Bureau of the Fiscal Service 

Program Summary by Budget Activity 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budget Activity Operating Plan Annualized 

CR Request $ Change % Change 

Accounting and Reporting $96,472 $89,482 $98,158 $8,676 9.7% 

Collections $41,109 $43,596 $48,020 $4,424 10.1% 

Payments $123,190 $123,697 $132,576 $8,879 7.2% 

Retail Securities Services $59,312 $64,244 $67,816 $3,572 5.6% 

Wholesale Securities Services $25,486 $24,550 $25,915 $1,365 5.6% 

Matured Unredeemed Debt $25,000 $25,000 $0 ($25,000) -100.0% 

Subtotal, Bureau of Fiscal Service $370,569 $370,569 $372,485 $1,916 0.5% 

Reimbursable $224,642 $208,823 $185,149 ($23,674) -11.3% 

Debt Collection Fund $165,538 $187,363 $199,236 $11,873 6.3% 

Unobligated Balances Brought Forward $137,952 $202,056 $188,713 ($13,343) -6.6% 

Total Program Operating Level $898,701 $968,811 $945,583 ($23,228) -2.4% 

Direct FTE 1,922 1,866 1,896 30 1.6% 

Reimbursable FTE 15 9 9 0 0.0% 

Total Full-time Equivalents (FTE) 1,937 1,875 1,905 30 1.6% 

Note: FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. Tables does not include supplemental funding provided under 

the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L.116-136) and the American Rescue Plan (ARP)(P.L.117-2). 

Unobligated balances do not include CARES and ARP. Matured Unredeemed Debt funding remains available and unexpended. Also, the 2023 

Budget Appendix includes a separate presentation for the Debt Collection Fund. 

Summary 

The FY 2023 request for the Fiscal Service is $372.485 million. The Budget ensures the viability 

of the Government’s National Financial Critical Infrastructure (NFCI) that finances Federal 

operations, collects revenue, disburses payments, and reports on the Government’s financial 

position. Because of Fiscal Service’s central role in Government-wide financial operations, the 

Budget also supports Treasury’s leadership in transforming Federal financial management to 

become more efficient, more accurate and deliver better service to citizens. 

The Budget provides resources to maintain current operations and supports ongoing initiatives in 

business modernization, customer experience, improving use of data, expanding access to digital 

financial services, innovative financial technology, operational integrity, and our workforce. This 

Budget supports the Financial Management Quality Service Management Office (FM QSMO), 

which is responsible for operating the Federal marketplace and making quality core financial 

service offerings available to all Federal agencies (funding for this activity was requested in 

FY 2022). The Budget also focuses on promoting integrity and equity in payment and collection 

practices. 

The Budget also supports ongoing operations related to cybersecurity for High Value Assets 

(HVAs) and other systems that support the NFCI. Fiscal Service will continue to partner with the 

Department, leveraging resources provided through the Treasury Cybersecurity Enhancement 

Account, to implement modern solutions that will support the security, resiliency, and agility of 

these critical systems and continue to maintain the financial integrity and efficiency of our 

operations. Our work will also continue to strengthen our cybersecurity posture by enhancing our 
ability to identify threats and carry out the recent Executive Order 14028, Improving the Nation’s 

Cybersecurity and OMB Memo M-22-09, Federal Zero Trust Strategy. 

These priorities will advance Treasury’s Strategic Plan FY 2022-2026, promote Fiscal Service’s 

mission to transform Federal financial management, and result in improved service for the 

American public. Fiscal Service has planned a reorganization to better position itself for the 

future and translate the goals of Treasury’s strategic plan as well as the Bureau’s Vision for the 

Future of Federal Financial Management into organizational capabilities. Fiscal Service is not 

requesting any additional funds to implement this reorganization, and the reorganization does not 

result in any changes to the structure of our budget or program line items. 

Budget Highlights 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 1,559 $370,569 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $12,276 

Pay Annualization 0 $1,593 

Pay Raise (4.6% average pay raise) 0 $8,197 

Non-Pay 0 $2,486 

Other Adjustments: 

Adjustments to Meet Current Operating Levels 0 $6,940 

Non-Recurring Costs 

Matured Unredeemed Debt

1

 0 ($25,000) 

Subtotal Changes to Base 0 ($5,784) 

FY 2023 Current Services 1,559 $364,785 

Program Changes: 

Program Increases: 2 $7,700 

Quality Service Management Office1

 2 $3,700 

Fraud Prevention and Equitable Debt Collection Initiatives 0 $4,000 

FY 2023 President's Budget Request 1,561 $372,485 1

Included in the FY 2022 President's Budget.

Budget Adjustments 

Maintaining Current Levels (MCLs).......................................................+$12,276,000 / +0 FTE 

Pay Annualization (2.7%) +1,593,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6%) +$8,197,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$2,486,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent supplies, 

and equipment. 

 
Other Adjustments......................................................................................+$6,940,000 / +0 FTE 

Adjustments to Meet Current Operating Levels +$6,940,000 / +0FTE 

Funds are requested to cover pay and non-pay inflationary costs that are realized in FY 2022 but 

not appropriated under an annualized CR. 

Non-recurring Cost....................................................................................-$25,000,000 / +0 FTE 

Matured Unredeemed Debt -$25,000,000 / -0FTE 

United States Savings Bonds that have reached final maturity and stopped earning interest are 

considered Matured Unredeemed Debt (MUD). As of the end of FY 2021, the MUD balance 

had reached $29.9 billion. The Consolidated Appropriations Act, 2021, (P.L. 116-260) provided 

$25 million, available until expended, for the digitization of records of matured savings bonds 

that have not been redeemed. This adjustment removes this appropriation from the FY 2023 

Current Services levels. 

Program Increases......................................................................................+$7,700,000 / + 2 FTE 

Quality Services Management Office +$3,700,000 / +2 FTE 

This funding, which was originally requested in the FY 2022 President’s Budget, will support the 

continued implementation and management of the Financial Management Quality Service 

Management Office (FM QSMO) Marketplace, advance Government wide adoption of shared 

services, and ensure robust financial management support for Federal agencies. Funding will 

support ongoing collaboration with agency leaders modernizing financial systems; management 

of processes to ensure equitable access for industry to offer modern, secure, innovative, 

standards-based solutions and services as providers in the Marketplace; review of agency 

Marketplace acquisition requests to ensure adherence to standards; and delivery of expert 

guidance that will advance Government-wide financial management goals. FM QSMO will 

streamline access to Treasury services and empower customer agencies to create new 

opportunities for underserved communities through increased opportunities for small and 

disadvantaged businesses, which advances Treasury Strategic Objectives 1.3 (Economically 

Resilient Communities) and 5.4 (Customer Experience Practice). 

Fraud Prevention and Equitable Debt Collection Initiatives +$4,000,000 / +0 FTE 

Fiscal Service continues to focus on payment integrity and implementing best practices to ensure 

equitable debt collections. The Payment Integrity Center of Excellence (PICOE) and the Do Not 

Pay (DNP) Business Center improve the integrity of Government-wide financial transactions by 

providing business insight and solutions that assist government agencies in identifying, 

preventing, and recovering improper payments. DNP also assists agencies by providing a 

combination of access to data sources and data analytics to aid in identification, mitigation, and 

elimination of improper payments. PICOE will continue to leverage cross Government data 

sharing, an account verification service, the Treasury Check Verification System, investigative 

case support and other activities to improve payment accuracy and integrity. These activities will 

help to advance the Administration’s efforts to prevent and detect identity theft involving public 

benefits. While promoting the integrity of payments, Fiscal Service will also be promoting and 

reviewing equity in its debt collection practices by helping customer agencies to identify and 

implement changes that will improve their processes. This work will enable the Bureau to 

leverage data while enhancing information sharing practices to advance Treasury Strategic 

Objectives 5.3 (Better Use of Data) and 5.4 (Customer Experience Practice). 

 
Legislative Proposals 

1. Fund the Federal Payment Levy Program via collections. Estimated costs: $220 million in 

Fiscal Service costs to operate the Tax Levy Program in the Treasury Offset Program over 10 

years. Fiscal Service is currently being reimbursed for this cost from IRS appropriated funding. 

This proposal improves the way the Fiscal Service collects its reimbursement from IRS to cover 

Fiscal Service’s costs in developing and operating the Federal Payment Levy Program (FPLP), 

which utilizes the Treasury Offset Program to process levies of Federal payments to collect 

delinquent tax debts. Under the Economy Act, the IRS pays fees to Fiscal Service from the IRS 

annual discretionary appropriation. This proposal authorizes Fiscal Service to recover its costs 

from levy collections, rather than from IRS’s direct appropriation, which reduces administrative 

and overhead costs for both Fiscal Service and IRS. It would also allow IRS to re-direct the use 

of appropriated dollars that are currently needed to fund FPLP to other initiatives that will aid in 

the collection of delinquent tax debt. 

2. Amend the Bank Merger Act to allow for the transition of Treasury-sponsored debit 

card accounts from one bank to another. The cost avoidance associated with this proposal is 

estimated to be $17.64 million in labor and materials. The estimated cost avoidance will only 

materialize if a new financial agent is designated. 

This proposal would amend the Bank Merger Act to allow for the transition of Treasurysponsored debit card accounts from one bank to another when Treasury changes its financial 

agent. Current law restricts Treasury’s ability to move its sponsored debit card accounts to a new 

bank in order to obtain better or lower cost services. Treasury sponsored debit card programs, 

particularly the Direct Express program that provides Social Security benefits and Supplemental 

Security Income benefits, serve a vulnerable population. Thus, any disruption in service resulting 

from the transition to a new financial agent could have a devastating impact. To mitigate these 

risks, this proposal would authorize Treasury to retain new financial agents for services 

involving sponsored debit card accounts. 

 
Performance Highlights 

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Budget Activity Performance Measure Actual Actual Actual Target Target 

Accounting and Reporting Percentage of Government-wide Accounting 

Reports Issued Timely (%) 99.6 100.0 100.0 99.0 99.0 

Collections Percentage of Total Federal Government 

Receipts Settled Electronically (%) 98.4 99.0 99.6 99.0 99.0 

Payments Percentage of Treasury Payments Made 

Electronically (%) 95.6 96.0 96.2 96.4 96.6 

Payments Count of Improper Payments Identified or 

Stopped (# in Thousands) 22.4 22.8 23.8 22.5 23.6 

Payments Dollar Amount of Improper Payments 

Identified or Stopped ($ Millions) 41.1 43.5 47.6 38.8 40.7 

Retail Securities Services Percentage of Retail Customer Service 

Transactions That Are Unassisted (%) 69.0 70.0 63.0 72.0 73.0 

Wholesale Securities 

Services 

Percentage of Auction Results Released 

Accurately (%) 98.8 100.0 100.0 100.0 100.0 

Wholesale Securities 

Services 

Percentage of Auctions Successfully 

Completed by the Scheduled Close Date (%) 100.0 100.0 100.0 100.0 100.0 

Debt Collection Amount of Delinquent Debt Collected 

Through A11 Available Tools ($ Billions) 9.7 10.7 5.0 5.3 7.6 

Debt Collection Amount of Delinquent Debt Collected 

Through A11 Available Referred ($ Billions) 14.3 15.7 15.9 15.0 13.9 

Debt Collection Percentage of the Active Delinquent Debt 

Portfolio Collected (%) 9.2 7.3 7.0 6.7 6.5 

Description of Performance 

Accounting and Reporting: Fiscal Service collects, analyzes, and publishes Government-wide 

financial information, made available to both the public and private sectors, to provide 

transparency on the Government’s financial status. In FY 2021, Fiscal Service accounted for and 

reported on the financial activity related to the $28.4 trillion public debt and managed a daily 

cash flow of $209.9 billion. Fiscal also issued and serviced $6.2 trillion in Treasury securities 

invested by 53 Federal agencies in over 155 Federal Government trust and investment accounts, 

including $3.2 trillion in 17 managed trust funds. Fiscal Service continued to issue 100 percent 

of Government-wide accounting reports on time, including the annual Financial Report of the 

United States Government, which reports the financial condition of the Federal government 

using accrual basis of accounting. In FY 2023, Accounting and Reporting will continue to pursue 

innovative solutions to data quality challenges, improve delivery and digestibility of data 

available to the American public, modernize analytics capabilities across the Bureau, and 

improve the audit and reporting process for Federal agencies. 

Collections: Fiscal Service administers the world’s largest Government collections system 

through a network of Fiscal and Financial Agents. In FY 2021, Fiscal Service collected nearly 

$4.91 trillion in Federal revenue, settling 99.6 percent of the funds electronically. This is an 

increase over the electronic settlement rate of 99 percent in FY 2020 as Fiscal Service advanced 

several projects to increase digitization, including expanding adoption of eCommerce digital 

collection options across Federal agencies. These projects continued to move paper-based 

transactions to electronic alternatives (e.g., Pay.gov, Digital Wallets, etc.). In FY 2023, Fiscal 

Service will continue to promote electronic alternatives and assist Federal agencies in converting 

collections from paper to electronic media and streamline lockbox networks which process 

paper-based payments and forms, which supports the Administration’s climate priority and 
Treasury Strategic Objectives 3.3 (Financial Innovation) and 4.4 (Sustainable Treasury 

Operations). 

Payments: Fiscal Service delivers Federal payments on behalf of more than 250 Federal entities 

through disbursement mechanisms such as paper checks, Electronic Fund Transfers (EFT), debit 

cards, and other digital payment mechanisms. Fiscal Service continues to increase the percentage 

of Federal payments which are Treasury-disbursed. In FY 2021, Fiscal Service disbursed 

90.5 percent of all Federal payments (88.4 percent without Economic Impact Payments).

In FY 2021, the Fiscal Service payments activity continued to support COVID-19 pandemic 

recovery efforts, specifically the delivery of Economic Impact Payments (EIP) and Advance 

Child Tax Credit payments to the American public. These recovery programs have significantly 

increased the payments workload volume. In FY 2021, Fiscal Service issued approximately 

500 million more payments than in 2019, or a 42 percent increase in the number of payments 

disbursed. In FY 2021, Fiscal Service securely disbursed 1.7 billion payments, totaling 

$6.4 trillion; of these totals, EIP2, EIP3, and CTC payments accounted for more than 428 million 

payments to individuals, totaling $593 billion. 

While supporting recovery efforts, Fiscal Service also continued advancing its planned 

initiatives and modernizations within the Payments activity. One major initiative in this area 

was the FY 2020-2021 Agency Priority Goal (APG) to improve the public’s payment 

experience by reducing paper checks and increasing electronic payments. Excluding EIPs and 

checks directly related to the pandemic, Fiscal Service achieved its APG targets and reduced 

checks from 54.2 million in 2019 to 48.8 million in 2021, a 10 percent reduction. Additionally, 

collaborating with the IRS, Fiscal Service increased the IRS Tax Refund electronic rate from 77 

percent in 2019 to 80.3 percent in 2021. This increase in electronic payments resulted in faster, 

more secure, and significantly fewer payment issues or exceptions for the public. 

In FY 2023, Fiscal Service will build on these efforts with a new APG to provide a modern, 

seamless, and secure payment experience for the public that meets customer needs while 

reducing costs, expanding financial inclusion, and improving climate sustainability of Treasury’s 

operations by increasing electronic payments. Fiscal Service plans to continue modernizing the 

entire payments lifecycle. This initiative will modernize payment disbursement and address 

aging technology, resulting in increased efficiencies, improved resiliency and security, and an 

enhanced user experience. 

Retail Securities Services: Fiscal Service provides simple, safe, and affordable ways for 

investors to directly interact with the Department of the Treasury to save for their future by 

investing in Treasury securities. In FY 2021, Fiscal Service electronically issued $73.6 billion in 

Treasury retail securities (includes sales and reinvestments), processed $86.4 billion in 

redemptions, added 219,740 new accounts to TreasuryDirect, and made 2.2 million retail 

payments worth $23.1 billion. In FY 2021, Retail Securities saw a decline in the percentage of 

unassisted retail customer service transactions, with 63 percent unassisted during the fiscal year, 

significantly lower than the 71 percent target. This was the result of both reduced sales of 

marketable Treasury securities, as well as a continued trend of customers redeeming savings 

bonds through mail services instead of in-person interactions with financial institutions as result 

of the COVID-19 pandemic. 
Retail Securities continues to improve the customer experience and help owners find and claim 

savings bonds that have reached final maturity and stopped earning interest through the Matured 

Unredeemed Debt (MUD) initiative. Treasury’s redemption process for paper savings bonds has 

proven effective, given that 99 percent of all paper savings bonds ever issued have been 

redeemed. Annually, Treasury redeems approximately 7.2 million matured savings bonds worth 

$4 billion, including nearly 1.8 million bonds that were five or more years past maturity. As of 

the end of FY 2021, the balance of these matured unredeemed savings bonds was $29.9 billion 

across 82.3 million pieces. During FY 2021, the Bureau began a multi-phase approach to digitize 

and index its records of paper savings bonds. The Bureau also began a data matching effort to 

compare MUD records against various systems (e.g., bureau systems and other government 

databases) to obtain updated bond owner information to develop strategies to better reach these 

customers. For example, the Bureau initiated mailings to a subset of customers within 

TreasuryDirect to create awareness of MUD bonds and provide guidance for redeeming them. In 

addition to other customer experience improvements being considered, Fiscal Service continues 

to work with the National Association of Unclaimed Property Administrators (NAUPA) and the 

National Association of State Treasurers (NAST) to find collaborative solutions to locate owners 

of MUD bonds. 

Wholesale Securities Services: Fiscal Service finances daily Government operations by 

overseeing the announcement, auction, and issuance of marketable Treasury bills, notes, bonds, 

floating rate notes, and inflation-protected securities through reliable, accurate, and secure 

electronic systems. In FY 2021, Treasury successfully conducted 472 auctions and awarded 

$20.04 trillion in Treasury securities – both records for a single year. Fiscal Service also set 

record highs on April 26, 2021, with $267 billion awarded on a single day and on September 8, 

2021, with six auctions held in a single day. Thirteen auctions were held the week of January 25, 

matching the weekly record that was set in FY 2020. Debt financing activities continue to be 

elevated, evidenced by the 45 percent increase in the number of auctions conducted above the 

pre-pandemic FY 2019 level of 325 auctions. Fiscal Service continued to see unprecedented 

demand for borrowing needs that began in FY 2020 with the COVID-19 pandemic. Through this 

increased financing activity, Fiscal Service continued to demonstrate operational excellence by 

successfully completing 100 percent of auctions by the scheduled close date and by releasing 100 

percent of auction results accurately. 

Debt Collection: Fiscal Service is the Government’s central debt collection agency and funds its 

delinquent debt collection operations through fees charged to agencies that refer debts for 

collection. During FY 2021, the COVID-19 pandemic continued to impact delinquent debt 

collection. Total delinquent debt collections fell below the original annual target due to several 

Federal agencies deciding to extend their delinquent debt collection suspensions in response to 

economic concerns related to the pandemic. Fiscal Service ended the year collecting $5.04 

billion in delinquent debt from all tools, falling short of the target of $8.81 billion. Of the $5.04 

billion collected in delinquent debt, $4.8 billion was collected through the Treasury Offset 

Program (TOP), and $269.3 million was collected through Cross-Servicing. TOP’s FY 2021 

collections included delinquent debts owed to states, such as $2.71 billion of delinquent child 

support and $294.8 million of state Unemployment Insurance. Fiscal Service anticipates ongoing 

concerns about the COVID-19 pandemic and associated economic recovery will continue to 

negatively affect collections in FY 2022 and potentially 2023.