Departmental Offices

Program Summary by Budget Activity

Dollars in thousands

 FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

 Enacted Annualized Request $ Change % Change

Budget Activity CR Rate 

Executive Direction $37,219 $37,450 $36,244 ($975) -2.62%

International Affairs and Economic Policy $59,277 $59,645 $55,475 ($3,802) -6.41%

Domestic Finance and Tax Policy $71,451 $71,892 $86,052 $14,601 20.43%

Terrorism and Financial Intelligence $100,000 $100,601 $97,738 ($2,262) -2.26%

Treasury-wide Management and Programs $40,441 $40,687 $36,266 ($4,175) -10.32%

Subtotal, Departmental Offices - S & E $308,388 $310,275 $311,775 $3,387 1.10%

Offsetting Collections - Reimbursables $69,502 $69,502 $69,502 $0 0.00%

Total Program Operating Level $377,890 $379,777 $381,277 $3,387 0.90%

Direct FTE 1,199 1,199 1,171 (28) -2.34%

Reimbursable FTE 172 172 132 (40) -23.26%

Total FTE 1,371 1,371 1,303 (68) -4.96%

Summary

Departmental Offices (DO), as the 

headquarters bureau for the Department of the 

Treasury, provides leadership in economic and 

financial policy, terrorism and financial 

intelligence, financial crimes, and general 

management. The Secretary of the Treasury 

has the primary role of formulating and 

managing the domestic and international tax 

and financial policies of the federal 

government. Through effective management, 

policies, and leadership, the Treasury 

Department protects our national security 

through targeted financial actions, promotes 

the stability of the nation's financial markets, 

and ensures the government's ability to collect 

revenue and fund its operations.

The FY 2014 budget request supports DO’s 

leading role in accomplishing the Treasury 

strategic goals:

• Repair and Reform the Financial System 

and Support the Recovery of the Housing 

Market. 

• Enhance U.S. Competitiveness and 

Promote International Financial Stability 

and Balanced Global Growth. 

• Protect our National Security through 

Targeted Financial Actions. 

• Pursue Comprehensive Tax and Fiscal 

Reform. 

• Manage the Government’s Finances in a 

Fiscally Responsible Manner. 

DO also provides critical support and 

leadership to implement the Department’s 

priority goals: Increase electronic transactions 

with the public to improve service and prevent 

fraud and reduce costs as well as Increase 

voluntary tax compliance. 

Total resources requested to support DO 

activities for FY 2014 are $381,277,000 

including $311,775,000 from direct 

appropriations and $69,502,000 from 

offsetting collections and reimbursable 

programs.
DO FY 2014 Budget Highlights

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2012 Enacted 1,199 $308,388

FY 2013 Annualized CR Rate 1,199 $310,275

Changes to Base:

Adjustment to Request (12) ($9,059)

Non-recur CR Adjustment - ($1,887)

2013 One-time Office moves and 

Building Maintenance - ($1,650)

2013 Treasury-wide Management 

Savings (5) ($1,374)

2013 Administrative and Management 

Savings (4) ($2,031)

2013 International Affairs Program 

Reductions (3) ($2,117)

Maintaining Current Levels (MCLs): - $3,663

Pay-Raise - $1,678

Non-Pay - $1,985

Non-Recurring Costs: - ($1,380)

One-time contract costs - ($1,380)

Efficiency Savings: (13) ($5,889)

Policy Office savings and staff 

reductions (14) ($2,306)

Management and Administrative 

savings and staff reductions (6) ($1,915)

Non-salary reductions - ($806)

Contract support cuts 7 ($630)

Rationalize cost sharing across 

functions - ($232)

Transfers: (8) ($1,800)

Office of Financial Innovation and 

Transformation (8) ($1,800)

Subtotal Changes to Base (33) ($14,465)

Total FY 2014 Base 1,166 $295,810

Program Changes:

Program Decreases: - ($1,435)

Terrorism and Financial Intelligence 

contract reductions - ($821)

Training/Background investigation 

contract reductions - ($69)

International Affairs travel reductions - ($225)

International Affairs contract reductions - ($320)

Program Increases: 5 $17,400

Financial Capability Innovation Fund 1 $5,000

Gulf Coast Restoration Trust Fund 3 $2,400

Gulf Coast Restoration Trust Fund 

Direct Component - $5,000

State Small Business Credit Initiative - $2,000

Treasury-wide Audit - $1,500

Treasury Evidence and Evaluation (incl. 

Intl Affairs Evaluator) 1 $1,500

Total FY 2014 Request 1,171 $311,775

FY 2014 Budget Adjustments

Adjustment to Request

Non-recur CR Adjustment -$1,887,000 / +0 

FTE

The across-the-board 0.612 percent increase 

provided in the CR through March 27, 2013 is 

non-recurred.

2013 One-time Office moves and Building 

Maintenance -$1,650,000 / +0 FTE

One-time FY 2012 funding supported repairs 

of the electrical transformer vaults and the 

reallocation and reconfiguration of office 

space in support of DO’s leased office space 

reduction effort.

2013 Treasury-wide Management Savings 

-$1,374,000 / -5 FTE

Savings will be achieved through the 

elimination of positions and the reduction of 

management program activities. 

2013 Administrative and Management Savings 

-$2,031,000 / -4 FTE

Savings will be achieved through the 

elimination of positions and more efficient use 

of administrative activities.

2013 International Affairs Program 

Reductions -$2,117,000 / -3 FTE

The Office of International Affairs (IA) will 

achieve savings by streamlining operations

and seeking reduced reporting requirements. 

This reduction includes a reallocation of 2 

FTE for the Treasury attaché program. 

Maintaining Current Levels (MCLs)

Pay-Raise +$1,678,000 / +0 FTE

The President's Budget proposes a one percent 

pay-raise for federal employees in 2014.

Non-Pay +$1,985,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment.
Non-Recurring Costs

One-time contract costs -$1,380,000 / +0 FTE

Reductions include: $1,000,000 for FY 2013 

contract transition requirements for DO IT 

infrastructure; $350,000 for Office of 

Emergency Programs contracts that supported 

Treasury-wide and DO standards for 

operations performance planning and a

Workforce Preparedness Initiative; and 

$30,000 for personally identifiable information 

compliance software.

Efficiency Savings

Policy Office savings and staff reductions 

-$2,306,000 / -14 FTE

DO policy offices propose the following 

efficiencies: Domestic Finance will cut 

spending by $658,000 including elimination of 

three positions. The Office of Foreign Assets 

Control will eliminate six positions totaling 

$930,000. The Office of International Affairs 

will eliminate two administrative positions for 

a savings of $150,000. The Office of the 

Secretary will eliminate two positions and 

reduce non-salary expenses for a savings of 

$324,000. The Office of the General Counsel 

will eliminate one position and delay hiring for 

savings of $244,000. The proposed savings do 

not impact the direct mission of DO. 

Management and Administrative savings and 

staff reductions -$1,915,000 / -6 FTE

Savings of $175,000 will be achieved through 

the elimination of one position in the Office of 

Strategic Planning and Performance 

Improvement and delayed hiring in the Office 

of the Chief Human Capital Officer. Savings 

of $1,298,000 will be achieved through utility 

savings, eliminating the employee-parking 

subsidy, and reducing support for contracted 

services. Savings of $442,000 will be 

achieved by not backfilling four positions 

within the DO Operations organization, and 

one position in the Office of Privacy, 

Transparency, and Records.

Non-salary reductions -$806,000 / +0 FTE

The Office of Terrorism and Financial 

Intelligence will generate savings of $419,000 

through the reduction of travel, training, and 

subscriptions. The Treasurer of the United 

States will reduce travel by $21,000, and 

management and administrative offices will 

take various non-salary reductions, totaling 

$366,000.

Contract support cuts -$630,000 / +7 FTE

DO will achieve contract efficiencies without 

any impact on mission by reducing its 

shipping contracts by $50,000, converting an 

emergency management program assistant 

contractor position to a federal position for 

savings of $150,000, converting six contractor 

positions in DO Operations to federal positions 

for a savings of $180,000, and rationalizing 

the cost sharing between DO S&E and 

Working Capital Fund (WCF) for the Treasury 

Operations Center, saving $250,000.

Rationalize cost sharing across functions 

-$232,000 / +0 FTE

The Office of International Affairs (IA) will 

consolidate and renegotiate contracts for 

services such as private financial market 

information subscriptions to achieve $157,000 

in savings. IA will also achieve $75,000 in 

savings by rationalizing costs and functions 

between the DO Salaries and Expenses (DO 

S&E) and the Office of Technical Assistance 

(OTA), which is funded by the International 

Affairs budget and allocated through the 

Department of State, Foreign Operations, and 

Related Agencies appropriation.

Transfer

Office of Financial Innovation and 

Transformation -$1,800,000 / -8 FTE

Treasury proposes to realign the Office of 

Financial Innovation and Transformation (FIT) 

from the Office of the Fiscal Assistant 

Secretary in DO to the Bureau of the Fiscal 
Service (Fiscal Service). This proposed 

realignment would transfer eight FTE and $1.8 

million in appropriated resources from the DO 

S&E base to the Fiscal Service S&E base. 

Placing FIT within the Fiscal Service will 

improve the planning and implementation of 

FIT’s initiatives by more closely aligning 

strategic direction with operational 

implementation which is performed by Fiscal 

Service. The Fiscal Assistant Secretary will 

continue to provide high-level policy guidance 

and oversight of FIT under this structure.

Program Decreases

Terrorism and Financial Intelligence contract 

reductions -$821,000 / +0 FTE

TFI will reduce contractor support by 

$121,000. An additional $700,000 reduction 

will affect intelligence analysis and related 

services. This decrease reduces TFI reliance 

on contractor personnel, thereby saving 

taxpayer dollars. TFI staff will be realigned 

when necessary to address surge workload 

requirements.

Training/Background investigation contract 

reductions -$69,000 / +0 FTE

TFI will reduce non-salary expenses in the 

area of training and the administration of 

background investigations. Treasury will 

eliminate 10-15 investigations annually by 

reviewing the requirements for previously 

cleared personnel to maintain access to 

classified information prior to commencing 

security clearance renewal investigations. 

Depending upon the type of clearance, the 

costs vary greatly.

International Affairs travel reductions 

-$225,000 / +0 FTE

IA will evaluate alternatives to some travel, in 

order to achieve the same programmatic output 

at a lower cost.

International Affairs contract reductions 

-$320,000 / +0 FTE

IA will save $185,000 by terminating two 

personnel contracts that provide several policy 

offices access to surge administrative capacity. 

Additionally, IA will not backfill departing,

non-mission critical, locally employed staff 

working with Treasury Attachés at select posts 

around the world, generating approximately 

$135,000 in savings.

Program Increases

Financial Capability Innovation Fund 

+$5,000,000 / +1 FTE

Treasury requests $5,000,000 and one FTE to 

administer a Financial Capability Innovation 

initiative that will support development of 

financial access and financial capability tools 

targeted to low- and moderate income persons, 

to encourage savings and improve their 

financial management capabilities.

Gulf Coast Restoration Trust Fund 

+$2,400,000 / +3 FTE

The Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012 

(RESTORE Act) established the Gulf Coast 

Restoration Trust Fund (Trust Fund) to hold 

80 percent of the civil and administrative 

penalties collected from parties responsible for 

the Deepwater Horizon oil spill. The newly 

established Gulf Coast Restoration Council 

and Treasury will administer the penalties 

supporting environmental and economic 

restoration of the Gulf Coast region. The 

RESTORE Act gives Treasury significant new 

programmatic responsibilities relating to 

expenditures from the Trust Fund, including: 

performing certain ministerial duties regarding 

the investment; deposit and disbursement of 

funds; establishing compliance and auditing 

procedures; and providing independent 

oversight of the states to ensure that amounts 

in the Trust Fund are expended as intended.
Gulf Coast Restoration Trust Fund Direct 

Component +$5,000,000 / +0 FTE

Funds are requested for administration of the 

components of the Gulf Coast Restoration 

Trust Fund; these include the Direct 

component and Centers of Excellence 

Research Grants Program. In administering

these components, Treasury will stand up all 

the of the functions of a grant program and

hire contractors with subject matter expertise 

to review grant applications, issue grants, and 

administer awarded grants. 

State Small Business Credit Initiative 

+$2,000,000 / +0 FTE

Recipients of federal transfers under the State 

Small Business Credit Initiative (SSBCI) 

manage programs that improve access to 

capital for small businesses. The SSBCI will 

expand individualized technical assistance to 

state-level program managers in order to 

increase the effectiveness and rate of 

deployment of SSBCI funds. Since the SSBCI 

ends in 2017, some states may not find it 

worthwhile to independently invest in key staff 

to build capacity. This expansion of current 

efforts will provide individualized technical 

assistance to an additional 10 states that 

received transfers under SSBCI of 

approximately $13 million each. Technical 

assistance services will include training and 

support for program design, operations, and 

outreach to financial institutions provided by 

field staff. State-level programs are designed 

to catalyze private lending or investing to 

small businesses at a ratio of $10 in private 

funds to $1 in SSBCI funds. Enabling an 

additional 10 states to fully deploy credit 

support under SSBCI could result in up to $1.3 

billion in private loans to or investment in 

small business.

Treasury-wide Audit +$1,500,000 / +0 FTE

Treasury anticipates the current audit fees will 

increase by $1,500,000 beginning with the FY 

2013 audit period and continue at the 

increased rate through FY 2017. The previous 

fixed-price contract contained five option 

years ending in FY 2012. A new contract 

containing multiple option years is being 

competed and will be executed commencing 

with the FY 2013 audit period. 

Treasury Evidence and Evaluation (incl. Intl 

Affairs Evaluator) +$1,500,000 / +1 FTE

Financial Education: Treasury requests 

$1,335,000 for the Office of Consumer Policy 

to conduct research and evaluation in the areas 

of financial education and financial access in 

an effort to identify scalable, effective, 

evidence-based policy interventions. Efforts 

will include research and demonstrations to 

test the efficacy of policy interventions 

designed to increase the financial readiness 

and strengthen the financial knowledge of 

young people. This initiative is in line with 

the stated focus of the Financial Literacy and 

Education Commission (FLEC), a 21-member 

interagency working group of which Treasury 

serves as chair, and recommendations from the 

President’s Advisory Council on Financial 

Capability. Treasury will also conduct research 

to identify barriers to financial access, 

particularly among low- to moderate-income 

households, and potentially implement pilot 

demonstrations to test strategies for increasing 

access to high quality financial products. 

International Affairs: The Office of 

International Affairs requests $165,000 and 1 

FTE to build capacity in the use of evidence 

and evaluation to help shape resource 

allocations and improve performance across 

IA’s portfolio. Initial projects for IA’s 

program evaluator will leverage data from the 

Multilateral Development Banks to better 

mitigate threats to national security, expand 
export opportunities for American businesses, 

and address global challenges in areas like 

food security and the environment. The 

Program Evaluator would work closely with 

programmatic and operational staff to identify 

and develop sources of performance data 

across the portfolio to be integrated into the 

budgeting process.

Explanation of Budget Activities

Executive Direction ($36,244,000 from direct 

appropriations, $4,774,000 from reimbursable 

resources)

Provides direction and policy guidance to the 

Department, and interacts with Congress and 

the public on departmental policy matters.

International Affairs and Economic Policy

($55,475,000 from direct appropriations, 

$1,358,000 from reimbursable resources)

Monitors domestic and international economic 

conditions and collects and analyzes financial 

data.

Domestic Finance and Tax Policy

($86,052,000 from direct appropriations, 

$12,215,000 from reimbursable resources)

Monitors and provides economic and financial 

policy expertise in the areas of domestic 

finance and tax policy.

Terrorism and Financial Intelligence

($97,738,000 from direct appropriations, 

$32,797,000 from reimbursable resources)

Develops and implements strategies to counter 

terrorist financing and money laundering.

Treasury-wide Management and Programs

($36,266,000 from direct appropriations, 

$18,358,000 from reimbursable resources)

Provides strategic plans, and policy direction 

in the fields of human resources, information 

technology security, and financial 

administration that include the formulation and 

management of the budget.

Legislative Proposals

Departmental Offices has no legislative 

proposals.

New Mandatory Program Proposals

Pay for Success

Treasury proposes $300 million in a one-time 

capped mandatory appropriation to establish a 

new Pay for Success Incentive Fund, which 

non-profit intermediaries and state and local 

governments will be able to leverage to 

provide credit enhancements and successbased payments to investors in public 

programs that impact families and 

communities. The Fund is designed to 

encourage innovation, and accelerate the use 

of evidence-based approaches by lowering the 

risk associated with initial investments, and 

encouraging state and local governments to 

support programs that will yield federal 

savings. 
DO Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

International Affairs and Economic 

Policy

Percentage of MDB Grant and Loan 

Proposals Containing Satisfactory 

Frameworks for Results Measurement 

92.5 94.0 94.0 92.0 100.0

Domestic Finance and Tax Policy Variance between estimated and actual 

receipts (annual forecast) (%)

5.8 4.4 3.8 4.5 4.5

Terrorism and Financial 

Intelligence

Impact of TFI programs and activities 7.4 7.6 8.1 8 8.5

Treasury-wide Management and 

Programs

Procurement Savings 236.7 325.9 243.6 95.0 TBA

Key: DISC - Discontinued and B - Baseline

Description of Performance

The following performance measures provide 

a snapshot of the FY 2013 DO performance 

plan:

Percentage of MDB Grant and Loan Proposals 

Containing Satisfactory Framework for 

Results Measurement: This monitors the 

percentage of project proposals containing 

satisfactory performance measures in order to 

help ensure accountability in the lending and 

grant making of the MDBs. In FY 2012, 94 

percent of proposals had performance 

measures, which met Treasury’s target of 90 

percent. IA’s target for this measure is 92 

percent in FY 2013 and 94 percent in FY 

2014.

Variance between estimated and actual 

receipts (annual forecast) (%): As part of 

managing the government’s central operating 

account and cash position, the Office of Fiscal 

Projections (OFP) forecasts federal receipts, 

outlays, and debt transactions to ensure that 

adequate funds are available daily to cover 

federal payments. To determine its overall 

effectiveness, OFP measures the variance 

between actual and projected government 

receipts and outlays. The actual variance for 

FY 2012 was 3.8 percent for receipts, 

significantly lower than the 5.0 percent target 

for FY 2012, and a 0.6 percentage 

improvement over FY 2011. The target for FY 

2013 and FY 2014 is 4.5 percent.

Impact of TFI Programs and Activities: In 

order to gauge its performance, TFI created a 

composite measure consisting of three 

program office focus areas related to its 

mission and strategic goals, including 

customer outreach, increasing budget 

production of intelligence products, and 

implementing IT modernization projects. TFI 

exceeded its performance target on this 

composite measure. The FY 2014 goal for this 

metric is 8.5.

Treasury-wide Procurement savings: This goal 

measures percentage saved based on contract 

spending (excluding metals). The metric 

supports Treasury’s goal to advance efficiency 

and cost-effectiveness in the Department’s 

acquisition activities. In FY 2012, Treasury 

realized $243.6 million in acquisition savings 

versus its $92 million goal. The FY 2013 

target is $95 million and the FY 2014 target is 

projected to be similar.