PETITION FOR AUDIT OF GOVERNMENT FUNDS

EXCLUSIVELY MANAGED BY FIDUCIARY AGENT (FRBNY)

WHICH HAVE NEVER BEEN AUDITED

We the People ask the Administration to confirm that the General Accounting Office (GAO) has the
responsibility and authority to audit the handling of any funds belonging to the United States
government, and

Whereas the Federal Reserve Bank of New York (FRBNY), as fiduciary agent for the government of
the United States, is tasked with the exclusive duty to disburse all government funds received from the
auctions of Treasury securities and any related operation pursuant to 31 CFR 375.3, and

Whereas the auctioned securities have been identified by TreasuryDirect as “maturing” to replace
redeemed (maturing) or called securities and an additional identification of “new cash” for securities
created by Deficit Spending (Ref.
https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm) and

Whereas the funds for maturing/rollover securities are expensed to the Primary Dealers, in large part,
for the task of collecting maturing securities but there are no securities redeemed with the funds from
deficit spending securities, and

Whereas the funds from the auctions of deficit spending Treasury securities (appx $1 trillion annually)
are not evidenced as being transferred to the government by any official document, and if such transfer
occurred it would have to purchase an equivalent amount of securities as was issued which would result
in no increase in the National Debt and would also eliminate any increase in money in circulation
(inflation) which obviously does not occur, and

Whereas such funds are not documented as being transferred to any destination, and the accounts have
never been audited by an independent accounting firm or the GAO,

THEREFORE, it is respectfully Petitioned that the President, or any Congressional Chairperson,

instruct the GAO to conduct an audit of the described accounts at the earliest reasonable time to
determine the destination of the identified funds.

NOTE: If the “appropriate policy experts” relied upon for further handling of this Petition include the
Secretary of the Treasury, or the Treasury Department, this Petition is an exercise in futility.

DESCRIPTION:
This is NOT a Petition for an audit of the Federal Reserve. It is a request for an audit of government
funds (from the auctions of Treasury securities) that are exclusively managed by a fiduciary agency of the
government. Ref. 31 CFR 375.3. There are no records relating to dispersal of these funds.
https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm identifies the two
purposes of Treasury security auctions: 1) to roll-over maturing securities (MS), and 2) to create
new government purchasing power (New Cash) by Deficit Spending (DS). Funds for MS are paid
to Primary Dealers (in large part) for the securities they have collected. There are no market
securities collected for DS. If the funds from the sale of DS went to the government, they would
have to buy back the equivalent of the securities sold. That would result in no increase in the
National Debt. It would also eliminate any increase in the amount of value in circulation; i.e.,
inflation. Obviously, this does not occur. Where do the funds go ?