repurchase of the Series F-2 and Ally's private offering of new common 
stock at a price of $6,000 per share. Proceeds and dividends received 
in November related to the Series F-2 repurchase were discounted to 
September 30, 2013 at a risk-free discount rate to reflect the timing 
and certainty of the expected cash flows. OFS's investment in 981,971 
shares of common stock was valued at the price per share in Ally's 
private offering. 

American International Group, Inc. Investment Program: 

OFS had no investment in AIG remaining as of September 30, 2013. 

Asset Guarantee Program: 

As of September 30, 2013, no instruments remained under the Asset 
Guarantee Program. 

Subsidy Cost and Reestimates: 

The recorded subsidy cost of a direct loan, equity investment or other 
credit program is based upon the calculated net present value of 
expected future cash flows. The OFS's actions, as well as changes in 
legislation that change these estimated future cash flows change 
subsidy cost, and are recorded as modifications. The cost or reduction 
in cost of a modification is recognized when it occurs. 

During fiscal year 2014, there were no modifications to any of the 
remaining programs. 

During fiscal year 2013, modifications occurred in the AGP and TALF 
programs that resulted in subsidy income of $94 million and $55 
million, respectively. 

The purpose of reestimates is to update original program subsidy cost 
estimates to reflect actual cash flow experience as well as changes in 
equity investment valuations or forecasts of future cash flows. 
Forecasts of future cash flows are updated based on actual program 
performance to date, additional information about the portfolio, 
additional publicly available relevant historical market data on 
securities performance, revised expectations for future economic 
conditions, and enhancements to cash flow projection methods. 

For fiscal years 2014 and 2013, financial statement reestimates for 
all programs were performed using actual financial transaction data 
through September 30. For fiscal year 2013, a mix of market and 
security specific data publicly available as of September 30 and 
August 31 were used for all programs. For fiscal year 2014 market and 
security specific data publicly available as of September 30 were used. 

Net downward reestimates for the fiscal years ended September 30, 2014 
and 2013, totaled $1.5 billion and $11.8 billion, respectively. 
Descriptions of the reestimates, by OFS Program, are as follows: 

CPP: 

The $88 million downward reestimate for CPP for the fiscal year ended 
September 30, 2014 was the result of a reduction in the projected 
number of institutions that would be sold via asset sales, revenues 
from asset sales in 2014 being higher than projected, and repayments. 

The $1.1 billion downward reestimate for CPP for the fiscal year ended 
September 30, 2013 was the result of a reduction in the projected 
number of institutions that would be sold via asset sales, repayments 
and improved market values of the outstanding investments. 

CDCI: 

The CDCI program experienced improved market values and repayments in 
full, resulting in a $6 million downward reestimate for the fiscal 
year ended September 30, 2014. 

The CDCI program experienced improved investment performance with 
several institutions repaying in full, resulting in a $32 million 
downward reestimate for the fiscal year ended September 30, 2013. 

PPIP: 

There was a nominal reestimate for the PPIP for the fiscal year ended 
September 30, 2014, due to the wind-down of expenses being nearly as 
projected. 

The $380 million net downward reestimate for the PPIP for the fiscal 
year ended September 30, 2013, was primarily due to accelerated 
repayments. 

TALF: 

The investments in the TALF experienced lower than anticipated 
expenses resulting in a $1 million downward reestimate for the fiscal 
year ended September 30, 2014. 

The investments in the TALF experienced improved market conditions and 
accelerated repayments, resulting in a $33 million downward reestimate 
for the fiscal year ended September 30, 2013. The $55 million downward 
modification reflected principal and interest repayments occurring in 
February 2013, with contingent interest paid over time beginning in 
February 2013. Prior to the modification, principal, interest and 
contingent interest would have occurred in March 2015. 

AIFP: 

Improvements in the value of Treasury's investment in Ally resulted in 
$1.0 billion in downward reestimates and improvements in Treasury's 
investments for GM resulted in $349 million for a total of $1.4 
billion in downward reestimates for AIFP for the year ended September 
30, 2014. In April, 2014 an initial public offering (IPO) of Ally 
common stock occurred with Treasury selling 95 million shares at 
$25.00 per share. In May 7.2 million shares were sold at that price. 
As of September 30, 2014 the remaining shares of Ally common were 
valued at $23.14 per share. 

Improvements in the common stock share price for New GM accounted for 
$4.4 billion of the $10.2 billion in downward reestimates for AIFP as 
of September 30, 2013. The price improved throughout fiscal year 2013, 
from $22.75 per share at September 30, 2012 to $35.97 per share at 
September 30, 2013. The remaining $5.8 billion in downward reestimates 
for AIFP was due to increases in the valuation of the outstanding 
investment in Ally, reflecting the November 2013 repurchase of the 
Series F-2 mandatorily convertible preferred securities per the August 
2013 agreement and the valuation of remaining shares at an observable 
market value. 

AIG Investment Program: 

The $32 million net upward reestimate for the fiscal year ended 
September 30, 2013 was due primarily to the sale of the remaining 155 
million shares of AIG common stock at a price of $32.50 per share, 
slightly lower than the September 30, 2012 price of $32.79 per share. 
The AIG program was closed out in fiscal year 2013. 

Summary Table: 

The following table recaps gross direct loans or equity investments, 
subsidy allowance, net direct loans or equity investments, 
reconciliation of subsidy cost allowance and subsidy cost, by TARP 
program, as of and for the fiscal years ended September 30, 2014 and 
2013. OFS authority expired October 3, 2010 and no commitments were 
made thereafter, so there were no budget execution subsidy rates for 
fiscal years 2014 and 2013. 

Troubled Asset Relief Program Loans and Equity Investments (Dollars in 
Millions): 

As of September 30, 2014: 

Direct Loans and Equity Investment Programs: 

Direct Loans and Equity Investments Outstanding, Gross; 
Total: $2,853; 
CPP: $625; 
PPIP: 0; 
AIFP: $1,763; 
AIG: 0; 
CDCI-TALF: $465. 

Subsidy Cost Allowance; 
Total: ($679); 
CPP: ($344); 
PPIP: 0;
AIFP: ($280); 
AIG: 0; 
CDCI-TALF: ($55). 

Direct Loans and Equity Investments Outstanding, Net; 
Total: $2,174; 
CPP: $281; 
PPIP: 0;
AIFP: $14,83; 
AIG: 0; 
CDCI-TALF: $410. 

Obligations for Loans and Investments not yet Disbursed; 
Total: $126; 
CPP: 0; 
PPIP: $126; 
AIFP: 0; 
AIG: 0; 
CDCI-TALF: 0. 

Reconciliation of Subsidy Cost Allowance: 

Balance, Beginning of Period; 
Total: $5,627; 
CPP: $1,350; 
PPIP: ($10);
AIFP: $4,281; 
AIG: 0; 
CDCI-TALF: $6. 

Interest and Dividend Revenue; 
Total: $245; 
CPP: $88; 
PPIP: $6; 
AIFP: $141; 
AIG: 0; 
CDCI-TALF: 10. 

Net Proceeds from Sales and Repurchases of Assets in Excess of (Less 
than) Cost; 
Total: ($1,889); 
CPP: ($169); 
PPIP: $4; 
AIFP: ($1,786); 
AIG: 0; 
CDCI-TALF: $62. 

Write-Offs 
Total: ($1,623); 
CPP: ($797); 
PPIP: 0; 
AIFP: ($826); 
AIG: 0; 
CDCI-TALF: 0. 

Net Interest Expense on Borrowings from Fiscal Service and Financing 
Account Balance; 
Total: ($189); 
CPP: ($40); 
AIFP: 0;
PPIP: ($133); 
AIG: 0; 
CDCI-TALF: ($16). 

Balance, End of Period, Before Reestimates; 
Total: $2,171; 
CPP: $432; 
AIFP: 0; 
PIP: $1,677; 
AIG: 0; 
CDCI-TALF: $62. 

Subsidy Reestimates Upward (Downward); 
Total: ($1,492); 
CPP: ($88); 
AIFP: 0;
PIP: ($1,397); 
AIG: 0; 
CDCI-TALF: ($7). 

Balance, End of Period; 
Total: $679; 
CPP: $344; 
AIFP: 0;
PIP: $280; 
AIG: 0; 
CDCI-TALF: $55. 

Reconciliation of Subsidy Cost (Income): 

Subsidy Cost (Income) for Modifications; 
Total: 0; 
CPP: 0; 
PPIP: 0;
AIFP: 0; 
AIG: 0; 
CDCI-TALF: 0. 

Subsidy Reestimates Upward (Downward); 
Total: ($1,492); 
CPP: ($88); 
PPIP: 0; 
AIFP: ($1,397); 
AIG: 0; 
CDCI-TALF: ($7). 

Total Direct Loan and Equity Investment Programs Subsidy Cost (Income); 
Total: ($1,492); 
CPP: ($88); 
PPIP: 0; 
AIFP: ($1,397); 
AIG: 0; 
CDCI-TALF: ($7). 

As of September 30, 2013: 

Direct Loans and Equity Investment Programs: 

Direct Loans and Equity Investments Outstanding, Gross; 
Total: $23,496; 
CPP: $3,143; 
PPIP: 0; 
AIFP: $19,878; 
AIG: 0; 
CDCI-TALF: $475. 

Subsidy Cost Allowance; 
Total: ($5,627); 
CPP: ($1,350); 
PPIP: $10;
AIFP: ($4,281); 
AIG: 0; 
CDCI-TALF: ($6). 

Direct Loans and Equity Investments Outstanding, Net; 
Total: $17,869; 
CPP: $1,793; 
PPIP: $10;
AIFP: $15,597; 
AIG: 0; 
CDCI-TALF: $469. 

Obligations for Loans and Investments not yet Disbursed; 
Total: $984; 
CPP: 0; 
PPIP: $984; 
AIFP: 0; 
AIG: 0; 
CDCI-TALF: 0. 

Reconciliation of Subsidy Cost Allowance: 

Balance, Beginning of Period; 
Total: $22,842; 
CPP: $2,930; 
PPIP: ($1,015);
AIFP: $19,706; 
AIG: $1,658; 
CDCI-TALF: ($437). 

Subsidy Cost (Income) for Disbursements and Modifications; 
Total: ($55); 
CPP: 0; 
PPIP: 0;
AIFP: 0; 
AIG: 0; 
CDCI-TALF: ($55). 

Dividend and Interest Income; 
Total: $1,092; 
CPP: $262; 
PPIP: $271; 
AIFP: $534; 
AIG: 0; 
CDCI-TALF: $25. 

Net Proceeds from Sales and Repurchases of Assets in Excess of (Less 
than) Cost; 
Total: ($5,790); 
CPP: ($493); 
PPIP: $1,173; 
AIFP: ($5,361); 
AIG: ($1,679); 
CDCI-TALF: $570. 

Write-Offs 
Total: ($111); 
CPP: ($104); 
PPIP: 0; 
AIFP: 0; 
AIG: 0; 
CDCI-TALF: $7. 

Net Interest Expense on Borrowings from BPD and Financing Account 
Balance; 
Total: ($612); 
CPP: ($105); 
PPIP: ($59); 
AIFP: ($412); 
AIG: ($11); 
CDCI-TALF: ($25). 

Balance, End of Period, Before Reestimates; 
Total: $17,366; 
CPP: $22,490; 
PPIP: $370; 
AIFP: $14,467; 
AIG: ($32); 
CDCI-TALF: $71. 

Subsidy Reestimates - Upward (Downward); 
Total: ($11,739); 
CPP: ($1,140); 
PPIP: ($380); 
AIFP: ($10,186); 
AIG: $32; 
CDCI-TALF: ($65). 

Balance, End of Period; 
Total: $22,842; 
CPP: $2,930; 
PPIP: ($1,015); 
AIFP: $19,706; 
AIG: $1,658; 
CDCI-TALF: ($437). 

Reconciliation of Subsidy Cost (Income): 

Subsidy Cost (Income) for Modifications; 
Total: ($55); 
CPP: 0; 
PPIP: 0; 
AIFP: 0; 
AIG: 0; 
CDCI-TALF: ($55). 

Subsidy Reestimates - Upward (Downward); 
Total: ($11,739); 
CPP: ($1,140); 
PPIP: ($380); 
AIFP: ($10,186); 
AIG: $32; 
CDCI-TALF: $65. 

Total Direct Loan and Equity Investment Programs Subsidy Cost (Income); 
Total: ($11,739); 
CPP: ($1,140); 
PPIP: ($380); 
AIFP: ($10,186); 
AIG: $32; 
CDCI-TALF: ($120). 

[End of table] 

Other Credit Programs: 

Asset Guarantee Program: 

The Asset Guarantee Program (AGP) provided guarantees for assets held 
by systemically significant financial institutions that faced a risk 
of losing market confidence due in large part to a portfolio of 
distressed or illiquid assets. 

Section 102 of the EESA required the Secretary to establish the AGP to 
guarantee troubled assets originated or issued prior to March 14, 
2008, including mortgage-backed securities. The OFS completed its only 
transaction under the AGP in January 2009, when it finalized the terms 
of a guarantee agreement with Citigroup. Under the agreement, the OFS, 
the Federal Deposit Insurance Corporation (FDIC), and the FRBNY 
(collectively the USG Parties) provided protection against the 
possibility of large losses on an asset pool of approximately $301.0 
billion of loans and securities backed by residential and commercial 
real estate and other such assets, which remained on Citigroup's 
balance sheet. The OFS's guarantee was limited to $5.0 billion. 

In December 2009, the USG Parties and Citigroup agreed to terminate 
the guarantee agreement. 

At the beginning of fiscal year 2013, $800 million of a TruPS-related 
receivable from the FDIC valued at $967 million was on the OFS Balance 
Sheet. The TruPS were received, exchanged for subordinated notes, and 
the notes sold in 2013 for $894 million. In addition, OFS received 
$200 million of dividends on the TruPS in fiscal year 2013. 

A downward modification of $94 million due to the exchange of TruPS 
into subordinated notes and immediate sale of the notes, and net 
reestimates including the closing downward reestimate of $24 million 
resulted in subsidy income for fiscal year 2013. 

The AGP program was closed out in fiscal year 2013. The following 
table details the changes in the receivable account and the AGP 
subsidy cost during fiscal year 2013: 

Reconciliation of Asset Guarantee Program Receivable: 
(Dollars in Millions): 

Balance, Beginning of Period; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $967. 

Subsidy income for modifications; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $94. 

Dividend Revenue; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: ($200). 

Proceeds from Sales in Excess of Cost; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: ($894). 

Net Interest Expense on Borrowings from BPD and Financing Account 
Balance; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $9. 

Balance, End of Period, Before Reestimates; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: ($24). 

Subsidy Reestimates - Downward; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $24. 

Balance, End of Period; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: 0. 

Reconciliation of Subsidy Cost (Income): 

Subsidy income for modifications; 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $94. 

Subsidy Reestimates - (Downward); 
Fiscal Year 2014: 0; 
Fiscal Year 2013: ($24). 

Total Subsidy Cost (Income); 
Fiscal Year 2014: 0; 
Fiscal Year 2013: ($118). 

[End of table] 

FHA-Refinance Program: 

As discussed in Note 5, the OFS entered into a loss-sharing agreement 
with the FHA to support a program in which FHA guarantees refinancing 
of borrowers whose homes were worth less than the remaining amounts 
owed under their mortgage loans. OFS has established a $50 million 
account, held by a commercial bank serving as its agent, from which 
any required reimbursements for losses will be paid to third party 
claimants, including banks or other investors. 

During fiscal year 2014, no new loans were guaranteed by FHA under 
this program that required a Treasury contribution. 

During fiscal year 2013, $182 million of loans were guaranteed by the 
FHA. As of September 30, 2014 and September 30, 2013, 3,015 loans that 
FHA guaranteed, with a total value of $489 million, had been 
refinanced under the program through May 2013. Effective June 1, 2013, 
the Treasury Coverage Ratio, which governs the amount of losses 
financed by OFS, was recalculated and it was determined that OFS's 
guarantee was no longer needed during the remainder of fiscal year 
2013 and throughout fiscal year 2014. 

OFS's maximum exposure related to FHA's guarantee totaled $34 million 
and $59 million at September 30, 2014 and 2013, respectively. OFS's 
guarantee resulted in a liability of $6 million at September 30, 2014 
and a liability of $9 million at September 30, 2013. The liability was 
calculated, using credit reform accounting, as the present value of 
the estimated future cash outflows for the OFS's share of losses 
incurred on any defaults of the FHA guaranteed loans. As of September 
30, 2013, $47,840 of claims had been paid by OFS under the program. No 
additional claims were paid by OFS during fiscal year 2014 under the 
program. 

At September 30, 2014 and 2013, OFS's obligation for subsidy for 
potential new FHA guaranteed loans under the program was $1.0 billion. 

Budget subsidy rates for the program, entirely for defaults, were set 
at 2.48 percent for loans guaranteed in fiscal year 2013. 

The program recorded a $3 million downward reestimate, for each of the 
fiscal years 2014 and 2013, due to lower than projected defaults. 

The following table details the changes in the FHA-Refinance Program 
Liability and the Subsidy Cost for the program during fiscal years 
2014 and 2013: 

Reconciliation of FHA-Refinance Program Liability: 
(Dollars in Millions): 

Balance, Beginning of Period; 
Fiscal Year 2014: $9; 
Fiscal Year 2013: $7. 

Subsidy Cost for Guarantees (Defaults); 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $5. 

Balance, End of Period, Before Reestimates; 
Fiscal Year 2014: $9; 
Fiscal Year 2013: $12. 

Subsidy Reestimates - (Downward); 
Fiscal Year 2014: ($3); 
Fiscal Year 2013: ($3). 

Balance, End of Period; 
Fiscal Year 2014: $6; 
Fiscal Year 2013: $9. 

Reconciliation of Subsidy Cost (Income): 

Subsidy Cost for Guarantees (Defaults); 
Fiscal Year 2014: 0; 
Fiscal Year 2013: $5. 

Subsidy Reestimates - (Downward); 
Fiscal Year 2014: ($3); 
Fiscal Year 2013: ($3). 

Total Subsidy Cost (Income); 
Fiscal Year 2014: ($3); 
Fiscal Year 2013: $2. 

[End of table] 

Note 7. Due To The General Fund: 

As of September 30, 2014, the OFS accrued $1.5 billion of downward 
reestimates payable to the General Fund. As of September 30, 2013, the 
OFS accrued $8.1 billion of downward reestimates payable to the 
General Fund. Due to the General Fund is a Non-Entity liability on the 
Balance Sheet. 

Note 8. Principal Payable To The Bureau Of The Fiscal Service (Fiscal 
Service): 

Equity investments, direct loans and other credit programs accounted 
for under federal credit reform are funded by subsidy appropriations 
and borrowings from the Fiscal Service. The OFS also borrows funds to 
pay the Treasury General Fund for negative program subsidy costs and 
downward reestimates (these reduce program subsidy cost) in advance of 
receiving the expected cash flows that cause the negative program 
subsidy or downward reestimate. The OFS makes periodic principal 
repayments to the Fiscal Service based on the analysis of its cash 
balances and future disbursement needs. All debt is intragovernmental 
and covered by budgetary resources. See additional details on 
borrowing authority in Note 11, Statement of Budgetary Resources. 

Debt transactions for the fiscal years ended September 30, 2014 and 
2013 were as follows: 

Beginning Balance, Principal Payable to the Fiscal Service; 
As of September 30, 2014: $11,949; 
As of September 30, 2013: $52,828. 

New Borrowings; 
As of September 30, 2014: $749; 
As of September 30, 2013: $208. 

Repayments; 
As of September 30, 2014: ($11,394); 
As of September 30, 2013: ($41,087). 

Ending Balance, Principal Payable to the Fiscal Service; 
As of September 30, 2014: $1,304; 
As of September 30, 2013: $11,949. 

[End of table] 

Borrowings from the Fiscal Service by TARP program, outstanding as of 
September 30, 2014 and 2013, were as follows: 

Capital Purchase Program; 
As of September 30, 2014: $2291; 
As of September 30, 2013: $1,210. 

CDCI, TALF, and SBA 7(a); 
As of September 30, 2014: $418; 
As of September 30, 2013: $551. 

Public-Private Investment Program; 
As of September 30, 2014: $7; 
As of September 30, 2013: $305. 

Automotive Industry Financing Program; 
As of September 30, 2014: $588; 
As of September 30, 2013: $9,883. 

Total Borrowings Outstanding; 
As of September 30, 2014: $1.304; 
As of September 30, 2013: $11,949. 

[End of table] 

As of September 30, 2014, borrowings carried remaining terms ranging 
from 2 to 27 years, with interest rates from 2.5 percent to 3.8 
percent. As of September 30, 2013, borrowings carried remaining terms 
ranging from 3 to 28 years, with interest rates from 2.5 percent to 
3.8 percent. 

Note 9. Commitments And Contingencies: 

The OFS is party to various legal actions and claims brought by or 
against it. In the opinion of management and the Chief Counsel, the 
ultimate resolution of these legal actions and claims will not have a 
materially adverse effect on the OFS financial statements, except for 
the pending legal action described below which may have a materially 
adverse impact on the financial statements depending on the outcome of 
the case. Contingent liabilities related to litigation are recorded in 
the financial statements if and when losses are determined to be 
probable and estimable. Contingent liabilities are disclosed where the 
conditions for liability recognition have not been met and the 
likelihood of unfavorable outcome is more than remote. If litigation 
losses are to be paid by the Treasury Judgment Fund, the related cost 
is allocated to the appropriate federal entity, which records the cost 
and an offsetting financing source in its financial statements. 

Starr International Co., Inc. v. United States: Plaintiffs' principal 
class claim in this case, filed in the U.S. Court of Federal Claims, 
arises out of the receipt by the United States of a 79.9 percent 
equity interest in AIG as part of the consideration for the extension 
of an $85 billion, 2-year revolving credit facility to AIG by the 
Federal Reserve Bank of New York in September 2008 and prior to the 
passage of the Emergency Economic Stabilization Act. Plaintiffs claim 
that the transfer of the equity interest, which was in the form of 
Series C preferred stock held by a trust for the benefit of the United 
States Treasury, was an illegal exaction under Section 13(3) of the 
Federal Reserve Act or constituted a taking of AIG shareholders' 
property for which just compensation is due under the Fifth Amendment 
to the United States Constitution. In a separate class claim, 
plaintiffs allege that an illegal exaction, or taking for which just 
compensation is due, occurred when the United States allegedly caused 
AIG to conduct a reverse stock split in June 2009 without a separate 
class vote of the then outstanding common shareholders. Plaintiffs 
seek compensatory damages from the government, including an amount 
related to the exchange by the United States of Series E and F 
preferred shares, purchased with TARP funds, for common shares of AIG 
in January 2011, which common shareholders allegedly could have 
blocked but for the reverse stock split. The United States has denied 
all liability. The Department of Justice (DOJ), which is representing 
the United States Treasury and the Board of Governors of the Federal 
Reserve System in this lawsuit, is unable to determine the likelihood 
of an unfavorable outcome or make an estimate of potential loss at 
this time. In addition, if an unfavorable outcome were to occur, OFS 
believes that the settlement would be paid by the Treasury Judgment 
Fund. Accordingly, if an unfavorable outcome were deemed probable and 
measurable and the related cost is allocated to OFS, then OFS would 
record an imputed cost and offsetting financing source in its 
financial statements. 

In addition, the OFS pays for a portion of the STARR litigation 
expenses incurred by DOJ based on an Inter-Agency Agreement (IAA) 
between the OFS and DOJ. Under the terms of the IAA, OFS paid $747,766 
to DOJ for expenses invoiced during fiscal year 2014. 

Refer to Note 5 for additional commitments relating to the Treasury 
Housing Programs under TARP and Note 6 relating to Direct Loans and 
Equity Investments, Net and Other Credit Programs. 

Note 10. Statement Of Net Cost: 

The Statement of Net Cost (SNC) presents the net cost of (income from) 
operations for the OFS under the strategic goal to promote domestic 
economic growth and stability while continuing reforms of the 
financial system. The OFS has determined that all initiatives and 
programs under the TARP fall within this strategic goal. 

The OFS SNC reports the annual accumulated full cost of the TARP's 
output, including both direct and indirect costs of the program 
services and output identifiable to TARP, in accordance with SFFAS No. 
4, Managerial Cost Accounting Concepts and Standards. 

The OFS SNC for fiscal year 2014 includes $218 million of 
intragovernmental costs relating to interest expense on borrowings 
from the Fiscal Service and $29 million in intragovernmental revenues 
relating to interest income on financing account balances. The OFS SNC 
for fiscal year 2013 includes $856 million of intragovernmental costs 
relating to interest expense on borrowings from the Fiscal Service and 
$235 million intragovernmental revenues relating to interest income on 
financing account balances. 

Subsidy allowance amortization on the SNC is the difference between 
interest income on financing fund account balances, dividends and 
interest income on direct loans, equity investments and other credit 
programs from TARP participants, and interest expense on borrowings 
from the Fiscal Service. The subsidy allowance account is used to 
present the loan or equity investment at the estimated net present 
value of future cash flows. The OFS SNC includes $56 million and $671 
million of subsidy allowance amortization for fiscal years 2014 and 
2013, respectively. 

Note 11. Statement Of Budgetary Resources: 

The Statement of Budgetary Resources (SBR) presents information about 
total budgetary resources available to the OFS and the status of those 
resources. For the fiscal year ended September 30, 2014, the OFS's 
total resources in budgetary accounts were $8.1 billion and resources 
in non-budgetary financing accounts, including borrowing authority and 
spending authority from collections of loan principal, liquidation of 
equity investments, interest, dividends and fees were $9.1 billion. 
For the fiscal year ended September 30, 2013, the OFS's total 
resources in budgetary accounts were $22.4 billion and resources in 
non-budgetary financing accounts were $15.6 billion. 

Permanent Indefinite Appropriations: 

The OFS receives permanent indefinite appropriations annually, if 
necessary, to fund increases in the projected subsidy costs of direct 
loans, equity investments and other credit programs as determined by 
the reestimation process required by the FCRA. 

Additionally, Section 118 of the EESA states that the Secretary may 
issue public debt securities and use the resulting funds to carry out 
the Act and that any such funds expended or obligated by the Secretary 
for actions authorized by this Act, including the payment of 
administrative expenses, shall be deemed appropriated at the time of 
such expenditure or obligation. 

Borrowing Authority: 

The OFS is authorized to borrow from the Fiscal Service to pay 
interest costs in excess of interest income and to fund downward 
reestimates transfers to the General Fund. For the fiscal year ended 
September 30, 2014, the OFS had borrowing authority available of $90 
million, of the $839 million current year authority authorized. For 
the fiscal year ended September 30, 2013, the OFS had no borrowing 
authority available, of the $208 million authorized, since the 
authority was used. 

The OFS uses dividends and interest received as well as principal 
repayments on direct loans and liquidation of equity investments to 
repay debt in the non-budgetary direct loan, equity investment and 
other credit program financing accounts. These receipts are not 
available for any other use per credit reform accounting guidance. 

Apportionment Categories of Obligations Incurred: Direct versus 
Reimbursable Obligations: 

All of the OFS apportionments are Direct and are Category B. Category 
B apportionments typically distribute budgetary resources on a basis 
other than calendar quarters, such as by activities, projects, objects 
or a combination of these categories. The OFS obligations incurred are 
direct obligations (obligations not financed from intragovernmental 
reimbursable agreements). 

Undelivered Orders: 

Undelivered orders as of September 30, 2014 were $24.5 billion in 
budgetary accounts and $0.1 billion in non-budgetary financing 
accounts. Undelivered orders as of September 30, 2013 were $29.1 
billion in budgetary accounts and $1.0 billion in non-budgetary 
financing accounts. 

Explanation of Differences Between the Statement of Budgetary 
Resources and the Budget of the United States Government: 

Federal agencies and entities are required to explain material 
differences between amounts reported in the SBR and the actual amounts 
reported in the Budget of the U.S. Government (the President's Budget). 

The President's Budget for 2016, with the "Actual" column completed 
for fiscal year 2014, has not yet been published as of the date of 
these financial statements. The President's Budget is currently 
expected to be published and delivered to Congress in early February 
2015. It will be available from the Government Printing Office. 

The 2015 President's Budget, with the "Actual" column completed for 
the fiscal year ended September 30, 2013, was published in March 2014, 
and reconciled to the SBR. The only differences between the two 
documents were due to: 

* Rounding; 

* Expired funds that are not shown in the "Actual" column of the 
President's Budget. 

Note 12. Reconciliation Of Obligations Incurred To Net Cost Of (Income 
From) Operations: 

The OFS presents the SNC using the accrual basis of accounting. This 
differs from the obligation-based measurement of total resources 
supplied, both budgetary and from other sources, on the SBR. The 
reconciliation of obligations incurred to net cost of operations shown 
below categorizes the differences: 

between the two, and illustrates that the OFS maintains reconcilable 
consistency between the two types of reporting. 

The Reconciliation of Obligations Incurred to Net Cost of (Income 
from) Operations for the fiscal years ended September 30, 2014 and 
2013 follows: 

Resources Used to Finance Activities: 
(Dollars in millions): 

Budgetary Resources Obligated: 

Obligations Incurred; 
Fiscal year 2014: $8,797; 
Fiscal year 2013: $14,879. 

Spending Authority from Offsetting Collections and Recoveries; 
Fiscal year 2014: ($18,471); 
Fiscal year 2013: ($48,668). 

Offsetting Receipts; 
Fiscal year 2014: ($8,238); 
Fiscal year 2013: ($13,218). 

Net Obligations; 
Fiscal year 2014: ($17,912); 
Fiscal year 2013: ($47,007). 

Other Resources; 
Fiscal year 2014: 0; 
Fiscal year 2013: $1. 

Total Resources Used to Finance Activities; 
Fiscal year 2014: ($17,912); 
Fiscal year 2013: ($47,006). 

Resources Used to Finance Items Not Part of Net Cost of (Income from) 
Operations: 

Net Obligations in Direct Loan, Equity Investment and Asset Guarantee 
Financing Funds; 
Fiscal year 2014: $9,707; 
Fiscal year 2013: $27,322. 

Change in Resources Obligated for Goods, Services and Benefits Ordered 
but not yet Provided; 
Fiscal year 2014: $4,523; 
Fiscal year 2013: $11,164. 

Resources that Fund Prior Period Expenses and Net Downward Reestimates; 
Fiscal year 2014: $8,138; 
Fiscal year 2013: $8,957. 

Total Resources Used to Finance Items Not Part of Net Cost of (Income 
from) Operations; 
Fiscal year 2014: $22,368; 
Fiscal year 2013: $47,443. 

Total Resources Used to Finance the Net Cost of (Income from) 
Operations; 
Fiscal year 2014: $4,456; 
Fiscal year 2013: $437. 

Components of Net Cost of (Income from) Operations that Will Not 
Require or Generate Resources in the Current Period: 

Accrued Net Downward Reestimates at Year-End; 
Fiscal year 2014: ($1,486); 
Fiscal year 2013: ($8,139). 

Other; 
Fiscal year 2014: $1. 
Fiscal year 2013: $1. 

Total Components of Net Cost of (Income from) Operations that Will Not 
Require or Generate Resources in the Current Period; 
Fiscal year 2014: ($1,485); 
Fiscal year 2013: ($8,138). 

Net Cost of (Income from) Operations; 
Fiscal year 2014: $2,971; 
Fiscal year 2013: ($7,701). 

[End of table] 

Required Supplementary Information: 

Office Of Financial Stability (Troubled Asset Relief Program): 
Required Supplementary Information Combined Statement Of Budgetary 
Resources For the Year Ended September 30, 2014 (Unaudited): 
Dollars in Millions: 

Budgetary Resources: 

Unobligated Balances Brought Forward; 
Combined Budgetary Accounts: $21,606; 
Combined Nonbudgetary Financing Accounts: $17468; 
TARP Programs Budgetary Accounts: $21,290; 
TARP Programs Nonbudgetary Financing Accounts: $1,462; 
TARP Administrative Budgetary Accounts: $316; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Recoveries of Prior Year Unpaid Obligations; 
Combined Budgetary Accounts: $261; 
Combined Nonbudgetary Financing Accounts: $865; 
TARP Programs Budgetary Accounts: $235; 
TARP Programs Nonbudgetary Financing Accounts: $865;
TARP Administrative Budgetary Accounts: $26; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Repayment of Debt, Prior Year Balance; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($1,444); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($1,444); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Canceled Authority: 
Combined Budgetary Accounts: ($14,120); 
Combined Nonbudgetary Financing Accounts: 0; 
TARP Programs Budgetary Accounts: ($14,024); 
TARP Programs Nonbudgetary Financing Accounts: 0; 
TARP Administrative Budgetary Accounts: ($96);
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unobligated Balance from Prior Year Budget Authority, Net: 
Combined Budgetary Accounts: $7,747;
Combined Nonbudgetary Financing Accounts: $883; 
TARP Programs Budgetary Accounts: $7,501;
TARP Programs Nonbudgetary Financing Accounts: $883; 
TARP Administrative Budgetary Accounts: $246;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Appropriations; 
Combined Budgetary Accounts: $308; 
Combined Nonbudgetary Financing Accounts: 0;
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: 0; 
TARP Administrative Budgetary Accounts: $218; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Borrowing Authority: 
Combined Budgetary Accounts: 0; 
Combined Nonbudgetary Financing Accounts: $839;
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: $839; 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Spending Authority from Offsetting Collections; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $7,394; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $7,394; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Budget Resources (Note 11); 
Combined Budgetary Accounts: $8,055; 
Combined Nonbudgetary Financing Accounts: $9,116; 
TARP Programs Budgetary Accounts: $7,590; 
TARP Programs Nonbudgetary Financing Accounts: $9,116; 
TARP Administrative Budgetary Accounts: $465; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Status Of Budgetary Resources: 

Obligations Incurred; 
Combined Budgetary Accounts: $295; 
Combined Nonbudgetary Financing Accounts: $8,502; 
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: $8,502; 
TARP Administrative Budgetary Accounts: $205; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unobligated Balance: Apportioned; 
Combined Budgetary Accounts: $14; 
Combined Nonbudgetary Financing Accounts: $558; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $558; 
TARP Administrative Budgetary Accounts: $14; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unapportioned; 
Combined Budgetary Accounts: $7,746; 
Combined Nonbudgetary Financing Accounts: $56; 
TARP Programs Budgetary Accounts: $7,500; 
TARP Programs Nonbudgetary Financing Accounts: $56; 
TARP Administrative Budgetary Accounts: $246; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Unobligated Balance; 
Combined Budgetary Accounts: $7,760; 
Combined Nonbudgetary Financing Accounts: $614; 
TARP Programs Budgetary Accounts: $7,500; 
TARP Programs Nonbudgetary Financing Accounts: $614; 
TARP Administrative Budgetary Accounts: $260; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Status Of Budgetary Resources; 
Combined Budgetary Accounts: $8,055; 
Combined Nonbudgetary Financing Accounts: $9,116; 
TARP Programs Budgetary Accounts: $7,590; 
TARP Programs Nonbudgetary Financing Accounts: $9,116; 
TARP Administrative Budgetary Accounts: $465; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change In Obligated Balances: 

Obligated Balance Brought Forward: 

Unpaid Obligations Brought Forward, October 1; 
Combined Budgetary Accounts: $29,406; 
Combined Nonbudgetary Financing Accounts: $993; 
TARP Programs Budgetary Accounts: $29,221; 
TARP Programs Nonbudgetary Financing Accounts: $993; 
TARP Administrative Budgetary Accounts: $185; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligations Incurred;
Combined Budgetary Accounts: $295; 
Combined Nonbudgetary Financing Accounts: $8,502; 
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: $8,502; 
TARP Administrative Budgetary Accounts: $205; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Gross Outlays; 
Combined Budgetary Accounts: ($4,612); 
Combined Nonbudgetary Financing Accounts: ($8,503); 
TARP Programs Budgetary Accounts: ($4,390); 
TARP Programs Nonbudgetary Financing Accounts: ($8,503); 
TARP Administrative Budgetary Accounts: ($222); 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Recoveries of Prior Year Unpaid Obligations; 
Combined Budgetary Accounts: ($261); 
Combined Nonbudgetary Financing Accounts: ($865); 
TARP Programs Budgetary Accounts: ($235); 
TARP Programs Nonbudgetary Financing Accounts: ($865);
TARP Administrative Budgetary Accounts: ($26); 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unpaid Obligations, end of year; 
Combined Budgetary Accounts: $24,828; 
Combined Nonbudgetary Financing Accounts: $127; 
TARP Programs Budgetary Accounts: $24,686; 
TARP Programs Nonbudgetary Financing Accounts: $127; 
TARP Administrative Budgetary Accounts: $142; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Uncollected Payments from Federal Sources: 

Uncollected Payments Brought Forward, October 1; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($226); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($226); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Payments; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $197; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $197; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Uncollected Payments from Federal Sources, end of year; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($29); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($29); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance, Net, end of year; 
Combined Budgetary Accounts: $24,828; 
Combined Nonbudgetary Financing Accounts: $98; 
TARP Programs Budgetary Accounts: $24,686; 
TARP Programs Nonbudgetary Financing Accounts: $127; 
TARP Administrative Budgetary Accounts: $142; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance (Net, of unpaid obligations and uncollected payment 
above): 

Unpaid Obligations, Net, brought forward, October 1; 
Combined Budgetary Accounts: $29,406; 
Combined Nonbudgetary Financing Accounts: $767; 
TARP Programs Budgetary Accounts: $29,221; 
TARP Programs Nonbudgetary Financing Accounts: $767; 
TARP Administrative Budgetary Accounts: $185; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance, Net, End of Year; 
Combined Budgetary Accounts: $24,828; 
Combined Nonbudgetary Financing Accounts: $98; 
TARP Programs Budgetary Accounts: $24,686; 
TARP Programs Nonbudgetary Financing Accounts: $98; 
TARP Administrative Budgetary Accounts: $142; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross; 
Combined Budgetary Accounts: $308; 
Combined Nonbudgetary Financing Accounts: $8,233; 
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: $8,233; 
TARP Administrative Budgetary Accounts: $218; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($17,541); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($17,541); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Customer Payments from Federal Sources; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $197; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $197; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross: 
Combined Budgetary Accounts: $308; 
Combined Nonbudgetary Financing Accounts: $8,233; 
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: $9,111; 
TARP Administrative Budgetary Accounts: $218; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections: 
Combined Budgetary Accounts: 0; 
Combined Nonbudgetary Financing Accounts: ($17,541); 
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: ($17,541); 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Customer Payments from Federal Sources; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $197; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $197; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority, Net: 
Combined Budgetary Accounts: $308; 
Combined Nonbudgetary Financing Accounts: ($9,111); 
TARP Programs Budgetary Accounts: $90; 
TARP Programs Nonbudgetary Financing Accounts: ($9,111); 
TARP Administrative Budgetary Accounts: $218; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Gross Outlays: 
Combined Budgetary Accounts: $4,612; 
Combined Nonbudgetary Financing Accounts: $8,503; 
TARP Programs Budgetary Accounts: $4,390; 
TARP Programs Nonbudgetary Financing Accounts: $8,503; 
TARP Administrative Budgetary Accounts: $222; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections: 
Combined Budgetary Accounts: 0; 
Combined Nonbudgetary Financing Accounts: ($17,541); 
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: ($17,541); 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Net Outlays: 
Combined Budgetary Accounts: $4,612; 
Combined Nonbudgetary Financing Accounts: ($9,038); 
TARP Programs Budgetary Accounts: $4,390; 
TARP Programs Nonbudgetary Financing Accounts: ($9,038); 
TARP Administrative Budgetary Accounts: $222; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Distributed Offsetting Receipts; 
Combined Budgetary Accounts: ($8,238); 
Combined Nonbudgetary Financing Accounts: 0;
TARP Programs Budgetary Accounts: ($8,238); 
TARP Programs Nonbudgetary Financing Accounts: 0;
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Agency Outlays, Net; 
Combined Budgetary Accounts: ($3,626); 
Combined Nonbudgetary Financing Accounts: ($9,038); 
TARP Programs Budgetary Accounts: ($3,848); 
TARP Programs Nonbudgetary Financing Accounts: ($9,038); 
TARP Administrative Budgetary Accounts: $222; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

[End of table] 

Office Of Financial Stability (Troubled Asset Relief Program): 
Required Supplementary Information Combined Statement Of Budgetary 
Resources For the Year Ended September 30, 2013 (Unaudited): 
Dollars in Millions: 

Budgetary Resources: 

Unobligated Balances Brought Forward; 
Combined Budgetary Accounts: $14,350; 
Combined Nonbudgetary Financing Accounts: $17,631; 
TARP Programs Budgetary Accounts: $14,071; 
TARP Programs Nonbudgetary Financing Accounts: $17,631; 
TARP Administrative Budgetary Accounts: $279; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Recoveries of Prior Year Unpaid Obligations; 
Combined Budgetary Accounts: $7,246; 
Combined Nonbudgetary Financing Accounts: $4,941; 
TARP Programs Budgetary Accounts: $7,219; 
TARP Programs Nonbudgetary Financing Accounts: $4,941;
TARP Administrative Budgetary Accounts: $27; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Borrowing Authority Withdrawn; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($2,611); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($2,611); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Repayment of Debt, Prior Year Balance; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($17,738); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($17,738); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unobligated Balance from Prior Year Budget Authority, Net: 
Combined Budgetary Accounts: $21,596;
Combined Nonbudgetary Financing Accounts: $2,223; 
TARP Programs Budgetary Accounts: $21,290;
TARP Programs Nonbudgetary Financing Accounts: $2,223; 
TARP Administrative Budgetary Accounts: $306;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Appropriations; 
Combined Budgetary Accounts: $788; 
Combined Nonbudgetary Financing Accounts: 0;
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: 0; 
TARP Administrative Budgetary Accounts: $305; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority: 
Combined Budgetary Accounts: 0; 
Combined Nonbudgetary Financing Accounts: $208;
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: $208; 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Spending Authority from Offsetting Collections; 
Combined Budgetary Accounts: $1;
Combined Nonbudgetary Financing Accounts: $13,131; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $13,131; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Budget Resources (Note 11); 
Combined Budgetary Accounts: $22,385; 
Combined Nonbudgetary Financing Accounts: $15,562; 
TARP Programs Budgetary Accounts: $21,773; 
TARP Programs Nonbudgetary Financing Accounts: $15,562; 
TARP Administrative Budgetary Accounts: $612; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Status Of Budgetary Resources: 

Obligations Incurred; 
Combined Budgetary Accounts: $779; 
Combined Nonbudgetary Financing Accounts: $14,100; 
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: $14,100; 
TARP Administrative Budgetary Accounts: $296; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unobligated Balance: Apportioned; 
Combined Budgetary Accounts: $11; 
Combined Nonbudgetary Financing Accounts: $668; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $668; 
TARP Administrative Budgetary Accounts: $11; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unapportioned; 
Combined Budgetary Accounts: $21,595; 
Combined Nonbudgetary Financing Accounts: $794; 
TARP Programs Budgetary Accounts: $21,290; 
TARP Programs Nonbudgetary Financing Accounts: $794; 
TARP Administrative Budgetary Accounts: $305; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Unobligated Balance; 
Combined Budgetary Accounts: $21,606; 
Combined Nonbudgetary Financing Accounts: $1,462; 
TARP Programs Budgetary Accounts: $21,290; 
TARP Programs Nonbudgetary Financing Accounts: $1,462; 
TARP Administrative Budgetary Accounts: $316; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Total Status Of Budgetary Resources; 
Combined Budgetary Accounts: $22,385; 
Combined Nonbudgetary Financing Accounts: $15,562; 
TARP Programs Budgetary Accounts: $21,773; 
TARP Programs Nonbudgetary Financing Accounts: $15,562; 
TARP Administrative Budgetary Accounts: $612; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change In Obligated Balances: 

Obligated Balance Brought Forward: 

Unpaid Obligations Brought Forward, October 1; 
Combined Budgetary Accounts: $40,548; 
Combined Nonbudgetary Financing Accounts: $5,926; 
TARP Programs Budgetary Accounts: $40,384; 
TARP Programs Nonbudgetary Financing Accounts: $5,926; 
TARP Administrative Budgetary Accounts: $164; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligations Incurred;
Combined Budgetary Accounts: $779; 
Combined Nonbudgetary Financing Accounts: $14,100; 
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: $14,100; 
TARP Administrative Budgetary Accounts: $296; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Gross Outlays; 
Combined Budgetary Accounts: ($4,675); 
Combined Nonbudgetary Financing Accounts: ($14,092); 
TARP Programs Budgetary Accounts: ($4,427); 
TARP Programs Nonbudgetary Financing Accounts: ($14,092); 
TARP Administrative Budgetary Accounts: ($248); 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Recoveries of Prior Year Unpaid Obligations; 
Combined Budgetary Accounts: ($7,246); 
Combined Nonbudgetary Financing Accounts: ($4,941); 
TARP Programs Budgetary Accounts: ($7,219); 
TARP Programs Nonbudgetary Financing Accounts: ($4,941);
TARP Administrative Budgetary Accounts: ($27); 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Unpaid Obligations, end of year; 
Combined Budgetary Accounts: $29,406; 
Combined Nonbudgetary Financing Accounts: $993; 
TARP Programs Budgetary Accounts: $29,211; 
TARP Programs Nonbudgetary Financing Accounts: $993; 
TARP Administrative Budgetary Accounts: $185; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Uncollected Payments from Federal Sources: 

Uncollected Payments Brought Forward, October 1; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($349); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($349); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Payments; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $123; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $123; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Uncollected Payments from Federal Sources, end of year; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: ($226); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($226); 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance, Net, end of year; 
Combined Budgetary Accounts: $29,406; 
Combined Nonbudgetary Financing Accounts: $767; 
TARP Programs Budgetary Accounts: $29,211; 
TARP Programs Nonbudgetary Financing Accounts: $767; 
TARP Administrative Budgetary Accounts: $185; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance (Net, of unpaid obligations and uncollected payment 
above): 

Unpaid Obligations, Net, brought forward, October 1; 
Combined Budgetary Accounts: $40,548; 
Combined Nonbudgetary Financing Accounts: $5,577; 
TARP Programs Budgetary Accounts: $40,384; 
TARP Programs Nonbudgetary Financing Accounts: $5,577; 
TARP Administrative Budgetary Accounts: $164; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Obligated Balance, Net, End of Year; 
Combined Budgetary Accounts: $29,406; 
Combined Nonbudgetary Financing Accounts: $767; 
TARP Programs Budgetary Accounts: $29,221; 
TARP Programs Nonbudgetary Financing Accounts: $767; 
TARP Administrative Budgetary Accounts: $185; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross; 
Combined Budgetary Accounts: $789; 
Combined Nonbudgetary Financing Accounts: $13,339; 
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: $13,339; 
TARP Administrative Budgetary Accounts: $306; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections; 
Combined Budgetary Accounts: ($1);
Combined Nonbudgetary Financing Accounts: ($36,604); 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: ($36,604); 
TARP Administrative Budgetary Accounts: ($1);
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Customer Payments from Federal Sources; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $123; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $123; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority and Outlays, Net: 

Budget Authority, Gross: 
Combined Budgetary Accounts: $789; 
Combined Nonbudgetary Financing Accounts: $13,339; 
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: $13,339; 
TARP Administrative Budgetary Accounts: $306; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections: 
Combined Budgetary Accounts: ($1); 
Combined Nonbudgetary Financing Accounts: ($36,604); 
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: ($36,604); 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Change in Uncollected Customer Payments from Federal Sources; 
Combined Budgetary Accounts: 0;
Combined Nonbudgetary Financing Accounts: $123; 
TARP Programs Budgetary Accounts: 0;
TARP Programs Nonbudgetary Financing Accounts: $123; 
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Budget Authority, Net: 
Combined Budgetary Accounts: $788; 
Combined Nonbudgetary Financing Accounts: ($23,142); 
TARP Programs Budgetary Accounts: $483; 
TARP Programs Nonbudgetary Financing Accounts: ($23,142); 
TARP Administrative Budgetary Accounts: $305; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Gross Outlays: 
Combined Budgetary Accounts: $4,675; 
Combined Nonbudgetary Financing Accounts: $14,092; 
TARP Programs Budgetary Accounts: $4,427; 
TARP Programs Nonbudgetary Financing Accounts: $14,092; 
TARP Administrative Budgetary Accounts: $248; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Actual Offsetting Collections: 
Combined Budgetary Accounts: ($1); 
Combined Nonbudgetary Financing Accounts: ($36,604); 
TARP Programs Budgetary Accounts: 0; 
TARP Programs Nonbudgetary Financing Accounts: ($36,604); 
TARP Administrative Budgetary Accounts: 0; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Net Outlays: 
Combined Budgetary Accounts: $4,674; 
Combined Nonbudgetary Financing Accounts: $22,512; 
TARP Programs Budgetary Accounts: $4,427; 
TARP Programs Nonbudgetary Financing Accounts: ($22,512); 
TARP Administrative Budgetary Accounts: $247; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Distributed Offsetting Receipts; 
Combined Budgetary Accounts: ($13,218); 
Combined Nonbudgetary Financing Accounts: 0;
TARP Programs Budgetary Accounts: ($13,218); 
TARP Programs Nonbudgetary Financing Accounts: 0;
TARP Administrative Budgetary Accounts: 0;
TARP Administrative Nonbudgetary Financing Accounts: 0. 

Agency Outlays, Net; 
Combined Budgetary Accounts: ($8,544); 
Combined Nonbudgetary Financing Accounts: ($22,512); 
TARP Programs Budgetary Accounts: ($8,791); 
TARP Programs Nonbudgetary Financing Accounts: ($22,512); 
TARP Administrative Budgetary Accounts: $275; 
TARP Administrative Nonbudgetary Financing Accounts: 0. 

[End of table] 

Footnotes: 

[1] During fiscal year 2014, the OFS held an equity interest in an SPV 
under the TALF program. During fiscal year 2013, the OFS held an 
equity interest in SPVs under the TALF and PPIP programs. 

[2] This consists of equity investments made under CPP and CDCI. 

[End of section] 

Part 3: Other Information (Unaudited): 

Section A - Schedule of Spending: 

Total Resources per Statement of Budgetary Resources (SBR): 
2014: 
Budgetary Accounts: $8,055; 
Nonbudgetary Financing Accounts: $9,116; 
2013: 
Budgetary Accounts: $22,385; 
Nonbudgetary Financing Accounts: $15,562. 

Less Amount Apportioned (not yet agreed to be spent); 
2014: 
Budgetary Accounts: ($14); 
Nonbudgetary Financing Accounts: ($588); 
2013: 
Budgetary Accounts: ($11); 
Nonbudgetary Financing Accounts: ($668). 

Less Amount Unapportioned (not yet available to be spent); 
2014: 
Budgetary Accounts: ($7,746); 
Nonbudgetary Financing Accounts: ($56); 
2013: 
Budgetary Accounts: ($21,595); 
Nonbudgetary Financing Accounts: ($794). 

Amount Available To Spend-Obligations Incurred Per SBR; 
2014: 
Budgetary Accounts: $295; 
Nonbudgetary Financing Accounts: $8,502; 
2013: 
Budgetary Accounts: $779; 
Nonbudgetary Financing Accounts: $14,100. 

How Was The Amount Spent? 

Personnel Compensation; 
2014: 
Budgetary Accounts: $12; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $17. 
Nonbudgetary Financing Accounts: 0. 

Personnel Benefits; 
2014: 
Budgetary Accounts: $4; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $5; 
Nonbudgetary Financing Accounts: 0. 

Travel and Transportation; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $1; 
Nonbudgetary Financing Accounts: 0. 

Supplies and Materials; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $1; 
Nonbudgetary Financing Accounts: 0. 

Other Services; 
2014: 
Budgetary Accounts: $189; 
Nonbudgetary Financing Accounts: $46; 
2013: 
Budgetary Accounts: $272; 
Nonbudgetary Financing Accounts: $26. 

Interest; 
2014: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $218; 
2013: 
Budgetary Accounts: 0; 
Nonbudgetary Financing Accounts: $856. 

Subsidies, including Reestimates for Previously Disbursed Loans and 
Investments Outstanding[1]: 
2014: 
Budgetary Accounts: $90; 
Nonbudgetary Financing Accounts: $8,238; 
2013: 
Budgetary Accounts: $483; 
Nonbudgetary Financing Accounts: $13,218. 

Amount Available To Spend-Obligations Incurred Per SBR: 
2014: 
Budgetary Accounts: $295; 
Nonbudgetary Financing Accounts: $8,502; 
2013: 
Budgetary Accounts: $779; 
Nonbudgetary Financing Accounts: $14,100. 

To Whom Were The Obligations Made? 

Federal Agencies and Entities; 
2014: 
Budgetary Accounts: $114; 
Nonbudgetary Financing Accounts: $8,456; 
2013: 
Budgetary Accounts: $505; 
Nonbudgetary Financing Accounts: $14,074. 

Non-Federal Companies - Freddie Mac/Fannie Mae for Housing; 
2014: 
Budgetary Accounts: $129; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $215; 
Nonbudgetary Financing Accounts: 0. 

Non-Federal Companies - All Other; 
2014: 
Budgetary Accounts: $39; 
Nonbudgetary Financing Accounts: $45; 
2013: 
Budgetary Accounts: $41; 
Nonbudgetary Financing Accounts: $26. 

Non-Federal Individuals; 
2014: 
Budgetary Accounts: $13; 
Nonbudgetary Financing Accounts: 0; 
2013: 
Budgetary Accounts: $18; 
Nonbudgetary Financing Accounts: 0. 

Amount Available To Spend-Obligations Incurred Per SBR: 
2014: 
Budgetary Accounts: $295; 
Nonbudgetary Financing Accounts: $8,502;
2013: 
Budgetary Accounts: $779; 
Nonbudgetary Financing Accounts: $14,100. 

[1] Subsidies obligated in nonbudgetary accounts consist of negative 
subsidies and downward reestimates, which are reductions of subsidy 
cost, transferred from the financing accounts to the Treasury General 
Fund. These transactions occur in the same fiscal year as the 
obligations. 

[End of table] 

The Schedule of Spending presents an overview of obligations incurred 
subtotaled by purpose and again by type of entity to be paid. 
Obligations are legally binding agreements that usually result in 
outlays, immediately or in the future. The schedule presents more 
detail than the Statement of Budgetary Resources, although the data 
used to populate both is the same. 

The section "How Was the Amount Spent" presents obligations committed 
to in each fiscal year for services received, supplies purchased, 
subsidies and program loans or investments made, even if actual 
receipt of services or goods has not yet occurred or payments have not 
yet been made for particular obligations. While most obligations 
become contractual agreements for which services and goods are 
received in the same fiscal year as established, certain obligations 
or portions of obligations reported here may never be used. These 
unused amounts, when closed, are reported as "Recoveries of Prior-Year 
Unpaid Obligations" on the SBR. 

Section B - IPIA (as amended by IPERA): 

On July 22, 2010, President Obama signed into law the Improper 
Payments Elimination and Recovery Act (IPERA, Pub. L. 111-204). IPERA 
amends the Improper Payments Information Act (IPIA), generally repeals 
the Recovery Auditing Act, and significantly increases agency payment 
recapture efforts by expanding the types of payments to be reviewed 
and lowering the dollar threshold of annual payments that requires 
agencies to conduct payment recapture audit programs. Agencies 
continue to be required to review their programs and activities 
periodically to identify those susceptible to significant improper 
payments. OMB Circular No. A-123, Management's Responsibility for 
Internal Control, Appendix C, "Requirements for Effective Measurement 
and Remediation of Improper Payments" (A-123, Appendix C), amended 
April 14, 2011, defines "significant improper payments" as gross 
annual improper payments in a program exceeding both the threshold of 
1.5 percent and $10 million, or exceeding $100 million regardless of 
the improper payment percentage. A-123, Appendix C, also requires 
agencies to review all programs with annual payments of $1 million or 
more, if cost-effective. 

OFS managers are held accountable for developing and strengthening 
financial management controls to detect and prevent improper payments, 
and thereby better safeguard taxpayer dollars. OFS carried out its 
fiscal year 2014 IPERA review per Treasury-wide guidance and did not 
assess any programs or activities as susceptible to significant 
improper payments. However, management did identify a number of Making 
Home Affordable (MHA) investor cost share payments that were 
erroneously calculated due to data discrepancies between servicer 
files and the MHA system of record. Data that servicers upload to the 
MHA system of record is used to calculate these incentive payments. 
The overall impact of the data errors on incentive payments was 
immaterial. 

In fiscal year 2014, OFS concluded that a payment recapture audit was 
not cost-effective as all programs were deemed to have a low risk of 
significant improper payments. For many programs, OFS already has 
procedures in place to review payments for completeness and accuracy 
prior to and after disbursement. For the MHA program, nearly 2,000 
business rules have been integrated into the MHA system of record to 
ensure the eligibility, accuracy and appropriateness of incentive 
payments. Management leverages OFS's extensive internal control 
testing results or other compliance activities to corroborate risk 
assessment results, as well as the Bureau of the Fiscal Service's 
testing results over administrative disbursements. 

The Improper Payments Elimination and Recovery Improvement Act of 2012 
(IPERIA, Pub. L. 112-248) was signed into law by the President on 
January 10, 2013, and also amends IPIA. It is important to note that 
Section 5 of IPERIA, regarding the "Do Not Pay" Initiative, is treated 
separately from Circular No. A-136 reporting requirements. 

The Bureau of the Fiscal Service partnered with the Saint Louis and 
Kansas City Federal Reserve Banks to operate the "Do Not Pay Business 
Center" as part of a government wide "Do Not Pay" solution. During 
fiscal year 2013, OFS implemented the "Do Not Pay" solution to monitor 
administrative disbursements to ensure, to the extent permitted by 
law, a thorough review of available databases with relevant 
information on eligibility occurs before the release of any Federal 
funds. To date, the "Do Not Pay" Business Center has not identified 
any potential OFS improper payments. 

[End of section] 

Part 4: Appendices: 

Appendix A: TARP Glossary: 

Asset-Backed Security (ABS): A financial instrument representing an 
interest in a pool of other assets, typically consumer loans. Most ABS 
are backed by credit card receivables, auto loans, student loans, or 
other loan and lease obligations. 

Asset Guarantee Program (AGP): A TARP program under which OFS, 
together with the Federal Reserve and the FDIC, agreed to share losses 
on certain pools of assets held by systemically significant financial 
institutions that faced a high risk of losing market confidence due in 
large part to a portfolio of distressed or illiquid assets. 

Automotive Industry Financing Program (AIFP): A TARP program under 
which OFS provided loans or equity investments in order to avoid a 
disorderly bankruptcy of one or more auto companies that would have 
posed a systemic risk to the country's financial system. 

Capital Purchase Program (CPP): A TARP program pursuant to which OFS 
invested in preferred equity securities and other securities issued by 
financial institutions. 

Commercial Mortgage-Backed Securities (CMBS): A financial instrument 
representing an interest in a commercial real estate mortgage or a 
group of commercial real estate mortgages. 

Community Development Capital Initiative (CDCI): A TARP program that 
provides low-cost capital to Community Development Financial 
Institutions to encourage lending to small businesses and help 
facilitate the flow of credit to individuals in underserved 
communities. 

Community Development Financial Institution (CDFI): A financial 
institution that focuses on providing financial services to low-and 
moderate-income, minority and other underserved communities, and is 
certified by the CDFI Fund, an office within OFS that promotes 
economic revitalization and community development. 

Debtor-In-Possession (DIP): A debtor-in-possession in U. S. bankruptcy 
law has filed a bankruptcy petition but still remains in possession of 
its property. DIP financing usually has priority over existing debt, 
equity and other claims. 

Emergency Economic Stabilization Act (EESA): The law that created the 
Troubled Asset Relief Program (TARP). 

Government-Sponsored Enterprises (GSEs): Private corporations created 
by the U.S. Government. Fannie Mae and Freddie Mac are GSEs. 

Home Affordable Modification Program (HAMP): A TARP program OFS 
established to help responsible but struggling homeowners reduce their 
mortgage payments to affordable levels and avoid foreclosure. 

Legacy Securities: CMBS and non-agency RMBS issued prior to 2009 that 
were originally rated AAA or an equivalent rating by two or more 
nationally recognized statistical rating organizations without ratings 
enhancement and that are secured directly by actual mortgage loans, 
leases or other assets and not other securities. 

Making Home Affordable (MHA): A comprehensive plan to stabilize the 
U.S. housing market and help responsible, but struggling, homeowners 
reduce their monthly mortgage payments to more affordable levels and 
avoid foreclosure. HAMP is part of MHA. 

Mortgage-Backed Securities (MBS): A type of ABS representing an 
interest in a pool of similar mortgages bundled together by a 
financial institution. 

Mandatory Convertible Preferred (MCP): Preferred stock that includes 
an option for the holder to convert the preferred shares into a fixed 
number of common shares, usually any time after a predetermined date. 

Non-Agency Residential Mortgage-Backed Securities: RMBS that are not 
guaranteed or issued by Freddie Mac, Fannie Mae, any other GSE, Ginnie 
Mae, or a U.S. federal government agency. 

Preferred Stock: Equity ownership that usually pays a fixed dividend 
and gives the holder a claim on corporate earnings superior to common 
stock owners. Preferred stock also has priority in the distribution of 
assets in the case of liquidation of a bankrupt company. 

Public-Private Investment Fund (PPIF): An investment fund established 
to purchase Legacy Securities from financial institutions under PPIP. 

Public-Private Investment Program (PPIP): A TARP program designed to 
support the secondary market in mortgage-backed securities. The 
program is designed to increase the flow of credit throughout the 
economy by partnering with private investors to purchase Legacy 
Securities from financial institutions. 

Qualifying Financial Institution (QFI): Private and public U.S.- 
controlled banks, savings associations, bank holding companies, 
certain savings and loan holding companies, and mutual organizations. 

Residential Mortgage-Backed Securities (RMBS): A financial instrument 
representing an interest in a group of residential real estate 
mortgages. 

SBA: U.S. Small Business Administration. 

SBA 7(a) Securities Purchase Program: A TARP program under which OFS 
purchased securities backed by the guaranteed portions of the SBA 7(a) 
loans. 

Servicer: An administrative third party that collects mortgage 
payments, handles tax and insurance escrows, and may even bring 
foreclosure proceedings on past due mortgages for institutional loan 
owners or originators. The loan servicer also generates reports for 
borrowers and mortgage owners on the collections. 

Targeted Investment Program (TIP): A TARP program created to stabilize 
the financial system by making investments in institutions that are 
critical to the functioning of the financial system. 

Term Asset-Backed Securities Loan Facility (TALF): A program under 
which the Federal Reserve Bank of New York made term non-recourse 
loans to buyers of AAA-rated Asset-Backed Securities in order to 
stimulate consumer and business lending. 

Troubled Asset Relief Program (TARP): The Troubled Asset Relief 
Program, which was established under EESA to stabilize the financial 
system and help prevent a systemic collapse. 

Trust Preferred Security (TruPS): A security that has both equity and 
debt characteristics, created by establishing a trust and issuing debt 
to it. TruPS are treated as capital, not debt, for regulatory purposes. 

Warrant: A financial instrument that represents the right, but not the 
obligation, to purchase a certain number of shares of common stock of 
a company at a fixed price. 

[End of section] 

Appendix B: Abbreviations and Acronyms: 

ABS: Asset-Backed Securities: 

AGP: Asset Guarantee Program: 

AIFP: Automotive Industry Financing Program: 

AIG: American International Group, Inc. 

CAP: Capital Assistance Program: 

CDFI: Community Development Financial Institution: 

CMBS: Commercial Mortgage-Backed Securities: 

CPP: Capital Purchase Program: 

CDCI: Community Development Capital Initiative: 

DIP: Debtor-In-Possession: 

EESA: Emergency Economic Stabilization Act of2008: 

FCRA: Federal Credit Reform Act of 1990: 

FHA: Federal Housing Administration: 

FRBNY: Federal Reserve Bank of New York: 

GAO: Government Accountability Office: 

GM: General Motors: 

GMAC: General Motors Acceptance Corporation: 

GSE: Government-Sponsored Enterprise: 

HAFA: Home Affordable Foreclosure Alternatives: 

HFA: Housing Finance Agency: 

HHF: Hardest Hit Fund: 

HAMP: Home Affordable Modification Program: 

MBS: Mortgage-Backed Security: 

MCP: Mandatory Convertible Preferred: 

MHA: Making Home Affordable Program: 

OFS: Office of Financial Stability: 

OMB: Office of Management and Budget: 

PPIF: Public-Private Investment Fund: 

PPIP: Public-Private Investment Program: 

QFI: Qualifying Financial Institution: 

RMBS: Residential Mortgage-Backed Securities: 

SBR: Statement of Budgetary Resources: 

SBLF: Small Business Lending Fund: 

SCAP: Supervisory Capital Assessment Program: 

SIGTARP: Special Inspector General for the Troubled Asset Relief 
Program: 

SPV: Special Purpose Vehicle: 

TAIFF: Troubled Assets Insurance Financing Fund: 

TALF: Term Asset-Backed Securities Loan Facility: 

TARP: Troubled Asset Relief Program: 

TIP: Targeted Investment Program: 

TruPS: Trust Preferred Securities: 

USDA: U. S. Department of Agriculture: 

[End of section] 

Office of Financial Stability: 

Contact information: 

Department of the Treasury: 
Office of Financial Stability: 
1500 Pennsylvania Avenue NW: 
Washington, DC 20220: 

Telephone: 202-622-2000: 
Treasury Press Office: 202-622-2960: 

Websites: 

[hyperlink, http://www.FinancialStability.gov] 

[hyperlink, http://www.MAKINGHOMEAFFORDABLE.gov] 

Additional References: 

Monthly Reports to Congress: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Monthly-Report-to-Congress.aspx] 

The Financial Crisis Response in Charts – April 2012: 

[hyperlink, http://www.treasury.gov/resource-center/data-chart-
center/Documents/20120413_FinancialCrisisResponse.pdf] 

Anniversary Reports: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/TARP-Annual-Retrospectives.aspx] 

Agency Financial Reports, including 2014, 2013, 2012, 2011, 2010 and 
2009: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Annual-Agency-Financial-Reports.aspx] 

Housing Scorecard: 

[hyperlink, 
http://portal.hud.gov/hudportal/HUD?src=/initiatives/Housing_Scorecard] 

Making Home Affordable Monthly Reports: 

[hyperlink, http://www.treasury.gov/initiatives/financial-
stability/reports/Pages/Making-Home-Affordable-Program-Performance-
Report.aspx] 

[End of section] 

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