Message from the Secretary of the Treasury 

Dear Member: 

Over the past six years, the Department of the Treasury has supported President Obama’s efforts 

to rebuild and grow the nation’s economy after the worst recession since the Great Depression. 

Today the economy is creating jobs at the fastest pace since the 1990s and the unemployment 

rate has fallen to the lowest level in more than six years. While the recovery has strengthened, 

work remains to sustain this progress and make sure the benefits of growth are broadly shared by 

all Americans. 

The Fiscal Year (FY) 2016 President’s Budget requests $14.3 billion for Treasury’s operating 

bureaus and $2.9 billion for our International Programs. The proposal identifies savings across 

the Department, as well as targeted investments in key areas that will help strengthen our 

nation’s long-term economic and fiscal position. 

The request makes strategic investments in the Internal Revenue Service (IRS) to improve 

service to tens of millions of taxpayers and reduce the deficit through more effective tax 

administration. The IRS collects more than 90 percent of federal revenue and interacts with 

virtually every American. Despite the crucial role of the IRS in our government, FY 2015 marks 

five years of Congress reducing the bureau’s funding, which is now $1.2 billion lower than in FY 

2010. These reductions are costing the taxpayer billions of dollars in lost enforcement revenue 

each year. The FY 2016 request restores these funds and allows the IRS to provide quality 

service that American taxpayers deserve. 

The request also includes funding for select high priorities such as implementing the Digital 

Accountability and Transparency Act of 2014, supporting lending to small businesses, and 

increasing the availability of healthy food options for low-income communities via the Healthy 

Food Financing Initiative. 

Treasury’s International Programs request aims to strengthen our national security, expand 

markets for American businesses, and address global challenges, including poverty, conflict, 

climate change, and food insecurity. The request also proposes legislation to increase the U.S. 

quota in the International Monetary Fund and reduce U.S. participation in the New 

Arrangements to Borrow while preserving the veto power of the United States and our influence 

in this important institution. 

The FY 2016 Congressional Budget Justification includes the information required in the Annual 

Performance Report. I have validated the accuracy, completeness, and reliability of the 

performance data in this report. 

Sincerely, 

Jacob J. Lew 
U.S. Department of the Treasury

FY 2016 Budget in Brief

Summary of FY 2016 President’s Budget

Executive Summary....................................................................................................................................... 1

Summary Tables and Charts

FY 2016 President’s Budget by Function ................................................................................................ 1

FY 2016 President’s Budget by Strategic Goal ....................................................................................... 8

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing ............................................................. 9

Summary of FY 2016 Increases and Decreases................................................................................... 10

Appropriated Accounts – Bureau Program Detail

Departmental Offices Salaries and Expenses ............................................................................................. 11

Department-wide Systems and Capital Investment Program....................................................................... 19

Office of Inspector General.......................................................................................................................... 21

Special Inspector General for TARP............................................................................................................ 27

Treasury Inspector General for Tax Administration ..................................................................................... 31

Community Development Financial Institutions Fund.................................................................................. 37

Financial Crimes Enforcement Network....................................................................................................... 43

Alcohol and Tobacco Tax and Trade Bureau .............................................................................................. 47

Fiscal Service .............................................................................................................................................. 53

Internal Revenue Service ............................................................................................................................ 61

Non-Appropriated Accounts – Bureau Program Detail

Office of Financial Stability .......................................................................................................................... 81

State Small Business Credit Initiative .......................................................................................................... 85

Office of Financial Research....................................................................................................................... 87

Financial Stability Oversight Council .......................................................................................................... 91

Bureau of Engraving and Printing................................................................................................................ 93

United States Mint ....................................................................................................................................... 99

Office of the Comptroller of the Treasury................................................................................................... 103

Treasury International Programs

International Programs .............................................................................................................................. 109

Supplemental Information

Summary of FY 2016 Appropriations Language........................................................................................ 113

Mandatory Funding Levels for the FY 2016 President’s Budget – Treasury Chapter ................................ 123

Total Treasury Department Mandatory Funding ........................................................................................ 124

The information presented in the FY 2016 Budget in Brief is accurate and complete as of 

February 2, 2015. Any updated information will be reflected in the budget available on the 

Treasury Department website, Treasury.gov.
Mission Statement

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

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

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

government’s finances and resources effectively.

Executive Summary

FY 2016 President’s Budget by Function

Dollars in thousands

1

In FY 2015, TFI was established as a separate appropriation. The Administration includes TFI activities in the Departmental 

Offices Salaries and Expenses appropriation in FY 2016.

 

FY 2014 FY 2015 FY 2016 Increase/ Percent

Enacted Enacted Request Decrease Change

Management & Financial $1,338,388 $1,343,704 $1,397,680 $53,976 4.0%

Departmental Offices Salaries and Expenses $312,400 $210,000 $331,837 $121,837 58.0%

Terrorism and Financial Intelligence (TFI) $0 $112,500 $0 ($112,500) -100.0%

Departmental Offices Salaries and 

Expenses1 $312,400 $322,500 $331,837 $9,337 2.9%

Department-wide Systems and Capital $2,725 $2,725 $10,690 $7,965 292.3%

Office of Inspector General $34,800 $35,351 $35,416 $65 0.2%

Treasury IG for Tax Administration $156,375 $158,210 $167,275 $9,065 5.7%

Special Inspector General for TARP $34,923 $34,234 $40,671 $6,437 18.8%

Community Development Financial Institutions $226,000 $230,500 $233,523 $3,023 1.3%

Financial Crimes Enforcement Network $112,000 $112,000 $112,979 $979 0.9%

Alcohol and Tobacco Tax and Trade Bureau $99,000 $100,000 $106,439 $6,439 6.4%

Program Cap Adjustment Included in IRS $0 $0 ($5,000) ($5,000) NA

Net, Alcohol and Tobacco Tax and Trade $99,000 $100,000 $101,439 $1,439 1.4%

Bureau of the Fiscal Service $360,165 $348,184 $363,850 $15,666 4.5%

Tax Administration $11,290,612 $10,945,000 $12,931,071 $1,986,071 18.1%

IRS Taxpayer Services $2,156,554 $2,156,554 $2,408,803 $252,249 11.7%

IRS Enforcement $5,022,178 $4,860,000 $5,399,832 $539,832 11.1%

IRS Operations Support $3,798,942 $3,638,446 $4,743,258 $1,104,812 30.4%

IRS Business Systems Modernization $312,938 $290,000 $379,178 $89,178 30.8%

Less, IRS Cap Adjustment $0 $0 $667,297 $667,297 NA

IRS Total, Excluding Cap Adjustment $11,290,612 $10,945,000 $12,263,774 $1,318,774 12.0%

Subtotal, Treasury Appropriations Committee $12,629,000 $12,288,704 $14,328,751 $2,040,047 16.6%

Treasury Forfeiture Fund ($836,000) ($869,000) ($875,000) ($6,000) 0.7%

Total, Treasury Appropriations Committee $11,793,000 $11,419,704 $13,453,751 $2,034,047 17.8%

Total, Cap Adjustment $0 $0 $667,297 $667,297 NA

Total, Treasury Appropriations Committee 

Excluding Cap Adjustment $11,793,000 $11,419,704 $12,786,454 $1,366,750 12.0%

Treasury International Programs $2,690,229 $2,454,304 $2,901,846 $447,542 18.2%

Economic Growth, National Security and Poverty $2,075,449 $1,999,804 $2,063,853 $64,049 3.2%

Food Security $163,000 $30,000 $74,930 $44,930 149.8%

World Bank Environmental Trust Funds $428,280 $401,000 $548,563 $147,563 36.8%

Debt Relief $0 $0 $124,500 $124,500 NA

Office of Technical Assistance (OTA) $23,500 $23,500 $28,000 $4,500 19.1%

Middle East Transition Fund $0 $0 $0 $0 NA

International Monetary Fund $0 $0 $62,000 $62,000 NA

Total $14,483,229 $13,874,008 $16,355,597 $2,481,589 17.9%

FY 2015 to FY 2016

Department of the Treasury - Budget in Brief 1
Overview

The Fiscal Year (FY) 2016 President’s 

Budget requests $14.3 billion in annual 

discretionary appropriations for the 

Department of the Treasury’s operating 

accounts. Of this amount, $667 million is 

provided through a program integrity cap 

adjustment for tax enforcement activities 

estimated to yield net deficit reduction of $41 

billion over the next ten years. Treasury 

continues to identify operational savings

across programs, while making key 

investments to foster economic growth and 

opportunity, fight financial crimes, protect 

taxpayers and promote fair and effective 

revenue collection, encourage small business 

lending, support struggling homeowners, and 

responsibly manage the U.S. government’s 

financial resources. The Budget also proposes 

a permanent cancellation of $875 million in 

Forfeiture Fund balances. In addition, the 

Budget proposes $2.9 billion for Treasury’s 

International programs in order to promote 

our national security, open new markets for 

U.S. exporters, and address key global 

challenges such as food security and the 

environment. 

The Budget aligns with the Department’s 

FY 2014 to 2017 Strategic Plan, Agency 

Priority Goals, and Federal Priority Goals.

1

The Congressional Justification also serves as 

the Department’s Annual Performance Report 

and Plan. 

1 Per the GPRA Modernization Act, P.L. 111-352, requirement to 

address Federal Goals in the agency Strategic Plan and Annual 

Performance Plan, please refer to Performance.gov for information 

on Federal Priority Goals and the agency's contributions to those 

goals, where applicable.

Treasury Strategic Goal: Promote 

Domestic Economic Growth and Stability 

while Continuing Reforms to the Financial 

System

Treasury is committed to promoting economic 

growth that allows citizens and businesses to 

have more confidence in the safety and 

soundness of the financial system. 

Supporting Small Businesses

The Small Business Jobs Act of 2010 created 

the Small Business Lending Fund (SBLF) and 

the State Small Business Credit Initiative 

(SSBCI). The SBLF helps increase the 

availability of credit to small businesses by 

providing capital to community banks and 

community development loan funds with 

assets under $10 billion. In its first round of 

funding, SSBCI allocated $1.5 billion to 

strengthen state programs that leverage 

private capital and support lending to small 

businesses and small manufacturers that are 

creditworthy but unable to access the credit 

needed to grow and create jobs in their 

communities. From FY 2011 through 

FY 2013, SSBCI programs in all 50 states 

supported over $4.1 billion in loans and 

investments to 8,500 small businesses across 

the country — creating or saving more than 

95,000 American jobs, as reported by the 

small businesses who received the loans and 

investments.

The Budget proposes a new authorization of 

$1.5 billion for SSBCI to build on the 

momentum of the program's first round, 

strengthen the federal government's 

relationships with state economic 

development agencies, and provide capital to 

America's diverse community of 

entrepreneurs. This additional $1.5 billion 

would be awarded in two allocations: $1 

billion awarded on a competitive basis to 

states best able to target local market needs, 

promote inclusion, attract private capital for 

Department of the Treasury - Budget in Brief 2
start-up and scale-up businesses, strengthen 

regional entrepreneurial ecosystems, and 

evaluate results; and $500 million awarded by 

a formula based on economic factors such as 

job losses and pace of economic recovery. 

Supporting Economic Growth and 

Opportunity

The Budget proposes $233.5 million for the 

Community Development Financial 

Institutions (CDFI) Fund to promote 

economic development investments in lowincome and underserved communities. Of the 

total request, $35 million — an increase of 

$13 million from FY 2015 — for the 

Administration’s Healthy Food Financing 

Initiative will support increased availability of 

affordable, healthy food options for 

Americans living in food deserts.

 

The CDFI Fund will begin administering in 

FY 2016 a second round of awards under the 

Capital Magnet Fund (CMF). In December 

2014, the Federal Housing Finance Agency 

(FHFA) directed Fannie Mae and Freddie 

Mac to begin allocating funds to CMF as 

authorized by the Housing and Economic 

Recovery Act of 2008 (HERA). The purpose 

of CMF is to make awards to CDFIs and 

qualified nonprofit housing providers to 

increase capital investment for the 

development, preservation, rehabilitation, and 

purchase of affordable housing for lowincome families and for related economic 

development activities. 

The Budget proposes legislation to extend the 

CDFI Bond Guarantee program, established 

by the Small Business Jobs Act of 2010, 

through FY 2017 with an annual guarantee

level not to exceed $1 billion to provide a 

source of long-term capital to CDFIs that 

support lending in underserved communities. 

The Budget also proposes reforms to the 

program to increase participation and ensure 

credit-worthy CDFIs have access to this 

important source of capital while continuing 

to maintain strong protections against credit 

risk. The CDFI Bond Guarantee program will 

continue to operate at no budgetary cost for 

new guarantees issuances. 

Treasury proposes to implement a new $300 

million fund from mandatory appropriations 

to support Pay for Success projects. A 

growing number of state and local 

governments are using the Pay for Success 

model to finance preventive social programs 

that can provide savings to the federal 

government while improving outcomes for 

families and communities. Emerging Pay for 

Success projects are hampered by an inability 

to leverage savings across both levels of 

government and also government programs 

and by a lack of rigorous data. A Pay for 

Success fund will be designed to ensure that 

taxpayers get better returns for funds 

expended and government assets are protected 

by supporting for projects that show 

measurable outcomes resulting in greater 

federal savings and programmatic efficiency. 

Improving Retirement Security 

Many Americans lack access to workplace 

retirement savings plans, which is usually the 

most effective way to save for 

retirement. The risk of an insecure retirement 

is especially great for women, minorities, and 

low-income Americans. Treasury is 

supporting the Administration’s effort to 

improve retirement security by implementing 

a safe, simple, and affordable “starter” 

retirement savings program called myRA. 

Launched in December 2014 as a pilot for a 

group of small, medium and large employers, 

myRA is a retirement savings option with a 

new type of Roth IRA investment that has no 

start-up cost, no fees and no minimum 

contributions. The investment is backed by 

the U.S. Treasury and the account carries no 

risk of losing money. Through regular, 

automatic contributions from a paycheck, 

Department of the Treasury - Budget in Brief 3
myRA is a safe, simple and affordable way 

for individuals to start saving for retirement. 

Implementing Financial Reform

The Budget provides resources to continue 

implementation of the comprehensive 

financial reforms included in the Dodd-Frank 

Wall Street Reform and Consumer Protection 

Act. These reforms place tougher limits on 

risk-taking by financial institutions in order to 

promote financial stability and protect the 

American people. 

In FY 2016, Treasury will strengthen the 

capabilities of the Federal Insurance Office

and invest in enhanced coordination and 

oversight of regulatory reform through the 

Financial Stability Oversight Council 

(FSOC). The Budget also reinvests savings to 

support U.S. efforts to encourage international 

trade and investment partners to implement 

corresponding financial reforms and 

safeguards — a key element to preventing or 

mitigating future crises. 

Winding Down the Troubled Asset Relief 

Program

The actions taken under the Troubled Asset 

Relief Program (TARP), along with other 

emergency measures put in place by the 

Board of Governors of the Federal Reserve 

System and the Federal Deposit Insurance 

Corporation (FDIC), helped prevent the 

collapse of the U.S. financial system and 

stabilize the economy during the recent 

financial crisis. As a result of careful 

stewardship of the program and improved 

financial conditions, the ultimate cost of 

TARP investments to taxpayers has dropped 

from an estimated $341 billion in FY 2009 to 

$37.4 billion as of September 30, 2014 ($20

billion when Treasury’s additional AIG 

receipts are included). While winding down 

investment programs, Treasury continues 

TARP programs designed to help struggling 

homeowners avoid foreclosure. 

Stabilizing the Housing Market

Using authority granted under the Emergency 

Economic Stabilization Act (EESA), Treasury 

established two central housing programs 

under TARP, the Making Home Affordable 

(MHA) program and the Hardest Hit Fund 

(HHF). Treasury also used its authority to 

support the Federal Housing Administration’s 

(FHA) Short Refinance Program. In total, 

more than 2.2 million homeowner assistance 

actions have taken place under MHA 

programs. The Hardest Hit Fund provides 

$7.6 billion to 18 states and the District of 

Columbia to provide assistance to struggling 

homeowners through locally tailored 

programs administered by each respective

housing finance agency. To date, 19 housing 

finance agencies have drawn a total of $4.8 

billion under the HHF. 

Recently, Treasury and HUD announced

enhancements to MHA programs designed to 

better assist struggling homeowners and 

communities still recovering from the effects 

of the financial crisis. The enhancements will 

help motivate borrowers to continue making 

modified mortgage payments, strengthen the 

safety net for homeowners facing continuing 

financial hardships, and help homeowners in 

MHA programs build equity in their homes, 

an important element in stabilizing distressed 

neighborhoods. 

Treasury Strategic Goal: Enhance U.S. 

Competitiveness and Job Creation, and 

Promote International Financial Stability 

and More Balanced Global Growth

Encouraging International Economic 

Growth and Stability

Treasury works bilaterally and multilaterally 

to foster strong, sustainable, and balanced 

global growth; support free trade and open 

markets; promote a level playing field for 

U.S. financial institutions; maintain stable 

international financial markets; encourage 

Department of the Treasury - Budget in Brief 4
foreign investment in the United States while 

protecting national security; and use 

leadership positions in international financial 

institutions to pursue U.S. strategic and 

economic policy goals. 

 

The Department’s $2.9 billion FY 2016

International Programs Budget request 

provides a cost effective way to promote our 

national security, expand markets for 

American businesses, and address key global 

challenges, including poverty, conflict, 

climate change, and food insecurity. The 

request includes funding for capital increases 

and replenishments at multilateral 

development banks, as well as contributions 

to several targeted funds and funding for 

Treasury’s Office of Technical Assistance. 

A well-resourced and effective IMF is 

indispensable to protecting the health of the 

U.S. economy, enhancing the prosperity of 

American workers, and achieving our national 

security interests. Our request proposes 

appropriations and authorization language to 

increase the U.S. quota in the IMF and 

simultaneously reduce, by an equal amount, 

U.S. participation in the IMF’s New 

Arrangements to Borrow. This language is 

necessary to complete IMF reforms that 

preserve the U.S. veto and our influence at the 

IMF. These reforms do not increase the 

current U.S. financial commitment to the 

IMF. We are prepared to work with Congress 

on funding approaches that secure passage of 

these critical reforms as soon as possible.

Treasury Strategic Goal: Fairly and 

Effectively Reform and Modernize Federal 

Financial Management, Accounting, and 

Tax Systems 

Data Transparency 

The Budget provides funding for efforts to 

increase transparency and accountability in 

federal financial management and implement 

the Digital Accountability Transparency Act 

of 2014 (DATA Act). The DATA Act 

continues the reporting required under the 

Federal Funding Accountability and 

Transparency Act; requires additional federal

spending data to be displayed on 

USAspending.gov; and requires establishment 

of government-wide financial data standards 

for any federal funds made available to or

expended by federal agencies and entities 

receiving federal funds. Treasury is 

committed to implementing the DATA Act in 

a way that not only increases spending 

transparency but also improves government 

decision-making and increased operational 

efficiency through better access to data.

Internal Revenue Service

The Internal Revenue Service (IRS) collects 

more than 90 percent of federal revenue and 

interacts with virtually every American. 

Resources invested in the bureau represent a 

smart investment for taxpayers, returning 

nearly $4 for every dollar invested. In recent 

years, a lack of sufficient funding for the IRS 

has had major implications for taxpayers and 

the tax system. Despite IRS’s crucial role in 

our government, FY 2015 marks five years of 

Congress reducing the agency’s funding, 

which is now $1.2 billion lower than in 

FY 2010. As a result, taxpayers face longer 

wait times on the phone, and it takes longer

for the IRS to respond to taxpayer 

correspondence. A sustained deterioration in 

taxpayer service combined with reduced 

enforcement activity could create serious 

long-term risk for the U.S. tax system, which 

relies on voluntary compliance. The IRS 

supports this compliance by addressing 

millions of taxpayers’ questions in their 

efforts to comply with the law. 

The Budget provides the IRS with $12.3 

billion in base discretionary resources, an 

increase of $1.3 billion from FY 2015, to

begin restoring taxpayer services to 

Department of the Treasury - Budget in Brief 5
acceptable levels. Funds are also provided to 

continue major IT projects which aim to 

protect taxpayer information, modernize 

antiquated systems, continue development of 

a state-of-the-art online taxpayer experience, 

and build efficiencies throughout the agency 

while continuing to fund system development 

due to new legislative mandates including the 

Foreign Account Tax Compliance Act 

(FATCA) and the Affordable Care Act 

(ACA). 

The Budget also proposes a $667 million cap 

adjustment to support program integrity 

efforts aimed at restoring enforcement of 

current tax laws to acceptable levels and to 

help reduce the tax gap. This multi-year 

effort is expected to generate $60 billion in 

additional revenue over the next ten years at a 

cost of $19 billion, thereby reducing the 

deficit by $41 billion. The targeted 

investments made in FY 2016 are expected to

generate nearly $2.8 billion in annual revenue 

once fully operationalized in FY 2018, 

returning nearly $6 to the government for 

every dollar invested for these initiatives. 

Restoring Gulf Coast Communities 

The Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) established the Gulf 

Coast Restoration Trust Fund (Trust Fund) to 

maintain the civil and administrative penalties 

arising from the Deepwater Horizon oil 

spill. Treasury serves oversight, 

administrative, compliance, and audit roles to 

help ensure that funds are expended as 

required by the RESTORE Act, and works 

with the Gulf Coast Restoration Council to 

administer these funds in supporting 

economic and environmental restoration in 

the Gulf Coast region. The Budget proposes 

legislation that will allow Departmental 

Offices to draw resources from the Trust Fund 

to carry out its responsibilities.

Treasury Strategic Goal: Safeguard the 

Financial System and Use Financial 

Measures to Counter National Security 

Threats 

The Office of Terrorism and Financial 

Intelligence (TFI) oversees and marshals 

Treasury’s intelligence, enforcement, and 

economic sanctions functions in support of 

U.S. national security policies and interests. 

The Budget provides $109.3 million to 

support these efforts. 

Treasury is leading the U.S. effort to 

undermine the Islamic State of Iraq and the 

Levant’s (ISIL) finances as part of the 

comprehensive U.S. strategy to disrupt, 

degrade, and ultimately defeat the terrorist 

group. Representative of the comprehensive 

approach to counter ISIL, Treasury is working 

closely with the State Department, the 

Department of Defense, domestic and foreign 

law enforcement, the intelligence community, 

and the international community to undermine 

disrupt ISIL’s revenue streams; to restrict

ISIL’s access to the international financial 

system; and impose sanctions on ISIL’s 

senior leadership and financial facilitators to 

disrupt its ability to operate. 

Safeguarding the Financial System

The Budget provides $113 million for the 

Financial Crimes Enforcement Network 

(FinCEN) to support Treasury’s efforts to 

safeguard the financial system from illicit use, 

combat money laundering, and promote 

national security through the collection, 

analysis, and dissemination of financial 

intelligence and strategic use of financial 

authorities. FinCEN is applying its 

information gathering, analytic, and policy 

resources, along with its international 

relationships with foreign financial 

intelligence units, to combat threats posed by

groups such as ISIL. FinCEN’s work is 

focused on the collection, analysis, and 

Department of the Treasury - Budget in Brief 6
dissemination of financial intelligence 

information. 

Collection of Major Asset Forfeitures 

Supports Deficit Reduction

The Treasury Forfeiture Fund received over 

$833.5 million in forfeitures and recoveries in 

FY 2014. The success of Treasury’s asset 

forfeiture program allows the Department to 

make priority investments in law enforcement 

and national security, without requesting 

additional resources from taxpayers. Further, 

it enables Treasury to contribute to deficit 

reduction with a proposed permanent 

cancellation of $875 million from the 

Forfeiture Fund’s unobligated balances in FY 

2016. 

Improving the Cybersecurity of Our 

Nation’s Financial Sector 

Cyber risks to financial institutions and 

markets are growing in both frequency and 

sophistication. A cyber-attack by a state or 

non-state actor could paralyze our economy 

and cause significant long-term damage. 

Treasury is working to reduce the risks from 

cyber-attacks by helping to improve the 

financial sector’s resilience to such attacks 

and by investing in Treasury’s own defenses 

and infrastructure. 

Treasury Strategic Goal: Create a 21stCentury Approach to Government by 

Improving Efficiency, Effectiveness, and 

Customer Interaction

Treasury will continue to manage Treasury’s 

resources as effectively and efficiently as 

possible, creating the best value for all 

constituents. 

Improving Digital Services

The success rate of government digital 

services is improved when agencies have 

digital service experts on staff with modern 

digital product design, software engineering, 

and product management skills. The FY 2016 

Budget includes funding to establish a 

Treasury Digital Service team that will focus 

on transforming the Department’s digital 

services with the greatest impact to taxpayers 

and businesses so they are easier to use and 

more cost-effective to build and maintain. 

Increasing Shared Services

Treasury will continue to focus on achieving 

cost savings for American taxpayers, 

modernizing operations, and increasing 

productivity by governing strategically, 

working smarter, and leveraging technology. 

Increasing the use of shared services and 

better leveraging strategic sourcing for federal 

procurement will help achieve these goals. 

Assess the Future of Currency, Including 

the Penny 

The production and circulation of currency in 

the United States have been largely 

unchanged for decades, despite the growth in 

electronic financial transactions. Treasury is 

continuing its comprehensive review of U.S. 

currency, including a review of both the 

production and use of coins, in order to 

efficiently promote commerce in the 21st 

century. This review includes alternative 

metals, the United States Mint facilities, and 

consumer behavior and preferences. Treasury 

expects to announce the results of its review 

this fiscal year. 

 

The Budget includes a plan to relocate the 

Bureau of Engraving and Printing’s 

Washington, D.C. facility to a facility more 

appropriate for modern currency production. 

Savings Proposals 

As a result of Treasury’s ongoing efforts to 

improve efficiency, reduce costs, and 

streamline operations, the Department has 

been able to propose over $1.1 billion in 

savings in its budget submissions over the 

past five years. 

Department of the Treasury - Budget in Brief 7
FY 2016 President's Budget by Strategic Goal

(Dollars in thousands) 

 

Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $ Direct $ Reimb. $

Management & Financial 503,934 42,007 85,621 24,399 531,245 229,269 248,675 69,782 28,205 7,717 1,397,680 373,175 

Departmental Offices Salaries and Expenses 68,010 17,565 85,621 24,399 45,995 16,010 114,696 55,782 17,515 7,717 331,837 121,474 

Department-wide Systems and Capital Investments Program 10,690 10,690 0 

Office of Inspector General 14,416 2,000 21,000 11,000 35,416 13,000 

Treasury Inspector General for Tax Administration 167,275 1,500 167,275 1,500 

Special Inspector General for TARP 40,671 40,671 0 

Community Development Financial Institutions Fund 233,523 0 233,523 0 

Financial Crimes Enforcement Network 112,979 3,000 112,979 3,000 

Alcohol and Tobacco Tax and Trade Bureau 48,654 3,024 52,785 3,276 101,439 6,300 

Bureau of the Fiscal Service 113,076 21,418 250,774 206,483 363,850 227,901 

Tax Administration 0 0 0 0 12,931,071 125,275 0 0 0 0 12,931,071 125,275 

IRS Taxpayer Services 2,408,803 34,600 2,408,803 34,600 

IRS Enforcement 5,399,832 37,675 5,399,832 37,675 

IRS Operations Support 4,743,258 53,000 4,743,258 53,000 

Business Systems Modernization 379,178 379,178 0 

Total, Treasury Appropriations Committee 503,934 42,007 85,621 24,399 13,462,316 354,544 248,675 69,782 28,205 7,717 14,328,751 498,450 

Treasury International Programs 2,901,846 2,901,846 0 

Total, Appropriated Level 503,934 42,007 2,987,467 24,399 13,462,316 354,544 248,675 69,782 28,205 7,717 17,230,597 498,450 

Non-Appropriated Bureaus 176,191 5,678,045 0 0 0 0 0 21,137 0 0 176,191 5,699,182 

Office of Financial Stability (Administrative Account) 155,066 155,066 0 

Small Business Lending Fund Program (Administrative) 15,039 15,039 0 

State Small Business Credit Initiative (Administrative) 6,086 6,086 0 

Financial Stability Oversight Council 19,316 0 19,316 

Office of Financial Research 108,105 0 108,105 

Bureau of Engraving and Printing 863,940 0 863,940 

United States Mint 3,595,307 0 3,595,307 

Office of the Comptroller of the Currency 1,091,377 21,137 0 1,112,514 

Subtotal, Direct $ 680,125 2,987,467 13,462,316 248,675 28,205 17,406,788 

Subtotal, Reimbursable $ 5,720,052 24,399 354,544 90,919 7,717 6,197,632 

Total, Treasury Level 6,400,178 3,011,867 13,816,860 339,594 35,922 23,604,420 

1/ Total does not include the proposed $875 million Forfeiture Fund permanent cancellation. 

Total Treasury Goal/Objective

Promote domestic economic 

growth and stability while 

continuing reforms of the 

financial system

Enhance U.S. competitiveness 

and job creation, and promote 

international financial stability 

and more balanced global 

growth

Fairly and effectively reform 

and modernize federal 

financial management, 

accounting, and tax systems

Safeguard the financial 

system and use financial 

measures to counter national 

security threats

Create a 21st-century 

approach to government by 

improving efficiency, 

effectiveness and customer 

interaction

Department of the Treasury - Budget in Brief 8
Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)

(Dollars in Thousands)

 2014 Actual 2015 Enacted 2016 President's Budget

Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total

Departmental Offices Salaries and Expenses 1,154 157 1,311 781 184 965 1,312 163 1,475

Terrorism and Financial Intelligence 0 0 0 377 39 416 0 0 0

Office of Inspector General 13 166 179 194 19 213 194 19 213

Treasury Inspector General for Tax Administration 740 2 742 835 2 837 859 2 861

Special Inspector General for TARP 165 0 165 192 0 192 192 0 192

Community Development Financial Institutions Fund 76 0 76 79 0 79 87 0 87

Financial Crimes Enforcement Network 279 0 279 345 1 346 343 1 344

Alcohol and Tobacco Tax and Trade Bureau 460 10 470 473 10 483 509 10 519

Bureau of the Fiscal Service 1,676 714 2,390 1,636 714 2,350 1,586 701 2,287

Internal Revenue Service 84,142 619 84,761 81,473 730 82,203 90,718 768 91,486

Subtotal, Treasury Appropriated Level 88,705 1,668 90,373 86,385 1,699 88,084 95,800 1,664 97,464

Office of Financial Stability (Administrative Account) 99 22 121 87 20 107 75 19 94

Small Business Lending Fund Program 15 0 15 19 0 19 19 0 19

State Small Business Credit Initiative 10 0 10 11 0 11 9 0 9

Office of Financial Research 189 0 189 257 0 257 301 0 301

Working Capital Fund 0 5 5 0 0 0 0 0 0

Treasury Franchise Fund 0 1,460 1,460 0 1,643 1,643 0 1,786 1,786

Bureau of Engraving and Printing 0 1,844 1,844 0 1,944 1,944 0 1,924 1,924

United States Mint 0 1,661 1,661 0 1,874 1,874 0 1,774 1,774

Office of the Comptroller of the Currency 0 3,891 3,891 0 3,959 3,959 0 3,959 3,959

Pay for Success 0 0 0 0 0 0 14 0 14

Terrorism Insurance Program 6 0 6 10 0 10 10 0 10

Total 89,024 10,551 99,575 86,769 11,139 97,908 96,228 11,126 107,354

1/ In a few cases, FTE numbers have been updated since data entry was completed in the OMB database. The numbers presented in this table are the most current estimates.

2/ A portion of Fiscal Service's Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996.

3/ IRS FY 2014-2016 Direct FTE include 3 FTE funded from the Federal Highway Transportation Authority Account; IRS FY 2014 Direct FTE Actuals include 6 positions funded 

through a transfer from the CMS HIRIF account for the Affordable Care Act. IRS FY 2016 Direct FTE includes 858 FTE funded from User Fees.

Department of the Treasury - Budget in Brief 9
Summary of FY 2016 Increases and Decreases

(Dollars in Thousands)

 Offsetting Fees/ Total, Treasury

 Cancellations/ Appropriations

 DO DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB Fiscal 

Service IRS Total Rescissions Committee

FY 2015 Enacted $322,500 $2,725 $35,351 $158,210 $34,234 $230,500 $112,000 $100,000 $348,184 $10,945,000 $12,288,704 ($869,000) $11,419,704

Adjustment to Request ($13,522) $0 ($484) $0 $0 $0 $0 $0 $0 $0 ($14,006) $0 ($14,006)

Maintaining Current Levels 

(MCLs) $5,251 $0 $549 $2,557 $772 $437 $1,896 $1,687 $5,888 $200,677 $219,714 $0 $219,714

Non-Recurring Costs ($3,255) ($2,725) $0 $0 $0 ($523) $0 $0 $0 $0 ($6,503) $0 ($6,503)

Efficiency Savings ($395) $0 $0 ($84) $0 ($84) ($726) ($248) ($8,480) ($18,431) ($28,448) $0 ($28,448)

Other Adjustments $0 $0 $0 $0 $5,665 $0 $0 $0 $0 $0 $5,665 $0 $5,665

Adjustments to Base ($11,921) ($2,725) $65 $2,473 $6,437 ($170) $1,170 $1,439 ($2,592) $182,246 $176,422 $0 $176,422

FY 2016 Base $310,579 $0 $35,416 $160,683 $40,671 $230,330 $113,170 $101,439 $345,592 $11,127,246 $12,465,126 ($869,000) $11,596,126

Program Decreases $0 $0 $0 $0 $0 ($18,000) ($191) ($1,000) ($1,530) $0 ($20,721) $0 ($20,721)

Program Reinvestments $700 $0 $0 $0 $0 $0 $0 $0 $0 $16,025 $16,725 $0 $16,725

Program Increases $20,558 $10,690 $0 $6,592 $0 $21,193 $0 $1,000 $19,788 $1,120,503 $1,200,324 $0 $1,200,324

Program Integrity Cap 

Adjustment $0 $0 $0 $0 $0 $0 $0 $0 $0 $667,297 $667,297 $0 $667,297

Subtotal, Program Changes $21,258 $10,690 $0 $6,592 $0 $3,193 ($191) $0 $18,258 $1,803,825 $1,863,625 $0 $1,863,625

Change to Offsetting 

Fees/Cancellations/Rescissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($6,000) ($6,000)

FY 2016 President's Budget $331,837 $10,690 $35,416 $167,275 $40,671 $233,523 $112,979 $101,439 $363,850 $12,931,071 $14,328,751 ($875,000) $13,453,751

1/ Total resources for FY 2016 includes a $875 million Forfeiture Fund cancellation.

2/ Total Efficiency Savings for Treasury is $28.456 million. BEP and Mint savings of $7.757 million are not reflected in the chart above.

Department of the Treasury - Budget in Brief 10
Departmental Offices

Program Summary by Budget Activity

Dollars in thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request 2/ $ Change % Change

DO S&E

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

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

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

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

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

TFI

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Summary 

Departmental Offices (DO) is the headquarters 

bureau for the Department of the Treasury. It 

provides leadership in economic and financial 

policy, financial intelligence and enforcement, 

and general management. Treasury utilizes 

effective management, policies, and leadership 

to protect our national security through 

targeted financial actions, to promote the 

stability of the nation's financial markets, and 

to ensure the Government's ability to collect 

revenue and fund its operations. 

The Department’s strategic plan for FY 2014-

2017 guides program and budget decisions for 

DO. The FY 2016 Budget request supports 

DO’s leading role in accomplishing the 

following Treasury strategic goals:

• Promote domestic economic growth and 

stability while continuing reforms of the 

financial system; 

• Enhance U.S. competitiveness and job 

creation, and promote international 

financial stability and more balanced 

global growth; 

• Fairly and effectively reform and 

modernize Federal financial management, 

accounting, and tax systems; 

• Safeguard the financial system and use 

financial measures to counter national 

security threats; and 

Department of the Treasury - Budget in Brief 11
• Create a 21st-Century approach to 

government by improving efficiency, 

effectiveness and customer interaction. 

Total resources requested to support DO 

activities for FY 2016 are $453,311,000 

including $331,837,000 from direct 

appropriations and $121,474,000 from 

offsetting collections and reimbursable 

programs. 

DO FY 2016 Budget Highlights

Dollars in Thousands

Departmental Offices - S & E FTE Amount

FY 2015 Enacted 1,158 $322,500

DO S&E 781 $210,000

TFI 377 $112,500

Changes to Base:

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

Fund RESTORE Act Administrative 

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

Sanctions-related workload, TFI 

contract support, and secure space 

requirements - ($4,022)

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

FERS Contribution Increase - $670

Pay-Raise - $1,868

Pay Annualization - $478

Non-Pay - $2,235

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

ARRA 1603/NREL Contract - ($800)

Government Security Operations Center - ($2,200)

DO Local Area Network Enhancements - ($255)

Efficiency Savings: (2) ($395)

TFI FOIA Contract Consolidation - ($221)

Management Savings (2) ($174)

Other Adjustments 103 -

Technical FTE Adjustment 103 -

Subtotal Changes to Base 87 ($11,921)

Total FY 2016 Base 1,245 $310,579

Program Changes:

Reinvestments: 4 $700

International Affairs G20 Financial 

Stability Board Staff 4 $700

Program Increases: 63 $20,558

Digital Service Team 41 $10,000

Financial Innovation Lab 1 $2,000

International Financial Regulatory

Reform 2 $400

Multiemployer Pension Reform 6 $3,000

Office of the General Counsel Staffing 4 $955

Office of Tax Policy Staffing 7 $2,409

Embassy Security Improvements - $744

DO Cybersecurity Enhancements 2 $1,050

Total FY 2016 Request 1,312 $331,837

FY 2016 Budget Adjustments 

Adjustments to Request

Fund RESTORE Act Administrative 

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

FTE

Treasury proposes legislative language in 

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

from the Gulf Coast Restoration Trust Fund

for management of the fund, including 

administering the civil and administrative 

penalties arising from the Deep Water Horizon 

oil spill, supporting environmental and 

economic restoration of the Gulf Coast region,

and standing up grants, compliance, and audit 

programs. 

Sanctions-related workload, TFI contract 

support, and secure space requirements -

$4,022,000 / +0 FTE 

Non-recur one-time costs associated with the 

increase provided in the FY 2015 Consolidated 

Appropriations Act. Reductions of $3,332,000 

will be achieved by non-recurring one-time 

sanctions-related contracts in various 

Terrorism and Financial Intelligence (TFI) 

offices: Office of the Under Secretary; Office 

of Terrorist Financing and Financial Crimes; 

and the Office of Foreign Assets Control. TFI 

will also non-recur $190,000 in contract 

services that support personnel security. 

Funding for TFI secure space requirements 

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

program’s base funding level. 

Maintaining Current Levels (MCLs)

FERS Contribution Increase +$670,000 / +0 

FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

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

Funds are requested for the proposed January 

2016 pay-raise.

Department of the Treasury - Budget in Brief 12
Pay Annualization +$478,000 / +0 FTE 

Funds are requested for annualization of the 

January 2015 pay-raise. 

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

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Non-Recurring Costs 

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

FTE

The Department of the Treasury received 

funds as authorized by the American Recovery 

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

commonly referred to as the Stimulus or The 

Recovery Act, for an interagency agreement 

between the National Renewable Energy 

Research Lab (NREL) and Treasury to review 

applications for the Cash Payments for 

Specified Energy Property in Lieu of Tax 

Credits (1603 program). The contract that 

supports the 1603 program is winding down in 

FY 2016. 

Government Security Operations Center

 -$2,200,000 / +0 FTE 

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

appropriation of $3,500,000 for the 

Government Security Operations Center. 

DO Local Area Network Enhancements

 -$255,000 / +0 FTE 

Non-recur $255,000 of the FY 2015 

appropriation of $2,600,000 for DO Local 

Area Network Enhancements. 

Efficiency Savings 

TFI FOIA Contract Consolidation -$221,000 

/ +0 FTE 

The Under Secretary’s office proposes 

efficiency savings of $221,000 through the 

elimination of a contract that supports the 

processing of Freedom of Information Act 

requests.

Management Savings -$174,000 / -2 FTE

Management proposes efficiency savings of 

$174,000 by re-organizing the DO mailroom 

and reducing equipment purchases. 

Other Adjustments

Technical FTE Adjustment +$0 / +103 FTE 

In order to estimate the FTE levels for the 

FY 2016 Budget, DO reviewed prior year FTE 

usage relative to previously projected FTE 

levels. The FY 2016 Budget reflects a +43 

FTE technical adjustment based on actual 

execution. In addition, 60 reimbursable FTE, 

supporting the TFI in FY 2015 will be 

converted to direct FTEs in FY 2016—their 

mission remains the same, full administrative 

support of the TFI program. 

Reinvestments

International Affairs G20 Financial Stability 

Board Staff +$700,000 / +4 FTE 

The Office of International Affairs will 

reinvest funds within its base budget to better 

support Treasury’s roles: coordinating

international financial regulatory reform; 

chairing the Committee on Foreign Investment 

in the United States; and analyzing the 

potential economic and financial impacts of 

proposed sanctions. 

Program Increases

Digital Service Team +$10,000,000 / 

+41 FTE

The FY 2016 Budget requests resources to 

develop a Digital Service Team to transform 

Treasury’s digital services. Treasury will 

prioritize services with the greatest impact to 

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

easier to use. The digital service experts on 

the team will bring the private sector’s best 

practices in the disciplines of design, software 

engineering, and product management to bear 

on the agency’s most important services. The 

positions will be term-limited to encourage a 

continuous influx of up-to-date design and 

Department of the Treasury - Budget in Brief 13
technology skills into Treasury. The digital 

service experts will be recruited from 

America’s leading technology enterprises and 

startups and will join with Treasury’s top 

technical and policy leaders to deliver 

meaningful and lasting improvements to the 

services the agency provides to citizens and 

businesses.

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

FTE

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

Treasury Financial Innovation Lab to identify, 

develop, and pilot promising strategies to 

support national priorities in financial 

services. The Treasury Lab is modeled on the 

Idea Lab at the Department of Health and 

Human Services (HHS), which has 

successfully brought forward and incubated 

new ideas from agency staff and external 

innovators. To start, projects may include 

strategic topics, such as data-driven 

approaches to help consumers access safe and 

affordable mortgages, refinancing, and 

foreclosure prevention programs; technologybased solutions to streamline annual 

recertification for student loan repayment 

plans; and the development of a planning 

blueprint and toolkits for using Pay for 

Success financing at the Federal level. The 

Lab will cultivate and tap the considerable 

existing staff expertise throughout the 

Department in this work by providing time, 

resources, and methodological training to 

develop new tools and approaches. Similarly, 

it will collaborate with a broad range of 

stakeholders, including federal, state and local 

agencies and private sector partners, to 

catalyze action and achieve shared goals. 

Finally, the Lab will bring external talent with 

new skills and ideas into the organization on a 

temporary basis to solve high-priority, 

complex problems. 

International Financial Regulatory Reform 

+$400,000 / +2 FTE 

The Office of International Affairs (IA) 

requests two additional international capital 

markets experts to manage derivatives and 

other capital market issues to help ensure U.S. 

firms are not at a competitive disadvantage 

when providing financial services or accessing 

financial markets. Without this additional 

staffing, constraints on resources will impinge 

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

interests at international financial regulatory 

forums. 

Multiemployer Pension Reform +$3,000,000 / 

+6 FTE

Departmental Offices requests $3,000,000 to 

support six positions, contractual support, 

travel, and other administrative expenses for 

Treasury’s Multiemployer Pension Reform 

Act (MPRA) responsibilities. The MPRA 

represents the first time plan trustees have 

been permitted to make substantial cuts to 

vested benefits (including retirees in pay 

status) under the Employee Retirement Income 

Security Act of 1974. Under the MPRA, 

Treasury’s largest responsibility relates to the 

“suspension of benefits,” the temporary or 

permanent reduction of any current or future 

payment obligation of a multiemployer plan in 

critical and declining status to any participant 

or beneficiary under the plan. In order to 

suspend benefits, the sponsor of a plan must 

submit an application to the Secretary of the 

Treasury seeking approval of the proposed 

suspension of benefits. Treasury, in 

consultation with the Pension Benefit 

Guaranty Corporation and the Department of 

the Labor, must: (1) approve the application 

upon finding that the plan is eligible for 

suspension and has satisfied certain criteria; 

(2) publish a notice in the Federal Register 

within 30 days after receipt of the application 

soliciting comments on the application, which 

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

approve or deny the application for the 

Department of the Treasury - Budget in Brief 14
suspension of benefits within 225 days after its 

submission; and (4) administer a vote of plan 

participants and beneficiaries within 30 days 

after approving an application.

Office of the General Counsel Staffing 

+$955,000 / +4 FTE

The Office of the General Counsel requires 

four additional attorneys to handle significant 

increased workload in two areas. This 

workload demand is expected to continue and 

has significantly strained existing resources, 

requiring the diversion of staff from other 

important work. 

International - One additional attorney is 

needed to meet critical needs in supporting the 

Department’s international affairs function as 

demand continues to increase. Specifically, 

IA’s Committee on Foreign Investment in the 

United States case load has increased 

significantly in number as well as in 

complexity of financial transactions and 

related legal issues. In 2009, the office 

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

office now is at an annualized rate of 148 

cases a year. As the economy improves, this 

rate will increase. 

Oversight and litigation - Three additional 

attorneys are required to meet the significant 

increase in litigation and oversight matters. 

These matters necessitate substantial 

coordination with the Department of Justice to 

represent the interests of the United States in 

lawsuits pending in all levels of federal courts, 

and with Congressional Committees, 

Inspectors General, and the US Government 

Accountability Office to respond to a wide 

variety of inquiries concerning departmental 

programs and activities. Additional resources 

will facilitate the collection, review, and 

production of documents; drafting and review 

of pleadings, motions, and memoranda of law; 

witness preparation; and monitoring of reports 

and pretrial and trial proceedings. 

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

+7 FTE 

Rationalization of the Tax Code - The Office 

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

additional staff to meet the Department’s 

ongoing needs for analyses of tax proposals, 

including fundamental reform of the tax 

system. The exponential growth, availability, 

and variety of data from multiple sources have 

rapidly changed expectations regarding the 

Office of Tax Policy’s analytical capabilities. 

To continue meeting the analytical requests of 

the Secretary and the Administration, the 

Office of Tax Policy must upgrade the existing 

computing platform. The current platform is at 

risk due to lack of commercially available 

resources, so the office must migrate to more 

current operating systems commonly used for 

high-compute analytic services. Additional 

staff are required to properly construct, 

maintain, and access complex, large databases, 

which require regular maintenance and 

adjustment to remain accessible. This work

requires a detailed knowledge of relational 

database design and system programming, as 

well as practical experience in tuning a large 

database along with a deep understanding of 

public economics and taxation. 

International Tax Workload – The Office of 

Tax Policy requests $1,188,000 and four 

additional staff to address the office’s 

increased international tax workload. The 

portfolio of the international tax issues handled 

by the Office of Tax Policy has expanded 

significantly over the last ten years due to 

globalization and the increased prominence of 

international tax issues. Since 2010, this 

expansion has been significant due to 

enactment of the Foreign Account Tax 

Compliance Act in 2010, as well as increased 

efforts by the G-20, Organization for 

Economic Cooperation and Development, and 

United Nations to set international tax 

standards and focus on business tax reform. 

U.S. interests must be represented at the 

OECD as the organization increases its focus 

Department of the Treasury - Budget in Brief 15
on international tax. As the lead country in 

shaping the Base Erosion and Profit Shifting 

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

for reforming international standards to 

prevent foreign countries from inappropriately 

taxing the profits of U.S. companies. Failure 

to participate would be detrimental to U.S. 

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

discussions increasingly focus on reforming 

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

Tax Policy staff must provide increasing 

expertise in support of the Administration’s 

efforts. Without additional staff, the office 

could not appropriately support reform. 

Embassy Security Improvements +$744,000 / 

+0 FTE 

As a result of recent steps taken by the State 

Department to bolster the Capital Security 

Cost Sharing (CSCS) program, the estimated 

cost to Treasury is expected to increase from 

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

2016. To avoid reducing the Department’s 

international footprint, DO is requesting 

$744,000 to fully fund the projected FY 2016 

CSCS invoice. 

DO Cybersecurity Enhancements 

+$1,050,000 / +2 FTE 

Security Enhancements for Classified 

Networks - Two additional positions and 

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

nascent Continuous Diagnostics and 

Monitoring program, including security 

controls testing, monitoring of system security 

to include detection of and response to 

unauthorized user or anomalous network 

activity, as well as the secure implementation 

of identity and credential access management 

on DO’s collateral classified network. The 

network serves a significant purpose for its 

users and the mission of DO. Besides 

classified data transmission, it also provides an 

alternative, more secure environment for 

processing highly sensitive information, since 

the network is isolated from the 

Internet. Funding also provides incident 

response capabilities consisting of forensics 

equipment as well as penetration testing 

software. These improvements will increase 

DO’s ability to continuously monitor the 

network and detect and remediate security 

vulnerabilities, thereby reducing the risk of 

security incidents. Additionally, the project 

will help find the source and location of 

security incidents and respond more timely 

when security events arise.

DO Wireless Intrusion Prevention System 

Expansion - An additional $500,000 is

required to continue to roll out wireless 

intrusion prevention in DO buildings and areas 

that are currently unmonitored. Over half of 

the DO buildings (often leased floors in 

commercial office space) are 

unmonitored. The additional areas are 

relatively small compared to the Main 

Treasury complex, but any one area poses a 

potential unauthorized vulnerability to the 

network if not appropriately secured and 

monitored, as required by federal and 

Department requirements. These unmonitored 

areas often neighbor buildings and adjacent 

office space with public Wi-Fi networks and 

significant wireless activity. The monitoring 

software will reduce Treasury’s exposure to 

these risks.

Explanation of Budget Activities

Executive Direction ($37,899,000 from direct 

appropriations, $13,292,000 from 

reimbursable resources) 

Provides direction and policy guidance to the

Department, and interacts with Congress and

the public on departmental policy matters.

International Affairs and Economic Policy

($58,706,000 from direct appropriations, 

$4,148,000 from reimbursable resources) 

Monitors domestic and international economic 

conditions and collects and analyzes financial 

data.

Department of the Treasury - Budget in Brief 16
Domestic Finance and Tax Policy 

($75,948,000 from direct appropriations, 

$22,114,000 from reimbursable resources) 

Monitors and provides economic and financial

policy expertise in the areas of domestic

finance and tax policy. 

Terrorism and Financial Intelligence 

($109,609,000 from direct appropriations, 

$56,626,000 from reimbursable resources) 

Develops and implements strategies to counter

terrorist financing and money laundering. 

Treasury-wide Management and Programs 

($49,675,000 from direct appropriations, 

$25,294,000 from reimbursable resources) 

Provides strategic plans and policy direction in

the fields of human resources, information

technology security, and financial

administration that include the formulation and 

management of the budget.

Legislative Proposals

Departmental Offices has no legislative 

proposals. 

Mandatory Proposals

As in FY 2015, Treasury proposes legislative 

language in FY 2016 to allow Treasury to 

draw $7,000,000 from the Gulf Coast 

Restoration Trust Fund for management of the 

fund, including administering the civil and 

administrative penalties arising from the Deep 

Water Horizon oil spill, supporting 

environmental and economic restoration of the 

Gulf Coast region, and standing up grants, 

compliance, and audit programs. 

Department of the Treasury - Budget in Brief 17
DO Performance by Budget Activity

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

Actual Actual Actual Target Target

International Affairs and Economic 

Policy

Monitor Quality and Enhance 

Effectiveness of International 

Monetary Fund (IMF) Lending 

Through Review of IMF Country 

Programs

100 100 100 100 100

Domestic Finance and Tax Policy Variance Between Estimated and 

Actual Receipts (Annual 

Forecast)(%)

3.8 2.5 N/A 4.25 N/A*

Terrorism and Financial 

Intelligence

Impact of TFI Programs and 

Activities

8.1 8.3 8.5 8.5 8.5

Key: DISC - Discontinued and B – Baseline

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

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

Description of Performance

The following performance measures provide

a snapshot of the FY 2015 DO performance

plan: 

Monitor Quality and Enhance Effectiveness of 

International Monetary Fund (IMF) Lending 

through Review of IMF Country Programs: 

This measure tracks efforts by IA staff to 

monitor the quality of IMF country programs 

and ensure the application of appropriately 

high standards for the use of IMF resources. 

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

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

measure remains 100 percent.

Variance between estimated and actual 

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

managing the Government’s central operating 

account and cash position, the Office of Fiscal 

Projections (OFP) forecasts net cash flows

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

miscellaneous flows) to ensure that adequate 

funds are available daily to cover federal 

payments. To determine its overall 

effectiveness, one of OFP’s metrics is to

measure the variance between actual and 

projected Federal receipts. 

The actual variance for FY 2014 through July 

2014 was 3.8 percent, significantly lower than 

the 4.25 percent target for FY 2014. The 

actual variance for all of FY 2013 was 2.5 

percent. The target for FY 2015 is 4.25 

percent.

 

Impact of TFI Programs and Activities: In 

order to gauge its performance, TFI created a 

composite measure consisting of three 

program office focus areas related to its 

mission and strategic goals, including 

customer outreach, increasing budget 

production and dissemination of intelligence 

products, and implementing IT modernization 

projects. In FY 2014, TFI met its performance 

goal of 8.5 and expects to achieve its FY 2015 

and FY 2016 target of 8.5. 

Department of the Treasury - Budget in Brief 18
Department-wide Systems and Capital Investments Program 

Program Summary by Budget Activity 

Dollars in Thousands 

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Department-wide Systems and Capital

Investments Program $2,725 $2,725 $10,690 $7,965 292.29%

Subtotal, Department-wide Systems and

Capital Investments Program $2,725 $2,725 $10,690 $7,965 292.29%

Total Program Operating Level $2,725 $2,725 $10,690 $7,965 292.29%

Direct FTE 0 0 0 0 NA

Reimbursable FTE 0 0 0 0 NA

Total FTE 0 0 0 0 NA

Summary 

The Department-wide Systems and Capital 

Investments Program (DSCIP) is authorized to 

be used by or on behalf of the Treasury 

Department’s bureaus, at the Secretary’s 

discretion, to improve infrastructure, 

modernize business processes, and increase 

efficiency through technology investments. 

DSCIP FY 2016 Budget Highlights 

Dollars in Thousands

Department-wide Systems and Capital

Investments Program FTE Amount

FY 2015 Enacted - $2,725

Changes to Base:

Non-Recurring Costs: - ($2,725)

Zero-Base Budget - ($2,725)

Subtotal Changes to Base - ($2,725)

Total FY 2016 Base - -

Program Changes:

Program Increases: - $10,690

Shared IT Infrastructure Environment - $10,040

Main Treasury South Plaza Restoration - $650

Total FY 2016 Request - $10,690

FY 2016 Budget Adjustments 

Adjustments to Request 

Non-Recurring Costs 

Zero-Base Budget -$2,725,000 / +0 FTE 

DSCIP appropriations are one-time funding 

and do not recur. 

Program Increases 

Shared IT Infrastructure Environment 

+$10,040,000 / +0 FTE 

Treasury requests funds to build and house a 

shared enterprise IT infrastructure 

environment. This environment would be 

housed in existing Treasury facilities and 

allow for analysis of large volumes of 

aggregate financial and management data in 

support of various mission-critical Treasury 

functions, including those for TFI and 

government-wide shared services provided by 

Treasury’s IT services. Current environments 

would require investment to improve 

availability through increased useof computing 

resources, security infrastructure to ensure 

shared environments can safely share data with 

mission specific environments, and identity 

management controls to monitor access by 

employees at different agencies. With this 

foundation, Treasury would be much more 

effectively positioned to expand current data 

management programs to meet the increasing 

demand from multiple customers for “big 

data” type analysis as well as host DO and 

Treasury’s government-wide shared services. 

Main Treasury South Plaza Restoration 

+$650,000 / +0 FTE 

This request will fund repairs to the South 

Plaza to correct deterioration to the paver 

stones and underlying setting bed that is 

causing an unstable walking surface that is a 

Department of the Treasury - Budget in Brief 19
hazard to employees and could cause serious 

injury. 

Explanation of Budget Activities 

Department-wide Systems and Capital 

Investments Program ($10,690,000 from 

direct appropriations) 

The purpose of DSCIP funds is to modernize 

business processes and increase efficiencies 

within Treasury and across the government 

through capital investment. 

Legislative Proposals 

DSCIP has no legislative proposals. 

Department of the Treasury - Budget in Brief 20
Office of Inspector General

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Audit $27,050 $28,275 $28,304 $29 0.10%

Investigations $7,750 $7,076 $7,112 $36 0.51%

Subtotal, Office of Inspector General $34,800 $35,351 $35,416 $65 0.18%

Offsetting Collections - Reimbursables $12,000 $13,000 $13,000 $0 0.00%

Total Program Operating Level $46,800 $48,351 $48,416 $65 0.13%

Direct FTE 194 194 194 0 0.00%

Reimbursable FTE 19 19 19 0 0.00%

Total FTE 213 213 213 0 0.00%

Summary

The Inspector General Act of 1978 gives the 

Treasury Office of Inspector General (OIG) 

the authority and responsibility to (1) audit and 

investigate the Department of the Treasury’s 

programs and operations; (2) promote 

economy and efficiency and to detect and 

prevent fraud and waste in those programs and 

operations; and (3) keep the Secretary and 

Congress aware of problems and solutions. 

The OIG provides independent oversight of 

Treasury and all of its bureaus except the 

Internal Revenue Service (IRS) and the 

Troubled Asset Relief Program (TARP). The 

OIG has five components, including three 

mission offices – the Office of Audit, the 

Office of Investigations, and the Office of 

Small Business Lending Fund (SBLF) 

Program Oversight (separately funded through 

2017). In support of Treasury’s strategic 

goals, the OIG established the following 

strategic goals: (1) promote the integrity and 

effectiveness of Treasury programs and 

operations through audits and investigations; 

(2) proactively support and strengthen the 

Department’s ability to identify and manage 

challenges, both today and in the future; (3) 

fully and currently inform stakeholders of 

Treasury OIG findings, recommendations, 

investigative results, and priorities related to 

Treasury programs and operations; and (4) 

enhance, support, and sustain a workforce and 

strengthen internal operations to achieve the 

Treasury OIG mission, vision and strategic 

goals.

The FY 2016 request for the OIG will be used 

to fund critical audit, investigative, and 

mission support activities to meet the 

requirements of the Inspector General Act, and 

a number of other statutes including, but not 

limited to the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (Dodd-Frank), 

Federal Information Security Management Act 

(FISMA), Government Management Reform 

Act (GMRA), Improper Payments Elimination 

and Recovery Act (IPERA), Digital 

Accountability and Transparency Act of 2014 

(DATA Act), Federal Deposit Insurance Act

(FDIA), Small Business Jobs Act of 2010, and 

Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012 

(RESTORE Act). Specific mandates include 

audits of the Department’s financial 

statements, the Department’s implementation 

Department of the Treasury - Budget in Brief 21
of FISMA, and failed insured depositary 

institutions regulated by Treasury. 

With the resources available after mandated 

requirements are met, the OIG will conduct 

audits of the Department’s highest risk 

programs and operations, and respond to 

stakeholder requests for specific work as 

appropriate. Some of the Department’s 

highest risk programs and operations include: 

(1) continued implementation of Dodd-Frank; 

(2)management of Treasury’s authorities 

intended to support and improve the economy; 

(3) anti-money laundering and terrorist 

financing/Bank Secrecy Act Enforcement; and 

(4) Gulf Coast Restoration Trust Fund 

Administration.

Programs That Support the Continued 

Implementation of Dodd-Frank - The Act 

established the Council of Inspectors General 

on Financial Oversight (CIGFO) and 

designated the Treasury Inspector General as 

Chair. The Council has statutory requirements 

to provide oversight of the Financial Stability 

Oversight Council (FSOC), which is chaired 

by the Treasury Secretary. CIGFO comprised 

of the Inspectors General of the eight federal 

financial regulators and the Special Inspector 

General for TARP, meets quarterly to share 

information on financial oversight, provides 

annual reports to FSOC and the Congress with 

the individual and collective perspectives of 

the inspectors general on ways to improve 

financial oversight, and evaluates FSOC 

activities through working groups. During

FY 2016, CIGFO will continue to evaluate 

FSOC’s activities. Apart from CIGFO, the 

OIG will provide oversight for four important 

Treasury offices established by Dodd-Frank – 

the Office of Financial Research, the Federal 

Insurance Office, and the Office of Minority 

and Women Inclusion within Departmental 

Offices and Office of the Comptroller of the 

Currency. 

Management of Treasury’s Authorities to 

Support and Improve the Economy - The 

Recovery Act provided Treasury with 

approximately $29 billion in non-IRS funding 

for low-income housing projects and specified 

energy properties for which the OIG must 

provide oversight. Funds for the Recovery Act 

are available for the specified energy 

properties program and will require continued 

oversight. The OIG will continue this work at 

Departmental Offices to determine whether the 

funds were spent as intended. The OIG will 

continue its oversight of projects funded under 

Treasury’s payments in lieu of tax credit 

programs – to persons for specified energy 

properties and to states for low-income 

housing projects over an extended period of 

time (5 years from the placed in-service date 

of the specified energy property and 15 years 

beginning on January 1 of the year following 

the placed in-service date for the low-income 

housing project). In addition, the OIG 

anticipates an increase of related criminal 

investigations as Treasury continues to 

disburse these funds. 

Another area that requires vigorous oversight 

by the OIG is Treasury’s responsibilities under 

the Housing and Economic Recovery Act of 

2008 (HERA). Under HERA, Treasury 

continued to support the financial solvency of 

the Federal National Mortgage Association 

(Fannie Mae) and the Federal Home Loan 

Mortgage Corporation (Freddie Mac) which is 

under the conservatorship of the Federal 

Housing Finance Agency. As of July 2014, 

Treasury invested $187 billion in the two 

entities to cover their losses and maintain a 

positive net worth. Although Fannie Mae and 

Freddie Mac did not require Treasury’s 

support in recent years, the futures of both 

remain in question and prolonged assistance 

may be required. During FY 2016, audit 

oversight of the Preferred Stock Purchase 

Agreement Program, the program through 

which Treasury provides its financial support 

Department of the Treasury - Budget in Brief 22
to Fannie Mae and Freddie Mac, will continue. 

The OIG’s planned HERA oversight work in 

FY 2016 also includes the Housing Finance 

Agency (HFA) Initiative’s New Issue Bond 

Program ($15.3 billion). This program 

includes participation of over 90 state and 

local HFAs. 

Programs to Combat Money Laundering 

and Terrorist Financing/Bank Secrecy Act 

Enforcement - Ensuring criminals and 

terrorists do not use our financial networks to 

sustain their operations and/or launch attacks 

against the U.S. continues to be a challenge. 

Given the criticality of this challenge to the 

Department’s mission, the OIG continues to 

consider anti-money laundering and combating 

terrorist financing as inherently high-risk, and 

an area that demands a major focus of its selfdirected resources. 

Gulf Coast Restoration Trust Fund 

Administration - In response to the 

Deepwater Horizon oil spill, Congress 

established within Treasury the Gulf Coast 

Restoration Trust Fund and requires Treasury 

to deposit in the Trust Fund 80 percent of 

administrative and civil penalties paid by 

responsible parties, which will be distributed 

for eligible activities affecting the Gulf Coast 

states (Alabama, Florida, Louisiana, 

Mississippi, and Texas). Treasury OIG is 

charged with providing oversight of all 

programs, processes, and activities of the Trust 

Fund.

 

Treasury OIG’s investigative priorities for 

FY 2016 include: 

• Complaints of alleged criminal and 

serious misconduct by Department 

employees and contract employees; 

• Allegations of fraud and other crimes 

involving Treasury contracts, 

procurements, grants, guarantees 

(fictitious instruments), and federal 

funds; 

• Complaints related to financial 

programs and operations involving 

issuing licenses, providing benefits and 

exercising oversight of U.S. financial 

institutions; 

• Threats against Treasury employees 

and facilities; and 

• Proactive efforts in detecting, 

investigating, and deterring electronic 

crimes and other threats to the 

Department’s physical and cyber 

critical infrastructure.

In addition to audit and investigative 

responsibilities cited above, the OIG will 

continue to provide audit and investigative 

oversight over two additional Treasury 

programs—the Small Business Lending Fund 

(SBLF) and State Small Business Credit 

Initiative (SSBCI). The SBLF is a $30 billion 

fund that is used by Treasury to inject capital 

into small and medium banks with incentives 

to encourage them to increase their lending. 

The SSBCI provides Treasury with $1.5 

billion to support state programs designed to 

increase access to credit for small businesses. 

To ensure proper oversight of the SBLF, in 

2010 the OIG established the SBLF Program 

Oversight Office headed by a Special Deputy 

Inspector General with responsibility for all 

audit and investigative activities relating to the 

program and for recommending program 

improvements. Congress also directed the 

OIG to audit the use of SSBCI funds by 

participating states and required Treasury to 

recoup any misused funds identified by such 

audits. To comply with its mandates, the OIG 

will continue to assess Treasury’s 

implementation of these two programs, 

continually monitor recipient compliance with 

program requirements and use of funds, and 

evaluate the impact of these programs on small 

business lending. 

Total resources required to support the OIG’s

operations in FY 2016 are $48,416,000, 

Department of the Treasury - Budget in Brief 23
consisting of (1) $35,416,000 from direct 

appropriations and (2) $13,000,000 from 

reimbursable funding agreements to support 

the financial statement audit requirements of 

the Department and for oversight of the SBLF 

and SSBCI programs.

OIG FY 2016 Budget Highlights

Dollars in Thousands

Office of Inspector General FTE Amount

FY 2015 Enacted 194 $35,351

Changes to Base:

Maintaining Current Levels (MCLs): - $549

Pay-Raise - $283

Pay Annualization - $72

FERS Contribution Increase - $107

Non-Pay - $87

 Efficiency Savings ($484)

 Administrative Reduction ($484)

Subtotal Changes to Base - $65

Total FY 2016 Base 194 $35,416

Total FY 2016 Request 194 $35,416

FY 2016 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$283,000 / +0 FTE

Funds are requested for the proposed January 

2016 pay-raise. 

Pay Annualization +$72,000 / +0 FTE

Funds are requested for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$107,000 / 

+0 FTE

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$87,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Efficiency Savings 

Administrative Reduction -$484,000 / 

+0 FTE

OIG will reduce its administrative expenses 

and achieve savings due to delays in onboarding staffing. 

Explanation of Budget Activities

Audit ($28,304,000 from direct 

appropriations, $13,000,000 from 

reimbursable resources) 

The Office of Audit conducts audits aimed to 

ensure the accountability of resources, protect 

information, and provide recommendations for 

improving the economy, efficiency, 

effectiveness, and integrity of Treasury 

programs and operations under its jurisdiction. 

The requested funding for FY 2016 is 

necessary to perform mandated work and 

maintain an appropriate level of oversight of 

Treasury programs and operations consistent 

with its responsibilities under the Inspector 

General Act. The OIG also responds to 

requests by Treasury officials and the

Congress for specific work. In FY 2016 the 

OIG must continue to provide oversight of 

Gulf Coast Restoration Trust Fund programs, 

projects and activities, as well as Treasury’s 

roles and responsibilities under the DATA 

Act. Reimbursable funding supports 

agreements for contract audits of other 

Treasury bureaus, as well as oversight of the 

Small Business Lending Fund (SBLF) and the 

State Small Business Credit Initiative (SSBCI) 

programs. SBLF/SSBCI program oversight 

and expected performance is detailed in the 

SBLF/SSBCI Program Office budget 

submission. 

Investigations ($7,112,000 from direct 

appropriations) 

The Office of Investigations (OI) prevents, 

detects, and investigates complaints of fraud, 

waste, and abuse. This includes the detection 

and prevention or deterrence of employee 

misconduct and fraud, or related financial 

crimes within or directed against Treasury. OI

Department of the Treasury - Budget in Brief 24
refers its cases to the Department of Justice, 

state or local prosecutors for criminal 

prosecution or civil litigation, or to agency 

officials for corrective administrative action. 

With the increased risk of the Recovery Act 

grant programs for low-income housing and 

specific energy properties, OI faces greater 

challenges and anticipated increases in grant 

fraud. In addition, with the establishment of 

the Gulf Coast Restoration Trust Fund, 

outreach efforts are being made in an effort to 

prepare for future investigative referrals and 

complaints aimed at suspected fraud 

involving these funds. 

Additionally, OI remains committed to 

investigating benefit, payment and other 

monetary fraud associated with the programs 

and operations of the Treasury Department. 

Legislative Proposals

OIG has no legislative proposals.

OIG Performance by Budget Activity

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

Actual Actual Actual Target Target

Audit Number of Completed Audit 

Products

91 72 75 75 77

Audit Percent of Statutory Audits 

Completed by the Required Date

100.0 100.0 100.0 100.0 100.0

Investigations Percentage (%) of All Cases 

Closed During Fiscal Year that 

were Referred for Criminal/Civil 

Prosecution or Treasury 

Administrative Action

91.0 84.0 84.0 80.0 80.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

The Office of Audits expects to complete 75 

audit products in FY 2015 and 77 in FY 2016. 

In FY 2014 the Office of Audit completed 75 

audit products, exceeding the planned target of 

70. In FY 2014, the Office of Audit met its 

mandated audit requirements. Audit products 

include audit reports, evaluation reports, the 

Inspector General’s Semi-Annual Report to 

the Congress, and the Inspector General’s 

annual memorandum to the Secretary on the 

most significant management and performance 

challenges facing the Department. Audit 

products can also include responses to specific 

information requests by the Congress on a 

variety of subjects. By completing 

independent and timely assessments of 

Treasury’s programs and operations under our 

jurisdiction, the OIG supports its mission of 

promoting efficiency, effectiveness, and 

integrity of Treasury programs and operations. 

The recommendations for improvement in 

Treasury programs and operations noted 

through OIG’s assessments directly support 

the Treasury Department in achieving its 

strategic goals. It should be noted that a 

number of these assessments are mandated in 

law with specific reporting deadlines so that 

decision makers have timely information.

The OIG has a mature audit operation that can 

well estimate, based on historical performance, 

a highly accurate prediction of future 

performance. That said, OIG has, over time, 

demonstrated agility at redirecting resources as 

necessary to address new challenges and 

mandates of its stakeholders.

Department of the Treasury - Budget in Brief 25
In keeping with the OIG’s strategy to maintain 

a highly skilled and motivated workforce, the 

OIG plans and executes a meaningful body of 

work designed to help ensure the integrity and 

effectiveness of Treasury programs and 

operations while looking for opportunities to 

improve them. 

In FY 2014, the OIG exceeded the 

Investigative Performance Measure target, 

opened 81 new investigations, closed 92 

investigations, and referred 48 investigations 

that substantiated administrative violations 

against a Treasury employee to the appropriate 

regulated bureau for action. In addition, the 

OIG referred 65 investigations for criminal 

prosecution. The OIG received investigative 

referrals regarding potential criminal 

misconduct that occurred prior to or during 

bank failures, and has worked criminal 

investigations with the Federal Deposit 

Insurance Corporation Office of Inspector 

General and the OIG Office of Audit regarding 

potential prosecution of acts which may have 

contributed to the bank failures. 

The Investigative performance measure is the 

percentage of all cases closed by OI during the 

fiscal year that were referred for administrative 

action or for criminal or civil prosecution by 

Federal or local prosecutors. Meeting or 

exceeding this goal demonstrates that OI is 

responsive to allegations and complaints and 

does an excellent and thorough job in 

analyzing and evaluating incoming 

complaints, investigating complaints that 

warrant full investigation and achieving a 

measurable result by way of either an 

Administrative or Criminal referral for action 

against the subject of the investigation. The 

low percentage of investigations closed had no 

actionable findings. OI’s excellent 

performance continues to assist the 

Department in maintaining the integrity of its 

programs and operations, subsequently 

ferreting out fraud, waste, and abuse. This 

goal was developed to achieve OIG’s goal of 

positively impacting Treasury’s strategic goals 

and providing a more meaningful 

measurement of investigative performance.

Department of the Treasury - Budget in Brief 26
Special Inspector General for TARP

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Audit $12,220 $9,243 $8,870 ($373) -4.04%

Investigations $22,703 $24,991 $31,801 $6,810 27.25%

Subtotal, Special Inspector General for 

TARP $34,923 $34,234 $40,671 $6,437 18.80%

Unobligated balances from Prior Years $6,683 $10,957 $6,495 ($4,462) -40.72%

Available PPIP Funds $1,536 $965 $928 ($37) -3.83%

Total Program Operating Level $43,142 $46,156 $48,094 $1,938 4.20%

Total FTE 192 192 192 0 0

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Audit $15,296 $12,201 $10,266 ($1,935) -15.86%

Investigations $27,846 $33,955 $37,828 $3,873 11.41%

Total SIGTARP by Budget Activity $43,142 $46,156 $48,094 $1,938 4.20%

Total FTE 192 192 192 0 0.00%

Summary

The FY 2016 President’s Budget request for 

the Special Inspector General for Troubled 

Asset Relief Program (SIGTARP) includes 

funding to support and complement Treasury’s 

Strategic Goal 1: promote domestic economic 

growth and stability while continuing reforms 

of the financial system. In particular, through 

its oversight and investigations of TARPrelated activities, SIGTARP supports 

Objective 1.1: promote savings and increased 

access to credit and affordable housing 

options, Objective 1.2: wind down emergency 

financial crisis response programs, and 

Objective 1.3: complete implementation of 

financial regulatory reform initiatives, 

continue monitoring capital markets, and 

address threats to stability. 

Additionally, through open and transparent 

communication with Congress, SIGTARP 

supports Treasury’s Strategic Goal 5: create a 

21st-century approach to government by 

improving efficiency, effectiveness, and 

customer interaction. Through expedient 

responses to inquiries from Congress, 

SIGTARP supports Objective 5.4: create a 

culture of service through relentless pursuit of 

customer value.

SIGTARP promotes the efficiency and 

effectiveness of TARP management, through 

transparency, coordinated oversight, and 

robust enforcement against those persons and 

entities, whether inside or outside of 

government, who waste, steal or abuse TARP 

funds. SIGTARP has been responsible for 

many of the significant financial crisis cases, 

but these complex cases take time to 

investigate. Considering most complex 

financial fraud investigations can take several 

years to complete, SIGTARP’s high arrest and 

conviction rates are particularly notable. 

Of the four primary oversight bodies 

referenced in the Emergency Economic 

Department of the Treasury - Budget in Brief 27
Stabilization Act of 2008 (“EESA”), (i.e., 

SIGTARP, the Financial Stability Oversight 

Board, the Congressional Oversight Panel, and 

the Government Accountability Office), 

SIGTARP stands as the sole TARP oversight 

body responsible for criminal law 

enforcement. Also, SIGTARP is the only 

agency solely charged with the mission of: 

• Transparency – Promote transparency in 

the government’s response to the financial 

crisis including TARP programs; 

• Oversight – Advise and provide 

recommendations to Treasury and the 

federal banking regulators to facilitate 

effective oversight and to prevent fraud, 

waste and abuse; and

• Robust Enforcement – Prevent, detect, 

investigate, and refer for prosecution cases 

of fraud, waste, and abuse related to 

TARP.

SIGTARP’s FY 2016 budget request will 

provide resources to (1) detect, stop, and 

investigate crime related to TARP; (2) support 

prosecutions of those defendants SIGTARP 

investigates; (3) provide significant oversight

and transparency over the financial institutions 

remaining in TARP; and (4) provide oversight

and transparency over TARP-funded housing 

programs which are scheduled to last as late as 

2023. 

Under EESA, SIGTARP is mandated to carry 

out its duties until the government has sold or 

transferred all assets and terminated all 

obligations under TARP. In other words, 

SIGTARP’s mission, which is independent of 

Treasury’s mission related to TARP, is to

remain “on watch” as long as TARP assets 

remain outstanding, which Treasury currently 

has scheduled until the year 2023. 

SIGTARP FY 2016 Budget Highlights

Dollars in Thousands

Special Inspector General for TARP FTE Amount

FY 2015 Enacted 192 $34,234

Changes to Base:

Maintaining Current Levels (MCLs): - $772

Pay-Raise - $306

Pay Annualization - $78

FERS Contribution Increase - $106

Non-Pay - $282

Other Adjustments - $5,665

Base Funding Shortfall - $5,665

Subtotal Changes to Base - $6,437

Total FY 2016 Base 192 $40,671

Total FY 2016 Request 192 $40,671

FY 2016 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$306,000 / +0 FTE 

Funds are requested for the proposed 

January 2016 pay-raise. 

Maintaining Current Level (MCLs)

Pay Annualization +$78,000 / +0 FTE 

Funds are requested for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$106,000 / 

+0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$282,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Base Funding Shortfall +$5,665,000 / 

+0 FTE 

Funds are requested to meet basic operation 

requirements. In previous years, operating 

needs were met through a combination of 

appropriated dollars and no-year funds. 

SIGTARP anticipates its non-earmarked noyear account is expected to be exhausted in 

FY 2016, and its annual appropriation is 

insufficient to cover SIGTARP’s base 

Department of the Treasury - Budget in Brief 28
operations. A fully funded annual 

appropriation is critical to SIGTARP’s 

continued success in fulfilling its mandate.

Explanation of Budget Activities

Audit ($8,870,000 from direct appropriations, 

$0 from reimbursable resources) 

The Audit budget activity supports 

SIGTARP’s priority of coordinated oversight 

by providing recommendations to Treasury to 

improve TARP programs, bring transparency 

to decisions made in TARP, and prevent fraud, 

waste, and abuse. SIGTARP conducts, 

supervises, and coordinates programmatic 

audits of TARP without sacrificing the rigor of 

required methodology. SIGTARP’s audits 

facilitate transparency and opportunities to 

improve and protect TARP.

Investigations ($31,801,000 from direct 

appropriations) 

The Investigations Division supports 

SIGTARP’s priority of robust law 

enforcement of crimes and other violations of 

the law related to TARP. 

SIGTARP conducts criminal and civil

investigations related to TARP using a staff of 

experienced investigators, including special 

agents, forensic agents, investigators, analysts, 

and investigative attorneys. This structure 

provides SIGTARP with a broad array of 

expertise and perspective in detecting and 

unravelling the most sophisticated of crimes. 

In the interest of maximizing resources, 

SIGTARP coordinates closely with other law 

enforcement agencies. In forming law 

enforcement partnerships and task force 

relationships across federal and state 

governments, SIGTARP leverages its unique 

position and expertise. 

Legislative Proposals

SIGTARP has no legislative proposals. 

SIGTARP Performance by Budget Activity

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

Actual Actual Actual Target Target

Audit Congressional Requests for Testimony 

Completed (Units)

4 5 4 3 DISC

Audit Number of Completed Audit Products 

(Units)

13 10 10 8 7

Audit Percentage of Congressional Inquiries 

Responded to within 45 Days of Receipt

N/A N/A N/A N/A 85.0

Investigations Percentage of Cases That are Joint 

Agency/Task Force Investigations

65.0 79.0 75.5 50.0 70.0

Investigations Percentage of Hotline Complaints 

Responded to or Referred for Investigation 

or Further Action within 14 Days of Receipt

77.0 83.0 95.0 75.0 80.0

Investigations Percentage of Investigations Accepted for 

Consideration by Prosecutors

95.0 94.0 97.5 70.0 80.0

Investigations Percentage of Preliminary Investigations 

Converted to Full Investigations within 180 

Days

77.0 82.0 95.75 70.0 80.0

Key: DISC - Discontinued and B - Baseline

Department of the Treasury - Budget in Brief 29
Description of Performance

In FY 2014 SIGTARP exceeded its 

performance goal of three “Congressional 

Requests for Testimony Completed,” having 

completed four testimonies. SIGTARP 

anticipates that Congress will continue to have 

an interest in SIGTARP’s work. 

In FY 2016 SIGTARP will measure its 

responsiveness to Congressional inquiries, 

which SIGTARP believes is a more 

meaningful measure of Congressional interest 

in SIGTARP’s mission. The new measure, 

“Percentage of Timely Responses to 

Congressional Inquiries” focuses on the 

responsiveness of information flow and 

transparency between SIGTARP and 

Congress. This measure will replace 

“Congressional Requests for Testimony 

Completed” in FY 2016. 

The performance goal, “Number of Completed 

Audit Products” includes issuing audit 

products that promote the efficiency and 

effectiveness of the TARP and prevent waste, 

fraud and abuse. SIGTARP completed 

10 audit products in FY 2014, exceeding its 

goal of eight completed audit products. 

For FY 2014, “Percentage of Cases That are 

Joint Agency/Task Force Investigations” with 

other law enforcement agencies was

75.5 percent, exceeding the target of 

45 percent. 

One of SIGTARP’s primary investigative 

priorities is to operate the SIGTARP Hotline 

that provides a simple, accessible way for the 

American public to report crime tips. The 

“Percentage of Hotline Complaints Responded 

to or Referred for Investigation or Further 

Action Within 14 Days of Receipt” was 

95 percent for FY 2014, exceeding the goal of 

70 percent. 

The “Percentage of Investigations Accepted 

for Consideration by Prosecutors,” was 

97.5 percent for FY 2014, exceeding the target 

of 70 percent. This success is directly related 

to SIGTARP’s thorough investigation of 

evidence and its support of prosecutions. 

In FY 2014, “Percentage of Preliminary 

Investigations Converted to Full Investigations

Within 180 days” was 95.75 percent, 

exceeding the target of 60 percent. This is due 

to SIGTARP involving prosecutors in 

preliminary investigations to ensure that 

allegations, if proven, will be prosecuted. 

It is expected that SIGTARP will continue to 

meet or exceed performance measures in 

FY 2015 and FY 2016. 

Department of the Treasury - Budget in Brief 30
The Treasury Inspector General for Tax Administration

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Audit $60,850 $61,572 $65,100 $3,528 5.73%

Investigations $95,525 $96,638 $102,175 $5,537 5.73%

Subtotal, Treasury Inspector General for 

Tax Administration $156,375 $158,210 $167,275 $9,065 5.73%

Offsetting Collections - Reimbursables $1,700 $1,500 $1,500 $0 0.00%

Total Program Operating Level $158,075 $159,710 $168,775 $9,065 5.68%

Direct FTE 835 835 859 24 2.87%

Reimbursable FTE 2 2 2 0 0.00%

Total FTE 837 837 861 24 2.87%

Summary

The FY 2016 President’s Budget request for 

the Treasury Inspector General for Tax 

Administration (TIGTA) will be used to 

provide high quality professional audit, 

investigative, and inspections and evaluations 

services that promote integrity, economy, and 

efficiency in the administration of the Nation’s 

tax system. 

TIGTA’s Fiscal Year 2013 – 2016 Strategic 

Plan guides program and budget activities and 

supports the Department of the Treasury’s 

FY 2014-2017 Strategic Plan (the Plan), which 

includes Strategic Goal 2: “Fairly and 

effectively reform and modernize Federal 

financial management, accounting, and tax 

systems.” 

TIGTA’s vision is specifically consistent with 

objective 3.2 of the Plan, “Improve the 

disbursement and collection of Federal funds 

and reduce improper payments made by the 

U.S. Government.” Likewise, TIGTA’s vision

to “maintain a highly skilled, proactive, and 

diverse Inspector General organization dedicated 

to working in a collaborative environment with 

key stakeholders to foster and promote fair tax 

administration” supports objective 3.3 of the 

Plan, “Pursue tax reform, implement the 

Patient Protection and Affordable Care Act 

(ACA) and the Foreign Account Tax 

Compliance Act (FATCA), and improve the 

execution of the Internal Revenue Code (IRC 

or tax code).” 

While there are a number of critical areas 

where TIGTA will provide oversight, FY 2016 

priorities include: 

• Identifying opportunities to improve the 

administration of the Nation’s tax laws and 

achieve program efficiencies and cost 

savings; 

• Mitigating risks associated with: security 

of taxpayer data and employees; 

information systems modernization; 

identity theft; oversight of tax-exempt 

organizations; procurement fraud; tax 

compliance; implementation of tax law 

changes; and human capital challenges 

facing the IRS in its domestic and/or 

international operations; 

• Providing the IRS with the investigative 

coverage and the information necessary to 

mitigate threats against its employees, 

facilities, and systems; 

• Responding to domestic and foreign 

threats to and attacks against IRS 

Department of the Treasury - Budget in Brief 31
employees, property, data infrastructure, 

and sensitive information; 

• Rapidly and effectively responding to 

attempts to impersonate the IRS for 

fraudulent purposes; 

• Improving the integrity of IRS operations 

by detecting and deterring waste, fraud, 

abuse, and misconduct, including the 

unauthorized disclosure of confidential 

taxpayer information by IRS employees; 

• Conducting comprehensive audits and 

inspections and evaluations that provide 

recommendations for achieving monetary 

benefits; addressing erroneous and 

improper payments; and enhancing the 

service the IRS provides to taxpayers; 

• Informing the American people, Congress, 

and the Secretary of the Treasury of 

problems on a timely basis once all facts 

are known; 

• Overseeing the IRS’s efforts to administer 

tax provisions of the Patient Protection and 

Affordable Care Act (ACA); as amended 

by the Health Care and Education 

Reconciliation Act of 2010; and

• Overseeing the IRS’s efforts to implement 

the Foreign Account Tax Compliance Act 

(FATCA) to help prevent U.S. taxpayers 

from hiding assets offshore. 

TIGTA was created by Congress as a part of 

the Internal Revenue Service Restructuring 

and Reform Act of 1998 (RRA 98). TIGTA’s 

audits, investigations, inspections, and 

evaluations protect and promote the fair 

administration of the U.S. tax system. TIGTA 

conducts audits that advise the public, 

Congress, the Secretary of the Treasury, and 

IRS management of high-risk issues, 

problems, and deficiencies related to the 

administration of IRS programs and 

operations. TIGTA’s audit recommendations 

improve the administration of the Federal tax 

system. TIGTA’s administrative and criminal 

investigations help to protect the IRS and its 

employees and to ensure that the IRS protects 

and secures taxpayers’ data. TIGTA’s 

inspections and evaluations services provide 

responsive, timely, and cost-effective 

inspections and evaluations of IRS challenge 

areas. TIGTA’s oversight is essential to the 

efficiency and equity of the IRS’s tax 

administration system. TIGTA ensures that 

taxpayers can have confidence that the IRS 

collects more than $3.1 trillion in tax revenue 

in an effective and efficient manner. 

Total resources required to support TIGTA 

activities for FY 2016 are $168,775,000, 

including $167,275,000 from direct 

appropriations and $1,500,000 from offsetting 

collections and reimbursable programs. 

TIGTA FY 2016 Budget Highlights

Dollars in Thousands

Treasury Inspector General for Tax 

Administration FTE Amount

FY 2015 Enacted 835 $158,210

Changes to Base:

Maintaining Current Levels (MCLs): - $2,557

Pay-Raise - $1,249

Pay Annualization - $319

FERS Contribution Increase - $426

Non-Pay - $563

Efficiency Savings: - ($84)

Personnel Security Background 

Investigations - ($17)

Space Optimization - ($67)

Subtotal Changes to Base - $2,473

Total FY 2016 Base 835 $160,683

Program Changes:

Program Increases: 24 $6,592

Enhance Capabilities to Protect the Tax 

Administration System Against Fraud & 

Cyberthreats 24 $6,592

Total FY 2016 Request 859 $167,275

FY 2016 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$1,249,000 / +0 FTE 

Funds are requested for the proposed January 

2016 pay-raise. 

Pay Annualization +$319,000 / +0 FTE 

Funds are requested for annualization of the 

January 2015 pay-raise.

Department of the Treasury - Budget in Brief 32
FERS Contribution Increase +$426,000 / 

+0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$563,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, and equipment. 

Efficiency Savings 

Personnel Security Background 

Investigations -$17,000 / +0 FTE 

TIGTA will generate a savings from a 

reduction in the number of personnel 

investigations it will need to conduct based on 

the results of an ongoing position sensitivity 

designation review. 

Space Optimization -$67,000 / +0 FTE 

TIGTA will achieve real property cost savings 

through the reduction of space, non-renewal of 

lease agreements, and/or the consolidation of 

existing space. TIGTA continues to 

implement telework and office right-sizing 

measures in order to reduce its footprint. As a 

result, TIGTA will need less building space, 

generating a savings of $67,000.

Program Increases

Enhance Capabilities to Protect the Tax 

Administration System Against Fraud & 

Cyberthreats +$6,592,000 / +24 FTE 

The threats to the Nation’s tax system are 

growing in complexity and sophistication. 

TIGTA developed this initiative to improve its 

use of advanced analytics and cross-discipline 

approaches to enhance its capabilities to assess 

and protect the Federal tax system.

Explanation of Budget Activities

Audit ($65,100,000 from direct 

appropriations, $600,000 from reimbursable 

resources) 

TIGTA’s audit work is concentrated on highrisk areas and the IRS’s progress in achieving 

its strategic goals. TIGTA strategically 

evaluates IRS programs, activities, and 

functions so that resources are expended in the 

areas of highest vulnerability to the Nation’s 

system of tax administration. TIGTA’s audit 

program includes both statutory audit 

requirements and specific audits identified 

through TIGTA’s risk-assessment process. By 

focusing on the most critical areas, TIGTA 

identifies and recommends improvements that 

add value while addressing high-risk tax 

administration issues. TIGTA’s audits and 

recommendations help promote the economy, 

efficiency, and effectiveness of IRS programs; 

ensure the fair and equitable treatment of 

taxpayers; and detect and deter waste, fraud, 

and abuse. 

During FY 2014, TIGTA issued 95 audit 

reports that included potential financial 

benefits of approximately $16.5 billion and 

affected approximately 3.6 million taxpayer 

accounts. In FY 2014, several key ACA 

provisions became effective. Beginning in 

Calendar Year 2014, most individuals are 

required to maintain minimum essential 

coverage and some low to middle income 

individuals will be eligible to receive the 

Premium Tax Credit. As such, FY 2015 and 

FY 2016 will be significant years for oversight 

of ACA provisions. TIGTA’s independent 

oversight plays a key role in ensuring that 

these provisions are implemented and 

administered in accordance with the law and 

the intent of Congress. 

Department of the Treasury - Budget in Brief 33
Investigations ($102,175,000 from direct 

appropriations $900,000 from reimbursable 

resources) 

TIGTA has a statutory responsibility to protect 

the integrity of tax administration and to 

protect the ability of the IRS to collect revenue 

for the Federal Government. To accomplish 

this, TIGTA investigates allegations of serious 

administrative and criminal misconduct 

committed by IRS employees. TIGTA’s 

investigative resources focus on three primary 

areas of investigation: Employee Integrity;

Employee and Infrastructure Security; and

External Attempts to Corrupt Tax 

Administration. 

Employee Integrity: IRS employee 

misconduct, real or perceived, can erode 

public trust and impede the IRS’s ability to 

enforce tax laws effectively. This misconduct 

manifests itself in a variety of ways, including: 

misuse of IRS resources or authority; theft; 

fraud; extortion; taxpayer abuses; and 

unauthorized access to, and disclosure of, tax 

return information. During FY 2014, 54 

percent of TIGTA’s investigative body of 

work involved alleged employee misconduct. 

TIGTA’s special agents possess the 

knowledge, skills, and expertise to investigate 

such matters. TIGTA’s investigation of 

employee misconduct conveys a message to 

IRS employees that these types of activities 

will not go unchecked. TIGTA promotes 

employee integrity by conducting proactive 

investigative initiatives to detect criminal 

activity and other serious misconduct in the 

administration of IRS programs. 

Employee and Infrastructure Security: 

Physical violence, harassment, and 

intimidation of IRS employees pose some of 

the most significant challenges to the 

implementation of a fair and effective system 

of tax administration. TIGTA’s investigative 

efforts place high priority on its oversight of 

IRS employee safety and physical security, 

protecting approximately 95,000 employees 

and 670 facilities throughout the country. 

TIGTA maintains IRS employee and 

infrastructure security by conducting 

investigations into incidents that threaten IRS 

employees, facilities, and infrastructure. In 

October 2008, the Inspector General Reform 

Act of 2008 was signed into law, which allows 

TIGTA to provide physical security to protect 

IRS employees against external threats. 

TIGTA works aggressively and takes swift 

action to protect IRS employees; including 

providing armed escorts to IRS employees in 

dangerous situations. 

 

External Attempts to Corrupt Tax 

Administration: TIGTA is statutorily 

mandated to investigate external attempts to 

corrupt tax administration, which includes 

criminal misconduct by non-employees such 

as attempted bribery of IRS employees and the 

impersonation of the IRS. Many IRS 

employees are in direct contact with taxpayers 

and often encounter situations where a 

taxpayer may challenge the employee’s 

integrity with a bribe. Bribery, or attempted 

bribery, of a public official is a criminal 

offense, and an attack on the integrity of the 

entire IRS organization and the Nation’s 

system of tax administration. TIGTA is 

currently investigating nationwide IRS 

impersonations schemes in which criminals 

are pretending to be IRS employees and are 

attempting to collect phantom tax liabilities 

from innocent taxpayers. To date, the TIGTA 

Hotline has received over 269,000 related 

reports of this type of contact; and over 2,400 

taxpayers have been defrauded out of over $13 

million as a result of this impersonation scam.

Legislative Proposals

TIGTA has no legislative proposals. 

Department of the Treasury - Budget in Brief 34
TIGTA Performance by Budget Activity

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

Actual Actual Actual Target Target

Audit Percentage of Audit Products 

Delivered when Promised to 

Stakeholders

71.0 84.0 65.0 68.0 68.0

Audit Percentage of Recommendations 

Made that Have Been 

Implemented

94.0 87.0 89.0 85.0 85.0

Investigations Percentage of Results from 

Investigative Activities

89.0 90.0 92.0 79.0 81.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

• For FY 2014, TIGTA issued 95 audit 

reports identifying approximately 

$16.5 billion in potential financial benefits 

(i.e., costs savings, increased or protected 

revenue, taxpayer rights and entitlements, 

and inefficient use of resources). 

• For FY 2014, TIGTA achieved its 

FY 2014 target of 65 percent for the 

percentage of audit products delivered 

when promised to stakeholders. TIGTA 

met this goal as a result of monitoring the 

execution of its audit programs. The FY 

2014 actual percentage of 

recommendations made that have been 

implemented was 89 percent. TIGTA 

exceeded its target by four percent as a 

result of continued discussions with the 

IRS throughout the audit process, both on 

the findings and on the potential 

recommended solutions, to ensure that 

feasible alternatives were identified.

• For FY 2016, the Office of Audit targets 

68 percent of audit products will be 

delivered when promised to stakeholders 

and 85 percent of recommendations made 

will be implemented.

 

• During FY 2014, TIGTA initiated 41 

proactive investigative initiatives to detect 

systemic weaknesses or potential IRS 

program vulnerabilities. TIGTA received 

10,193 complaints and opened 2,964 

investigations in FY 2014. During this 

time period, TIGTA also closed 3,054 

investigations, which included 1,343 cases 

of employee misconduct referred for IRS 

action and 144 cases of all types of 

investigations were accepted for criminal 

prosecution. 

• For FY 2016, the Office of Investigations’ 

performance target is 81 percent, a two 

percent increase from the FY 2015 target 

of 79 percent. 

Department of the Treasury - Budget in Brief 35
Department of the Treasury - Budget in Brief 36
Community Development Financial Institutions Fund

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Community Development Financial Institutions Program 146,364 152,400 157,593 5,193 3.41%

Bank Enterprise Award Program 18,000 18,000 0 (18,000) -100.00%

Native American CDFI Assistance Program 15,000 15,000 16,000 1,000 6.67%

Administration 24,636 23,100 24,930 1,830 7.92%

Healthy Food Financing Initiative 22,000 22,000 35,000 13,000 59.09%

Subtotal, Community Development Financial Institutions 

Fund $226,000 $230,500 $233,523 $3,023 1.31%

Offsetting Collection - Reimbursables 206 0 0 0 0.00%

User Fees 0 249 986 737 295.98%

Recovery from Prior Years 4,200 5,200 5200 0 0.00%

Unobligated Balances from Prior Year 24,817 10,856 5,500 (5,356) -49.34%

Total Program Operating Level $255,223 $246,805 $245,209 ($1,596) -0.65%

Direct FTE 76 79 87 8 10.13%

Total FTE 76 79 87 8 10.13%

Summary 

The FY 2016 Budget requests an appropriation 

of $233,523,000 for the Community 

Development Financial Institutions Fund 

(CDFI Fund) to support its mission of 

promoting economic opportunity and 

community development. 

The CDFI Fund expands the availability of 

credit, investment capital, and financial 

services in distressed urban and rural 

communities and for underserved populations. 

The CDFI Fund carries out the Community 

Development Banking and Financial 

Institutions Act of 1994, as well as certain 

programmatic provisions of the Community 

Renewal Tax Relief Act of 2000, the Housing 

and Economic Recovery Act of 2008, and the 

Small Business Jobs Act of 2010. 

The CDFI Fund supports the creation and 

expansion of diverse Community 

Development Financial Institutions (CDFIs), 

which provide loans, investments, business 

counseling, basic banking services, and 

financial literacy training to underserved 

communities. Working primarily through 

CDFIs, the CDFI Fund facilitates business 

development, commercial real estate, housing 

development and home ownership. The CDFI 

Fund’s activities leverage billions of private 

sector investment dollars from banks, 

foundations, and other funding sources on a 

cumulative basis.

The FY 2016 Budget proposes funding for the 

CDFI Program and Native American CDFI 

Assistance (NACA) Program, as well as the 

Healthy Food Financing Initiative (HFFI). In 

addition to funding the administration of these 

programs, the CDFI Fund request also 

includes funding to administer the New 

Markets Tax Credit (NMTC) Program, the 

CDFI Bond Guarantee Program, and the 

Capital Magnet Fund (CMF). The CDFI Bond 

Guarantee Program supports CDFI long-term 

lending in underserved areas by providing a 

source of long-term capital. 

Department of the Treasury - Budget in Brief 37
CDFI FY 2016 Budget Highlights

Dollars in Thousands

Community Development Financial 

Institutions Fund FTE Amount

FY 2015 Enacted 79 $230,500 

Changes to Base: 

Maintaining Current Levels (MCLs): - $437 

Pay-Raise - $100 

Pay Annualization - $26 

FERS Contribution Increase - $38 

Non-Pay - $273 

Non-Recurring Costs: - ($523)

Reasearch and Evaluation - ($523)

Efficiency Savings: - ($84)

Travel Savings - ($84)

Subtotal FY 2016 Changes to Base - ($170)

Total FY 2016 Base 79 $230,330 

Program Changes: 

Program Increases: - $21,193 

Community Development Financial 

Institutions Program - $5,193 

Native American CDFI Assistance 

Program - $1,000 

Healthy Food Financing Initiative $13,000 

Administration - Capital Magnet 

Fund 8 $2,000 

Program Decreases: - ($18,000)

Bank Enterprise Award Program - ($18,000)

Total FY 2016 Request 87 $233,523 

FY 2016 Budget Adjustments 

Maintaining Current Levels (MCLs) 

Pay-Raise +$100,000 / +0 FTE 

Funds are requested for the proposed January 

2016 pay-raise. 

Pay Annualization +$26,000 / +0 FTE 

Funds are requested for annualization of 

January 2015 pay-raise.

FERS Contribution Increase +$38,000 / 

+0 FTE

Funds are requested for increases in agency

contributions to the Federal Employee

Retirement System based on updated actuarial 

estimates.

Non-Pay +$273,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Non-Recurring Cost

Administration – Research and Evaluation 

(Data Collection) -$523,000 / +0 FTE 

The CDFI Fund will non-recur a portion of 

research and evaluation funding. 

Efficiency Savings 

Administration -$84,000 / +0 FTE 

The CDFI Fund will reduce travel costs 

through the use of fewer travelers, video 

conference calling, and hosting of award 

announcements locally. 

Program Increases

CDFI Program +$5,193,000 / +0 FTE 

The CDFI Fund will increase the amount and 

number of financial assistance (FA) and 

technical assistance (TA) awards. An increase 

of $5.19 million to the CDFI Program will 

result in 5 to 6 additional FA awards, allowing 

an increase in the number of business and 

microenterprise loans, home improvement and 

purchase loans, residential real estate 

transactions, and other consumer loans and 

products offered by CDFI awardees. 

Native American CDFI Assistance Program 

+$1,000,000 / +0 FTE 

The CDFI Fund will increase the NACA 

Program by $1 million in order to increase 

participation by Native communities by 

improving technical assistance and capacity 

building for Native CDFIs. 

Healthy Food Financing Initiative 

+$13,000,000 / +0 FTE 

The CDFI Fund will increase the amount and 

number of FA awards for the Healthy Foods 

Financing Initiative. An increase of $13 

million will result in 6 to 7 more awards to 

expand the offering of affordable financing for 

Department of the Treasury - Budget in Brief 38
healthy food retail options in distressed 

communities.

Administration - Capital Magnet Fund

+$2,000,000 / +8 FTE

The CDFI Fund proposes to increase its

administrative budget by $2 million to 

administer the CMF. The CDFI Fund 

estimates this will support approximately $60 

million in award funding. Awards made 

through the CMF will be funded by annual 

transfers from Fannie Mae and Freddie Mac.

Program Decreases

Bank Enterprise Award Program 

-$18,000,000 / +0 FTE 

The President’s Budget proposes not to fund 

the BEA program in FY 2016. 

Explanation of Budget Activities

Community Development Financial 

Institutions Program ($157,593,000 from 

direct appropriations) 

The CDFI Program uses federal resources to 

invest in and build the capacity of CDFIs to 

serve low-income and underserved individuals 

and communities lacking adequate access to 

affordable financial products and services. 

The CDFI Program provides monetary awards 

for financial assistance to further economic 

development (job creation, business financing, 

and commercial real estate development); 

affordable housing (housing development and 

homeownership); and community 

development financial services (provision of 

basic banking services to underserved 

communities and financial literacy training). 

The CDFI Program also provides technical 

assistance awards to help CDFIs build their 

capacity to serve their target markets through 

the acquisition of consulting services, 

technology purchases, and training. 

New Markets Tax Credit Program ($0 from 

direct appropriations) 

The NMTC Program attracts private sector 

capital into low-income communities. 

Community Development Entities (CDEs) 

apply to the CDFI Fund for allocations of tax 

credit authority in annual competitive rounds. 

Taxable investors receive NMTCs in exchange 

for making equity investments in these CDEs, 

which in turn invest equity or debt into 

qualified businesses. In addition to awarding 

tax credits, the CDFI Fund monitors CDE 

compliance through the terms of their 

allocation agreements. 

The FY 2016 President’s Budget proposes to 

permanently extend the NMTC, allowing up to 

$5 billion in qualifying investment in each 

year beginning in 2015. The proposal would 

also permit the NMTC to offset the Alternative 

Minimum Tax (AMT) liability. 

Native American CDFI Assistance Program 

($16,000,000 from direct appropriations) 

The Native Initiatives include two 

components: (i) the NACA Program through 

which financial assistance and technical

assistance awards are provided to build the 

capacity of new or existing Native CDFIs 

serving Native Communities; and (ii) 

complementary capacity-building initiatives 

that foster the development of Native CDFIs 

through training and technical assistance, 

strengthen their operational capacity, and 

guide them in the creation of important 

financial education and asset-building 

programs for their communities.

Healthy Food Financing Initiative 

($35,000,000 from direct appropriations) 

Through the Administration’s Healthy Food 

Financing Initiative, the CDFI Fund will build 

on program achievements in FYs 2011 - 2015 

by continuing to support and finance healthy 

food alternatives in low-income communities. 

To date, all 12 of the first-round HFFI 

Department of the Treasury - Budget in Brief 39
awardees and 11 of the 12 second-round 

awardees have reported on three years of HFFI 

investments. In total, 99 loans/investments 

were made to 114 projects totaling 

$43,589,977 in HFFI eligible activities. A total 

of 64 retail outlets were funded resulting in 

899,021 square feet of new retail space 

developed for projects ranging from small 

green grocers to large supermarkets, all

serving low-income, low-access census tracts. 

Another 50 non-retail projects developed 

1,122,816 square feet of space for eligible 

healthy food activities such as farming and

development of distribution centers. 

Bond Guarantee Program ($0 from direct 

appropriations) 

The Small Business Jobs Act of 2010 (Public 

Law 111-240) created the CDFI Bond 

Guarantee Program. Bonds issued under the 

program support CDFI lending activity in 

underserved communities by providing a 

source of long-term capital. Qualified Issuers 

(CDFIs or their designees) issue bonds that are 

guaranteed by the Secretary of the Treasury 

and use the bond proceeds to make loans to 

Eligible CDFIs for eligible community and 

economic development purposes. These 

purposes include community and economic 

development financing for affordable multifamily rental housing, small businesses, 

healthcare facilities, charter schools, and 

commercial real estate in low-income or 

underserved rural areas. For the FY 2013 

round of the program, the CDFI Fund received 

8 guarantee applications that represented $825 

million in bond guarantees. The Department of 

Treasury provided guarantees totaling $325 

million. In FY 2014, the CDFI Fund received 

three guarantee applications that represented a 

total of $415 million in guarantees and the 

Department of Treasury provided guarantees 

of $200 million. 

Capital Magnet Fund ($0 from direct 

appropriations) 

The Housing and Economic Recovery Act of 

2008 authorized CMF to be administered by 

the CDFI Fund. The purpose of CMF is to 

make awards to CDFIs and qualified nonprofit 

housing providers that would be leveraged to 

attract other financing sources for affordable 

housing. By statute, recipients must leverage

CMF dollars by a factor of at least 10:1]

Administration ($24,930,000 from direct 

appropriations) 

Administration encompasses the CDFI Fund’s 

operational support and management activities 

for each of the monetary award, bond 

guarantee, and tax credit programs that it 

administers. This includes finalizing the terms 

of assistance agreements with awardees, 

making disbursements, and monitoring 

awardee compliance with the terms of their 

multi-year assistance and allocation 

agreements. In addition, resources will be 

utilized for a business application 

enhancement upgrade and external program 

research evaluations. Administration funds 

will also support the non-monetary award 

programs and activities (the NMTC Program, 

CDFI and CDE certification, and 

recertification) and the administration of the 

CDFI Bond Guarantee Program and the 

Capital Magnet Fund. 

Legislative Proposals

Treasury requests extension of the CDFI

Bond Guarantee Program through FY 2017 

and proposes reforms to the program to 

increase participation and ensure credit-worthy 

CDFIs have access to this important source of 

capital, while continuing to maintain strong 

protections against credit risk. Treasury 

proposes the following legislative changes to 

the CDFI Bond Guarantee Program: (i) to 

extend the program through FY 2017; (ii) to 

reduce the minimum bond issue size from 

$100 million to $25 million; (iii) to permit the 

Department of the Treasury - Budget in Brief 40
Secretary to adjust the risk-share pool payment

requirement, based on the borrower’s credit 

quality, from zero to four percent; (iv) to 

collect a mandatory one percent fee from all 

borrowers; and (v) to revise the relending 

account language to correct a technical 

drafting error. 

CDFI Performance by Budget Activity

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

Actual Actual Actual Target Target

Community Development 

Financial Institutions Program

CDFI - Percent of Loans & 

Investments Originated in 

Distressed communities and to 

underserved populations by 

amount of loans (Annual) %

84.9% 77.1% 70.8% 60.0% 60.0%

Administration ALL - Award Cycle Time 

(months)

6.5 6.8 7.1 7.0 7.0

Administration ALL – Affordable Housing (units) 27,433 26,391 32,621 36,000 29,000

New Markets Tax Credit 

Program

Community Development 

Entities' Annual Qualified Equity 

Investments In Low-Income 

Communities ($ billions)

$4.7 $5.5 $4.0 $3.5 $3.5

Key: DISC - Discontinued and B – Baseline

Description of Performance

In the FY 2014 funding round of the CDFI 

Program, the CDFI Fund received applications 

from 411 organizations, requesting over $500 

million in financial and technical assistance 

awards and for the Healthy Food Financing 

Initiative (HFFI). The CDFI Fund awarded 

more than $195 million in grants to 197 

CDFIs, including $22.4 million for HFFI. 

This activity shows the continued strong 

growth in demand for CDFI Fund Programs. 

As detailed in the CDFI Fund Performance by 

Budget Activity Table, in FY 2014, CDFI 

Program awardees reported that over 70 

percent of loans were originated in distressed 

communities and to underserved populations. 

By regulation, CDFIs must originate 60 

percent or more of their loans and investments 

in eligible distressed census tracts or to 

underserved populations. The threshold is set 

at 60 percent in recognition that CDFIs need to 

balance safety and soundness by maintaining a 

diversified portfolio. Loans in highly 

distressed areas tend to be higher risk as well 

as inefficient to originate and manage. The 

trend for FY 2012-2014 indicates that CDFI 

awardees have been successful in meeting 

their mission of serving distressed 

communities and underserved populations 

while maintaining sound investment portfolio 

performance. The three year trend line shows a 

drop from 85 percent to 71 percent, however 

from year to year it is typical for this number 

to fluctuate. The 10 year average from FY 

2003-2012 was 74%, which is comparable to 

the three year average of 77% for FY 2012-

2014. 

In FY 2014, the CDFI Fund completed its 

application-award cycle for all program 

awards in 7.1 months. The application-award 

target was missed slightly because of a change 

in congressionally mandated matching funds 

requirements. In the FY 2014 appropriation 

Congress required supplemental notification of 

applicants and additional reviews of the 

applicant’s matching documentation. The 

target remains 7 months for FYs 2015 and 

2016. 

Department of the Treasury - Budget in Brief 41
 

In FY 2014, the CDFI Fund reported 

supporting the creation or preservation of

32,621 units of affordable housing for its Allaffordable housing measure. This includes 

housing outcomes from the CDFI, NMTC and 

CMF programs. The target was exceeded due 

to higher than projected results achieved by 

CMF awardees. The targets for FY 2015 and 

2016 do not factor in results from future 

rounds of funding for CMF. The outcomes of 

the FY 2016 CMF awards will not be reported 

until FY 2017. 

In FY 2014, NMTC allocatees reported 

making annual qualified investments of nearly 

$4 billion in low-income communities, falling 

below the stretch target of $5 billion. The goal 

was established based on expectations about 

investments made from available tax authority 

balances. The FY 2015 and FY 2016 targets 

were decreased to $3.5 billion to reflect the 

actual annual tax credit authority enacted by 

Congress in recent years.

Department of the Treasury - Budget in Brief 42
Financial Crimes Enforcement Network

Program Summary by Budget Activity

Dollars in thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

BSA Administration and Analysis $112,000 $112,000 $112,979 $979 0.87%

Subtotal, Financial Crimes Enforcement 

Network $112,000 $112,000 $112,979 $979 0.87%

Offsetting Collections - Reimbursables $2,000 $3,000 $3,000 $0 0.00%

Recovery from Prior Years $500 $500 $500 $0 0.00%

Unobligated Balances from Prior Years $41,000 $50,000 $50,000 $0 0.00%

Total Program Operating Level $155,500 $165,500 $166,479 $979 0.59%

Direct FTE 345 345 343 (2) -0.58%

Reimbursable FTE 1 1 1 0 0.00%

Total FTE 346 346 344 (2) -0.58%

Summary 

The mission of the Financial Crimes 

Enforcement Network (FinCEN) is to 

safeguard the financial system from illicit use, 

and combat money laundering and promote 

national security through the collection, 

analysis, and dissemination of financial 

intelligence and strategic use of financial 

authorities.

In carrying out its mission, FinCEN has 

numerous statutory areas of responsibility: 

developing and issuing regulations under the 

Bank Secrecy Act (BSA); enforcing 

compliance with the BSA in partnership with 

law enforcement and other regulatory partners; 

serving as the U.S. Financial Intelligence Unit 

(FIU) and maintaining a network of 

information sharing with FIUs in more than 

130 partner countries; receiving millions of 

new financial reports each year and 

maintaining a database of over 170 million 

reports; analyzing and disseminating financial 

intelligence to federal, state, and local law 

enforcement, federal and state regulators, 

foreign FIUs, and industry; and bringing 

together the disparate interests of law 

enforcement, FIU, regulatory partners, and 

industry. 

To meet its priorities in FY 2015 and FY 2016, 

FinCEN will:

• Adopt strong anti-money laundering and 

counterterrorism financing (AML/CFT) 

regulatory safeguards;

1

• Implement and enforce AML/CFT 

regulatory authorities and employ targeted 

financial measures against priority threats;

• Use research, analysis, and advanced 

analytics to identify and explain priority 

threats to the financial system;

• Implement and manage programs to 

effectively network, coordinate, and share 

financial intelligence between FinCEN 

and its domestic and foreign partners in 

government and private industry1

; and

• Develop and support effective technology 

systems to collect and analyze financial 

intelligence from private industry and 

share it with domestic and foreign 

government partners. 

1 Directly supports the Strategic Objective Annual 

Review (SOAR) next steps.

Department of the Treasury - Budget in Brief 43
FinCEN FY 2016 Budget Highlights

Dollars in Thousands

Financial Crimes Enforcement Network FTE Amount

FY 2015 Enacted 345 $112,000

Changes to Base:

Maintaining Current Levels (MCLs): - $1,896

Pay-Raise - $521

Pay Annualization - $133

FERS Contribution Increase - $191

Non-Pay - $1,051

Efficiency Savings: - ($726)

Efficiency Savings - ($726)

Subtotal Changes to Base - $1,170

Total FY 2016 Base 345 $113,170

Program Changes:

Program Decreases: (2) ($191)

Administrative Staffing Reduction (2) ($191)

Program Increases: - -

Total FY 2016 Request 343 $112,979

FY 2016 Budget Adjustments 

Adjustments to Request

Maintaining Current Levels (MCLs) 

Pay-Raise +$521,000 / +0 FTE 

Funds are requested for the proposed January 

2016 pay-raise.

Pay Annualization +$133,000 / +0 FTE 

Funds are requested for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$191,000 / 

+0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial

estimates.

Non-Pay +$1,051,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment. 

Efficiency Savings 

Efficiency Savings -$726,000 / +0 FTE 

These efficiencies are a result of reductions in 

travel, printing, and savings realized through 

re-evaluated or negotiated contracts. 

Program Decreases

Administrative Staffing Reduction -$191,000 

/ -2 FTE

FinCEN will redistribute the workload of two 

administrative positions lost through attrition.

Explanation of Budget Activities

BSA Administration and Analysis 

($112,979,000 from direct appropriations, 

$3,000,000 from reimbursable resources) 

The programs funded by this budget activity 

support Treasury Strategic Goal 4: “Safeguard 

the financial system and use financial 

measures to counter national security threats.” 

This activity comprises FinCEN’s efforts to 

develop and issue regulations under the Bank 

Secrecy Act (BSA); enforce compliance with 

the BSA in partnership with regulatory 

partners and as the sole BSA regulator across

numerous industries; receive BSA reports and 

maintain a database; analyze and disseminate 

financial intelligence to federal, state, and 

local law enforcement, federal and state 

regulators, foreign FIUs, and industry; and 

serve as the U.S. FIU and maintaining network 

of information sharing with FIUs in partner 

countries. The goal owner for this budget 

activity is the Director of FinCEN. 

Legislative Proposals

FinCEN has no legislative proposals

Department of the Treasury - Budget in Brief 44
FinCEN Performance by Budget Activity

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

Actual Actual Actual Target Target

BSA Administration and Analysis Percentage of Users Finding That 

the Financial Intelligence Collected 

by FinCEN Pursuant its 

Regulations Provides Valuable 

Information to Safeguard the 

Financial System, Combat Money 

Laundering, and Counter Terrorist 

Financing

90.0 80.0 81.0 82.0 83.0

BSA Administration and Analysis Percentage of Stakeholders Finding 

FinCEN’s Information Sharing Has 

Contributed to Their Organization’s 

Responsibilities

N/A N/A 89.0 89.0 90.0

BSA Administration and Analysis Percentage of Users Satisfied with 

FinCEN Information Sharing 

Systems

N/A N/A 78.0 78.0 80.0

Description of Performance

To support the Treasury and FinCEN Strategic 

Objectives to adopt strong AML/CFT 

regulatory safeguards, FinCEN tracked the 

percentage of users finding that financial 

intelligence collected by FinCEN pursuant to

its regulations provides valuable information 

to safeguard the financial system, combat 

money laundering, and counter terrorist 

financing. The survey looked at the value of 

FinCEN data, such as whether the data 

provided unknown information, supplemented 

or expanded known information, verified 

information, helped identify new leads, opened 

a new investigation or examination, supported 

an existing investigation or examination, or 

provided information for an investigative or 

examination report. In FY 2014, 81 percent of 

users found the financial intelligence useful. 

FinCEN did not meet the target of 84 percent. 

To meet future targets FinCEN will put greater 

emphasis on both in-person and on-line 

training that will better assist users in 

understanding and utilizing the FinCEN Query 

tool for their unique cases and situations. 

To support the Treasury and FinCEN Strategic 

Objectives to implement and manage 

programs to effectively network, coordinate, 

and share financial intelligence between 

FinCEN and its domestic and foreign partners 

in government and private industry, FinCEN 

measured the percentage of stakeholders 

finding FinCEN’s information sharing has 

contributed to their organization’s 

responsibilities. This measure examined the 

survey responses of customers who have had 

contact with FinCEN to exchange information, 

including industry, regulators, and law 

enforcement, both domestic and foreign. This 

is a meaningful measure as it tracks FinCEN’s 

efforts to share financial intelligence. FinCEN 

baselined the results of this measure in 

FY 2014 with 89 percent finding information 

sharing valuable. FinCEN attributes this 

performance to high levels of satisfaction of 

domestic customers with the 314(a) program 

and responses received from regulatory Help 

Line calls. 

To support the Treasury and the FinCEN 

Strategic Objectives to develop and support 

effective technology systems to collect and 

analyze financial intelligence from private 

industry and share it with domestic and foreign 

government partners, FinCEN tracked the 

percentage of users satisfied with FinCEN 

information sharing systems. This measure is 

Department of the Treasury - Budget in Brief 45
meaningful because the technology allows 

authorized persons to more readily access BSA 

information and better enable them to conduct 

investigations more efficiently and 

effectively. In FY 2014 the baseline score was 

78 percent of users were satisfied with 

FinCEN’s information sharing 

systems. FinCEN attributes this performance 

to high levels of satisfaction with the Egmont 

Secure Web (ESW) that shares information 

with foreign FIUs and the E-Filing system 

used to submit financial reports. 

Department of the Treasury - Budget in Brief 46
Alcohol and Tobacco Tax and Trade Bureau

Program Summary by Budget Activity

Dollars in thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Collect the Revenue $51,721 $52,721 $52,785 $64 0.12%

Protect the Public $47,279 $47,279 $48,654 $1,375 2.91%

Subtotal, Alcohol and Tobacco Tax and 

Trade Bureau $99,000 $100,000 $101,439 $1,439 1.44%

Offsetting Collections - Reimbursables $6,742 $7,022 $6,300 ($722) -10.28%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment $0 $0 $5,000 $5,000 NA

Transfers In/Out – TEOAF Super Surplus 

Fund $900 $0 $0 $0 NA

Total Program Operating Level $106,642 $107,022 $112,739 $5,717 5.34%

Direct FTE 473 473 474 1 0.21%

Reimbursable FTE 10 10 10 0 0.00%

Appropriations Transferred from IRS Program 

Integrity Cap Adjustment FTE 0 0 35 35 NA

Total FTE 483 483 519 36 7.45%

Summary 

The Alcohol and Tobacco Tax and Trade 

Bureau (TTB) serves as the nation’s primary 

federal authority in the regulation of the 

alcohol and tobacco industries. TTB is 

responsible for the administration and 

enforcement of the Internal Revenue Code 

associated with the collection of excise taxes 

on alcohol, tobacco, firearms, and 

ammunition, and the Federal Alcohol 

Administration Act, which provides for the 

regulation of those engaged in the alcohol 

beverage industry and the protection of U.S. 

consumers by ensuring the integrity of alcohol 

beverage labels and products. 

In FY 2016, TTB will continue to focus its 

efforts on enforcing compliance with alcohol, 

tobacco, firearms, and ammunition laws and 

regulations in the interest of collecting all 

appropriate excise taxes and promoting a 

marketplace for alcohol beverages that 

complies fully with federal production, 

labeling, advertising, and marketing standards. 

The FY 2016 President’s Budget request 

enables TTB to continue the programs and 

activities necessary to meet its strategic goals 

of collecting revenue and protecting the 

public. 

Total resources required to support TTB 

activities for FY 2016 are $112,739,000, 

including $101,439,000 from direct 

appropriations, $6,300,000 from other 

offsetting collections and reimbursable 

programs, and $5,000,000 in appropriations 

transferred from other accounts. 

Department of the Treasury - Budget in Brief 47
TTB FY 2016 Budget Highlights

Dollars in Thousands

Alcohol and Tobacco Tax and Trade 

Bureau FTE Amount

FY 2015 Enacted 473 $100,000

Changes to Base:

Maintaining Current Levels (MCLs): - $1,687

Pay-Raise - $580

Pay Annualization - $148

FERS Contribution Increase - $205

Non-Pay - $754

Efficiency Savings: - ($248)

Reduce Infrastructure Footprint - ($44)

IT Open Source Project - ($60)

Travel and Other Operating Reductions - ($144)

Subtotal Changes to Base - $1,439

Total FY 2016 Base 473 $101,439

Program Changes:

Program Decreases: - ($1,000)

Criminal Enforcement Program - ($1,000)

Program Increases: 36 $6,000

Improvements to Core Business 

Applications/Data Analytics 1 $1,000

Alcohol and Tobacco Enforcement 

Program 35 $5,000

Total FY 2016 Operating Level 509 $106,439

Program Integrity Cap Adjustment 

Included in IRS Budget Request - ($5,000)

Total FY 2016 Net Appropriation Request 509 $101,439

FY 2016 Budget Adjustments 

Adjustments to Request

Maintaining Current Level (MCLs)

Pay-Raise +$580,000 / +0 FTE 

Funds are requested for the proposed January 

2016 pay-raise.

Pay Annualization +$148,000 / +0 FTE 

Funds are requested for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$205,000 /

+0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employees 

Retirement System (FERS) based on updated 

actuarial estimates.

Non-Pay +$754,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

Efficiency Savings 

Reduce Infrastructure Footprint -$44,000 / 

+0 FTE

During the past few years, TTB has launched 

an aggressive telework program. This has 

enabled TTB to close half of its field offices, 

with the remaining field offices being vital to 

TTB’s mission. TTB has also reconfigured

and reduced the amount of office space needed 

to operate its headquarters in Washington, 

D.C., and the National Revenue Center in 

Cincinnati. In an ongoing effort to improve 

space utilization, TTB has identified additional 

opportunities to reduce leased space, resulting 

in additional savings of $44,000. 

IT Open Source Project -$60,000 / +0 FTE 

TTB has launched a project to move its custom 

IT applications infrastructure from proprietary 

hardware and software to Open Source 

software. This initiative will lower the cost of 

both hardware refresh and maintenance and 

software licensing and maintenance.

Travel and Other Operating Reductions 

-$144,000 / +0 FTE 

TTB will further reduce its operational costs 

through savings in administrative overhead 

and program operations. 

Program Decreases

Criminal Enforcement Program -$1,000,000 / 

+0 FTE 

TTB will reduce its Criminal Enforcement 

Program to the 2014 funding level. The 

program remains critical to the bureau’s ability 

to effectively curtail illicit operations and deter 

others from engaging in diversion activity. 

This level will enable TTB to continue 

pursuing and conducting criminal 

investigations while allowing the bureau to 

address other crucial investments to maintain a

competitive and compliant marketplace for the 

alcohol beverage industry and facilitate trade 

in this growing sector of the economy.

Department of the Treasury - Budget in Brief 48
Program Increases

Improvements to Core Business Applications/

Data Analytics +$1,000,000 / +1 FTE 

TTB is requesting $1 million to invest in its 

priority project to modernize the alcohol 

beverage labeling program by streamlining

and simplifying the Certificate of Label 

Approval (COLA) submission and approval 

process. Given TTB’s limited resources and 

the increased demand for its services from a 

growing business sector, TTB’s current 

business model is unsustainable. TTB intends 

to address these challenges by working 

towards an automated solution to facilitate 

compliant label applications so that products 

may proceed to market more quickly. The 

requested investment would support: 1) system 

enhancements to COLAs Online to improve 

system checks and automate certain review 

and approval functions, 2) enhanced 

functionality of COLAs Online and Formulas 

Online to improve the availability and utility 

of data for analytics purposes, and 3) advanced 

risk modeling to support market-based 

enforcement. The initial investment will allow 

TTB to complete a comprehensive 

requirements analysis and begin implementing 

the business system enhancements for the 

labeling modernization priority project.

Alcohol and Tobacco Enforcement Program 

+$5,000,000 / +35 FTE 

The FY 2016 President’s Budget includes a 

proposal to amend section 251 of the Balanced 

Budget and Emergency Deficit Control Act of 

1985, as amended, to provide a program 

integrity cap adjustment of $5 million for 

TTB’s tax enforcement and compliance 

program to narrow the tax gap in the tobacco 

and alcohol industries and reduce the deficit 

through increased revenue collections. This 

specific funding request is included under the 

IRS budget, which includes the tax 

enforcement and compliance program integrity 

cap adjustment for both the IRS and TTB. 

Under the TTB budget, this item is being 

reported as “Appropriations Transferred from 

IRS Program Integrity Cap Adjustment.”

The proposed cap adjustment for TTB tax 

enforcement and compliance activities 

includes $5 million in new revenue-producing 

tax compliance initiatives in FY 2016 and $5 

million in additional new initiatives each fiscal 

year from 2017 through 2020. TTB will target 

known points in the supply chain that are 

susceptible to diversion activity and prioritize 

forensic audits and investigations of high-risk 

activity and entities in the alcohol and tobacco 

trade. Because these enforcement initiatives

must be sustained over time in order to 

maximize their potential taxpayer returns, the 

total above-base cap adjustment including 

inflation is $193 million over the 10-year 

period. Over this same time period, these 

additional investments will generate an 

estimated $338 million in additional tax 

revenue over the 10-year period. The net 

savings from these investments is $145 

million.

Program Integrity Cap Adjustment Included 

in IRS Budget Request -$5,000,000 / +0 FTE 

This adjustment ensures that the program 

increase for TTB’s Alcohol and Tobacco 

Enforcement Program is reflected only once in 

the 2016 President’s Budget as part of the 

IRS’s program integrity cap adjustment.

Explanation of Budget Activities

Collect the Revenue ($52,785,000 from direct 

appropriations, $3,276,000 from reimbursable 

resources, and a transfer of $5,000,000) 

This budget activity includes all tax 

processing, verification, enforcement, and 

outreach efforts related to administering the 

federal excise tax on alcohol, tobacco, 

firearms, and ammunition products. TTB 

regulates and collects taxes from distilleries, 

breweries, bonded wineries, bonded wine 

cellars, manufacturers of cigarette papers and 

tubes, manufacturers of tobacco products, and 

manufacturers and importers of firearms and 

Department of the Treasury - Budget in Brief 49
ammunition. In ensuring a level playing field 

for all those engaged in the trade of these 

strictly regulated commodities, TTB also takes 

appropriate enforcement action to detect and 

address diversion activity and ensure all 

products sold in the marketplace are properly 

taxpaid. In FY 2014, excise tax collections 

reached nearly $13.6 billion for tobacco 

products, over $7.9 billion for alcohol 

beverage products, and $769 million for 

firearms and ammunition. This budget activity 

supports the TTB strategic goal of ensuring 

that industry remits the proper federal tax on 

these products and the Treasury strategic 

objective to improve the execution of the tax 

code.

Protect the Public ($48,654,000 from direct 

appropriations, $3,024,000 from reimbursable 

resources) 

This budget activity funds the programs that 

ensure the integrity of the products and 

industry members in the marketplace by 

promoting compliance with federal alcohol 

and tobacco laws and regulations by the nearly 

72,000 businesses that hold a TTB permit or 

registration. This budget activity also supports 

the TTB and Treasury objectives to facilitate 

fair and lawful commercial trade in the alcohol 

and tobacco commodities. This budget 

activity supports the TTB strategic goal of 

assuring that alcohol and tobacco industry 

operators meet permit qualifications, and 

alcohol beverage products comply with federal 

production, labeling, and marketing 

requirements.

Legislative Proposals

TTB has no legislative proposals. 

TTB Performance by Budget Activity

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

Actual Actual Actual Target Target

Collect the Revenue Amount of Revenue Collected Per Program 

Dollar

449.0 457.0 457.0 400.0 400.0

Collect the Revenue Percent of Voluntary Compliance from 

Large Taxpayers in Filing Tax Payments 

Timely (In Terms of Revenue)

92.0 92.0 90.0 92.0 94.0

Protect the Public Percent of Electronically Filed Permit 

Applications (NEW)

62.0 70.0 79.0 82.0 85.0

Protect the Public Percentage of Permit Applications 

Processed with Service Standards (NEW)

61.0 50.0 58.0 85.0 85.0

Protect the Public Average Number of Days to Process an 

Original Permit Application for a New 

Alcohol or Tobacco Business

69.0 81.0 84.0 DISC DISC

Protect the Public Customer Satisfaction Rate with TTB 

Permitting Process (NEW)

N/A N/A B 80.0 80.0

Protect the Public Percent of Electronically Filed Label and 

Formula Applications (NEW)

88.0 90.0 93.0 94.0 95.0

Protect the Public Percentage of Alcohol Beverage Label and 

Formula Applications Processed within 

Service Standards (NEW)

83.0 49.0 67.0 85.0 85.0

Protect the Public Percent of Electronically Filed Certificate of 

Label Approval Applications

91.0 92.0 94.0 DISC DISC

Protect the Public Percentage of Importers Identified by TTB 

as Operating without a Federal Permit

13.0 11.0 15.0 DISC DISC

Key: DISC - Discontinued and B - Baseline

Department of the Treasury - Budget in Brief 50
Description of Performance

The bureau continues to collect the federal 

excise taxes due on its regulated commodities 

in a highly efficient manner, and continues to 

enforce compliance with alcohol and tobacco 

laws and regulations. During FY 2014, TTB 

met two out of five of its targeted performance 

goals, and made substantial progress in its 

initiatives intended to improve performance in 

all other performance metrics. The bureau 

plans to continue to monitor its performance, 

and will use performance information to 

improve the effectiveness of its programs.

The investments in the Collect the Revenue 

activity resulted in the following performance 

highlights and accomplishments during 

FY 2014: 

• TTB collected $22.2 billion in excise taxes 

and other revenues from over 10,500 

taxpayers in the alcohol, tobacco, firearms, 

and ammunition industries. The return on 

investment for the Collect the Revenue 

program was $457 for every $1 expended 

on collection activities.

• In three years of operating, TTB opened 72 

criminal cases involving the diversion of 

alcohol and tobacco products. These cases 

represent approximately $345 million in 

tax evasion and, in FY 2014, the total 

amount of tax loss at issue in prosecuted 

cases exceeded $149 million. TTB’s 

enforcement efforts also resulted in an 

additional $117 million in seizures and 

forfeitures.

• TTB completed more than 400 audits, 

examinations, and revenue investigations, 

which contributed to the identification of 

additional tax revenue of approximately

$62 million.

• TTB processed $312 million in cover-over 

payments to Puerto Rico and the U.S. 

Virgin Islands. Federal excise taxes 

collected on rum produced in Puerto Rico 

and the Virgin Islands that are 

subsequently imported into the United 

States are “covered-over,” or paid into the 

treasuries of Puerto Rico and the U.S. 

Virgin Islands.

• TTB processed $316 million in drawback 

claims. Under current law, persons who 

use nonbeverage alcohol in the 

manufacture of medicines, food products, 

flavors, extracts, or perfume and other nonpotable products may be eligible to claim 

drawback of excise taxes paid on distilled 

spirits used in their products. 

The investments in Protect the Public activity 

resulted in the following performance 

highlights and accomplishments during 

FY 2014: 

• TTB issued over 125,000 COLAs to 

ensure compliance with the FAA Act 

provisions that prevent consumer 

deception. TTB also achieved a 94 percent 

electronic filing rate for alcohol beverage 

label applications. Federal law prohibits 

the import or domestic bottling of an 

alcohol beverage without an approved 

COLA, making this TTB service integral 

to U.S. business operations. 

• TTB issued more than 6,100 federal 

permits. A TTB permit or registration is 

required before a business can lawfully 

operate in the alcohol and tobacco 

industries. TTB ensures a fair and lawful 

marketplace and protects consumers by 

screening permit applicants to ensure only 

qualified persons engage in operations in 

the alcohol and tobacco industries. 

• TTB completed more than 600 field 

investigations of industry members in the 

areas of permit qualification, consumer 

complaints, trade practice violations, and 

product integrity verifications, all of which 

serve the bureau’s dual mission of revenue 

collection and consumer protection.

Department of the Treasury - Budget in Brief 51
Department of the Treasury - Budget in Brief 52
Fiscal Service

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Enacted Enacted Request $ Change % Change

Collections 21,531 $24,293 26,609 2,316 9.53%

Do Not Pay Business Center 5,000 $5,064 5,116 52 1.03%

Government Agency Investment Services 13,704 $13,055 13,074 19 0.15%

Government-wide Accounting and Reporting 65,486 $65,486 68,553 3,067 4.68%

Payments 126,636 $121,715 133,179 11,464 9.42%

Retail Securities Services 100,789 $95,237 94,145 (1,092) -1.15%

Summary Debt Accounting 4,737 $4,325 4,243 (82) -1.90%

Wholesale Securities Services 22,282 $19,009 18,931 (78) -0.41%

Subtotal, Fiscal Service $360,165 $348,184 $363,850 $15,666 4.50%

Offsetting Collections - Reimbursables $239,342 $216,863 $227,901 $11,038 5.09%

Total Program Operating Level $599,507 $565,047 $591,751 $10,704 -1.84%

Direct FTE 1,676 1,636 1,586 (50) -3.06%

Reimbursable FTE 714 714 701 (13) -1.82%

Total FTE 2,390 2,350 2,287 (63) -2.68%

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

Improvement Act of 1996 (DCIA)

Summary

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. 

Fiscal Service FY 2016 Budget Highlights

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

Department of the Treasury - Budget in Brief 53
FY 2016 Budget Adjustments

Adjustments to Request

Maintaining Current Level (MCLs)

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 

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. 

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

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 contracts 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

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 OMB, will lead the 

government-wide implementation of the 

DATA Act and associated financial data 

standards. Funds will also support activities 

associated with providing consistent, reliable, 

and searchable government-wide spending 

data on USAspending.gov as well as 

enhancing place-based reporting capabilities 

(referred to as geocoding).

Explanation of Budget Activities

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. 

Department of the Treasury - Budget in Brief 54
Debt Collections ($0 from direct 

appropriations, $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 Federal, 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 

(DCIA) and related legislation. The Fiscal 

Service uses two debt collection programs: 

Treasury Offset Program (TOP) and CrossServicing.

Do Not Pay (DNP) Business Center 

($5,116,000 from direct appropriations and 

$871,000 from reimbursable resources) 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 justbefore-payment checks of selected data 

sources. 

Government Agency Investment Services 

($13,074,000 from direct appropriations, and 

$2,385,000 from reimbursable resources) 

The Government Agency Investment Services 

program consists of three distinct components: 

Federal Investments, Special Purpose 

Securities, and Federal Borrowings. The 

Federal Investments component includes 

issuing, servicing, and redeeming Government 

Account Series securities for federal agencies 

that have legislative authority to invest. The 

Special Purpose Securities component offers a 

flexible alternative for state and local 

governments to refinance their outstanding 

tax-exempt debt. The Federal Borrowings 

component represents Treasury’s role in the 

federal loan program.

Government-wide Accounting and Reporting

($68,553,000 from direct appropriations and 

$1,509,000 from reimbursable resources) The

Government-wide Accounting and Reporting 

(GWA) activity accounts for the monetary 

assets and liabilities of the Federal 

government. It also works with Federal 

agencies to adopt uniform accounting and 

reporting standards and provides support, 

guidance, and training to assist Financial 

Program Agencies in improving their 

Government-wide accounting and reporting 

responsibilities. GWA gathers and publishes 

government-wide financial information which 

is used in establishing fiscal and debt 

management policies and is also used by the 

public and private sectors to monitor the 

government’s financial status. 

Payments ($133,179,000 from direct 

appropriations, and $71,916,000 from 

reimbursable resources)

The Payments activity issues and distributes 

payments, develops and implements Federal 

payment policy and procedures, promotes the 

use of electronics in the payment process, and 

assists agencies in converting payments from 

paper checks to Electronic Funds Transfer 

(EFT). This activity also includes controlling 

and providing financial integrity to the 

payments process through reconciliation, 

accounting, and claims activities. 

Additionally, it collects monies from those 

parties liable for fraudulent or otherwise 

improper negotiation of government checks. 

Retail Securities Services ($94,145,000 from 

direct appropriations and $17,540,000 from 

reimbursable resources)

The Retail Securities Services (RSS) Program 

offers simple, safe, and affordable securities 

that enable Americans to save for their future. 

Department of the Treasury - Budget in Brief 55
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. In support of the President’s 

initiative to help millions of Americans start 

saving for retirement, myRA, a new retirement 

savings account following Roth Individual 

Retirement Account rules, was launched in 

FY 2015. 

Summary Debt Accounting ($4,243,000 from 

direct appropriations, and $824,000 from 

reimbursable resources) 

The Summary Debt Accounting (SDA) 

program produces daily reports on the 

balances and composition of the public debt,

the Monthly Statement of the Public Debt, and 

the annual, audited Schedules of Federal Debt, 

which reports on the single largest liability in 

the annual Financial Report of the U.S. 

Government. SDA also consistently receives 

unqualified opinions on the Schedules of 

Federal Debt. 

Wholesale Securities Services ($18,931,000 

from direct appropriations and $3,878,000 

from reimbursable resources)

The Wholesale Securities Services program is 

responsible for the announcement, auction 

issuance, and settlement of marketable 

Treasury bills, notes, bonds, and Treasury 

Inflation-Protected Securities. It also oversees 

an infrastructure that provides for the transfer, 

custody, and redemption of all Treasury 

marketable securities, which are purchased 

mostly by commercial market participants. 

Legislative Proposals

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 nontax, 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. 

Department of the Treasury - Budget in Brief 56
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. 

By way of background, the Debt Collection 

Improvement Act of 1996 (DCIA) 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 $131.6 million in garnished 

wages (as of April 30, 2013) 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. 

Department of the Treasury - Budget in Brief 57
6. Provide authority to contact delinquent 

debtors via their cell phones. Estimated 

savings: $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. 

Fiscal Service Performance by Budget Activity

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

Actual Actual Actual Target Target

Collections

Percentage Collected 

Electronically of Total Dollar 

Amount of Federal Government 

Receipts 

97 97 98 98 98

Debt Collection

Amount of Delinquent Debt 

Collected Through All Available 

Tools ($ billions) 

6.17 7.02 6.91 7.1 7.36

Government Agency Investment 

Services

Percent of Respondents Selecting 

the Highest Rating of Customer 

Satisfaction with Government 

Agency Investment Services (%) 

60 61 57 58 59

Government-wide Accounting and 

Reporting

Percentage of Government-Wide 

Accounting Reports Issued Timely 99.86 100 100 100 100

Payments

Percentage of Treasury Payments 

and Associated Information Made 

Electronically 

88 92.5 94 95 95.4

Retail Securities Services

Percentage of Retail Customer 

Service Transactions Completed 

within 5 Business Days (%) 

75.7 74.5 89.7 88 88

Summary Debt Accounting Cost Per Summary Debt 

Accounting Transaction ($) 22.47 19.86 16.36 17.53 17.72

Wholesale Securities Services Percent of Auction Results 

Released Accurately (%) 100 99.6 99.3 100 100

Key: DISC - Discontinued and B - Baseline

Description of Performance

Collections: 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 revenue 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. 

Debt Collection: In FY 2014, the Fiscal 

Service collected $6.91 billion in delinquent 

debt. The goal for FY 2015 and FY 2016 is to 

collect $7.1 billion and $7.36 billion, 

respectively, in delinquent debt through the 

Department of the Treasury - Budget in Brief 58
expanding the use 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. 

Do Not Pay (DNP) Business Center: Since 

the DNP Business Center was launched in 

FY 2012, significant progress has been made 

towards providing agencies a one-stop-shop to 

verify eligibility prior to issuing a payment. 

With the enactment of the Improper Payments 

Elimination & Recovery Improvement Act of 

2012 (IPERIA), the DNP Business Center 

began supporting Executive Branch agencies 

in meeting the IPERIA requirement to verify

all payments prior to issuance. The DNP

program offers three options geared towards 

reducing improper payments: The Do Not Pay 

Portal, The Do Not Pay Data Analytics 

Service, and Payment Integration. 

Government Agency Investment Services

(GAIS): 

The GAIS Program strives to provide highquality 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, the 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. 

Government-wide Accounting and 

Reporting: In FY 2014, the Fiscal Service

achieved its target of 100 percent timely 

provision of Government-wide Accounting

reports. These reports include the Daily 

Treasury Statement, Monthly Treasury 

Statement, and Combined Statement. The 

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 

continued timeliness of these reports and 

anticipates it will achieve the 100 percent 

target for FY 2015 and FY 2016. 

Payments: 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. 

Retail Securities Services: In FY 2014, Fiscal 

Service completed 89.7 percent of retail 

customer service transactions within 5 

business days. The annual target for FY 2015 

and FY 2016 is 88 percent. Fiscal Service 

plans to meet performance targets by 

maintaining a skilled customer service 

workforce and streamlining operations to 

effectively manage costs.

Summary Debt Accounting: Summary Debt 

Accounting relies on cost per transaction to 

help manage the efficiency of the program. 

The actual FY 2014 cost was $16.36, which 

was below the target of $17.68. Minor 

application enhancements and increased 

system license fees will increase target costs to 

Department of the Treasury - Budget in Brief 59
$17.53 and $17.72 in FY 2015 and FY 2016, 

respectively. 

Wholesale Securities Services: The accurate 

and timely release of auction results, with an 

emphasis on accuracy, is critical to the success 

of the Wholesale Securities Services 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.

Department of the Treasury - Budget in Brief 60
Internal Revenue Service

Summary

The Internal Revenue Service (IRS) collects 

the revenue to fund the government and 

administer the nation’s tax laws. 

In FY 2014, the IRS processed more than 

199 million tax returns and collected

$3.1 trillion in taxes (gross receipts before tax 

refunds), 93 percent of federal government 

receipts. The IRS continues to focus on 

strengthening the public’s confidence in its 

effective administration of the Nation’s tax 

system.

Through taxpayer service and enforcement 

programs that protect the flow of revenue to 

the government, the IRS remains committed to 

Program Summary by Appropriations Account and Budget Activity

FY 2014 FY 2015 FY 2016

Budget Activity Actuals Enacted Request $ Change % Change 

Taxpayer Services $2,145,195 $2,156,554 $2,408,803 $252,249 11.70%

Pre-filing Taxpayer Assistance and Education 595,168 626,510 682,753 56,243 8.98%

Filing and Account Services 1,550,027 1,530,044 1,726,050 196,006 12.81%

Enforcement $4,914,497 $4,860,000 $5,399,832 $539,832 11.11%

Investigations 601,740 602,298 713,282 110,984 18.43%

Exam and Collections 4,154,342 4,104,453 4,513,376 408,923 9.96%

Regulatory 158,415 153,249 173,174 19,925 13.00%

Operations Support $3,722,599 $3,638,446 $4,743,258 $1,104,812 30.36%

Infrastructure 845,558 829,389 973,521 144,132 17.38%

Shared Services and Support 1,127,931 1,143,864 1,274,194 130,330 11.39%

Information Services 1,749,110 1,665,193 2,495,543 830,350 49.87%

Business Systems Modernization $145,235 $290,000 $379,178 $89,178 30.75%

Subtotal Internal Revenue Service $10,927,526 $10,945,000 $12,931,071 $1,986,071 18.15%

Reimbursables 97,840 119,000 127,000 8,000 6.72%

Offsetting Collections - Non Reimbursables 31,073 33,100 33,075 (25) -0.08%

User Fees 419,145 462,360 450,360 (12,000) -2.60%

Recovery from Prior Years 3,297

Unobligated Balances from Prior Years 241,022 408,926 385,763 (23,163) -5.66%

Transfers In/Out 17 7,561 (5,000) (12,561) -166.13%

Total Program Operating Level $11,719,920 $11,975,947 $13,922,269 $1,946,322 16.25%

Direct FTE 82,643 81,279 90,524 9,245 11.37%

Resources from Other Accounts 9 3 3

User Fee FTE1 1,151 191 191

Reimbursable FTE 619 730 768 38 5.21%

Unobligated Balances from Prior Years1 339

Total FTE 84,761 82,203 91,486 9,283 11.29%

Dollars in Thousands

1

FTE funded by User Fees and Unobligated Balances from Prior Years are included in the direct civilian full-time equivalent 

employment line of the President's Appendix.

FY 2015 TO FY 2016

2 Resources from Transfers In/Out include FY 2014 transfers betw een IRS and the Office of National Drug Control Policy 

(ONDCP) High Intensity Drug Trafficking Area (HIDTA) Program (net transfer $17K), FY 2015 transfers betw een IRS and 

Spectrum (net transfer $7.6M), and an FY 2016 transfer out to the Alcohol and Tobacco Tax and Trade Bureau (TTB) 

($5M).

Department of the Treasury - Budget in Brief 61
making the tax law easier to access and 

understand, to improve voluntary compliance 

in order to reduce the tax gap, the difference 

between taxes owed and taxes paid on time, 

and to pursue those who evade or misrepresent 

their tax responsibility. 

While the IRS continues to respond to new 

requirements and rapid changes, many of our 

innovative and far-reaching programs risk 

delay or cancellation without adequate 

funding. Over the last several years, the IRS 

has experienced significant budget reductions 

that are creating serious obstacles to its ability 

to fulfill its mission. Fortunately, the IRS has 

been able to execute successful filing seasons, 

despite these cuts, but this success is often at 

the expense of other important but less visible 

activities. Any deterioration in taxpayer 

services and enforcement creates a long-term 

risk for the U.S. tax system. 

Total resources requested to support IRS 

activities for FY 2016 are $13,922,269,000. 

This includes $12,931,071,000 from direct

appropriations, of which $667,297,000 is 

provided via a program integrity cap 

adjustment intended to improve the integrity of 

the tax system, an estimated $127,000,000 

from reimbursable programs, and an estimated 

$385,763,000 from unobligated balances from 

prior years, and an estimated $450,360,000 

from user fees. The direct appropriation is 

$1,986,071,000 more than the FY 2015 

enacted level of $10,945,000,000. 

The IRS Strategic Plan guides program and 

budget decisions and supports the Department 

of the Treasury FY 2014 to 2017 Strategic 

Plan, and the Agency Priority Goal of 

“increasing self-service options for taxpayers”. 

The IRS strategic goals provide a central 

direction for the attainment of its mission and 

vision. Our strategic foundation for 

organizational excellence supplements the 

strategic goals and describes the internal 

initiatives required to support taxpayer-facing 

actions. 

Deliver high quality and timely service to 

reduce taxpayer burden and encourage 

voluntary compliance 

Effectively enforce the law to ensure 

compliance with tax responsibilities and 

combat fraud 

Each strategic goal is outcome-based and 

supported by several objectives. The strategic 

objectives to deliver high quality and timely 

service to reduce taxpayer burden and 

encourage voluntary compliance are: 

• Design tailored service approaches 

with a focus on digital customer 

service to meet taxpayer needs, 

preferences, and compliance behaviors 

in order to facilitate voluntary 

compliance;

• Deliver clear and focused outreach, 

communications, and education 

programs to assist taxpayer 

understanding of tax responsibilities 

and awareness of emerging tax laws;

• Provide timely assistance through a 

seamless, multi-channel service 

environment to encourage taxpayers to 

meet their tax obligations and 

accurately resolve their issues;

• Strengthen refund fraud prevention and 

provide prompt assistance to support 

victims of identity theft;

• Reduce taxpayer burden and increase 

return accuracy at filing through timely 

and efficient tax administration 

processing; 

• Improve service delivery and support 

effective tax administration by 

fostering strong relationships with the

tax community and government 

partners; and

Department of the Treasury - Budget in Brief 62
• Enhance the quality of tax services by 

strengthening the outreach, education, 

and tools provided to the tax 

professional community. 

The strategic objectives to effectively enforce 

the law and to ensure compliance with tax 

responsibilities and combat fraud are:

• Enforce domestic and international 

compliance by strengthening expertise, 

adopting innovative approaches, and 

streamlining procedures;

• Deter and promptly resolve 

noncompliance by protecting revenue 

from refund fraud and ensuring 

appropriate revenue collection;

• Build and maintain public trust by 

anticipating and addressing the 

tax-exempt sector’s need for a clear 

understanding of its tax law 

responsibilities;

• Identify trends, detect high-risk areas 

of noncompliance, and prioritize 

enforcement approaches by applying 

research and advanced analytics;

• Address noncompliance by improving 

data, information, and knowledge 

sharing with tax community and 

government partners; and

• Improve compliance and reduce the 

risk of fraud through strong 

partnerships with the tax professional 

community. 

The IRS strategic foundation consists of the 

following objectives: 

• Be the best place to work in 

government by building a highly 

talented, diverse workforce and 

cultivating an inclusive and 

collaborative environment; 

• Ensure a secure environment that 

protects the safety of people and 

security of facilities;

• Implement and maintain a robust 

enterprise risk management program 

that identifies emerging risks and 

mitigates them before they impact 

performance;

• Realize operational efficiencies and 

effectively manage costs by improving 

enterprise-wide resource allocation and 

streamlining processes; 

• Invest in innovative, secure technology 

needed to protect taxpayer data and 

support taxpayer, partner, and business 

needs; and 

• Implement enterprise-wide analytics 

and research capabilities to make 

timely, informed decisions. 

Taxpayer Service Program: The FY 2016 

President’s Budget request will allow the IRS 

to further improve customer service to meet 

taxpayer demand and continue delivering 

services to taxpayers. 

Providing quality taxpayer service is 

especially important to help taxpayers avoid 

making unintentional errors. Assisting 

taxpayers with their questions before they file 

their returns prevents inadvertent 

noncompliance and reduces burdensome 

post-filing notices and other correspondence 

from the IRS. Taxpayer demand for 

self-service and electronic service options at 

the IRS has dramatically increased in recent 

years. The IRS continues its commitment to 

increasing the service options available 

through the IRS website and mobile 

application, allowing more taxpayers to reach 

the IRS through the internet. In FY 2014, 

there were more than 437 million visits to 

www.IRS.gov, and taxpayers checked their 

refund status more than 189 million times by 

accessing the Where’s My Refund? web 

Department of the Treasury - Budget in Brief 63
application in English or in Spanish on the IRS

website. Taxpayers also used the automated 

features on the IRS toll-free phone system. 

Additionally, the IRS2Go mobile application 

has been downloaded 5.4 million times since 

its release. 

Enforcement Program: The FY 2016 

request provides funding to implement Foreign 

Account Tax Compliance (FATCA) (Public 

Law 111-147), Affordable Care Act (ACA) 

(Public Law 111-148), and Information Return 

Document Matching (IRDM) of merchant 

payment card and third party reimbursements 

and basis reporting; protect revenue by 

reducing the instances of refund fraud, 

including tax-related identity theft; restore 

eroding examination and collection 

enforcement programs; expand criminal 

investigation capabilities; and address 

compliance issues in the tax-exempt sector. 

Increased resources for the IRS compliance 

programs yield direct, measurable results 

through high return on investment (ROI) 

activities. The FY 2016 Budget includes a 

$667 million program integrity cap adjustment 

that will reduce the deficit through above-base 

funding for high-ROI tax enforcement and 

compliance programs, of which $5 million will 

be transferred to the Alcohol and Tobacco Tax 

and Trade Bureau (TTB). Of the remaining 

$662 million requested in the program 

integrity cap adjustment, $421 million is for 

traditional revenue-producing initiatives 

estimated to generate $2,799 million in 

additional annual enforcement revenue, 

achieving an FY 2018 ROI of $6.4 to $1.0. 

Notably, the ROI is likely understated because 

it only includes amounts received; it does not 

reflect the effect enhanced enforcement has on 

deterring non-compliance. This deterrent 

effect helps to ensure the continued payment 

of over $3 trillion in taxes paid each year 

without direct enforcement measures. The 

program integrity cap also includes $91 

million to protect revenue, $37 million for a 

revenue-enhancing initiative, and $315 million 

for other compliance-related initiatives in the 

Operations Support account. 

New investments are also proposed beyond 

FY 2016, with cap adjustments through FY 

2020 and sustained through additional 

adjustments through 2025. The activities and 

new initiatives funded out of the cap 

adjustments through 2025 will generate

approximately $60 billion in additional 

revenue over 10 years and will cost about $19 

billion for an estimated net savings of $41 

billion. 

Business Systems Modernization: IRS 

modernization efforts focus on building and 

deploying advanced information technology 

systems, processes, and tools to improve 

efficiency and enhance productivity. The 

FY 2016 request will allow the IRS to 

continue leveraging new technologies to 

develop critical information technology 

systems needed to support the IRS’s taxpayer 

service and enforcement programs. As part of 

the $88 million increased funding, the IRS 

plans to invest in an enterprise case 

management system that will provide a 

standardized solution for performing case 

management functions. The Enterprise Case 

Management (ECM) solution will address the 

need to modernize, upgrade, and consolidate 

multiple aging IRS case management systems. 

In addition, the request will allow the IRS to 

expand the capabilities of the Customer 

Account Data Engine 2 (CADE 2) relational 

database which will be replacing other 

antiquated systems and become the tax data 

system-of-record, as well as address a 

financial material weakness. Funding will 

lead the IRS transition to digital government

through web applications that will enhance the 

taxpayer’s online experience, provide secure 

digital communications, and add more 

interactive capabilities to existing web 

self-service products. Additional resources 

will enhance the development, testing, and 

Department of the Treasury - Budget in Brief 64
deployment of various estate and gift tax 

forms for electronic acceptance and increase 

fraud detection, resolution, and prevention 

through use of the Return Review Program 

(RRP). 

IRS FY 2016 Budget Highlights

Dollars in Thousands

Appropriation

$000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2015 Enacted $2,156,554 28,274 $4,860,000 40,564 $3,638,446 12,043 $290,000 398 $10,945,000 81,279

FY 2016 Changes to Base:

Maintaining Current Levels (MCLs): $52,822 $81,120 $65,512 $1,223 $200,677

Pay Annualization 4,837 11,875 4,093 197 21,002

Pay Raise (1.3%) 18,910 46,428 16,004 770 82,112

Non-Pay 3,571 5,171 39,968 48,710

FERS Contribution Increase 7,362 16,488 5,447 256 29,553

Federal Employees Health Benefits (FEHB) Program Modification 18,142 1,158 19,300

Efficiencies/Savings: ($18,399) (61) ($32) ($18,431) (61)

Increase e-File Savings (2,374) (46) (32) (2,406) (46)

HCTC Program Termination (16,025) (15) (16,025) (15)

Reinvestment: $16,025 $16,025

Expand Telecom Infrastructure to Handle Increased Demand 16,025 16,025

Subtotal FY 2016 Changes to the Base $34,423 (61) $81,120 $81,505 $1,223 $198,271 (61)

FY 2016 Current Services (Base) $2,190,977 28,213 $4,941,120 40,564 $3,719,951 12,043 $291,223 398 $11,143,271 81,218

Program Changes:

Program Increases Before Cap Adjustment: $217,826 3,072 $106,612 1,075 $708,110 1,490 $87,955 178 $1,120,503 5,815

Improve Taxpayer Services 183,142 2,806 118,381 164 301,523 2,970

Leverage New Technologies to Advance the IRS Mission 3,618 87,955 178 91,573 178

Implement Information Technology (IT) Changes to Deliver Tax Credits and Other Requirements 305,645 818 305,645 818

Improve Upfront Identification and Resolution of Identity Theft Returns 15,562 193 3,322 18,884 193

Implement Foreign Account Tax Compliance Act (FATCA) 33,625 321 37,380 140 71,005 461

Sustain Critical Information Technology (IT) Infrastructure 188,514 157 188,514 157

Address Impact of Affordable Care Act (ACA) Statutory Requirements 108 1 44,775 432 22,323 50 67,206 483

Enhance Service Options for Taxpayers 13,891 45 2,352 9 16,243 54

Restore Staffing for Essential Support Programs 19,938 152 19,938 152

Increase Service for Low-Income Taxpayers and Taxpayers in Need of Hardship Relief 5,123 27 596 5,719 27

Implement Merchant Card and Basis Matching 28,212 322 6,041 34,253 322

Total Request Before Cap Adjustment $2,408,803 31,285 $5,047,732 41,639 $4,428,061 13,533 $379,178 576 $12,263,774 87,033

Cap Adjustment Program Increases:

Enforcement Initiatives: $347,100 3,161 $203,123 229 $550,223 3,390

Prevent Identity Theft and Refund Fraud 47,738 358 34,424 62 82,162 420

Increase Audit Coverage 97,353 1,038 64,456 61 161,809 1,099

Improve Audit Coverage of Large Partnerships 13,722 107 2,527 16,249 107

Address International and Offshore Compliance Issues 35,206 238 5,451 40,657 238

Enhance Collection Coverage 83,236 986 39,594 48 122,830 1,034

Leverage Data to Improve Case Selection 5,111 14 33,949 45 39,060 59

Address Compliance Risks in the Tax-Exempt Sector 15,511 146 7,951 13 23,462 159

Pursue Employment Tax and Abusive Tax Schemes 8,677 52 8,509 17,186 52

Enhance Investigations of Transnational Organized Crime (TOC) 37,161 194 5,367 42,528 194

Ensure Ethical Standards of Conduct for Practitioners 3,385 28 895 4,280 28

Infrastructure Initiatives: $112,074 101 $112,074 101

Consolidate and Modernize IRS Facilities 85,456 74 85,456 74

Maintain Integrity of Revenue Financial Systems 12,162 7 12,162 7

Implement Agency Wide Shared Services Priorities 10,992 9 10,992 9

Implement Federal Investigative Standards 3,464 11 3,464 11

$5,000 $5,000

Transfer to TTB for High-Return on Investment (ROI) Tax Enforcement Activities 5,000 5,000

Subtotal FY 2016 Cap Adjustment $352,100 3,161 $315,197 330 $667,297 3,491

Total FY 2016 Budget Request $2,408,803 31,285 $5,399,832 44,800 $4,743,258 13,863 $379,178 576 $12,931,071 90,524

Alcohol and Tobacco Tax and Trade Bureau (TTB) Program Integrity Transfer:

Taxpayer Services Enforcement Operations Support Total Business Systems 

Modernization

Department of the Treasury - Budget in Brief 65
FY 2016 Budget Adjustments

Maintaining Current Level (MCLs)

Pay Annualization +$21,002,000 / 0 FTE

Funds are requested for annualization of the 

January 2015 pay raise.

Pay Raise +$82,112,000 / 0 FTE

Funds are requested for the proposed January 

2016 pay raise.

Non-Pay +$48,710,000 / 0 FTE

Funds are requested for inflation adjustments 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment. 

FERS Contribution Increase 

+$29,553,000 / 0 FTE 

Funds are requested for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Federal Employees Health Benefits (FEHB) 

Program Modification +$19,300,000 / 0 FTE

Funds are requested to modify eligibility for 

coverage under the Federal Employees Health 

Benefits (FEHB) Program to certain 

temporary, seasonal, and/or intermittent 

employees. 

Efficiency Savings

Increase e-File Savings 

-$2,406,000 / -46 FTE

These savings are a result of reduced paper 

returns. The IRS projects a total of 1,026,100 

fewer returns filed on paper 

(525,100 individual and 501,000 business 

returns). 

HCTC Program Termination 

-$16,025,000 / -15 FTE

This program was terminated January 1, 2014, 

as provided by the Trade Adjustment 

Assistance Extension Act of 2011 (TAA 

Reauthorization) (Public Law 112-40). 

Reinvestment

Expand Telecom Infrastructure to Handle 

Increased Demand +$16,025,000 / 0 FTE

This reinvestment expands the Customer 

Service Representative (CSR) toll-free call 

center telecommunication infrastructure to 

allow the IRS to answer the additional 

telephone calls expected to result from

implementation of the ACA (Public Law 111-

148). The requested funding covers expanded 

telecommunications infrastructure and 

equipment, hardware for high-speed internet 

connections, and encryption technology.

Program Increases

Improve Taxpayer Services 

+$301,523,000 / +2,970 FTE

This initiative will fund additional staff to 

increase the CSR telephone level of service 

(LOS) to 80 percent. Resources are needed to

meet the increased demand for taxpayer face 

to face assistance resulting from ACA 

implementation; expand staffing to assist with 

managing the ACA submission processing 

workload; provide advanced technology to 

electronically receive amended returns; and 

increase outreach and communications 

activities. 

Leverage New Technologies to Advance the 

IRS Mission +$91,573,000 / +178 FTE

This initiative will implement an Enterprise 

Case Management (ECM) solution for 

performing standard case management 

functions across the IRS; expand the 

capabilities of the CADE 2 relational database 

and address a financial material weakness; 

enhance the taxpayer’s online experience and 

provide secure digital communications; 

complete the design and development of 

various Estate and Gift tax forms for electronic 

acceptance; and increase fraud detection, 

resolution, and prevention through use of the 

RRP. 

Department of the Treasury - Budget in Brief 66
Implement Information Technology (IT) 

Changes to Deliver Tax Credits and Other 

Requirements +$305,645,000 / +818 FTE 

This initiative will allow the IRS to continue to 

implement the new tax law provisions 

contained in the ACA. While the Department 

of Health and Human Services is responsible 

for the health care policy and insurance 

provisions in the legislation, the IRS 

administers more than 45 specific tax 

provisions and numerous cross-agency 

sections related to tax administration. This 

investment supports the administration of one 

of the largest refundable tax credits the IRS 

has administered. The investment touches all 

submission, fraud, and compliance tax 

administration processes to receive, validate, 

and handle individual and business tax returns. 

The investment also will provide enhanced 

technology infrastructure and applications 

support and allow necessary, major 

modifications to existing IRS tax 

administration systems. 

Improve Upfront Identification and 

Resolution of Identity Theft Returns

+$18,884,000 / +193 FTE 

This initiative strengthens the integrity of the 

tax system by improving IRS’s ability to 

detect and prevent improper refunds. 

Resources will allow the IRS to expand 

programs to prevent identity theft-related 

refund fraud, protect taxpayer identities, and 

assist victims of identity theft. 

Implement Foreign Account Tax Compliance 

Act (FATCA) +$71,005,000 / +461 FTE

This initiative provides funding for 

enforcement staff to implement new reporting, 

disclosure, and withholding requirements 

mandated by FATCA that were enacted in the 

Hiring Incentives to Restore Employment Act 

of 2010 (Public Law 111-147). This initiative 

will allow the IRS to address foreign 

withholding compliance and expand coverage 

of international tax return filings. 

This initiative is expected to produce 

additional annual enforcement revenue of 

$155.1 million once the new hires reach full 

potential in FY 2018, an ROI of $2.3 to $1. 

Sustain Critical Information Technology (IT) 

Infrastructure +$188,514,000 / +157 FTE 

This initiative will restore resources for 

mainframes, servers, laptops, network devices, 

and communication equipment to keep IT 

infrastructure (hardware and software) current 

for existing and newly developed IRS IT 

systems. The IRS’s IT division provides 

technology services and solutions that drive 

effective tax administration, improve service, 

modernize systems, and ensure the security 

and resiliency of IRS information systems and 

data. Funding will enhance systems security

to help anticipate evolving threats; increase 

reliability of enterprise infrastructures to 

support the increasing number of tax forms 

submitted electronically; improve risk 

mitigation capabilities; increase the use of 

cloud and virtual environments; and expand 

the use of the next generation of advanced 

telecommunication technologies. 

Address Impact of ACA Statutory 

Requirements +$67,206,000 / +483 FTE

As the tax law changes, the IRS must 

implement programs to ensure that taxpayers 

understand the new laws, and that the IRS can 

address noncompliance. The new ACA tax 

provisions strengthen oversight of tax exempt 

hospital organizations and include new fees on 

manufacturers and importers of branded 

prescription drugs and health insurers. This 

initiative also expands the compliance 

coverage of tax-exempt hospital organizations 

by refining the community benefit reviews and 

by leveraging this data to conduct 

examinations; expands coverage of new 

provisions related to the premium tax credit, 

individual responsibility requirement, and 

large employer insurance; and addresses new 

Department of the Treasury - Budget in Brief 67
audit requirements related to the shared 

employer responsibility payment. 

This initiative includes a $60.8 million initial 

investment in traditional revenue-producing 

activities that are expected to annually produce 

additional enforcement revenue of 

$181.7 million, once the new hires reach full 

potential in FY 2018, an ROI of $2.8 to $1, 

and an initial investment of $6.4 million in 

revenue-protecting activities that are expected 

to protect $88.7 million of revenue, a protected 

ROI of $12.2 to $1. 

Enhance Service Options for Taxpayers 

+$16,243,000 / +54 FTE

The IRS is developing a customer-centric 

strategy known as Service on Demand (SOD) 

strategy. SOD will focus on improving the 

taxpayer experience by understanding their 

wants, needs, and service channel preferences. 

By creating new digital capabilities and 

reducing the burden on taxpayers, SOD will 

change the IRS’s relationship with taxpayers 

and will allow earlier and more frequent 

engagement. This initiative will improve the 

speed and convenience of interacting with the 

IRS.

Restore Staffing for Essential Support 

Programs +$19,938,000 / +152 FTE 

This initiative will provide staffing for IRS 

support organizations to address base 

functional requirements that have been 

challenged by the staffing constraints 

experienced since FY 2011. In order to 

continue to provide services at an optimal 

level, additional staffing is required to provide 

effective procurement, security, and employee 

support services; develop and enhance human 

capital and financial management; support 

research to improve tax administration; and 

protect taxpayer privacy. 

 

Increase Service for Low-Income Taxpayers 

and Taxpayers in Need of Hardship Relief 

+5,719,000 / +27 FTE 

This initiative provides funding to support 

taxpayers facing financial hardship by 

increasing funding for the Low Income 

Taxpayer Clinic (LITC) Grant Program from 

$10 million to $12 million. It also increases 

funding for the Taxpayer Advocate Service 

(TAS) by $3.4 million for the TAS to address 

the anticipated workload resulting from 

increased IRS enforcement activities requested 

in the Budget. 

Implement Merchant Card and Basis 

Matching +$34,253,000 / +322 FTE

This initiative will allow the IRS to take 

advantage of the reporting provisions for

merchant payment card and third party 

reimbursements enacted in the Housing and 

Economic Recovery Act of 2008 (Public Law 

110-289); and basis reporting on security sales 

enacted in the Emergency Economic 

Stabilization Act of 2008 (Public Law 110-343). 

These efforts will ensure business and 

individual taxpayers meet their tax obligations;

investigate discrepancies related to payment 

card and securities basis reporting issues; and 

address fraud and criminal violations that will 

be uncovered as the IRS establishes broader 

compliance programs. This initiative is 

expected to produce additional annual 

enforcement revenue of $321.6 million, once 

the new hires reach full potential in FY 2018, 

an ROI of $11.1 to $1. 

Prevent Identity Theft and Refund Fraud 

+$82,162,000 / +420 FTE

This initiative provides staffing and advanced

technologies to handle the increased workload 

associated with identity theft and refund fraud. 

This initiative will improve upfront 

identification and resolution of identity theft; 

help the IRS address the backlog of identity 

theft cases associated with pre-refund and 

post-refund compliance activities; recover 

Department of the Treasury - Budget in Brief 68
funds related to questionable refunds from 

external sources; prevent false tax returns filed 

by prisoners and reduce erroneous tax refunds; 

focus on bank accounts that receive multiple 

Automated Clearinghouse (ACH) or tax 

refund check deposits; continue the expansion 

of the specialized Criminal Investigation (CI) 

Identity Theft Clearinghouse that processes 

identity theft leads; and invest in information 

technology projects that will protect taxpayer 

information, help verify potentially fraudulent 

identity theft tax returns, and reduce erroneous 

payments. 

This initiative includes a $2.7 million initial 

investment in traditional revenue-producing 

activities that are expected to produce 

additional annual enforcement revenue of 

$63.8 million, once the new hires reach full 

potential in FY 2018, an ROI of $20.6 to $1, 

and an initial investment of $79.4 million in 

revenue-protecting activities that are expected 

to protect nearly $1.0 billion in revenue, a 

protected ROI of $13.2 to $1. 

Increase Audit Coverage 

+$161,809,000 / +1,099 FTE

This initiative will allow the IRS to increase its 

examination program coverage over a broad 

range of compliance priorities. Tight budget 

constraints have eroded the examination staff 

available to conduct audits causing the 

individual audit coverage to decline below 

0.9 percent. Due to growth in individual 

returns filed and the time required for new 

hires to reach full-working level, this initiative 

will still result in an individual coverage rate 

below 1.0 percent. Reduced coverage causes 

increased risk to the integrity of the voluntary 

tax compliance system. This initiative will 

provide additional field employees to reverse 

the decline in individual audit coverage; 

expand coverage of Employment tax returns 

and Estate and Gift tax returns; expand 

examinations; increase individual and business 

document matching programs to identify and 

reduce income misreporting; provide an 

imaging solution to support collaboration and 

improve exam efficiency; and improve the 

effectiveness of the litigation program by 

expediting both the analysis and sharing of 

electronic data during the lifecycle of Tax 

Court cases. 

This initiative includes a $150.7 million initial 

investment in traditional revenue-producing 

activities that are expected to annually produce 

additional enforcement revenue of 

$1,266.7 million, once the new hires reach full 

potential in FY 2018, an ROI of $8.0 to $1, 

and an initial investment of $11.1 million in 

revenue-protecting activities that are expected 

to protect revenue of $112.1 million, a 

protected ROI of $8.8 to $1. 

Improve Audit Coverage of Large 

Partnerships +$16,249,000 / +107 FTE

The resources requested in this initiative will 

increase the number of agents with specialized 

knowledge in partnership law, and strengthen 

enforcement activities relating to flow-through 

entities and improve compliance by enhancing 

Tax Equity and Fiscal Responsibility 

(TEFRA) procedures. This initiative is 

expected to produce additional annual 

enforcement revenue of $129.1 million, once 

the new hires reach full potential in FY 2018, 

an ROI of $7.6 to $1. 

Address International and Offshore 

Compliance Issues +$40,657,000 / +238 FTE

This initiative will expand coverage of entities 

with undisclosed offshore accounts to ensure 

their compliance with required U.S. tax 

reporting. Funding will allow the IRS to 

promote voluntary compliance with U.S. laws 

through strategic enforcement actions directed 

at identifying U.S. taxpayers involved in 

abusive offshore tax schemes through banks, 

other financial institutions, and third party 

structures; expand information gathering and 

data analysis to identify promoters or 

Department of the Treasury - Budget in Brief 69
facilitators of abusive offshore schemes; and

expand the pursuit of international tax and 

financial crimes as well as grow the IRS 

Attaché presence. 

This initiative is expected to produce 

additional annual enforcement revenue of 

$159.6 million, once the new hires reach full 

potential in FY 2018, an ROI of $3.7 to $1. 

Enhance Collection Coverage

+$122,830,000 / +1,034 FTE 

This initiative will ensure that the IRS has 

sufficient resources to work the collection 

inventory and bring taxpayers who fail to pay 

their tax debt into compliance. These 

resources will allow the IRS to address 

growing collection case inventories and call 

volumes that have resulted from reduced 

staffing levels in recent years; increase 

coverage of the growing volume of 

employment tax cases among business 

taxpayers; improve service to taxpayers calling 

the Automated Collection System (ACS) to 

resolve their account delinquencies; provide 

resources for Campus Collection to reach out 

to taxpayers earlier in the collection process;

help taxpayers experiencing economic 

hardship to resolve their liabilities through the 

Offers in Compromise (OIC) program; 

increase opportunities to expand new 

collection streams; develop IT solutions to 

provide better analytic models, case routing, 

and case resolution tools and techniques; 

expand the data available in the Compliance 

Data Warehouse (CDW); and improve the 

capability to identify nonfilers of business 

returns.

This initiative is expected to produce 

additional annual enforcement revenue of 

$1,179.7 million, once the new hires reach full 

potential in FY 2018, an ROI of $9.0 to $1. 

Leverage Data to Improve Case Selection 

+$39,060,000 / +59 FTE 

This initiative will improve data accessibility 

and usability for better case selection, issue 

identification, and treatment assignment. 

Taxpayer behaviors, including those of 

individuals, small businesses, and large 

corporate taxpayers, are constantly changing. 

The IRS must adapt quickly to changing 

taxpayer behavior to prevent fraud and tax 

code misuse. This initiative will increase the 

digital availability of tax return information; 

allow the IRS to identify taxpayer behavioral 

changes and test compliance responses 

promptly; optimize compliance case 

identification and treatment assignment to 

increase effectiveness while reducing 

risk-related costs; enhance IRS large corporate 

taxpayer issue identification/return selection 

activities; and provide skilled staff in areas 

such as machine learning, statistical modeling, 

and data mining. 

Improved use of analytics will increase 

revenue collection and, while this is not 

included in the IRS’s traditional ROI 

calculations, this initiative is projected to 

increase revenue by $75.4 million in FY 2018, 

achieving an ROI of $1.8 to $1.

Address Compliance Risks in the 

Tax-Exempt Sector +$23,462,000 / +159 FTE

This initiative will help the IRS build and 

maintain public trust by anticipating and 

addressing the tax-exempt sector’s needs, 

encourage voluntary compliance, and 

effectively enforce the law to ensure

compliance. It will enhance the streamlined 

application process for exempt organizations 

seeking tax-exempt status; protect taxpayer 

donations to charities; protect participants in 

retirement plans and their assets, which total 

over $23 trillion; provide voluntary correction 

opportunities related to employment taxes and 

retirement plans; improve service by 

integrating three separate determination 

application systems into one end-to-end 

Department of the Treasury - Budget in Brief 70
system; and focus resources on areas with the 

greatest risk and ensure that all resources in 

the Tax Exempt and Government Entities 

arena are developed and deployed 

appropriately.

Pursue Employment Tax and Abusive Tax 

Schemes +$17,186,000 / +52 FTE 

This initiative will enhance overall 

enforcement efforts, increase the number of 

convictions and assessments, and allow the 

IRS to apply network analysis to the 

investigation of abusive tax schemes. 

Network analysis software will proactively 

identify potentially noncompliant taxpayers in 

multiple program areas. These resources will 

improve the sharing of information among IRS 

operating divisions and expand the IRS’s 

capability to identify significant tax cases.

Enhance Investigations of Transnational 

Organized Crime (TOC) 

+$42,528,000 / +194 FTE 

This initiative will address the growth in 

criminal activity of a global nature by allowing 

IRS to hire special agents who will support the 

U.S. National Drug Control Strategy, the 

President’s Strategy to Combat Transnational 

Organized Crime, and the National Money 

Laundering Strategy; increase investigations of 

third party money launderers and international 

banks; work with international partners to 

identify illicit financial networks that are 

utilized to launder the proceeds of TOC 

organizations; and strengthen the IRS’s 

partnerships with domestic and international 

law enforcement agencies to more effectively 

fight transnational narcotics, money 

laundering, and terrorist organizations 

worldwide.

Ensure Ethical Standards of Conduct for 

Practitioners +$4,280,000 / +28 FTE 

This initiative will allow the IRS’s Office of 

Professional Responsibility (OPR) to conduct 

oversight of return preparers who represent 

taxpayers and are subject to Circular 230, 

Regulations Governing Practice Before the 

Internal Revenue Service. These resources 

will provide additional staff to handle the 

growing number of cases requiring litigation; 

establish three satellite offices strategically 

located across the country to handle 

disciplinary case conferences and related 

negotiations; and invest in technology to 

provide video conference capability and a 

system interface that will allow OPR to 

increase research capability and exchange 

referrals and other pertinent information 

electronically with the Return Preparer Office.

Consolidate and Modernize IRS Facilities

+$85,456,000 / +74 FTE 

This initiative will provide space renovation 

resources needed to alter and reduce office 

space throughout the IRS inventory and realize 

an estimated annual rent savings of 

$23 million. The IRS plans to reinvest the 

rent savings from this initiative to fund rent 

increases for the remaining buildings and for 

other new space reduction projects. Major 

reductions and consolidations are achievable at 

IRS occupied buildings where the following 

strategies can be implemented: reducing 

workstation size in accordance with revised 

National Workplace Standards; workspace 

sharing for frequent teleworkers and 

employees who work outside of their assigned 

post of duty more than 80 hours per month; 

and realignment of occupied workspace and 

consolidation of vacant workspace. In order 

for the IRS to take advantage of large scale 

rent reduction opportunities, additional 

funding will be needed.

Maintain Integrity of Revenue Financial 

Systems +$12,162,000 / +7 FTE

This initiative will support and improve the 

IRS’s revenue financial accounting systems to 

ensure timely and accurate reporting of tax 

data. The revenue financial and accounting 

systems include the general ledger, which is 

Department of the Treasury - Budget in Brief 71
required to reconcile and report to the 

Department of the Treasury on $3.1 trillion in 

revenue before refunds and $374 billion in 

individual and business tax refunds in 

FY 2014; produce the annual audited financial 

statements; and perform other operational and 

financial reporting on unpaid tax assessments 

currently identified by GAO as a material 

weakness. This initiative will allow the IRS to 

make the necessary system and programming 

changes to comply with OMB mandates, and 

to stay current with internal changes made to 

IRS’s tax processing systems for tax 

administration that also affect financial 

reporting.

Implement Agency Wide Shared Services 

Priorities +$10,992,000 / +9 FTE 

This initiative will allow the IRS to implement 

security measures to protect IRS employees, 

facilities, operations and information. This 

initiative consists of countermeasures to 

address the security risks identified during the 

FY 2010 Facility Risk Assessment in 191 IRS 

buildings, impacting over 70,000 employees. 

Resources will replace outdated security 

systems and implement solutions to 

vulnerabilities in the IRS facilities. 

Implement Federal Investigative Standards 

+$3,464,000 / +11 FTE 

This initiative will provide resources to 

support the financial responsibility 

determination required by Executive Order 

13467, Reforming Processes Related to 

Suitability for Government Employment, 

Fitness for Contractor Employees, and 

Eligibility for Access to Classified National 

Security Information (June 30, 2008). The 

IRS will receive requests, and process and 

provide results to federal agencies conducting 

background investigations. The resources will 

establish a project office to define the process 

for completing and uploading consent-based 

tax check authorizations in accordance with 

IRC Section 6103 (c) to a central repository; 

establish standards for defining tax 

compliance, create an automated tax 

compliance extract; create a summary report 

that will be used by various federal agencies to 

support a suitability determination or grant a 

security clearance; and conduct associated 

federal tax compliance activities for 

employees and contractors if needed.

Transfer to TTB for High-Return on 

Investment (ROI) Tax Enforcement Activities 

+$5,000,000 / 0 FTE

The IRS will transfer $5 million to TTB for 

those high-ROI tax enforcement activities that 

produce additional revenue through program 

activities designated to narrow the federal 

excise tax gap on alcohol and tobacco 

commodities. More detailed information can 

be found in the TTB chapter of this volume. 

Department of the Treasury - Budget in Brief 72
Explanation of Budget Activities

Taxpayer Services

The FY 2016 President’s Budget request is 

$2,408,803,000 in direct appropriations, an 

estimated $34,600,000 from reimbursable 

programs, an estimated $55,595,000 from user 

fees, and an estimated $14,100,000 from 

unobligated balances from prior years for a 

total operating level of $2,513,098,000. This 

appropriation funds the following budget 

activities.

Pre-filing Taxpayer Assistance & Education 

($682,753,000 from direct appropriations) 

This budget activity funds services to assist 

with tax return preparation, including tax law 

interpretation, publication, production, and 

advocacy services. In addition, funding for 

these programs supports taxpayer education, 

outreach, volunteer support time and locations, 

and pre-filing taxpayer support through 

electronic media. 

Filing & Account Services ($1,726,050,000 

from direct appropriations) 

This budget activity funds programs that 

provide filing and account services to 

taxpayers, process paper and electronically 

submitted tax returns, issue refunds, and 

maintain taxpayer accounts. 

Enforcement

The FY 2016 President’s Budget request is 

$5,399,832,000 in direct appropriations, an 

estimated $39,400,000 from reimbursable 

programs, an estimated $33,075,000 from nonreimbursable offsetting collections, an 

estimated $13,010,000 from unobligated 

balances from prior years, an estimated 

$16,240,000 from user fees, and a $5,000,000 

transfer out to the TTB for a total operating 

level of $5,496,557,000. To reduce future 

deficits, a portion of this appropriation, 

$352,100,000, is requested as part of the 

$667,297,000 total program integrity cap 

adjustment for the IRS, which is an above-base 

investment in tax enforcement and compliance 

programs, including a $5,000,000 transfer to 

TTB for high return on investment 

enforcement activities. In conjunction with 

Return on Investment (ROI) for IRS FY 2016 Enforcement Initiatives

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI

FY 2016 Revenue Producing Enforcement Initiatives $586.7 $1,117.9 1.9 $595.0 $3,457.3 5.8

Revenue-Producing Enforcement Initiatives to Implement Enacted Legislation $166.1 $256.5 1.5 $160.4 $658.4 4.1

Implement Foreign Account Tax Compliance Act (FATCA) 71.0 67.7 1.0 66.6 155.1 2.3

Implement Merchant Card and Basis Matching 34.3 124.2 3.6 29.0 321.6 11.1

Address Impact of Affordable Care Act (ACA) Statutory Requirements 60.8 64.6 1.1 64.8 181.7 2.8

Cap Adjustment Enforcement Initiatives $420.6 $861.4 2.0 $434.6 $2,798.9 6.4

Immediate and Directly Measurable Revenue-Producing Initiatives $333.1 $861.4 2.6 $352.8 $2,798.9 7.9

Address International and Offshore Compliance Issues 40.7 49.3 1.2 43.1 159.6 3.7

Increase Audit Coverage 150.7 397.5 2.6 158.5 1,266.7 8.0

Enhance Collection Coverage 122.8 345.9 2.8 131.2 1,179.7 9.0

Improve Audit Coverage of Large Partnerships 16.2 44.5 2.7 16.9 129.1 7.6

Prevent Identity Theft and Refund Fraud 2.7 24.2 9.0 3.1 63.8 20.6

Strategic Revenue-Producing Initiatives (which do not have immediately measurable 

ROI, but clear long-term revenue effects)

$87.5 $0.0 0.0 $81.8 $0.0 0.0

Address Compliance Risks in the Tax-Exempt Sector 23.5 0.0 0.0 24.6 0.0 0.0

Pursue Fraud Referrals, Employment Tax, and Abusive Tax Schemes 17.2 0.0 0.0 16.2 0.0 0.0

Enhance Investigations of Transnational Organized Crime 42.5 0.0 0.0 35.9 0.0 0.0

Ensure Ethical Standards of Conduct for Practitioners 4.3 0.0 0.0 5.1 0.0 0.0

First Year (FY 2016) Full Performance (FY 2018)

Department of the Treasury - Budget in Brief 73
specified funds provided in the IRS Operations 

Support account, the program integrity cap 

adjustment will support tax compliance 

initiatives expected to generate high returns on 

investment in the form of increased tax 

revenues. This appropriation funds the 

following budget activities. 

Investigations ($713,282,000 from direct 

appropriations) 

This budget activity funds the CI programs 

that explore potential criminal and civil 

violations of tax laws; enforce criminal 

statutes relating to violations of tax laws and 

other financial crimes; and recommend 

prosecution as warranted. These programs 

identify and document the movement of legal 

and illegal sources of income and instances of 

suspected intent to defraud. This budget 

activity also provides resources for 

international investigations involving U.S. 

citizens residing abroad, non-resident aliens, 

and expatriates, and includes investigation and 

prosecution of tax and money laundering 

violations associated with narcotics 

organizations. 

Exam & Collections ($4,513,376,000 from

direct appropriations) 

This budget activity funds programs that 

enforce the tax laws and increase compliance 

through examination and collection and ensure 

proper payment and tax reporting. It also 

includes programs such as specialty tax 

examinations (employment tax, excise tax, and 

estate and gift tax exams), international 

collections, and international examinations. 

The budget activity also provides for campus 

support of the Questionable Refund program 

and associated appeals and litigation activities. 

Regulatory ($173,174,000 from direct 

appropriations) 

This budget activity funds the development 

and printing of published IRS guidance 

materials; interpretation of tax laws; internal 

advice to the IRS on general non-tax legal 

issues such as procurement, personnel, and 

labor relations; enforcement of regulatory 

rules, laws, and approved business practices; 

and support of taxpayers in the areas of 

pre-filing agreements, determination letters, 

and advance pricing agreements. The Return 

Preparer Program is funded within this activity 

in addition to the Office of Professional 

Responsibility, which identifies, 

communicates, and enforces the Treasury 

Circular 230 standards of competence, 

integrity, and conduct of professionals 

representing taxpayers before the IRS. 

Operations Support

The FY 2016 President’s Budget request is 

$4,743,258,000 in direct appropriations, an 

estimated $53,000,000 from reimbursable 

programs, an estimated $378,525,000 from 

user fees, and an estimated $131,787,000 from 

unobligated balances from prior years for a 

total operating level of $5,306,570,000. A 

portion of this appropriation, $315,197,000, is 

requested as part of the $667,297,000 program

integrity cap adjustment for the IRS tax 

enforcement and compliance programs, which 

provides an above-base investment in these 

programs to reduce future deficits. In 

conjunction with specified funds provided to 

the IRS Enforcement account, the program 

integrity cap adjustment will support new tax 

compliance initiatives that are expected to 

generate high returns on investment in the 

form of increased tax revenues. This 

appropriation funds the following budget 

activities. 

Infrastructure ($973,521,000 from direct 

appropriations) 

This budget activity funds administrative 

services related to space and housing, rent and 

space alterations, building services, 

maintenance, guard services, and non-IT 

equipment. 

Department of the Treasury - Budget in Brief 74
Shared Services & Support ($1,274,194,000 

from direct appropriations) 

This budget activity funds policy management, 

IRS-wide support for research, strategic 

planning, communications and liaison, 

protection of sensitive information and the 

privacy of taxpayers and employees, finance, 

human resources, and equity, diversity, and 

inclusion programs. It also funds printing and 

postage, business systems planning, security, 

corporate training, legal services, procurement, 

and specific employee benefits programs.

Information Services ($2,495,543,000 from 

direct appropriations) 

This budget activity funds staffing, equipment, 

and related costs to manage, maintain, and 

operate the information systems critical to the 

support of tax administration programs. This 

includes the design and operation of security 

controls and disaster recovery planning. This 

budget activity funds the development and 

maintenance of the millions of lines of 

programming code that support all aspects and 

phases of tax processing and the operation and 

administration of the mainframes, servers, 

personal computers, networks, and a variety of 

management information systems. 

Business Systems Modernization

The FY 2016 President’s Budget request is 

$379,178,000 in direct appropriations. This 

appropriation funds the following budget 

activity.

Business Systems Modernization

($379,178,000 from direct appropriations) 

This budget activity funds the planning and 

capital asset acquisition of information 

technology (IT) to modernize IRS business 

systems, including labor and related 

contractual costs. It funds investments to 

systems which enhance the IRS’s capability to 

detect, resolve, and prevent tax 

noncompliance, simplify the taxpayer’s online 

experience, provide secure digital 

communications, and add more interactive 

capabilities to existing web self-service 

products. This budget activity ensures the IRS 

continues to move forward and use 

technologies to improve performance and 

change how taxpayers interact with the IRS. 

Legislative Proposals

The FY 2016 President’s Budget request 

includes a number of legislative proposals 

intended to reduce the tax gap and improve tax 

compliance with minimal taxpayer burden. 

The Treasury Office of Tax Analysis (OTA) 

estimates these new tax gap proposals will 

increase revenue by $84.3 billion over the next 

ten years, which includes $59.7 billion 

generated by program integrity cap 

adjustments. The IRS estimates the 

implementation costs for the FY 2016 

President’s Budget tax gap proposals to be 

$157.5 million (excluding the program 

integrity cap adjustments ten-year cost) over 

three years, including the initial startup, 

processing, and compliance operational costs. 

Note that in a few cases estimates are not yet 

available due to timing. The Administration 

proposes to expand information reporting and 

sharing, improve compliance by businesses,

and strengthen tax administration. The Budget 

also proposes to amend the Balanced Budget 

and Emergency Deficit Control Act of 1985 

(BBEDCA), as amended, to provide 10-years 

(FYs 2016-2025) of discretionary caps to 

permit program integrity cap adjustments, 

which cost about $19 billion while generating 

approximately $60 billion, for a net savings of

$41 billion over the 10-year budget window. 

The IRS requests Streamlined Critical Pay 

(SCP) authority through September 30, 2020. 

This SCP authority expired September 30, 

2013. Currently there are approximately 30 

senior employees under SCP appointments. If 

the SCP is not renewed, the IRS will not be 

able to recruit and retain top-level talent, 

especially IT professionals who can help 

protect taxpayer data from cyber-attacks and 

Department of the Treasury - Budget in Brief 75
who are working to modernize the IRS's IT 

infrastructure. According to Treasury 

Inspector General for Tax Administration 

report 2015-IE-R001, The Internal Revenue 

Service’s Use of Its Streamlined Critical Pay 

Authority, “Private sector expertise had been 

crucial to introducing new leadership to 

supplement in-house expertise, and the IRS 

had taken advantage of the private sector 

expertise by retaining the critical pay 

appointees whenever feasible.” 

IRS Performance by Program

 

Description of Performance

In FY 2014, the IRS continued to provide 

quality service to taxpayers and enforce the 

laws in a balanced manner, but was unable to 

maintain some of its performance levels due to 

resource constraints. Nevertheless, IRS 

continued to deliver in key areas, including 

international, tax exempt, and refund fraud, 

including identity theft. 

Taxpayer Services 

Providing taxpayers top-quality service and 

helping them understand and meet their tax 

obligations remain top priorities for the IRS. 

The IRS strives to deliver high quality and 

timely service to taxpayers and stakeholders. 

Although the IRS had significant 

accomplishments serving taxpayers in 

FY 2014, budget constraints forced the IRS to

focus on its top priorities and reduce funding 

in many areas.

The IRS process for programming and testing 

systems was delayed by a month due to the 

lapse in federal appropriations in October 

2013. Despite this delay and significant 

resource constraints, the IRS achieved the 

following results through September 2014: 

• Posted 137.9 million individual returns 

and issued more than 114.8 million 

refunds totaling $315.6 billion; 

• Achieved a 64.4 percent LOS, although 

average wait times increased to almost 

20 minutes;

• Answered 23.1 million assistor calls, 

• Achieved accuracy rates of

95.0 percent for tax law questions and 

96.2 percent of account questions 

received via the telephone; and 

• Direct deposited more than 

$244.8 billion in refunds. 

The number of individual and business returns 

filed electronically (e-file) continues to grow. 

Quicker refunds and a more efficient way for 

taxpayers to file accurate returns, coupled with 

innovative technology, such as home computer 

filing, contribute to the increase in e-file 

returns. FY 2014 results included: 

Programs Performance Measure

Taxpayer Services Customer Service Representative 

(CSR) Level of Service (%) 70.1 67.6 60.5 64.4 38.0 80.0

Taxpayer Services Percent of Individual Returns 

Processed Electronically (%) 76.9 80.5 82.5 84.1 84.6 85.0

Enforcement Automated Collection System

(ACS) Accuracy (%) 94.9 94.7 94.4 95.2 94.0 94.0

Enforcement Examination Coverage - 

Individual (%) 1.1 1.0 1.0 0.9 0.8 0.8

Enforcement Conviction Rate (%) 92.7 93.0 93.1 93.4 92.0 92.0 

FY 2011

 Actual

FY 2012

 Actual

FY 2013

Actual

FY 2014 

Actual

FY 2015 

Target

FY 2016 

Target

Department of the Treasury - Budget in Brief 76
• Individual returns electronically filed 

increased to 84.1 percent of filings, an 

increase of 1.9 percent;

• Business returns filed electronically 

increased to 43.1 percent of filings, an 

increase of 7.2 percent;

• Home-computer filing increased to 

48.0 million tax returns, an increase of 

6.0 percent; and

• Tax professional use of e-file increased 

by 1.2 percent, to 77.8 million returns. 

The IRS continued to enhance digital 

self-service options by increasing the amount

of tax information and services available to 

taxpayers through IRS.gov and the mobile app, 

IRS2Go. The IRS developed and launched 

new web and mobile tools allowing taxpayers 

and third parties to transact with the IRS 

including: 

• Get Transcript. Provides current 

digital display and print of an 

individual’s tax record across five 

transcript types using enterprise-wide 

authentication. Since the January 2014 

launch, more than 18.6 million 

transcripts have been generated 

through this application, which 

represents more than 79 percent of all 

transcript requests during that time 

period. 

• IRS2Go. Provides a “Where’s my 

Refund” tracker and locator for 

voluntary tax assistance on a 

re-engineered mobile tool. The

IRS2Go mobile application has been 

downloaded 5.4 million times since its 

release. 

• Direct Pay. An individual taxpayer 

can make a payment fully 

electronically without paying a fee. 

Payment scheduling and payment 

lookup features have been added. 

Direct Pay has collected more than 

$2.7 billion since the November 2013 

launch. 

• e-Authentication. Provides secure 

access to IRS online tools and 

applications. Since the January 2014 

launch, more than 5.8 million 

knowledge-based authentications have 

occurred. 

• Payment Mix Comparison Tool. 

This tool will encourage accurate 

reporting by payment recipients 

according to Form 1099-K, Payment 

Card and Third Party Network 

Transactions, and help reduce the tax 

gap. 

• Online Payment Agreement 

improvement. Provides the taxpayer 

the ability to fully submit an 

application for an installment 

agreement online. 

The FY 2014 Service Approach identified in 

the IRS Strategic Plan allowed the IRS to 

reserve person-to-person service for those who 

had issues that only the IRS could resolve (e.g. 

assisting taxpayers who have received a 

notice). Savings from these initiatives were 

reinvested into improving service on the 

phones and at walk-in sites. It allowed the IRS 

to use the right mix of technology, employees, 

and IRS partners to best serve customers in the 

face of changing resources. Comprehensive 

engagement and communication efforts have 

helped both employees and taxpayers migrate 

towards alternative self-service channels. 

The IRS continues to improve and expand its 

outreach and educational services through 

partnerships with state taxing authorities, 

volunteer groups, and other organizations. 

Volunteer Income Tax Assistance (VITA) and 

Tax Counseling for the Elderly (TCE) sites 

provided free tax assistance for the elderly, 

disabled, and limited English proficient 

individuals and families. More than 

3.6 million tax returns were filed at Volunteer 

Department of the Treasury - Budget in Brief 77
Income Tax Assistance/Tax Counseling for the 

Elderly volunteer sites, representing a 

7.4 percent increase over last year while 

maintaining a 92.2 percent accuracy rate.

Enforcement

In FY 2014, the IRS collected more than 

$57.1 billion, a 7 percent increase from 

FY 2013 through the same period. This is the 

fifth consecutive year the IRS exceeded 

$50 billion in enforcement revenue for a total 

IRS-wide ROI of $5.1 to $1. It is important to 

note, however, that a variety of factors beyond 

IRS’s control impact enforcement revenue 

collections, including changes in tax policy 

and the health of the macroeconomy. Thus, 

this trend should not be interpreted to suggest 

that budget cuts have not reduced IRS’s 

enforcement capabilities. In fact, the 

individual examination coverage rate has 

steadily declined from 1.11 percent in 

FY 2010 to 0.86 percent in FY 2014. If IRS 

enforcement funding had remained at FY 2010 

levels, FY 2014 collections would have been 

higher. 

The ROI estimate does not include the revenue 

effect of the indirect deterrence value of these 

investments and other IRS enforcement 

programs, which is conservatively estimated to 

be at least three times the direct revenue 

impact.

The IRS CI program investigates potential 

criminal violations of the Internal Revenue 

Code and related financial crimes such as 

money laundering, currency violations, 

tax-related identity theft fraud, and terrorist

financing that adversely affect tax 

administration. Highlights of IRS CI’s 

Enforcement performance through FY 2014, 

compared to FY 2013, include: 

• Completing 4,606 criminal 

investigations, a decrease of 

17.1 percent;

• Achieving a conviction rate of 

93.4 percent, similar to FY 2013; 

• Maintaining a Department of Justice 

acceptance rate of 93.1 percent with a 

U.S. Attorney acceptance rate of 

90.5 percent; and 

• Obtaining 3,110 convictions, similar to 

FY 2013. 

The IRS made changes to the offshore 

voluntary compliance programs, providing 

new options to help taxpayers residing 

overseas and in the United States. Key 

changes included: 

• Eliminating the required risk 

questionnaire and a requirement that 

the taxpayer have $1,500 or less of 

unpaid tax per year; and 

• Requiring the taxpayer to certify that 

previous failures to comply were due to 

non-willful conduct.

The IRS implemented several improvements 

to the Offshore Voluntary Disclosure Program 

(OVDP) by: 

• Requiring additional information from 

taxpayers applying to the program; 

• Eliminating the existing reduced 

penalty percentage for certain 

non-willful taxpayers; 

• Requiring taxpayers to submit all 

account statements and pay the 

offshore penalty at the time of the 

OVDP application; and 

• Enabling taxpayers to submit 

voluminous records electronically 

rather than on paper. 

The IRS streamlined the determination process 

for tax-exempt status applications. When an 

application cannot be completed on its initial 

merit, the applicant is directed to provide 

additional information and sign attestations 

Department of the Treasury - Budget in Brief 78
guaranteeing truthfulness. The IRS also

piloted a pre-classification process to improve 

the content of information request letters; and

created Form 1023-EZ, a simplified two page 

version of the 26 page Form 1023, Application 

for Recognition of Exemption Under Section 

501(c)(3) of the Internal Revenue Code. 

The IRS made significant process changes to 

address concerns about applications for tax 

exempt status (civic leagues, social welfare 

organizations, or local associations of 

employees) under Section 501(c)(4): 

• Established a process documenting 

reasons why applications are selected 

for further review;

• Developed training and workshops 

identifying issue advocacy versus 

political campaign intervention and 

identifying applications for review of 

political campaign intervention 

activities;

• Established processing guidelines for 

applications involving potentially 

significant campaign intervention; and 

• Created a formal process for 

determinations personnel to request 

assistance from technical experts.

Congress passed FATCA in 2010 to improve 

tax compliance for foreign accounts and 

cross-border transactions. FATCA aims to 

ensure that offshore investment activities are 

properly captured for tax administration 

purposes by instituting reporting requirements 

for foreign financial institutions. In FY 2014, 

the IRS: 

• Deployed the FATCA Foreign 

Financial Institutions Registration 

System; 

• Established the concept of Global 

Intermediary Identification Numbers 

(GIINs) – a new international 

numbering scheme developed by the 

IRS to implement a standardized 

worldwide residence-based information 

reporting and approved and assigned 

GIINs to over 120,000 financial 

institutions to date; and 

• Deployed the IRS Foreign Financial 

Institutions List Search and Download 

Tool. 

During FY 2014, the IRS continued its 

implementation of the ACA and outreach 

activities to ensure that taxpayers were aware 

of the new tax provisions under the ACA. The 

IRS continued its work with the group of 

organizations set up to facilitate the purchase 

of health insurance in each state on the 

requirements and procedures for safeguarding 

federal tax information used in the Exchange 

(IRC 6103 (l)(21)), Disclosure of Return 

Information to Carry Out Eligibility 

Requirements for Health Insurance 

Affordability Programs). Also, IRS 

collaborated with the Department of Health 

and Human Services on outreach and IT 

deployment relating to the insurance market 

reforms and Exchange. In addition, IRS 

issued more than 30 items of published 

guidance on ACA Provisions, including final

regulations on Branded Prescription Drug Fee 

and Premium Tax Credit. 

In FY 2014, the IRS continued to follow its 

comprehensive identity theft strategy focused 

on preventing, detecting, and resolving 

identity theft cases. In an effort to help 

victims, the IRS launched the Identity 

Protection Personal Identification Number (IP 

PIN) application and has issued 

approximately 1.5 million IP PINs The IP PIN 

is a unique, six-digit number that is assigned 

annually to victims of identity theft with 

resolved cases for use when filing their federal 

tax return. The IP PIN allows these individuals 

Department of the Treasury - Budget in Brief 79
to avoid delays in filing returns and receiving 

refunds. 

Taxpayers previously had to call the IRS to 

replace a lost or misplaced IP PIN. The new 

application allows taxpayers to quickly file 

their tax return with manual verification. . 

Additionally, taxpayers from Florida, Georgia 

and the District of Columbia have opted into 

the IP PIN pilot program. Additionally, the 

IRS is offering approximately 1.7 million 

taxpayers the opportunity to opt in to the IP 

PIN program in instances where the IRS has 

identified indications of identity theft on their 

accounts.

Business Systems Modernization

IRS modernization efforts continued in 

FY 2014: 

• CADE 2 had a smooth filing season 

launch in January 2014. The project 

recently met criteria that provide a high 

level of confidence in the readiness and 

accuracy of the system’s performance, 

operational processes, and data quality.

In FY 2014, CADE 2 received more 

than 140.1 million returns and issued 

over 113.2 million refunds. 

• Modernized e-File (MeF) MeF 

receives and processes all tax returns 

submitted electronically. For Filing 

Season 2014, a new MeF release was 

deployed and performed successfully. 

In FY 2014, taxpayers submitted more 

than 231.4 million individual returns 

and more than 19.1 million business 

returns. 

 

Dollars in Thousands

$000 FTE $000 FTE $000 FTE $000 FTE

FY 2015 Enacted

Reinvestment:

Expand Telecom Infrastructure to Handle Increased Demand 16,025 16,025

Subtotal FY 2016 Changes to Base $16,025 $16,025

FY 2016 ACA Program Increases:

Improve Taxpayer Services 78,343 1,231 23,154 7 101,497 1,238

Address Impact of Affordable Care Act (ACA) Statutory Requirements 108 1 44,775 432 22,323 50 67,206 483

Implement Information Technology (IT) Changes to Deliver Tax Credits 

and Other Requirements 305,645 818 305,645 818

Subtotal FY 2016 ACA Program Increases $78,451 1,232 $44,775 432 $351,122 875 $474,348 2,539

Total FY 2016 ACA Budget Request $78,451 1,232 $44,775 432 $367,147 875 $490,373 2,539

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT

TOTAL

FY 2016 Affordable Care Act (ACA)

Department of the Treasury - Budget in Brief 80
Office of Financial Stability

Program Disbursement, Repayments, and Cost/Savings

Dollars in Billions (As of 11/30/14)

 Cumulative 

Obligated

Cumulative 

Disbursed

Cumulative 

Outstanding 

(Includes 

Realized 

Losses)

Total 

Cumulative 

Income

Total 

Cumulative 

Repayments

Total Estimated 

Lifetime Costs 

(as of 9/30/14)

 

Bank Support Programs 250 245 1 36 275 -24

Credit Market Programs 19 19 0 5 24 -3

AIG Investment Program (AIG) 68 68 0 1 55 15 * Automotive Industry 

Financing Program 80 80 1 7 69 12

Treasury Housing Programs

Under TARP 38 15 37

Total** $456 $426 $2 $48 $423 $37 

Additional AIG Common Shares 

Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and

Shares** $456 $426 $2 $66 $440 $20 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of $2.3 billion on those shares.

**Totals may not foot due to rounding.

Summary and Explanation of Programs

The Emergency Economic Stabilization Act 

(ESSA) was enacted in October 2008 in 

response to one of the worst financial crises in 

United States history. To address the crisis, 

EESA established the Office of Financial 

Stability (OFS) within the Treasury 

Department to implement the Troubled Asset 

Relief Program (TARP). EESA vested 

authority in the Secretary of the Treasury to 

“purchase, and to make and fund commitments 

to purchase, troubled assets from any financial 

institution, on such terms and conditions as are 

determined by the Secretary.” 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) 

enacted on July 21, 2010, reduced the TARP 

authority to purchase troubled assets to $475 

billion from an original $700 billion. 

As a result of careful stewardship of the 

program and improved financial conditions 

and, the ultimate cost to the taxpayers of 

TARP investments has dropped from the FY 

2009 estimate of $341.0 billion to $37.5 

billion as of September 30, 2014 ($20.0 billion 

when Treasury’s additional AIG receipts are 

included). 

In FY 2016, OFS plans to obligate $155 

million and use 75 FTEs, a decrease of $15 

million and 12 FTEs from the updated 

FY 2015 estimates, to fund the management of 

the TARP housing programs and the 

continuing disposition of OFS’s remaining 

investments. The decrease in FTEs and 

outside contracts reflects the continued wind 

down of TARP. 

Legislative Proposals

OFS has no legislative proposals for FY 2016. 

Description of Performance

Bank Support Programs 

Capital Purchase Program (CPP) 

The CPP - OFS’s largest program - was 

launched to stabilize and build confidence in 

the financial system by bolstering the capital 

position of viable institutions. OFS ultimately 

provided a total of $204.9 billion in capital to 

Department of the Treasury - Budget in Brief 81
707 institutions in 48 states, including more 

than 450 small and community banks and 22 

Community Development Financial 

Institutions (CDFIs). 

As of November 30, 2014, the CPP has 

generated $226.0 billion, $21.1 billion in 

excess of disbursements, in proceeds for 

taxpayers with 35 institutions remaining in the 

program for a total of $558 million in 

investments outstanding. 

Targeted Investment Program (TIP)

OFS established the TIP in December 2008 to 

prevent a loss of confidence in critical 

financial institutions, which could impair 

broader financial markets, and undermine the 

overall economy. OFS invested $20 billion 

each in Bank of America and Citigroup under 

the TIP. As of December 31, 2009, the TIP 

was closed. Both Citigroup and Bank of 

America fully redeemed the Government's TIP 

investments of $40 billion plus $3.0 billion in 

dividends and $1.4 billion in warrants during 

2010, which generated $4.4 billion in net 

proceeds for taxpayers. 

Asset Guarantee Program (AGP) 

OFS established the AGP which was used in 

conjunction with the TIP to support the value 

of certain assets held by Bank of America and 

Citigroup by agreeing to absorb a portion of 

the losses on those assets. The AGP closed in 

December 2009 without paying any claims and 

has generated $4.1 billion in net proceeds for 

taxpayers. 

Community Development Capital Initiative 

(CDCI)

To help mitigate the adverse impact that the 

financial crisis had on communities 

underserved by traditional banks, OFS

launched CDCI to provide capital to banks, 

thrifts, and credit unions that qualified as 

Community Development Financial 

Institutions (CDFIs) in February 2010. Under 

this program, CDFI banks and thrifts received 

investments of capital with an initial dividend 

or interest rate of two percent, compared to the 

five percent rate offered under the CPP. 

OFS invested a total of $570 million in 84 

CDFIs. As of November 30, 2014, 16 

institutions have fully repaid their investment, 

3 institutions have partially repaid their 

investment, and one has been taken into 

receivership, and the program has 

approximately $462 million in investments

outstanding. 

Credit Market Programs 

Public-Private Investment Program (PPIP)

OFS launched PPIP to support credit market 

functioning and facilitate price discovery in 

the markets for commercial and residential 

mortgage financing. Using TARP funds 

alongside equity capital raised from private 

investors, PPIP was designed to generate a 

significant purchasing power and demand for 

RMBS and CMBS. OFS originally committed 

approximately $22.1 billion of equity and 

loans to the nine Public-Private Investment 

Funds (PPIFs). As of November 30, 2014, all 

of the PPIFs have been effectively wound 

down and OFS has recovered all of its debt 

and equity investments plus an additional $3.9 

billion. 

Term Asset-Backed Securities Loan Facility 

(TALF)

The TALF was a joint Federal ReserveTreasury program that was designed to restart 

the asset-backed securities (ABS) markets that 

provide credit to consumers and small 

businesses, which had ground to a virtual 

standstill during the early months of the 

financial crisis. 

OFS originally committed to provide $20.0 

billion in the form of subordinated debt to 

TALF, LLC to support a $200.0 billion loan 

portfolio. On January 15, 2013, the 

Department of the Treasury - Budget in Brief 82
commitment was eliminated. As of November 

30, 2014, accumulated income earned from 

investments in the TALF, LLC totaled $685 

million.

Small Business Administration (SBA) 7(a) 

Securities Purchase Program 

In March 2010, OFS announced the SBA 7(a) 

Securities Purchase Program to encourage 

financial institutions to increase small business 

lending and to ensure that credit flows to 

entrepreneurs and small business owners. 

OFS invested in a total of 31 SBA 7(a) 

securities with a value of approximately $367 

million (excluding purchased accrued interest) 

between March and September 2010. In 

January 2012, OFS concluded winding down 

the program in total, collecting $376 million 

through sales, principal payments, interest 

payments over the life of the program, 

representing cash collections of approximately 

$9 million more than its original investment of 

$367 million. 

American International Group, Inc. (AIG) 

Investment Program

During the financial crisis, the federal 

government provided assistance to prevent the 

collapse of AIG. This assistance came from 

the Federal Reserve Bank of New York 

(FRBNY) and Treasury. The consequences of 

AIG failing at that time and in those 

circumstances would have been catastrophic to 

American families, businesses, and the larger 

economy. Therefore, the government took 

action to protect the U.S. financial system. 

The government's overall support for AIG 

peaked at approximately $182 billion. That 

amount included $70 billion that Treasury 

committed through TARP, and $112 billion 

committed by the FRBNY. As of December 

31, 2012, the $182 billion committed to 

stabilize the company had been fully recovered 

plus an additional positive return of $22.7 

billion. 

Automotive Industry Financing Program 

(AIFP)

OFS established the AIFP on December 19, 

2008, to help prevent a significant disruption 

to the American automotive industry, which 

would have caused a substantial disruption to 

financial markets and had a negative effect on 

the economy. Under the AIFP, OFS invested a 

total of $79.8 billion in General Motors (GM), 

Chrysler, and their financing affiliates.

OFS provided GM and related suppliers $50.2 

billion in loans which were repaid or 

converted to common stock. OFS has 

recovered a total of $39.7 billion through 

repayments, dividends, interest, and asset sales 

related to its investment in GM. OFS fully

exited its GM investment in December 2013. 

OFS committed a total of $12.4 billion to 

Chrysler and Chrysler Financial under TARP. 

In July 2011, OFS fully exited its investment 

in Chrysler, six years ahead of schedule. Of 

the $12.4 billion disbursed to Chrysler under 

TARP, OFS recovered more than $11.1 billion 

for taxpayers through principal repayments, 

interest, and cancelled commitments. 

OFS invested $17.2 billion in Ally under 

TARP (including $884 million invested 

through GM). Between November 2013 and 

December 2014, OFS collected approximately 

$12.8 billion on its investment in Ally through 

repurchases, private placements, an initial 

public offering, and underwritten common 

stock sales. OFS has fully liquidated its 

investment in Ally Financial as of December 

24, 2014 and has realized cumulative receipts 

of $19.6 billion, $2.4 billion more than 

invested. 

Treasury Housing Programs Under TARP

OFS established two central programs under 

TARP – the Making Home Affordable (MHA) 

program and the Housing Finance Agency 

Innovation Fund for the Hardest Hit Housing 

Department of the Treasury - Budget in Brief 83
Markets (HHF) – to help prevent avoidable 

foreclosures and preserve homeownership. 

OFS has also provided support for the Federal 

Housing Administration’s Short Refinance 

Program to assist borrowers who are current 

on their mortgage but owe more than their 

home is worth, in refinancing into an FHAinsured loan. 

Making Home Affordable Program (MHA) 

MHA includes sub programs that assist 

borrowers in modifying first and second 

mortgages, including benefits for unemployed 

homeowners, as well as modification 

alternatives. Through November 30, 2014, 

there were nearly 2.2 million homeowner 

assistance actions granted through MHA. 

Funds are paid out over the length of the 

modifications, and as of November 30, 2014, 

OFS disbursed $9.7 billion out of a possible 

$29.8 billion of incentive fees under MHA. 

Housing Finance Agency (HFA) Hardest-Hit 

Fund

The HFA Hardest-Hit Fund was implemented 

in FY 2010 and provides targeted aid to 

homeowners in the states hit hardest by the 

housing market downturn and unemployment. 

Eighteen states and the District of Columbia 

have developed custom programs targeted to 

address the specific needs and economic 

conditions of their area. As of November 30, 

2014, OFS disbursed $4.8 billion out of a 

possible $7.6 billion under the HFA HardestHit Fund. 

Department of the Treasury - Budget in Brief 84
State Small Business Credit Initiative

Program Summary

Dollars in Thousands

 

 FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

 Actual Estimated Estimated $ Change % Change

Budgetary Resources:

Recovery from Prior Years 1,718 2,020 1,000 (1,020) -50.50%

Unobligated Balances from Prior Years 25,376 19,323 14,118 (5,205) -26.94%

Subtotal Budgetary Resources $27,157 $21,343 $15,118 (6,225) -29.17%

Other Resources:

SSBCI Program 103 0 0 0 0.00%

SSBCI Administration 7,731 7,225 6,086 (1,139) -15.76%

Subtotal Other Resources $7,834 $7,225 $6,086 (1,139) -15.76%

Total FTE 10 11 9 (2) -18.18%

Summary 

The State Small Business Credit Initiative 

(SSBCI) funds new and existing state 

programs that support lending to and 

investment in small businesses in order to 

stimulate economic growth and new 

jobs. Under the SSBCI, participating states 

use the federal funds for programs that 

leverage private lending to help finance small 

businesses and manufacturers that are 

creditworthy but are not getting the loans they 

need to expand and create jobs. The Small 

Business Jobs Act of 2010 (the Act) 

authorized and appropriated $1.5 billion for 

SSBCI through FY 2017. Due to the success 

of SSBCI, the FY 2016 President’s Budget 

proposes a new authorization of $1.5 billion to 

build on the momentum of the program’s first 

round, strengthen the Federal government’s 

relationships with state economic development 

agencies, and to provide capital to America’s 

diverse community of entrepreneurs. 

Priorities 

• To provide direct funding support to states 

for use in programs designed to increase 

access to credit for small businesses.

• To support state capital access programs

and other credit support programs that 

support lending to and investment in small 

businesses and small manufacturers.

• To monitor the deployment of SSBCI 

funds among approved state programs and 

to ensure adherence to all Treasury 

compliance standards. 

• To promote best practices in program 

design, operations, and marketing among 

state-run programs. 

• To provide technical assistance to states as 

they implement these programs and deploy 

funds to eligible small businesses.

SSBCI FY 2016 Budget Highlights

Dollars in Thousands

State Small Business Credit Initiative FTE Amount

FY 2015 Estimated 11 $7,225

Changes to Base:

Maintaining Current Levels (MCLs): - $118

Pay-Raise - $14

Pay Annualization - $5

FERS Contribution Increase - $7

Non-Pay - $92

Subtotal Changes to Base - $118

Total FY 2016 Base 11 $7,343

Program Changes:

Program Decreases: (2) ($1,257)

Program Decreases (2) ($1,257)

Total FY 2016 Estimated 9 $6,086

Department of the Treasury - Budget in Brief 85
FY 2016 Budget Adjustments

Maintaining Current Levels (MCLs)

Pay-Raise +$14,000 / +0 FTE 

Funds are required for the proposed January 

2016 pay-raise.

Pay Annualization +$5,000 / +0 FTE 

Funds are required for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$7,000 / 

+0 FTE 

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates. 

Non-Pay +$92,000 / +0 FTE 

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment. 

Program Decreases

Program Decreases -$1,257,000 / -2 FTE

Contract and personnel support related to state 

technical assistance will decrease as the 

funding allocated to the states and 

municipalities becomes fully expended. 

Legislative Proposals

Treasury recommends new legislation 

authorizing a $1.5 billion extension of the 

SSBCI. $1 billion will be competitively 

awarded to states best able to target local 

market needs, promote inclusion, attract 

private capital for start-up and scale-up 

businesses, strengthen regional entrepreneurial 

ecosystems, and evaluate results among other 

factors. An additional $500 million will be 

allocated to states according to a need-based 

formula.

Description of Performance

By the end of FY 2014, 56 of the 57 program

participants reported using SSBCI funds to 

support loans or investments in businesses 

using disbursed funds. As of September 30, 

2014, Treasury had outlayed to states 

approximately $1.14 billion or 79 percent of 

the total funds available for disbursement. 

Treasury expects states to qualify to receive 

most of the remaining funds in FY 2015 and 

FY 2016. 

In FY 2016, Treasury will continue to monitor 

the performance of state programs, tracking 

loans and investments made with SSBCI funds 

and disbursing obligated funds to states. In 

addition, Treasury will process requests from 

states to modify their allocation agreements to 

reapportion funds from lower to higher 

performing programs and to optimize program 

design in order to improve performance. 

Treasury plans to approve or deny 90 percent 

of all state requests for modifications and 

subsequent disbursements within 90 calendar 

days of final receipt. Additionally, Treasury 

plans to collect 90 percent of all quarterly 

reports within five days of the deadline to 

report. Treasury will also provide on-going 

technical support to recipients, including the 

dissemination of practices among recipients on 

such elements as program design, operations, 

and marketing. Treasury proposes a new 

SSBCI authorization of $1.5 billion. In 

FY 2016, Treasury will process applications 

for need-based awards and will prepare and 

release the application for competitive awards.

SSBCI Performance

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

Actual Actual Actual Target Target

Cumulative Value of SSBCI Funds Transferred to States (thousands) $553,000 $917,000 $1,146,000 $1,367,000 $1,441,000 

State Subsequent Disbursement Requests Approved or Denied 

within 90 days (%) 100 100 96 90 90

State Requests to Modify Allocation Agreements Approved or Denied 

within 90 days (%) 100 90 95 90 90

Receive State Quarterly Reports within five business days of 

reporting deadline (%) 100 93 95 90 90

Department of the Treasury - Budget in Brief 86
Office of Financial Research

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Actual Estimated Estimated $ Change % Change

Data Center $46,940 $57,991 $63,157 $5,166 8.91%

Research and Analysis $7,700 $14,578 $11,478 ($3,100) -21.26%

Operations and Support Services $28,626 $26,979 $33,470 $6,491 24.06%

Total Cost of Operations $83,266 $99,548 $108,105 $8,557 8.60%

FTE 166 230 270 40 17.39%

Summary

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 (the DoddFrank Act) established the Office of Financial 

Research (OFR or Office) within the 

Department of the Treasury (Treasury) to 

serve the Financial Stability Oversight Council

(Council), its member agencies, and the public

by improving the quality, transparency, and 

accessibility of financial data and information; 

conducting and sponsoring research related to 

financial stability; and promoting best 

practices in risk management. 

The OFR, as an office within the Treasury 

Department, is aligned with the Treasury 

strategic goal of “Promoting domestic 

economic growth and stability while 

continuing reforms of the financial system,” 

and the associated objective of “Complete 

implementation of financial regulatory reform 

initiatives and continue monitoring the 

markets for threats to stability.” The OFR also 

is aligned with the Treasury objective of 

“Support effective, data-driven decision 

making and encourage transparency through 

intelligent gathering, analysis, sharing, use and 

dissemination of information” to help create a 

21st century approach to government. Aligning 

to these Treasury goals and objectives, and 

consistent with the Dodd-Frank Act, the OFR 

has established five strategic goals to help 

achieve its mission, as described below.1 

The OFR is an essential source of data and 

analysis for monitoring threats to financial 

stability.

Key objectives of this goal include: 

• OFR’s monitoring tools and analysis 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; and 

• Data providers and the public trust that 

OFR data are protected and secure.

Standards that improve the quality and 

usefulness of financial data are identified 

and adopted.

Key objectives underlying 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; and

1 See the OFR’s strategic plan for FY 2012-2014 at 

http://www.treasury.gov/initiatives/wsr/ofr/Documents/OFRStrategicF

ramework.pdf and Treasury’s strategic plan at 

http://www.treasury.gov/about/budget-performance/strategicplan/Pages/index.aspx 

Department of the Treasury - Budget in Brief 87
• Financial data standards that create 

efficiencies and facilitate analysis are 

widely used. 

Leading edge research improves financial 

stability monitoring and the scope and quality 

of financial data, and informs policy and risk 

management.

Key objectives underlying this goal include: 

• The OFR is the recognized center for 

objective, innovative research on financial 

stability and

• OFR research is widely cited and used in 

policymaking, risk management, and data 

management.

OFR FY 2016 Budget Highlights

Dollars in Thousands

Office of Financial Research FTE Amount

FY 2015 Estimated Budget 230 $99,548 

Changes to Base:

Program Changes 

Program Increases 40 $8,557 

Personnel Steady State 40 $4,223 

Non-Personnel Steady State $4,334 

FY 2016 Base 270 $108,105 

FY 2016 Estimated 270 $108,105 

Explanation of Budget Activities

Data Center ($63,157,000 from 

revenue/offsetting collections) 

The Dodd-Frank Act provided that the Data 

Center, on behalf of the Council, collect, 

validate, and maintain all data necessary to 

carry out the duties of the Office. As part of 

this mandate, the Data Center provides data 

services to federal financial regulators to 

increase efficiency in data acquisition and 

management, to promote the reduction of 

redundant reporting requirements across the 

regulatory system (including through more 

effective data sharing arrangements), and to 

ensure the security of sensitive data. The 

promotion of standards for financial data is 

expected to provide benefits to regulators and 

financial market participants by making data 

aggregation easier, improving analysis, and 

reducing costs associated with data collection. 

To support transparency in its operations and 

better public understanding of risks to financial 

stability, the Data Center also publishes data 

and data-related information, as well as 

information on its activities.

Research and Analysis ($11,478,000 from 

revenue/offsetting collections) 

The Dodd-Frank Act provided that the 

Research and Analysis Center, on behalf of the 

Council, develop and maintain independent 

analytical capabilities and computing 

resources: 

• To develop and maintain metrics and 

reporting systems for risks to the financial 

stability of the United States;

• To monitor, investigate, and report on 

changes in system-wide risk levels and 

patterns to the Council and to Congress; 

• To conduct, coordinate, and sponsor 

research to support and improve regulation 

of financial entities and markets;

• To evaluate and report on stress tests or 

other stability-related evaluations of 

financial entities overseen by Council 

member agencies;

• To maintain the expertise necessary to 

support specific requests for advice and 

assistance from financial regulators;

• To investigate disruptions and failures in 

the financial markets, report findings, and 

make recommendations to the Council 

based on those findings; 

• To conduct studies and provide advice on 

the impact of policies related to systemic 

risk; and, 

• To promote best practices for financial risk 

management.

To support effective achievement of these 

objectives, the OFR is also establishing forums 

and networks to bring together experts from 

Department of the Treasury - Budget in Brief 88
within and outside the regulatory system. In 

addition, the OFR is publishing key results of 

its analyses to support transparency in its 

operations and promote public understanding 

of threats to financial stability.

Operations and Support Services

($33,470,000 from revenue/offsetting 

collections) 

These activities cover all operational, legal, 

and administrative functions that support the 

effective, transparent, and well-monitored 

delivery of the OFR’s core outputs related to 

data, research, and analysis. This includes 

support provided through reimbursable 

arrangements with other activities in Treasury 

Departmental Offices, as well as outside 

service providers.

OFR Performance by Budget Activity

Description of Performance

In early FY 2013, the OFR established 

performance measures tied to its strategic 

goals and collected data on those measures 

through the fourth quarter. In 2014, the OFR 

revised some its measures to more accurately 

measure the performance of the organization, 

and aligned them to our new strategic goals. 

The OFR is continuing to review its 

performance measures in FY 2015 and may 

revise them based the ability to obtain 

additional data. The OFR now measures its 

progress by quarter. The OFR will continue to 

review all measures as the organization 

matures, and revise them as necessary.

Department of the Treasury - Budget in Brief 89
OFR Performance by Budget Activity

Budget Activity Performance Measure 

FY 2012 

Actual

FY 2013 

Actual

FY 2014 

Actual

FY 2014

Actual

FY 2015 

Target

FY 2016 

Target

Data Center Percent of responses to Council data and 

research requests that meet delivery targets

N/A 94 Disc DISC DISC DISC 

Data Center Percent of Council work requests completed 

by the OFR 

N/A N/A 85% 89% 85% 85%

Data Center 

Percent of project milestones met for 

establishment of an interagency data 

inventory program

 N/A 88 DISC DISC DISC DISC 

Data Center 

Percent of interagency data inventory 

records validated

N/A N/A B 60% DISC DISC 

Data Center 

Percent of milestones met in information 

standards strategy 

N/A 100 100 DISC DISC DISC 

Data Center Percent pf data standards strategy 

milestones completed 

N/A N/A 100% 93% DISC DISC 

Research and Analysis Number of R&A products made public yearto-dateN/A 10 15 11 15 15

Research and Analysis

Number of collaborative research and 

analysis products made public year-to-date 

(subset of above)

 N/A 8 10 10 DISC DISC 

External Affairs 

Percent increase in the number of OFR web 

page visits

 N/A 1 15 DISC DISC DISC 

External Affairs 

Percent increase in the substantive content 

made public on the OFR web site 

N/A N/A 20 13 DISC. DISC 

Operations and Support 

Services 

Percent of OFR implementation priorities 

completed

 N/A DISC DISC DISC DISC DISC 

Operations and Support 

Services 

Cost of the OFR relative to total assessed 

assets, per $billion assessed 

 N/A $3,230

$7,700 (to 

be based 

on a 4-

year 

rolling 

average)

DISC DISC DISC 

Operations and Support 

Services 

OFR fiscal year expenditures as a 

percentage of total assessed assets, per 

$billion assessed

N/A N/A $4,000 $4,002 DISC. DISC 

Operations and Support 

Services Total staff hired compared to targets N/A 85% 100% 90% 100% 100%

Several measures have been discontinued and will be replaced or revised in FY 2015 based on 

the OFR’s efforts to examine its measures for effectively assessing the performance of the 

organization. 

Department of the Treasury - Budget in Brief 90
Financial Stability Oversight Council

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Actual Estimated Estimated $ Change % Change

Financial Stability Oversight Council $7,660 $8,690 $9,816 $1,126 12.96%

Federal Deposit Insurance Corporation 

Payments $11,592 $7,628 $9,500 $1,872 24.54%

Total Cost of Operations $19,252 $16,318 $19,316 $2,998 18.37%

FTE 23 27 31 4 14.81%

1 FY 2014 Actual includes $1.5M returned to the Board of Governors of the Federal Reserve System for reimbursement of 

unobligated interim funding transfers made prior to July 20, 2012, pursuant to Section 155(c) of the Dodd-Frank Act. Expenses 

recorded in Object Class 25 - Contractual Services.

Summary

Prior to the 2008 financial crisis, the existing 

financial regulatory framework focused 

narrowly on individual institutions and 

markets, which allowed supervisory gaps to 

grow and regulatory inconsistencies to emerge 

– in turn, allowing arbitrage and weakened 

standards. The Dodd-Frank Wall Street 

Reform and Consumer Protection Act (the 

Dodd-Frank Act) established the Financial 

Stability Oversight Council (Council) with a 

clear statutory mandate that created for the 

first time collective accountability for 

identifying and responding to emerging threats 

to financial stability. The Council is chaired 

by the Secretary of the Treasury and consists 

of ten voting members and five nonvoting 

members. The Council brings together the 

expertise of the federal financial regulators, an 

insurance expert appointed by the President, 

and state regulators.

The Council’s three primary purposes under 

the Act are:

1. To identify risks to the financial stability 

of the United States that could arise from 

the material financial distress or failure, or 

ongoing activities, of large, interconnected 

bank holding companies or nonbank 

financial companies, or that could arise 

outside the financial services marketplace.

2. To promote market discipline, by 

eliminating expectations on the part of 

shareholders, creditors, and 

counterparties of such companies that 

the U.S. government will shield them from 

losses in the event of failure.

3. To respond to emerging threats to the 

stability of the U.S. financial system.

Over the last year, the Council has continued 

to evaluate whether to designate certain 

nonbank financial companies for Federal 

Reserve supervision and enhanced prudential 

standards, and conducted annual reviews for 

each of the three companies designated in 

2013. The Council continued to monitor the 

eight financial market utilities (FMUs) that 

were designated as systemically important by 

the Council in 2012. The Council also 

continued to identify and monitor potential 

risks to U.S. financial stability; fulfilled 

explicit statutory requirements, including the 

completion of its fourth annual report to 

Congress; and served as a forum for discussion 

and coordination among the member agencies 

implementing the Dodd-Frank Act.

Over the next year, the Council will continue 

to evaluate nonbank financial companies for 

potential designation for Federal Reserve 

supervision and enhanced prudential 

standards; consider whether to designate 

additional FMUs as systemically important; 

monitor the financial system for risks to U.S. 

Department of the Treasury - Budget in Brief 91
financial stability; and facilitate interagency 

cooperation to identify and analyze potential 

emerging threats. The Council will also 

continue to facilitate interagency coordination 

and information sharing with respect to 

various regulatory initiatives.

The Council is required by the Dodd-Frank 

Act to convene no less than quarterly, but the 

Council has convened on a more frequent 

basis to share information on key financial 

developments, coordinate on regulatory 

implementation, and monitor progress on 

recommendations from the Council’s annual 

reports. In 2014, the Council convened 10 

times. The Council will continue to remain 

focused on both identifying near-term threats 

and addressing structural vulnerabilities in the 

financial system. Transparency on Council 

work has routinely been provided through an 

annual report to Congress, periodic 

Congressional testimony on Council activities 

and emerging threats to financial stability, and 

regular communications to the public about 

Council activities and decisions. 

FSOC FY 2016 Budget Highlights

Dollars in Thousands

Financial Stability Oversight Council FTE Amount

FY 2015 Estimated 27 $16,318 

Changes to Base:

Program Changes 

Program Increases 4 $2,998 

Personnel Steady State 4 $618 

Non-Personnel Steady State $508 

FDIC Payment Adjustment $1,872 

FY 2016 Base 31 $19,316 

FY 2016 Estimated 31 $19,316 

*Includes FDIC reimbursement

*The increase includes the impacts of inflation and the 

proposed one percent pay increase

Explanation of Budget Activities

Financial Stability Oversight Council

($9,816,000 from revenue/ offsetting 

collections) 

The Council has a clear statutory mandate to 

facilitate coordination among financial 

regulators and identify risks and respond to 

emerging threats to U.S. financial stability. 

The Council is not a bureau or office of the 

Department of the Treasury. However, under 

the Dodd-Frank Act, the Council’s expenses 

are considered expenses of the Office of 

Financial Research, an office within the 

Department of the Treasury.

FDIC Payments ($9,500,000 from revenue/

offsetting collections) 

Section 210(n)(10) of the Dodd-Frank Act 

provides that certain reasonable 

implementation expenses of the FDIC incurred 

after the enactment of the Dodd-Frank Act 

shall be treated as expenses of the Council. 

The FDIC must periodically submit 

requests for reimbursement for implementation 

expenses to the Chairperson of the Council, 

who shall arrange for prompt reimbursement 

to the FDIC of reasonable implementation 

expenses. The expenses estimated are for rule 

writing and resolution planning consistent with 

the FDIC's implementation of its 

responsibilities under Title II of the DoddFrank Act.

Description of Performance

There are no measures specified for managing 

Council performance at this time. Information 

on the Council is provided on 

www.treasury.gov, www.fsoc.gov, and 

member agency websites to provide 

transparency and accountability. 

Department of the Treasury - Budget in Brief 92
Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $733,208 $778,592 $863,940 $85,348 10.96%

Total Cost of Operations $733,208 $778,592 $863,940 $85,348 10.96%

FTE 1,925 1,944 1,924 (20) -1.03%

 

Summary

In support of Treasury’s strategic goal of 

“Enhance U.S. Competitiveness and Promote 

International Financial Stability and Balanced 

Global Growth”, the mission of the Bureau of 

Engraving and Printing (BEP) is to develop 

and produce United States currency notes 

trusted worldwide. 

FY 2016 Priorities

Produce U.S. currency that functions 

flawlessly in commerce and create innovative 

currency designs that provide effective 

counterfeit deterrence, and meaningful access. 

Achieve organizational excellence and 

customer satisfaction through balanced 

investment in people, processes, facilities, and 

technology. 

Product quality – Produce and deliver currency 

notes ordered by the Federal Reserve Board

(FRB) that consistently meet the customer’s 

high quality standards. 

Counterfeit Deterrence – Conduct research and 

development, and collaborate with key 

stakeholders in order to deter counterfeiting 

and maintain the public’s trust in the security 

and reliability of U.S. currency notes. 

Meaningful Access – Assist users of U.S. 

currency, including the blind and visually 

impaired, with the use and denomination of 

currency. 

The Bureau of Engraving and Printing 

operates on the basis of authority conferred 

upon the Secretary of the Treasury by 31 

U.S.C. 321(a) (4) to engrave and print 

currency and other security documents. 

Operations are financed through a revolving 

fund established in 1950 in accordance with 

Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, 

including administrative expenses, through 

product sales. In 1977, Public Law 95-81 

authorized the Bureau to include an amount 

sufficient to fund capital investment and to 

meet working capital requirements in the 

prices charged for products, eliminating the 

need for appropriations from Congress. 

The Bureau produces the paper currency notes 

ordered by the FRB. During FY 2016, BEP 

expects to produce and deliver 8.3 billion 

notes to the FRB to meet currency demand. 

The FY 2016 order represents a 13 percent 

increase in the number of notes delivered from 

the FY 2015 program. In order to meet 

continued international demand, the FY 2016 

order includes a large proportion of higher 

denomination notes. 

Research and development of new 

technologies for use in currency note 

production is a priority at the Bureau as more 

sophisticated counterfeit deterrent features are 

needed to protect future generations of 

currency notes. Via its website www.bep.gov, 

BEP seeks information about technologies or 

materials that may have potential application 

Department of the Treasury - Budget in Brief 93
in the development of new counterfeit 

deterrent features in currency notes. 

BEP supports a comprehensive anticounterfeiting program built around effective 

note design, public education, and aggressive 

law enforcement. The Bureau will continue 

working with the Advanced Counterfeit 

Deterrent (ACD) Steering Committee to 

develop future designs that will enhance and 

protect U.S. currency notes. The ACD 

Committee includes representatives from BEP, 

the Department of the Treasury, the U.S. 

Secret Service, and the FRB.

Work will continue in FY 2016 on enabling 

the Nation’s currency to better serve users, 

including the blind and visually impaired. The 

Bureau will be incorporating features into the 

next redesign of currency that will assist every 

American to better use and denominate 

currency. BEP will continue to research and 

develop tactile features that will enhance 

future note designs. Testing and refinement of 

features will continue to determine which 

processes and features work best at the 

volumes needed for U.S. currency. While no 

timetable has been set for the introduction of 

this currency, the next redesign will 

incorporate changes to make U.S. currency 

more accessible to those who are blind and 

visually impaired. 

The FY 2016 Budget requests funding to 

continue the BEP Currency reader distribution 

program in coordination with the Library of 

Congress’ National Library Service. Under 

this program, United States citizens and legal 

residents who are blind or visually impaired 

are provided a currency reader to aid in the 

denomination of US currency.the majority of 

Currency Readers will be distributed in 2015, 

however readers will continue to be distributed 

in 2016 and beyond in numbers necessary to 

meet public demand. 

In addition, funding is requested to continue 

the Currency Quality Assurance (CQA) 

Program. The Bureau, in collaboration with 

the FRB and other stakeholders, developed a 

robust CQA Program in 2014. This reinvention is moving BEP from inspecting to 

remove poor quality notes to building quality 

in at the onset of all production processes.

Throughout FY 2015 and FY 2016, the Bureau 

will fill skill gaps with respect to production 

engineers, quality assurance specialists and 

specialists in related science and engineering 

disciplines, while reorganizing to become 

quality focused and customer driven, leaner, 

flexible and and accountable for results. 

Completion of this change management 

process will improve the work place and drive 

continuous improvement throughout the 

organization. 

Funds are requested to support BEP’s Phase II 

of a retooling equipment project which 

includes an equipment replacement plan, 

tactile feature testing equipment, labor 

relations/staffing strategy and alternatives for

material handling.

Treasury is continuing its comprehensive 

review of U.S. currency including a review of 

both the production and use of coins, in order 

to efficiently promote commerce in the 21st 

Century. Treasury expects to announce the 

results of its review this fiscal year.

BEP requests FY 2016 funds for the 

acquisition of advisory and technical support 

to assist with planning and implementation of 

a new facility project. The Federal Reserve 

Board, which would pay for a replacement of 

the Washington, DC facility, has expressed 

support for this project. Future production 

equipment upgrades and production processes 

will soon exceed the support capacity of the 

current Washington, DC facility. It is 

estimated that the process of putting a new 

facility into production will take 10 years. 

Department of the Treasury - Budget in Brief 94
BEP FY 2016 Budget Highlights

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2015 Estimated 1,944 $292,250 $486,342 $778,592

Changes to Base:

Maintaining Current Levels (MCLs): - - $7,848 $7,848

Pay-Raise - - $2,418 $2,418

Pay Annualization - - $618 $618

FERS Contribution Increase - - $842 $842

Non-Pay - - $3,970 $3,970

Efficiency Savings: - - ($1,500) ($1,500)

Reduced Labor Costs Due to Spoilage Reductions - - ($1,500) ($1,500)

Subtotal Changes to Base - - $6,348 $6,348

Total FY 2016 Base 1,944 $292,250 $492,690 $784,940

Program Changes:

Program Decreases: (20) - ($11,000) ($11,000)

Attrition Without Backfill (Goal 20 FTE) (20) - ($2,500) ($2,500)

Reduced Lease Parking Spaces - - ($250) ($250)

Water Usage Reduction/Recycling - - ($750) ($750)

Defer Targeted Facilities Investments - - ($7,500) ($7,500)

Program Increases: - - $90,000 $90,000

New Facility - - $40,000 $40,000

Phase II - Retooling (Scheduled Replacement of 

Obsolete Production Equipment) - - $50,000 $50,000

Total FY 2016 Estimated 1,924 $292,250 $571,690 $863,940

FY 2014 Budget Adjustments

Adjustment to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$2,418,000 / +0 FTE 

Funds are required for the proposed January 

2016 pay-raise.

Pay Annualization +$618,000 / +0 FTE 

Funds are required for the Annualization of the 

proposed January 2015 pay-raise.

FERS Contribution Increase +$842,000 / 

+0 FTE 

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System.

Non-Pay +$3,970,000 / +0 FTE 

Funds are required for inflation adjustments in 

non-labor costs such as travel, contracts, rent,

supplies, and equipment. 

Efficiency Savings 

Reduced Labor Costs Due to Spoilage 

Reductions -$1,500,000 / +0 FTE 

Due to CQA driven improvements, better 

production yields are anticipated reducing 

overtime costs.

Program Decreases

Defer Targeted Facilities Investments 

-$7,500,000 / +0 FTE 

Defer facility improvements to the DC facility 

pending the building replacement proposal. 

Attrition Without Backfill (Goal 20 FTE) 

-$2,500,000 / -20 FTE 

BEP plans for savings in Labor and Benefits 

by not backfilling targeted vacancies,. 

Reduced Lease Parking Spaces -$250,000 / 

+0 FTE 

BEP will reduce leased parking space costs.

Department of the Treasury - Budget in Brief 95
Water Usage Reduction/Recycling -$750,000 

/ +0 FTE 

A new waste water recycling plant will reduce 

water and chemical usage in processing waste 

water/wiping solutions 

Program Increases

Phase II - Retooling (Scheduled Replacement 

of Obsolete Production Equipment) 

+$50,000,000 / +0 FTE 

Replacement of fully depreciated production 

equipment at BEP facilities is scheduled. 

New Facility +$40,000,000 / +0 FTE 

Architecture & engineering services and a 

construction management contactor to perform 

architectural, environmental, and related 

services are required. 

Explanation of Budget Activities

Manufacturing ($863,940,000 from revenue/

offsetting collections) 

The BEP has one budget activity: 

Manufacturing. This budget activity supports

all of BEP’s strategic goals.

Legislative Proposals

BEP has no legislative proposals.

BEP Performance by Budget Activity

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

Actual Actual Actual Target Target

Manufacturing Best Places to Work in Federal 

Government Ranking

178 47 N/A 99 99

Manufacturing Lost Time Accident Rate per 100 

Employees

1.9 1.63 N/A 1.6 1.6

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

43.34 50.45 44.22 55.0 55.0

Manufacturing Percent of Currency Notes 

Delivered Returned Due to 

Defects

.0 .466 .0 .0 .0

Manufacturing Reduction to BEP's Three Major 

Regulated Waste Streams (Air 

Emissions, Waste water, and Solid 

Waste)

31.2 31.2 29.1 N/A N/A

Key: DISC - Discontinued and B - Baseline

Description of Performance

BEP’s Best Places to Work in Federal 

Government Ranking is a based on the 

results of the Partnership for Public Service 

data on three questions in the Federal 

Employee Viewpoint Survey. BEP’s 2014 

ranking improved to 47 out of 300. BEP 

will continue to target achievement of an 

improvement in rank. 

Lost Time Accident Rate per 100 Employees

measures the Bureau’s ability to reduce 

injuries and illnesses in the workplace. 

During FY 2014 BEP’s lost time case rate 

increased unfavorably during the fiscal year 

to 2.08 against a target of 1.7 cases per 100 

employees The Bureau remains committed 

to improving the safety of its employees and 

has undertaken analysis to determine the 

root causes of injury and to identify best 

Department of the Treasury - Budget in Brief 96
practices in safety. BEP’s target for this 

performance metric will be held constant at 

1.7 per 100 employees for FY 2015 and 

FY 2016 

Manufacturing Costs for Currency (dollar 

cost per 1,000 notes produced) is an 

indicator of manufacturing efficiency and 

effectiveness of program management. The 

measure is based on contracted price factors, 

productivity improvements, as well as the 

mix of denominations ordered. Actual 

performance against standard cost depends 

on BEP’s ability to meet spoilage, 

efficiency, and capacity utilization goals. In 

2014 the cost of manufacturing was lower 

than anticipated; the actual result realized 

was $44.22 per 1,000 notes produced against 

a target of $55.00. The performance goal is 

set at $55.00 per 1,000 notes produced in 

FY 2015 and FY 2016. 

Percent of currency notes returned due to 

defects is an indicator of the Bureau’s ability 

to provide a quality product. BEP’s 

FY 2014 target for this performance metric 

was 0.0001 percent, and the actual result 

realized for this measure was 0.00001 

percent. BEP’s target for this performance 

metric will be held constant at 0.0001 

percent for both FY 2015 and FY 2016. 

Reduction in Regulated Waste (Pounds of 

waste per 1000 notes delivered of regulated 

air emissions, wastewater, and solid waste 

combined) is a quantitative indicator of the 

effectiveness of BEP environmental 

programs, which are assessed through the 

BEP ISO 14001 certified Environmental 

Management System (EMS). BEP’s 

FY 2014 performance of 29.4 pounds of 

regulated waste for this metric was against a 

target of 31 pounds per 1000 notes 

delivered. 

Department of the Treasury - Budget in Brief 97
Department of the Treasury - Budget in Brief 98
United States Mint

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $2,861,632 $3,591,431 $3,595,307 $3,876 0.11%

Total Cost of Operations $2,861,632 $3,591,431 $3,595,307 $3,876 0.11%

FTE1 1,661 1,874 1,774 (100) -5.34%

1

Aligns FTE with historical usage levels and production requirements

Summary

The Mint supports the Department of the 

Treasury’s strategic objectives to: facilitate 

commerce by providing trusted and secure 

U.S. currency, products, and services for use 

by the public (1.4); and, create a culture of 

service through relentless pursuit of customer 

value (5.4). 

Since FY 1996, the United States Mint has 

been operating under the United States Mint’s 

Public Enterprise Fund (PEF). As authorized 

by Public Law 104-52 (31 U.S.C. § 5136), the 

PEF makes amounts available without further 

appropriation. Proceeds from the sales of 

circulating coins to the Federal Reserve Banks 

and numismatic items to the public are the 

source of funding for operations. Both

operating expenses and capital investments are 

associated with the production of circulating 

and numismatic coins and coin-related 

products. Revenues in excess of amounts 

required by the PEF are transferred to the 

United States Treasury General Fund. 

The production and circulation of currency in 

the United States have been largely unchanged 

for decades, despite the growth in electronic 

financial transactions. Treasury is continuing 

its comprehensive review of U.S. currency 

including a review of both the production and 

use of coins, in order to efficiently promote 

commerce in the 21st Century. This review 

includes alternative metals, the United States 

Mint facilities, and consumer behavior and 

preferences. Treasury expects to announce the 

results of its review this fiscal year.

The United States Mint’s key priorities for 

FY 2016 include: 

• Circulating - Efficiently and effectively 

mint and issue circulating coins in 

FY 2016 to meet the needs of commerce.

• Numismatic Program

Bullion Products – Mint and issue bullion 

coins to meet customer demand efficiently 

and effectively.

Other Numismatic Products - Produce and 

distribute numismatic products in 

sufficient quantities, through appropriate 

channels, to make them accessible, 

available, and affordable to people who 

choose to purchase them. Design, strike 

and prepare for presentation Congressional 

Gold Medals. 

• Protection - Secure the Nation’s gold 

reserves, silver reserves and other assets. 

FY 2016 United States Mint estimated total 

revenues are $3,839,982,000, total expenses 

are $3,595,307,000, of which $30,468,000 are 

for capital investments, and net results are 

$244,675,000 in earnings.

Department of the Treasury - Budget in Brief 99
US Mint FY 2016 Budget Highlights

Dollars in Thousands

United States Mint FTE Materials Operating & 

Capital Total

FY 2015 Estimated 1,874 $3,168,200 $423,231 $3,591,431

Changes to Base:

Maintaining Current Levels (MCLs): - - $7,233 $7,233

Pay-Raise - - $2,040 $2,040

Pay Annualization - - $522 $522

FERS Contribution Increase - - $711 $711

Non-Pay - - $3,960 $3,960

Efficiency Savings: (100) - ($6,257) ($6,257)

Reduction - Reduce Operating Costs (100) - ($6,257) ($6,257)

Subtotal Changes to Base (100) - $976 $976

Total FY 2016 Base 1,774 $3,168,200 $424,207 $3,592,407

Program Changes:

Program Increases: - $2,900 - $2,900

Metal Due to Forecast Increase in Circulating Coin 

Production - $2,900 - $2,900

Total FY 2016 Estimated 1,774 $3,171,100 $424,207 $3,595,307

FY 2016 Budget Adjustments

Adjustments to Estimates

Maintaining Current Level (MCLs)

Pay-Raise +$2,040,000 / +0 FTE 

Funds are required for the proposed January 

2016 pay-raise.

Pay Annualization +$522,000 / +0 FTE 

Funds are required for annualization of the 

proposed January 2014 pay-raise.

FERS Contribution Increase +$711,000 / 

+0 FTE 

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$3,960,000 / +0 FTE 

Funds are required for inflation adjustments in 

non-labor costs such as travel, contracts, rent, 

supplies, and equipment. 

Efficiency Savings 

Reduction - Reduce Operating Costs 

-$6,257,000 / -100 FTE 

The Mint will reduce its operating budget by 

continuing to monitor costs and implement 

various savings strategies. These strategies 

will be across all departments within the Mint. 

In addition, salary savings will be realized 

through position management control efforts. 

Program Increases

Metal Due to Forecast Increase in 

Circulating Coin Production +$2,900,000 / 

+0 FTE 

The Mint forecasts that demand for circulating 

coins will remain strong in FY 2015 and 2016. 

To meet the growth in demand, a $2.9 million 

increase for metal purchases is required.

Explanation of Budget Activities

Manufacturing ($3,595,307,000 from 

revenue/offsetting collections) 

The Mint has one budget activity: 

manufacturing. This budget activity 

encompasses the bureau’s two major 

programs: circulating coinage and numismatic 

coin products including bullion coins and 

national medals. 

Circulating Coinage Program 

Circulating coinage includes the penny, nickel, 

dime, and quarter-dollar coins. 

The United States Mint delivers circulating 

coinage to the Federal Reserve Banks at face 

value for subsequent distribution to the 

Department of the Treasury - Budget in Brief 100
commercial banking system as required to 

transact commerce.

The Mint will continue to mint and issue 

quarter-dollar coins honoring America’s 

national parks and other national sites in 

accordance with the America’s Beautiful 

National Parks Quarter Dollar Coin Act of 

2008 (Public Law 110-456). In 2016, the 

Mint will release quarters honoring Homestead 

National Monument of America (Nebraska), 

Kisatchie National Forest (Louisiana), Blue 

Ridge Parkway (North Carolina), Bombay 

Hook National Wildlife Refuge (Delaware), 

and Saratoga National Historical Park (New 

York).

Numismatic Program

Bullion Coin Program 

The United States Mint produces bullion coins 

under American Eagle, American Buffalo, and 

America the Beautiful Silver Bullion Coin

Programs to fulfill investor demand. Bullion 

coins are largely bought by precious metal 

dealers and sold to consumers who desire 

precious metals as part of an investment 

portfolio. The demand for bullion coins is 

greatly influenced by the performance of other 

investment options, such as equities markets or 

currency markets, and therefore is highly 

unpredictable. The content and purity of the 

precious metal in the bullion coins are backed 

by the United States Government.

 

Other Numismatic Products 

The United States Mint produces and 

distributes numismatic products, including 

proof and uncirculated versions of coins, 

directly to the public. For some numismatic 

products, authorizing legislation specifies 

program requirements, such as design theme, 

mintage level and duration of product 

availability. Other programs are structured by 

law to grant the Secretary of the Treasury 

discretion in determining product 

specifications. The Numismatic Program 

includes the American Eagle Program, the 

American Buffalo Program, the America the 

Beautiful Quarters Program, the Presidential 

and Native American $1 Coin Programs, 

recurring programs, and commemorative coins 

and medals. 

The Mint will continue to mint and issue 

numismatic versions of $1 coins honoring the 

Nation’s past Presidents in accordance with 

the Presidential $1 Coin Act of 2005 (Public 

Law 109-145). The Mint will release in 2016 

Presidential $1 Coins honoring Presidents 

Richard M. Nixon,Gerald R. Ford, and Ronald 

W. Reagan. The Mint will also continue to 

mint and issue $1 coins celebrating the 

important contributions made by Indian tribes 

and individual Native Americans to the 

development and history of the United States 

in accordance with the Native American $1 

Coin Act (Public Law 110-82). 

In FY 2016, the Mint’s total estimated 

budgetary requirements for operating, metal 

and capital investments are $3,595 million. 

Legislative Proposals

Mint proposes three legislative changes, two 

of which are from the FY 2015 President’s 

Budget. The proposals are: the Coinage 

Materials Modernization Act (CMMA), 

Eliminate the 20 percent requirement in the 

Native American $1 Coin Act, and the Silver 

Proof Set Coin Composition proposal. 

Department of the Treasury - Budget in Brief 101
US Mint Performance by Budget Activity

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

Actual Actual Actual Target Target

Manufacturing Customer Satisfaction Index (%) 90.0 92.6 89.8 90.0 90.0

Manufacturing Numismatic Sales Units (Million 

Units)

5.6 5.51 5.7 5.6 5.6

Manufacturing Safety Incident Recordable Rate 3.5 2.9 3.31 2.96 2.96

Manufacturing Seigniorage per Dollar Issued ($) .21 .24 .37 .24 .24

Description of Performance

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly Customer 

Satisfaction Measure Tracking Survey among 

a random sample of active numismatic 

customers. The survey is intended to capture 

customer satisfaction with the United States 

Mint’s service and product quality. The CSI is 

a quantitative score of survey results. The 

United States Mint’s CSI reached 89.8 percent 

in FY 2014, below the target of 90.0 percent. 

Numismatic Sales Units

The numismatic sales units metric indicates 

the number of coin products sold to the public 

from numismatic operations. It quantifies the 

demand for the Nation’s official numismatic 

products. Numismatic sales units totaled 5.7 

million in FY 2014, exceeding the target of 5.4

million units. . The increase mainly resulted 

from the sale of new products, such as the 

National Baseball Hall of Fame 

Commemorative Coins and the 50th

Anniversary Kennedy Half-Dollar products. 

Safety Incident Recordable Rate 

Safety incident recordable rate is the number 

of injuries and illnesses meeting the 

Occupational Health and Safety 

Administration recording criteria per 100 fulltime workers. The safety incident recordable

rate was 3.31 recordable injuries and illnesses 

per 100 full-time workers in FY 2014, above 

the 3.05 target but below the industry average 

rate of 6.8 for forging and stamping 

manufacturers. 

Seigniorage per Dollar Issued 

Seigniorage is the financial return on 

circulated coinage shipped to the FRB and the 

public. It measures the cost-effectiveness of 

the United States’ circulating coinage. 

Seigniorage per dollar issued was $0.37 in 

FY 2014, above the performance target of 

$0.24. Results exceeded the target mainly due 

to increased FRB demand, lower costs than 

forecast for metals and reduced general and 

administrative expenses. 

Department of the Treasury - Budget in Brief 102
Office of Comptroller of the Currency

Program Summary by Budget Activity

Dollars in Thousands

 FY 2014 FY 2015 FY 2016 FY 2015 TO FY 2016

Budget Activity Actual Estimated Estimated $ Change % Change

Supervise $889,111 $956,544 $975,675 $19,131 2.00%

Regulate $105,436 $113,433 $115,702 $2,269 2.00%

Charter $19,262 $20,723 $21,137 $414 2.00%

Total Cost of Operations $1,013,809 $1,090,700 $1,112,514 $21,814 2.00%

FTE 3,891 3,959 3,959 0 0.00%

Summary

The OCC was created by Congress to charter 

national banks, oversee a nationwide system of 

banking institutions, and ensure national banks 

are safe and sound, competitive and profitable, 

and capable of serving in the best possible 

manner the banking needs of their customers. 

Effective on July 21, 2011, Title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act), 

transferred to the OCC the responsibility for 

the supervision of federal savings associations 

and rulemaking authority for all savings 

associations. 

As of September 30, 2014, the OCC 

supervised 1,152 national bank charters and 49 

federal branches of foreign banks in the United 

States with total assets of approximately $10.2 

trillion, and 462 federal savings associations 

(which include 174 mutual institutions) with 

total assets of approximately $701 billion. In 

total, the OCC supervises about $10.9 trillion 

in financial institution assets. The average size 

and complexity of financial institutions 

continue to grow. This creates increasing and 

diverse challenges for the OCC. 

The OCC has established three goals outlined 

in its strategic plan that help support a strong 

economy for the American public: 1) A 

vibrant and diverse system of national banks 

and federal savings associations that supports a 

robust U.S. economy; 2) “One OCC” focused 

on collaboration, innovation, coordination, and 

process efficiency; 3) The OCC is firmly 

positioned to continue to operate 

independently and effectively into the future. 

To achieve its goals and objectives, the OCC 

organizes its activities under three programs: 

1) Supervise, 2) Regulate, and 3) Charter. 

Effective supervision and a comprehensive 

regulatory framework are the key tools that the 

OCC uses to ensure that national banks and 

federal savings associations operate in a safe 

and sound manner and that they provide fair 

access to financial services and fair treatment 

of their customers. A robust chartering 

program allows new entrants into the financial 

services sector while ensuring that they have 

the necessary capital, managerial, and risk 

management processes to conduct activities in 

a safe and sound manner. 

The OCC’s priorities focus on strengthening 

the resiliency of the institutions subject to its 

jurisdiction through its supervisory and 

regulatory programs and activities. A stronger 

and more resilient banking system directly 

supports three of the Department of the 

Treasury’s FY 2014-2017 (Treasury) strategic 

goals: 1) Promote domestic economic growth 

and stability while continuing reforms of the 

financial system; 4) Safeguard the financial 

system and use financial measures to counter 

national security threats; and 5) Create a 21st-

Department of the Treasury - Budget in Brief 103
century approach to government by improving 

efficiency, effectiveness, and customer 

interaction.

In supervising banks, the OCC has the power 

to: 

• Examine banks; 

• Approve or deny applications for new 

charters, branches, capital, or other 

changes in corporate or banking structure;

• Take supervisory and enforcement actions 

against banks that do not comply with laws 

and regulations or that otherwise engage in 

unsafe or unsound practices; 

• Remove and prohibit officers and 

directors, negotiate agreements—both 

formal (i.e., public) and informal (i.e., nonpublic)—to change banking practices, and 

issue cease-and-desist orders as well as 

Civil Money Penalties (CMP); and

• Issue rules and regulations, legal 

interpretations, supervisory guidance, and 

corporate decisions governing investments, 

lending, and other practices. 

Through on-site examinations, the OCC 

assesses whether national banks and federal 

savings associations appropriately identify, 

account for, and follow prudent strategies for 

problem assets; and maintain a strong 

corporate governance culture that fosters 

sound loan underwriting standards, properly 

aligned incentive compensation structures, and 

strong internal controls, risk management, and 

compliance functions. 

The OCC continues to encourage lenders to 

work with creditworthy borrowers who may be 

facing financial difficulties. The OCC 

continues to be actively involved in the 

residential foreclosure oversight process to 

ensure that all foreclosures are handled 

consistent with regulatory requirements. 

While assessing credit quality, adequacy of 

loan loss reserves, interest rate risk and capital 

adequacy, risk management practices have 

been and continue to be areas of focus. 

Operational risk issues – the risk of loss due to 

failures of people, processes, systems, and 

external events – have become an area of 

heightened risk and supervisory attention. 

Strong enterprise risk management processes 

have been and will continue to be a point of 

emphasis, particularly at larger institutions. In 

addition, the OCC continues to assess and 

address supervisory issues in the areas of fair 

lending, consumer protection, Bank Secrecy 

Act/Anti-Money Laundering, and information 

security.

Operations are funded primarily 

(approximately 97 percent) from semiannual 

assessments levied on national banks and 

federal savings associations. Revenue from 

investments in Treasury securities and other 

income comprise the remaining three percent 

of the OCC’s funding. 

The OCC does not receive congressional 

appropriations to fund any portion of its 

operations. 

Explanation of Budget Activities

Supervise ($956,544,000 from revenue/

offsetting collections) 

The Supervise program consists of ongoing 

supervision and enforcement activities 

undertaken to ensure that each national bank 

and federal savings institution is operating in a 

safe and sound manner and is complying with 

applicable laws, rules, and regulations relative 

to the financial institution and the customers 

and communities it serves. Included are 

examinations and enforcement activities; 

resolution of disputes through a formal 

appeals process; ongoing monitoring of 

national banks and federal savings 

associations; and analysis of systemic risks 

and market trends in the federal banking 

system, the financial services industry, and the 

economic and regulatory environment. 

 

Department of the Treasury - Budget in Brief 104
Regulate ($113,433,000 from revenue/

offsetting collections) 

The Regulate program consists of ongoing 

activities that result in the establishment of 

regulations, policies, operating guidance, and 

interpretations of general applicability to 

national banks and federal savings 

associations. These regulations, policies, and 

interpretations may establish system-wide 

standards, define acceptable banking practices, 

provide guidance on risks and responsibilities 

facing national banks and federal savings 

associations, or prohibit (or restrict) banking 

practices deemed to be imprudent or unsafe. 

This includes the establishment of examination 

policies, handbooks, and interpretations for 

examiners as well as representation of the 

OCC’s regulatory authorities and 

interpretations in administrative, judicial, and 

congressional hearings. 

Charter ($20,723,000 from revenue/offsetting 

collections) 

The Regulate program consists of ongoing 

activities that result in the establishment of 

regulations, policies, operating guidance, and 

interpretations of general applicability to 

national banks and federal savings 

associations. These regulations, policies, and 

interpretations may establish system-wide 

standards, define acceptable banking practices, 

provide guidance on risks and responsibilities 

facing national banks and federal savings 

associations, or prohibit (or restrict) banking 

practices deemed to be imprudent or unsafe. 

This includes the establishment of examination 

policies, handbooks, and interpretations for 

examiners as well as representation of the 

OCC’s regulatory authorities and 

interpretations in administrative, judicial, and 

congressional hearings. 

Legislative Proposals

OCC has no legislative proposals. 

Department of the Treasury - Budget in Brief 105
OCC Performance by Budget Activity

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

Actual Actual Actual Target Target

Supervise Percentage of National Banks and 

Federal Savings Associations That 

Are Categorized As Well 

Capitalized 

92.0 94.0 93.0 95.0 95.0

Supervise Percentage of National Banks and 

Federal Savings Associations With 

Consumer Compliance Rating of 1 

or 2

93.0 94.0 95.0 94.0 94.0

Supervise Percentage of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2

76.0 80.0 87.0 90.0 90.0

Supervise Rehabilitated National Banks And 

Federal Savings Associations As A 

Percentage Of Problem National 

Banks One Year Ago (CAMEL 3,4, 

or 5)

27.0 34.0 39.0 40.0 40.0

Supervise Total OCC Costs Relative To Every 

$100,000 in Bank And Federal 

Savings Associations Assets 

Regulated ($)

10.51 9.99 9.9 10.2 10.2

Charter Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes

98.0 97.0 98.0 95.0 95.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

The OCC’s Supervision Program specifically 

supports the following Treasury Objectives: 

1.3: Complete implementation of financial 

regulatory reform initiatives and continue 

monitoring the markets for threats to stability;

1.4: Facilitate commerce by providing trusted 

U.S. currency, services, and products for the 

American public and enterprises;

4.3: Improve the cybersecurity of our Nation’s 

financial sector critical infrastructure; and

4.4: Protect the integrity of the financial 

system by implementing, promoting, and 

enforcing anti-money laundering and 

counterterrorism financing standards.

 

The OCC charters, regulates and supervises all 

national banks and federal savings 

associations, as well as supervises federal 

branches and agencies of foreign banks. The 

primary goal of the OCC’s Supervision 

Program is to ensure that these institutions 

operate in a safe and sound manner and in 

compliance with laws requiring fair treatment 

of their customers and fair access to credit and 

financial products. The OCC’s Supervision 

Program supports the implementation of the 

financial regulatory reform initiatives 

including those in the Dodd-Frank Wall Street 

Reform and Consumer Protection Act as well 

as other regulatory initiatives designed to 

strengthen the nation’s federal banking 

system. The OCC also monitors risks and 

threats to the stability of the federal banking 

system through its regular examinations of the 

institutions it supervises and other monitoring 

programs such as its Semi-annual Risk 

Perspectives Report, participation in the 

Department of the Treasury - Budget in Brief 106
Shared National Credit Program, and its Credit 

Underwriting Survey. 

The overall objective of the OCC’s 

Supervision Program supports facilitating 

commerce through the goal of ensuring the 

safety and soundness of the federal banking 

system. Through its Supervision Program the 

OCC has taken a number of steps to improve 

the cybersecurity of the nation’s financial 

sector critical infrastructure including 

organizing a Web conference, “The Evolving 

Cyber Landscape: Awareness, Preparedness, 

and Strategy for Community Banks,” for more 

than 1,000 community bankers and holding a 

series of confidential briefings for banks, 

third-party service providers and bank 

examiners. The agency also created and filled 

a new position, Senior Infrastructure Officer 

whose focus is cybersecurity policy for the 

federal banking system. Actions taken to 

improve the cybersecurity of the federal 

banking system include the issuance of an alert 

on denial-of-service attacks, and reviews of 

examiner handbooks, procedures, and training 

materials to ensure that, as threats evolve, all 

national banks and federal savings associations 

can identify cyber risks and strengthen their 

risk management and control systems. In 

addition, the OCC became a member of the 

Financial Services Information Sharing and 

Analysis Center in 2013. Membership gives 

the OCC greater real-time insight into a broad 

range of potential threats to the industry and 

the ability to assist, when appropriate, in a 

coordinated response with other government 

agencies. Finally, the OCC supports 

protecting the integrity of the financial system 

through its examinations of compliance with 

BSA/AML and through the initiation of 

enforcement actions for non-compliance with 

BSA/AML laws and regulations. 

The Federal Deposit Insurance Act established 

a system that classifies insured depository 

institutions into five categories (wellcapitalized, adequately capitalized, 

undercapitalized, significantly 

undercapitalized, and critically 

undercapitalized) based on their capital levels 

relative to their risks. Through September 30, 

2014, 93 percent of national banks and federal 

savings associations were classified as well 

capitalized. 

The composite CAMELS (Capital adequacy, 

Asset quality, Management, Earnings, 

Liquidity, and Sensitivity to market risk) 

rating reflects the overall condition of a bank. 

Bank regulatory agencies use the Uniform 

Financial Institutions Rating System, 

CAMELS, to provide a general framework for 

evaluating all significant financial, operational, 

and compliance factors inherent in a bank. 

The rating scale is 1 through 5 of which 1 is 

the highest rating granted. CAMELS ratings 

are assigned at the completion of every 

supervisory cycle or when there is a significant 

event leading to a change in CAMELS. 

Through September 30, 2014, 87 percent of 

national banks and federal savings associations 

earned composite CAMELS rating of either 1 

or 2. 

Problem banks ultimately can reach a point at 

which rehabilitation is no longer feasible. The 

OCC’s early identification and intervention

with problem banks can lead to successful 

remediation of these banks. The OCC 

recommends corrective actions to problem 

banks for improving their operations and, as a 

result, 39 percent of banks with composite 

CAMELS ratings of 3, 4, or 5 one year ago 

have improved their ratings to either 1 or 2 this 

year. As with other measures, this target 

benchmark has been adversely affected by the 

underlying economic conditions facing the 

banking industry. 

To ensure fair access to financial services and 

fair treatment of bank customers, the OCC 

evaluates a bank’s compliance with consumer 

laws and regulations. Bank regulatory 

Department of the Treasury - Budget in Brief 107
agencies use the Uniform Financial 

Institutions Rating System, Interagency 

Consumer Compliance Rating, to provide a 

general framework for assimilating and 

evaluating significant consumer compliance 

factors inherent in a bank. Each financial 

institution is assigned a consumer compliance 

rating based on an evaluation of its present 

compliance with consumer protection and civil 

rights statutes and regulations, and the 

adequacy of its operating systems designed to 

ensure continuing compliance. Ratings are on 

a scale of 1 through 5 in increasing order of 

supervisory concern. National banks and 

federal savings associations continue to show 

strong compliance with consumer protection 

regulations with 95 percent earning a 

consumer compliance rating of either 1 or 2 

through September 30, 2014. 

The OCC’s timely and effective approval of 

corporate applications contributes to the 

nation’s economy by enabling national banks 

and federal savings associations to complete 

various corporate transactions and introduce 

new financial products and services. Delays in 

providing prompt decisions on applications 

and notices can deprive a bank of a 

competitive or business opportunity, create 

business uncertainties, or diminish financial 

results. Time frames have been established for 

completing each type of application and 

notice. The OCC completed 98 percent of 

applications and notices within the time 

standard through September 30, 2014. 

The OCC monitors the efficient use of its 

resources by measuring Total OCC Costs 

Relative to Every $100,000 in Bank Assets 

Regulated. This measure reflects the 

efficiency of its operations while meeting the 

increasing supervisory demands of a growing 

and more complex financial system. This 

measure supports the OCC’s strategic goal of 

efficient use of agency resources. The OCC’s 

ability to control its costs while ensuring the 

safety and soundness of national banks and 

federal savings associations benefits all 

national bank and federal savings association 

customers. The OCC will continue its efforts 

to ensure that resources are used prudently and 

that programs are carried out in a cost effective 

manner.

Department of the Treasury - Budget in Brief 108
Treasury International Programs

Program Summary

Dollars in thousands

Budget Activity

FY 2014 

Enacted

FY 2015 

Enacted

FY 2016 

Request

Of which, 

payment toward 

unmet 

commitments

International Monetary Fund (IMF) $0 $0 $62,000 $0

Multilateral Development Banks (MDBs) $2,075,449 $1,999,804 $2,188,353 $246,472

International Development Association (IDA) $1,355,000 $1,287,800 $1,290,600 $0

Multilateral Debt Relief Initiative (MDRI) for IDA $0 $0 $111,000 $111,000

International Bank for Reconstruction and Development (IBRD) $186,957 $186,957 $192,920 $5,964

Inter-American Development Bank (IDB and FSO) $102,000 $102,020 $102,020 $0

Multilateral Investment Fund (MIF) $6,298 $3,378 $0 $0

African Development Fund (AfDF) $176,336 $175,668 $227,500 $32,500

Multilateral Debt Relief Initiative (MDRI) for AfDF $0 $0 $13,500 $13,500

African Development Bank (AfDB) $32,418 $32,418 $34,118 $1,700

Asian Development Bank (AsDB) $106,586 $106,586 $5,608 $5,608

Asian Development Fund (AsDF) $109,854 $104,977 $166,086 $76,200

North American Development Bank (NADB) $0 $0 $45,000 $0

Food Security $163,000 $30,000 $74,930 $1,930

Global Agriculture and Food Security Program (GAFSP) $133,000 $0 $43,000 $0

International Fund for Agricultural Development (IFAD) $30,000 $30,000 $31,930 $1,930

Environmental Trust Funds $428,280 $401,000 $548,563 $31,700

Green Climate Fund (GCF) $0 $0 $150,000 $0

Clean Technology Fund (CTF)1 $209,630 $184,630 $170,680 $0

Strategic Climate Funds (SCF)1 $74,900 $49,900 $59,620 $0

Global Environment Facility (GEF) $143,750 $136,563 $168,263 $31,700

ESF Statutory Transfer2 $0 $29,907 $0 $0

Treasury Office of Technical Assistance $23,500 $23,500 $28,000 $0

TOTAL $2,690,229 $2,454,304 $2,901,846 $280,102

2

 Provided by sec. 7060(c)(8) of the Consolidated and Further Continuing Appropriations Act, 2015. 

1

 FY 2014 Enacted includes $25 million provided under sec. 7060(c)(8) of the Consolidated Appropriations Act, 2014. 

Department of the Treasury - Budget in Brief 109
Summary

International Monetary Fund

Treasury is seeking appropriations and 

authorization language within the FY 2016 

request for the International Monetary Fund 

(IMF). In 2010, G-20 Leaders and the IMF 

membership decided on a set of quota and 

governance reforms designed to strengthen 

the IMF’s critical role within the international 

system. The 2010 reforms are an important 

step toward modernizing IMF governance to 

better reflect countries’ economic weights in 

the global economy, while preserving U.S. 

leadership and veto power. 

The proposed appropriations and 

authorization language would reduce U.S. 

participation in the IMF’s New Arrangements 

to Borrow (NAB) by approximately $59 

billion and increase the U.S. quota by an 

equal amount, for no net change in the overall 

U.S. financial commitment to the IMF. The 

proposal also authorizes the United States to 

accept an amendment to the IMF Articles of 

Agreement that will facilitate changes in the 

composition of the IMF Executive Board 

while preserving U.S. influence in the Board. 

Completing the IMF reforms is a national 

security and economic policy priority for the 

United States. The Administration is 

proposing a discretionary funding approach, 

but we are prepared to work with Congress on 

other feasible approaches to get legislation 

passed as soon as possible, including 

mandatory funding approaches. 

Multilateral Development Banks

Treasury’s request provides $366 million for 

annual general capital increase (GCI) 

commitments at the multilateral development 

banks (MDBs). FY 2016 is the first year that 

scheduled funding will not be required for the 

Asian Development Bank (AsDB) GCI, 

though funding is included for our unmet 

AsDB commitments. In addition, FY 2016 is 

the final year of scheduled payments for the 

ongoing GCIs at the World Bank’s 

International Bank for Reconstruction and 

Development (IBRD) and Inter-American 

Development Bank (IDB). GCI payments for 

the African Development Bank (AfDB) are 

scheduled to continue through FY 2019. 

A new initiative in this request is a GCI for 

the North American Development Bank 

(NADB), which finances environmental 

infrastructure on the U.S.-Mexican border. 

Our request includes the first of five $45 

million installments in paid-in capital for the 

GCI. In addition to a total of $1.3 billion in 

callable capital, plus matching funds from the 

Government of Mexico, this request would 

support a doubling of the NADB’s capital 

over five years. The President announced the 

NADB capital increase at this year’s meeting 

of the High-Level Economic Dialogue, 

reflecting a strong U.S. commitment to 

deepen engagement with Mexico. NADB is 

well respected in the border region and has 

helped communities in both the United States 

and Mexico access critical infrastructure such 

as wastewater services. In recent years, 

NADB has provided renewable energy to 

residents in border states and has promoted

new private sector investment in the sector 

along the border. Without a capital increase, 

NADB will lack the financial resources 

needed to continue supporting these important 

investments. Mexico announced its support 

for a capital increase in March 2014. 

Our request also provides $1.6 billion to fully 

meet our annual replenishment commitments 

to the World Bank’s International 

Development Association (IDA), the African 

Development Fund (AfDF), and the Asian 

Development Fund (AsDF). 

Department of the Treasury - Budget in Brief 110
Food Security

The request includes $43 million for the 

Global Agriculture and Food Security 

Program (GAFSP), the multilateral 

component of the President’s Feed the Future 

initiative. This amount is enough to match 

$86 million in new commitments from other 

donors, in line with the United States’ pledge 

to provide $1 for every $2 provided by other 

donors, up to a total U.S. contribution of $475 

million. In addition, the request includes the 

first payment of $30 million towards the new 

replenishment of the International Fund for 

Agricultural Development (IFAD). 

Environment and Clean Energy

Our request includes $150 million toward the 

U.S. pledge to the Green Climate Fund 

(GCF), providing a total of $500 million 

when combined with $350 million requested 

through the Department of State. Joining 

other nations, the United States pledged $3 

billion – not to exceed 30 percent of total 

confirmed pledges – to this new $10 billion 

fund, which will support the transition of 

developing countries to a more sustainable 

development path. The GCF will also 

mobilize private sector resources toward clean 

and reliable energy and toward increased 

resilience. It will build on the best practices 

and lessons learned from the Climate 

Investment Funds (CIFs), to which the 

previous Administration pledged $2 billion 

with bipartisan support. Our request includes 

$230 million to fully meet the remainder of 

this commitment to the CIFs. It also fully 

funds the annual replenishment commitment 

to the Global Environment Facility (GEF) at 

$137 million and includes $32 million to pay 

down our unmet commitments. 

Unmet Commitments

U.S. unmet commitments, which now exceed 

$1.5 billion, erode U.S. credibility, pose a 

threat to our ability to shape the policy 

priorities of the MDBs and related funds, and 

in some cases hamper the ability of these 

entities to deliver results. Our FY 2016 

request would reduce these unmet 

commitments by $280 million. In making 

allocations, we have maximized paying down 

those unmet commitments that are most 

damaging to U.S. credibility and to the 

programming capacity of the entities. We 

have also sought to avoid incurring new 

unmet commitments.

Specifically, the FY 2016 request allocates 

$33 million for unmet commitments at the 

AfDF. Our nearly $180 million in unmet 

commitments to the AfDF severely constrain 

the AfDF’s overall programming capacity. 

Paying down our unmet commitments would 

demonstrate our sustained support for this 

institution, which is a key partner in reducing 

poverty in Africa. AfDF makes critical 

contributions to Power Africa and other 

international efforts to address Africa’s 

massive infrastructure needs. AfDF works to 

combat the Ebola epidemic and assists many 

of the poorest and most fragile countries in 

the world. 

The request also includes $76 million to pay 

down our unmet commitments to the AsDF. 

Our over $300 million in unmet commitments 

constrain the AsDF’s commitment capacity. 

Paying down some of our unmet 

commitments would increase AsDF 

assistance, including to support Afghanistan 

through the political and military transitions, 

promote energy sector reform in Pakistan, 

bolster the democratic transition in Burma, 

and help Central Asia reduce its economic 

dependence on Russia. 

Our FY 2016 request also includes funding 

for our unmet commitments to the 

Multilateral Debt Relief Initiative (MDRI). 

MDRI provides 100 percent cancelation of 

eligible debt owed to IDA and AfDF by 

Department of the Treasury - Budget in Brief 111
countries reaching the completion point under 

the Heavily Indebted Poor Countries (HIPC) 

initiative. With no funding appropriated in 

FY 2014 or FY 2015, the unmet U.S. 

commitments to MDRI at IDA and AfDF 

have climbed to $300 million. In this request, 

we have included $111 million for IDA and 

$14 million for AfDF. The United States was 

the leading advocate for the creation of 

MDRI, which was established to identify 

sustainable debt solutions to the severe 

financial difficulties faced by in the world’s 

poorest countries. The U.S. share of the cost 

of MDRI is projected to grow rapidly in the 

future, reaching an annual amount of over 

$300 million from FY 2021 through FY 2029, 

after which the cost will decline until MDRI 

ends in FY 2044. 

The FY 2016 request includes $13 million for 

our unmet IBRD, AfDB, and AsDB 

commitments in order to prevent a permanent 

loss of shareholding at those institutions. In 

addition, the request includes $2 million 

toward unmet commitments at IFAD and, as 

noted above, $32 million at the GEF. 

Treasury Office of Technical Assistance

Our request includes $28 million for the 

Treasury Office of Technical Assistance 

(OTA). This amount approximately restores 

prior levels, with an increase of nearly $5 

million over the FY 2015 enacted level. The 

requested increase reflects a strong and 

increasing demand for OTA assistance to 

support U.S. economic and security priorities 

in Central America, Africa, Asia, Ukraine and 

other conflict zones. The request also allows 

for a modest but important expansion of 

OTA’s work in priority areas, including 

infrastructure finance and domestic resource 

mobilization, which helps partner countries 

generate revenue and manage their resources 

more effectively. OTA will coordinate with 

the Department of State, USAID, and other 

government agencies in the whole of 

government approach for the U.S. Strategy 

for Engagement in Central America.

Department of the Treasury - Budget in Brief 112
Summary of FY 2106 Appropriations Language

Below is a summary of proposed Treasury 

appropriations language changes from the 

FY 2015 enacted bill. Please note that 

brackets indicate which material will be 

deleted, and italics indicate which material 

will be inserted.

DEPARTMENTAL OFFICES 

SALARIES AND EXPENSES

For necessary expenses of the Departmental 

Offices including operation and maintenance 

of the Treasury Building and Annex; hire of 

passenger motor vehicles; maintenance, 

repairs, and improvements of, and purchase 

of commercial insurance policies for, real 

properties leased or owned overseas, when 

necessary for the performance of official 

business; executive direction program 

activities; international affairs and economic 

policy activities; domestic finance and tax 

policy activities; terrorism and financial 

intelligence activities; and Treasury-wide 

management policies and programs 

activities, [$210,000,000] $331,837,000: 

Provided, That of the amount appropriated 

under this heading— (1) Not less than 

$109,609,000 is for the Office of Terrorism 

and Financial Intelligence to safeguard the 

financial system against illicit use and to

combat rogue nations, terrorist facilitators, 

weapons of mass destruction proliferators, 

money launderers, drug kingpins, and other 

national security threats; ([1]2) not to 

exceed $350,000 is for official reception and 

representation expenses; ([2]3) not to exceed 

$258,000 is for unforeseen emergencies of a 

confidential nature to be allocated and 

expended under the direction of the 

Secretary of the Treasury and to be 

accounted for solely on the Secretary's 

certificate; (4) notwithstanding any other 

provision of law, up to $1,000,000 may be 

contributed to the Organization for

Economic Cooperation and Development for 

the Department's participation in programs 

related to global tax administration; and

([3]5) not to exceed [$24,200,000] 

$25,200,000 shall remain available until

September 30, [2016] 2017, for— (A) the 

Treasury-wide Financial Statement Audit 

and Internal Control Program; (B) 

information technology modernization 

requirements; (C) [in an amount not less 

than $9,500,000, the audit, oversight, and 

administration of the Gulf Coast Restoration 

Trust Fund; and] secure space requirements;

(D) in an amount not to exceed $3,400,000, 

the development and implementation of 

programs within the Office of Critical 

Infrastructure Protection and Compliance 

Policy, including entering into cooperative 

agreements; and (E) in an amount not to 

exceed $10,000,000 for a Digital Service 

team. Provided further, That, in addition to 

the amount otherwise made available under

this heading, $7,000,000 shall remain 

available until September 30, 2017, for 

necessary expenses for carrying out subtitle 

F of title I of division A of Public Law 112–

141, to be derived from the trust fund 

established under section 1602 of such

Public Law, without altering the 

percentages of funds made available for 

other purposes from the remaining balance 

of the trust fund. 

OFFICE OF TERRORISM AND FINANCIAL

INTELLIGENCE 

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS) 

[For the necessary expenses of the Office of 

Terrorism and Financial Intelligence to 

safeguard the financial system against illicit 

use and to combat rogue nations, terrorist 

facilitators, weapons of mass destruction 

proliferators, money launderers, drug 

kingpins, and other national security threats, 

$112,500,000: Provided, That of the amount 

appropriated under this heading: (1) not to 

exceed $27,000,000 is available for 

Department of the Treasury - Budget in Brief 113
administrative expenses; and (2) $1,000,000, 

to remain available until September 30 

2016, is available for secure space 

requirements: Provided further, That the 

unobligated balances of prior year 

appropriations made available for terrorism 

and financial intelligence activities under the 

heading "Department of the Treasury—

Departmental Offices—Salaries and 

Expenses" shall be transferred to, and 

merged with, this account.] 

DEPARTMENT-WIDE SYSTEMS AND CAPITAL 

INVESTMENTS PROGRAMS 

(INCLUDING TRANSFER OF FUNDS) 

For development and acquisition of 

automatic data processing equipment, 

software, and services and for repairs and 

renovations to buildings owned by the 

Department of the Treasury, [$2,725,000] 

$10,690,000, to remain available until

September 30, [2017] 2018: Provided, That 

these funds shall be transferred to accounts 

and in amounts as necessary to satisfy the 

requirements of the Department's offices, 

bureaus, and other organizations: Provided 

further, That this transfer authority shall be 

in addition to any other transfer authority 

provided in this Act [: Provided further, 

That none of the funds appropriated under 

this heading shall be used to support or 

supplement "Internal Revenue Service, 

Operations Support" or "Internal Revenue 

Service, Business Systems Modernization"]. 

OFFICE OF THE INSPECTOR GENERAL 

SALARIES AND EXPENSES

For necessary expenses of the Office of 

Inspector General in carrying out the

provisions of the Inspector General Act of 

1978, [$35,351,000] $35,416,000, including

hire of passenger motor vehicles; of which 

not to exceed $100,000 shall be available for 

unforeseen emergencies of a confidential 

nature, to be allocated and expended under 

the direction of the Inspector General of the 

Treasury; of which up to $2,800,000, to 

remain available until September 30, 2017, 

shall be for audits and investigations 

conducted pursuant to section 1608 of the 

Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 

2012 (33 U.S.C. 1321 note)[; and of which 

not to exceed $1,000 shall be available for 

official reception and representation 

expenses]. 

TREASURY INSPECTOR GENERAL FOR TAX

ADMINISTRATION 

SALARIES AND EXPENSES

For necessary expenses of the Treasury 

Inspector General for Tax Administration in 

carrying out the Inspector General Act of 

1978, as amended, including purchase and 

hire of passenger motor vehicles (31 U.S.C. 

1343(b)); and services authorized by 5 

U.S.C. 3109, at such rates as may be 

determined by the Inspector General for Tax 

Administration; [$158,210,000] 

$167,275,000, of which $5,000,000 shall

remain available until September 30, [2016] 

2017; of which not to exceed $6,000,000 

shall be available for official travel 

expenses; of which not to exceed $500,000 

shall be available for unforeseen 

emergencies of a confidential nature, to be 

allocated and expended under the direction 

of the Inspector General for Tax

Administration[; and of which not to exceed 

$1,500 shall be available for official

reception and representation expenses].

TREASURY FORFEITURE FUND 

[(RESCISSION)] (CANCELLATION) 

Of the unobligated balances available under 

this heading, [$769,000,000] $875,000,000 

are [rescinded] hereby permanently 

cancelled not later than September 30, 2016. 

Department of the Treasury - Budget in Brief 114
COMMUNITY DEVELOPMENT FINANCIAL 

INSTITUTIONS FUND PROGRAM ACCOUNT

To carry out the Riegle Community 

Development and Regulatory Improvements

Act of 1994 (subtitle A of title I of Public 

Law 103–325), including services 

authorized by section 3109 of title 5, United 

States Code, but at rates for individuals not

to exceed the per diem rate equivalent to the 

rate for EX-3, [$230,500,000] $233,523,000. 

Of the amount appropriated under this 

heading—(1) not less than [$152,400,000] 

$157,593,000, notwithstanding section 

108(e) of Public Law 103–325 (12 U.S.C. 

4707(e)) with regard to Small and/or 

Emerging Community Development 

Financial Institutions Assistance awards, is 

available until September 30, [2016] 2017, 

for financial assistance and technical 

assistance under subparagraphs (A) and (B) 

of section 108(a)(1), respectively, of Public 

Law 103–325 (12 U.S.C. 4707(a)(1)(A) and 

(B)), of which up to $3,102,500 may be used 

for the cost of direct loans: Provided, That 

the cost of direct and guaranteed loans,

including the cost of modifying such loans, 

shall be as defined in section 502 of the 

Congressional Budget Act of 1974: 

Provided further, That these funds are

available to subsidize gross obligations for 

the principal amount of direct loans not to 

exceed $25,000,000; (2) not less than 

[$15,000,000] $16,000,000, notwithstanding 

section 108(e) of Public Law 103–325 (12 

U.S.C. 4707(e)), is available until 

September 30, [2016] 2017, for financial 

assistance, technical assistance, training and 

outreach programs designed to benefit 

Native American, Native Hawaiian, and 

Alaskan Native communities and provided 

primarily through qualified community 

development lender organizations with 

experience and expertise in community 

development banking and lending in Indian 

country, Native American organizations,

tribes and tribal organizations, and other 

suitable providers; [(3) not less than 

$18,000,000 is available until September 30, 

2016, for the Bank Enterprise Award 

program;] ([4]3) not less than [$22,000,000] 

$35,000,000, notwithstanding subsections

(d) and (e) of section 108 of Public Law 

103–325 (12 U.S.C. 4707(d) and (e)), is

available until September 30, [2016] 2017, 

for a Healthy Food Financing Initiative to 

provide financial assistance, technical 

assistance, training, and outreach to 

community development financial 

institutions for the purpose of offering 

affordable financing and technical assistance 

to expand the availability of healthy food 

options in distressed communities; ([5]4) up 

to [$23,100,000] $24,930,000 is available 

until September 30, [2015] 2017, for 

administrative expenses, including 

administration of CDFI fund programs

including the Capital Magnet Fund and the 

New Markets Tax Credit Program, of which 

up to $1,000,000 is for capacity building to 

expand CDFI investments in underserved 

areas, and up to $300,000 is for 

administrative expenses to carry out the 

direct loan program; and ([6]5) during fiscal 

year [2015] 2016, none of the funds 

available under this heading are available for 

the cost, as defined in section 502 of the 

Congressional Budget Act of 1974, of 

commitments to guarantee bonds and notes 

under section 114A of the Riegle 

Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 

4713a): Provided, That commitments to 

guarantee bonds and notes under such 

section 114A shall not exceed 

[$750,000,000: Provided further, That such 

section 114A shall remain in effect until 

September 30, 2015] $1,000,000,000. 

SPECIAL INSPECTOR GENERAL FOR THE 

TROUBLED ASSET RELIEF PROGRAM 

SALARIES AND EXPENSES

For necessary expenses of the Office of the 

Special Inspector General in carrying out the 

provisions of the Emergency Economic 

Department of the Treasury - Budget in Brief 115
Stabilization Act of 2008 (Public Law 110–

343), [$34,234,000] $40,671,000.

FINANCIAL CRIMES ENFORCEMENT NETWORK 

SALARIES AND EXPENSES

For necessary expenses of the Financial 

Crimes Enforcement Network, including

hire of passenger motor vehicles; travel and 

training expenses of non-Federal and foreign 

government personnel to attend meetings 

and training concerned with domestic and 

foreign financial intelligence activities, law 

enforcement, and financial regulation; 

services authorized by 5 U.S.C. 3109; not to 

exceed $10,000 for official reception and 

representation expenses; and for assistance 

to Federal law enforcement agencies, with 

or without reimbursement, [$112,000,000] 

$112,979,000, of which not to exceed 

$34,335,000 shall remain available until 

September 30, [2017] 2018.

BUREAU OF THE FISCAL SERVICE 

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. 

ALCOHOL AND TOBACCO TAX AND TRADE 

BUREAU 

SALARIES AND EXPENSES

For necessary expenses of carrying out 

section 1111 of the Homeland Security Act 

of 2002, including hire of passenger motor 

vehicles, [$100,000,000] $101,439,000; of 

which not to exceed $6,000 for official 

reception and representation expenses; not 

to exceed $50,000 for cooperative research 

and development programs for laboratory 

services; and provision of laboratory 

assistance to State and local agencies with or 

without reimbursement: Provided, That of 

the amount appropriated under this heading, 

[$3,000,000 shall be for the costs of criminal 

enforcement activities and special law 

enforcement agents for targeting tobacco 

smuggling and other criminal diversion 

activities] such sums as are necessary shall 

be available to fully support tax enforcement 

and compliance activities including tax 

compliance to address the Federal tax gap, 

as specified for purposes of Section 

251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as 

amended. 

UNITED STATES MINT 

PUBLIC ENTERPRISE FUND

Pursuant to section 5136 of title 31, United 

States Code, the United States Mint is 

provided funding through the United States 

Mint Public Enterprise Fund for costs 

associated with the production of circulating 

coins, numismatic coins, and protective 

services, including both operating expenses 

and capital investments: Provided, That the 

aggregate amount of new liabilities and 

obligations incurred during fiscal year 

[2015] 2016 under such section 5136 for 

circulating coinage and protective service 

capital investments of the United States 

Mint shall not exceed $20,000,000. 

Department of the Treasury - Budget in Brief 116
INTERNAL REVENUE SERVICE 

TAXPAYER SERVICES

For necessary expenses of the Internal 

Revenue Service to provide taxpayer

services, including pre-filing assistance and 

education, filing and account services,

taxpayer advocacy services, and other 

services as authorized by 5 U.S.C. 3109, at

such rates as may be determined by the 

Commissioner, [$2,156,554,000] 

$2,408,803,000, of which not less than 

[$7,000,000] $5,600,000 shall be for the Tax 

Counseling for the Elderly Program, of 

which not less than [$10,000,000] 

$12,000,000 shall be available for lowincome taxpayer clinic grants, and of which

not less than $12,000,000, to remain 

available until September 30, [2016] 2017, 

shall be available for a Community 

Volunteer Income Tax Assistance matching

grants program for tax return preparation 

assistance, of which not less than

$206,000,000 shall be available for 

operating expenses of the Taxpayer 

Advocate Service: Provided, That of the 

amounts made available for the Taxpayer 

Advocate Service, not less than $5,000,000

shall be for identity theft casework.

ENFORCEMENT

For necessary expenses for tax enforcement 

activities of the Internal Revenue Service to 

determine and collect owed taxes, to provide 

legal and litigation support, to conduct 

criminal investigations, to enforce criminal 

statutes related to violations of internal 

revenue laws and other financial crimes, to 

purchase and hire passenger motor vehicles 

(31 U.S.C. 1343(b)), and to provide other 

services as authorized by 5 U.S.C. 3109, at 

such rates as may be determined by the 

Commissioner [$4,860,000,000] 

$5,399,832,000, of which not to exceed 

$150,000,000 shall remain available until 

September 30, 2017, and of which not less 

than [$60,257,000] $57,493,000 shall be for 

the Interagency Crime and Drug 

Enforcement program: Provided, That, of 

the amounts provided under this heading, 

not less than $352,100,000, of which 

$5,000,000 shall be transferred to the 

Alcohol and Tobacco Tax and Trade 

Bureau, shall be for an additional 

appropriation for tax activities, including 

tax compliance to address the Federal tax 

gap, as specified for purposes of Section 

251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as 

amended. 

OPERATIONS SUPPORT

For necessary expenses of the Internal 

Revenue Service to support taxpayer

services and enforcement programs, 

including rent payments; facilities services;

printing; postage; physical security; 

headquarters and other IRS-wide 

administration activities; research and 

statistics of income; telecommunications; 

information technology development, 

enhancement, operations, maintenance, and 

security; the hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and other 

services as authorized by 5 U.S.C. 3109, at 

such rates as may be determined by the 

Commissioner; [$3,638,446,000] 

$4,743,258,000, of which not to exceed 

$315,000,000 shall remain available until 

September 30, [2016] 2017; of which not to 

exceed $65,000,000 shall remain available 

until expended for acquisition of equipment

and construction, repair and renovation of 

facilities; of which not to exceed $1,000,000 

shall remain available until September 30, 

[2017] 2018, for research; of which [not less 

than]not to exceed $1,850,000 shall be for 

the Internal Revenue Service Oversight 

Board; of which not to exceed $25,000 shall 

be for official reception and representation 

expenses: Provided, That not later than 30 

days after the end of each quarter, the 

Department of the Treasury - Budget in Brief 117
Internal Revenue Service shall submit a 

report to the Committees on Appropriations 

of the House of Representatives and the 

Senate and the Comptroller General of the 

United States detailing the cost and schedule

performance for its major information 

technology investments, including the

purpose and life-cycle stages of the 

investments; the reasons for any cost and

schedule variances; the risks of such 

investments and strategies the Internal

Revenue Service is using to mitigate such 

risks; and the expected developmental

milestones to be achieved and costs to be 

incurred in the next quarter: Provided

further, That the Internal Revenue Service 

shall include, in its budget justification for 

fiscal year [2016] 2017, a summary of cost 

and schedule performance information for 

its major information technology systems: 

Provided further, That, of the amounts 

provided under this heading, such sums as 

are necessary shall be available to fully 

support tax enforcement and compliance 

activities, including not less than

$315,197,000, for an additional 

appropriation for tax activities, including 

tax compliance to address the Federal tax 

gap, as specified for purposes of Section 

251(b)(2) of the Balanced Budget and 

Emergency Deficit Control Act of 1985, as

amended. 

BUSINESS SYSTEMS MODERNIZATION

For necessary expenses of the Internal 

Revenue Service's business systems

modernization program, [$290,000,000] 

$379,178,000, to remain available until

September 30, [2017] 2018, for the capital 

asset acquisition of information technology

systems, including management and related 

contractual costs of said acquisitions,

including related Internal Revenue Service 

labor costs, and contractual costs associated 

with operations authorized by 5 U.S.C. 

3109: Provided, That not later than 30 days 

after the end of each quarter, the Internal 

Revenue Service shall submit a report to the 

Committees on Appropriations of the House 

of Representatives and the Senate and the 

Comptroller General of the United States 

detailing the cost and schedule performance 

for CADE 2 and Modernized e-File 

information technology investments, 

including the purposes and life-cycle stages 

of the investments; the reasons for any cost 

and schedule variances; the risks of such

investments and the strategies the Internal 

Revenue Service is using to mitigate such 

risks; and the expected developmental 

milestones to be achieved and costs to be 

incurred in the next quarter. 

ADMINISTRATIVE PROVISIONS —

INTERNAL REVENUE SERVICE 

(INCLUDING TRANSFER OF FUNDS) 

SEC. 101. Not to exceed 5 percent of any 

appropriation made available in this Act to 

the Internal Revenue Service may be 

transferred to any other Internal Revenue

Service appropriation upon the advance 

[approval] notification of the Committees on 

Appropriations. 

SEC. 102. The Internal Revenue Service 

shall maintain an employee training

program, which shall include the following 

topics: taxpayers' rights, dealing courteously 

with taxpayers, cross-cultural relations, 

ethics, and the impartial application of tax 

law. 

SEC. 103. The Internal Revenue Service 

shall institute and enforce policies and

procedures that will safeguard the 

confidentiality of taxpayer information and

protect taxpayers against identity theft. 

SEC. 104. Funds made available by this or 

any other Act to the Internal Revenue

Service shall be available for improved 

facilities and increased staffing to provide

sufficient and effective 1–800 help line 

service for taxpayers. The Commissioner

shall continue to make improvements to the 

Internal Revenue Service 1–800 help line 

Department of the Treasury - Budget in Brief 118
service a priority and allocate resources 

necessary to enhance the response time to 

taxpayer communications, particularly with 

regard to victims of tax-related crimes.

[SEC. 105. None of the funds made 

available to the Internal Revenue Service by

this Act may be used to make a video unless 

the Service-Wide Video Editorial Board 

determines in advance that making the video 

is appropriate, taking into account the cost, 

topic, tone, and purpose of the video.] 

SEC. [106]105. The Internal Revenue 

Service shall issue a notice of confirmation

of any address change relating to an 

employer making employment tax 

payments, and such notice shall be sent to 

both the employer's former and new address 

and an officer or employee of the Internal 

Revenue Service shall give special 

consideration to an offer-in-compromise 

from a taxpayer who has been the victim of 

fraud by a third party payroll tax preparer.

[SEC. 107. None of the funds made 

available under this Act may be used by the

Internal Revenue Service to target citizens 

of the United States for exercising any right 

guaranteed under the First Amendment to 

the Constitution of the United States.] 

[SEC. 108. None of the funds made 

available in this Act may be used by the 

Internal Revenue Service to target groups 

for regulatory scrutiny based on their

ideological beliefs.] [SEC. 109. None of 

funds made available by this Act to the 

Internal Revenue Service shall be obligated 

or expended on conferences that do not 

adhere to the procedures, verification 

processes, documentation requirements, and 

policies issued by the Chief Financial 

Officer, Human Capital Office, and AgencyWide Shared Services as a result of the 

recommendations in the report published on 

May 31, 2013, by the Treasury Inspector 

General for Tax Administration entitled 

"Review of the August 2010 Small 

Business/Self-Employed Division's 

Conference in Anaheim, California" 

(Reference Number 2013–10–037).] 

[SEC. 110. None of the funds made 

available by this Act may be used in 

contravention of section 6103 of the Internal 

Revenue Code of 1986 (relating to 

confidentiality and disclosure of returns and 

return information).] 

SEC. 106. Section 9503(a) of title 5, United 

States Code, is amended by striking the 

clause "before September 30, 2013" and 

inserting "before September 30, 2020". SEC. 

107. Section 9503(a)(5) of title 5, United 

States Code, is amended by inserting before 

the semicolon the following: "renewable for 

an additional two years, based on a critical 

organizational need". 

ADMINISTRATIVE PROVISIONS –

DEPARTMENT OF THE TREASURY 

(INCLUDING TRANSFERS OF FUNDS) 

SEC. [111]110. Appropriations to the 

Department of the Treasury in this Act shall 

be available for uniforms or allowances 

therefor, as authorized by law (5 U.S.C. 

5901), including maintenance, repairs, and 

cleaning; purchase of insurance for official 

motor vehicles operated in foreign countries; 

purchase of motor vehicles without regard to 

the general purchase price limitations for 

vehicles purchased and used overseas for the 

current fiscal year; entering into contracts 

with the Department of State for the 

furnishing of health and medical services to 

employees and their dependents serving in 

foreign countries; and services authorized by 

5 U.S.C. 3109. 

SEC. [112]111. Not to exceed 2 percent of 

any appropriations in this title made

available under the headings "Departmental

Offices—Salaries and Expenses", "Office of 

Inspector General", "Special Inspector 

General for the Troubled Asset Relief 

Program", "Community Development 

Financial Institutions Fund", "Financial

Crimes Enforcement Network", "Bureau of 

the Fiscal Service", and "Alcohol and

Department of the Treasury - Budget in Brief 119
Tobacco Tax and Trade Bureau" may be 

transferred between such appropriations

upon the advance [approval] notification of 

the Committees on Appropriations of the 

House of Representatives and the Senate: 

Provided, That no transfer under this section 

may increase or decrease any such 

appropriation by more than 2 percent. 

SEC. [113]112. Not to exceed 2 percent of 

any appropriation made available in this Act 

to the Internal Revenue Service may be 

transferred to the Treasury Inspector

General for Tax Administration's 

appropriation upon the advance [approval] 

notification of the Committees on 

Appropriations of the House of 

Representatives and the Senate: Provided, 

That no transfer may increase or decrease 

any such appropriation by more than 2 

percent. 

SEC. [114]113. None of the funds 

appropriated in this Act or otherwise 

available to the Department of the Treasury 

or the Bureau of Engraving and Printing 

may be used to redesign the $1 Federal 

Reserve note. 

SEC. [115]114. The Secretary of the 

Treasury may transfer funds from the

"Bureau of the Fiscal Service-Salaries and 

Expenses" to the Debt Collection Fund as 

necessary to cover the costs of debt 

collection: Provided, That such amounts

shall be reimbursed to such salaries and 

expenses account from debt collections

received in the Debt Collection Fund. 

SEC. [116]115. None of the funds 

appropriated or otherwise made available by

this or any other Act may be used by the 

United States Mint to construct or operate

any museum without the [explicit approval] 

prior notification of the Committees on 

Appropriations of the House of 

Representatives and the Senate, the House

Committee on Financial Services, and the 

Senate Committee on Banking, Housing,

and Urban Affairs. 

SEC. [117]116. None of the funds 

appropriated or otherwise made available by

this or any other Act or source to the 

Department of the Treasury, the Bureau of

Engraving and Printing, and the United 

States Mint, individually or collectively,

may be used to consolidate any or all 

functions of the Bureau of Engraving and

Printing and the United States Mint without 

the [explicit approval] prior notification of 

the House Committee on Financial Services; 

the Senate Committee on Banking, Housing, 

and Urban Affairs; and the Committees on 

Appropriations of the House of 

Representatives and the Senate. 

SEC. [118]117. Funds appropriated by this 

Act, or made available by the transfer of 

funds in this Act, for the Department of the 

Treasury's intelligence or intelligence 

related activities are deemed to be 

specifically authorized by the Congress for 

purposes of section 504 of the National 

Security Act of 1947 (50 U.S.C. 414) during 

fiscal year [2015] 2016 until the enactment 

of the Intelligence Authorization Act for 

Fiscal Year [2015] 2016. 

SEC. [119]118. Not to exceed $5,000 shall 

be made available from the Bureau of 

Engraving and Printing's Industrial 

Revolving Fund for necessary official 

reception and representation expenses. 

SEC. [120]119. The Secretary of the 

Treasury shall submit a Capital Investment

Plan to the Committees on Appropriations of 

the Senate and the House of Representatives

not later than 30 days following the 

submission of the annual budget submitted 

by the President: Provided, That such 

Capital Investment Plan shall include capital 

investment spending from all accounts 

within the Department of the Treasury, 

including but not limited to the Departmentwide Systems and Capital Investment 

Programs account, Treasury Franchise Fund 

account, and the Treasury Forfeiture Fund 

account: Provided further, That such Capital 

Department of the Treasury - Budget in Brief 120
Investment Plan shall include expenditures 

occurring in previous fiscal years for each 

capital investment project that has not been 

fully completed. 

SEC. [121]120. (a) Not later than 60 days 

after the end of each quarter, the Office of 

Financial Stability and the Office of 

Financial Research shall submit reports on 

their activities to the Committees on 

Appropriations of the House of 

Representatives and the Senate, the 

Committee on Financial Services of the 

House of Representatives and the Senate 

Committee on Banking, Housing, and Urban 

Affairs. (b) The reports required under 

subsection (a) shall include—(1) the 

obligations made during the previous quarter 

by object class, office, and activity; (2) the 

estimated obligations for the remainder of 

the fiscal year by object class, office, and 

activity; (3) the number of full-time 

equivalents within each office during the 

previous quarter; (4) the estimated number 

of full-time equivalents within each office 

for the remainder of the fiscal year; and (5) 

actions taken to achieve the goals, 

objectives, and performance measures of 

each office. (c) At the request of any such 

Committees specified in subsection (a), the 

Office of Financial Stability and the Office 

of Financial Research shall make officials

available to testify on the contents of the 

reports required under subsection (a). 

SEC. [122]121. Within 45 days after the 

date of enactment of this Act, the Secretary

of the Treasury shall submit an itemized 

report to the Committees on Appropriations

of the House of Representatives and the 

Senate on the amount of total funds charged 

to each office by the Franchise Fund 

including the amount charged for each 

service provided by the Franchise Fund to 

each office, a detailed description of the 

services, a detailed explanation of how each 

charge for each service is calculated, and a 

description of the role customers have in 

governing in the Franchise Fund. 

[SEC. 123. The Secretary of the Treasury, in 

consultation with the appropriate agencies, 

departments, bureaus, and commissions that 

have expertise in terrorism and complex 

financial instruments, shall provide a report 

to the Committees on Appropriations of the 

House of Representatives and Senate, the 

Committee on Financial Services of the 

House of Representatives, and the 

Committee on Banking, Housing, and Urban 

Affairs of the Senate not later than 90 days 

after the date of enactment of this Act on 

economic warfare and financial terrorism.] 

SEC. 122. Section 5112 of title 31, United 

States Code, is amended as follows—(a) in 

subsection (a)(2) by striking "and weighs 

11.34 grams"; (b) in subsection (a)(3) by 

striking "and weighs 5.67 grams"; (c) in 

subsection (a)(4) by striking "and weighs 

2.268 grams"; (d) in subsection (a)(5) by

striking "and weighs 5 grams"; (e) in 

subsection (a)(6) by striking "except as 

provided under subsection (c) of this 

section," and "and weighs 3.11 grams"; (f) 

in subsection (b) by striking the first, 

second, third, fourth, sixth, seventh, and 

eighth sentences, and by striking "metallic,"; 

and (g) in subsection (c) by amending the 

subsection to read as follows—"The 

Secretary shall prescribe the weight and the 

composition of the dollar, half-dollar, 

quarter-dollar, dime, 5-cent, and one-cent 

coins. In prescribing the weight and the 

composition of the dollar, half-dollar, 

quarter-dollar, dime, 5-cent and one cent 

coins, the Secretary shall consider such 

factors that the Secretary considers, in the 

Secretary's sole discretion, to be 

appropriate." (h) in subsection (r)(5) by 

inserting "for circulation" after both 

instances of "minted and issued." (i) in 

subsection (t)(6)(B) by striking "90 percent 

silver and 10 percent copper" and inserting 

"no less than 90 percent silver." 

Department of the Treasury - Budget in Brief 121
SEC. 123. Section 5113(a) of title 31, United 

States Code, is amended by—(a) striking 

"and" after "quarter dollar" and inserting 

after the word "dime" ", 5-cent, and onecent"; and (b) striking the second and third 

sentences. 

SEC. 124. Section 5132(a)(2)(B)(i) of title 

31, United States Code, is amended by

striking "90 percent silver and 10 percent 

copper" and inserting "no less than 90

percent silver." 

SEC. 125. Of the funds made available by 

this Act to the Internal Revenue Service and 

Alcohol Tobacco Tax and Trade Bureau, not 

less than $9,577,232,000 shall be specified 

to pay for the costs of tax activities, 

including tax compliance to address the 

Federal tax gap, as specified for purposes of 

section 251(b)(2) of the Balanced Budget 

and Emergency Deficit Control Act of 1985, 

as amended. 

SEC. 126. AMENDMENTS TO 

COMMUNITY DEVELOPMENT 

FINANCIAL INSTITUTIONS BOND 

PROGRAM. Section 114A of the Riegle 

Community Development and Regulatory 

Improvement Act of 1994 (12 U.S.C. 4713a) 

is amended—(a) in subsection (c)(2) by 

striking ", multiplied by an amount equal to 

the outstanding principal balance of issued 

notes or bonds";(b) by amending subsection 

(d) to read as follows—"(d) RISK-SHARE 

POOL.— Each qualified issuer shall, during 

the term of a guarantee provided under the 

Program, establish a risk-share pool, 

capitalized by contributions from eligible 

community development financial institution 

participants in amounts that shall not exceed 

4 percent of the guaranteed amount

outstanding on the subject notes and bonds, 

which contribution amounts shall be 

determined by the Secretary for each 

eligible community development financial

institution participant based on the 

Secretary's assessment of the participant's

credit quality."; (c) in subsection (e)(2)(B), 

by striking "$100,000,000" and inserting 

"$25,000,000"; (d) in subsection (g) by 

amending the subsection to read as follows:

"(g) FEES.—"(1) IN GENERAL.—"(A) 

QUALIFIED ISSUER.—A qualified issuer 

that receives a guarantee issued under this 

section on a bond or note shall pay a fee to 

the Secretary, in an amount equal to 10 

basis points of the amount of the unpaid 

principal of the bond or note guaranteed. 

"(B) ELIGIBLE CDFI PARTICIPANT.—An 

eligible community development financial 

institution participant that receives a bond 

loan under this section shall pay a fee to the 

Secretary, in an amount equal to 1 percent 

of the unpaid principal of the bond or note 

guaranteed."(2) PAYMENT.—"(A) 

QUALIFIED ISSUER.—A qualified issuer 

shall pay the fee required under paragraph 

(1)(A) on an annual basis. "(B) ELIGIBLE

CDFI PARTICIPANT.—An eligible 

community development financial institution 

participant shall pay the fee required under 

paragraph (1)(B) at the time of loan 

disbursements to the participant. "(3) USE 

OF FEES.—Fees collected by the 

Secretary—"(A) under paragraph (1)(A) 

shall be used to reimburse the Department 

of the Treasury for any administrative costs 

incurred by the Department in implementing

the Program established under this section 

and shall be available until expended; and 

"(B) under paragraph (1)(B) shall be 

deposited by the Secretary into an account

that shall be available to the Secretary to 

cover credit subsidy costs and to pay

principal and interest on the guaranteed 

bonds or notes in the event of a delinquency

in repayment of loans to eligible community 

development financial institution

participants."; and (e) in subsection (k), by 

striking "2014" and inserting "2017". 

Department of the Treasury - Budget in Brief 122
Mandatory Funding Levels for the FY 2016 President’s Budget – Treasury Chapter

(dollars in millions) 

(includes legislative proposals)

Appropriations (Dollars in Millions) FY 2014 FY 2015

Enacted Estimated Estimated $ Change % Change

 Refunding Internal Revenue Collections, Interest 1,038 1,509 2,024 $515 34.1%

 Payment to Resolution Funding Corporation 2,628 2,628 2,628 $0 0.0%

 Interest on Uninvested Funds 27 24 24 $0 0.0%

 Restitution of Forgone Interest 1,244 0 0 $0 0.0%

 Federal Interest Liabilities to States 1 1 2 $1 100.0%

 Interest Paid To Credit Financing Accounts 7,855 13,889 15,038 $1,149 8.3%

 Interest on Public Debt 429,568 431,591 485,751 $54,160 12.5%

 Other Interest -40,912 -57,296 -62,391 -$5,095 8.9%

INTEREST PAYMENTS: $401,449 $392,346 $443,076 $50,730 12.9%

MANDATORY ACCOUNTS:

Biomass Energy Development -3 0 0 $0 0.0%

Build America Bond Payments, Recovery Act 3,597 3,890 4,191 $301 7.7%

Check Forgery Insurance Fund 16 16 16 $0 0.0%

Cheyenne River Sioux Tribe Terrestrial Wildlife Habitat Restoration Trust Fund 2 2 1 -$1 -50.0%

Claims, Judgments, and Relief Acts 3,674 816 816 $0 0.0%

Community Development Financial Institutions Fund Program Account 1 1 64 $63 6300.0%

Comptroller of the Currency 641 1,014 1,081 $67 6.6%

Continued Dumping and Subsidy Offset 72 72 55 -$17 -23.6%

Exchange Stabilization Fund 99 117 160 $43 36.8%

Federal Financing Bank 2,474 2,745 2,869 $124 4.5%

Federal Reserve Bank Reimbursement Fund 427 395 397 $2 0.5%

Federal Tax Lien Revolving Fund 1 1 1 $0 0.0%

Financial Agent Services 599 670 670 $0 0.0%

Financial Research Fund 100 123 133 $10 8.1%

Fiscal Service 102 102 106 $4 3.9%

Grants for Specified Energy Property in Lieu of Tax Credits, Recovery Act 3,342 2,007 1,162 -$845 -42.1%

GSE Mortgage-Backed Securities Purchase Program Account 8 178 3 -$175 -98.3%

Gulf Coast Restoration Trust Fund 322 177 12 -$165 -93.2%

Informant Payments 35 70 75 $5 7.1%

Internal Revenue Collections for Puerto Rico 303 391 344 -$47 -12.0%

IRS Miscellaneous Retained Fees 365 373 376 $3 0.8%

Office of Financial Stability 217 184 155 -$29 -15.8%

Pay for Success 0 0 300 $300 0.0%

Payment in Lieu of Tax Credits for Promise Zones 0 0 12 $12 0.0%

Payment of Government Losses in Shipment 1 1 1 $0 0.0%

Payment to Issuer of New Clean Renewable Energy Bonds 29 27 29 $2 7.4%

Payment to Issuer of Qualified Energy Conservation Bonds 32 30 32 $2 6.7%

Payment to Issuer of Qualified School Construction Bonds 621 606 660 $54 8.9%

Payment to Issuer of Qualified Zone Academy Bonds 55 49 53 $4 8.2%

Payment to the Santee Sioux Tribe Development Trust Fund 7 0 0 $0 0.0%

Payment to the Yankton Sioux Tribe Development Trust Fund 33 0 0 $0 0.0%

Payment Where Adoption Credit Exceeds Liability for Tax 58 29 0 -$29 -100.0%

Payment Where Alternative Minimum Tax Credit Exceeds Liability for Tax 67 45 20 -$25 -55.6%

Payment Where American Opportunity Credit Exceeds Liability for Tax 4,244 4,295 4,356 $61 1.4%

Payment Where Certain Tax Credits Exceed Liability for Corporate Tax 39 130 40 -$90 -69.2%

Payment Where Child Tax Credit Exceeds Liability for Tax 21,490 21,511 22,434 $923 4.3%

Payment Where COBRA Credit Exceeds Liability for Tax 1 0 0 $0 0.0%

Payment Where Earned Income Credit Exceeds Liability for Tax 60,087 60,105 60,402 $297 0.5%

Payment Where Health Coverage Tax Credit Exceeds Liability for Tax 23 1 1 $0 0.0%

Payment Where Small Business Health Insurance Tax Credit Exceeds Liability 74 66 71 $5 7.6%

Presidential Election Campaign Fund 30 48 54 $6 12.5%

Refundable Premium Tax Credit and Cost Sharing Reductions 13,068 28,564 44,782 $16,218 56.8%

Reimbursements to Federal Reserve Banks 107 127 123 -$4 -3.1%

Santee Sioux Tribe Development Trust Fund 6 0 0 $0 0.0%

Small Business Lending Fund Program Account 42 30 15 -$15 -50.0%

State Small Business Credit Initiative 0 0 1,500 $1,500 0.0%

Terrorism Insurance Program 2 87 230 $143 164.4%

Therapeutic Discovery Program Grants and Administration 1 0 0 $0 0.0%

Travel Promotion Fund 93 93 100 $7 7.5%

Treasury Forfeiture Fund -6 557 1,378 $821 147.4%

Troubled Asset Relief Program Account 90 0 0 $0 0.0%

Troubled Asset Relief Program Equity Purchase Program 0 3 0 -$3 -100.0%

Yankton Sioux Tribe Development Trust Fund 30 2 0 -$2 -100.0%

 Subtotal, MANDATORY ACCOUNTS $116,718 $129,750 $149,280 $19,530 15.1%

 Offsets:

 Treasury Mandatory Offsetting Receipts -84,535 -29,324 -24,743 $4,581 -15.6%

TOTAL, DEPARTMENT OF THE TREASURY $433,632 $492,772 $567,613 $74,841 15.2%

FY 2016

Department of the Treasury - Budget in Brief 123
Total Treasury Department Mandatory Budget

The Treasury Department Mandatory Budget 

includes $568 billion dollars in interest 

payments, mandatory accounts, and offsetting 

receipts (offsets). These accounts and the 

estimated budget authority are summarized 

below. Account totals include the effects of 

FY 2016 policy proposals. For more detailed 

descriptions of each account, please see the 

Department of the Treasury chapter in the 

FY 2016 Appendix, Budget of the U.S. 

Government at: 

http://www.whitehouse.gov/omb/budget. 

 

Interest Payments - $443 billion

These are permanent, indefinite funds for 

interest payments. This includes Interest on 

the Public Debt, which consists of all interest 

paid on Treasury securities and sold to the 

public and to Federal Government trust Funds, 

revolving funds and deposit funds. Treasury 

interest payment accounts also consist of

Refunds on Internal Revenue Collections

interest, Interest on Uninvested Funds, Interest 

paid to Credit Financing Accounts, Federal 

Interest Liabilities to the States, and Payments 

to the Resolution Funding Corporation.

Mandatory Accounts - $149 billion

These are accounts for which the Congress has 

given the Department of the Treasury 

permanent authority to expend funds. These 

include permanent authority appropriations

that fund a number of programs under 

Treasury jurisdiction such as the Terrorism 

Risk Insurance Program; the Small Business 

Lending Fund and the State Small Business 

Credit Initiative. This also includes programs 

run out of the Office of Financial Stability, 

including the Troubled Asset Relief Program

(TARP). Other accounts that fall under 

mandatory programs include all Internal 

Revenue Service refundable tax credit 

accounts, certain user fees, and informant 

payments, as well as Grants for Specified 

Energy Property, and Therapeutic Discovery 

Program Grants. The Department is also a 

custodian for a number of government 

accounts and funds listed in this section and 

further detailed in the FY 2016 Appendix, 

Budget of the U.S. Government. 

Mandatory Offsetting Receipts - $25 billion

Treasury’s mandatory accounts are offset by 

receipts which include payments to the 

Government that, by law, are credited directly 

to expenditure accounts and deducted from 

gross budget authority and outlays of the 

expenditure account. Treasury’s offsetting 

receipts also include the non-budgetary 

accounts that record all cash flows to and from 

the Government resulting from direct loans 

obligated since 2008. 

Department of the Treasury - Budget in Brief 124