Board of Governors of the Federal Reserve System

Data Dictionary

Item Number J909

Call confidentiality applies to FFIEC 031/041.

Data Description:

This account includes income from all sources for the year to date. The income is derived from assets as described below. Significant income items should be accrued as described in paragraph 4.92 when earned. Other income is ordinarily credited when received.

1. Loans - Earnings on loans to depository institutions, and earnings from any other loans which, may include loans to Federal Intermediate Credit Banks, other Federal Reserve Banks, and individuals, partnerships, or corporations.
2. Acceptances - Discount earned on acceptances, including earnings on acceptances held under repurchase agreement.
3. U.S. Treasury, Federal Agency and GSE securities - System account- Interest earned, plus discount amortized and less premium accreted, on U.S. Treasury, Federal Agency and GSE securities held in SOMA. Discount earned on Treasury bills held in SOMA.
4. Other U.S. Treasury, Federal Agency and GSE securities - Earnings on U.S. Treasury, Federal Agency and GSE securities held in the Bank's own portfolio. This line item also includes interest income generated from tri-party repurchase agreements.
5. Other securities - Interest earnings on bills, notes, revenue bonds and warrants issued by any state, county, district, political subdivision or municipality in the continental United States, including irrigation, drainage, and reclamation districts, plus discounts amortized and less premiums accreted. Also includes interest earnings on Federal agency and government sponsored enterprise mortgage-backed securities.
6. Foreign currencies - Participation in interest received on deposit balances with foreign banks, discount earned on acceptances payable in foreign currencies, and other earnings from assets denominated in foreign currencies.
7. Income from services - Amounts collected under Section 11A of the Federal Reserve Act for services to depository institutions.
8. Deficiencies in required balances - Charges assessed depository institutions on the amount of their deficiencies in required balances.
9. Daylight and Overnight Overdraft charges - Charges assessed depository institutions for intra-day (daylight) and overnight overdrafts in accounts maintained with the Reserve Bank.
10. Funds Settlement Fees - Earnings associated with the funds settlement component of the book-entry transfer of U.S. Treasury securities.
11. Examination Fees - Charges assessed foreign banks, Branches, and representative offices for costs associated with examinations.
12. All other - Other earnings that do not come within the above definitions should be included in this classification.

Individual ledger accounts are maintained for control purposes and to facilitate verification of income according to source. In the case of income from services, the ledger should be supported by subsidiary accounts in the same detail as the schedule of priced services. These subsidiary accounts must be posted currently and, together with any accrual accounts that the Bank elects to maintain separately, added to the total in the ledger at the close of business each day.

A subsidiary account may also be established for each priced service to record variances between accrued service income and the amount actually charged depository institutions due to absorption of differences. The use of this account should facilitate reconcilement of the general ledger with internal cost/revenue reports.

Income from services is recorded as current income and should not be netted with the expenses incurred to provide the services or compensation paid to other Reserve Banks for costs that they incur in providing these services.7 Costs incurred in providing services, including compensation paid, are recorded as operating expenses. This treatment of income from services (gross treatment) is deemed appropriate based on criteria in FASB ASC Topic 605-45; formerly EITF 99-19, Reporting Revenue Gross as a Principal versus Net as an Agent, because each Bank that records such income a) is the primary obligor responsible for providing service, b) incurs costs related to providing the service, c) maintains significant input in setting specifications of services to provide, and d) is responsible for credit risk related to customers.