Department of Education

SALARIES AND EXPENSES OVERVIEW

Fiscal Year 2015 Budget Request

CONTENTS

Page

Introduction.............................................................................................................................Y-1

FY 2015 Budget Request........................................................................................................Y-2

Participation in Governmentwide E-Government Initiatives .....................................................Y-6

Budget Authority by Account.................................................................................................Y-10

Budget Authority by Object Classification..............................................................................Y-11

Full-Time Equivalent Employment by Account ......................................................................Y-12

Full-time Equivalent Employment by office............................................................................Y-13

Detail of Full-time Equivalent Employment............................................................................Y-14

Organization Chart................................................................................................................Y-15

Locations of Major Administrative Contractors ......................................................................Y-16

Report on the Budget Formulation and Execution Line of Business ......................................Y-17
SALARIES AND EXPENSES OVERVIEW

Y-1

INTRODUCTION

This overview summarizes the administrative costs and staffing for all Department accounts. 

Departmental administrative costs and full-time equivalent (FTE) employment are supported in 

2015 from funding in the following accounts: Program Administration (PA), Office for Civil 

Rights (OCR), Office of Inspector General (OIG), College Housing and Academic Facilities 

Loans Program (CHAFL), Historically Black College and University Capital Financing Program 

(HBCUCF), Institute of Education Sciences (IES), and Student Aid Administration (SAA). 

Greater detail on the funds supporting administrative costs and staffing is provided separately in 

each account’s justification materials.

Key programs administered by the Department include Title I of the Elementary and Secondary 

Education Act (ESEA), which under the President’s 2015 request would deliver $14.4 billion to 

help 23 million students in high poverty schools make progress toward State academic 

standards; Individuals with Disabilities Education Act Part B Grants to States, which would 

provide $11.6 billion to help States and school districts meet the special education needs of 

6.6 million students with disabilities; Federal Pell Grants, which would make available nearly 

$33.9 billion in need-based grant assistance to 8.9 million students enrolled in postsecondary 

institutions; and the postsecondary student loan programs, which would help provide roughly 

$129 billion in new and consolidated Direct Loans to help students and families pay for college.

The Department must fund the operational activities necessary for the everyday work of the 

Department, including expenses for:

 Facilities management, including rent for office space and guard services,

 Phone and computer network services,

 Operation and maintenance of the Department’s Web sites (e.g., www.ed.gov,

http://studentaid.ed.gov/redirects/college-gov), and

 Grants payment processing.

The FY 2015 budget request also places emphasis on improving departmental management of 

programs and resources. Specific management priorities include:

 Financial management, including projects designed to ensure accountability for 

departmental assets, improve grants management, and provide better financial data to 

Department managers,

 Improving staff performance, including leadership development for Department 

employees,

 Improving recruitment, retention, and development of Department staff,

 Improving the acquisition process through development of the Department’s acquisition 

workforce and reducing departmental reliance on high-risk contract vehicles,
SALARIES AND EXPENSES OVERVIEW

Y-2

 Analyzing office space needs in order to identify opportunities to reduce the 

Department’s footprint,

 Information technology, including improving the capability to collect educational data, 

and a continued focus on data security,

 Student aid administration, with a focus on administering Pell Grants and student loans, 

and

 Program performance improvement, to inform decisionmakers and focus limited 

resources on programs that work, and to reform or eliminate programs that do not.

In addition to these management priorities, the Department is working hard to maintain 

administrative efficiencies as directed in Executive Order 13589 and OMB Memorandum 

M-12-12. The FY 2015 budget request continues to reduce spending in the areas of travel, 

printing, supplies, and advisory assistance through a mix of technological efficiencies and 

strategic acquisition efforts. The table below provides percent changes for these areas from 

FY 2010.

Reductions in Spending by Category:

FY 2010 to FY 2015

(dollars in millions)

Category

2010

Obligations

2015 

Request

Percent Change

from 2010

Travel $11.2 $9.1 -19%

Printing 5.1 2.7 -46%

Supplies 1.7 1.0 -52%

Advisory and Assistance 18.6 11.8 -37%

Total 36.6 24.5 -33%

FY 2015 Budget Request

FY 2015 BUDGET REQUEST

The 2015 total Salaries and Expenses discretionary budget request is $2.059 billion, 9 percent

above the 2014 level. A summary of increases by funding account is provided on page Y-10.

The requested increase is focused mainly on several key areas: built-in pay and benefits 

increases for a proposed pay raise of 1 percent and increased FERS contribution rates starting 

October 2014; loan servicing, mainly to cover costs formerly covered by mandatory budget 

authority; student aid delivery systems; Education’s Central Automated Processing System 

(EDCAPS); Civil Rights Data Collection; and building modernization costs associated with 

Department occupied buildings. 
SALARIES AND EXPENSES OVERVIEW

Y-3

The chart below provides detail on the total Salaries and Expenses request of $2.059 billion by 

category, while the following chart shows the $304.5 million cost increases by category.

STAFFING AND COSTS SUMMARY

Staffing

The 2015 request includes funding for 4,093 FTE, an increase of 9 FTE from the 2014 level of 

4,084 FTE. Five FTE are requested in the Office of Elementary and Secondary Education 

(OESE) to address workload needs, especially as OESE transitions to a case management 

approach to grant administration, and its work related to the Now is the Time school safety 

Personnel

29%

Other Non-Personnel

3%

Overhead (Rent & 

Mail) 4%

Non-SAA Contracts

5%

Student Aid 

Administration 

Contracts

59%

FY 2015 Salaries & Expenses Costs by Category

Contract costs account for most of the Salaries and Expenses budget.

Built-In Pay & 

Benefits

2%

EDCAPS

5%

Other

3%

Student Aid 

Administration 

Non-Servicing 

Contracts

2%

Student Aid 

Administration 

Servicing

88%

FY 2015 Budget Increases by Category
SALARIES AND EXPENSES OVERVIEW

Y-4

proposal increase. An additional 3 FTE are requested in Office of Innovation and Improvement 

to establish an Office of Science, Technology, Engineering, and Mathematics (STEM) 

Education. This increased capacity will play a critical role in improving K-12 STEM instruction 

as part of the Administration’s consolidation and realignment of Federal STEM. Two additional 

FTE in the Institute of Education Sciences and 1 additional FTE in the Office of Planning, 

Evaluation and Policy Development are requested to strengthen the Department’s evaluation 

and data analytic capacities. FTE for the Office of Inspector General will be decreased by 2.

The Department’s programs and responsibilities have grown substantially over the past decade. 

There has been landmark legislation affecting the very core of the Department’s business. 

From elementary and secondary education reform to the transition to 100 percent direct lending, 

the past decade has seen a steady and significant growth in Department workload. There has 

also been a dramatic increase in mandates resulting from an increased security environment, as 

well as an enhanced focus on prudent financial and information technology management.

As shown in the following chart, staff are divided between Washington, D.C., headquarters, 

11 regional offices, and 13 field offices. Most regional and field office staff are in Federal 

Student Aid (FSA), the Office of Inspector General, and the Office for Civil Rights. The FSA 

regional office staff conduct reviews of lenders, institutions, and guaranty agencies participating 

in student financial aid programs, and perform debt collection activities on defaulted student 

loans. OIG staff conduct audits and investigations of Department programs and operations. 

OCR staff investigate civil rights complaints and conduct civil rights compliance reviews.

Boston

New York City

Philadelphia

Washington, D.C.

Regional Offices

Field Offices

Location of the Department of Education 

Regional and Field Offices

Seattle

San

Francisco Denver Kansas

City

Chicago

Atlanta

Dallas

Cleveland Sacramento

Long Beach

Puerto Rico Pembroke 

Pines

Pittsburgh

St. Paul

Austin

Phoenix

Nashville

Ann Arbor
SALARIES AND EXPENSES OVERVIEW

Y-5

Personnel and Non-Personnel Costs Summary

The budget request includes $588.0 billion for personnel compensation and benefits. The 

request is an increase of $8.4 million from the 2014 level. Non-personnel costs cover such 

items as travel, rent, mail, telephones, utilities, printing, information technology (IT), contractual 

services, equipment, supplies, and other departmental services. The total budget for nonpersonnel activities in 2015 is $1.5 billion, an increase of $296.1 million from the 2014 level. 

Ninety-five percent, or $281 million of the increase, is the result of the Student Aid 

Administration discretionary account absorbing servicing costs that were once funded by 

mandatory budget authority as well as anticipated increases in servicing costs due to increased

loan volume.

Centralized Overhead and Technology

Departmental overhead expenses cover centralized support and administrative services for all 

program and staff offices. The funds are administered by the Office of Management. These 

services include rent, building alterations and repairs, lease renewal, training, supplies, mail, 

and physical security for buildings and personnel. A total of $130.8 million is requested for 

these costs in 2015, an increase of $281,000 from the 2014 level. The increase is primarily for 

the renovation of Department occupied buildings to help reduce the Department’s overall 

footprint.

Information technology activities that comprise centralized IT services include Departmentwide 

computer operations, maintenance and improvements, local area network operations, initiatives 

designed to link Department business needs with the best available technology, and other 

commonly shared Department IT and office automation activities. The funds are administered 

by the Office of the Chief Information Officer. A total of $103.7 million is requested, an increase 

of $17.3 million from the 2014 level. The increase includes funding for continued operations of 

the EDCAPS system, IT security, and necessary upgrades for the implementation of the Oracle 

Release 12 version of Financial Management Systems Software (FMSS).

Improper Payments

The Department continues to focus on preventing, reducing, and recovering improper 

payments. 

One of the Department’s most promising initiatives is the improved use of data and text 

analytics for A-133 Single Audit reports to identify and address the root cause of common 

grantee challenges. The Department’s budget includes $1.3 million for this initiative, including 

funds for processing audits at the Federal Audit Clearinghouse, the Department’s Audit 

Accountability and Resolution Tracking System, and predictive analytics. This supports the 

President’s priority to invest in and leverage existing data sources to improve program 

outcomes. The goals of this effort are to improve grantee follow-up and audit resolution, 

support the Department’s efforts in Cooperative Audit Resolution and OMB’s grant reform 

initiative, and establish an infrastructure by which the Department can define common 

standards for all grant programs to measure performance and compliance.

The Department also relies on a variety of monitoring efforts to prevent and recapture improper 

payments. The Department has continuous controls monitoring software to help detect 

anomalies and potential issues in all Department and Federal Student Aid (FSA) payments 
SALARIES AND EXPENSES OVERVIEW

Y-6

made through the G5 payment system. This automated tool is used to examine payment 

records and identify problems such as duplicate payments, unduly large payments, 

overpayments, and potential fictitious vendors. The Department also conducts contract 

payment recapture audits and maintains a robust internal control program to identify, recover, 

and report, as appropriate, all grant, loan, and other administrative payment errors. These 

efforts support the Department’s strategic goal to improve its organizational capacity by 

increasing the efficient and effective use of resources.

Finally, risk assessments and estimates of improper payments continue to be performed in 

accordance with Executive Order 13520, Reducing Improper Payments; the Improper Payments 

Elimination and Recovery Act (IPERA); and the Improper Payments Elimination and Recovery 

Improvement Act (IPERIA). The Department will continue to refine the new methodologies 

launched in FY 2012 for risk susceptible programs (i.e., the Pell Grant Program, the Direct Loan 

Program, and the Federal Family Education Loan Program). In accordance with these 

methodologies, management will prioritize and assess risk for each type of payment within each 

program, identify and estimate improper payment amounts and rates, identify and categorize 

root causes for improper payments, and implement corrective actions to reduce improper 

payments. Existing corrective actions include activities to increase accuracy of Student Aid 

Application information through the use of the Free Application for Federal Student Aid 

(FAFSA), the IRS Data Retrieval Tool (DRT), and school verification.

PARTICIPATION IN GOVERNMENTWIDE E-GOVERNMENT INITIATIVES

The Department is actively participating in a number of e-Government initiatives, designed to

make it easy for citizens and businesses to interact with the Government, save taxpayer dollars, 

and streamline citizen-to-Government communications. The Department has budgeted a total 

of $3.4 million in 2014, and requests $3.1 million in 2015 for these initiatives. The request 

includes support for the following initiatives:

GovBenefits.gov – 2014: $314,000; 2015: $309,000; Student Aid Administration account.

GovBenefits.gov provides a single point of access for citizens to locate and determine potential 

eligibility for Government benefits and services, and how to apply for assistance.

E-Rulemaking  2014: $32,000; 2015: $68,000; Program Administration account.

E-Rulemaking allows citizens easy access and participation in the rulemaking process and 

increases the efficiency of internal Agency processes. The initiative has provided the public a 

single central site (http://www.gpo.gov/fdsys/) to access all of the Department’s regulatory 

actions since 1994. E-Rulemaking also provides a central location for the public to comment on 

regulatory actions, reducing the Department’s data storage costs.

Grants.gov – 2014 CR: $548,000; 2015: $544,000; Program Administration account. 

Grants.gov provides a single portal for all Federal grant customers to find, apply, and manage 

grants online. The Department was the first Agency to post an application on Grants.gov and 

an initial adopter of utilizing Grants.gov to receive applications. Since its inception in 2002, the 

Department has posted approximately 1,300 funding opportunities and nearly 693 application 

packages on Grants.gov. To date, over 55,000 application packages have been received from 
SALARIES AND EXPENSES OVERVIEW

Y-7

the grants community via Grants.gov. Based on FY 2012 data, the Department continued to 

rank in the top five Agencies for the number of applications received via Grants.gov since its 

inception.

Recruitment One-Stop – 2014: $25,000; 2015: $24,000 Program Administration account.

Recruitment One-Stop delivers state-of-the-art, online recruitment services to job seekers 

including intuitive job searching, online resume submission, applicant data mining, and online 

feedback on status and eligibility. Job applicants utilizing the Department’s automated EdHires 

system also have access to the USAJOBS system, allowing them to apply for positions across 

the Government.

Enterprise Human Resource Integration – 2014: $70,000; 2015: $76,000; Program 

Administration account.

Enterprise Human Resource Integration streamlines and automates the exchange of Federal 

employee human resources information between Federal Agencies. Participation in this 

initiative will provide the Department’s Human Resources managers and specialists with a 

centralized data warehouse that will assist in workforce planning and analysis capabilities that 

are not possible with a paper-based system. With these tools, trends for retirement, 

promotions, and reassignments can be accurately forecast and personnel transactions will be 

processed more quickly.

E-Travel – 2014: $569,000; 2015: $172,000; Program Administration account.

E-Travel provides a Governmentwide Web-based service that applies world-class travel 

management practices to consolidate Federal travel arrangements, minimize cost, and produce 

superior customer satisfaction. The Department has a designated E-Travel system, “E2,” 

hosted by Carlson Wagonlit Government Travel, which provides travelers with a Web-based, 

end-to-end travel management service with an integrated online booking engine and 

authorization and vouchering process.

Integrated Acquisition Environment – 2014: $76,000; 2015: $76,000; Program Administration 

account.

Integrated Acquisition Environment creates a secure business environment that will facilitate 

and support cost-effective acquisition of goods and services by Agencies. Through adoption of 

the tools and services developed as part of this initiative, the Department can make better 

informed and more efficient purchasing decisions.

Integrated Acquisition Environment – Grants and Loans – 2014: $1.290 million; 2015: 

$1.290 million; Student Aid Administration account.

This is an additional component of the Integrated Acquisition Environment initiative, which 

facilitates grant and loan-making activity.
SALARIES AND EXPENSES OVERVIEW

Y-8

Financial Management Line of Business – 2014: $231,000; 2015: $220,000; Program 

Administration account.

The Financial Management Line of Business initiative improves the quality and performance of 

financial management operations, thereby reducing the cost of Government to citizens through 

business performance improvements in financial management, including identifying exemplary 

financial management systems that can be used by multiple Agencies.

Human Resources Management Line of Business – 2014: $66,000; 2015: $66,000; Program 

Administration account.

The Human Resources Line of Business initiative reduces the cost of Government and 

improves services to citizens through business performance improvements in human resources 

management. The Department benefits by using “best-in-class” human resources systems that 

have been approved by the Line of Business.

Geospatial Line of Business – 2014: $25,000; 2015: $25,000; Program Administration account.

The Geospatial Line of Business initiative reduces the cost of Government and improves 

services to citizens through sharing of geospatial data. In conjunction with this Line of 

Business, the Department’s National Center for Education Statistics provides access to school 

district geographic and demographic data useful for describing and analyzing characteristics of 

school districts, children, and K-12 education.

Budget Formulation and Execution Line of Business – 2014: $105,000; 2015: $105,000; 

Program Administration account.

The Budget Formulation and Execution Line of Business initiative improves services through 

business performance improvements in budget formulation and execution processes. The 

Department serves as the Managing Partner for this Line of Business, and thus is a leader in 

finding exemplary budget systems and/or tools that can be utilized by multiple Agencies across 

the Government. Another benefit is the development of collaborative processes to improve and 

inform Federal budgeting. Training opportunities and access to MAX Community Web sites are 

valuable returns to each Agency’s contribution.

Disaster Assistance Improvement Plan – 2014: $36,000; 2015: $52,000; Student Aid 

Administration account.

The Disaster Assistance Improvement Plan will implement provisions of Executive Order 13411, 

Improving Assistance for Disaster Victims, which is designed to ensure that individuals who are 

victims of a terrorist attack or natural disaster have prompt and efficient access to Federal 

disaster assistance. 
SALARIES AND EXPENSES OVERVIEW

Y-9

Shared Service (Non E-gov)

Performance Management Line of Business – 2014: $53,000; 2015: $53,000; Program 

Administration account.

The Performance Management Line of Business initiative will improve access to and the value 

of information on Government goals, performance, organization, and programs to enhance 

public accountability while meeting the new GPRA Modernization Act reporting requirements 

efficiently.
SALARIES AND EXPENSES OVERVIEW

Department of Education

Budget Authority by Account

(dollars in thousands)

Y-10

Budget Click here for accessible version Authority by Account

2015 Change from

ACTIVITY 2013 2014 Request 2014 to 2015

Program Administration:

 Salaries and Expenses $430,605 $422,917 $440,487 $17,570

 Building Modernization 0 0 1,513 1,513

Office for Civil Rights 98,356 98,356 102,000 3,644

Office of Inspector General 57,791 57,791 59,181 1,390

 Subtotal, Departmental Management 586,752 579,064 603,181 24,117

Administrative costs from program accounts:

College Housing and Academic Facilities Loans 435 435 435 0

Historically Black College and University Capital Financing 334 334 334 0

Institute of Education Sciences:

 National Assessment Governing Board 8,235 8,235 7,705 (530)

 National Board for Education Sciences 275 273 275 2

Student Aid Administration

 Salaries and Expenses 642,057 663,251 675,224 11,973

 Servicing Activities 336,867 502,749 771,700 268,951

 Subtotal, program accounts 988,203 1,175,277 1,455,673 280,396

 Total, Salaries and Expenses 1,574,955 1,754,341 2,058,854 304,513

NOTE: Includes discretionary funds only.
SALARIES AND EXPENSES OVERVIEW

Y-11

Budget Authority by Object Classification

Click here for accessible version

Budget Authority by Object Classification

(dollars in thousands)

2015 Change from

Object Class 2013 2014 Request 2014 to 2015

11.10 Full-time permanent $426,756 $425,972 $429,401 $3,429

11.31 Full-time temporary 16,290 15,133 15,948 815

11.32 Part-time 2,706 1,841 1,853 12

11.33 Consultants 363 454 458 4

11.51 Overtime 465 437 437 0

11.52 Awards 4,515 4,804 4,520 (284)

11.80 Other Compensation 0 0 0 0

 Compensation subtotal 451,095 448,641 452,617 3,976

12.00 Benefits 128,442 130,601 135,216 4,615

13.01 Benefits for former personnel 180 355 180 (175)

21.00 Travel 8,027 9,126 9,108 (18)

22.00 Transportation of things 58 76 76 0

23.10 Rental Payments to GSA 74,007 74,345 73,677 (668)

23.31 Communications 670 542 536 (6)

23.32 Postage/fees 1,439 1,007 976 (31)

 Subtotal 23 76,116 75,894 75,189 (705)

24.00 Printing & Reproduction 3,058 3,208 2,746 (462)

25.10 Advisory and Assistance Svcs 7,774 11,632 11,769 137

25.21 Other Services 400,845 595,151 856,614 261,463

25.22 Training/Tuition/Contracts 4,930 5,290 5,269 (21)

25.23 Field Readers 0 10 10 0

25.30 Goods/Services from Gov't 46,732 42,611 48,255 5,644

25.40 Operations/Maint of Facilities 100 381 21 (360)

25.50 Research & Development 0 0 0 0

25.71 Operations/Maint of Equipment 1,757 1,334 1,230 (104)

25.72 IT Services/Contracts 442,915 426,141 455,414 29,273

 Subtotal 25 905,053 1,082,550 1,378,582 296,032

26.00 Supplies 797 988 834 (154)

31.01 IT Equipment/Software 1,030 1,154 1,449 295

31.03 Other Equipment 242 257 229 (28)

 Subtotal 31 1,272 1,411 1,678 267

32.00 Building Alterations 857 1,491 2,628 1,137

43.01 Interest and Dividends 0 0 0 0

Total 1,574,955 1,754,341 2,058,854 304,513

Total Pers. Comp. & Ben. 579,717 579,597 588,013 8,416

Total Non-Personnel 995,238 1,174,744 1,470,841 296,097

 NOTE: Includes discretionary funds only. 
SALARIES AND EXPENSES OVERVIEW

Department of Education

Full-time Equivalent Employment (Staff Years) by Account

Y-12

Full-Time Equivalent 

Click here for accessible version Employment by Account

2015 Change from

ACCOUNT 2013 2014 Request 2014 to 2015

Program Administration 1,942 1,934 1,945 11

Office for Civil Rights 565 558 558 0

Office of Inspector General 270 253 251 -2

 Subtotal, Departmental Management 2,777 2,745 2,754 9

FTE funded from program accounts:

College Housing and Academic Facilities Loans 3 3 3 0

Historically Black College and University Capital Financing 1 1 1 0

Institute of Education Sciences:

 National Assessment Governing Board 13 14 14 0

 National Board for Education Sciences 0 1 1 0

Student Aid Administration

 Discretionary authority 1,296 1,320 1,320 0

 Mandatory authority 0 0 0 0

 Subtotal, program accounts 1,313 1,339 1,339 0

 Subtotal, FTE 4,090 4,084 4,093 9

 Total, discretionary authority 4,090 4,084 4,093 9

 Total, mandatory authority 0 0 0 0

 Total, FTE 4,090 4,084 4,093 9
SALARIES AND EXPENSES OVERVIEW

Y-13

Full-time Equivalent Employment by office

Click here for accessible version

2015 Change from

OFFICE 2013 2014 Request 2014 to 2015

Advisory Committee on Student Financial Assistance 5 6 6 0

Career, Technical and Adult Education 80 81 81 0

Chief Financial Officer 175 172 172 0

Chief Information Officer 129 127 127 0

Civil Rights 565 558 558 0

Communications and Outreach 105 103 103 0

Deputy Secretary 63 65 65 0

Elementary and Secondary Education 234 230 235 5

English Language Acquisition, Language Enhancement, and

 Academic Achievement for Limited English Proficient Students 17 18 18 0

Federal Student Aid 1,205 1,229 1,229 0

General Counsel 106 105 105 0

Innovation and Improvement 90 90 93 3

Inspector General 270 253 251 -2

Institute of Education Sciences 170 181 183 2

Legislation and Congressional Affairs 18 18 18 0

Management 169 173 173 0

National Assessment Governing Board 13 14 14 0

National Board for Education Sciences 0 1 1 0

Planning, Evaluation, and Policy Development 115 104 105 1

Postsecondary Education 184 183 183 0

Secretary 94 92 92 0

Special Education and Rehabilitiative Services 255 248 248 0

Under Secretary 28 33 33 0

 Total, FTE 4,090 4,084 4,093 9

Department of Education

Full-time Equivalent Employment (Staff Years) by Office
SALARIES AND EXPENSES OVERVIEW

Y-14 Detail of Full-time Equi valent Employment

Department of Education

Detail of Full-Time Equivalent Employment

2013 2014 2015

Actual Estimate Request

Executive level I........................... 1 1 1

Executive level II.......................... 3 3 3

Executive level III......................... 1 1 1

Executive level IV........................ 4 10 10

Executive level V......................... 1 2 2

 Subtotal..................................... 10 17 17

 Total - EX Salary....................... $1,671,800 $2,775,050 $2,775,050

Senior Executive Service................ 80 96 96

 Subtotal - ES .............................. 1/ 80 96 96

 Total - ES Salaries........................ $13,462,047 $16,010,400 $16,010,400

AL................................................. 1 1 1

AD................................................ 156 155 155

ED/EI........................................... 7 6 7

GS/GM-15................................... 521 520 521

GS/GM-14..................................... 909 908 909

GS/GM-13..................................... 1,055 1,055 1,055

GS-12........................................... 762 758 760

GS-11........................................... 223 222 223

GS-10........................................... 1 1 1

GS-9............................................. 161 161 161

GS-8............................................. 40 38 37

GS-7............................................. 94 92 94

GS-6............................................. 13 12 12

GS-5............................................. 14 13 14

GS-4............................................. 21 20 20

GS-3............................................. 9 9 9

GS-2............................................. 3 3 3

GS-1............................................. 0 0 1

 Subtotal...................................... 3,990 3,974 3,983

Total full-time equivalent

 employment, end of year........... 4,080 4,087 4,096

Full-time equivalent (FTE)

 usage......................................... 4,090 4,084 4,093

Average ES salary....................... $168,276 $166,775 $166,775

Average GS/GM grade................. 12.2 12.2 12.2

Average GS/GM salary................ $108,571 $106,929 $107,757

1/ FY 2013 includes 11 FSA SES positions. FY 2014 & FY 2015 include 10 FSA SES positions.
SALARIES AND EXPENSES OVERVIEW

Y-15

Organization Chart
Locations of Major Administrative Contractors

Y-16

7 Denver

Department of Education

Locations of Major Administrative Contracts

and Current Contractors

2,10 Plano

12 San Antonio

3 McAllen

1,3,5,6,9,10,11,12 

Lawrence

5, 11 Coralville,

3 West Des Moines

3* Louisville

12 Monticello

3,12

Montgomery

 12

Utica

5,11,12 Arlington, VA

1 Financial Management System (FSA)

2 EDUCATE (OCIO)

3 Common Services for Borrowers (CSB),

4 OCR CRDC/EDFacts Survey (OCR)

5 National Student Loan Data System (FSA)

6 Integrated Partner Management (FSA)

 7 Payroll/Personnel Processing Center (OM)

 8 Education Department Central Automated

 Processing System (EDCAPS) (OCIO)

 9 Enterprise Information Technology Integration (EITI) (FSA)

10

11

Virtual Data Center (FSA)

12

Front End Business Integration (FSA)

Common Origination and Disbursement (FSA)

1,4,6,10,11,12 Washington, DC

2,10,11 Fairfax, VA 

5 Great Falls, VA

3,12

Columbus

9,11, Rockville, MD

8 Bethesda, MD

3* Germantown, MD

9 Kensington, MD

11,12

Phoenix

Title IV Additional Servicers (TIVAS), 

and New Not-For-Profits (NFP) (FSA)

12

Phenix City

3* Madison

3* Lincoln

3* 

Chesterfield

11 Las Cruces

12 Buffalo & North 

Tondawanda, NY

,

1,5,6,9,10,11,12 Herndon, VA

1,5,6,9,11,12 Alexandria, VA

10 Ashburn, VA

3* Newark, DE

12 Bozeman

5 Venice

3 Salt 

Lake 

City

3* Concord, NH

3 Knoxville

Chattanooga

12 Bloomfield, CT

12 

Cincinnati

12 Philadelphia

3* Harrisburg

 

3 Oklahoma

 City

3 West Monroe

3 Columbia

3 Winooski, VT

Kent

Note: An asterisk represents a headquarters location for loan servicing contracts. A full listing of locations can be found in the Student Aid 

Administration Congressional Justification.

3 Raleigh
SALARIES AND EXPENSES OVERVIEW

Y-17

Report on the Budget Formulation and Execution Line of Business as 

Required by Division D, Section 737(d) of the Consolidated Appropriations 

Act, 2008, P.L. 110-161

The U.S. Department of Education assumed the role as the first Managing Partner for the 

Budget Formulation and Execution Line of Business (BFELoB) in the fall of 2006. The focus of 

the BFELoB is to build a “budget of the future” by promoting information-sharing across 

Government Agency budget offices, as well as building a “community of practice.” Through this 

collaboration, the budget community has been identifying best practices for all aspects of 

budget formulation and execution. The BFELoB strives to find solutions linking budget 

formulation, execution, planning, performance, and financial management information.

Goals of the BFELoB include improvement and enhancements of:

 the efficiency and effectiveness of Agency and central processes for formulating and 

executing the Federal Budget;

 the integration and standardized exchange of budget formulation, execution, planning, 

performance measurement, and financial management information and activities across 

the Government;

 capabilities for analyzing budget formulation, execution, planning, performance, and 

financial information in support of decisionmaking;

 capabilities for aligning programs and their outputs and outcomes with budget levels and 

actual costs to institutionalize budget and performance integration; and

 the efficiency and effectiveness of the Federal budgeting workforce.

BFELoB anticipates 10-year savings of over $200 million Governmentwide due to efficiencies 

gained through collaboration and increased use of technology. Many Agency budget offices do 

not have automated systems to support budget formulation and execution activities. Agencies 

rely on basic office software and manual processes. BFELoB’s goal is to reduce time spent on 

manual processes and increase budget personnel time spent on high priority analytical activities 

(via increased use of technology, improved processes, and a better equipped workforce).

BFELoB is a mixed lifecycle investment. Activities and solutions under development by BFELoB 

workgroups are at different stages within the development lifecycle. Products under 

development are listed in the Objectives and Benefits table below and include implementation or 

projected implementation dates.

The following tables display the objectives and benefits, risks, costs, and Agency contributions to 

BFELoB.
SALARIES AND EXPENSES OVERVIEW

Y-18

Objectives and Benefits: Technology

Capability Objectives and Benefits

Technology

Collaboration 

Improves the efficiency and effectiveness of Government activities through the 

ready accessibility of information, and the ability to collaborate remotely both 

within an Agency (i.e., collaboration with regional and field staff) and across 

Federal Agencies (i.e., collaboration of each Agency with OMB and other 

Agencies on shared programs).

Current products include the MAX Federal Community (a “wiki” site, in 

production Dec. 2006), secure online meeting capability (Nov. 2008), MAX 

Shared Desktop (Feb. 2011), and MAX Calendar (2011).

Current Status: The MAX Federal Community provides increased information 

sharing, collaboration, and knowledge management securely across the 

Federal Government, as well as within each Agency. With approximately 

96,000 members (up from 76,000 in February 2013), the MAX Federal 

Community is reportedly the largest Government operated collaboration site.

Usage is currently growing at a rate of over 1,000 users per month. Many 

Agencies are also using the secure MAX Shared Desktop or the secure online 

meeting tool allowing Agency personnel to attend meetings remotely with 

presentations displayed on their computer screens, and MAX survey to quickly 

gather and analyze information via tokenized surveys.

Data Collection & 

Tracking

Improves OMB and Agency efficiency and effectiveness in carrying out the 

numerous budget data exercises that occur. Benefits apply to both central 

budget exercises (i.e., those requested of Agencies by OMB) and exercises at 

the departmental or Agency level (i.e., those requested by central Agency 

offices of Agency regional and field offices). Agency benefits include 

increased data collection capabilities, reduced errors, and reduced time spent 

manually consolidating and publishing data.

Current products include multiple Web-based data collection tools for central 

budget exercises (first exercise in production in March 2007, with ongoing rollouts), as well as a Web-based tool, MAX Collect, for Agency use in the 

collection of budget briefing and question and answer materials (in production 

since Nov. 2008). Over 100 MAX Collect exercises have been utilized in the 

last year.

Current Status: BFELoB data collection tools have already demonstrated 

value by automating the collection of data for dozens of centralized exercises 

related to the budget community for earmarks, continuing resolutions, 

Questions for the Record (QFRs) and across-the-board reductions. The MAX 

Collect tool provides even greater benefit by enabling Agency budget offices to 

automate their own data collection exercises. Agencies are now using the tool 

to facilitate a broad range of data calls and data collection exercises 

numbering in the hundreds.
SALARIES AND EXPENSES OVERVIEW

Y-19

Knowledge 

Management

Improves the ability of Agencies to locate and access information, increases 

the availability and comprehensiveness of data, and improves the ability of the 

budgeting community to manage the impending retirement of key personnel. 

Database-driven products such as the MAX Federal Community and MAX 

Collect enhance knowledge management capabilities by capturing 

“knowledge” as it is generated, simply as a by-product of these tools.

Agency Budget 

Formulation and 

Execution Tools

Provides a cost-effective strategy for Agencies that do not have budget 

formulation and execution applications, or have outdated applications, to 

quickly improve their effectiveness through automation. This effort encourages 

common and integrated solutions that are reusable Governmentwide.

Products include the Budget Formulation and Execution Manager system 

(BFEM), the first shared budget formulation system by the Department of 

Treasury (in production April 2007); the Departmental E-Budgeting System 

(DEBS), a shared offering from the Department of Labor (April 2010); the 

Decision Matrix for budget systems evaluation (full systems evaluations republished in Feb. 2011); the Budget Capability Self-Assessment Tool (BC 

SAT) (republished in April 2011); and the MAX A-11 Data Transfer and Rule 

Validation project, for which multiple services went live in Oct. 2011, April 

2012, Oct. 2012, and the final modules for A-11 data entry in Oct 2013, with 

Appendix Text capabilities scheduled for 2014. The Decision Matrix allows 

Agencies to define their specific budget system requirements and evaluates 

the capability and maturity of six Agency and three commercial budget 

systems against those requirements. The Budgeting Capability SelfAssessment Tool (BC SAT) has provided several Agencies with 

comprehensive resource listings to further help them with strategic planning 

and resourcing.

Current Status: The MAX A-11 Rule Validation team developed processes, 

methodologies, and standards to enable Agencies to exchange data with 

OMB's MAX A-11 system through the use of multiple ‘services’, going live with 

the final set of services this year for A-11 Data Entry that have greatly 

improved the process, eliminated large amounts of manual data entry, and 

enabled availability of account level information on a real-time basis. BFELoB 

continues to support Treasury’s BFEM and Labor’s DEBS systems as they 

provide customer Agencies with enhanced connections to OMB’s MAX budget 

system. 

Analytical Tools

Enhances Federal capabilities for analyzing budget formulation, execution, 

planning, performance, and financial information. This enables more 

complete, thorough, and timely analysis, which will in turn provide policy 

decisionmakers with improved understanding of policy option impacts and 

alternatives. 

Current products include the MAX Analytics tool suite (in production Sept. 

2009), which creates custom charts and graphs for analysis, and associated 

tools built upon the analytics core (such as MAX Calendar).

Current Status: MAX Analytics integrates with BFELoB data collection and 

collaboration tools, enabling charts that update automatically as new data is 

entered. Agencies have been using MAX Analytics to dynamically display the 
SALARIES AND EXPENSES OVERVIEW

Y-20

results of their data collections and to transform how they use analytics to 

manage problems. BFELoB continues to work with Agencies to include the 

most relevant and useful capabilities in the tool suite. Several Agencies (OMB, 

DOJ, Treasury, etc.) are now utilizing MAX Analytics to drive decisionmaking 

based upon analysis not previously possible.

Budget Execution 

and Financial 

Management 

Integration

Improves the quality and integrity of information, data flows, and reporting in 

budget formulation and execution, especially in regard to its touch points with 

financial management. Identifying common business processes and data 

standards will form the basis for requirements for use in developing budget 

systems, as well as closer alignment with financial management systems. 

Current products include Governmentwide process maps for budget execution 

(published in Oct. 2008) and budget formulation (Nov. 2009) and the Webbased budget execution training module (Nov. 2009), budget formulation 

training module (Oct. 2010), and Appropriations Law (March 2011).

Current Status: The training modules are in use throughout the budget 

community. Over 4,900 people have taken the self-paced online training 

module courses, which have an estimated return on investment to date of over 

3,500 percent and a savings of over $4 million.

Document 

Production

Enables Agency budgeting personnel to move from clerical to analytical 

functions, increasing Agency analytical resource availability. Agency budget 

staff currently work countless hours to incorporate late-breaking policy data 

changes in high-visibility publications. Often, many changes must be 

simultaneously made in multiple documents for different stakeholders. 

Document production capabilities exist in Treasury and Labor’s shared service 

budget systems, as well as in the MAX Collect Tool. 

Objectives and Benefits: Governance

Capability Objectives and Benefits

Governance

Program 

Management Office 

(PMO)

Serves as a central coordination point for Governmentwide collaboration and 

sharing of technologies and processes. The PMO allows resources across 

Government to be leveraged for cost savings. In this way, costs are reduced, 

economies of scale are achieved, and risks in developing and buying Agency 

budget tools are reduced through a coordinated combination of approaches 

that include: sharing common budget formulation components, purchasing 

commonly used software that has been proven in multiple Agencies, and 

purchasing services from other Agencies.

The PMO will support enhanced efficiency, effectiveness, quality, knowledge 

management, presentation, collaboration, and flexibility within the BFELoB. 

Currently, the PMO supports eight initiative-specific workgroups that meet on a 

regular basis.

Process 

Improvements

Allows for the development of system requirements and guidelines for tools 

that are modular in nature (can be used as part of any system) and available 

for use by multiple Agencies. Accounts for the importance of flexibility in the 

budgeting process and acts as a set of standards that are essential for the 
SALARIES AND EXPENSES OVERVIEW

Y-21

Capability Objectives and Benefits

automated exchange of budget data with Treasury and OMB, as well as 

Agency financial management systems.

Current products include numerous updates to the MAX Federal Community, 

MAX Collect, MAX Analytics, and MAX Shared Desktop as well as 

implementation of MAX Authentication services at seven Agencies with work 

underway to support several more with ‘single sign-on’ capabilities. We have 

had discussions with the Federal Credit program and with the Performance 

Management Line of Business on how we can best link up with these 

communities to our mutual benefit and will continue those relationships into the 

coming year. 

Service Module 

Standardization

Encourages reusability and interoperability of budget systems across Agencies 

to achieve significant cost savings through a "build once, use often" 

philosophy. Service module registration via the PMO will help ensure that 

Agencies are aware of existing services so that duplicative investments are not 

made. 

Objectives and Benefits: Human Capital

Capability Objectives and Benefits

Human Capital

Budget Human 

Capital

Enhances the effectiveness of the existing budgeting workforce and 

encourages participation from other professions within Government, the private 

sector, and universities. BFELoB provides a central venue for the budget 

community, OPM, and the Council of Human Capital Officers to grow the 

appeal of Federal Budgeting as a career by combining Agency efforts to define 

budget career paths, core competencies, leadership development, certification 

programs, and sharing of ideas in areas such as succession planning, 

retention and recruitment.

Products include recommendations on core competencies (published Nov. 

2008) and proficiency levels (published May 2010), training curricula for budget 

analysts, as well as no-cost training courses for budget staff and self-paced 

training modules (released in 2010 and 2011). More are in development.

Current status: Thousands of Government employees have undergone nocost training through in-class, Web-based, or facilitated online training 

sessions hosted by the BFELoB. Monthly panel discussions featuring an OMB 

and senior agency budget staff, focusing on specific budgeting related topics, 

have been attended by over 1,200 individuals since the Department began 

hosting these 2.5 years ago. Brownbag discussion groups focusing on a 

deeper understanding of budget execution and on the Budget Career Road 

Map began in Nov. 2010 and were attended by over 500 people. A new indepth course focusing on Basic Budget Processes began in 2013 and has 

been held quarterly, with 127 participating. Pilot classes were held at ED on 

Grants and Acquisition training for budget professionals, attended by dozens

and showing promise for adoption at a wider, Governmentwide level. All of 
SALARIES AND EXPENSES OVERVIEW

Y-22

Capability Objectives and Benefits

these opportunities are offered to Federal employees free of charge.

Risks

Type of 

Risk 1

Risk Description Mitigation Approach

Other Schedule Agency staff (from multiple 

Agencies) lead and 

participate in workgroups on a 

voluntary basis, which at 

times slows progress.

1) Conduct Agency outreach/marketing, 

and 2) target Agency staff (based on skill 

set) for participation on specific projects 

and for specific time periods.

Other Management 

Oversight

Agency budget offices do not 

make use of the full range of 

BFELoB products and 

services available to them.

Develop marketing and outreach strategy 

and dedicate PMO staff to assist 

Agencies on activities such as building 

out community pages.

Other Business 

Impact

PMO strategic plan (Concept 

of Operations (CONOPS) and 

target architecture 

documents) have been 

revalidated.

Implementation planning consistent with 

CONOPS and architecture document 

occurred in summer 2013, now executing 

against those plans.

1

If significant risks occur, they have substantial impact on the ability of the Line of Business to succeed. Other risks, 

while potentially serious, may not significantly impact the Line of Business and its ability to succeed.
SALARIES AND EXPENSES OVERVIEW

Y-23

Line of Business IT Costs (dollars in thousands)

Costs by project 2007 2008 2009 2010 2011 2012 2013

Planning 516 437 655 100 125 125 116

Acquisition 714 904 810 355 335 350 375

Operations & Maint. 401 650 680 720 685 700 781

Govt FTE Costs 376 490 444 162 172 238 244

2,007 2,481 2,589 1,337 1,317 1,413 1,516

FTEs 2 4 4 4 4 2 2

Costs by project 2014 2015

Planning 78 78

Acquisition 178 178

Operations & Maint. 919 919

Govt FTE Costs 100 100

1,275 1,275

FTEs 1 1
SALARIES AND EXPENSES OVERVIEW

Y-24

Anticipated Contributions by Agency (dollars in thousands)

AGENCY

FY 

2013

FY 

2014

FY 

2015

Department of Agriculture $95 $95 $95

Department of Commerce 105 105 105

Department of Defense--Military 105 105 105

Department of Education (direct funds) 105 105 105

Department of Energy 105 105 105

Department of Health and Human Services 105 105 105

Department of Homeland Security 105 105 105

Housing and Urban Development 105 105 105

Department of the Interior 105 105 105

Department of Justice 105 105 105

Department of Labor 105 105 105

Department of State 105 105 105

Department of Transportation 105 105 105

Department of the Treasury 105 105 105

Department of Veterans Affairs 105 105 105

US Army Corps of Engineers-Civil Works 90 80 80

Environmental Protection Agency 75 75 75

General Services Administration 105 105 105

National Aeronautics and Space Administration 105 105 105

National Science Foundation 105 105 105

USAID 105 105 105

Office of Personnel Management 105 105 105

Small Business Administration 50 50 50

Securities and Exchange Commission 50 50 50

Broadcasting Board of Governors 50 50 50

Office of National Drug Control Policy 50 50 50

Consumer Financial Protection Board 50 50 50