N-Q 1 t70440_nq.htm FORM N-Q t70440_nq.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file Number 811-02898
 
Value Line U.S. Government Money Market  Fund,Inc.
(Exact name of registrant as specified in charter)

220 East 42nd Street, New York, NY 10017

Mitchell E. Appel
(Name and address of agent for service)

Registrant’s telephone number, including area code:  212-907-1500

Date of fiscal year end: December 31

Date of reporting period: March 31,2011
 
 
 
 
 
Item 1: Schedule of Investments
A copy of Schedule of Investments for the period ended 03/31/11 is included with this Form.
 
Value Line U.S. Government Money Market Fund, Inc.
 
Schedule of Investments (unaudited)
March 31, 2011
                               
 
Principal
Amount
          Yield†    
Maturity
Date
    
Value
  
   
U.S. GOVERNMENT AGENCY AND GOVERNMENT SPONSORED OBLIGATIONS  (68.7%)
  
                               
$
4,000,000
  
American Express Bank FSB, FDIC Guaranteed (1)
    
1.24%
    
12/9/11
      
$
4,020,222
  
 
2,000,000
  
Federal Home Loan Bank Discount Notes
    
0.16
    
5/4/11
        
1,999,707
  
 
5,000,000
  
Federal Home Loan Bank Discount Notes
    
0.13
    
5/11/11
        
4,999,278
  
 
100,000
  
Federal Home Loan Bank Discount Notes
    
0.14
    
5/13/11
        
99,984
  
 
620,000
  
Federal Home Loan Bank Discount Notes
    
0.12
    
5/16/11
        
619,907
  
 
3,000,000
  
Federal Home Loan Bank Discount Notes
    
0.11
    
6/3/11
        
2,999,449
  
 
3,000,000
  
Federal Home Loan Bank Discount Notes
    
0.11
    
6/15/11
        
2,999,312
  
 
3,000,000
  
Federal Home Loan Bank Discount Notes
    
0.15
    
6/23/11
        
2,998,962
  
 
415,000
  
Federal Home Loan Bank Discount Notes
    
0.13
    
7/11/11
        
414,849
  
 
2,000,000
  
Federal Home Loan Bank Discount Notes
    
0.12
    
7/14/11
        
1,999,307
  
 
1,500,000
  
Federal Home Loan Bank Discount Notes
    
0.13
    
7/29/11
        
1,499,355
  
 
953,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.11
    
4/19/11
        
952,947
  
 
1,200,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.17
    
4/19/11
        
1,199,898
  
 
2,000,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.14
    
5/16/11
        
1,999,650
  
 
5,000,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.19
    
5/23/11
        
4,998,628
  
 
478,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.16
    
5/25/11
        
477,885
  
 
3,000,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.18
    
6/27/11
        
2,998,695
  
 
500,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.17
    
7/15/11
        
499,759
  
 
1,000,000
  
Federal Home Loan Mortgage Corporation Discount Notes
    
0.16
    
9/1/11
        
999,341
  
 
2,000,000
  
Federal National Mortgage Association Discount Notes
    
0.17
    
4/20/11
        
1,999,820
  
 
3,000,000
  
Federal National Mortgage Association Discount Notes
    
0.13
    
4/25/11
        
2,999,740
  
 
3,000,000
  
Federal National Mortgage Association Discount Notes
    
0.17
    
4/25/11
        
2,999,660
  
 
400,000
  
Federal National Mortgage Association Discount Notes
    
0.17
    
4/26/11
        
399,953
  
 
706,000
  
Federal National Mortgage Association Discount Notes
    
0.16
    
5/16/11
        
705,859
  
 
3,000,000
  
Federal National Mortgage Association Discount Notes
    
0.07
    
5/18/11
        
2,999,726
  
 
1,000,000
  
Federal National Mortgage Association Discount Notes
    
0.08
    
5/25/11
        
999,880
  
 
283,000
  
Federal National Mortgage Association Discount Notes
    
0.10
    
5/25/11
        
282,957
  
 
1,500,000
  
Federal National Mortgage Association Discount Notes
    
0.12
    
6/1/11
        
1,499,695
  
 
899,000
  
Federal National Mortgage Association Discount Notes
    
0.15
    
6/2/11
        
898,768
  
 
1,000,000
  
Federal National Mortgage Association Discount Notes
    
0.20
    
7/11/11
        
999,439
  
 
2,000,000
  
Federal National Mortgage Association Discount Notes
    
0.19
    
7/13/11
        
1,998,913
  
 
5,000,000
  
Federal National Mortgage Association Discount Notes
    
0.13
    
7/18/11
        
4,998,050
  
 
525,000
  
Federal National Mortgage Association Discount Notes
    
0.14
    
8/8/11
        
524,737
  
63,079,000
  
TOTAL U.S. GOVERNMENT AGENCY AND GOVERNMENT SPONSORED OBLIGATIONS
(Amortized Cost $63,084,332)
      
63,084,332
  
   
COMMERCIAL PAPER  (10.8%)
  
                               
 
1,000,000
  
Abbot Laboratories
    
0.17
    
5/31/11
        
999,717
  
 
451,000
  
Air Products & Chemicals, Inc.
    
0.18
    
4/7/11
        
450,987
  
 
1,000,000
  
Campbell Soup Co.
    
0.19
    
4/18/11
        
999,910
  
 
450,000
  
Cisco Systems, Inc.
    
0.19
    
4/14/11
        
449,969
  
 
1,000,000
  
Google, Inc.
    
0.16
    
5/13/11
        
999,813
  
 
1,000,000
  
Hewlett-Packard Co.
    
0.15
    
4/7/11
        
999,975
  
 
570,000
  
Hewlett-Packard Co.
    
0.16
    
4/15/11
        
569,965
  
 
1,000,000
  
Johnson & Johnson
    
0.22
    
4/6/11
        
999,969
  
 
2,000,000
  
Nestle Capital Corp.
    
0.20
    
4/26/11
        
1,999,722
  
 
1,000,000
  
PepsiCo, Inc.
    
0.16
    
4/11/11
        
999,956
  
 
400,000
  
Proctor & Gamble Co. (The)
    
0.20
    
4/4/11
        
399,993
  
9,871,000
  
TOTAL COMMERCIAL PAPER
(Amortized Cost $9,869,976)
        
9,869,976
  
                 
   
TOTAL INVESTMENT SECURITIES  (79.5%)
(Cost $72,954,308)
        
72,954,308
  
 
 
1
 
 
Value Line U.S. Government Money Market Fund, Inc.
 
Schedule of Investments (unaudited)
 
                               
 
Principal
Amount
         Yield†    
Maturity
Date
     Value  
   
REPURCHASE AGREEMENT) (20.6%)  
                   
$
18,900,000
  
With Morgan Stanley, 0.06%, dated 03/31/11, due 04/01/11, delivery value $18,900,032 (collateralized by $19,050,000 U.S. Treasury Notes 1.3750% due 03/15/13, with a value of $19,269,748)
      
$
18,900,000
  
18,900,000
  
TOTAL REPURCHASE AGREEMENTS
(Amortized Cost $18,900,000)
        
18,900,000
  
 
EXCESS OF LIABILITIES OVER CASH AND OTHER ASSETS  (-0.1%)
  
(80,987
 ) 
 
NET ASSETS  (100.0%)
      
$
91,773,321
  
 
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE ($91,773,321 ÷ 91,800,784 shares outstanding)
      
$
1.00
  
 
†
  
The rate shown on discount securities represents the yield or rate at the end of the reporting period.
(1)
  
Rate at March 31, 2011. Floating rate changes monthly.
 
 
2
 
 
The Fund follows fair valuation accounting standards (FASB ASC 820-10) which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period.  These inputs are summarized in the three broad levels listed below:
 
●
Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;
●
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;
●
Level 3 – Inputs that are unobservable.
 
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The following table summarizes the inputs used to value the Fund’s net assets as of March 31, 2011:
 
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Investments in Securities:
                        
Assets
                        
U.S. Government Agency and Government Sponsored Obligations
   $ 0     $ 63,084,332     $ 0     $ 63,084,332  
Commercial Paper
     0       9,869,976       0       9,869,976  
Repurchase Agreements
     0       18,900,000       0       18,900,000  
                                 
     Total Investments in Securities
   $ 0     $ 91,854,308     $ 0     $ 91,854,308  
                                 
 
The Fund follows the updated provisions surrounding fair value measurements and disclosures on transfers in and out of all levels of the fair value hierarchy on a gross basis and the reasons for the transfers as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy.
 
For the period ended March 31, 2011, there was no significant transfer activity between Level 1 and Level 2.
 
For the period ended March 31, 2011, there were no Level 3 investments. The Schedule of Investments includes a breakdown of the Schedule’s investments by category.
 
 
 
 
 
Item 2. Controls and Procedures
(a) The registrant’s principal executive officer and principal financial officer have concluded that the   registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c) based on their evaluation of these controls and procedures as of the date within 90 days of filing date of this report, are approximately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively.
     
(b) The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses.
 
Item 3.     Exhibits:
(a)
Certifications of principal executive officer and principal financial officer of the registrant.
 
 
 
 
 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
By:   /s/ Mitchell E. Appel  
  Mitchell E. Appel, President
     
Date:  May 20, 2011  
     
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed, below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
     
By:   /s/ Mitchell E. Appel  
  Mitchell E. Appel, President, Principal Executive Officer
     
By: /s/ Emily D. Washington  
  Emily D. Washington, Treasurer, Principal Financial Officer
     
Date:  May 20, 2011