TABLE OF CONTENTS

MESSAGE FROM THE CHIEF DIVERSITY & INCLUSION OFFICER ..............................................................................................1

EXECUTIVE SUMMARY............................................................................................................................................................3

OVERVIEW.............................................................................................................................................................................5

BUSINESS DIVERSITY & INCLUSION

Minority-Owned and Women-Owned Business Utilization..............................................................................................9

Trends in Minority-Owned Business Utilization.............................................................................................................10

Trends in Women-Owned Business Utilization..............................................................................................................11

Trends in MWOB Small Business Utilization..................................................................................................................12

MWOB Participation in Specific Acquisition Categories .................................................................................................13

Good Faith Effort Mandate...........................................................................................................................................16

Economic Empowerment..............................................................................................................................................17

INITIATIVES & ACCOMPLISHMENTS 

Accountability................................................................................................................................................................19

Outreach ......................................................................................................................................................................19

Challenges ...................................................................................................................................................................22

WORKFORCE DIVERSITY & INCLUSION 

Workforce Demography ...............................................................................................................................................23

RacE, Ethnic and Gender Profiles..................................................................................................................................23

Benchmark Comparisons..............................................................................................................................................24

Senior Management .....................................................................................................................................................26

All Grade Groupings .....................................................................................................................................................27

Hiring and Attrition ......................................................................................................................................................28

Mission Critical Occupations Trends by Race/Ethnicity and Gender ..............................................................................30

Student Employment ...................................................................................................................................................32

New IQ Inclusion Quotient............................................................................................................................................33

Best Places to Work Ranking.........................................................................................................................................34

INITIATIVES & ACCOMPLISHMENTS

Accountability................................................................................................................................................................35

Outreach.......................................................................................................................................................................36

Quantitative and Qualitative Analysis.............................................................................................................................36

Inclusive Diversity Awareness and Training ..................................................................................................................37

Financial Literacy ..........................................................................................................................................................38

Challenges....................................................................................................................................................................39

CONCLUSIONS AND FISCAL YEAR 2019 PLANS 

Business Diversity and Inclusion ..................................................................................................................................41

Workforce Diversity and Inclusion.................................................................................................................................43

APPENDIX

List of Abbreviations......................................................................................................................................................45 
& 
As we approach the third decade of the 21st century, Treasury Departmental Offices continues 

its longstanding commitment to applying diversity and inclusion principles to meet the nation’s 

evolving economic needs. We also are approaching a full decade since the Office of Minority 

and Women Inclusion (OMWI) was established. With these landmarks in view, Treasury remains 

dedicated to creating an inclusive, diverse workplace that maximizes our human talent. The 

agency continues to empower small businesses, minority-owned businesses, and womenowned businesses, thereby fueling the communities they serve. In this eighth Office of Minority 

and Women Inclusion Annual Report to Congress, we are proud to report on key successes for FY 

2018 in workforce and business diversity and inclusion. For example:

9 We scaled new heights. The percentage and dollar amounts of minority-owned business 

contract obligations was the highest ever and among the highest in women-owned 

business contracting.

9 We built the first-of-a-kind. OMWIand the Bureau of FiscalServices Office of Revenue Collections inaugurated an unprecedented

FinancialAgent Mentor Protégé Program between large banksand small financial institutions, including minority-owned banks.

9 Wejoined forces. Treasury joined with the other seven OMWIagencies to co-host theSmart Contacts – Smart Contracts Technical

AssistanceEvent, training 199 minority vendors to become prospectivefederal contractors.

9 We opened minds. OMWI launched Inclusion Insights,ayear-long series of short videos on thetopic of unconscious bias,

accessible online for all Treasury employees. 

9 Weachieved benchmarks. Therepresentation of Black men isequal to or higher than each of fourexternal demographic

benchmarks;and therepresentation of Black women isalso higheracross three out of four benchmarks. Therepresentation of

both Asian men and Asian women is higher than each of four benchmarks.

9 Weinspired tomorrow’s leaders. OMWI hosted 10 talented minority students in our TreasuryScholars Program, increasing the

diversityamongall interns by 16 percentat Treasury’s headquarters.

Much progress has been made, but thereremains much work to do. Wecan go further.And, we will. Through theefforts of the

OMWI team to meticulously quantifyand qualify our progressagainst benchmarksand aspirations, weknow wheregapsexist,

barriers reside,and challenges remain. Wealso know that leadership commitment,accountability measures,and strategicaction

are the formula for creating positive changes toward inclusive diversity.

AsAmericans, welivein one of the most multi-ethnic, multi-racial,and culturally diverse nations in the world. As this report show

wetakeseriously our obligation to ensurethat those who do the work of Treasuryand those who arethe beneficiaries of our work

representevery face ofAmerica.

MESSAGE FROM THE

CHIEF DIVERSITY &

INCLUSION OFFICER 

Lorraine Cole

Lorraine Cole, Ph.D. 

Chief Diversityand Inclusion Officer

Office of Minorityand Women Inclusion

U.S. Department of the Treasury 

Departmental Offices

Lorraine Cole, Ph.D.

Chief Diversityand Inclusion Officer

Office ofMinorityandWomen Inclusion

FY2018 Annual Report to Congress 1
2018

27

44 37

 October 1 to September 30 

BY THE NUMBERS

PERCENTAGE OF WOMEN PERMANENT 

EMPLOYEES AT THE SENIOR EXECUTIVE 

SERVICE (SES) LEVEL

PERCENTAGE OF 

WOMEN PERMANENT 

EMPLOYEES

 TOTAL AMOUNT OF CONTRACT 

DOLLARS OBLIGATED WITH 

MINORITY-OWNED BUSINESSES

PERCENTAGE OF 

RACIAL/ETHNIC MINORITY

 PERMANENT EMPLOYEES

22

PERCENTAGE OF CONTRACTS 

OBLIGATIONS WITH 

WOMEN-OWNED BUSINESSES

28

PERCENTAGE OF CONTRACTS 

OBLIGATIONS WITH 

MINORITY-OWNED BUSINESSES FEVS

 FAIRNESS 

SCORE

FEVS INCLUSION

QUOTIENT SCORE

PERCENTAGE OF MINORITY PERMANENT EMPLOYEES AT THE SENIOR EXECUTIVE SERVICE (SES) LEVEL

TOTAL AMOUNT OF CONTRACT DOLLARS OBLIGATED WITH WOMEN-OWNED BUSINESSES

1,788

61.84

53.28

$87,082,472

TOTAL NUMBER OF 

PERMANENT EMPLOYEES

FY
 EXECUTIVE

SUMMARY

BUSINESS DIVERSITY. Despitetheabsence of mandated contracting goals

for other than small businesses, Treasury Departmental Offices’ commitment to

minority-owned and women-owned business (MWOB) utilization has remained

strong. In FY 2018, Treasury Departmental Offices’ total procurement contrac

for goodsand services represented $313 million in obligations (with 1,746

contractactions), with over one-third (37 percent) of contract dollars totaling

$116 million going to either minority-owned or women-owned businesses. 

total of $87 million, or 28 percent of total contracts, wasawarded to minorityowned businesses. Atotal of $70 million, or 22 percent of total contracts, w

awarded to women-owned businesses ofall sizes. Among thesmall business categories, contract obligations to small disadvantag

businesses represented 22 percent ofall Departmental Offices contracts;and contract obligations to women-owned small

businesses represented 15 percent – both wellabovethe 5 percent statutory goal.

Since OMWI first began tracking MWOB contracting in 2011, there has been an almost steady upward trajectory in MWOB

utilization. The percentageand dollaramounts of minority-owned business contract obligations by Treasury Departmental

Offices was the highestever in FY 2018 and among the highest in women-owned business contracting. Theseachievements were

accomplished without mandated goalsas incentives for other than specific small business categoriesand despitegreateremphasis

placed on the utilization of category managementefforts in FY 2018. With such strong performancein the utilization of minorityowned and women-owned businesses in FY 2018, it is difficult to propose or predict challenges.

However, with theimplementation of category management strategiesasarecent directivefor thegovernment-wideacquisition

community, thereremains the potential fora negativeimpact on contracting with minority-owned and women-owned businessesas

an unintended consequence, particularly in specific industries wheresuch businessesare notabundantly present. Therefore,even

though no particular challengein this regard was noted in FY 2018, this isan area wherecontinued monitoring will beimportant.

The Office of Minority and Women Inclusion (OMWI) in the Department of the Treasury Departmental Offices

wasestablished by the Dodd-FrankWallStreet Reform and Consumer Protection Act (Dodd-FrankAct)§ 342 (P.L. 111-203)

and is responsible for all matters relating to diversity in management, employment, and Treasury’s business activities in

Departmental Offices,excludingtheenforcement of statutes, regulations, orexecutive orders pertainingto civil rights. Th

eighth annual report is submitted to Congress pursuant to the Dodd-FrankAct regardingtheactions taken by Treasuryand

the OMWI during Fiscal Year (FY) 2018.

FY2018 Annual Report to Congress 3
WORKFORCE DIVERSITY. In FY 2018, theTreasury Departmental Offices permanent workforce of 1,788

represented about 2 percent of thetotal Treasury-wide workforce. Morethan one-third (37%) of Treasu

Departmental Offices permanentemployeesacrossall gradelevelsareracial orethnic minorities. Blac

represent thelargest of the minority groupsat 22 percent. Asiansand Hispanics comprise 9 percentand

percent, respectively. Native Hawaiian or Other Pacific Islanders,American Indian orAlaska Natives,a

those who identify themselvesas Two or More Raceseach represent less than 1 percent of thetotal Treasury

Departmental Offices permanent workforce. Within senior management positions, minorities represe

17 percent of the permanent GS-15 level,and 14 percent of the permanent seniorexecutiveservice(SES)

positions. With regard to gender representation within Treasury Departmental Offices, 44 percenta

women and 56 percentare men. Within senior management positions, women comprise 39 percent of t

permanent GS-15 leveland 27 percent of the permanentSES positions.

Treasury Departmental Offices is committed to adopting leadingedgestrategies to maintain accountability,

transform the workplaceculture,analyze data,and conduct outreach as weaim to securea high performing

workforce drawn from a diverse pool of candidates. The biggest challenges to implementing the workfor

diversity provisions of Dodd-FrankAct § 342 have been hiring restrictions, retention rates, identifyingand

mitigating underlying theroot causes for underrepresentation in specific racial/ethnicand gender categories,

and perceptions of the workplaceculture.

First, throughout FY 2018, there has been a personnel cap imposed for Treasury Departmental Offices, which

has maintained staffingat specified levelsand, thus, constrained hiringand prospects to further impact

workforce diversity.

Second, hiring constraints werecompounded by retention rates. The percentage of women who separated (44

percent) from Treasury was greater than the percentage hired (42 percent), resulting in a negative netattrition

(–2 percent). Theseparation rate of minorities (36 percent) was considerably higher than the hiring rate 

minorities (25 percent), which was thelowest in fiveyears.

Third, thecontinuing challengeis to identifyand mitigatetheroot causesand systemic barriers to the

employmentand advancement of women and racial/ethnic minority groups in specificareas of the workforce.

Thereisan overall underrepresentation of Hispanics in the workforce below nearlyall benchmarks, in

senior managementand seniorexecutive positions,and in mission critical occupations. Similarly, the

isan underrepresentation of women, Blacks,and Asians in seniorexecutive positions,at specific senior

management levels,and in certain mission critical occupations.

Fourth,employee perceptions of fairness (53.28 in FY 2018 and 55.40 in FY 2017) have been consistently

below theacceptablescore of 65 percent on theinclusion quotient of theannual FederalEmployeeViewpoint

Survey (FEVS). On rankingsacross thefederal government of Best Places to Work, Treasury Department

Offices ranked in thefourth quartile(337 out of 415)among federalagency subcomponents on this quotient;

and also ranked in thefourth quartile(298 out of 409) on thesubcategory of “support for diversity.”

4 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
U.S. DEPARTMENT OF THE TREASURY 

Mission

Maintain astrongeconomyand createeconomicand job opportunities by promoting conditions thatenableeconomic growth and

stabilityat homeand abroad; strengthen national security by combating threatsand protecting theintegrity of the financial system;

and managethe U.S. government’s financesand resourceseffectively.

GOALS

Boost U.S. Economic Growth 

Enhance National Security 

Achieve Operational Excellence

Promote Financial Stability 

Transform Government-wide 

Financial Stewardship

1

2

3

4

5

Thiseighth annual report is submitted to Congress pursuant to the Dodd-Frank WallStreet Reform and Consumer Protection Act of

2010 (Dodd-FrankAct) § 342 (P.L. 111-203) regarding theactions taken by Treasuryand the Office of Minorityand Women Inclusion,

Departmental Offices (OMWI) during Fiscal Year (FY) 2018.1

1. Refer to https://legcounsel.house.gov/Comps/Dodd-Frank%20Wall%20Street%20Reform%20and%20Consumer%20Protection%20Act.pdf. For the purposes of this reporta

consistent with Dodd FrankAct § 342 (g) (3), thestandardsemployed by the Office of Personnel Management (OPM),and theEqualEmployment Opportunity Commission (EEOC),

the definition used for theterm “minority” is: Hispanic or Latino; Black orAfrican American;Asian; Native Hawaiian or Other Pacific Islander;and American Indian orAlaska Native.

OVERVIEW

FY2018 Annual Report to Congress 5
U.S. DEPARTMENT OF THE TREASURY

Throughout its rich history, Treasury’s core mission has not changed. With nearly 100,000 employees in its ranks, Treasury is still t

steward of the U.S.economy – taking in revenue, paying bills,and, when appropriate, borrowingand investing public funds.

In morerecent years, Treasury’s role hasexpanded to beingaleader in safeguardingand growing the nation’seconomy.

Treasury is organized into the Departmental Offices (i.e., Treasury’s headquarters), seven operating bureaus,and threeinspectors

general. The Departmental Officesare primarily responsiblefor policy formulation, whilethe bureausare primarily the operati

units of the organization. Internally, the Departmental Officesareresponsiblefor overall management of Treasur

Treasury Departmental Offices (Headquarters)

• Domestic Finance works to preserveconfidencein the U.S. Treasury market,

effectively managefederal fiscal operations, strengthen financial institutionsand

markets, promoteaccess to credit,and improve financialaccessand education in

service ofAmerica’s long-term economic strength and stability.

• Economic Policy reports on current and prospective economic developments 

and assists in the determination of appropriate economic policies. 

• The Office of General Counsel provides legal and policy advice to the 

Secretaryand other senior Departmental officials.

• International Affairs protectsand supports U.S.economic prosperity

and national security by working to help ensurethe most favorableexternal

environment for sustained jobsand economic growth in the United States.

• Legislative Affairs develops strategies to implement legislativeinitiatives,

communicates Treasury’s positions to the Congress,and keeps the Department

informed of Congressional objectives, concerns,activities,and interests.

• Management is responsiblefor managing the Department’s financial resources

and overseeing Treasury-wide programs, including human capital, information

technology,acquisition,and diversity issues.

• Public Affairs developsand implements communications strategy for the Departmentand advises officials within the

Departmentand its bureaus how best to communicateissuesand priorities of public interest.

• Tax Policy developsand implements tax policiesand programs, reviews regulationsand rulings to administer theInternal

Revenue Code, negotiates tax treaties,and provideseconomicand legal policyanalysis for domesticand international tax policy

decisions. Tax Policyalso provides revenueestimates for the President’s Budget.

• Terrorism and Financial Intelligence marshals the Department’s intelligenceand enforcement functions with thetwin

aims of safeguarding the financial system against illicit useand combating rogue nations, terrorist facilitators, weapons of mass

destruction (WMD) proliferators, money launderers, drug kingpins,and other national security threats. The officeis responsib

for thereview and analysis of domesticeconomic issuesand developments in the financial markets.

• The Treasurer of the United States has direct oversight of the U.S. Mintand Fort Knoxand isakey liaison with theFederal

Reserve.Additionally, theTreasurer oversees the Office of Consumer Policyat Treasuryand servesasasenioradvisor to the

Secretary on community developmentand engagement.

The Office of Domestic Finance

The Office of Economic Policy 

The Office of General Counsel

The Office of 

International Affairs 

The Office of Legislative Affairs

The Office of Management 

The Office of Public Affairs 

The Office of Tax Policy 

The Office of Terrorism 

and Financial Intelligence 

The Treasurer 

of the United States 

6 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
OFFICE OF MINORITY & WOMEN INCLUSION 

PRIMARY DUTIES

The Office of Minority and Women Inclusion was established on January 21, 2011 in accordance with the

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) § 342 (P.L. 111-203). The expre

statutory authority of OMWI covers Treasury Departmental Offices. For Treasury Departmental Offices, OMWI is responsib

for all matters relating to diversity in management, employment, and business activities, excluding the enforcement of

statutes, regulations, or executive orders pertaining to civil rights. OMWI is required to develop standards for equ

employment opportunity and the racial, ethnic, and gender

diversity of the workforce. OMWI is also required to take ste

to seek diversity, in a manner consistent with applicable law, in

the workforce of Treasury Departmental Offices at all levels of

the organization, but particularly within senior management. 

addition to workforce diversity, OMWI is charged with seeking

increased participation of minority-owned and women-owned 

businesses in the programs and contracts of the agency. OM

is responsible for establishing procedures to determine if agency 

contractors and their subcontractors have made good faith efforts 

to include minorities and women in their workforce.2

The Chief Diversity and Inclusion Officer for Treasury

Departmental Offices is the Director of OMWI and serves as

the chief strategist to the Treasury Secretary and chief advisor

to the Assistant Secretary for Management of efforts pertaining

to workforce and business diversity and inclusion. The OMWI

Director directly reports to Assistant Secretary for Management on

a day-to-day basis and has a dotted reporting line to the Secretary

of the Treasury. Throughout 2018 and in accordance with Dodd

Frank § 342, Lorraine Cole, Chief Diversity and Inclusion Officer,

held meetings with Treasury Secretary Steven T. Mnuchin on a

regular basis, provided briefings on relevant aspects of workforce

and business diversity and inclusion, consulted on new initiatives,

and recommended leadership action, as necessary.

Develop standards for diversity of the 

workforce and senior management 

Support recruitment/advancement 

efforts toward workforce diversity at all 

levels 

Develop standards for increased 

minority-owned and women-owned 

business contracts

Develop standards for technical 

assistance to businesses 

Develop procedures for contracting that 

considers the diversity of the applicant 

Develop standards to determine whether 

contractors and subcontractors are 

making a good-faith effort to include 

minorities and women in their workforce

Submit an annual report to Congress 

Conduct data analysis and produce 

internal reports

Provide advice and advocacy

2. It should be noted that Treasury Departmental Offices is nota financial regulatoryagency. Thus, therequirement in the Dodd-FrankAct § 342 to assess

diversity policiesand practices ofentities regulated by theagency is notapplicableto theTreasury Departmental Offices OMWI.

FY2018 Annual Report to Congress 7
“We are 

committed 

to diversity, 

inclusion, 

and dignity 

for all 

people...”

Steven T. Mnuchin, 

Secretary of the Treasury

8 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
BUSINESS DIVERSITY 

& INCLUSION 

MINORITY-OWNED AND WOMEN-OWNED BUSINESS UTILIZATION

Of thetwentyagenciesand federal reserve banks with an OMWI,Treasury Departmental Offices is one of thefew required to adhere

to theFederalAcquisition Regulation (FAR) for the procurement ofgoodsand services. TheFAR requiresafulland open competiti

process for federal procurements, with someexceptions for small business set-asides under specific circumstances. Additionally, it 

important to notethat, dueto legal restrictions pertainingto civil rights, no specificgoals can beestablished for contracting with minorityowned businesses regardless of size or women-owned businesses, with theexception of certain small business parameters.

Treasury-wide, thetotal (appropriated and non-appropriated) contract procurement was decreased from $5.2 billion in FY 2017 to $4.8

billion in FY 2018. Within Treasury Departmental Offices, procurement for productsand services increased from atotal of $301 milli

in FY 2017 (with 2,373 contractactions) to $313 million in FY 2018 (with 1,746 contractactions). Despitetheabsence of mandat

contractinggoals for other than small businesses, thecommitment to minority-owned and women-owned business utilization within

Treasury Departmental Offices remained strongin FY 2018, with 37 percent of contract dollars totaling $116 million goingto either

minority-owned or women-owned businesses (MWOB). Specifically, $70 million (22 percent) of contract obligated award dolla

went to women-owned businessesand $87 million (28 percent) went to minority-owned businesses (dollaramountsawarded to

minority women-owned businessesareincluded within each category). (Refer to Table 1)This level of contracting with minority-owned

businesses is the highest since OMWI began reportingin 2011. Whilethe percentage of women-owned business contract obligatio

declined slightly from that in FY 2017, theFY 2018 percentage of women-owned business contract obligations representsasignificant

increase from all other previous years of reporting.

Table 1

FY 2018 Treasury Departmental Offices

Contract Obligations by Demographic Groups, TotalAwards,and Percentages ofAwards*

Category Total Awards in Dollars Percentage of Awards

All Departmental Offices Awards $313,036,169 100.0%

Neither Minority-owned nor Women-owned $197,295,146 63.0%

Minority-owned or Women-owned3 $115,741,023 37.0%

Woman-owned $70,239,528 22.4%

Minority-owned4 $87,082,472 27.8%

Asian American5 $51,111,157 1

BlackAmerican $15,603,182 

HispanicAmerican $14,142,253 

NativeAmerican $7,459,165 

Other Minority6 $2,467,590 

*Contracting dollaramountsare based on Federal Procurement DataSystem (FPDS-ng) dataextracted December 7, 2018 for FY18 using thefollowing filters:

AwardingAgency Name: 20 Department of theTreasury | AwardingSub Agency Name: 2001 Departmental Offices, 2050 Internal RevenueSe

FundingAgency Name: 20 Department of Treasury | FundingSub Agency Name: 2001 Departmental O

3. Thetotalamount ofawards to minority women-owned businesses was $41,580,977. However,awards to businesses thatare both minority-and women-owned arecou

within Federal Procurement DataSystem (FPDS-ng) in allapplicableindividual minority-and women-owned individual categories. Therefore, to ensurethere was no duplica

counting of overlapping categories of race/ethnicityand gender, thetotal dollarsand percentages have been reduced to adjust for the $41,580,977.

4. Thesum of theaward dollars to businesses within the minority-owned sub-categories does notequal thetotal minority-owned award amount becauseseveralawards under t

minority categories were not identified in thereporting system as minority-owned businesses.

5. “Asian American” includes both SubcontinentAsian (Asian-Indian)American-owned businessesand Asian PacificAmerican-owned businesse

6. “Other minority” means those businesses designating “minority-owned” in theSystem forAward Management, but not designatingAsian American, BlackAmerican, Hispan

American, or NativeAmerican.

FY2018 Annual Report to Congress 9
TRENDS IN MINORITY-OWNED 

BUSINESS UTILIZATION

Utilization of minority-owned businesses

overall within Treasury Departmental Offices

has increased relativeto total spending. 

FY 2018,atotal of $87 million or 28 percent

of the total in contract obligations were 

awarded to minority-owned businesses 

(Figure 1).

Contract obligations to minority-owned

businesses by specific racialand ethnic

designation of the ownership for the five

most recent consecutive years are listed in 

Table 2.7

Table 2

Treasury Departmental Offices

Overall Contract Obligations bySpecific Racial orEthnic Minority Group*

Category FY 2018 FY 2017 FY 2016 FY 2015 FY 2014

Minority-owned

Businesses

$87 million

(28%)

$72 million

(24%)

$59 million

(18%)

$43 million

(17%)

$45 million

(18%)

Black-owned $16 million $14 million $14 million $14 million $16 million

Hispanic-owned $14 million $16 million $10 million $5 million $5 million

Asian-owned $51 million $42 million $24 million $22 million $18 million

American Indian-owned $7 million $1 million $1 million $ 4 million $4 million

Non-minority

Businesses

$226 million

(72%)

$230 million

(76%)

$274 million

(83%)

$ 205 million

(83%)

$203 million

(82%)

*Contracting dollaramountsare based on Federal Procurement DataSystem (FPDS-ng) dataextracted December 7, 2018 for FY18; dollarsand percentagesarerounded.

Minority-owned

$87M

Non-minority Owned

$226M

72%

28%

Figure 1

FY 2018 Treasury Departmental Offices

Overall Contract Obligations by MinorityStatus*

*Percentages have been

rounded to whole numbers

____________________ 

7. Some businesses haveself-identified in morethan onecategory; their contractamountsarereflected within all categories indicate

10 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
TRENDS IN WOMEN-OWNED 

BUSINESS UTILIZATION

From FY 2017 to FY 2018, there wasa decreasein thecontracts

awarded to women-owned businesses within Treasury 

Departmental Offices. In FY 2018,atotal of $70 million 

22 percent of thetotal contract obligations wereawarded to

women-owned businesses, including minority women (Figure 2).

Contract obligations to women-owned businesses, including

minority status, for the five most recent consecutiveyearsare

listed in Table 3. Although the percentageand dollaramounts 

contract obligations with minority-owned businesses decreased 

in FY 2018 compared to FY 2017, it remained amongthe highest

across the five-year period. It isalso noteworthy that, for t

second consecutiveyear, the percentageand dollaramounts

of contract obligations with minority women-owned business 

exceeded that with non-minority women-owned businesses.

Table 3

Treasury Departmental Offices

Overall Contract Obligations by Gender-specific Business*

Category FY 2018 FY 2017 FY 2016 FY 2015 FY 2014

Women-owned 

Businesses

$70 million

(22%)

$76 million

(25%)

$57 million

(17%)

$31 million

(12%)

$51 million

(21%)

Minority Women $42 million

(13%)

$42 million

(14%)

$15 million

(4%)

$13 million

(5%)

$11 million

(5%)

Non-minority Women $29 million

(9%)

$34 million

(11%)

$42 million

(13%)

$18 million

(7%)

$40 million

(16%)

Non-women-owned

Businesses

$243 million

(78%)

$226 million

(75%)

$276 million

(83%)

$220 million

(88%)

$197 million

(79%)

*Contracting dollaramountsare based on Federal Procurement DataSystem (FPDS-ng) dataextracted December 7, 2018 for FY18; Dollarsand percentagesarerounded.

Since OMWI first began trackingMWOB contractingin 2011, there has been an upward trajectoryinMWOB utilization with a notable 

increasein the past two years. In FY 2018, the percentageand dollaramounts ofminority-owned business contract obligations byTreasu

Departmental Offices was the highesteverand amongthe highest in contract obligations with women-owned businesses (Figure 3).

Figure 3

Treasury Departmental Offices MWOB Contracting Trends

Overall Percentages of Contract Obligations by Year

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

10

12

15

21

12

17

25

22

20

19 18 18 17

18

24

Minority-owned Women-owned 28

78%

13%

9%

Non-women

Owned $243M

Minority Women

 $42M

Non-minority

Women 

$29M

*Percentages have been

rounded to whole numbers

Figure 2

FY 2018 Treasury Departmental Offices

Overall Contract Obligations by Gender Categories*

FY2018 Annual Report to Congress 11
TRENDS IN MWOB SMALL 

BUSINESS UTILIZATION

The vast majority of minority-owned businesses 

and women-owned businesses (MWOB) in the

United Statesaresmall businesses with 98 percent

ofall MWOBsearning revenue under $1 million,

according to the most recently available census 

data. Consistent with the Dodd-FrankAct § 3

mandate to focus on minority-owned and womenowned businesses, therearestatutory goals

set by theSmall BusinessAdministration (SBA)

for small disadvantaged businesses (which are 

largely minority-owned)and women-owned small

businesses. 

In FY 2018, contract obligations to small businesses

by Treasury Departmental Offices comprised

49 percent of thevalue of contractsawarded,

exceeding the 35 percent statutory goal. Contra

obligations to small disadvantaged businesses 

represented 22 percent, morethan quadruplethe 5 percent

goal; similarly, contract obligations to women-owned small

businesses represented 15 percent, triplethe 5 percent goal

Table 4 and Figure 4).

Contract obligations to small minority-owned and women-owned

businesses (MWOB), including minority status,arelisted in Table 4.

Table 4

Treasury Departmental Offices

Overall Contract Obligations to Small MWOB*

Category FY 2018 FY2017 FY 2016 FY 2015 FY 2014

Total Contract Obligations

(regardless of size) $313 million $301 million $333 million $250 million $248 million

OverallSmall Businesses

Contract Obligations

$154 million

(49%)

$135 million

(45%)

$134 million

(40%)

$135 million

(54%)

$125 million

(51%)

Small Disadvantaged 

Businesses (SDB)**

$69 million 

(22%)***

$36 million 

(12%)

$42 million 

(13%)

$32 million 

(13%)

$25 million 

(14%)

Women-owned Small

Businesses

$47 million

(15%)

$70 million

(23%)

$51 million

(15%)

$25 million

(10%)

$44 million

(18%)

*Contracting dollaramountsare based on Federal Procurement DataSystem (FPDS-ng) dataextracted December 7, 2018 for FY18; Dollarsand percentagesareroun

**SDB is used in this contextasa proxy for minority-owned businesses; contracting includes overlap between categorie

***Small Disadvantaged Businesses(SDB) includes both Self-Certified Small Disadvantaged Businessesand -Small BusinessAdministration (SBA) Certified Small Disadvantaged Businesses.

8. Thecombined total ofawards to either women-owned small businesses or small disadvantaged businesses was $115,262,355. This includesawards totaling $8,446,649 

individual businesses that have overlapping classificationsas both women-owned small businessand disadvantaged small business. However, when calculating total contra

obligation dollarsand percentages for “Other” businesses, the overall contract obligations total ($313,036,169) was reduced by $106,815,706 (rather than $115,262,355)

to eliminate duplicatecounting of businesses with overlapping classifications. To accurately portray thereal value ofawards to women-owned small businessesand sma

disadvantaged businesses, Figure 4 includes the $8,446,649 overlap between classifications in both the“Woman-owned Small Businesses”and “Small Disadvantaged Businesses”

contract obligation classifications. For this reason, thetotal dollaramount does notequal $313 million and thetotal percentage does notequal 100% in Figure 4.

66%

15%

22%

Other

$206M

Women-owned Small

Businesses

$47M

Small

Disadvantaged

Businesses

$69M

*Percentages have been

rounded to whole numbers

Figure 4

FY 2018 Treasury Departmental Offices

Small MWOB Contract Obligations * 8

12 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
9. Refer to www.treasury.gov/about/organizational-structure/offices/Mgt/Pages/dcfo-osdbu-mp-top25.aspx.

MWOB PARTICIPATION IN SPECIFIC ACQUISITION CATEGORIES

Each year, listsare posted online of thetop acquisition categories, identified by North American Industry Classification System

(NAICS) codes, of contractsawarded by the Department of Treasury, Treasury Departmental Offices,and theindividual Treasury

bureaus.9Theaim is to encourage firms that provide productsand services in thosecategories to market their firms’ capabilities 

Treasury bureaus. In FY 2018, 91 percent ofall Treasury Departmental Offices contracts tendered for services, representing $2

million in spending. Thirty-seven percent of Departmental Offices servicecontract obligated award dollars wereawarded to minorityowned or women-owned businesses: 22 percent of servicecontract obligated award dollars went to women-owned businessesand

29 percent of servicecontract obligated award dollars went to minority-owned businesses.

Within Treasury Departmental Offices,approximately 75 percent of contractaward dollarsare madein seven NAICScodecategories

and minority-owned or women-owned business utilization is highestamong five of thosecategories. The highest utilization of minorityowned or women-owned businesses is in “Custom Computing ProgrammingService” (NAICS 541511), for $28 million (Table 5

FY2018 Annual Report to Congress 13
Total Departmental OfficeAnnual

Obligated Dollars $313,036,169

and processed 1,746 actions

NAICS Codes and Descriptions

541519 517110 541512

Other Computer 

Related Services

Wired 

Telecommunications 

Carriers

Computer Systems 

Design Services 

Unique Vendor Count 60 3 24

Award Category $ % $ % $ %

Total DO Awards in NAICS 63,732,604 20.4 57,698,808 18.4 31,674,765 10.1

Minority-owned or 

Women-owned10 24,704,719 38.8 0 0.0 21,067,573 66.5**

 • Women-owned 15,070,678 23.6 0 0 5,422,025 1

 • Minority-owned 10,016,852 15.7 0 0 21,079,938 

Asian American 5,275,502 8.3 0 0 17,217,658 

Black American (29,976) 0** 0 0 694,228

Hispanic American 114,256 0.2 0 0 3,168,052 

Native American 4,426,959 6.9 0 0

Other Minority 210,426 0.3 0 0

Neither Minority-owned 

nor Women-owned 39,027,885 61.2 57,698,808 100.0 10,607,192 33.5

*Contracting dollaramountsare based on Federal Procurement DataSystem (FPDS-ng) dataextracted December 7, 2018 for FY1

**Percentagesaregreater than100% or less than 0% dueto funding that is deobligated from contracts.

Table 5 

FY 2018 Treasury Departmental Offices (DO)Awards by Demographic Groups

in Dollarsand Percentage of DollarAwards in the DO Top Seven NAICS Codes*

10. Awards to businesses thatare both minority-and women-owned arecounted within theFederal Procurement DataSystem (FPDS-ng) in allapplicableindividual

minority-and women-owned individual categories. To ensurethere was no duplicatecounting of overlapping categories of race/ethnicityand gender, thetotal dollarsand

percentages have been reduced.

14 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
541511 493110 928120 541611

Custom Computer 

Programming Services

General Warehousing 

and Storage International Affairs

Administrative 

Management and 

General Management 

Consulting Services

15 1 215 47

$ % $ % $ % $ %

30,309,869 9.7 21,092,384 6.7 15,854,280 5.1 14,806,437 4.7

28,497,857 94.0 0 0 2,493,544 15.7 6,515,882 44.0

28,069,329 92.6 0 0 2,135,776 13.5 1,033,496 

22,809,910 75.3 0 0 426,385 2.7 6,500,636

22,747,669 75.1 0 0 0 0.0 4,102,731

0 0 0 0 (10,897) –0.1%** 1,282,02

62,241 0.2 0 0 424,381 2.7 1,805,0

0 0 0 0 12,901 0.1 0

0 0 0 0 0 0.0 2,281,298 1

1,812,012 6.0 21,092,384 100.0 13,360,736 84.3 8,290,555 56.0

 NAICS Codes and Descriptions

FY2018 Annual Report to Congress 15
GOOD FAITH EFFORT MANDATE

Thecontracts provision in the Dodd-FrankAct § 342 requires OMWIagencies to establish a procedureto evaluate whetheran

agency contractor has failed to makeagood faith effort to include minoritiesand women in their workforce. In accordance with t

mandateregarding the diversity of thecontractor’s workforce, theTreasury Departmental Offices OMWI, in collaboration with other

OMWIagencies, developed languagefor inclusion in Departmental Offices servicecontracts in excess of $150,000. The final ru

was published in theFederal Register on March 20, 201411 and, subsequently, this clause has been included in applicablecontracts.

The Department of Labor (DOL) Office of Federal Contract Compliance Programs (OFCCP) conducts diversity-related reviews on

asubset of contractorsacross thefederal government, including good faith effortassessments of contractor workforce diversity.

Treasury determined that reliance on OFCCP’s good faith effortassessmentsand findings would reduce overlapping reviewsand

leverage OFCCP’sexpertise. Utilizing OFCCP evaluation and investigation data, OMWI has developed and implemented a procedu

to determine whetherapplicable Departmental Offices contractors havefailed to makeagood faith effort to include minoritiesand

women in their workforce.

From OFCCP’sassessments, OMWI uses OFCCP’s binary (yes/no) findings of the fivecategories used to establish “good faith effort”:

1) hiring, 2) recruitment, 3) systemic discrimination, 4) salary,and 5) other. Avendor would fail to demonstrateagood faith effo

to achieve workforce diversity if thereisaviolation found in one or more of thesecategories:

• Hiring – failureto actively monitor the demographic data of new hiresand makean unbiased hiring decision

• Recruitment – failureto conductappropriate outreach and recruitmentactivities thatavoid excludingany specific group

• Systemic Discrimination – systematic discrimination againstany group

• Salary – indication thatanyagroup has been unfairly compensat

• Other – aviolation that does not fall into one of thecategories listed above.

If no violationsarefound in any of theareasassessed by OFFCCP, including thegood faith effort categories, thecontractor will

receivea Notice of Complianceto denotecompliance with all regulations. If theevaluated vendor is found to have one or mo

violations, OFCCP mayenter into an agreement with thecontractor to remedy theviolation within aset period of time, typically

6 months. Otherwise, OFCCP may issuea Consent Decree with thevendor by reachingasettlement with no admission of guil

Alternatively, OFCCP mayentera financialarrangement with thevendor to rectify identified violations. In thecasethataTreasu

Departmental Offices contractorevaluated by OFCCP does not receivea Notice of Compliance, OMWI willacceptas final thespecific

remedy conferred by OFCCP.

In addition to its regular review of federal contractors based on random sampling, OFCCP will conduct individual investigations in

responseto aspecificallegation of discrimination byafederal contractor that is reported to OFCCP. Avendor would befound 

violation if there was indication of discrimination based on color, national origin (Hispanic), race(American Indian/Alaskan,Asian/

Pacific, Black), religion, sex (female, male), veteran, disability, or “other.” In thecasethataTreasury Departmental Offices contract

is investigated by OFCCP, OMWI willacceptas final thespecific remedy conferred by OFCCP.

Treasury Departmental Offices had 246 contracts in FY 2018 that met therequirements foragood faith effort review. Of tho

contracts, there were 133 uniqueTreasury Departmental Offices contractors. Eighteen percent (24) of thesecontractors h

undergoneeither OFCCP comprehensivecomplianceevaluations or OFCCP investigations for discrimination in responseto a

specificallegation.

Thecomprehensive OFCCP complianceevaluation included 17 percent (22) of the 133 contractors. These 22 contractors represented

51 percent ($144 million out of $281 million in contracts) of theFY 2018 contract dollars obligated by Treasury Departmental Offices

for contracts that met thethreshold for good faith effort reviews. OFCCP evaluations for violations in the fivecategories showed th

91 percent (20 contractors) received a Notice of Compliance. Of thetwo contractors that did not receivea Notice of Compliance, o

11. Refer to http://www.gpo.gov/fdsys/pkg/FR-2014-03-20/html/2014-05846.html.

16 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
was cited forarecruitment violation ($5 million in contracts)and the other was cited foran Other violation ($1 million in contracts).

OFCCP ultimately conferred conciliation agreementsas theremedy for theseviolations.

OFCCP conducted investigations foreight reported allegations of discrimination, six percent of the 133 contractors ($40 million

in total contracts), Thereported allegationsagainst theeight contractors included discrimination against one or more of t

following: Hispanic, Black, religiously-affiliated, female, male, veteran, disabled employees, orareported allegation cited as “other

discrimination.” The outcomes of theseinvestigations resulted in no violations being confirme

ECONOMIC EMPOWERMENT

In addition to supporting the minority-owned and women-owned businesses through federal contracting, Treasury takesa

leadership role in supporting economic development in underserved communities through funding programs designed to support 

community investment and access to capital for small businesses. 

Community Development Financial Institutions Fund.Access to affordable financial productsand services isastaple

ofeconomically sound communities. Yet, one quarter ofAmerican householdsare unbanked (6.5 percent) or underbanked (18

percent)and rely on morecostly financial productsand services outside of the banking system.12 In recent years, thelack ofaccess

to capital investment for small businesses and other community development projects has led to increased need for alternative and 

reliablesources of financing. Mission-driven organizations called Community Development Financial Institutions (CDFIs) fill these

gaps by offeringaffordable financial productsand services that meet the unique needs ofeconomically underserved communities.

Through awardsand training, Treasury’s Community Development Financial Institutions Program (CDFI Program) invests in and

builds thecapacity of CDFIs,empowering them to grow,achieve organizational sustainability,and contributeto therevitalization of

their communities.

Sinceits creation in 1994, the CDFI Fund hasawarded over $2.3 billion in financialassistanceand technicalassistanceawards

through the CDFI Program. Through Healthy Food Financing InitiativeFinancialAssistance, the CDFI Fund provided nearly $1

million in awards to CDFIs, improving theaccess to healthy food options in low-incomecommunities. In FY 2018, 265 organizations

received morethan $188.7 million in awards, consisting of 222 financialassistanceand 43 technicalassistanceawards. Recipien

of theawards included 182 loan funds, 49 credit unions, 30 depository institutions/holding companies,and 4 venturecapital funds.

The Consolidated AppropriationsAct for Fiscal Year 2018 required that 10 percent of thefundsawarded by the CDFI Fund under

theappropriation “shall be used forawards that support investments that serve populations living in” Persistent Poverty Counties

(PPCs). PPCsare defined as counties where 20 percent or more of the population has lived in poverty over the past 30 years. The

counties can befound in the United States in both ruraland urban areas. For theFY 2018 round, 87 organizations received $18

million in awards specifically for investments in PPCs, which is in addition to the work that CDFIsalready do in PPCs. Historicall

past CDFI Program awardees haveinvested morethan $860 million in PPCs.

Small Business Lending Fund.Established by theSmall Business JobsAct of 2010 (theAct), theSmall Business Lending Fund

(SBLF) isafund specifically dedicated to providecapital to qualified community banksand community development loan funds

(CDLFs) in order to encouragesmall business lending. The purpose of theSBLF is to encouragecommunity-based banksand sma

businesses to work together, help createjobs,and promoteeconomic growth in communitiesacross the nation. TheAct defin

“small business lending”as business loans thatare(i) $10 million or less to businesses with $50 million or less in revenue,and (ii)

included in one of the following categories: 

• Commercialand industrial loans

• Owner-occupied nonfarm, nonresidential realestateloans

• Loans to financeagricultural production and other loans to farmers

• Loans secured by farmland

12. https://www.fdic.gov/householdsurvey/2017/2017report.pdf

FY2018 Annual Report to Congress 17
Treasury invested over $4.0 billion in 332 institutions through theSBLF program. Theseamounts includeinvestments of $3.9 billi

in 281 community banksand $104 million in 51 development loan funds. Collectively, theseinstitutions operatein over 3,0

locationsacross 47 statesand the District of Columbia. Through theend of June 2018 (thethird quarter of FY 2018), institutio

participating in SBLF have madeimportant progress in increasing their small business lending, helping to support small businesses

and localeconomiesacross the nation.Sincethe program’s inception, thetotal increasein small business lending reported by

currentand formerSBLF participants is $19.0 billion over the 2010 baseline ofapproximately $35 billion.

Increases in small business lendingare widespread among remainingSBLF participants. Through June 2018,all currently

participating community banksand 41 of the 46 CDLFs (or 89 percent) haveincreased their small business lending. In additio

47 of the 54 currentSBLF participants (or 87 percent) haveincreased their small business lending by 10 percent or more.

Treasury does not collect racial/ethnic or gender information on theSBLF participant’s borrowers. However, in asurvey ofSB

participants for theyearended June 30, 2014 (the most recentavailable), 92 percent of participants reported engaging in outreach

oradvertisingactivities targeting women, veteran, or minority communities. In total, 83 percent ofSBLF participants reported th

theyare members of, or participatein, community organizationsand/or tradeassociations that target women, veteran, or minority

communities; 59 percent reported using paid advertisement or notices in print, radio, orelectronic mediato target women, veteran,

or minority communities;and, 52 percent indicated that they distributed marketing materials targeting women, veteran, or minority

communities. In total, participants reported expenditures of $15.4 million associated with small business-related outreach activiti

and allocated approximately $5.0 million (32 percent) to activities targeting women, veteran, or minority communities.

18 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
INITIATIVES & 

ACCOMPLISHMENTS 

ACCOUNTABILITY

Leadership Monitoring. OMWI develops detailed weekly reports of MWOB contracting for thesenior leadership and staff.

Each bureau’s small businessand MWOB contracting performancealso is reported to thesenior leadership in performancereview

sessions with Bureau Heads. TheSenior ProcurementExecutive uses monthly TreasuryAcquisition Council meetings with Bure

Chief Procurement Officers to review and discuss thestatus of Treasury’s overall small business contracting performanceagainst its

goals,and examinethe MWOB contracting rate.

Performance Elements. The performancecriteriafor the Chief Procurement Officers in each Treasury bureau includeelements

pertaining to theachievement of small business contracting goalsand thefair utilization of minorityand women-owned businesses,

without regard to size.At minimum, Chief Procurement Officersarerequired to demonstratethefollowing:

 Small Business Goals:Actively promoteand supportearly market research and acquisition planningactivities to foster

business strategies that maximizesmall business contracting opportunitiesand small business setasides with overall

small business, small disadvantaged business, service disabled veteran owned small business, women-owned small

businessand HUBZoneSmall business—when theresearch and planning indicatethat thesmall business community is

capable of performing the workatareasonablecost or price

Minority-Owned and Women-Owned Business (MWOB) Utilization:Actively supportefforts to ensure

fair inclusion and utilization of minority-owned and women-owned businesses, without regard to size, in contracting

opportunities to the maximum extent possible. Develop and implement strategies for diversification of thevendor base,

includingearlyacquisition planning, regular procurement forecasting, strategic market research,and outreach.

Recognition. OMWI, in collaboration with the Office ofSmall Disadvantaged Business Utilization, holdsan annualawards

recognition program for outstanding performancein Small, Minority-owned,and Women-owned Businesses (SMWOB) contracting,

which providesan additionalachievement incentiveto theacquisition community. Awards includerecognition to bureaus th

achievethe highest percentages of contract obligations with minority-and women-owned businesses. For FY 2018, thetwo leading

bureaus with total procurement spending in excess of $100 million expended 32 percent of their contracting dollars with minorityowned businesses (Office of the Comptroller of the Currency)and 36 percent with women-owned businesses (Bureau of Fiscal

Services). It is worth noting that two other bureaus with total procurement spending under $100 million expended 49 percent 

their contracting dollars with minority-owned businesses (Alcoholand Tobacco Taxand Trade Bureau)and 60 percent with womenowned businesses (Community Development Financial Institutions Fund).

OUTREACH 

Procurement Contracting (FAR Contracting). Treasuryachieved itseffectiveengagement with minority-owned and

women-owned businesses through its substantialefforts to reach small businesses. Treasuryemploys multiplestrategiesa

communication channels to reach candidatevendors, including:

• Posting requests for proposals on theFederal Business Opportunities websiteat www.fbo.gov

• Conducting multiplevendor outreach sessions throughout theyear

• Providing resources on theTreasury Office ofSmalland Disadvantaged Business Utilization

website at www.treasury.gov/osdbu and on the OMWI homepageat

www.treasury.gov/about/organizational-structure/offices/Pages/omwi.aspx of www.treasury.gov

• Extending the use of techniques proven effectivein engaging thesmall business community to the broader industryaudience,

including minority-owned and women-owned firms

FY2018 Annual Report to Congress 19
• Reviewing vendorengagement strategyas part ofacquisition planning for high-impactacquisitions

• Conducting strategic reviews of targeted acquisitions to ensurethatacquisition planning includesadequateand appropriate

industry outreach and communications consistent with law, regulation,and Treasury policy.

• Reviewing vendorengagement strategyas part ofacquisition planning for high-impactacquisitions

• Conducting strategic reviews of targeted acquisitions to ensurethatacquisition planning includesadequateand appropriate

industry outreach and communications consistent with law, regulation,and Treasury policy

Throughout FY 2018, Treasury Office ofSmall Disadvantaged Business Utilization hosted ninevendor outreach sessions, including

4 specialized sessionsexclusively for 1) subcontractingand mentor/protégé opportunities with Treasury primecontractors, 2)

women-owned small businesses, 3) historically underutilized business zones (HUBZone)and service-disabled veteran-owned

businesses,and 4) vendors interested in information technology opportunities. Participation in thesesessions nearly tripled 

FY 2018 compared to FY 2017.Approximately 2,315 vendors registered to participatein thesesessions (850 in FY 2017), including

729 representing minority-owned businesses (240 in FY 2017)and 868 representing women-owned businesses (341 in FY 2017).

Participating vendors received individual counseling from Treasury procurement specialists from theindividual bureaus to learn

about upcoming opportunities and doing business with Treasury. 

In October 2017, Treasury took thelead in hosting the ChallengeHER program,a national training initiative designed to train womenowned small business owners on the best practices for workingas federal contractors,and the uniquefederal programsavailable

to them. In responseto Executive Order 13157, “Increasing Opportunities for Women-owned Small Businesses,” thisevent was

conducted in partnership with the U.S.Small BusinessAdministration (SBA), Women Impacting Public Policy (WIPP),and American

Express OPEN. Treasury delivered free workshops, mentoring,and directaccess to Treasuryand 26 other Federalagency partner

educating over 700 women-owned small businesses. Workshops included: TheFuture of Women-owned Small Business (WOS

in Federal Contracting, Working with Agenciesand Primes,and Leveraging Your WOSB Certification. There wasalso a busine

matchmaking session with over 253 small businesses that met with Treasury, federalagency partners, Treasury primecontractors,

and national and local resource partners. 

In March 2018, Treasury supported the Montgomery County Chamber of Commerce GovConNet Conference. This signatureeve

hosts over 1,000 regionaland federal businessand government leaders. It provided small businesses with an interactive overvi

of “How to Do Business with Treasury.” It served asacapacity building program, primarily focused on educating small businesses on

thecategory managementand best-in-class contracting vehicles,acquisition lifecycle,and business matchmaking. Content of so

of the breakout sessions included: success strategies for 8(a) graduating firms, new rules pertaining to mentor/protégés, limitations

on subcontracting, creating strong capabilities statements,and set-asides for GSAschedules contracting.

In August 2018, Treasury joined with theseven other federal OMWIagencies to conduct its second Joint OMWI TechnicalAssistance

event, bringing together minority-owned businesses to supply them with thetools, tactics,and resources to becomesuccessful

federal contractors.Entitled Smart Contacts,Smart Contracts, the program included proposal writingand opportunities for

networking. Other highlights of theevent included a panel on Doing Business with the OMWIAgencies, local resource partner

panels,and ajoint OMWI resourcetable. Held on thecampus of the University of Texas in San Antonio and in collaboration with the

San Antonio Minority Business DevelopmentAgency Business Center in San Antonio, theeventattracted 199 participants.

Treasuryalso participated in several small business outreach events sponsored bySBA, other federalagencies, local government,

members of Congress,and external organizations that representSMWOB, servingas panelists, speakers, facilitators, planning

committee members,and exhibitors. Thoseeventsarelisted below:

• Montgomery County Chamber of Commerce GovConNet Pathway to Growth Procurement Conference – Rockville, MD

• Twenty-eighth Annual Government Procurement Conference – Washington, DC

• DC Procurement TechnicalAssistance Center (PTAC), 2018 Small BusinessSummit – Washington, DC.

• American Expressat theSummit forSuccess – Washington, DC

20 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
• HUD/Service Disabled Veteran Owned Small Business Outreach – Veterans Connect forSuccess – Washington, DC

• U.S. Women’s Chamber of Commercefalland springevents – Arlington,VA

• 1,000th Veteran’s Institute Program Graduation, Montgomery County Chamber of Commerce – Potomac, MD

• U.S. ChamberSummit – FallEvent – Washington, DC

• Department of Homeland Security/TSA-Small Business Industry Day – Arlington,VA

• 2018 Historically Black Collegeand Universities Week ConferenceVolunteer – Washington, DC

• Montgomery County Women’s Business Center (Summerand WinterEvents) – Rockville, MD

• CelebrAsian Conference – Rockville, MD

• Women of Prince George’s County 8th Annual Conference – Lanham, MD

• Government Technology & Services Coalition – Arlington,VA

• American Council for Technologyand IndustryAdvisory CouncilSmall BusinessAllianceStraight Talk – Washington, DC

• GovernmentServicesAdministration & Environmental Protection Agency – Doing Business with Department of Treasury – webinar

• Department of Defense Mentor Protégé Conference – Orlando, FL

• OMWI Joint TechnicalAssistanceEvent – San Antonio, TX

• National MinoritySupplier Diversity Council Conference – Detroit, MI

• Government Procurement Conference – Washington DC

• Women’s Power Conference – Bethesda, MD

• Congresswomen SheilaJackson-Lee Conference – Washington DC

Financial Agent Authority (Non-FAR). In addition to the procurement of goodsand services through processes governed 

theFederalAcquisition Regulation (FAR), Treasuryalso has financialagentauthority (FAA). Uniqueto theTreasuryand granted 

the National BankActs of 1863 and 1864, theFAAallows Treasury to designate financial institutions to providecertain services on the

government’s behalf. These firmsact on behalf of thegovernment during the performance of their duties underan agent-princip

relationship with Treasury. Financialagentsalso havethe fiduciary obligation to protect theinterests of the United State

During the height of the financial crisis that began in 2008, Treasury madegreater use of its FAAauthority in the management of

theTroubled Asset Recovery Program (TARP),engagingexternal broker-dealersand asset managers, including minority-owned and

women-owned financial services firms. With theconclusion of theTARP program, FAA opportunitiesare now limited.

In FY 2018, OMWIand the Bureau of FiscalServices Office of Collections collaborated to launch a new program that facilitates

theinclusion ofa broader segment of the financial institution community to serveas Treasury financialagents. Through this new

program, large banks that currently serveas financialagents to perform revenuecollectionsand depositsactivities on behalf of

Treasury can establish mentor-protégéagreements with small financial institutions (with assets under $2 billion).Such relationships

will providetechnicalassistanceto participating protégéinstitutions to build their capacity to serveas conduits for financialagent

work.After months of conceptualizingand planning, this first-of-its-kind program was officially inaugurated in August 2018 when the

first financialagent mentor protégéagreement was signed between Citi Bankand Industrial Bank. In September 2018,aFinancial

Agent Mentor ProtégéSummit was held, hosted by theFederal Reserve Bank of Kansas City, to introduceand promotethe program

to small financial institutions that serve minority communitiesacross thecountry.

Small Business Mentor-Protégé Program. Treasury’sSmall Business Mentor-Protégé program is designed to motivate

and encouragelarge firms to assist small businesses, including small disadvantaged businesses (which arelargely minorityowned businesses), women-owned small businesses, businesses in Historically Underutilized Business Zones (HUBZone),and

service-disabled veteran-owned businesses. The program is also designed to improve the performance of Treasury contracts and 

FY2018 Annual Report to Congress 21
subcontracts, foster long-term business relationships between theseentitiesand Treasury primecontractors,and increasethe

overall number of small businesses that receiveTreasury contractand subcontractawards. In the first half of FY 2018, there weresix

Treasury mentor-protégéagreements in place. Among the protégés, three weresmall businesses, two were women-owned sma

businesses,and one wasa HUBZone/Service-Disabled Veteran-Owned Business. However, followingarealignment of the progr

with theSmall BusinessAdministration (SBA),SBA hasassumed the management of severalagency mentor-protege programs going

forward, including Treasury’s.

Minority Business Leaders.Secretary Mnuchin hosted an event that brought togetherabout fiftyAfrican American leaders from

several business sectors. Theevent was designed asan opportunity for informal conversationsand networkingamong thegro

and with theSecretary. Participants included African American leaders from nationaland international corporations in vario

industries, minority-owned community banks, professionalassociations in the financial industry, community organizationsand

foundations,and economics departments in historically Black collegesand universities.

CHALLENGES 

Since OMWI first began tracking MWOB contracting in 2011, there has been an upward trajectory in MWOB utilization within

Treasury Departmental Offices. In FY 2018, the percentageand dollaramounts of minority-owned business contract obligations were

the highestever;and among the highest percentagesand dollaramounts in contract obligations with women-owned businesses.

During FY 2018, theseresults wereachieved without mandated goals (other than for specific small business categories)and despite

greater emphasis on category management approaches.

Category management strategies have been employed by the government-wide acquisition community to streamline and

manage entire categories of spending across government as a single enterprise. The purpose of category management is to 

better leverage the government’s buying power, reduce unnecessary contract duplication, increase efficiency, and deliver

more value and savings. Safeguards have been put in place to promote small business utilization within the context of category

management. For example, small business utilization is one of the five key performance indicators of the category manageme

initiative, and each of the ten Common Spend Category strategic plans must include small business utilization. No safeguards are

mandated with regard to the utilization of MWOB businesses (other than specific small business categories). As a result, there

were concerns about the potential for more limited use of MWOB businesses resulting from the creation of new acquisition

vehicles, such as “Best in Class” contract vehicles for mandatory sourcing to specified pools of businesses that contain only

a small number of MWOB vendors. However, after the implementation of category management strategies, there was 

recorded change in MWOB utilization in FY 2018, the first year of implementation. OMWI will continue monitoring for possible

changes in MWOB utilization resulting from category management.

22 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
WORKFORCE DIVERSITY 

& INCLUSION 

WORKFORCE DEMOGRAPHY 

All Treasury Departmental Officesemployees play important roles in thefulfillment of the overall Treasury mission. Allemploye

bring perspectives to their work thatareinfluenced by their backgrounds, culture,and experiences. From analyses of theracia

ethnic,and gender diversity within Treasury Departmental Offices, OMWI has developed workforce profiles, trends, benchmark

comparisons, hiringand attrition rates, pipeline profiles,and demographic differentiation at upperand senior levelsand in

mission-critical occupations in FY 2018.13 However, justas importantly, OMWI has compiled survey resultsand benchma

comparisons ofemployee perceptions of theTreasury Departmental Offices workplaceenvironment relativeto inclusion. Th

comprehensiveexamination informs therecommendations for the work of OMWI going forward.

RACE, ETHNIC AND GENDER PROFILES

Thetotal Treasury-wide workforceacrossall bureausand the Departmental Offices in FY 2018 was 91,179 permanentemployees

(compared to 96,892 in FY 2017). TheTreasury Departmental Offices permanent workforcerepresentsabout 2 percent of thetot

Treasury-wide workforce. As of theclose of FY 2018, Treasury Departmental Offices had 1,788 permanentemployees,a decrea

of 78 (-4 percent net change) from FY 2017 (1,866). Permanentemployees comprised 95 percentand temporaryemploye

(including non-careeremployees) comprised 5 percent of thetotal DO workforce.

Morethan athird (37 percent) of Treasury Departmental Offices permanentemployeesacrossall gradelevelsareracial orethnic

minorities. The percentage of minorities remained constant from theFY 2017 percentage of 37 percent. Hispanic, Black,and A

representation remained unchanged in FY 2018 compared to FY 2017 at 5 percent, 22 percentand 9 percent, respectively (Figure 5).

13. Analyses do not includetheracialethnic categories, Native Hawaiian or Other Pacific Islanders,American Indian orAlaskan Natives, or Two or More Races becauset

representation ofeach of thesegroups is zero to less than one percent of thetotal Departmental Offices permanent workforce.

Other

White Black

Asian

Hispanic

*Percentages have been rounded to whole numbers

63% 22%

9%

1%

5%

Figure 5

FY 2018 Treasury Departmental Offices

Total Permanent Workforce by Race/Ethnicity

FY2018 Annual Report to Congress 23
The percentages ofemployees by gender in Treasury Departmental Offices in FY 2017 remained similar to FY 2016, with a 1 percent

decrease of women and a 1 percent increase of men. (Figure 6)

BENCHMARK COMPARISONS

To assess therelativestatus of the diversity profile ofTreasury Departmental Offices, theTreasury Departmental Offices workforce was

compared with the federal government-wide workforce (FWF), Treasury-wide workforce (TWF), Civilian Labor Force (CLF), and the

Relevant Civilian Labor Force for Departmental Offices (DO/RCLF) by race/ethnicity and gender participation.14 Table 6 depicts t

comparison of theTreasury Departmental Offices total permanent workforcefor FY 2018 with the demography of these benchmarks.

Men

56% 44%

Women

*Percentages have been rounded to whole numbers

Figure 6

FY 2018 Treasury Departmental Offices

Total Permanent Workforce by Gender

14. For the purpose of thisanalysis, Relevant Civilian Labor Force(RCLF) refers to the Civilian Labor Force(CLF) datathatare directly comparableto the main occupatio

in Treasury Departmental Offices.

24 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
Table 6

FY 2018 Treasury Departmental Offices

Permanent Workforce Demography Compared to Federal Government, Treasury-wide, Civilian Labor Forceand the Departmental

Offices Relevant Civilian Labor Force Demography*

Demographic 

Groups

Treasury

Departmental 

Offices**

Federal

Government

Workforce 

(FWF)***

Treasury-wide

Workforce 

(TWF)

Civilian 

Labor Force 

(CLF)

Relevant 

Civilian Labor 

Force 

(DO/RCLF)

Men 56% 57% 38% 52% 53%

Women 44% 43% 62% 48% 47%

Hispanic Men 3% 5% 4% 5% 3%

Hispanic Women 2% 4% 8% 5% 4%

White Men 39% 39% 24% 38% 42%

White Women 24% 25% 29% 34% 35%

Black Men 8% 8% 7% 5% 4%

Black Women 14% 11% 20% 7% 6%

Asian Men 6% 4% 3% 2% 3%

Asian Women 3% 3% 3% 2% 3%

*Percentages have been rounded to whole numbe

**Table 6 does not includetheracialethnic categories, Native Hawaiian or Other Pacific Islanders,American Indian orAlaskan Natives, or Two or More Races that combined total

approximately one percent of thetotal Departmental Offices permanent workforce.

***Federal Workforce datais derived from the OPM FederalEmployment Reports,Executive Branch Employment by Genderand Race/National Origin,September 2006-September

2017 (https://www.opm.gov/policy-data-oversight/data-analysis-documentation/federal-employment-reports/reports-publications/executive-branch-employment-by-genderand-racenational-origin/)

Across thefour benchmarks (FWF, TWF, CLF, DO/RCLF), theTreasury Departmental Offices representation of women overall is lower

with theexception of theFWF. But, therepresentation of White women is loweracrossall thefour benchmarks. Therepresentati

of White men isequal to theFWF, greater than theTWF, slightly higher than the CLF,and below the DO/RCLF.

Among minority groups, therepresentation of Hispanic men is lower compared to theFWF, TWF, CLF,and equal to the DO/RCLF.

Therepresentation of Hispanic women is lower compared to each of thefour benchmarks. Therepresentation of Black men 

equal to or higher than each of thefour benchmarks;and therepresentation of Black women isalso higheracross three of thefour

benchmarks, with theexception being theTWF. Therepresentation of both Asian men and Asian women is higher than each of t

four benchmarks.

FY2018 Annual Report to Congress 25
SENIOR MANAGEMENT

Consistent with theEEOC definition of senior managementas Federal GeneralSchedule(GS) 15 and above, theTreasury

Departmental Offices’ focus has been oversightand monitoring of recruitment/outreach, hiring, professional development,and

attrition in GS-15 and SES positions. Treasury Departmental Officesalso tracked and monitored theracial/ethnicand gend

representation of the GS-13-14 gradelevel workforce, which can serveas the pipelinefor senior management. Although the

are no specific goals for demographic representation by race/ethnicityand gender, comparison to thetotal Treasury Departmental

Offices permanent workforcerepresentation providesageneral benchmark for therelativeinclusion by group at upperand senior

management levels (Table 7)

Table 7

Permanent FY 2017 Treasury Departmental Offices (DO) Workforce by Upper Management Grade Groupings

Compared to theTotal Treasury DO Workforce*

Demographic 

Groups

Total 

Treasury DO 

Workforce

Treasury 

DO SES

Treasury 

DO GS-15

Treasury 

DO GS-14

Treasury 

DO GS-13

Treasury DO

GS-12 – below

Men 56% 73% 61% 55% 51% 42%

Women 44% 27% 39% 45% 49% 58%

Hispanic 5% 2% 3% 4% 6% 8%

White 64% 86% 83% 61% 57% 36%

Black 21% 5% 7% 20% 26% 47%

Asian 9% 7% 6% 14% 9% 8%

Other 1% 0% 1% 1% 1% 1%

*Percentages have been rounded to whole numbers

Permanent Positions. For FY 2018, therepresentation ofeach minority group and women in permanent GS-15 and SESlevel

positionsare below therepresentation within thetotal Treasury Departmental Offices permanent workforce. It should be noted th

thereare no civilian labor force datacomparableto SESlevel positions.

Minorities represent 37 percent of thetotal Treasury Departmental Offices permanent workforce, but represent 17 percent

of the permanent workforceat the GS 15 leveland 14 percent of the permanent workforceat theSESlevel position. Minority

representation at the GS-15 and SESlevel remain unchanged compared to FY 2017. Minority representation at the GS 14 (39

percent), GS 13 (42 percent),and GS 12-below (64 percent) isabovetheir overall representation in the permanent workforce.

Women represent 44 percent of thetotal Treasury Departmental Offices permanent workforce, comprising 39 percent of the

permanent GS 15 level positionsand 27 percent of the permanentSES positions. Therepresentation of the GS 15 level decreas

by 2 percent compared to FY 2017 (41 percent); but remained unchanged in theSESlevel. Therepresentation of women at the 

14 level (45 percent), GS 13 (49 percent)and GS 12- below (58 percent) isabovetheir representation in thetotal workforce.

Presidentially Appointed Positions. In FY 2018, two women wereamong the highest ranking Presidentiallyappoint

positions in Treasury Departmental Offices, theTreasurer of the United Statesand the Undersecretary of the Office of Terrorism and

Financial Intelligence. Appointed positionsare not included by theEqualEmployment Opportunity Commission in calculations 

the permanent workforcecensus.

26 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
ALL GRADE GROUPINGS

Acomparison of therepresentation by genderand minority group statusacrossall gradegroups within theTreasury Departmental

Offices Permanent Workforceshows thegreatest number of women and minorityemployeesarein GS-12 and lower positions

(Figures 7 and 8).

Figure 7

FY 2018 Treasury Departmental Offices

Permanent Workforce Grade Comparison by Gender

Figure 8

FY 2018 Treasury Departmental Offices

Permanent Workforce Grade Comparison by MinorityStatus

58%

42%

GS 12 & below GS-13 – 15

Men

Women

SES

44%

56%

27%

73%

0%

80%

60%

40%

20%

White

Minority

62%

36%

GS 12 & below GS-13 – 15 SES

32%

68%

14%

86%

80%

100%

60%

40%

20%

0%

FY2018 Annual Report to Congress 27
HIRING AND ATTRITION 

Hiring. The hiring rates for genderand ethnic groups within the permanent workforce werecompared overa fiveyear period

(FY 2014 through FY 2018). Compared to theaverage hiring rates foreach group in the preceding four years,a notably small

percentage of minorities (Hispanics, Blacks,and Asians) were hired in FY 2018. For Hispanics, Blacks,and Asians, the hiring rates

were 5 percent, 11 percent,and 7 percent in FY 2018 compared to theaverages over the preceding four years (6.5 percent, 15.5

percent,and 13 percent, respectively). However, the hiring rates by gender werethesamein FY 2018 compared to theaverage over

the preceding four years (Table 8).

Table 8

Treasury Departmental Offices

New HireTrends of Permanent Workforce by Percentage ofEmployees Hired*

Fiscal year Men Women Hispanic White Black Asians 

2014 59% 41% 6% 70% 11% 12%

2015 56% 44% 6% 63% 16% 15%

2016 53% 47% 7% 58% 20% 12%

2017 63% 37% 7% 64% 15% 13%

2018 58% 42% 5% 75% 11% 7%

*Percentages have been rounded to whole numbers

Attrition. Theattrition ratesamong genderand ethnic groups within the permanent workforce werecompared overa five

year period (FY 2014 through FY 2018). Compared to theaverageattrition rates foreach respectivegroup in the preceding four

years,attrition was higher in FY 2018 for men, Hispanics,and Blackemployeesand lower in FY 2018 for women, White,and Asian

employees. For men, Hispanics,and Blackemployees, theattrition rates were 56 percent, 7 percent,and 17 percent in FY 2018,

compared to theaverages over the preceding four years (53 percent, 4 percent,and 16 percent, respectively). For women, White,

and Asian employees, theattrition rates were 44 percent, 64 percent,and 10 percent in FY 2018, compared to theaverages over the

preceding four years (47 percent, 68 percent,and 11 percent, respectively) (Table 9).

Table 9

Treasury Departmental OfficesAttrition Analysis:

Percentage Breakout by Genderand Race/Ethnicity*

Fiscal year Men Women Hispanic White Black Asians 

% total leaving % of total leaving

2014 47% 53% 4% 69% 15% 11%

2015 49% 51% 3% 70% 16% 10%

2016 56% 44% 2% 68% 18% 12%

2017 60% 40% 7% 64% 16% 12%

2018 56% 44% 7% 64% 17% 10%

*Percentages have been rounded to whole numbers

Attrition by Type. In FY 2018, there wasan attrition of 225 employees (compared to 252 employees in FY 2017). Areview 

separations by typereveals that resignationsand transfers represent 82 percent of theattrition of Treasury Departmental Offices

workforce(Table 10).

28 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
Table 10

FY 2018 Treasury Departmental Offices

Attrition by Typeand Demographic Group*

Demographic Group # Resignations # Retirements # Transfers # Deaths % Total

Men 58 20 48 0 56%

Women 37 17 43 2 44%

Hispanics 7 1 7 0 7%

Whites 66 32 46 0 64%

Blacks 12 4 21 1 17%

Asians 8 0 14 1 10%

Other 2 0 3 0 2%

Total Attrition 95 37 91 2 225

Percentages 42% 16% 40% 1% 100%

*Percentages have been rounded to whole numbers

Of thefour categories ofattrition,all groups were morelikely to resign or transfer in FY 2018.Amongall groups, Blackand Asian

employees separated most from transfers than from retirement or resignation, with transfers representing 55% and 61% of their

attrition, respectively. Overall,attrition by race/ethnicityand gender was generally proportional to their overall representation within

theTreasury Departmental Offices workforce. Whitesaccounted for 64 percent (144) of totalattrition (Whiteemployees represe

63 percent of the Departmental Offices workforce). Minoritiesaccounted forapproximately 36 percent (81) of thetotalattriti

(minorityemployees represent 37 percent of the Departmental Offices workforce).

Net Attrition of Minority Employees. Changein minority representation dueto thecombination of hiresand separati

rates werecompared across the past five fiscal years (FY 2014 through 2018), resulting in a netattrition rate of -3 percent, 7 percent,

10 percent, 0 percent,and –11 percent, respectively (Table 11).

Table 11

Treasury Departmental Offices

NetAttrition of MinorityEmployees*

Workforce Demographics 2014 2015 2016 2017 2018

Minority Rate of Hire 28% 37% 42% 36% 25%

Minority Rate ofAttrition 31% 30% 32% 36% 36%

Net –3% 7% 10% 0% –11%

*Percentages have been rounded to whole numbers

Net Attrition Women Employees. Changein therepresentation among women employees dueto thecombination of hires

and separation rates werecompared across the past five fiscal years (FY 2014 through FY 2018), resulting in a netattrition rate of

–9 percent, –7 percent, 3 percent, –3 percent,and –2 percent, respectively (Table 12).

Table 12

Treasury Departmental Offices

NetAttrition of Women Employees*

Workforce Demographics 2014 2015 2016 2017 2018

Minority Rate of Hire 45% 44% 47% 37% 42%

Minority Rate ofAttrition 54% 51% 44% 40% 44%

Net –9% –7% 3% –3% –2%

*Percentages have been rounded to whole numbers

FY2018 Annual Report to Congress 29
MISSION CRITICAL OCCUPATIONS TRENDS BY RACE/ETHNICITY AND GENDER

Within Treasury Departmental Offices (DO), thereare five occupational series thatareregarded as critical to supporting the mission

and vision of Treasury. Theyare: Economist, GeneralAttorney, FinancialAnalyst, Information TechnologySpecialist,and Intellig

Analysts. In this section, comparisonsare made between the participation rates of theracial/ethnicand gender representatio

within each of these occupations in Treasury Departmental Offices permanent workforcefrom FY 2014 through FY 2018, compared

to Occupational Civilian Labor Force(OCLF) data. 15

a. Economist: Trends within theEconomist (GS-0110) occupational series revealaconsistently lower representation of Hispanics

and Blacks when compared to their OCLFacross the fiveyear period from FY 2014 through FY 2018. Italso is strikingto notethat 

Hispanic women have been hired in this occupation in thelast fiveyears. (Table 13)

Table 13

Treasury Departmental Offices

EconomistSeries Trends: PercentEmployment by Race/Ethnicityand Gend

Fiscal 

Year

% Hispanic % White % Black % Asian % Total

M W M W M W M W

FY 2014 1.06 0 57.98 31.38 0.53 0 5.32 3.72 100

FY 2015 2.02 0 56.06 29.29 1.01 0.51 7.58 3.54 100

FY 2016 2.46 0 58.62 25.12 0.99 0.49 8.89 3.45 100

FY 2017 1.97 0 57.64 26.11 0.99 0.49 6.40 6.40 100

FY 2018 1.68 0 57.54 27.37 1.12 0 5.59 6.70 100

OCLF 3.34 1.85 55.78 25.20 2.84 2.66 4.46 3.02 100

Key: Highlighted cell denotes that the percentageis below the OCLF;M-Men, W-Women.

b. General Attorney: In the GeneralAttorney(GS-0905) occupationalseries, trendsreveal thatmen continueto represent below their

respective OCLFrates duringa fiveyear period fromFY 2014 through FY 2018, with theexception ofAsianmen. Overall,all femalegrou

and Asianmalesarerepresented at orabovetheir respective OCLFrates(Table 14).

Table 14

Treasury Departmental Offices

GeneralAttorneySeries Trends: PercentEmployment by Race/Ethnicityand Gender

Fiscal 

Year

% Hispanic % White % Black % Asian % Total

M W M W M W M W

FY 2014 0.97 1.94 53.40 32.04 0.97 2.91 0.97 5.83 100

FY 2015 0.93 1.85 52.78 32.41 0.93 2.78 1.85 5.56 100

FY 2016 0.87 2.61 50.43 33.91 1.74 2.61 1.74 4.36 100

FY 2017 0.93 2.80 55.14 31.78 0.93 2.80 1.87 1.87 100

FY 2018 0.91 2.73 54.55 30.00 0.91 2.73 2.73 3.64 100

OCLF 2.52 1.85 59.68 26.68 2.13 2.60 1.82 1.74 100

Key: Highlighted cell denotes that the percentageis below the OCLF;M-Men, W-Women.

15 The OCLF, derived from thecensus, is the benchmark for thesegments of society for theapplicant pool. It includes those who areemployed or seekingemployment within 

specific occupation who are 18 years ofage or older,excluding the militaryand taking citizenship into consideration.

30 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
c. Information Technology (IT) Specialist: In theITSpecialist (GS-2210) occupational series, trends reveal that representation

of HispanicsandWhites have been substantially below the OCLFrateacross the fiveyear period from FY 2013 through FY 2017, while

Blacksand Asians have been represented consistently wellabovethe OCLFratein that sametime period. (Table 15)

Table 15

Treasury Departmental Offices

Information TechnologySpecialistSeries Trends: PercentEmployment by Race/Ethnicityand Gender

Fiscal 

Year

% Hispanic % White % Black % Asian % Total

M W M W M W M W

FY 2014 1.46 0.49 44.39 12.20 14.15 7.80 12.68 4.88 100

FY 2015 2.17 0.87 43.04 11.74 14.78 6.96 13.91 4.78 100

FY 2016 3.32 1.87 36.90 12.55 13.28 7.01 16.97 5.54 100

FY 2017 3.19 1.42 36.52 11.70 12.41 6.74 18.09 6.74 100

FY 2018 3.07 1.53 40.23 11.11 11.88 6.13 17.24 5.75 100

OCLF 5.39 2.17 52.21 20.89 6.61 4.50 5.14 1.55 100

Key: Highlighted cell denotes that the percentageis below the OCLF;M-Men, W-Women.

d. Financial Analyst: Trends within theFinancialAnalyst (GS-1160) occupational seriesacrossa fiveyear period from FY 2014

through FY 2018 revealaconsistently lower than expected participation ratefor Hispanics women, White men,and Asian men

and women when compared to their OCLF participation rate. (Table 16)

Table 16

Treasury Departmental Offices

FinancialAnalystSeries Trends: PercentEmployment by Race/Ethnicityand Gender

Fiscal 

Year

% Hispanic % White % Black % Asian % Total

M W M W M W M W

FY 2014 4.26 0 48.94 25.53 2.13 10.64 4.26 4.26 100

FY 2015 3.70 0 48.15 25.93 3.70 9.26 1.85 5.56 100

FY 2016 3.39 0 40.68 27.12 6.78 15.25 1.69 3.39 100

FY 2017 3.33 0 40.00 23.33 10.00 13.33 3.33 3.33 100

FY 2018 1.89 0 33.96 24.53 9.43 18.87 3.77 5.66 100

OCLF 3.10 1.97 53.98 22.01 3.55 3.96 6.14 4.40 100

Key: Highlighted cell denotes that the percentageis below the OCLF;M-Men, W-Women.

FY2018 Annual Report to Congress 31
e. Intelligence Analyst. Trends within theIntelligenceAnalyst (GS-0132) occupational seriesacrossa fiveyear period from FY

2014 through FY 2018 revealaconsistently lower representation of Hispanics, White women, Blacks,and Asian women compared

to their respective OCLF representation. However, in FY 2018, representation of Hispanic men, Black women,and Asian m

wereabovetherespective OCLF representation (Table 17).

Table 17

Treasury Departmental Offices

IntelligenceAnalystSeries Trends: PercentEmployment by Race/Ethnicityand Gend

Fiscal 

Year

% Hispanic % White % Black % Asian % Total

M W M W M W M W

FY 2014 2.68 0 61.61 31.25 0 2.68 0.89 0.89 100

FY 2015 0.93 0.93 63.89 25.93 0 2.78 2.78 2.78 100

FY 2016 2.43 2.22 39.23 24.82 7.44 13.89 5.70 3.22 100

FY 2017 2.08 0 60.42 26.04 2.08 3.13 3.13 1.04 100

FY 2018 2.94 1.96 53.92 27.45 2.94 5.88 3.92 0 100

OCLF 2.81 3.36 38.77 40.68 4.16 4.59 1.52 2.30 100

Key: Highlighted cell denotes that the percentageis below the OCLF;M-Men, W-Women.

STUDENT EMPLOYMENT 

Internshipsand fellowship programs offeran excellent opportunityforTreasury Departmental Offices hiring officialsto assessthe

qualificationsand performance of promisingstudents whomay proveto becandidatesfor future positions. Treasury Departmental Offic

offersthree opportunitiesforstudent internships:an unpaid studentvolunteer internship program, the Pathways Programthat provides

paid internships,and along-standing outreach effort to recruit diversegroups ofstudentsfor paid internshipsthrough partnerships with

minority-serving organizationsand academicinstitutions. Thislattereffort isknown astheTreasuryScholars Program,aimingto furth

expand the diversity of highly qualified candidatesinterested in internshipsin theTreasury Departmental Offices.

In FY 2018, there were 208 student interns who served in Treasury Departmental Offices: 15 percentAsian (31), 8.6 percent Black

(18), 7 percent Hispanic (15), 0.4 percentAmerican Indian (1),and 69 percent White(144). (OneTreasuryScholars student selfidentified as both Blackand Hispanicand, therefore, counted in both categories, but not included twicein the minorityand overa

totals.) Thegreatest proportion ofall of the 208 total student interns in Treasury Departmental Offices camethrough theVolunteer

program. Twenty-seven percent (54) of the 198 Volunteer program students wereracial orethnic minority students: 15 percent

(30)Asian, 6.5 percent Black (13), 5 percent (10) Hispanic, while 73 percent were White(144). TheTreasuryScholars progr

accounted for 16 percent (10 of 64) of the placements of minority interns (Table 18).

Table 18 

FY 2018 Treasury Departmental Offices

StudentEmployment

Student 

Programs Asian Black Hispanic AmericanIndian

Total 

Minority White Total

# % # % # % # % # % # %

Volunteer

fall, spring & 

summer

30 15 13 6.5 10 5 1 0.5 54 27 144 73 198

Treasury 

Scholars

summer only

1 9 5 45.5 5* 45.5 0 0 10* 100 0 0 10*

# and % 31 15 18 8.6 15* 7 1 0.4 64 31 144 69 208

*This includes onestudent who self-identified as both Blackand Hispanicand, therefore, counted in both category columns. Thestudent wasaccounted for only

oncein theTotal Minorityand overall Total columns.

32 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
It should be noted that interns in thevolunteer program are unpaid and TreasuryScholars internshipsare paid through a

contractualarrangement with minority student serving organizations. However, the number of students supported by theTreasu

Scholars Program is largely dependent on available program funding which can vary considerably from year to year. Also, due

hiring restrictions imposed within Treasury in FY 2018, there were no students participating in the Pathways program, which are paid

internships through Treasury’s personnel budget. 

NEW IQ INCLUSION QUOTIENT

TheFederalEmployeeViewpointSurvey (FEVS) isagovernment-widetool that measuresemployee perceptions of whether,and to

whatextent, conditions characterizingsuccessful organizationsare present in theiragencies. Survey results providevaluableinsight in

thechallengesagency leaders facein ensuringthefederalgovernment hasan effectivecivilian workforceand employees’ perception

about their workplaceexperience. The Office of Personnel Management (OPM) recently developed theInclusiveEnvironme

Assessment, consisting ofasubset of 20 questions derived from arigorous statistical factoranalysis. These 20 questions cluster

around fivefactors thatareassociated with management behaviors: fairness, open mindedness, cooperation, supportiveness,and

empowerment. Scores can be derived foreach of thesefactors to comprisethe New Inclusion Quotient, or the New IQ Inde

The most recent survey wasadministered by the OPM from April through June 2018. Overall scores below 65 percent on the New 

Indexareregarded asareas of challenge. Treasury Departmental Offices hasan overall Diversityand Inclusion Index score of 61.

percent in FY 2018,a 2.82 percent decreasefrom thescore of 64.66 percent in FY 2017. By comparison, the overall New IQ Ind

scores Treasury-wideand government-wideare 61.03 percentand 61.88, respectively.

For thespecific factorsassociated with inclusion, Treasury Departmental Offices’ FY 2018 scores on all fivefactors of inclusion are

lower than thosein FY 2017 (Table 19).

FY 2018 Treasury Departmental Offices’ scores were:

• 53.28 percent - fairness (55.40 percent in FY 2017),

• 60.34 percent - open mindedness (64.25 percent in FY 2017),

• 57.86 percent - cooperation (61.50 percent in FY 2017),

• 81.12 percent - supportiveness (81.40 percent in 2017),and

• 56.61 percent -empowerment (60.75 percent in FY 2017)

Table 19

FY 2018 Treasury Departmental Offices (DO)

Comparison to Government-wideand Treasury-wideScores on theInclusiveEnvironment Index

Behaviors Gov Treasury DO

Fairness 48.33 50.48 53.28

Open-mindedness 60.31 60.45 60.34

Cooperativeness 58.04 60.09 57.86

Supportiveness 78.22 81.14 81.12

Empowerment 60.26 57.23 56.61

Average 61.03 61.88 61.84

FY2018 Annual Report to Congress 33
BEST PLACES TO WORK RANKING

Theannual Best Places to Work in theFederal Government16 rankings, produced by the nonprofit, nonpartisan Partnerships

for PublicService, measuresemployeeengagement government-wideas wellasat individual departments,agencies,and

subcomponents. Therankings providea means of holding leadersaccountablefor the health of their organizations, shining the

spotlight on agencies thataresuccessfullyengagingemployeesas wellas on thosethatarefalling short. The 2018 Best Places to

Work findings demonstratethat collectively thefederal government hasalot of work remaining to supportand strengthen the

federal workforce. Thereport isavailable by several categories. It provides deep insight into the dynamics of the workforce,a

opportunities to identify our most critical challenges and focus on transformation.

In the overall rankings of the Best Places to Workemployeeengagement score, Treasury Departmental Offices is in thefourth

quartile(337 out of 415)among federalagency subcomponents. This category is calculated based on responses to three different

questions in theFEVS:

Q. 40 - I recommend my organization asagood placeto work

Q. 69 - Consideringeverything, how satisfied areyou with your job?

Q. 71 - Consideringeverything, how satisfied areyou with your organization?

TheFY 2018 employeeengagement score of 55.4 representsa 5.8 point declinefrom 2017, suggestinga need foremphasis on

management practices that promote greater employee engagement. 

The Best Places to Work subcategory “Support for Diversity” measures theextent to which employees believethatactionsand

policies of leadership and management promoteand respect diversity. In this category, Treasury Departmental Offices is ranked

in thefourth quartile(298 out of 409)among federalagency subcomponents, dropping 0.4 points to arating of 58.1 percent from

2017.

The“EffectiveLeadership: Fairness” subcategory measures theextent to which employees believe disputesareresolved fairly in their

work units, whetheremployees believearbitraryaction and personal favoritism aretolerated,and ifemployees feel comfortable

reporting illegalactivity without fear of reprisal. In this subcategory, Treasury Departmental Offices is ranked in thethird quartile

(242 of 408)among federalagency subcomponents, dropping 2.5 points to arating of 57.1 percent from 2017 (Table 20).

Table 20 

Treasury Departmental Offices

Best Places to WorkAgency Rankingsand Score

Treasury Departmental Offices

Rank Quartile 2018 Score 2017 Score Change

Best PlacestoWork

337 of 415 4th 55.4 61.2 – 5.8

Support for Diversity

298 of 409 4th 58.1 61.8 – 0.4

Effective Leadership: Fairness

242 of 408 3rd 57.1 59.6 – 2.5

16. https://bestplacestowork.org/rankings/overall/s

34 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
INITIATIVES & 

ACCOMPLISHMENTS

ACCOUNTABILITY

Leadership Monitoring.Secretary Mnuchin was confirmed by the United StatesSenate on February 13, 2017 to serveas the

77th Secretary of theTreasury. Secretary Mnuchin issued a Diversityand Inclusion CommitmentStatement on November 17, 20

that was disseminated to all Treasury employees and invited employees to display their own statement of commitment with a 

personalized Diversityand Inclusion Certificate. TheSecretary issued this statement separately from the mandatoryannualequ

employment opportunity (EEO) policy statement, thus makingaclear distinction between strategic diversity managementand EEO

compliance. In his statement, heset hisexpectations for theshared values ofall Treasuryemployees,as follow

“We are committed to diversity, inclusion, and dignity for all people. We value the many ways people are different, 

including their social identity, training, experiences, and interest. We contribute to a workplace environment within 

Treasury where all people feel their unique talents, ideas, perspectives, and contributions are valued, respected and 

fully utilized.”

SES Performance Plans. To establish accountability relativeto workforce diversityand inclusion, theLeading People

performance element on which allSESlevel Treasuryemployeesareevaluated includes thefollowing criteria:

Recruits, retains,and develops thetalent needed to achievea high quality, diverse workforcethat reflects the nation, with

theskills needed to accomplish organizational performance objectives whilesupporting workforce diversity, workplace

inclusion,and equalemployment policiesand programs.

Throughout Treasury, theLeading People performanceelement, which is one of thefourExecutive Core Qualifications for senior

executives in thefederal government, has twicethe weight ofeachthe other threeelements, i.e., Leading Change, BusinessAcumen,

and Building Coalitions. This higher valueaccounts for the diversity component of theLeading Peopleelement in addition to oth

leadership characteristics. 

Supervisor and Employee Performance Plans. Diversityand Inclusion performanceelements have been drafted for the

performance plans ofall managers, supervisors,and employees in Treasury Departmental Offices. The Diversityand Inclusion

CriticalElement willaccount forat least 10 percent of thetotal weight foremployeesand for supervisors.

The Diversityand Inclusion element mustata minimum contain languagethat requires thesupervisor/manager to:

• Advancethegoals of theTreasury Diversityand Inclusion Strategic Plan;

• Effectivelyand collaboratively work with employees, senior leaders, customers, peers,and stakeholders from diverse

backgrounds;

• Regularlyexhibit behaviors that demonstraterespectand professional courtesy towards others within the workplace, by

maintaining fairand impartial delivery of programs, work products,and services;and,

• Consistently demonstraterespect foremployees within the workplaceand interact in a manner that demonstrates professional

courtesy and does not include harassing or bullying behaviors.

The Diversityand Inclusion element mustata minimum contain languagethat requiresall otheremployees to:

• Participatein creatingand maintainingan inclusive workenvironment;and,

• Interact with peers, supervisors, customersand stakeholders from all backgrounds in a manner that demonstrates professional

courtesy and does not include harassing or bullying behaviors toward any group of employees.

These new performanceelementsareanticipated to be finalized beforetheend of FY 2019.

FY2018 Annual Report to Congress 35
Inclusive Diversity Strategic Plan for Fiscal Years FY 2017 – 2020. In FY 2017, the Office of Civil Rightsand Diversity

developed an Inclusive DiversityStrategic Plan. This plan requires Treasury Bureaus, including Departmental Offices, to establi

a new implementation plan for carrying out thestrategic objectives outlined. TheInclusive DiversityStrategic Plan provide

framework to ensurethat:

• Recruitment policiesaresufficiently broad to afford maximum flexibilityand enablerecruitment of well-qualified candidates from

a widevariety of sources;

• Internal barriers do not impedethe hiring, promotion, or retention ofany candidate oremployee because of his or her race,

gender, national origin,age, color, religion, disability, sexual orientation, parental status, protected genetic information, orany

other non-merit factor;

• The Department developsaculture of inclusiveness, whereeveryemployeeis given the opportunity to contribute;and

• Managersand leadersareaccountablefor thesuccess of this initiative.

The OMWI, Office ofEqualEmployment Opportunity,and Office of Human Resources collaborated to producea plan that holds

agency leadership accountablefor results in diversityefforts,ensuring thoseeffortsare not onlyaligned with mission needs, butare

also effective,efficient,and merit-based.

OUTREACH

Treasury Departmental Offices has had long standing partnerships with existingexternal internship programs thatattract diverseand

highly qualified students. OMWIestablished theTreasuryScholars Program in 2012 asa paid internship program in collaborati

with organizations serving minority students, such as the NationalAssociation forEqual Opportunity in HigherEducation, Hispanic

Association of Collegesand Universities National Internship Program, the Washington Center, theInternational Leadership

Foundation, the Congressional Hispanic Caucus Institute,and others. However, because of therecent increasein the number 

new organizations with similar capabilities, it is no longer permissibleto usesolesourcecontracting with specific organizations.

In FY 2015, OMWI issued acompetitivesolicitation for such organizations to become part ofa five-year blanket purchaseagreement

for theTreasuryScholars Program. Three organizations responded to thesolicitation: INROADS, the HispanicAssociation 

Collegesand Universities National Internship Program,and the Washington Center. In FY 2018, OMWI offered paid internshi

to 10 students viatheTreasuryScholars Program. Thesestudents were placed in policyand program offices throughout Treasu

Departmental Offices, including InternationalAffairs, Office of theTreasurer, Managementand Budget,and OMWI.Students came

from leading collegesand universities, including Historically Black Universities (Howard Universityand Spelman College)and

HispanicServing Institutions (University of Puerto Rico and TexasA & M University).

QUANTITATIVE AND QUALITATIVE ANALYSIS

Diversity in the Hiring Process. OMWI conductsan applicant flow analysis to determinethe percentage of minoritya

women candidates participatingat various stages of the hiring process. OMWIexamines theaggregated flow ofallapplicants, t

qualified applicants, the best qualified applicantsand selections, men versus women,and minority versus non-minorityapplicants.

The purpose of this monitoring is to identify disparities at each hiring stage.

Representational Diversity. OMWI conducts quantitative“deep dive”analysis of the workforce demography of the major policy

and program offices that includes:

• Overall representation by race, gender, disabilityand veteran status

• Representation in the major occupations

• Demography of direct hires

• Demography ofapplicants

36 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
• Perceptions of the workplaceenvironment

• Exit surveysand thereasons for leaving

• Performanceratings by raceand gender.

OMWI briefs officesabout theresults of theanalysis. OMWI then works with each of the program and policy offices to review a

disparities in representation and areas of concern pertaining to workplacecultureto determinethe potential sources of problem

areas and strategies to address them. 

Inclusion Index. The Office of Personnel Management developed theInclusiveEnvironmentAssessment (New IQ) index f

use by federalagencies to assess factors within the workplacethatarecloselyassociated an inclusiveenvironment. Using the N

IQ index, OMWI began providing policyand program offices within Treasury Department Offices with a qualitative measure of

employee perceptions of their workplaceenvironment. So, in addition to providing data on representational diversity, OMWIal

providesan assessment of theextent to which the workplacecultureis perceived as inclusive.

INCLUSIVE DIVERSITY AWARENESS AND TRAINING 

The & Council. In FY 2017, OMWIestablished an employeeresourcegroup, called The & Council, within Treasury Departmental

Offices to advanceand leverage diversity within the organization’s cultureand workforce by increasing workforceengagement,

performance, diversity,and inclusion. The & Council,asingleentity that focuses on theinterests of various groups, servesasan

innovativealternativeto thetraditional model of having separateSpecialEmphasis Program Managers (SEPMs) foreach of the

different specialemphasis groups. Members of The & Council serveasan ideafactory to infusecultural intelligenceinto workplace

on diversityand inclusion. Membership in The & Council is voluntaryand consists of Treasury Departmental Officesemployees

all levels who bringa broad range of perspectives to shapeinclusive diversityefforts, representinga microcosm of the workforce:

White; Black; Hispanic,Asian/Pacific Islander;American Indian;Alaska Native; women; lesbian, gay, bisexualand transgender

(LGBT); persons with disabilities;age 40+;and early careeremployees.

The & Council consists ofan Executive Committeeand subcommittees. The & Councilagreed by consensus on its frameworkand fo

areas of work: 1) cultural transformation efforts to createa moreinclusive workenvironment; 2) critical conversations to promote

important but often difficult dialogues; 3) careeradvancement recommendations to mitigate demographic hierarchical distinctions

or disparities;and 4) civil rightsand equal opportunity issues to identify barriers to representational diversityand fairness.

Multi-tiered Diversity and Inclusion Training. SinceFY 2013, OMWI has sponsored several training sessions on diversi

and inclusion, with afocus on unconscious bias. These have been for senior leaders, managersand supervisors,as wellasall oth

employees. Theaim of this training is cultural transformation of the workplace by creatingacadre of like-minded diversitya

inclusion champions who can serveas catalysts for change, leading development of improved management behaviors with thegoal

a moreinclusive workplaceenvironment.

Dr.Steve Robbins,an internationally recognized diversityand inclusion consultant, has been engaged by OMWI for four years to

provideintensivetraining in the neuroscience of unconscious bias. In total, he has conducted 11 sessions forapproximately 5

Treasury Departmental Offices participants. In FY 2018, OMWI launched ayear-long onlinevideo series created by Dr. Robbi

that makes much of his training contentavailablein an on-demand form to all Treasuryemployees in short segments. Titled

Inclusion Insights,a new episodein this year-long video series is posted to theTreasury intranetevery other week.Earlierepisodes

remain archived and availablefor reviewing. With theannouncement ofeach new episode, discussion questionsare provided and

managersareencouraged to incorporatethem in their staff meetings.

OMWI staff striveto design programming that frames issues of diversityand inclusion in compelling, relatable,and transformative

ways. This year, OMWI conducted threespecial programs that clearly met thosecriteria. OMWI collaborated with the Offic

Civil Rightsand Diversity to hostatheatrical performanceentitled, Incognito,a one-actor play by Michael Fosberg thatexplores

the meaning of racial identity on a personal level. This innovativeapproach to avery difficult subject set thestageforan open

FY2018 Annual Report to Congress 37
and meaningful discussion among theaudience members immediately following the performance. OMWIalso collaborated with

the Office ofEconomic Policy to hostascholarly lecture by Dr. Marianne H. Wanamaker,entitled TheSteep Climb: TheEconomic

Progress ofAfrican American Men sinceEmancipation. This historical retrospectiveappealed to the broader workforce, but was of

particular interest to theeconomics staff, becauseit was intended to allow theaudienceto think more deeplyabout theeconomic

effects of diversityand inclusion. OMWIalso hosted a film screening of the documentary,entitled Black German Survivors of the

Holocaust, which chronicles thelargely unknown history of Black Germans who were persecuted by the Nazi’s during the Holocaust.

Thescreening was followed bya discussion with an expert panel comprised of scholars from the U.S. Holocaust Memorial Museum,

Howard University,and a Black German Holocaust survivor. While participants consistently rate OMWI programs highly, this

standing-room-only film screening received particularly positivefeedback.

In FY 2018, Treasury’sExecutiveInstitute(TEI)established acurriculum and hosted diversityand inclusion training sessions for

Departmental Officesemployeesand managersat the GS-14 through SESlevels. Thesesessions included thefollowing seminars:

• Three Minutesa Day: Overcoming Unconscious Bias

• Shrinking Unconscious Bias:Awarenessand Action for Change

• Performance, Image,and Exposure

• Resilience Workshop

• Givingand Receiving Feedback Workshop

• Cultural Transformation: Your Personal ImmuneSystem

• Cultural Transformation: Build Your Organizational ImmuneSystem

• Expand Your Generational Toolkit

• 3 Minutesa Day: Masterful Mentorship

• 3 Minutesa Day: Managing Diverse Perspectives: Tools to Better Understand, Manage,and MotivateEveryEmployee

• Inclusive on Purpose: How a Diverse WorkforceAchieves the Best Result

• Leadership Communication: Coachingand Confrontation Skills

• The Person You Mean to Be: How Good PeopleFight Bias

• Crucial Conversations

• CrucialAccountability

• Crucial Conversations On Demand Program: Tools for Talking When theStakesare High

• Bea Big, Brave-Hearted Rebelat Work

Finally, in commemoration of thefederally designated heritage months, OMWI develops personal profiles of members of the

Treasury staff who represent thespecific cultural heritagecelebrated. The profilesarefeatured on theTreasury intranet,and posted

on the electronic bulletin boards throughout the various Treasury facilities. 

FINANCIAL LITERACY

Treasury leads theFinancial Literacyand Education Commission (FLEC), comprising 23 federal governmententities. TheFLEC pla

acentral rolein thefederal government’sefforts to enhance financial literacy, financial capability,and individual financial wellbeing. TheFLEC coordinates its members’ diverse financialeducation activities forAmericans, including families, children, yout

students, service membersand their families,and financially vulnerable populations. TheFLEC members have pursued avariety

of financial literacyand education approaches to provideinformation, instruction,and guidanceto help American households

38 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
meet their financial goals. TheFLEC providesa platform for its memberagencies to collaborateand sharethoseapproaches,

wellas ideas, research findings,and experiences that inform financialeducation policiesand practices. Through theFLEC’seffort

federal financialeducation efforts can be moreeffectively coordinated and focused. FLEC also manages the MyMoney.gov website

that servesas the one-stop shop for federal financial literacyand education programs. The Office of Consumer Policy, within t

Domestic Finance Office, providesexpertiseand primary support to theFLEC and has the primary responsibility for programming

pertaining to financial inclusion, literacy,and policies thataddress theeconomic realities ofeverydayAmericans. TheFLEC is chair

by theSecretary of theTreasuryand thevicechair is the Director of the Consumer Financial Protection Bureau.

CHALLENGES

Treasury Departmental Offices is committed to adopting leadingedgestrategies to securea high performing workforce drawn from a

diverse pool of candidates. The biggest challenges to implementing the workforce diversity provisions of Dodd-FrankAct § 342 ha

been hiring restrictions, retainingemployees, identifyingand mitigating theroot causes for underrepresentation in specific racial/

ethnicand gender categories,and changingemployee perceptionsabout the workplaceculture.

Hiring restrictions wereimposed in FY 2017 and FY 2018, limiting opportunity for Treasury Departmental Offices to hire. Compared

to FY 2017,asmaller percentage of Hispanic, Black,and Asian employees were hired in FY 2018. However, hires of Whiteemployees

rose by 11 percent over FY 2017 (75% in FY 2018 and 64% in FY 2017). (Refer to Table 8).

Second, restrictions on hiring werecompounded by retention rates during FY 2018. In FY 2018, the percentage of women hired w

lower than the percentagethat separated from Treasury, resulting in a netattrition of –2 percent. In FY 2018, theseparation rate 

minorities (36 percent) was the highest in fiveyearsand hiring rate of minorities (25 percent) was considerably lower than the prior

year (36 percent), resulting in a negative netattrition (–11 percent). The hiring rate(75 percent) for Whites in FY 2018 was higher

than its demographicattrition (64 percent). For both race/ethnicityand gender, there have been challenges in reversing the negative

trajectories of attrition rates.

Third, thecontinuing challengeis to identifyand mitigatetheroot causesand systemic barriers to theemploymentand advancement

of women and racial/ethnic minority groups in specificareas of the workforce. The overall representation of Hispanics in the

Treasury Departmental Offices workforcein FY 2018 was below all four benchmarks (FWF, TWF, CLF,and DO/RCLF). Hispanic

representation is below their benchmark (overall Treasury Departmental Offices workforce) for positionsat senior management

levels (GS14 and GS15)and seniorexecutive(SES) levels. Further, thereisan underrepresentation of Hispanics compared to the

Occupational Civilian Labor Force(OCLF) in 3 of the 5 mission critical occupations (with theexceptions being GeneralAttorney for

Hispanic women). Compounding theseissues, theseparation rate of Hispanics in FY 2018 (6 percent) was the highest in fiveyears

and their hirerate(7 percent) resulted in a netattrition of -1 percent.

In addition, forFY 2018, therepresentation ofeach minoritygroup and women in permanent GS-15,and SESlevel positionsare

below therepresentation within thetotalTreasury Departmental Offices permanent workforce. Therepresentation of women at t

GS-15 level decreased by 2 percent compared to FY 2017 (41 percent); but remained unchanged in theSESlevel. Thereis comparab

underrepresentation of Blackemployees in GS-14, GS-15,and SES positionsand Asian employees in GS-15 and SES positions.

Fourth, thegovernment-widescores derived from the OPM New IQ inclusion quotient tool show that workplaceinclusion is

challengingacross federalagencies. Treasury Departmental Offices hasan overall Diversityand Inclusion Index score of 61.

percent in FY 2018,a 2.82 percent decreasefrom thescore of 64.66 percent in FY 2017. TheFY 2018 scoreis 3.16 percent short

of the 65 percent that the Office of Personnel Management regardsasacceptable. The new challengeis to regain momentum

in creatingan overall workplaceenvironment that is perceived byemployeesas being inclusive. Part of that challenge will be

mitigate underlying causes for perceptionsabout fairness, open mindedness, cooperation,and empowerment. OMWI will be

exploring new toolsand methods to better understand thesources of these perceptionsand develop appropriateinterventions,

such as interim pulsesurveysat the officelevel in addition to theannual government-wideemployeesurvey.

FY2018 Annual Report to Congress 39
“We value the 

many ways 

people are 

different, 

including their 

social identity, 

training, 

experiences, 

and interests...”

Steven T. Mnuchin, 

Secretary of the Treasury
CONCLUSIONS AND 

FISCAL YEAR 2019 

PLANS 

BUSINESS DIVERSITY AND INCLUSION 

Thecommitment to MWOB contracting within Treasury Departmental Offices has remained

strong. In FY 2018, morethan one-third (37 percent) of contract dollars totaling $116 milli

went to either minority-owned or women-owned businesses. These percentage and dollar 

amounts were the highest ever for minority-owned business contract obligations by Treasury 

Departmental Officesand among the highest for contracting with women-owned businesses.

Although thereare no goals forMWOB contracting, thecongressionally mandated small

businessgoals can serveas useful benchmarks to gauge performance.TheTreasury

Departmental OfficesMWOB contracting performance of 35 percent meets thecongressionally

mandated small businessgoalestablished forTreasury, which was 35 percent in FY 2018.

Similarly, contracting with minority-owned businesses wasat 28 percent in FY 2018, which

is wellabovethecongressionally mandated goal of 5 percent for contracting with small

disadvantaged businesses (and arelargely minority-owned). Further, contracting with womenowned businesses was 22 percent in FY 2018, which greatlyexceeds thecongressional

mandated goal of 5 percent for contracting with small women-owned businesses. It isal

important to notethatMWOB contractingis not limited to less prominent business categories.

Thereis strongMWOB representation amongcontracts in five of theTreasury Departmental

Offices top seven industry codes.

OMWI will striveto supportefforts that will not only maintain but continually improvethis

performance.Specificefforts that will be undertaken in FY 2018 includethefollowing:

Accountability. OMWI will continueto monitorand develop regular reports on the

utilization of minority-owned and women-owned businesses byeach of the Bureaus. Su

reports will providearecord tracking progress for use by theacquisition communityand

leadership, includingthe quarterly performancereviews conducted by senior leadership.

Additionally, OMWI will continueto explorethe use of new metricsand benchmarks to increase

understanding of possible barriers and aspirational standards for business diversity and 

inclusion. 

MWOB Utilization (FAR Contracting). Foreight consecutiveyears, utilization 

minority-owned and women-owned businesses ofall sizes by Treasury Departmental Offices

has been wellabovegovernment benchmark standards. In addition, Treasury Departmental

Offices has met orexceeded aggressivegoals in contracting with small disadvantaged

businessesand women-owned small businesses. In FY 2019, Treasury will striveto maintain

its upward trajectory in MWOB utilization and small business goalattainment by continuing

to employ thestrategies that have proven successful for Treasury sinceFY 2011. This h

included targeted outreach, leadership oversightand accountability, new policies when

necessary, regular monitoringand reporting, new toolsand resources for theacquisition

community,and regular intra-agency communication.

FY2018 Annual Report to Congress 41
Financial Agent Authority (Non-FAR). Treasury will continueto build relationshipsand activelyengage with stakeholder

groups that represent minority-owned and women-owned financial institutionsand minorityand women professionals. This op

dialogue and engagement will support diverse participation in future program opportunities that may arise under the Treasury 

financialagentauthority. Treasury will continueto ensurethat requests for proposals (RFP) or other solicitation processes for

financialagent opportunitiesarefairand willencourage meaningful participation of minority-owned and woman-owned businesses

eitheras financialagents or contractors to financialagents.

In FY 2019, OMWIand the Bureau will continueits collaborative work to expand theFinancialAgent Mentor Protégé Program

between largeand small banks. Theaim will beto increasethe number of formal mentor protégéagreementsand to monitorand

showcasethe progressand activities of participating banks.

Outreach: OMWI is committed to conductingrobustand effective outreach to minority-owned and women-owned small businesse

In addition to public posting on theFederal Business Opportunities web-site,Treasury will continueto conduct regular vendor outreach

sessionsand presentationsat conferencesand events conducted by industry organizationsand federalagencies, such as:

• U.S. Women Chamber of Commerce

• U.S. Hispanic Chamber of Commerce

• U.S. Black Chambers

• National MinoritySupplier Development Council

• Minority Business DevelopmentAgency

• The Women’s BusinessEnterprise National Council

• NationalAssociation ofSecurities Professionals

42 OMWI • Office of Minority and Women Inclusion • Department of the Treasury
WORKFORCE DIVERSITY AND INCLUSION

Overall, Treasury Departmental Offices hasa diverse workforce with thefollowing qualifications regarding its demographic

characteristics:

• Therepresentation of women is below all four of the workforce benchmarks.

• Blacksand Asiansarerepresented at oraboveat least three of thefour workforce benchmarks.

• Hispanic representation is below all four workforce benchmarks with theexception of Hispanic men, which isequal to its Treasury

Departmental representation.

• Women and racial/ethnic minority groupsare disproportionately represented in positionsat GS-12 and below.

• Genderand racial/ethnic disparitiesexistat the GS13 through 15 and SESlevelsand within all mission critical occupations, i.e.,

economists, generalattorney, information technology, financialanalyst,and intelligenceanalyst.

• Compared to FY 2017,employee perceptions of overall workplaceinclusion and on all five management behaviorsassociated

within inclusion has decreased within theTreasury Departmental Offices, butareslightly higher than those of theTreasury-wide

and federal government-wide workforces.Also, the overall scoreremains below thescore of 65 that the Office of Personnel

Management regardsasacceptable.

OMWI will continueto lead efforts to increase workplace diversityat the higher levels, i.e., GS-13 through GS-15 and SES,and in

mission critical occupations. Programs will becontinued to train employees with thegoal of changing the workplacecultureto o

of moreinclusion. OMWI’s programsand activities on workforce diversityand inclusion in FY 2019 includethefollowing:

Accountability. OMWI, in collaboration with the Office of Civil Rightsand Diversity, will continueto monitorand devel

regular reports on theracial/ethnicand gender demography of the workforceacross Treasury Departmental Officesand within

the major policyand program offices to identifyareas of disparity.Such reports will provide ongoing tracking for use by the policy

and program officesand leadership, including the quarterly performancereviews conducted by senior leadership. Additionall

OMWI will continueto explorethe use of new metricsand benchmarks to increase understanding of possible barriersand establish

aspirational standards for workplace diversityand inclusion. In collaboration with theTreasury Human Capital Officeand the Office

of Civil Rightsand Diversity, OMWI will supportefforts to implement thespecific performanceelements for diversityand inclusion

for supervisors, managers,and all otheremployees.

Workplace Culture. OMWI will continueto offer varied programs to promoteaculture of inclusion within Treasury Departmental

Officesavailableto senior leadership, managersand supervisors,and all otheremployees. Theaim is to producean overall cultur

transformation within Treasury Departmental Officesand to increasethe number ofemployees throughout the policyand program

offices who havecommon mindsetand coreknowledgeregarding workplaceinclusion.

Recruitment/Hiring/Outreach. OMWI will seek to usesocial media outreach efforts to increasethe number of minority

professionals who are madeaware ofall position announcements, particularly upper management, seniorexecutive,and missioncritical positions in Treasury Departmental Offices. OMWI will continueto track the hiring rates of women and Blackemployees, to

develop strategies to reversethe negativetrajectory for women,and to sustain or raisethe neutral trajectory for Blackemployees.

OMWI will work to identifyand mitigateany factors that may cause under-identification, hiring,and retention of Hispanics.

OMWI will continueto utilizeits blanket purchaseagreement contract vehicleto access recruitment services from organizationsand

institutions that serve minority students for internships to increasethe diversity of interns within Treasury Departmental Officesand

offering opportunities to theAmerican public.

FY2018 Annual Report to Congress 43
"We contribute 

to a workplace 

environment within 

Treasury where all 

people feel their 

unique talents, ideas, 

perspectives, and 

contributions are 

valued, respected 

and fully utilized."

Steven T. Mnuchin, 

Secretary of the Treasury
APPENDIX

LIST OF ABBREVIATIONS

CDFI Community Development Financial Institutions 

CDFI Program Treasury’s Community Development Financial Institutions Program

CDLF Community development loan funds

CLF Civilian labor force

DO/RCLF Relevant civilian labor forcefor Departmental Offices

Dodd-FrankAct Dodd-Frank WallStreet Reform and Consumer Protection Act

DOL Department of Labor

EEO EqualEmployment Opportunity

FAA FinancialAgentAuthority

FAR FederalAcquisition Regulation

FEVS FederalEmployeeViewpointSurvey

FWF Federal government-wide work force

HUBZone Historically underutilized business zones

MWOB Minority-owned and Women-owned Businesses

NAICS North American Industry Classification System

OCLF Occupational civilian labor force

OFCCP Office of Federal Contract Compliance Programs

OHR Office of Human Resources

OMWI Office of Minorityand Women Inclusion

OPM Office of Personnel Management

PPC Persistent poverty counties

SBLF Small Business Lending Fund

SDB Small disadvantaged businesses

SMWOB Small, minority-owned,and women-owned businesses

theAct Small Business JobsAct of 2

TWF Treasury-wide work force

WOSB Women-owned small businesses

FY2018 Annual Report to Congress 45
&