Guaranteed Student Loan Program, Commissioner of Higher Education Financial Audit for the Fiscal Year Ended .. 2003

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All funds are invested in certificates of deposit of varying maturity dates with the Montana Family Education Savings Program.
2. SHORT TERM INVESTMENTS Short Term Investments are units purchased in the State of Montana's Short Term Investment Pool (STIP) and are reflected at cost, which equals market. At June 30, 2003, MGSLP owned 6,345,21 2 units valued at $1 per unit for a total of $6,345,21 2. During fiscal year 2003, MGSLP had STIP investment earnings of $102,050. STIP securities include B
...anker's Acceptances, Commercial Paper, Corporate Obligations, Montana Certificates of Deposit, Government Securities, and Repurchase Agreements. At June 30, 2003, most securities, classified as Risk Page A-5 Category 1 , were held by the state or its agent in the state's name. The remaining portions not classified were loaned under a security lending agreement with the state's agent.
Asset-backed securities have less credit risk than securities not backed by pledged assets and market risk for these securities is the same as market risk for similar non asset-backed securities.


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