Department of the Treasury 

Financial Stability Oversight 

Council 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement ................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .......................................................................................... 3

1.2 – Budget Adjustments Table ............................................................................................ 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ........................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Financial Stability Oversight Council .................................................................................. 6

2.1.1 – Financial Stability Oversight Council Resources and Measures .................................... 6

C – FDIC Reimbursement .......................................................................................................... 7

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

D – Evidence-Building Activity ................................................................................................. 7

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments ......................................................................................... 8

 
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Section I – Budget Request 

A – Mission Statement 

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system. 

B – Summary of the Request 

The Financial Stability Oversight Council (FSOC or Council) is estimating a fiscal year 

(FY) 2022 funding level of $10.821 million, which is an increase of $0.370 million from the 

FY 2021 estimated funding level. This request includes $6.520 million for the FSOC Secretariat 

and the Office of the Independent Member with Insurance Expertise, and $4.301 million to 

reimburse the Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by 

law. On March 31, 2021, the Council re-established the Hedge Fund Working Group to share 

data, identify risks and address potential issues related to hedge funds. The Council also 

committed to the coordination of regulators’ efforts to improve the measurement and 

management of climate-related risks in the financial system as the country transitions to a netzero carbon economy. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022 

Budgetary Resources Actual Estimate Estimate % Change 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting 

Collections Assessments 0 $8,831 0 $6,832 0 $9,627 NA 40.9% 

Interest 0 $65 0 $9 0 $60 NA 584.9% 

Recoveries 0 $282 0 $605 0 $420 NA -30.6% 

Restoration of Sequestration 

Rescission 0 $486 0 $525 0 $390 NA -25.7% 

Unobligated Balances from 

Prior Years 0 $6,876 0 $7,463 0 $5,205 NA -30.3% 

Total Revenue/Offsetting 

Collections 0 $16,539 0 $15,433 0 $15,701 NA 1.7% 

Expenses/Obligations 

FSOC 15 $4,865 18 $6,000 21 $6,520 16.7% 8.7% 

FDIC 0 $2,993 0 $4,451 0 $4,301 NA -3.4% 

Total Expenss/Obligations 15 $7,858 18 $10,451 21 $10,821 16.7% 3.5% 

Sequestration Reduction (525) (390) (552) 

Net Results 15 8,156 18 4,592 21 4,328 16.7% -5.7% 

1) The FSOC is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and 

interim final rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf 

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

3) The amounts of obligations, assessments, interest, and FTEs in the table above differ from the amounts in the 2022 President’s Budget . This 

difference is primarily due to adjustments for lower interest income and higher-than-anticipated recoveries as well as lags in hiring due to the 

COVID-19 pandemic and other factors in FY 2020 and FY 2021. 

 
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1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2021 Estimate 18 $10,451 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $233 

Pay Annualization (1.0% average pay raise) 0 $9 

Pay Raise (2.7% average pay raise) 0 $72 

FERS Contribution Increase 0 $14 

Non-Pay 0 $139 

Efficiency Savings 0 ($190) 

Subtotal Changes to Base 0 $43 

FY 2022 Current Services 18 $10,494 

Program Changes: 

Program Decreases 0 ($150) 

FDIC Cost Adjustment 0 ($150) 

Program Increases: 3 $477 

FTE Adjustment 3 $477 

FY 2022 Estimate 21 $10,821 

Note: The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. 

This difference is primarily due to adjustments in anticipated spending for FSOC related to lags in hiring due to the COVID-19 

pandemic and other factors efforts. 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..........................................................+$233,000 / +0 FTE 

Pay Annualization (1.0%) +$9,000 / +0 FTE: 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$72,000 / +0 FTE: 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$14,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$139,000 / +0 FTE 

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

and equipment. 

Efficiency Savings........................................................................................-$190,000/ +0 FTE 

DO will achieve cost savings and efficiencies in contract services through more efficient contract 

oversight, consolidating contracts where appropriate, and partnering with other agencies and DO 

components to leverage common technology or administrative support needs. 

Program Decreases.........................................................................................-$150,000 / +0 FTE 

FDIC Cost Adjustment -$150,000 / +0 FTE 

Cost decrease for FDIC reimbursable expenses. FDIC reimbursable expenses for FY 2022 are 

estimated at a commensurate level with FY 2019, which reflects a slight decrease from FY 2021.
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Program Increases ......................................................................................+$477,000 / +3 FTE 

FTE Adjustment +$477,000 / +3 FTE 

The Secretariat expects to hire additional staff in FY 2021, bringing total Secretariat and Office 

of the Independent Member staff from its FY 2020 level of 15 onboards to 21 onboards. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,282 2,562 3,024 

11.3 - Other than full-time permanent 169 0 0 

11.5 - Other personnel compensation 66 174 206 

11.9 - Personnel Compensation (Total) 2,517 2,736 3,230 

12.0 - Personnel benefits 742 788 930 

Total Personnel and Compensation Benefits $3,259 $3,524 $4,160 

21.0 - Travel and transportation of persons 16 55 53 

25.1 - Advisory and assistance services 153 349 336 

25.2 - Other services from non-Federal sources 10 19 19 

25.3 - Other goods and services from Federal sources 4,498 5,480 5,270 

26.0 - Supplies and materials 245 1,012 973 

31.0 - Equipment 2 12 11 

Total Non-Personnel $4,923 $6,927 $6,661 

Total Obligations $8,182 $10,451 $10,821 

 

Full-time Equivalents (FTE) 15 18 21 

The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. This difference is 

primarily due to adjustments in anticipated spending for FSOC related to lags in hiring due to the COVID-19 pandemic and other factors. 

D – Appropriations Language and Explanation of Changes 

The FSOC receives no annual discretionary appropriations from Congress. 

E – Legislative Proposals 

The FSOC does not have any legislative proposals at this time. 
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Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 – 

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

The Council is chaired by the Secretary of the Treasury and consists of ten voting members and 

five nonvoting members who serve in an advisory capacity. The Council brings together the 

expertise of the federal financial regulators, an insurance expert appointed by the President, and 

state regulators. 

The Council’s three statutory purposes are to: 

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace; 

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

B – Financial Stability Oversight Council 

($6,-520,000 from Assessments): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents, as well as individual Council member agencies’ performance 

documents, provide information to the public relevant to the Council’s performance. 

Information on the Council is provided on www.treasury.gov, www.fsoc.gov, and member 

agency websites to provide transparency and accountability. 

2.1.1 – Financial Stability Oversight Council Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $7,157 $5,655 $4,966 $5,246 $4,865 $6,000 $6,520 

Budget Activity Total $7,157 $5,655 $4,966 $5,246 $4,865 $6,000 $6,520 

Full-time Equivalents (FTE) 22 17 13 14 15 18 21 

The amounts of obligations and FTEs for 2021 in the table above differ from the amounts in the 2022 President’s Budget. 

This difference is primarily due to adjustments in anticipated spending for FSOC related to slower-than-anticipated hiring efforts. 
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During 2020 the Council met a total of five times. During the year, member agencies provided 

updates on the impact of COVID-19 and steps taken by agencies in response to the pandemic. 

In March 2020, the Council approved by notational vote the final rule for assessments to fund the 

Financial Research Fund (FRF). The rule increased the consolidated assets under control for 

bank holding companies and nonbank financial companies supervised by the Board of Governors 

of the Federal Reserve System (the Board) to be subject to assessment from $50 billion to $250 

billion. 

On December 3, 2020, the Council published its annual report. The report analyzed the financial 

effects of the COVID-19 pandemic and the policy responses taken to mitigate its impact on the 

economy and the financial system, in addition the annual report described significant financial 

market and regulatory developments, potential emerging threats to U.S. financial stability, 

recommendations to promote U.S. financial stability, and the activities of the Council. 

C – FDIC Reimbursement 

($4,301,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of certain reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement to the Chairperson of the Council, who shall arrange for prompt reimbursement 

to the FDIC. FDIC expenses are for rule writing and resolution planning. 

2.1.2 – FDIC Reimbursement Resources and Measures 

Dollars in Thousands FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $6,571 $5,126 $4,162 $4,301 $2,993 $4,451 $4,301 

Budget Activity Total $6,571 $5,126 $4,162 $4,301 $2,993 $4,451 $4,301 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

D – Evidence-Building Activity 

To ensure all research, recommendations, and decisions of the Council are evidence-based, the 

Council routinely uses a variety of data sources. These include commercially available products 

widely used throughout the financial services and markets, publicly available data from U.S. 

federal and state agencies, international governments, trade associations, academic and public 

policy groups, and non-public data from financial regulatory agencies. At the direction of the 

Council, member agency staff may also produce original research and analysis on specific 

financial and economic topics. 

Additionally, refer to the Executive Summary for a discussion of Treasury-wide evidencebuilding functions. 
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Section III – Additional Information 

A – Summary of Capital Investments 

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at:

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports.