Departmental Offices

Program Summary by Budget Activity

Dollars in thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request 2/ $ Change % Change

DO S&E

 Executive Direction $36,738 $36,002 $37,899 $1,897 5.27%

 International Affairs and Economic Policy $56,113 $56,266 $58,706 $2,440 4.34%

 Domestic Finance and Tax Policy $80,956 $78,589 $75,948 ($2,641) -3.36%

 Treasury-wide Management and Programs $36,593 $39,143 $49,675 $10,532 26.91%

 Terrorism and Financial Intelligence $102,000 $0 $109,609 $109,609 NA

TFI

 Terrorism and Financial Intelligence 1/ $0 $112,500 $0 ($112,500) -100.00%

Subtotal, Departmental Offices - S & E $312,400 $322,500 $331,837 $9,337 2.90%

DO S&E – Reimbursables 1/ $69,502 $130,032 $121,474 ($8,558) -6.58%

TFI Reimbursables $0 $18,442 $0 ($18,442) -100.00%

Total Program Operating Level 3/ $381,902 $470,974 $453,311 ($17,663) -3.75%

DO S&E - Direct FTE 1,171 781 1,312 531 67.99%

TFI - Direct FTE 0 377 0 (377) -100.00%

DO S&E - Reimbursable FTE 132 184 163 (21) -11.41%

TFI - Reimbursable FTE 0 39 0 (39) -100.00%

Total FTE 1,303 1,381 1,475 94 6.81%

1/ In FY 2015, the Office of Terrorism and Financial Intelligence (TFI) was funded through a separate appropriation of $112.5 

million, which includes $27 million for administrative support. To support the financing of TFI's administrative program, the 

Departmental Offices Salaries & Expenses (S&E) Reimbursable program of $130.032 million was increased by $27 million. 

2/ The FY 2016 Budget includes TFI activities in the DO S&E appropriation, where it has been each year except FY 2015.

3/ The Budget also proposes to transfer $7 million from the Gulf Coast Restoration Trust Fund for DO’s administration and 

oversight responsibilities for this program. This funding is not included above.

Summary

Departmental Offices (DO) is the headquarters 

bureau for the Department of the Treasury. It 

provides leadership in economic and financial 

policy, financial intelligence and enforcement, 

and general management. Treasury utilizes 

effective management, policies, and leadership 

to protect our national security through 

targeted financial actions, to promote the 

stability of the nation's financial markets, and 

to ensure the Government's ability to collect 

revenue and fund its operations. 

The Department’s strategic plan for FY 2014-

2017 guides program and budget decisions for 

DO. The FY 2016 Budget request supports 

DO’s leading role in accomplishing the 

following Treasury strategic goals:

• Promote domestic economic growth and 

stability while continuing reforms of the 

financial system;

• Enhance U.S. competitiveness and job 

creation, and promote international 

financial stability and more balanced 

global growth;

• Fairly and effectively reform and 

modernize Federal financial management, 

accounting, and tax systems;

• Safeguard the financial system and use 

financial measures to counter national 

security threats; and
• Create a 21st-Century approach to 

government by improving efficiency, 

effectiveness and customer interaction.

Total resources requested to support DO 

activities for FY 2016 are $453,311,000

including $331,837,000 from direct 

appropriations and $121,474,000 from 

offsetting collections and reimbursable 

programs.

DO FY 2016 Budget Highlights

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2015 Enacted 1,158 $322,500

DO S&E 781 $210,000

TFI 377 $112,500

Changes to Base:

Adjustment to Request (14) ($13,522)

Fund RESTORE Act Administrative 

Expenses from Trust Fund (14) ($9,500)

Sanctions-related workload, TFI 

contract support, and secure space 

requirements - ($4,022)

Maintaining Current Levels (MCLs): - $5,251

FERS Contribution Increase - $670

Pay-Raise - $1,868

Pay Annualization - $478

Non-Pay - $2,235

Non-Recurring Costs: - ($3,255)

ARRA 1603/NREL Contract - ($800)

Government Security Operations Center - ($2,200)

DO Local Area Network Enhancements - ($255)

Efficiency Savings: (2) ($395)

TFI FOIA Contract Consolidation - ($221)

Management Savings (2) ($174)

Other Adjustments 103 -

Technical FTE Adjustment 103 -

Subtotal Changes to Base 87 ($11,921)

Total FY 2016 Base 1,245 $310,579

Program Changes:

Reinvestments: 4 $700

International Affairs G20 Financial 

Stability Board Staff 4 $700

Program Increases: 63 $20,558

Digital Service Team 41 $10,000

Financial Innovation Lab 1 $2,000

International Financial Regulatory 

Reform 2 $400

Multiemployer Pension Reform 6 $3,000

Office of the General Counsel Staffing 4 $955

Office of Tax Policy Staffing 7 $2,409

Embassy Security Improvements - $744

DO Cybersecurity Enhancements 2 $1,050

Total FY 2016 Request 1,312 $331,837

FY 2016 Budget Adjustments

Adjustments to Request

Fund RESTORE Act Administrative 

Expenses from Trust Fund -$9,500,000 / -14 

FTE

Treasury proposes legislative language in 

FY 2016 to allow Treasury to draw $7,000,000 

from the Gulf Coast Restoration Trust Fund

for management of the fund, including 

administering the civil and administrative 

penalties arising from the Deep Water Horizon 

oil spill, supporting environmental and 

economic restoration of the Gulf Coast region,

and standing up grants, compliance, and audit 

programs.

Sanctions-related workload, TFI contract 

support, and secure space requirements -

$4,022,000 / +0 FTE

Non-recur one-time costs associated with the 

increase provided in the FY 2015 Consolidated 

Appropriations Act. Reductions of $3,332,000 

will be achieved by non-recurring one-time 

sanctions-related contracts in various 

Terrorism and Financial Intelligence (TFI) 

offices: Office of the Under Secretary; Office 

of Terrorist Financing and Financial Crimes; 

and the Office of Foreign Assets Control. TFI 

will also non-recur $190,000 in contract 

services that support personnel security. 

Funding for TFI secure space requirements 

will be reduced by $500,000 to return to the 

program’s base funding level.

Maintaining Current Levels (MCLs)

FERS Contribution Increase +$670,000 / +0 

FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Pay-Raise +$1,868,000 / +0 FTE

Funds are requested for the proposed January 

2016 pay-raise.
Pay Annualization +$478,000 / +0 FTE

Funds are requested for annualization of the 

January 2015 pay-raise.

Non-Pay +$2,235,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment.

Non-Recurring Costs

ARRA 1603/NREL Contract -$800,000 / +0 

FTE

The Department of the Treasury received 

funds as authorized by the American Recovery 

and Reinvestment Act (ARRA) (P.L. 111–5), 

commonly referred to as the Stimulus or The 

Recovery Act, for an interagency agreement 

between the National Renewable Energy 

Research Lab (NREL) and Treasury to review 

applications for the Cash Payments for 

Specified Energy Property in Lieu of Tax 

Credits (1603 program). The contract that 

supports the 1603 program is winding down in 

FY 2016.

Government Security Operations Center

-$2,200,000 / +0 FTE

Non-recur $2,200,000 of the FY 2015 

appropriation of $3,500,000 for the 

Government Security Operations Center.

DO Local Area Network Enhancements

-$255,000 / +0 FTE

Non-recur $255,000 of the FY 2015 

appropriation of $2,600,000 for DO Local 

Area Network Enhancements.

Efficiency Savings

TFI FOIA Contract Consolidation -$221,000 

/ +0 FTE

The Under Secretary’s office proposes 

efficiency savings of $221,000 through the 

elimination of a contract that supports the 

processing of Freedom of Information Act 

requests.

Management Savings -$174,000 / -2 FTE

Management proposes efficiency savings of 

$174,000 by re-organizing the DO mailroom 

and reducing equipment purchases.

Other Adjustments

Technical FTE Adjustment +$0 / +103 FTE

In order to estimate the FTE levels for the 

FY 2016 Budget, DO reviewed prior year FTE 

usage relative to previously projected FTE 

levels. The FY 2016 Budget reflects a +43 

FTE technical adjustment based on actual 

execution. In addition, 60 reimbursable FTE, 

supporting the TFI in FY 2015 will be 

converted to direct FTEs in FY 2016—their 

mission remains the same, full administrative 

support of the TFI program.

Reinvestments

International Affairs G20 Financial Stability 

Board Staff +$700,000 / +4 FTE

The Office of International Affairs will 

reinvest funds within its base budget to better 

support Treasury’s roles: coordinating

international financial regulatory reform; 

chairing the Committee on Foreign Investment 

in the United States; and analyzing the 

potential economic and financial impacts of 

proposed sanctions.

Program Increases

Digital Service Team +$10,000,000 / 

+41 FTE

The FY 2016 Budget requests resources to 

develop a Digital Service Team to transform 

Treasury’s digital services. Treasury will 

prioritize services with the greatest impact to 

citizens and businesses so they are more costeffective to build and maintain as well as 

easier to use. The digital service experts on 

the team will bring the private sector’s best 

practices in the disciplines of design, software 

engineering, and product management to bear 

on the agency’s most important services. The 

positions will be term-limited to encourage a 

continuous influx of up-to-date design and 
technology skills into Treasury. The digital 

service experts will be recruited from 

America’s leading technology enterprises and 

startups and will join with Treasury’s top 

technical and policy leaders to deliver 

meaningful and lasting improvements to the 

services the agency provides to citizens and 

businesses.

Financial Innovation Lab +$2,000,000 / +1 

FTE

The request of $2,000,000 will fund a 

Treasury Financial Innovation Lab to identify, 

develop, and pilot promising strategies to 

support national priorities in financial 

services. The Treasury Lab is modeled on the 

Idea Lab at the Department of Health and 

Human Services (HHS), which has 

successfully brought forward and incubated 

new ideas from agency staff and external 

innovators. To start, projects may include 

strategic topics, such as data-driven 

approaches to help consumers access safe and 

affordable mortgages, refinancing, and 

foreclosure prevention programs; technologybased solutions to streamline annual 

recertification for student loan repayment 

plans; and the development of a planning 

blueprint and toolkits for using Pay for 

Success financing at the Federal level. The 

Lab will cultivate and tap the considerable 

existing staff expertise throughout the 

Department in this work by providing time, 

resources, and methodological training to 

develop new tools and approaches. Similarly, 

it will collaborate with a broad range of 

stakeholders, including federal, state and local 

agencies and private sector partners, to 

catalyze action and achieve shared goals. 

Finally, the Lab will bring external talent with 

new skills and ideas into the organization on a 

temporary basis to solve high-priority, 

complex problems.

International Financial Regulatory Reform 

+$400,000 / +2 FTE

The Office of International Affairs (IA) 

requests two additional international capital 

markets experts to manage derivatives and 

other capital market issues to help ensure U.S. 

firms are not at a competitive disadvantage 

when providing financial services or accessing 

financial markets. Without this additional 

staffing, constraints on resources will impinge 

on IA’s capacity to protect and promote U.S. 

interests at international financial regulatory 

forums.

Multiemployer Pension Reform +$3,000,000 / 

+6 FTE

Departmental Offices requests $3,000,000 to 

support six positions, contractual support, 

travel, and other administrative expenses for 

Treasury’s Multiemployer Pension Reform 

Act (MPRA) responsibilities. The MPRA 

represents the first time plan trustees have 

been permitted to make substantial cuts to 

vested benefits (including retirees in pay 

status) under the Employee Retirement Income 

Security Act of 1974. Under the MPRA, 

Treasury’s largest responsibility relates to the 

“suspension of benefits,” the temporary or 

permanent reduction of any current or future 

payment obligation of a multiemployer plan in 

critical and declining status to any participant 

or beneficiary under the plan. In order to 

suspend benefits, the sponsor of a plan must 

submit an application to the Secretary of the 

Treasury seeking approval of the proposed 

suspension of benefits. Treasury, in 

consultation with the Pension Benefit 

Guaranty Corporation and the Department of 

the Labor, must: (1) approve the application 

upon finding that the plan is eligible for 

suspension and has satisfied certain criteria; 

(2) publish a notice in the Federal Register 

within 30 days after receipt of the application 

soliciting comments on the application, which 

must be posted on Treasury’s website; (3) 

approve or deny the application for the 
suspension of benefits within 225 days after its 

submission; and (4) administer a vote of plan 

participants and beneficiaries within 30 days 

after approving an application.

Office of the General Counsel Staffing 

+$955,000 / +4 FTE

The Office of the General Counsel requires 

four additional attorneys to handle significant 

increased workload in two areas. This 

workload demand is expected to continue and 

has significantly strained existing resources, 

requiring the diversion of staff from other 

important work.

International - One additional attorney is 

needed to meet critical needs in supporting the 

Department’s international affairs function as 

demand continues to increase. Specifically, 

IA’s Committee on Foreign Investment in the 

United States case load has increased 

significantly in number as well as in 

complexity of financial transactions and 

related legal issues. In 2009, the office 

handled 70 cases, in 2012, it had 119, and the 

office now is at an annualized rate of 148 

cases a year. As the economy improves, this 

rate will increase.

Oversight and litigation - Three additional 

attorneys are required to meet the significant 

increase in litigation and oversight matters. 

These matters necessitate substantial 

coordination with the Department of Justice to 

represent the interests of the United States in 

lawsuits pending in all levels of federal courts, 

and with Congressional Committees, 

Inspectors General, and the US Government 

Accountability Office to respond to a wide 

variety of inquiries concerning departmental 

programs and activities. Additional resources 

will facilitate the collection, review, and 

production of documents; drafting and review 

of pleadings, motions, and memoranda of law; 

witness preparation; and monitoring of reports 

and pretrial and trial proceedings.

Office of Tax Policy Staffing +$2,409,000 / 

+7 FTE

Rationalization of the Tax Code - The Office 

of Tax Policy requests $1,221,000 and three 

additional staff to meet the Department’s 

ongoing needs for analyses of tax proposals, 

including fundamental reform of the tax 

system. The exponential growth, availability, 

and variety of data from multiple sources have 

rapidly changed expectations regarding the 

Office of Tax Policy’s analytical capabilities. 

To continue meeting the analytical requests of 

the Secretary and the Administration, the 

Office of Tax Policy must upgrade the existing 

computing platform. The current platform is at 

risk due to lack of commercially available 

resources, so the office must migrate to more 

current operating systems commonly used for 

high-compute analytic services. Additional 

staff are required to properly construct, 

maintain, and access complex, large databases, 

which require regular maintenance and 

adjustment to remain accessible. This work 

requires a detailed knowledge of relational 

database design and system programming, as 

well as practical experience in tuning a large 

database along with a deep understanding of 

public economics and taxation. 

International Tax Workload – The Office of 

Tax Policy requests $1,188,000 and four 

additional staff to address the office’s 

increased international tax workload. The 

portfolio of the international tax issues handled 

by the Office of Tax Policy has expanded 

significantly over the last ten years due to 

globalization and the increased prominence of 

international tax issues. Since 2010, this 

expansion has been significant due to 

enactment of the Foreign Account Tax 

Compliance Act in 2010, as well as increased 

efforts by the G-20, Organization for 

Economic Cooperation and Development, and 

United Nations to set international tax 

standards and focus on business tax reform. 

U.S. interests must be represented at the 

OECD as the organization increases its focus 
on international tax. As the lead country in 

shaping the Base Erosion and Profit Shifting 

initiative for the OECD, the U.S. is pushing 

for reforming international standards to 

prevent foreign countries from inappropriately 

taxing the profits of U.S. companies. Failure 

to participate would be detrimental to U.S. 

business interests. In addition, U.S. tax reform 

discussions increasingly focus on reforming 

U.S. international tax rules, and the Office of 

Tax Policy staff must provide increasing 

expertise in support of the Administration’s 

efforts. Without additional staff, the office 

could not appropriately support reform.

Embassy Security Improvements +$744,000 / 

+0 FTE

As a result of recent steps taken by the State 

Department to bolster the Capital Security 

Cost Sharing (CSCS) program, the estimated 

cost to Treasury is expected to increase from

$1,201,000 in FY 2015 to $1,944,000 in FY 

2016. To avoid reducing the Department’s 

international footprint, DO is requesting 

$744,000 to fully fund the projected FY 2016 

CSCS invoice.

DO Cybersecurity Enhancements 

+$1,050,000 / +2 FTE

Security Enhancements for Classified 

Networks - Two additional positions and 

$550,000 are requested to build out DO’s 

nascent Continuous Diagnostics and 

Monitoring program, including security 

controls testing, monitoring of system security 

to include detection of and response to 

unauthorized user or anomalous network 

activity, as well as the secure implementation 

of identity and credential access management 

on DO’s collateral classified network. The 

network serves a significant purpose for its 

users and the mission of DO. Besides 

classified data transmission, it also provides an 

alternative, more secure environment for 

processing highly sensitive information, since 

the network is isolated from the 

Internet. Funding also provides incident 

response capabilities consisting of forensics 

equipment as well as penetration testing 

software. These improvements will increase 

DO’s ability to continuously monitor the 

network and detect and remediate security 

vulnerabilities, thereby reducing the risk of 

security incidents. Additionally, the project 

will help find the source and location of 

security incidents and respond more timely 

when security events arise.

DO Wireless Intrusion Prevention System 

Expansion - An additional $500,000 is

required to continue to roll out wireless 

intrusion prevention in DO buildings and areas 

that are currently unmonitored. Over half of 

the DO buildings (often leased floors in 

commercial office space) are 

unmonitored. The additional areas are 

relatively small compared to the Main 

Treasury complex, but any one area poses a 

potential unauthorized vulnerability to the 

network if not appropriately secured and 

monitored, as required by federal and 

Department requirements. These unmonitored 

areas often neighbor buildings and adjacent 

office space with public Wi-Fi networks and 

significant wireless activity. The monitoring 

software will reduce Treasury’s exposure to 

these risks.

Explanation of Budget Activities

Executive Direction ($37,899,000 from direct 

appropriations, $13,292,000 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 

($58,706,000 from direct appropriations, 

$4,148,000 from reimbursable resources)

Monitors domestic and international economic

conditions and collects and analyzes financial

data.
Domestic Finance and Tax Policy 

($75,948,000 from direct appropriations, 

$22,114,000 from reimbursable resources)

Monitors and provides economic and financial

policy expertise in the areas of domestic

finance and tax policy.

Terrorism and Financial Intelligence 

($109,609,000 from direct appropriations, 

$56,626,000 from reimbursable resources)

Develops and implements strategies to counter

terrorist financing and money laundering.

Treasury-wide Management and Programs 

($49,675,000 from direct appropriations, 

$25,294,000 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.

Mandatory Proposals

As in FY 2015, Treasury proposes legislative 

language in FY 2016 to allow Treasury to 

draw $7,000,000 from the Gulf Coast 

Restoration Trust Fund for management of the 

fund, including administering the civil and 

administrative penalties arising from the Deep 

Water Horizon oil spill, supporting 

environmental and economic restoration of the 

Gulf Coast region, and standing up grants, 

compliance, and audit programs.
DO Performance by Budget Activity

Budget Activity Performance Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Target Target

International Affairs and Economic 

Policy

Monitor Quality and Enhance 

Effectiveness of International 

Monetary Fund (IMF) Lending 

Through Review of IMF Country 

Programs

100 100 100 100 100

Domestic Finance and Tax Policy Variance Between Estimated and 

Actual Receipts (Annual 

Forecast)(%)

3.8 2.5 N/A 4.25 N/A*

Terrorism and Financial 

Intelligence

Impact of TFI Programs and 

Activities

8.1 8.3 8.5 8.5 8.5

Key: DISC - Discontinued and B – Baseline

*The performance metric for FY 2016 will be based upon the median error of preceding years, including FY 2015,

 and will be calculated after the MTS for September 2015 is released.

Description of Performance

The following performance measures provide

a snapshot of the FY 2015 DO performance

plan: 

Monitor Quality and Enhance Effectiveness of 

International Monetary Fund (IMF) Lending 

through Review of IMF Country Programs: 

This measure tracks efforts by IA staff to 

monitor the quality of IMF country programs 

and ensure the application of appropriately 

high standards for the use of IMF resources. 

The target (100 percent) was met in FY 2014. 

In FY 2015 and FY 2016, IA’s target for this 

measure remains 100 percent.

Variance between estimated and actual 

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

managing the Government’s central operating 

account and cash position, the Office of Fiscal 

Projections (OFP) forecasts net cash flows

(e.g., Federal receipts, outlays, and other 

miscellaneous flows) to ensure that adequate 

funds are available daily to cover federal 

payments. To determine its overall 

effectiveness, one of OFP’s metrics is to

measure the variance between actual and 

projected Federal receipts.

The actual variance for FY 2014 through July 

2014 was 3.8 percent, significantly lower than 

the 4.25 percent target for FY 2014. The 

actual variance for all of FY 2013 was 2.5 

percent. The target for FY 2015 is 4.25 

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 and dissemination of intelligence 

products, and implementing IT modernization 

projects. In FY 2014, TFI met its performance 

goal of 8.5 and expects to achieve its FY 2015 

and FY 2016 target of 8.5.