Department of Education

SALARIES AND EXPENSES OVERVIEW

Fiscal Year 2014 Budget Request

CONTENTS

Page

Introduction................................................................................................................................ 1

FY 2014 Budget Request........................................................................................................... 2

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

Budget Authority by Account ................................................................................................ 9

Budget Authority by Object Classification............................................................................10

Full-Time Equivalent Employment by Account.....................................................................11

Full-time Equivalent Employment by office..........................................................................12

Detail of Full-time Equivalent Employment ..........................................................................13

Organization Chart ..............................................................................................................14

Locations of Major Administrative Contractors.....................................................................15

Report on the Budget Formulation and Execution Line of Business ..........................................16
SALARIES AND EXPENSES OVERVIEW

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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 

2014 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 Department’s 2014 request would deliver $14.5 billion 

to help 23 million students in high poverty schools make progress toward State college- and 

career-ready 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 

educational needs of students with disabilities; Federal Pell Grants, which would make available 

$35.3 billion in need-based grant assistance to students enrolled in postsecondary institutions; 

and the postsecondary student loan programs, which in 2014 would provide roughly 

$112.1 billion in low-interest, new direct loans, excluding new consolidation 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).

• Grants payment processing.

The FY 2014 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

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• Information technology, including improving the capability to collect educational data, a 

continued focus on security, and enhancements to the Department’s Web sites.

• Student aid administration, with a focus on administering Pell Grants and Student Loans.

• 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 achieve 

administrative efficiencies as directed in Executive Order 13589 and OMB Memorandum 

M-12-12. The FY 2014 budget request reduces 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 2014

(dollars in millions)

Category

2010

Obligations

2014

Request

Percent Change

from 2010

Travel $11.6 $10.0 -14%

Printing 5.4 2.8 -48%

Supplies 1.7 1.2 -29%

Advisory and Assistance 19.1 12.1 -37%

Total 37.8 26.1 -31%

FY 2014 Budget Request

FY 2014 BUDGET REQUEST

The 2014 total Salaries and Expenses discretionary budget request is $1.692 billion, 2 percent 

above the 2013 and 2012 levels. The Department’s Salaries and Expenses budget in 2014 also 

includes $434 million in mandatory funding for Not-For-Profit (NFP) loan servicer costs in the 

Student Aid Administration account.

The requested increase is focused mainly on key overhead areas: Education’s Central 

Automated Processing System (EDCAPS), rent, IT security, IT system enhancements, and 

building modernization costs associated with Department occupied buildings.
SALARIES AND EXPENSES OVERVIEW

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The chart below provides detail on the total Salaries and Expenses request of $1.692 billion by 

category.

STAFFING AND COSTS SUMMARY

Staffing

The 2014 request includes funding for 4,266 FTE, an increase of 19 FTE from the 2013 level of 

4,247 FTE. Three FTE are requested in the Office of Elementary and Secondary Education to 

handle increased workload related to monitoring and providing technical assistance to support 

individualized State accountability systems under ESEA flexibility. As there will be significant

variation in accountability systems across States, these FTE would also support the effort to 

build a body of evidence through the development and analysis of program performance 

measures and program evaluations. An additional 5 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. An 

additional 8 FTE will be used in the Office of Inspector General to support audit, investigation, 

and inspection activities, as well as information technology (IT) audits and computer crime 

investigations (cyber security) for all Department programs. Eight additional FTE are requested

to strengthen the Department’s evaluation capacities in response to OMB Memorandum M-12-

14. FTE for the Federal Student Aid office will be decreased by 5.

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 

Personnel

35%

Other Non-Personnel

4%

Overhead (Rent & 

Mail) 5%

Contracts

56%

FY 2014 Salaries & Expenses Costs by Category

Contract costs account for most of the Salaries and Expenses budget.
SALARIES AND EXPENSES OVERVIEW

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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.

Personnel and Non-Personnel Costs Summary

The budget request includes $596.045 million for personnel compensation and benefits. The 

request is an increase of $9.361 million from the 2013 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 2014 is $1.1 billion, an increase of $20.935 million, from the 2013 level.

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 $138.327 million is requested for 

these costs in 2014, an increase of $5.744 million from the 2013 level. The increase is primarily 

for rental costs for office space and security rent in buildings occupied by Department 

employees, the costs of which are dictated by the Federal Protective Service, for necessary 

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

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security of personnel and property, for the physical security of buildings and personnel, and for 

the renovation of Department occupied buildings.

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 $101.691 million is requested, an 

increase of $1.927 million from the 2013 level, largely to continue the replacement of the 

Contracting and Purchasing System component of EDCAPS, continued operations of EDCAPS,

IT security, and the e-Government initiative for Integrated Acquisition Environment - Grants and 

Loans.

Improper Payments

The Department continues to focus on reducing and recovering improper payments. These 

activities have taken on increased importance and scrutiny given the Government’s current 

fiscal challenges. The Department has implemented several new initiatives to strengthen its 

efforts to prevent improper payments.

One of the Department’s most exciting initiatives is the use of data and text analytics for A-133 

Single Audit reports to identify the root cause of common grantee challenges. The goal of this 

effort is 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 recently implemented continuous controls monitoring software to help detect 

anomalies and potential issues in all Department and FSA payments made through the G5 

payment system. This new automated tool is used to examine payment records and identify 

problems such as duplicate payments, unduly large payments, overpayments, and potential 

fictitious vendors.

Further, the Department strengthened and expanded its contract payment recapture effort by 

leveraging recent advances in data mining technologies. The Department anticipates that the 

use of this data mining approach may identify a small but significant number of improper 

payments that were previously undetected. A payment recapture audit of this kind supports the 

Department’s strategic goal to improve its organizational capacity by increasing the efficient and 

effective use of contract resources.

Finally, risk assessments will continue to be periodically performed on the Department’s 

programs to identify any programs susceptible to significant improper payments. These efforts 

demonstrate that the Department is moving forward in the implementation of Executive Order 

13520, Reducing Improper Payments, and the Improper Payments and Elimination and 

Recovery Act (IPERA).

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 
SALARIES AND EXPENSES OVERVIEW

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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 help inform improvements to existing corrective actions to reduce improper 

payments. Existing corrective actions include activities to expand use of the Free Application 

for Federal Student Aid (FAFSA), IRS Data Retrieval Tool (DRT), and school verification.

Participation in Governmentwide E-Government Initiatives

PARTICIPATION IN GOVERNMENTWIDE E-GOVERNMENT INITIATIVES

The Department is actively participating in a number of Governmentwide 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 $2.773 million in 2013, and requests $3.387 million in 2014 for these

initiatives. The request includes support for the following initiatives:

GovBenefits.gov – 2013: $313,000; 2014: $314,000; 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.

Disaster Assistance Improvement Plan – 2013: $26,000; 2014: $36,000; 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.

E-Rulemaking − 2013: $316,000; 2014: $32,000; 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 – 2013 CR: $476,000; 2014: $548,000; 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 1,180 funding opportunities and nearly 600 application 

packages on Grants.gov. To date, 48,600 application packages have been received from the 

grants community via Grants.gov. The Department ranks in the top five Agencies for the 

number of applications received via Grants.gov since its inception.
SALARIES AND EXPENSES OVERVIEW

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Recruitment One-Stop – 2013: $30,000; 2014: $25,000 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 – 2013: $133,000; 2014: $70,000; 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 currently not possible with a paper-based system. With these tools, trends for retirement, 

promotions, and reassignments can be accurately forecast. Personnel transactions will be 

processed more quickly.

E-Travel – 2013: $290,000; 2014: $569,000; Program Administration account.

E-Travel is designed to provide 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 Webbased, end-to-end travel management service with an integrated online booking engine and 

authorization and vouchering process.

Integrated Acquisition Environment – 2013: $67,000; 2014: $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 – 2013: $686,000; 2014: $1.290 million; 

Student Aid Administration account.

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

includes participation of grant and loan recipients along with the contractors already 

participating in the initiative.

Financial Management Line of Business – 2013: $143,000; 2014: $231,000; 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 
SALARIES AND EXPENSES OVERVIEW

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business performance improvements in financial management, including finding exemplary 

financial management systems that can be used by multiple Agencies.

Human Resources Management Line of Business – 2013: $66,000; 2014: $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.

Grants Management Line of Business – 2013: $107,000; 2014: $0; Program Administration 

account.

The Grants Management Line of Business will be fully rolled into the Financial Management 

Line of Business during FY 2014 and, as a result, no funds are requested. The Grants 

Management Line of Business initiative reduces the cost of Government and improves services 

to citizens through business performance improvements in grants management.

Geospatial Line of Business – 2013: $15,000; 2014: $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 – 2013: $105,000; 2014: $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.

Shared Service (Non E-gov)

Performance Management Line of Business – 2013: $204,000; 2014: $219,000; 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-9

Click here for accessible version Budget Authority by Account

2014 Change from

ACTIVITY 2012 2013 Request 2013 to 2014

Program Administration:

 Salaries and Expenses $446,259 $448,990 $461,450 $12,460

 Building Modernization 0 0 2,000 2,000

Office for Civil Rights 102,624 103,252 107,500 4,248

Office of Inspector General 59,820 60,186 62,347 2,161

 Subtotal, Departmental Management 608,703 612,428 633,297 20,869

Administrative costs from program accounts:

College Housing and Academic Facilities Loans 459 462 459 (3)

Historically Black College and University Capital Financing 352 354 352 (2)

Institute of Education Sciences:

 National Assessment Governing Board 8,690 8,743 7,690 (1,053)

 National Board for Education Sciences 349 275 273 (2)

Student Aid Administration

 Salaries and Expenses 682,221 706,156 733,224 27,068

 Servicing Activities 361,166 343,617 316,867 (26,750)

 Subtotal, program accounts 1,053,237 1,059,607 1,058,865 (742)

 Total, Salaries and Expenses 1,661,940 1,672,035 1,692,162 20,127

NOTE: Includes discretionary funds only. The amount shown in FY 2013 includes a 0.612 percent 

across-the-board increase provided by P.L. 112-175.
SALARIES AND EXPENSES OVERVIEW

Y-10

Budget Authority by Object Classification

Budget Authority by Object Classification

(dollars in thousands)

2014 Change from

Object Class 2012 2013 Request 2013 to 2014

11.10 Full-time permanent $431,864 $431,663 $435,989 $4,326

11.31 Full-time temporary 16,519 15,162 15,278 116

11.32 Part-time 2,734 2,235 3,493 1,258

11.33 Consultants 347 358 361 3

11.51 Overtime 490 457 423 (34)

11.52 Aw ards 5,574 4,618 4,420 (198)

11.80 Other Compensation 12 0 0 0

 Compensation subtotal 457,540 454,493 459,964 5,471

12.00 Benefits 123,975 132,012 135,901 3,889

13.01 Benefits for former personnel 2,958 180 180 0

21.00 Travel 11,201 10,348 10,140 (208)

22.00 Transportation of things 1 76 76 0

23.10 Rental Payments to GSA 68,348 75,924 77,393 1,469

23.31 Communications 926 808 814 6

23.32 Postage/fees 1,668 1,268 1,268 0

 Subtotal 23 70,942 78,000 79,475 1,475

24.00 Printing & Reproduction 3,922 3,370 2,814 (556)

25.10 Advisory and Assistance Svcs 12,114 10,160 12,148 1,988

25.21 Other Services 440,906 432,925 379,924 (53,001)

25.22 Training/Tuition/Contracts 6,239 5,880 6,108 228

25.23 Field Readers 0 0 0 0

25.30 Goods/Services from Gov't 50,500 45,350 47,255 1,905

25.40 Operations/Maint of Facilities 118 101 441 340

25.50 Research & Development 0 0 0 0

25.71 Operations/Maint of Equipment 1,673 1,303 1,408 105

25.72 IT Services/Contracts 475,122 493,044 548,589 55,545

 Subtotal 25 986,672 988,763 995,873 7,110

26.00 Supplies 1,421 1,142 1,211 69

31.01 IT Equipment/Softw are 1,732 1,666 1,838 172

31.03 Other Equipment 264 261 1,242 981

 Subtotal 31 1,996 1,927 3,080 1,153

32.00 Building Alterations 1,312 1,724 3,448 1,724

43.01 Interest and Dividends 0 0 0 0

Total 1,661,940 1,672,035 1,692,162 20,127

Total Pers. Comp. & Ben. 584,473 586,685 596,045 9,360

Total Non-Personnel 1,077,467 1,085,350 1,096,117 10,767

 NOTE: Includes discretionary funds only. The amount show n in FY 2013 includes a 0.612 percent

across-the-board increase provided by P.L. 112-175.
SALARIES AND EXPENSES OVERVIEW

Department of Education

Full-time Equivalent Employment (Staff Years) by Account

Y-11

Full-Time Equivalent Employment by Account

2014 Change from

ACCOUNT 2012 2013 Request 2013 to 2014

Program Administration 2,053 2,035 2,051 16

Office for Civil Rights 582 598 598 0

Office of Inspector General 265 269 277 8

 Subtotal, Departmental Management 2,900 2,902 2,926 24

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 1 1 1 0

Student Aid Administration

 Discretionary authority 1,325 1,326 1,321 -5

 Mandatory authority 0 0 0 0

 Subtotal, program accounts 1,343 1,345 1,340 -5

 Subtotal, FTE 4,243 4,247 4,266 19

 Total, discretionary authority 4,243 4,247 4,266 19

 Total, mandatory authority 0 0 0 0

Recovery Act (Office of Inspector General) 33 0 0 0

 Total, FTE 4,276 4,247 4,266 19
SALARIES AND EXPENSES OVERVIEW

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Full-time Equivalent Employment by office

2014 Change from

OFFICE 2012 2013 Request 2013 to 2014

Advisory Committee on Student Financial Assistance 5 6 6 0

Chief Financial Officer 179 178 178 0

Chief Information Officer 133 130 130 0

Civil Rights 582 598 598 0

Communications and Outreach 111 104 104 0

Deputy Secretary 65 69 69 0

Elementary and Secondary Education 248 251 254 3

English Language Acquisition, Language Enhancement, and

 Academic Achievement for Limited English Proficient Students 19 18 18 0

Federal Student Aid 1,234 1,235 1,230 -5

General Counsel 107 106 106 0

Innovation and Improvement 97 95 100 5

Inspector General 298 269 277 8

Institute of Education Sciences 182 182 187 5

Legislation and Congressional Affairs 18 18 18 0

Management 187 186 186 0

National Assessment Governing Board 13 14 14 0

National Board for Education Sciences 1 1 1 0

Planning, Evaluation, and Policy Development 121 122 125 3

Postsecondary Education 197 195 195 0

Secretary 98 94 94 0

Special Education and Rehabilitiative Services 271 264 264 0

Under Secretary 29 30 30 0

Vocational and Adult Education 81 82 82 0

 Total, FTE 4,276 4,247 4,266 19

NOTE: The Office of Inspector General includes 33 FTE in 2012 funded by the Recovery Act.

Department of Education

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

Y-13

Detail of Full-time Equi valent Employment

Department of Education

Detail of Full-Time Equivalent Employment

2012 2013 2014

Actual Estimate Request

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

Executive level II.......................... 4 3 3

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

Executive level IV........................ 7 10 10

Executive level V......................... 0 2 2

 Subtotal..................................... 13 17 17

 Total - EX Salary....................... $2,172,300 $2,757,172 $2,764,400

Senior Executive Service................ 78 96 96

 Subtotal - ES .............................. 1/ 78 96 96

 Total - ES Salaries........................ $13,313,778 $15,905,664 $15,945,600

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

AD................................................ 168 170 169

ED/EI........................................... 8 8 8

GS/GM-15................................... 544 549 549

GS/GM-14..................................... 930 938 938

GS/GM-13..................................... 1,046 1,055 1,055

GS-12........................................... 718 720 723

GS-11........................................... 275 279 282

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

GS-9............................................. 158 164 167

GS-8............................................. 47 48 49

GS-7............................................. 90 95 96

GS-6............................................. 19 25 25

GS-5............................................. 24 30 30

GS-4............................................. 29 35 36

GS-3............................................. 12 16 17

GS-2............................................. 5 7 5

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

 Subtotal...................................... 4,076 4,143 4,153

Recovery Act (non-add)2/ 33 0 0

Total full-time equivalent

 employment, end of year........... 4,167 4,256 4,266

Full-time equivalent (FTE)

 usage......................................... 4,276 4,247 4,266

Average ES salary....................... $170,689 $165,684 $166,100

Average GS/GM grade................. 12.1 12.0 12.0

Average GS/GM salary................ $103,773 $104,198 $105,020

1/ FY 2012 includes 9 FSA SES positions; FY 2013 & FY 2014 include 10 FSA SES positions.

2/ Additional details on the uses of the Recovery Act funds are included in the justifications of the corresponding

 accounts.
SALARIES AND EXPENSES OVERVIEW

Y-14

Organization Chart
Locations of Major Administrative Contractors

Y-15

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

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

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-16

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 of 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-17

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), and MAX 

Shared Desktop (Feb. 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 over 80,000 

members (up from approx. 57,000 last year at this time), 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.

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 one hundred 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 earmarks, continuing resolutions, 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-18

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, and Oct. 2012. 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 Self-Assessment 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 

numerous services this year 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 begun to use MAX Analytics to dynamically display 

the 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, 
SALARIES AND EXPENSES OVERVIEW

Y-19

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 4,000 people have taken the self-paced online training 

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

2,600% and a savings of over $3 million. The next module, Operating Plans, is 

in development with an anticipated release date of summer 2013.

Document 

Production

Enables Agency budgeting personnel to move from clerical to analytical 

functions, increasing Agency analytical resource availability. Agency budget 

staff currently works 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 

automated exchange of budget data with Treasury and OMB, as well as 
SALARIES AND EXPENSES OVERVIEW

Y-20

Capability Objectives and Benefits

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 six Agencies with work 

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

begun 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.

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 1,000 individuals since we began hosting these 

2 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.
SALARIES AND EXPENSES OVERVIEW

Y-21

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 

(CONOPS and target 

architecture documents) have 

been revalidated.

Implementation planning consistent with 

CONOPS and architecture document to 

occur in summer 2013.

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-22

Line of Business IT Costs (dollars in thousands)

Costs by project 2007 2008 2009 2010 2011 2012 2013

Planning 516 437 655 100 125 125 125

Acquisition 714 904 810 355 285 320 375

Operations & Maint. 401 650 680 1,990 1,790 1,794 1,588

Govt FTE Costs 376 490 444 390 396 406 557

2,007 2,481 2,589 2,835 2,596 2,645 2,645

FTEs 2 4 4 4 4 4 5
SALARIES AND EXPENSES OVERVIEW

Y-23

Anticipated Contributions by Agency (dollars in thousands)

AGENCY

FY 

2012

FY

2013

FY 

2014

Department of Agriculture $90 $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 105 90 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