Executive Summary - 1 

FY 2021 EXECUTIVE SUMMARY 

President’s Budget Discretionary Appropriation Request 

Dollars in Thousands

FY 2019 Enacted 

(post IRS 

transfer)

FY 2020 

Enacted

FY 2020 Enacted 

(post IRS 

transfer)

FY 2021 

President's 

Budget

Management & Financial $1,458,758 $1,538,377 $1,538,377 $1,300,909 

Departmental Offices Salaries and Expenses $214,576 $228,373 $228,373 $241,473 

Post-transfer Oversight of USSS (non-add) $0 $0 $0 $1,500 

Committee on Foreign Investment in the United States (CFIUS) Fund $0 $20,000 $20,000 $20,000 

CFIUS Fees $0 ($10,000) ($10,000) ($20,000)

Subtotal CFIUS Fund (non add)1 $0 $10,000 $10,000 $0 

Office of Terrorism and Financial Intelligence $159,000 $169,712 $169,712 $172,751 

Cybersecurity Enhancement Account $25,208 $18,000 $18,000 $18,000 

Treasury Capital Investments and Modernization Fund2 $4,000 $6,118 $6,118 $13,500 

Office of Inspector General $37,044 $41,044 $41,044 $39,335 

Treasury Inspector General for Tax Administration $170,250 $170,250 $170,250 $171,350 

Special Inspector General for TARP $23,000 $22,000 $22,000 $17,500 

Community Development Financial Institutions Fund $250,000 $262,000 $262,000 $14,000 

Financial Crimes Enforcement Network $117,800 $126,000 $126,000 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $119,600 $119,600 $119,600 $125,837 

Bureau of the Fiscal Service $338,280 $340,280 $340,280 $350,200 

Digitization of Unredeemed Matured Savings Bonds Records $0 $25,000 $25,000 $10,000 

Tax Administration3

Taxpayer Services $2,491,554 $2,511,554 $2,535,554 $2,562,554 

Enforcement $4,665,600 $5,010,000 $4,909,500 $5,071,260 

Operations Support $3,918,400 $3,808,500 $3,885,000 $4,104,689 

Subtotal $11,075,554 $11,330,054 $11,330,054 $11,738,503 

Business Systems Modernization $150,000 $180,000 $180,000 $300,000 

Tax Reform Implementation $77,000 $0 $0 $0 

IRS Total Excluding Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,038,503 

Cap Adjustment $0 $0 $0 $400,000 

IRS Total, Including Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap 

Adjustment4 $12,761,312 $13,048,431 $13,048,431 $13,339,412 

United States Secret Service 5 $2,248,159 $2,415,845 $2,415,845 $2,360,538 

Operations and Support $2,148,528 $2,336,401 $2,336,401 $2,310,296 

Procurement, Construction & Improvements $97,131 $66,989 $66,989 $38,305 

Research and Development $2,500 $12,455 $12,455 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap 

Adjustment6 $15,009,471 $15,464,276 $15,464,276 $15,699,950 

Treasury International Programs $1,547,697 $1,736,780 $1,736,780 $1,592,244 

Multilateral Development Banks $1,348,122 $1,522,205 $1,522,205 $1,481,244 

Food Security $30,000 $30,000 $30,000 $0 

Environmental Trust Funds $139,575 $139,575 $139,575 $0 

Office of Technical Assistance $30,000 $30,000 $30,000 $33,000 

Debt Restructuring - Tropical Forest Conservation Act $0 $15,000 $15,000 $0 

Somalia - Bilateral Debt Relief $0 $0 $0 $78,000 

Total, Treasury excluding Cap Adjustment $16,557,168 $17,201,056 $17,201,056 $17,292,194 

Total, Treasury $16,557,168 $17,201,056 $17,201,056 $17,692,194 

6/ U.S. Secret Service appropriations are included in the subtotals for FY 2019 and FY 2020 for comparison purposes, but were not included in Treasury’s enacted 

appropriations in those years.

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. FY 2019 and FY 2020 enacted amounts exclude 

rescissions and administrative adjustments ($5.7M in FY 2019/$.7M in FY 2020).

4/ Treasury’s enacted appropriation in FY 2019 was $12,561 million, after a $200 million rescission from the Treasury Forfeiture Fund.

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries 

and Expenses.

3/ FY 2020 Enacted (post IRS transfer) includes a proposed transfer of $100.5 million from Enforcement to Taxpayer Services ($24 million) and Operations Support 

($76.5 million). FY 2019 Enacted (post IRS transfer) includes a transfer of $194 million from Enforcement to Operations Support. $77 million for implementation of 

the Tax Cuts and Jobs Act was allocated to Taxpayer Services ($65 million) and Enforcement ($12 million).

2/ Previously known as the Department-wide Systems and Capital Investments Program.
Executive Summary - 2 

MISSION STATEMENT 

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad; strengthen national security by 

combating threats and protecting the integrity of the financial system; and manage the U.S. 

Government’s finances and resources effectively. 

OVERVIEW OF REQUEST 

 The Budget requests $15.7 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $236 million or 1.5 percent increase from the FY 2020 enacted 

level. Excluding the United States Secret Service, Treasury requests $13.3 billion in base 

discretionary resources, a $291 million or 2.2 percent increase from FY 2020 enacted levels. It 

also requests $1.6 billion for Treasury’s international programs, a $145 million or 8.3 percent 

decrease from the FY 2020 enacted level. The Budget: 

 Proposes to transfer of the United States Secret Service (USSS) from the Department of 

Homeland Security to Treasury as a standalone bureau. The request provides USSS with 

$2.36 billion in base discretionary resources to support the 2020 Presidential election through 

inauguration, continue growth in staff to meet mission expansion, and advanced 

countermeasures to address established and evolving threats. 

 Provides the IRS with $12.0 billion from base discretionary appropriations to collect $3.6 

trillion in revenue, process more than 255 million tax returns, and continue to transform 

systems to improve taxpayer service and experience and tax administration over the longterm. 

o The request provides $300 million for multi-year modernization efforts to deliver 

long-term, systemic transformation of service and compliance for millions of 

taxpayers, small businesses, and corporations, as well as put IT operations and 

maintenance costs on a sustainable path. The IRS will continue developing a case 

management solution to replace 60 legacy systems, new digital service options 

including electronic notices and live chat assistance, and new web applications to 

streamline taxpayer filing, payment, and authentication. 

o The request proposes $106 million for Taxpayer First Act implementation to 

revamp IRS customer service, introduce new taxpayer protections, and deliver 

new online service platforms to facilitate filing and payment. 

o The request includes $5.1 billion in the enforcement account to continue building 

compliance staffing and protect billions of dollars in revenue. The IRS is one of 

the best investments in the federal government with an overall return on 

investment of $5 for every $1 invested, not including significant deterrence 

effects. Every dollar invested in enforcement requires a funding increase in 

operations support for technology and administrative costs. 

o In addition to the amounts above, the request includes a program integrity 

initiative that will generate approximately $79 billion in additional revenue and 

will cost approximately $15 billion, yielding estimated net savings of $64 billion 

over ten years. 

 Provides $241 million for Treasury Departmental Offices (including $20 million for the 

Committee on Foreign Investment in the United States) growing workload with funding 
Executive Summary - 3 

increases to continue strengthening cybersecurity in the financial services sector, provide 

impact analysis for tax regulations, and enhance and broaden Treasury’s evidence-based 

decision making and program evaluation. Contingent on the transfer of USSS to Treasury, 

the request includes $1.5 million for departmental oversight. 

 Provides $173 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a 

$3 million increase over the FY 2020 enacted level; and $127 million for the Financial 

Crimes Enforcement Network (FinCEN), a $1 million increase over the FY 2020 enacted 

level. These increases will allow TFI and FinCEN to continue their critical work 

safeguarding the financial system from abuse and combating other national security threats 

using non-kinetic economic tools. These additional resources will be deployed to bolster data 

analytic and cybercrime enforcement capabilities, fortify Bank Secrecy Act data, and counter 

the financial networks that support terrorists, organized transnational crime, weapons of mass 

destruction proliferators, and other threats. 

 Proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice’s 

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to Treasury’s Alcohol and 

Tobacco Tax and Trade Bureau (TTB). This transfer would leverage TTB’s resources and 

expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus 

on its firearms and explosives mandates, enabling both agencies to more efficiently and 

effectively carry out their core missions of protecting the public. 

 Provides $1.6 billion for Treasury’s International Programs to support U.S. leadership in the 

International Financial Institutions. The budget proposes to extend and increase the IMF 

New Arrangements to Borrow, which preserves U.S. control over the activation of 

emergency IMF resources and reflects progress on a variety of institutional reforms at the 

IMF. In addition, it provides for critical investments to safeguard U.S. leadership in the 

Multilateral Development Banks (MDBs) while continuing to press for necessary reforms. 

Recently negotiated reforms – led by the United States - will improve financial management 

and debt sustainability while increasing the MDBs’ focus on infrastructure, women’s 

economic empowerment, and assistance to fragile states. The request seeks authorization and 

funding for U.S. participation in an African Development Bank capital increase as well as 

new pledges to the World Bank’s International Development Association and the African 

Development Fund. It also includes authorization to vote in favor of a capital increase at the 

International Finance Corporation, which will not require any U.S. funding. The budget 

proposes $33 million for Treasury’s Office of Technical Assistance and $78 million for U.S. 

debt relief as part of the Heavily Indebted Poor Countries (HIPC) debt relief process for 

Somalia. 

 Proposes to impose appropriate Congressional oversight of the Treasury Financial Stability 

Oversight Council and Office of Financial Research (OFR) by subjecting their activities to 

the normal appropriations process. The Budget continues the reduced level of OFR spending 

commensurate with the renewed fiscal discipline being applied across the Federal 

Government. 
Executive Summary - 4 

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)
Executive Summary - 5 

(Dollars in Thousands)

Treasury Goal/Objective Boost U.S. Economic 

Growth

Promote Financial 

Stability

Enhance National 

Security

Transform 

Government-wide 

Financial 

Stewardship

Achieve Operational 

Excellence Total

Management & Financial $392,778 $38,250 $348,652 $439,872 $81,358 $1,300,909 

Departmental Offices Salaries and Expenses $82,991 $38,250 $48,938 $21,437 $49,858 $241,473 

Committee on Foreign Investment in the United States Fund

1 $20,000 $20,000 

CFIUS Fees ($20,000) ($20,000)

Office of Terrorism and Financial Intelligence $172,751 $172,751 

Cybersecurity Enhancement Account $18,000 $18,000 

Treasury Capital Investments and Modernization Fund

2 $13,500 $13,500 

Office of Inspector General $39,335 $39,335 

Treasury Inspector General for Tax Administration $171,350 $171,350 

Special Inspector General for TARP $17,500 $17,500 

Community Development Financial Institutions Fund $12,600 $1,400 $14,000 

Financial Crimes Enforcement Network $126,963 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $125,837 $125,837 

Bureau of the Fiscal Service3 $360,200 $360,200 

Tax Administration $12,038,503 $12,038,503 

IRS Taxpayer Services $2,562,554 $2,562,554 

IRS Enforcement $5,071,260 $5,071,260 

IRS Operations Support $4,104,689 $4,104,689 

Business Systems Modernization $300,000 $300,000 

IRS Cap Adjustment 4 $400,000 $400,000 

IRS Total, Including Cap Adjustment $12,438,503 $0 $0 $0 $0 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap Adjustment $12,431,281 $38,250 $348,652 $439,872 $81,358 $13,339,412 

United States Secret Service5 $688,943 $0 $1,126,932 $0 $544,663 $2,360,538 

Operations and Support $688,943 $1,114,995 $506,358 $2,310,296 

Procurement, Construction & Improvements $38,305 $38,305 

Research and Development $11,937 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap Adjustment $13,120,224 $38,250 $1,475,584 $439,872 $626,021 $15,699,950 

Treasury International Programs $33,000 $1,559,244 $1,592,244 

Total, Treasury excluding Cap Adjustment $13,120,224 $71,250 $1,475,584 $1,999,116 $626,021 $17,292,194 

Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $42,154 $42,154 

Terrorism Risk Insurance (Administrative) $3,000 $3,000 

Financial Stability Oversight Council $5,220 $5,220 $10,439 

Office of Financial Research $37,636 $37,636 $75,271 

Bureau of Engraving and Printing $888,700 $888,700 

United States Mint $2,547,197 $2,547,197 

Office of the Comptroller of the Currency $882,721 $220,680 $1,103,401 

Federal Reserve Bank $645,520 $645,520 

Reimbursable to the Federal Reserve Banks $176,799 $176,799 

Financial Agent Services $865,400 $865,400 

Total, Non-Appropriated Level $4,361,473 $263,535 $3,000 $1,729,873 $0 $6,357,881 

Grand Total $17,481,696 $334,785 $1,478,584 $3,728,989 $626,021 $23,650,075 

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021.

4/ The FY 2021 budget includes a program integrity cap adjustment of $400 million (Enforcement $280 million, Operations Support $120 million).

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries and Expenses.

2/ Previously known as the Department-wide Systems and Capital Investments Program.

3/ The FY 2020 Enacted levels include $25M , available until expended, for Matured Unredeemed Debt. 

FY 2021 President’s Budget by Strategic Goal 
Executive Summary - 6 

DO1 CFIUS2 TFI Cyber TCIMF3 OIG TIGTA SIGTARP CDFI FinCEN TTB FS4 USSS1 IRS Total

FY 2020 Enacted $228,373 $10,000 $169,712 $18,000 $6,118 $41,044 $170,250 $22,000 $262,000 $126,000 $119,600 $365,280 $2,415,845 $11,510,054 $15,464,276 

Maintaining Current Levels (MCLs) $5,472 $0 $3,983 $0 $0 $982 $4,354 $510 $641 $2,827 $2,748 $9,503 $74,701 $452,085 $557,806

Pay Annualization $1,023 $757 $237 $1,048 $117 $99 $380 $590 $1,666 $45,875 $67,757 $119,549

Pay Raise $998 $738 $231 $1,022 $115 $96 $390 $575 $1,625 $11,388 $66,080 $83,258

FERS Contribution Increase $1,100 $800 $304 $1,582 $141 $131 $524 $714 $1,901 $14,146 $100,000 $121,343 

Labor Adjustment $1,805 $162,904 $164,709 

Non-Pay $2,351 $1,688 $210 $702 $137 $315 $1,533 $869 $2,506 $3,292 $55,344 $68,947 

Non-Recurring Costs ($2,539) ($18,000) ($6,118) ($1,300) ($32,796) ($101,718) ($162,471)Efficiency Savings/Reinvestment ($1,246) ($2,716) ($9,876) ($143,795) ($157,633)Other Adjustment/Initiative Annualization $10,000 $900 ($55,660) ($44,760)

Adjustments to Base $4,226 $10,000 ($1,272) ($18,000) ($6,118) $982 $4,354 $510 $641 $1,527 $3,648 ($23,293) ($92,553) $308,290 $192,942FY 2021 Base $232,599 $20,000 $168,440 $0 $0 $42,026 $174,604 $22,510 $262,641 $127,527 $123,248 $341,987 $2,323,292 $11,818,344 $15,657,218 

Program Decreases ($2,691) ($3,254) ($5,010) ($248,641) ($2,864) ($1,500) ($115,990) ($379,950)CFIUS User Fees ($20,000) ($20,000)Program Increases/Reinvestments $8,874 $4,311 $18,000 $13,500 $2,300 $4,089 $18,213 $153,236 $220,159 $442,682 

Subtotal, Program Changes $8,874 ($20,000) $4,311 $18,000 $13,500 ($2,691) ($3,254) ($5,010) ($248,641) ($564) $2,589 $18,213 $37,246 $220,159 $42,732 FY 2021 President's Budget funded from discretionary resources

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,038,503 $15,699,950 

Program Integrity Cap Adjustment $400,000 $400,000FY 2021 President's Budget including program integrity cap adjustment

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,438,503 $16,099,950 

1/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. $1.5 million of the Treasury‐wide Management and Programs request in 2021 is contingent on legislation enacting the transfer.

2/ CFIUS Fund enacted levels are net appropriations including user fees.

3/ Treasury Capital Investments and Modernization Fund (TCIMF) is formerly Department‐wide Capital Systems Investment Programs (DSCIP).

4/ FY 2020 non‐recurring costs includes MUD adjustment; program increases include $10M for MUD .

Summary of FY 2021 Increases and Decreases

(Dollars in Thousands)
Executive Summary - 7 

ORGANIZATION

Treasury is organized into the Departmental Offices, seven bureaus, and three offices of Inspector General. The 

Departmental Offices are primarily responsible for headquarters operations and policy formulation, while the 

bureaus are the operating units of the organization.

 
Executive Summary - 8 

DEPARTMENTAL OFFICES

Domestic Finance works to preserve confidence in the 

U.S. Treasury securities market, strengthen 

financial institutions and markets, and promote 

access to credit, in service to long-term economic 

strength and stability.

Terrorism and Financial Intelligence (TFI) uses 

unique policy, intelligence, enforcement and 

regulatory tools and authorities to disrupt and 

disable terrorists, criminals, and other national 

security threats while also safeguarding the 

financial system against abuse by illicit actors.

International Affairs protects economic prosperity 

and national security by working to foster a most 

favorable external environment for sustained jobs 

and economic growth.

Tax Policy develops and implements tax policies and 

programs, reviews regulations and rulings to 

administer the Internal Revenue Code, and 

provides revenue estimates for the President’s 

Budget.

Economic Policy reports on economic developments 

and assists in the determination of appropriate 

economic policies. It also reviews and analyzes 

domestic economic issues and financial market 

developments. 

The Treasurer of the United States serves as a 

principal advisor to the Secretary and leads the 

Office of Consumer Policy, which provides policy 

leadership, research, and analysis to foster 

economic growth and financial security for 

American families in a robust consumer 

marketplace. The Treasurer also oversees the U.S. 

Mint, including advising the Secretary on coinage 

matters and liaising with the Federal Reserve.

The Office of Management and Chief Financial Officer, 

manages the Department’s financial resources and 

oversees Treasury-wide programs, including 

human capital, organizational performance, 

information technology, acquisition, and diversity 

issues.

 

Other offices within Departmental Offices include 

the General Counsel, Legislative Affairs, and Public 

Affairs. 

INSPECTORS GENERAL

 

Three Inspectors General – the Office of Inspector 

General (OIG), the Treasury Inspector General for Tax 

Administration (TIGTA), and the Special Inspector 

General for the Troubled Asset Relief Program 

(SIGTARP) – provide independent audits, 

investigations, and oversight of Treasury and our 

programs. 
Executive Summary - 9 

BUREAUS1

The Alcohol and Tobacco Tax and Trade Bureau 

(TTB) collects federal excise taxes on alcohol, 

tobacco, firearms, and ammunition and enforces 

and administers laws covering production, use, and 

distribution of alcohol and tobacco products. 

The Bureau of Engraving and Printing (BEP) develops 

and produces U.S. currency notes, as well as secure 

documents for government use. 

The Financial Crimes Enforcement Network (FinCEN)

safeguards the financial system from illicit use and 

combats money laundering. It also promotes 

national security through the collection, analysis, 

and dissemination of financial intelligence and 

strategic use of financial authorities. 

The Bureau of the Fiscal Service (Fiscal Service)

promotes financial integrity and operational 

efficiency by operating the U.S. government’s 

collections and deposit systems, and providing 

central payment services to the American public on 

behalf of federal agencies. It also manages the 

collection of delinquent debt, borrows funds needed 

                                                            

1 Treasury proposes the transfer of the U.S. Secret 

Service from DHS as a stand-alone bureau. 

to operate the U.S. government through the sale of 

marketable and special-purpose U.S. Treasury 

securities, and accounts for the resulting debt. 

Additionally, it delivers administrative shared 

services to federal agencies and provides 

government-wide accounting and reporting. 

The Internal Revenue Service (IRS) determines, 

assesses, and collects U.S. tax revenue and helps 

taxpayers understand their tax responsibilities and 

combats tax-related fraud.

The United States Mint (U.S. Mint) designs, mints, 

and issues U.S. circulating, numismatic, and 

bullion coins, strikes Congressional gold medals 

and other medals of national significance, and 

maintains physical custody and protection of most 

of the nation’s gold and all its silver assets.

The Office of the Comptroller of the Currency (OCC) 

charters, regulates, and supervises national banks 

and federal savings associations as well as federal 

branches and agencies of foreign banks to ensure 

that they operate in a safe and sound manner, 

provide fair access to financial services, treat 

customers fairly, and comply with applicable laws 

and regulations. 
Executive Summary - 10 

TREASURY STRATEGIC MANAGEMENT

FRAMEWORK

The Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010 require 

agencies to identify goals, report progress against targets, and conduct data-driven reviews. These practices 

serve two key purposes for stakeholders within and outside of the organization — to assess the organization’s 

health and impact, and to enhance effective decision-making and strategy, including resource allocation. In this 

spirit, Treasury developed a strategic framework using best-in-class organizational performance practices to 

help achieve our strategic goals and objectives. 

ORGANIZATIONAL PERFORMANCE REVIEW CYCLE

Our organizational performance reviews provide a regular forum for open dialogue and coordination between 

bureau and departmental policy office management and leadership. We bring together different perspectives to 

set and align priorities, identify and solve problems, review agency performance, and drive results. The cycle 

integrates statutory requirements to conduct quarterly performance reviews of agency goals and a Strategic 

Objective Annual Review (SOAR). The SOAR process includes analyzing cross-cutting performance and 

identifying a set of strategic objectives as priority focus areas. In 2019, the Foundation for Evidence-Based 

Policy Act was signed into law to further advance the Federal Government’s evidence-building functions. In 

this fiscal year, Treasury approached the implementation of the evidence-building requirements by leveraging 

Treasury’s strategic management framework, including the SOAR, to initiate an agency learning agenda. 

At designated points throughout the fiscal year, we set annual priorities, evaluate progress against goals and 

objectives, discuss new strategies to improve program outcomes, and assess funding options to increase results 

for the agency. Treasury’s process and framework for managing to our strategic objectives and performance 

outcomes are described in Table 1 below. 

 
Executive Summary - 11 

Table 1: Strategic Framework Sessions

Fall

(October – November)

Winter

(February – March)

Spring

(April – May)

Summer

(June – July)

FocusOrganizational Performance SOAR Organizational Performance Budget Chair

Assistant Secretary for

Management/Performance

Improvement Officer

(ASM/PIO)

ASM/PIO and Deputy PIO ASM/PIO ASM/PIO and Budget

Officer

Goals/Outcomes  Review prior year’s

performance at the

bureau/office level

 Set priorities for year

ahead

 Recognize successes

 Identify shortfalls/

accountability

 Evaluate cross‐agency

progress toward strategic

objectives

 Identify strategic shifts/

validate Treasury priorities

 Outline potential topics

for annual review with the

Office of Management

and Budget (OMB)

 Assess progress on

priorities

 Identify necessary

adjustments/near‐term

improvements

 Surface problems or

assistance needed

 Recognize successes

 Identify shortfalls/

accountability

 Connect priorities to

future funding

 Explore

performance

impacts

 Strengthen

information

technology  

acquisition  

budgeting  

accountability

FY 2018 – 2022 STRATEGIC FRAMEWORK

The strategic framework comprises the Department’s FY 2018–2022 strategic goals and objectives and FY 

2018–2019 Agency Priority Goals (APGs), which align to specific objectives. All bureaus and offices align their 

programs and performance within this framework. In FY 2019, after Treasury’s annual review to assess 

progress towards the Department’s strategic objectives, Treasury leadership identified three key updates. First, 

we realigned Strategic Objective 2.2 (Foreign Exchange Practices) as a new strategy under Strategic Objective 

1.4 (Free and Fair Trade). Second, we updated Strategic Objective 3.3 (Economic Strength and National 

Security) to ensure our supporting strategies on this objective better distinguished responsibilities among offices 

and to reflect Treasury’s current efforts. Finally, we expanded Strategic Objective 5.3 from only reflecting 

“customer value” to “customer value and experience” to better align with the President’s Management Agenda’s 

goal of improving customer experience. Our updated goals and objectives are reflected below. 

   
Executive Summary - 12 

Strategic Goals Strategic Objectives/APGs

Contributing

Bureaus/Offices

Economic

Goal 1: Boost U.S.

Economic Growth

1.1:  Tax Law Implementation

        Aligned APG: Reducing Refund Fraud

1.2:  Strong Economic Fundamentals

1.3:  Trusted Currency and Services

        Aligned APG: Improved Business Qualification Process

1.4:  Free and Fair Trade

Domestic Finance

International Affairs

Tax Policy

Treasurer

Economic Policy

IRS

BEP

U.S. Mint

TTB

OCC

Goal 2: Promote

Financial Stability

2.1:  Housing Finance Reform

2.2:  (Incorporated into Strategic Objective 1.4)

2.3:  Foreign Technical Assistance

2.4:  Financial Sector Critical Infrastructure and Cybersecurity

Domestic Finance

International Affairs

Management

OCC

Security

Goal 3: Enhance

National Security

3.1:  Strategic Threat Disruption

        Aligned APG: U.S. and Mexico Strategic Dialogue on Illicit Finance

3.2:  Anti‐Money Laundering and Combating Financing of Terrorism

Framework

3.3:  Economic Strength and National Security

TFI

FinCEN

International Affairs

Economic Policy

OCC

Financial

Goal 4: Transform

Government‐wide

Financial

Stewardship

4.1:  Financial Data Access and Use

4.2:  Debt Management

4.3:  Federal Financial Performance

Domestic Finance

International Affairs

IRS

Fiscal Service

Management

Goal 5: Achieve

Operational

Excellence

5.1:  Workforce Management

5.2:  Treasury Infrastructure   

5.3:  Customer Value and Experience

All Offices and

Bureaus, led by the

Office of

Management

The Government Performance and Results Act (GPRA) and the GPRAMA established the need for agencies to 

identify performance goals, report progress against targets, and conduct data-driven reviews. These practices 

serve two key purposes for stakeholders within and outside of the organization: to assess the organization’s 

health and impact and to inform decision-making and strategy (including effective resource allocation). In this 

spirit, we developed a strategic framework supported by best-in-class organizational performance practices to 

help achieve the Department’s strategic objectives.

Our organizational performance reviews provide a regular forum for open dialogue and coordination among 

Department, bureau, and office leadership and bringing together different perspectives to set and align 

priorities, identify and solve problems, review agency performance goals, and drive results. The cycle integrates 

statutory requirements to conduct performance reviews of agency strategic objectives, agency priority goals, and 

cross-agency priority goals.
Executive Summary - 13 

FYS 2018-2019 AGENCY PRIORITY GOALS

Fraud Prevention: The filing of fraudulent individual and business tax returns by identity thieves continues to 

have a significant impact on tax administration. Identity theft tax fraud occurs when an individual uses 

another person’s or business’ name and Taxpayer Identification Number to file a fraudulent tax return for the 

purpose of obtaining a tax refund. The IRS is using data analytics and public-private partnerships to reduce 

the amount of unprotected identity theft tax refunds. Progress toward this goal is measured using the IRS’s 

annual Taxonomy, a statistical estimation of the amount of revenue protected and unprotected from identity 

refund fraud based on analysis and sampling of returns. Although the Taxonomy provides a statistical 

estimation of fraud detection, the detection methods are evaluated continuously for opportunities to improve 

detection or reduce taxpayer burden. For processing year 2016, the IRS estimates between $1.68 billion and 

$2.31 billion of identity theft tax refunds were unprotected (i.e., refunds were paid on probable identity theft 

refund fraud claims and are likely unrecoverable). That same year, the IRS successfully protected between 

$10.56 billion and $10.61 billion in identity theft refunds (i.e., IRS defenses prevented payment). For processing 

year 2017, the IRS estimates between $0.11 billion and $0.60 billion of identity theft tax refunds were 

unprotected. The IRS successfully protected between $11.78 billion and $11.81 billion in identity theft refunds. 

As a result of the Security Summit efforts and by using data analytics, the IRS is preventing more identity 

theft. The Security Summit is a public-private partnership that consists of the IRS, representatives from the 

software industry, tax preparation firms, payroll and tax financial product processors, and state tax 

administrators. It was established in 2015 to combat identity theft refund fraud to protect the nation's 

taxpayers. 

Improved Business Qualification: Ongoing growth in the alcohol beverage industry in recent years has resulted 

in an increased volume in permit applications for new alcohol producers. This growth in workload has 

contributed to delayed permit approvals that exceeded TTB’s service standards. Reaching the goal of 

consistently achieving the service standard for original permit applications has proven difficult, with application 

volumes high and continuing to increase. TTB met one of its two APG targets by the end of FY 2019, reducing 

average approval times by 20% from 96 days in FY 2017 to 75 days in FY 2019. However, TTB fell short of its 

second target to achieve the 75-day service standard for 85% of permit applicants. In FY 2019, during the 

government shutdown, with industry continuing to file for Federal permit approval, the backlog of pending 

applications continued to increase and age. As a result, for FY 2019, TTB issued 58% of permit applications 

within its 75-day service standard. TTB will remain focused on performance improvement through FY 2020. 

Through concerted recovery efforts, TTB ended the fiscal year with 68% of applications issued within 75 days in 

September 2019, which positions the bureau to achieve this priority goal target in FY 2020. TTB expects to 

achieve and maintain its performance goals through Permits Online system enhancements, continued process 

improvements, and implementation of permit application revisions, with the full impact of these changes 

expected to be realized in FY 2020. TTB strategies in the coming years also will remain focused on reducing the 

application error rate through system checks, enhanced guidance, and simplified application requirements. 
Executive Summary - 14 

U.S. and Mexico Strategic Dialogue on Illicit Finance: Established in 2014, the Strategic Dialogue on Illicit 

Finance (SDIF) was created in an effort to deliver greater economic growth and opportunity for the citizens of 

Mexico and the United States by safeguarding our financial systems against the threats of illicit finance. SDIF 

remained a critical avenue in FY 2019 between the Government of Mexico (GOM) and the Treasury Department 

on combatting illicit finance activities that exist within and between our two countries. During this year, the 

two governments partnered together to address systemic anti-money laundering / countering the financing of 

terrorism (AML/CFT) issues, specific threats that affect both of our countries, and sharing best practices on the 

use of existing and new authorities available to each government. Within the SDIF, the Treasury Department 

has been on track in our key milestones of assisting with Mexico’s domestic sanctions reforms, providing 

information to be used in investigations by Mexico’s law enforcement, and confirming our mutual understanding 

of illicit finance trends associated with Mexican drug trafficking organizations. Also completed this year was 

Treasury and the GOM’s annual principal-level SDIF, hosted at the Assistant Secretary level, and the planning 

for a SDIF deputies (to be held in November 2019). Principals committed the SDIF to forming and developing 

three task forces on human trafficking, trade based money laundering, and exchange houses. These milestones 

were accomplished despite Mexico’s loss of key personnel and austerity measures that were enacted by the new 

Administration, as well as the disruption in scheduling and planning caused by the U.S. Government shutdown 

in January. In FY 2020, the Treasury Department will continue working with the GOM through SDIF on 

AML/CFT issues of concern. 
Executive Summary - 15 

FYS 2020-2021 AGENCY PRIORITY GOALS

Treasury Priority Goals (FYs 2020‐2021) Goal Leader(s)

Implementation of the Foreign Investment Risk Review

Modernization Act of 2018 (FIRRMA). Successful implementation of

the Foreign Investment Risk Review Modernization Act of 2018

(FIRRMA) will ensure that identified national security risks arising from

certain foreign investments—including from some types of

investments and transactions that previously fell outside of

Committee on Foreign Investment in the United States’ (CFIUS)

jurisdiction—are addressed in an effective manner. By September 30,

2021, the Department of the Treasury, as Chair of the CFIUS program,

will implement key elements of FIRRMA, including:

 Publishing final FIRRMA regulations, including filing fees, by

February 2020.

 Completing Phase 1 of work space construction to enhance

operational security by June 2020.  

 Implementing a new information technology infrastructure

and electronic case management system by September 2020.

 Implementing and managing processes to monitor a

significantly increased caseload.

Thomas Feddo, Assistant

Secretary for Investment

Security, Department of the

Treasury

David Eisner, Assistant

Secretary for Management,

Department of the Treasury  

Fraud Prevention. Reduce the amount of unprotected identity theft

tax refunds paid by 2 percent by December 31, 2019 (based on data

reporting lag), and by an additional 1 percent annually through

December 31, 2021.  

Charles P. Rettig,

Commissioner, Internal

Revenue Service (IRS)

Paper Check Reduction. Create a modern, seamless, and cost‐

effective Federal payment experience for Americans by:

 Reducing the number of paper checks printed by Treasury’s

Bureau of the Fiscal Service to  

49 million by the end of FY 2021, compared with 54 million in

FY 2019; and  

 Achieving an electronic payment rate of 96.1 percent by the

end of FY 2021, compared with 95.6 percent in FY 2019.

Timothy Gribben,

Commissioner, Bureau of the

Fiscal Service
Executive Summary - 16 

ENTERPRISE RISK MANAGEMENT

FRAMEWORK

OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, 

provides guidance to federal managers to effectively manage risks to achieve strategic objectives. Management, 

together with the Chief Risk Officer (CRO), is responsible for establishing a governance structure to effectively 

implement a robust process of risk management and internal control and for developing an enterprise-wide risk 

profile. Successful implementation requires us to establish and foster an open, transparent culture that 

encourages people to communicate information about potential risks and other concerns.

The CRO meets regularly with senior leaders to discuss top risks to critical programs, systems, projects, and 

priorities, including response strategies. The Office of Risk Management (ORM) has also established an 

Enterprise Risk Management (ERM) Council, chaired by the Deputy CRO, which brings together risk managers 

from each of our bureaus and policy offices on a bi-monthly basis to share best practices, and discuss risks. 

ORM works with the bureaus and policy offices across Treasury to monitor and annually update our risk profile. 

Beyond its work at Treasury, ORM leads an interagency ERM community of practice including officials from 

approximately 40 federal agencies. This group grew from ORM’s efforts to support agencies in their 

implementation of ERM, including the July 2016 publication of the Playbook: Enterprise Risk Management 

(ERM) for the U.S. Federal Government. This government-wide working group meets on a bi-monthly basis to 

discuss common risks and various methods of implementing the guidelines of the Circular.

ENTERPRISE RISKS AND CHALLENGES

Through the FY 2019 SOAR and enterprise risk management process, we identified the following cross-cutting 

operational risks. 

Evolving Cyber Climate: Treasury, the U.S. government, and the whole financial sector face growing 

complexity of technology, increasing sophistication of adversaries, and techniques.

Aging IT Infrastructure, Data Sharing and Analytics Capabilities: Aging infrastructure and technical debt, a 

risk shared across the U.S. government, can impede analytics capabilities, program innovation, and improved 

delivery of products and services.

Procurement, Acquisition, and Vendors: Supply chain vulnerabilities and insufficient acquisition planning 

increase operational risk.

Workforce Management: Ongoing government-wide challenges in recruiting and retaining qualified candidates 

presents mission risks, and exacerbates the long-standing risk of knowledge and skills gaps as a greater 

proportion of Treasury’s workforce becomes eligible to retire. 

Balancing Mission Objectives and Resource Constraints: Treasury is at the forefront of several new initiatives 

to improve our economy and keep it on a stable footing. Due to uncertain funding amounts and timing, there is 

a risk that we will not be as agile as we should be in balancing new innovations or initiatives with existing 

requirements or projects. 
Executive Summary - 17 

ADDITIONAL INFORMATION

HUMAN CAPITAL PLAN IMPLEMENTATION

In FY 2020, Treasury’s Human Capital Community will continue its efforts towards a competency-based 

management approach. In alignment with these efforts, below are some of the strategies that are the focus for 

FY 2020: 

 Continued implementation of the Integrated Talent Management System (DASHR-CHCO) 

 Expand and integrate technology to increase human capital management capability, enhance services, 

streamline processes and increase operational efficiency 

 Improve the Human Resources customer experience in a manner that results in higher degrees of 

customer satisfaction (DASHR-CHCO) 

 Validate updated HR governance approach and expand coverage to include subsidiary bodies, resulting 

in greater focus on high-value human capital issues by HR practitioners, HR Officers, and Department 

Leadership (DASHR-CHCO) 

 Make improvements to Treasury’s Human Capital Evaluation System resulting in a higher level of 

maturity as assessed by the Office of Personnel Management (DASHR-CHCO) 

 Develop and implement effective workforce planning processes (TTB) 

 Pilot competency model in the Integrated Talent Management (ITM) System (BEP) 

 Deliver an Enterprise Workforce Plan (IRS) 

 Continue to strengthen the EEO/Diversity & Inclusion Programs across the service (IRS) 

 Strengthen Employee Engagement with support from the FEVS Engagement Advisory Committee 

(FEAC) (Mint) 

 Improve Workforce Planning efforts/data driven hiring decisions through 

workload/capacity measurement (BFS) 

 Utilize attrition and retention data to drive employee engagement efforts (FinCEN) 

AWARDS SPEND PLANS

In July 2019, the Treasury Office of the DASHR-CHCO issued a memorandum to Treasury bureaus regarding 

their awards spending plans to ensure that those plans set forth a comprehensive strategy to develop and foster 

a culture of recognition, including formal and informal recognition. The memo also indicated that bureaus must 

establish meaningful distinctions in performance and provide greater rewards to employees who have 

demonstrated the highest-levels of performance and achievement. Allocation of award funds should strike a 

strategic balance between rating-based awards and individual contribution awards (e.g., special act awards, onthe-spot awards) and should focus on rewarding excellence, especially in mission-critical occupations, hard-tofill positions, and other key positions requiring critical skills set. In doing so, bureaus should honor all collective 

bargaining obligations and agreements consistent with law and regulation. In the past, most awards were tied 

to rating-based performance. Treasury will continue to monitor the balance between rating-based awards and 

individual contribution awards; additionally we will work to determine the effectiveness of the awards and 

recognition programs. 
Executive Summary - 18 

SUMMARY OF MANAGEMENT AND PERFORMANCE CHALLENGES

OIG and TIGTA have identified the most significant management and performance challenges facing the 

Department, in accordance with the Reports Consolidation Act of 2000. These challenges do not necessarily 

indicate deficiencies in performance; some represent inherent risks that require continuous monitoring. Refer 

to Section C of Part 3, Other Information, in the FY 2019 Treasury Agency Financial Report (AFR) for a 

detailed discussion of these challenges, including our progress toward addressing them.2 GAO releases a 

government-wide high-risk list every two years. Treasury has shared responsibility for one risk area and lead 

responsibility in another. 

OIG – IDENTIFIED MANAGEMENT CHALLENGES 

 Operating in an Uncertain Environment; 

 Cyber Threats; 

 Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act Enforcement; 

 Efforts to Promote Spending Transparency and to Prevent and Detect Improper Payments; and 

 Information Technology Acquisition and Project Management. 

TIGTA – Identified Management Challenges 

 Security Over Taxpayer Data and Protection of IRS Resources; 

 Implementing Tax Law Changes; 

 Addressing Emerging Threats to Tax Administration; 

 Supporting an Enhanced Taxpayer Experience; 

 Modernizing IRS Operations; 

 Improving Tax Reporting and Payment Compliance; 

 Reducing Fraudulent Claims and Improper Payments; 

 Impact of Global Economics; 

 Protecting Taxpayer Rights; and 

 Achieving Operational Efficiencies 

GAO – Identified High-Risk Areas 

 Modernizing the U.S Financial Regulatory System (OFR/FSOC/OCC/Federal Reserve); and 

 Enforcement of Tax Laws (IRS). 

GOOD ACCOUNTING OBLIGATION IN GOVERNMENT ACT (GAO-IG ACT) 

The Good Accounting Obligation in Government Act (the Act) requires each Federal agency to include, in its 

annual budget justification, a report that identifies each public recommendation issued by the Government 

Accountability Office (GAO) and the agency's inspectors general (IGs) that has remained unimplemented for one 

year or more from the budget justification submission date. In compliance with the Act, Treasury has included 

a report listing each public recommendation issued by GAO, Treasury Office of Inspector General (OIG), and 

                                                            

2 The FY 2019 AFR is available at https://home.treasury.gov/system/files/236/Treasury-FY-2019-AFR-Final111519-508-FINALrevised.pdf. The response letters are on pages 187-195. 
Executive Summary - 19 

Treasury Inspector General for Tax Administration (TIGTA). For recommendations with which Treasury 

agreed, this report provides timelines for full implementation of the planned corrective actions (PCAs). For 

recommendations with their PCAs completed, this report indicates their status as "Implemented. Pending 

auditor validation." For recommendations with which Treasury disagreed or did not implement due to 

budgetary constraints or other factors, this report indicates their status as either "Rejected" or "On Hold," 

respectively. For recommendations where Treasury did not formally respond or take action, this report 

indicates “No Action Taken.” 

The Act also requires a reconciliation between the agency records of unimplemented recommendations and each 

IGs' Semiannual Report to Congress (SAR). Treasury IGs use the same system (Treasury’s Joint Audit 

Management Enterprise System (JAMES)) for the reporting of unimplemented recommendations in the SAR. 

In addition, Treasury IGs have direct access to JAMES and regularly review and validate recommendation 

implementation status recorded in JAMES by conducting corrective action verifications and follow-up audits. A 

reconciliation table is provided as part of this report to illustrate that the discrepancies between this report and 

the SAR are due to reporting criteria differences. 

The information used to create this report is based on JAMES and GAO’s recommendations database available 

on www.gao.gov. 

Reporting Methodology and Report Structure

This report includes GAO, OIG, and TIGTA recommendations issued between 2/1/2012 and 1/31/2019 (7 years 

per Treasury’s record retention policy) that remained unimplemented for one year or more from the planned 

fiscal year 2021 budget justification submission date. 

The report has five parts: 

Appendix 1: A report listing GAO recommendations and their implementation status. 

Appendix 2: A report listing OIG recommendations and their implementation status. 

Appendix 3: A report listing TIGTA recommendations and their implementation status. 

Appendix 4: A reconciliation of this report and the IGs’ SARs. 

Appendix A: A listing of acronyms used throughout this report. 

 
Executive Summary - 20 

Status of Unimplemented Recommendations 

Out of a total of 432 unimplemented recommendations, 190 have been implemented and are awaiting auditor 

verification, 193 have corrective actions in progress, and 49 are in “rejected,” “on hold,” or “no actions taken” 

status. 

Unimplemented Recommendations By Audit Area 

Out of a total of 432 unimplemented recommendations, the top three audit areas of Tax Administration and 

Compliance, Information Technology, and Administration of Program Operations account for 82% of all 

unimplemented recommendations. 

Please see https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports for more information. 

86

37

70

142

48

32

17

0

20

40

60

80

100

120

140

160

GAO OIG TIGTA

Corrective Actions in Progress

Implemented and Awaiting

Auditor Verification

Rejected, On Hold, or No Action

Taken

6

12

16

44

101

102

151

0 20 40 60 80 100 120 140 160

Terrorist Financing

Improper Payments

Banking and Lending

Financial Statements

Administration of Program Operations

Information Technology

Tax Administration and Compliance
Executive Summary - 21 

 

EVIDENCE ACT

The Foundations for Evidence-Based Policymaking Act ("Evidence Act"), Public Law 115-435, takes steps to 

advance evidence-building functions in the Federal government. The law builds on existing Federal policies and 

data infrastructure investments in order to support information quality, access, and use. The Evidence Act 

challenges agencies to rethink how they are currently using and organizing evidence. An evidence-building 

activity section (section D) is provided in the subsequent Treasury budget account chapters. This evidencebuilding section provides an overview of the data and evidence necessary to make critical decisions about 

program operations, policy, and regulations, and provides visibility into the impact of resource allocation on 

achieving program objectives. 

IDEA ACT

As required by section 3(b)(2) of Public Law 115-336, 132 Stat. 5025-5028, the 21st Century Integrated Digital 

Experience Act (21st Century IDEA or the Act), Treasury will provide a report to Congress on modernizing 

agency websites and digital services. This report will include a list of key websites and digital services operated 

by the Department of the Treasury that have been prioritized and targeted for modernization, including a list of 

the websites and digital services maintained by Treasury that are most viewed or utilized by the public, or are 

otherwise important for public engagement; a prioritization of the websites and digital services listed that 

require modernization to meet the Act requirements; and an estimation of the cost and schedule for modernizing 

the websites and digital services as prioritized. Please see https://home.treasury.gov/system/files/291/TreasuryWebsite-And-Modernization-Report-Dec2019.pdf for more information. 

MACHINE READABLE SUMMARY TABLES

Treasury has developed, for online posting, machine-readable files of the budget summary tables in the 

executive summary chapter of the FY 2021 Congressional Justification. Please see 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budget-requestannualperformance-plan-and-reports for more information. 

IT WORKING CAPITAL FUND (WCF)

Treasury is proposing to include new transfer authority to the Department-wide Systems and Capital 

Investments Program (DSCIP) to leverage existing funding and introduce further flexibility that will allow 

Treasury to continuously modernize information technology infrastructure across the Department. These 

changes will allow for Treasury bureaus to invest in IT projects that advance their mission and align to 

Departmental Chief Information Office priorities. Treasury is also proposing to change the name of this account 

to the Department for the Treasury Capital Investments and Modernization Fund (TCIMF). For additional 

information on this proposal see the TCIMF chapter of the Treasury request.