Departmental Offices - S & E 

Mission Statement 

To promote the conditions for prosperity and stability in the United States and to 

encourage prosperity and stability in the rest of the world. 

Program Summary by Appropriations Account Dollars in Thousands 

Appropriation FY 2006 FY 2007 FY 2007 FY 2008

Salaries and Expenses Enacted

President's 

Budget CR-rate Request

$ from 

CR-rate

% from

CR-rate

Executive Direction $16,329 $17,501 $16,325 $19,815 $3,490 21.38%

Economic Policies and 

Programs 31,691 41,947 31,581 45,450 13,869 43.91%

Financial Policies and 

Programs 26,308 25,336 26,254 28,869 2,615 9.96%

Terrorism and Financial 

Intelligence 39,540 45,401 39,263 56,224 16,961 43.20%

Treasury-wide Management 

and Programs 16,674 20,372 16,556 20,810 4,254 25.70%

Administration Programs 63,094 73,316 62,191 78,972 16,781 26.98%

Currency Manipulation 990 0 0 0 0 0.00%

Total Appropriated Resources $194,626 $223,874 $192,171 $250,141 $57,970 30.17%

FY 2008 Priorities 

The Fiscal Year (FY) 2008 President’s Budget request supports the Departmental Offices 

leading role in accomplishing key Administration goals: 

• Promoting Economic Growth and Security - Increasing economic growth and 

stability at home and internationally are key priorities for the U.S. government 

and the Treasury Department. 

• Strengthening National Security - Fighting and winning the global war on terror 

continues to be the Administration’s top priority. 

• Maintaining a World-class Treasury - Using the President’s Management 

Agenda to continually improve the management of Treasury and its program 

delivery to the American taxpayer. 
Table of Contents 

Section 1 – Purpose....................................................................................... 2

1A – Description of Bureau Vision and Priorities.......................................................... 2 

1B – Program History and Future Outlook..................................................................... 2 

Section 2 – Budget Adjustments and Appropriation Language .............. 7

2.1 – Budget Adjustments Table..................................................................................... 7 

2A – Budget Increases and Decreases Description......................................................... 7 

2.2 – Operating Levels Table........................................................................................ 14 

2B – Appropriation Language ...................................................................................... 15 

2C – Legislative Proposals............................................................................................ 16 

Section 3 – Budget and Performance Plan............................................... 17

3.1 – Appropriation Detail Table.................................................................................. 17 

3A – Executive Direction............................................................................................. 17 

3.2.1 – Executive Direction Budget and Performance Plan.......................................... 17 

3B – Economic Policies and Programs......................................................................... 17 

3.2.2 – Economic Policies and Programs Budget and Performance Plan..................... 19 

3C – Financial Policies and Programs......................................................................... 20 

3.2.3 – Financial Policies and Programs Budget and Performance Plan...................... 21 

3D – Terrorism and Financial Intelligence .................................................................. 22 

3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan ............... 23 

3E – Treasury-wide Management and Programs......................................................... 25 

3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan ..... 26 

3F – Administration Programs..................................................................................... 27 

3.2.6 – Administration Programs Budget and Performance Plan ................................. 28 

Section 4 – Supporting Materials.............................................................. 29

4.1 – Human Resources Table ...................................................................................... 29 

4A – Human Capital Strategy Description ................................................................... 29 

4.2 – Summary of IT Resources Table ......................................................................... 34 

4B – Information Technology Strategy ........................................................................ 35 

4.3 – PART Evaluation Table....................................................................................... 36 

4C - FY 2007 Supplemental Request............................................................................ 39 

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Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The mission of the Departmental Offices (DO) mirrors the mission of the Department of 

the Treasury: To promote the conditions for prosperity and stability in the United States 

and to encourage prosperity and stability in the rest of the world. 

Departmental Offices, as the headquarters bureau for the Department of the Treasury, 

provides leadership in such critical areas as economic and financial policy, financial 

crimes, and general management. DO is responsible for Treasury policy direction and 

formulation and supports Treasury’s role in leading the country and the world to more 

prosperous and stable economies through improving financial and economic systems, 

promoting a safe and secure America, and collecting the revenue due to the government. 

The FY 2008 Budget request supports DO’s leading role in accomplishing key 

Administration goals: 

• Promoting Economic Growth and Security - Increasing economic growth and 

stability at home and abroad are key priorities for the U.S. Government and this 

Department. Treasury will continue to work with international financial 

institutions and through high-level multilateral forums, such as the G7 and G8, to 

develop and implement policies that increase productivity, reduce poverty, and 

prevent financial crises around the world. 

• Strengthening National Security - Fighting and winning the global war on terror 

continues to be the Administration’s top priority. To further this mission in FY 

2008, the Treasury Department will expand its capacity to identify potential 

national security threats; enforce U.S. policies to counter those threats; and will 

invest in enhancements to its information technology and physical infrastructure 

to improve data security, access and quality. 

• Maintaining a World-class Treasury – In FY 2008, DO will work to modernize 

business processes and improve overall efficiency and effectiveness throughout 

the Treasury Department. Oversight and strengthening of management programs 

including human resources, acquisition/procurement, training, as well as 

environmental health and safety, ensure that the Treasury Department remains a 

world-class organization. 

1B – Program History and Future Outlook 

Treasury's Departmental Offices has transformed to accomplish missions far beyond the 

scope of traditional headquarters responsibilities. Departmental Offices now plays a 

direct role in fighting the war on terror and in promoting the President's economic policy 

agenda domestically and abroad. 

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Promoting Economic Growth and Security. 

The Department of the Treasury is a lead federal agency for providing economic 

guidance and support. Treasury’s Departmental Offices, including the Offices of 

International Affairs, Tax Policy, Economic Policy, and Domestic Finance, support the 

Secretary in this role through the provision of technical analysis, economic forecasting, 

and policy guidance on issues ranging from changes in tax policy to responding to 

international financial crises. The Treasury Department also manages the nation’s 

finances by collecting tax revenues due the United States, making its payments, 

managing its borrowing, investing when appropriate, and performing central accounting 

functions; all essential for ensuring the integrity of the American financial system. 

The Department works with foreign governments, financial institutions and international 

organizations to promote free and fair trade practices, target development assistance, 

identify global financial trends, and expand prosperity in the United States and around the 

world. The Treasury Department plays an important role in the global economy, 

monitoring over 160 economies to ensure stability and transparency in the global 

marketplace. 

During FY 2006, the Department of the Treasury continued to promote greater exchange 

rate flexibility, a more balanced economy, and the modernization of China’s financial 

system. In addition to holding bilateral and multilateral discussions with the Chinese 

leadership, the Department established a permanent, full-time Financial Attaché office in 

Beijing to significantly bolster its engagement with China. The Department also 

established a financial regulator working group with the Chinese to discuss key 

regulatory issues and held the first two meetings of this group. 

The Department has also been able to secure agreements in the Organization for 

Economic Cooperation and Development (OECD) that have reduced subsidies in export 

credits and tied aid flows valued at over $70 billion annually. These agreements open 

markets, level the playing field for U.S. exporters, and save the U.S. taxpayer about $800 

million annually. Cumulative budget savings from these agreements are estimated at 

over $11 billion since 1991.

The Department of the Treasury develops and implements economic policies to stimulate 

economic growth and job creation here in the United States. Treasury will continue to 

serve the President's economic priorities, including leading efforts to ensure that taxes are 

collected when due in a fair and efficient manner through oversight of IRS efforts to

address the tax gap. DO offices directly support Presidential efforts to reform the tax 

code, pension and Social Security programs, and entitlement programs. 

In FY 2006, the Office of Tax Policy successfully assisted in efforts to elevate awareness 

of the Administration's position on further expansion of reduced tax rates on capital gains 

and dividends. Tactics included public dissemination of factual information regarding 

tax relief, development of a report on “The Economic Impacts of Cutting Dividend and 

Capital Gains Taxes in 2003,” and facilitating a Treasury-sponsored roundtable 

discussion on the benefits of capital gains and dividends tax cuts. 

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The Department also provided significant and timely analysis of many health and 

Medicare reform proposals, agendas, and commissions. A primary focus of the health 

care work was to study the causes and consequences of high health care spending, which 

is critical to stimulating economic growth and job creation over the long-term. 

Fully funding the President’s FY 2008 Budget request will allow the Treasury 

Department to continue to study, recommend, and support Administration policy 

initiatives to strengthen the U.S. economy, create more jobs for Americans, and enhance 

citizens’ economic security. The Department will actively work to improve the U.S. 

pension system, reform Social Security, and improve the federal income tax system by 

providing timely, usable, and comprehensive analyses that advance the policy process. 

The Department of the Treasury is committed to the critical task of fortifying economic 

relations with foreign countries and financial institutions, working towards creating a 

platform for global growth and security. The FY 2008 Budget will allow Treasury to 

continue to devote resources to expand its financial attaché program, begun in 2006. 

Treasury attachés serve as the U.S. Treasury's representative in key overseas locations 

and engage in economic diplomacy on behalf of the U.S. Government. This budget 

request also will allow Treasury to add regional experts to enhance policy coordination 

on international matters and to support key policy dialogues with priority countries like 

China. 

Treasury is also dedicated to protecting the homeland from international investments that 

may lead to national security concerns. The Committee on Foreign Investment in the 

United States (CFIUS) was delegated the Presidential function of investigating the 

merger or acquisition of U.S. companies by foreign persons for national security 

implications. The Secretary of Treasury is the chair of CFIUS, and Treasury’s Office of 

International Affairs manages this function on the Secretary’s behalf. The growth and 

economic importance of foreign investment in the United States has increased 

exponentially the number of cases reviewed by CFIUS. The FY 2008 Budget request 

provides additional resources to support Treasury in its role as Chair of CFIUS, including 

administering the interagency CFIUS process. 

Strengthening National Security. 

The Treasury Department’s Office of Terrorism and Financial Intelligence (TFI) leads 

the U.S. Government’s multi-faceted effort to keep the world’s financial systems free and 

open to legitimate users, while excluding those who wish to use these systems for illegal 

purposes. TFI’s activities in this arena focus on stopping the flow of funds and support to 

terrorist groups, drug traffickers and other criminals; identifying, disrupting and 

dismantling their support networks; and leveraging the power of the U.S. financial market 

to isolate state sponsors of terrorism and weapons of mass destruction (WMD) 

proliferation. 

Since it was established in 2004, TFI has achieved significant success in identifying and 

disrupting the financial support networks of terrorists and other national security threats, 

and, in recognition of these successes, is increasingly tasked by the National Security 

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Council and other intelligence and national security bodies with helping to address the 

most pressing national security issues. 

 

In FY 2006, TFI pursued designations of entities engaged in the proliferation of WMD, 

continued its efforts to expose terrorist networks, and built on its success of dismantling 

networks associated with drug cartels. Notable targets have included Iranian and Chinese 

companies that supplied Iran’s military and Iranian proliferators with missile-related and 

dual-use components; multiple entities, including a Swiss company, that acted as a 

technology broker for North Korean military goods with weapons-related applications; 

two overseas branches of the International Islamic Relief Organization, who were 

bankrolling the al Qaida network in Southeast Asia; individuals and entities providing 

financial support to the Libyan Islamic Fighting Group, an al Qaida affiliate; and four top 

leaders of the al Qaida linked to the Southeast Asian Terrorist Organization, “Jemmah 

Islaiyah.” In countering narcotics trafficking, TFI successfully targeted the North Valle 

drug cartel in four separate actions, which resulted in the designation of 22 individuals 

and 29 companies, ultimately leading to the exposure and incarceration of two notorious 

Cali cartel leaders. 

 

The Treasury Department leads the U.S. delegation to the Financial Action Task Force 

(FATF), the international standard setting body charged with safeguarding the global 

financial system against money-laundering and terrorist financing. The results of TFI’s 

leadership through that body include impeding access to funds and the financial system

by terrorist groups and limiting the ability of organized criminals and other illicit groups 

to abuse the international financial system. 

 

TFI has also collaborated on a number of reports, including the U.S. Government’s firstever Money Laundering Threat Assessment report and a revision of its Anti-Terrorist 

Financing Guidelines: Best Practices for U.S.-Based Charities. TFI also worked closely 

with law enforcement, bank regulators, and other appropriate parties to identify evolving 

trends in drug proceeds money-laundering, and then communicate these to the U.S. 

financial industry. 

 

Fully funding the President’s FY 2008 Budget request for TFI activities will allow it to 

continue to improve its capabilities in performing Treasury’s National Security mission. 

Department-wide investments in physical and information technology infrastructure, 

including construction of a Sensitive, Compartmented Information Facility (SCIF) and 

investments to enhance and improve the Department’s classified information systems, 

will improve data access, security and quality. The FY 2008 Budget request will also 

allow TFI to make further investments in personnel to enhance its capacity to respond to 

emerging national security threats, provide strategic policy coordination in regions key to 

the fight against terrorist financing, enhance implementation of sanctions against state 

sponsors of terrorism and WMD proliferation, and to increase TFI’s integration into the 

broader intelligence community. 

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Maintaining a World-class Treasury. 

The Departmental Offices continue to improve the management and operations of the 

Treasury Department, meeting the President’s standard of a results-oriented, citizencentered government. 

Treasury has implemented workforce management initiatives such as Senior Executive 

Service pay-for-performance, as well as the training and mentoring of over 1,300 current 

and future managers. Treasury has also been able to expand electronic government 

products and services, improve internal efficiency and effectiveness, and enhance 

services to other governmental agencies and the public. 

Treasury will continue to work towards identifying and improving its management 

challenges. Policy guidance is being strengthened to reflect the Department’s evolving 

mission, and stronger oversight and accountability mechanisms are being instituted for 

the management of information technology investments. 

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Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Appropriation: Salaries and Expenses FTE Amount

FY 2006 Appropriation (P.L. 109-115) 1,004 $196,592

Rescission (P.L. 109-148) 0 $1,966

FY 2006 Enacted 1,004 $194,626

FY 2007 President's Budget 1,058 $223,874

CR-rate Adjustment (31,703)

FY 2007 CR-rate 1,058 $192,171

Changes to Base: 

Technical Adjustment to FY 2007 Base due to CR:

FY 2007 Annualizations 2,511

FY 2007 Initiatives 19,477

FY 2007 MCLs 2,131

FY 2007 Transfers In 5,200

Base Realignment:

OIA - Security Personnel 5

Maintaining Current Levels (MCLs):

Non-Pay Inflation Adjustment 2,342

Pay Annualization 669

Pay Inflation Adjustment 4,129

Initiative Annualization:

IA - Annualization of FY 2007 Initiative 8 2,580

OFAC - Annualization of FY 2007 Initiatives 12 2,429

OGC - Annualization of FY 2007 Initiatives 6 1,034

OIA - Annualization of FY 2007 Initiative 6 1,261

TP - Annualization of FY 2007 Initiative 3 573

Non-Recurring Costs:

Non-recur SCIF (1,000)

Non-recur of Declassification Project (676)

Non-recur of IA (684)

Transfers In:

DF - Critical Infrastructure Protection Transfer from DSCIP 10 2,100

OIA - TFIN Transfer from DSCIP 3,000

Total FY 2008 Base 1,108 $239,247

Program Increases:

ED - Enhanced International Economic Policy Coordination 3 618

IA - CFIUS 4 940

OFAC - Economic Sanctions against State Terrorism 2 1,392

OFAC - Sanctions against WMD Proliferation 2 889

OIA - Emerging National Security Threats 10 1,973

OIA - Intelligence Community Integration 1 219

OIA - Intelligence Support 1 215

OIA - Overseas Travel 148

OIA - SCIF 3,000

OIA - Special Security Program 1 477

TFFC - Disrupt and Dismantle Financial Networks 2 638

TFFC - Disrupt and Dismantle Rogue Regimes 2 385

Subtotal FY 2008 Program Changes 28 10,894

Total FY 2008 Request 1,136 $250,141

2A – Budget Increases and Decreases Description 

Adjustments ...................................................................................-$31,703,000 / +0 FTE 

CR-rate Adjustment -$31,703,000 / +0 FTE Adjustment from the FY 2007 President's 

Budget to reach the FY 2007 Continuing Resolution annualized rate (CR-rate). 

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Technical Adjustment to FY 2007 Base due to CR ...................+$29,319,000 / +0 FTE 

FY 2007 Annualizations +$2,511,000 / +0 FTE Funding is requested for completing the 

full-year cost and FTE realization from initiatives enacted for FY 2006, which support 

the Office of Terrorism and Financial Intelligence (TFI). 

FY 2007 Initiatives +$19,477,000 / +0 FTE This request provides resources to expand 

Treasury's overseas presence to provide relevant intelligence and expert analysis to 

support the formulation of policy on international economics, trade, finance, and 

combating terrorist financing; and to administer and enforce economic sanctions against 

terrorist networks. This request also provides resources to: develop policies and 

implement strategies to safeguard the United States and international financial systems 

from national security threats; manage the public debt; represent the United States on 

international monetary, trade, and investment issues; recommend and implement United 

States domestic and international economic and tax policy. 

FY 2007 MCLs +$2,131,000 / +0 FTE Funds are requested for: the FY 2007 cost of the 

January 2006 pay increase; the January 2007 pay raise and benefits; non-labor related 

items such as contracts, travel, supplies, equipment, and General Services Administration 

(GSA) rent adjustments; and Department of State overseas Capital Security Cost Sharing. 

FY 2007 Transfers In +$5,200,000 / +0 FTE Transfer in of $1,000,000 from Treasury 

Building and Annex Repair and Restoration to re-establish a Repair and Improvements 

(R&I) account. A recurring baseline for major repairs and improvements is needed for the 

Main Treasury (Historic Landmark) and Annex (Historic Register) infrastructure. Prior to 

the existence of the TBARR account, DO had a no-year account for this purpose. 

Additionally, a transfer in of $4,200,000 and 0 FTE to cover the cost of the U.S. Secret 

Service security detail provided to the Secretary of the Treasury. 

Base Realignment .........................................................................................+$0 / +5 FTE 

OIA - Security Personnel +$0 / +5 FTE Transfer of security personnel from WCF Secure 

Communications to Office of Intelligence and Analysis (OIA). 

Maintaining Current Levels (MCLs) ...........................................+$7,140,000 / +0 FTE 

Non-Pay Inflation Adjustment +$2,342,000 / +0 FTE Funds are requested for non-labor 

related items such as contracts, travel, supplies, equipment and GSA rent adjustments. 

Pay Annualization +$669,000 / +0 FTE Funds are requested for the FY 2008 cost of the 

January 2007 pay increase. 

Pay Inflation Adjustment +$4,129,000 / +0 FTE Funds are requested for the proposed 

January 2008 pay raise. 

Initiative Annualization ...............................................................+$7,877,000 / +35 FTE 

IA - Annualization of FY 2007 Initiative +$2,580,000 / +8 FTE In FY 2007, additional 

resources were requested to expand the Treasury attaché program in countries such as 

Iraq, China and Afghanistan. Treasury attachés work in tandem with the Office of 

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International Affairs (IA) and the Office of Terrorism and Financial Intelligence (TFI) to 

build relationships with foreign officials and work with local U.S. industry and agency 

representatives to advance U.S. interests. They also provide much-needed intelligence 

and expertise to U.S. officials in Washington formulating policy on international 

economics, trade, finance and terrorist finance. Funding is requested for the full FY 2008 

cost and FTE realization from this FY 2007 initiative. 

OFAC - Annualization of FY 2007 Initiatives +$2,429,000 / +12 FTE Designated Global 

Terrorists and their support networks continuously seek new ways of evading U.S. and 

international sanctions by changing the names and locations of support organizations and 

financing methods. This creates an additional challenge for the Office of Foreign Assets 

Control (OFAC) in its responsibility to administer and enforce economic sanctions. 

Additional positions were requested in FY 2007 for OFAC to monitor and update 

existing designations to capture these evasions and track the development of new support 

structures and funding sources. Additionally, in FY 2007 positions were requested to 

implement and administer the new 2006 WMD Executive Order. These resources would 

be deployed to identify, target, designate and implement sanctions against the financiers 

and facilitators of WMD proliferation. Funding is requested for the full FY 2008 cost 

and FTE realization from these FY 2007 initiatives. 

OGC - Annualization of FY 2007 Initiatives +$1,034,000 / +6 FTE The FY 2007 

President’s Budget provides funding for three FTEs to finalize the staffing needs of the 

recently created Office of the Assistant General Counsel for Enforcement and 

Intelligence (AGC E&I) and three FTEs for OFAC Chief Counsel’s Office to meet 

Treasury’s need for essential legal services in support of the Department’s most critical 

anti-terrorism missions. The AGC E& I attorneys provide legal counsel for the 

Department’s essential and growing terrorist financing, money laundering, WMD 

proliferation, narco-trafficking and economic sanctions programs, and a wide range of 

intelligence and information-sharing initiatives that are critical to the success of those 

programs. OFAC’s Chief Counsel’s Office supports an “operational” client, and its 

responsibilities include drafting Executive Orders and regulations, and working closely 

with OFAC and the Justice Department on litigation matters. Funding is requested for 

the full FY 2008 cost and FTE realization ($1,034 / +6 FTE) from the FY 2007 

initiatives. 

OIA - Annualization of FY 2007 Initiative +$1,261,000 / +6 FTE Additional analyst 

positions were requested in FY 2007 to effectively address transnational terrorist and 

illicit finance issues; such as terrorist finance, decentralization and proliferation of 

terrorist groups, counter-proliferation and critical infrastructure protection. These 

resources will provide the ability to engage in analyst exchanges with other national 

security and intelligence community agencies in accordance with the Intelligence Reform

and Terrorism Prevention Act of 2005. Funding is requested for the full FY 2008 cost 

and FTE realization from this FY 2007 initiative. 

TP - Annualization of FY 2007 Initiative +$573,000 / +3 FTE Dynamic analysis of tax 

policy proposals (analysis incorporating changes in taxpayer behavior), including their 

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macroeconomic effects, enhance the information provided to decision-makers regarding 

the effects of their tax policy determinations. The FY 2007 proposed addition of a 

Dynamic Analysis Division (including a division director and economists) to the Office 

of Tax Policy facilitates the production of such dynamic analyses relating to proposed 

Federal tax legislation. Funding is requested for the full FY 2008 cost and FTE 

realization from this FY 2007 initiative. 

Non-Recurring Costs ......................................................................-$2,360,000 / +0 FTE 

Non-recur SCIF -$1,000,000 / +0 FTE FY 2008 savings achieved from non-recurring 

costs: -$1,000,000 associated with the establishment of a Sensitive Compartmented 

Information Facility (SCIF) in FY 2007. 

Non-recur of Declassification Project -$676,000 / +0 FTE FY 2008 savings achieved 

from non-recurring costs: $-676,000 for project expenses for declassification of records. 

Non-recur of IA -$684,000 / +0 FTE FY 2008 savings achieved from non-recurring 

costs: -$684,000 for one-time expense related to transfer of new staff to overseas posts in 

FY 2007. 

Transfers In ..................................................................................+$5,100,000 / +10 FTE 

DF - Critical Infrastructure Protection Transfer from DSCIP +$2,100,000 / +10 FTE 

Homeland Security Presidential Directive 7 (HSPD-7) designates Treasury as the lead 

agency for the Banking and Finance sector. The Office of Critical Infrastructure 

Protection discharges this obligation for the Department, and works to identify, prioritize, 

and determine the interdependencies of critical assets in order to provide an appropriate 

level of protection. This initiative, which is also one of the Department’s President’s 

Management Agenda milestones, will assist in Treasury’s efforts to ensure the resilience 

of the financial services sector in the event of threats to its physical integrity or viability. 

This request represents the transfer of Critical Infrastructure Protection salaries from the 

Department-wide Systems and Capital Investment Program to Domestic Finance, and 

recognizes that important milestones have been achieved and that permanent staffing will 

be required to continuously implement these resilience efforts. 

OIA - TFIN Transfer from DSCIP +$3,000,000 / +0 FTE The Treasury Foreign 

Intelligence Network (TFIN) system supports the Department of the Treasury’s 

capabilities in providing and analyzing meaningful intelligence for senior Treasury 

Department staff, as well as for other agencies within the Intelligence Community. The 

data from the TFIN system is utilized by the Secretary of the Treasury, the Deputy 

Secretary of the Treasury, the Under Secretary for TFI, the Under Secretary for 

International Affairs, OIA, OFAC, the Financial Crimes Enforcement Network (FinCEN) 

and other components. The development phase of the TFIN stabilization and 

modernization project will be completed by the end of FY 2007, requiring funds for user 

support and ongoing operations and maintenance of the system. 

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Program Increases .....................................................................+$10,894,000 / +28 FTE 

ED - Enhanced International Economic Policy Coordination +$618,000 / +3 FTE The 

Department of the Treasury is committed to the critical task of fortifying economic 

relations with foreign countries and financial institutions, working towards creating a 

platform for global growth and security. To this end, it is necessary to enhance policy 

coordination and resources through the addition of regional experts. This initiative is for 

additional staff to support key policy dialogues with countries like China. 

IA - CFIUS +$940,000 / +4 FTE The Committee on Foreign Investment in the United 

States (CFIUS) is responsible for investigating the merger or acquisition of U.S. 

companies by foreign persons for national security implications. This function is 

mandated under the Exxon-Florio Legislation amendment to the Defense Production Act, 

and is managed by Treasury’s Office of International Affairs on the Secretary’s behalf. 

The significance of this work has grown exponentially with the growth of foreign 

investment into the United States and the sharp increase in transactions filed with CFIUS. 

Requested resources will be used to recruit investment flow analysts and other specialists. 

This function is necessary to provide adequate support for, and measure progress toward, 

achieving the International Affairs objective of ensuring national security and increasing 

economic growth. 

OFAC - Economic Sanctions against State Terrorism +$1,392,000 / +2 FTE The Office 

of Foreign Assets Control (OFAC) is committed to combating terrorist networks and state 

sponsors of terrorism. New Executive Orders with respect to Sudan and Syria were 

issued in 2006 and the Administration is extensively engaged with respect to Iran. Each 

new Executive Order and/or OFAC designation of terrorists and their financial networks 

brings with it increasing demands on OFAC’s enforcement, licensing, compliance and 

administrative support components. Additional resources in these areas are requested to 

match the increased tempo of new Executive Orders and Treasury designations. 

OFAC - Sanctions against WMD Proliferation +$889,000 / +3 FTE Building on 

resources requested in FY 2007 to fund the start-up of the sanctions program against 

WMD proliferation, the FY 2008 President’s Budget requests additional resources to 

effectively implement and administer Executive Order 13382. The WMD sanctions 

program is a Presidential national security priority, and these resources will be used to 

strengthen OFAC’s ability to track, identify, and designate financiers and other 

supporters of WMD proliferation. Publicizing the designations, and assigning resources 

to work with the U.S. public and with government agencies will greatly assist the 

Treasury Department in effectively isolating financiers and facilitators of WMD 

proliferation from the U.S. and international commercial communities. The request will 

also provide OFAC with additional resources to expand its enforcement capacity in 

support of investigation and blocking activities, which are critical to the enforcement of 

sanctions. 

OIA - Emerging National Security Threats +$1,973,000 / +10 FTE Eleven intelligence 

analysts (including three open-source analysts) and five production officers are requested 

to support the efforts of the Office of Intelligence Analysis (OIA) in addressing the most 

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pressing and emerging national security issues; including transnational terrorist and illicit 

finance issues, as well as engage in analyst exchanges with other national security and 

intelligence community agencies. This request will also allow OIA to establish a 

permanent intelligence production structure, an essential component to the timely and 

accurate production of intelligence information. 

OIA - Intelligence Community Integration +$219,000 / +1 FTE Integrating Treasury 

further into the Intelligence Community (IC) remains one of OIA’s top priorities. This is 

consistent with the information sharing and coordination requirements outlined in the 

Intelligence Reform and Terrorism Prevention Act of 2004, as well as in Executive 

Orders 13356 and 13388. Improvements in this arena will increase Treasury’s access to 

critical intelligence, and expand its ability to coordinate on terrorist-financing and WMD 

proliferation matters with the IC, law enforcement communities, and foreign partners. 

OIA’s participation as a full fledged IC member is closely aligned with the Director of 

National Intelligence's (DNI) mission objective to improve the integration of the IC. This 

initiative will allow OIA to hire two additional personnel to engage in analytic 

exchanges/detail assignments with the National Counterterrorism Center and the Central 

Intelligence Agency (CIA) – two of Treasury’s key intelligence partners. 

OIA - Intelligence Support +$215,000 / +1 FTE The Office of Intelligence Support (OIS) 

is tasked with providing intelligence on a full range of political, economic, and security 

matters to the Secretary, Deputy Secretary and other senior Treasury leadership. The 

information provided by OIS is critical for the Treasury Department’s senior leaders’ 

participation in the National Security Council policymaking process. For OIS to succeed 

in these efforts, it is essential that the office be fully integrated into the intelligence 

community. The funding requested will enable OIS integration consistent with the 

information sharing and coordination requirements of the Intelligence Reform and 

Terrorism Prevention Act and Executive Orders 13356 and 13388. The additional 

personnel will provide briefing support and facilitate OIA’s increased role in the review 

process for transactions filed with the Committee on Foreign Investment in the United 

States (CFIUS). Finally, the request provides additional watch officers to fully staff the 

Department’s 24/7 intelligence operations center. 

OIA - Overseas Travel +$148,000 / +0 FTE This initiative would enable OIA 

intelligence analysts to engage in intelligence/analytic exchanges in key countries, 

improving Treasury’s access to information on priority terrorist financing targets. The 

OIA analysts would travel to countries where terrorist financing remains a serious 

problem; where the host governments have not taken sufficiently aggressive action in 

response to this threat. Intelligence analysts need to build lasting institutional 

relationships with key counterterrorism intelligence/analytic authorities in these 

governments, which could result in greater cooperation and more aggressive action by the 

host countries. Improving the host countries’ understanding of Treasury’s unique 

authorities to combat terrorism, including Executive Order 13224 and Section 311 of the 

USA PATRIOT Act, would greatly benefit the U.S. Government’s terrorist financing 

efforts. This type of travel is valuable both for employee skill development, and in 

improving their understanding of the regions and countries that they cover. 

DO - 12 
OIA - SCIF +$3,000,000 / +0 FTE This initiative is a request for additional secure space 

to accommodate the new hires in OIA and OFAC’s terrorism and WMD proliferation 

programs. The highly classified work of these expanding units can only be accomplished 

in specially constructed secure areas, known as Sensitive Compartmented Information 

Facilities (SCIF). Adequate security infrastructure is critical to protecting the intelligence 

and national security functions of the Department. OIA’s increasing reliance on highly 

classified intelligence information necessitates additional space requirements, as there is 

currently a lack of SCIF space in the Treasury building. 

OIA - Special Security Program +$477,000 / +1 FTE Safeguarding the sensitive 

information provided to the Treasury Department by the National Security Counsel 

(NSC) and the IC, as outlined in Director of Central Intelligence Directives 6/1 – 6/10, 

Executive Orders 12333, 12958, and 32CFR2004, is a critical responsibility of OIA. 

Accidental or unauthorized disclosure of this information could do exceptionally grave 

damage to national security. The expansion of TFI and its components has placed 

increased demands on the small staff of the office responsible for special security 

programs. In addition, with OIA’s increased integration into the IC, OIA is now a 

participant in the IC reciprocity programs, which are required by the DNI of IC members. 

The expansion of OIA has also resulted in the need for more Sensitive Compartmented 

Information Facilities to do this highly classified work, which has also significantly 

increased the responsibilities of the Office of Special Security Programs. This initiative 

will allow OIA to hire two security specialists to cover these various issues. 

TFFC - Disrupt and Dismantle Financial Networks +$638,000 / +3 FTE This request 

would provide the Office of Terrorist Financing and Financial Crimes (TFFC) with 

increased resources to devote specific policy advisors to critical regions in the Western 

Hemisphere, Africa and the Middle East-South Asia nexus. These regions present 

specific terrorist financing and financial crimes problems, including money laundering 

tied to narcotics and arms trafficking, and financial flows to terrorist organizations. The 

Middle East is of particular concern, as a number countries continue to provide a base for 

terrorist fundraisers and financial supporters, particularly to South Asia-based terrorist 

groups. Additional policy advisors dedicated to these areas will allow the Treasury 

Department to bring together the U.S. Government tools available to law enforcement 

and national security agencies in the fight against terrorist financing and financial crime. 

The requested policy advisors would allow TFFC to meet multiple strategic objectives, 

including disrupting terrorist financial and support networks and building the capacity of 

foreign governments to combat terrorist financing. 

TFFC - Disrupt and Dismantle Rogue Regimes +$385,000 / +2 FTE This initiative 

would fund additional policy advisors to cover North Korea, Afghanistan, Pakistan, 

India, and Central Asia on pressing financial issues. This funding will allow the Treasury 

Department to fully leverage tactical successes to develop ongoing strategic approaches 

to bring additional financial pressures. This initiative is consistent and in support of 

Executive Orders 13338 and 13382 and Section 311 of the U.S. PATRIOT Act. 

DO - 13 
2.2 – Operating Levels Table 

Dollars in Thousands 

 

Appropriation Title: DO Salaries & Expenses FY 2006

Enacted

FY 2007 

President's 

Budget

CR-rate 

Adjustment

FY 2007

CR-rate

FY 2007

Proposed

Operating 

Level

FY 2008 

Requested

Level

FTE 1,004 1,058 - 1,004 1,058 1,136

Object Classification:

11.1 Full-Time Permanent Positions..................... $91,905 $100,850 ($13,293) $87,557 $100,850 $112,378

11.1 Other than Full-Time Permanent Positions.... 2,781 2,781 (538) 2,243 2,781 2,781

11.5 Other Personnel Compensation.................... 197 197 76 273 197 197

11.8 Special Personal Services Payments............ 0 0 0 0 0 0

11.9 Personnel Compensation (Total)............... $94,883 $103,828 ($13,755) $90,073 $103,828 $115,356

12.0 Personnel Benefits........................................ 19,117 21,548 1,132 22,680 21,548 23,843

13.0 Benefits to Former Personnel........................ 0 0 0 0 0

21.0 Travel............................................................ 3,000 6,296 (2,723) 3,573 6,296 6,789

22.0 Transportation of Things............................... 0 0 0 0 0 0

23.1 Rental Payments to GSA.............................. 4,000 4,602 (649) 3,953 4,602 5,239

23.2 Rent Pa

0

yments to Others.............................. 0 0 0 0 0 0

23.3 Communications, Utilities, & Misc................. 7,967 7,967 5,189 13,156 7,967 7,967

24.0 Printing and Reproduction............................. 2,715 2,715 (121) 2,594 2,715 2,715

25.1 Advisory & Assistance Services.................... 28,014 41,852 (11,175) 30,677 41,859 52,837

25.2 Other Services.............................................. 9,724 9,724 (386) 9,338 9,724 9,724

25.3 Purchase of Goods/Serv. from Govt. Accts... 18,847 18,847 (8,357) 10,490 18,840 18,840

25.4 Operation & Maintenance of Facilities........... 900 900 76 976 900 900

25.5 Research & Development Contracts............. 0 0 0 0 0 0

25.6 Medical Care................................................. 0 0 0 0 0 0

25.7 Operation & Maintenance of Equipment........ 1,000 1,000 405 1,405 1,000 1,000

25.8 Subsistence & Support of Persons................ 0 0 0 0 0

26.0 Supplies and Materials.................................. 3,711 3,801 (894) 2,907 3,801 3,857

31.0 Equipment..................................................... 748 794 (445) 349 794 1,073

32.0 Lands and Structures.................................... 0 0 0 0 0 0

33.0 Investments & Loans....................................

0

. 0 0 0 0 0

41.0 Grants, Subsidies.........................................

0

. 0 0 0 0 0

42.0 Insurance Claims & Indemn.......................... 0 0 0 0 0 0

43.0 Interest and Dividends...........................

0

... 0 0 0 0 0

44.0 Refunds........................................................

0

. 0 0 0 0 0

Total Budget Authority....................................

0

... $194,626 $223,874 ($31,703) $192,171 $223,874 $250,141

Budget Activities:

Executive Direction Programs.............................. $16,329 $17,501 ($1,176) $16,325 $17,501 $19,815

Economic Policies and Programs........................ 31,691 41,947 (10,366) 31,581 41,947 45,450

Financial Policies and Programs........................... 26,308 25,336 918 26,255 25,336 28,869

Terrorism and Financial Intelligence..................... 39,540 45,401 (6,138) 39,264 45,401 56,224

Treasury-Wide Mgmt. Policies and Programs......... 16,674 20,372 (3,816) 16,556 20,372 20,810

Administration Programs................................... 63,094 73,316 (11,125) 62,191 73,316 78,972

Currency Manipulation................................... 990 0 0 0 0 0

Total Budget Authority....................................... $194,626 $223,874 ($31,703) $192,171 $223,874 $250,141

DO - 14 
2B – Appropriation Language 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES: 

For necessary expenses of the Departmental Offices 

including operation and maintenance of the Treasury 

Building and Annex; hire of passenger motor vehicles; 

maintenance, repairs, and improvements of, and purchase 

of commercial insurance policies for, real 

properties leased or owned overseas, when necessary for 

the performance of official business, $250,141,000: 

Provided, That of the amount appropriated under this 

heading, not to exceed $3,000,000, to remain available 

until September 30, 2009, for information technology 

modernization requirements; not to exceed $200,000 for 

official reception and representation expenses; and not to 

exceed $258,000 for unforeseen emergencies of a 

confidential nature, to be allocated and expended under the 

direction of the Secretary of the Treasury and to be 

accounted for solely on his certificate: Provided further, 

That of the amount appropriated under this heading, 

$5,114,000 to remain available until September 30, 2009, 

is for the Treasury-wide Financial Statement Audit and 

Internal Control Program, of which such amounts as may 

be necessary may be transferred between accounts of the 

Department’s offices and bureaus to conduct audits: 

Provided further, That this transfer authority shall be in 

addition to any other provided in this Act: Provided 

further, That of the amount appropriated under this 

heading, $3,000,000 to remain available until September 

30, 2009 is for secure space requirements: Provided 

further, That of the amount appropriated under this 

heading, $2,300,000, to remain available until September 

30, 2009, is for salary and benefits for hiring of personnel 

whose work will require completion of a security clearance 

investigation in order to perform highly classified work to 

further the activities of the Office of Terrorism and 

Financial Intelligence: Provided further, That of the 

amount appropriated under this heading, $2,100,000, to 

The language has been 

amended to remove the 

allocation of appropriated 

funds by budget activity. 

The amended language 

provides flexibility to the 

Secretary of the Treasury 

to meet critical 

requirements in a timely 

manner. This 

methodology is in line 

with submissions from

prior years, and will 

make DO’s 

reprogramming 

requirements the same as 

all other Treasury 

bureaus. 

The language requests 

that representation funds 

be increased by $50,000 

to reflect Treasury’s 

greater overseas presence 

and increased 

international 

responsibilities. 

This language requests 

that $3M of the DO S&E 

request for construction 

of a SCIF be identified as 

multi-year. Given the 

scope of the project and 

project plans for similar 

DO - 15 
remain available until September 30, 2010, is to develop 

and implement programs within the Office of Critical 

Infrastructure Protection and Compliance Policy, including 

entering into cooperative agreements. (Department of the 

Treasury Appropriations Act, 2008.)

construction projects, 

multi-year funding will 

be necessary. 

This requests includes a 

set aside of $2.3M for the 

hiring of personnel who 

require a security 

clearance. Given the 

highly specialized 

background and expertise 

required to fill these 

positions, as well as the 

extended time required to 

perform background 

investigations, multi-year 

funds are necessary. 

2C – Legislative Proposals 

Expand the Secretary of the Treasury’s authority to invest excess cash on behalf of the 

government. The FY 2008 Budget proposes legislation to give the Secretary of the 

Treasury the ability to manage the government’s short-term excess operating cash more 

efficiently. Under the current authority, which is codified at 31 U.S.C. 323, the 

Government is authorized to invest its short-term excess cash in obligations of the United 

States Government and depositary institutions, principally, banks, savings and loan 

associations and credit unions. This initiative would enable the Secretary of the 

Treasury to broaden investment options and improve earnings on investments while not 

increasing the risk of those investments. This initiative is expected to increase interest 

earnings on the Treasury’s investment of short-term excess cash by approximately $10 

million annually. Such earnings would be deposited in the general fund of the Treasury. 

Additional Assistant Secretary for International Affairs. In FY 2007, the Administration 

will seek legislation to establish a second assistant secretary for International Affairs, 

funded with existing budgetary resources. One assistant secretary would focus on the 

Treasury Department's development and regional policy responsibilities while the other 

would be focused on matters of international capital and trade flows. 

DO - 16 
Section 3 – Budget and Performance Plan

3.1 – Appropriation Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Executive Direction Programs 113 $16,329 90 $16,309 119 $17,501 $113 $16,325 129 $19,815 14.16% 21.38%

Economic Policies and Programs 222 31,691 169 31,570 232 41,947 222 31,581 244 45,450 9.68% 43.92%

Financial Policies and Programs 182 26,308 130 26,258 184 25,336 182 26,255 197 28,869 8.24% 9.96%

Terrorism and Financial Intelligence 233 39,540 180 39,340 264 45,401 233 39,264 308 56,224 31.97% 43.20%

Treasury-wide Mgmt. Policies and Programs 94 16,674 69 16,664 99 20,372 94 16,556 99 20,810 5.32% 25.70%

Administration Programs 160 63,094 126 62,924 160 73,316 160 62,191 160 78,972 0.00% 26.98%

Currency Manipulation 0 990 0 990 0 0 0 0 0 0 0.00% 0.00%

Subtotal New Appropriated Resources 1,004 194,626 764 194,055 1,058 223,874 1,004 192,171 1,136 250,141 13.15% 30.17%

Other Resources:

Offsetting Collections - Reimbursable 86 $19,800 83 $17,845 90 $19,800 $86 $17,845 90 $19,800 4.65% 10.96%

Subtotal Other Resources 86 $19,800 83 $17,845 90 $19,800 86 $17,845 90 $19,800 4.65% 10.96%

Total Resources Available for Obligation 1,090 $214,426 847 $211,900 1,148 $243,674 1,090 $210,016 1,226 $269,941 12.48% 28.53%

Resources Available for Obligation Enacted Obligations President's Budget CR-rate Request to FY 2008

% Change

FY 2006 FY 2006 FY 2007 FY 2007 FY 2008 FY 2007

3A – Executive Direction ($19,815,440 from direct appropriations and $590,000 from 

reimbursable programs): The Executive Direction program area provides direction and 

policy formulation to the Department and DO, and interacts with Congress and the public 

on Departmental policy matters. Components of Executive Direction include: the Office 

of the Secretary, Deputy Secretary, Chief of Staff, Executive Secretary, Office of General 

Counsel, Legislative Affairs, Public Affairs, and Treasurer. No specific performance 

goals/measures are presented for this budget activity as the work of the offices within this 

budget activity is captured within the other budget activities. 

3.2.1 – Executive Direction Budget and Performance Plan 

Dollars in Thousands

Executive Direction Budget Activity Includes Strategic Objectives E1A, E1B, E1C, E2A, E2B, F3A, F3B, 

F3C, F4A, F4B, F4D, and M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $17,067 $14,430 $16,329 $17,501 $19,815

 Other Resources 414 469 590 590 590

Total Operating Level $17,481 $14,899 $16,919 $18,091 $20,405

Human Resources

 Appropriated FTE 106 112 113 119 129

 Other FTE 5 3 3 3 3

Total FTE (direct and reimbursable) 111 115 116 122 132

3B – Economic Policies and Programs ($45,450,170 from direct appropriations and 

$3,839,000 from reimbursable programs): The Treasury Department plays both a policy 

and an operational role in promoting prosperous U.S. and world economies, raising 

standards of living, and protecting global economic and financial systems through the 

formulation and execution of United States economic and financial policies that promote 

growth. The Treasury Department supports U.S. economic growth by developing and 

implementing policies for domestic economic development, tax programs, banking and 

financial institutions, and other fiscal matters. 

DO - 17 
The Office of International Affairs and the Office of Economic Policy monitor domestic 

and international economic conditions, and collect and analyze financial data, including 

foreign credits and credit guarantees. The Treasury Department works to establish open 

trade and investment policies that benefit American workers and encourage growth in 

developing countries, while also promoting responsible policies regarding international 

debt and finance. The Treasury Department monitors the economies of more than 160 

countries worldwide to ensure stability and transparency in the global marketplace, and 

works with more than twenty international financial institutions and organizations to 

target development assistance. 

The Secretary of Treasury is the chair of CFIUS –an interagency committee that 

investigates the merger or acquisition of U.S. companies by foreign persons for national 

security implications. Treasury’s Office of International Affairs manages this function on 

the Secretary’s behalf. Recent high-profile investments, and the sharp increase in 

transactions filed with CFIUS, have demonstrated the importance of dedicating adequate 

resources to this critical function. 

Office of International Affairs. The mission of this office is to:

• Raise economic growth in developed and developing countries; 

• Improve financial stability and security in emerging and world markets; 

• Increase the effectiveness of U.S. assistance to the world’s poorest 

countries; 

• Enhance the functioning of international financial institutions; and 

• Promote an open and transparent international trade and investment 

market.

Office of Economic Policy. The mission of this office is to:

• Analyze and report on current and prospective economic developments in 

the U.S. and world economies, and assist in the determination of 

appropriate economic policies; 

• Produce and publish a corporate bond yield curve as required by the 

Pension Protection Act of 2006; 

• Support the Secretary of the Treasury in his roles as Chairman and 

Managing Trustee of the Social Security and Medicare Boards of Trustees; 

and 

• Conduct research to assist in the formulation and articulation of public 

policies and positions of the Treasury Department on a wide range of 

microeconomic issues. Recent examples include terror risk insurance, 

health care, pension reform and retirement income security, policy 

responses to a potential flu pandemic, and policy responses to natural 

disasters such as Hurricanes Katrina and Rita. 

Other Resources: Reimbursements totaling $3.8 million are collected from the U.S. 

Agency for International Development for Treasury economic and financial technical 

assistance to foreign governments; and from the Mansfield Center for Pacific Affairs for 

personnel services rendered on a rotational basis to the Government of Japan’s Ministry 

DO - 18 
of Finance. (Note: A portion of these funds are allocated to the Executive Direction and 

Administrative Programs budget activities to support management and legal services 

provided to reimbursable programs). 

3.2.2 – Economic Policies and Programs Budget and Performance Plan 

Dollars in Thousands

Economic Policies and Programs 

Budget Activity

Includes Strategic Objectives E1A, E1C, E2A, E2B, F3A, F3B, F3C, 

F4A, F4B, and F4D

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $31,837 $31,203 $31,691 $41,947 $45,450

 Other Resources 2,690 3,050 3,839 3,839 3,839

Total Operating Level $34,527 $34,253 $35,530 $45,786 $49,289

Human Resources

 Appropriated FTE 199 218 222 232 244

 Other FTE 18 17 17 17 17

Total FTE (direct and reimbursable) 217 235 239 249 260

Economic Policies and Programs Budget 

Activity

Includes Strategic Objectives E1A, E1C, E2A, E2B, F3A, F3B, 

F3C, F4A, F4B, and F4D

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target 90% 90% 90% 90%

Actual 78% 100%

Improve International Monetary Fund (IMF) 

effectiveness and quality through periodic review

of IMF programs (%)(Oe) Met No Yes

Target 294 216 870 870 870

Actual 65 46 700

Level of MDB grant financing and satisfactory

results measurements (African Development 

Bank/AFDF Grants) (in millions) (Oe) Met No No No

Target 21% 19.5% 35% 28.5% 35%

Actual 39.2% 21.8% 30.5%

Level of MDB grant financing and satisfactory

results measurements (Grants as a % of AFDF 

FY Commitment) (Oe) Met Yes Yes No

Target 22% 19.6% 30.4% 30% 19.6%

Actual 18.8% 21.4% 25%

Level of MDB grant financing and satisfactory

results measurements (Grants as a % of IDA FY

Commitment) (Oe) Met No Yes No

Target 1,602 1,728 3,555 2,025 2,025

Actual 1,681 1,925 2,025

Level of MDB grant financing and satisfactory

results measurements (World Bank/IDA Grants) 

[in millions] (Oe) Met Yes Yes No

Target 5 9 7 7

Actual 7 12

Number of new Free Trade Agreement (FTA) 

negotiations and Bilateral Investment Treaty

(BIT) negotiations underway or completed (Oe) Met Yes Yes

Target Baseline 90% 90% 90%

Actual 78% 88%

Percentage of grant and loan proposals 

containing satisfactory frameworks for results 

measurement (%) (Oe) Met Yes No

Target 5.6% 5.3% 5.2% 5.1% 4.8%

Actual 5.4% 5.1% 4.6%

U.S. unemployment rate (%) (Oe) 

Met Yes Yes Yes

Target 3.5% 3.6% 3.4% 3.3% 3.2%

Actual 4.5% 3.6% 3%

US Real Gross Domestic Product (GDP) growth 

rate (%) (Oe) 

Met Yes Yes No

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Description of Performance: One of Treasury’s important economic performance goals 

is to address global imbalances and assure sustainable global growth. One way Treasury 

accomplishes this goal is by encouraging large economies with fixed or rigid exchange 

rate regimes to adopt flexible exchange rates. Treasury engaged in and supported 

economic dialogue with countries, including China, and provided technical advice and 

assistance so these countries will be able to transition from fixed to flexible regimes. In 

DO - 19 
FY 2004, Treasury met its target of three regimes becoming more flexible. In FY 2007 

and FY 2008 Treasury will continue to work with China and other governments. China is 

now taking concrete steps to establish the financial infrastructure to implement flexible 

exchange rates. Treasury is actively assisting China in its efforts to achieve the desired 

outcome of a flexible China currency. 

Another important economic goal for Treasury is to work with foreign governments to 

open financial services markets to U.S. providers. This goal is accomplished by 

increasing the number of new Free Trade Agreement (FTA) negotiations and Bilateral 

Investment Treaty (BIT) negotiations. Treasury seeks strong commitments from U.S. 

trading partners in these negotiations to ensure those markets are available to the U.S. on 

a fair and open basis. Once implemented, these agreements serve as a core element of 

U.S. trading partner’s economic infrastructure and help enhance international economic 

and financial stability. In FY 2006, Treasury negotiated 12 such agreements, which 

surpassed its target of nine. For FY 2008, Treasury plans to negotiate seven more 

agreements. 

 

3C – Financial Policies and Programs ($28,868,940 from direct appropriations and 

$4,665,000 from reimbursable programs): The Treasury Department has both a policy 

and an operational role in promoting prosperous U.S. and world economies, raising 

standards of living, and protecting domestic and international economic and financial 

systems. As the principal economic advisor to the Secretary on domestic issues, the 

offices within the Financial Policies and Programs area provide the economic and 

financial policy expertise of the Department. 

One of the principal objectives of the Financial Policies and Programs area is to enable 

commerce. The Office of Domestic Finance is responsible for advising and assisting in 

areas of domestic finance, banking, fiscal policy and operations, and the development of 

policies and guidance in areas of financial institutions, Federal debt finance, financial 

regulation and capital markets. The Treasury Department supports U.S. economic 

growth by developing and implementing policies for domestic economic development, 

tax programs, banking and financial institutions, and other fiscal matters. The Office of

Tax Policy, in addition to providing the Secretary with expert tax analysis, serves as the 

official representative to a number of international organizations, which contribute to the 

search for common approaches to addressing current and important tax problems for 

which international consensus can be very valuable. 

Office of Tax Policy. Responsibilities of the Office of Tax Policy include: 

• Advising the Secretary, Assistant Secretary of Tax Policy and other 

Treasury officials on the formulation of the Administration's domestic and 

international taxation policy, including preparing the Administration’s 

testimony on such legislation; 

• Coordinating with Congressional staffs and other agencies on matters 

related to U.S. domestic and international tax policy, including the 

documentation of the legislative history of tax legislation and drafting of 

new legislation; 

DO - 20 
• Establishing policy criteria derived from rulings and regulations, and 

guiding preparation of these requirements with the Internal Revenue 

Service to implement and administer the Internal Revenue Code; and 

• Representing the United States in various international organizations, such 

as the Organization for Economic Cooperation and Development and the 

G-7. 

Office of Domestic Finance. Responsibilities of the Office of Domestic Finance 

include: 

• Assisting in the formulation of policy related to financial institutions, 

government-sponsored enterprises, critical infrastructure protection, 

Federal debt management, state and local finance, financial market 

oversight as well as compliance policy and financial education; 

• Establishing policy aimed at deterring U.S. currency counterfeiters; 

• Developing systems for the collection, disbursement, management and 

security of public monies in the United States and abroad, and related 

government-wide accounting and reporting for those funds; and 

• Creating the conditions necessary for the financial sector to be resilient in 

the event of unforeseeable future events. 

Other Resources: Reimbursements totaling $4.7 million are collected from the Council 

of Economic Advisors and the Board of Governors of the Federal Reserve for personnel 

services rendered. (Note: A portion of these funds are allocated to the Executive 

Direction and Administrative Programs budget activities to support management and 

legal services provided to reimbursable programs). 

3.2.3 – Financial Policies and Programs Budget and Performance Plan 

Dollars in Thousands

Financial Policies and Programs Budget 

Activity

Includes Strategic Objectives E1A, E1C, E2A, E2B, F3A, F3B, F3C, 

F4A, F4B, and F4D

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $23,265 $25,231 $26,308 $25,336 $28,869

 Other Resources 3,269 3,706 4,665 4,665 4,665

Total Operating Level $26,534 $28,937 $30,973 $30,001 $33,534

Human Resources

 Appropriated FTE 163 177 182 184 197

 Other FTE 25 26 22 27 27

Total FTE (direct and reimbursable) 188 203 204 211 224

DO - 21 
Financial Policies and Programs Budget 

Activity

Includes Strategic Objectives E1A, E1C, E2A, E2B, F3A, F3B, 

F3C, F4A, F4B, and F4D

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Met Met Met Met Met

Actual Met Met Met

Audit opinion received on government-wide 

financial statements (Oe) 

Met Yes Yes Yes

Target Met Met Met Met Met

Actual Met Met Met

Release Federal Government-wide financial 

statements on time (Oe) 

Met Yes Yes Yes

Target 5% 5% 5% 5% 5%

Actual 3.8% 5% 3.9%

Variance between estimated and actual receipts 

(annual forecast) (%) (Oe) 

Met Yes Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Description of Performance: In FY 2006, the Treasury Department’s Office of 

Domestic Finance released the federal government-wide financial statements on time. 

The Treasury Department has met this performance target since FY 2004, and expects to 

continue to meet its targets in FY 2008. The prompt release of this statement is important 

because it represents the culmination of the recent government-wide campaign to 

accelerate the issuance of financial reporting. Treasury also manages the government’s 

cash position to ensure that funds are available on a daily basis to cover federal payments 

and to maximize investment earnings and minimize borrowing costs. 

To optimize cash management, the Treasury Department measures the difference 

between actual and projected receipts. In FY 2006, Treasury continued to improve in 

forecasting receipts, outlays, debt and overall cash, and met its targeted variance level of 

five percent. In FY 2007 and FY 2008, the Treasury Department plans to continue 

efforts to improve its forecasting abilities in order to provide government savings. 

3D – Terrorism and Financial Intelligence ($56,224,450 from direct appropriations 

and $3,242,000 from reimbursable programs): The Department of the Treasury’s 

regulatory, law enforcement and intelligence authorities provide powerful tools for the 

United States to apply pressure against threats to national security when diplomatic 

outreach may be unproductive and traditional military action may be ineffective or 

inappropriate. Terrorism and Financial Intelligence (TFI) leverages these authorities to 

neutralize threats and to safeguard the security of the U.S. and international financial 

system by excluding those who would use these systems for illegal purposes or to harm

U.S. national security interests. The Treasury Department does this while keeping 

financial systems free and open to legitimate users. 

Office of Foreign Assets Control (OFAC). The mission of this office is to 

administer and enforce economic and trade sanctions based on U.S. foreign policy 

and national security goals against targeted foreign countries and/or foreign 

regimes, terrorists, international narcotics traffickers, war criminals and their 

support structures, and those engaged in activities related to the proliferation of 

weapons of mass destruction. 

DO - 22 
Office of Intelligence and Analysis (OIA). OIA’s mission is to support the 

formulation of policy and execution of Treasury authorities by: 1) producing 

expert intelligence analysis on financial and other support networks for terrorist 

groups, proliferators, and other key national security threats and; 2) providing 

timely, accurate, and focused intelligence on the full range of economic, political, 

and security issues. 

Office of Terrorist Financing and Financial Crimes (TFFC). TFFC is the policy 

and outreach apparatus for the Department on terrorist financing, money 

laundering, financial crime, and sanctions issues. The mission of TFFC is to 

develop and implement strategies, policies and initiatives to identify and address 

vulnerabilities in the U.S. and international financial system and to disrupt and 

dismantle terrorist and WMD proliferation financial networks. TFFC also 

formulates and promotes policies domestically and internationally to combat 

terrorist financing and financial crime. 

Other Resources: Reimbursements totaling $3.2 million are collected from the Executive 

Office of Asset Forfeiture and the U.S. Department of Defense. (Note: A portion of 

these funds are allocated to the Executive Direction and Administrative Programs budget 

activities to support management and legal services provided to reimbursable programs). 

3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan 

Dollars in Thousands

Terrorism and Financial Intelligence 

Budget Activity

Includes Strategic Objectives F3A, F3B, F3C, and F4B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $23,997 $34,796 $39,540 $45,401 $56,224

 Other Resources 2,271 2,575 3,242 3,242 3,242

Total Operating Level $26,268 $37,371 $42,782 $48,643 $59,466

Human Resources

 Appropriated FTE 159 205 233 264 308

 Other FTE 17 15 17 14 14

Total FTE (direct and reimbursable) 176 220 250 278 322

Terrorism and Financial Intelligence Budget 

Activity

Includes Strategic Objectives F3A, F3B, F3C, and F4B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline

Actual 0

Customer satisfaction with Office of Intelligence 

Analysis (OIA) analysis in terms of its accuracy, 

timeliness, and relevance (Oe) Met Yes

Target Baseline 105 70 120

Actual 95 45

Increase the number of outreach engagements 

with the charitable and international financial 

communities (Ot) Met Yes No

Target Baseline 45 12 12

Actual 49 5

Number of countries that are assessed for 

compliance with the Financial Action Task Force 

(FATF) 40+9 recommendations (Ot) Met Yes No

Target Baseline 85 85 85

Actual 85 85

Number of open civil penalty cases that are 

resolved within the Statute of Limitations period 

(Ot) Met Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

DO - 23 
Description of Performance: When the Office of Terrorism and Financial Intelligence 

(TFI) was established in 2004, the Treasury Department reallocated resources from other 

programs to support its start-up. While each program that made up TFI had its own 

performance management system, TFI did not have a system which supported the 

Department’s entire National Security mission. In FY 2005, TFI worked to align its 

performance goals, objectives and measures with Treasury’s Strategic Plan. TFI’s focus 

on performance management led to significant changes in its suite of performance 

measures - several established performance measures were discontinued and several new 

measures were developed or are under development. 

Although the Treasury Department is making progress in combating the financing of 

terrorists and other national security threats, quantifying these results is challenging. 

Given the clandestine nature of the activities of terrorists and proliferators of weapons of 

mass destruction, it is impossible to estimate what portion of the money intended for their 

support was blocked, and the Department has relied on proxy indicators to estimate the 

effectiveness of its actions; more refined measures to assess performance will be 

implemented in the future. 

Combating money laundering and denying terrorists access to the global financial system

is an integral element in the U.S. strategy for winning the war on terror. Through 

diplomatic efforts and the provision of technical assistance to foreign governments and 

the international financial community, the Treasury Department encourages 

implementation of anti-money laundering/counter terrorist financing standards designed 

to deny terrorists access to a country’s financial systems. Without implementation of 

these standards worldwide, terrorists will enter the international financial system at the 

point of least resistance, and preventative national efforts will be rendered less effective. 

These standards are an important element in the financial war on terror. One way the 

Department tracks its effort in this important area is through the measure “Number of 

Countries” that are “assessed for compliance with the Financial Action Task Force 

(FATF) 40+9 Recommendations.” In FY 2006, 5 countries were assessed for compliance 

with these international standards. This is much below the target. However, classified 

assessments are no longer being included, resulting in the reduction of reported 

recommendations. As a result, the baseline for this performance measure has been 

changed. 

The Treasury Department tracks its engagements with U.S. and international 

governments and private institutions through the measure “Increase the number of 

outreach engagements with charitable and financial communities.” In FY 2006, the 

Department worked with 45 entities to ensure their financial systems are safeguarded 

from money laundering. In FY 2008, the Treasury Department plans to work with 120 

entities. 

In addition to its efforts to prevent money laundering and terrorist financing through 

diplomatic means, the Department administers and enforces economic sanctions against 

individuals, organizations and regimes which pose a threat to U.S. national security. In 

FY 2006, the Department established baselines for a new efficiency measure relating to 

DO - 24 
the processing of license and interpretive guidance requests, and a workload measure 

relating to the resolution of civil penalty cases. 

The Treasury Department also plays an important role in collecting, analyzing and, when 

appropriate, disseminating intelligence about how terrorists and other criminal networks 

operate. A composite measure of the impact of the Department’s intelligence and 

analytical activities is under development. 

3E – Treasury-wide Management and Programs ($20,809,970 from direct 

appropriations and $4,681,000 from reimbursable programs): Treasury-wide

Management’s (TWM) primary responsibility within the Department of Treasury is to 

create the conditions which allow for Administration priorities and goals to be achieved 

in the most efficient and effective manner. Treasury-wide Management provides 

strategic plans and policy direction in the fields of: human resources; emergency 

management, including Treasury employee evacuation and Continuity of Operations; 

information technology security; and financial administration, including the formulation 

and management of the Treasury budget. The development of these integrated plans help 

to align policy and operations in order to produce maximum value for the American 

people. 

TWM is also responsible for the development, implementation and oversight of the 

Federal Information Security Management Act of 2002 (FISMA). FISMA was created to 

provide a broad framework for ensuring the effectiveness of controls around information 

security in support of Federal operations. FISMA aims to effectively reduce information 

security risks, including coordination of information security efforts throughout the 

civilian, national security, and law enforcement communities. Given the critical mission 

supported by the Department, this issue is especially essential to Treasury and DO. 

TWM will act on behalf of Treasury in developing and coordinating the Department’s 

response to this mandate. Resources will be devoted to this task in FY 2008. 

Other Resources: Reimbursements totaling $4.9 million are collected from the Internal 

Revenue Service Oversight Board, Department of Homeland Security, D.C. Pensions, 

and other Treasury bureaus for services rendered. (Note: A portion of these funds are 

allocated to the Executive Direction and Administrative Programs budget activities to 

support management and legal services provided to reimbursable programs). 

DO - 25 
3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan 

Dollars in Thousands

Treasury-wide Management and 

Programs Budget Activity

Includes Strategic Objective M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $17,564 $16,245 $16,675 $20,372 $20,810

 Other Resources 3,283 3,722 4,681 4,681 4,681

Total Operating Level $20,847 $19,967 $21,356 $25,053 $25,491

Human Resources

 Appropriated FTE 84 96 94 99 99

 Other FTE 6 12 7 14 14

Total FTE (direct and reimbursable) 90 108 101 113 113

Treasury-wide Management and Programs 

Budget Activity

Includes Strategic Objective M5B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target 40% 50% 50% 50% 50%

Actual 31% 36% 20%

Complete investigations of EEO complaints 

within 180 days (%) (Oe) 

Met No No No

Target 3.12 3 2.8 2.6 2.4

Actual 3.94 2.8 1

Injury and illness rate Treasurywide-including 

DO (Oe) 

Met No Yes Yes

Target Baseline $40.27 $38.21 $40.96

Actual $39.33 $40.59

Management cost per Treasury employee ($) (E)

Met Yes No

Target 6 4 2 1 1

Actual 8 7 1

Number of open material weaknesses (Oe) 

Met No No Yes

Target 25% 25% 30% 30%

Actual 25% 25%

Percent of complainants informally contacting 

EEO (for the purposes of seeking counseling or 

filing a complaint) who participate in the ADR 

process (%) (Oe) 

Met Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Description of Performance: DO, through TWM, is committed to building a world-class 

organization through accountability, with a clear and understood strategic direction. The 

focus of the past year has been on measurable ways to monitor progress toward key goals 

related to building a world class organization both in Departmental Offices and Treasurywide. 

TWM has placed heavy emphasis on creating an environment that is fair and equitable, 

and monitors Treasury-wide progress through a number of performance metrics. In FY 

2006, the average number of EEO complaint closures completed within 180 days was 20 

percent. This is well below the target goal of 50%. A management review was 

conducted to identify problem areas at the Treasury Complaint Center (which processes 

all complaints for all bureaus), and a need for different leadership in this area was 

identified. A new Director for the Complaint Center position began in November of 

2006, and will assist the Department in meeting its goal in FY 2007 and FY 2008. 

 

The Department of Treasury measures bureau performance plans for supervisors, 

management and SES members that contain elements linking to the bureau mission. This 

measure ensures that the policies and priorities set for DO by TWM and the 

DO - 26 
Administration are evident in the actions and tasks executed by management throughout 

the organization. For FY 2006, Treasury reached 100 percent of this goal. 

In FY 2004, the Department of Labor recognized Treasury for reducing the total injury 

and lost time injury rates by more than 10 percent each, well below the recommended 

three percent for all federal agencies. In 2006, Treasury continued its aggressive 

occupational safety and health program and had a 1.8 percent reduction. 

The Department works to attract and retain the best talent while rewarding employees for 

their individual performance. Building a stronger management infrastructure through 

Department-wide management training and by linking organization accomplishments to 

individual performance is a key step. The Department’s leadership strives to create an 

environment that offers purposeful, challenging work in a constructive performance 

culture. TWM has laid a foundation that is focused on results-oriented performance, 

leadership succession planning and accountability to not only maintain the present skills 

base and diversity in the Department’s workforce, but to also meet future human resource 

needs. The Department-wide succession plan ensures that future management acquires 

appropriate skills to enable them to lead the Department in an ever-changing 

environment. 

3F – Administration Programs ($78,972,030 from direct appropriations and 

$2,783,000 from reimbursable programs): Administration Programs provides operational 

support and shared services to all offices within DO. Activities include accounting, 

budget, human resources, information technology, procurement, facilities support, and 

travel services. Approximately one-third of the budget activity relates to information 

technology support (desktop computers, printers, faxes, copiers, helpdesk support, etc.). 

Another one-third consists of shared services: GSA rent, utilities, telecommunications, 

printing and graphics, public transit subsidy, workers compensation, and financial system

support. By centralizing shared services, economies of scale and workload efficiencies 

are achieved. The final third consists of employee salaries, routine building maintenance, 

custodial services, library services, etc. No specific performance goals/measures are 

presented for this budget activity, as the work of the offices within this budget activity is 

captured within the other budget activities. 

DO - 27 
3.2.6 – Administration Programs Budget and Performance Plan 

Dollars in Thousands 

Administration Programs Budget 

Activity

Includes Strategic Objectives E1A, E1C, E2A, E2B, F3A, F3B, F3C, 

F4A, F4B, F4D, M5A, and M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $61,340 $56,506 $63,094 $73,316 $78,972

 Other Resources 1,948 2,209 2,783 2,783 2,783

Total Operating Level $63,288 $58,715 $65,877 $76,099 $81,755

Human Resources

 Appropriated FTE 163 152 160 160 160

 Other FTE 16 15 18 15 15

Total FTE (direct and reimbursable) 179 167 178 175 175

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treas.gov/offices/management/dcfo/accountability-reports/2006-

par/Part_IV_Appendices.pdf

DO - 28 
Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Direct FTE FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 858 1,004 1,058

Increases:

Reason #1:

Initiatives to promote national

security 146 54 68

Reason #2:

Initiatives to promote global

economic growth and financial

security 10

Subtotal, Increases 146 54 78

Decreases:

Subtotal, Decreases 0 0 0

Year-end Actual/Estimated FTEs 1,004 1,058 1,136

Net Change from prior year SOY to budget year EOY 132

4A – Human Capital Strategy Description 

By providing sound advice and guidance regarding hiring, retention, rewarding, 

employee/labor relations, performance evaluation, training and employee development, 

the DO’s Office of Human Resources (OHR) helps to ensure that management has the 

HR tools it needs to manage its human capital effectively and in support of the 

organization’s overall and human capital strategic goals. 

Specific accomplishments for fiscal year 2006 include the following: 

HC Strategic Goal 1: Organizational Effectiveness – Align human capital plans, 

strategies, and systems to achieve organizational effectiveness and mission 

accomplishment.

• In 2005, DO undertook a major initiative to move transactional HR processing 

to the Bureau of the Public Debt (BPD), consolidate recruitment and staffing 

functions at BPD, and revamp on-site HR services to focus on areas aligned 

with Treasury’s Human Capital Strategic Plan. To ensure the quality and 

DO - 29 
delivery of HR services, the on-site Office of Human Resources (OHR) 

focused on evaluating the effectiveness of services provided. Prior to entering 

into a continued agreement with BPD for fiscal year 2006, OHR worked with 

BPD to memorialize and implement service level standards (SLS) for key HR 

functions. These SLS are now a part of the continuing memorandum of 

understanding between the two entities. At the end of each quarter, OHR 

conducts a review of how well BPD met those SLS during the preceding 

quarter. During the third quarter of this fiscal year, managers/supervisors 

were surveyed to find out how well they perceived BPD was doing in 

supporting their HR management needs. In looking at the accuracy of 

services provided, the OHR conducted an audit of a sample of staffing/hiring 

actions done by BPD to determine compliance with Federal hiring rules and 

regulations. 

 

• DO’s OHR staff conducted an exhaustive review of the organization’s current 

performance management system. A “get-well plan” was derived from this 

review that focuses on communication and education and includes briefings 

for senior leaders and training for managers/supervisors, senior advisors and 

administrative support staff involved in performance management. The 

objectives of the briefings/training are: alignment of performance 

expectations with organizational goals; accountability for results; credible 

measures; and meaningful distinctions in performance. Moving forward, HR 

staff will continually evaluate the effectiveness of DO’s performance 

management system. 

• The OHR also added another tier to its leadership/executive training program. 

The New Supervisory Readiness Training Program was implemented this 

fiscal year and is targeted to DO supervisors with three years or less of 

Federal supervisory experience. The goal of the program is to equip new 

supervisors for the myriad of personnel, ethical, and budgetary challenges 

they will face, thus providing them essential management tools early in their 

supervisory careers. Components of this 40-hour training include Merit 

Principles and Prohibited Personnel Practices, Talent and Position 

Management, EEO, Ethics, Performance Management, Adverse Actions, the 

Budget and Acquisition Process, Emergency Preparedness, Personnel 

Security, Records Management and Workplace Safety. 

• In 2006, DO continued its efforts to build leadership bench strength through 

the Leadership Training Program (LTP – targeted to high-performing GS-15s 

and newly appointed senior executives). The LTP is 12-18 months in duration 

and encompasses residential stays, formal classroom training, 

presentations/briefings, rotational/stretch assignments, coaching/mentoring, 

and book discussions. The organization also competitively selected five 

employees to participate in the Internal Revenue Service’s Executive 

Readiness Program. 

DO - 30 
HC Strategic Goal 2: Recruitment and Diversity – Recruit and hire a highly skilled 

and diverse workforce aligned with business goals. 

• In support of the Office of Intelligence and Analysis (OIA), OHR worked 

with OIA leadership, in partnership with the DNI Chief Human Capital 

Officer, to pursue and obtain Office of Personnel Management approval for 

direct-hire authority for certain intelligence and intelligence-related positions. 

A unique and relatively new organization directly involved with the war on 

terror, the OIA had encountered significant challenges in quickly filling 

analyst positions with the best-qualified individuals. Use of the direct-hire 

authority provides the organization a competitive edge in that it substantially 

streamlines the Federal hiring process. 

• As always, DO advocates the use of a variety of excepted appointments to 

ensure that new talent is hired as quickly as possible, e.g., Presidential 

Management Fellows; Student Career Experience Program; Departmental 

Office-specific fellowship programs; and other authorities. DO actively 

supports initiatives aimed at increasing the diversity of its workforce, 

including providing internships to students under the Hispanic National 

Internship Program and the Washington Internships for Native American 

students (WINS). 

• DO also continues to advocate the use of a variety of pay and workplace 

scheduling flexibilities, where appropriate, e.g., recruitment bonuses, superior 

qualifications appointments and alternative work schedules. 

HC Strategic Goal 3: Employee Retention and Satisfaction – Retain a high 

performing workforce while maintaining an environment conducive to a high level of 

employee satisfaction. 

• With an increased emphasis on retirement and other benefits on the part of 

DO employees, the OHR staff began conducting “Benefits Brown Bag” 

sessions during the third quarter. These one-hour sessions are scheduled each 

month to discuss benefits topics of interest to employees. The goal of each 

session is to provide basic facts about benefits programs that help employees 

make better choices/decisions regarding their benefits. Sessions fill quickly 

and the response has been overwhelmingly positive. 

• Based on the number of DO employees eligible to retire within the next five 

years, OHR contracted with an outside vendor to provide three retirement 

seminars during this fiscal year – two for CSRS employees and one for FERS. 

DO - 31 
HC Strategic Goal 4: Information Technology – Enhance workforce capabilities to 

support the use of current, new and evolving technologies. 

• There are a number of automated tools available to DO managers, supervisors 

and employees that provide a wealth of personnel/payroll data. To market the 

effectiveness of these tools, OHR has added a component on HR-related 

technology to the New Employee Orientation Program. Making employees 

aware of these valuable tools early in their DO careers will empower them to 

keep abreast of the HR matters that impact them or their organizations (in the 

case of managers/supervisors) directly, and is expected to decrease the 

number of personnel/payroll inquiries received by the on-site staff and BPD. 

• Recognizing the importance human resources data can play in managing an 

organization, the aforementioned New Supervisory Readiness Training 

Program includes a detailed segment on the Manager Self Service component 

of HR Connect, the agency’s enterprise human resources management system. 

As in the previous fiscal year, DO faces a number of human capital challenges in FY 

2007: 

• Increasing competition from private sector and other government agencies for 

mission-critical positions such as intelligence analysts, economists and 

information technology specialists. 

Strategies for Addressing Challenge: 

— Increased education about and support of a variety of 

hiring/retention flexibilities and incentives, such as direct 

hire (where request to OPM is appropriate), superior 

qualifications appointments, recruitment bonuses, student 

loan repayment, retention allowances and alternative work 

arrangements/schedules. 

• Loss of institutional knowledge through retirement waves, particularly for 

the managers and senior executives. 

Strategies for Addressing Challenge: 

— Increased emphasis on determining leadership bench 

strength and supporting leadership/executive development 

programs that help to identify and prepare cadres of future 

leaders, and gaining approval to hire at a level needed to 

continue to meet mission objectives. 

— Work with DO policy offices to identify succession issues 

and develop appropriate strategies, emphasizing an overall 

need to conduct workforce planning to transition and 

maintain technical knowledge. 

DO - 32 
• Instilling and developing a performance management culture that is 

results-oriented. 

Strategy for Addressing Challenge: 

— Increased education around aligning commitments to 

organizational goals and developing measurable, resultsbased standards/commitments. 

DO - 33 
4.2 – Summary of IT Resources Table 

Dollars in Millions

Information Technology Investments(in $ Millions) FY 2006 FY 2007 Major IT Investments

Budget

Activity/Funding

Source

Operating 

Plan Obligations

Operating 

Plan Enacted 

Financial Analysis & Reporting System(FARS) Applications -Major

Treasury-wide

Management $0.000 0.000 0.000 N/A 3.099 N/A 

DC Pension System to AdministerRetirement (STAR)

DC Federal Pension/JudicialRetirement Funds 12.800 12.800 4.998 -61.0% 9.732 94.7% 

Treasury Foreign Intelligence Network(TFIN) Terrorism and Financial Intelligence 2.325 2.325 13.306 N/A 21.200 59.3% 

Subtotal, Major IT Investments $15.1 $15.1 18.304 21.0% 34.031 85.9% Non-Major IT Investments $2.0 $2.0 4.937 145.7% 8.057 63.2% Infrastructure Investments $134.2 $134.2 167.328 24.7% 168.030 0.4% Enterprise Architecture $1.2 $1.2 1.397 14.8% 2.160 54.6% 

Total IT Investments $152.5 $152.5 191.966 25.8% 212.278 10.6% 

FY 2005 % Change

from FY05

Actuals to

FY06

% Change

from FY06 to

FY07

DO - 34 
4B – Information Technology Strategy 

The Office of the Chief Information Officer (OCIO) Telecommunications Management 

organization supports the IT infrastructure and operations of critical offices including the 

Office of the Secretary, the Assistant Secretary for Management, DO policy offices, and 

the newly formed Office of Terrorism and Financial Intelligence. This includes the 

management of technical staff, program and project managers, and budgetary and 

administrative staff, as well as overseeing the development, implementation, and 

operation of DO IT systems. In order to effectively support and plan for current and 

future DO customer requirements, OCIO is focused on the following areas: 

Modernize the DO IT Infrastructure: Modernization of the DO IT infrastructure 

will provide enhanced functionality, performance, and security, which will allow 

offices to achieve their missions more effectively. Specific projects will include 

enhanced disaster recovery capabilities, consolidation of remote access solutions, and 

software and hardware upgrades, and overall optimization of the DO IT network, 

which will be developed in accordance with the Infrastructure Line of Business. 

Improve IT Governance and Project Management: OCIO is committed to 

ensuring that information and IT resources are managed efficiently and effectively. 

In support of DO IT governance and project management, the OCIO 

Telecommunications Management team has reestablished a Customer Service Board 

(CSB) to address DO customer issues with service delivery, determine requirements 

and detailed planning for new projects, and provide overall senior management 

engagement and oversight. 

DO - 35 
4.3 – PART Evaluation Table 

PART Name: African Development Fund

Year PARTed: FY 2005

Rating: Effective

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. The African Development Fund is starting to improve its performance measurement and use of

performance-based funding allocations. In the latest donor negotiation, the Fund and donors agreed to 

implement better results measurement for key development goals, such as education, and reconfirmed the

allocation of funding towards better-performing countries, but more remains to be done. 

1. Working with Congress to secure $136 million annually for the period 2006 to 2008 to fund the US 

commitment to the latest African Development Fund replenishment. 

2. Monitoring the Fund's effectiveness in achieving its development objectives, including its progress in 

measuring and meeting development objectives across-the-board.

3. Working with Fund and other donors to improve the ability of developing countries to handle their debt, 

including providing grants to the most debt-vulnerable countries using the Fund.

2. In the negotiations, the Fund and donors agreed to reforms to improve the ability of the poorest countries 

to handle their debts. In particular, they agreed that grants to assist the poorest countries will be expanded

based on countries' debt vulnerability. Grants are expected to rise to more than one-third of the Fund's

assistance. 

3. Accountability and transparency require additional improvements. The Bank Group has established a new

anti-corruption and fraud unit and improved internal financial controls. The Bank Group is also expanding 

public access to its documents but more remains to be done.

PART Name: Tropical Forest Conservation Act

Year PARTed: FY 2004

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. The program has been unable to measure its impact on increasing tropical forest conservation. It does 

not have performance measures that would enable a meaningful evaluation of program effectiveness.

2. The Administration has developed a tool to help manage and measure the success of existing and

pending agreements. This evaluation sheet will measure the success of country boards and oversight 

committees in developing a strategic plan that specifies key objectives, conservation and funding priorities, 

target dates in meeting those objectives, and key efficiency measures. 

3. The Administration is now collecting evaluation sheet data, and actual performance data will be reported 

in 2006. A re-evaluation may be performed as early as 2007. 

1. Using information presented in evaluation sheets for existing programs to develop recommendations for 

improved program management, and to justify future funding requests. .

2. Working with the boards, oversight committees, and program partners to include the evaluation sheet tool 

or other appropriate evaluations in all new agreements. 

DO - 36 
PART Name: Asian Development Fund

Year PARTed: FY 2005

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. The Fund recently agreed to improve its performance measurement and performance-based allocations. 

In the latest donor negotiations, the AsDF-9 replenishment, the Fund and donors adopted several important 

reforms to improve performance and to implement results measurement, including launching the Managing

for Results action plan. These reforms remain to be implemented and expanded in the future. 

2. AsDF-9 agreed to reforms to improve the ability of the poorest countries to handle their debts. In

particular, it established a new program to give 30 percent of funding in the form of grants to these countries. 

These reforms remain to be implemented.

3. Transparency and accountability in the Bank Group are improving. AsDF-9 requires more transparency 

through improved information disclosure and communication policies. The Bank Group's anti-corruption and

auditing procedures require improvements. 

1. Working with Congress to secure $115 million annually for the period 2006 to 2009 to fund the U.S. 

commitment to the latest Asian Development Fund replenishment (AsDF-9).

2. Monitoring the Fund's improvements and implementation of measures to show its effectiveness in 

achieving development goals, including its progress in meeting development objectives across-the-board. 

3. Working with the Fund and other donors to improve the ability of developing countries to handle their 

debt, including increasing the amount of grants for the most debt-vulnerable Asian countries. 

PART Name: Bank Enterprise Award

Year PARTed: FY 2002

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. This program is unable to measure results because it can not determine how awardees would behave in

the absence of the program. 

1. Working with Congress to consolidate this program into a more efficient and effective federal program 

within the Department of Commerce and the Department of Housing and Urban Development.

DO - 37 
PART Name: Economic and Trade Sanctions Program - OFAC

Year PARTed: FY 2008

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

Long Term 

 The percentage of civil penalty cases that are resolved within the Statute of Limitations Period. 

Target: (Baseline)

Short Term

The percentage of license and interpretive submissions turned around in 60 days.

Target: (Baseline)

The number of outreach engagements with government and the private sector promoting

compliance with OFAC regulations. 

Target: 60/year

1. Developed long-term and short-term performance goals with specific timeframes and measures,

including:

1. OFAC needs to develop long-term performance goals with specific timeframes and measures.

2. OFAC needs to develop annual performance goals and align them with the long-term performance goals.

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

DO - 38 
4C - FY 2007 Supplemental Request 

FY 2007 Supplemental Request

Appropriation Language

For an additional amount for Salaries and Expenses, $2,538,000. 

Supplemental Request Description

The FY 2008 President’s Budget includes a FY 2007 supplemental Budget request of 

$2,538,000, to be used for funding the Iraq Threat Finance Cell and Treasury's Deputy 

Attaché in Baghdad. Treasury and the Department of Defense (DOD) are co-chairing the 

Iraq Threat Finance Cell in support of the Global War on Terrorism. The unit will work 

to enhance the collection, analysis and dissemination of financial intelligence to combat 

financiers, facilitators, and financial networks supporting the Iraqi insurgency. This 

funding is critical in supporting and strengthening U.S., Iraqi and Coalition efforts to 

disrupt and eliminate financial and other material support to the insurgency. 

The Deputy Attaché for Baghdad will perform a variety of activities, including: engaging 

regularly with senior officials in the Iraqi Ministry of Finance and Central Bank; advising 

and assisting the U.S. Ambassador on economic and financial matters; briefing U.S. 

Government agencies on the developments on the ground; tracking down data and 

economic updates requested by the U.S. Government; and coordinating and monitoring 

Treasury Technical Assistance policy in fiscal and financial areas. Treasury has only one 

Attaché in Iraq, and funding for the Deputy Attaché is essential to providing critical 

support to the Administration's fiscal, monetary, and financial sector reform efforts. 

DO - 39