Bureau of the Fiscal Service

FY 2016

President’s Budget

February 2, 2015
FS - 2

Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

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

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 9

2.1 – Budget Adjustments Table................................................................................................. 9

2A – Budget Increases and Decreases Description .................................................................... 9

2.2 – Operating Levels Table.................................................................................................... 11

2B – Appropriations Language and Explanation of Changes................................................... 12

2C – Permanent, Indefinite Appropriations.............................................................................. 12

2.3 – Permanent, Indefinite Appropriations Table ................................................................... 13

2D – Legislative Proposals....................................................................................................... 14

Section 3 – Budget and Performance Plan ............................................................................... 16

3A – Collections ....................................................................................................................... 16

3.1.1 – Collections Budget and Performance Plan ................................................................... 17

3B – Debt Collection ................................................................................................................ 17

3.1.2 – Debt Collection Budget and Performance Plan ............................................................ 18

3C – Do Not Pay Business Center............................................................................................ 18

3.1.3 – Do Not Pay Business Center Budget and Performance Plan........................................ 20

3D – Government Agency Investment Services....................................................................... 20

3.1.4 – Government Agency Investment Services Budget and Performance Plan................... 22

3E – Government-wide Accounting and Reporting ................................................................. 22

3.1.5 – Government-wide Accounting and Reporting Budget and Performance Plan ............. 23

3F – Payments........................................................................................................................... 24

3.1.6 – Payments Budget and Performance Plan ...................................................................... 26

3G – Retail Securities Services................................................................................................. 26

3.1.7 – Retail Securities Services Budget and Performance Plan............................................. 28

3H – Summary Debt Accounting.............................................................................................. 28

3.1.8 – Summary Debt Accounting Budget and Performance Plan.......................................... 29

3I – Wholesale Securities Services........................................................................................... 29

3.1.9 – Wholesale Securities Services Budget and Performance Plan ..................................... 31

Section 4 – Supplemental Information...................................................................................... 32

4A – Summary of Capital Investments..................................................................................... 32
FS - 3

Section 1 – Purpose 

1A – Mission Statement

Promote the financial integrity and operational efficiency of the federal government through 

exceptional accounting, financing, collections, payments, and shared services. 

1.1 – Appropriations Detail Table

Dollars in Thousands

Fiscal Service FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

Appropriated Resources Enacted Enacted Request $ Change % Change

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Collections 108 21,531 108 24,293 106 26,609 (2) 2,316 -1.85% 9.53%

Do Not Pay Business Center 7 5,000 7 5,064 7 5,116 0 52 0.00% 1.03%

Government Agency Investment Services 65 13,704 65 13,055 64 13,074 (1) 19 -1.54% 0.15%

Government-wide Accounting and 

Reporting 308 65,486 308 65,486 281 68,553 (27) 3,067 -8.77% 4.68%

Payments 525 126,636 490 121,715 482 133,179 (8) 11,464 -1.63% 9.42%

Retail Securities Services 528 100,789 528 95,237 519 94,145 (9) (1,092) -1.70% -1.15%

Summary Debt Accounting 37 4,737 37 4,325 36 4,243 (1) (82) -2.70% -1.90%

Wholesale Securities Services 98 22,282 93 19,009 91 18,931 (2) (78) -2.15% -0.41%

Subtotal New Appropriated Resources 1,676 $360,165 1,636 $348,184 1,586 $363,850 (50) $15,666 -3.06% 4.50%

Other Resources:

Reimbursables 714 239,342 714 216,863 701 227,901 (13) 11,038 -1.82% 5.09%

Subtotal Other Resources 714 $239,342 714 $216,863 701 $227,901 (13) $11,038 -1.82% 5.09%

Total Budgetary Resources 2,390 $599,507 2,350 $565,047 2,287 $591,751 (63) $26,704 -2.68% 4.73%

*A portion of the Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act of 1996.

1B – Vision, Priorities and Context

The Bureau of the Fiscal Service (Fiscal Service) is guided by its vision to transform the way the 

government manages its finances and delivers shared services. Our efforts are focused on 

maximizing efficiencies, transparency, and accountability with the goal of improving 

government-wide financial management and the delivery of shared services. These themes are 

reinforced through our Strategic Goals which promote leadership and innovation, an engaged 

and highly effective workforce, delivery of exceptional programs and services, data transparency 

and usefulness, and expansion of shared services.

The Fiscal Service plays a key role in supporting three of the Department of the Treasury's 

strategic goals: Promote domestic economic growth and stability while continuing reforms of 

the financial system; Fairly and effectively reform and modernize federal financial 

management, accounting, and tax systems; and Create a 21st Century approach to government 

by improving efficiency, effectiveness and customer interaction. The Fiscal Service is 

committed to delivering strong leadership, exceptional operational services, and a clear vision 

focused on positive transformational change of Government-wide financial management and 

shared services. Operationally, the Fiscal Service provides central payment services to Federal 

program agencies (FPAs); operates the Federal Government's collections and deposit systems; 

provides Government-wide accounting and reporting services; borrows the money needed to 
FS - 4

operate the federal government; handles all Treasury debt financing operations; issues, services, 

and accounts for all Treasury marketable securities and non-marketable securities; provides 

reimbursable support services to federal agencies; and manages the collection of delinquent debt. 

FY 2014 Accomplishments

The Fiscal Service has a clear vision focused on positive transformational change of 

government-wide financial management and shared services. In FY 2014, Fiscal Service 

completed the following priorities:

Data Transparency 

• Assumed program responsibility over USAspending.gov and began work to make 

improvements to enhance the user experience and search functionality of the website.

• Established governance and implementation structure for the Digital Accountability and 

Transparency Act of 2013 (DATA Act).

Government-wide Shared Services

• In collaboration with the Office of Management and Budget (OMB), Treasury designated 

four federal financial management shared service providers to provide common services to 

large Chief Financial Officer agencies.

Collections

• Collected 98 percent of the $3.73 trillion total federal revenue electronically.

• Implemented a second payment service provider (digital wallet) to expand the E-Commerce 

solution.

Debt Collections

• Collected more than $6.91 billion of delinquent debt including a record $415 million from 

Cross-Servicing where each collection tool had double digit growth. Administrative Wage 

Garnishment collections for FY 2014 totaled $56 million, a 39 percent increase from the 

previous fiscal year.

• Implemented Centralized Receivables Service (CRS) fully into Fiscal Service operations, 

invoicing over $20.8 million in receivables and collecting over $13.8 million.

Do Not Pay Business Center

• Integrated Do Not Pay (DNP) into the Treasury payment processing stream to stop payments 

based on agency business rules.

Government Agency Investment Services

• Continued operational excellence as evidenced by the collection and disbursement of interest 

and principle amounts.

• Received an unmodified opinion on the Statement on Standards for Attestation Engagements 

16 reviews for both agency and debt accounting.

Government-wide Accounting and Reporting

• Implemented and migrated all agencies onto the Government-wide Treasury Account 

Symbol Adjusted Trial Balance System.
FS - 5

• Successfully closed 13 Government Accountability Office (GAO) audit recommendations as 

part of producing the 2013 Financial Report of the U.S. Government.

Payments

• Disbursed over 1.1 billion federal payments with a total dollar value of nearly $2.5 trillion of 

which 94.4 percent were disbursed electronically.

• Exceeded the FY 2014 target to process over 300,000 invoices in electronic form. 

Additionally, federal agencies are lining up to use Invoice Processing Platform (IPP) service, 

with five agencies signing participation agreements this year and OMB proposing a mandate 

requiring most civilian agencies to adopt IPP by 2018.

• Led over 200 government organizations to convert their financial systems to the new 

Payment Automation Manager (PAM) payment format. 

Retail Security Services

• Prepared for the implementation of the myRA program, including designating a financial 

agent to offer custody and customer service, after it was announced by the President during 

his State of the Union address in January 2014. Published regulation changes ending the 

reissue of paper savings bonds.

• Issued and serviced $26.9 billion in savings and marketable securities held by 570,497 

investors in the online TreasuryDirect system. 

Summary Debt Accounting

• Maintained operational excellence as evidenced by the accurate accounting and reporting for 

the nearly $18 trillion public debt.

• Received an unmodified audit opinion on the GAO audit of the Schedules of Federal Debt.

Wholesale Security Services

• Introduced the Floating Rate Note security in January 2014 – the first new Treasury

marketable security in 17 years.

• Conducted 271 auctions and awarded $7.24 trillion in Treasury marketable securities. 

FY 2015 Priorities

In FY 2015, Fiscal Service is focusing on the following priorities:

Data Transparency

• Data Transparency – Begin implementation of the DATA Act through the development of 

Data Standards, establishment of Data Repositories, support of Open Data Policy, and the 

development of an Intelligent Data Prototype. 

• Data Transparency – Develop a comprehensive USAspending.gov improvement plan

including stakeholder engagement strategy, governance framework, and incremental 

improvements.

Government-wide Shared Services

• Create a Government-wide strategy, roadmap, and oversight organization to facilitate the 

matching of agencies to Federal Shared Service Providers; continue to benchmark federal 

financial management processes and build a Products and Services Catalog consistent with 
FS - 6

the shared services model; and facilitate the acceptance of electronic invoicing across 

government.

Operational Excellence

• Organizational Culture – Foster employee engagement, inclusion, and cross-organizational 

cooperation at all levels of the bureau.

• Organizational Culture – Underscore the value of effective human capital management 

through a corporate commitment to strategic and workforce planning, organizational 

development, workforce diversity, and employee growth and skill set development.

• Efficiency – Support government-wide efforts to reduce the federal real estate footprint 

through the effective management, planning, and execution of new/extended leases for 

bureau locations. 

Collections

• Support Treasury’s initiative of having non-tax collections and remittances submitted 

electronically to reduce costs, improve accuracy, increase options available to citizens, and 

implement state-of-the-art E-Commerce solutions for processing revenue collections 

transactions. 

Debt Collections

• Increase the number of participating agency programs leveraging CRS.

• Continue to increase the collection of delinquent debt by expanding state programs and 

payment streams in the Treasury Offset Program.

Do Not Pay

• Expand agency participation in DNP as well as expand analytics to assist agencies in 

monitoring and determining the amount of improper payments prevented.

Government-wide Accounting and Reporting

• Improve the central accounting and reporting function by aggressively pursuing resolutions 

to material weaknesses in the Financial Report and completing the multi-year system 

modernization effort.

Payments

• Continue the modernization of the federal payment process by implementing the Standard 

Payment Request format among all agencies and reaching the first-year milestones of the 

Post Payment System development project.

• Continue to advance electronic payments by increasing rates of electronic tax refunds and 

vendor payments, and vigorously promote Treasury disbursing services to federal agencies 

that make their own payments.

• Increase electronic collections, forms, and bills on Pay.gov as well as to further enhance 

Pay.gov to support on-line banking, digital wallets, e-Billing, the E-Commerce efforts, and a 

fraud monitoring and prevention solution.
FS - 7

Retail Securities Services

• Successfully implement the myRA program, a new retirement account option for individuals.

• Begin implementation of the retail vision and roadmap; implement secure portal functionality 

to include customer self-service and web chat; as well as develop plans for a modernized 

retail sales and service system.

Wholesale Securities Services

• Continue migrating Treasury Automated Auction Processing Systems (TAAPS) into a 

modern, stable technical infrastructure.

FY 2016 Priorities

In FY 2016, Fiscal Service will focus on the following priorities:

Data Transparency 

• Continue implementation of the DATA Act to include necessary government-wide financial 

system enhancements, inclusion of place-based reporting capabilities (referred to as 

geocoding), and providing assistance to other agencies as needed.

Government-wide Shared Services

• Government-wide Shared Services – Improve government-wide fiscal operations by 

facilitating agencies’ migration to a shared service model for financial systems.

Collections

• Promote expanded acceptance of the US Debit Card/Card Management Services model and 

continue to advance the E-Commerce in support of Treasury’s initiative to have non-tax

collections and remittances submitted electronically to reduce costs, improve accuracy, and 

increase options available to citizens.

Do Not Pay Business Center

• Improve federal fiscal management by expanding agency use of DNP to reduce improper 

payments and expand its use to federally funded state programs.

Government-wide Accounting and Reporting

• Continue towards obtaining a clean audit of the Financial Report by FY 2018 by verifying 

and eliminating intergovernmental differences.

• Strengthen effective government-wide accounting by providing Central Accounting and 

Reporting System (CARS) operational and technical support during the transition of federal 

program agencies to CARS.

Payments

• Continue to vigorously promote Treasury disbursing services to federal agencies that make 

their own payments.

• Enhance federal reporting and query capabilities by enabling agencies to submit claims 

electronically through improvements in the Post Payment System (PPS). Pursue 

enhancements to the Stored Value Card (SVC) program, including consolidating processing 

platforms and researching the feasibility of expanding SVC to include Basic Training and 

Service Academies.
FS - 8

• Further expand agency use of Invoice Processing Platform (IPP) while adding functionality 

that enables wire and benefit payments.

Retail Securities Services

• Enhance investment opportunities for American citizens through focused efforts on educating 

the public and increasing participation in the myRA Program.

• Introduce enhancements to federal securities management and educate current and potential 

customers about the new Treasury Retail Investment Management system; eliminate final 

channels for issuing paper savings bonds.

Wholesale Securities Services

• Introduce state-of-the-art enhancements to modernize the technical infrastructure on which 

the TAAPS resides.

Debt Collections

• Expand the use of state-of-the-art mechanisms and strategies for maximizing the collection of 

delinquent debt.
FS - 9

Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Fiscal Service FTE Amount

FY 2015 Enacted 1,636 $348,184

Changes to Base:

Maintaining Current Levels (MCLs): - $5,888

Pay-Raise - $2,382

Pay Annualization - $609

FERS Contribution Increase - $911

Non-Pay - $1,986

Efficiency Savings: (50) ($8,480)

Rent and Space Savings - ($1,900)

Consolidation Savings (50) ($6,580)

Subtotal Changes to Base (50) ($2,592)

Total FY 2016 Base 1,586 $345,592

Program Changes:

Program Decreases: - ($1,530)

Retail Securities Services Savings - ($1,308)

Summary Debt Accounting Savings - ($119)

Wholesale Securities Services Savings - ($103)

Program Increases: - $19,788

DATA Act Implementation - $19,788

Total FY 2016 Request 1,586 $363,850

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$5,888,000 / +0 FTE

Pay-Raise +$2,382,000 / +0 FTE 

Funds are requested for the proposed January 2016 pay-raise.

Pay Annualization +$609,000 / +0 FTE 

Funds are requested for annualization of the January 2015 pay-raise.

FERS Contribution Increase +$911,000 / +0 FTE 

Funds are requested for increases in agency contributions to the Federal Employee Retirement 

System based on updated actuarial estimates.

Non-Pay +$1,986,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor costs such as travel, contracts, rent, 

supplies, and equipment.

Efficiency Savings .....................................................................................-$8,480,000 / -50 FTE

Rent and Space Savings -$1,900,000 / +0 FTE 

Savings are a result of releasing two floors in the Hyattsville, Maryland location in an effort to 

more efficiently utilize the space currently available and reduce the bureau footprint. 
FS - 10

Consolidation Savings -$6,580,000 / -50 FTE 

As the Fiscal Service continues the integration efforts related to the consolidation, savings are 

realized from staff rationalization through the elimination of duplicate positions and restructuring 

of the workforce, with personnel separating by attrition.

Program Decreases ....................................................................................-$1,530,000 / +0 FTE

Retail Securities Services Savings -$1,308,000 / +0 FTE 

Identified anticipated savings related to contracts being re-bid as well as decreased printing costs. 

Summary Debt Accounting Savings -$119,000 / +0 FTE 

Identified anticipated contract savings associated with a minor decrease in audit expenses. 

Wholesale Securities Services Savings -$103,000 / +0 FTE 

Savings associated with decreases in printing, travel, supplies, and small contracts. 

Program Increases ..................................................................................+$19,788,000 / +0 FTE

DATA Act Implementation +$19,788,000 / +0 FTE 

Funding is requested to support the implementation of Treasury’s responsibilities under the 

DATA Act. Specifically, Treasury, in collaboration with the Office of Management and Budget 

(OMB), will lead the government-wide implementation of the DATA Act and associated 

financial data standards. Treasury will operationalize a “data centric” approach to enable timely 

access to discoverable and reusable financial data. This approach includes establishing data 

exchange standards and standard taxonomies for Federal transparency reporting and the 

corresponding governance required to manage the standards. Treasury will also work with 

agencies to link financial and management (e.g., financial assistance and procurement) data to 

improve the completeness and accuracy of Federal spending information. 

 

Funds will also support activities associated with providing consistent, reliable, and searchable 

Government-wide spending data on USAspending.gov. This includes developing the technical 

platform/architecture to collect data across disparate systems in the Federal Government for 

publication. Funds will also support developing visualizations to improve the user experience as 

well as support ongoing outreach to key stakeholder groups to gather feedback. 

 

Funds will also support enhancing place-based reporting capabilities (referred to as geocoding). 

This includes conducting research on the best approach to collect location information associated 

to Federal awards and research on how to best improve the quality and accuracy of current placebased reporting.
FS - 11

2.2 – Operating Levels Table

Dollars in Thousands

Fiscal Service FY 2014 FY 2015 FY 2016

Object Classification Actual Enacted Request

11.1 - Full-time permanent 130,555 154,819 141,854

11.3 - Other than full-time permanent 929 2,034 2,034

11.5 - Other personnel compensation 2,707 6,947 6,148

11.8 - Special personal services payments 100 0 0

11.9 - Personnel Compensation (Total) 134,291 163,800 150,036

12.0 - Personnel benefits 40,904 43,402 40,429

13.0 - Benefits for former personnel 1,493 220 206

Total Personnel and Compensation Benefits $176,688 $207,422 $190,671

21.0 - Travel and transportation of persons 1,665 1,660 1,732

22.0 - Transportation of things 230 259 241

23.1 - Rental payments to GSA 25,385 26,728 25,214

23.2 - Rental payments to others 957 979 519

23.3 - Communication, utilities, and misc charges 7,468 11,598 9,580

24.0 - Printing and reproduction 239 702 399

25.1 - Advisory and assistance services 9,522 6,127 19,302

25.2 - Other services 21,198 10,282 17,517

25.3 - Other purchases of goods & serv frm Govt accounts 96,859 71,646 88,936

25.4 - Operation and maintenance of facilities 3,277 991 1,041

25.6 - Medical care 0 2 2

25.7 - Operation and maintenance of equip 2,978 1,900 2,100

26.0 - Supplies and materials 2,004 3,226 2,763

31.0 - Equipment 1,034 2,777 2,769

32.0 - Land and structures 6,357 1,835 1,014

42.0 - Insurance claims and indemnities 7 50 50

43.0 - Interest and dividends 1 0 0

Total Non-Personnel 179,181 140,762 173,179

Subtotal New Appropriated Resources $355,869 $348,184 $363,850

Budget Activities:

Collections 30,469 24,293 26,854

Do Not Pay Business Center 5,044 5,854 5,987

Government Agency Investment Services 20,230 15,219 15,459

Debt Collection 139,377 122,597 128,733

Government-wide Accounting and Reporting 70,071 66,365 70,062

Payments 188,231 191,964 205,095

Retail Securities Services 112,649 111,154 111,685

Summary Debt Accounting 19,059 5,073 5,067

Wholesale Securities Services 15,186 22,528 22,809

Total Budgetary Resources $600,316 $565,047 $591,751

FTE 2,048 2,350 2,287
FS - 12

2B – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

THE BUREAU OF THE FISCAL SERVICE

Federal Funds

SALARIES AND EXPENSES

For necessary expenses of operations of the Bureau of the Fiscal 

Service, [$348,184,000] $363,850,000; of which not to exceed 

$4,210,000, to remain available until September 30, [2017] 2018, is 

for information systems modernization initiatives; [and] of which 

$5,000 shall be available for official reception and representation 

expenses; and of which not to exceed $19,800,000, to remain

available until September 30, 2018, is to support the Department's 

activities related to implementation of the Digital Accountability 

and Transparency Act (DATA Act; Public Law 113–101), including 

changes in business processes, workforce, or information

technology to support high quality, transparent Federal spending 

information. In addition, $165,000, to be derived from the Oil Spill 

Liability Trust Fund to reimburse administrative and personnel 

expenses for financial management of the Fund, as authorized by 

section 1012 of Public Law 101–380.

(Department of the Treasury Appropriations Act, 2015.)

Multi-year funding is 

needed to minimize risk 

and enable compliance 

with the Digital 

Accountability and 

Transparency Act of 2014.

2C – Permanent, Indefinite Appropriations

Federal Reserve Bank Permanent, Indefinite Appropriation

The Federal Reserve Banks (FRBs) act as fiscal agents of the United States when directed by the 

Secretary of the Treasury in accordance with 12 U.S.C. 391. The FRBs support the fiscal 

operations and provide banking and financial services on behalf of the Treasury of the United 

States. Since the FRBs support many Fiscal Service program activities, the performance 

measures listed in the Salaries and Expense section of this budget apply to the work performed

by the FRBs. Fiscal Service estimates that the cost of FRB services for FY 2016 will be 

approximately $397.3 million.

Reimbursements to the Federal Reserve Banks

Public Law 101-509, 104 Stat. 1389, 1394 (1990), established a permanent, indefinite 

appropriation to pay such sums as necessary to reimburse the FRBs for acting as fiscal agents. A 

permanent, indefinite account was established in FY 1992 for activities supporting the 

administration of the public debt. Claims for reimbursements are closely monitored for 

compliance with the Instructions for Filing Reimbursement Claims for Fiscal Agent Services 

Provided to the Fiscal Service. Funding for FY 2016 is estimated at $123 million.

Financial Agent Services Permanent, Indefinite Appropriation

Congress has given the Secretary of the Treasury broad discretion to deposit money in financial 

institutions and obtain banking services by designating financial institutions to act/serve as 

Financial Agents (FA) of the United States. The services support many Fiscal Service programs, 
FS - 13

such as Electronic Federal Tax Payment System (EFTPS), the Lockbox Networks, E-Commerce 

systems, and the deposit reporting and cash concentration system called the Collections 

Information Repository. These and other programs are vital to the Fiscal Service’s strategic 

goals, the National Financial Critical Infrastructure, and the expanding E-Government. The 

services provided by the FAs are authorized under numerous statutes including, but not limited 

to, 12 U.S.C. 90 and 265.

In FY 2004, Treasury received a permanent, indefinite appropriation to pay for these services. 

Fiscal Service estimates that the cost of FA services for FY 2016 will be approximately 

$673 million, which includes $3 million for Government Sponsored Enterprise - Mortgage 

Backed Securities administrative costs.

Government Losses in Shipment

Public Law 103-329 established a permanent, indefinite appropriation to pay such sums as 

necessary to make payments for the replacement of valuables, or the value thereof, lost, 

destroyed, or damaged in the course of United States Government shipments. The Government 

Losses in Shipment Act was enacted July 8, 1937 to dispense with the necessity for insurance by 

the government against loss or damage to valuables in shipment and for other purposes. The Act 

was amended in 1943 to cover losses resulting from the redemption of savings bonds (for 

example, stolen bonds, which were fraudulently negotiated even though the paying agent 

followed identification guidelines established by the Treasury). All authority of the Treasury 

under the Act has been delegated to the Commissioner of the Fiscal Service. In FY 2016, the 

funding estimated to support payments for the replacement of valuables is nearly $1.1 million.

2.3 – Permanent, Indefinite Appropriations Table

(Dollars in Thousands)

Permanent, Indefinite Appropropriation 2014 Enacted 2015 Request 2016 Request

Federal Reserve Bank 1/ $ 395,000 $ 395,000 $ 397,300

Reimbursements to the Federal Reserve Banks $ 110,000 $ 127,000 $ 123,000

Financial Agent Services 1/ 2/ $ 645,000 $ 673,000 $ 673,000

Government Losses in Shipment $ 1,098 $ 1,098 $ 1,098

2/ FY 2014, FY 2015, and FY 2016 include costs for the Government Sponsored Enterprise - Mortgage Backed 

Securities administrative costs of $9M, $3M, and $3M respectively. 

1/ Approximately $75M is reimbursed from other government agencies and deposited into the General Fund 

each year.
FS - 14

2D – Legislative Proposals

The following legislative initiatives are proposed for inclusion in appropriate authorizing bills.

1. Increase delinquent state income tax debt collections. Allow offset of federal income tax 

refunds to collect delinquent state income taxes for out-of-state residents. Estimated 

collections: $1.2 billion in state taxes over 10 years (no federal revenue)

Under current law, the U.S. Department of the Treasury, Bureau of the Fiscal Service, may offset 

federal tax refunds to collect delinquent state income tax obligations but only if the delinquent 

taxpayer resides in the state collecting the tax. This proposal would allow the Fiscal Service to 

offset federal income tax refunds to collect delinquent state tax obligations regardless of where 

the debtor resides. For further details on this proposal, please see the Treasury Green Book. 

2. Reduce costs for states collecting delinquent income tax obligations. Estimated savings: 

$142.9 million over 10 years (no federal revenue)

Under current law, the U.S. Department of the Treasury, Bureau of the Fiscal Service, may offset 

federal tax refunds to collect delinquent state income tax obligations only after the state sends the 

delinquent debtor a notice by certified mail. The statutory notice requirements for federal tax 

refund offset for all other types of debts, including federal non-tax, child support, and state 

unemployment insurance compensation debts, are silent as to the notice delivery method. 

Federal tax refund offset regulations for all debts other than state income tax obligations require 

federal and state creditor agencies to send notices by regular first class mail. Similarly, notice 

requirements for other debt collection actions, including administrative wage garnishment, do 

not require delivery by certified mail. This proposal would allow the Fiscal Service to amend its 

regulations to permit states to send notices for state income tax obligations by first class mail, 

saving states certified mail costs and standardizing notice procedures across debt types.

3. Increase delinquent federal tax debt collections. Increase levy authority for payments 

to Medicare providers with delinquent tax debt. Estimated collections: $514 million over 

10 years 

The Administration proposes a change to the Department of the Treasury’s debt collection 

procedures that will increase the amount of delinquent taxes collected from Medicare 

providers. Under current law, Treasury is authorized to continuously levy up to 30 percent of a 

payment to a Medicare provider to collect delinquent tax debt. The proposal would allow 

Treasury to levy up to 100 percent of a payment to a Medicare provider to collect unpaid taxes, 

effective for payments made after the date of enactment. For further details on this proposal, 

please see the Treasury Green Book. 

4. Increase delinquent federal non-tax debt collections. Authorize administrative bank 

garnishment for non-tax debts. Estimated collections: $320 million over 10 years 

To reach income of commercial entities and other non-wage income and funds available to 

debtors owing delinquent non-tax obligations to the United States, this proposal would authorize 

agencies to issue garnishment orders to financial institutions without a court order. Agencies 

would be required to provide debtors with appropriate due process and other protections to 

ensure that debtors have had the opportunity to contest the debts and/or enter into repayment 

agreements to avoid issuance of an order. The Internal Revenue Service currently has similar 

authority to collect federal tax debts. 
FS - 15

By way of background, the Debt Collection Improvement Act of 1996 authorized federal 

agencies to collect delinquent non-tax debt by garnishing the wages of debtors without the need 

to first obtain a court order. Since July 2001, the U.S. Department of the Treasury’s Bureau of 

the Fiscal Service alone has collected $221.4 million in garnished wages (as of December 31, 

2014) on behalf of federal agencies. In addition, the ability of agencies to garnish wages 

motivates many debtors to resolve outstanding delinquencies before such action can be initiated. 

This successful collection mechanism, however, reaches only those debtors who earn wages. 

The proposed authority would be available only to garnish commercial accounts of debtors that owe 

delinquent non-tax debts, and would not be available to garnish consumer accounts. The legislation 

would direct the Secretary of the Treasury to issue government-wide regulations implementing this 

authority.

5. Increase and streamline recovery of unclaimed assets owed to the United States. 

Authorize Treasury to locate and recover assets of the United States and to retain a 

portion of amounts collected to pay for the costs of recovery. Estimated Recoveries: $25 

million over ten years

States and other entities hold assets in the name of the United States or in the name of 

departments, agencies, and other subdivisions of the Federal Government. Many agencies are 

not recovering these assets due to lack of expertise and funding. Under current authority, 

Treasury collects delinquent debts owed to the United States and retains a portion of collections, 

which is the sole source of funding for its debt collection operations. While unclaimed Federal

assets are generally not considered to be delinquent debts, Treasury’s debt collection operations 

personnel have the skills and training to recover these assets. This legislation would authorize 

Treasury to use its resources to recover assets of the United States.

6. Provide authority to contact delinquent debtors via their cell phones. Estimated 

collections: $120 million over 10 years 

The Budget proposes to clarify that the use of automatic dialing systems and prerecorded voice 

messages is allowed when contacting wireless phones in the collection of debt owed to or 

granted by the United States. In this time of fiscal constraint, the Administration believes that the 

Federal Government should ensure that all debt owed to the United States is collected as quickly 

and efficiently as possible and this provision could result in millions of defaulted debt being 

collected. While protections against abuse and harassment are appropriate, changing technology 

should not absolve these citizens from paying back the debt they owe their fellow citizens. The 

proposal would also allow the Federal Communications Commission to implement rules to 

protect consumers from being harassed and contacted unreasonably. 
FS - 16

Section 3 – Budget and Performance Plan

3A – Collections

($26,609,000 from direct appropriations and $245,000 from reimbursable resources): 

The Collections Program supports Treasury’s strategic objective “to improve the disbursement 

and collection of federal funds and reduce improper payments made by the U.S. government.”

The Fiscal Service manages the collection of federal revenues such as individual and corporate 

income tax deposits, customs duties, loan repayments, fines, and proceeds from leases. In

addition, the Fiscal Service establishes and implements collection policies, regulations, 

standards, and procedures for the federal government.

The Fiscal Service continues to promote the use of electronic systems in the collections process

and to assist agencies in converting collections from paper to electronic media with programs 

such as:

• Electronic Federal Tax Payment System (EFTPS): The Fiscal Service has been working to 

communicate the benefits of EFTPS – accuracy, security, simplicity, and flexibility – to 

financial institutions, small businesses, and tax practitioners. The goal is to continue to 

require businesses to pay their federal taxes electronically. EFTPS is a critical system that 

collects approximately 83 percent of all federal tax revenue.

• Pay.gov: Pay.gov is a system allowing individuals and businesses to make non-tax

payments to federal agencies over the internet. Recent developments have focused on a 

mobile-friendly user interface, incorporation of digital wallet providers PayPal and 

Dwolla, and enhanced functionality in the areas of electronic billing and electronic 

forms. Pay.gov currently serves 175 federal agencies representing 1,053 cash flows. In 

FY 2014, collections through Pay.gov totaled approximately $118 billion through the 

processing of 138.6 million transactions.

• Check Conversion and Truncation: The Fiscal Service is employing strategies to 

reduce the number of paper checks it receives and to ensure that those it does receive 

are converted or truncated for electronic processing. The Over the Counter Channel 

Application (OTCnet) and Electronic Check Processing (ECP) are programs that 

provide a complete electronic record of all check images and related financial data

accessible by agencies and eliminate the need to photocopy checks, safeguard checks, 

or process paper. In FY 2014, checks collected and converted or truncated through 

OTCnet and ECP totaled approximately $475 billion. 

Description of Performance:

The measure, Percentage Collected Electronically of Total Dollar Amount of Federal

Government Receipts refers to the dollar value of collections received (settled) electronically. In 

FY 2014, 98 percent of collections were settled electronically. The Fiscal Service expects to 

maintain an electronic collections rate of at least 98 percent in FY 2015 and FY 2016.
FS - 17

3.1.1 – Collections Budget and Performance Plan

Dollars in Thousands

Collections Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $21,521 $21,911 $22,624 $21,166 $20,851 $21,531 $24,293 $26,609

 Reimbursable Resources $0 $258 $1,419 $1,419 $176 $0 $0 $245

Budget Activity Total $21,521 $22,169 $24,043 $22,585 $21,027 $21,531 $24,293 $26,854

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Percentage Collected 

Electronically of Total Dollar 

Amount of Federal 

Government Receipts

84.0 85.0 96.0 97.0 97.0 98.0 98.0 98.0

Key: DISC - Discontinued and B - Baseline

3B – Debt Collection

($0 from direct appropriations, and $128,733,000 from reimbursable resources):

The Debt Collection Program supports Treasury’s strategic objective “to improve the 

disbursement and collection of federal funds and reduce improper payments made by the U.S. 

government.” Fiscal Service collects delinquent government, state, and child support debt by 

providing centralized debt collection, oversight, and operational services to federal program 

agencies and states pursuant to the Debt Collection Improvement Act of 1996 and related 

legislation. The Fiscal Service uses two debt collection programs: Treasury Offset Program 

(TOP) and Cross-Servicing.

In FY 2014, the Fiscal Service began efforts to acquire a new Cross-Servicing system, which 

will enable optimized, cost-effective collection and resolution approaches. Fiscal Service has 

also completed the implementation of the new offset system, TOP Next Generation on 

November 8, 2014. The TOP Next Generation system will provide the ability to handle 

increasingly larger volumes of debt and payment types; process new payment types; increase 

payment processing throughput to meet future needs; and meet essential stakeholder needs. In 

addition, Fiscal Service continued to expand the offset program by including additional debts 

owed to states as well as payments made by states. In an effort to increase efficiency, the Debt 

Collection Program conducted random controlled trials to determine cost effective improvements 

to correspondence, optimized the call center, expanded the use of highly productive debt 

collection approaches, such as wage garnishment, and continued to transition to a data-driven, 

analytical approach. Finally, the Fiscal Service began preparations to support the DATA Act 

requirement that agencies refer debts for administrative offset when they are 120 days 

delinquent, rather than 180 days delinquent. 
FS - 18

Description of Performance:

In FY 2014, the Fiscal Service collected 96 percent of its collection performance target due to 

events related to the partial government shutdown and one-time changes to some agencies’ 

referrals. At the end of FY 2014, the Fiscal Service collected $6.9 billion in delinquent debt. 

The Fiscal Service’s goal for FY 2015 and FY 2016 is to collect $7.1 billion and $7.36 billion, 

respectively, in delinquent debt through the use of expanding the administrative wage 

garnishment collection tool, enhanced use of analytics, and legislative changes such as the 

proposal to allow the Treasury to offset federal income tax refunds to collect delinquent state tax 

obligations regardless of where the debtor resides. 

3.1.2 – Debt Collection Budget and Performance Plan

Dollars in Thousands

Debt Collection Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Reimbursable Resources $86,247 $110,567 $130,474 $133,257 $153,667 $139,377 $122,597 $128,733

Budget Activity Total $86,247 $110,567 $130,474 $133,257 $153,667 $139,377 $122,597 $128,733

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Amount of Delinquent Debt 

Collected Through All Available 

Tools ($ billions)

5.03 5.45 6.17 6.17 7.02 6.91 7.5 7.36

Key: DISC - Discontinued and B - Baseline

3C – Do Not Pay Business Center

($5,116,000 from direct appropriations and $871,000 from reimbursable resources): 

The Fiscal Service’s Do Not Pay Business Center supports three of Treasury’s strategic 

objectives: 1) “to improve the efficiency and transparency of federal financial management and 

government-wide accounting,” 2) “to improve the disbursement and collection of federal 

funds and reduce improper payments made by the U.S. government,” and 3) “to support 

effective, data-driven decision-making and encourage transparency through intelligent gathering, 

analysis, sharing, use, and dissemination of information. Following the June 2010 Presidential 

Memorandum on Enhancement of Payment Accuracy Through a “Do Not Pay List,” the Do Not 

Pay Business Center was established for use by federally-funded programs at all departments and 

agencies in order to achieve the goal of preventing ineligible recipients from receiving payments 

or awards from the federal government. DNP is a significant step toward meeting the President’s 

directive to establish a single-entry point that departments and agencies can access to determine 

eligibility information prior to making an award or payment. With the enactment of the 

Improper Payments Elimination & Recovery Improvement Act of 2012 (IPERIA), DNP is 

supporting Executive Branch agencies in meeting the IPERIA requirement to verify all payments 

prior to issuance. 
FS - 19

DNP provides a single centralized way to access timely, reliable, and actionable data and 

information that can help identify, prevent, detect, and recover improper payments throughout 

the payment life cycle while protecting individuals’ privacy. Additionally, the DNP working 

system is integrated into the Treasury payment stream, enabling just-before-payment checks of 

selected data sources. DNP accomplishes its mission by focusing on five main areas:

1. Data: DNP is working to incorporate and make available all the data sources identified in 

IPERIA and to identify additional data sources that are relevant to the prevention of improper 

payments.

2. Technology: DNP has developed and deployed a user-friendly web-based portal through 

which agencies can access key data sources and review the results of data matching and 

analysis. The Do Not Pay Portal enables agencies to access multiple data sources in a 

centralized location, including the Death Master File, the System for Award ManagementExcluded Parties List System, the Debt Check Database, the System for Award ManagementCentral Contractor Registration, the Office of Foreign Assets Control’s Specially Designated 

Nationals List, the List of Excluded Individuals and Entities, and other data sources. The 

Fiscal Service will continue to research and add federal and commercially available data 

sources to the Portal. This data will assist agencies in their efforts to reduce improper 

payments throughout the pre-award, pre-payment, and post-payment review processes. DNP

has also developed the ability to automatically compare payments immediately prior to 

disbursal to selected data sources and return the results of those comparisons to agencies via 

the portal.

3. Authorities and Governance: DNP has developed standardized processes to ensure the 

protection of the privacy of individuals and adherence to all applicable authorities.

4. Agency outreach: DNP has developed a highly capable team that works with agencies to 

ensure they have access to the optimal data and information needed to support the prevention 

of improper payments.

5. Analytics: DNP has built a team of quantitative and business analysts that utilize data to 

identify improper payments, systemic errors, and potential fraud. DNP is adding analytical 

tools and expanding analytical capabilities to address additional causes of improper 

payments. 

Description of Performance:

Since the Do Not Pay Business Center was launched in FY 2012, significant progress has been 

made towards providing agencies a one-stop-shop to assist agencies in verifying eligibility prior 

to issuing a payment. Since the program's inception, priority was placed on expanding the 

number of data sources, as well as the customer base, for Do Not Pay services. In addition, the 

Do Not Pay Business Center worked to establish the program's performance goals and metrics. 

Also in FY 2012, the program initiated the “Growth Phase” where the focus was to increase the 

number of agencies and agency programs using Do Not Pay Services. In FY 2013, DNP 

completed its growth phase by finalizing a long-term vision, shifting its focus to maximizing 

impact. The program leveraged the Improper Payments Elimination and Recovery 

Improvement Act of 2012 to begin integration with the payment stream, development of data 
FS - 20

quality assessment criteria, and close collaboration with agencies to better understand how 

business rules and processes can be optimally leveraged to adjudicate matches. In FY 2014, 

DNP incorporated OMB Privacy Guidance requirements into the DNP System of Records 

Notice, published in the Federal Register; integrated DNP into the Treasury payment stream to 

centrally reduce improper payments across government by moving the Massively Parallel 

Processor from the Federal Reserve Bank of Kansas City to the Treasury Web Application 

Infrastructure (TWAI) and the implementation of the capability to process daily data source 

updates; and developed the foundational documents, processes, and governance for the 

Analytics Center of Excellence. In FY 2015 and beyond, having completed seamless 

integration into the Treasury payment stream, the Do Not Pay Business Center will continue to 

support agencies in efforts to prevent improper payments, meet their IPERIA requirements, and 

review payments and awards prior to payment. In FY 2015 and beyond, the Do Not Pay 

Business Center will continue to support agencies in efforts to prevent improper payments, 

meet their IPERIA requirements, and review payments and awards prior to payment by 

seamlessly integrating into the Treasury payment stream. DNP will continue to grow its 

analytics capabilities and will acquire effective data, technology, and expertise to provide more 

tools to provide more robust information for customer agencies to use in verifying payments.

3.1.3 – Do Not Pay Business Center Budget and Performance Plan

Dollars in Thousands

Do Not Pay Business Center Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $0 $0 $0 $10,000 $5,000 $5,000 $5,064 $5,116

 Reimbursable Resources $0 $0 $0 $105 $0 $779 $790 $871

Budget Activity Total $0 $0 $0 $10,105 $5,000 $5,779 $5,854 $5,987

3D – Government Agency Investment Services

($13,074,000 from direct appropriations and $2,385,000 from reimbursable resources): 

The Government Agency Investment Services (GAIS) Program assists in fulfilling Treasury’s 

strategic objective “to improve the efficiency and transparency of federal financial management 

and government-wide accounting.” This program consists of three distinct components:

• The Federal Investments component includes issuing, servicing, and redeeming Government 

Account Series (GAS) securities for federal agencies that have legislative authority to invest. 

As of September 30, 2014, over $5.2 trillion in GAS securities was outstanding, representing 

nearly one-third of the federal debt. Federal Investments is also responsible for coordinating 

with the Office of Fiscal Projections and Summary Debt Accounting to employ extraordinary 

measures and ensure that the outstanding public debt subject to limit does not exceed the 

statutory limit during periods of delay. Within this component is also the Trust Funds 

Management Program, which includes 22 trust funds that are managed and invested on 

behalf of the Secretary of the Treasury. Among these are the Unemployment, Oil Spill 

Liability, Social Security, Medicare, and Gulf Coast Restoration Trust Funds. Investment 

holdings of these funds total $3.1 trillion. The program also oversees the management of 

another eight Tribal funds on behalf of Treasury. During FY 2015, the Trust Funds 

Management Program will disburse grant payments awarded by the Treasury Department in 
FS - 21

support of the Gulf Coast Restoration Trust Fund legislation (also referred to as the 

RESTORE Act). The program is also responsible for administering certain Non-Entity funds 

held by, but not available to, Treasury for use in operations.

• The Special Purpose Securities component administers State and Local Government Series 

(SLGS) securities of approximately $106 billion and offers a flexible investment alternative 

for state and local governments to refinance their outstanding tax-exempt debt. During FY 

2015 and 2016, the program will evaluate and coordinate business and system impacts of 

regulatory changes identified by the SLGS Treasury Working Group. 

• The Federal Borrowings Program component represents Treasury’s role in the federal loan 

program and accounts for and reports on over $1.2 trillion in loans made to other federal 

agencies with legislative authority to borrow. Agencies with authority to borrow include, but 

are not limited to, the Department of Education, the Department of the Treasury, the 

Department of Agriculture, and the Department of Housing and Urban Development. 

Description of Performance:

The GAIS Program strives to provide high-quality customer service, reliable transaction 

processing, and accurate and timely payment distribution. To aid in measuring performance, the 

organization conducts an annual customer survey that focuses on both program and system 

satisfaction. Based on survey responses, Fiscal Service plans to target areas of improvement 

with the intent to increase the percentage of customers rating GAIS as "Excellent." The Fiscal 

Service’s target percentage for customers rating GAIS as “Excellent” is 58 percent in FY 2015 

and 59 percent in FY 2016. 

To assist in analyzing the efficiency of maintaining these components in a consolidated system 

environment, Fiscal Service tracks the cost per GAIS transaction. The actual FY 2014 cost is 

$35.99, which is below the target of $39.28. Minor application enhancements and increased 

system license fees increase target costs to $38.09 and $38.49 in FY 2015 and FY 2016, 

respectively. 
FS - 22

3.1.4 – Government Agency Investment Services Budget and Performance Plan

Dollars in Thousands

Government Agency Investment Services Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $17,723 $18,013 $16,045 $15,149 $14,728 $13,704 $13,055 $13,074

 Reimbursable Resources $1,698 $2,130 $2,130 $2,035 $2,076 $3,125 $2,164 $2,385

Budget Activity Total $19,421 $20,143 $18,175 $17,184 $16,804 $16,829 $15,219 $15,459

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Government Agency 

Investment Services 

Transaction ($)

41.71 82.08 84.67 33.48 35.2 35.99 38.09 38.49

Percent of Respondents 

Selecting the Highest Rating of 

Customer Satisfaction with 

Government Agency 

Investment Services

N/A 55.0 60.0 60.0 61.0 57.0 58.0 59.0

Key: DISC - Discontinued and B - Baseline

3E – Government-wide Accounting and Reporting

($68,553,000 from direct appropriations and $1,509,000 from reimbursable resources): 

The Government-wide Accounting (GWA) Program supports Treasury’s strategic objective “to 

improve the efficiency and transparency of federal financial management and government-wide 

accounting” by producing timely and accurate financial information that contributes to the 

improved quality of financial decision making by operating and overseeing the Government’s 

central accounting and reporting system. The GWA Program also works with FPAs to adopt 

uniform accounting and reporting standards and systems. It provides support, guidance, and 

training to assist FPAs in improving their government-wide accounting and reporting 

responsibilities. Fiscal Service collects, analyzes, and publishes government-wide financial 

information, which is used by the federal government to establish fiscal and debt management 

policies and by the public and private sectors to monitor the Government’s financial status. 

Publications include the Daily Treasury Statement, the Monthly Treasury Statement, the 

Treasury Bulletin, the Combined Statement of the United States Government, and the Financial 

Report of the United States Government (FR).

The GWA cash reporting function supports the National Financial Critical Infrastructure. In this 

capacity, Fiscal Service continues to obtain an unmodified opinion on the Audit of Non-entity 

Schedules of Government-wide Cash. 

Fiscal Service is taking significant steps to address the material weaknesses found in the 

compilation process of the FR including:

• Requiring comprehensive accounting data from agencies on a monthly basis that will

allow the Fiscal Service to better analyze the data for consistency and completeness.
FS - 23

• Proactively enforcing the dispute resolution process to officially resolve and 

document differences when agencies do not agree on the proper accounting.

• Providing agencies with authoritative data to reconcile inter-agency transfers and other 

transactions that agencies report to the central accounting system.

• Designing quarterly intergovernmental scorecards for agencies to highlight differences and 

monitoring their progress on addressing the differences.

• Using the Chief Financial Officers Council, Central Reporting Team as a forum to 

discuss accounting and reporting issues that affect the FR.

• Collaborating across the audit community to begin discussion around implementing 

improved Intra-governmental Transactions audit procedures.

• Standing up the General Fund as a reporting Entity.

• Reconciling the agency data to central accounting data, which the Fiscal Service uses to 

prepare the Reconciliations of Net Cost and Unified Budget Deficit Statement and the 

Statement of Changes in Cash Balance from Unified Budget and Other Activities. 

• Strengthening internal controls over the process for preparing the FR.

The goal of these actions is to assist in removing material weaknesses as barriers to an 

unmodified audit opinion for the FR.

Description of Performance:

In FY 2014, Fiscal Service achieved its target of 100 percent for the measure Percentage of 

Government-wide Accounting Reports, which include the Daily Treasury Statement, Monthly

Treasury Statement, and consolidated Financial Report, issued on time. Fiscal Service continues

to achieve its targets by maintaining the established process of validating and reconciling data 

with reporting sources such as the Regional Finance Centers, FPAs, and various electronic

deposit and payment applications. The bureau will continue modernization efforts to ensure the

timeliness of these reports and anticipates it will continue to achieve the 100 percent target for

FY 2015 and FY 2016.

3.1.5 – Government-wide Accounting and Reporting Budget and Performance Plan

Dollars in Thousands

Government-wide Accounting and Reporting Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $70,547 $71,826 $68,804 $64,374 $63,457 $65,486 $65,486 $68,553

 Reimbursable Resources $3,179 $1,985 $4,215 $4,215 $3,288 $630 $879 $1,509

Budget Activity Total $73,726 $73,811 $73,019 $68,589 $66,745 $66,116 $66,365 $70,062

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Percentage of GovernmentWide Accounting Reports 

Issued Timely

100.0 100.0 100.0 99.86 100.0 100.0 100.0 100.0

Key: DISC - Discontinued and B - Baseline
FS - 24

3F – Payments

($133,179,000 from direct appropriations and $71,916,000 from reimbursable resources): 

The Payment Management line of business supports Treasury’s strategic objective “to improve 

the disbursement and collection of federal funds and reduce improper payments made by the 

U.S. government.” The Fiscal Service is responsible for managing and operating federal 

payment systems and disbursing approximately 85 percent of all federal payments. Major 

payments include: Social Security Benefits, Supplemental Security Income, Federal Pension 

Benefits, Veterans’ Compensation and Pension, Railroad Retirement Pensions, and tax refunds.

The Payment Management line of business is also responsible for controlling and providing 

financial integrity to the payment process through reconciliation, accounting, and claims 

activities. The claims activity settles claims against the United States resulting from federal 

government checks that have been forged, lost, stolen, or destroyed, as well as claims and 

reclamations of Electronic Funds Transfer (EFT) payments. Fiscal Service also collects monies 

from those parties liable for fraudulent or otherwise improper negotiation of government checks.

Payment Management also actively supports the All Electronic Treasury priority by encouraging 

recipients to convert to electronic payment methods. Electronic payments provide timely, 

accurate, and efficient disbursement of federal government payments; eliminate the costs 

associated with postage and the re-issuance of lost or stolen checks; and help protect against 

fraud and identity theft. Fiscal Service’s nationwide public education campaign, called Go 

Direct®, was extremely successful in encouraging paper check recipients to switch to direct 

deposit. Through the Go Direct® public education campaign, more than 22 million paper-based 

payments were migrated to electronic payments and nearly 98 percent of all federal benefit 

payments are currently made by direct deposit. For beneficiaries who prefer a prepaid debit card 

or those who do not have a bank account, the Fiscal Service offers the Direct Express® card, 

which enables benefit payments to be automatically deposited into the recipient’s card account 

on the payment date. The card is currently available to Social Security, Supplemental Security 

Income, Veterans’ Compensation and Pension, Railroad Retirement Board, Office of Personnel 

Management, and Department of Labor benefit recipients. As of October 2014, more than 7 

million beneficiaries signed up for the Direct Express® card. The combined impact of both 

programs will save millions of dollars to the taxpayer in years to come.

In support of its payment function, the Fiscal Service has also undertaken considerable efforts to 

modernize its payment systems, incorporating new technologies and the internet. Some 

programs that will continue to be in focus are:

• Stored Value Card (SVC): The Stored Value Card (SVC) is aimed at reducing the float loss 

associated with the more than $2 billion in coins, currency, and checks in circulation at 

military bases in the U.S. and overseas, on ships at sea, and at other “closed” government 

locations around the world. SVCs reduce the high costs of securing, transporting, and 

accounting for cash. The program also provides a safe and convenient payment method for 

our service members. Currently, SVCs replace cash and checks at over 60 military bases 

and installations in 14 countries (including the U.S.) and on 140 Naval ships. Meeting this 

global demand necessitates the deployment of over 8,700 pieces of equipment including 

kiosks (cashless ATMs), point-of-sale terminals, laptops, and other related peripherals. 

From 1997 through September 2014, over 52.9 million EFT transactions with a dollar value 

in excess of $7.3 billion were processed via the SVC programs. In FY 2014 alone, the SVC 
FS - 25

programs processed over 4.8 million EFT transactions with a dollar value of over $583 

million.

• Invoice Processing Platform (IPP): IPP is a government-wide, secure, web-based electronic 

invoice exchange network connecting federal agencies and their vendors. IPP enables 

federal agencies to receive invoices electronically from their vendors, transforming existing 

paper-based invoice processes into a streamlined electronic process that integrates with 

existing agency core financial systems. IPP’s single point of entry allows vendors to invoice 

multiple IPP enrolled agencies either via online or batch invoice submission. Vendors can 

view and receive notification of payments (including debt offsets) associated to their invoices 

via IPP. In addition, IPP supports the FIT initiative to develop a standard for electronic 

invoicing government-wide.

• Payment Application Modernization (PAM): The PAM investment supports a critical Fiscal 

Service function, which is the production and delivery of federal payments. PAM is an 

effort to replace 30+ existing Fiscal Service payment applications generating check, 

Automated Clearing House (ACH), International ACH Transaction (IAT), and wire transfer 

payments used to disburse over 1 billion federal payments on behalf of FPAs, with a single 

application. PAM addresses the following gaps: multiple systems written in outdated 

languages, inability to meet legislative and FPA changes/requests quickly, and extensive 

manual processes.

• Post Payment Systems (PPS) Consolidation: In support of Treasury’s Strategic Goal to 

“fairly and effectively reform and modernize federal financial management, accounting, and 

tax systems,” the Fiscal Service has invested in the consolidation of several post payment 

systems into a single, centralized system. The new PPS investment will reduce duplication 

of functionality, eliminate redundancy of data across systems, and provide a single source for 

aftermath payment processing for federal program agencies. By consolidating all payment 

aftermath processing into one comprehensive application, Fiscal Service will be able to 

decommission these five legacy systems: Treasury Check Information System (TCIS); 

Payments, Claims and Enhanced Reconciliation (PACER); Treasury Receivable, Accounting 

and Collection System (TRACS); Teletrace; and TOP Control System (TCS). 

PPS will include functionality to process Claims/Adjudications, Cancellations, Check 

Reconciliation, Settlements, Offsets, and Accounting, with Customer Service & Self-Service 

Applications. In addition, it will utilize standardized Common Government-wide 

Accounting Classification (CGAC) reporting structure and leverage COTS software 

solutions, when appropriate, to provide common, best practice functionality and proven 

implementation methodologies. PPS will provide the Fiscal Service and post-payment 

stakeholders with enhanced, streamlined business processes and productivity gains that will 

simplify reconciliation activities, improve information exchange, reduce paper-based 

processes, integrate disparate processes, improve fraud detection, and enable self-service 

functions for agency and financial institution users. 

• Payment Information Repository (PIR): The PIR is a payment repository that will support the 

centralization of government payment data and ultimately serve as a back-end to the Financial

Information Repository (FIR) and the public Transparency.Treasury.Gov website. The FIR

will allow the Fiscal Service to centrally manage financial data collected in other Information 
FS - 26

Repositories, including but not limited to: Payment Information Repository, Collections 

Information Repository, and Debt Information Repository. The PIR will provide reports on 

payment activity as well as the capability to support queries of payment data. The payment 

information provided through the FIR and the Transparency.Treasury.Gov webpage will be 

available to federal program agencies and the public.

Description of Performance:

The measure Percentage of Treasury Payments and Associated Information Made Electronically 

supports the All Electronic Treasury priority. Due to the continued success of the Go Direct

®

and Direct Express® programs and implementation of the All Electronic Treasury priority, 

Fiscal Service has issued nearly 98 percent of its benefit payments and 94.4 percent of its total 

payments via EFT. Fiscal Service expects to achieve its targets in FY 2015 and FY 2016 by

expanding electronic conversion efforts to additional benefit agencies and payment types, such as 

other vendor miscellaneous payments and federal tax refunds. 

3.1.6 – Payments Budget and Performance Plan

Dollars in Thousands

Payments Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $147,717 $150,395 $141,358 $132,265 $125,570 $126,636 $121,715 $133,179

 Reimbursable Resources $138,584 $129,262 $142,340 $131,060 $102,401 $77,846 $70,249 $71,916

Budget Activity Total $286,301 $279,657 $283,698 $263,325 $227,971 $204,482 $191,964 $205,095

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Percentage of Treasury 

Payments and Associated 

Information Made Electronically

81.0 82.0 84.3 88.0 92.5 94.4 95.0 96.0

Key: DISC - Discontinued and B - Baseline

3G – Retail Securities Services

($94,145,000 from direct appropriations and $17,540,000 from reimbursable resources): 

The Fiscal Service’s Retail Securities Services (RSS) Program offers simple, safe, and affordable 

securities that enable Americans to save for their future. Products are targeted toward small 

investors looking to securely build savings. The program serves more than 50 million investors 

by processing millions of transactions annually. 

The RSS Program continues to examine the saving and investing needs of customers by 

researching new Treasury retail securities and services that will promote savings and appeal to 

the American public. This most recently resulted in the creation of myRA, a new retirement 

savings account that soft launched in December 2014. The myRA Program follows Roth 

Individual Retirement Account rules. Therefore, the program is generally designed to be 

available to anyone who earns an annual income of less than $129,000 a year and $191,000 for 
FS - 27

married couples filing a joint tax return. The program has no maintenance fees and allows 

investors to save a maximum of $5,500 per year.

Committed to supporting Treasury's paperless initiative, the RSS Program encourages people to 

buy securities, access their accounts, and conduct transactions electronically. RSS plans to 

implement a new securities management system that will enhance capabilities for customers to 

purchase, reinvest, redeem, transfer, and hold securities electronically. Investors will be able to 

learn about retail products and services, make informed decisions about buying Treasury 

securities, and manage their Treasury investments more efficiently. Also in support of the 

paperless initiative, paper securities issued via payroll and over-the-counter channels have been 

eliminated. A small number of paper channels remain, and the target to eliminate these channels 

is FY 2017. 

Over the next two years, the program plans to implement the last three phases of its Treasury 

Retail E-Services (TRES) initiative. TRES is expected to automate workflows and reduce paper 

processes by deploying a virtual case file environment and implementing a virtual contact center 

using shared telephony. In addition, a secure portal with additional communication channels and 

self-service functionality will be made available to investors. 

By FY 2016, the program expects to have made significant progress in decommissioning several 

legacy systems.

Description of Performance:

The internet-based TreasuryDirect system allows investors to set up accounts, purchase 

electronic securities, and manage their holdings without customer assistance. The Cost per 

TreasuryDirect Online Transaction in FY 2014 was $1.84, below the targeted cost of $1.99. The 

cost per transaction is forecasted to be $1.89 in FY 2015 and $1.87 in FY 2016. 

The Cost per TreasuryDirect Assisted Transaction demonstrates Fiscal Service’s efficiency in 

responding to customer inquiries. Although the TreasuryDirect system promotes investor selfservice, there are times when assistance from a customer service representative is necessary. 

Representatives handle phone and email inquiries, offline authentications, paper savings bond 

conversions, changes in bank information, and transactions requiring legal evidence. The Cost 

per TreasuryDirect Assisted Transaction in FY 2014 was $7.18, below the targeted cost of $7.99

due to staffing vacancies. The cost per transaction is forecasted to be $8.08 in FY 2015 and 

$7.92 in FY 2016 as staffing levels return to more normal levels.

Fiscal Service plans to meet performance targets by maintaining a skilled customer service 

workforce and streamlining operations to effectively manage costs.
FS - 28

3.1.7 – Retail Securities Services Budget and Performance Plan

Dollars in Thousands

Retail Securities Services Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $139,109 $139,109 $135,337 $116,260 $110,876 $95,249 $95,237 $94,145

 Reimbursable Resources $16,293 $15,393 $15,393 $17,166 $16,841 $17,400 $15,917 $17,540

Budget Activity Total $155,402 $154,502 $150,730 $133,426 $127,717 $112,649 $111,154 $111,685

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Cost Per TreasuryDirect 

Assisted Transaction ($)

8.72 8.23 3.0 4.58 7.3 7.18 8.08 7.92

Cost Per TreasuryDirect Online 

Transaction ($)

5.21 6.12 3.64 2.26 1.72 1.84 1.89 1.87

Increase the Number of 

Customers Who Buy Treasury 

Retail Securities Electronically

N/A N/A 144,997 301,737 269,180 222,790 185,000 180,000

Percentage of Retail Customer 

Service Transactions 

Completed within 5 Business 

Days

86.0 92.7 73.1 75.7 74.5 89.7 88.0 88.0

Key: DISC - Discontinued and B - Baseline

3H – Summary Debt Accounting

($4,243,000 from direct appropriations and $824,000 from reimbursable resources): 

The Summary Debt Accounting (SDA) Program assists in fulfilling Treasury’s strategic 

objective “improve the efficiency and transparency of federal financial management and 

government-wide accounting.” SDA is vital to meeting Fiscal Service's responsibility to account 

for nearly $18 trillion of public debt and over $431 billion in related interest expenses incurred to 

finance the operations of the federal government. 

SDA reports daily on the balances and composition of the public debt, publishes the Monthly 

Statement of the Public Debt, and issues the annual, audited Schedules of Federal Debt 

(Schedules). The Schedules report on the single largest liability in Treasury’s Agency Financial 

Report, which received an unmodified opinion for the past 18 years. 

Description of Performance:

All financial activity related to the public debt of the United States is reported by the SDA 

Program. This is accomplished by collecting and reporting securities-related issue, redemption, 

and interest payment information on a daily basis. 

To improve operational effectiveness, Fiscal Service completed several efforts to modernize the 

SDA business and system environment. These efforts allowed SDA to more quickly respond to 
FS - 29

changes in reporting requirements, responsibilities, and financial information needs. A major 

component in the modernization effort was accomplished on November 18, 2013, with the 

implementation of the Summary Debt Accounting System, which replaced the Public Debt 

Accounting and Reporting System. This change strengthened the governance over the debt 

accounting environment and ensured the collection, verification, and dissemination of all debt 

accounting information is accurate, appropriate, flexible, and standardized. SDA will continue 

to analyze the business and system environment and perform enhancements based upon 

stakeholder feedback.

To transform SDA, the program created a long-term goal of restructuring or eliminating a 

percentage of business processes. Throughout the lifetime of the goal, SDA restructured or 

eliminated 44 percent of its processes. SDA will continue to evaluate its business processes to 

determine if any further restructuring or elimination is appropriate. 

SDA relies on cost per transaction to help manage the efficiency of the program. The actual 

FY 2014 cost is $16.36, which is below the target of $17.68. Minor application enhancements 

and increased system license fees increase target costs to $17.53 and $17.72 in FY 2015 and 

FY 2016, respectively. 

3.1.8 – Summary Debt Accounting Budget and Performance Plan

Dollars in Thousands

Summary Debt Accounting Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $7,082 $10,266 $9,195 $8,836 $8,443 $16,115 $4,325 $4,243

 Reimbursable Resources $827 $852 $852 $1,166 $1,153 $2,944 $748 $824

Budget Activity Total $7,909 $11,118 $10,047 $10,002 $9,596 $19,059 $5,073 $5,067

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Summary Debt 

Accounting Transaction ($)

8.66 11.28 14.8 22.47 19.86 16.36 17.53 17.72

Percent of Summary Debt 

Accounting Business 

Processes Restructured or 

Eliminated

N/A 6.0 9.5 6.0 21.4 21.4 15.0 20.0

Key: DISC - Discontinued and B - Baseline

3I – Wholesale Securities Services

($18,931,000 from direct appropriations and $3,878,000 from reimbursable resources): 

The Wholesale Securities Services (WSS) Program supports Treasury’s strategic objective “to 

promote savings and increased access to credit and affordable housing options.” WSS is 

responsible for the announcement, auction, issuance, and settlement of marketable Treasury bills, 

notes, bonds, and Treasury Inflation-Protected Securities. The program also oversees that 

portion of the federal infrastructure that provides for the transfer, custody, and redemption of all 

Treasury marketable securities, which are purchased mostly by commercial market participants. 
FS - 30

The auction program supports the National Financial Critical Infrastructure and is a mission 

essential function for Treasury that enables the federal government to finance operations. WSS 

ensures that communications, systems, processes, and contingency plans provide for high-level 

performance and business continuity for wholesale auction operations. The auction system, 

Treasury Automated Auction Process System, resides in an aging technical infrastructure, thus, it 

is being migrated to a modernized technical infrastructure to ensure continued operational 

efficiency.

Another major component of this program is the commercial book-entry system, which holds 

approximately $12 trillion, or 99 percent, of Treasury marketable securities. Treasury uses this 

system to issue most of its marketable debt, make principal and interest payments, and support 

the active secondary market in Treasury securities. It is estimated that about $1 trillion per day 

in Treasury securities are transferred among account holders in the commercial book-entry 

system. 

Description of Performance:

Fiscal Service strives to efficiently deliver its debt financing operations, including auctions and 

buybacks, at the lowest possible cost. The Cost per Debt Financing Operation in FY 2014 was

$137,888, below the targeted cost of $157,013. The cost per debt financing operation is 

estimated at $165,339 in FY 2015 and $165,716 in FY 2016; the increase is primarily due to the 

anticipated migration of the Treasury Automated Auction Processing System to a new technical 

infrastructure.

The accurate and timely release of auction results, with an emphasis on accuracy, is critical to the 

success of the WSS Program. An emphasis on accuracy ensures preservation of public 

confidence in Treasury securities and stability of the financial market. Therefore, in FY 2016, 

Fiscal Service modified its performance measure from Percent of Auction Results Released in 

Two Minutes +/- 30 Seconds to Percent of Auction Results Released Accurately, with a target of 

100 percent in FY 2016. Fiscal Service anticipates meeting its target through ongoing business 

process reviews and regularly scheduled contingency planning and mock auction exercises. 
FS - 31

3.1.9 – Wholesale Securities Services Budget and Performance Plan

Dollars in Thousands

Wholesale Securities Services Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $23,438 $24,438 $24,058 $23,120 $22,092 $12,840 $19,009 $18,931

 Reimbursable Resources $2,378 $2,821 $2,821 $3,051 $3,000 $2,346 $3,519 $3,878

Budget Activity Total $25,816 $27,259 $26,879 $26,171 $25,092 $15,186 $22,528 $22,809

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Cost Per Debt Financing 

Operation ($)

170,214.0 162,378.0 157,284.0 159,449.0 141,115.0 137,888.0 165,339.0 169,441.0

Percent of Auction Results 

Released in Two Minutes +/-

30 Seconds

100.0 100.0 100.0 100.0 99.6 99.3 100.0 100.0

Key: DISC - Discontinued and B - Baseline
FS - 32

Section 4 – Supplemental Information

4A – Summary of Capital Investments

The Fiscal Service leads the way for responsible, effective government through commitment to 

cutting-edge technologies, service, efficient operations, sharing of best practices, and openness to 

change in order to meet the operating needs of the federal government. The Fiscal Service 

systematically analyzes the demand for its services, considers effective methods for delivery of 

these services, and identifies the broad asset implications through sound governance and 

investment management. 

Effective Investment Governance 

Enterprise architecture reviews ensure alignment of IT investments to bureau strategic plans, the 

strategic enterprise direction of Treasury. The reviews also identify potential duplication of 

systems. The Fiscal Service’s Capital Planning and Investment Control Program addresses the 

prioritization of new and existing IT investments, risk management, long-range planning, 

business objectives, alternative analysis, and governance. By tracking and reporting the progress 

of each investment and the performance measures achieved, the Fiscal Service ensures its IT 

investment portfolio is well managed, cost effective, and supports strategic goals. 

Effective Project Execution 

Through a disciplined and consistent approach to project management, IT investments are 

closely monitored for cost, schedule, and performance to ensure expected results and benefits are 

achieved. Each IT investment has a dedicated program manager and a fully staffed integrated 

program team. The systems that support each investment are enhanced using Rapid Application 

Development techniques that give the program manager the flexibility to quickly incorporate 

new functionality and improve efficiency across the bureau. 

Enterprise Architecture Services 

Enterprise Architecture Services include business architecture and technical architecture 

services. Business architecture focuses on the strategic capabilities, knowledge, processes, and 

relationships that support the achievement of organizational goals and alignment of strategic 

objectives to meet enterprise business needs. Technical architecture establishes standards and 

patterns for information technology solutions. Technical architecture reviews requirements that 

influence or change the technology supporting the Fiscal Service critical business functions and 

maintains architecture documentation and a Technology Roadmap.

Investments

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed/downloaded at:

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx.

This website also contains a digital copy of this document.