Office of Financial Research

Congressional Justification for 

Appropriations and 

Annual Performance 

Report and Plan

FY 2018
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Table of Contents

Section I – Budget Request........................................................................................................... 3

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

B – Summary of the Request ...................................................................................................... 3

C – Vision, Priorities, and Context............................................................................................. 4

1.2 – Budget Adjustments Table................................................................................................. 6

D – Budget Increases and Decreases Description....................................................................... 6

1.3 – Operating Levels Table...................................................................................................... 7

E – Appropriations Language and Explanation of Changes....................................................... 7

F – Legislative Proposals............................................................................................................ 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Data Center .......................................................................................................................... 8

2.1.1 – Data Center Budget and Performance Plan .................................................................... 8

B – Technology Center............................................................................................................... 9

2.1.2 – Technology Center Budget and Performance Plan......................................................... 9

C – Research and Analysis Center.............................................................................................. 9

2.1.3 – Research and Analysis Center Budget and Performance Plan...................................... 10

D – Operations and Support Services....................................................................................... 10

2.1.4 – Operations and Support Services Budget and Performance Plan ................................. 10
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Section I – Budget Request 

A – Mission Statement

Promote financial stability by delivering high-quality financial data, standards, and analysis for 

the Financial Stability Oversight Council (FSOC or Council) and public.

B – Summary of the Request 

The Office of Financial Research (OFR) is estimating an FY 2018 funding level of $76.056 

million, which is 25 percent below its Fiscal Year (FY) 2017 operating level. To align with the 

Administration’s initiative to improve government efficiency and effectiveness, OFR is 

implementing a staffing streamlining effort to ensure appropriate levels for maximum efficiency.

1.1 – Resource Detail Table Dollars in Thousands

Office of Financial Research

Budgetary Resources

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Assessments1 $91,926 $75,935 $54,560 ($21,375) NA -28.15%

Interest $169 $189 $176 ($13) NA -6.88%

Recovery of Prior Year Paid Obligations $231 $220 $132 ($88) NA -40.00%

Recovery of Prior Year Unpaid Obligations $4,638 $6,380 $3,740 ($2,640) NA -41.38%

Restoration of Sequestration Rescission $5,945 $6,262 $5,253 ($1,009) NA -16.11%

Unobligated Balances from Prior Years2 $70,175 $71,947 $54,274 ($17,673) NA -24.56%

Total Revenue/Offsetting Collections $173,084 $160,933 $118,135 ($42,798) NA -26.59%

Expenses/Obligations 16FTE 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Data Center 37 $16,477 45 $19,157 43 $16,865 (2) ($2,292) -4.44% -11.96%

Technology Center 61 $32,132 65 $35,562 36 $27,281 (29) ($8,281) -44.62% -23.29%

Research and Analysis Center 54 $14,239 55 $17,719 38 $11,573 (17) ($6,146) -30.91% -34.69%

Operations and Support Services 56 $32,026 58 $28,969 22 $20,337 (36) ($8,632) -62.07% -29.80%

Total Expenses/Obligations 208 $94,874 223 $101,407 139 $76,056 (84) ($25,351) -37.67% -25.00%

Sequestration Rescission ($6,262) ($5,253) $0 $5,253

Net Results $71,948 $54,273 $42,079 ($12,194) -22.47%

FY 2016 FY 2017 FY 2017 to FY 2018

Actual Estimated Estimated Change % Change

FY 2018

1) The OFR is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and interim final rule governing the Assessments 

process: https://financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf 

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in the unobligated balance line. This is because the first assessment covering the 

fiscal year beginning October 1 is actually collected on September 15 of the prior fiscal year. This makes it appear as though large amounts of unobligated balances went unused, when in 

fact very little, if any, of those balances were from under execution. For instance: the entire $71,947M carried forward from FY 2016 was to cover the estimated need of $73,718M for the 

first assessment period of FY 2017. The remaining need was covered by the return of the FY 2016 sequestration reduction.
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C – Vision, Priorities, and Context 

The Office of Financial Research (OFR or Office) resides within the Department of the Treasury.

In carrying out its mission, the OFR seeks to achieve its vision of a transparent, efficient, and 

stable financial system. The OFR’s work contributes to making informed and comprehensive 

policies and taking actions that will strengthen the financial system. The Office monitors the 

financial environment for the emergence of new vulnerabilities and migration of financial 

activity that could threaten financial stability. Although the OFR was created within Treasury, 

the work of the OFR is independent from the Council and the Treasury. This independence 

provides the Office with an objective position to evaluate macroprudential policies, advocate for 

needed data initiatives, help the regulatory community enhance its peripheral vision, and produce 

work that may have previously been beyond the reach of individual regulatory agencies.

In the OFR Strategic Plan for Fiscal Years 2015–2019, the OFR established three strategic goals 

that reflect its primary functions in data and analysis, data standardization, and research.

1 The 

plan will continue to guide the Office’s work through FY 2019 and will support the decisions 

made about resources needed to implement those strategies. The three goals are:

1. The OFR is an essential source of data and analysis for monitoring threats to financial 

stability.

Key objectives of this goal include:

• The OFR’s monitoring tools and analyses are widely used and critical to assessing 

financial stability.

• Data used to monitor financial stability are comprehensive, reliable, and accessible to 

policy makers and the public through the OFR.

• Data providers and the public trust, acknowledge, and recognize that OFR data are 

protected and secure.

2. Standards that improve the quality and utility of financial data are identified and 

adopted.

Key objectives of this goal include:

• Recognition of the need for standards by policy makers and industry.

• The OFR is the source of expert knowledge needed to develop and implement types and 

formats of data reported and collected.

• Financial data standards that create efficiencies and facilitate analysis are widely used.

3. Leading edge research improves financial stability monitoring and the scope and 

quality of financial data, and informs policy and risk management.

Key objectives of this goal include:

• The OFR is the recognized center for objective, innovative research on financial 

stability.

 1 See the OFR Strategic Plan for Fiscal Years 2015–2019: 

http://financialresearch.gov/strategy-budget/files/Office-of-Financial-Research-Strategic-Plan-2015-2019.pdf.
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• OFR research is widely cited and used to improve policy making, risk management, 

financial stability, and the scope and quality of financial data.

OFR research priorities include:

• Broadening the market monitoring framework, including continued publication of a Financial 

Markets Monitor; 

• Developing a suite of additional monitors and dashboards to assess and monitor risks in 

money market funds, hedge funds, and credit default swap markets; 

• Publishing descriptions of the methodology behind the Financial Stability Monitor and 

Financial Stress Index, as well as other publications on significant threats to financial 

stability;

• Understanding and analyzing the conflicts and complementarities among macroprudential 

policy tools;

• Developing and executing a research program to examine factors behind market liquidity;

• Developing and executing a research and data program to examine risks in central 

counterparty clearinghouses;

• Expanding the evaluation of stress tests and other macroprudential policy tools; and

• Publishing research on financial stability, risk management, and related topics.

OFR data priorities include:

• Advocating for continued global implementation of the Legal Entity Identifier (LEI) in 

regulation and market practice; 

• Promoting the use of data standards in derivatives markets, in collaboration with the 

Commodity Futures Trading Commission;

• Leading or contributing to the development and implementation of new standards for 

financial data;

• Filling data gaps, particularly in secured funding markets and asset management;

• Collecting data on the repo market, in collaboration with the Federal Reserve; 

• Promoting and developing protocols for secure data sharing among regulatory agencies; and

• Creating a prototype financial instrument reference database to promote market transparency.
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1.2 – Budget Adjustments Table

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2017 Estimated 223 $101,407 

Changes to Base:

Total FY 2018 Base 223 $101,407 

Program Changes:

Program Decreases (84) ($25,351)

Personnel (84) ($17,824)

Non-Personnel 0 ($7,527)

Total FY 2018 Estimated 139 $76,056 

D – Budget Increases and Decreases Description

Program Decreases........................................................................-$25,351,000

Personnel -$17,824,000 / -84 FTE

To align with the Administration’s initiative to improve Government efficiency and 

effectiveness, the Office of Financial Research is implementing a staffing streamlining effort to 

ensure appropriate levels for maximum efficiency.

Non-Personnel -$7,527,000 / 0 FTE

The office proposes to decrease administrative costs, reduce supplies and equipment purchases, 

and re-organize management functions.
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1.3 – Operating Levels Table

Dollars in Thousands

Office of Financial Research FY 2016 FY 2017 FY 2018

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 31,622 34,371 21,760 

11.3 - Other than full-time permanent 497 535 495 

11.5 - Other personnel compensation 366 775 450 

11.9 - Total personnel compensation 32,485 35,681 22,705 

12.0 - Personnel benefits 11,322 11,849 7,001 

Total Personnel and Compensation Benefits $43,807 $47,530 $29,706 

21.0 - Travel and transportation of persons 556 623 246 

23.1 - Rental payments to GSA 59 0 0 

23.3 - Communication, utilities, and misc charges 3 3 5 

24.0 - Printing and reproduction 26 24 25 

25.1 - Advisory and assistance services 10,338 17,541 12,887 

25.2 - Other services from non-Federal sources 967 1,235 1,212 

25.3 - Other goods and services from Federal sources 24,489 18,185 18,265 

26.0 - Supplies and materials 8,312 7,513 7,135 

31.0 - Equipment 5,997 8,753 6,575 

41.0 - Grants, subsidies, and contributions 320 0 0 

Total Non-Personnel $51,067 $53,877 $46,350 

New Budgetary Resources $94,874 $101,407 $76,056 

FTE 208 223 139

1) Personnel compensation and benefits include direct OFR staff members only. Object Classification 25, “Other contractual 

services,” and expenditures of “Operations and Support Services” include reimbursable support received from Treasury’s 

Departmental Offices; personnel benefits services from the Office of the Comptroller of the Currency; and services from Treasury’s 

Bureau of the Fiscal Service Administrative Resource Center, including human resource services, procurement services, travel, and 

financial management services.

E – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

F – Legislative Proposals

The OFR has no legislative proposals.
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Section II – Annual Performance Plan and Report

The Department of the Treasury’s FY 2018 - 2022 Strategic Plan, in which the OFR is included,

is currently under development. The Annual Performance Plan will be updated in the FY 2019 

budget to reflect the new priorities.

A – Data Center

($16,865,000 from Assessments):

As required by statute, the Data Center, on behalf of the Council, collects, validates, and 

maintains all data necessary to carry out the Center’s duties. Under this mandate, the Data 

Center works to increase efficiency in data acquisition and management; reduce redundant 

reporting requirements across the regulatory system (including through more effective datasharing arrangements); and to ensure the security of sensitive data. 

Data Standards

One of the OFR’s strategic goals is to identify and adopt standards that improve the quality and 

utility of financial data. Standards for financial data will benefit regulators and financial market 

participants by making data aggregation easier, improving analysis, and reducing data collection

costs. The OFR monitors progress through the following key performance indicators: 

• Number of LEIs issued cumulatively in the United States and internationally – This indicator 

tracks the progress over time in the industry use of the LEI. 

• Number of times that financial data standards are incorporated in rules and regulations – This 

data point serves as an indicator of regulators’ awareness of the importance of data standards 

and the extent to which data standards are being adopted in rules and regulations.

2.1.1 – Data Center Budget and Performance Plan

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target

FY 2018

Trend

Number of LEIs Issued 

Cumulatively in the United 

States and Internationally

N/A N/A N/A 395,861 464,412 I I I

Number of Times That 

Financial Data Standards 

Related are Incorporated 

in Rules and Regulations

N/A N/A N/A 2 9 I I I

Key: DISC - Discontinued; B - Baseline, I - Indicator

Indicator: a metric that has no established target and is used for contextual purposes only; a direction for improvement 

may be associated with an indicator, but not a specific target.

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column3 Column22 Column10

Expense/Obligations $19,303 $37,619 $46,940 $17,240 $16,477 $19,157 $16,865

Budget Activity Total $19,303 $37,619 $46,940 $17,240 $16,477 $19,157 $16,865

FTE 24 66 90 51 37 45 43
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B – Technology Center

($27,281,000 from Assessments):

The Technology Center provides mission-critical analytic services to support the OFR’s work 

with complex, sensitive financial data and the Office’s research and analysis activities. In 

addition, the Technology Center is responsible for safeguarding data and systems, and 

managing all IT capabilities within the OFR. These responsibilities include computing and 

analytic platforms, software, telecommunications, client applications, and office automation 

solutions. 

2.1.2 – Technology Center Budget and Performance Plan

C – Research and Analysis Center

($11,573,000 from Assessments):

Through its Working Paper Series, Brief Series, Staff Discussion Papers Series, and OFR annual 

reports, the OFR publishes results of its analysis to be transparent in its operations and promote 

public understanding of threats to financial stability. In addition, the OFR’s Research Seminar 

Series allows the OFR’s research staff opportunities to collaborate with external experts and seek 

feedback from them. The OFR is establishing forums and networks to bring together experts 

from within and outside the regulatory system. 

Leading Edge Research and Monitoring Threats to Financial Stability

The Research and Analysis Center contributes to the achievement of two of the OFR’s three 

strategic goals: (1) Leading edge research improves financial stability monitoring and the scope 

and quality of financial data, and informs policy and risk management; and (2) The OFR is an 

essential source of data and analysis for monitoring threats to financial stability. The OFR has 

one measure linked to the achievement of each of these two goals:

• Number of research and analysis publications (working papers, briefs, staff discussion 

papers, and reports) made public – This measure tracks the OFR’s progress in increasing the 

size of its research portfolio available to policy makers, regulators, industry, academics, and 

the public. The measure includes a wide range of published research products, from the 

OFR’s comprehensive annual reports to the more frequently issued working papers. This 

measure was formerly called, “Number of research and analysis products made public.”

• Number of monitor editions, policy analyses, and dashboards produced for monitoring 

threats to financial stability – This measure tracks the OFR’s output of monitoring tools and 

other analyses of threats to financial stability. It includes tools and information made 

available to the general public, as well as those produced for the Council or Council member 

agencies.

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 Column10

Expense/Obligations $0 $0 $0 $30,970 $32,132 $35,562 $27,281

Budget Activity Total $0 $0 $0 $30,970 $32,132 $35,562 $27,281

FTE 0 0 0 51 61 65 36
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2.1.3 – Research and Analysis Center Budget and Performance Plan

Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2016 FY 2017 FY 2018 FY 2012 -

Actual Actual Actual Actual Actual Target Target Target

FY 2016

Trend

Number of Research and 

Analysis Publications 

Made Public Year-to-Date

N/A 10 15 34 24 25 28 35

Number of monitors 

editions, policy analysis, 

and dashboards produced 

for monitoring threats to 

financial stability

N/A N/A N/A 21 34 12 34 TBD

Key: DISC - Discontinued; B – Baseline, I - Indicator

1) Research and Analysis Center includes only staffing, outside work arrangements, and contracting related to annual report 

production. Costs associated with data, information systems, and analytical tools are under the Data and Technology Centers.

D – Operations and Support Services

($20,337,000 from Assessments):

The category “Operations and Support Services” contains the activities of the Director’s Office, 

Operations, External Affairs, and Chief Counsel. The category includes support provided 

through a shared services model and reimbursable arrangements with Treasury’s Departmental 

Offices; personnel benefits services from the Office of the Comptroller of the Currency; and 

services from Treasury’s Bureau of the Fiscal Service Administrative Resource Center, including 

services related to human resources, procurement, travel, and financial management. 

2.1.4 – Operations and Support Services Budget and Performance Plan

The OFR assesses its performance measures annually and revises them, if appropriate, to ensure 

their continued usefulness for management decision-making and improved results.

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

This website contains a digital copy of this document.

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column3 Column82 Column2

Expense/Obligations $3,398 $4,733 $7,700 $10,396 $14,239 $17,719 $11,573

Budget Activity Total $3,398 $4,733 $7,700 $10,396 $14,239 $17,719 $11,573

FTE 11 26 33 43 54 55 38

Dollars in Thousands

 Resource Level FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 Column3

Expense/Obligations $16,873 $22,953 $28,626 $26,110 $32,026 $28,969 $20,337

Budget Activity Total $16,873 $22,953 $28,626 $26,110 $32,026 $28,969 $20,337

FTE 9 35 43 49 56 58 22