Message from the Secretary of the Treasury 

Dear Member: 

On behalf of President Biden, it is my pleasure to submit the Department of the Treasury's Fiscal 

Year (FY) 2022-2026 Strategic Plan and budget request for FY 2023. The new strategic plan

underscores the Department's commitment to promoting an equitable recovery and reengaging 

our allies, positioning Treasury to play a critical role in addressing a collection of challenges 

in the 21st century. The FY 2023 President's Budget invests in the core foundations of our 

country's strength and advances key Treasury Department priorities, including promoting 

equitable economic growth and recovery, enhancing national security, protecting financial 

stability and resiliency, combating climate change, and modernizing Treasury operations. The

FY 2023 budget request aligns resources to the Department's long-term goals and objectives, as 

described in Treasury's FY 2022-2026 Strategic Plan. The plan can be found on Treasury's 

website here.

Treasury's IRS request includes $14.1 billion to enhance the taxpayer experience including

reducing the paper inventory backlog and improving telephone and in-person service; facilitating 

better oversight of high income and corporate tax returns; and accelerating the development of

digital tools to enable smarter communication with taxpayers. In addition, the Administration 

continues to support multiyear investments in IRS enforcement to increase tax compliance and 

revenues that the President has previously proposed. 

The budget provides $215 million for the Department to address cybersecurity risk through 

securing systems and establishing zero trust architecture. The budget continues the recent 

expansion of the role of Community Development Financial Institutions with the goal of

empowering the nation's most vulnerable communities, including many rural communities. 

Additionally, the Treasury request supports new mission areas and growing workload in 

Departmental Offices, the Office of Terrorism and Financial Intelligence, and the Alcohol and 

Tobacco Tax and Trade Bureau. 

The budget includes $210 million for the Financial Crimes Enforcement Network to continue 

work on a data system that tracks the ownership and control of certain companies and 

organizations and helps combat the use of complex cprporate structures to shield illegal activity. 

The FY 2023 Budget includes the information required for the Annual Performance Report. I 

have validated the accuracy, completeness, and reliability of the performance data in this report. 

Sincerely, 

Executive Summary - 1 

FY 2023 EXECUTIVE SUMMARY  

President’s Budget Discretionary Appropriation Request 

Dollars in Thousands

FY 2021 Enacted 

(post IRS transfer)2

FY 2022

Annualized CR

FY 2022

Enacted

FY 2023 

President's Budget

FY 2023 

President's Budget 

(with IRS Technical 

Adjustments)3

Management & Financial $1,554,281 $1,554,281 $1,704,947 $2,056,804 $2,056,804

Departmental Offices Salaries and Expenses $233,000 $233,000 $243,109 $293,242 $293,242 

Committee on Foreign Investment in the United States (CFIUS) $20,000 $20,000 $20,000 $20,000 $20,000 

CFIUS Fees ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)

Subtotal CFIUS Fund (non add) $20,000 $20,000 $20,000 $20,000 $20,000 

Office of Terrorism and Financial Intelligence $175,000 $175,000 $195,192 $212,059 $212,059 

Cybersecurity Enhancement Account $18,000 $18,000 $80,000 $215,000 $215,000 

Department-wide Systems and Capital Investments Program $6,118 $6,118 $6,118 $11,118 $11,118 

Office of Inspector General $41,044 $41,044 $42,275 $43,878 $43,878 

Treasury Inspector General for Tax Administration $170,250 $170,250 $174,250 $182,409 $182,409 

Special Inspector General for TARP $19,000 $19,000 $16,000 $9,000 $9,000 

Special Inspector Pandemic Recovery $0 $0 $8,000 $25,000 $25,000 

Community Development Financial Institutions Fund $270,000 $270,000 $295,000 $331,420 $331,420 

Financial Crimes Enforcement Network $126,963 $126,963 $161,000 $210,330 $210,330 

Alcohol and Tobacco Tax and Trade Bureau $124,337 $124,337 $128,067 $150,863 $150,863

Bureau of the Fiscal Service $345,569 $345,569 $355,936 $372,485 $372,485 

Digitization of Unredeemed Matured Savings Bonds Records $25,000 $25,000 $0 $0 $0 

Tax Administration1

Internal Revenue Service Total $11,919,054 $11,919,054 $12,594,054 $14,100,667 $14,100,667 

Taxpayer Services $2,587,606 $2,763,606 $2,780,606 $3,385,723 $3,684,593

Enforcement $5,004,622 $5,004,622 $5,437,622 $5,861,649 $6,272,313

Operations Support $4,104,102 $3,928,102 $4,100,826 $4,543,268 $3,833,734

Business Systems Modernization $222,724 $222,724 $275,000 $310,027 $310,027

Subtotal, Treasury Appropriations excluding TEOAF $13,473,335 $13,473,335 $14,299,001 $16,157,471 $16,157,471 

Treasury Forfeiture Fund Total ($75,000) ($75,000) ($175,000) $0 $0 

Permanent Rescission ($75,000) ($75,000) ($175,000) $0 $0 

Subtotal, Treasury Appropriation including TEOAF $13,398,335 $13,398,335 $14,124,001 $16,157,471 $16,157,471 

Treasury International Programs $1,890,319 $1,942,319 $2,056,460 $4,374,515 $4,374,515

Multilateral Development Banks $1,481,244 $1,481,244 $1,527,172 $1,906,315 $1,906,315

Food Security $32,500 $32,500 $48,000 $43,000 $43,000

IMF PRGT Grant $0 $0 $102,000 $0 $0

IMF Resilience and Sustainability Trust Subsidy Cost $0 $0 $0 $20,000 $20,000 

Environmental Trust Funds $139,575 $139,575 $274,288 $2,300,200 $2,300,200 

Office of Technical Assistance $33,000 $33,000 $38,000 $38,000 $38,000 

Debt Restructuring $297,000 $401,000 $134,000 $134,000 $134,000

Total, Treasury Appropriations excluding TEOAF $15,363,654 $15,415,654 $16,355,461 $20,531,986 $20,531,986 

Total, Treasury $15,288,654 $15,340,654 $16,180,461 $20,531,986 $20,531,986

1

FY 2021 Enacted (post IRS transfer) includes a transfer of $208 million from Enforcement to Taxpayer Services ($32 million) and Operations Support ($176 million).

3

The 2023 Budget includes changes to IRS appropriation language that allow the IRS to move certain support activities from the Operations Support appropriation to charge the full cost of 

mission activities to the Taxpayer Services and Enforcement appropriations. In the 2023 budget, the IRS proposes to move Rent and CFO expenses. These proposed changes are reflected here.

2

Excludes funding provided for COVID-19 Pandemic response.

4

In FY 2021, Congress also appropriated $120 million to Treasury's debt restructuring account for clearing Sudan's arrears with the IMF on an emergency basis. 
Executive Summary - 2 

MISSION STATEMENT 

Maintain a strong economy by promoting conditions that enable equitable and sustainable 

economic growth at home and abroad, combating threats to, and protecting the integrity of the 

financial system, and managing the U.S. Government’s finances and resources effectively. 

OVERVIEW OF REQUEST 

The Budget requests $16.2 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs. 

 Improves Taxpayer Experience and Supports a Fair and Equitable Tax System.

Last year, the IRS delivered more than $600 billion in direct economic relief to American

households and businesses through Economic Impact Payments, monthly advance child

tax credit payments, and more. Yet the agency’s funding and staffing levels have not kept

pace with its expanding scope. To ensure that taxpayers receive the highest quality

customer service and that all Americans are treated fairly by the U.S. tax system, the

Budget provides a total of $14.1 billion for the Internal Revenue Service (IRS). This

includes an increase of $798 million above FY 2021 to improve the taxpayer experience

and expand customer service outreach to underserved communities and the taxpaying

public at large. The Budget also provides $310 million for IRS Business Systems

Modernization to accelerate the development of new digital tools to enable better

communication between taxpayers and the IRS. Increased funding for the IRS will also

facilitate more effective oversight of high income and corporate tax returns. In addition to

these resources, the Administration continues to support multiyear investments in IRS tax

enforcement to increase tax compliance and revenues that the President has previously

proposed. This investment reflects decades of analysis demonstrating that program

integrity investments to enforce existing tax laws will increase revenues in a progressive

way by closing the tax gap—the difference between taxes owed and taxes paid.

 Expands Lending in Disadvantaged Communities and Increases Affordable

Housing Supply. The Budget provides $331 million for the Treasury Community

Development Financial Institutions (CDFI) Fund. To address the critical shortage of

affordable housing in communities, the Budget also proposes $5 billion in long-term

mandatory funding for CDFI financing of new construction and substantial rehabilitation

that creates net new units of affordable rental and for sale housing. CDFIs provide

historically underserved and often low-income communities access to credit, capital, and

financial support to grow businesses, increase affordable housing, and reinforce healthy

neighborhood development.

 Increases Corporate Transparency and Safeguards the Financial System. Treasury

plays a leading role in monitoring and disrupting corruption, money laundering, terrorist

financing, and the use of the financial system by malicious actors domestically and

abroad. Investment in Treasury staff and technical capabilities is critical to these efforts,

including closing financial reporting loopholes that allow illicit actors to evade scrutiny,

mask their dealings, and undermine corporate accountability. The Budget provides $210

million for the Financial Crimes Enforcement Network (FinCEN) to increase oversight of

the financial sector, strengthen corporate accountability, and provide adequate support to

law enforcement and investigative entities. In addition, the Budget provides $212 million
Executive Summary - 3 

to the Office of Terrorism and Financial Intelligence (TFI) to modernize and update the 

sanctions process consistent with the findings of the Treasury 2021 Sanctions Review. 

 Strengthens Enterprise Cybersecurity. The Budget provides $215 million to protect

and defend sensitive agency systems and information, including those designated as highvalue assets. The Budget increases centralized funding to strengthen Treasury’s overall

cybersecurity efforts and establish a Zero Trust Architecture. These investments will

protect Treasury systems from future attacks and accelerate Treasury’s response to the

SolarWinds incident and Log4j vulnerabilities.

 Restores Critical Agency Capacity. The Budget provides $293 million for Treasury’s

Departmental Offices to rebuild institutional capacity and strengthen the role of Treasury

policy offices Additional funding for Treasury’s Climate Hub will support a sustainable

economic recovery and advance climate goals both domestically and internationally,

including domestic coal transition and engagement with international financial

institutions. Increased staffing will also support assessments of climate-related financial

risk arising from private insurance coverage gaps in regions of the country particularly

vulnerable to climate change impacts. The Budget also builds institutional capacity to

expand engagement with historically underrepresented and underserved groups and

develop actionable goals to advance equity across all Treasury programs.
Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total

Departmental Offices Salaries and Expenses 672 40 712 740 41 781 869 41 910 

Terrorism and Financial Intelligence 524 35 559 561 41 602 624 41 665 

Cybersecurity Enhancement 4 4 10 10 21 21 

Office of Inspector General 189 189 190 190 190 190 

Treasury Inspector General for Tax Administration 739 2 741 760 2 762 760 2 762 

Special Inspector General for TARP 70 70 68 68 45 45 

Special Inspector General for Pandemic Recovery 35 35 38 38 66 66 

Community Development Financial Institutions Fund 67 67 82 82 89 89 

Financial Crimes Enforcement Network 269 2 271 285 3 288 420 3 423 

Alcohol and Tobacco Tax and Trade Bureau 487 14 501 508 12 520 548 12 560 

Bureau of the Fiscal Service 1,922 15 1,937 1,866 9 1,875 1,896 9 1,905 

Internal Revenue Service1 78,661 694 79,355 80,327 585 80,912 84,839 614 85,453 

Subtotal, Treasury Appropriated Level 83,639 802 84,441 85,435 693 86,128 90,367 722 91,089 Office of Financial Stability (Administrative Account) 10 10 10 10 8 8 

Small Business Lending Fund Program 2 2 2 2 2 2 

Office of Recovery Programs2 42 42 193 193 178 178 

Community Development Financial Institutions Fund, Emergency Support 3 3 12 12 12 12 

Capital Magnet Fund 4 4 6 6 9 9 Office of Financial Research 111 111 143 143 163 163 

Financial Stability Oversight Council 14 14 23 23 27 27 

Treasury Franchise Fund 2,036 2,036 2,212 2,212 2,210 2,210 

Bureau of Engraving and Printing 1,821 1,821 1,869 1,869 1,869 1,869 

United States Mint 1,566 1,566 1,705 1,705 1,705 1,705 

Office of the Comptroller of the Currency 3,491 3,491 3,555 3,555 3,555 3,555 

Terrorism Insurance Program 7 7 8 8 10 10 

IRS Private Collection Agent Program 334 334 460 460 821 821 

Subtotal, Treasury Non-Appropriated Level 527 8,914 9,441 857 9,341 10,198 1,230 9,339 10,569 Total, Treasury 84,166 9,716 93,882 86,292 10,034 96,326 91,597 10,061 101,658 

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)

1/ Amounts for the IRS include FTE funded from user fees, carryover, multi -year authority, and ARP supplemental funding.

2/ Amounts include FTE related to Transportation Services, Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation Workers, Economic Stabilization Program, Coronavirus Relief

Fund, Homeowner Assistance Fund, Emergency Rental Assistance, State Small Business Credit Initiative (SSBCI) and Emergency Capital Investment Program.

2022 Annualized CR 2023 President's Budget 2021 Actual

Executive Summary - 4
Executive Summary - 5 

DO CFIUS2 TFI Cyber DSCIP OIG TIGTA SIGTARP SIGPR3 CDFI FinCEN TTB FS IRS Total

FY 2022 Annualized CR1 $233,000 $0 $175,000 $18,000 $6,118 $41,044 $170,250 $19,000 $0 $270,000 $126,963 $124,337 $370,569 $11,919,054 $13,473,335 

SIGPR Operating Level $13,000 $13,000

Maintaining Current Levels (MCLs) $9,728 $0 $6,567 $0 $0 $1,516 $6,619 $537 $445 $0 $5,401 $4,604 $12,276 $436,363 $484,056 

Pay Annualization $1,179 $746 $211 $975 $62 $58 $462 $572 $1,593 $62,546 $68,404

Pay Raise $6,108 $4,142 $1,083 $5,018 $319 $299 $2,377 $2,942 $8,197 $321,837 $352,322

FERS Contribution Increase $0

Labor Adjustment $0

Non-Pay $2,441 $1,679 $222 $626 $156 $88 $2,562 $1,090 $2,486 $51,980 $63,330

Non-Recurring Costs (3,868) ($18,000) ($6,118) ($25,000) ($52,986)Efficiency Savings/Reinvestment $0 AnnualizationOther Adjustment/Initiative $17,365 $10,192 1,321 5,540 $7,000 $28,887 $4,493 $6,940 438,882 $520,620 

FY 2023 Base $256,225 $0 $191,759 $0 $0 $43,881 $182,409 $19,537 $20,445 $270,000 $161,251 $133,434 $364,785 $12,794,299 $14,438Adjustments to Base $23,225 $0 $16,759 ($18,000) ($6,118) $2,837 $12,159 $537 $7,445 $0 $34,288 $9,097 ($5,784) $875,245 $951,690

,025 

Program Decreases ($10,537) ($10,537)CFIUS Fund Appropriation $20,000 $20,000 CFIUS User Fees ($20,000) ($20,000)Program Increases/Reinvestments $37,017 $20,300 $215,000 $11,118 4,555 61,420 $49,079 $17,429 $7,700 $1,306,368 $1,729,986

Subtotal, Program Changes $37,017 $0 $20,300 $215,000 $11,118 $0 $0 ($10,537) $4,555 $61,420 $49,079 $17,429 $7,700 $1,306,368 $1,719,449 funded from discretionary FY 2023 President's Budget $293,242 $0 $212,059 $215,000 $11,118 $43,881 $182,409 $9,000 $25,000 $331,420 $210,330 $150,863 $372,485 $14,100,667 $16,157,474 

3/ In FY 2022 SIGPR did not r2/ CFIUS Fund enacted levels are net appropriations including user fees.1/ Excludes funding provided for COVID-19 Pandemic response. 

eceive funds under an annualized CR. The funds represented are the bureau's operating level.

(Dollars in Thousands)

Summary of FY 2023 Increases and Decreases
Executive Summary - 6 

FY 2023 President's Budget by Strategic Goal Dollars in Thousands

Treasury Goal/Objective

Promote Equitable 

Economic Growth

and Recovery

Enhance 

National 

Security 

Protect 

Financial Stability 

and Resiliency 

Combat 

Climate Change

Modernize 

Treasury 

Operations 

Other Critical 

Priorities1 Total

Management & Financial $701,234 $671,936 $173,361 $98,935 $370,795 $40,543 $2,056,804

Departmental Offices Salaries and Expenses $104,824 $51,240 $41,688 $36,986 $58,504 $293,242 

Committee on Foreign Investment in the United States Fund $20,000 $20,000 

CFIUS Fees ($20,000) ($20,000)

Office of Terrorism and Financial Intelligence $175,293 $23,536 $4,329 $8,901 $212,059 

Cybersecurity Enhancement Account $215,000 $215,000 

Department-wide Systems and Capital Investments Program $7,141 $3,977 $11,118

Office of Inspector General2 $1,711 $439 $1,185 $40,543 $43,878

Treasury Inspector General for Tax Administration $138,631 $9,120 $1,824 $32,834 $182,409 

Special Inspector General for TARP $2,250 $1,800 $4,500 $450 $9,000 

Special Inspector General for Pandemic Recovery $23,750 $500 $750 $25,000 

Community Development Financial Institutions Fund $296,289 $35,131 $331,420 

Financial Crimes Enforcement Network $161,954 $10,517 $21,033 $16,826 $210,330 

Alcohol and Tobacco Tax and Trade Bureau $131,764 $3,669 $608 $14,821 $150,863

Bureau of the Fiscal Service $3,725 $52,148 $93,121 $26,074 $197,417 $372,485 

Tax Administration3 $13,794,596 $56,732 $249,339 $14,100,667

IRS Taxpayer Services $3,347,689 $38,034 $3,385,723 

IRS Enforcement $5,761,666 $45,652 $54,331 $5,861,649 

IRS Operations Support $4,375,214 $11,080 $156,974 $4,543,268 

Business Systems Modernization $310,027 $310,027 

Total, Treasury $14,495,830 $728,668 $173,361 $98,935 $620,134 $40,543 $16,157,471

Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $33,612 $33,612 

Terrorism Risk Insurance (Administrative) $851 $2,268 $1,985 $567 $5,670 

Financial Stability Oversight Council $10,568 $1,865 $12,433

Office of Financial Research $1,762 $59,916 $26,434 $88,112 

Bureau of Engraving and Printing $1,878,069 $8,148 $150,734 $2,036,951

United States Mint4 $16,114 $402,859 $69,829 $48,343 $2,860,000 $3,397,145

Office of the Comptroller of the Currency $122,516 $943,370 $61,258 $98,012 $1,225,156 

Federal Reserve Bank $54,800 $356,200 $34,250 $239,750 $685,000

Reimbursable to the Federal Reserve Banks $15,040 $97,760 $9,400 $65,800 $188,000 

Financial Agent Services $80,960 $546,480 $50,600 $333,960 $1,012,000 

Total, Non-Appropriated Level $34,463 $293,460 $4,297,206 $235,349 $963,601 $2,860,000 $8,684,079

Grand Total $14,530,292 $1,022,128 $4,470,568 $334,284 $1,583,734 $2,900,543 $24,841,550 

1 Other critical priorities include activities that are operationally focused and as such are not currently covered by specific strategies in the FY 2022-2026 Strategic Plan. 

3 This table does not include the proposed technical adjustment that would move certain support activities from Operation Support and charge the full cost of certain mission activities to the Taxpayer Services and 

Enforcement appropriations. The adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer Services appropriation by $298.9 million 

and the Enforcement appropriation by $410.7 million.

2 The amounts in Other Critical Priorities for the Office of Inspector General are related to promoting the integrity, efficiency, and effectiveness in programs and operations within the Treasury Department and across 

OIG jurisdictional boundaries.

4 The amounts in Other Critical Priorities for the United States Mint represent the cost of metal.
Executive Summary - 7 

ORGANIZATION

Treasury is organized into the Departmental Offices, seven bureaus, and four offices of Inspector 

General. The Departmental Offices are primarily responsible for headquarters operations and 

policy formulation, while the bureaus are the operating units of the organization.
Executive Summary - 8 

DEPARTMENTAL OFFICES

Domestic Finance works to preserve confidence in the U.S. 

Treasury securities market, strengthen financial institutions 

and markets, and promote access to credit, in service to longterm economic strength and stability.

Terrorism and Financial Intelligence (TFI) uses unique 

policy, intelligence, enforcement, and regulatory tools and 

authorities to disrupt and disable terrorists, criminals, and 

other national security threats while also safeguarding the 

financial system against abuse by illicit actors.

International Affairs protects economic prosperity and 

national security by working to foster a most favorable 

external environment for sustained jobs and economic 

growth.

Tax Policy develops and implements tax policies and 

programs, reviews regulations and rulings to administer the 

Internal Revenue Code, provides revenue estimates for 

proposals, and receipt estimates for the President’s Budget.

Economic Policy reports on economic developments and 

assists in the determination of appropriate economic policies. 

It also reviews and analyzes domestic economic issues and 

financial market developments.

The Treasurer of the United States serves as a principal 

advisor to the Secretary, including sometimes advising the 

Secretary on coinage matters and liaising with the Federal 

Reserve.

The Office of Management and Chief Financial Officer

manages the Department’s financial resources and oversees 

Treasury-wide programs, including human capital, 

organizational performance, enterprise risk management, 

information technology, acquisition, diversity issues, and 

data.

The Office of Recovery Programs is principally focused 

on efficiently establishing and administering Treasury’s 

programs to support an equitable and swift recovery from 

the economic challenges precipitated by the COVID-19 

pandemic. 

 

Other offices within Departmental Offices include 

General Counsel, Legislative Affairs, and Public Affairs.
Executive Summary - 9 

INSPECTORS GENERAL

 

Four Inspectors General—the Office of Inspector General 

(OIG), the Treasury Inspector General for Tax 

Administration (TIGTA), the Special Inspector General for 

the Troubled Asset Relief Program (SIGTARP), and the 

Special Inspector General for Pandemic Recovery—provide 

independent audits, investigations, and oversight of Treasury 

and our programs. 

BUREAUS 

The Alcohol and Tobacco Tax and Trade Bureau (TTB)

collects federal excise taxes on alcohol, tobacco, firearms, and 

ammunition, while enforcing and administering laws covering 

the production, use, and distribution of alcohol and tobacco 

products. 

The Bureau of Engraving and Printing (BEP) develops and 

produces U.S. currency notes, as well as secure documents for 

government use. 

The Financial Crimes Enforcement Network (FinCEN)

safeguards the financial system from illicit use, combats 

money laundering and its related crimes—including 

terrorism—and promotes national security through the 

strategic use of financial authorities and the collection, 

analysis, and dissemination of financial intelligence.

The Bureau of the Fiscal Service (Fiscal Service) promotes 

financial integrity and operational efficiency by operating the 

U.S. government’s collections and deposit systems and 

providing central payment services to the American public on 

behalf of federal agencies. It also manages the collection of 

delinquent debt, borrows funds needed to operate the U.S. 

government through the sale of marketable and specialpurpose U.S. Treasury securities, and accounts for the resulting 

debt. Additionally, it delivers administrative shared services to 

federal agencies and conducts government-wide accounting 

and reporting. 

The Internal Revenue Service (IRS) determines, assesses, 

and collects U.S. tax revenue and helps taxpayers understand 

their tax responsibilities, while aiming to prevent tax-related 

fraud.

The United States Mint (U.S. Mint) designs, mints, and 

issues U.S. circulating coins, as well as numismatic and 

bullion coins; in addition to striking Congressional gold 

medals and other medals of national significance. It maintains 

physical custody and protection of most of the nation’s gold 

and silver assets.

The Office of the Comptroller of the Currency (OCC)

charters, regulates, and supervises national banks and federal 

savings associations, as well as federal branches and agencies 

of foreign banks, to ensure that they operate in a safe and 

sound manner, provide fair access to financial services, treat 

customers fairly, and comply with applicable laws and 

regulations.
Executive Summary - 10 

TREASURY STRATEGIC MANAGEMENT

FRAMEWORK

The Government Performance and Results Act (GPRA) and 

the GPRA Modernization Act of 2010 require agencies to 

identify goals, report progress against targets, and conduct 

data-driven reviews. These practices allow stakeholders 

within and outside the organization to assess the 

organization’s health and impact, while promoting effective 

decision-making, and improved strategy execution and 

resource allocations. In this spirit, we developed a strategic 

framework using best-in-class organizational performance 

practices to help achieve our strategic goals and objectives. 

ORGANIZATIONAL PERFORMANCE REVIEW 

CYCLE

Our organizational performance reviews provide a regular 

forum for open dialogue and coordination between the 

bureaus and the Departmental Offices’ management and 

leadership. We bring together different perspectives to set 

and align priorities, identify and solve problems, review 

agency performance, and drive results. The performance 

review cycle integrates statutory requirements to conduct 

quarterly reviews of agency results toward goals, with an 

annual exercise to validate our supporting objectives, 

executed through our Strategic Objective Annual Review 

(SOAR) process. 

We also integrate portfolio reviews of programs within our 

performance review cycle activities, as required by the 

Program Management Improvement Accountability Act

(PMIAA). The SOAR process includes analyzing crosscutting performance and identifying a set of strategic 

objectives as priority focus areas. In 2019, the Foundation for 

Evidence-Based Policymaking Act was signed into law to 

further advance the U.S. government’s evidence-building 

functions. In this fiscal year, we approached the 

implementation of the evidence-building requirements by 

leveraging our strategic management framework, including 

the SOAR, to initiate an agency learning agenda. 

At designated points throughout the fiscal year, we set annual 

priorities, evaluate progress against goals and objectives, 

discuss new strategies to improve program outcomes, and 

align our available funding to maximize results for the 

agency. Treasury also identifies Agency Priority Goals 

(APGs), which are priorities that the Department wants to 

accomplish within two years. The Department publicly 

reports APG progress quarterly on Performance.gov and 

tracks progress during quarterly reviews.  We describe our 

process and framework for managing to our strategic 

objectives and performance outcomes in the Treasury Annual 

Organizational Performance Review Cycle Table on the 

following page. 
Executive Summary - 11 

TREASURY ANNUAL ORGANIZATIONAL PERFORMANCE REVIEW CYCLE Session

Fall 

(October – November)

Winter

(February – March)

Spring

(April – May)

Summer

(June – July)

Focus

Bureau Performance & 

Priorities 

Strategic Objective 

Annual Review (SOAR) 

Cross-cutting 

Risks/Challenges; Critical 

Programs 

Budget 

Chair

Assistant Secretary for 

Management/Performance 

Improvement Officer 

(ASM/PIO); Strategic Goal 

Leads 

Strategic Goal Leads ASM/PIO ASM/PIO and Budget 

Officer, Strategic Goal Leads 

Goals/Outcomes

 Review prior year’s 

performance at the 

bureau/office level

 Recognize successes

 Set priorities for year 

ahead

 Identify shortfalls/risks; 

accountability; assess 

organizational health

 Evaluate progress 

towards strategic 

goals and objectives 

(incl. progress of 

critical programs and 

projects)

 Identify/validate 

Treasury priorities or 

strategic shifts

 Outline potential 

topics for OMB 

annual review 

 Issue-based sessions: 

deep dove on crosscutting issues 

identified in the 

SOAR, identify nearterm improvement 

strategies 

 Program-based 

sessions: check in on 

critical 

programs/projects 

identified in the SOAR 

that need Treasury 

leadership attention. 

 Align funding to 

priorities, performance 

impacts, and risk 

mitigation

 Strengthen IT 

acquisition, budgeting, 

and accountability

 Identify efficiencies and 

redundancies in request 

 Check in on health and 

update list of critical 

programs/projects based 

on budget requests 

FY 2022–2023 APG: Improving the Payment Experience

Create a modern, seamless, inclusive, and secure Federal payment experience for the public that meets customer needs while 

reducing costs, expanding financial inclusion, and improving climate sustainability of Treasury’s operations. By September 

30,2023, Treasury will: 

 Increase the electronic payment rate for Treasury-disbursed payments to 96.56% by the end of FY 2023, compared 

with 96.18% in FY 2021; and 

o Achieving this increased electronic payment rate would lead to an estimated reduction of 4.8 million checks. 

 Increase the electronic payment rate for IRS individual tax refunds to 81.00% by the end of FY 2023, compared with 

80.34% in FY 2021. 

FY 2022–2023 APG: Increasing Treasury’s Sustainability

Model best practices in sustainable operations, supporting the Department’s key role in the whole-of-government effort to 

manage climate-related risks and enable the transition to a net-zero economy. By September 30, 2023, the Department of the 

Treasury will: 

 Transition Treasury’s Fleet to Electric Vehicles (EV): Convert 37% of the vehicles to EVs for those vehicles with lease 

terms needing renewal; and 

 Implement a Climate Literacy Program: Deliver educational products to 100% of Treasury’s target audience of 

executives and key staff who are needed to support and sustain Treasury’s climate change and sustainability priority 

initiatives (e.g., facility and fleet operations, budget and finance, legal counsel, and procurement). 

FY 2022–2023 APG: Promote Transparency in the Financial System

Establish a robust regulatory framework to ensure timely information on the highest priority threats to combat the misuse of 

companies by criminals. By September 30, 2023, the Department of the Treasury will strengthen and adapt the Anti-Money 

Laundering (AML) and Combating Financing of Terrorism (CFT) framework by publishing and updating regulatory 

requirements and creating a solution that will securely collect, store, and manage beneficial ownership information for use by law 

enforcement and other authorized partners. 
Executive Summary - 12 

FY 2022 -2026 TREASURY’S STRATEGIC PLAN
Executive Summary - 13 

PERFORMANCE OVERVIEW 

We carry great responsibility for fostering prosperity and security for the American people, play a critical role in U.S. and global economies, 

and continue to make progress in our mission to meet the needs of the nation. The FY 2022 – 2026 Treasury Strategic Plan will chart a course 

to guide our responsibilities to taxpayers. The following performance overview reflects the accomplishments and challenges in achieving the 

goals of equitable economic growth and recovery, national security, financial stability and resiliency, combating climate change, and 

modernizing Treasury operations in service to our country. 

Equitable Economic Growth and Recovery 

The COVID-19 pandemic has exacerbated the pre-existing inequities 

in America’s economic system and created a slowdown in global 

trade. We must address systemic issues in the economic system and 

strengthen resiliency for all Americans while taking the lead, 

internationally, to partner with foreign countries to advance ambitious 

policies for an equitable global recovery and sustainable growth. 

As part of our implementation of the American Rescue Plan Act of 

2021 (ARP), we supported the expansion of the Child Tax Credit, 

which will substantially reduce child poverty by supplementing the 

earnings of families receiving the tax credit. 

Finally, in FY 2021, we submitted a 200-day Progress Report on 

Treasury’s Equity Assessment per Executive Order 13985, Advancing 

Racial Equity and Support for Underserved Communities, which 

assessed our ability to develop policies and programs that deliver 

resources and benefits equitably to all. 

OFFICE OF RECOVERY PROGRAMS STANDUP/AMERICAN RESCUE PLAN IMPLEMENTATION

The current public health crisis and resulting economic crisis have 

devastated the health and economic well-being of millions of 

Americans. From big cities to small towns, Americans—particularly 

people of color, immigrants, and low-wage workers—are facing a 

deep economic crisis. The ARP, one of the most progressive pieces of 

legislation in history, is delivering immediate and direct relief to 

families and workers impacted by the COVID-19 crisis and is building 

a bridge to an equitable economic recovery. 

The Office of Recovery Programs, led by the Chief Recovery 

Officer, reports to Treasury’s Deputy Secretary, and is 

principally focused on efficiently establishing and administering 

our programs to support an equitable and swift recovery from 

the economic challenges precipitated by the COVID-19 

pandemic. In FY 2021, the Office of Recovery Programs 

focused on implementing an effective, cohesive model for 

recovery programs to help get relief distributed quickly and into 

the hands of those who need it the most, while ensuring public 

trust. 

Source: Adobe Stock

Office of Recovery Programs Established 

In FY 2021, we established the Office of Recovery 

Programs to lead our implementation of economic 

relief and recovery programs, including nearly $420 

billion in programs from the American Rescue Plan 

Act of 2021 (ARP). The Office of Recovery 

Programs also oversees programs authorized through 

the Coronavirus Aid, Relief, and Economic Security 

Act (CARES Act), and the Consolidated 

Appropriations Act, 2021 (CAA). 
   

Executive Summary - 14

Treasury is responsible for managing over $1 trillion in ARP 

programs and tax credits and have already distributed approximately 

$700 billion. For example, Treasury has sent over $240 billion in 

fiscal support to state, territorial, local, and Tribal governments that 

is being used to fight the pandemic and accelerate local economic 

recovery. Over 99 percent of currently available State and Local 

Fiscal Recovery Funds are in the hands of governments across the 

country, which are using these resources not only to meet immediate 

pandemic response needs but to make long-term investments in the 

recovery, equity, and prosperity of their local communities. 

EQUITY ASSESSMENT

The COVID-19 pandemic has exposed long-standing disparities in 

our laws, public policies, and institutions, which disproportionately 

affect people of color and members of underserved communities. 

As we implement the ARP, we are working to ensure the economic 

recovery includes those who have been historically underserved and 

affected by persistent poverty long before the pandemic. We view 

this equity assessment as an opportunity to identify and remove any 

barriers that would prevent any member of the American public 

from having equal access to our programs and services and 

procurement and contracting opportunities, as well as the nation’s 

financial systems. 

We completed the following activities per Executive Order 13985, 

Advancing Racial Equity and Support for Underserved 

Communities Through the Federal Government: 

 Issued a joint video with the Secretary and Deputy Secretary to 

announce the kickoff of the Equity Assessment Process and its 

intended goals. 

 Provided recommendations on FY 2023 funding levels for 

program offices responsible for advancing diversity, equity, 

inclusion, and accessibility as part of the internal Departmental 

budget process. 

 Met with members of the Department of Labor Equity Review 

Team to learn more about each agency’s equity assessment effort. 

 Published a blog post to mark the six-month anniversary of the 

ARP and highlight the central role of equity in programmatic 

implementation. 

 Appointed a Counselor to the Secretary for Racial Equity. 

 Announced the creation of a racial equity advisory committee to 

more regularly solicit opinions and guidance from external 

racial equity subject matter experts in our ongoing efforts to 

advance equity. 

 Completed the required 60-Day, 90-Day, and 200-Day Progress 

Reports. 

Our Equity Assessment Team worked with the IRS, Office of Tax 

Policy, Fiscal Service and ORP to develop ambitious, yet 

manageable, proposals for the equity assessment process. We also 

worked to identify actionable opportunities to: (1) identify and 

remove any barriers that members of underserved communities may 

have to our contracting and procurement opportunities; and (2) 

improve access to data collection, use, and sharing, including data 

disaggregation, which improves the ability to deliver services more 

equitably, and better understand how our programmatic and policy 

decisions impact underserved communities. 

ENHANCE CHILD TAX CREDIT

Since President Biden signed the ARP in March 2021, the White 

House has led a cross-agency effort to ensure the expanded Child 

Tax Credit reaches the families who need it most. The ARP’s 

expansion of the Child Tax Credit will substantially reduce child 

poverty by supplementing the earnings of families receiving the 

tax credit. 

Within months, the IRS launched a Non-filer Sign-up 

Tool and published step-by-step guides in multiple languages. 

Since then, the White House, Treasury, and the IRS have worked 

in collaboration with advocacy groups and public figures to direct 

consumers to the tool. The IRS’s efforts also included public 

awareness programs, including free tax preparation days in more 

than 30 cities where data showed large pockets of children in 

households that do not normally file a tax return.
   

Executive Summary - 15

The ARP’s advance payment of the expanded Child Tax Credit (AdvCTC) 

presented unique challenges across the IRS, including resource competition 

with the information technology experts needed to deliver the third round of 

Economic Impact Payments in parallel with planning and implementing the 

AdvCTC. Implementing the new legislation also challenged the IRS to 

develop systems, processes, and procedures quickly. This included developing 

and deploying new web tools, implementing system programming changes, 

educating IRS employees on new processes and procedures, creating new 

taxpayer letters and notices, and communicating extensively to taxpayers to 

ensure they had necessary information. 

The IRS successfully met these challenges in just over four months following 

enactment of the ARP. Beginning in July 2021, eligible families received an 

advance payment of up to $300 per month for each child under age 6 and up to 

$250 per month for each child ages 6 to 17. As of December 15, 2021, 

Treasury and the IRS have delivered almost $93 billion to families.

Source: Adobe Stock

Expanded Child Tax Credit 

Experts have projected the ARP has the 

potential to lift more than five million children 

out of poverty in 2021, cutting child poverty by 

more than half. The expanded Child Tax 

Credit is the largest single contributor to this 

historic reduction. Prior to the expansion by 

the ARP, lower-income families often received 

a smaller Child Tax Credit than families with 

higher earnings because the tax credit was only 

partially refundable.
   

Executive Summary - 16

National Security 

An expanding array of transnational threats, continued instability 

in weak states, and the malicious use of critical and emerging 

technologies by adversaries, present security concerns for the U.S. 

that may impact the integrity of the U.S. financial system, which is 

foundational to our national security. As foreign and domestic 

actors threaten American economic and national security, we must 

apply our tools and strengthen bi-lateral and multi-lateral 

partnerships to defeat these threats and take a leading role in 

protecting the U.S. and international financial systems from abuse. 

In FY 2021, we leveraged our tools and authorities to combat 

malicious actors, strengthened the Anti-Money Laundering and 

Combating the Financing of Terrorism (AML/CFT) regime, 

advanced reform efforts, ensured foreign investments in the U.S. 

did not give rise to unresolved national security risks, and 

enhanced collaboration with allies and partners on investment 

screening best practices. 

SANCTIONS REVIEW

Sanctions are a key tool for the U.S. government to address critical 

national security and foreign policy threats. For this tool to be 

effective and fit to purpose for years to come, the authorities and 

processes we use to deploy sanctions should be continuously 

reviewed and updated to address emerging challenges. Further, we 

must effectively leverage our sanctions workforce across the 

Department, addressing recruitment and retention of high-skilled 

talent to meet the data and analytical needs required to support the 

growing array of work in the sanctions arena. If we do not commit 

to using the most updated analytic and collaborative technologies, 

we may not be able to stay abreast of, or effectively respond to, 

increasing stakeholder demands. This includes the ability to 

analyze complex financial and Bank Secrecy Act (BSA) data to 

identify emerging threats, identify new trends, and support national 

security events. 

To overcome these challenges, we completed a comprehensive 

sanctions review and provided recommendations designed to 

promote a warranted, strategic, and judicious use of sanctions. Our 

review found that while sanctions remain an essential and effective 

policy tool, they also face new challenges, including rising risks 

from new payments systems, the growing use of digital assets, and 

cybercriminals, as well as situations where careful calibration can 

help limit the impact of sanctions on the flow of legitimate 

humanitarian aid to those in need.

We will also modernize and strengthen internal Treasury, U.S. 

government, and international coordination and engagement on 

sanctions to enhance effectiveness. 

TARGETED FINANCIAL MEASURES

Since the beginning of FY 2020 and continuing through FY 2021, 

we have established four new and six modified sanctions 

programs. This included the use of tools and authorities to deter 

Iran’s nuclear and ballistic missile program, hindering Iran’s 

support of global terrorism, and offsetting efforts to destabilize the 

Middle East, Burma, Hong Kong, Venezuela, and others.

On Iran, we targeted terrorist financing and money laundering 

activity and imposed a series of sanctions designed to disrupt 

Iran’s nuclear program and its ability to acquire and sell 

conventional arms. We imposed sanctions on the Iranian 

ambassador to Iraq responsible for coordinating the activity of 

Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGC- QF) 

throughout Iraq. Additionally, we imposed sanctions on a huge 

network of 150 targets, in addition to metals and petrochemical 

companies. Through the Terrorist Financing Targeting Center’s 

partnership with seven Gulf nations, joint sanctions against the 

Islamic State of Iraq and Syria, Hizballah, and Iran’s IRGC-QF 

were successfully taken.
   

Executive Summary - 17

Additionally, we applied our tools and authorities against 

Venezuela’s Maduro regime to deny the regime revenue and 

sanctioned members of the regime for human rights violations and 

corruption. We used sanctions to place pressure on North Korea, 

including designations focused on North Korea’s continued supply 

of unlawful labor to overseas markets, which is used to generate 

income in contravention of United Nations sanctions. We 

countered Russian illicit financing by working with foreign 

partners and through strategic use of sanctions authorities.

On China, TFI realigned analytic resources to anticipate and 

analyze more thoroughly the security threats China poses and took 

action to impose costs on China for human rights abuses in 

Xinjiang and for undermining Hong Kong’s autonomy. On 

Burma, we implemented a new sanctions regime in response to the 

Burmese military’s coup against the democratically elected civilian 

government of Burma. In coordination with the issuance of a new 

Executive Order 14014, Blocking Property with Respect to the 

Situation in Burma, we designated, pursuant to that Executive 

Order, approximately 10 individuals and three entities connected to 

the military apparatus responsible for the coup. We took the 

actions quickly and at the direction of the White House, in 

response to violence and suppression of peaceful protests over the 

weekend of February 21, 2021.

FINANCIAL SYSTEM TRANSPARENCY

To protect the integrity of markets and of the global financial 

framework, we have taken steps to increase transparency in the 

domestic and international systems by strengthening the U.S. 

AML/CFT regulatory framework and addressing the proliferation 

of virtual currency and new technologies that create potential 

vulnerabilities.

Permitting illicit actors to benefit from the stability and security of 

the U.S. financial system weakens financial transparency, distorts 

markets, and hurts ordinary Americans. Financial technology is 

growing and transforming the landscape of the financial industry, 

which is interconnected at a global level. Rapid evolution and 

adoption of new technologies can yield economic and social 

benefits and also present new potential for illicit financial activity. 

U.S. financial institutions’ resources may not be leveraged to their 

fullest potential. Treasury seeks to enhance financial institutions’ 

ability to enhance the effectiveness of their BSA/AML programs 

and report robust, contextual, and timely information on the 

highest priority threats to support investigations. 

The Anti-Money Laundering Act of 2020 will strengthen and adapt 

the U.S. AML/CFT regulatory framework to collect beneficial 

ownership information and address emerging challenges and 

evolving regulatory requirements. We will also engage domestic 

and international partners to develop and implement financial 

transparency standards, enhance anticorruption efforts, and expand 

financial access and inclusion. In addition to the national 

AML/CFT priorities we published to inform risk-based 

supervision, we will publish a national illicit finance strategy to 

address priority threats. 

STRENGTHEN CYBERSECURITY

Technology is a core facet of the financial sector’s functioning and 

faces an increasingly diverse and sophisticated array of cyber 

threats, including from trusted third parties. As the financial 

industry and federal government further rely on information and 

operational technology and computer networks, which can be 

vulnerable throughout the entire IT supply chain, we must address 

our own cybersecurity vulnerabilities and demonstrate leadership, 

ensure operational resiliency, and provide support to external 

stakeholders. This will help to ensure that the U.S and global 

financial system and Treasury’s infrastructure are hardened against 

cyber incidents and our full range of tools is deployed to counter 

malicious cyber actions. 

Treasury and the financial services sector face increasing attacks 

from cyber criminals and state actors attempting to disrupt 

operations or steal data from sensitive systems. The tactics, 

techniques, and procedures perpetrators of these incidents use are 

constantly evolving. There is a risk that a successful cyberattack 

may seriously affect our operations or the operations of the 

financial sector more broadly. A breach of or inability of any of 

our high-value asset systems to execute core functions within 

established performance metrics could have nationwide and 

international ramifications. 
   

Executive Summary - 18

To overcome these challenges, we are engaging domestic and 

international partners to enhance sector cyber hygiene. This 

includes efforts to improve resilience, continuity, and emergency 

preparedness, while also identifying and addressing technology 

vulnerabilities,

including the use of third-party service providers. We are also 

protecting financial infrastructure by leveraging existing 

authorities to detect, deter, and disrupt malicious cyber activities. 

Finally, we are upgrading, securing, and scaling technology 

resources to effectively support our current role in national security 

matters, and in accordance with the Presidential Executive Order 

14028, Improving the Nation’s Cyber Security. 
   

Executive Summary - 19

Financial Stability 

The COVID-19 pandemic exposed existing vulnerabilities in the 

financial system, especially in the nonbank financial sector and 

created stress to global and domestic economies. To improve 

financial resiliency ahead of the next crisis, and reduce associated 

costs to the economy, the financial sector must address 

vulnerabilities in financial markets through responsible regulatory 

reforms. These reforms include improved liquidity risk 

management and adjustments to the financial market infrastructure 

in light of changes in technology and investor demand. 

RESILIENT MARKETS

Treasury and municipal securities markets have evolved 

significantly as the industry, regulatory environment, trading 

practices and investor demands have changed. Some elements 

have not kept pace, raising risks that these critical markets are 

vulnerable to stresses, which could have significant consequences 

for economic growth and financial stability. We can help mitigate 

vulnerabilities by supporting developments that improve the 

resilience of these markets to stresses and reducing government 

borrowing costs over time. With federal, state, and local 

government debt now exceeding $32 trillion, ensuring that these 

markets remain resilient and able to support all other priorities 

outlined in this plan, including equitable economic growth and 

addressing climate change, is a critical component of sound fiscal 

policy.

To overcome these challenges, we will evaluate structural changes 

in the Treasury securities markets, and put forward 

recommendations to make the markets more resilient to future 

disruptions, and promote the central role of U.S. Treasury 

securities in global finance. We will also evaluate structural 

changes in the municipal securities market and make 

recommendations to promote greater efficiency, liquidity, and 

transparency.

FINANCIAL INNOVATION

Treasury promotes a financial system that delivers inclusive access 

to financial services that effectively meet the needs of market 

participants, while maintaining financial stability and market 

integrity. Emerging financial technologies have accelerated 

aspirations for a more equitable and inclusive financial system. 

Many innovations in digital finance (e.g., digital assets) remain 

nascent, with both risks and benefits that have yet to be assessed. 

Other innovations, such as mobile money, digital lending, and 

consumer data analytics, are relatively more mature and have 

already demonstrated the potential to improve the delivery of 

payments and other financial services for many Americans. But 

more can and should be done to reach those whose financial needs 

remain unmet by the financial services sector. Expanding access 

to digital financial services (payments, credit, saving, insurance) is 

a key component to increasing financial inclusion, domestically 

and internationally. 

We encourage the responsible use of innovative financial 

technology, both across the financial sector and in our own 

programs, to deliver affordable and secure financial services that 

better serve consumers and small businesses. Keeping pace with 

private sector developments in digital finance could help ensure an 

informed approach across the federal government to facilitating a 

stable and accessible financial system. Failing to do so could 

result in financial regulation becoming unresponsive to the needs 

and expectations of the public. 

Similarly, we are improving our own financial activities by 

leveraging private sector technology to better execute federal 

financial management services, secure U.S. currency from 

counterfeiting, and deliver payments to the public. Our 

commitment to transition to electronic payments from physical 

payments (e.g., checks) has the potential to advance both our 

financial inclusion and net-zero carbon goals 
   

Executive Summary - 20

Combating Climate Change 

The U.S. and the world face a climate crisis and a narrowing 

window to act to avoid the worst impacts of climate change. At 

the same time, the transition to a low-carbon economy presents a 

historic economic opportunity for the U.S. and global economy. 

The U.S. federal government must work alongside our domestic 

and international partners to respond ambitiously to tackle the 

challenges of climate change, adapt to an already changing 

climate, mitigate the risks, and position the global economy for 

clean and sustainable growth. 

In April 2020, we created a new Climate Hub and appointed a 

Climate Counselor to coordinate and lead efforts to address climate 

change. The Climate Hub will focus on the broad range of our 

climate-related policy work connected to 1) climate transition 

finance; 2) climate-related economic and tax policy; and 3) 

climate-related financial risks.

In July 2021, we published the first edition of Climate Action Plan 

as a response to Executive Order 14008, Tackling the Climate 

Crisis at Home and Abroad. It focuses on our efforts on a wide 

range of international and domestic policy fronts, as well as our 

management of facilities, operations, procurements, and financial 

investments to bolster adaptation and increase resilience to the 

impacts of climate change. 

Pursuant to Executive Order 14030, Climate-Related Financial 

Risk, we are also supporting the development of a governmentwide Climate-Related Financial Risk Strategy and engaging with 

Financial Stability Oversight Council member agencies to advance 

efforts to provide financial regulators, financial institutions, and 

investors with the best information and data to measure climaterelated financial risks. The Federal Insurance Office is also 

assessing climate-related issues in the supervision of insurers, as 

well as further assessing the potential for major disruptions of 

private insurance coverage in U.S. markets that are particularly 

vulnerable to climate change impacts. 

LEADING GLOBAL COMMITMENTS/ACTION

Climate change is an economic, financial, humanitarian, and 

national security issue. Failure to take swift steps to address its 

effects will be devastating to the global community. Executive 

Order 14008, Tackling the Climate Crisis at Home and Abroad, 

calls for international engagement to go hand-in-hand with 

domestic action to address climate change. In addition, the EO 

called for the development of the first-of-its kind U.S. International 

Climate Finance Plan, which was released in April 2021 and 

outlines a series of actions we will take to respond to the Executive 

Order. Recognizing the potential future effects of climate change, 

an already changing climate, and the need to act swiftly, we are reengaging with international partners, both bilaterally and 

multilaterally, to act and put the world on a sustainable climate 

pathway. 

We will also promote global efforts to phase out public finance of 

carbon-intensive fossil fuels by scaling back support for 

international investments in carbon-intensive projects and setting 

an example by eliminating domestic subsidies. In August 2021, 

we issued Fossil Fuel Energy Guidance for Multilateral 

Development Banks (MDBs), which we advocate for MDB 

investments prioritizing clean energy, innovation, and energy 

Source: Adobe Stock

Climate Action 

In 2021, we joined the Coalition of Finance

Ministers for Climate Action, assumed co‐

chairmanship of the G20 Sustainable Finance

Working Group, and established bilateral

sustainable finance framework discussions with

South Africa, Indonesia, and India.
   

Executive Summary - 21

efficiency. This will help achieve a clean and sustainable future 

consistent with the development goals of the Paris Agreement. 

Multilateral institutions are invaluable partners to the pursuit of 

sustainable, inclusive, and resilient development. President Biden 

announced ambitious climate finance pledges in April and 

September 2021. To support the U.S. pledge, we requested in our 

FY 2022 Budget $1.25 billion for the Green Climate Fund to, in 

part, make good on our $2 billion outstanding pledge, $485 million 

to support other multilateral climate initiatives, and increased 

support for the multilateral development banks. Looking ahead, 

we will consider requesting funds for additional new contributions 

to the Green Climate Fund and other initiatives.

SUSTAINABLE TREASURY OPERATIONS

Our mission, facilities, operations, and services are being impacted 

by climate disruptions, including global warming, sea level rise, 

more intense and frequent major weather events, and disruptions to 

energy availability. To address these impacts, we must improve 

mitigation efforts to reduce our greenhouse gas emissions, while 

adapting to a changing environment by making our facilities, 

operations, and critical supply chains more resilient to climate 

disruptions. We need to improve our workforces’ knowledge and 

awareness of climate change, the science that supports climate 

policies, and the means to address the impacts of climate change 

on our mission and operations. To combat these challenges, we 

will use our purchasing power to reduce greenhouse gas emissions 

across our operations.

We will also make our real property portfolio more resilient to 

address the impacts of climate change. In FY 2022, each Bureau 

will perform an updated facility risk assessment, update its existing 

(or identify a new) adaptation action plan to address the highest 

risks, develop a timeline for each of its respective action plans, and 

identify any resource requirements. We will collectively assess 

common actions across Bureaus to minimize resources and efforts. 

The Treasury Operations Executive Council TOEC working group 

is already in place to collaborate on best practices and use common 

efforts.

We will transform our procurement policies and processes to 

consistently prioritize climate change considerations in purchasing 

decisions. Specific focus will include developing source selection 

sustainability evaluation factors, leveraging strategic sourcing 

opportunities to enable cost-effective purchasing of services and 

products that support climate adaptation and resilience, identifying 

Treasury-wide procurement strategies to make federal facilities 

and operations more climate-ready and resilient, establishing 

meaningful metrics to track progress, and prioritizing opportunities 

to support disadvantaged communities. 

Finally, we will work to increase climate-change knowledge and 

expertise through capability-building efforts in climate literacy and 

engagement and, where applicable, data strategies, coordination, or 

relevant process improvement efforts.

In response to Executive Order 14008’s Section 211 Climate 

Action Plans and Data and Information Products to Improve 

Adaptation and Increase Resilience, we published the first edition 

of the Treasury Climate Action Plan, which prioritizes our efforts 

regarding our facilities and operations to bolster adaptation and 

increase resilience to the impacts of climate change.

Our Bureaus have undertaken many climate adaptative and 

resiliency actions, as well as environmental sustainability and 

energy management initiatives that are documented in annual 

Treasury Sustainability Plans. Our Bureaus will develop Bureau 

Climate Action Plans, as well as bureau-level climate action 

assessments and planning processes with a continual improvement 

management tool that is ready for deployment. 
   

Executive Summary - 22

Modernizing Treasury Operations 

Modernizing Treasury’s operations is critical to achieving our 

mission and strategic priorities. In particular, we will focus on a 

narrow set of enterprise-level improvements that, if made, will 

improve mission delivery across all organizations and strategic 

objectives. These include building and retaining a workforce that 

represents the diverse people and communities we serve, enabling 

the work routines of the future to capitalize on the lessons we 

learned from the pandemic work environment, strengthening 

decision-making through improved use of data, and increasing 

trust in government by building consistent customer experience. In 

FY 2021, we adopted strategies to prioritize employee safety 

during the pandemic, completed foundational work to both 

improve customer experience and promote data-driven decision 

making, and had mixed success in modernizing infrastructures.

RECRUIT/RETAIN DIVERSE AND INCLUSIVE 

WORKFORCE

Employment opportunities and leadership roles within Treasury 

must represent the American people, including with respect to 

race, ethnicity, religion, sex, gender identity, sexual orientation, 

age, and disability. In addition to ensuring we are able to carry out 

our mission effectively and equitably, our efforts to become a more 

diverse and inclusive organization will also aid in fostering 

creativity, innovation, productivity, and higher levels of employee 

engagement.

To accomplish this, we need to increase our focus on developing a 

diverse pipeline for hiring and promotions and investing in training 

and development opportunities to improve retention and inclusion 

in our workforce. Different levels of funding and varied maturity 

levels in strategic human capital management across Treasury and 

our bureaus, combined with human resources challenges in the 

face of accelerating changes to mission and skill requirements, 

could erode our ability to meet our mission. Investing in 

recruitment and employee development, while creating a 

modernized environment (physical, virtual, and cultural) that best 

supports the workforce, will advance efforts to retain top talent and 

enable employees to focus on accomplishing our mission.

To address these challenges, we will employ measures to reach 

previously inaccessible talent. We will identify and mitigate 

sources of bias in selection and promotion processes. We will take 

steps to expand on a culture that demonstrates leadership 

commitment to a culture of inclusion, diversity, equity, and 

accessibility. Finally, we will take steps to provide a modern, 

equitable, and inclusive work experience. 

WORK RE-ENTRY/FUTURE WORK ROUTINES

The convergence of the COVID-19 pandemic and climate crisis 

has resulted in a critical decision point for Treasury about our 

immediate and long-term physical needs, such as facilities and 

office spaces and IT, as well as our human capital infrastructure. 

As the pace of change accelerates and we play a growing role in 

responding to national crises—foreseen and unforeseen—we must 

increase our agility, flexibility, and resilience.

How we work together is changing. Failure to support and 

empower the workforce will stifle the innovation needed to 

transform and meet the evolving needs of our customers. 

Technology advances have the potential to enable a more 

distributed and diverse workforce that can access the best talent 

anywhere, and a more sustainable and resilient infrastructure. We 

will also need to evolve our culture and provide equitable access to 

best-in-class tools, training, and facilities. To achieve this 

integrated vision, we must modernize our workplace infrastructure 

and work routines to meet a “whole person” culture, maintain 

competitiveness, and enable a “new normal” for an engaged and 

inclusive workforce of the future. 

To overcome these challenges, we will equip the workforce with 

the skills, competencies, and flexibility to succeed in the future. 

We will transform work routines to meet changing customer and 

employee needs by fostering a culture of innovation and 

continuous improvement. Finally, we will modernize the physical 

and virtual workplace to provide an improved employee 

experience.
   

Executive Summary - 23

BETTER USE OF DATA

We seek to fully unlock the value of our data for mission, service, 

and the public good. The Foundations for Evidence-based 

Policymaking Act of 2018 required agencies to designate a Chief 

Data Officer, Evaluation Officer, and Statistical Official, and to 

assess their data maturity and capacity for evidence-building. 

Through these assessments, we identified many “pockets of 

excellence” where evidence generated through research, 

evaluation, analysis, and statistical activities is routinely used to 

inform decision-making. However, we lack maturity at the 

enterprise-level. Silos, inconsistent data standards, and resource 

constraints make it difficult to share data across the department and 

with other federal partners. 

Our ability to support critical decisions across mission areas and 

detect emerging issues with data may be impeded by a lack of data 

accessibility and reliability, inability to successfully use and 

interpret the data, and/or capability to process or analyze data. To 

develop and maintain a culture where we generate high quality 

data products and evidence that are easy to consume and share, we 

must strengthen our data infrastructure, data governance, and 

analytic capabilities within our workforce.

To overcome these challenges, we will strengthen our ability to 

develop and use high-quality data through enterprise data 

governance and by adopting data standards. We will improve data 

infrastructure by modernizing our legacy systems, advancing the 

use of secure cloud services, and harnessing new and emerging 

technologies. We will also strengthen analytic capabilities across 

our workforce by improving data literacy. Finally, we will 

advance equity in our programs and services by increasing access 

to data that we can use to assess and measure equity and inform 

program policy and decision-making.

IMPROVE CUSTOMER EXPERIENCE

We provide many critical services to the American people—from 

Main Street to Wall Street—and federal agencies. According to 

the American Customer Satisfaction Index, the federal government 

ranks among the bottom of all industries in the U.S. in customer 

satisfaction. 

We are designated as a federal High Impact Service Provider due 

to the scale and impact of our public-facing services. In FY 2021, 

the IRS processed returns from 225.3 million individuals and 

businesses and assisted 68.6 million customers on the phone or in 

person. When the agency provides a modern, efficient customer 

experience, it increases Americans’ trust in government. When it 

develops cumbersome regulations or fails to deliver programs 

equitably, it negatively impacts perceptions of government 

services.

We must create a culture that focuses on the customer, leveraging 

the latest research and modern approaches to improving customer 

experience to improve its overall capabilities and practices. 

Failure to do so reduces program effectiveness and disrupts the 

efforts of other federal agencies we serve to better serve their 

customers.

To overcome these challenges, our managers have launched and 

communicated a Department-wide customer experience vision. 

We will use advanced analytic tools, research methods, and 

outreach to better understand our customers and potential disparate 

impacts. We will also create and update annually an inventory of 

high-impact services/journeys to enable a 360-degree view of the 

customer and prioritize service improvements across all of our 

customers. Finally, we will put the customer at the center of 

improvements across high-impact services/journeys using human 

centered design and continuous process improvement
   

Executive Summary - 24

FY 2021 Operational Performance Measures 

In FY 2021, we continued to deliver value to our customers, the American taxpayer. Our performance measures present data on service and 

operational outcomes for our core programs1. Table 3 contains trend information for key measures we use to assess our performance in core 

services and operations—programs that are critical to the proper functioning of the U.S. government. For each measure, we provide definitional 

information and briefly explain the trend in performance over the last four years. A full discussion of performance trends for all of our 

programs is included in the APR. 

SELECT PERFORMANCE MEASURES 

Bureau/

Office

Measure FY 18 FY 19 FY 20 FY 21 FY 21

Target

FY 21

Result vs Target

BEP

Manufacturing costs for currency—

dollar costs per thousand notes

produced		

$47.41 $51.01 $56.19 $61.81 $63.64 Met 

This measure calculates the actual manufacturing cost for currency notes, which include direct labor costs, the cost of raw materials used, 

and related manufacturing overhead charges. The FY 2021 cost was lower than anticipated due to savings resulting from decreased 

spoilage, as well as the recovery of Series 2009 $100 notes through the Single Note Inspection process.

Currency Notes Delivered Returned

Due to Defects—Parts per million .0031 .09 .02 .016 1 Met 

This measure incentivizes continuous product quality improvement and reduces defect-driven returns of currency notes by the Federal 

Reserve back to BEP. BEP collects and tracks the number of notes by denomination that are returned from the Federal Reserve Banks. 

The target for this measure aligns with manufacturing industry quality standards. 

U.S. Mint

Circulating On‐Time Delivery—

percentage

100% 100% 100% 100% 97.5% Met 

On-time delivery to the Federal Reserve Banks (FRB) is the percentage of total scheduled orders shipped on time to the FRB. The United 

States Mint is responsible for providing the Nation's coinage in sufficient quantity to meet the needs of commerce. To accomplish this 

mission, the United States Mint must supply coinage in the quantities and timelines specified by the FRB. The FRB is then responsible for 

distributing coinage to the commercial banking sector. 

Numismatic Sales Units—million units 3.3 4.3 3.4 3.7 3.6 Met 

The numismatic sales unit metric measures public demand for coin products sold from numismatic operations. This metric also 

measures performance results achieving the Mint’s internal strategic plan goal, “Revitalization of products and customer base” and the 

Mint’s internal strategic objective linked to this goal, “Increasing brand awareness

Seigniorage per dollar issued $0.37 $0.40 $0.47 $0.37 $0.41 Unmet 

Seigniorage per Dollar Issued is the financial return on circulating operations, calculated as seigniorage divided by the total face value of 

circulating coins shipped to the FRBs. Seigniorage is the difference between the face value and cost of producing circulating coinage. It 

measures the cost effectiveness of minting and issuing the United States’ circulating coinage. 

TTB

Percent of permit applications

processed within service standards		 71.2% 57.6% 84.1% 92.2% 85% Met 

This measure represents the overall rate at which TTB is meeting its annual service standard (75 days for FYs 2018 – 2021) for all original 

permit applications and registrations. The measure reflects the efficiency and consistency of TTB’s permitting process and supports 

effective communication with industry members as to level of service. In FY 2021, TTB issued 92 percent of applications within its 75-

day service standard, surpassing its 85 percent target. To sustain these improvements, TTB is undertaking process and system 

enhancements, including an effort to streamline permit application requirements. 

Fiscal Service

Percentage of Treasury Payments

Made Electronically 95.4% 95.6% 96.0% 96.2% 96.1% Met 

This measure provides the portion of the total volume of payments that is made electronically. FY 2020 and FY 2021 data does not include 

pandemic-related relief payments such as economic impact payments and advance child tax credit payments. 

Number of paper checks printed FYTD

(millions) 56.0 54.2 50.5 48.8 49.0 Met 

1 Bureaus and offices validate performance data each quarter. The FY 2021 Verification and Validation Report is available at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budget-requestannual-performance-plan-and-reports 
   

Executive Summary - 25

Bureau/

Office

Measure FY 18 FY 19 FY 20 FY 21 FY 21

Target

FY 21

Result vs Target

This measure provides the number of payments made via paper checks. FY 2020 and FY 2021 data does not include pandemic-related

relief payments such as economic impact payments and advance child tax credit payments. 

IRS

Customer Service Representative

Level of Service (LOS) 75.9% 65.4% 53.1% 18.5% 32% Unmet 

This measure represents the number of toll-free callers that either speak to a Customer Service Representative or receive information 

messages divided by the total number of attempted calls. In FY 2021 the CSR LOS was 18.5 percent, falling short of the target. New 

legislation resulted in added, unplanned demand for the toll-free phone lines. Total Assistor Demand was more than 200 percent higher 

than in FY 2020 with some lines seeing increases of more than 2 million calls. Call disconnects were 1,477 percent higher in FY 2021 at 

4.1 million compared to 260,000 in FY 2020. Through all of this, IRS was able to answer 3.8 million more calls in FY 2021 than the prior 

year. IRS continues to monitor demand in real time, allocating resources and shifting between telephones and paper processing to 

address demand during times of unprecedented call volume. 

Enterprise Self Assistance

Participation Rate (ESAPR) 82.0% 85.4% 90.6% 92.3% 89% Met 

This measure represents the percent where a taxpayer uses one of the IRS’s self-assistance service channels (e.g., automated calls, web 

services) versus needing support from an IRS employee (e.g., face-to-face, over the phone, or via paper correspondence). In FY 2021, the 

ESAPR was 92.3 percent, exceeding the target of 89.0 percent and 1.9 percent higher than the prior year. Compared to FY 2020, total 

services increased 36.4 percent, self-assisted services increased 38.9 percent, and assisted services rose 12.4 percent. 

Timeliness of Critical Individual Filing

Season Tax Products to the Public 59.6% 92.6% 78.4% 92% 85% Met 

This measure represents the percentage of Critical Individual Filing Season (CIFS) tax products available to the public seven calendar 

days before the official IRS start of the filing season. CIFS tax products include tax forms, schedules, instructions, publications, tax 

packages, and certain notices required by numerous filers to prepare a complete and accurate return. The timeliness of CIFS tax products 

ended the fiscal year at 92.0 percent, exceeding the FY 2021 target of 85.0 percent. This accomplishment was partially due to the 

enactment of the P.L. 116-260, Consolidated Appropriations Act, 2021, which determined the February 12 filing season start date. The 

legislation provided more time to meet the annual goal. Additional factors that contributed to exceeding this year’s target include 

prioritizing work on the release of critical products; planning for legislative changes to quickly re-prioritize work targeted to critical 

products impacted by the law; granting of overtime, credit, and compensatory time during workdays, weekends and holidays; and 

workload planning and monitoring by management as well as the efforts of our employees. 

FinCEN

Percentage of Domestic Law

Enforcement and Foreign Financial

Intelligence Units finding FINCEN’s

Analytic Products Valuable to the

detection and deterrence of illicit

activity

95% 92% 97% 96% 90% Met 

This performance measure tracks what the analytics products are intended to do (e.g., to be useful to a wide range of customers and have 

impact, such as identify new leads or provide previously unknown information). In FY 2020, 97 percent found that the analytic products 

and research had impact on investigations, meeting the target of 90 percent or above. FinCEN was able to achieve this high level of 

performance by continuously improving processes to increase and more rapidly disseminate financial intelligence information reports 

to a wider audience, by maintaining the high quality of its reporting through stringent review processes, and by covering issues and topics 

that meet the operational and informational demands of its domestic and international stakeholders. 

Management

Treasury‐wide EVS Satisfaction Index 63% 66% 75% TBD 75% TBD 

The Federal Employee Viewpoint Survey (FEVS) is the primary tool that agencies use to measure employee sentiment. Each year, we 

track and report on the FEVS Overall Satisfaction Index which comprises three FEVS satisfaction questions. Due to the timing of this 

year’s survey the FY 2021 FEVS results will not be available until February 2022. 

Percent of Procurement Dollars Spent

of Small Business 42.6% 40.4% 45.0% 39.9% 36% Met 

This goal measures the percentage of procurement dollars obligated toward small businesses (or Treasury’s overall small business goal) 

and highlights Treasury’s efforts to ensure that small businesses have the maximum practicable opportunity to provide goods and

services to the federal government. 
   

Executive Summary - 26

Bureau/

Office

Measure FY 18 FY 19 FY 20 FY 21 FY 21

Target

FY 21

Result vs Target

Office of

International

Affairs

Percentage of Committee on Foreign

Investment in the United States (CFIUS)

Cases Reviewed within Statutory

Timeframes, reported by calendar year

100% 100% 100% TBD 100% TBD 

This measure tracks compliance with statutory deadlines for completing national security reviews of transactions notified to the CFIUS to 

ensure that the CFIUS process is timely and efficient. Results are reported on a calendar year basis. 

Office of

Terrorism and

Financial

Intelligence

Number of New or Modified Sanctions

Programs Established by Executive Order

or Congressional Mandate

5 7 6 7 N/A N/A 

This indicator tracks the number of new or modified sanctions programs that must be implemented and enforced. However, the indicator does 

not capture the levels of relative complexity for each sanction program or the complexity of individual national security objectives that 

sanctions attempt to achieve. We do not set targets for new or modified sanctions programs, since the existence of a sanctions program is not 

itself a measure of success. 
   

Executive Summary - 27

ENTERPRISE RISK MANAGEMENT

FRAMEWORK

OMB Circular No. A-123, Management’s Responsibility for 

Enterprise Risk Management and Internal Control, provides 

guidance to federal managers to effectively manage risks to 

achieve strategic objectives. Management, together with the Chief 

Risk Officer (CRO), is responsible for establishing a governance 

structure to implement a robust process of risk management and 

internal control, as well as an enterprise-wide risk profile. 

Successful implementation requires us to establish and foster an 

open and transparent culture that encourages people to 

communicate information about potential risks and other concerns 

that impact our programs and operations. 

The CRO meets regularly with senior leaders to discuss top risks to 

critical programs, systems, projects, and priorities, including 

response strategies. The Office of Risk Management (ORM) also 

established an Enterprise Risk Management (ERM) Council, 

chaired by the Deputy CRO, which brings together risk managers 

from each of our bureaus and policy offices on a bi-monthly basis 

to share best practices and discuss risks. ORM works with the 

bureaus and policy offices across Treasury to monitor and annually 

update our risk profile. 

Beyond its work at Treasury, ORM leads an interagency ERM 

community of practice including officials from more than 50 

federal agencies. This group grew from ORM’s efforts to support 

agencies in their implementation of ERM, including the July 2016 

publication of the Playbook: Enterprise Risk Management (ERM) 

for the U.S. Federal Government. This government-wide working 

group meets bi-monthly to discuss common risks and various 

methods of implementing the guidelines of the Circular. 

ENTERPRISE RISKS AND CHALLENGES

Through the FY 2021 SOAR and enterprise risk management 

process, we identified the following cross-cutting operational risks. 

Evolving Cyber Climate: Treasury and the financial services 

sector face increasing attacks from cyber criminals and state actors 

attempting to disrupt operations or steal data from sensitive 

systems. The tactics, techniques, and procedures perpetrators of 

these incidents use are constantly evolving. 

Workforce Management: Our mission capability may be eroded 

due to operational challenges in human resources, such as 

recruitment, training and development, personnel security, and 

diversity and inclusion. These challenges may be intensified when 

paired with changing mission and skill requirements. 

Data Analytics Capabilities, Sharing, and Infrastructure: Our 

ability to support critical decisions with data may be negatively 

affected by a lack of data accessibility and reliability, inability to 

successfully use and interpret the data, or inability to process or 

analyze data due to insufficient or aging infrastructure. 

Prioritizing Objectives to Effectively Leverage Limited 

Resources: We have many extremely important ongoing missions 

and are also at the forefront of several new initiatives to improve 

our economy and return it to a stable footing. Due to uncertain 

funding amounts and timing, new or changing legislative 

requirements, and reduced capacity, we may not be agile enough to 

sufficiently balance new initiatives with existing requirements or 

projects. 

Significant Disruptions to Operations: We may face significant 

disruptions to operations, due to climate change, natural disasters, 

terrorist events, pandemics, or a lapse in appropriations, resulting 

in our inability to successfully deliver our mission, constrained 

progress in critical areas, and/or challenges for employees, 

contractors, customers, and taxpayers.

Procurement, Acquisition, and Vendors: We may be unable to 

timely acquire necessary products and services, initiate work under 

contracts, and effectively monitor contract execution due to supply 

chain vulnerabilities such as supplier risk, single vendors, lost 

time, and inefficient contracts. This may result in a failure to 

deliver on mission needs. 
Executive Summary - 28

FY 2022 OUTLOOK

The FY 2022 – 2026 Strategic Plan describes the long-term 

goals and objectives we aim to achieve during this 

Administration, building from the progress made and 

challenges identified in FY 2021.

Our FY 2021 SOAR outlined several focus areas that will 

shape the development of our future priorities: (1) tax 

administration and policy; (2) strategic threat disruption; 

(3) cyber resiliency of financial systems and institutions; 4) 

resilient government securities markets; and (5) customer 

experience practices.

Looking ahead, we shaped our strategic goals around five 

key priority areas: (1) promoting equitable economic 

growth and recovery; (2) enhancing national security; (3) 

protecting financial stability and resiliency; (4) combating 

climate change; and (5) modernizing Treasury operations.

To achieve progress on these priorities, we will continue to 

manage the Department’s programs under the CARES Act, 

CAA, and ARP. We will also pursue priorities as described 

in Executive Order 14008: Tackling the Climate Crisis at 

Home and Abroad, Executive Order 14030: ClimateRelated Financial Risk, and Executive Order 13985 

Advancing Racial Equity and Support for Underserved 

Communities through the Federal Government.
Executive Summary - 29

ADDITIONAL INFORMATION

SUMMARY OF MANAGEMENT AND PERFORMANCE CHALLENGES

In accordance with the Reports Consolidation Act of 2000, the Inspectors General are required to identify specific management 

and performance challenges we face. At the end of each fiscal year, the Treasury Office of Inspector General (OIG) and 

Treasury Inspector General for Tax Administration (TIGTA) send an update of these management challenges to the Secretary of 

the Treasury (hereafter referred to as “Secretary”) and cite any new challenges for the upcoming fiscal year. The Special 

Inspector General for the Troubled Asset Relief Program (SIGTARP) identifies their management or performance challenges for 

the Office of Financial Stability (OFS) separately in their quarterly report to Congress. This section contains the OIG and 

TIGTA identified management and performance challenges and management’s response.2

OIG – IDENTIFIED MANAGEMENT CHALLENGES 

 Coronavirus Disease 2019 (COVID-19) Pandemic Relief 

 Transition of New Administration (new) 

 Cyber Threats 

 Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act Enforcement 

 Efforts to Promote Spending Transparency and To Prevent and Detect Improper Payments 

 Information Technology Acquisition and Project Management 

TIGTA – Identified Management Challenges 

 Administration of Tax Law Changes and Pandemic Relief Benefits; 

 Enhancing Security of Taxpayer Data and Protection of IRS Resources; 

 Improving Tax Reporting and Payment Compliance to Reduce the Tax Gap; 

 Modernizing IRS Operations; 

 Improving Customer Service and the Taxpayer Experience; 

 Addressing Emerging Threats to Tax Administration; 

 Reducing Fraudulent Claims and Improper Payments; 

 Increasing International Tax Compliance; 

 Protecting Taxpayer Rights; and 

 Human Capital. 

GAO – Identified High-Risk Areas

 Modernizing the U.S Financial Regulatory System (OFR/FSOC/OCC/Federal Reserve); and 

 Enforcement of Tax Laws (IRS). 

GOOD ACCOUNTING OBLIGATION IN GOVERNMENT ACT (GAO-IG ACT) 

The Good Accounting Obligation in Government Act (the Act) requires each Federal agency to include, in its annual budget 

justification, a report that identifies each public recommendation issued by the Government Accountability Office (GAO) and the

2 The FY 2021 AFR is available at https://home.treasury.gov/system/files/266/Treasury-FY-2021-AFR.pdf . The response letters 

are on pages 230-238 (OIG) and 251-255 (TIGTA). 
agency's inspector(s) general (IGs) that has remained unimplemented for one year or more from the budget justification 

submission date. In compliance with the Act, Treasury has included a report listing each public recommendation issued by GAO,

Treasury Office of Inspector General (OIG), and Treasury Inspector General for Tax Administration (TIGTA). For

recommendations with which Treasury agreed, this report provides timelines for full implementation of the planned corrective

actions (PCAs). For recommendations with completed PCAs, this report indicates the status as "Implemented and Awaiting 

Auditor Verification." For recommendations with which Treasury disagreed or did not implement corrective actions due to 

budgetary constraints or other factors, this report indicates their status as either "Rejected" or "On Hold," respectively. For

recommendations where Treasury did not formally respond or take action, this report indicates “No Action Taken.” The Act also 

requires a reconciliation between the agency records of unimplemented recommendations and each IGs' Semiannual Report to

Congress (SAR). Treasury IGs use the same system (Treasury’s Joint Audit Management Enterprise System (JAMES)) for the 

reporting of unimplemented recommendations in the SAR. In addition, Treasury IGs have direct access to JAMES and regularly 

review and validate the recommendation implementation status recorded in JAMES by conducting corrective action verifications

and follow-up audits. A reconciliation table is provided as part of this report to illustrate that the discrepancies between this 

report and the SAR are due to differences in reporting criteria. The information used to create this report is based on JAMES and 

GAO’s recommendations database available on www.gao.gov. Executive summaries and detailed reports are also available on 

Treasury’s website at: https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/good-accountingobligation-in-government-act-gao-ig-act-reports.

Reporting Methodology and Report Structure 

This report includes GAO, OIG, and TIGTA recommendations issued between 2/1/2014 and 1/31/2021 (7 years per Treasury’s 

record retention policy) that remained unimplemented for one year or more from the planned fiscal year 2023 budget 

justification submission date. 

The report has five parts: 

Appendix 1: A report listing GAO recommendations and their implementation status. 

Appendix 2: A report listing OIG recommendations and their implementation status. 

Appendix 3: A report listing TIGTA recommendations and their implementation status. 

Appendix 4: A reconciliation of this report and the IGs’ SARs. 

Appendix A: A listing of acronyms used throughout this report.

Executive Summary - 30
Executive Summary - 31

EVIDENCE ACT

The Foundations for Evidence-Based Policymaking Act ("Evidence Act"), Public Law 115-435, takes steps to advance evidencebuilding functions in the Federal government. The law builds on existing Federal policies and data infrastructure investments to 

support information quality, access, and use. The Evidence Act challenges agencies to rethink how they are currently using and

organizing evidence. The Annual Performance Plan and Report section of each budget chapter (Section II, part B) highlights the

ways in which evidence, including program evaluation and research findings, was used to further the agency’s understanding of 

program performance, establish performance goals, and inform future priorities. Additionally, where the agency made changes to

performance measures, the Annual Performance Plan and Report (Section II, Part C) describes how evidence informed these 

changes. 

Treasury’s FY 2022 – 2026 Learning Agenda is set of priority questions designed to generate evidence through research, 

evaluation, or analysis to inform agency decision-making on policy development or program administration. The Learning 

Agenda includes questions about past program performance and potential strategies or approaches to improve performance and 

meet agency goals. Additionally, the Treasury FY 2023 Annual Evaluation Plan identifies significant evaluations that Treasury 

plans to conduct next year to evaluate critical programs and develop evidence in support of the agency’s learning agenda. Finally, 

the Treasury FY 2022 – 2026 Capacity Assessment highlights areas of agency strength and opportunities to increase the use of 

evidence, including performance data and evaluation findings, to guide decision-making. As Treasury works to strengthen its 

overall capacity for evidence-building and enterprise governance, the agency will continue to consider how evidence can be used

to inform performance planning and reporting.3 

IDEA ACT

As required by section 3(b)(2) of Public Law 115-336, 132 Stat. 5025-5028, the 21st Century Integrated Digital Experience Act 

(21st Century IDEA or the Act), Treasury will provide a report to Congress highlighting progress across the enterprise and an 

integrated approach to modernize agency websites and digital services. This report will include major accomplishments and 

continued progress in design standardization, bureau website and application modernization, and IDEA compliance for recovery 

efforts. As required in Section 4(d), Treasury will also continue to digitize all paper-based forms related to serving the public and 

centralize access to these forms. Please see U.S. Department of the Treasury Public Law 115-336, “21st Century Integrated 

Digital Experience Act” December 2021 Report Prepared for the Office of Management and Budget and the public per the 

requirements of section 3(d) of Public Law 115-336. for more information. 

MACHINE READABLE SUMMARY TABLES

Treasury has developed, for online posting, machine-readable files of the budget summary tables in the executive summary 

chapter of the FY 2023 Congressional Justification. Please see https://home.treasury.gov/about/budget-financialreporting-planning-and-performance/budget-requestannual-performance-plan-and-reports for more 

information. 

3 The Treasury FY 2022 – 2026 Learning Agenda and Capacity Assessment and the FY 2023 Annual Evaluation Plan are 

available at: https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budget-requestannualperformance-plan-and-reports 
Executive Summary - 32

SUMMARY OF FY 2023 APPROPRIATIONS LANGUAGE

Note—A full-year 2022 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes these accounts are operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117–43, as amended). The amounts included for 

2022 reflect the annualized level provided by the continuing resolution. 

DEPARTMENTAL OFFICES 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental Offices including operation and maintenance of 

the Treasury Building and Freedman's Bank Building; 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, including technical assistance to State, 

local, and territorial entities; and Treasury-wide management policies and programs activities, 

$293,242,000: Provided, That of the amount appropriated under this heading— (1) not to 

exceed $350,000 is for official reception and representation expenses; (2) 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; and (3) not to exceed $34,000,000 shall remain available until 

September 30, 2024, for— (A) the Treasury-wide Financial Statement Audit and Internal 

Control Program; (B) information technology modernization requirements; (C) the audit, 

oversight, and administration of the Gulf Coast Restoration Trust Fund; (D) the development 

and implementation of programs within the Office of Cybersecurity and Critical Infrastructure 

Protection, including entering into cooperative agreements; (E) operations and maintenance of 

facilities; and (F) international operations. 

OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE 

SALARIES AND EXPENSES 

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, human rights abusers, money launderers, drug 

kingpins, and other national security threats, $212,059,000, of which not less than $3,000,000 

shall be available for addressing human rights violations and corruption, including activities 

authorized by the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note): 

Provided, That of the amounts appropriated under this heading, up to $12,000,000 shall remain 

available until September 30, 2024. 

CYBERSECURITY ENHANCEMENT ACCOUNT 

For salaries and expenses for enhanced cybersecurity for systems operated by the Department 

of the Treasury, $215,000,000, to remain available until September 30, 2025: Provided, That 

such funds shall supplement and not supplant any other amounts made available to the 
Executive Summary - 33

Treasury offices and bureaus for cybersecurity: Provided further, That of the total amount 

made available under this heading $9,000,000 shall be available for administrative expenses 

for the Treasury Chief Information Officer to provide oversight of the investments made under 

this heading: Provided further, That such funds shall supplement and not supplant any other 

amounts made available to the Treasury Chief Information Officer. 

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAM 

For development and acquisition of automatic data processing equipment, software, and 

services; for the hire of zero emission passenger motor vehicles and for supporting charging or 

fueling infrastructure; and for repairs and renovations to buildings owned by the Department of 

the Treasury, $11,118,000, to remain available until September 30, 2025: 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, $43,878,000, 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, 2024, 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. 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES 

For necessary expenses of the Committee on Foreign Investment in the United States, 

$20,000,000, to remain available until expended: Provided, That the chairperson of the 

Committee may transfer such amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to advance notification to the 

Committees on Appropriations of the House of Representatives and the Senate: Provided 

further, That amounts so transferred shall remain available until expended for expenses of 

implementing section 721 of the Defense Production Act of 1950, as amended (50 U.S.C. 4565), 

and shall be available in addition to any other funds available to any department or agency: 

Provided further, That fees authorized by section 721(p) of such Act shall be credited to this 

appropriation as offsetting collections: Provided further, That the total amount appropriated 

under this heading from the general fund shall be reduced as such offsetting collections are 

received during fiscal year 2023, so as to result in a total appropriation from the general fund 

estimated at not more than $0. 

 
Executive Summary - 34

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; $182,409,000, of which 

$5,000,000 shall remain available until September 30, 2024; 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. 

SPECIAL INSPECTOR GENERAL FOR PANDEMIC RECOVERY 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special Inspector General for Pandemic Recovery in 

carrying out section 4018 of the Coronavirus Aid, Relief, and Economic Security Act of 2020 

(Public Law 116–136), in addition to amounts otherwise available for such purpose, 

$25,000,000, to remain available until September 30, 2025. 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM 

ACCOUNT 

To carry out the Riegle Community Development and Regulatory Improvement 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-III, $331,420,000. Of the amount appropriated under this heading— 

(1) not less than $217,383,000, 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, 2024, 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 $1,600,000 may be 

available for training and outreach under section 109 of Public Law 103–325 (12 U.S.C. 4708), 

of which up to $3,153,750 may be used for the cost of direct loans, of which up to $6,000,000, 

notwithstanding subsection (d) of section 108 of Public Law 103–325 (12 U.S.C. 4707 (d)), may 

be available to provide financial assistance, technical assistance, training, and outreach to 

community development financial institutions to expand investments that benefit individuals with 

disabilities, and of which not less than $2,000,000 shall be for the Economic Mobility Corps to 

be operated in conjunction with the Corporation for National and Community Service, pursuant 

to 42 U.S.C. 12571: 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: Provided further, That of the funds 

provided under this paragraph, excluding those made to community development financial 

institutions to expand investments that benefit individuals with disabilities and those made to 

community development financial institutions that serve populations living in persistent poverty 
Executive Summary - 35

counties, the CDFI Fund shall prioritize Financial Assistance awards to organizations that 

invest and lend in high-poverty areas: Provided further, That for purposes of this section, the 

term "high-poverty area" means any census tract with a poverty rate of at least 20 percent as 

measured by the 2011–2015 5-year data series available from the American Community Survey 

of the Bureau of the Census for all States and Puerto Rico or with a poverty rate of at least 20 

percent as measured by the 2010 Island areas Decennial Census data for any territory or 

possession of the United States; 

(2) Not less than $21,500,000, notwithstanding section 108(e) of Public Law 103–325 (12 U.S.C. 

4707(e)), is available until September 30, 2024, for financial assistance, technical assistance, 

training, and outreach programs designed to benefit Native American, Native Hawaiian, and 

Alaska 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 $26,000,000 is available until September 30, 2024, for the Bank 

Enterprise Award program; 

(4) not less than $23,000,000, 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 30,2024, 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) not less than $8,500,000 is available until September 30, 2024, to provide grants for loan 

loss reserve funds and to provide technical assistance for small dollar loan programs under 

section 122 of Public Law 103–325 (12 U.S.C. 4719): Provided, That sections 108(d) and 

122(b)(2) of such Public Law shall not apply to the provision of such grants and technical 

assistance; 

(6) up to $35,037,000 is available until September 30, 2023, for administrative expenses, 

including administration of CDFI Fund programs and the New Markets Tax Credit Program, of 

which not less than $1,000,000 is for the development of tools to better assess and inform CDFI 

investment performance and CDFI Fund program impacts, and up to $300,000 is for 

administrative expenses to carry out the direct loan program; and 

(7) during fiscal year 2023, 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 $500,000,000: Provided 

further, That such section 114A shall remain in effect until December 31, 2023: Provided 

further, That of the funds awarded under this heading, except those provided for the Economic 

Mobility Corps, not less than 10 percent shall be used for awards that support investments that 

serve populations living in persistent poverty counties: Provided further, That for the purposes of 

this paragraph and paragraph (1), the term "persistent poverty counties" means any county, 

including county equivalent areas in Puerto Rico, that has had 20 percent or more of its 

population living in poverty over the past 30 years, as measured by the 1990 and 2000 decennial 
Executive Summary - 36

censuses and the 2011–2015 5-year data series available from the American Community Survey 

of the Bureau of the Census or any other territory or possession of the United States that has had 

20 percent or more of its population living in poverty over the past 30 years, as measured by the 

1990, 2000 and 2010 Island Areas Decennial Censuses, or equivalent data, of the Bureau of the 

Census.

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 Stabilization Act of 2008 (Public Law 110–343), 

$9,000,000. 

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 $45,000 for official reception and representation expenses; and for 

assistance to Federal law enforcement agencies, with or without reimbursement, $210,330,000, 

of which not to exceed $94,600,000 shall remain available until September 30, 2025 for 

information technology and to implement Division F of the William M. (Mac) Thornberry 

National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283). 

BUREAU OF THE FISCAL SERVICE 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal Service, $372,485,000; of 

which not to exceed $8,000,000, to remain available until September 30, 2025, is for information 

systems modernization initiatives; and of which $5,000 shall be available for official reception 

and representation expenses. 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, $150,863,000; of which $5,000,000 shall remain 

available until September 30, 2024; of which not to exceed $6,000 shall be available for official 

reception and representation expenses; and of which not to exceed $50,000 shall be available for 

cooperative research and development programs for laboratory services; and provision of 

laboratory assistance to State and local agencies with or without reimbursement. 

 
Executive Summary - 37

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 year2023 under such section 5136 for 

circulating coinage and protective service capital investments of the United States Mint shall not 

exceed $50,000,000. 

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, 

associated support costs, and other services as authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Commissioner, $3,684,593,000; of which not to exceed $100,000,000 

shall remain available until September 30, 2024; of which not less than $11,000,000 shall be 

for the Tax Counseling for the Elderly Program; of which not less than $26,000,000 shall be 

available for low-income taxpayer clinic grants, including grants to individual clinics of up to 

$200,000; of which not less than $30,000,000, to remain available until September 30, 2024, 

shall be available for the Community Volunteer Income Tax Assistance Matching Grants 

Program for tax return preparation assistance; and of which not less than $235,000,000 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 $5,500,000 shall be 

for identity theft and refund fraud 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)), 

associated support costs, and to provide other services as authorized by 5 U.S.C. 3109, at such 

rates as may be determined by the Commissioner, $6,272,313,000; of which not to exceed 

$250,000,000 shall remain available until September 30, 2024; of which not less than 

$60,257,000 shall be for the Interagency Crime and Drug Enforcement program; and of which 

not to exceed $21,000,000 shall be for investigative technology for the Criminal Investigation 

Division: Provided, That the amount made available for investigative technology for the 

Criminal Investigation Division shall be in addition to amounts made available for the Criminal 

Investigation Division under the "Operations Support" heading. 

OPERATIONS SUPPORT 

For necessary expenses to operate the Internal Revenue Service, including headquarters; the 

hire of passenger motor vehicles (31 U.S.C. 1343(b)); the operations of the Internal Revenue 

Service Oversight Board; and other services as authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Commissioner; $3,833,734,000; of which not to exceed $275,000,000 
Executive Summary - 38

shall remain available until September 30, 2024; of which not to exceed $10,000,000 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, 2025, for research; and of which not to exceed $20,000 shall be for official 

reception and representation expenses: 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 major information technology investments in the Internal Revenue 

Service Integrated Modernization Business Plan portfolio, including detailed, plain language 

summaries on the status of plans, costs, and results; prior results and actual expenditures of the 

prior quarter; upcoming deliverables and costs for the fiscal year; risks and mitigation 

strategies associated with ongoing work; reasons for any cost or schedule variances; and total 

expenditures by fiscal year: Provided further, That the Internal Revenue Service shall include, in 

its budget justification for fiscal year 2024, a summary of cost and schedule performance 

information for its major information technology systems. 

BUSINESS SYSTEMS MODERNIZATION 

For necessary expenses of the Internal Revenue Service's business systems modernization 

program, $310,027,000, to remain available until September 30, 2025, 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 major information technology 

investments in the Internal Revenue Service Integrated Modernization Business Plan portfolio, 

including detailed, plain language summaries on the status of plans, costs, and results; prior 

results and actual expenditures of the prior quarter; upcoming deliverables and costs for the 

fiscal year; risks and mitigation strategies associated with ongoing work; reasons for any cost or 

schedule variances; and total expenditures by fiscal year. 

ADMINISTRATIVE PROVISIONS— INTERNAL REVENUE SERVICE 

SEC. 101. Not to exceed 4 percent of the appropriation made available in this Act to the Internal 

Revenue Service under the "Enforcement" heading, and not to exceed 5 percent of any other 

appropriation made available in this Act to the Internal Revenue Service, may be transferred to 

any other Internal Revenue Service appropriation upon advance notice to the Committees on 

Appropriations of the House of Representatives and the Senate: Provided, That an additional 2 

percent of the appropriation made available in this Act to the Internal Revenue Service under the 

"Enforcement" heading may be transferred to the appropriation made available in this Act to the 

Internal Revenue Service under the "Taxpayer Services" heading upon advance notice to the 

Committees on Appropriations of the House of Representatives and the Senate. 

SEC. 102. The Internal Revenue Service shall maintain an employee training program, which 

shall include the following topics: taxpayers' rights, dealing courteously with taxpayers, crosscultural relations, ethics, and the impartial application of tax law. 
Executive Summary - 39

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 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. 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. 106. 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. 107. 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. 108. 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 Agency-Wide 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. 109. None of the funds made available in this Act to the Internal Revenue Service may be 

obligated or expended— (1) to make a payment to any employee under a bonus, award, or 

recognition program; or (2) under any hiring or personnel selection process with respect to rehiring a former employee; unless such program or process takes into account the conduct and 

Federal tax compliance of such employee or former employee. 

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). 

ADMINISTRATIVE PROVISIONS—DEPARTMENT OF THE TREASURY 

SEC. 111. Notwithstanding any Congressional notification requirements for a reprogramming of 

funds in this Act, funds provided in this Act for the Internal Revenue Service shall be available 

for obligation and expenditure through a reprogramming of funds that augments or reduces 

existing programs, projects, or activities by up to $10,000,000 without prior Congressional 

notification of such action. 

SEC. 111. 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 
Executive Summary - 40

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. 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", "Financial Crimes 

Enforcement Network", "Bureau of the Fiscal Service", and "Alcohol and Tobacco Tax and 

Trade Bureau" may be transferred between such appropriations upon the advance 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. 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 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. 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. 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. 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 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. 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 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. 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 2023 until the enactment of the Intelligence 

Authorization Act for Fiscal Year 2023. 

 SEC. 119. 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. 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 
Executive Summary - 41

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. 121. During fiscal year 2023— (1) none of the funds made available in this or any other 

Act may be used by the Department of the Treasury, including the Internal Revenue Service, to 

issue, revise, or finalize any regulation, revenue ruling, or other guidance not limited to a 

particular taxpayer relating to the standard which is used to determine whether an organization 

is operated exclusively for the promotion of social welfare for purposes of section 501(c)(4) of 

the Internal Revenue Code of 1986 (including the proposed regulations published at 78 Fed. 

Reg. 71535 (November 29, 2013)); and (2) the standard and definitions as in effect on January 

1, 2010, which are used to make such determinations shall apply after the date of the enactment 

of this Act for purposes of determining status under section 501(c)(4) of such Code of 

organizations created on, before, or after such date. 

SEC. 122. (a) Not later than 60 days after the end of each quarter, 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 Research shall make 

officials available to testify on the contents of the reports required under subsection (a). 

SEC. 123. Notwithstanding any other provision of law, the unobligated balances from amounts 

made available to the Secretary of the Treasury for administrative expenses pursuant to sections 

4003(f) and 4112(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 

116–136); section 421(f)(2) of Division N of the Consolidated Appropriations Act, 2021 (Public 

Law 116–260); sections 3201(a)(2)(B), 3206(d)(1)(A), and 7301(b)(5) of the American Rescue 

Plan Act of 2021 (Public Law 117–2); and section 602(a)(2) of the Social Security Act, as added 

by section 9901 of the American Rescue Plan Act of 2021 (Public Law 117–2), shall be available 

for any administrative expenses determined by the Secretary of the Treasury to be necessary to 

respond to the coronavirus, including but not limited to expenses necessary to implement any 

provision of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), 

Division N of the Consolidated Appropriations Act, 2021 (Public Law 116–260), the American 

Rescue Plan Act (Public Law 117–2), or title VI of the Social Security Act: Provided, That such 

unobligated balances shall be available in addition to any other appropriations provided for 

such purposes. 

SEC. 124. Section 121 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5231) is 

amended in subsection (e)(1)(B)(ii) by striking "subparagraph" and all that follows through the 

period at the end and inserting "subparagraph, the Special Inspector General may not make any 
Executive Summary - 42

appointment that exceeds 18 months or that extends beyond the date on which the Special 

Inspector General terminates under subsection (k).". 

SEC. 125. Not to exceed 5 percent of any appropriation made available in this Act for the 

Department of the Treasury may be transferred to the Department's information technology 

system modernization and working capital fund (IT WCF), as authorized by section 1077(b)(1) of 

title X of division A of the National Defense Authorization Act for Fiscal Year 2018, for the 

purposes specified in section 1077(b)(3) of such Act, upon the prior notification of the 

Committees on Appropriations of the House of Representatives and the Senate: Provided, That 

amounts transferred to the IT WCF under this section shall remain available for obligation 

through September 30, 2026. 


Department of the Treasury

Internal Revenue Service 

 

Congressional Budget

Justification and Annual

Performance Plan and Report

FY 2023
IRS-i

Table of Contents

Commissioner’s Message..........................................................................................................................................................3

Section I – Budget Request.......................................................................................................................................................4

A – Mission Statement..........................................................................................................................................................4

1.1 – Appropriations Detail Table.......................................................................................................................................4

B – Summary of the Request..............................................................................................................................................10

1.2 – Budget Adjustments Table........................................................................................................................................12

C – Base Adjustment and Program Changes Description...............................................................................................13

Maintaining Current Levels ..............................................................................................................................................13

Pay Annualization (2.7%)................................................................................................................................................13

Pay Raise (4.6%) .............................................................................................................................................................13

Non-Pay...........................................................................................................................................................................13

Base Adjustment.................................................................................................................................................................13

Program Increases..............................................................................................................................................................14

1.3 – Object Classification (Schedule O) Obligations......................................................................................................18

D – Appropriations Language and Explanation of Changes ..........................................................................................19

E – Legislative Proposals....................................................................................................................................................28

Section II – Budget and Performance Plan...........................................................................................................................29

A – Strategic Alignment .....................................................................................................................................................29

Taxpayer Services...............................................................................................................................................................31

2.1 – Budget Adjustments Table...................................................................................................................................31

2.2 – Object Classification Obligations........................................................................................................................32

2.3 – Appropriation Detail Table..................................................................................................................................33

2A – Pre-Filing Taxpayer Assistance and Education .................................................................................................33

2.1.1 – Budget and Performance Report and Plan......................................................................................................36

2B – Filing and Account Services.................................................................................................................................36

2.1.2 – Budget and Performance Report and Plan......................................................................................................40

Enforcement........................................................................................................................................................................41

2.1 – Budget Adjustments Table...................................................................................................................................42

2.2 – Object Classification Obligations........................................................................................................................43

2.3 – Appropriation Detail Table..................................................................................................................................44

2C – Investigations.........................................................................................................................................................44

2.1.3 – Budget and Performance Report and Plan......................................................................................................47

2D – Exam and Collections ...........................................................................................................................................47

2.1.4 – Budget and Performance Report and Plan......................................................................................................52

2E – Regulatory..............................................................................................................................................................53

2.1.5 – Budget and Performance Report and Plan......................................................................................................55

Operations Support ............................................................................................................................................................56

2.1 – Budget Adjustments Table...................................................................................................................................57

2.2 – Object Classification Obligations........................................................................................................................58
IRS-ii

2.3 – Appropriation Detail Table..................................................................................................................................59

2F – Infrastructure........................................................................................................................................................59

2.1.6 – Budget and Performance Report and Plan......................................................................................................61

2G – Shared Services and Support ...............................................................................................................................62

2.1.7 – Budget and Performance Report and Plan......................................................................................................65

2H – Information Services.............................................................................................................................................66

2.1.8 – Budget and Performance Report and Plan......................................................................................................69

Business Systems Modernization.......................................................................................................................................70

2.1 – Budget Adjustments Table...................................................................................................................................70

2.2 – Object Classification Obligations........................................................................................................................71

2.3 – Appropriation Detail Table..................................................................................................................................72

2I – Business Systems Modernization ..........................................................................................................................72

2.1.9 – Budget and Performance Report and Plan......................................................................................................75

B - FY 2021 - FY 2023 IRS Integrated Modernization Business Plan............................................................................76

C – Changes in Performance Measures............................................................................................................................79

Section III – Supplemental Information................................................................................................................................80

3.1 – Summary of Capital Investments.............................................................................................................................80

3.2 –IRS Performance Measures Table............................................................................................................................86

3.3 – Return on Investment (ROI) for IRS Major Enforcement Programs...................................................................87

Section IV – Appendix............................................................................................................................................................89

4.1 - COVID-19 Supplemental Funding............................................................................................................................89

4.2 - Carryover Investments from FY 2022 Congressional Justification.......................................................................90

4.3 – Summary of IRS FY 2023 Cyber Security Budget Request.................................................................................101

4.4 – Summary of IRS FY 2023 Budget Request ...........................................................................................................102
IRS-3

Commissioner’s Message

The Internal Revenue Service (IRS) is the primary source of funding 

for the United States government and collected more than $4 trillion 

in gross taxes in FY 2021. As the past year shows, we are more than a 

tax administration agency. We also make it possible for the 

government to perform its vital functions and be effective on 

everything from education to defense. The unprecedented events of 

the last two years illustrate the significant role the IRS plays in the 

overall economic health of our country. We have effectively 

supported economic growth and recovery while fulfilling our core 

mission, including delivery of two extended tax filing seasons. Now 

we’re planning for a new organizational structure and an increase in 

our workforce that will position us well for the future. These 

endeavors will also further the IRS’s efforts in delivering a stellar 

taxpayer experience. Given the importance of the IRS to the nation, I 

believe it is essential for me to leave the agency in a stronger 

position, with greater resources, when my term ends in November 2022.

At a time when the IRS has faced consequential resource challenges, we have taken on new responsibilities affecting almost 

every American. IRS employees’ heroic efforts during this national crisis included distributing three rounds of Economic 

Impact Payments totaling more than $800 billion as well as more than $500 billion in individual refunds since the spring of 

2020. In 2021, we were called upon to implement portions of the American Rescue Plan Act, including the provision for 

advance payments of the 2021 Child Tax Credit (CTC) to provide much needed help to eligible Americans. We issued the 

first round of more than 35 million Advance CTC payments on July 15, and further monthly payments were made through 

the end of calendar year 2021. The IRS worked hard to deliver this program quickly, efficiently, and on time. In June, we 

sent more than 36 million letters to people who may be eligible, to let them know about this benefit, and stood-up an online 

portal allowing taxpayers to make updates to their accounts or opt out from receivingthe advance CTC.

Like all federal agencies, the IRS is best able to fulfill its mission –providing the services Americans deserve and 

appropriately enforcing the tax laws – when it receives the resources it needs. We anticipate over 60 percent of our 83,000 

employees will retire within the next six years. Building back a strong workforce, augmenting taxpayer services, and 

establishing proper support functions are my top priorities - and the premise of this budget request. An appropriate level of 

consistent, multi-year funding will allow the IRS to continue enhancing the taxpayer experience,narrowing the tax gap to 

ensure equitable administration of the tax code, protecting IRS systems and taxpayer data, and modernizing our information 

technology systems. This request will address the IRS’s paper inventory, bolster our telephone level of service, and continue 

developing innovative approaches to understanding, detecting, and resolving potential noncompliance to maintain taxpayer 

confidence in the tax system. Efforts to expand the use of data, analytics, and artificial intelligence across all lanes in the 

audit process, from selection to examination will persist. 

We are making a difference and we want to continue to successfully pursue our mission on behalf of our great country.

Chuck Rettig 

Commissioner 
IRS - 4

Section I – Budget Request

A – Mission Statement

Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce 

the law with integrity and fairness to all.

1.1 – Appropriations Detail Table

Dollars in Thousands

Appropriated Resources

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

New Appropriated Resources:

Taxpayer Services 25,989 $2,587,606 27,990 $2,763,606 32,865 $3,385,723 33,041 $3,684,593 17.42% 22.51% 18.05% 33.33%

Pre-Filing Taxpayer Assistance and 

Education 4,514 657,618 5,536 720,276 5,967 803,873 6,003 866,539 7.79% 11.61% 8.44% 20.31%

Filing and Account Services 21,475 1,929,988 22,454 2,043,330 26,898 2,581,850 27,038 2,818,054 19.79% 26.36% 20.42% 37.91%

Enforcement 34,989 $5,004,622 35,604 $5,004,622 38,607 $5,861,649 38,831 $6,272,313 8.43% 17.12% 9.06% 25.33%

Investigations 3,012 678,193 2,965 667,279 3,223 785,121 3,243 838,596 8.70% 17.66% 9.38% 25.67%

Exam and Collections 30,987 4,170,886 31,615 4,160,748 34,331 4,883,575 34,530 5,228,803 8.59% 17.37% 9.22% 25.67%

Regulatory 990 155,543 1,024 176,595 1,053 192,953 1,058 204,914 2.83% 9.26% 3.32% 16.04%

Operations Support 12,037 $4,104,102 11,631 $3,928,102 11,923 $4,543,268 11,523 $3,833,734 2.51% 15.66% -0.93% -2.40%

Infrastructure 886,713 918,659 1,039,852 405,408 13.19% -55.87%

Shared Services and Support 5,122 1,046,754 5,067 1,109,740 5,183 1,200,105 4,783 1,125,014 2.29% 8.14% -5.60% 1.38%

Information Services 6,915 2,170,635 6,564 1,899,703 6,740 2,303,311 6,740 2,303,312 2.68% 21.25% 2.68% 21.25%

Business Systems Modernization 394 $222,724 308 $222,724 412 $310,027 412 $310,027 33.77% 39.20% 33.77% 39.20%

Subtotal New Appropriated Resources 73,409 $11,919,054 75,533 $11,919,054 83,807 $14,100,667 83,807 $14,100,667 10.95% 18.30% 10.95% 18.30%

Other Resources:

Reimbursables 694 98,412 585 157,000 614 164,851 614 164,851 4.96% 5.00% 4.96% 5.00%

Offsetting Collections - Non 

Reimbursables 66,504 10,000 10,500 10,500 5.00% 5.00%

User Fees 81 502,449 86 414,364 1,006 340,733 1,006 340,733 1069.77% -17.77% 1069.77% -17.77%

Recovery from Prior Years 35,304 19,476 19,476 19,476

Unobligated Balances from Prior 

Years 1,590 652,599 3,144 1,332,422 41 421,908 41 421,908 -98.70% -68.34% -98.70% -68.34%

Transfers In/Out 140 140 140

Recoveries Paid 3,398 3,398 3,398

Resources from Other Accounts4

334 138,409 460 117,243 821 146,057 34 146,057 78.48% 24.58% -92.61% 24.58%

Subtotal Other Resources 2,699 $1,493,677 4,275 $2,054,043 2,482 $1,107,063 $1,695 $1,107,063 -41.94% -46.10% -60.35% -46.10%

Total Budgetary Resources 76,108 $13,412,731 79,808 $13,973,097 86,289 $15,207,730 $85,502 $15,207,730 8.12% 8.84% 7.13% 8.84%

% Change

FY 2022 to FY 2023 

Request with Technical 

Adjustment

% Change

FY 2021

Operating Plan1, 2

FY 2022

Annualized CR3

FY 2023

Request

FY 2022 to FY 2023 

Request

1 FY 2021 Other Resources represent actuals.

3 FY 2022 Annualized CR includes an interappropriation transfer of $208 million from Enforcement to Taxpayer Services.

FY 2023

Request with Technical 

Adjustment

4

Resources from Other Accounts reflect planned spending from Private Collection Agency retained earnings.

2 FY 2021 Operating Plan includes an interappropriation transfer from Enforcement ($208 million) to Taxpayer Services ($32 million) and Operations Support ($176 million).

Note: The new appropriated resources do not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million under the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated Appropriations Act, 2021 (P.L. 116-260), and the $1.86 billion provided by the American Rescue Plan 

(ARP) (P.L. 117-2). Unobligated balances in FY 2022 and FY 2023 inlcude ARP funding.
IRS - 5

Introduction 

The Internal Revenue Service (IRS) Fiscal Year (FY)2023budget request is $14.1billion, $2.2billion(18percent) more 

than the FY 2022 Annualized Continuing Resolution (ACR) level of $11.9 billion, to administer the nation’s tax system 

fairly, collect more than$4 trillion in gross taxes to fund the government, and strengthen tax compliance. The Budget 

comprises initiatives to improve the taxpayer’s experience with the IRS, that will ultimately lead to increased voluntary tax 

compliance. The request also aims to ensure we stay current withthe paper inventory and improve telephone and in-person 

service; facilitate better oversight of high income and corporate tax returns; and accelerate the development of digital tools to 

enable smarter communication with taxpayers. In addition, the Administration continues to support a multiyear investment in 

IRS enforcement to increase tax compliance and revenues that the President has previously proposed.

An extensive enforcement program will generate and protect billions in additional revenue while reducing the tax gap. The 

IRS has an overall enforcement return on investment (ROI) of about $5for every $1 investedcompared to the IRS appropriated 

budget, excluding significant deterrence effects. Overall, this request proposes new and enhanced strategies for refininghow 

the taxpayer interacts with the IRS byimplementing strategies that put taxpayers first, bringingservices to underserved 

communities and providingnew and improved online tools for taxpayers to communicate with the IRS easily and quickly. 

An appropriate level of funding will allow the IRS to continue enhancing the taxpayer experience, narrowing the tax gap to 

ensure equitable administration of the tax code, protecting IRS systems and taxpayer data, and modernizing our information 

technologysystems. Taxpayer services is only one component of funding required to serve taxpayers effectively. During the 

pandemic, for example, the Information Technology (IT) division provided the equipment necessary to allow thousands of 

IRS customer service representatives to telework, which enabledphone assistance to continue during a period of 

overwhelming demand while keeping our employees safe. 

The IRS dedicates itself to improving the taxpayer experience so that taxpayers and their representatives can understand and 

meet their tax obligations with minimal burden. The aim is to increase voluntary compliance by simplifying the tax filing, 

correction, and payment processes. To help achieve this, we will focus on improving education and outreach on taxpayer 

rights and obligations and enhancing service channels to meet taxpayer needs. In addition to improving the taxpayer 

experience, another priority is to ensure taxpayers comply with federal tax laws. To this effect we continue to develop 

innovative approaches to understanding, detecting, and resolving potential noncompliance to maintain taxpayer confidence in 

the tax system.

The IRS expanded its taxpayer services through proactive outreach efforts to connect with underserved communities such as 

those with limited English proficiency (LEP), lower-income earners, military, veterans, retired and homeless, among other 

communities. We engaged hundreds of local and national groups, religious organizations, and numerous others to help 

contact underserved communities ensuring all eligible recipients could benefit from the Economic Impact Payments and 

Advance Child Tax Credit. We expanded communication options for LEP communities, such as releasing a Spanish version 

of Form 1040 and debuting Schedule LEP. In 2021, IRS translated 75-80percent of the most popular pages on IRS.govinto 

seven languages. 

Expanding our offerings in multiple languages is just one way the IRS is working to enhance the taxpayer experience. 

Another way is by providing new virtual services and online tools to tax professionals so they can better assist their clients. 

Enhancing the experience of taxpayers and tax professionals is essential to maintaining a voluntary tax system. Ensuring fair 

enforcement of the tax laws is just as critical as the services we provide. The IRS makes it possible for the government to 

perform its vital functions, helping fund the great work of our nation on everything from education to defense.

Though enforcement and taxpayer services efforts continue to expand, the IRS’s budget has decreased by approximately 15 

percent in real terms since FY 2010. As a result of this decrease in funding, Taxpayer Services FTEs have not increased and 

Enforcement FTEs have declined by 30percent from FY 2010 through FY 2021, while real Gross Domestic Product (GDP) 
IRS - 6

has increased by 29 percent (see Figure 1.1). Current staffing levels are close to 1974 levels (see figure 1.2 for the past 12-

year history).

Reduced FTEs have crippled tax administration bandwidth and significantly diminished the IRS’s ability to:

• Deliver meaningful customer service, 

• Maintain sufficient audit coverage of entities and individuals contributing the most to the tax gap, 

• Collect taxes taxpayers acknowledge they owe but have not paid, 

• Reduce the tax gap through a coordinated effort of both meaningful guidance and enforcement, 

• Fund the government, and 

• Modernize IT systems and facilities.

Figure 1.1
IRS - 7

Figure 1.2

Note: FTE shown are funded through IRS annual appropriations as well as through funding provided in administrative provisions and supplemental legislation passed in addition to the annual 

appropriations. In FY 2020, this includes 2,144 FTE funded through the CARES Act. In FY 2021, this includes 2,933 FTE funded through supplemental appropriations within the Consolidated 

Appropriations Act, 2021 and the American Rescue Plan.
IRS - 8

Reductions to enforcement staffing levels over the last decade factored pointedly into reduced total enforcement revenue 

collected (TERC) by around $95billion.

While a portion of the unpaid tax obligations that make up the tax gap result from a lack of knowledge or ambiguity and 

complexity in tax law, willful evasion is a significant contributing factor. The IRS could help remedy this with the funding of 

a multi-year enforcement initiative, that would include targeted investments in enforcement activities designed to increase 

revenue and lower the tax gap. The FY 2023 request and legislative proposals provide the IRS with a blueprint to address 

various facets of the tax gap. 

Figure 1.3
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Restructuring IRS Appropriations to Align Support Costs to Mission Costs

With this budget, the Administration proposes a change to the appropriations language that would allow Taxpayer Services 

and Enforcement funding to be used for certain associated support costs that are currently reserved for Operations Support 

funding. Currently, Taxpayer Services and Enforcement funding only pays for an employee’s labor cost, not the cost to hire 

the employee or the IT equipment and space neededto make them productive. There are significant benefits to this change –

future IRS budgets would reflect the full cost of Taxpayer Services and Enforcement, to include their necessary support costs. 

The changes would also prompt IRS Business Units to be more efficient with their support costs because they stand to 

directly benefit from savings.

The IRS proposes using an internal reimbursable agreement process to carry out the proposed funding structure. In FY 2023, 

rental and Chief Financial Officer (CFO) costs will be reallocated from Operations Support to Taxpayer Services and 

Enforcement with more costs planned to move out of Operations Support in the future. A total of $710 million will be shifted

from Operations Support to Taxpayer Services ($299 million) and Enforcement ($411 million) (see figure 1.4). For additional 

information, please see section D – Appropriations Language and Explanation of Changes includes a more detailed 

description and justification of this proposal.

FY 2023 

Request Rent CFO

Adjustment

Total

Proposed 

Funding Levels

3,385,723 265,830 33,040 298,870 3,684,593

5,861,649 368,613 42,051 410,664 6,272,313

4,543,268 (634,443) (75,091) (709,534) 3,833,734

310,027 310,027

Grand Total $14,100,667 - - - $14,100,667

Proposed Adjustments 

Appropriation

Taxpayer Services

Enforcement

Operations Support

Business Systems Modernization 

FY 2023 

Request Rent CFO

Adjustment

Total

Proposed 

Funding Levels

3,385,723 265,830 33,040 298,870 3,684,593

5,861,649 368,613 42,051 410,664 6,272,313

4,543,268 (634,443) (75,091) (709,534) 3,833,734

310,027 310,027

Grand Total $14,100,667 - - - $14,100,667

Proposed Adjustments 

Appropriation

Taxpayer Services

Enforcement

Operations Support

Business Systems Modernization 

Figure 1.4
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B – Summary of the Request

The IRS is responsible for administering the nation’s tax system and meeting the needs of America’s taxpayers by helping 

them understand their tax responsibilities and by enforcing the law with integrity and fairness. The IRS’s core operations 

include collection of individual and corporate taxes, examination of returns, taxpayer assistance, and oversight of tax-exempt 

organizations, as well as administering multiple refundable tax credits and other specialized programs. 

In FY 2021, the IRS collected more than$4trillion in taxes (gross receipts before tax refunds) and collects nearly all the 

revenue that supports the federal government’s operations. With the U.S. tax base becoming more complex, one of the IRS’s 

key responsibilities is to make it easier for taxpayers to understand and meet their tax obligations.

The IRS’s FY 2023 budget request is composed of strategic investments that are aligned with the President’s Management 

Agenda, as well as with mission driven efforts that will perpetuate the trajectory of the agency to better serve the taxpayer –

warrant an impartial tax system –and lessen the tax gap. The FY 2023 Budget requests a total program increase of $1.3 

billion including: 

• $320.2 million for continuing the Taxpayer First Act implementation activities;

• $469.3 million for continuing enforcement strategies that ensure a fair tax system;

• $389.1 million for implementing strategies to enhance taxpayer services;

• $78.1 million for building and enhancing IT systems that will improve taxpayer services;

• $39.5 million to enhance and increase IT operations; and

• $10.2 million to establishthe Mississippi Delta hiring initiative designed to provide job opportunities for those who 

live in underdeveloped communities and develop a pipeline of talent.

269M $4.1T $1,691 $75.0B

Federal Tax

Returns

and Forms

Processed

Collected in

Gross Taxes

Average

Individual

Refund

Enforcement

Revenue

Collected
IRS - 11

FY 2023 Budget Request and Priorities

The FY 2023request is $14.1 billion, $2.2 billion or 18.3percent more than the FY 2022 ACR of $11.9billion. The Budget 

request includes, $12.8 billionin base resources and $1.3 billion in program increases to carry out the IRS mission, including:

• Putting Taxpayers First ($320 million), 

• Ensure Fairness of the Tax System ($469 million), 

• Enhance Taxpayer Service ($389 million), 

• Integrated Modernization Business Plan ($78 million), 

• Critical IT Operations ($39 million), and 

• Focused Strategies for Reaching Underserved Communities ($10 million).

Appropriation Account (Status Quo) ($ in Millions)

Taxpayer Services $3,385.7

Enforcement 5,861.6

Operations Support 4,543.3

Business Systems Modernization 310.0

Total Appropriated Resources $14,100.7

The following appropriation levels reflect the FY 2023 proposed appropriations language change, outlined in section D, that 

charges $710 million of support costs that were historically part of Operations Support to Taxpayer Services and 

Enforcement, for costs associated with rent and the Chief Financial Officer. When consideringthe proposed request, the 

appropriation levels for the FY 2023 budget are as follows:

Appropriation Account (with Change) ($ in Millions)

Taxpayer Services $3,684.6

Enforcement 6,272.3

Operations Support 3,833.7

Business Systems Modernization 310.0

Total Appropriated Resources $14,100.7
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1.2– Budget Adjustments Table

Dollars in thousands

Bureau: Internal Revenue Service 

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 75,533 $11,919,054

Changes to Base:

Maintaining Current Levels (MCLs) $436,363

Pay Annualization (2.7% average pay raise) 62,546

Pay Raise (4.6% average pay raise) 321,837

Non-Pay 51,980

Base Adjustment 1,183 $438,882

Adjustment to Reach Current Operating Levels 1,183 438,882

Subtotal FY 2023 Changes to Base 1,183 $875,245

FY 2023 Current Services 76,716 $12,794,299

Program Changes:

Program Increases

Putting Taxpayers First 573 320,170

User Authentication 81,000

Taxpayer Experience Strategy 573 239,170

Ensure Fairness of the Tax System 2,513 469,253

Enhance Taxpayer Service 3,858 389,112

Integrated Modernization Business Plan 104 78,143

Critical IT Operations 36 39,521

Focused Strategies for Reaching Underserved Communities 7 10,169

Subtotal FY 2023 Program Increases 7,091 $1,306,368

Total FY 2023 Budget Request 83,807 $14,100,667

See footnotes in 1.1 -- Appropriations Detail Table

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. 

The adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and 

increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
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C – Base Adjustment and Program Changes Description

Maintaining Current Levels...................................................................................... +$436,363,000/ 0 FTE

Pay Annualization (2.7%) +$62,546,000 / 0 FTE

Funds are requested for annualization of the January 2022 2.7 percent average pay raise. 

Pay Raise (4.6%) +$321,837,000 / 0 FTE

Funds are requested for a 4.6 percent average pay raise in January 2023.

Non-Pay +$51,980,000 / 0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and equipment. 

Base Adjustment...........................................................................................+$438,882,000 / +1,183 FTE

The FY 2023 base begins at the FY 2022 ACR level of $11.9billion. In addition to $436 million to maintain current staffing 

levels, the base was adjusted by $439 million dollars to reach current operating funding levels.
IRS - 14

Program Increases ........................................................................................ +$1,306,368,000 / +7,091 FTE

Collectivelythe following proposed FY 2023investments total $390,808,000 with 1,832 FTE; the remaining $915,560,000 

with 5,259 FTE is made up of the carried over FY 2022 investments – which are displayed in the Program Increase Table 

below and discussed in section 4.2.

Putting Taxpayers First +$141,118,000 / +279 FTE 

Public Law 116-25, The Taxpayer First Act (TFA), requires the IRS to develop and implement a Taxpayer Experience 

Strategy (TXS) to improve the American taxpayer’s experience with the IRS. To fulfill the TXS requirement, the IRS’s 

Taxpayer First Act Office (TFAO), in partnership with key internal and external stakeholders and subject matter experts, 

identified certainareas of focus to inform the development and implementation of the TFA TXS. The FY 2023 funding 

concentrates on: 

• Expanding an application to protect taxpayers’ personallyidentifiable information, 

Bureau: Internal Revenue Service 

Summary of FY 2023 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2023 Program Increases:

Putting Taxpayers First 83,575 138 15,461 55 42,082 86 141,118 279

User Authentication 54,000 54,000

Taxpayer Experience Strategy 29,575 138 15,461 55 42,082 86 87,118 279

Ensure Fairness of the Tax System

Enhance Taxpayer Service 156,000 1,510 44,000 200,000 1,510

Critical IT Operations 39,521 36 39,521 36

Focused Strategies for Reaching Underserved Communities 10,169 7 10,169 7

Subtotal FY 2023 Program Increases $239,575 1,648 $15,461 55 $135,772 129 $390,808 1,832

FY 2022 Program Increases:

Putting Taxpayers First 40,036 54 38,870 97 100,146 143 179,052 294

User Authentication 27,000 27,000

Taxpayer Experience Strategy 13,036 54 38,870 97 100,146 143 152,052 294

Ensure Fairness of the Tax System 370,857 2,493 98,396 20 469,253 2,513

Enhance Taxpayer Service 148,167 2,348 40,945 189,112 2,348

Integrated Modernization Business Plan 78,143 104 78,143 104

Subtotal FY 2022 Program Increases $188,203 2,402 $409,727 2,590 $239,487 163 $78,143 104 $915,560 5,259

Total FY 2023 Program Increases $427,778 4,050 $425,188 2,645 $375,259 292 $78,143 104 $1,306,368 7,091

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT BSM TOTAL

Position Type/Other Costs FTE Positions $000

 User Authentication $54,000

 Contract Services 54,000

Proactive Outreach and Education 102 204 $34,439

Revenue Agent 24 48 4,785

Attorney 13 26 2,316

Other 65 130 11,126

Contract Services 16,212

Focused Strategies for Reaching 

Underserved Communities 61 122 $17,119

Other 61 122 8,119

Contract Services 9,000

Taxpayer Experience Office 67 134 $15,484

Other 67 134 15,484

 Human Resources Support 49 98 20,076

Other 49 98 20,076

Total 279 558 $141,118
IRS - 15

• Expanding strategies that increase the IRS’s outreach and taxpayer education efforts, 

• Developing strategies to reach underserved communities, and 

• Providing human resources support for implementing the TFA.

User Authentication +$54,000,000 / 0 FTE

Section 2304 of the TFA requires the IRS to verify the identity of any individual opening an IRS online account before such 

individual canuse online applications, includingonline tools for tax professionals. IRS will utilize the services of a thirdparty vendor, which charges for each new taxpayer who signs up for an IRS online account. Funding will provide 

authentication services for approximately 15 millionestimatedadditional taxpayers who will sign up for online services such 

as applying for an identity protection PIN, obtaining a transcript, viewing account information, entering into an Online 

Payment Agreement, and functionalities of the Tax Pro Account application.

Proactive Outreach and Education +$34,439,000 / +102 FTE

The optimal taxpayer experience is for taxpayers to have all the information they need to comply with their tax obligations 

without expending any additional effort. To optimize the impact of an enhanced taxpayer experience, improved outreach, and 

a better understanding by taxpayers of their obligations is foundational. Building out a system of Proactive Outreach and 

Education will allow the IRS to use various channels, languages, and personalized messaging to reach taxpayers at the right 

time through the right format. Equipping taxpayers with this information proactively minimizes the likelihood of them having 

to contact the IRS, freeing up IRS resources to address other taxpayer needs. Educating taxpayers will increase confidence in 

the agency, enable them to meet tax obligations, and enable the IRS to better anticipate and respond to taxpayer needs. The 

following are highlights of what will be accomplished with funding:

• Provide taxpayers with updates through their online accounts or push information to their mobile devices. This will 

include information on how to open online accounts andincreasing usage of self-service digital options;

• Deliver information and education through additional social media platforms:

- Capture data and analytics from platforms to understanddemographic profiles;

- Apply emerging technology that customizes messaging to the right taxpayer groups through their optimal 

platform at the right time;

• Issue simplified and improved notices;

• Analyze data to determine language translations needed for social media; and

• Use evidence-based approaches to design easy to understand plain language communications.

Focused Strategies for Reaching Underserved Communities +$17,119,000 / +61 FTE

The IRS leverages outreach relationships through two grant programs with local and national partners to educate and inform 

taxpayers about meeting their tax obligation. The Volunteer Income Tax Assistance (VITA) program provides underserved 

communities withfree tax filing assistance and aids low-to-moderate-income taxpayers who cannot prepare their own tax 

returns, including the elderly, persons with disabilities, and those with limited English proficiency. The Tax Counseling for

the Elderly Program (TCE) offers free tax counseling and assistance to elderly individuals (60 or older) in preparing their 

federal income tax returns. Additional funding will further expand IRS outreach and tax assistance services along with 

resources to address projected program staffing needs andsupport anticipated partner cultivation and growth of the two grant 

programs.
IRS - 16

Taxpayer Experience Office (TXO) +$15,484,000 / +67 FTE

In the Taxpayer First Act Report to Congress, the IRS identified as part of its key organizational structure the establishment 

of a new office designed to improve taxpayer experiences with the IRS. The Taxpayer Experience Office (TXO) drives 

strategic direction for improving the taxpayer experience across the IRS and helps ensure a consistent voice and experience 

across all taxpayer segments by developing agency-wide guidelines and expectations. Collaborating with peers across the 

entire agency, this office promotes an enterprise-level holistic view of the taxpayer experience with teams of experts in the 

areas of customer experience, research, behavioral analytics, human-centered design, and service delivery. The TXO 

provides IRS organizational units with information on industry trends and ways to apply customer service best practices 

within the framework of IRS operations and federal limitations.

Human Resources Support +$20,076,000 / +49 FTE

Funding for this initiative will continue the implementation of a service-wide training strategy, as required in section 2402 of 

the TFA. Key areas of this strategy will focus on organizational awareness, career paths, people first training, employee 

online forums, organizational liaisons, internal concierge service, and enhanced training technologies. Resources are also 

required to coordinate IRS-wide efforts for recruiting, hiring, onboarding, enabling, and training new employees to efficiently 

focus on large business, high-income and high-wealth taxpayers, partnerships, abusive crypto-currency transactions, and 

promoter-related examinations. Funding is requested to identify resource gaps, assess, and improve the way the IRS selects 

qualified individuals, and develop an integrated approach to hiring, recruitment, and training. Onboarding employees who 

have technical expertise in these areas will be critical. The IRS will also create a Center of Excellence for employee 

development that will be available to the Department as a shared service. 

Enhance Taxpayer Service +$200,000,000 / +1,510 FTE 

This investment will allow the IRS to increase the telephone level of service (LOS) to 85percent assuming phone demand 

returns to pre-pandemic levels and the IRS can provide in-person services at pre-pandemic levels. This investment will build 

on the IRS’s efforts to improve telephone services for underserved communities such as those who are deaf or hard of 

hearing, LEP communities, and victims of tax related identity theft. During the 2021 filing season, the IRS’s level of service 

fell short of its targets because of the Coronavirus (COVID-19) pandemic and legislation aimed at providing relief that 

resulted in massively increased demand for the toll-free lines. Individual and Business taxpayer telephone demand increased 

by 456 percent and 244 percent, respectively during the 2021 filing season. In FY 2021, the number of taxpayers calling to 

schedule appointments at Taxpayer Assistance Centers (TACs) was 3.9 million above the same period in the prior year.

In addition to expanding LOS for underserved communities, funding for this initiative will improve the way taxpayers 

interact with IRS by enhancing and expanding the range of modern, digital tools provided by IRS to deliver a service 

experience comparable to those available in the private sector. By empowering taxpayers to address certain needs without 

requiring live assistance, development of these tools is essential to IRS’s long-term success in satisfying taxpayer 

expectations and meeting the ongoing growth in demand for assistance. These resources will enable IRS to address strategic 

service needs, such as:

Position Type/Other Costs FTE Positions $000

Increase Telephone Level of Service 1,510 1,520 $200,000

Customer Service Rep 1,500 1,500 172,800

Manager 10 20 2,487

Contractual Services/ IT 24,713

Total 1,510 1,520 $200,000
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• Expanding the features of individual Online Account to provide more personalized content and the ability to update 

and store information used for key activities like alerts, payments and estimating withholding;

• Developing a robust Business Online Account to provide business taxpayers (and their representatives) an 

integrated online account experience that enables them to securely manage and fulfill their federal tax obligations;

• Providing critical electronic payment capabilities in light of the planned decommissioning of Direct Pay and the 

Electronic Federal Tax Payments System (EFTPS); and

• Making improvements to IRS.gov to provide a modern and consistent experience that provides taxpayers the 

information they need in a timely, searchable, and mobile-adaptive environment.

Critical Information Technology Operations +$39,521,000 / +36 FTE 

The IRS continues to transform its technological landscape and has made progress on its modernization journey to provide 

taxpayers with a seamless customer experience, while empowering employees with the tools and systems needed to provide 

top quality services and enforce tax law. These successes have increased the need to sustain critical IT operations to maintain 

optimum network performance and functionality. The IRS continues to deploy and incorporate new, modernized tools for 

taxpayers, tax professionals, and employees. Taxpayer service improvements (additional digital services, real-time account 

information, etc.), enterprise efficiency advances (automation, artificial intelligence, machine learning, etc.) and new 

employee tools (case management, collaboration, learning platforms, etc.) all require additional bandwidth to sustain a high 

volume of users processing digitalized capabilities.

Economic Development in Underserved Communities +$10,169,000 / +7 FTE

The IRS will cultivate new opportunities for adults and students in underserved communities by partnering with state labor 

and human services officials to identify talent and design training programs for adult candidates. Additionally, the IRS will 

develop a talent pipeline by partnering with colleges, universities (with a special focus on Historically Black Colleges and 

Universities and other minority servicing institutions) and high schools to design training programs to prepare participants for 

IRS careers. These partnerships will foster equitable economic growth, establish long-term federal employment options, and 

develop a continual stream of talent suited to further enhance the taxpayer experience and support the IRS mission. As a first 

step, the IRS plans to create a center in the Mississippi Delta Region, which currently has the highest rate of poverty in the 

United States, excluding the U.S. Territories.

Position Type/Other Costs FTE Positions $000

IT Specialist 36 72 7,031

Contractual Services 32,490

Total 36 72 $ 39,521

Position Type/Other Costs FTE Positions $000

Analyst 7 14 7,640

Contractual Services 2,529

Total 7 14 $ 10,169
IRS - 18

1.3– Object Classification (Schedule O) Obligations

Dollars in thousands

Internal Revenue Service

Object Classification

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

11.1 Full-Time Permanent Positions 6,106,908 6,264,496 7,105,375

11.3 Other than Full-Time Permanent Positions 86,008 93,663 98,308

11.5 Other Personnel Compensation 301,867 336,242 372,976

11.8 Special Personal Services Payments 29,681 30,239 49,677

11.9 Personnel Compensation (Total) 6,524,464 6,724,640 7,626,336

12.1 Personnel Benefits 2,400,621 2,527,702 2,881,499

13.0 Benefits to Former Personnel 20,240 13,728 14,297

Total Personnel and Compensation Benefits $8,945,325 $9,266,070 $10,522,132

21.0 Travel 69,038 75,642 141,505

22.0 Transportation of Things 23,288 23,568 37,972

23.1 Rental Payments to GSA 579,736 609,019 634,381

23.2 Rent Payments to Others 7,196 280 306

23.3 Communications, Utilities, & Misc. 317,043 298,292 346,087

24.0 Printing & Reproduction 32,307 32,421 36,108

25.1 Advisory & Assistance Services 1,021,157 695,468 1,139,330

25.2 Other Services 89,204 91,615 170,157

25.3 Purchase of Goods & Services from Govt. Accounts 155,815 172,736 194,947

25.4 Operation & Maintenance of Facilities 199,042 202,780 223,733

25.5 Research & Development Contracts

25.6 Medical Care 15,097 17,724 44,877

25.7 Operation & Maintenance of Equipment 70,123 46,150 62,282

25.8 Subsistence & Support of Persons

26.0 Supplies and Materials 32,281 28,408 34,462

31.0 Equipment 269,122 249,320 362,726

32.0 Land and Structures 32,645 45,987 76,858

33.0 Investments & Loans

41.0 Grants, Subsidies 54,000 54,000 63,000

42.0 Insurance Claims & Indemnities 2,135 2,074 2,115

43.0 Interest and Dividends

44.0 Refunds

91.0 Unvouchered 4,500 7,500 7,690

Total Non-Personnel $2,973,729 $2,652,984 $3,578,535

New Appropriated Resources $11,919,054 $11,919,054 $14,100,667

Appropriations:

Taxpayer Services 2,587,606 2,763,606 3,385,723

Enforcement 5,004,622 5,004,622 5,861,649

Operations Support 4,104,102 3,928,102 4,543,268

Business Systems Modernization 222,724 222,724 310,027

New Appropriated Resources $11,919,054 $11,919,054 $14,100,667

FTE 73,409 75,533 83,807

See footnotes in 1.1 -- Appropriations Detail Table

Note 1: This table does not include the proposed technical adjustment that would move certain support activities from Operations 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operations Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer Services 

appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Note 2: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2)
IRS - 19

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

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, associated support costs, and other 

services as authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Commissioner, $3,684,593,000; 

of which not to exceed $100,000,000 shall remain available 

until September 30, 2024; of which not less than 

$11,000,000 shall be for the Tax Counseling for the Elderly 

Program; of which not less than $26,000,000 shall be 

available for low-income taxpayer clinic grants, including 

grants to individual clinics of up to $200,000; of which not 

less than $30,000,000, to remain available until September 

30, 2024, shall be available for the Community Volunteer 

Income Tax Assistance Matching Grants Program for tax 

return preparation assistance; and of which not less than 

$235,000,000 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 $5,500,000 shall be for identity theft 

and refund fraudcasework.

Note.—A full-year 2022 appropriation for this account was 

not enacted at the time the budget

was prepared; therefore, the budget assumes this account is 

operating under the Continuing

Appropriations Act, 2022 (Division A of P.L. 117–43, as 

amended). The amounts included for

2022 reflect the annualized level provided by the 

continuing resolution.

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)), associated support costs, and to provide 

Adding “associated support costs” would allow the IRS to 

reallocate service-related support costs from Operations 

Support to Taxpayer Services, to ensure that Taxpayer 

Services reflects the full cost of delivering mission critical 

activities. See the following section titled Restructuring 

IRS Appropriations to Align Support Costs to Mission 

Costs, on page IRS-25, for more information regarding this 

proposal.

Allowing $100,000,000 to remain available until 

September 30, 2024, in the Taxpayer Services account 

provides IRS with needed relief in the event that IRS is not 

successful in hiring thousands of employees in extremely 

tight labor markets where IRS has campus facilities.

Adding “associated support costs” would allow the IRS to 

reallocate service-related support costs from Operations 

Support to Enforcement, to ensure that Enforcement 

reflects the full cost of delivering mission critical activities. 

See the following section titled Restructuring IRS 

Appropriations to Align Support Costs to Mission Costs, on 

page IRS-25, for more information regarding this proposal.
IRS - 20

other services as authorized by 5 U.S.C. 3109, at such rates 

as may be determined by the Commissioner, 

$6,272,313,000; of which not to exceed $250,000,000 shall 

remain available until September 30, 2024; of which not 

less than $60,257,000 shall be for the Interagency Crime 

and Drug Enforcement program; and of which not to 

exceed $21,000,000 shall be for investigative technology 

for the Criminal Investigation Division: Provided, That the 

amount made available for investigative technology for the 

Criminal Investigation Division shall be in addition to 

amounts made available for the Criminal Investigation 

Division under the "Operations Support" heading.

Note.—A full-year 2022 appropriation for this account was 

not enacted at the time the budget was prepared; therefore, 

the budget assumes this account is operating under the 

Continuing Appropriations Act, 2022 (Division A of P.L. 

117–43, as amended). The amounts included for 2022 

reflect the annualized level provided by the continuing 

resolution.

OPERATIONS SUPPORT

For necessary expenses to operate the Internal Revenue 

Service, including headquarters; the hire of passenger 

motor vehicles (31 U.S.C. 1343(b)); the operations of the 

Internal Revenue Service Oversight Board; and other 

services as authorized by 5 U.S.C. 3109, at such rates as 

may be determined by the Commissioner; $3,833,734,000; 

of which not to exceed $275,000,000 shall remain available 

until September 30, 2024; of which not to exceed 

$10,000,000 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, 2025, for 

research; and of which not to exceed $20,000 shall be for 

official reception and representation expenses: 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 andthe Senate and the Comptroller 

General of the United States detailing major information

technology investments in the Internal Revenue Service 

Integrated Modernization Business Plan portfolio, 

including detailed, plain language summaries on the status

of plans, costs, and results; prior results and actual 

The administrationproposes editing the following verbiage 

from the Operations Support language: For necessary 

expenses to operate the Internal Revenue 

Service, including; headquarters

This change would allow the IRS to reallocate servicerelated support costs from Operations Support to the 

mission-specific appropriations, Taxpayer Services or 

Enforcement, to reflect the full cost of delivering mission 

critical activities in those taxpayer-facing accounts. See the 

following section titled Restructuring IRS Appropriations 

to Align Support Costs to Mission Costs, on page IRS-25, 

for more information regarding this proposal.

The administrationproposes to remove the following 

statement [from the IRS FY 2023 Operations Support 

language]: “of which not less than $10,000,000, to remain 

available until expended, shall be available for 

establishment of an application through which entities 

registering and renewing registrations in the System for 

Award Management may request an authenticated 

electronic certification stating that the entity does or does 

not have a seriously delinquent tax debt,”. With the FY 

2022 enacted budget, the IRS has received $30,000,000of 
IRS - 21

expenditures of the prior quarter; upcoming deliverables 

and costs for the fiscal year; risks and mitigation strategies 

associated with ongoing work; reasons for any cost or 

schedule variances; and total expenditures by fiscal year: 

Provided further, That the Internal Revenue Service shall 

include, in its budget justification for fiscal year 2024, a 

summary of cost and schedule performance information for 

its major information technology systems.

Note.—A full-year 2022 appropriation for this account was 

not enacted at the time the budget was prepared; therefore, 

the budget assumes this account is operating under the 

Continuing Appropriations Act, 2022 (Division A of P.L. 

117–43, as amended). The amounts included for 2022 

reflect the annualized level provided by the continuing 

resolution.

BUSINESS SYSTEMS MODERNIZATION

For necessary expenses of the Internal Revenue Service's 

business systems modernization program, $310,027,000, to 

remain available until September 30, 2025, 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 major information 

technology investments in the Internal Revenue Service 

Integrated Modernization Business Plan portfolio, 

including detailed, plain language summaries on the status 

of plans, costs, and results; prior results and actual 

expenditures of the prior quarter; upcoming deliverables 

and costs for the fiscal year; risks and mitigation strategies 

associated with ongoing work; reasons for any cost or 

schedule variances; and total expenditures by fiscal year.

Note.—A full-year 2022 appropriation for this account was 

not enacted at the time the budget was prepared; therefore, 

the budget assumes this account is operating under the 

Continuing Appropriations Act, 2022 (Division A of P.L. 

117–43, as amended). The amounts included for 2022 

no year funds earmarked for this effort from since FY 

2020. The IRS is committed to completing this project and 

will use those earmarked funds to complete it. If funding 

needs arise beyond those available funds, the IRS would 

use current year funds to complete the project.
IRS - 22

reflect the annualized level provided by the continuing 

resolution.

ADMINISTRATIVE PROVISIONS-INTERNAL 

REVENUE SERVICE (INCLUDING TRANSFER OF 

FUNDS)

SEC. 101. Not to exceed 4 percent of the appropriation 

made available in this Act to the Internal Revenue Service 

under the "Enforcement" heading, and not to exceed 5 

percent of any other appropriation made available in this 

Act to the Internal Revenue Service, may be transferred to 

any other Internal Revenue Service appropriation upon 

advance notice to the Committees on Appropriations of the 

House of Representatives and the Senate: Provided, That 

an additional 2 percent of the appropriation made 

available in this Act to the Internal Revenue Service under 

the "Enforcement" heading may be transferred to the 

appropriation made available in this Act to the Internal 

Revenue Service under the "Taxpayer Services" heading 

upon advance notice to the Committees on Appropriations 

of the House of Representatives and the Senate.

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 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. The Internal Revenue Service shall issue a notice 

of confirmation of any address change relating to an 

This change will allow IRS to transfer up to 6 percent into 

the Taxpayer Services account from Enforcement in case 

this flexibility is still needed in FY 2023 to address 

inventory issues, while still retaining the existing 4 percent 

transfer authority out of Enforcement to the Operations 

Support or BSM accounts, and the existing 5 percent 

transfer authority out of any of the other accounts. 
IRS - 23

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-incompromise from a taxpayer who has been the victim of 

fraud by a third-party payroll tax preparer.

SEC. 106. 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. 107. 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. 108. 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 Agency-Wide 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. 109. None of the funds made available in this Act to 

the Internal Revenue Service may be obligated or 

expended— (1) to make a payment to any employee under a 

bonus, award, or recognition program; or (2) under any 

hiring or personnel selection process with respect to rehiring a former employee; unless such program or process 

takes into account the conduct and Federal tax compliance 

of such employee or former employee. 

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. 111. Notwithstanding any Congressional notification 

requirements for a reprogramming of funds in this Act, 
IRS - 24

funds provided in this Act for the Internal Revenue Service 

shall be available for obligation and expenditure through a 

reprogramming of funds that augments or reduces existing 

programs, projects, or activities by up to $10,000,000 

without prior Congressional notification of such action.
IRS - 25

Structural Changes to IRS Appropriations to Improve Mission Delivery and Transparency

With this Budget, the Administration proposes structural changes to IRS appropriations that would align the IRS funding for 

support activities with mission delivery activities. The current appropriations language segments many support activities into 

Operations Support. The Operation Support appropriation language specifies it must be used to fund support costs such as:

... 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 ...

By separating funding for these activities from the mission activities that they support, this structure obscures the full cost of 

delivering the IRS mission. The administration proposes a multi-year process to shift activities from Operations Support into 

the mission appropriations, so the IRS budget better reflects the full cost of its mission programs. This shift in resources 

would improve full-cost transparency, mission delivery and long-term accountability.

Challenges

The Operations Support account currently funds multiple activities that directly contribute to and ensure that IRS personnel 

funded in Enforcement and Taxpayer Service accounts can execute their missions. For example, while revenue agent salaries 

are funded in the Enforcement account, the facilities (and the resulting rent and physical security) and the computer 

equipment and systems that the agents use to conduct their work are funded in the Operations Support account. The Program 

Integrity Allocation Adjustment (PIAA), like similar proposals includedin previous budgets provides anillustrative example 

–its mission is solely focused on tax law enforcement, but a third of its funds were needed in the Operations Support 

appropriation. Aligningthese support costs in the mission appropriation would better reflect the full cost of those mission 

programs –providing improved transparency.

The effect of the current language as written is that Taxpayer Services and Enforcement fund mostly salaries and benefits, 

while Operations Support funds most other costs. This distortion is apparent when comparing the relative amounts of IRS 

labor and nonlabor in Taxpayer Services and Enforcement (91percent labor) to Operations Support (45percent labor) in this 

budget.

Figure 1.5
IRS - 26

The separation between IRS labor and its associated, often non-labor, support complicates efficiency tradeoffs and creates 

prioritizationchallenges. For example, the IRS must prioritize Operations Support funding for IT investment requests coming 

from different business units. If the funding of these activities came from the business units’ appropriations, which is a 

long-term goal of this project, they could potentially contribute from their own funding –allowing business units to invest in 

IT to deliver ontheir mission. 

The reimagined IRS under the Taxpayer First Act calls for modernization and technology enhancements to advance the IRS 

into the 21st century with more user-friendly electronic interactions, secure digital accounts, and self-service options. This 

mandate continues the growth trend of IT, currently funded exclusively by Operations Support and Business Systems 

Modernization (BSM), even as IT becomes increasingly intertwined with IRS operations. The costs of maintaining aged 

information systems, complying with cybersecurity mandates, and implementing other mandates, drive further growth. 

Orienting funding by mission appropriation would alsoimprove business unit leaders’ ability to allocate resources to their 

highest priority needs. It would improve the alignment between performance metrics for the units and their funding. By 

making business unit leaders directly responsible for the funding, and by extension the performance of their programs, these 

changes make leaders more accountable to Congress and the American public.

Remedy

To address this problem, the administrationproposes changes to its appropriations language and an attendant shift between 

appropriations. The specified appropriation language changes would allow IRS to fund certain support activities from 

Taxpayer Services and Enforcement appropriations using cost pools. Cost pools would be created using IRS internal 

reimbursable arrangements. For FY 2023, the Administration proposes to implement the capability by funding Rent and CFO 

Services from the mission appropriations. We expect the change would result in more efficient use of IRS resources and 

constitute progress towards implementing cost pools for additional support activities, including IT.

Implementing cost pools for IT, a future goal for this effort, would allow IRS leaders to make tradeoff decisions to fund key 

technology enhancements. Such enhancements would allow the IRS to accomplish its mission to provide American taxpayers 

with top quality service in understanding and meeting their tax responsibilities and to apply the tax law with integrity and 

fairness for all. For example, an Enforcement activity could deploy IT robotic process automation to reduce its time to close a 

Budget Activity FY 2023 Request Rent CFO

Proposed 

Funding

Pre-Filing Taxpayer Assistance & Education 804 56 7 867

Filing & Account Services 2,582 210 26 2,818

Taxpayer Services 3,386 266 33 3,685

Investigations 785 50 4 839

Exam & Collections 4,883 308 37 5,228

Regulatory 193 11 1 205

Enforcement 5,861 369 42 6,272

Infrastructure 1,040 (635) - 405

Shared Services & Support 1,200 - (75) 1,125

Information Services 2,304 - - 2,304

Operations Support 4,544 (635) (75) 3,834

Business Systems Modernization 310 - - 310

Business Systems Modernization 310 - - 310

Grand Total 14,101 - - 14,101

Proposed Changes 
IRS - 27

case by providing its own enforcement funds to IT to fund the automation effort. Currently, such an innovation would have to 

be prioritized with all other Operation Support costs.

Incremental Transition

The IRS plans and proposes to incrementally transition from its current structure to the new, full-cost focused mission 

appropriations and a significantly reduced Operations Support appropriation over the next three years. This gradual transition 

would provide time to test associated business processes, such as assigning or allocating shared costs from multiple business

units to cost pools and implement updates to the accounting system before requesting additional funding shifts from 

Operations Support. Activities are currently expected to include: 

• Information Technology, 

• Communications, 

• Facilities Management, 

• Human Capital Organization, 

• Enterprise Change and Innovation, 

• Procurement,

• Chief Financial Officer,

• Printing and Postage, and 

• Other shared services.

While much is expected to be shifted, the IRS requests to retain the Operations Support appropriation to fund certain support 

activities, such as the National Headquarters costs incurred for IRS leadership.

With the noted appropriation changes, the IRS is targeting to shift the full costs of the missions to their respective 

appropriation by FY 2025. To accomplish this, the IRS plans to shift more functions and funds from the Operations Support 

appropriation to the Taxpayer Service and Enforcement appropriations going forward. 
IRS - 28

E – Legislative Proposals

For information on the FY 2023 revenue legislative proposals, please follow this link:https://home.treasury.gov/policyissues/tax-policy/revenue-proposals

Reduce Paperwork Burden by Permanently Authorizing Current Home to Work Transportation for the IRS Commissioner

The IRS requests that the IRS Commissioner position be permanently added to 31 U.S.C. § 1344(b)(6) as one of the 

government officials authorized home-to-work transportation. The IRS Criminal Investigations unit completed an extensive 

assessment of the Commissioner’s threat environment and has classified the threat status as high. 

PROPOSAL: 

Amend Title 31 U.S.C. § 1344(b)(6) to include “the Commissioner of Internal Revenue” as a federal executive with 

authorization for passenger carrier transportation between residence and place of employment. 

REASONS FOR CHANGE:

As head of one of the most controversial organizations in the Federal government, the Commissioner is the “face of the IRS” 

and a frequent fixture in national media. Historically, Commissioners average multiple formidable threats per year directed at 

them and their family members, including threats of assassination. The internet has allowed anyone with a web browser to 

access personal information of government officials, including photos and home addresses. Instances of individuals phoning, 

mailing, or visiting a Commissioner’s residence, including the current Commissioner, are common and well documented. 

Dignitary protection experts have long recognized the vulnerability of protected individuals who are engaged in predictable

activities, such as commuting to/from the workplace andfor many years IRS Criminal Investigation Division (CI) has 

consistently provided transportation for the IRS Commissioner from Home to Work under recurring 90-day authorizations. 

The administrative burden of compiling, organizing, and summarizing the information required for the recurring90-day 

Home to Workauthorizations is significant, requiring executive approval from IRS’s Chief of Criminal Investigations, 

Treasury’s Assistant Secretary for Management, and the Secretary of the Treasury.

Fund the Federal Payment Levy Program via Collections (proposal also included in the Fiscal Service CJ)

Estimated costs: $220 million in Fiscal Service costs to operate the Tax Levy Program in the Treasury Offset Program over 

10 years. Fiscal Service is currently being reimbursed for this cost from IRS appropriated funding. 

This proposal improves the way the Fiscal Service collects its reimbursement from IRS to cover Fiscal Service’s costs in 

developing and operating the Federal Payment Levy Program (FPLP), which utilizes the Treasury Offset Program to process 

levies of federal payments to collect delinquent tax debts. Under the Economy Act, the IRS pays fees to Fiscal Service from 

the IRS annual discretionary appropriation. This proposal authorizes Fiscal Service to recover its costs from levy collections, 

rather than from IRS’s direct appropriation, which reduces administrative and overhead costs for both Fiscal Service and IRS. 

It would also allow IRS to re-direct the use of appropriated dollars that are currently needed to fund FPLP to other initiatives 

that will aid in the collection of delinquent tax debt.
IRS - 29

Section II – Budget and Performance Plan

A – Strategic Alignment

The IRS is developing its FY 2022 –2026 Strategic Plan to serve as a roadmap to help guide its programs and operations. 

IRS’s strategic priorities align with Treasury’s FY 2022 – 2026 strategic priorities to improve the taxpayer experience, 

enforce the tax law fairly and efficiently, foster a diverse workforce and transform our operations to be more sustainable and 

efficient. The IRS Strategic Plan will be published by Spring 2022.

This budget supports the following Treasury Strategic Objectives for FY 2022 – FY 2026 and Agency Priority Goals for FY 

2022- FY 2023 for all appropriations:

IRS co-leads the following objective with the Department Office of Tax Policy:

Goal 1: Promote Equitable Economic Growth and Recovery 

• Objective 1.1 Tax Administration and Policy

IRS supports the following eight objectives:

Goal 2: Enhance National Security

• Objective 2.1 Cyber Resiliency of Financial Systems and Institutions

• Objective 2.4 Transparency in the Financial System

Goal 3: Protect Financial Stability and Resiliency 

• Objective 3.3 Financial Innovation

Goal 4: Combat Climate Change

• Objective 4.4 Sustainable Treasury Operations

Goal 5: Modernize Treasury Operations 

• Objective 5.1 Recruit and Retain Diverse and Inclusive Workforce

• Objective 5.2 Future Work Routines

• Objective 5.3 Better Use of Data 

• Objective 5.4 Customer Experience Practices

Agency Priority Goals (APGs): IRS supports the Bureau of Fiscal Service’s Improving the Payment Experience APGs for 

FY 2022 – FY 2023.

Bureau of Fiscal Service Improving the Payment Experience: Create a modern, seamless, inclusive, and secure Federal 

payment experience for the public that meets customer needs while reducing costs, expanding financial inclusion, and 

improving climate sustainability of Treasury’s operations. By September 30, 2023, Treasury will:

• Increase the electronic payment rate for Treasury-disbursed payments to 96.56% by the end of FY 2023, compared 

with 96.18% in FY 2021; and

− Achieving this increased electronic payment rate would lead to an estimated reduction of 4.8 million 

checks. (Assuming FY 21 payment volume data, which excludes Economic Impact Payments and Advance Child Tax Credit 

payments) Note: Future legislation related to payment processing may impact these target measures.
IRS - 30

• Increase the electronic payment rate for IRS individual tax refunds to 81.00% by the end of FY 2023, compared 

with 80.34% in FY 2021.

Accomplishments and Priorities

IRS’s FY 2021 accomplishments include: 

• Launched the Child Tax Credit Update Portal in support of the American Rescue Plan;

• Identity Protection PIN program was expanded to all 50 states, the District of Columbia, Puerto Rico, Virgin 

Islands, and military personnel living overseas in January 2021, fully implementing the requirements of the 

Taxpayer First Act Provision Section 2005 three-years earlier than requested;

• Registered over 169,000 taxpayers with Secure Access Virtual Assistant, resulting in a savings of over $11 million;

and,

• Expanded electronic processing of amended returns to include a direct deposit of refunds in support of the of 

reducing paper checks APG.

FY 2023 IRS Initiatives 

The following are IRS’s FY 2023 strategic priorities with initiatives to support Treasury’s goals and objectives. IRS rolled 

over FY 2022 initiatives Putting Taxpayers First, Ensure Fairness of the Tax System, and Integrated Modernization Business 

Plan.

• Putting Taxpayers First initiative will support the following Treasury Strategic Objectives: 1.1 - Tax Administration 

and Policy, 2.1 - Cyber Resiliency of Financial Systems and Institutions, 3.3 - Financial Innovation, 5.1 - Recruit 

and Retain a Diverse and Inclusive Workforce, 5.3 - Better Use of Data, and 5.4 - Customer Experience Practices. 

• Ensure Fairness of the Tax System initiative will support Treasury Strategic Objectives: 1.1 - Tax Administration 

and Policy and 2.4 - Transparency in the Financial System.

• Enhance Taxpayer Experience initiative will support Treasury Strategic Objectives: 1.1 - Tax Administration and 

Policy and 5.4 - Customer Experience Practices. 

• Integrated Modernization Business Plan initiative will support Treasury Strategic Objectives: 1.1- Tax 

Administration and Policy, 3.3 - Financial Innovation, 5.2 - Future Work Routines, 5.3 - Better Use of Data, and 5.4 

- Customer Experience Practices. 

• Augment IT Operations initiative will support Treasury Strategic Objective: 1.1 - Tax Administration and Policy.

• Economic Development in Underserved Communities initiative will support Treasury Strategic Objective: 1.1 - Tax 

Administration and Policy and 5.1 - Recruit and Retain a Diverse and Inclusive Workforce.


IRS - 31

Taxpayer Services

Appropriation Description

The Taxpayer Services appropriation provides funding for taxpayer service activities and programs. This includes printing 

forms and publications, processing tax returns and related documents, offering filing and account services, taxpayer 

assistance, providing taxpayer advocacy services, and supporting activities. 

The Taxpayer Services budget request for FY 2023is $3,385,723,000 in direct appropriations and 32,865 FTE, excluding the 

proposed technical adjustment. This amount is an increase of $622,117,000or 22.51 percent, and an increase of 4,875 FTE, 

or 17.42percent from the FY 2022 ACR of $2,763,606,000 and 27,990 FTE.

2.1 – Budget Adjustments Table

Dollars in thousands

Taxpayer Services

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 27,990 $2,763,606

Changes to Base:

Maintaining Current Levels (MCLs) $108,631

Pay Annualization (2.7% average pay raise) 17,105

Pay Raise (4.6% average pay raise) 88,016

Non-Pay 3,510

Base Adjustment 825 $90,285

Adjustment to Reach Current Operating Levels 825 90,285

Subtotal FY 2023 Changes to Base 825 $198,916

FY 2023 Current Services 28,815 $2,962,522

Program Changes:

Program Increases

Putting Taxpayers First 192 119,034

User Authentication 81,000

Taxpayer Experience Strategy 192 38,034

Enhance Taxpayer Service 3,858 304,167

Subtotal FY 2023 Program Increases 4,050 $423,201

Total FY 2023 Budget Request 32,865 $3,385,723

See footnotes in 1.1 -- Appropriations Detail Table

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. 

The adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and 

increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
IRS - 32

2.2 – Object Classification Obligations

Dollars in thousands

Taxpayer Services

Object Classification

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

11.1 Full-Time Permanent Positions 1,599,164 1,668,445 1,991,237

11.3 Other than Full-Time Permanent Positions 53,855 67,240 70,141

11.5 Other Personnel Compensation 122,409 149,810 166,410

11.8 Special Personal Services Payments 9,750 10,154

11.9 Personnel Compensation (Total) 1,775,428 1,895,245 2,237,942

12.1 Personnel Benefits 576,632 625,520 762,029

13.0 Benefits to Former Personnel 19,887 13,334 13,887

Total Personnel and Compensation Benefits $2,371,947 $2,534,099 $3,013,858

21.0 Travel 5,162 5,966 10,668

22.0 Transportation of Things 671 599 611

23.1 Rental Payments to GSA

23.3 Communications, Utilities, & Misc. 1,290 1,258 1,285

24.0 Printing & Reproduction 9,791 9,783 10,437

25.1 Advisory & Assistance Services 45,729 55,802 139,505

25.2 Other Services 25,190 27,032 49,534

25.3 Purchase of Goods & Services from Govt. Accounts 68,677 70,401 76,079

25.7 Operation & Maintenance of Equipment 51 51 52

26.0 Supplies and Materials 4,209 3,872 4,461

31.0 Equipment 400 254 374

41.0 Grants, Subsidies 54,000 54,000 63,000

42.0 Insurance Claims & Indemnities 489 489 498

Total Non-Personnel $215,659 $229,507 $371,864

New Appropriated Resources $2,587,606 $2,763,606 $3,385,723

Budget Activities:

Pre-filing Taxpayer Assistance & Education 657,618 720,276 803,873

Filing & Account Services 1,929,988 2,043,330 2,581,850

New Appropriated Resources $2,587,606 $2,763,606 $3,385,723

FTE 25,989 27,990 32,865

See footnotes in 1.1 -- Appropriations Detail Table

Note 1: This table does not include the proposed technical adjustment that would move certain support activities from Operations 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operations Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer Services 

appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Note 2: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2)
IRS - 33

2.3 – Appropriation Detail Table 

2A – Pre-Filing Taxpayer Assistance and Education ($803,873,000 in direct appropriations and an estimated $201,000 in 

reimbursable programs): This budget activity funds direct labor and some non-labor expenses to assist with tax return 

preparation, including tax law interpretation, publication, production, and advocate services. The program activities include: 

• Pre-Filing Services Management supports headquarters staffing and support for Taxpayer Advocate Service and 

Customer Assistance Relationship and Education (CARE) program activities. CARE provides pre-filing taxpayer 

assistance and education. 

• Taxpayer Communication and Education researchcustomer needs; develops and manages educational programs; 

establishes partnerships with stakeholder groups; and disseminates tax information to taxpayers and the public 

through a variety of media, including publications and mailings, websites, broadcasting, and advertising. 

• Media and Publications develops and produces notices, forms, and publications for printed and electronic tax 

materials, and provides media production services to taxpayers. 

• Taxpayer Advocacy provides advocate services to taxpayers by identifying the underlying causes of taxpayer 

problems and participating in the development of systematic and/or procedural remedies. 

• Account Management and Assistance – Field Assistance provides face-to-face assistance, education, and 

compliance services to taxpayers. It includes return preparation, answering tax questions, resolving account and 

notice inquiries, and supplying forms and publications to taxpayers. 

• Taxpayer Advocate Case Processing provides advocate services to taxpayers to resolve taxpayer problems through 

prompt identification, referral, and settlement. 

• Wage and Investment (W&I) HQ Management and Administration provides staffing, training, and direct support 

for W&I management activities of strategic planning, communications and liaison, finance, human resources, 

equity, diversity and inclusion, business modernization, and embedded training. 

Dollars in thousands

Taxpayer Services

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Pre-Filing Taxpayer Assistance and Education 4,514 657,618 5,536 720,276 5,967 803,873 431 83,597 7.79% 11.61%

Filing and Account Services 21,475 1,929,988 22,454 2,043,330 26,898 2,581,850 4,444 538,520 19.79% 26.36%

Subtotal New Appropriated Resources 25,989 $2,587,606 27,990 $2,763,606 32,865 $3,385,723 4,875 $622,117 17.42% 22.51%

Other Resources:

Reimbursables 514 39,449 429 45,000 450 47,250 21 2,250 4.90% 5.00%

Offsetting Collections - Non Reimbursables 6,281

User Fees 71 64,900 71 78,900 991 78,900 920 1295.77%

Recovery from Prior Years 21,760 7,268 7,268

Unobligated Balances from Prior Years 877 190,789 3,100 276,216 (3,100) (276,216) -100.00% -100.00%

Transfers In/Out

Recoveries Paid 4 4

Resources from Other Accounts 1 50

Subtotal Other Resources 1,463 $323,229 3,600 $407,388 1,441 $133,422 (2,159) ($273,966) -59.97% -67.25%

Total Budgetary Resources 27,452 $2,910,835 31,590 $3,170,994 34,306 $3,519,145 2,716 $348,151 8.60% 10.98%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

FY 2022 to FY 2023 

Request

FY 2022 to FY 2023 

Request

The new appropriated resources in this table do not include the proposed technical adjustment that would move certain support activities from Operation Support and charge the 

full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment would reduce the Operation Support appropriation by $709.5 million 

for rent and CFO adjustments and increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.6 million.
IRS - 34

• Taxpayer Services Research provides resources to support taxpayer services by conducting taxpayer behavioral 

studies, data analysis, and uses advanced analytics to deliver results and conclusions to inform business decisions to 

improve IRS products and services. 

• National Distribution Center processes orders for IRS forms and publications received from individual taxpayers, 

tax practitioners, and IRS tax return preparation partners. 

Description of FY 2021 Performance – Pre-Filing and Taxpayer Assistance

In FY 2021, the Timeliness of Critical Individual Filing Season (CIFS) Tax Products to the Public (i.e., tax forms, schedules, 

instructions, and publications) was 92 percent (81 out of 88 products delivered timely), exceeding the FY 2021 target of 

85percent. This accomplishment was partially due to the enactment of the P.L. 116-260, Consolidated Appropriations Act of 

2021, which determined the February 12 filing season start date. The legislation provided more time to meet the annual goal. 

Additional factors that contributed to exceeding this year’s target and are proven models for future success include 

prioritizing work on the release of critical products; planning for legislative changes to quickly re-prioritize work targeted to 

critical products impacted by the law; granting of overtime, credit, and compensatory time during workdays, weekends, and 

holidays; and workload planning and monitoring by management as well as the efforts of our employees. The IRS expects to 

achieve a target of 89 percent for FY 2022 and FY 2023. 

In FY 2021, the IRS Timeliness of Critical Tax TE/GE and Business (CTB) Filing Season Tax products to the Public was 

92.9 percent, exceeding the target of 85 percent. These results were achieved due to the enactment of the P.L. 116-260, 

Consolidated Appropriations Act of 2021, which determined the February 12 filing season start date. The legislation provided 

more time to meet the annual goal. Additional factors that contributed to exceeding this year’s target and are proven models 

for future success include prioritizing work on the release of critical products; planning for legislative changes to quickly 

reprioritize work targeted to critical products impacted by the law; granting of overtime, credit, and compensatory time 

during workdays, weekends, and holidays; and workload planning and monitoring by management as well as the efforts of 

our employees. The IRS expects to achieve a target of 89 percent for FY 2022 and FY 2023.

Figure 2.1
IRS - 35

The Enterprise Self-Assistance Participation Rate (ESAPR) represents the percent of taxpayers whouse one of the IRS’s selfassistance service channels (e.g., automated calls, web services) versus needing support from an IRS employee (e.g., face-toface, over the phone, or via paper correspondence). The FY 2021 ESAPR was 92.3 percent, exceeding the target by 

3.7percent. The web services that had the largest percent change are: Where’s My Amended Return (226.4 percent); Online 

Accounts Sessions (117.8 percent); and Get Transcripts Online (108.1 percent). Compared to FY 2020, total services 

increased by36.4 percent, self-assisted services increased by 38.9 percent and assisted services rose 12.4 percent. In FY 

2022, IRS will update the existing Online Payment Agreements (OPA) and Installment Agreements (IA) applications to 

include business taxpayers andinclude a new chatbot application for OPAs and IAs for small business andself-employed 

taxpayers. The IRS expects to achieve a target of 91 percent for FY 2022 and 91 percent for FY 2023.

FY 2023 Changes by Budget Activity

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FTE Amount

FY 2022 Annualized CR (ACR) 5,536 $720,276

Changes to Base:

Maintaining Current Levels (MCLs) $26,645

Pay Annualization (2.7% average pay raise) 4,185

Pay Raise (4.6% average pay raise) 21,536

Non-Pay 924

Base Adjustment $5,952

Adjustment to Reach Current Operating Levels 5,952

Subtotal FY 2022 Changes to Base $32,597

FY 2022 Current Services 5,536 $752,873

Program Increases:

Putting Taxpayers First 81 17,649

Taxpayer Experience Strategy 81 17,649

Enhance Taxpayer Service 350 33,351

Subtotal FY 2023 Program Increases 431 $51,000

Total FY 2023 Request 5,967 $803,873

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 431 $83,597

Percent Change FY 2023 Request over FY 2022 ACR 7.79% 11.61%

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The 

adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the 

Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
IRS - 36

2.1.1 – Budget and Performance Report and Plan 

2B – Filing and Account Services

($2,581,850,000 in direct appropriations, $47,049,000 from reimbursable programs, and $78,900,000 from user fees): This 

budget activity funds direct labor and non-labor expenses that provide filing and account services to taxpayers, process paper 

and electronically submittedtax returns, issue refunds, and maintain taxpayer accounts. The public continues to file more

returns electronically (approximately93.6percent of individual returns were filed electronically during the 2021filing 

season). The program activities include:

• Filing and Account Services Management administers filing and account services programs. 

• Submission Processing processes paper and electronically submitted tax returns and supplemental documents, 

accounts for tax revenue, processes information documents, and issues refunds and tax notices. 

• Account Management and Assistance – Electronic/Correspondence Assistance provides education and assistance to 

taxpayers and resolves accounts and notice inquiries through telephone, paper, and internet correspondence. 

• Electronic Products and Services Support (EPSS) provides centralized operations and support capabilities for the 

IRS suite of electronic products, including e-help desk, technology support, and operations support. 

• Electronic Tax Administration (ETA) markets and administers electronic tax administration products and services. 

• Business Performance Lab initiates, recommends, and manages systemic solutions for the detection and treatment 

of improper refunds while ensuring effective treatment for payment of valid refund claims, leads the development 

of innovative business processes and technology solutions and represents ReturnIntegrity & Compliance Services 

(RICS) interest in support of the service-wide revenue protection strategy.

• Health Care Tax Administration provides funds to administer the health insurance tax credit portion of the Trade 

Adjustment Assistance Reform Act of 2002. 

• Joint Operations Center (JOC) provides service, support, and technology for telephone, correspondence, and 

electronic media inquiries; real time monitoring and routing of inbound calls; monitoring of Customer Service 

Representative (CSR) accuracy; and management of the enterprise telephone database. 

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources1 $594,962 $640,379 $621,907 $632,893 $658,344 $720,276 $803,873

Reimbursable Resources2 4 260 118 578 142 191 201

User Fees2

Budget Activity Total $594,966 $640,639 $622,025 $633,471 $658,486 $720,467 $804,074

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

Pre-Filing Taxpayer Assistance & Education FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measure Actual Actual Actual Actual Actual Target Target Target

Timeliness of Critical Filing Season Tax Products to the Public 

(Ot, L) 93.1% 59.6% 92.6% 78.4% 92.0% 85.0% 89.0% 89.0%

Timeliness of Critical TE/GE & Business Tax Products to the 

Public (Ot, L) 96.7% 100.0% 96.1% 96.0% 92.9% 85.0% 89.0% 89.0%

Enterprise Self Assistance Participation Rate (E, L)3 79.0% 82.0% 85.4% 90.6% 92.3% 89.0% 91.0% 91.0%

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure

3

In FY 2017, the IRS renamed the Taxpayer Self Assistance Rate measure to Enterprise Self Assistance Participation Rate.
IRS - 37

Description of FY 2021 Performance – Filing and Account Services

In FY 2021, Customer Accuracy – Tax Law, the IRS answered 92.8 percent of tax law questions over the telephone correctly,

exceeding the target of 90.0percent by 3.1 percent. IRS will continue to monitor results through data-driven analysis of 

reports to achieve future goals. Ongoing efforts have and will continue to focus on production meetings with field sites, 

promoting coding consistency of product reviews, and providing training to managers and employees to ensure quality 

service to customers. For FY 2022 and FY 2023, the IRS set the Tax Law Accuracy target at 89.0percent. 

For Customer Accuracy – Accounts, the IRS answered 93.0percent of account questions over the telephone correctly, 

exceeding the FY 2021 target of 91.0percent. IRS will continue to monitor results through data-driven analysis of reports to 

achieve future goals. Ongoing efforts have and will continue to focus on production meetings with field sites, promoting 

coding consistency of product reviews, and providing training to managers and employees to ensure quality service to 

customers. For FY 2022 and FY 2023, the IRS set the Accounts Accuracy target at 89.0percent.

The Customer Service Representative (CSR) Level of Service (LOS) measures the relative success rate of taxpayers wanting 

to speak with a CSR. In FY 2021, CSR LOS was 18.5 percent, falling short of the 32.0percent target. New legislation 

resulted in added, unplanned demand for toll-free assistance. Compared to FY 2020, total assistor demand was up more than 

200.0 percent, with some lines seeing increases of more than 2 million calls. Despite these challenges, the IRS was able to 

answer 3.8 million more calls in FY 2021 than the prior year. The IRS will continue to monitor demand in real time and shift 

staff between telephones and paper processing to address demand. During the pandemic, IRS processed more than 450 

million Economic Impact Payments and over 200 million advance payments of the Child Tax Credit. Prioritizingpandemic 

response, combined with pandemic disruptions to on-site work, delayed tax return processing, taxpayer correspondence, and 

other critical services, resulting in unprecedented increases in correspondence inventory levels. As a result, the IRS lowered

its FY 2022 LOS target to 30.0percent, in order, to devote more resources towards processingcorrespondence inventory. 

With the additional resources requested inthis budget, the IRS will increase the FY 2023 LOS target to 85.0percent

assuming phone demand returns to pre-pandemic levels the IRS can provide in-person services at pre-pandemic levels andas 

inventories are expected toreach normal levels.

Figure 2.2
IRS - 38

The Taxpayers Satisfied with the IRS indicator, the All-Individual Tax Filers Score, is based on the annual American 

Customer Satisfaction Index (ACSI) Survey, which is the only uniform, cross-industry/government measure of customer 

satisfaction with the quality of goods and services available to U.S. residents. The measure is calculated as a weighted 

combination of the ACSI Individual Electronic Tax Filer and Individual Paper Tax Filer Customer Satisfaction Index scores 

based on a 100-point scale. The Taxpayers Satisfied with the IRS measure declined four points in 2021 to 70as shown above, 

due to a statistically significant decrease in the electronic filer score, following impacts from the COVID-19 pandemic.

Figure 2.3
IRS - 39

FY 2023 Changes by Budget Activity

Dollars in thousands

Filing and Account Services FTE Amount

FY 2022 Annualized CR (ACR) 22,454 $2,043,330

Changes to Base:

Maintaining Current Levels (MCLs) $81,986

Pay Annualization (2.7% average pay raise) 12,920

Pay Raise (4.6% average pay raise) 66,480

Non-Pay 2,586

Base Adjustment 825 $84,333

Adjustment to Reach Current Operating Levels 825 84,333

Subtotal FY 2023 Changes to Base 825 $166,319

FY 2023 Current Services 23,279 $2,209,649

Program Increases:

Putting Taxpayers First 111 101,385

User Authentication 81,000

Taxpayer Experience Strategy 111 20,385

Enhance Taxpayer Service 3,508 270,816

Subtotal FY 2023 Program Increases 3,619 $372,201

Total FY 2023 Request 26,898 $2,581,850

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 4,444 $538,520

Percent Change FY 2023 Request over FY 2022 ACR 19.79% 26.36%

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The 

adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the 

Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
IRS - 40

2.1.2 – Budget and Performance Report and Plan

Dollars in thousands

Filing and Account Services FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources1 $1,564,488 $1,712,511 $1,872,175 $1,901,467 $1,927,220 $2,043,330 $2,581,850

Reimbursable Resources2 30,147 34,905 62,794 72,769 39,307 44,809 47,049

User Fees2 40,553 69,987 3,900 64,900 78,900 78,900

Budget Activity Total $1,635,188 $1,817,403 $1,938,869 $1,974,236 $2,031,427 $2,167,039 $2,707,799

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

Filing and Account Services FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measures Actual Actual Actual Actual Actual Target Target Request

Customer Accuracy - Tax Law (Phones) (Ot) 96.7% 95.5% 91.6% 91.0% 92.8% 90.0% 89.0% 89.0%

Customer Accuracy - Accounts (Phones) (Ot) 96.0% 96.1% 94.3% 93.5% 93.0% 91.0% 89.0% 89.0%

Customer Service Representative (CSR) Level of Service (LOS) (Oe)3 77.1% 75.9% 65.4% 53.1% 18.5% 32.0% 30.0% 85.0%

Taxpayers Satisfied with the IRS (based on a 100 point scale) (Ot, L)4 74 74 73 74 70 Indicator Indicator Indicator

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure

3

The CSR LOS includes toll-free telephone lines answered by Accounts Management assistors only. These lines service 82 percent of all telephone traffic. Achieving the FY 2023 LOS 

target of 85 percent requires timely enactment of appropriations so the IRS can complete hiring and training ahead of the filing season and assumes that demand and in person services 

return to pre-pandemic levels. The IRS’s Automated Collection System (ACS) toll-free line is used by taxpayers for compliance related inquiries. For FY 2021, the ACS LOS was 37.8 

percent. These are both included in the Enterprise LOS, which measures the relative success rate of taxpayers calling to speak with an IRS Assistor on any IRS toll-free telephone line. 

The Enterprise LOS in FY 2021 was 21.3 percent.

4

Based on the American Customer Satisfaction Index (ACSI) survey; the All-Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and Electronic Filer customer 

satisfaction index scores; available on an annual basis at the end of January and computed on a 100-point scale. 


IRS - 41

Enforcement

Appropriation Description 

The Enforcement appropriation provides funding for the examination of tax returns, both domestic and international; 

administrative and judicial settlement of taxpayer appeals of examination findings; technical rulings; monitoring of employee

pension plans; determination of qualifications of organizations seeking tax-exempt status; examination of tax returns of 

exempt organizations; enforcement of statues relating to detection and investigation of criminal violations of the internal 

revenue laws; identification of underreporting of tax obligations; securing of unfiled tax returns; collection of unpaid 

accounts; and supporting activities. 

The Enforcement budget request for FY 2023is $5,861,649,000 in direct appropriations and 38,607 FTE, excluding the 

proposed technical adjustment. This amount is an increase of $857,027,000or 17.12 percent, and 3,003 FTE or 8.43 percent

more than the FY 2022 ACR of $5,004,622,000 and 35,604 FTE. It is important to note, as mentioned in the introduction, 

although not included in the request, the IRS along with the Administration are still committed to the attainment of multi-year 

funding for an extensive enforcement program initiative that will generate and protect billions of dollars in additional revenue 

while reducing the tax gap.
IRS - 42

2.1 – Budget Adjustments Table

Dollars in thousands

Enforcement

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 35,604 $5,004,622

Changes to Base:

Maintaining Current Levels (MCLs) $202,663

Pay Annualization (2.7% average pay raise) 32,228

Pay Raise (4.6% average pay raise) 165,832

Non-Pay 4,603

Base Adjustment 358 $229,176

Adjustment to Reach Current Operating Levels 358 229,176

Subtotal FY 2023 Changes to Base 358 $431,839

FY 2023 Current Services 35,962 $5,436,461

Program Changes:

Program Increases

Putting Taxpayers First 152 54,331

Taxpayer Experience Strategy 152 54,331

Ensure Fairness of the Tax System 2,493 370,857

Subtotal FY 2023 Program Increases 2,645 $425,188

Total FY 2023 Budget Request 38,607 $5,861,649

See footnotes in 1.1 -- Appropriations Detail Table

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. 

The adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and 

increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
IRS - 43

2.2 – Object Classification Obligations

Dollars in thousands

Enforcement

Object Classification

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

11.1 Full-Time Permanent Positions 3,130,581 3,206,471 3,629,712

11.3 Other than Full-Time Permanent Positions 26,773 21,384 22,901

11.5 Other Personnel Compensation 145,294 145,755 162,644

11.8 Special Personal Services Payments 29,500 19,739 38,741

11.9 Personnel Compensation (Total) 3,332,148 3,393,349 3,853,999

12.1 Personnel Benefits 1,327,649 1,380,796 1,563,995

13.0 Benefits to Former Personnel 323 358 373

Total Personnel and Compensation Benefits $4,660,120 $4,774,503 $5,418,366

21.0 Travel 55,527 60,269 118,808

22.0 Transportation of Things 8,581 8,300 21,349

23.2 Rent Payments to Others 282 243 268

23.3 Communications, Utilities, & Misc. 4,208 5,880 6,140

24.0 Printing & Reproduction 2,770 2,982 3,402

25.1 Advisory & Assistance Services 173,410 50,446 121,080

25.2 Other Services 34,826 31,962 69,407

25.3 Purchase of Goods & Services from Govt. Accounts 30,394 33,322 42,155

25.4 Operation & Maintenance of Facilities 5 4 4

25.6 Medical Care 125 119 9,470

25.7 Operation & Maintenance of Equipment 1,966 1,762 8,446

26.0 Supplies and Materials 20,830 19,381 22,625

31.0 Equipment 6,108 7,027 11,498

42.0 Insurance Claims & Indemnities 970 922 941

91.0 Unvouchered 4,500 7,500 7,690

Total Non-Personnel $344,502 $230,119 $443,283

New Appropriated Resources $5,004,622 $5,004,622 $5,861,649

Budget Activities:

Investigations 698,193 667,279 785,121

Exam & Collections 4,120,886 4,160,748 4,883,575

Regulatory 185,543 176,595 192,953

New Appropriated Resources $5,004,622 $5,004,622 $5,861,649

FTE 34,989 35,604 38,607

See footnotes in 1.1 -- Appropriations Detail Table

Note 1: This table does not include the proposed technical adjustment that would move certain support activities from Operations 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operations Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer Services 

appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Note 2: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2)
IRS - 44

2.3 – Appropriation Detail Table

2C –Investigations

($785,121,000 in direct appropriations, and an estimated $55,922,000 from reimbursable programs): This budget activity 

funds the Criminal Investigation (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. The 

program activities include: 

• General Management and Administration supports the headquarters management activities of strategic planning, 

communications, finance, and human resources for CI activities. 

• Identity Theft, through CI's collaboration with internal and external business partners, combats the inherent risks of 

Stolen Identity Refund Fraud (SIRF) by focusing on significant tax investigations, prosecutions to maximize 

deterrence, and preventing the IRS from issuing fraudulent refunds. 

• CI supports the enforcement of criminal statutes relating to violations of internal revenue laws and other financial 

crimes. CI investigates cases of suspected intent to defraud involving both legal and illegal sources of income and 

recommends prosecution as warranted. This includes the investigation and prosecution of tax and moneylaundering violations associated with narcotics organizations. 

• Criminal Tax Legal Support provides legal advice and support from IRS Counsel to CI. 

• International Investigations supports international investigations involving U.S. citizens residing abroad, nonresident aliens, expatriates (U.S. citizens living abroad who have renounced their citizenship), and investigations 

involving other international issues, including legal support (e.g., Foreign Tax Credit and Foreign Earned Income 

Exclusion, Corporations, Non-Profits, Pension Plans, etc.). 

• Cybersecurity supports CI’s cyber-efforts around inherent risks to CI’s networks and systems, while focusing 

enforcement and investigative actions on the criminals that pose those threats. This activity also supports security 

Dollars in thousands

Enforcement

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Investigations 3,012 678,193 2,965 667,279 3,223 785,121 258 117,842 8.70% 17.66%

Exam and Collections 30,987 4,170,886 31,615 4,160,748 34,331 4,883,575 2,716 722,827 8.59% 17.37%

Regulatory 990 155,543 1,024 176,595 1,053 192,953 29 16,358 2.83% 9.26%

Subtotal New Appropriated Resources 34,989 $5,004,622 35,604 $5,004,622 38,607 $5,861,649 3,003 $857,027 8.43% 17.12%

Other Resources:

Reimbursables 101 3,891 80 57,000 84 59,850 4 2,850 5.00% 5.00%

Offsetting Collections - Non Reimbursable 59,965 10,000 10,500 500 5.00%

User Fees 54 (54) -100.00%

Recovery from Prior Years 1,670 1,453 1,453

Recoveries Paid 3,175 3,175

Unobligated Balances from Prior Years 544 254,643 252,301 2,000 (250,301) -99.21%

Transfers In/Out 140 140

Resources from Other Accounts 331 113,931 433 88,951 787 108,455 354 19,504 81.76% 21.93%

Subtotal Other Resources 976 $434,100 513 $413,074 871 $185,573 358 ($227,501) 69.79% -55.08%

Total Budgetary Resources 35,965 $5,438,722 36,117 $5,417,696 39,478 $6,047,222 3,361 $629,526 9.31% 11.62%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

FY 2022 to FY 2023 

Request

Note: The new appropriated resources in this table do not include the proposed technical adjustment that would move certain support activities from Operation Support and 

charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment would reduce the Operation Support appropriation by 

$709.5 million for rent and CFO adjustments and increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.6 million.

FY 2022 to FY 2023 

Request
IRS - 45

program management that protects the safeguarding of all data and systems within CI while adhering to all federal 

regulatory security compliance mandates and local security policies. 

Description of FY 2021 Performance –Investigations

Criminal Investigation serves the American public by investigating potential criminal violations of the Internal Revenue 

Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. CI uses 

the following measures to evaluate its success in achieving its mission.

In FY 2021, CI completed 2,766 Criminal Investigations, exceeding the year-end target of 2,600 by 6.4 percent. Cases of a 

Legal nature completeddecreased 14.1 percent compared to the same period in FY 2020, while Illegal and Narcotics cases 

increased 12.4 percent and 25.9 percent, respectively. Legal source cases include people that earn their income legally, but 

willfully violate the tax laws (tax evasion). Examples of illegal cases include embezzlement, mortgage fraud, telemarketing 

fraud, and money laundering. Narcotics cases are similar toillegal cases; however, these cases are specific to profits and

financial gains of organized drug groups involved in narcotics, narcotics trafficking, and money laundering. Although 

Criminal Investigations Completed increased compared to last year, COVID-19 continues to impact day-to-day investigative 

activities thereby contributing to a higher cycle time for investigations completed. Based on projected staffing levels, 

setbacks and challenges presented due to the COVID-19 pandemic and its impact on future performance, IRS set a target of 

2,600 for FY 2022 and 2,500 for FY 2023.

Figure 2.4
IRS - 46

The FY 2021 Conviction Rate of 89.4 percent was 2.8 percent below the year‐end target of 92.0 percent while convictions 

are up 6.4 percent. The COVID-19 pandemic continues to limit court availability throughout the country and impact day-today investigative activities in support of the judicial system thereby contributing to fewer cases being processed. 

Additionally, decreases in the number of special agents in previous years has led to a decline in the total amount of cases 

initiated and consequently recommended for prosecution. Despite this, appropriate case selection and effective field 

performance continue to positively affect the quality of cases resulting in convictions. The IRS will keep the Conviction Rate 

targets for FY 2022 and FY 2023 at 92 percent.

Figure 2.5
IRS - 47

2.1.3 – Budget and Performance Report and Plan 

2D – Exam and Collections

($4,883,575,000 in direct appropriations, and an estimated $3,062,000 from reimbursable programs): This budget activity 

funds programs that enforce the tax laws and increase compliance through examination and collection programs that ensure 

proper payment and tax reporting. This budget activity also includes campus support of the Questionable Refund program 

and appeals, and litigation activities associated with exam and collection. The program activities include: 

Dollars in thousands

Investigations FTE Amount

FY 2022 Annualized CR (ACR) 2,965 $667,279

Changes to Base:

Maintaining Current Levels (MCLs) $25,934

Pay Annualization (2.7% average pay raise) 3,955

Pay Raise (4.6% average pay raise) 20,352

Non-Pay 1,627

Base Adjustment 30 16,996

Adjustment to Reach Current Operating Levels 30 16,996

Subtotal FY 2023 Changes to Base 30 $42,930

FY 2023 Current Services 2,995 $710,209

Program Increases:

Putting Taxpayers First 9 3,529

Taxpayer Experience Strategy 9 3,529

Ensure Fairness of the Tax System 219 71,383

Subtotal FY 2023 Program Increases 228 $74,912

Total FY 2023 Request 3,223 $785,121

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 258 $117,842

Percent Change FY 2023 Request over FY 2022 ACR 8.70% 17.66%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Investigations FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources1 $589,295 $581,680 $595,686 $619,227 $630,093 $667,279 $785,121

Reimbursable Resources2 33,618 28,295 27,749 41,233 1,950 53,259 55,922

User Fees2

Budget Activity Total $622,913 $609,975 $623,435 $660,460 $632,043 $720,538 $841,043

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

Investigations FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measures Actual Actual Actual Actual Actual Target Target Target

Criminal Investigations Completed (Ot) 3,089 3,051 2,797 2,624 2,766 2,600 2,600 2,500

Conviction Rate (Oe) 91.5% 91.7% 91.2% 90.4% 89.4% 92.0% 92.0% 92.0%

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation 

transfers.

Key: Oe - Outcome Measure, Ot - Output/Workload Measure
IRS - 48

• Compliance Services Management supports management associated with exam and compliance program activities. 

• Payment Compliance – Correspondence Collection supports IRS collection activities by initiating contact and 

collecting delinquent taxpayer liabilities through written notices and other means. 

• Automated Collections and Support initiates contact and collects delinquent taxpayer liabilities through the 

centralized Automated Collection System (ACS). 

• Payment Compliance – Field Collection conducts field investigations and collection efforts associated with 

delinquent taxpayer and business entity liabilities, including direct taxpayer contact and outreach programs to 

protect the interest of the federal government in delinquent tax liability situations. 

• Tax Reporting Compliance – Document Matching supports the Automated Underreporter (AUR), Combined 

Annual Wage Reporting (CAWR), Federal Unemployment Tax Act (FUTA), and other document matching 

programs. 

• Tax Reporting Compliance – Electronic/Correspondence Exam initiates written correspondence with taxpayers 

related to tax issues arising from claims on their tax returns. 

• Tax Reporting Compliance – Field Exam compares taxpayer income levels and corresponding tax liabilities to 

ensure the accuracy of taxpayer returns. 

• Fraud/Bank Secrecy Act enforces the anti-money laundering provisions of the Bank Secrecy Act of 1970 (BSA) 

and the USA Patriot Act of 2001. It examines non-bank financial institutions for compliance with these laws, 

receives and processes more than 15 million financial reports annually, and manages a centralized database of that 

information for the Financial Crimes Enforcement Network. The Fraud program follows the money trail to support 

the criminal investigation of tax evasion operations. Fraud technical advisors and revenue agents supply 

investigative leads and referrals to federal, state, and local law enforcement agencies. 

• Appeals supplies an administrative review process that provides a channel for impartial case settlement before a 

case is docketed in a court of law. 

• Litigation provides legal support for the IRS in litigation of cases, including interpretation of the tax law. 

• Specialty Programs – Exams examines federal tax returns of businesses and individuals responsible for the filing 

and payment of employment, excise, estate, and gift taxes. 

• International Collection supports international field collection efforts associated with delinquent taxpayer and 

business entity liabilities from U.S. citizens residing abroad, non-resident aliens, expatriates (U.S. citizens living 

abroad who have renounced their citizenship), and those involving other international issues (e.g., Foreign Tax 

Credit and Foreign Earned Income Exclusion). 

• International Exams supports the international exam program involving U.S. citizens residing abroad, non-resident 

aliens, expatriates, and other examinations involving other international issues including legal support (e.g., Foreign 

Tax Credit and Foreign Earned Income Exclusion, Corporations, Non-Profits, Pension Plans, etc.). 

• Enforcement Research provides resources for market-based research to identify compliance issues, for conducting 

tests of treatments to address noncompliance, and for the implementation of successful treatments of taxpayer noncompliant behavior. 

• Unit General Management and Administration provides staffing, training, and direct support for headquarters 

management activities of strategic planning, communication and liaison, finance, human resources, equity, diversity 

and inclusion, business system planning, and embedded training. 

• Earned Income Tax Credit (EITC) Management and Administration supports headquarters management associated 

with EITC. 
IRS - 49

• Integrity & Verification Operations supports civil fraud detection and prevention efforts in a pre-refund 

environment including monitoring performance and developing policy, procedures, and guidance for processing 

civil revenue protection programs. 

• ID Theft Victim Assistance has end-to-end responsibility and accountability for identity theft victim assistance 

policy and operations, which includes paper inventories from tax-related ID theft, the Identity Theft Protection 

Specialized Unit, and Return Preparer Misconduct. 

• Whistleblower Office provides staffing, training, and direct support to process, assess, and analyze tips from 

individuals who identify tax problems duringtheir daily business, regardless of where encountered (including 

workplace). 

• Communications and Liaison coordinates local government and liaison relationships; manages congressional, state, 

and national stakeholder relationships and issues; coordinates crosscutting issues, including audit management and 

legislative implementation; manages national media contacts and local media relationships; and ensures compliance 

with disclosure and privacy laws. 

• Return Integrity, Verification & Program Management provides policy and program oversight of revenue protection 

efforts such as detection, prevention, and treatment of improper refunds (identity theft and non-compliance), 

including managing systemic solutions regarding payment of valid refund claims and the development of 

innovative technology solutions supporting IRS-wide revenue protection strategies. 

Description of FY 2021 Performance – Exam

The Examination program provides taxpayers top quality service by helping them understand and meet their tax 

responsibilities and by applying the tax law with integrity and fairness. The performance metrics IRS uses to gauge the 

Examination program’s performance are discussed below. 

To highlight IRS’s strategic direction, focusing on large businesses, high-income taxpayers, and partnerships, and to 

complement the inclusion of “in process” examinations in the IRS Data Book, three new indicators were developed for 

FY 2021 reporting. These new indicators allow IRS to track the progress of examinations throughout the year, allowing for a 

direct and clear picture of IRS activities. Some examinations close within a year while others take several years to close.

These indicators focus on starts rather than closures which provide a better view of where resources are being applied in the 

current fiscal year. 

Exam Starts – High Income Individuals indicator was created for FY 2021 reporting to monitor resources associated with 

examinations of individual return filers reporting over $10M of Total Positive Income (TPI). 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Exam Starts – High-Income Individuals1 1,941 2,307 2,108 2,693 2,227

1 New indicator added for FY 2021; historical data provided for comparative purposes.

While continuing to allocate resources to work the exams started in prior fiscal years, the IRS started 2,227new High-Income 

Individual tax return examinations in FY 2021. Throughout the year, the IRS will monitor resources, work in-progress and 

planned starts while continuing to devote senior level staff to train new hires. 

Exam Starts – Partnership’s indicator was created for FY 2021 reporting to monitor resources associated with the 

examination of Partnership returns. 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Exam Starts – Partnerships1 10,221 9,033 5,823 4,106 4,327

1 New indicator added for FY 2021; historical data provided for comparative purposes.
IRS - 50

While continuing to allocate resources to work the exams started in prior fiscal years, the IRS started 4,327new Partnership 

tax return examination in FY 2021. Compared to the same period in FY 2020, Exam Starts-Partnerships increased 4.5 

percent. Projected examinations are trending downward due to other competing priorities and training of new hires.

Exam Starts – Large Corporations indicator was created for FY 2021 reporting to monitor resources associated with 

examinations of large corporate returns reporting assets of $250 million and above. 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Exam Starts – Large Corporations1 2,577 2,396 2,009 1,700 1,490

1 New indicator added for FY 2021; historical data provided for comparative purposes.

While continuing to allocate resources to work the exams started in FY 2020, the IRS started 1,490 new Large Corporation 

tax return examinations in FY 2021. Projected examinations are trending slightly downward due to other priority work and 

the training of new hires. 

Exam Efficiency –Individual is the sum of all individual 1040 returns closed divided by the total FTE expended in relation 

to those individual returns. While total exam closures and FTEs increased 48.3 percent and 2.4 percent, in FY 2021, 

compared to FY 2020, Exam Efficiency –Individual was 108, falling short of the 111 target. Based on prior year hiring and 

the most current FTE data available, the IRS lowered the target to 100 for FY 2022 as qualified Exam staff will be reassigned 

to work unprecedented correspondence inventory levels. The FY 2023 target is set at 114 as inventory is expected to go back 

to normal. The IRS will closely monitor starts and inventory levels to ensure the targets are met.

 

 

Time to Start Compliance Resolution is the percentage of all individual income tax enforcement cases started within six 

months of the return posting date. This indicator reflects the effect of expedited issue detection and more integrated 

enforcement approaches. It supports expedited document matching, enhanced anomaly detection leading to faster issue 

identification, and data and analytics to improve issue identification and treatment selection. While the percent of individual 

enforcement cases started within 6 months was 66 percent, which is consistent with FY 2021 and much higher than previous 

years, the percent of Exam cases started showed a significant increase of 32 percent (39.3percent vs. 52.0percent), compared 

to Collection and AUR cases.

 

 

Time to Resolve Compliance Issue After Filingis the median time it takes to close all individual income tax enforcement 

cases in days. This indicator reflects the complete life cycle from return filing to resolution. It also reflects the effect of 

process enhancements, such as new self-correction capabilities, including Online Account. It supports expedited document 

Time to Start1 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Collection 86.2% 86.7% 80.1% 85.6% 86.0%

 Bal Due 90.1% 90.3% 90.5% 90.2% 88.0%

Automated Underreporter (AUR) 0.1% 0.1% 0.1% 0.1% 0.0%

Exam 40.9% 41.8% 39.3% 39.3% 52.0%

Total 58.8% 60.1% 60.9% 66.3% 66.0%

Time to Resolve1 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Collection: Bal due notice 379 368 330 400 286

Collection: non-notice 650 755 373 345 491

AUR 556 581 602 618 756

Exam 507 502 551 597 626

Total 491 494 469 491 484

1

New indicator added for FY 2020; historical data provided for comparative purposes.

1

New indicator added for FY 2020; historical data provided for comparative purposes.
IRS - 51

matching and enhanced anomaly detection, which will lead to faster issue identification. For FY 2021, the overall Time to 

Resolve Compliance Issue After Filing was 484 days, with the time to resolve Collection cases with balance due notices 

showing the most significant reductionas taxpayers may have used the Economic Impact Payments and Additional Child Tax 

Credit to pay down debt.

Repeat Non-Compliance Rate measures the percentage of individual taxpayers with repeat non-compliance two years after 

the initial tax year for filing, payment, or reporting compliance. This indicator supports expedited document matching, 

enhanced anomaly detection leading to faster issue identification, and Enterprise Case Management. It also promotes 

improved customer service through expanded access to new self-correction capabilities and improved behavioral analytics. It 

allows the IRS to better understand and change non-compliant taxpayer behavior. For FY 2021, the Repeat Non-Compliance 

Rate was 30.7 percent compared to 35.6 percent for FY 2020.

Description of FY 2021 Performance ‒ Collection

The Collection program collects delinquent taxes, secures delinquent tax returns through the fair and equitable application of 

tax laws, and provides education to customers to promote future compliance. The performance goals that the IRS uses to 

gauge collection program performance are discussed below. 

The Collection Coverage measure is calculated by taking the total volume of collection work completed divided by total 

collection work available. Collection Coverage was 41.2 percent, exceeding the FY 2021 target of 33 percent. The increase is 

attributed to net dispositions increasing 32.5percent while total available inventory grew 12.3 percent from FY 2020, to more 

than 53 million. Based on the need to reassignqualified Collection staff to work the unprecedented inventory caused by the 

COVID-19 pandemic, the target will be set at 36.5percent for FY 2022 and 32.1 percent for FY 2023. 

The Cost to Collect to $100is computed as total operating costs divided by gross collection and then multiplied by 100. 

Total operating costs include dollars obligated, expended, and disbursed against appropriated funds; excluded are costs 

reimbursed by other federal agencies and private entities for services performed for these external parties. Gross collections 

are before refunds are issued and include penalties and interest in addition to taxes collected. The FY 2021 Cost to Collect 

$100 was 33 cents, compared to 35 cents for FY 2020. Total operating costs were approximately $13.7 billion while gross 

collections were approximately $4.1 trillion. Operational efficiencies and economic activity contributed to the lower cost to 

collect.

Repeat Non-Compliance Rate1 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Reporting 7.3% 7.4% 7.7% 8.1% 5.5%

Filing 39.1% 38.1% 39.8% 43.9% 39.6%

Payment 30.0% 30.5% 29.9% 28.6% 29.0%

Total 29.2% 30.0% 31.4% 35.6% 30.7%

1

New indicator added for FY 2020; historical data provided for comparative purposes.
IRS - 52

FY 2023 Changes by Budget Activity

2.1.4 – Budget and Performance Report and Plan 

Dollars in thousands

Exam and Collections FTE Amount

FY 2022 Annualized CR (ACR) 31,615 $4,160,748

Changes to Base:

Maintaining Current Levels (MCLs) $169,465

Pay Annualization (2.7% average pay raise) 27,100

Pay Raise (4.6% average pay raise) 139,447

Non-Pay 2,918

Base Adjustment 318 206,676

Adjustment to Reach Current Operating Levels 318 $206,676

Subtotal FY 2023 Changes to Base 318 $376,141

FY 2023 Current Services 31,933 $4,536,889

Program Increases:

Putting Taxpayers First 129 48,365

Taxpayer Experience Strategy 129 48,365

Ensure Fairness of the Tax System 2,269 298,321

Subtotal FY 2023 Program Increases 2,398 $346,686

Total FY 2023 Request 34,331 $4,883,575

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 2,716 $722,827

Percent Change FY 2023 Request over FY 2022 ACR 8.59% 17.37%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Exam and Collections FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources1 $3,901,041 $3,875,098 $3,907,290 $3,933,597 $3,987,323 $4,160,748 $4,883,575

Reimbursable Resources2 450 3,289 240 249 1,719 2,916 3,062

User Fees2 42 2,454 54

Budget Activity Total $3,901,491 $3,878,387 $3,907,572 $3,936,300 $3,989,042 $4,163,718 $4,886,637

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursables and user fees.

Exam and Collections FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measures Actual Actual Actual Actual Actual Target Target Target

Exam Starts - High Income Individuals (new FY21) (Ot, L)3 1,941 2,307 2,108 2,693 2,227 Indicator Indicator Indicator

Exam Starts - Partnerships (new FY21) (Ot, L)3 10,221 9,033 5,823 4,106 4,327 Indicator Indicator Indicator

Exam Starts - Large Corporations (new FY21) (Ot, L)3 2,577 2,396 2,009 1,700 1,490 Indicator Indicator Indicator

Examination Efficiency - Individual (E) 121 131 109 76 108 111 100 114

Time to Start Compliance Resolution (new FY20) (E, L)3 58.8% 60.1% 60.9% 66.3% 66.0% Indicator Indicator Indicator

Time to Resolve Compliance Issue After Filing (new FY20) (E,L)3 491 494 469 491 484 Indicator Indicator Indicator

Repeat Non-Compliance Rate (new FY20) (Oe, L)3 29.2% 30% 31.4% 35.6% 30.7% Indicator Indicator Indicator

Collection Coverage - Units (Ot) 42.2% 41.6% 41.3% 34.9% 41.2% 33.0% 36.5% 32.1%

Cost to Collect $100 (E) $0.34 $0.34 $0.33 $0.35 $0.33 Indicator Indicator Indicator

3

Historical data provided for comparison.

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure
IRS - 53

2E – Regulatory

($192,953,000 in direct appropriations and an estimated $866,000 from reimbursable programs): This budget activity funds 

the development of published IRS guidance materials; interpretation of tax laws; internal advice to IRS on general non-tax 

legal issues; enforcement of regulatory rules, laws, and approved business practices; and support for taxpayers in the areas of 

pre-filing agreements, determination letters, and advance pricing agreements. The activities include: 

• Tax Law Interpretation and Published Guidance interprets tax law through published guidance, technical advice, 

and other technical legal services. 

• General Legal Services provides advice to the IRS on non-tax legal issues, including procurement, personnel, labor 

relations, equal employment opportunity, fiscal law, tort claims and damages, ethics, and conflict of interest. 

• Rulings and Agreements applies the tax law to specific taxpayers in the form of pre-filing agreements, 

determination letters, advance pricing agreements, and other pre-filing determinations and advice. 

• International Regulatory Legal Support supports Counsel’s work in tax law interpretation and rulings and 

agreements related to international issues. 

• Return Preparer Strategy provides staffing, training, and direct support associated with the Return Preparer 

Strategy. 

• Office of Professional Responsibility identifies, communicates, and enforces Treasury Circular 230 standards of 

competence, integrity, and conduct of those who represent taxpayers before the IRS, including attorneys, Certified 

Public Accountants (CPAs), enrolled agents, enrolled actuaries and appraisers, and other professionals. 
IRS - 54

Description of FY 2021 Performance - Regulatory

In FY 2021, IRS published 196 items: 136 Priority Guidance Plan (PGP) projects and 60 ministerial rulings. Ministerial 

projects are publications that only involve ministerial matters (such as applicable federal interest rates and monthly bond 

factor amounts). They are usually published on an annual basis. Many items published in FY 2021 involved complex and 

novel issues. For example, two of the published items pertain to a provision added by the Tax Cuts and Jobs Act (TCJA) 

creating the deduction for qualified business income and how that applies to cooperative organizations. Another item 

addressed the new unrelated business income tax provision of the TCJA providing that the tax will be computed separately 

for each trade or business. Over one hundred items were published to implement the Families First Coronavirus Response 

Act (FFCRA), the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Consolidated Appropriations Act, 

2021, and the American Rescue Plan Act (ARPA) and provided relief in response to the COVID-19 pandemic emergency, 

including several items relating to employer tax credits - the Credit for Sick and Family Leave, the Employee Retention 

Credit, and Paid Leave Credit for Vaccines. The 2021-2022 PGP, published on September 9, 2021, and covering July 2021 

through June 2022, lists 193 projects.

The Office of Professional Responsibility (OPR) remains firmly committed to educating tax professionals about their 

responsibilities and limitations under Circular 230, and their ethical obligations to taxpayers and tax administration. During 

Fiscal Year 2021, the OPR’s primary education and outreach efforts were directed at minimizing the number of practitioners 

who diverted from their ethical obligations. To the extent practitioners failedto adhere to the tax practice ethics, the OPR 

timely applied the appropriate level of discipline that put the practitioner back-on-track regarding competence and integrity in 

their tax practice.

The OPR performed its outreach activities through presentations conducted in-person and virtually through on-line webinars, 

telephonically, and via video conferencing platforms. The OPR educated tax professionals (mainly tax return preparers) 

about Circular 230 provisions at numerous events, including the IRS Nationwide Tax Forums. The Nationwide Tax Forums 

are an integral part of OPR’s external outreach efforts as thousands of tax professionals attend these forums. These outreach

events helped ensure taxpayers received competent and ethical representation before the agency.
IRS - 55

FY 2023 Changes by Budget Activity

2.1.5 – Budget and Performance Report and Plan 

Dollars in thousands

Regulatory FTE Amount

FY 2022 Annualized CR (ACR) 1,024 $176,595

Changes to Base:

Maintaining Current Levels (MCLs) $7,264

Pay Annualization (2.7% average pay raise) 1,173

Pay Raise (4.6% average pay raise) 6,033

Non-Pay 58

Base Adjustment 10 5,504

Adjustment to Reach Current Operating Levels 10 $5,504

Subtotal FY 2023 Changes to Base 10 $12,768

FY 2023 Current Services 1,034 $189,363

Program Increases:

Putting Taxpayers First 14 2,437

Taxpayer Experience Strategy 14 2,437

Ensure Fairness of the Tax System 5 1,153

Subtotal FY 2023 Program Increases 19 $3,590

Total FY 2023 Request 1,053 $192,953

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 29 $16,358

Percent Change FY 2023 Request over FY 2022 ACR 2.83% 9.26%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Regulatory FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY2023

Resource Level Actual Actual Actual Actual Actual Annualized CR Request

Appropriated Resources1 $131,662 $170,222 $174,624 $157,374 $132,506 $176,595 $192,953

Reimbursable Resources2 160 593 412 252 222 825 866

User Fees2 9,537

Budget Activity Total $141,359 $170,815 $175,036 $157,626 $132,728 $177,420 $193,819

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.


IRS - 56

Operations Support

Appropriation Description 

The Operations Support appropriation as currently defined - funds rent payments; facilities services; printing; postage; 

physical security; headquarters policy and management activities such as corporate support for strategic planning; 

communications and liaison; finance; human resources; equity, diversity, and inclusion; research andstatistics of income; and 

necessary expenses for information systems and telecommunication support, including development, security, and 

maintenance of the IRS’s information systems. 

The Operations Support budget request for FY 2023is $4,543,268,000 in direct appropriations and 11,923 FTE, excluding 

the proposed technical adjustment. This is an increaseof $615,166,000or 15.66percent, and 291 FTE more than the FY 

2022 ACR level of $3,928,102,000 and 11,631 FTE.
IRS - 57

2.1 – Budget Adjustments Table

Dollars in thousands

Operations Support

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 11,631 $3,928,102

Changes to Base:

Maintaining Current Levels (MCLs) $119,339

Pay Annualization (2.7% average pay raise) 12,812

Pay Raise (4.6% average pay raise) 65,928

Non-Pay 40,599

Base Adjustment $115,991

Adjustment to Reach Current Operating Levels 115,991

Subtotal FY 2023 Changes to Base $235,330

FY 2023 Current Services 11,631 $4,163,432

Program Changes:

Program Increases

Putting Taxpayers First 229 146,805

User Authentication

Taxpayer Experience Strategy 229 146,805

Ensure Fairness of the Tax System 20 98,396

Enhance Taxpayer Service 84,945

Critical IT Operations 36 39,521

Focused Strategies for Reaching Underserved Communities 7 10,169

Subtotal FY 2023 Program Increases 292 $379,836

Total FY 2023 Budget Request 11,923 $4,543,268

See footnotes in 1.1 -- Appropriations Detail Table

This table does not include the proposed technical adjustment that would move certain support activities from Operation 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. 

The adjustment would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and 

increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.
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2.2 – Object Classification Obligations

Dollars in thousands

Operations Support

Object Classification

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

11.1 Full-Time Permanent Positions 1,339,823 1,346,193 1,433,106

11.3 Other than Full-Time Permanent Positions 5,350 4,861 5,062

11.5 Other Personnel Compensation 33,940 40,005 43,150

11.8 Special Personal Services Payments 181 750 781

11.9 Personnel Compensation (Total) 1,379,294 1,391,809 1,482,099

12.1 Personnel Benefits 483,805 506,294 537,789

13.0 Benefits to Former Personnel 30 36 38

Total Personnel and Compensation Benefits $1,863,129 $1,898,139 $2,019,926

21.0 Travel 7,938 9,026 11,925

22.0 Transportation of Things 14,036 14,669 16,012

23.1 Rental Payments to GSA 579,736 609,019 634,381

23.2 Rent Payments to Others 6,914 37 38

23.3 Communications, Utilities, & Misc. 311,545 291,154 338,662

24.0 Printing & Reproduction 19,746 19,656 22,269

25.1 Advisory & Assistance Services 638,496 428,418 643,673

25.2 Other Services 29,188 32,621 51,210

25.3 Purchase of Goods & Services from Govt. Accounts 56,744 69,013 76,711

25.4 Operation & Maintenance of Facilities 199,037 202,776 223,729

25.6 Medical Care 14,972 17,605 20,045

25.7 Operation & Maintenance of Equipment 66,088 44,227 53,530

26.0 Supplies and Materials 7,240 5,143 7,370

31.0 Equipment 255,972 239,949 346,253

32.0 Land and Structures 32,645 45,987 76,858

42.0 Insurance Claims & Indemnities 676 663 676

Total Non-Personnel $2,240,973 $2,029,963 $2,523,342

New Appropriated Resources $4,104,102 $3,928,102 $4,543,268

Budget Activities:

Infrastructure 886,713 918,659 1,039,852

Shared Services & Support 1,024,654 1,109,740 1,200,105

Information Services 2,192,735 1,899,703 2,303,311

New Appropriated Resources $4,104,102 $3,928,102 $4,543,268

FTE 12,037 11,631 11,923

See footnotes in 1.1 -- Appropriations Detail Table

Note 1: This table does not include the proposed technical adjustment that would move certain support activities from Operations 

Support and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operations Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer Services 

appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Note 2: This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million 

under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2)
IRS - 59

2.3 – Appropriation Detail Table

2F –Infrastructure

($1,039,852,000 in direct appropriations and an estimated $1,041,000 from reimbursable programs): This budget activity 

funds administrative services related to space and housing, rent and space alterations, building services, maintenance, guard 

services, and non-IT equipment. The program activities include:

• Building Delegation oversees and manages the IRS GSA-delegated buildings, including cleaning, maintenance, 

utilities, protection, administrative, and recurring and one-time repair costs. 

• Rent provides resources for all IRS rent needs. 

• Space and Housing/Non-IT Equipment provides management of all IRS building services, maintenance, space 

alterations, guard services, custodial overtime, utility service needs, and non-IT equipment. 

• Security covers all physical security costs, including guard services, security equipment and maintenance, 

countermeasures, Homeland Security Presidential Directive 12 (HSPD-12) and Treasury Enterprise Identity 

Credential and Access Management (TEICAM). 

Description of FY 2021 Performance - Infrastructure

Rent 

The Rentable Square Feet per Person indicator is the amount of rentable square feet the IRS maintains per person requiring 

space. After payroll, rent is the IRS’s largest operating expense; therefore, the IRS continues to take steps to reduce its total 

office space. Through FY 2021, the Rentable Sq. Ft. per Person was 278 -- the same level as FY 2020. Rentable Square Feet 

per Person is driven in the positive direction by either a decrease in square footage, increase in staffing or a combination of 

both. In FY 2021 there was a slight decrease in both staffing and rentable square footage, leaving Rentable Square Feet per 

Person unchanged. The IRS continues to release excess office space through building closures and consolidations; more than 

Dollars in thousands

Operations Support

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Infrastructure 886,713 918,659 1,039,852 121,193 13.19%

Shared Services and Support 5,122 1,024,654 5,067 1,109,740 5,183 1,200,105 116 90,365 2.29% 8.14%

Information Services 6,915 2,192,735 6,564 1,899,703 6,740 2,303,311 176 403,608 2.68% 21.25%

Subtotal New Appropriated Resources 12,037 $4,104,102 11,631 $3,928,102 11,923 $4,543,268 292 $615,166 2.51% 15.66%

Other Resources:

Reimbursables 79 55,072 76 55,000 80 57,751 4 2,751 5.26% 5.00%

Offsetting Collections - Non Reimbursables 258

User Fees 10 408,054 15 335,410 15 261,833 (73,577) -21.94%

Recovery from Prior Years 11,849 5,218 5,218

Recoveries Paid 26 26

Unobligated Balances from Prior Years 166 178,232 28 540,897 41 214,869 13 (326,028) 46.43% -60.28%

Transfers In/Out

Resources from Other Accounts 2 24,428 27 28,292 34 37,602 7 9,310 25.93% 32.91%

Subtotal Other Resources 257 $677,893 146 $964,843 170 $577,299 24 ($387,544) 16.44% -40.17%

Total Budgetary Resources 12,294 $4,781,995 11,777 $4,892,945 12,093 $5,120,567 316 $227,622 2.68% 4.65%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

FY 2022 to FY 2023 

Request

The new appropriated resources in this table do not include the proposed technical adjustment that would move certain support activities from Operation Support and charge the full 

cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment would reduce the Operation Support appropriation by $709.5 million for rent 

and CFO adjustments and increase the Taxpayer Services appropriation by $298.9 million and the Enforcement appropriation by $410.6 million.

FY 2022 to FY 2023 

Request
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two million rentable square feet has beenreleased since FY 2017. The IRS continues to look to incorporate new hires into 

existing space, where possible. The IRS target for FY 2022 is 270 sq. ft. and the FY 2023 target is 260 sq. ft.

Security and Safety 

Security of IRS facilities and providing a secure and safe environment for employees are of utmost importance to the IRS. In 

FY 2021, the IRS worked diligently to implement a physical security strategy, which included the accomplishment of four 

goals:

• Providing security related tools, training, mechanisms, and processes to improve workforce effectiveness, agility,

and retention;

• Implementing and monitoring the effectiveness of physical security policies, procedures, and internal controls by 

crafting effective management tools to ensure appropriate monitoring of all aspects of the physical security 

programs;

• Recognizing varying levels of security related performance and ensured employee accountability;

• Coordinating among all the functional areas involved in physical security. The security related improvements 

reduced burden, enhanced monitoring efficiency and increased data reporting reliability of security programs for 

program owners and managers.

At the onset of the COVID-19 pandemic in March 2020, the IRS took unprecedented actions to protect the health and safety 

of its employees and the taxpaying public. This included closing Submission Processing Centers, Taxpayer Assistance 

Centers (TACs), and other offices nationwide. At the beginning of FY 2021, many employees remained on health and safety 

leave, resulting in a significant amount of unopened mail, tax return processing delays, and correspondence. By December 

2020, the IRS had resumed normal mail operations, and by May 2021, TACs were open and accepting face-to-face 

appointments. The work performed at IRS Submission Processing Centers is not conducive to a remote telework 

environment.

Throughout FY 2021, the IRS continued to improve its workspace modifications to enhance safety in IRS facilities, which 

included increased and widespread availability of hand sanitizer, surface sanitizing/disinfecting wipes, and both disposable 

masks and reusable masks. IRS modified custodial contracts for the provision of additional and above standard cleaning 

services. Modifications were made to heating, ventilation, and air conditioningoperations to increase outside air and filter 

efficiencies, where technically feasible, and installed acrylic shields in workstations, when required. IRS developed and 

posted specific pandemic signage and placed them outside IRS entrances to encourage employee COVID-19 symptom selfscreening. IRS ensured appropriate spacing of seating in open work and public gathering areas to enforce social distancing, 

and limited occupancy in bathrooms; elevators; and meeting, training, and break rooms.
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FY 2022 Changes by Budget Activity

2.1.6 – Budget and Performance Report and Plan

Dollars in thousands

Infrastructure FTE Amount

FY 2022 Annualized CR (ACR) $918,659

Changes to Base:

Maintaining Current Levels (MCLs) $18,380

Pay Annualization (2.7% average pay raise) 2

Pay Raise (4.6% average pay raise) 11

Non-Pay 18,367

Base Adjustment

Adjustment to Reach Current Operating Levels

Subtotal FY 2023 Changes to Base $18,380

FY 2023 Current Services $937,039

Program Increases:

Putting Taxpayers First 11,208

Taxpayer Experience Strategy 11,208

Ensure Fairness of the Tax System 42,231

Enhance Taxpayer Service 41,727

Critical IT Operations 1,044

Focused Strategies for Reaching Underserved Communities 6,603

Subtotal FY 2023 Program Increases $102,813

Total FY 2023 Request $1,039,852

Dollar/FTE Change FY 2023 Request over FY 2022 ACR $121,193

Percent Change FY 2023 Request over FY 2022 ACR 13.19%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Infrastructure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources1 $856,655 $870,360 $891,140 $867,354 $885,606 $918,659 $1,039,852

Reimbursable Resources2 634 662 681 747 854 991 1,041

User Fees2 999

Budget Activity Total $857,289 $871,022 $892,820 $868,101 $886,460 $919,650 $1,040,893

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

Infrastructure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measure Actual Actual Actual Actual Actual Target Target Target

Rentable Square Feet per Person (Ot) 297 301 298 278 278 280 270 260

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and interappropriation transfers.

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure
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2G – Shared Services and Support

($1,200,105,000 in direct appropriations, and an estimated $31,919,000 from reimbursable programs): This budget activity 

funds policy management, IRS-wide support for research, strategic planning, communications and liaison, finance, human 

resources, and equity, diversity, and inclusion programs. It also funds printing and postage, business systems planning, 

security, legal services, and procurement. The program activities include:

• National Headquarters Management and Administration directs the management activities of strategic planning, 

communications and liaison, finance, human resources, equity, diversity and inclusion programs, business systems 

planning, embedded training, and the Treasury Franchise Fund. It sets policies and goals, provides leadership and 

direction for the IRS, and builds partner relationships with key stakeholders (Congress, GAO, and OMB). It 

provides policy guidance for conducting planning and budgeting strategies, conducting analyses of programs and 

investments to support strategic decision-making, and developing and managing human resources. It also includes 

official reception and representation expenses. 

• Facilities Management & Security Services provides facilities and security services to deliver a safe, secure, and 

optimal work environment to IRS employees. 

• Procurement supports the procurement function of the IRS. 

• Equity, Diversity, and Inclusion Field Services provides staffing, training, and direct support to plan and manage 

the IRS’s Equity, Diversity, and Inclusion program. 

• Communications and Liaison coordinates local government and liaison relationships; handles congressional, state, 

and national stakeholder relationships and issues; coordinates cross-cutting issues, including managing audits and 

legislative implementation; handles national media contacts and local media relationships; and ensures IRS-wide 

compliance with disclosure and privacy laws. 

• Employee Support Services plans and manages financial services, including relocation, travel, purchase cards, 

corporate express, and employee clearances.

• Treasury Complaint Centers plan and manage the Treasury Complaint centers. 

• Shared Support not provided by Facilities Management & Security Services provides resources for shared crossfunctional support, such as postage meters, shredders, courier services, and post office boxes. 

• Printing and Postage – Media and Publications provides operating divisions with printing and postage, including 

shipping of taxpayer and internal-use materials. 

• Statistics of Income provides resources for researching annual income, financial, and tax data from tax returns filed 

by individuals, corporations, and tax-exempt organizations. 

• Research provides resources for market-based research to identify compliance issues, for conducting tests of 

treatments to address noncompliance, and for the implementation of successful strategies to address taxpayer 

noncompliance behavior. 

• Protection of Sensitive Information manages and oversees the staffing, training, equipment, and direct support for 

the protection of IRS employees, facilities, and assets, and the protection and proper use of identity information. 

• W&I Business Modernization Support provides staffing, training, and support for W&I’s enterprise-wide business 

modernization efforts, including re-engineered business processes. 

• Benefit Payments provides resources to fund Workers’ Compensation benefits and Unemployment Compensation 

for federal employee payments. 

• Shared Services provides additional services, such as the Public Transit Subsidy.
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Description of FY 2021 Performance –Shared Services and Support

Through support activities that include management and administration of human resources, protection and use of identity 

information, and research, Operations Support continues to provide shared services to all IRS programs.

Human Capital 

The future of the IRS depends on a workplace culture that empowers employees to improve the taxpayer experience and 

uphold the tax code fairly. In FY 2021, the IRS: 

• Administered a Future of Work Surveyto all employees that will aid IRS leadership with the development of a 

post-pandemic plan. Survey questions were chosen to gain insight on employee challenges regarding telework, 

returning to the office, resources, work/team collaborations and work/life balance.

• Engaged employees throughout the year using focus groups, virtual seminars, employee recognition, surveys, 

enhanced Public Service Recognition Week programming and launched a virtual idea wall. Online learning courses 

and Self-Help Online Tutorial (SHOT) videos relating to employee engagement were created as tools for 

employees and leadership.

• Developed and deployed strategies to ensure it is well-positioned to recruit, hire, train, support and retain a highly 

skilled workforce needed to achieve the IRS mission. One example is a deliberate rebranding including marketing 

and recruitment strategies through social media, student and graduate programs and collaboration with 

unemployment offices, educational institutions, and federal employment programs to prepare for anticipated hiring 

needs.

Protection and Proper use of Identity Information

The Security Summit, a public-private sector partnership between the IRS, state revenue departments, software developers, 

tax professionals, and financial services groups, is now in its sixth year of establishing repetitive iterative processes that 

support taxpayer security initiatives. During FY 2021, the Security Summit focused on reducing taxpayer burden and 

improving tax identity theft detection through exploring added collaborative efforts with the Information Sharing and 

Analysis Center (ISAC) and opportunities with stakeholders to further combat tax identity theft and fraud. The IRS made 

significant progress through collaboration and enhancements to its tax identity theft detection processes. Since partnering 

with the Security Summit, the IRS has prevented more identity theft than in previous years and as a result, its data analytics 

are detecting fewer fraudulent refund claims.

Research 

The IRS invests in Service-wide research projects to help its leaders make data and evidence-driven improvements to IRS 

operations and taxpayer services. In FY 2021, the IRS:

• Began an enterprise initiative utilizing the OPM Five-Phase Workforce Planning Model methodology to 

proactively develop workforce planning projections. This supports the development of a holistic view of planned 

IRS workforce requirements. As a result, the IRS will have the ability to analyze organizational workforce 

projections to support the development of comprehensive FY 2022 recruitment and hiring strategies. 

• Applied analytics to multiple source datasets in response to COVID-19 to develop data solution tools that enabled 

IRS stakeholders to make data-informed decisions, meet their reporting requirements, facilitate accomplishment of 

workload, maximize employee safety efforts, and pay employees appropriately. This allowed the IRS to rapidly 

respond to the unfolding pandemic and emerging needs.
IRS - 64

• Implemented the Documentation Upload Tool which is a platform that allows taxpayers a secure method to 

submit their response form and supporting documentation in response to an Automated Questionable Credit (AQC) 

notice. The IRS delivered functionality within just 19 days to create an electronic mailroom feature for the AQC 

program.

• Analyzed historical examination results and return data to select work based on measurable criteria. Access to new 

visualization tools, which are becoming an industry standard, are being provided to our managers and analysts to 

make it easier to identify opportunities to enhance our operations. The IRS continued efforts to incorporate the use 

of automated technologies such as Robotics Process Automation (RPA) to improve process efficiencies in workload 

selection.

• Received thousands of survey responses to the inaugural 2020 Customer Experience, Expectations and Needs 

(CEEN) Survey. The survey covered topics such as tax filing, employment taxes, trust with the IRS, and needs for 

compliant tax administration. The survey was designed to help the IRS understand the expectations, needs and 

preferences of small business owners and self-employed taxpayers. Insights gained were from gig workers, 

Spanish-preferred taxpayers, and new small business owners. The CEEN survey is groundbreaking for the IRS and 

the results are foundational research for all IRS programs seeking to improve interactions with taxpayers.

• Strengthened partnerships with the Department of Treasury to better utilize the Enterprise Data Management 

system, which organizes data from disparate systems to provide consolidated analytics and reporting.

• Combining tax expertise with data science principles, IRS is building risk assessment algorithms that will 

improve the IRS’s ability to identify potential high-risk compliance issues across complex pass-through entity tax 

structures. 

• Moving forward with its digitalization strategy. The strategy allows flexibility within inventory management, 

electronic workflows, and business continuity. Benefits include new digital channel options that enhance the 

portability of work and leverage resources across the Service. Additionally, the strategy allows for seamless access 

to taxpayer imaged cases without additional burdens on the taxpayer to provide documents. This transparency 

reduces risk for both taxpayers and the IRS.
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FY 2022 Changes by Budget Activity

2.1.7 – Budget and Performance Report and Plan 

Dollars in thousands

Shared Services and Support FTE Amount

FY 2022 Annualized CR (ACR) 5,067 $1,109,740

Changes to Base:

Maintaining Current Levels (MCLs) $38,001

Pay Annualization (2.7% average pay raise) 4,966

Pay Raise (4.6% average pay raise) 25,555

Non-Pay 7,480

Base Adjustment

Adjustment to Reach Current Operating Levels

Subtotal FY 2023 Changes to Base $38,001

FY 2023 Current Services 5,067 $1,147,741

Program Increases:

Putting Taxpayers First 89 22,138

Taxpayer Experience Strategy 89 22,138

Ensure Fairness of the Tax System 20 23,164

Enhance Taxpayer Service 6,012

Critical IT Operations 86

Focused Strategies for Reaching Underserved Communities 7 964

Subtotal FY 2023 Program Increases 116 $52,364

Total FY 2023 Request 5,183 $1,200,105

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 116 $90,365

Percent Change FY 2023 Request over FY 2022 ACR 2.29% 8.14%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Shared Services and Support FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources1 $964,702 $920,283 $900,287 $961,999 $1,040,955 $1,109,740 $1,200,105

Reimbursable Resources2 19,194 27,995 30,360 27,368 27,874 30,399 31,919

User Fees2 1,000 1,000

Budget Activity Total $984,896 $949,278 $930,647 $989,367 $1,068,829 $1,140,139 $1,232,024

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation 

transfers.
IRS - 66

2H – Information Services 

($2,303,311,000 in direct appropriations, $24,791,000 in reimbursable resources, and $261,833,000 from user fees): 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 mainframes, servers, personal 

computers, networks, and a variety of management information systems. The program activities include: 

• Enterprise Program Management Office (EPMO) provides oversight and project integration into daily IT processes 

for large-scale development, modernization, and enhancement projects. It enables a coordinated, cross-functional 

project planning, implementation and performance assessment effort aimed at improvingIT systems quality, cost,

and delivery schedule. 

• Cybersecurity protects Taxpayer information and the Internal Revenue Service's electronic systems, services, and 

data from internal and external cyber security related threats. The program operates a 24x7x365 Computer Security 

Incident Response Center (CSIRC) to provide detection, prevention, monitoring, analysis, and reporting of security 

incidents and threats. The program reduces online fraud and prevents critical data loss. It is responsible for 

performing security risk assessments, tracking compliance, monitoring security risk remediation activities, 

performing comprehensive security control testing, managing the system certification and accreditation process, 

and coordinating the enterprise continuous monitoring process. The program also provides security policy 

management and interpretation, delivers security engineering services, and implements cybersecurity and data 

protection solutions.

• Management Services provides for the design, development, delivery, and evaluation of a wide range of human 

resource programs for the IT organization. These programs include workforce planning, recruitment and retention, 

career management, performance management, labor/employee relations, position management, workplace 

improvement, succession management and service-wide IT training and education.

• National Headquarters (NHQ) IT Managementprovides for the management and oversight of investments in IT for 

the Chief of Staff and Research, Analysis and Statistics (RAS). The program allows NHQ to manage and leverage 

IT solutions that are responsive to IRS-wide management, tax compliance, enforcement, and strategic and tactical 

research projects.

• Affordable Care Act – Project Management Office (PMO) manages the strategic planning, development, and 

implementation of new information systems in support of business requirements with regard to the healthcare 

reform initiative. 

• IT Executive Oversight provides support to the immediate Office of the Chief Technology Officer, as well as the 

direct reports for Equity, Diversity and Inclusion, and the Director, Stakeholder Management (including 

Communications Services and Program Oversight). The program provides executive direction for the IT 

organization, enabling IT to be a customer-focused supplier of IT solutions that are responsive to customer business 

priorities and meet functional and operational needs effectively. 

• Applications Development performs the analysis, design, development, testing, and implementation of 

approximately 85,000 application programs supporting critical tax processing, management information reporting 

and financial management support systems for the IRS. This program also supports external trading partner data 

exchanges with federal government agencies, state and local governments, and other third-party entities. The 

program controls application source code and deploys applications to the production environment. 
IRS - 67

• Enterprise Operations designs, develops, and maintains IT that supports critical tax processing, management 

information reporting and financial management support systems for the IRS. The program supports data exchanges 

with external organizations, such as other federal agencies, state and local governments, and external entities (e.g., 

employers and banks), and includes a comprehensive disaster recovery capability to ensure continued operations in 

the event of a major interruption of service. 

• Enterprise Network provides telecommunications service delivery to all customer segments, including management 

of day-to-day operations of the telecommunications environment. This includes the operation of equipment and 

services to meet business user needs and the execution of routine changes for scheduled and unscheduled 

modifications to the telecommunications infrastructure and applications. It addresses all phases of engineering, 

acquisition, implementation, and operation of telecommunications systems and services, including voice, video, and 

data communications. 

• Enterprise Services plans and manages service and delivery methods used across the IT organization, including 

demand analysis, enterprise architecture, configuration management, project reporting, enterprise life cycle 

management, release management, systems engineering, dashboard reporting, and internal management. 

• End User & Network Services maintains the IRS automated business processes at headquarters and field sites, 

effectively allowing the IRS to fulfill its missions. The support includes technical systems and applications software 

support to end users, maintaining legacy operations, local and corporate systems administration activities, email,

and domain user account maintenance. This activity monitors IRS network and systems administration by utilizing 

automated management tools. It performs asset management activities, and maintenance of the voice and data 

infrastructure at the territory offices. 

• Strategy and Planning provides the management and oversight of investments in IT, demand analysis, project 

reporting, portfolio management and other IT operational priorities. 

• Information Technology Security Certification and Accreditation provides design and operations of security 

controls and the technical mechanisms used by the IRS systems and applications as part of the development of the 

system security plan, system risk assessment, and IT contingency plan. It also supports security testing and 

evaluation as part of the certification process, including time preparing system documentation, interviewing 

contractors, and responding to information requests. 

• Disaster Recoverysupports activities related to Enterprise Disaster Recovery planning, including testing, 

evaluations, plan development, and technical and business impact assessments.

• Infrastructure Currency(IC) funds the upgrade or replacement of outdated and aged technology solutions related to 

the IT hardware, software, and applications development product portfolio. The IC program gathers and assesses 

infrastructure risk to determine mitigation strategies supporting IT software currency. The IC program, through 

continuous IT currency management, coordinates the development and subsequent maintenance of the integrated IT 

asset planning and execution processes that increase the long-term sustainability of the IT infrastructure. By 

managing and maintaining the enterprise IT lifecycle, the IRS is able to reduce risk associated with the use of 

outdated and aged technology solutions and provide timely and continuous product upgrades.

• Enterprise Infrastructure Currency funds the replacement of IRS IT infrastructure that has reached or surpassed its 

useful life cycle. The IRS centralizes the resources achieved through efficiencies in various parts of IT to ensure 

that replacement of the aging infrastructure is addressed corporately.

• Treasury Franchise Fund is a centralized functional area for separating the resources required to pay Treasury 

billings for services provided through the Working Capital Fund from the Information Services base budget.
IRS - 68

Description of FY 2021 Performance –Information Services

The Percent of Aged Hardware is a measure that shows the quantity of IT hardware in operation past its useful life as a 

percentage of total hardware in use. The IRS continued to make great progress reducing the percentage of aged hardware 

within the IT environment from 16 percent at the end of FY 2020 to 9.3 percent at the end of FY 2021. This represents a 

reduction of more than 8,000 aged assets during the fiscal year through efforts such as refreshing employee workstations. 

Since FY 2017, the IRS was able to reduce the percent of aged hardware more than82percent. For FY 2022 and FY 2023, 

the IRS will maintain the target at 20 percent. The industry standard for aged hardware is in the range of 20 –25 percent. IRS 

will monitor progress against FY 2021 aged hardware replacement targets.

Figure 2.6
IRS - 69

FY 2022 Changes by Budget Activity

2.1.8 – Budget and Performance Report and Plan 

Dollars in thousands

Information Services FTE Amount

FY 2022 Annualized CR (ACR) 6,564 $1,899,703

Changes to Base:

Maintaining Current Levels (MCLs) $62,958

Pay Annualization (2.7% average pay raise) 7,844

Pay Raise (4.6% average pay raise) 40,362

Non-Pay 14,752

Base Adjustment 115,991

Adjustment to Reach Current Operating Levels 115,991

Subtotal FY 2023 Changes to Base $178,949

FY 2023 Current Services 6,564 $2,078,652

Program Increases:

Putting Taxpayers First 140 113,459

Taxpayer Experience Strategy 140 113,459

Ensure Fairness of the Tax System 33,001

Enhance Taxpayer Service 37,206

Critical IT Operations 36 38,391

Focused Strategies for Reaching Underserved Communities 2,602

Subtotal FY 2023 Program Increases 176 $224,659

Total FY 2023 Request 6,740 $2,303,311

Dollar/FTE Change FY 2023 Request over FY 2022 ACR 176 $403,608

Percent Change FY 2023 Request over FY 2022 ACR 2.68% 21.25%

This table does not include the proposed technical adjustment that would move certain support activities from Operation Support 

and charge the full cost of certain mission activities to the Taxpayer Services and Enforcement appropriations. The adjustment 

would reduce the Operation Support appropriation by $709.5 million for rent and CFO adjustments and increase the Taxpayer 

Services appropriation by $298.9 million and the Enforcement appropriation by $410.7 million.

Dollars in thousands

Information Services FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources1 $1,950,191 $2,390,357 $2,126,973 $1,972,916 $2,061,216 $1,899,703 $2,303,311

Reimbursable Resources2 35,307 40,600 27,153 36,456 26,344 23,610 24,791

User Fees2 201,584 204,032 222,399 374,671 408,054 335,410 261,833

Budget Activity Total $2,187,082 $2,634,989 $2,376,525 $2,384,043 $2,495,614 $2,258,723 $2,589,935

1

The FY 2017 - FY 2021 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

2

The FY 2017 - FY 2021 columns represent realized resources for reimbursables and user fees.

Information Services FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Aged Hardware (Ot, L) 52.3% 45.5% 31.0% 16.0% 9.3% 20.0% 20.0% 20.0%

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure


IRS - 70

Business Systems Modernization

Appropriation Description 

The Business Systems Modernization (BSM) appropriation provides resources for the planning and capital asset acquisition 

of IT to modernize the IRS business systems.

The BSM budget request for FY 2023is $310,027,000in direct appropriations and 412 FTE. This amount is an increase of 

$87,303,000or 39.2percent, and 104 FTE more than the FY 2022 ACR level of $222,724,000and 308 FTE.

2.1 – Budget Adjustments Table

Business Systems Modernization

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 308 $222,724

Changes to Base:

Maintaining Current Levels (MCLs) $5,730

Pay Annualization (2.7% average pay raise) 401

Pay Raise (4.6% average pay raise) 2,061

Non-Pay 3,268

Base Adjustment 3,430

Adjustment to Reach Current Operating Levels 3,430

Subtotal FY 2023 Changes to Base $9,160

FY 2023 Current Services 308 $231,884

Program Changes:

Program Increases

Integrated Modernization Business Plan 104 $78,143

Subtotal FY 2023 Program Increases 104 $78,143

Total FY 2023 Budget Request 412 $310,027

See footnotes in 1.1 -- Appropriations Detail Table
IRS - 71

2.2 – Object Classification Obligations

Dollars in thousands

Business Systems Modernization

Object Classification

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

11.1 Full-Time Permanent Positions 37,340 43,387 51,320

11.3 Other than Full-Time Permanent Positions 30 178 204

11.5 Other Personnel Compensation 224 672 772

11.9 Personnel Compensation (Total) 37,594 44,237 52,296

12.1 Personnel Benefits 12,535 15,092 17,686

Total Personnel and Compensation Benefits $50,129 $59,329 $69,982

21.0 Travel 411 381 104

25.1 Advisory & Assistance Services 163,522 160,802 235,072

25.2 Other Services 6

25.3 Purchase of Goods & Services from Govt. Accounts 2

25.7 Operation & Maintenance of Equipment 2,018 110 254

26.0 Supplies and Materials 2 12 6

31.0 Equipment 6,642 2,090 4,600

Total Non-Personnel $172,595 $163,395 $240,045

New Appropriated Resources $222,724 $222,724 $310,027

Budget Activities:

IT Investments 222,724 222,724 310,027

New Appropriated Resources $222,724 $222,724 $310,027

FTE 394 308 412

This table does not include the $15 million in the Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), $750.7 million under 

the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-36), the $509 million provided in the Consolidated 

Appropriations Act, 2021 (P.L. 116-260), the $1.86 billion provided by the American Rescue Plan (ARP) (P.L. 117-2)

See footnotes in 1.1 -- Appropriations Detail Table
IRS - 72

2.3 – Appropriation Detail Table

2I – Business Systems Modernization 

($310,027,000 in direct appropriations): This budget activity funds the planning and capital asset acquisition of information 

technology to modernize IRS business systems and processes, including labor and related contractual costs, in support of the 

IRS mission. The IRS is implementing its multiyear modernization plan to address the long-term sustainability and 

affordability of its technological environment, eliminating organizational silos, and driving efficiencies and cost savings 

throughout the enterprise. The plan defines the scope of capabilities, sets timelines, and targets, describes milestones, and 

includes outcome measures for each investment. BSM funds are strictly used for development, modernization and 

enhancement activities, and do not fund operations and maintenance once a project is developed. The following projects are 

currently under development using BSM funds:

• Web Applications ($30 million): The IRS will continue to expand online account capabilities to improve the 

taxpayer experience, enhancing self-service options to create and submit payment plans as well as to make and 

view tax payments. In addition, it will expand the Tax Pro effort benefiting authorized tax professionals with 

capabilities that modernize certain paper-based processes to help resolve issues with the IRS on behalf of their 

clients. In FY 2023, the IRS will continue to expand the Tax Pro capabilities to include the ability to view and 

manage authorizations and enable taxpayers to initiate new authorization requests. These capabilities will reduce 

taxpayer and tax professional burden, the number of submitted paper forms, and the time it takes to submit 

authorizations. Taxpayers and tax professionals also benefit from additional data accuracy and security since the 

process confirms and protects their identity. The IRS will continue to improve taxpayer access to digital notices, 

allowing taxpayers the choice to opt in or opt out of receiving paper notices and receive notifications through email 

or text message. This investment will increase taxpayer response rates to notices, reduce burden on taxpayers and 

the IRS, reduce printing and postage requirements, and promote more efficient interactions.

• Customer Account Data Engine 2(CADE2) ($130 million) (Individual Tax Processing): Since the Individual 

Master File (IMF) was built almost 60 years ago, the IRS has made additions to legacy base code to reflect annual 

tax law changes. The result today is a complex system, with decades of tax law changes, written in outdated 

programming language that only an extremely small number of IRS personnel understand. Right now, the CADE 2 

Program is in Transition State 2 (TS2) focused on the Individual Tax Processing Engine (ITPE) Project, whichis 

Dollars in thousands

Business Systems Modernization

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Business Systems Modernization 394 222,724 308 222,724 412 310,027 104 87,303 33.77% 39.20%

Subtotal New Appropriated Resources 394 $222,724 308 $222,724 412 $310,027 104 $87,303 33.77% 39.20%

Other Resources:

Reimbursables

Offsetting Collections - Non Reimbursables

User Fees 29,495

Recovery from Prior Years 25 5,537 (5,537) -100.00%

Recoveries Paid 193

Unobligated Balances from Prior Years 3 28,935 16 205,039 (16) (205,039) -100.00% -100.00%

Transfers In/Out

Resources from Other Accounts

Subtotal Other Resources 3 $58,455 16 $210,769 (16) ($210,576) -100.00% -100.00%

Total Budgetary Resources 397 $281,179 324 $433,493 412 $310,027 88 ($123,273) 27.16% -28.48%

See footnotes in 1.1--Appropriations Detail Table

Change % Change

FY 2022 to FY 2023 

Request

FY 2021

Operating Plan

FY 2022

Annualized CR

FY 2023

Request

FY 2022 to FY 2023 

Request
IRS - 73

converting and thoroughly testing two of the most complex IMF tax processing components (i.e., Runs 12 and 15). 

This project will usher in a new period of modernized core tax processing for Individual Accounts. ITPE will also 

convert approximately 200,000 lines of legacy Assembly Language Code (ALC) to a modern software language. 

This code conversion is a major milestone towards retiring the Individual Master File (IMF). In FY 2023, funding 

will be used to continue the ITPE project’s code conversion and testing activities. Upon completion, the ITPE 

project will provide the foundation for modernization efforts to retire remaining legacy components of the IMF. It 

will also address key technological defects of the IMF such as the length of information that can be stored, improve 

security against threats, implement a logical code representation and enable enhanced data accessibility both within 

the IRS and for taxpayers. CADE 2 will support advanced analytical capabilities addressing key issues of 

compliance, fraud, and identity theft. 

• Customer Account Data Engine (CADE 2) Target State ($15 million): In the final Transition State, the Target State, 

CADE 2 will provide state-of-the-art individual taxpayer account processing and data-centric technologies for 

maintaining and balancing individual taxpayer account data to reduce operations and maintenance costs, provide 

data distribution solutions for downstream systems and end users, improve taxpayer service quality, enhance 

responsiveness to legislative changes, and eliminate financial weaknesses. In FY 2023, CADE 2 Target State will 

consist of two projects: 1) the CADE 2 Data Marketplace (C2DM) project that will develop data distribution 

solutions such as Application Programming Interfaces (APIs), for access to CADE 2 data, and 2) the ITPE Step 2 

project that will retire the IMF sequential files and process off the CADE 2 database. Funding will be used to plan, 

develop, and publish APIs for the C2DM project, and execute requirements, design, engineering, and development 

activities for the ITPE Step 2 project. Completion of CADE 2 Target State will allow the IRS to simplify the IT 

environment by reengineering many of the downstream systems to directly use and update the taxpayer account 

data in CADE 2.

• Enterprise Case Management (ECM) ($75 million): ECM provides the IRS with an enterprise solution for 

streamlining case and workload management processes to improve the quality and effectiveness of case interactions 

with individual taxpayers, small and large businesses, tax-exempt organizations, and a wide spectrum of 

intermediaries. ECM is a cloud-based case management solution that will digitize case information, provide 

business automation, and increase resource alignment across IRS business units to improve customer service and 

reduce the timeframe for case resolution. IRS is building foundational data services to allow users to access 

individual taxpayer data and deliver additional case management functionality to enable further business migration 

to ECM. ECM has integrated case management supporting business processes across the IRS such as Tax 

Exempt/Government Entities Exempt Organizations, Privacy, Governmental Liaison and Disclosure, W&I Grants 

Management, External Referrals, and the Human Capital Office. In FY 2023, the IRS will initiate work on the exam 

line of business, while continuing to expand case management integration to additional prioritized customers and 

enabling further business migration to ECM.

• Cyber Security: 

- Identityand Access Management ($15 million): This investment in user identity controls, privileged access 

protections, building access security, and software security configuration will help the IRS mitigate the risk of 

unauthorized access to tax data as the IRS delivers new online tools to taxpayers and the number of private 

sector data breaches increases.

- Security Operations and Management ($10 million): This investment will deliver a next generation secure 

operations center, improved incident analysis and forensic network investigation, and protect High Value 

Assets by blocking network access for unauthorized users.
IRS - 74

- Vulnerability and Threat Management ($20 million): This investment will enable the IRS to identify and 

provide transparency for risks and potential threats, automate initiation of remediation actions for proactive 

prevention of security incidents, improve the automation of security testing for on-premise and cloud systems, 

apply use cases to enhance security audit analytics and compliance, and enhance data protection through 

encryption.

• Architecture, Integration, and Management ($10 million): Provide system engineering management capabilities, 

including systems strategy, architecture, and engineering capabilities, across IT Infrastructure, Business 

Applications, Data Management, and IT Security. Provide portfolio control and management processes and tools, 

including governance, enterprise lifecycle support, tiered program management, and configuration/change 

management.

• Management Reserve ($5 million): Funds allow the IRS to cover unanticipated cost adjustments.

Description of FY 2021 Performance – BSM

The IRS’s modernization efforts focus on building and deploying advanced information technology systems, processes, and 

tools to improve efficiency and productivity. The IRS made significant progress delivering on the commitments in the IRS 

Integrated Modernization Business Plan, as well as the fundamental responsibilities to deliver and protect the solutions and 

services that support the nation’s tax system. However, since the IRS received only 55percent of the requested funding, 

replanning of capabilities was necessary. With this replanning, the IRS delivered 19 modernized capabilities in FY 2019, 40 

modernized capabilities in FY 2020, and 29 modernized capabilities in FY 2021. 

Highlighted capabilities in FY 2021 include: delivery of Enterprise Case Management Release 1, expansion of Customer 

Callback to total 16 phone applications, release of Taxpayer Digital Communication – Outbound Notifications priority 

notices to taxpayers, completion of 69percent of code conversion for the Individual Tax Processing Engine project, and 

deployment of CTCUP. For more detail about BSM accomplishments and performance goals, please see Publication 5453, 

Information Technology (IT) Annual Key Insights Report.

Major IT investments are measured by the proportion of projects within +/- 10 percent of budgeted cost and schedule 

variance. The FY 2022 and FY 2023 targets for both measures are 90 percent.

Major IT (BSM and Non-BSM) Investments

Percent of Major IT Investments within +/-10 percent Cost Variance at the Investment Level: Sixteen of 17 major 

investments (94.1 percent) were within the cost variance threshold in FY 2021. Shown below is the one investment that fell 

outside the +/- 10 Cost variance.

• eA3 (Authentication, Authorization, Access) –actual costs incurred were 15 percent lower than planned.

Percent of Major IT Investments within +/-10 percent Schedule Variance at the Investment Level: Seventeen of 17 

major investments (100 percent) were within the schedule variance threshold at the close of FY 2021. All investments fell 

between the +/-10 percent schedule variance in FY 2021. 

Fiscal Year Percent within +/-10% 

Cost Variance

Percent within +/-10% 

Schedule Variance

2021 94.1% 100%
IRS - 75

The IRS will continue to effectively manage our major IT investments and closely monitor cost and schedule variance 

throughout FY 2022.

FY 2023 Changes by Budget Activity

2.1.9 – Budget and Performance Report and Plan 

Dollars in thousands

Business Systems Modernization

Summary of Proposed FY 2023 Request FTE Amount

FY 2022 Annualized CR (ACR) 308 $222,724

Changes to Base:

Maintaining Current Levels (MCLs) $5,730

Pay Annualization (2.7% average pay raise) 401

Pay Raise (4.6% average pay raise) 2,061

Non-Pay 3,268

Base Adjustment 3,430

Adjustment to Reach Current Operating Levels 3,430

Subtotal FY 2023 Changes to Base $9,160

FY 2023 Current Services 308 $231,884

Program Changes:

Program Increases

Integrated Modernization Business Plan 104 $78,143

Subtotal FY 2023 Program Increases 104 $78,143

Total FY 2023 Budget Request 412 $310,027

See footnotes in 1.1 -- Appropriations Detail Table

Dollars in thousands

Business Systems Modernization FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources1 $166,263 $110,000 $150,000 $180,000 $203,614 $222,724 $310,027

Reimbursable Resources2

User Fees 25,464 77,418 89,713 108,872 29,495

Budget Activity Total $191,727 $187,418 $239,713 $288,872 $233,109 $222,724 $310,027

2

The FY 2016 - FY 2020 columns represent realized resources for reimbursable resources and user fees.

Business Systems Modernization FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measures Actual Actual Actual Actual Actual Target Target Target

50.0% 72.2% 88.9% 84.2% 94.1% 90.0% 90.0% 90.0%

88.9% 83.3% 88.9% 94.7% 100.0% 90.0% 90.0% 90.0%

Key: E - Efficiency Measure

1

The FY 2016 - FY 2020 appropriated resources represents the approved operating plan including any inter-BAC transfers and inter-appropriation transfers.

Percent of Major IT Investments within +/- 10% Cost 

Variance at the Investment Level (E)

Percent of Major IT Investments within +/- 10% Schedule 

Variance at the Investment Level (E)
IRS - 76

B - FY 2021 - FY 2023 IRS Integrated Modernization Business Plan Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2021 

Actuals

FY 2022 

Planned (CR)

FY 2023 

President's 

Budget Request

 FY 2021 / FY 2022 (CR Level) / FY 2023 203,746 222,724 310,027

Carryover Balance 28,806 22,185

User Fees 29,495

Total Funding $262,047 $244,909 $310,027

Capital 204,837 180,806 234,872

Support 3 589 178

Labor 57,207 59,329 69,982

Subtotal Spend $262,047 $240,724 $305,032

 FTE 304 308 412

Management Reserve 4,185 4,995

Total Spend plus MR $262,047 $244,909 $310,027

Web Applications2 $32,594 $28,000 $30,000

Capital 20,919 15,900 15,920

Support 3 300

Labor 11,671 11,800 14,080

FTE 65 60 95

TDC-ON $7,961

Capital 6,255

Support

Labor 1,706

FTE 9

Taxpayer Experience - Subtotal $40,555 $28,000 $30,000

FTE 74 60 95

Taxpayer Experience

The IRS will continue to expand online account capabilities to improve the taxpayer experience, 

enhancing self-service options to create and submit payment plans as well as to make and view 

tax payments. In addition, it will expand the Tax Pro effort benefiting authorized tax 

professionals with capabilities that modernize certain paper-based processes to help resolve 

issues with the IRS on behalf of their clients. In FY 2023, the IRS will continue to expand the Tax 

Pro capabilities to include the ability to view and manage authorizations and enable taxpayers to 

initiate new authorization requests. These capabilities will reduce taxpayer and tax professional 

burden, the amount of paper forms, and the time it takes to submit authorizations. Taxpayers 

and tax professionals also benefit from additional data accuracy and security since the process 

confirms and protects their identities. The IRS will continue to improve taxpayer access to digital 

notices which will increase taxpayer response rates to notices, reduce burden on taxpayers and 

the IRS, reduce printing and postage requirements, and promote more efficient interactions.

Providing taxpayers access to fast, secure, and personalized digital communications delivered 

through a secure messaging platform. The IRS will continue developing digital notices available 

through a secure online account for taxpayers who prefer that channel over mailed 

correspondence. IRS will expand the capability to allow taxpayers the choice to opt in or opt out 

of receiving paper notices and receive notifications through email and text message when a 

notice is available. TDC-ON will allow the IRS to move away from paper-based notifications and 

allow taxpayers to navigate directly to IRS online payment tools, increasing the likelihood of 

taxpayer acts and expediting the resolution of tax-related issues.

1

 Capital Investment funding: capital and contractor labor costs. Support funding: training, travel, supplies costs. Labor funding: IRS employee pay and benefits costs. 

2

 Effective FY 2022, Web Apps and TDC-ON merged under the Web Apps investment.
IRS - 77

Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2021 

Actuals

FY 2022 

Planned (CR)

FY 2023 

President's 

Budget Request

Customer Account Data Engine (CADE 2) (Individual Tax Processing) $98,476 $100,000 $130,032

Capital 74,300 77,946 105,785

Support 41 52

Labor 24,176 22,013 24,195

FTE 125 123 139

Customer Account Data Engine (CADE 2) Target State $15,000

Capital 9,778

Support

Labor 5,222

FTE 30

Enterprise Case Management $60,041 $64,000 $75,000

Capital 43,398 41,757 54,065

Support 248 50

Labor 16,643 21,995 20,885

FTE 89 98 112

Core Taxpayer Services and Enforcement - Subtotal $158,517 $164,000 $220,032

FTE 214 221 281

1

 Capital Investment funding: capital and contractor labor costs. Support funding: training, travel, supplies costs. Labor funding: IRS employee pay and benefits costs. Core Taxpayer Services and Enforcement

Since the Individual Master File (IMF) was built almost 60 years ago, the IRS has made additions to 

legacy base code to reflect annual tax law changes. The result today is a complex system, with 

decades of tax law changes, written in outdated programming language that only an extremely small 

number of IRS personnel understand. Right now, the CADE 2 Program is in Transition State 2 (TS2) 

focused on the Individual Tax Processing Engine (ITPE) Project, which is converting and thoroughly 

testing two of the most complex IMF tax processing components (i.e., Runs 12 and 15). This project 

will usher in a new period of modernized core tax processing for Individual Accounts. ITPE will also 

convert approximately 200,000 lines of legacy Assembly Language Code (ALC) to a modern software 

language. This code conversion is a major milestone towards retiring the Individual Master File (IMF). 

CADE 2 will support advanced analytical capabilities addressing key issues of compliance, fraud, and 

identity theft. 

In the final Transition State, the Target State, CADE 2 will provide state-of-the-art individual taxpayer 

account processing and data-centric technologies for maintaining and balancing individual taxpayer 

account data to reduce operations and maintenance costs, provide data distribution solutions for 

downstream systems and end users, improve taxpayer service quality, enhance responsiveness to 

legislative changes, and eliminate financial weaknesses. Funding will be used to plan, develop, and 

publish APIs for the C2DM project, and execute requirements, design, engineering, and development 

activities for the ITPE Step 2 project. Completion of CADE 2 Target State will allow the IRS to simplify 

the IT portfolio by reengineering many of the downstream systems to directly use and update the 

taxpayer account data in CADE 2. 

ECM provides the IRS with an enterprise solution for streamlining case and workload management 

processes to improve the quality and effectiveness of case interactions with individual taxpayers, 

small and large businesses, tax-exempt organizations, and a wide spectrum of intermediaries. ECM is 

a cloud-based case management solution that will digitize case information, provide business 

automation, and increase resource alignment across IRS business units to improve customer service 

and reduce the timeframe for case resolution. IRS is building foundational data services to allow 

users to access individual taxpayer data and delivers additional case management functionality to 

enable further business migration to ECM. ECM has integrated case management supporting 

business processes across the IRS such as Tax Exempt/Government Entities Exempt Organizations, 

Privacy, Governmental Liaison and Disclosure, W&I Grants Management, External Referrals, and 

Human Capital Office. 
IRS - 78

Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2021 

Actuals

FY 2022 

Planned (CR)

FY 2023 

President's 

Budget Request

Robotics Process Automation $855

Capital 606

Support

Labor 249

FTE 1

Application Program Interface (API) Implementation $3,177

Capital 2,912

Support

Labor 265

FTE 1

Cloud Execution $9,392

Capital 9,387

Support

Labor 5

FTE

Next Generation Infrastructure $69

Capital

Support

Labor 69

FTE 1

Modernized IRS Operations - Subtotal $13,493

FTE 3

Identity and Access Management $8,974 $17,658 $15,000

Capital 8,449 17,158 14,795

Support

Labor 525 500 205

FTE 3 1 2

Security Operations and Management $12,660 $7,081 $10,000

Capital 12,630 6,919 9,845

Support

Labor 30 162 155

FTE 1

Vulnerability and Threat Management $22,652 $17,985 $20,000

Capital 21,640 16,826 17,300

Support

Labor 1,012 1,159 2,700

FTE 6 14 18

Cybersecurity and Data Protection - Subtotal $44,287 $42,724 $45,000

FTE 9 15 21

Architecture, Integration, and Management $5,195 $6,000 $10,000

Capital 4,340 4,300 7,384

Support 76

Labor 856 1,700 2,540

FTE 4 12 15

Subtotal Supporting Projects $5,195 $6,000 $10,000

FTE 4 12 15

This investment will enable the IRS to identify and provide transparency for risks and potential 

threats, automate initiation of remediation actions for proactive prevention of security incidents, 

improve the automation of security testing for on-premise and cloud systems, apply use cases to 

enhance security audit analytics and compliance, and enhance data protection through 

encryption.

1

 Capital Investment funding: capital and contractor labor costs. Support funding: training, travel, supplies costs. Labor funding: IRS employee pay and benefits costs. 

Leveraging cloud technologies to provide value and improved service to taxpayers. The IRS has 

adopted a cloud strategy, which aligns to the Federal strategy, and will migrate various workloads 

to the cloud as appropriate. Because the IRS can securely host tax applications in the cloud, even 

for major efforts like Enterprise Case Management, funding this set of capabilities will be critical 

to stabilizing the cost of operations and maintenance and further enhancing the agency’s security 

posture. Currently, this modernization program is not anticipated to perform planned work 

under either the FY 2022 CR level or FY 2023 President’s Budget.

Providing a more efficient, scalable and flexible architecture. Funding will ensure the 

implementation of advanced IT infrastructure tools and technologies for compute, network and 

storage activities. The combination of these capabilities will help further automate and 

modernize the technology infrastructure and convert legacy code to modern programming 

languages. Currently, this modernization program is not anticipated to perform planned work 

under either the FY 2022 CR level or FY 2023 President’s Budget.

Automating repetitive, rule-based, manual tasks and mitigating human error risks. Robotic 

Process Automation (RPA) has emerged as an effective enabling technology to gain efficiencies by 

doing just this. Combining RPA with Artificial Intelligence (AI) has further enhanced opportunities 

to empower organizations to take on more complex processes and gain value through cognitive 

automation. The goal of the RPA program is to build the capability for IRS to take advantage of 

these emerging technologies. IRS business units are highly motivated to find operational 

efficiencies to improve services and automate workflow for a wide range of taxpayers to 

significantly relieve administrative burden. Funding this effort will ensure that a series of initial 

limited use projects and activities will provide additional functionality and efficiency gains. 

Currently, this modernization program is not anticipated to perform planned work under either 

the FY 2022 CR level or FY 2023 President’s Budget.

Provide system engineering management capabilities, including systems strategy, architecture, 

and engineering capabilities, across IT Infrastructure, Business Applications, Data Management, 

and IT Security. Provide portfolio control and management processes and tools, including 

governance, enterprise lifecycle support, tiered program management, and configuration/change 

management.

Modernized IRS Operations Supporting Projects

This investment in user identity controls, privileged access protections, building access security, 

and software security configuration will help the IRS mitigate the risk of unauthorized access to 

tax data as the IRS delivers new online tools to taxpayers and the number of private sector data 

breaches increases.

This investment will deliver a next generation secure operations center, improved incident 

analysis and forensic network investigation, and protect High Value Assets by blocking network 

access for unauthorized users.

APIs are a set of protocols, routines, functions and/or commands that programmers use to 

develop software or facilitate interaction between distinct systems. In response to growing 

demands to integrate systems internally and externally, the IRS plans to expand the use of APIs 

across its ecosystem. Currently, this modernization program is not anticipated to perform 

planned work under either the FY 2022 CR level or FY 2023 President’s Budget.
IRS - 79

C – Changes in Performance Measures

With the publication of Treasury’s Strategic Plan for FY 2022-2026, the IRS will work to baseline performance against the 

new strategic objectives. This could result in additional changes to performance measures in the FY 2024 budget.

For the FY 2023 Budget and as shown below, the IRS plans to add three and modify one measure.

# Performance Measure or 

Indicator

Proposed Change and Justification

1 Exam Starts – High Income 

Individuals

The number of high-income 

individual examinations with a 

TPI > $10 million started during 

the fiscal year

Addition – This new indicator aligns with the 2020 IRS Table 17 Data Book changes 

which are based on “in process” examinations reported by fiscal year.

This new indicator allows IRS to track the progress of examinations throughout the 

year, allowing for a direct and clear picture of IRS activities. Some examinations are 

closed within a year while others take several years to close. This indicator focuses on 

starts rather than closures which provides a better view of where resources are being 

applied in this fiscal year.

This indicator is effective for FY 2021 reporting in the FY 2023 Congressional 

Justification.

2 Exam Starts – Partnerships

The number of partnership 

examinations started during the 

fiscal year

Addition – This new indicator aligns with the 2020 IRS Table 17 Data Book changes 

which are based on “in process” examinations reported by fiscal year.

This new indicator allows IRS to track the progress of examinations throughout the 

year, allowing for a direct and clear picture of IRS activities. Some examinations are 

closed within a year while others take several years to close. This indicator focuses on 

starts rather than closures which provides a better view of where resources are being 

applied in this fiscal year.

This indicator is effective for FY 2021 reporting in the FY 2023 Congressional 

Justification.

3 Exam Starts – Large 

Corporations 

The number of examinations 

started during the fiscal year of 

large corporate returns reporting 

assets of $250 million and above

Addition – This new indicator aligns with the 2020 IRS Table 17 Data Book changes 

which are based on “in process” examinations reported by fiscal year.

This new indicator allows IRS to track the progress of examinations throughout the 

year, allowing for a direct and clear picture of IRS activities. Some examinations are 

closed within a year while others take several years to close. This indicator focuses on 

starts rather than closures which provides a better view of where resources are being 

applied in this fiscal year.

This indicator is effective for FY 2021 reporting in the FY 2023 Congressional 

Justification.

4 Enterprise Self Assistance 

Participation Rate 

Modify – update the existing Online Payment Agreements (OPA) and Installment 

Agreements (IA) applications to include business taxpayers and include a new chatbot 

application for OPAs and IAs for small business and self-employed taxpayers; 

modified for FY 2022 reporting.


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Section III – Supplemental Information

3.1 – Summary of Capital Investments

I. Introduction

The IRS Information Technology (IT) organization enables the business operations and modernization of the nation’s tax 

system. IT continues to provide critical support needed as the IRS faces an ever-changing and complex tax administration 

environment and has experiencedlarge shifts inoperations since the IRS first embarkedonitsmodernization journey in 2019. 

Since then, the IRS has navigated unexpected changes that have both challenged and accelerated modernization efforts—from 

the emergence of new technology and taxpayer expectations to an ongoing global pandemic. The IRS is at an inflection point,

having concluded the first phase of the six-year IRS Integrated Modernization Business Plan. The IRS will continue to adapt 

as it embraces industry-leading technology and meets taxpayer needs in an ever-evolving digital world.

With the funding provided throughthe American Rescue Plan (ARP) Act of 2021 and other resources, the IRS has strong 

momentum behind modernization, with a clear vision for delivering near-term impact and long-term transformation. How 

quickly the IRS can advance in the modernization journey is dependent on the resources available. As the IRS Commissioner 

has noted, IRS employees are making a difference and want to continue to successfully pursue the mission on behalf of our 

country. The road ahead is full of challenges, both known and unknown, but we are confident that the plan, if adequately 

resourced, paves the way to providing the highest-quality service to taxpayers and the tax community.

The Capital Investment Strategy is guided by the IRS Mission, IT Mission, and IT Vision. These key strategic documents 

provide direction coupled with the Modernization Business Plan presents how the technology initiatives and IT investments 

achieve this vision. 

Figure 3.1
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II. IT Strategic Plan

As part of the Taxpayer First Act, the IRS developed and is implementing a multi-year IT strategic plan that strengthens the 

agency’s ability to communicate and plan for long-term technology needs. The IRS developed the IT Strategic Plan to articulate 

goals and objectives to achieve the IRS technology target state and deliver value to taxpayers. This plan is structured to address 

key factors driving the opportunity for change, including the need to meet the public’s expectations, simplify the existing IRS 

technology base, adopt emerging technology trends, stay ahead of cybersecurity threats, comply with federal mandates and 

guidelines, and support the workforce with the advanced technology training they need to stay current in their skills. The 

implementation of these goals and objectives is captured through the Annual Key Insights Report (AKIR) and the integrated 

enterprise architecture, which includes the Enterprise Technology Blueprint (ETB) and the Target Enterprise Architecture 

(TEA).

Figure 3.2- IT Strategic Goals FY 2020-2024

The IT Strategic goals set the enterprise-wide technological priorities, which then inform the long-term technological vision 

published in the Enterprise Technology Blueprint.

III. Enterprise Technology Blueprint (ETB)

The Enterprise Technology Blueprint articulates the envisioned long-range technology environment and describes how 

technology will be employed in support of the strategic IRS business direction. This artifact depicts the adoption of advancing 

capabilities, modernizing applications and technical services within the IRS production environment. The ETB is organized 

around the interrelated elements of the IRS Enterprise Architecture framework, as shown in Figure 2, to provide a cross-cutting 

frame of reference for analyzing the current state of IRS operations and to envision a future state. It is intended to facilitate 

dialogue among IRS business and IT leaders around future vision and priorities; align business and IT strategies; guide 

enterprise architecture planning and solutions development; and enable line of sight for evaluating investment proposals. The 

ETB also encompasses a set of interrelated views that depict the future of tax systems, IT operations, and IT services to achieve 

the IRS vision. The ETB is a living document that is continuously reviewed and updated as appropriate.
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Figure 3.3 - IRS Enterprise Architecture Framework

The ETB is further defined by the Tax Administration Reference Architecture (Figure 3 below), which is a strategic vision 

for the interconnected set of tax administration functions the IRS will perform in delivering services for customers, and the

technology enablers that will support tax administration. 

Figure 3.4 - Tax Administration Reference Architecture

In combination with the IRS and IT Strategic Plans, the ETB and the Tax Administration Reference Architecture capture the 

enterprise vision for the IRS technology environment. The IRS Integrated Modernization Business Plan, described in Section 

IV, highlights specific technology initiatives and IT investments that realize this vision. 
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IV. IRS Integrated Modernization Business Plan

The IRS Modernization Plan is organized around four modernization Pillars – Taxpayer Experience, Core Taxpayer Services 

& Enforcement, Modernized IRS Operations, and Cybersecurity & Data Protection.

Taxpayer Experience

The IRS will provide taxpayers a wide range of modern options for interacting with the IRS to answer questions 

and resolve tax issues. The agency will deliver real benefits for taxpayers, tax professionals, and the tax 

community, while allowing IRS employees to operate more efficiently and effectively. 

Core Taxpayer Services and Enforcement

The IRS will evolve core tax systems through data-driven operations and decision-making, real-time tax processing, 

and core tax administration systems integration. The agency will use technology to enhance identification of 

noncompliance and fraud while reducing processing time for taxpayers. The IRS will also improve compliance 

through earlier intervention, easier (self) correction options, and powerful enterprise platforms. 

Modernized IRS Operations

The IRS will improve underlying system infrastructure by reducing the complexity of the agency’s technical 

environment, enhancing, and expanding workforce support technologies, and adopting leading industry practices 

and technologies that deliver new and sustained efficiencies like cloud and robotic process automation. 

Cybersecurity and Data Protection

The IRS will ensure taxpayer administration and operational data are safe and secure from all internal and external 

threats. The agency will formally implement a “zero trust” model to enhance management capabilities for 

vulnerability identification, threat assessment, identity verification, access controls, cybersecurity operations, and 

network security. These improvements are necessary to secure information assets in a dynamic cybersecurity 

landscape and to facilitate successful taxpayer interactions in support of the IRS mission. 

For each of these four pillars, the IRS has identified key objectives that represent the impacts and expected outcomes of 

modernization. The objectives are achieved by implementing a set of programs and initiatives in that Pillar. These programs 

are combined into logical Program Groupings that lead to outcomes that streamline delivery and bring real value to taxpayers 

and the workforce. The IRS recognizes that to keep pace with an evolving technological landscape, individual programs may 

change over time. The objectives and program groupings illustrated in Figure 4reflect the IRS’s current plans for 

modernization.
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Figure 3.5 - IRS Modernization Plan Organizing Construct

Fundamental to the success of IRS modernization is a strong technology environment that supports the growth of IRS 

programs and increases operational efficiency. The IRS will establish a robust IT foundation through four Program 

Groupings within the Modernized Operations Pillar depicted in Figure 5. These Technology Modernization Foundation Areas 

(Tech Foundation Areas) are Cloud, Data & Analytics, Artificial Intelligence & Machine Learning, and IT Service 

Management.
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Figure 3.6 - Foundational Areas

This enables the IRS to “future-proof” its technology foundation by implementing flexible, industry-leading platforms and 

infrastructure that can rapidly scale and adapt in the face of new legislation and changing taxpayer needs. Collectively these 

Tech Foundation Areas will enable programs across all four modernization Pillars. For example, cloud technology 

implemented in the Modernized IRS Operations pillar provides a platform on which individual and tax professional accounts 

will be built to adapt quickly and efficiently to future taxpayer needs under the Taxpayer Experience Pillar.

The IRS Integrated Modernization Business Plan is aligned to both the Treasury and IRS Strategic Plan and directly advances 

three cross-agency priority goals included in the President’s Management Agenda:

1. Modernize IT to increase productivity and security

2. Leverage data as a strategic asset

3. Improve customer experience with Federal services
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3.2–IRS Performance Measures Table

NOTE: The IRS is facing unprecedented correspondence inventory levels caused by the COVID-19 pandemic, which will continue to 

contribute to higher call volumes and related inquiries throughout the year. Despite steady progress, funding constraints remain a barrier 

to addressing these significant inventory levels. To substantially reduce the inventory the IRS made a concerted effort to realign 

qualified staff from enforcement. The realignment of resources to work the inventory will affect FY22 year-end taxpayer services and 

enforcement performance results.

Performance Measures

FY2017 

Actual

FY2018 

Actual 

FY2019 

Actual

FY2020 

Actual

FY2021 

Actual

FY2021 

Target

FY2022 

Target

FY2023 

Target

Customer Service Representative Level of Service (LOS)1 77.1% 75.9% 65.4% 53.1% 18.5% 32.0% 30.0% 85.0%

Customer Accuracy - Tax Law (Phones) 96.7% 95.5% 91.6% 91.0% 92.8% 90.0% 89.0% 89.0%

Customer Accuracy - Accounts (Phones) 96.0% 96.1% 94.3% 93.5% 93.0% 91.0% 89.0% 89.0%

Timeliness of Critical Filing Season Tax Products to the Public2 93.1% 59.6% 92.6% 78.4% 92.0% 85.0% 89.0% 89.0%

Timeliness of Critical TE/GE & Business Tax Products to the Public2 96.7% 100.0% 96.1% 96.0% 92.9% 85.0% 89.0% 89.0%

Enterprise Self-Assistance Participation Rate3 79.0% 82.0% 85.4% 90.6% 92.3% 89.0% 91.0% 91.0%

Taxpayers Satisfied with the IRS (based on 100 point scale)4 74 74 73 74 70 Indicator Indicator Indicator

Examination Efficiency - Individual 121 131 109 76 108 111 100 114

Time to Start Compliance Resolution (new FY20)5 58.8% 60.1% 60.9% 66.3% 66.0% Indicator Indicator Indicator

Time to Resolve Compliance Issue After Filing (new FY20)5 491 494 469 491 484 Indicator Indicator Indicator

Repeat Non-Compliance Rate (new FY20)

5 29.2% 30.0% 31.4% 35.6% 30.7% Indicator Indicator Indicator

Collection Coverage (Units) 42.2% 41.6% 41.3% 34.9% 41.2% 33.0% 36.5% 32.1%

Exam Starts - High Income Individuals (new FY21)5 1,941 2,307 2,108 2,693 2,227 Indicator Indicator Indicator

Exam Starts - Partnerships (new FY21)5 10,221 9,033 5,823 4,106 4,327 Indicator Indicator Indicator

Exam Starts - Large Corporations (new FY21)5 2,577 2,396 2,009 1,700 1,490 Indicator Indicator Indicator

Cost to Collect $100 $0.34 $0.34 $0.33 $0.35 $0.33 Indicator Indicator Indicator

Criminal Investigations Completed 3,089 3,051 2,797 2,624 2,766 2,600 2,600 2,500

Conviction Rate 91.5% 91.7% 91.2% 90.4% 89.4% 92.0% 92.0% 92.0%

Rentable Square Feet per Person 297 301 298 278 278 280 270 260

Percent of Aged Hardware 52.3% 45.5% 31.0% 16.0% 9.3% 20.0% 20.0% 20.0%

Percent of Major IT Investments within +/- 10% Cost Variance at the 

Investment Level 50.0% 72.2% 88.9% 84.2% 94.1% 90.0% 90.0% 90.0%

Percent of Major IT Investments within +/- 10% Schedule Variance at the 

Investment Level 88.9% 83.3% 88.9% 94.7% 100.0% 90.0% 90.0% 90.0%
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3.3– Return on Investment (ROI) for IRS Major Enforcement Programs

The actual cost and actual revenue collected for FY 2017through FY 2021for the three major enforcement programs, 

Examination, Collection, and Automated Underreporter (AUR) are provided below. The activities included in these programs 

include:

Examination Program conducts examinations of tax returns of individual taxpayers, businesses, and other types of 

organizations to verify that the tax reported is correct. This includes examinations of individuals, small businesses, selfemployed, large corporate businesses, partnerships, international, estate and gift, excise tax and employment tax-exempt 

organizations, qualified pension benefit plans, and government entities. The examination costs include the cost of the Field 

Exam, Correspondence Exam, IRS Chief Counsel, and Appeals functions.

Collection Program collects delinquent taxes and secures delinquent tax returns through the appropriate use of enforcement 

tools, such as lien, levy, seizure of assets, installment agreement, offer-in-compromise, substitute-for-return, summons, and 

IRC section 6020(b) (which allows the IRS to prepare returns if a taxpayer neglects or refuses to file), and provides education 

Customer Service Representative (CSR) Level of 

Service

The number of toll free callers that either speak to a Customer Service Representative or receive informational 

messages divided by the total number of attempted calls.

Customer Accuracy – Tax Law Phones The percentage of correct answers given by a live assistor on Toll-free tax law inquiries.

Customer Accuracy – Customer Accounts 

(Phones) The percentage of correct answers given by a live assistor on Toll-free account inquiries.

Timeliness of Critical TE/GE & Business Tax 

Products to the Public

The percentage of Critical Tax Exempt/Government Entities (TE/GE) and Business (CTB) tax products available to the 

public seven calendar days before the official IRS start of the individual filing season. CTB tax products are forms, 

schedules, instructions, and publications used by large number of TE/GE and Business filers to prepare a complete and 

reasonably accurate return or form by the filing date occurring during the fiscal year (e.g., income tax, excise tax, exempt 

organization return, etc.).

Timeliness of Critical Individual Filing Season Tax 

Products to the Public

The percentage of Critical Individual Filing Season (CIFS) tax products available to the public seven calendar days 

before the official IRS start of the (individual) filing season. CIFS tax products are those tax forms, schedules, 

instructions, and publications required by large number of filers to prepare a complete and reasonably accurate Individual 

Income Tax Return.

Enterprise Self Assistance Participation Rate The percentage of taxpayer assistance requests resolved using self-assisted automated services.

Taxpayers Satisfied with the IRS

The percentage of taxpayers satisfied with the IRS according to the American Customer Satisfaction Index (ACSI) 

survey. The All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and Electronic Filer 

Customer Satisfaction Index Scores. Based on a 100 point scale.

Examination Efficiency – Individual (1040) The sum of all individual 1040 returns closed by SB/SE, W&I, TE/GE, and LB&I (Field Exam and Correspondence Exam 

programs) divided by the total Full-Time Equivalent (FTE) expended in relation to those individual returns.

Time to Start Compliance Resolution The percentage of all individual income tax enforcement cases started within six months of the return posting date.

Time to Resolve Compliance Issue After Filing The median time it takes to close all individual income tax enforcement cases in days (excluding disaster, bankruptcy, 

and TEFRA cases for exam and collection cases that are not closed as full paid), starting from filing date.

Repeat Non-Compliance Rate The percentage of individual taxpayers in a fiscal year with additional non-compliance two years after the initial tax year 

that contains a filing, payment, or reporting compliance issue, compared to total taxpayers.

Collection Coverage The volume of collection work disposed compared to the volume of collection work available.

Exam Starts - High Income Individuals The number examinations started during the fiscal year of individuals with a total positive income of $10 million and 

above.

Exam Starts - Partnerships The number examinations started during the fiscal year of partnerships.

Exam Starts - Large Corporations The number examinations started during the fiscal year of large corporate returns reporting assets of $250 million and 

above.

Cost to Collect $100 The cost of collecting $100 is computed as total operating costs divided by gross collection divided by 100. 

Criminal Investigations Completed

The total number of subject criminal investigations completed during the fiscal year, including those that resulted in 

prosecution recommendations to the Department of Justice as well as those discontinued due to a lack of prosecution 

potential. 

Conviction Rate The percent of adjudicated criminal cases that result in convictions.

Rentable Square Feet per Person The amount of Rentable Square Feet the IRS maintains per person requiring space.

Percent of Aged Hardware This measure shows the quantity of IT hardware in operation past its useful life as a percentage of total hardware in use.

Percent of Major IT Investments within +/- 10% 

Cost Variance at the Investment Level 

Number of major IT investments within +/-10 percent variance between planned total cost and projected/actual cost 

within a fiscal year divided by the total number of major IT investments in that fiscal year.

Percent of Major IT Investments within +/- 10% 

Schedule Variance at the Investment Level 

Number of major IT investments within +/-10 percent variance between planned days and projected/actual days within a 

fiscal year divided by the total number of major IT investments in that fiscal year.

Budget Level Performance Measure Descriptions
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to taxpayers to enable future compliance. The cost of the Collection program includes Automated Collection System (ACS), 

Field Collection, and Payment Compliance/Correspondence Collection.

Automated Underreporter (AUR) Program matches payer information returns (Forms 1099, W-2, etc.) against data 

reported to the IRS on individual tax returns. The information is verified to identify any discrepancies. If a discrepancy is 

found, the case is given to a tax examiner for research and analysis. If the tax examiner is unable to resolve the discrepancy, 

the IRS issues a proposed notice and generates a proposed assessment. 

ROI is calculated by dividing revenue by cost. This information provides an indication of the ROI for the three major 

enforcement programs over time. Enforcement revenue collected in a fiscal year includes tax, interest, and penalties from 

multiple taxyears. Some enforcement activities take more than a year to close and may generate revenue over several years. 

In addition, these data reflect the average return on investment for these programs and do not include the indirect effects of 

IRS enforcement activities on voluntary compliance. Net revenue is maximized only when resources are allocated according 

to marginal direct and indirect return on investment, but those ratios are much more challenging to estimate than the average

ROI. As a result, the IRS will continue to allocate enforcement resources across a range of enforcement activities to ensure 

taxpayers pay the taxes they owe.

Dollars in Millions

Enforcement Program Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI

IRS Total $5,506 $56,914 10.3 $5,559 $59,366 10.7 $5,439 $57,523 10.6 $5,560 $51,084 9.2 $5,634 $74,999 13.3

Examination 3,693 15,102 4.1 3,716 15,017 4.0 3,581 10,877 3.0 3,750 8,253 2.2 3,792 11,275 3.0

Collection 1,600 36,498 22.8 1,635 38,985 23.8 1,631 41,793 25.6 1,616 38,948 24.1 1,593 57,834 36.3

Automated Underreporter (AUR) 214 5,314 24.9 208 5,364 25.7 226 4,853 21.5 194 3,884 20.0 249 5,889 23.7

FY 2017 FY 2018 FY 2019

1

The cost of the enforcement programs was calculated using budget data from the IRS Integrated Financial System (IFS) and includes direct dollars and FTE from the Enforcement appropriation, Exam and 

Collections budget activity, and dollars from the Operations Support appropriation prorated using actual FTE realized for each major enforcement program.

FY 2020 FY 2021


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Section IV – Appendix

4.1 - COVID-19 Supplemental Funding

Table 1: Spend Plan Including Realignments and Obligations through March 20, 2022

The IRS received $15 million in the Families First Coronavirus Response Act and $750.7 million in the Coronavirus Aid, Relief and 

Economic Security Act for the IRS to change its operations to operate during the pandemic and implement EIPs and other tax changes. 

The IRS received an additional $509 million in the Consolidated Appropriations Act, FY 2021, to carry out a second round of EIPs and 

address COVID-related tax administration issues. Finally, the IRS received $1.465 billion in the American Rescue Plan for a third round 

of EIPs and information technology modernization as well as $397.2 million to carry out advance payments for the CTC. For additional 

informationon IRS’s COVID related programs, please reference the Treasury Coronavirus Relief, Response, Aid, and Recovery 

Programs Congressional Justification. 

Appropriation

$ in Thousands Initial Spend Plan Realignments 1

Current Spend 

Plan

Obligations through 

March 20, 2022 Balance

CARES Act and Families First Coronavirus Response - Expired

Taxpayer Services $352,900 $7,891 $360,791 $360,791 $0

CARES Act - Rebates (P.L. 116-136) 293,500 7,891 301,391 301,391 0

CARES Act - Supplemental (P.L. 116-136) 59,400 59,400 59,400 0

Enforcement $79,200 ($16,497) $62,703 $62,642 $61

CARES Act - Rebates (P.L. 116-136) 37,200 (16,497) 20,703 20,685 18

CARES Act - Supplemental (P.L. 116-136) 42,000 42,000 41,957 43

Operations Support $333,600 $8,606 $342,206 $341,675 $531

Families First Coronavirus Response Act (P.L. 116-127) 15,000 15,000 14,988 12

CARES Act - Rebates (P.L. 116-136) 170,000 8,606 178,606 178,566 40

CARES Act - Supplemental (P.L. 116-136) 148,600 148,600 148,121 479

Total CARES Act and Families First Coronavirus Response $765,700 $765,700 $765,108 $592

Consolidated Appropriations Act, FY 2021 (EIP2) - Expired

Taxpayer Services $196,435 $196,435 $196,385 $50

Consolidated Appropriations Act, FY 2021 (P.L. 116-260) 196,435 196,435 196,385 50

Operations Support $312,565 $312,565 $305,739 $6,826

Consolidated Appropriations Act, FY 2021 (P.L. 116-260) 312,565 312,565 305,739 6,826

Total Consolidated Appropriations Act, FY 2021 $509,000 $509,000 $502,124 $6,876

American Rescue Plan

Taxpayer Services $422,125 ($2,845) $419,280 $317,599 $101,681

Advance Tax Year 2021 Child Tax Credit (P.L. 117-2) 206,300 206,300 128,492 77,808

Cost of Economic Impact Payment 3 (P.L. 117-2) 215,825 (2,845) 212,980 189,107 23,873

Operations Support $939,575 $2,845 $942,420 $397,172 $545,248

Advance Tax Year 2021 Child Tax Credit (P.L. 117-2) 190,900 190,900 140,689 50,211

Cost of Economic Impact Payment 3 (P.L. 117-2) 248,675 2,845 251,520 197,649 53,871

Cost to Integrate, Modernize, and Secure IRS Systems (P.L. 117-2) 500,000 500,000 58,834 441,166

Business Systems Modernization $500,000 $500,000 $117,035 $382,965

Cost to Integrate, Modernize, and Secure IRS Systems (P.L. 117-2) 500,000 500,000 117,035 382,965

Total American Rescue Plan $1,861,700 $1,861,700 $831,806 $1,029,894

Total by account

Taxpayer Services 971,460 5,046 976,506 874,775 101,731

Enforcement 79,200 (16,497) 62,703 62,642 61

Operations Support 1,585,740 11,451 1,597,191 1,044,586 552,605

Business Systems Modernization 500,000 500,000 117,035 382,965

Total $3,136,400 $3,136,400 $2,099,038 $1,037,362

1

 Included in the realignments is a $70 million realignment within the same appropriation, Operations Support. Therefore, it will not be reflected in this table. This realignment was within the American 

Rescue Plan - Cost of Economic Impact Payment 3, where $70 million budgeted for IT requirements was realigned to pay for increased postage costs. Spend plan requirements are estimated based on 

current projections and additional realignments may be necessary.

2 For the supplemental funds from the CARES Act (P.L. 116-136) and Families First Coronavirus Response Act (FFCRA) (P.L. 116-127), IRS obligated a total of $765.1 million. The $592 thousand 

balance of the CARES Act funds expired at the end of FY 2021. IRS fully utilized the FFCRA funds. For the supplemental funds from the Consolidated Appropriations Act of FY 2021 (P.L. 116-260), IRS 

obligated $502.1 million. The $6.9 million balance expired at the end of FY 2021. For the supplemental funds from the American Rescue Plan (P.L. 117-2), IRS has obligated $826 million through 

December 31, 2021.
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4.2- Carryover Investments from FY 2022 Congressional Justification

During the latter part of the development of the 2023 Budget, a full year FY 2022 appropriations bill was not enacted. 

Therefore, we assume the starting point to be an annualized CR, the FY 2023 budget includes FY 2022 CJ program increases. 

Although the investments vary slightly in cost, the overall amounts from FY 2022 remain the same. The FY 2022 budget 

levels may impact the prioritization of these investments in FY 2023. The following descriptions are summarized from the 

FY 2022 CJ.

Putting Taxpayers First +$179,052,000 / +294 FTE

User Authentication +$27,000,000 / 0 FTE 

Section 2304 of the Taxpayer First Act (TFA) requires the IRS to verify the identity of any individual opening an e-Services 

account with the Internal Revenue Service before such individual canuse the e-Services tools. IRS will utilize the services of 

a third-party vendor, which charges a variable rate based on the authentication option for each new taxpayer who signs up for 

an IRS online account. Funding will provide authentication services for approximately7.9 million additional taxpayers will 

register for such services as applying for an Identity Protection Personal Identification Number, obtaining a transcript, 

viewing account information, entering into an Online Payment Agreement, and functionalities of the Tax Professional 

Account application. 

Expand Digital Services +$104,720,000 / +168 FTE

Funding for this initiative will enhance the IRS’s Online Account for individual taxpayers and expand this service to tax 

professionals. Some aspects of this initiative will rely on strengthening and expanding use of data. Additional authenticated 

online self-services will include account updates, secure messaging and notice delivery, full interaction history and issue 

status, refund tracking, expand digital payment options, increase electronic receipt of filings and scanning/data capture for 

Position Type/Other Costs FTE Positions $000

 User Authentication 0.00 $27,000

 Contract Services 27,000

Expand Digital Services 168.5 337 $104,720

Appeals Officer 9 18 1,273

Attorney 2 4 484

IT Specialist 157.5 315 25,188

Contract Services 77,775

Seamless Experience 115.5 231 $35,063

Revenue Agent 50 100 12,495

Appeals Officer 16 32 2,966

IT Specialist 49.5 99 15,544

Contract Services 4,058

Focused Strategies for 

Reaching Underserved 

Communities 10 20 $12,269

Tax Law Specialist 3.5 7 456

Program Analyst 6.5 13 7,313

Contract Services 4,500

Total 294 588 $179,052
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paper filings, document upload, and more. Taxpayers will see expanded scope for e-signatures, secure document exchange 

and expanded payment options like Venmo and PayPal, and web chat and other digital assisted services, including: 

• Expanded Online Account features:

- View Payment, Make a Payment, and Create A Payment Planand

- Digital Notices w/ Opt-in Subscription for Notifications.

• Tax Professional Account: Establish Digital Power of Attorney (Form 2848) with eSignature;

• Secure document exchange: Large and Small Business Secure Messaging/File Sharing (Document Upload);

• Digitize more tax forms;

• Expanded payment options to include tools like Venmo, PayPal, Apple Wallet, and Google Pay; and

• Foundational IT infrastructure enhancements for eSignature solutions.

Seamless Experience +$35,063,000 / +116 FTE

The IRS will provide taxpayers with their preferred channel of service (web, phone, in person, etc.) and guide them through 

the necessaryassistance to fulfill their needs. Information about the taxpayer’s entire experience (past and present) will be 

available to every representative of the organization and across all channels in real time. With the introduction of an 

integrated omni channel model, a taxpayer could begin on IRS.gov and then shift to click to-call or chat options to engage an 

assistor without leaving the website. With the introduction of AI and robotics, the IRS can better help the taxpayer. The 

following are highlights of what will be accomplished with FY 2022 funding: 

• Expand Automated Callbackby adding 10additional applications and provide Wait Time Transparency to the 

taxpayer. Currently, there is callback on 5 applications, representing 19percent of total average demand;

• Continue integrating Enterprise Case Management (ECM) systems towards a 360-degree view of the taxpayer for 

all taxpayer-facing employees;

• Expand appointment process and system to all taxpayer-facing employees, including both service and compliance

(currently, taxpayers can only make appointments with Taxpayer Assistance Center (TAC) employees);

• Expand and improve routing options and create an escalation process to resolve issues outside the scope of the 

initial contact employee; and

• Develop AI-Powered Digital Appointments that will allow the taxpayer to use a chatbot to make appointments.

Focused Strategies for Reaching Underserved Communities +$12,269,000 / +10 FTE

Bringing together ongoing efforts within the IRS and leveraging its ecosystem of partnerships, the IRS will establish a 

consolidated program to engage with historically underserved communities to address issues of communication, education, 

transparency, trust, and limited access to quality products and services. As shown by the EITC Underserved Outreach Project 

in 2014, developing specific strategies for underserved communities is crucial to increasing voluntary compliance. The EITC 

project increased filingrates by adding 53,000 filers and $27 million in additional taxes paid. The IRS will develop strategies 

for each underserved segment based on focused research, best practices, and lessons from partners on ways to improve 

interactions within these communities. Immediate benefits to the taxpayer will include new assistance in hard-to-reach areas 

where receiving help is currently difficult, convenience via virtual chatroom authentication procedures, and expanded access 

toadditional information to assist international taxpayers. Aspects of this initiative will rely on improving the IRS’s proactive 

outreach, expanding, and strengthening the IRS’s network of partnerships and leveraging relationships across public, private, 

and non-profit sectors. The following are highlights of what will be accomplished with FY 2022 funding: 

• Establish an organization within the IRS dedicated to developing, overseeing, and implementing these strategies 

with an agency-wide perspective and scope;
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• Establish stronger community presence by hiring and training new staff to add new professionals in hard-to-reach 

communities;

• Use a data-driven approach to identifying content for translationto four additional languages;

• Increase multi-lingual staffing and better leverage employee multilingual skills;

• Authenticate international online accounts;

• Host virtual chat rooms and live forums for international taxpayers; and

• Expand access to information and services to taxpayers living abroad.

Ensure Fairness of the Tax System +$469,293,000 / +2,513FTE

Increase Examination of Large Business, Partnership and High Wealth Individual Returns +$213,125,000 / +915 FTE

This investment will allow the IRS to increase examinations of business organizations and high wealth individuals, which 

have become major sources of compliance risk in recent years. The IRS contends with a wide variety of business 

organizations operating in the United States and abroad with different filing requirements, and their rapid growth represents a 

significant compliance risk. These organizations include businesses such as sole proprietors, corporations, partnerships, and

S-corporations, as well as trusts and non-profits. Partnership businesses continue to be the fastest growing segment of all tax 

returns filed. 

The IRS is requesting additional examination employees to offset declines in staffing and enhance its Large Corporate 

Compliance (LCC) program. This program requires additional revenue agent employees and supporting management to 

conduct examinations of taxpayers in the LCC program. The number of large corporate (>$250M Assets) return filings has 

increased from 7,879 for 2010 returns to 12,102 for 2020returns. During that time the decline in staffing has resulted in the 

large corporate audit coverage rate decreasing from 36.5 percent for 2010 returns to 7.7percent for 2016 returns. This results 

in increased risk to the integrity of the nation’s voluntary tax compliance system. 

Another increasing source of compliance risk is high wealth individuals. High wealth individuals frequently operate complex 

enterprises consisting of multiple related entities that often have international components. The IRS takes a unified look at

the entire web of entities controlled by high wealth individuals to better assess the risks of noncompliance. Large Business & 

International’s Global High Wealth (GHW) program uses identification models to filter based on estimated net worth in the 

Position Type/Other Costs FTE Positions $000

Increase Examination of Large Business, 

Partnership and High Wealth Individual Returns 741 1,482 $178,201

Revenue Agent/Mgrs 621.5 1,243 161,504

Techincal/Territory Mgr 3 6 694

Economist/Mgr 7.5 15 2,010

Engineers/Mgr 7.5 15 1,968

Analyst/Clerical Spt 52.5 105 6,396

TE/Aide 49 98 5,629

Other Direct Costs 174 348 $34,908

Attorney 28 56 6,547

Counsel Ad Min Spt 4 8 779

Appeals Officer 107 214 19,929

Revenue Agent 16 32 5,207

Exam Aides/TE's 19 38 2,446

Total 915 1,830 $213,109
IRS - 93

tens of millions using data points including passive vs. non-passive income, interest, dividends, etc. The overall audit rate for 

the identified GHW taxpayer population (which generally ranges from 40,000-60,000 taxpayers per year), those with income 

and assets in the tens of millions of dollars, is 0.2percent. GHW uses a unique enterprise approach, which looks at the 

complete financial picture of high wealth individuals and the enterprises they control, that has proven successful, rather than 

the traditional return by return approach. GHW examiners average roughly $1,300 of recommended adjustments per exam 

hour on taxable entities and over $10,000 of recommended adjustments per exam hour on partnerships. This investment will 

more than double the size of GHW, thereby allowing it to double the number of examinations it conducts once new 

employees have completed training and become fully productive. 

This investment will allow the IRS to:

• Hire additional revenue agents who will be devoted solely to working partnership cases;

• Increase the number of auditors with specialized knowledge in partnership law and audit procedures;

• Double current audit coverage of partnerships within 4 years; and

• Produce additional enforcement revenue of approximately $1.86 billion from FY 2022-2026. 

Once implemented, this investment will allow the IRS to eventually double its compliance efforts on partnerships and high 

wealth returns. The resources sought in this investment will also allow the IRS to devote more resources to its core corporate 

work on large corporate examinations. Finally, this investment will allow the IRS to increase its work in the Cross Border 

and Treaty and Transfer Pricing Operations as needed to fully support corporate, partnership, and high wealth exams.

Expand Cyber Crimes and Applied Data Analytics Efforts +$56,732,000 / +134 FTE

Data sets and data science methodologies now exist to connect the most remote financial transaction between apparent 

disparate actors which can be the key piece of evidence to break open the most complex financial investigation. These 

techniques are integral to the work of the IRS’s Criminal Investigation Division (CI) and criminal case development.

This investment will be used to: 

• Establish a Criminal Data Team to identify existing and new data sources; 

• Hire inventory data and categorize its use; 

• Perform validation as needed; 

• Allow CI to intake, interrogate, mine and operationalize its available data appropriately; and 

• Align leading data practices in the private sector and other innovation opportunities.

Currently, the data created/received through investigations, received from law enforcement partners, and received through 

disclosures and referrals is not categorized or stored in an accessible location. As a result, CI’s ability to use that data for 

analytics and enforcement operations is very limited. New data sources, including open source and data held by other 

agencies, are identified almost daily and in most cases is currently not obtained or mined for its potential. A CI Data Team 

Position Type/Other Costs FTE Positions $000

Expand Cyber Crimes and Applied Data Analytics 

Efforts 129 258 $55,291

Special Agent 57 114 23,832

Analyst 72 144 10,361

Contract Support 21,098

Other Direct Cost 5 10 $1,441

 CT Legal Support-Attorney 5 10 1,441

Total 134 268 $56,732
IRS - 94

responsible for all CI data activities will make data intake and processing routine to enable effortless integration into CI’s 

most complex investigations and ultimately advance CI’s ability to enforce tax compliance.

CI is authorized to use a wide array of investigative techniques, including developing innovative approaches to investigations 

using existing data sets, commercial (purchased) data sets, data sets from other government agencies, and open source data 

sets. Funding is requested to purchase and ingest this data into a modern computing environment available to CI 

users. Additionally, CI partners with internal and external stakeholders to use robust advanced modeling and data-driven 

algorithms to deliver high impact investigations which either preempt or quickly address emerging threats and advance the 

mission of the IRS. A portion of these activities will require contractor funding for lead generation and case development 

using these modern techniques. 

In FY 2020, CI’s new National Analytics team within CI’s Applied Analytics section worked with 9 Field and HQ offices on 

pilot projects to test the efficacy of advanced analytical modeling in case development and field office investigations. As a

result, the need for analytical services across the field offices to pursue criminal tax enforcement far outpaced CI’s Applied 

Analytics capacity. This initiative will hire and train an additional 82 analysts (investigative analysts and data scientists) to 

work across the field offices on larger initiatives using advanced statistical modeling and machine learning techniques to 

identify criminals, criminal patterns, and illicit behaviors. CI’s Applied Analytics would stand up two or more teams to work

with CI’s investigative offices. With this initiative, CI will develop and train Field Office and Headquarters personnel in the 

tools/technology and the methodologies used to grow overall cyber and analytical capabilities. CI will also bring advanced 

modeling initiatives to maturity and provide more opportunities for innovation. In addition, funding will allow the IRS to 

advance IT technology to assist in the efforts of investigating cybercrimes.

CI continues to advance the level and degree of work performed in cybercrimes, whether it pertains to the investigation of 

dark web marketplaces, cryptocurrency-related fraud, or a host of other internet-based activities. The Cyber Support Unit will 

allow the IRS to provide a specialized skillset of capabilities around open-source intelligence, dark web research and 

cryptocurrency tracing aspects in support of ongoing investigations in the field. 

CI traces money all around the world, whether transmitted within the shadows of the dark web or otherwise. An example of 

CI’s ability todetect criminal activity involved a darknet-based Bitcoin Mixing Service. This major case investigated a 

darknet search engine and money laundering service that was integrated into major darknet markets such as AlphaBay, Silk 

Road II, Abraxxas, and many others. It worked by tumbling bitcoins from users and vendors on darknet markets with new, 

“clean” bitcoin to obfuscate the illicit source of the bitcoin. Approximately 356,000 bitcoins moved through the site, with a

value of over $300 million at the time of the transactions. Data obtained from these servers will assist investigations all 

around the world, since criminals use tumblers to obfuscate the crypto trail. Evidence obtained from this investigation will 

serve as the missing link or puzzle piece in many sophisticated bitcoin transaction investigations. 

Cyber Agents will be working the most complex cyber investigations within CI and afforded the necessary access to 

specialized tools and resources needed to prosecute this level of criminals. IRS will use these funds to stand-up and equip the 

Advanced Collaboration and Data Center (ACDC), including Special Agents, tools, technology, and capabilities in one 

physical location. This new center will be able to complete approximately 800 additional criminal investigations from FY 

2023to FY 2027.
IRS - 95

Strengthen Taxpayer Confidence in the Tax-Exempt Sector +$18,581,000 / +115 FTE

The entities that fall with Tax Exempt & Government Entities’ (TE/GE) jurisdiction are diverse in form and function, ranging 

from charitable organizations and small business retirement plans to multi-billion-dollar bond issuances. The one thing they 

share is that they are all exempt from or not subject to federal income tax. Although these organizations are generally exempt 

from taxation on their income, they may be subject to other federal taxes, such as excise and employment taxes, andthey 

contribute substantially to the economy, controlling$47trillionin assets, employing almost 25 percent of the American 

workforce, and accounting for about 20 percent of nearly $1.3 trillion in federal tax expenditures.

Taxpayer confidence in the tax-exempt sector is essential to preserving and protecting charitable tax deductions and the 

retirement savings of everyday Americans. The IRS proposes a multifaceted approach to increase taxpayer confidence and 

ultimately protect these taxpayer investments to include:

• Protect Retirement Plans: requestedpositions will conduct enforcement activities to identify compliance issues with 

sponsored retirement plans and assist small businesses with their regulatory requirements to maintain their tax 

preferred status. These activities ultimately protect their employees’ retirement plan contributions. 

• Protect Tax-Exempt Sector and Government Entities: requestedpositions will address tax-compliance 

responsibilities of organizations exempt from income tax under Internal Revenue Code Section (IRC) 501 including 

charities, private foundations, and other types of exempt organizations, such as business leagues, labor unions, and 

veterans' organizations; Political organizations described in IRC 527. These resources will increase compliance 

with unpaid taxes for taxable activities in the exempt organization sector through enforcement activities. Overall, 

these activities will result in increased compliance, and help preserve the public’s confidence in their charitable 

donations. Inaddition, these resources will facilitate compliance of municipal debt issuance of tax-advantaged 

bonds including tax-exempt bonds, tax credit bonds and direct pay bonds. These resources will also assist Indian 

Tribal Governments, and Federal, State, and Local Governments in meeting their federal tax obligations. Ultimately 

these resources will help various types of tax-exempt and government entities, and tax-exempt bond issuers remain 

compliant with their respective federal tax obligations and support improving taxpayer confidence throughout these 

sectors. 

Position Type/Other Costs FTE Positions $000

Protect Retirement Plans 49.5 99 $7,994

Revenue Agent 45 90 7,314

Manager 3 6 466

Clerk 1.5 3 214

Protect Tax-Exempt Sector and Government 

Entities 49.5 99 $7,994

Revenue Agent 45 90 7,314

Manager 3 6 465

Clerk 1.5 3 214

Fraud Prevention 16 32 $2,593

Revenue Agent 15 30 2,438

Manager 1 2 155

Total 115 230 $18,581
IRS - 96

• Fraud Prevention: requestedpositions will support expanded fraud enforcement activities. While we recognize most 

stakeholders and taxpayers in the tax-exempt sector strive to remain compliant, there are purposeful bad actors 

engaging in increasingly complex transactions and structures to avoid taxation and to mask other illegal activities. 

These resources will be applied to directly address these emerging fraudulent activities and trends in the tax-exempt 

sector.

Once these staffing resources are fully trained, the IRS will be able to conduct an additional 3,192 examination closures. As a 

result, the public’s confidence will be strengthened as retirement plans become more compliant, unrelated business income 

taxes are addressed, and fraud is prevented in these important tax-exempt arenas. 

Increase Pre-Refund Audit and Examination +$45,619,000 / +455 FTE

The Correspondence Examination program fairly and effectively assist taxpayers by providing accurate and consistent 

information to help them understand the refundable tax credits and eligibility requirements. The program alsoaddresses the 

tax gap through increased enforcement throughindividual reporting compliance, such as refundable credits. This investment

will strengthen the integrity of the tax system and protect the public interest by detecting and preventingimproper refunds 

and by educating customers in accordance with the Taxpayer Bill of Rights. The additional staffing will be used to reverse 

and prevent a decline in the audit coverage rate, and simultaneouslyenhance the administration of refundable credits through 

a balanced approach that encourages eligible taxpayers to apply for the credits and reduces the number of claims paid in 

error.

Position Type/Other Costs FTE Positions $000

 Increase Pre-Refund Audit and Examination 455 910 $45,618

Tax Examiners 455 910 44,490

Contractual Services 1,128

Total 455 910 $45,618
IRS - 97

Enhance Enforcement Efforts +$106,525,000 / +809 FTE

This investment will allow additional examination and collection employees to increase efforts in critical Examination and 

Collection activities. The decline in staffing since FY 2010 has led to a decrease in the individual audit coverage rate from

1.0 percent in Tax Year 2010 to 0.43 percent in Tax Year 2017, which increases the risk to the integrity of the nation’s 

voluntary tax compliance system. The collection coverage rate, which is defined as the volume of collection work disposed 

compared to the volume of collection work available, has also seen a decline, dropping from 50.1 percent in FY 2010 to just 

34.9 percent in FY 2020. The additional resources will fund compliance priorities and allow for earlier case assignment and 

resolution.

Examination programs will provide increased emphasis on audits of small corporations and sole proprietors with business 

income. Collection programs will focus their efforts on high income non-filers and delinquent employment taxes. This 

investment is expected to annually produce additional enforcement revenue of $1.1 billion, once the new hires reach full 

potential in FY 2025, an ROI of $6.5 to$1. These resources will:

• Provide 500 additional examination staff to increase the number of audits and close more than 9,300 field 

examination cases and 12,000 correspondence examination cases, and 79,000 Automated Underreporter cases;

• Provide 420 additional collection staff to expand programs that address non-filing and underpayment of taxes to 

handle 21,800 additional field collection cases and 136,600 Automated Collection System cases; 

• Expand several Compliance Services Collection Operations programs that address non-filing of taxes through the 

notice process by 303,600 notice dispositions and cases;

Position Type/Other Costs FTE $000

Collection Programs 339 $40,344

Revenue Officers 116 18,457

Customer Service Representative 116 10,001

Tax Examiner 107 11,886

Support Staff

Examination Programs 348 $45,567

Revenue Agents 181 29,584

Tax Compliance Officers 78.5 7,597

Tax Examiner 83.5 7,860

Support Staff 5 526

Compliance PMOs 10 $1,357

Office of Fraud Enforcement 5 679

Office of Promoter Investigations 5 679

Other Direct Costs 112 $19,257

Appeals 48 9,136

Counsel 36 7,059

SB/SE Operations Support 8 1,136

WAGE - AM & SP 203

PGLD 3 397

HCO 3 385

TAS 14 942

Total 809 $106,525
IRS - 98

• The Office of Fraud Enforcement (OFE) will expand fraud awareness and strengthen ties between the civil and 

criminal enforcement arms of the IRS and with other federal departments and agencies. OFE will expand projects 

that investigate hidden ownership of virtual currencies with a focus on high income individuals and entities; and

• The Office of Promoter Investigations (OPI) will focus on taxpayers and promoters of abusive tax avoidance 

transactions including conservation easements, virtual currencies, and offshore transactions.

Expand Tax Compliance +$28,671,000 / +85 FTE

This investment will enhance overall enforcement efforts, increase the number of convictions, and expand the IRS’s 

capabilities in core tax enforcement areas. With an increase of approximately 400additional criminal investigations 

completed, after agents reach full potential and case time, would result in increased convictions. It serves to enforce the law, 

ensure compliance with tax responsibilities, and aid the IRS in combating fraud. This investment supports the IRS Strategic 

Goals by enforcing domestic and international compliance across all program areas while utilizing innovative approaches and 

strengthening existing expertise. Further, this investment will support initiatives designed to identify trends, detect high-risk 

areas of noncompliance, and prioritize enforcement approaches by applying advanced analytics.

These resources will also allow the IRS to increase its participation in multi-agency task forces dedicated to tax 

administration. They will:

• Enhance cooperation with state and local law enforcement agencies in jurisdictions where prosecutorial actions 

would have the greatest influence;

• Obtain information about ongoing criminal activity involving federal and state tax refunds allowing expedited 

prosecution by the Department of Justice to reduce the financial loss to the IRS and the taxpayer;

• Target larger-scale crime rings for maximum compliance results and publicity; and

• These resources will also support special agents conducting outreach to state and local law enforcement to expand 

the Law Enforcement Assistance Program. In addition, special agents will extend outreach efforts to practitioners 

from filing season only to year-round to provide information and address return preparer concerns.

This investment also will provide analysts to support this investment by gathering the data in support of the violations of tax 

and other financial laws and regulations enforced by the IRS. They will provide an analysis of this information, capturing the 

full scope of the identified questionable activities and provide hands on support to the criminal investigation. They will 

develop queries to obtain the necessary information and to perform an assessment of the responses to discern the 

interrelationships to determine impact and possible ramifications of the tax related criminal and financial activities.

Position Type/Other Costs FTE Positions $000

 Expand Tax Compliance 85 170 $28,671

Special Agent 66 132 26,130

Analyst 19 38 2,541

Total 85 170 $28,671
IRS - 99

Improve Live Assistance +$189,112,000 / +2,348 FTE

Increase Telephone Level of Service & Reduce Correspondence Inventory +$157,752,000 / +1,998 FTE 

This investment will allow the IRS to increase the telephone level of service (LOS) and significantly reduce the 

correspondence inventory.1 The IRS toll-free telephone customer service operation is a key part of the IRS’s service delivery. 

This investment provides a projected LOS of 30percent in FY 2022, assuming phone demand returns to pre-pandemic levels 

and the IRS can provide in-person services at pre-pandemic levels. Providing quality taxpayer service is crucial to ensuring 

voluntary compliance.

TAC Optimization Strategy +$31,360,000 / +350 FTE

This investment funds staffing increases to achieve optimal staffing levels for IRS Taxpayer Assistance Centers (TACs), 

improving the taxpayer experience. These staffing levels will allow the IRS to re-open TACs and restore office hours, 

allowing taxpayers to schedule appointments sooner. With increased TAC funding, the IRS anticipates additional contacts 

with over 880,000 taxpayers.

1 The customer service representatives who work the phones during the busy filing season are also the same employees who 

work the paper inventory. Thus, given the current backlog of paper inventory, IRS would be able to use these resources 

immediately for paper inventory reduction efforts if necessary.

Position Type/Other Costs FTE Positions $000

Increase Telephone Level of Service and Reduce 

Correspondence Inventory 1,998 1,998 $157,752

Seasonals 1,050 1,050 80,222

Customer Service Rep 888 888 73,254

Manager 60 60 4,276

Total 1,998 1,998 $157,752

Position Type/Other Costs FTE Positions $000

 Taxpayer Assistance Centers (TAC) 350 350 $31,360

Accounts Management Rep 350 350 12,600

Contractural Services 2135

Other Direct Costs 16,625

Total 350 350 $31,360
IRS - 100

Integrated Modernization Business Plan +$78,143,000 / +104 FTE

The Integrated Modernization Business Plan remains a key IRS priority. The Plan provides a long-term approach to 

technological advances, which will transform the taxpayer experience by making our services simpler, quicker, and more 

responsive. Additionally, the plan will deliver technology to enable a service experience comparable to private industry; 

streamline and integrate IT programs that provide top-quality service; retire and replace legacy systems with more sustainable 

infrastructure; and continue toprotect taxpayer data and address emerging threats.

The IRS continues to make progress implementing the Plan using the American Rescue Plan funding but needs additional 

resources to continue the modernization journey. 

Position Type/Other Costs FTE Positions $000

IT Modernization Plan 104 208 $78,143

IT Specialists 104 208 1,270

Contractual Services 65,045

Hardware/Software 11,828

Total 104 208 $78,143
IRS - 101

4.3– Summary of IRS FY 2023 Cyber Security Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2023 Cybersecurity Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2022 Annualized CR (ACR) $16,768 40 $17,258 66 $244,062 548 $38,100 19 $316,188 673

Changes to Base:

FY 2023 Maintaining Current Levels (MCLs) $492 $632 $6,960 $893 $8,977

Pay Annualization (2.7% average pay raise) 49 90 653 12 804

Pay Raise (4.6% average pay raise) 254 463 3,362 63 4,142

Non-Pay 189 79 2,945 818 4,031

Base Adjustment $369 1 $369 1

Adjustment to Reach Current Operating Levels 369 1 369 1

Subtotal FY 2023 Changes to Base $492 $1,001 1 $6,960 $893 $9,346 1

FY 2023 Current Services $17,260 40 $18,259 67 $251,022 548 $38,993 19 $325,534 674

Program Increases:

Putting Taxpayers First 81,000 102 81,102

Integrated Modernization Business Plan 5,348 2 5,348 2

Focused Strategies for Reaching Underserved Communities 1 1

Subtotal FY 2023 Program Increases $81,000 $103 $5,348 2 $86,451 2

Total FY 2023 Request $98,260 40 $18,259 67 $251,125 548 $44,341 21 $411,985 676

Dollar/FTE Change FY 2023 Request over FY 2022 ACR $81,492 $1,001 1 $7,063 $6,241 2 $95,797 3

Percent Change FY 2023 Request over FY 2022 ACR 486.00% 5.80% 1.52% 2.89% 16.38% 10.53% 30.30% 0.45%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT BSM TOTAL
IRS - 102

4.4– Summary of IRS FY 2023 Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2023 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2022 Annualized CR (ACR) $2,763,606 27,990 $5,004,622 35,604 $3,928,102 11,631 $222,724 308 $11,919,054 75,533

Changes to Base:

FY 2023 Maintaining Current Levels (MCLs) $108,631 $202,663 $119,339 $5,730 $436,363

Pay Annualization (2.7% average pay raise) 17,105 32,228 12,812 401 62,546

Pay Raise (4.6% average pay raise) 88,016 165,832 65,928 2,061 321,837

Non-Pay 3,510 4,603 40,599 3,268 51,980

Base Adjustment $90,285 825 $229,176 358 $115,991 $3,430 $438,882 1,183

Adjustment to Reach Current Operating Levels 90,285 825 229,176 358 115,991 3,430 438,882 1,183

Subtotal FY 2023 Changes to Base $198,916 825 $431,839 358 $235,330 $9,160 $875,245 1,183

FY 2023 Current Services $2,962,522 28,815 $5,436,461 35,962 $4,163,432 11,631 $231,884 308 $12,794,299 76,716

Program Increases:

Putting Taxpayers First 119,034 192 54,331 152 146,805 229 320,170 573

User Authentication 81,000 81,000

Taxpayer Experience Strategy 38,034 192 54,331 152 146,805 229 239,170 573

Ensure Fairness of the Tax System 370,857 2,493 98,396 20 469,253 2,513

Enhance Taxpayer Service 304,167 3,858 84,945 389,112 3,858

Integrated Modernization Business Plan 78,143 104 78,143 104

Critical IT Operations 39,521 36 39,521 36

Focused Strategies for Reaching Underserved Communities 10,169 7 10,169 7

Subtotal FY 2023 Program Increases $423,201 4,050 $425,188 2,645 $379,836 292 $78,143 104 $1,306,368 7,091

Total FY 2023 Request $3,385,723 32,865 $5,861,649 38,607 $4,543,268 11,923 $310,027 412 $14,100,667 83,807

Dollar/FTE Change FY 2023 Request over FY 2022 ACR $622,117 4,875 $857,027 3,003 $615,166 292 $87,303 104 $2,181,613 8,274

Percent Change FY 2023 Request over FY 2022 ACR 22.51% 17.42% 17.12% 8.43% 15.66% 2.51% 39.20% 33.77% 18.30% 10.95%

Technical Adjustments

Rent Adjustment 265,830 368,613 (634,443)

CFO Adjustment 33,040 176 42,051 224 (75,091) (400)

Subtotal FY 2023 Technical Adjustments $298,870 176 $410,664 224 ($709,534) (400)

Total FY 2023 Request incuding Technical Adjustments $3,684,593 33,041 $6,272,313 38,831 $3,833,734 11,523 $310,027 412 $14,100,667 83,807

Dollar/FTE Change FY 2023 Request Including Technical Adjustments over FY 2022 ACR $920,987 5,051 $1,267,691 3,227 ($94,368) (108) $87,303 104 $2,181,613 8,274

Percent Change FY 2023 Request Including Technical Adjustments over FY 2022 ACR 33.33% 18.05% 25.33% 9.06% -2.40% -0.93% 39.20% 33.77% 18.30% 10.95%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS SUPPORT BSM TOTAL


Department of the Treasury 

Departmental Offices 

Salaries and Expenses 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
DOSE-2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes .................................................... 10

E – Legislative Proposals .......................................................................................................... 11

Section II – Annual Performance Plan and Report ................................................................. 12

A – Strategic Alignment ........................................................................................................... 12

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Executive Direction Resources and Measures .............................................................. 12

Executive Direction Budget and Performance .......................................................................... 12

2.1.2 – International Affairs and Economic Policy Resources and Measures .......................... 13

International Affairs and Economic Policy Budget and Performance ...................................... 14

2.1.3 – Domestic Finance and Tax Policy Resources and Measures ........................................ 19

Domestic Finance and Tax Policy Budget and Performance .................................................... 19

2.1.4 – Treasury-wide Management and Programs Resources and Measures .......................... 24

Treasury-wide Management and Programs Budget and Performance ..................................... 26

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures....... 32

Note: FTEs in the above include 1 FTE funded through reimbursable resources. ................... 32

Committee on Foreign Investment in the United States Budget and Performance .................. 32

C – Changes in Performance Measures .................................................................................... 33

Section III – Additional Information ........................................................................................ 33

A – Summary of Capital Investments ....................................................................................... 33

 
DOSE-3 

Section I – Budget Request 

A – Mission Statement 

Treasury's mission is to maintain a strong economy by promoting conditions that enable 

equitable and sustainable economic growth at home and abroad, combating threats to, and 

protecting the integrity of, the financial system, and managing the U.S. government's finances 

and resources effectively. 

B – Summary of the Request 

The FY 2023 budget for Treasury Departmental Offices (DO) Salaries and Expenses (SE) 

provides necessary resources for the Treasury Department to address major issues confronting 

the U.S. economy and to rebuild Treasury’s institutional capacity. Funding is requested to 

support climate initiatives, equity assessments, the expansion of the Treasury attaché program, 

and cybersecurity and facilities improvements. 

These investments will enable Treasury to build on recent successes in fostering a robust and 

equitable economic recovery through implementation of pandemic relief programs; protecting 

the financial system by addressing risks related to real estate and digital assets; tackling the 

climate crisis by aligning public budgets, tax policy, and the flow of private capital with the goal 

of a global net-zero economy; and safeguarding our national security by improving the 

effectiveness of sanctions. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Executive Direction 88 $37,333 102 $35,706 140 $49,496 37.3% 38.6% 

International Affairs and Economic Policy 176 $53,661 180 $53,492 206 $70,662 14.4% 32.1% 

Domestic Finance and Tax Policy 227 $79,566 239 $81,059 273 $100,703 14.2% 24.2% 

Treasury-wide Management and Programs 99 $39,779 109 $40,249 118 $46,770 8.3% 16.2% 

Committee on Foreign Investment in the 

United States 80 $22,661 110 $22,494 132 $25,611 20.0% 13.9% 

Subtotal New Appropriated Resources 670 $233,000 740 $233,000 869 $293,242 17.4% 25.9% 

Other Resources 

Reimbursable 40 $8,630 41 $11,500 41 $11,500 0.0% 0.0% 

Transfers from CFIUS Fund 0 $15,000 0 $15,000 0 $15,000 NA 0.0% 

Subtotal Other Resources 40 $23,630 41 $26,500 41 $26,500 0.0% 0.0% 

Total Budgetary Resources 710 256,630 781 $259,500 910 $319,742 16.5% 23.2% 

 
DOSE-4 

 1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 740 $233,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $9,728 

Pay Annualization 0 $1,179 

Pay Raise (4.6% average pay raise) 0 $6,108 

Non-Pay 0 $2,441 

Non-Recurring Costs 0 ($3,868) 

Non-recurring Costs for CFIUS Investments 0 ($3,868) 

Transfers (2) 0 

Transfer of FTEs to SSP (2) $0 

Other Adjustments: 0 $17,365 

Adjustments to Meet Current Operating Levels* 0 $17,365 

Subtotal Changes to Base (2) $23,225 

FY 2023 Current Services 738 $256,225 

Program Changes: 

Reinvestments 22 $3,868 

Staffing to Support CFIUS Program Growth 22 $3,868 

Program Increases: 109 $33,149 

Departmental Offices Staffing* 86 $20,000 

Equity Assessment and Program Evaluations 10 $3,579 

Treasury Attaché Program Expansion 3 $3,074 

Staffing to Support Climate Initiatives 9 $2,473 

Cyber to Enhance National Security (OCCIP) 1 $295 

DO Cyber Infrastructure (Incident Response and Threat Protection) 0 $1,185 

Facilities and Office Infrastructure 0 $2,543 

FY 2023 President's Budget Request 869 $293,242 

*Included in the FY 2022 President’s Budget 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$9,728,000 / +0 FTE 

Pay Annualization (2.7%) +$1,179,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6 % in FY 2023) +$6,108,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$2,441,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Non-Recurring Costs ...................................................................................-$3,868,000 / -0 FTE 

Non-recurring Costs for CFIUS Investments -$3,868,000, -0 FTE 

Non-recurring costs for CFIUS associated with the baseline completion of CFIUS’s case 

management system and configuration of secure spaces for new CFIUS staff. 
DOSE-5 

Transfers.....................................................................................................................-$0 / -2 FTE 

Transfer of FTEs to SSP $0, -2 FTE 

Transfer of 2 FTEs from DO SE to SSP after a determination that it more appropriately aligns 

with the purpose of the funding sources. Funding amounts will remain within DO SE to cover its 

portion of these services. 

Other Adjustments .................................................................................... +$17,365,000 / +0 FTE 

Adjustments to Meet Current Operating Levels +$17,365,000 / +0 FTE 

Includes funding for the FY 2022 MCLs requested in the FY 2022 President’s Budget and DO 

SE’s portion of Departmental Offices (DO) projects to replace servers that have now reached the 

end of their useful life. This request also funds the modernization of critical equipment and 

software that support the DO workforce’s fundamental information technology needs. 

Reinvestments............................................................................................+$3,868,000 / +22 FTE 

Staffing to Support CFIUS Program Growth +$3,868,000 / +22 FTE 

Increase in CFIUS staffing to continue in line with anticipated program growth. 

Program Increases ................................................................................+$33,149,000 / +109 FTE 

Departmental Offices Staffing +$20,000,000 / +86 FTE 

This funding request is a continuation of the request included in the FY 2022 President’s Budget 

for DO SE. This request seeks to provide Treasury’s policy offices with baseline staffing levels 

needed support the core Treasury mission and the Secretary’s priorities. During the prior 

administration, DO’s policy-related staffing levels were reduced by a total of 11 percent. The 

Department is critically understaffed in key Treasury offices that are the nexus for the 

Department’s response to economic crises and programs of national importance. 

Treasury requests $20 million to fund 86 positions to carry out Treasury’s mission and support 

key Administration priorities, including 1) responding effectively to the pandemic and 

supporting robust economic recovery; 2) addressing the threat of climate change; 3) addressing 

income inequality and ensuring racial equity; 4) reinforcing the United States’ position on the 

world stage. This request also provides funding policy and oversight functions within DO that 

have seen outsized workload growth due to of unfunded mandates placed upon the Department. 

The following requests build on this baseline of 86 positions to provide for additional manpower 

that the Administration views as critical to carry out its long-term goals related to equity, 

climate, national security, and the U.S.’s engagement abroad, and stem from additional 

assessments, Executive Orders (EO), and recommendations provided to Treasury since the FY 

2022 President’s Budget was submitted. 

Equity Assessment and Program Evaluations +$3,579,000 / +10 FTE 

This request provides funding to support Equity Assessment Recommendations within DO, 

composed of 6 major components, focused on improving support to both internal and external 

priorities related to equity, including: 

Staff to conduct analysis on equity-related policy issues and support the Department’s equity 

goals through programming, policy-building, and other opportunities. This includes: 

1. Policy analysis and partnership development focused on underserved communities. 
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2. Analysis, interagency policy development and implementation, and impact measurement on 

both the socially and economically disadvantaged and Tribal-related issues of equity, 

particularly associated with small business, entrepreneurship, financial services, public 

services, digital infrastructure, and other areas in the Office of Capital Access. 

3. A dedicated Evaluation Officer to coordinate analysis and program evaluations for equity 

assessments, other congressionally mandated impact studies focusing on equitable 

distribution of resources, as well as studies to address Treasury learning agenda questions 

and increasing agency capacity to build evidence in support of Evidence Act Implementation. 

Increased support for Treasury-internal equity programs, including: 

1. Analyzing equity in procurement and creating mechanisms to enable continuous 

identification of opportunities to increase awards to underserved communities as required in 

EO 13985, Advancing Racial Equity and Support for Underserved Communities Through the 

Federal Government.

2. Growing recruitment pipelines to diverse talent, through an expansion of paid internship 

programs such as the Treasury Scholars Program (anticipated to grow from 15 interns to 40 

annually) as required in EO 14035, Diversity, Equity, Inclusion, and Accessibility in the 

Federal Workforce.

3. Improving support and analysis of equity programs geared at DO’s existing workforce, 

including an additional staff member to support Equal Employment Opportunity (EEO) 

efforts as required in EO 13985, 14035, and 13988, Preventing and Combating 

Discrimination on the Basis of Gender Identity or Sexual Orientation. 

Treasury Attaché Program Expansion +$3,074,000 / +3 FTE 

The 2021 National Defense Authorization Act authorized and required the expansion of the 

program by no fewer than six positions. This is the accompanying appropriations request for 

three of those six positions. 

Treasury financial attachés are posted at U.S. embassies in foreign countries important to U.S. 

domestic and foreign economic and financial policy and the international fight against terrorism, 

money-laundering, and other illicit finance activities. The attachés complement the Ambassador 

in outreach to foreign finance ministries, international financial institutions, central banks, and 

other agencies, and supply the embassy and Treasury with detailed information and focused 

analysis of foreign economic and financial policies. Their unique perspectives are critical to the 

policy development and implementation and crisis management work at Main Treasury and in 

the U.S. interagency. Among other contributions, Treasury attachés: 

1. Enhance Treasury’s real time access to foreign officials, local experts, media, and financial 

market participants; 

2. Conduct in‐depth analysis of issues important to Treasury that can be done satisfactorily only 

with extended on‐the‐ground presence; and 

3. Provide critical support to senior level Treasury trips through established contacts and 

relationships and advise on the value of certain meetings for officials from both governments. 

Treasury attachés are highly valued across the organization and provide access, information, 

and further the priorities of offices across DO. 

 
DOSE-7 

Staffing to Support Climate Initiatives +$2,473,000 / +9 FTE 

The Administration is targeting cuts to greenhouse gas (GHG) emissions by 50% to 52% from 

2005 levels by 2030 and has outlined an ambitious plan to double international climate finance 

and triple international adaptation finance by 2024, to support communities transitioning away 

from coal and to encourage the private sector to disclose climate risk. The Administration has 

asked Treasury to play a key role in these efforts, but as currently staffed, Treasury will be 

limited in its ability to contribute to crucial elements of the climate agenda. Treasury’s unique 

responsibilities on a range of programs related to climate change – including economic, financial 

sector, and climate-related government policies – will be reflected in an expanded climate 

strategy work program. 

The first phase, funded from existing resources, included the creation of a new Climate Hub and 

Climate Counselor position. The second phase, previously requested in the FY 2022 President’s 

Budget, will include the implementation of a Climate Hub to centrally coordinate and lead many 

of Treasury’s efforts to address climate change. The Treasury Climate Hub will coordinate and 

enhance existing climate-related activities by harnessing the tools, capabilities, and expertise 

from across the Department – including from Domestic Finance, Economic Policy, International 

Affairs, and Tax Policy. With a view of all Treasury climate initiatives, the Hub will enable 

Treasury to move nimbly and efficiently in prioritizing climate action with support from DO 

staff. 

This FY 2023 request is the third phase of the climate strategy, which provides staffing strength 

in International Affairs and Domestic Finance needed to support the Administration’s climate 

priorities, including work connected to 1) climate transition finance, 2) climate-related policy, 

and 3) climate-related financial risks. This specifically would fund: 

 International economists and climate finance experts to support initiatives outlined in the 

Administration’s U.S. International Climate Finance Plan, Plan to Conserve Global Forests, 

and President's Emergency Plan for Adaptation and Resilience, including greater 

collaboration with multilateral development banks, climate investment funds, the 

International Monetary Fund, export credit agencies, the Financial Stability Board, 

international finance ministry counterparts, and private industry to address climate change 

internationally. These staff will also further our goal of ensuring comparability and 

accountability of climate commitments by other countries, including China, while advancing 

U.S. competitiveness. 

 Staffing for domestic climate priorities, including increased collaboration with financial 

regulatory agencies to understand, convey, and mitigate climate-related financial risk, 

climate insurance assessments to be conducted by the Federal Insurance Office (FIO) to 

understand private insurance coverage gaps in regions of the country particularly vulnerable 

to climate change impacts, engagement with state and local markets on green bonds, work 

with local stakeholders on household financial resiliency to climate trauma and transition, 

and support for climate investment programming for transition innovation and adaptation. 

Cyber to Enhance National Security (OCCIP) +$295,000 / +1 FTE 

At present, the Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) is staffed 

to support up to three ongoing sector-wide incidents at a time. Recent history has demonstrated 

that this staffing level is insufficient to handle the actual volume of incidents impacting the 

sector. The impact of the current climate crisis and potentially cyber events on a large scale can 
DOSE-8 

disrupt financial services both domestically and internationally due to impacts to National 

Critical Functions as defined by the National Risk Management Center. Initial global estimates 

for the SolarWinds hack alone are upwards of $100B to contain damage to U.S. businesses and 

government agencies. Even with additional staffing to support the Financial Services sector amid 

an exponential increase of hacks globally, the sector will continue to experience substantial risk. 

This request provides financial support for OCCIP that advances progress towards the strategic 

priority of enhancing national security. It includes one FTE to formalize, extend, integrate, and 

automate OCCIP programs and capabilities to improve the sector’s ability to (1) identify and 

analyze risks to critical functions and (2) mitigate known and emerging risks, including climaterelated risks. 

DO Cyber Infrastructure (Incident Response and Threat Protection) +$1,185,000 / +0 FTE 

The Department’s forthcoming FY 2022 – 2026 Strategic Plan aligns cybersecurity under 

strategic goal two, Enhance National Security. It is predicted there will be an increase in global 

risks due to diverging interests among major powers, an expanding terror threat, and the spread 

of disruptive technologies. As foreign and domestic actors threaten the American economy and 

national security, Treasury must strengthen its cybersecurity posture, leverage its existing 

processes and tools, and strengthen bi-lateral and multi-lateral partnerships to protect the 

financial sector. With Treasury’s increasing involvement in combatting cybercrime, we face 

increasing risk against the IT systems that support our authorities. DO is a primary target for 

nation state sponsored cyber criminals who seek to disrupt our capabilities and destroy our 

reputation. DO must invest in cyber protections commensurate with the risks incurred in our 

efforts to safeguard the financial sector, U.S. economy and in combating cybercrime. 

Given the heightened risk for a cyber attack targeting DO, this request will enhance Treasury’s 

ability to: 

1. Protect: Invests in Microsoft FedRAMP High Government Community Compliance (GCC) 

licenses, which have been a key component of Treasury’s response to SolarWinds. This 

includes enhanced security controls, monitoring, and threat protection, as well as improved 

data and identity management. These new capabilities are crucial to protect the 3,000 users 

within DO from potential ransomware. 

2. Respond: Funds incident response investments which are important to continue to protect 

DO’s IT infrastructure amid an uptick in cyber attacks due to DO’s activities in the 

international ecosystem. This solution reduces attackers’ ability to compromise systems and 

conduct reconnaissance, as well as reduces attacker’s penetration capabilities. 

For more information on enterprise-wide cybersecurity investments, please refer to the FY 2023 

Cybersecurity Enhancement Account Congressional Budget Justification. 

Facilities and Office Infrastructure +$2,543,000 / +0 FTE 

This request provides funding for a repairs and improvements (R&I) account within DO for noncapital investments within Main Treasury (MT) and Freedman’s Bank Building (FBB). The cost 

of maintaining historic office buildings of similar size to MT and FBB is estimated at 

approximately $2M in funding annually. Over the past 2 years, Treasury DO has incurred a 

myriad of expensive repairs, including to the power supply, fire pump replacement, transformer 

fluid replacement, portico, and miscellaneous water damage. In total, these costs have required 

DO to divert crucial resources away from other key priorities. 
DOSE-9 

While the external repairs are being funded in Department-wide Systems and Capital 

Investments Program account (DSCIP) via a consolidated approach, ad hoc repairs and 

maintenance are usually completed because 1) emergency repairs cannot be planned for, and 2) 

many of the repairs are operational in nature and must-do fixes. There are multiple rooms within 

Main Treasury and Freedman’s Bank in need of substantial repairs due to recent emergencies 

(e.g., water leaks, structural shortfalls, and elevator malfunctions) and the Secretary’s 

Conference Room is presently unusable as a result. By not keeping up with maintenance and 

repair needs, the building systems and infrastructure will typically not have a full life expectancy 

and the resulting higher replacement costs place an even higher burden on Treasury facilities. 

Likewise, this funding supports a transition to hybrid work. Like most workplaces, Treasury has 

transitioned to a hybrid work format which relies more heavily on virtual presence and 

collaboration software to accommodate the increased remote work necessary because of the 

pandemic. Treasury’s mission requires it to collaborate with various partners including foreign 

governments, financial institutions, other federal agencies, local governments and citizens. A 

lack of funding for collaboration tools and remote work accoutrements necessary for our future 

of work plans will inhibit our ability to retain and attract staff and work with stakeholders and 

partners to accomplish Treasury’s mission. 

1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 99,319 109,570 135,082 

11.3 - Other than full-time permanent 2,547 3,005 3,297 

11.5 - Other personnel compensation 3,601 4,092 4,569 

11.8 - Special personal services payments 603 603 635 

11.9 - Personnel Compensation (Total) 106,070 117,270 143,584 

12.0 - Personnel benefits 35,119 39,983 48,702 

Total Personnel and Compensation Benefits $141,189 $157,253 $192,286 

21.0 - Travel and transportation of persons 1,227 3,782 3,910 

22.0 - Transportation of things 191 156 172 

23.2 - Rental payments to others 1,087 1,320 1,421 

23.3 - Communications, utilities, and miscellaneous charges 14 97 69 

25.1 - Advisory and assistance services 13,144 14,605 14,557 

25.2 - Other services from non-Federal sources 3,096 1,966 2,591 

25.3 - Other goods and services from Federal sources 82,559 74,499 98,831 

25.4 - Operation and maintenance of facilities 139 101 114 

25.7 - Operation and maintenance of equipment 74 236 242 

26.0 - Supplies and materials 3,249 2,986 2,682 

31.0 - Equipment 2,819 2,017 2,252 

32.0 - Land and structures 4,930 482 613 

Total Non-Personnel $112,529 $102,247 $127,455 

Total Obligations $253,718 $259,500 $319,742 

 

Full-time Equivalents (FTE) 710 781 910 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

 
DOSE-10 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental Offices including 

operation and maintenance of the Treasury Building and 

Freedman's Bank Building; 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, including technical assistance to State, local, 

and territorial entities; and Treasury-wide management policies 

and programs activities, $293,242,000: Provided, That of the 

amount appropriated under this heading— 

(1) not to exceed $350,000 is for official reception and 

representation expenses; 

(2) 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; and 

(3) not to exceed $34,000,000 shall remain available until 

September 30, 2024, for— 

(A) the Treasury-wide Financial Statement Audit and 

Internal Control Program; 

(B) information technology modernization requirements; 

(C) the audit, oversight, and administration of the Gulf 

Coast Restoration Trust Fund; 

(D) the development and implementation of programs within 

the Office of Cybersecurity and Critical Infrastructure 

Protection, including entering into cooperative agreements; 

(E) operations and maintenance of facilities; and 

(F) international operations. 

Note.—A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution.
DOSE-11 

E – Legislative Proposals 

Not to exceed 5 percent of any appropriation made available in this Act for the Department of 

the Treasury may be transferred to the Department’s information technology system 

modernization and working capital fund (IT WCF), as authorized by section 1077(b)(1) of title X 

of division A of the National Defense Authorization Act for the Fiscal Year 2018, for the 

purposes specified in section 1077(b)(3) of such Act, upon the prior notification of the 

Committees on Appropriations of the House of Representatives and the Senate: Provided, That 

amounts transferred to the IT WCF under this section shall remain available for obligation 

through September 30, 2026. 

Note: This request is proposed in the Treasury Administrative Provisions. Both the executive 

summary and budget appendix include the proposed language. 
DOSE-12 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Departmental Offices (DO) is Treasury’s headquarters bureau. It provides leadership in 

economic and financial policy, financial intelligence, and general management. Treasury utilizes 

effective management, policies, and leadership to protect our national security through targeted 

financial actions, promotes the stability of the nation’s financial markets, and ensures the 

government’s ability to collect revenue and fund its operations. DO operations align with all 

Treasury strategic goals and objectives. Specific alignment by budget activity is indicated below. 

B – Budget and Performance by Budget Activity 

2.1.1 – Executive Direction Resources and Measures 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $36,980 $32,993 $35,407 $36,775 $37,333 $35,706 $49,496 

Reimbursable Resources $22,997 $25,455 $4,863 $1,837 $1,789 $2,361 $2,361 

Budget Activity Total $59,977 $58,448 $40,270 $38,612 $39,122 $38,067 $51,857 

Full-time Equivalents (FTE) 161 159 113 102 94 108 146 

Executive Direction Budget and Performance 

($49,496,000 from direct appropriations, $2,361,000 from reimbursable sources): 

The Executive Direction program area provides direction and policy formulation to DO and the 

rest of Treasury and interacts with Congress and the public on policy matters. 

No specific performance goals/measures are presented for this budget activity because the work 

of these offices is captured within the other budget activities. 
DOSE-13 

2.1.2 – International Affairs and Economic Policy Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $57,191 $48,460 $52,428 $52,825 $53,661 $53,492 $70,662 

Reimbursable Resources $10,617 $9,795 $2,701 $1,293 $817 $1,329 $1,329 

Budget Activity Total $67,808 $58,255 $55,129 $54,118 $54,478 $54,821 $71,991 

Full-time Equivalents (FTE) 253 220 161 178 180 184 210 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

IA - Monitor Quality and Enhance 

Effectiveness of International Monetary 

Fund (IMF) Lending Through Review of 

IMF Country Programs 

100 100 100 100 100 100 100 100 

IA - Monitor Quality and Enhance 

Effectiveness of MDB Lending through 

Review of MDB Grant and Loan 

Proposals 

100 100 100 100 100 100 100 100 

IA - Percentage of MDB Grant and Loan 

Proposals Containing Satisfactory 

Frameworks for Results Measurement 

96.00% 97.60% 95.00% 96.00% 97.00% 95.00% 95.00% 95.00% 

OTA - Program Engagement 4 3.8 3.8 3.3 3.6 3.6 3.6 3.6 

International Affairs (IA) Description of Performance: 

 Monitor Quality and Enhance Effectiveness of 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 2021. In FY 2022 and FY 2023, IA’s 

target for this measure remains 100 percent. 

 Monitor Quality and Enhance Effectiveness of Multilateral Development Banks (MDB) 

Lending through Timely Review of MDB Grant and Loan Proposals: IA reviews MDB loan 

and grant proposals to ensure that funded projects meet several key goals, which include 

supporting long-term U.S. objectives, having a measurable development impact, and being 

consistent with congressional mandates. The target (100 percent) was met in FY 2021. In FY 

2022 and FY 2023, IA aims to continue its review of 100 percent of MDB loan and grant 

proposals prior to the date of the relevant Executive Board meeting, and to increase its 

oversight of projects during implementation. 

 Percentage of MDB Grant and Loan Proposals Containing Satisfactory Frameworks for 

Results Measurement: This measure tracks the percentage of grant and loan project proposals 

that contain a satisfactory framework for measuring project results (such as outcome 

indicators, quantifiable and time-bound targets, etc.) This information is measured on an 

annual basis. In FY 2021, 97 percent of MDB grant and loan project proposals had excellent 

or satisfactory ratings for the results matrices. The FY 2022 target is 95 percent, and the FY 

2023 target is 95 percent. 

 

 
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Office of Technical Assistance Description of Performance: 

 Office of Technical Assistance (OTA) Program Engagement (Traction): Measures the degree 

to which foreign counterparts are engaging proactively and constructively with OTA advisors 

at the working and policy levels. A five-point scale is used to measure traction, with scores 

ranging from a low of 1, indicating there is little if any counterpart involvement, to a high 

score of 5, indicating that OTA advisors have regular and frequent meetings with counterparts 

and counterparts display high levels of involvement. Counterpart engagement is both a key 

outcome of OTA efforts to structure and execute effective technical assistance projects that 

support host country ownership. The result for FY 2021 is 3.6, an increase of 0.3 from the 

FY 2020 result, representing a return to historical levels after the program experienced a dip 

in traction associated with the challenges of providing technical assistance remotely during 

the COVID-19 pandemic. The increase in FY 2021 was due, in part, to the program’s ability 

to resume in-person assistance for many of its bi-lateral technical assistance engagements 

globally and the continued improvement by the program in its use of remote tools (e.g., 

videoconferencing, collaborative software) to support projects when in-person assistance is 

not possible.

International Affairs and Economic Policy Budget and Performance 

($70,662,000 from direct appropriations, $1,329,000 from reimbursable sources): 

The offices in this budget activity promote economic growth in the United States by producing 

technical economic analyses for the Secretary and advancing U.S. economic and financial policy 

priorities around the world. 

Office of International Affairs 

This office supports the following strategic objectives for Strategic Goal 1, to Promote Equitable 

Economic Growth and Recovery: 

 Objective 1.2: Global Economic Leadership. Generate sustainable and inclusive global 

economic growth. 

This office supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security:

 Objective 2.1: Cyber Resiliency of Financial Systems and Institutions. Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency. 

 Objective 2.2: Economic Measures to Advance National Security. Enhance and protect 

national security through the application of targeted financial measures and review of certain 

foreign investments. 

 Objective 2.3: Modernize Sanctions Regime. Modernize the development, implementation, 

enforcement, and maintenance of U.S. sanctions to ensure that sanctions remain a 

streamlined and effective foreign policy and national security tool. 

 Objective 2.4: Transparency in the Financial System. Increase transparency in the domestic 

and international financial system. 

 
DOSE-15 

This office supports the following strategic objectives for Strategic Goal 3, to Protect Financial 

Stability and Resiliency:

 Objective 3.1: Financial System Vulnerabilities. Identify and address current and emerging 

vulnerabilities to the stability of the U.S. and global financial systems to support more 

sustainable and equitable growth. 

 Objective 3.3: Financial Innovation. Encourage responsible financial sector innovation. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.1: Global Climate Commitment and Leadership. Use U.S. leadership and 

commitment to significantly enhance global action and mobilize and align financial flows to 

combat climate change and enhance resilience within the new climate environment. 

 Objective 4.2: Climate Incentives and Investment. Create and promote incentives and 

policies for the private sector to invest in climate-friendly and resilient projects and activities. 

 Objective 4.3: Climate-related Financial Risks. Identify and mitigate key sources of climaterelated financial risks to macroeconomy, financial system, investors, governments including 

federal and subnational exposures, and households, understanding that risks may have 

disparate impacts on disadvantaged communities. 

 Objective 4.4: Sustainable Treasury Operations. Improve Treasury’s overall environmental 

and energy sustainability and invest in Bureaus’ adaptation and resiliency efforts to address 

climate change impacts on operations and services. 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

International Affairs 

IA promotes and supports economic prosperity and stability at home and abroad. IA’s 

international economic engagements are guided by three strategic priorities: to restore U.S. 

leadership in the multilateral order, to address key global challenges, and to secure a more 

sustainable and inclusive recovery from the pandemic. IA promotes U.S. exports and job growth 

by encouraging key trading partners to pursue macroeconomic policies that address the COVID 

pandemic, shift to boosting domestic demand, move towards market-determined exchange rates, 

and create a level playing field for American firms and workers. IA also promotes robust 

international financial regulatory standards and multilateral solutions to international 

development, including addressing global challenges such as climate change, clean energy 

access, infrastructure development, food security, debt sustainability, and health. 
DOSE-16 

In FY 2021, IA pursued a number of objectives: re-establishing U.S. climate leadership and 

raising global ambitions on climate finance; enhancing financial assistance to the poorest and 

most vulnerable economies; and establishing a new G20+ finance-health task force to better 

prevent, detect, and respond to future pandemics. In FY 2022, IA will seek to build on progress 

and to exit the crisis stronger and more resilient. IA is playing a leading role in the 

Administration’s U.S. International Climate Finance Plan, Plan to Conserve Global Forests, and 

President's Emergency Plan for Adaptation and Resilience. 

 

IA works to address the large and persistent global imbalances and unfair currency practices that 

threaten strong and sustainable U.S. economic growth. Treasury seeks to level the playing field 

for U.S. businesses through multilateral and bilateral engagements on foreign exchange practices 

and does this via multilateral and bilateral activities working through the International Monetary 

Fund (IMF) and the Group of 20 Nations (G20). 

IA promotes sustainable and inclusive economic growth by leveraging U.S. leadership in the 

International Financial Institutions to mitigate emerging threats to the U.S. and global 

economies; supporting international trade and investment; scaling up infrastructure development 

in line with the Build Back Better World initiative; and reinforcing U.S. national security 

interests in key countries around the world. These institutions will play a significant role in 

Treasury’s approach to the climate goals. Treasury IA seeks to bolster U.S. support for the 

multilateral development banks (MDB), including by promoting reforms to enhance how they 

leverage their capital and scale up their delivery and impact and continuing its close oversight of 

the institutions’ efficiency, effectiveness, and financial discipline. IA will continue to advance 

the significant role of these institutions in delivering on Treasury’s climate goals with respect to 

mitigation, adaptation, and climate finance. 

Office of Technical Assistance 

Treasury’s Office of Technical Assistance (OTA) complements Treasury’s international 

economic, financial, development, and terrorist financing policy work. OTA builds capacity in 

developing and transitional country governments to implement policies that support broad-based 

economic growth, financial sector stability and inclusion, climate and infrastructure finance, 

transparency and accountability in public finance, and protections against economic and financial 

crimes. 

Office of Economic Policy (EP)

This office supports the following strategic objectives for Strategic Goal 1, to Promote Equitable 

Economic Growth and Recovery: 

 Objective 1.1: Tax Administration and Policy. Enhance tax compliance and service; improve 

tax policy design. 

 Objective 1.2: Global Economic Leadership. Generate sustainable and inclusive global 

economic growth. 

 Objective 1.3: Economically Resilient Communities. Promote equitable financial recovery 

and growth through support and flow of capital to small businesses, households, and 

underserved communities 
DOSE-17 

 Objective 1.4: Resilient Housing Market. Promote a stable and resilient housing market that 

expands fair and equitable access to homeownership and affordable rental opportunities and 

protects taxpayers. 

This office supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security:

 Objective 2.2: Economic Measures to Advance National Security. Enhance and protect 

national security through the application of targeted financial measures and review of certain 

foreign investments. 

 Objective 2.4: Transparency in the Financial System. Increase transparency in the domestic 

and international financial system. 

This office supports the following strategic objectives for Strategic Goal 3, to Protect Financial 

Stability and Resiliency:

 Objective 3.1: Financial System Vulnerabilities. Identify and address current and emerging 

vulnerabilities to the stability of the U.S. and global financial systems to support more 

sustainable and equitable growth. 

 Objective 3.3: Financial Innovation. Encourage responsible financial sector innovation. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.1: Global Climate Commitment and Leadership. Use U.S leadership and 

commitment to significantly enhance global action and mobilize and align financial flows to 

combat climate change and enhance resilience within the new climate environment. 

 Objective 4.2: Climate Incentives and Investment. Create and promote incentives and 

policies for the private sector to invest in climate-friendly and resilient projects and activities. 

 Objective 4.3: Climate-related Financial Risks. Identify and mitigate key sources of climaterelated financial risks to macroeconomy, financial system, investors, governments including 

federal and subnational exposures, and households, understanding that risks may have 

disparate impacts on disadvantaged communities.

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

Macroeconomic Analysis 

During the past year, staff in the Office of Macroeconomic Analysis (Macro office) closely 

monitored U.S. economic performance. The office’s analytic updates served as Senior 

Leadership’s main internal information source on U.S. macroeconomic developments. The 
DOSE-18 

Macro Office served on a wide range of high-level engagements and official publications, 

including the Bank/Fund and regional development bank meetings, meetings of the G-7 and G20, the Quarterly Treasury Bulletin, the report to Congress titled, “Foreign Exchange Policies of 

Major Trading Partners of the U.S.,” the Economy Statement for the Treasury Borrowing 

Advisory Committee, and the U.S. Government’s Annual Financial Report. In addition, 

economists in the Macro office help prepare the economic assumptions used to create the 

Administration’s Budget.

 

Microeconomic Analysis 

The Office of Microeconomic Analysis has played a central role in the federal economic 

response to the pandemic and has continued its core role of aiding the Administration’s 

development of broader economic policy on a wide range of topics. Activities over the past year 

have included analyses of the economic impact of the pandemic on individuals and firms; 

significant input into the development of American Rescue Plan (ARP) programs, including 

technical assistance to congressional staff; grant allocation formula design and data analysis for 

CARES/ARP implementation; policy input into the design of stimulus and recovery programs 

like the Infrastructure Investment and Jobs Act; contributions to public Treasury white papers on 

childcare and labor market competition; policy input and analysis on climate policy and energy 

market developments, and participation in the interagency Social Cost of Greenhouse Gases 

working group; primary contributions to Treasury’s Russia sanction impact analysis; analytical 

support and policy advice for student loan debt relief proposals and Treasury equity initiatives; 

drafting of research plans for pandemic relief program evaluations, and reporting and analysis on 

the impact of the pandemic on state and local government finances; and ongoing coordination 

and analysis related to the Secretary’s role as Managing Trustee of the Social Security and 

Medicare Trust Funds. 

Social Impact Partnerships to Pay for Results Act 

Economic Policy is also responsible for implementation and ongoing management of the Social 

Impact Partnerships to Pay for Results Act (SIPPRA) program. SIPPRA, signed into law on 

February 9, 2018, appropriated $100 million to fund social impact partnership projects and 

feasibility studies to prepare for such projects. Program funds may be obligated through February 

8, 2028, and not less than fifty percent of funding for social impact partnership projects must be 

provided for initiatives that directly benefit children. The SIPPRA program aspires to 

demonstrate a new model of implementing and funding projects designed to solve entrenched 

societal problems such as homelessness, recidivism among juvenile offenders, and incidences of 

childhood abuse and neglect. 

 

SIPPRA issued its first Notice of Funding Availability (NOFA) for demonstration projects on 

February 21, 2019. Of the twenty-one applications received and evaluated by Treasury staff and 

subject matter expert panels, eight applications were recommended by the Commission on Social 

Impact Partnerships to the Treasury Secretary for funding and to the Federal Interagency Council 

on Social Impact Partnerships for application certification. All eight applications were certified. 

Two applicants have since withdrawn their applications. Treasury has since then declined to 

make an award for one of the eight certified applications. Treasury is taking the necessary steps 

to make a final determination for the remaining certified applicant. Treasury, the Department of 

Labor, and the New York State Energy and Research Development Authority entered into 
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SIPPRA’s first grant agreement for a social impact partnership project in March 2021. Treasury 

entered into grant agreements with the City and County of Denver in September 2021, with the 

State of Oklahoma in December 2021, and with the New York City Mayor’s Office of Criminal 

Justice in December 2021. Treasury anticipates issuing an additional project NOFA in FY 2022. 

 

2.1.3 – Domestic Finance and Tax Policy Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $83,104 $73,804 $72,570 $78,153 $79,566 $81,059 $100,703 

Reimbursable Resources $38,650 $42,042 $8,539 $7,042 $5,862 $7,571 $7,571 

Budget Activity Total $121,754 $115,846 $81,109 $85,195 $85,428 $88,630 $108,274 

Full-time Equivalents (FTE) 365 311 236 245 256 269 303 

 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

DF - Variance Between 

Estimated and Actual 

Receipts (Annual Forecast) 

(%) 

4.00% 2.33% 2.50% 11.10% 13.82% N/A N/A 4.25% 

Key: NA-Not Available 

Domestic Finance Description of Performance: 

 Variance between estimated and actual receipts (annual forecast) (percent): As part of 

managing the federal government’s central operating account and cash position, the Office of 

Fiscal Projections (OFP) forecasts net cash flows (e.g., federal receipts and outlays) 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. A lower variance is better because that indicates a more accurate forecast. 

However, as a result of the economic impact of the COVID-19 outbreak and the legislative 

and regulatory response, the timing and level of receipts were highly unpredictable 

throughout FY 2021 and through the first quarter of FY 2022. Due to this elevated 

uncertainty, Departmental Offices suspended identification of the numeric metric for FY 

2021, although OFP continued to track actual results relative to the historic metric. The 

actual variance for FY 2021 was 13.8 percent compared to the 4.25 percent historical target 

and the 3 percent average for the ten years preceding the COVID-19 outbreak (FY 2010 – 

2019). Due to ongoing uncertainty surrounding the timing and level of receipts stemming 

from the continuing impact of the COVID-19 pandemic, Departmental Offices has again 

suspended identification of the numeric metric for FY 2022.

Domestic Finance and Tax Policy Budget and Performance 

($100,572,000 from direct appropriations, $7,571,000 from reimbursable sources): 

The Offices of Domestic Finance and Tax Policy monitor policy, legislation, and regulations, 

and provide advice and assistance to the Secretary about the financial services sector and taxes, 

as well as financial markets and the regulation of financial institutions. The Office of Tax Policy 
DOSE-20 

supports the Administration’s efforts in tax reform legislative proposals and regulatory 

implementation. 

Office of Domestic Finance (DF) 

This office supports the following strategic objectives for Strategic Goal 1, to Promote Equitable 

Economic Growth and Recovery: 

 Objective 1.1: Tax Administration and Policy. Enhance tax compliance and service; improve 

tax policy design. 

 Objective 1.3: Economically Resilient Communities. Promote equitable financial recovery 

and growth through support and flow of capital to small businesses, households, and 

underserved communities 

 Objective 1.4: Resilient Housing Market. Promote a stable and resilient housing market that 

expands fair and equitable access to homeownership and affordable rental opportunities and 

protects taxpayers. 

This office supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security:

 Objective 2.1: Cyber Resiliency of Financial Systems and Institutions. Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency. 

This office supports the following strategic objectives for Strategic Goal 3, to Protect Financial 

Stability and Resiliency:

 Objective 3.1: Financial System Vulnerabilities. Identify and address current and emerging 

vulnerabilities to the stability of the U.S. and global financial systems to support more 

sustainable and equitable growth. 

 Objective 3.2: Resilient Treasury and Municipal Securities Markets. Improve the resilience 

of critical government securities markets to minimize borrowing costs over time and to 

support the critical roles that these safe assets play in the global financial system. 

 Objective 3.3: Financial Innovation. Encourage responsible financial sector innovation. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.1: Global Climate Commitment and Leadership. Use U.S leadership and 

commitment to significantly enhance global action and mobilize and align financial flows to 

combat climate change and enhance resilience within the new climate environment. 

 Objective 4.2: Climate Incentives and Investment. Create and promote incentives and 

policies for the private sector to invest in climate-friendly and resilient projects and activities. 

 Objective 4.3: Climate-related Financial Risks. Identify and mitigate key sources of climaterelated financial risks to macroeconomy, financial system, investors, governments including 

federal and subnational exposures, and households, understanding that risks may have 

disparate impacts on disadvantaged communities. 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 
DOSE-21 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

Financial Sector Cybersecurity and Critical Infrastructure Protection 

The Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) executes Treasury’s 

role as sector risk management agency (SRMA) for the financial services sector, one of sixteen 

critical infrastructure sectors designated by the Department of Homeland Security. Treasury’s 

authority as SRMA is derived from the Homeland Security Act of 2002 (Title XXII(A), Section 

2215). In this role, OCCIP works with financial sector critical infrastructure operators, their 

regulators, the Cybersecurity and Infrastructure Security Agency, and other Federal, state, local, 

territorial and tribal entities as appropriate to identify, assess, and prioritize risks to operational 

resilience within the sector; assist operators in mitigating threats, vulnerabilities and risks to their 

systems and assets; serve as coordination point and day-to-day Federal/interagency interface to 

the sector; contribute to emergency preparedness, and support incident management and 

restoration efforts following a security incident; and facilitate the exchange of information and 

intelligence supporting these efforts. OCCIP executes this role in the All-Hazards environment, 

including cyber and physical threats, terrorism, and man-made or climate-related disasters. 

To execute this role, OCCIP works closely with a wide variety of partners, including individual 

firms, federal financial regulators and associations of state financial regulators, industry trade 

associations, law enforcement, the intelligence community, homeland security officials, and 

other federal agencies as appropriate. Internationally, OCCIP has worked closely with the 

interagency to represent Treasury as part of international whole-of-government activities, 

including capacity building and deterrence. 

Financial Data Access and Use 

In FY 2021, at the agency level, the Treasury Office of the Inspector General concluded that 

Treasury’s award data reported on USAspending.gov for the audited third quarter of FY 2020 

was of “Excellent” quality, representing that Treasury’s consolidated level data is accurate, 

complete, and timely. Treasury continued to make progress in government-wide 

implementation of the 2014 Digital Accountability and Transparency Act (DATA Act). The 

DATA Act requires the federal government to provide consistent, reliable, and useful online 

data about how it spends taxpayer dollars. DF will work with OMB and federal agencies to 

drive continued improvements in FY 2022. 

Combating Climate Change 

Treasury is advancing initiatives to increase climate ambition, promote measurement, 

monitoring, and mitigation around climate-related financial risks, encourage sustainable 

finance, and foster a strong, green recovery. In FY 2021, Treasury stood up a “climate hub” 

within the Department to coordinate Treasury’s efforts. Secretary Yellen has already raised 

awareness domestically and re-engaged with international partners on key climate change 

issues. As part of this work, in FY 2022, Domestic Finance also established a climate 
DOSE-22 

coordination group to begin to identify policy areas that may be impacted by climate transition 

and will continue to monitor the impact of climate change on policy priorities. Additionally, in 

FY 2022, the Office of Consumer Policy within Domestic Finance launched a landscaping 

analysis into household and community financial resiliency to climate change/transition. The 

results of this analysis will help identify areas or communities that are particularly financially 

vulnerable to the impacts of climate transition. Given the connection between climate change, 

equity and Tribal communities, the Office of Consumer Policy will also consider ways to gain 

input and engage with Tribes to ensure understanding of Tribal issues in recommendations 

and implementation. 

Serving Historically Underrepresented and Underserved Groups 

Treasury is endeavoring to better serve historically underrepresented and underserved groups 

through increased policy engagement and outreach to institutions including community-based 

organizations, civil rights organizations, community development financial institutions, and 

minority depository institutions. Further, Treasury is working to improve its ability to 

quantitatively study and monitor efforts to measure and advance equity.  In FY 2022, a number 

of Domestic Finance offices contributed to this goal. Domestic Finance assisted with the 

deployment of more than $8.7 billion in investments through the Emergency Capital 

Investment Program (ECIP) to increase lending to small and minority-owned businesses, and 

low- and moderate-income consumers in underserved communities, including rural areas. 

DF’s Office of Capital Access also supported the development of an underserved community 

planning requirement for the State Small Business Credit Initiative program. In FY 2023, the 

Office of Capital Access will monitor the implementation of these initiatives and continue to 

identify ways to serve historically underrepresented and underserved groups. 

Transition from USD LIBOR 

During FY 2021, Domestic Finance continued its work monitoring the transition from USD 

London Interbank Offered Rate (LIBOR). LIBOR’s widespread use in the financial system but 

short remaining lifespan underscores the importance of a timely and effective transition due to 

potential impacts on financial stability. 

Housing Finance Reform 

During FY 2021, Treasury continued to monitor its investments in GSEs. Treasury has had a 

significant financial interest in the U.S. housing finance system since 2008, when the GSEs were 

placed into conservatorship and subsequently entered into Senior Preferred Stock Purchase 

Agreements (PSPAs) with Treasury. Twelve years later, the GSEs remain in conservatorship. As 

the counterparty to the PSPAs, Treasury has a key role in shaping, and a key interest in the 

outcome of, housing finance reform. Treasury’s focus has been to formulate housing finance 

policy that promotes financial stability, protects consumers and taxpayers, and provides stability 

and affordability to households. This work is expected to continue across the Administration and 

with Congress in support of these goals.

Debt Management 

Another important DF responsibility is managing the U.S. government’s debt through the Office 

of Fiscal Projections (OFP) and the Office of Debt Management (ODM). OFP forecasts the 

government’s cash and debt activity, while ODM seeks to finance the federal government at the 

least cost to the taxpayer over time. This is accomplished by working to maintain predictable 
DOSE-23 

issuance of Treasury debt, minimizing the amount of interest the government must pay, and 

managing debt maturity over time. In FY 2021, Treasury continued to finance the government’s 

fiscal response to COVID-19 that began in March of 2020. This was managed amid constraints 

imposed by the expiration of the statutory debt limit, which adversely impacted Treasury’s debt 

service costs in FY 2021 and increased operational risk to the Federal government’s finances by 

forcing Treasury to reduce the government’s cash balance to “less than” prudent levels. ODM 

financed another sizable increase in borrowing during FY 2021, overseeing $20.2 trillion in 

gross security issuance and $1.4 trillion in net issuance. While the unprecedented annual 

borrowing needs faced by the Federal government in FY 2020 and FY 2021 appear to be ebbing 

over the near-to-intermediate term, borrowing needs are likely to remain uncertain and elevated 

over the longer term. 

Office of Tax Policy (OTP) 

This office supports the following strategic objectives for Strategic Goal 1, to Promote Equitable 

Economic Growth and Recovery: 

 Objective 1.1: Tax Administration and Policy. Enhance tax compliance and service; improve 

tax policy design. 

 Objective 1.2: Global Economic Leadership. Generate sustainable and inclusive global 

economic growth. 

 Objective 1.4: Resilient Housing Market. Promote a stable and resilient housing market that 

expands fair and equitable access to homeownership and affordable rental opportunities and 

protects taxpayers. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.1: Global Climate Commitment and Leadership. Use U.S leadership and 

commitment to significantly enhance global action and mobilize and align financial flows to 

combat climate change and enhance resilience within the new climate environment. 

 Objective 4.2: Climate Incentives and Investment. Create and promote incentives and 

policies for the private sector to invest in climate-friendly and resilient projects and activities. 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

Tax Policy 

In FY 2021, the Office of Tax Policy’s (OTP) work was critical to the Administration’s 

legislative efforts. In addition to the technical assistance on recovery efforts such as the 
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American Rescue Plan (ARP), OTP staff worked on implementing complex, unprecedented 

programs such as the third round of Economic Impact Payments (EIPs), monthly Advance Child 

Tax Credit payments (CTC), and the expansion of benefits to many taxpayers. Further, OTP led 

successful multilateral tax negotiations leading to an agreement on global minimum taxes and 

legislative proposals to change the global intangible low-taxed income (GILTI) rules. 

 

OTP continues to provide leadership for the Organization for Economic Co-operation and 

Development (OECD), the Inclusive Framework, the Global Forum, and the G20, advocating for 

the interests of the United States. During FY 2021, OTP played a leading role in achieving 

agreement on global minimum tax, which will stabilize the eroding international tax system, 

level the playing field for American business, and end the race to the bottom on corporate tax 

rates that has disadvantaged workers and families. 

During FY 2021, OTP also worked with the Internal Revenue Service (IRS) to implement 

economic relief as a result of the ARP including working with the IRS to deliver 175 million 

third round EIP totaling over $400 billion starting the day after passage of the authorizing 

legislation. In addition, OTP worked with the IRS to disburse $93 billion of monthly CTC 

payments benefiting over 60 million children. Unlike prior pandemic payments, these advances 

were sent monthly between July and December despite there being less than 5 months to set up 

the payment system. 

OTP worked with the IRS to identify non-filers who may be eligible to receive EIPs and monthly 

CTCs. OTP sent over 6 million outreach letters to those who appeared to be eligible for either the 

EIP or the CTC in order to encourage wider participation. 

2.1.4 – Treasury-wide Management and Programs Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $43,365 $40,716 $39,171 $38,279 $39,779 $40,249 $46,770 

Reimbursable Resources $4,284 $2,398 $226 $127 $98 $134 $134 

Budget Activity Total $47,649 $43,114 $39,397 $38,406 $39,877 $40,383 $46,904 

Full-time Equivalents (FTE) 153 147 100 92 99 109 118 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percent of Procurement 

Dollars Spend on Small 

Business 

35% 43% 40% 46% 39% 36% 39% 39% 

Treasury-wide Employee 

Engagement Index of the 

Federal Employee Viewpoint 

Survey (FEVS) 

68 68 69 75 74 75 77 75 

Treasury-wide Footprint 

(Square Footage in thousands) 

 

34,100 

 

33,766 

 

33,209 

 

32,517 

 

32,006 

 

32,341 

 

31,948 

 

31,734 

Treasury-wide Leaders Lead 

Index of the Federal Employee 

Viewpoint Survey (FEVS) 

56 56 58 65 66 65 67 66 

Key: DISC - Discontinued; B - Baseline 

Treasury-Wide Management and Program Description of Performance:
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 Percentage of Procurement Dollars Spent on Small Business: Based on preliminary data in 

FY 2021, Treasury met and exceeded four out of five small business prime contracting goals. 

Treasury did not meet its Historically Under-utilized Zone (HUBZone) small business goal. 

Treasury did not meet any small business subcontracting goals. All Treasury bureaus were 

included in the goaling report, with no exclusions. The FY 2021 overall small business goal 

was set for 36 percent, and Treasury exceeded the goal at 39 percent. The FY 2023 small 

business goal is set at 39 percent. One overarching challenge in FY 2021 to meet the 

HUBZone small business goal was that Treasury had competing priorities: 1) OMB’s 

directive to utilize Category Management principles and Best-in-Class (BIC) contracts to 

leverage existing government-wide contracting vehicles, where there is a lack of sufficient 

HUBZone small business firms available for use, and 2) the COVID-19 pandemic 

contracting response, where there are not enough HUBZone small businesses with 

capabilities that meet the COVID-19 requirements. Particularly noteworthy is that Treasury 

far exceeded the small business contracting goals for the following socioeconomic groups: 

o Small Disadvantaged Business – goal 5.0 percent, achieved 7.7 percent; 

o Women Owned Small Business – goal 5.0 percent, achieved 6.7 percent; and 

o Service Disabled Veteran Owned Small Business – goal 3.0 percent, achieved 3.8 

percent. 

Treasury did not meet the small business contracting goal for the following 

socioeconomic group: 

o Historically Under-utilized Zone (HUBZone) Small Business – goal 3.0 percent, 

achieved 2.2 percent. 

 Treasury-wide “Employee Engagement” Index of Federal Employee Viewpoint Survey 

(FEVS): Treasury’s strategy remained focused on improving employee engagement by 

investing resources in statistically high impact areas to create an opportunity to improve the 

effectiveness of our workforce while improving our ranking among other federal agencies. 

Treasury’s scores for the Engagement Index decreased from 75 percent to 74 percent in FY 

2021. Treasury’s engagement score still increased its lead over the average score for very 

large agencies from three to four percent. The engagement index target is 77 percent for FY 

2022, and acknowledging challenges likely to result from staff re-entry into office spaces, 

DO’s FY 2023 target is reduced by 2 percent to 75 percent. 

 Treasury-wide Footprint (Square Footage): This goal measures the total square footage 

occupied by Treasury’s owned and leased buildings. To reduce the Department’s real 

property footprint and maximize the use of existing real property assets, the Department 

maximized space utilization by undertaking space realignments, consolidations, and 

improved work station standards. In FY 2021, Treasury decreased its footprint to 32,006 

thousand square feet—down from 32,517 thousand square feet in FY 2020. In FY 2023, the 

Department will expand its review of new work patterns and trends that could impact the 

need for real property. The Department will continue targeting metropolitan areas with 

multiple posts of duty sites to pursue consolidation opportunities or space reductions where it 

makes business and financial sense. The FY 2023 target for the total square footage that 

Treasury occupies is 31,734 thousand square feet. 

 Treasury-wide “Leaders Lead” Index of Federal Employee Viewpoint Survey (FEVS): As 

part of its overall effort to increase Employee Engagement, Treasury had set a multi-year 

goal to increase the “Leaders Lead” index. This involved statistically analyzing FEVS data to 

identify opportunities for improvement. Treasury’s score for the Leaders Lead Index 
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increased from 65 percent in FY 2020 to 66 percent in FY 2021 exceeding the OPM 

established 65 percent benchmark for organizational strength. Treasury’s score in FY 2021 

exceeded the average score for very large agencies by seven percent. Targets are 67 percent 

for FY 2022 and 66 percent for FY 2023, which is an acknowledgement of potential 

challenges related to office re-entry for DO staff. 

Treasury-wide Management and Programs Budget and Performance 

($46,770,000 from direct appropriations, $134,000 from reimbursable sources): 

This office supports the following strategic objectives for Strategic Goal 1, to Promote Equitable 

Economic Growth and Recovery: 

 Objective 1.3: Economically Resilient Communities. Promote equitable financial recovery 

and growth through support and flow of capital to small businesses, households, and 

underserved communities 

This office supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security:

 Objective 2.1: Cyber Resiliency of Financial Systems and Institutions. Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.3: Climate-related Financial Risks. Identify and mitigate key sources of climaterelated financial risks to macroeconomy, financial system, investors, governments including 

federal and subnational exposures, and households, understanding that risks may have 

disparate impacts on disadvantaged communities. 

 Objective 4.4: Sustainable Treasury Operations. Improve Treasury’s overall environmental 

and energy sustainability and invest in Bureaus’ adaptation and resiliency efforts to address 

climate change impacts on operations and services. 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

This budget activity includes offices that are responsible for the internal management and policy 

of the Department: the Office of the Assistant Secretary for Management; the Office of the 

Chief Information Officer; the Office of Privacy, Transparency, and Records; the Office of the 

Senior Procurement Executive; the Office of the Chief Human Capital Officer; the Office of 

Treasury Operations; the Office of the Deputy Chief Financial Officer; the Office of Civil Rights 
DOSE-27 

and Diversity; the Office of Minority and Women Inclusion; the Office of Strategic Planning and 

Performance Improvement; the Office of Risk Management; the Office of the Chief Data 

Officer; and the Office of the Deputy Assistant Secretary for Management and Budget. 

Office of the Chief Human Capital Officer 

Treasury continued its efforts to strengthen core competencies across its workforce in FY 2021. 

Using the ITM learning module, Treasury launched a Customer Experience curriculum to all 

Treasury employees in FY 2021, followed by a Change and Information Management 

Curriculum launched in early FY 2022. Treasury launched a Project-Program Management 

Assessment in FY 2021 to comply with the Program Management Improvement Accountability 

Act (PMIAA) and to improve program outcomes by strengthening program/project management 

practices, and is also currently conducting a competency assessment of the IT Specialist 

occupational series that will continue throughout FY 2022. The results of this assessment will be 

used to identify risks in the IT workforce, provide targeted development to close skill gaps, and 

capture skills that may be useful in the future. Treasury also continued its support of the Close 

Skill Gaps initiative for IRS Contact Representatives. It is worth noting that Treasury lost key 

staff leading these efforts in early FY 2022 and this, combined with the fact that Treasury has no 

Chief Learning Officer/Office to lead and sustain a focus on employee development, puts the 

Department’s work in this space at risk. 

In FY 2021, Treasury examined the roles and responsibilities of the Office of the Chief Human 

Capital Officer, the Office of Civil Rights and Diversity, and the Office of Minority Women 

Inclusion related to recruiting and retaining a diverse and inclusive workforce to ensure these 

offices use resources in an efficient and coordinated manner to support Treasury’s strategic 

objectives. While this work occurred, leadership from each office continued to identify and 

provide leadership and employee development opportunities related to foundational 

competencies that support diversity, equity, and inclusion in addition to identifying existing 

training related to core competencies that may be accessed by all Treasury employees. 

Finally, Treasury conducted internal and external benchmarking of Agency recruitment 

resources and efforts in FY 2021 to determine the level of investment required to best support 

Treasury’s goal of recruiting and retaining a diverse and inclusive workforce. The Department 

also conducted a study of federal HR shared service providers who perform recruitment and 

staffing functions, and is exploring the proper balance between improving the hiring process and 

implementing a new recruitment strategy. Once these solutions have been identified Treasury 

will begin exploring the possibility of forming Talent Teams, groups of dedicated employees 

focused on hiring outcomes and effective assessment strategies Treasury is exploring ways in 

which they can support more advanced efforts related to workforce and succession planning to 

instead cover foundational HR work such as recruitment, employee assessment, and performance 

management. 

Office of Civil Rights and Diversity (OCRD) 

In FY 2021, OCRD, along with the bureau EEO and HR communities, continued its efforts to 

implement priorities of the FY 2021-2024 Diversity and Inclusion (D&I) and Equal Employment 

Opportunity (EEO) Strategic Plan (Plan). The Plan focuses on a comprehensive set of six goals 

highlighting both D&I and EEO priorities and promotes the cross collaboration. Priorities were 
DOSE-28 

focused specifically on leadership accountability, responsibility and transparency; 

communicating the importance of D&I and EEO; collaborating with Human Resources; 

facilitating inclusion and trust in daily interactions; increasing compliance with federal 

regulatory EEO Complaints and Departmental policies; providing educational opportunities to 

the workforce on creating an inclusive workplace; and increasing the use of information 

technology to improve the efficiency of EEO Programs. In FY 2022, amendments are expected 

for the Plan to expand on the Office of Personnel Management’s revised government-wide 

strategic plan and guidance issued November 2021. 

In FY 2021, Treasury OCRD continued with the audits of bureaus’ EEO, D&I, and External 

Civil Rights Programs focusing its efforts on the Departmental Offices (DO) bureau level. The 

audit included a review of each phase of Treasury bureaus’ EEO programs, including D&I, EEO 

complaint processes, and building accessibility reviews to ensure compliance with the applicable 

law and regulations. Among the topics reviewed is the set of Performance Standards established 

for Managers, Supervisors, and SES members to ensure performance commitments include 

mandatory EEO and D&I elements. OCRD summarizes program deficiencies, results of the 

evaluation, and a list of recommendations for improvement. OCRD will continue the bureau 

audits of EEO, D&I, and External Civil Rights Programs in FY 2022. These audits will critically 

look at bureaus’ External Civil Rights, D&I and EEO programs to determine any areas where 

bureaus need a sharper focus and to find and recreate “best practices.” 

OCRD continued implementation of EO 13985, Advancing Racial Equity and Support for 

Underserved Communities Through the Federal Government, and EO 13988, Preventing and 

Combating Discrimination on the Basis of Gender Identity or Sexual Orientation in FY 2021. 

However, additional EOs were issued late FY 2021: EO 14035, Advancing Diversity, Equity, 

Inclusion, and Accessibility in the Federal Workforce, including those specifically related to 

recruitment and outreach to minorities. OCRD continues to spend considerable time assessing 

equity within Treasury and to ensure Treasury’s policies and programs are accessible to people 

of color and members of underserved communities. These new requirements have expanded the 

responsibilities for the D&I and civil rights communities, which would include OCRD staff. As a 

result of these new workstreams, OCRD continues to be constrained in its ability to effectively 

implement the requirements of these EOs in a timely manner. OCRD’s FY 2023 staffing request 

would help to alleviate many of these new staffing constraints. 

As a result of COVID-19, OCRD’s Complaint Operations Division transitioned to electronic 

processing of Treasury’s formal EEO complaints in FY 2020. Having fully implemented 

electronic processing in FY 2021, the implementation has significantly improved the efficiency 

and timeliness requirements of OCRD’s Complaint Operations Division and decreased 

administrative costs of this program. In FY 2021, EEO complaints were adjudicated effectively 

within the Department, thereby meeting regulatory timeframes both in issuance of decisions and 

days to investigate complaint. 

OCRD also worked with the bureau EEO offices on Human Capital engagement to improve 

inclusion scores – this will also be a continuing focus in FY 2021 and FY 2022. While scores for 

“Fairness” continue to be a concern, efforts have been made to introduce “Unconscious Bias” 

training in the workforce and at all management levels to help make leaders aware of biases and 
DOSE-29 

to learn to put aside such biases when making employment decisions. In the 2020 and 2021 

OPM’s Federal Employee Viewpoint Surveys (FEVS), questions to assess employee perceptions 

of workplace inclusion were replaced with items to measure the impact of the COVID-19 

pandemic. Therefore, Treasury has been unable to gauge perceptions of workplace inclusion for 

the past two years. 

In FY 2021, OCRD continued to lead the work to achieve full compliance with the external civil 

rights requirements for the Department. The responsibility for this work continued to increase in 

FY 2021 and is anticipated to grow in FY 2022. The Department gained several new large 

financial assistance programs created in response to the COVID-19 pandemic. In FY 2021, 

OCRD completed an update of 31 C.F.R. Part 28, Treasury’s regulation implementing Title IX 

of the Education Amendments Act, adding a new list of covered programs.

In addition to managing the Treasury-wide external civil rights program, OCRD continues to 

manage the civil rights compliance program for DO. In FY 2021, significant progress was made 

to improve compliance in the DO financial assistance programs and OCRD is conducting civil 

rights pre-award compliance determinations for SIPPRA and the Office of Gulf Coast 

Restoration. In FY 2021, OCRD provided training on pre-award requirements to recipients of 

Treasury’s RESTORE Act grant programs. OCRD also conducted post-award compliance 

reviews of Office of Gulf Coast Restoration grant recipients. OCRD also continued to provide 

technical assistance to the CARES Act and ARP program staff to ensure civil rights compliance 

in the new financial assistance programs. 

Office of the Deputy Chief Financial Officer 

For FY 2021, the Department received its 22nd consecutive unmodified audit opinion on its 

Treasury-wide financial statements. Treasury anticipates unmodified audit opinions for the 

consolidated audits to be conducted for FYs 2022 and 2023. Overall, the Department has made 

strong progress in enhancing its internal control environment and remains committed to ensuring 

high standards of integrity and transparency in reporting its financial performance. 

Office of Small and Disadvantaged Business Utilization (OSDBU) 

Based on preliminary data for FY 2021, Treasury met and exceeded four out of five small 

business prime contracting goals. Treasury did not meet its Historically Under-utilized Zone 

(HUBZone) small business goal. Treasury did not meet any small business subcontracting goals 

in FY 2021. Treasury OSDBU identified several possible root causes for not meeting Treasury’s 

prime and subcontracting goals in FY 2021 including the impact of COVID-related emergency 

acquisitions on traditional acquisition planning, limited enforcement of existing Treasury 

procurement policies related to HUBZone businesses, and additional training needs for 

Treasury’s Contracting Officers related to subcontracting pre- and post-award requirements.

The Small Business Administration issues an annual scorecard grade to Treasury. Treasury is 

graded for meeting their prime and subcontracting goals, compliance with the Small Business 

Act Section 15 (k), and the number of new small businesses entering Treasury’s contracting 

industrial base. The consistent “A” score is a testament to the hard work and professionalism of 

the procurement and acquisition teams across Treasury’s bureaus and the serious commitment to 

utilizing small businesses that emanates from Treasury’s leadership. To comply with Section 15 
DOSE-30 

(k), Small Business Act, the Department continued to focus on small business prime and 

subcontracting goal achievements, monitored small business pre-award and post-award 

functions, and increased Treasury’s small business industrial base through a robust outreach 

program. 

In FY 2021, per FAR Part 19.201, OSDBU successfully executed Small Business Programs 

Compliance Reviews on six Bureaus which have procurement authority to make awards to small 

businesses. The results of the compliance reviews provided for a comprehensive small business 

acquisition transformation strategy that included acquisition workforce teaching and training 

across the Department. Overall, the Department made progress in enhancing its small business 

programs and remains committed to ensuring high standards of small business program 

compliance. Treasury was assessed as “moderately favorable” for its small business programs in 

FY 2021. Central to the compliance review strategy is early acquisition planning and broad 

stakeholder participation. In FY 2021, Treasury OSDBU reviewed 380 acquisition actions 

valued at over $250,000 that were not set-aside for small business and rejected 20 of these 

actions due to inadequate market research. After the rejections, small business opportunities were 

found for all 20 actions. Of the 380 actions, 17 required subcontracting plan review (over 

$750,000) and monitoring of the subcontracting goals addressed in the plan. Together with the 

Small Business Administration Procurement Center Representative, OSDBU approved the 

subcontracting plans and these became part of the resultant contract. 

In FY 2022, OSDBU will require Bureaus to conduct self-assessments on their small business 

compliance. OSDBU will validate the self-assessment before end of the fiscal year and identify 

any Corrective Action Plans (CAP). The CAPs will identify areas for process improvements to 

their small business program. The annual small business program health summary will be 

submitted to the Deputy Secretary by November 2022. Also, in FY 2022, Treasury OSDBU and 

Office of the Procurement Executive (OPE) will provide additional small business 

subcontracting training to Treasury’s acquisition workforce to enforce subcontracting pre-award 

and post-award contract responsibilities. 

In response to Executive Order 13985, Treasury OSDBU and OPE instituted a “Procurement 

Equity Council” to ensure Treasury increases small and disadvantaged business participation, 

reduces barriers for new small businesses to enter into Treasury contracts, improves Treasury’s 

supplier diversity in procurement, and tracks the agency’s progress towards achieving 

measurable outcomes. 

Office of the Senior Procurement Executive (OPE) 

In FY 2021, the Office of the Procurement Executive oversaw a significant increase in 

Department-wide obligations from $6.5B to $9.5B, closely collaborating with Bureaus to ensure 

timely execution. Treasury continued a comprehensive acquisition transformation strategy 

designed to facilitate innovation, strategic management, efficiency, and effective mission 

outcomes. The Office of the Procurement Executive established the Acquisition Innovation 

Advocate Roundtable to facilitate enterprise-wide adoption of innovative acquisition approaches 

and emerging technology. In FYs 2022 and 2023, OPE will collaborate with the Treasury Chief 

Data Officer to explore data solutions designed to improve acquisition planning and enhance 

decision-making. OPE continues to work towards revamping the major acquisition review 
DOSE-31 

program to ensure successful award and performance of major acquisitions supporting mission 

critical functions. 

In FY 2021, OPE successfully identified contractual efficiencies in support of the execution of 

new mission critical programs established by the American Rescue Plan (ARP). OPE focused on 

implementation and execution of Executive Orders 13985, Advancing Racial Equity and Support 

for Underserved Communities Through Federal Government; 14005, Ensuring the Future is 

Made in All of America by All of America’s Workers; 14008, Tackling the Climate Crisis at 

Home and Abroad; 14028, Improving the Nation’s Cybersecurity; 14030, Climate-Related 

Financial Risk; and 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors 

(implementation and execution efforts will continue in FY 2022). 

In FY 2021, Treasury continued its trend towards creating savings and efficiencies through 

aggregating requirements and leveraging its purchasing power by utilizing existing contract 

vehicles. Treasury achieved both Spend Under Management (SUM) and Best-in-Class 

performance goals in FY 2021. To align with the Administration’s priority on procurement 

equity and OMB Memorandum M-22-03, Treasury modified its Category Management policy to 

proactively balance efficient buying with promoting contracting opportunities for small, 

disadvantaged businesses and other socio-economic small businesses. In FY 2022, OPE will 

focus on creating more robust market research tools to identify capable new entrants for Treasury 

requirements. 

Office of the Chief Data Officer (OCDO) 

In FY 2021, the OCDO served as the Objective Lead for Better Use of Data by authoring five 

cross cutting strategies in Treasury’s FY22-26 Strategic Plan. Treasury completed requirements 

for the first department-wide procurement of a data catalog solution, which, once implemented, 

will allow better management of Treasury’s metadata and help enable the chief data officer to 

serve as the department’s data lifecycle manager. Additionally, Treasury developed OCDO’s 

organizational mission, vision, strategy, and priorities for implementation of the Evidence Act 

and accomplishment of Department wide data priorities. Moreover, Treasury submitted its first 

CDO report to Congress in FY 2021. 

In FY 2022, OCDO identified a permanent Chief Data Officer and Deputy Chief Data Officer 

and is on track to deliver the department’s first OPEN Data Plan and Data Strategy. 

Treasury is also an active participant in the Federal CDO Council. Treasury’s CDO is especially 

active in both the data inventory working groups and the data skills working group and provides 

ancillary support to the CDO Council’s Executive Committee by reviewing documentation and 

offering focused support to Requests for Information and other support priorities. Other members 

of Treasury’s data community from bureaus and departmental offices participate in several 

Council Working Groups. Active participation in the Council enables the OCDO to understand 

and bring back to Treasury leading government practices in enhancing data management, use, 

sharing, as well as the development of a general data culture. More details on OCDO’s 

accomplishments are included in the Treasury CDO’s Annual Report to Congress. 

 
DOSE-32 

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $3,736 $6,000 $15,000 $22,341 $22,661 $22,494 $25,611 

CFIUS Fund Transfers 0 0 0 $15,000 $15,000 $15,000 $15,000 

Reimbursable Resources 0 0 0 0 $64 $105 $105 

Budget Activity Total $3,736 $6,000 $15,000 $37,341 $37,725 $37,599 $40,716 

Full-time Equivalents (FTE) 23 26 32 55 81 111 133 

Note: FTEs in the above include 1 FTE funded through reimbursable resources. 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Timely Review of CFIUS 

Cases 100% 100% 100% 100% 100% 100% 100% 100% 

Key: DISC - Discontinued; B - Baseline 

Committee on Foreign Investment in the United States Description of Performance:

Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines for 

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2021. IA’s target 

for this measure in CY 2022 and CY 2023 is 100 percent. 

Committee on Foreign Investment in the United States Budget and Performance 

($25,611,000 from direct appropriations, $15,000,000 from fund transfers, $105,000 from 

reimbursable resources): 

This office supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security:

 Objective 2.1: Cyber Resiliency of Financial Systems and Institutions. Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency. 

 Objective 2.2: Economic Measures to Advance National Security. Enhance and protect 

national security through the application of targeted financial measures and review of certain 

foreign investments. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.4: Sustainable Treasury Operations. Improve Treasury’s overall environmental 

and energy sustainability and invest in Bureaus’ adaptation and resiliency efforts to address 

climate change impacts on operations and services. 

 
DOSE-33 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

In FY 2021, Treasury CFIUS continued its growth to support requirements laid out in the 

Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). This includes 

continued investment in infrastructure necessary to support an increase in CFIUS’s 

responsibilities, as well as additional staff to manage the workload growth. FY 2021 was the first 

full year that the CFIUS Fund was entirely fee funded. Additional information on CFIUS can be 

found in the CFIUS Congressional Justification.

C – Changes in Performance Measures 

Departmental Offices Salaries and Expenses has no changes to performance measures in FY 

2023. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and non-technology 

investments, can be viewed and downloaded at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Cybersecurity Enhancement 

Account 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2023 
CEA - 2 

Table of Contents 

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

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

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

1.1 – Appropriations Detail Table ............................................................................................ 4

1.2 – Budget Adjustments Table ............................................................................................... 4

C – Budget Increases and Decreases Description ..................................................................... 4

1.3 – Object Classification (Schedule O) .................................................................................. 9

D – Appropriations Language and Explanation of Changes .................................................. 10

E – Legislative Proposals ........................................................................................................ 10

Section II – Annual Performance Plan and Report ............................................................... 11

A – Strategic Alignment ......................................................................................................... 11

B – Budget and Performance by Budget Activity .................................................................. 11

2.1.1 Cybersecurity Enhancement Account Resources and Measures ................................... 11

Cybersecurity Enhancement Account (CEA) Budget and Performance ................................ 11

C – Changes in Performance Measures .................................................................................. 13

Section III – Additional Information ...................................................................................... 13

A – Summary of Capital Investments ..................................................................................... 13

B – National Institute of Standards and Technology (NIST) Crosswalk ................................ 13
CEA - 3 

Section I – Budget Request 

A – Mission Statement 

Bolster the Department’s cybersecurity posture. 

B – Summary of the Request 

To support the Department’s proactive and strategic approach to protecting and hardening the 

Treasury’s Information Technology (IT) infrastructure against cyber criminals and nation state 

actors, the FY 2023 budget request includes $215 million for the Cybersecurity Enhancement 

Account (CEA) to protect and defend sensitive agency systems and information and strengthen 

the role of the Treasury Chief Information Officer (CIO) in identifying, responding, and 

protecting against cyber threats. The request supports Treasury’s enterprise-wide investments, as 

well as $12 million for bureau specific investments that will extend and reinforce the security 

protections sought by CIO. 

Treasury’s mission in geopolitical, economic, foreign policy, and national security matters for 

the United States government, means its infrastructure and data are prime targets for cyber 

criminals and nation state actors. Protecting Treasury’s leadership role in this mission requires 

commensurate infrastructure investment. Treasury’s pivotal role in sanctions increases this risk. 

The FY 2023 Budget request provides critical cybersecurity resources to support Treasury’s 

efforts to comply with the Executive Order 14028 (EO), Improving the Nation’s Cybersecurity as 

well as Office of Management and Budget (OMB) Memorandums, specifically M-21-31

Improving the Federal Government’s Investigative and Remediation Capabilities (security 

logging) and M-22-09 Moving the U.S. Government Toward Zero Trust Cybersecurity 

Principles. CEA’s funding request also supports compliance efforts associated with Department 

of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) guidance 

that sets new cybersecurity standards and objectives. These new directives also prioritize cloudbased security, security operations center (SOC) enhancements, universal encryption, and multifactor authentication (MFA). 

The CEA is positioned as a centralized account to support enterprise-wide cyber services and to 

further enhance cyber capabilities, providing a platform to enhance efficiency, communication, 

transparency, and accountability around the Treasury’s mission. The FY 2023 request elevates 

the importance of such initiatives and provides Treasury leadership, OMB, and Congress with a 

more holistic vantage point of cybersecurity activities across the Department. With the increase 

in cyber requirements and cascading deadlines, the Department is centralizing cybersecurity 

initiative leadership and oversight to gain operational efficiencies, ensure transparency and 

achieve enterprise-wide compliance for IT infrastructure. The enterprise-wide investment 

approach benefits the bureaus in their cybersecurity goals to create unified approach to cyber 

spending and stronger protections across the Department. 

The investments within the CEA continue to align with the National Institute of Standards and 

Technology (NIST) Cybersecurity core framework and reporting standards. This includes 

common cybersecurity activities and outcomes that are gaining use industry-wide: Identify, 

Protect, Detect, Respond, and Recover. 
CEA - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated 

Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Cybersecurity Enhancement 

Account 4 18,000 10 18,000 21 215,000 110.0% 1094.4% 

Subtotal New 

Appropriated Resources 4 $18,000 10 $18,000 21 $215,000 110.0% 1094.4% 

Other Resources Recoveries from Prior Years 0 1,500 0 2,000 0 2,000 NA 0.0% 

Unobligated Balances from 

Prior Years 0 26,463 0 17,923 0 17,403 NA -2.9% 

Subtotal Other Resources 0 $27,963 0 $19,923 0 $19,403 NA -2.6% 

Total Budgetary Resources 4 $45,963 10 $37,923 21 $234,403 110.0% 518.1% 

*FTE = Full-time Equivalent employment 

1.2 – Budget Adjustments Table 

 FTE Amount 

FY 2022 Annualized CR 10 $18,000 

Changes to Base: 

 Non-Recurring Costs (10) (18,000) 

Subtotal Changes to Base (10) (18,000) 

FY 2023 Current Services 0 $0 

Program Changes: 

Program Increases: 21 215,000 

Zero Trust Architecture Implementation 9 86,452 

Security Logging Requirements 0 23,329 

Cloud Enterprise Investment1 0 22,500 

Universal Encryption 0 16,467 

Multi-Factor Authentication 0 10,978 

Other Cybersecurity Priorities 9 43,050 

Bureau Specific Investments 

Cloud Adoption - Bureau of the Fiscal Service (Fiscal Service) 0 9,674 

FISMA Assessment Readiness Team - Departmental Offices 

 Salaries and Expenses (DO SE) 3 1,850 

Logging Requirements - Treasury Inspector General for Tax 

 Administration (TIGTA) 0 700 

Subtotal Program Changes 21 $215,000 

FY 2023 President's Budget Request 21 $215,000 

1The $22.5 million program increase for the Cloud Enterprise Investment includes enhancing and 

upgrading cloud security capabilities across the Department, including related IRS cyber activities. 

C – Budget Increases and Decreases Description 

Non-Recurring Costs ............................................................. -$18,000,000 / -10 FTE 

This amount represents non-recurring initial investments. 

Program Increases ............................................................+$215,000,000 / +21 FTE 

Zero Trust Architecture Implementation +$86,452,000 / +9 FTE 

This investment supports work towards a compliant zero trust maturity model. This large-scale 

investment approach requires Treasury to enhance visibility and threat detection at the 

application level to improve its ability to support continuous threat analysis, detection, and 

response, and enable the analysis of encrypted traffic. Reinforcing implementation of continuous 

identity verification and access policies, aligned with Zero Trust, will improve the Department’s 

resistance to fraudulent tampering of privileged accounts. 

 
CEA - 5 

Zero Trust Architecture (ZTA) is an IT security approach to minimize implicit trust and 

reinvigorate least privilege. The ZTA approach is a paradigm shift from verifying once at the 

perimeter to continual verification of each user, device, application, and transaction. This 

approach will do the following: 

 Enable a new default security posture using the practice of “never trust, always verify” across 

the entire technology stack. 

 Alter the approach for access enforcement, leveraging granular policies to assess the user 

identity, user device, and the categorization of the data before making an access decision. 

 Shift from defending the “macro attack surface” to the “micro protect surface.” 

Implementation of Zero Trust will initially be driven by focusing on the near-term actions 

required by OMB M-22-09, such as changes to password policies, building a new data 

categorization model, and making one “internal” systems accessible over the Internet. Treasury 

will proceed with the transition to ZTA by planning projects on a pillar-by-pillar basis (Identity, 

Device, Network, Application, Data, as well as Monitoring/Visibility, Automation, and 

Governance). Priority projects will be based on the risk reduction that will result, as well as the 

anticipated gain in Zero Trust Maturity they will provide weighed against the 

cost. Implementation of ZTA will require personnel resources with skillsets for managing the 

service providers to develop, test, and deploy the applications that have integrated security 

controls. 

Security Logging Requirements +$23,329,000 / +0 FTE 

Supports Treasury’s compliance efforts related to the security logging requirements outlined in 

OMB Memorandum M-21-31. This guidance requires all logs of security information captured, 

to be accessible and visible for the highest-level security operations center (SOC) at the 

Department. This will require expansion of the Treasury Shared Services Secure Operations 

Center (TSSSOC) enterprise logging solution to be able to receive, store, analyze and process 

security event and system logs from all Treasury offices and bureaus as well as the 39 Treasury 

Shared Services. This will allow Treasury to: 

 Create and monitor traps for detecting data-stream disruption

 Implement a facility to share the logs with CISA, FBI and other authorities required 

 Provide storage and retention for log data consistent with M-21-31 requirements 

 Analyze logs in real time to detect attacks and other activities of interest 

 Develop automated hunt and incident response playbooks that take advantage of Security, 

Orchestration, Automation, and Response (SOAR) capabilities

 Create and implement a user behavioral analytics capability to allow for early detection of 

malicious behavior on all user and non-user accounts. This requires machine learning and 

artificial intelligence techniques to detect anomalous user actions and help combat advanced 

threats

 
CEA - 6 

The FY 2023 budget request for Security Logging Requirements will be used in the following 

ways: 

 Support appropriate acquisition of subject matter expertise for the development of an 

enterprise, centralized logging solution that leverages a single architecture and allows for 

segmentation of Bureau data, and presents efficiencies in collecting and distributing necessary 

information to external partners (e.g., CISA, FBI, etc.) 

 Stand-up the initial capabilities (resource support, development, migration, etc.) within the 

Treasury enterprise cloud program, Workplace Community Cloud (WC2) 

 Support initial storage requirements to centralize enterprise shared service program logs, with 

targeted expansion of architecture and migration of Bureaus logs to the centralized cloud-based 

storage solution 

 Expansion of enterprise license capacity to support centralized log management and the onramping of Bureaus from legacy licensing and log storage environments

There are many factors that will impact on the costs associated with implementation of the 

security logging requirements. These factors include but are not limited to legacy licensing; 

contract structures; resources for O&M; and holistic storage requirements. The complexity of a 

federated bureau environment also proposes a unique challenge to ensure compliance. 

Cloud Enterprise Investment +$22,500,000 / +0 FTE

This investment is for cloud enterprise cyber security enhancements and upgraded capabilities to 

meet ever growing security and compliance risks. The Treasury enterprise cloud program 

enhances security controls, monitors capabilities, and increases threat protections by providing a 

common cloud operating platform for Departmental workloads inclusive of all the of the security 

elements driven by EO 14028 and subsidiary guidance. This will allow the bureaus to integrate 

into Treasury’s holistic security umbrella with a single pane of glass view for operational 

security elements such as the TSSOC. 

Treasury continues to improve, entice, and further accelerate enterprise-wide cloud adoption 

through investment in cloud environments. The FY 2023 budget request will support 

improvements in the following areas: 

 Identity Pillars - Includes migrations of cloud users to Azure Active Directory (AD) and 

implementation of Azure Defender for endpoints and users. Azure AD will enable the 

enterprise shared service cloud program to centralize and streamline governance and 

management of WC2 privileged accounts, and includes advanced threat protections such as 

automated detection, remediation and reporting of unusual activity using latest threat detection 

and analytics. 

 Network and Environment Segregation - Includes an architecture ZTA maturity assessment 

and implementation plan for both Treasury shared services cloud environments against NIST 

Zero Trust reference Architectures. Implementation will focus on security control 

enhancements to achieve the near-term ZTA vision and alignment to NIST container-based 

control security requirements. 

 Cloud Monitoring Tenant - Includes increased cloud telemetry, implementation for Trusted 

Internet Connection (TIC) 3.0 requirements, and consolidation of logging environments to 

reduce ongoing O&M costs and adopt the latest advances in log analysis. Additional security 
CEA - 7 

operations and threat hunting support will operationalize the data creating security dashboards 

to show potential security issues which require investigation. 

Universal Encryption +$16,467,000 / +0 FTE 

Supports Treasury’s commitment to fully comply with the encryption protocols outlined in EO 

14028 and subsidiary supporting material from OMB, CISA, NIST and other cybersecurity 

oversight entities. Encryptions allows information and data to be converted into code to prevent 

unauthorized access. This funding level is necessary to develop a more aggressive approach to 

these cyber protections which contributes to the adoption of ZTA. 

To further protections of the internet and email traffic across its networks, Treasury uses 

encryption protocols to prevent adversaries from being able to intercept and capture traffic as it 

flows between endpoints. EO 14028 and M-22-09 prescribe a heightened level of encryption for 

Domain Name System (DNS) and Hypertext Transfer Protocol (HTTP) traffic that all agencies 

should use to increase the security of information transfer, particularly across public networks 

such as the Internet. It is anticipated that no changes will be made to the DNS infrastructure to 

enable encryption, and that the work will focus on transitioning applications to use HTTPS for 

secure communication with users. Treasury is also implementing Data at Rest (DAR) and Date 

in Transit (DIT) encryption across its entire IT portfolio. 

Multi-Factor Authentication +$10,978,000 / +0 FTE 

This investment is for Multi-Factor Authentication (MFA), which is a critical part of the Federal 

Government’s security baseline and integral component of Treasury’s solutions to prevent 

unauthorized access by adversaries including nation state actors. MFA is a layered approach to 

securing access to a network or application by verifying identity with a combination of two or 

more approved pieces of strong evidence (or factors) to an authentication mechanism. Typical 

MFA factors include knowledge (something only the user knows such as a PIN), possession 

(something only the user has such as a smart card), and inherence (form of biometric specific 

only to the user like a fingerprint). 

EO 14028 directed agencies to remove passwords and fully adopt MFA to the maximum extent 

by November 2021. While Treasury has made substantial progress with an increase in MFA 

compliance posture by 16% for internal systems and applications (moving from 58% to 74%);

there is significant work to be done including compliance with subsequent memos impacting 

MFA like M-22-09, which places significant emphasis on MFA. The FY 2023 funding levels 

support Treasury’s work to protect data at rest and in transit, which may include personal 

identification of financial assets; collaborate with industry partners, and to also align with the 

FISMA requirements driven by CISA. 

Other Cybersecurity Priorities +$43,050,000 / +9 FTE

In FY 2023, Treasury will continue to make progress on ongoing critical cybersecurity 

investments that are in various Development, Modernization and Enhancement (DME) and 

initial Operation and Maintenance (O&M) phases. Continued funding of these critical 

investments is necessary to sustain progress made on some investments and launch new projects 

not previously identified. Responding to the changing threat landscape in an interconnected 

environment has amplified the need for identifying and assessing the security posture of high 

value assets as well as vendors within our supply chain. Additionally, based on the complex 
CEA - 8 

nature of cybersecurity, ongoing maturation of these programs is necessary to enable much 

needed visibility into the myriad of threats, vulnerabilities, and cybersecurity risks facing 

Treasury. Priority investments include but are not limited to: 

 Supply Chain Risk Management Enhancements (SCRM) 

 Enterprise Cyber Risk Management (ECRM) 

 Governance, Risk and Compliance (GRC) 

 High Value Assets (HVA) 

 Enterprise Threat and Vulnerability Management (ETVM) 

 Vulnerability Disclosure Policy (VDP) Platform 

 Ongoing SolarWinds Infrastructure and Post Incident Investments: 

o Threat intelligence providing proactive posture with regards to emergent threat (Post 

Incident) 

o Enterprise Application Security Improvements (Post Incident) 

o Annual Threat Hunt (Post Incident) 

o Hardware Security Modules (HSM) for generation and storage of security certificates 

(Infrastructure) 

Additionally, the personnel resources requested are a part of Treasury’s reinforcement and 

maturation of its cybersecurity compliance practices. These resources will focus on HVAs, ECRM 

and SCRM to support the EO 1402 and FISMA assurance activities to ensure criteria to evaluate 

software security and utilization of tools demonstrate conformance to security practices. 

Bureau Specific Investment +$12,224,000 / +3 FTE 

Cloud Adoption- Bureau of the Fiscal Service (Fiscal Service) +$9,674,000 / +0 FTE 

This investment will accelerate Fiscal Service’s Cloud Adoption from aging, costly platforms to 

optimize cloud‐based architecture that will enhance the resiliency of Fiscal Service’s systems 

and remediate Fiscal Service audit deficiencies. This applies to Fiscal Service’s specific portfolio 

of applications and systems. Many of Fiscal Service’s HVAs that support the National Critical 

Financial Infrastructure (NCFI) are currently hosted on aging platforms based on antiquated 

code. For example, one of these platforms is the Fiscal Service Mainframe, which costs $45.9 

million annually substantial contractual costs that is anticipated to continue increasing over time. 

Consistent with the EO 14208, this funding will allow Fiscal Service to move over 60 FISMA 

systems to secure cloud services, including Software as a Service (SaaS), Infrastructure as a 

Service (IaaS), and Platform as a Service (PaaS). It will also enhance the business continuity and 

disaster recovery of these systems. 

FISMA Assessment Readiness Team- Departmental Offices Salaries and Expenses (DO SE) 

$1,850,000 / +3 FTE 

This investment will establish an Assessment Readiness Team (ART) which will be responsible 

for conducting independent assessments of security policies, programs, and operations 

throughout Treasury to identify gaps in a bureau’s security posture and close them before they 

can be exploited by cyber criminals and nation state actors. The ART will be responsible for 

conducting security control assessments ensuring incident detection controls are employed and 

identifying associated deficiencies to detect capabilities across Treasury systems. These 

assessments will be used to improve Treasury’s cybersecurity maturity model against technical, 

management and operational controls. 
CEA - 9 

Logging Requirements- Treasury Inspector General for Tax Administration (TIGTA) +$700,000 

/ +0 FTE 

This investment supports TIGTA’s plans to meet EO 14028 and subsequent OMB M-21-31. 

TIGTA will continue strengthening and operating its enterprise logging solution to meet current 

and future demands to: 

 Collect security event and system logs in real time for threat detection and compliance use 

cases 

 Analyze logs in real time to detect attacks and other activities of interest 

 Investigate incidents to determine their potential severity and impact on a business 

 Report on these activities 

 Store relevant events and logs 

This will also enable TIGTA to perform the data collection needed to meet the requirements and 

automate the identification of unauthorized disclosure or access (UNAX) while also vastly 

improving the cyber detection capabilities. At the same time, it will meet on-going demands for 

improved efficiencies around cyber incident detection and response. The request will fund 12 

months of operations. 

1.3 – Object Classification (Schedule O) 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

 Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Object Classification Obligations 

11.1 - Full-time permanent 591 1,935 3,150 

11.5 - Other personnel compensation 10 0 0 

11.9 - Personnel Compensation (Total) 601 1,935 3,150 

12.0 - Personnel benefits 245 669 945 

Total Personnel and Compensation Benefits $846 $2,604 $4,095 

21.0 - Travel and transportation of persons 0 0 

23.3 - Communications, utilities, and miscellaneous charges 0 1,035 6,810 

25.1 - Advisory and assistance services 24,792 10,818 71,191 

25.2 - Other services from non-Federal sources 206 796 5,238 

25.3 - Other goods and services from Federal sources 0 569 3,742 

25.7 - Operation and maintenance of equipment 0 2,050 13,489 

26.0 - Supplies and materials 3 0 0 

31.0 - Equipment 2153 2,649 17,434 

32.0 - Land and structures 40 0 0 

Total Non-Personnel $27,194 $17,916 $117,905 

Total Obligations $28,040 $20,520 $122,000 

 

Full-time Equivalents (FTE) 4 10 21 

*Amounts reflect obligations of annual appropriated resources, carryover balance, reimbursables, and transfers. 
CEA - 10 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

CYBERSECURITY ENHANCEMENT ACCOUNT 

(INCLUDING TRANSFER OF FUNDS) 

For salaries and expenses for enhanced cybersecurity for systems 

operated by the Department of the Treasury, $215,000,000, to 

remain available until September 30, 2025: Provided, That such 

funds shall supplement and not supplant any other amounts made 

available to the Treasury offices and bureaus for cybersecurity: 

Provided further, That of the total amount made available under this 

heading $9,000,000 shall be available for administrative expenses 

for the Treasury Chief Information Officer to provide oversight of 

the investments made under this heading: Provided further, That 

such funds shall supplement and not supplant any other amounts 

made available to the Treasury Chief Information Officer. 

Note.—A full-year 2022 appropriation for this account was not 

enacted at the time the Budget was prepared; therefore, the Budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of Public Law 117–43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution

E – Legislative Proposals 

The Cybersecurity Enhancement Account has no legislative proposals. 
CEA - 11 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Alignment with the Treasury Strategic Plan 

The CEA is focused on an enterprise approach to bolstering and security of Treasury’s critical IT 

systems and infrastructure to meet these Department’s strategic goals and objectives 

uninterrupted. The CEA aligns with the following Treasury strategic goal and objectives as 

presented in the FY 2022- 2026 strategic plan: 

Goal 2: Enhance National Security 

 Objective 2.1 – Cyber Resiliency of Financial Systems and Institutions - Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency. 

Goal 3: Protect Financial Stability and Resiliency 

 Objective 3.1 – Financial System Vulnerabilities - Identify and address current and emerging 

vulnerabilities to the stability of the U.S. and global financial systems to support more 

sustainable and equitable growth. 

B – Budget and Performance by Budget Activity 

2.1.1 Cybersecurity Enhancement Account Resources and Measures 

Dollars in Thousands 

 

Resource Level

FY 2017 

Actuals 

FY 2018 

Actuals 

FY 2019 

Actuals 

FY 2020 

Actuals 

FY 2021 

Actuals 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources 47,743 24,000 25,208 20,538 28,040 18,000 215,000 

Budget Activity Total $47,743 $24,000 $25,208 $20,538 $28,040 $18,000 $215,000 

Full-time Equivalents (FTE) 1 8 12 3 4 10 21 

*The FY 2017 – 2021 appropriated resources represent the approved operating plan. 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Number of Major Incidents N/A 0 0 1 1 0 0 0 

Number of Reported Incidents N/A 225 152 206 246 150 150 150 

Percentage of Tier I High Value 

Assets (HVA) where Risk and 

Vulnerability Assessment (RVA) or 

Security Architecture Review (SAR) 

are Completed on Time (%) 

N/A 100 100 10 100 100 100 100 

Percentage of High and/or Critical 

Findings from RVAs or SARs on 

Tier I HVAs that are closed by the 

end of the FY 

N/A N/A 57% 80% 80% 75% 75% 80% 

Cybersecurity Enhancement Account (CEA) Budget and Performance 

($215,000,000 from direct appropriations): 

The purpose of CEA is to strategically mitigate cybersecurity risks through a centralized 

program with Department-wide impact. Investments support the core framework of the 

Department’s IT infrastructure. Due to the increasing volume and sophistication of cyberattacks, 

Treasury leadership continues to prioritize cybersecurity and will centralize department-wide 

cybersecurity initiatives through the CEA account. As a result, the FY 2023 CEA will begin to 

include bureau-level cybersecurity spending for specific investments related to cloud adoption 

and security logging requirements. 
CEA - 12 

Description of Performance 

Number of Major Incidents: 

The number of major incidents, as defined in OMB M-19-02, reported by Treasury to Congress 

in a given fiscal year. This is a measure of how effective Treasury’s collective defenses are at 

mitigating the most damaging security threats. On December 12, 2020, Treasury notified CISA 

of a major security incident because of the deployment of the SolarWinds Orion software 

product. Treasury has completed compromise assessments and all SolarWinds Orion products 

continue to remain offline across the Treasury Enterprise environment. The FY 2023 request 

includes additional funding to mitigate weaknesses identified and investments that support 

critical IT improvements. The FY 2022 and 2023 performance target of zero major incidents 

reported will be met through continued work to harden cybersecurity protocols, implementation 

of new cyber technology, interagency collaboration, increased training for cyber personnel, and 

customer feedback. 

Number of Reported Incidents: 

Each fiscal year, Treasury tracks the number of cybersecurity incidents reported to the United 

States Computer Emergency Readiness Team (US-CERT). This helps measure the effectiveness 

of Treasury’s defenses at mitigating security threats and is an indicator of how often Treasury is 

being targeted by malicious actors. If the number of reported incidents rises while the number of 

major incidents remains steady or declines, it indicates an effective cybersecurity program. The 

incidence of intrusion events at Treasury has not remained constant over time, and projections 

must be used as a baseline measure only. In FY 2021, Treasury witnessed a lower number of 

incidents being reported, this is indicative of enhanced detection and mitigation capabilities. The 

FY 2022 and FY 2023 targets will remain flat. 

Percentage of High and/or Critical Findings from Risk and Vulnerability Assessment (RVAs) or 

Security Architecture Review (SARs) on Tier I High Value Assets (HVAs) that are closed by the 

end of the Fiscal Year (FY):

This is a measure of how Treasury addresses the vulnerabilities and potentially exploitable 

weaknesses of its most important systems, based on its HVA assessment process. Treasury’s 

CEA performance targets are based upon the percentage of HVA system assessments that are 

conducted in accordance with the HVA assessment cycle and the closure rate of resulting 

findings and/or Plans of Action and Milestones (POAMs) within the fiscal year. Treasury has 

consistently recorded a 100 percent completion rate for system assessments and currently has a 

100 percent closure rate for associated findings and POAMs. This focus helps to ensure that the 

proper POAMs are in place for all assessed systems and that they are being acted upon in a 

timely manner. The investment will focus on remediation of vulnerabilities, as well as increased 

review and reporting on corrective actions to resolve all findings and recommendations discerned 

during the assessment process. It was decided that the FY 2022 and 2023 targets will remain flat 

from FY 2021 numbers due to the likelihood of findings from HVA assessments requiring longterm remediation efforts. 
CEA - 13 

C – Changes in Performance Measures 

This year, CEA is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

CEA has no changes to any performance measures from the previous year President’s Budget. 

Section III – Additional Information 

A – Summary of Capital Investments 

Capital investments that support CEA are included in the Departmental Offices plan. 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 

B – National Institute of Standards and Technology (NIST) Crosswalk 

NIST Crosswalk to FY 2023 President’s Budget Request: 

 

CEA Investments Identify Protect Detect Respond Recover Total FY 2023 Request

Zero Trust Architecture Implementation $                             ‐ $           ‐ 86,452,000 $                          ‐ $                              ‐ $                         $                  86,452,000

Security Logging Requirements $                             ‐ $           ‐ 23,329,000 $                          ‐ $                              ‐ $                         $                  23,329,000

Cloud Enterprise Investment $                             ‐ $           ‐ 22,500,000 $                          ‐ $                              ‐ $                         $                  22,500,000

Universal Encryption $                             ‐ $           ‐ 16,467,000 $                          ‐ $                              ‐ $                         $                  16,467,000

Multi‐Factor Authentication (MFA) $                             ‐ $            3,659,333 $           3,659,333 $                ‐ 3,659,333 $                         $                  10,978,000

Other Cybersecurity Priorities $             26,069,167 $          11,719,167 $           2,152,500 $               2,152,500 $             956,667 $                  43,050,000

Bureau Specific Investments 925,000 $                   $          10,374,000 $               ‐ 925,000 $                              ‐ $                         $                  12,224,000

BFS‐ Cloud Adoption $                             ‐ $             ‐ 9,674,000 $                          ‐ $                              ‐ $                         $                     9,674,000

DO SE‐FISMA ART 925,000 $                   ‐ $                         $               ‐ 925,000 $                              ‐ $                         $                     1,850,000

TIGTA‐Security Logging $                             ‐ $                ‐ 700,000 $                          ‐ $                              ‐ $                         $                        700,000

Grand Total 26,994,167 $              $       175,425,500 $           5,811,833 $               5,811,833 $             956,667 $                215,000,000

NIST Reporting Categories


Department of the Treasury 

Department-wide Systems and 

Capital Investments Program 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2023 

 
DSCIP - 2 

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

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

E – Legislative Proposals ............................................................................................................ 7

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

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1 – DSCIP Resources and Measures ........................................................................................ 8

Department-wide Systems and Capital Investments Program Fund Budget and Performance .. 8

Section III – Additional Information .......................................................................................... 9

A – Summary of Capital Investments ......................................................................................... 9
DSCIP - 3 

Section I – Budget Request 

A – Mission Statement 

Improve infrastructure, modernize business processes, and increase efficiency through 

technology and capital investments that support the missions of Treasury bureaus and programs. 

B – Summary of the Request 

An icon of American architecture, the Main Treasury Building is the third oldest in use Federal 

building in Washington, after the Capitol and the White House. Unlike the Capitol or the White 

House, the Main Treasury Building is not under the jurisdiction of the Architect of the Capitol or 

GSA respectfully, but rather is the direct responsibility of the Treasury Department. The bulk of 

funding for its care through capital investments is provided through DSCIP. 

The Main Treasury Building was built with Congressional appropriations from 1836 to 1869. 

From 1909 to 1910, the building received a special appropriation to modernize its infrastructure, 

which helped to bring the building into the 20th century. A major fire in 1996 resulted in a series 

of Congressional appropriations that ushered the Treasury Building into the 21st century. Now, 

26 years later, the building faces a magnitude of issues that need to be addressed, some of which 

pose life safety concerns, including issues related to Treasury and the Freedman’s Bank 

Buildings’ external and internal infrastructure and security posture. 

Treasury’s FY 2023 request reflects a limited subset of those previously identified needs, which 

the Department plans to continue to work to address over time. The FY 2023 request builds on 

prior year efforts (which included requests in FY 2021 and 2022) to repair the outer envelope of 

the Main Treasury building, and also includes funding to address major repairs within the 

interior of the Main Treasury building. This request reflects Treasury’s three-step long-term 

strategy to continue to maintain and modernize its owned spaces: (1) secure the building’s outer 

envelope; (2) conduct a condition assessment to identify additional needs associated with the 

buildings’ continual aging and deferred maintenance; and (3) based on this assessment, conduct a 

holistic modernization of the building’s systems and infrastructure. The last facility condition 

assessment Treasury conducted was in 2016 which found a range of needs to be addressed. In 

2021 Treasury began a new assessment in an effort to update the list of outstanding projects to be 

addressed. 

Additionally, the request includes $5 million for the leasing of zero-emission vehicles and the 

purchase of associated charging infrastructure in support of the Administration’s goal of 

achieving 100 percent zero-emission vehicle acquisitions by 2035 for the Federal vehicle fleet 

by 2035. 
DSCIP - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Department-Wide Systems and 

Capital Investments Program 0 $6,118 0 $6,118 0 $11,118 NA 81.7% 

Subtotal New Appropriated 

Resources 0 $6,118 0 $6,118 0 $11,118 NA 81.7% 

Total Budgetary Resources 0 6,118 0 $6,118 0 $11,118 NA 81.7% 

1.2 – Budget Adjustments Table

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 0 $6,118 

Changes to Base: 

Non-Recurring Costs 0 ($6,118) 

Main Treasury Exterior Repairs 0 ($6,118) 

Subtotal Changes to Base 0 ($6,118) 

FY 2023 Current Services 0 $0 

Program Changes: 

Program Increases: 0 $11,118 

Interior Repairs: includes elevator overhaul and basement wall waterproofing 0 $2,118 

Main Treasury Exterior Repairs 0 $4,000 

Electric Vehicle Leases and Infrastructure 0 $5,000 

FY 2023 President's Budget Request 0 $11,118 

C – Budget Increases and Decreases Description 

Non-Recurring Costs ............................................................................... -$6,118,000 / + 0 FTE 

This amount represents the non-recur of investments funded within the FY 2022 annualized CR

Program Increases ....................................................................................+$11,118,000 / +0 FTE 

Interior Repairs: includes elevator overhaul and basement wall waterproofing +$2,118,000 / +0 

FTE 

Elevators- rebuild/overhaul- design, $500,000, +0 FTE 

Funding is requested for the Main Treasury elevators that were last renovated approximately 20 

years ago and are approaching the end of their useful life. Recently these elevators have 

experienced a higher level of failure issues including trapped building occupants. Failing 

elevators pose a significant danger to Main Treasury employees and visitors and hold Treasury 

back from being compliant with life safety codes. This request will also fund an assessment of 

the elevators and the renovation planning and design. 

Basement wall waterproofing - study/design – repair, $1,618,000, +0 FTE

Leaks in the basement level of the Freedman’s Bank Building have impacted the use of secure 

office spaces due to safety and health concerns. To address the water intrusion issues and prevent 

increased future damage, an excavation along the south side of the building will need to be 

conducted. Additionally, below-grade area waterproofing, backfill, and restoration of the 
DSCIP - 5 

surrounding area would be required to permanently address the water intrusion issues. Ongoing 

water intrusion will eventually undermine the structure. This request will support the study to 

complete the design as well as partial repairs of the space. 

 

Main Treasury Exterior Repairs +$4,000,000 / +0 FTE 

Treasury’s request continues critical renovations and maintenance of the outer shell of the Main 

Treasury (MT) and Freedman’s Bank Building (FBB) facilities, with the primary goals of 

preventing continued water intrusion and repairing key structural components. Work items 

include repairs to masonry and windowsills (see figures 1 and 2 below). 

 

Figure 1: Repairing failed masonry joints to protect from moisture penetration, cleaning the 

stone surfaces, and repairing damaged stone. 

Figure 2: Repairing or replacing window frames suffering varying degrees of damage after 

years of weather exposure. Window work will require scaffolding which is expensive to 

rent/contract. 

Fig 1: Open Joints, Failing Masonry Fig 2: Typical Rotten Windowsill
DSCIP - 6 

This request funds phase four of the multiyear effort to maintain the building and to prevent 

more expensive repair work, as deterioration continues, to include weather intrusion that is 

impacting interior spaces that require remediation and can cause mold, which impacts air quality 

and creates a health and safety risk to staff. Phase four covers the remainder of the 

Hamilton/South entrance and the East/15th St. façade of the MT building. This funding covers 

exterior repairs, but it is possible the repairs will uncover additional unanticipated structural 

issues that could require additional funding requests. 

Electric Vehicle Leases and Infrastructure +$5,000,000 / +0 FTE 

Treasury is committed to supporting the Administration’s goals of combatting the impacts of 

climate change. The Department of the Treasury is accelerating the conversion of its vehicle 

fleet to electric vehicles (EVs) as a part of strategic objective 4.4 (Sustainable Treasury 

Operations). In order to facilitate this transition, $5 million is being requested by Treasury in 

FY 2023 in the Department-wide Systems and Capital Investments Program account for leasing 

of EVs and purchasing associated charging and supply equipment. Funding will be used for the 

replacement of traditional internal combustion vehicle leases with zero-emission vehicles across 

the Department. Where possible, electric vehicles will replace traditionally powered leased 

vehicles as well. Additional charging station infrastructure will be installed to support fleet 

electrification. Some existing charging stations will require updates or replacement. Electrifying 

the Treasury fleet will support environmental and energy sustainability and will make Treasury 

more adaptive and resilient to the impacts of climate change. 

Phase 4:  

15th

Street

Phase 1:

White House

Side/Bell

Entrance

Phase 3/4: Hamilton Entrance

Phase 2: Gallatin Entrance

Exterior Floors 1‐4 complete, 5

th

+ Floor(s) exterior pending

Additional Funding Needed to Complete

Shared wall (no external repairs needed)

Contract awarded

Funding requested in FY22

Funding Requested in FY23

FBB 

MT 
DSCIP - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations* 

23.3 - Communications, utilities, and miscellaneous charges 0 0 5,000* 

25.1 - Advisory and assistance services 321 1,286 0 

25.7 - Operation and maintenance of equipment 186 0 0 

31.0 - Equipment 1,842 0 0 

32.0 - Land and structures 6,528 8,364 6,118 

Total Non-Personnel $8,877 $9,650 $11,118 

Total Obligations $8,877 $9,650 $11,118 

 

Full-time Equivalents (FTE) 0 0 0 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

*Amounts for electric vehicles in FY 2023 likely to be transferred to other bureaus, exact amounts to be transferred are to be determined. 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENT-WIDE SYSTEMS AND CAPITAL 

INVESTMENTS PROGRAM 

For development and acquisition of automatic data processing 

equipment, software, and services; for the hire of zero emission 

passenger motor vehicles and for supporting charging or fueling 

infrastructure; and for repairs and renovations to buildings owned 

by the Department of the Treasury, $11,118,000, to remain 

available until September 30, 2025: 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.’’ 

Note. --A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as amended). 

The amounts included for 2022 reflect the annualized level 

provided by the continuing resolution.

Provides authority to 

DSCIP to spend funding 

on electric vehicles and 

associated charging 

infrastructure. 

E – Legislative Proposals 

DSCIP has no legislative proposals. 
DSCIP - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The DSCIP account provides a mechanism for Treasury to fund capital investments that have 

complex contracts with projects that span several fiscal years. Through the DSCIP account, the 

Treasury has been able to develop a Treasury-wide human resources information technology 

solution as well as fund the continual repair and restoration of the Main Treasury Building and 

the Freedman’s Bank Building. 

DSCIP’s work aligns with the following new objectives in the Treasury FY 2022 – 2026 

Strategic Plan: 

Strategic Goal 4, to Combat Climate Change: 

 Objective 4.4: Sustainable Treasury Operations. Improve Treasury’s overall environmental 

and energy sustainability and invest in Bureaus’ adaptation and resiliency efforts to address 

climate change impacts on operations and services. 

Strategic Goal 5, to Modernize Treasury Operations: 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

B – Budget and Performance by Budget Activity 

2.1 – DSCIP Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Department-wide Systems 

and Capital Investments 

Program (DSCIP) 

$3,000 $4,426 $4,000 $6,118 $6,118 $6,118 $11,118 

Budget Activity Total $3,000 $4,426 $4,000 $6,118 $6,118 $6,118 $11,118 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

Note: Funding levels reflect actual appropriation levels for FY 2017 – FY 2021 as reflected in the annual operating plan. 

Department-wide Systems and Capital Investments Program Fund Budget and 

Performance 

($11,118,000 from direct appropriations): 

Treasury Owned Buildings - Repairs and Renovations 

Treasury Operations has continued to strategically focus on restoring the health of the building 

envelope (shell), in an effort to correct the deteriorating building structure and infrastructure. 

Components of the Main Treasury building that have been repaired, replaced, or funded include 

new roofs (FY 2019/2021) and repairs to 40 percent of the windows (FY 2015/2017). The 

Freedman’s Bank Building components that have been repaired, replaced, or funded/planned 

include new roofs (FY 2017/2019), domestic water line (FY 2020/2022), and replacement of all 

windows 
DSCIP - 9 

(FY 2009/2011). Funding and completion of these exterior items represent significant progress 

towards the preservation of the two buildings, maintaining a safe and healthy workplace, and 

reducing damage to the interior plaster and paint. The contract for the first phase of the Main 

Treasury exterior restoration was awarded late in FY 2021. Completion of the first phase is 

expected (restoration of the west façade) during FY 2022. 

The FY 2021 contract award of the expanded Facility Condition Assessment (FCA) will provide 

an update and validation to the immediate repair needs that will identify long-term capital 

expenses based on the expected useful life of building systems and components. The FCA will 

also allow Treasury to identify ways to modernize Treasury facilities to improve energy 

efficiency and sustainability. Treasury Operations has enlisted non-reimbursable staffing 

resources to identify ways to improve Treasury’s sustainability and decrease Treasury’s carbon 

footprint, and the FCA will be invaluable in establishing a baseline from which Treasury can 

identify areas where sustainability or energy efficiency can be improved (e.g., legacy mechanical 

systems, more efficient building envelope, etc.) consistent with strategic objective 4.4. Work on 

the expanded FCA began in December 2021. 

In addition to immediate repairs and long-term needs, the expanded FCA will provide feedback 

on code and Americans with Disabilities Act compliance. In doing so, it will also allow 

Treasury to provide a safer, more inclusive, and more comfortable environment for Treasury 

staff, which should contribute to the productivity and morale of employees within these buildings 

consistent with strategic objective 5.4. After the onset of the pandemic and the loss of activity in 

the Washington, DC Central Business District, Treasury owned spaces experienced a significant 

increase in rodent activity. Shortly after that, a water line leak led to the collapse of an interior 

basement wall in the FBB. In January 2022 a broken water pipe on the fifth floor of MT flooded 

all the floors below it, compromising workstations, walls, ceilings, and carpeting. Situations like 

these make it difficult for Treasury to support its staff within Treasury DO. The FCA will allow 

DO to identify and develop action plans to solve problems like these before they can occur, 

driving better, safer, and more inclusive experiences for Treasury staff. 

SolarWinds Response 

Due to the large scope of the SolarWinds incident remediation, in May 2021 Treasury realigned 

$3.7M from the FY 2021 DSCIP appropriation to address immediate cybersecurity requirements. 

Section III – Additional Information 

A – Summary of Capital Investments 

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

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments 


Department of the Treasury 

Office of Terrorism and 

Financial Intelligence 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
TFI - 2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments ........................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance/Workforce Indicators by Budget Activity ................................. 10

2.1.1 – Terrorism and Financial Intelligence Resources and Measures ................................... 10

Terrorism and Financial Intelligence Budget and Performance ............................................... 10

C – Changes in Performance Measures .................................................................................... 13

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13
TFI - 3 

Section I – Budget Request 

A – Mission Statement 

Enhance national security by applying Treasury’s unique policy, enforcement, intelligence, and 

regulatory tools to identify, disrupt and disable terrorists, criminals, and other national security 

threats to the United States and to protect the U.S. and international financial systems from abuse 

by illicit actors. 

B – Summary of the Request 

TFI requests $212.059 million, which is a $37.059 million increase from the level of the FY 

2021 Operating Plan. TFI requests these additional resources to continue to invest in its people. 

As reliance on TFI’s authorities has grown, the corresponding growth in personnel across TFI 

and increased demand placed upon secure systems requires additional investment in mission 

support areas. This request also promotes targeted investments that will strengthen U.S. national 

security, including financing for classified systems technology, sanctions efforts, Departmentwide counterintelligence efforts, and a legislatively-mandated Kleptocracy Rewards Pilot 

Program. The FY 2023 budget prioritizes funding for Treasury’s targeted financial tools that 

protect the U.S. and international financial system from abuse, as well as countering the financial 

networks that support terrorists, weapons proliferators, organized transnational crime, rogue 

regimes, and other threats. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Terrorism and Financial Intelligence 524 $175,000 561 $175,000 624 $212,059 11.2% 21.2% 

Subtotal New Appropriated Resources 524 $175,000 561 $175,000 624 $212,059 11.2% 21.2% 

Other Resources 

Reimbursable 35 $8,280 41 $10,500 41 $10,500 0.0% 0.0% 

Subtotal Other Resources 35 $8,280 41 $10,500 41 $10,500 0.0% 0.0% 

Total Budgetary Resources 559 183,280 602 $185,500 665 $222,559 10.5% 20.0% 

Note: FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 
TFI - 4 

1.2 – Budget Adjustments 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 561 $175,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $6,567 

Pay Annualization (2.7% average pay raise) 0 $746 

Pay Raise (4.6% average pay raise) 0 $4,142 

Non-Pay 0 $1,679 

Other Adjustments: 14 $10,192 

Adjustments to Meet Current Operating Levels 14 $10,192 

Subtotal Changes to Base 14 $16,759 

FY 2023 Current Services 575 $191,759 

Program Changes: 

Program Increases: 49 $20,300 

Enhance the IC's Economic Security and Financial Intelligence 32 $8,000 

Upgrade Treasury’s Secure Space and Network Infrastructure 0 $2,281 

Emerging Sanctions Programs 13 $3,186 

Develop Treasury's Secure Communications and Continuity Program 2 $672 

Kleptocracy Asset Recovery Rewards Pilot Program - Payments for Rewards 0 $1,650 

Terrorist Financing and Financial Crimes Operations/Travel 2 $1,787 

Counter Cyber-Enabled Threats 0 $2,724 

FY 2023 President's Budget Request 624 $212,059 

 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...................................................... +$6,567,000 / +0 FTE 

Pay Annualization (2.7%) +$746,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$4,142,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$1,679,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Other Adjustments ................................................................................ +$10,192,000 / +14 FTE 

Adjustments to Meet Current Operating Levels +$10,192,000 / +14 FTE 

Adjustment relates to funding received in prior year that supports technology investments and 

hiring and onboarding of +14 FTEs. 

 

Program Increases ................................................................................. +$20,300,000 / +49 FTE 

Enhance the Intelligence Community's (IC) Economic Security and Financial Intelligence 

+$8,000,000 / +32 FTE 

The Department requests $8 million for targeted investments to improve TFI’s Office of 

Intelligence Analysis’s (OIA) economic and finance-related strategic and counterintelligence 
TFI - 5 

analysis, as well as expand OIA’s reporting program. Support to four key programmatic areas 

include:

• Strategic Economic and Financial Analysis – This funding would allow OIA to hire seasoned 

experts to enhance our strategic macroeconomic and sectoral intelligence analysis in support 

of the Department’s national security mission. 

• Counterintelligence (CI) Threat Finance – This funding would allow OIA to expand its 

analysis of how foreign intelligence services pay to target and recruit U.S. government 

personnel. As proven in recent espionage cases, foreign intelligence entities’ tactics, 

techniques, and procedures have evolved greatly in the way they seek to target and recruit 

U.S. government personnel. 

• Enhance the Treasury Reporting Program – This funding would allow OIA to expand 

intelligence reporting to the intelligence, law enforcement, and policy communities as 

applicable, based on Treasury policymaker engagements and whether data sets are proprietary 

or shareable. 

• Program Management – This funding would support the enterprise management functions 

required to implement this investment. 

Upgrade Treasury’s Secure Space and Network Infrastructure +$2,281,000 / +0 FTE

The Department requests funding to update our secure space infrastructure, including the 

physical access control system for the Main Treasury Complex, the Treasury Financial 

Intelligence Network (TFIN) servers, and other hardware that will be at end of life. The current 

access control system is not adequately protected due to antiquated infrastructure resulting in a 

system that will be non-compliant with security standards. In addition, TFIN servers do not 

have sufficient redundancy and are at risk of extended outages during which users are unable to 

perform sensitive work. These funds will make the network more resilient by establishing 

redundant servers and hybrid cloud environments capable of maintaining wide-scale operations 

during the occasional server outages. 

Emerging Sanctions Programs +$3,186,000 / +13 FTE 

The Office of Foreign Assets Control’s (OFAC) sanctions programs are seeing an increase in 

work needed to maintain existing lines of effort and expand to address new threats. OFAC 

requests 13 FTEs to manage an increase in enforcement equities associated with greater 

connectivity between U.S. persons and the sanctions targets; handling increased private sector 

engagement; increasing investigations into complex targeting actions; and increasing policy, 

regulatory affairs, and licensing actions. 

Develop Treasury’s Secure Communications and Continuity Program +$672,000 / +2 FTE

The Department requests funding for Treasury’s Secure Communications Program to support 

Treasury’s executive-level communications support program, ensure compliance to various 

secure communication directives, and maintain continuity readiness. 

Kleptocracy Asset Recovery Rewards Pilot Program – Payments for Rewards +$1,650,000 / +0 

FTE 

The Fiscal Year 2021 National Defense Authorization Act (NDAA) directs the Treasury 

Department to create a Kleptocracy Asset Recovery Rewards Pilot Program to aid in identifying 

stolen assets acquired through foreign corruption that fall under U.S. jurisdiction, with the goal 
TFI - 6 

of seizing those assets. The program authorizes payments to informants who provide 

information that leads to and results in restraining or seizure of assets, forfeiture of assets, or 

repatriation of assets. This request provides the necessary funding for potential rewards 

payments to informants. Per the NDAA, the Secretary of the Treasury is responsible for 

administering the program, in consultation with the Secretary of State, the Attorney General, and 

the heads of other such agencies as the Secretary may find appropriate. The NDAA also allows 

the Secretary to delegate ultimate approval of any rewards to an Under Secretary, in this case the 

Under Secretary for Terrorism and Financial Intelligence. TFI’s Treasury Executive Office of 

Asset Forfeiture (TEOAF) will assist in the financial management side of the program and the 

Office of Terrorist Financing and Financial Crimes (TFFC) will provide policy and operational 

guidance and support. 

Terrorist Financing and Financial Crimes Operations / Travel +$1,787,000 / +2 FTE

Funding is required for TFFC operations, to include operational support of the Kleptocracy Asset 

Recovery Rewards Pilot Program. This request also includes $717,000 for program office travel 

costs. Almost all of TFFC’s travel is international and involves TFFC representing the U.S. 

government in various forums and high-visibility conferences. In particular, travel associated 

with the Financial Action Task Force (FATF) and FATF-Style Regional Bodies is critical as 

TFFC works closely with finance ministries and other international partners to identify and close 

vulnerabilities within the international financial system that make it susceptible to terrorist 

financing and other illicit financial activity. Additionally, TFFC attends meetings related to U.S. 

government Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) 

standards and practices to influence how our international partners address illicit finance and 

money laundering. 

Counter Cyber-Enabled Threats +$2,724,000 / +0 FTE 

Recent cyber espionage and attack events, including the SolarWinds supply chain compromise 

and targeting of U.S. critical infrastructure, continue to demonstrate the ever-evolving threats 

from state and non–state malicious cyber actors. The Department requests additional resources 

to defend against increasingly sophisticated malicious cyber campaigns that target the sensitive 

information stored on Treasury systems and its network’s infrastructure. This will ensure that 

TFIN applications, and the data they house, are protected from unauthorized access while 

reliably available to authorized personnel executing Treasury’s authorities by creating more 

sophisticated and centralized monitoring of the network. Specifically, it will improve Treasury’s 

security posture by preventing, detecting, and responding to cybersecurity incidents on TFIN. It 

will also enable OIA to comply with the new National Security Memorandum 8 (NSM-8) on 

“Improving the Cybersecurity of National Security, Department of Defense, and Intelligence 

Community Systems” where national security systems have the same or preferably better 

security mechanisms in place as federal information systems. 
TFI - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 

FY 2022 

CR FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 69,293 77,939 90,553 

11.3 - Other than full-time permanent 334 346 413 

11.5 - Other personnel compensation 2,530 2,661 3,082 

11.9 - Personnel Compensation (Total) 72,157 80,946 94,048 

12.0 - Personnel benefits 24,626 27,386 31,804 

Total Personnel and Compensation Benefits $96,783 $108,332 $125,852 

21.0 - Travel and transportation of persons 484 1,068 1,905 

22.0 - Transportation of things 136 139 153 

23.2 - Rental payments to others 69 70 76 

23.3 - Communications, utilities, and miscellaneous charges 12 12 14 

24.0 - Printing and reproduction 3 3 3 

25.1 - Advisory and assistance services 13,065 11,733 13,312 

25.2 - Other services from non-Federal sources 4,365 4,407 4,755 

25.3 - Other goods and services from Federal sources 45,444 44,224 54,465 

25.7 - Operation and maintenance of equipment 4,692 3,622 7,780 

26.0 - Supplies and materials 3,624 3,733 4,106 

31.0 - Equipment 2,625 2,676 4,884 

32.0 - Land and structures 9,617 5,477 3,600 

42.0 - Insurance claims and indemnities 4 4 4 

91.0 - Unvouchered 0 0 1,650 

Total Non-Personnel $84,140 $77,168 $96,707 

Total Obligations $180,923 $185,500 $222,559 

 

Full-time Equivalents (FTE) 559 602 665 

Note: Amounts reflect obligations of annually appropriated resources, carryover balances, and reimbursables. 
TFI - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of 

Changes 

DEPARTMENT OF THE TREASURY 

OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE 

Federal Funds 

SALARIES AND EXPENSES 

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, human rights abusers, 

money launderers, drug kingpins, and other national security 

threats, $212,059,000, of which not less than $3,000,000 shall be 

available for addressing human rights violations and corruption, 

including activities authorized by the Global Magnitsky Human 

Rights Accountability Act (22 U.S.C. 2656 note): Provided, That 

of the amounts appropriated under this heading, up to 

$12,000,000 shall remain available until September 30, 2024.

Note.--A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution.

 

The FY 2023 budget 

request includes 

language for an 

additional $2 million in 

multi-year funding 

authority to support the 

legislatively-directed 

Kleptocracy Asset 

Recovery Rewards Pilot 

Program. 

E – Legislative Proposals 

The Office of Terrorism and Financial Intelligence has no legislative proposals. 
TFI - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, TFI is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

TFI supports, and in some cases leads, the following strategic goals and objectives: 

 Goal 2 – Enhance National Security 

o Objective 2.1 – Cyber Resiliency of Financial Systems and Institutions. Harden assets 

and systems of Treasury and the broader financial system to promote financial system 

resiliency. 

o Objective 2.2 – Economic Measures to Advance National Security. Enhance and protect 

national security through the application of targeted financial measures and review of 

certain foreign investments. 

o Objective 2.3 – Modernize Sanctions Regime. Modernize the development, 

implementation, enforcement, and maintenance of U.S. sanctions to ensure that sanctions 

remain a streamlined and effective foreign policy and national security tool. 

o Objective 2.4 – Transparency in the Financial System. Increase transparency in the 

domestic and international financial system. 

 Goal 3 – Protect Financial Stability and Resiliency 

o Objective 3.1 – Financial System Vulnerabilities. Identify and address current and 

emerging vulnerabilities to the stability of the U.S. and global financial systems to 

support more sustainable and economic growth. 

o Objective 3.3 – Financial Innovation. Encourage responsible financial sector innovation. 

 Goal 4 – Combat Climate Change 

o Objective 4.3 – Climate-Related Financial Risk. Identify and mitigate key sources of 

climate-related financial risks to macroeconomy, financial system, investors, 

governments, including federal and subnational exposures, and households, 

understanding that risks may have disparate impacts on disadvantaged communities. 
TFI - 10 

B – Budget and Performance/Workforce Indicators by Budget Activity 

2.1.1 – Terrorism and Financial Intelligence Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $123,000 $141,778 $159,000 $169,712 $175,000 $175,000 $212,059 

Reimbursable $6,491 $8,626 $7,756 $8,543 $8,280 $10,500 $10,500 

Budget Activity Total $129,491 $150,404 $166,756 $178,255 $183,280 $185,500 $222,559 

Full-time Equivalents (FTE) 428 444 480 516 559 602 665 

Note: The FY 2017 - FY 2021 appropriated and other resources level represents the approved operating plan. 

Terrorism and Financial Intelligence Budget and Performance 

($212,059,000 from direct appropriations, $10,500,000 from reimbursable resources): 

Sanctions 

In FY 2021, Treasury leveraged its tools and authorities to combat malicious actors, strengthened 

the AML/CFT regime, began reviewing the authorities and processes surrounding financial 

sanctions to address emerging challenges, and strengthened our cybersecurity apparatus. Since 

the beginning of FY 2021, Treasury established eight new or modified sanctions programs with 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

Number of new or modified 

sanctions programs modified by EO 

or Congressional mandate during 

the fiscal year

N/A N/A N/A 7 8 I I I

Regulatory documents published in 

the Federal Register within four 

months of publication of an 

Executive order or Congressional 

mandate during the fiscal year

N/A N/A N/A 67% 25% 75% 75% 75%

Designations and identifications 

released on time to the public 

without errors

N/A N/A N/A 97% 98% 90% 90% 90%

Conduct outreach events for the 

other US government agencies, the 

public, the business sector, and 

foreign government per calendar 

year

N/A N/A N/A 0 26 60 60 60

Participation in FATF international 

mutual evaluations and follow up 

reports

N/A N/A N/A 32 32 I I I

Number of roundtables with private 

sector on AML/CFT threats, 

vulnerabilities, and risk

N/A N/A N/A 13 13 I I I

# of overseas/domestic 

engagements with foreign officials 

by TFFC officials

N/A N/A N/A > 690 500+ I I I

Respond to de-confliction requests 

received from law enforcement 

within 7 days*

N/A N/A N/A 88% 97% 91% 91% 91%

# of security clearances processed N/A N/A N/A 1131 450 B B B

Number of analytic products 

published (includes number of IIRs 

published, number of finished 

intelligence pieces published)

N/A N/A N/A 446 IIRs/297 FI 317/IIRs/321 FI I I I

Percent customer satisfaction with 

OIA products N/A N/A N/A

Customer 

Satisfaction 

Surveys not 

conducted in 

FY 2020 due to 

the COVID-19 

pandemic.

70% 74% 74% 74%

*See Section C – Changes in Performance Measures

Performance Measure

Key: I – Indicator; B - Baseline
TFI - 11 

944 designations carried out—an approximately 38% increase from the previous fiscal year and 

a 933% increase since 2000. 

On China, TFI realigned analytic resources to anticipate and analyze more thoroughly the 

security threats China poses. Over this period, Treasury took actions against several firms 

related to the Chinese military industrial complex. This includes actions against government 

officials and other perpetrators of human rights abuses and technological firms that support the 

tracking of ethnic minorities. Treasury also issued a joint advisory in conjunction with the 

Departments of State, Commerce, and Homeland Security to highlight growing risks associated 

with actions undertaken by the Government of the People’s Republic of China and the 

Government of the Hong Kong Special Administrative Region (SAR) that could adversely 

impact U.S. companies that operate in the Hong Kong SAR of the People’s Republic of China. 

Treasury also targeted a variety of different Iranian individuals and entities, including charities 

controlled by Iran’s Supreme Leader, an oil smuggling network that helps fund Iran’s 

Revolutionary Guard Corps–Quds Force (IRGC-QF) and the Houthis in Yemen, individuals who 

attempted cyber-enabled intrusions for the purpose of sowing discord within the U.S. electoral 

process, and companies and individuals that provided critical support to the Unmanned Aerial 

Vehicle (UAV) programs of Iran’s RGC and its expeditionary unit, the IRGC-QF. 

In FY 2021, Treasury took multiple actions under a new Executive Order targeting aggressive 

and harmful activities by the Government of the Russian Federation. These include actions 

taken against some of Russia’s most economically consequential institutions, including the 

country’s central bank, finance ministry, and sovereign wealth fund. Treasury also took action 

against an array of individuals and entities implicated in Russia’s ongoing actions against 

Ukraine, including its prior annexation of Crimea, foreign election interference, technology 

companies implicated in the SolarWinds cyberattack, the poisoning of Aleksey Navalny, and 

chemical weapons program. 

On Burma, Treasury implemented a new sanctions regime in response to the Burmese military’s 

coup against the democratically elected civilian government of Burma. In coordination with the 

issuance of a new Executive Order 14014, Blocking Property with Respect to the Situation in 

Burma, Treasury designated approximately ten individuals and three entities connected to the 

military apparatus responsible for the coup. 
TFI - 12 

As part of a USG commitment to democracy, Treasury has also taken a number of actions aimed 

at promoting accountability for those who undermine trust in democratic institutions. This 

included designating 15 actors across Iran, Syria, and Uganda in connection with serious human 

rights abuse and repressive acts targeting innocent civilians, political opponents, and peaceful 

protestors. Treasury also issued three rounds of sanctions, including against the Cuban Ministry 

of Interior Officials and Military Unit, in connection with actions to suppress peaceful, prodemocratic protests in Cuba, and against Nicaraguan officials for supporting Ortega’s efforts to 

undermine democracy, human rights, and the economy. 

Following the Taliban’s reemergence in Afghanistan, Treasury froze approximately $9 billion of 

Afghan government reserves held in U.S. bank accounts. Additionally, Treasury issued general 

licenses authorizing non-commercial personal remittances to the people of Afghanistan. This 

followed general licenses authorizing the continued flow of humanitarian assistance to the people 

of Afghanistan and other activities that support basic human needs. Treasury also designated the 

key financial facilitator for the Islamic State’s Afghanistan Branch. 

Additionally, as part of the USG’s broader counter-ransomware strategy, Treasury took a set of 

actions focused on disrupting criminal networks and virtual currency exchanges responsible for 

laundering ransoms, encouraging improved cyber security across the private sector, and 

increasing incident and ransomware payment reporting to U.S. government agencies, including 

both Treasury and law enforcement. 

Finally, Treasury took action against the Government of the Democratic People’s Republic of 

Korea (DPRK) and the Workers’ Party of Korea for the supply of unlawful forced labor to 

overseas markets used to generate income in contravention of United Nations sanctions. 

Treasury also targeted a Venezuelan oil sector sanctions evasion network, narco drug kingpin 

networks, and took joint action with Gulf nation partners against ISIS, Hizballah, and Iran’s 

IRGC as part of the Terrorist Financing Targeting Center (TFTC). 

Sanctions Review 

In addition to our targeted actions, Treasury also began reviewing the authorities and processes 

surrounding financial sanctions to address emerging challenges. This resulted in a 

comprehensive sanctions review that provided key recommendations designed to promote a 

warranted, strategic, and judicious use of sanctions. The review found that while sanctions 

remain an essential and effective policy tool, they also face new challenges, including rising risks 

from cybercriminals, new payments systems, and the growing use of digital assets. The review 

also identified challenges in mitigating the impact of sanctions on the flow of legitimate 

humanitarian aid to those in need. Treasury will also modernize and strengthen internal 

Treasury, U.S. government, and international coordination and engagement on sanctions to 

enhance effectiveness. 

Financial Transparency 

Treasury leads the U.S. delegation to the Financial Action Task Force (FATF) and supports 

efforts to advance core work on virtual assets, beneficial ownership transparency, and illicit 

finance risks. The FATF approved for publication an updated version of its Guidance on a Risk-
TFI - 13 

Based Approach to Virtual Assets and Virtual Asset Service Providers proposed revisions to the 

FATF standard regarding beneficial ownership transparency for legal persons to improve the 

quality of beneficial ownership information available to law enforcement and other authorities in 

a timely manner, facilitate international cooperation, and improve transparency around public 

procurement to combat corruption. Under TFI direction, FinCEN also released a notice of 

proposed rulemaking requiring certain companies to report beneficial ownership data to Treasury 

with a view to preventing bad actors from concealing illicit funds behind anonymous shell 

companies. 

Strengthening Cybersecurity 

In addition to the variety of other cyber-related actions, Treasury partnered with both the private 

sector and USG partners to ensure that the domestic and global financial system is protected 

from abuse by malicious cyber actors. To this end, Treasury worked closely with representatives 

from financial institutions and federal financial regulators on cyber threats to the financial sector 

and collaborated with financial institution partners to disseminate firm-identified cyber threat 

information to USG partners. In addition, TFI assisted efforts in refining collection efforts 

specific to the threats against the financial services sector and helped decrease gaps in 

identification of victims of malicious cyber activity. 

 

C – Changes in Performance Measures 

Please note the following change for the measure concerning program’s response time to deconfliction requests received from law enforcement: 

Performance Measure or Indicator Proposed Change and Justification 

Respond to de-confliction requests received 

from law enforcement. 

Change – This performance measure has been 

changed to: “Respond to de-confliction requests 

received from law enforcement within 7 days.” 

A meaningful way of quantifying results for this 

performance measure is to record the percentage 

of de-confliction requests that TFI responds to 

within 7 days. 

Additionally, with the publication of Treasury’s Strategic Plan for FY 2022 – 2026, TFI will 

work this year to baseline performance against the new strategic objectives. This could result in 

changes to performance measures in the FY 2024 budget. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Committee on Foreign 

Investment in the United States 

Activities 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
CFIUS - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2.1 – CFIUS Fund Budget Adjustments Table ........................................................................ 4

1.2.2 – Departmental Offices Budget Adjustments Table .......................................................... 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3– Object Classification (Schedule O) Obligations ................................................................. 6

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

E – Legislative Proposals ............................................................................................................ 7

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

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Treasury CFIUS Activities Resources and Measures ..................................................... 8

2.1.2 – Other Member CFIUS Activities Resources and Measures ........................................... 9

Committee on Foreign Investment in the United States Budget and Performance .................... 9

C – Changes in Performance Measures ...................................................................................... 9

Section III – Additional Information .......................................................................................... 9

A – Summary of Capital Investments ......................................................................................... 9
CFIUS - 3 

Section I – Budget Request 

A – Mission Statement 

Review certain transactions involving foreign investment in the United States and certain real 

estate transactions by foreign persons to determine the effect of such transactions on the national 

security of the United States and to address any identified national security risks. 

B – Summary of the Request 

The Committee on Foreign Investment in the United States (CFIUS) was established in 1975 

under Executive Order 11858 to monitor the impact of foreign investment in the United States, 

and to coordinate and implement federal policy on such investment. CFIUS is composed of nine 

voting member agencies. The Committee’s unique design leverages the skills, subject matter 

expertise, and integrated analysis of Committee members and other relevant agencies. CFIUS 

voting members include: 

 Department of the Treasury 

 Department of Commerce 

 Department of Defense 

 Department of Energy 

 Department of Homeland Security 

 Department of Justice 

 Department of State 

 Office of Science Technology and Policy 

 Office of the United States Trade Representative 

As both Chair and member of CFIUS, Treasury is responsible for leading CFIUS in establishing 

policies, implementing processes and functions, and managing its daily operations. Treasury 

participates in every aspect of CFIUS, including reviews and investigations, policy and 

international relations, mitigation monitoring and enforcement, non-notified transaction analysis, 

legal support, and national security threat assessments. The Office of International Affairs (IA) 

is responsible for case management and coordination and representing the Committee to parties 

that file notices or declarations. The Office of General Counsel (OGC) provides legal support to 

IA and is responsible for certain analyses conducted on each notice filed with CFIUS. 

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) strengthened 

CFIUS to better address national security concerns arising from some types of investments and 

transactions that were previously outside its jurisdiction. Additionally, FIRRMA modernized 

Committee processes to better enable timely and effective reviews of covered transactions. 

FIRRMA also established the CFIUS Fund (the Fund), to be administered by the chairperson 

(the Secretary of the Treasury), to accept appropriated funds for these expanded responsibilities 

and functions, and to collect filing fees. 

Case volume has increased significantly in recent years, from 172 notices formally reviewed in 

calendar year (CY) 2016 to 303 cases (comprised of 187 notices and 116 declarations) formally 

reviewed in CY 2020. The expanded jurisdiction authorized by FIRRMA took effect February 

13, 2020. CY 2021 data is not yet publicly available, but case totals exceeded CY 2020. The 

FY 2023 Budget requests resources necessary to handle the increased case workload from 
CFIUS - 4 

FY 2022 (including significantly expanded activity with respect to non-notified transactions), 

mitigation monitoring, and international engagement. 

The Administration requests $20 million for the Fund in upfront appropriations that will be offset 

by up to $20 million in offsetting collections from filing fees, of which $15 million is proposed 

for transfer to Treasury Departmental Offices to fund capital investments and staff to support 

Committee activities. The remaining $5 million will be available for transfers to other CFIUS 

agencies to facilitate, for example, interagency connectivity with Treasury’s information 

technology (IT) and case management systems, and to address other emerging needs. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury CFIUS Activities 0 $15,000 0 $15,000 0 $15,000 NA 0.0% 

Other Member CFIUS Activities 0 $5,000 0 $5,000 0 $5,000 NA 0.0% 

New Appropriated Resources – 

Member Agencies FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury Departmental Offices 

S&E 0 $22,661 0 $22,494 0 $25,611 NA 13.9% 

Subtotal New Appropriated 

Resources 0 $42,661 0 $42,494 0 $45,611 NA 7.3% 

Other Resources 

Anticipated User Fees - CFIUS 

Fund 0 ($20,000) 0 ($20,000) 0 ($20,000) NA 0.0% 

Subtotal Other Resources 0 ($20,000) 0 ($20,000) 0 ($20,000) NA 0.0% 

Total Budgetary Resources 0 22,661 0 $22,494 0 $25,611 NA 13.9% 

FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1.2.1 – CFIUS Fund Budget Adjustments Table 

The total request for Treasury CFIUS activities is $40.963 million, with requested funding 

increases shown in the two Budget Adjustment tables below. 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 0 $20,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $0 

Non-Recurring Costs 0 $0 

Subtotal Changes to Base 0 $0 

FY 2023 Current Services 0 $20,000 

Program Changes: 

Anticipated User Fees - CFIUS Fund 0 ($20,000) 

FY 2023 President's Budget Request 0 $0 
CFIUS - 5 

1.2.2 – Departmental Offices Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 110 $22,494 

Transfer in from CFIUS Fund $15,000 

FY 2022 DO SE CFIUS Base 110 $37,494 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $923 

Pay Annualization (2.7% average pay raise) 0 $143 

Pay Raise (4.6% average pay raise) 0 $743 

Non-Pay 0 $37 

Non-Recurring Costs: 0 ($1,674) 

Non-recur to CFIUS investments 0 ($1,674) 

Subtotal Changes to Base 0 ($751) 

FY 2023 Current Services 110 $36,743 

Program Changes: 

Reinvestments: 22 $3,868 

Staffing to support CFIUS caseload growth 22 $3,868 

Subtotal Program Changes 22 $3,868 

FY 2023 President's Budget Request 132 $40,611 

*Note: CFIUS Fund transfers to non-Treasury agencies of $5 million are not included in this table. 

**Note: FTEs in the above include 1 FTE funded through reimbursable resources.

C – Budget Increases and Decreases Description 

Anticipated User Fees – CFIUS Fund -$20,000,000 / -0 FTE 

Treasury and IA anticipate collection of filing fees that will be credited to the Fund as offsetting 

collections. 

Transfer in from CFIUS Fund +$15,000,000 / +0 FTE 

The CFIUS Fund anticipates transferring $15.0 million dollars to the DO Salaries and Expenses 

account to provide for Treasury DO CFIUS activities. 

Maintaining Current Levels (MCLs) ...........................................................+$923,000 / +0 FTE

Pay Annualization (2.7%) +$143,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$743,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$37,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Non-Recurring Costs ...................................................................................-$1,674,000 / -0 FTE 

Non-recur to CFIUS Investments -$1,674,000 / -0 FTE 

Non-recurring costs for CFIUS associated with the baseline completion of CFIUS’s case 

management system and configuration of secure spaces for new CFIUS staff. 
CFIUS - 6 

Reinvestments ...........................................................................................+$3,868,000 / +22 FTE 

Staffing to Support CFIUS Caseload Growth +$3,868,000 / +22 FTE 

Increase in CFIUS staffing to continue in light of anticipated program growth. 

1.3– Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 0 0 0 

11.9 - Personnel Compensation (Total) 0 0 0 

12.0 - Personnel benefits 0 0 0 

Total Personnel and Compensation Benefits $0 $0 $0 

94.0 - Financial Transfers 16,113 20,000 20,000 

Total Non-Personnel $16,113 $20,000 $20,000 

Total Obligations $16,113 $20,000 $20,000 

 

Full-time Equivalents (FTE) 0 0 0 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

FTE levels are reflected in Departmental Offices Salaries and Expenses 

 
CFIUS - 7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED 

STATES FUND 

Federal Funds 

(Including transfer of funds) 

For necessary expenses of the Committee on Foreign Investment in 

the United States, $20,000,000, to remain available until 

expended: Provided, That the chairperson of the Committee may 

transfer such amounts to any department or agency represented on 

the Committee (including the Department of the Treasury) subject 

to advance notification to the Committees on Appropriations of the 

House of Representatives and the Senate: Provided further, That 

amounts so transferred shall remain available until expended for 

expenses of implementing section 721 of the Defense Production 

Act of 1950, as amended (50 U.S.C. 4565), and shall be available 

in addition to any other funds available to any department or 

agency: Provided further, That fees authorized by section 721(p) 

of such Act shall be credited to this appropriation as offsetting 

collections: Provided further, That the total amount appropriated 

under this heading from the general fund shall be reduced as such 

offsetting collections are received during fiscal year 2023, so as to 

result in a total appropriation from the general fund estimated at 

not more than $0. 

Note.--A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

CFIUS has no legislative proposals. 
CFIUS - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

CFIUS supports the following strategic objectives for Strategic Goal 2, to Enhance National 

Security: 

 Objective 2.1: Cyber Resiliency of Financial Systems and Institutions. Harden assets and 

systems of Treasury and the broader financial system to promote financial system resiliency 

 Objective 2.2: Economic Measures to Advance National Security. Enhance and protect 

national security through the application of targeted financial measures and review of certain 

foreign investments. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change:

 Objective 4.4: Sustainable Treasury Operations. Improve Treasury’s overall environmental 

and energy sustainability and invest in Bureaus’ adaptation and resiliency efforts to address 

climate change impacts on operations and services. 

This office supports the following strategic objectives for Strategic Goal 5, to Modernize 

Treasury Operations:

 Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce. Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2: Future Work Routines. Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.3: Better Use of Data. Increase timely access to and use of quality data and other 

types of evidence to inform decision-making. 

 Objective 5.4: Customer Experience Practices. Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

B – Budget and Performance by Budget Activity 

2.1.1 – Treasury CFIUS Activities Resources and Measures 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Timely Review of CFIUS 

cases (%) 100 100 100 100 100 100 100 100 

Key: DISC - Discontinued; B - Baseline 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Annualized CR Request

Treasury CFIUS Activities 0 0 0 $15,000 $15,000 $15,000 $15,000

Budget Activity Total 0 0 0 $15,000 $15,000 $15,000 $15,000

00000 00

 Resource Level

Full-time Equivalents (FTE)
CFIUS - 9 

2.1.2 – Other Member CFIUS Activities Resources and Measures 

Committee on Foreign Investment in the United States Budget and Performance 

($20,000,000 from direct appropriations): 

In FY 2021, Treasury CFIUS continued its growth to support requirements laid out in the 

Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). This includes 

continued investment in infrastructure necessary to support an increase in CFIUS’s 

responsibilities, as well as additional staff to manage the workload growth. FY 2021 was the first 

full year that the CFIUS Fund was entirely fee funded. 

Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines for 

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2021. IA’s 

target for this measure in CY 2022 and CY 2023 is 100 percent. 

C – Changes in Performance Measures 

With the publication of Treasury’s Strategic Plan for FY 2022 – 2026, CFIUS will work this year 

to baseline performance against the new strategic objectives. This could result in changes to 

performance measures in the FY 2024 budget. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investment resources, including major information technology and nontechnology investments related to CFIUS can be found with other DO IT investments at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Annualized CR Request

Other CFIUS Activities 0 0 0 $5,000 $1,113 $5,000 $5,000

Budget Activity Total 0 0 0 $5,000 $1,113 $5,000 $5,000

00000 00

 Resource Level

Full-time Equivalents (FTE)


Department of the Treasury 

Treasury Coronavirus 

Relief, Response, Aid, and 

Recovery Programs 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
COVID - 2 

Table of Contents 

Section I – Vision, Purpose and Context ..................................................................................... 3

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

B – Enacted Legislation ............................................................................................................ 4 

C – Strategic Approach ............................................................................................................. 5 

Section II – Program Summary ................................................................................................... 7

A – Performance ....................................................................................................................... 7 

B – Assistance for Taxpayers ................................................................................................... 7 

1.1 - Economic Impact Payments ....................................................................................... 7 

1.2 - Employer Refundable Credits .................................................................................... 8 

1.3 - Child and Dependent Care Tax Credits, Advance Payments of Child Tax Credit, 

Child Tax Credit, and Earned Income Tax Credit Changes ............................................. 10 

C – Assistance to American Industry & Small Businesses ..................................................... 11 

1.1 - Transportation Services ............................................................................................ 11 

1.2 - Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for 

Aviation Workers .............................................................................................................. 11 

1.3 - Economic Stabilization Program .............................................................................. 12 

D – Assistance for State, Local, U.S. Territory & Tribal Governments ................................. 13 

1.1 - Coronavirus Relief Fund .......................................................................................... 13 

1.2 - Homeowner Assistance Fund ................................................................................... 13 

1.3 - Emergency Rental Assistance .................................................................................. 14 

E – Access to Capital for Community Development and Small Businesses .......................... 14 

1.1 - Community Development Financial Institutions Fund, Emergency Support ........... 14 

1.2 - Emergency Capital Investment Program .................................................................. 15 

1.3 - State Small Business Credit Initiative ...................................................................... 15 

F – COVID Program Administration and Oversight .............................................................. 16 

1.1 - Bureau of the Fiscal Service ..................................................................................... 16 

1.2 - Internal Revenue Service COVID Response (Admin.) ............................................ 17 

1.3 - Departmental Offices, Office of Recovery Programs .............................................. 17 

1.4 - Special Inspector General for Pandemic Recovery .................................................. 19 

1.5 - Office of the Inspector General ................................................................................ 19 

1.6 - Treasury Inspector General for Tax Administration ................................................ 20 

Section III –Appropriations Language ..................................................................................... 20

A – Treasury Administrative Provisions ................................................................................. 20 

1.1 - Administrative Funding Transfer Authority ............................................................. 20
COVID - 3 

Section I – Vision, Purpose and Context 

A – Mission Statement

Continue to administer multiple relief and recovery programs authorized through the Families 

First Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security Act 

(CARES Act), Consolidated Appropriations Act, 2021, (CAA, 2021) and the American Rescue 

Plan Act (ARP). The responsibilities that have been assigned to the Treasury Department are 

central to the Administration’s overall relief and recovery agenda. They offer unique 

opportunities to secure a robust, equitable recovery through tools including state and local aid, 

rental assistance to struggling tenants, help for homeowners facing foreclosure, and the provision 

of capital to communities that have traditionally been left behind. 

In FY 2023, Treasury projects that the State and Local Fiscal Recovery Fund and the Emergency 

Rental Assistance Program will have at least a $35M administrative funding shortfall. To avoid 

shutting down these essential programs that provide direct relief to the American people, 

Treasury requests Administrative Funding Transfer Authority to ensure resources are effectively 

and efficiently utilized for a centralized and consistent approach to administering and managing 

the various coronavirus recovery and stabilization programs implemented. This proposal would 

not provide new funding (and thus would not have a budgetary “score”) but would provide the 

flexibility to pay for certain programs out of previously appropriated administrative amounts. 

Treasury Amounts in the U.S. Government's COVID-19 Response1

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations5

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

FFCRA 15,000 14,988 0 0 0 0 0 

CARES Act 957,872,800 485,137,300 0 1,298,750 0 17,911 14,908 

CAA, 20212 0 0 (281,848,207) 185,164,793 0 14,750,091 1,763,183 

ARP 0 0 827,883,900 671,822,609 0 154,043,143 1,533,980 

IIJA3 0 0 0 0 (4,566,100) 0 0 

Total4 $957,887,800 $485,152,288 $546,035,693 $858,286,152 ($4,566,100) $168,811,145 $3,312,071 

 FTE 11 88 285 242 1

Enacted budget authority includes varying periods of availability depending on the program legislation; obligations are based on FY 2023 

President’s Budget estimates. 

2

Section 1003 of the CAA, 2021, rescinded unobligated balances from the CARES Act 2020 appropriation from the Economic Stabilization 

Program; the ultimate effect of Sec. 1003 rescinded $478.8B from this program. 3

The Infrastructure Investment and Jobs Act (PL 117-58) Section 90007 rescinded $3B from the CARES Act Section 4120 budget authority 

and $200M from the P.L 116-260 Division N Sec. 411 budget authority in FY 2022 from the Payroll Support Program, Air Carrier Worker 

Support & Pandemic Relief for Aviation Workers and $1.4B from the CARES Act Section 4027 budget authority in FY 2022 from the 

Economic Stabilization Program. 

4

Obligations exclude Recovery Rebate Credits, Employer Refundable Credits, Child and Dependent Care Tax Credits, Advance Payments of 

Child Tax Credits, Child Tax Credits, and any effect of Earned Income Tax Credit Changes. 

5

As detailed in Section 123 of the proposed Treasury Administrative Provisions, Treasury is requesting administrative flexibility between the 

following COVID related programs; Transportation Services, Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for 

Aviation Workers, Economic Stabilization Program, State and Local Fiscal Recovery Fund, Homeowner Assistance Fund and Emergency

Rental Assistance. The FY 2023 obligations reflect the effect of this proposal. 
COVID - 4 

B – Enacted Legislation 

The coronavirus pandemic has had unprecedented, widespread impacts on the economy and 

caused significant disruptions to industries and families across America. In response to the onset 

of the COVID-19 pandemic in FY 2020, Congress passed the Families First Coronavirus 

Response Act (FFCRA) (P.L. 116-127) and the Coronavirus Aid, Relief, and Economic Security 

Act (CARES Act) (P.L. 116-136). As the pandemic continued into FY 2021, Congress provided 

additional relief in the Consolidated Appropriations Act, 2021 (CAA, 2021) (P.L. 116-260), and 

passed the American Rescue Plan Act (ARP) (P.L. 117-2). The legislative intent and focus of the 

Department of the Treasury (Treasury) is to provide fast, effective and efficient direct economic 

assistance to American workers, families, small businesses, and industries. 

The FFCRA was enacted on March 18, 2020. The FFCRA, amended by the COVID-related Tax 

Relief Act of 2020, and the ARP, provides small and midsize employers refundable tax credits 

that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages 

to their employees for leave related to COVID-19. The FFCRA gives businesses with fewer than 

500 employees funds to provide employees with paid sick and family and medical leave for 

reasons related to COVID-19, either for the employee's own health needs or to care for family 

members. 

 

The CARES Act, enacted on March 27, 2020, created a variety of programs to address the 

COVID-19 pandemic. The CAA, 2021, enacted on December 27, 2020, created several new 

programs and maintained many of the CARES Act programs by adding new phases, new 

allocations, and new guidance. 

The ARP continues many of the programs started by the CARES Act and CAA, 2021. The ARP 

also created a variety of new programs to address continuing pandemic-related crises, and fund 

recovery efforts as the United States begins to emerge from the pandemic. 

In FY 2022, Congress enacted the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58). 

Section 90007 of the IIJA rescinded $4.6 billion in funds from the CARES Act Section 4120 

budget authority and the CAA, 2021 Division N Sec. 411 budget authority. 

Treasury categorizes enacted COVID related programs into four categories: 1) assistance to 

taxpayers, which includes individuals and businesses, 2) assistance to American industry and 

small businesses, 3) assistance for state, local, U.S. territory and Tribal governments, and 4) 

access to capital for community development and small businesses. Treasury also received 

funding for program administration and oversight. 

 
COVID - 5 

Treasury COVID-19 Budget Authority Overview1

Dollars in Thousands 

 

2020 

Enacted 

2020 

Enacted 

2021 

Enacted 

2021 

Enacted 

2021 

Enacted 

 FFCRA CARES Act CAA, 2021 ARP IIJA 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Assistance to Taxpayers2 Economic Impact Payments3 0 275,087,000 141,384,000 407,430,000 0 

 Assistance to Industry & Small Businesses Transportation Services 0 0 1,975,000 0 0 

Payroll Support Program, Air Carrier Worker Support 

& Pandemic Relief for Aviation Workers4 0 31,900,000 16,000,000 14,990,000 (3,200,000) 

Economic Stabilization Program5 0 499,870,000 (478,796,257) 0 (1,366,100) 

 Assistance for State, Local, U.S. Territory & Tribal 

Governments Coronavirus Relief Fund 0 150,000,000 0 362,000,000 0 

Homeowner Assistance Fund 0 0 0 9,918,400 0 

Emergency Rental Assistance 0 0 24,985,000 21,517,000 0 

 Access to Capital for Community Development and 

Small Businesses Community Development Financial Institutions Fund, 

Emergency Support 0 0 3,000,000 0 0 

Emergency Capital Investment Program 0 0 8,747,431 0 0 

State Small Business Credit Initiative (SSBCI) 0 0 0 9,800,000 0 

 COVID Program Administration & Oversight Bureau of the Fiscal Service (Fiscal Service) 0 30,100 48,550 23,200 0 

IRS COVID Response (Admin.) 15,000 750,700 509,000 1,861,700 0 

Departmental Offices, Office of Recovery Programs 0 200,000 292,569 330,000 0 

Office of the Inspector General 0 35,000 6,500 5,600 0 

Treasury Inspector General for Tax Administration 0 0 0 8,000 0 

 $15,000 $957,872,800 ($281,848,207) $827,883,900 ($4,566,100) 1

Budget authority is based on enacted legislation; subsequent legislation extending existing authority increases the initial legislative authority. 

The table displays both mandatory and discretionary funding. Excludes Authority from Recovery Rebates, Employer Refundable Credits, 

Child and Dependent Care Tax Credits, Advance Payments of Child Tax Credits, Child Tax Credits, and any effect of Earned Income Tax 

Credit Changes. 

2

Mandatory funding; amounts will change as funds are needed and obligated; assistance to Taxpayers also includes some support for 

businesses. 

3

Excludes Recovery Rebate Credits associated with all Economic Impact Payments; In FY 2021, Recovery Rebate Budget Authority was

$26,889M, of which, $23,403M was obligated; $3,462M is estimated to be obligated in FY 2022 and $24M in FY 2023. 4

The Infrastructure Investment and Jobs Act (P.L.117-58) Section 90007 rescinded $3B from the CARES Act Section 4120 budget authority 

and $200M from the P.L 116-260 Division N Sec. 411 budget authority in FY 2022. 

5

Section 1003 of the CAA, 2021, rescinded unobligated balances from the CARES Act 2020 appropriation to the Economic Stabilization 

Program; the ultimate effect of Sec. 1003 rescinded $478.8B from this program. The IIJA, Section 90007, rescinded $1.4B from the CARES 

Act Section 4027 budget authority in FY 2022. 

C – Strategic Approach 

In response to enacted legislation, Treasury established the Office of Recovery Programs (ORP), 

managed by the Chief Recovery Officer, to lead the Department’s implementation of various 

COVID-19 related programs. This office is principally focused on efficiently establishing and 

administering Treasury’s programs to support an equitable and swift recovery from the economic 

challenges precipitated by the COVID-19 pandemic. Specifically, ORP contributes to two 

objectives in goal 1 (Equitable Economic Growth and Recovery) of Treasury’s FY 2022-2026 

Strategic Plan. ORP co-leads Objective 1.3, which focuses on promoting equitable financial 

recovery and growth through support and flow of capital to small businesses, households, and 

underserved communities, and contributes to Objective 1.4 by expanding fair and equitable 

access to homeownership and affordable rental opportunities. 
COVID - 6 

The implementation of the recovery programs disbursed through the tax code, including 

Economic Impact Payments, the enhanced Child Tax Credit (CTC), and the CTC advance 

payments, will continue to be led by the Office of Tax Policy, the Internal Revenue Service, and 

the Bureau of Fiscal Service, in coordination with the Office of Recovery Programs. 

ORP is building the office with the capacity to manage current and future recovery programs 

with a high degree of expertise, resiliency, and competence. Many of ORP’s programs include 

long-term responsibilities requiring ongoing and effective change management practices to 

shepherd programs through each stage of the programmatic lifecycle. ORP and programmatic 

leadership are continually learning what is required to successfully implement these recovery 

programs. The matrix structure that ORP is developing is designed to promote knowledge 

sharing and nimbleness along with strong relationship-building with state, local, U.S. territories 

and tribal governments. ORP is investing in enhanced institutional capabilities that will support 

an integrated and reliable technical platform for payments and reporting, a recipient monitoring 

and remediation capacity, and grants management expertise. 
COVID - 7 

Section II – Program Summary 

A – Performance 

COVID related programs support the following objectives in the Treasury FY 2022 – 2026 

Strategic Plan: 

 Objective 1.1 Tax Administration and Policy – direct payments to taxpayers (Economic 

Impact Payments and the Child Tax Credit) 

 Objective 1.3 Economically Resilient Communities – relief to state, local, territorial, and 

Tribal governments (Coronavirus Relief Fund, State and Local Fiscal Recovery Fund); 

access to capital for households and businesses through Community Development Financial 

Institutions (CDFI) support, the Emergency Capital Investment Program, and the State Small 

Business Credit Initiative 

 Objective 1.4 Resilient Housing Market – relief to homeowners and renters through the 

Homeowner Assistance Fund and Emergency Rental Assistance programs 

Within the strategic plan, Treasury identified high-level desired outcomes for each of these 

objectives, as well as measures and indicators of success at the strategy level. Treasury is 

working to develop performance measures for ARP and CDFI programs, which will help the 

agency track progress towards the measures, indicators, and outcomes in the strategic plan. At 

the program level, Treasury is working to define success and identify datasets which, in addition 

to data provided through program reporting, can be used to measure whether programs are 

having the intended outcomes and impact and contributing to the outcomes in the strategic plan. 

Treasury guidance is designed to encourage program participants to consider the statutory 

requirements of the programs while reducing burden and barriers to program access. Recipients 

and grantees are required to provide robust reporting on demographic and geographic 

distribution of funds, community engagement, and outcomes. Treasury will use the data reported 

by program participants and other relevant data to develop a comprehensive set of metrics for 

recovery programs, which will include measures of program outputs and outcomes as well as 

economic indicators to understand broader program outcomes. Additionally, Treasury is working 

to make data publicly available to enable program evaluations. 

B – Assistance for Taxpayers 

The Treasury Department, the Bureau of the Fiscal Service (Fiscal Service), and the Internal 

Revenue Service (IRS) have provided three rounds of fast and direct relief payments during the 

COVID-19 crisis. 

1.1 - Economic Impact Payments 

This account includes the 2020 and 2021 recovery rebate credits, including the advance 

Economic Impact Payments of those credits, enacted in Section 2201(a) of the CARES Act, 

Section 272(a) of the COVID-related Tax Relief Act of 2020, enacted in Subtitle B of Title II of 

Division N of the CAA, 2021, and Section 9601(a) of the ARP. 

 
COVID - 8 

Economic Impact Payments1

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CARES Act 275,087,000 274,654,000 0 433,000 0 0 0 

CAA, 2021 0 0 141,384,000 141,369,000 0 15,000 0 

ARP 0 0 407,430,000 404,303,000 0 3,127,000 0 

Total $275,087,000 $274,654,000 $548,814,000 $546,105,000 $0 $3,142,000 $0 1

Excludes Recovery Rebate Credits associated with all Economic Impact Payments; In FY 2021, Recovery Rebate Budget Authority was

$26,889M, of which, $23,403M was obligated; $3,462M is estimated to be obligated in FY 2022 and $24M in FY 2023. 

 

1.2 - Employer Refundable Credits 

Employee Retention Credit: Section 2301 of the CARES Act created the employee retention 

credit, a refundable tax credit against certain employment taxes equal to 50 percent of the 

qualified wages certain businesses and tax-exempt employers pay to employees (up to $10,000 

per employee) after March 12, 2020, and before January 1, 2021. Eligible employers could get 

immediate access to the credit by reducing employment tax deposits they were otherwise 

required to make and by requesting an advance of the credit. 

Section 206 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted as Division 

EE of the CAA, 2021, amended and made technical changes to section 2301 of the CARES Act 

retroactive to the section 2301's original effective date including permitting an employer that 

received a Paycheck Protection Program (PPP) loan to be eligible to claim an employee retention 

credit under section 2301, provided the wages reported in support of the forgiveness of the PPP 

loan are not the same wages for which the credit is claimed. 

Section 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended the 

employee retention credit to qualified wages paid after December 31, 2020 and before July 1, 

2021; increased the maximum credit amount that may be claimed per employee (making it equal 

to 70 percent of $10,000 of qualified wages paid to an employee per calendar quarter); limited 

eligibility for and amount of the credit advance; and expanded the category of employers that 

may be entitled to claim the credit, among other technical amendments. 

Section 9651 of the ARP enacted section 3134 of the Internal Revenue Code of 1986, which 

extended the availability of the employee retention credit to wages paid after June 30, 2021, and 

before January 1, 2022. Section 3134 generally maintained the structure of the employee 

retention credit as provided under section 2301 of the CARES Act, as amended, with certain 

changes. 

Employers in a U.S. Territory that otherwise qualify for the employee retention credit can claim 

the credit. Payments of wages by employers in U.S. Territories are wages within the meaning of 

section 3121(a) and therefore employers eligible to claim the credit include employers in the 

U.S. Territories that pay qualified wages and otherwise meet the requirements for the credit. 

Section 80604 of the IIJA amended Code section 3134 to provide that the employee retention 
COVID - 9 

credit under section 3134 shall apply only to wages paid after June 30, 2021, and before October 

1, 2021 (or, in the case of wages paid by an eligible employer which is a recovery startup 

business, January 1, 2022). 

Paid Leave Credits: Sections 7001 and 7003 of Division G of the FFCRA created refundable tax 

credits against certain employment taxes for small and midsize employers to reimburse them for 

the cost of providing required paid sick and family leave wages to their employees for leave 

related to COVID-19 as set forth under Division E, the Emergency Paid Sick Leave Act 

(EPSLA) and Division C, the Emergency Family and Medical Leave Expansion Act (Expanded 

FMLA) of the FFCRA. Sections 7002 and 7004 of the FFCRA created similar credits for certain 

self-employed persons in similar COVID-related circumstances. An employer is eligible for 

credits for qualified sick leave wages up to $511 per day and $5,110 in the aggregate (for up to 

10 days of leave) and up to $200 per day and $10,000 in the aggregate (for up to 10 weeks of 

leave) for qualifying COVID-related leave reasons. Eligible employers could get immediate 

access to the credit by reducing employment tax deposits they are otherwise required to make 

and by requesting an advance of the credit. The requirement to provide leave under the EPSLA 

and Expanded FMLA expired on December 31, 2020, but the credits for paid leave that 

otherwise would have satisfied the requirements under the EPSLA and Expanded FMLA were 

later extended through September 30, 2021. 

Sections 286, 287 and 288 of the COVID-related Tax Relief Act of 2020, enacted under Division 

N of the CAA, 2021, extended the credits for periods of leave from January 1, 2021, through 

March 31, 2021, and made certain technical improvements to the FFCRA credit provisions. 

Section 9641 of the ARP enacted sections 3131, 3132, and 3133 of the Code to extend the credits 

through the period from April 1, 2021 through September 30, 2021; expand the category of 

employers eligible for the credit; reset the limitations on the amount of qualified wages that may 

be taken into account for purposes of the credits (and increased the aggregate cap for paid family 

leave wages from $10,000 to $12,000); expand the category of qualifying reasons for paid leave 

wages eligible for the credits (including leave to receive and recover from a COVID-19 vaccine), 

and make other technical amendments. (Sections 9642 and 9643 of the ARP amended and 

extended the equivalent tax credits for certain self-employed individuals for April 1, 2021, 

through September 30, 2021.) 

Employers in a U.S. Territory that otherwise qualify for the paid leave credits can claim the 

credit. Payments of wages by employers in U.S. Territories are wages within the meaning of 

section 3121(a) and therefore employers eligible to claim the credit include employers in the 

U.S. Territories that pay qualified wages and otherwise meet the requirements for the credit. 

COBRA Credit: Section 9501 of the ARP required certain employers to offer free Consolidated 

Omnibus Budget Reconciliation Act (COBRA) coverage to certain qualified individuals for 

periods of coverage from April 1, 2021, through September 30, 2021. The ARP provided tax 

credits to employers to offset the cost of the COBRA coverage. The ARP provision subsidized 

100 percent of COBRA premiums for six months for individuals who lost employment 

involuntarily or had reduced hours. 
COVID - 10 

1.3 - Child and Dependent Care Tax Credits, Advance Payments of Child Tax Credit, Child Tax 

Credit, and Earned Income Tax Credit Changes 

Section 9631(a) of the ARP amended Section 21 of the Internal Revenue Code (Code) to provide 

special rules for the Child and Dependent Care Tax Credit (CDCTC) solely for Tax Year 2021. 

Specifically, the ARP made the CDCTC fully refundable. In addition, the maximum credit rate 

of the CDCTC increased from 35 percent to 50 percent. The amount of expenses that are eligible 

for the CDCTC was increased from $3,000 to $8,000 for one qualifying dependent (from $6,000 

to $16,000 for two or more qualifying dependents). The ARP increased the phase-out threshold 

of the CDCTC from $15,000 of AGI to $125,000. The credit rate is phased down, but not below 

20 percent, by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer's 

adjusted gross income (AGI) exceeds this threshold. The ARP further phased down the credit 

rate of 20 percent by 1 percentage point for each $2,000 (or fraction thereof) by which the 

taxpayer's AGI exceeds $400,000. Section 9631(b) of the ARP amended Section 21 of the Code 

to authorize payments to U.S. territories with mirror code tax systems and to U.S. territories with 

non-mirror code tax systems. 

Section 9632(a) of the ARP amended Section 129(a)(2) of the Code to increase, for Tax Year 

2021 only, the maximum amount of employer-provided dependent care assistance that may be 

excluded from gross income. This increase doubles the generally applicable amounts that is, 

$5,000 (or $2,500 in the case of a married individual filing a separate return) such that an eligible 

employee for Tax Year 2021 can receive an exclusion of $10,500 (or $5,250 in the case of a 

married individual filing a separate return). 

Sections 9611 and 9612 of the ARP amended the Internal Revenue Code (Code) to modify the 

CTC generally for 2021 only. Section 9611 of the ARP amended Section 24 of the Code to make 

the entire amount of the CTC refundable and extended the CTC to cover qualifying children 17 

years old and younger. The legislation also increased the amount of the CTC from $2,000 to 

$3,600 for qualifying children under age 6, and $3,000 for other qualifying children under age 

18. The amount of this increase in the CTC (that is, $1,600 in the case of qualifying children 

under age 6 and $1,000 in the case of other qualifying children under age 18) is reduced by $50 

for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income 

exceeds certain thresholds. These thresholds are (i) $150,000 for joint filers and surviving 

spouses, (ii) $112,500 for heads of household, and (iii) $75,000 in all other cases. In addition, the 

ARP amended the Code to require advance payments of the CTC to be made periodically 

throughout 2021, beginning after July 1, based on the taxpayer's 2020 or 2019 tax returns, in an 

aggregate amount equal to 50 percent of the estimated amount of the taxpayer's refundable CTC. 

Section 9612 of the ARP amended Section 24 of the Code to remove the requirement for bona 

fide residents of Puerto Rico to have three qualifying children to claim the CTC. For 2021 and 

years thereafter, bona fide residents of Puerto Rico need only one qualifying child to claim the 

CTC. In addition, section 9612 of the ARP amended Section 24 of the Code to provide that 

certain residents of American Samoa, the Commonwealth of the Northern Mariana Islands, 

Guam, or the U.S. Virgin Islands, may have been eligible to receive from their territory tax 

agency advance Child Tax Credit payments under the expanded, refundable CTC for 2021. 

Sections 9621 through 9626 of the ARP modified the EITC. For Tax Year 2021 only, the ARP, 

generally, (i) reduced from 25 to 19 the general minimum age to claim the EITC with no 
COVID - 11 

qualifying children (Childless EITC); (ii) eliminated the upper-age limit for the Childless EITC; 

(iii) increased the credit amount and the phaseout percentages for the Childless EITC; and (iv) 

allowed individuals to use their earned income from Tax Year 2019 instead of their earned 

income from Tax Year 2021, if earned income from Tax Year 2021 is less, for purposes of 

calculating the EITC for Tax Year 2021. The ARP also permanently modified the rules, 

beginning in 2021, regarding (i) children who fail to meet certain identification requirements, (ii) 

separated spouses, (iii) the disqualified investment income test, and (iv) the application of the 

EITC to the U.S. territories. 

C – Assistance to American Industry & Small Businesses 

The COVID-19 public health crisis and resulting economic crisis have put many sectors of the 

American economy under unprecedented strain. The Treasury Department is offering financial 

support to American industry so they can better support American workers and play a pivotal 

part in driving the national recovery effort. 

The pandemic has also created a variety of challenges for small, micro, and solo businesses in 

communities across the country. Treasury is also providing critical assistance to small businesses 

across the country, facilitating the urgent deployment of capital and support to help these 

organizations not just persevere, but recover on solid footing. 

1.1 - Transportation Services 

The CCA, 2021, Section 421, authorized the Secretary of the Treasury, in consultation with the 

Secretary of Transportation, to make grants available to eligible providers of transportation 

services that suffered revenue loss due to the coronavirus pandemic. Eligible companies 

provided charter, local, commuter, school, and tour bus services. Eligible small passenger vessels 

(as defined in 46 U.S.C 85, 116, and 2101) and the pilotage industry were also included. 

Transportation Services 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CAA, 2021 0 0 1,975,000 1,290,525 0 684,475 0 

Total $0 $0 $1,975,000 $1,290,525 $0 $684,475 $0 

1

Funds available until expended; excludes $25M designated for administrative expenses. 

1.2 - Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation 

Workers 

The CARES Act Section 4112, CAA, 2021 Division N Section 402, and the ARP Section 7301 

each authorized the Secretary of the Treasury to provide financial assistance to the aviation 

industry for the continued payment of employee wages, salaries, and benefits. The CARES Act 

provided for financial assistance to passenger air carriers, cargo air carriers, and airline 

contractors. The two subsequent laws provided for additional financial assistance only for 

passenger air carriers and airline contractors. 

The IIJA Section 90007 rescinded $3 billion from CARES Act Section 4120 budget authority, 

which corresponded with a lack of demand for the program among cargo airlines, as well as 
COVID - 12 

$200 million from the CAA, 2021 Division N Sec. 411 budget authority. 

Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for 

Aviation Workers 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute CARES Act1 31,900,000 28,199,000 0 478,126 0 (1,345) 0 

CAA, 2021 0 0 16,000,000 15,683,351 0 1,335 0 

ARP2 0 0 14,990,000 14,669,058 0 5,632 0 

IIJA3 0 0 0 0 (3,200,000) 0 0 

Total $31,900,000 $28,199,000 $30,990,000 $30,830,535 ($3,200,000) $5,622 $0 1

Excludes $100M designated for administrative expenses; $44.879M in recoveries recorded in FY 2021 2

Funds available until expended; excludes $10M designated for administrative expenses 3

The Infrastructure Investment and Jobs Act (P.L.117-58) Section 90007 rescinded $3B from the CARES Act Section 4120 budget authority 

and $200M from the P.L 116-260 Division N Sec. 411 budget authority in FY 2022. 

1.3 - Economic Stabilization Program 

The CARES Act authorized the Department of the Treasury to make up to $500 billion in loans 

and other investments in support of and to provide liquidity to eligible businesses, nonprofits, 

states, and municipalities impacted by the COVID-19 pandemic. This included investments in 

facilities established by the Board of Governors of the Federal Reserve System pursuant to 

Section 13(3) of the Federal Reserve Act to provide liquidity to the financial system. The 

CARES Act also authorized Treasury to use up to $46 billion of these funds to make loans to 

passenger and cargo air carriers, certain other aviation businesses, and businesses critical to 

maintaining national security. As required by the Federal Credit Reform Act of 1990, as 

amended, this account records the subsidy costs associated with these loans and investments, 

which are estimated on a present value basis. 

The CAA, 2021 Section 1003 rescinded $479 billion in budget authority from this program in 

2021 and the IIJA Section 90007 further rescinded $1.4 billion in 2022. 

Economic Stabilization Program 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority2

Obligations3 Enacted 

Budget 

Authority4

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CARES Act 499,870,000 31,823,000 0 0 0 0 0 

CAA, 2021 0 0 (478,796,257) 0 0 0 0 

IIJA 0 0 0 0 (1,366,100) 0 0 

Total $499,870,000 $31,823,000 ($478,796,257) $0 ($1,366,100) $0 $0 1

$25M transferred to SIGPR; excludes $100M for administrative expenses available until expended, excludes $5M designated for 

Congressional Oversight Commission reimbursement; subsidy and re-estimates not included. 2

Prior year obligations were recovered before the January 9, 2021, recission deadline. 3

Excludes $12.3M in recoveries of prior year obligations. 

4

Section 1003 of the CAA, 2021, rescinded unobligated balances from the CARES Act 2020 appropriation to the Economic Stabilization 

Program; the ultimate effect of Sec. 1003 rescinded $478.8B from this program. The IIJA, Section 90007, rescinded $1.4B from the CARES 

Act Section 4027 budget authority in FY 2022. 
COVID - 13 

D – Assistance for State, Local, U.S. Territory & Tribal Governments 

The COVID-19 public health crisis and resulting economic crisis have put state, local, U.S. 

territory and Tribal governments under unprecedented strain. The Treasury Department is 

providing needed relief to enable them to continue to support the public health response and lay 

the foundation for a strong and equitable economic recovery. 

1.1 - Coronavirus Relief Fund 

The CARES Act Section 5001, as amended by the CAA, 2021, Section 1001, and ARP Section 

9901 amended the Social Security Act (42 U.S.C. 301 et seq.) to authorize the Secretary of the 

Treasury to make payments to states, territories, tribal governments, and units of local 

government to assist with expenditures related to, as well as to mitigate the fiscal effects 

stemming from, the coronavirus pandemic. 

In addition, the ARP established the State and Local Fiscal Recovery Fund, the Coronavirus 

Capital Projects Fund, and a Local Assistance and Tribal Consistency Fund. The Coronavirus 

Capital Projects Fund provides payments to states, territories, and tribal governments to carry out 

critical capital projects, including broadband infrastructure, directly enabling work, education, 

and health monitoring, including remote options, in response to the coronavirus pandemic. The 

Local Assistance and Tribal Consistency Fund provides payments to eligible revenue sharing 

counties and eligible tribal governments for any governmental purpose other than lobbying 

activity. 

Coronavirus Relief Fund 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CARES Act 150,000,000 150,000,000 0 0 0 0 0 

ARP 0 0 362,000,000 242,933,748 0 118,066,252 1,000,000 

Total $150,000,000 $150,000,000 $362,000,000 $242,933,748 $0 $118,066,252 $1,000,000 1

$2B available through 2023, $350B available through 2025 and $10B available until expended; excludes $50M designated for administrative 

expenses. 

1.2 - Homeowner Assistance Fund 

The APR, Section 3206, established the Homeowner Assistance Fund to mitigate financial 

hardships associated with the coronavirus pandemic by providing funds to states, territories, 

tribes, and other eligible entities in order to prevent homeowner mortgage delinquencies, 

defaults, foreclosures, loss of utilities or home energy services, displacements, and postforeclosure evictions. 

 
COVID - 14 

Homeowner Assistance Fund 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

ARP 0 0 9,918,400 965,459 0 8,952,941 0 

Total $0 $0 $9,918,400 $965,459 $0 $8,952,941 $0 1

Funds available through FY 2025; excludes $2.6M transferred to the Treasury Office of Inspector General (OIG) for oversight activities and 

$40M designated for administrative expenses. 

1.3 - Emergency Rental Assistance 

The CAA, 2021 Division N Section 501 established the Emergency Rental Assistance program 

to provide grants to states, territories, tribes, localities, and other eligible entities to provide 

financial assistance and housing stability services to eligible households. These services may 

include the payment of rent, rental arrears, and utilities and home energy costs for a specified 

period of time. The ARP Section 3201 provided for additional assistance and expanded housing 

stability services, in addition to allocating a subset of the funds specifically for high-need 

grantees in FY 2022 and FY 2023. 

Emergency Rental Assistance 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations3

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CAA, 20211 0 0 24,985,000 24,985,000 0 5,254,323 0 

ARP2 0 0 21,517,000 8,460,191 0 13,056,809 0 

Total $0 $0 $46,502,000 $33,445,191 $0 $18,311,132 $0 1

One-year funding, excludes $15M designated for administrative expenses. 

2

Funds available through FY 2027; $3M transferred to OIG; excludes $30M designated for administrative expenses. 3

In FY 2022, ERA under CAA, 2021, recovered $5.3M in prior year obligations. 

E – Access to Capital for Community Development and Small Businesses 

1.1 - Community Development Financial Institutions Fund, Emergency Support 

The CAA, 2021, provided $3 billion to deliver immediate assistance to CDFIs in communities 

impacted by the COVID-19 pandemic. In the spring of 2021, the CDFI Fund awarded $1.25 

billion of these funds through its newly established CDFI Rapid Response Program (CDFI RRP), 

which was designed to quickly deploy capital to CDFIs through a streamlined application and 

review process. 

The CDFI Fund will begin the process of making $1.75 billion in grant funds available to 

eligible CDFIs to expand their lending, grant making, or investment activity in low- or moderateincome minority communities and to minorities that have significant unmet capital or financial 

service needs. 

 
COVID - 15 

CDFI Emergency Support 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CAA, 2021 0 0 3,000,000 1,248,000 0 3,000 1,742,000 

Total $0 $0 $3,000,000 $1,248,000 $0 $3,000 $1,742,000 

 Total FTE 0 3 12 12 

1

$1.75B Funds available until expended 

 

1.2 - Emergency Capital Investment Program 

The Emergency Capital Investment Program (ECIP) invests in either perpetual preferred equity 

or subordinated debt (with a maturity of fifteen or thirty years) issued by financial institutions 

consistent with ECIP's terms. Institutions eligible to participate must be: 1) Community 

Development Financial Institutions or Minority Depository Institutions; 2) insured depository 

institutions, bank or savings and loan holding companies, or federally insured credit unions; and 

3) supportive of low-and middle-income communities. Dividend yields or interest paid on ECIP 

securities decrease when institutions reach lending goals established at the time of their 

participation. Division N, Section 522 of the CAA, 2021 established ECIP by amending the 

Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4701 et 

seq.) and provided $9 billion for the program. Treasury issued an interim final rule for ECIP on 

March 9, 2021, and on March 22, 2021, the Board of Governors of the Federal Reserve System 

(FRB), Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the 

Currency (OCC) jointly issued an interim final rule for securities issued under ECIP, providing 

that preferred stock issued qualifies as additional tier 1 capital and subordinated debt qualifies as 

tier 2 capital under the FRB/FDIC/OCC capital rule. 

The ECIP application period closed on September 1, 2021, and preliminary recipients were 

announced in December 2021. 

Emergency Capital Investment Program 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CAA, 2021 0 0 8,747,431 0 0 8,747,431 0 

Total $0 $0 $8,747,431 $0 $0 $8,747,431 $0 1

Funds available until expended; excludes $252.569M designated for administrative expenses. 

1.3 - State Small Business Credit Initiative 

The ARP Section 3301, amends the State Small Business Credit Initiative Act of 2010 (12 

U.S.C. 4701 et seq.) and provides additional funding for the State Small Business Credit 

Initiative (SSBCI) that was originally established in the Small Business Jobs Act of 2010 (P.L. 

111-240). SSBCI funds eligible state, territorial and tribal government programs through 
COVID - 16 

September 29, 2030, which provide support to investment and credit programs for small 

businesses, with particular emphasis on business enterprises owned and controlled by socially 

and economically disadvantaged individuals. Additionally, SSBCI funds technical assistance for 

small businesses applying for Federal and State support programs. 

State Small Business Credit Initiative 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

ARP 0 0 9,800,000 0 0 9,800,000 0 

Total $0 $0 $9,800,000 $0 $0 $9,800,000 $0 1

Funds available until expended; excludes, designated, but not limited to, $200M for administrative expenses. 

F – COVID Program Administration and Oversight 

1.1 - Bureau of the Fiscal Service 

The CARES Act provided the Fiscal Service $78.65 million in supplemental appropriations for 

the implementation of the Economic Impact Payments (EIP) as well as the implementation of 

reporting requirements associated with spending of COVID-19 supplemental appropriations. In 

the first round of EIPs, Fiscal Service issued more than 166 million EIPs totaling more than $277 

billion. The CAA, 2021 authorized a second round of EIPs and allowed for the transfer up to $63 

million of the $78.65 million appropriated under the CARES Act to offset any losses attributable 

to debt collection activities. Fiscal Service transferred $48.6 million to the Debt Collection Fund 

for this purpose. 

During FY 2021, Fiscal Service disbursed more than 428 million EIP 2, EIP3, and advance 

monthly CTC payments totaling $593 billion, of which 80% were disbursed electronically. In the 

first quarter of FY 2022, Fiscal Service also disbursed more than 110 million EIPs and advance 

CTCs totaling $51 billion, of which 86% of these were disbursed electronically. IRS and Fiscal 

Service partnered to convert 70.2 million payments from check to direct deposit with a 99.6% 

accuracy rate, through the use of Fiscal Service’s Account Verification Service and CrossGovernment Data Analytics, avoiding $33 million in check production costs (check stock, 

envelope, and postage costs). Conversion from check to direct deposit provides an inherently 

improved customer experience through faster, safer, and more accurate payment delivery. This is 

especially notable, as historically, check payments are 16 times more likely to have exceptions 

(e.g., lost, stolen, returned, etc.) than payments made via direct deposit. In addition to the funds 

appropriated by the CARES Act, the CAA, 2021, and the ARP, the IRS reimburses Fiscal 

Service for the cost of postage (see 31 U.S.C. 306 note) associated with EIPs and CTCs. 

 
COVID - 17 

Bureau of the Fiscal Service 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CARES Act2,3 78,650 11,784 0 18,230 0 0 0 

ARP4 0 0 23,200 4,758 0 16,597 0 

Total5 $78,650 $11,784 $23,200 $22,988 $0 $16,597 $0 1

CARES Act funding was available until September 30, 2021. 2

FY 2020 includes deobligations that occurred during FY 2021. 

3

The CAA, 2021, authorized the transfer of up to $63M to offset the losses resulting from the suspension of debt collection receipts during the 

coronavirus pandemic. Fiscal Service transferred $48.55M to the Debt Collection Fund. The funds were fully obligated in FY 2021. 4

ARP funding is available until September 30, 2022. 

5

Total excludes reimbursed postage cost from the IRS (31 U.S.C. 306); In FY 2020 and FY 2021, IRS reimbursed Fiscal Service $16.0M and 

$33.8M for postage cost, respectively. In FY 2022, Fiscal Service is estimating the postage cost to be $6.3M. 

1.2 - Internal Revenue Service COVID Response (Admin.) 

The IRS received $15 million in the FFCRA and $750.7 million in the CARES Act for the 

resources for the IRS to change its operations to operate during the pandemic and implement 

EIPs and other tax changes. The IRS received an additional $509 million in the CAA, 2021 to 

carry out a second round of EIPs and address COVID-related tax administration issues. Finally, 

the IRS received $1.465 billion in the ARP for a third round of EIPs and information technology 

modernization as well as $397.2 million to carry out advance payments for the CTC. 

IRS COVID Response (Admin.)1

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute FFCRA 15,000 14,988 0 0 0 0 0 

CARES Act 750,700 423,516 0 326,604 0 0 0 

CAA, 2021 0 0 509,000 502,125 0 0 0 

ARP2 0 0 1,861,700 453,225 0 1,031,086 377,389 

Total $765,700 $438,504 $2,370,700 $1,281,954 $0 $1,031,086 $377,389 1

Includes funds for Taxpayer Services, Enforcement, Operations Support and Systems Modernization with multiple periods of availability. 2

Obligations are based on estimates as of the time of the FY 2023 Budget; assumes funding will be fully obligated by the end of FY 2023. 

1.3 - Departmental Offices, Office of Recovery Programs 

The Office of Recovery Programs, within the Departmental Offices, provides administrative 

support to the following programs: Transportation Services, Payroll Support Program, Air 

Carrier Worker Support & Pandemic Relief for Aviation Workers, Economic Stabilization 

Program, Coronavirus Relief Fund, Homeowner Assistance Fund, Emergency Rental Assistance, 

Emergency Capital Investment Program and State Small Business Credit Initiative. 

In FY 2023, Treasury projects that the State and Local Fiscal Recovery Funds and the 

Emergency Rental Assistance Program will have at least a $35M administrative funding 

shortfall. To avoid shutting down these essential programs that provide direct relief to the 
COVID - 18 

American people, Treasury requests Administrative Funding Transfer Authority to ensure 

resources are effectively and efficiently utilized for a centralized and consistent approach to 

administering and managing the various coronavirus recovery and stabilization programs 

implemented (refer to Section III). This proposal would not provide new funding (and thus 

would not have a budgetary “score”) but would provide the flexibility to pay for certain 

programs out of previously appropriated administrative amounts. 

Departmental Offices, Office of Recovery Programs 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations5

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

FFCRA 0 0 0 0 0 0 0 

CARES Act1 200,000 24,000 0 34,790 0 10,256 5,908 

CAA, 20212 0 0 292,569 37,690 0 43,527 20,183 

ARP3 0 0 330,000 30,642 0 78,892 55,904 

IIJA 0 0 0 0 0 0 0 

Total4 $200,000 $24,000 $622,569 $103,122 $0 $132,675 $81,995 1

$100M for administrative expenses related to Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation Workers, 

available until expended; and $100M for the Economic Stabilization Program, available until expended. 2

$25M for administrative expenses related to Transportation Services, available through FY 2022; $15M for Emergency Rental Assistance, 

available through the end of FY 2021; and $252.569M designated for the Emergency Capital Investment Program, available until expended. 3

$10M for administrative expenses related to Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation Workers, 

available until expended; $50M for the Coronavirus Relief Fund, available until expended; $40M for the Homeowner Assistance Fund, available 

through FY 2025; $30M for Emergency Rental Assistance, available through FY 2027; and designated, but not limited to, $200M for the State 

Small Business Credit Initiative, available until expended. 4

Administrative support for Economic Impact Payments are excluded from this table. 

5

As detailed in Section 123 of the proposed Treasury Administrative Provisions, Treasury is requesting administrative flexibility between 

COVID related programs (excluding SSBCI and ECIP). In FY 2023, Economic Stabilization Program reflects $33M in obligations for 

administrative expenses related to the State and Local Fiscal Recovery Funds, as reflected in the Coronavirus Relief Fund account, and the 

Payroll Support Program, Air Carrier Worker Support & Pandemic Relief for Aviation Workers, reflects $2M for administrative expenses 

related to the Emergency Rental Assistance Program. 

 
COVID - 19 

Departmental Offices, Office of Recovery Programs COVID-19 FTE FY 2020 FY 2021 FY 2022 FY 2023 

 Actual Actual Estimated Estimated 

AMOUNT AMOUNT AMOUNT AMOUNT 

Assistance to Industry & Small Businesses Transportation Services 0 2 11 4 

Payroll Support Program, Air Carrier Worker Support & 

Pandemic Relief for Aviation Workers 0 14 5 1 

Economic Stabilization Program2

 11 11 5 64 Assistance for State, Local, U.S. Territory & Tribal 

Governments Coronavirus Relief Fund2

 0 7 61 0 

Homeowner Assistance Fund 0 2 27 26 

Emergency Rental Assistance 0 3 20 21 Access to Capital for Community Development and 

Small Businesses Emergency Capital Investment Program 0 0 27 23 

State Small Business Credit Initiative (SSBCI) 0 3 37 39 

 Total 11 42 193 178 1

DO FTE are funded from COVID related legislation in support of recovery programs and is not supplemented by Treasury 

Departmental Offices annual appropriation. 

2

As detailed in Section 124 of the proposed Treasury Administrative Provisions, Treasury is requesting administrative flexibility 

between COVID related programs (excluding SSBCI and ECIP). In FY 2023, 63 FTE associated with the Coronavirus Relief Fund are 

recorded in the Economic Stabilization Program for a total for 64 FTE between the two programs. 

1.4 - Special Inspector General for Pandemic Recovery 

The Special Inspector General for Pandemic Recovery (SIGPR) was established by Section 4018 

of the CARES Act. 

SIGPR has the duty to conduct, supervise, and coordinate audits, evaluations, and investigations 

of the making, purchase, management, and sale of loans, loan guarantees, and other investments 

made by the Secretary of the Treasury under programs established by the Secretary, as 

authorized by Section 4018(c) of the CARES Act, and the management by the Secretary of 

programs, as authorized by Section 4018(c) of the CARES Act. 

By express incorporation, SIGPR also has the duties, responsibilities, powers, and authorities 

granted inspectors general under the Inspector General Act of 1978, including broad subpoena 

authority. 

The role and mission of SIGPR is to safeguard the peoples' tax dollars appropriated by Congress 

through the CARES Act until its authority expires in 2025. SIGPR strives to ensure that the 

American taxpayer gets the best return on investment by efficiently rooting out fraud, waste, and 

abuse. In carrying out its mission, SIGPR's goal is to treat everyone with respect, to operate with 

the utmost integrity, and to be fair, objective, and independent. 

The CARES Act provided an initial appropriation of $25 million to SIGPR derived from 

amounts made available under section 4027. 

For additional information regarding SIGPR please refer to the Special Inspector General for 

Pandemic Recovery (SIGPR) Congressional Budget Justification and Annual Performance Plan 

and Report. 

1.5 - Office of the Inspector General 

This account also supports the oversight of COVID response programs, such as the Coronavirus 
COVID - 20 

Relief Fund, Emergency Rental Assistance, and the Homeowner Assistance Fund pursuant to the 

CARES Act, Division N of the CAA, 2021, and the ARP. 

Office of the Inspector General 

Dollars in Thousands FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

CARES Act 35,000 2,000 0 8,000 0 9,000 9,000 

CAA, 20212 0 0 6,500 552 0 1,000 1,000 

ARP3 0 0 5,600 149 0 1,500 1,500 

Total $35,000 $2,000 $12,100 $8,701 $0 $11,500 $11,500 

 Total FTE 0 30 52 52 1

Funds designated for Coronavirus Relief Fund oversight is available until expended. 2

Funds designated for Emergency Rental Assistance oversight is available until expended. 3

Funds designated for Homeowner Assistance Fund oversight is available through 2025; and Funds designated for Emergency Rental Assistance 

oversight is available through 2027. 

1.6 - Treasury Inspector General for Tax Administration 

This account also supports the oversight of EIPs and other fast and direct relief provided by the 

IRS pursuant to the CARES Act, Division N of the CAA, 2021, and the ARP. 

Treasury Inspector General for Tax Administration 

Dollars in Thousands 

 FY 2020 FY 2020 FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 

 

Enacted 

Budget 

Authority 

Obligations Enacted 

Budget 

Authority1

Obligations Enacted 

Budget 

Authority 

Estimated 

Obligations 

Estimated 

Obligations 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Statute 

ARP 0 0 8,000 2,380 0 5,620 0 

Total $0 $0 $8,000 $2,380 $0 $5,620 $0 

 Total FTE 13 28 0 1

Funds available through September 30, 2023 

Section III –Appropriations Language 

A – Treasury Administrative Provisions 

1.1 - Administrative Funding Transfer Authority 

SEC. [125]123. Notwithstanding any other provision of law, the unobligated balances from 

amounts made available to the Secretary of the Treasury for administrative expenses pursuant to 

sections 4003(f) and 4112(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public 

Law 116–136); section 421(f)(2) of Division N of the Consolidated Appropriations Act, 2021 

(Public Law 116–260); sections 3201(a)(2)(B), 3206(d)(1)(A), and 7301(b)(5) of the American 

Rescue Plan Act of 2021 (Public Law 117–2); and section 602(a)(2) of the Social Security Act, 

as added by section 9901 of the American Rescue Plan Act of 2021 (Public Law 117–2), shall be 

available for any administrative expenses determined by the Secretary of the Treasury to be 
COVID - 21 

necessary to respond to the coronavirus, including but not limited to expenses necessary to 

implement any provision of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 

116–136), Division N of the Consolidated Appropriations Act, 2021 (Public Law 116–260), the 

American Rescue Plan Act (Public Law 117–2), or title VI of the Social Security Act: Provided, 

That such unobligated balances shall be available in addition to any other appropriations 

provided for such purposes. 


 

Department of the Treasury 

Office of Inspector General 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
OIG-2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .......................................................................................... 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

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

E – Legislative Proposals ............................................................................................................ 7

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

A – Strategic Alignment ............................................................................................................. 8

B – Major challenges and risks for Treasury .............................................................................. 8

C – Budget and Performance by Budget Activity .................................................................... 13

2.1.1 – Audit Resources and Measures ..................................................................................... 13

Audit Budget and Performance ................................................................................................. 13

2.1.2 – Investigations Resources and Measures ........................................................................ 14

Investigations Budget and Performance ................................................................................... 14

C – Changes in Performance Measures .................................................................................... 16

Section III – Additional Information ........................................................................................ 16

A – Summary of Capital Investments ....................................................................................... 16

 
OIG-3 

Section I – Budget Request 

A – Mission Statement 

To promote the integrity, efficiency, and effectiveness in programs and operations within the 

Department of the Treasury and OIG’s jurisdictional boundaries. 

B – Summary of the Request 

The FY 2023 request for $43,878,000 for the OIG will be used to fund audit, investigative, and 

mission support activities to meet the requirements of the Inspector General Act of 1978, as 

amended, and other statutes including, but not limited to: the Cybersecurity Act of 2015; DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal Information 

Security Modernization Act of 2014 (FISMA); Federal Information Technology Acquisition 

Reform Act; Government Management Reform Act; Payment Integrity Information Act of 2019 

(PIIA); Government Charge Card Abuse Prevention Act of 2012; Federal Deposit Insurance Act; 

Small Business Jobs Act of 2010; Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE); the 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act); the Consolidated 

Appropriations Act, 2021; and the American Rescue Plan Act (ARP). Specific mandates include: 

(1) audits of the Department’s financial statements (2) audits or evaluations of the Department’s 

information systems security program and practices as required by FISMA, (3) assessments of 

the Department’s cyber security information sharing, (4) audits of improper payments and 

recoveries under PIIA, (5) risk assessments and audits of charge card programs, and (6) material 

loss reviews of failed insured depositary institutions regulated by the Office of the Comptroller 

of the Currency (OCC). 

 

The OIG will also conduct audits of the Department’s highest risk programs and operations, and 

respond to stakeholder requests for specific work, including: (1) operating in an uncertain 

environment, (2) cyber threats, (3) Bank Secrecy Act, anti-money laundering, and anti-terrorist 

financing enforcement, (4) efforts to promote spending transparency and to prevent and detect 

improper payments, (5) information technology acquisition and project management; and (6) 

certain Treasury Pandemic Relief programs. 

Within its jurisdictional boundaries, the OIG also conducts audit of the highest risk programs and 

operations of Gulf Coast Ecosystem Restoration Council (Council) established under RESTORE. 

The highest risk programs and operations identified as the Council’s management and performance 

challenge include: (1) Federal statutory and regulatory compliance, (2) grant and interagency 

agreement compliance monitoring, and (3) Loss of Key Leadership Over Administration of Gulf 

Coast Restoration Activities. 

The OIG will continue its investigative work to prevent, detect, and investigate complaints of 

fraud, waste, and abuse impacting Treasury programs and operations. This includes the detection 

and prevention or deterrence of employee misconduct and fraud. 

 
OIG-4 

Office of Inspector General’s FY 2023 Budget Request 

In accordance with the requirements of Section 6(f)(1) of the Inspector General Act of 1978, as 

amended, the Treasury Inspector General submits the following information relating to the 

OIG’s requested budget for FY 2023: 

 The aggregate budget request for the operations of the OIG is $55,878,000 comprised of 

$43,878,000 from direct appropriations, and $12,000,000 from reimbursable collections; 

 The portion of this amount needed for OIG training is $650,000; and 

 The portion of this amount estimated in support the Council of Inspectors General on 

Integrity and Efficiency (CIGIE) is $92,500. 

The amount requested for training satisfies all OIG training needs for FY 2023. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan1 Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 145 

 

29,324 144 

 

30,521 144 

 

32,198 0.0% 5.5% 

Investigations 44 

 

10,120 46 

 

10,520 46 

 

11,680 0.0% 11.0% 

Subtotal New Appropriated Resources 189 $39,444 190 $41,041 190 $43,878 0.0% 6.9% 

Other Resources 

Reimbursables - Annual 0 

 

8,061 0 

 

12,000 0 

 

12,000 NA 0.0% 

Reimbursable – SSBCI 0 400 0 1,000 0 1,000 NA 0.0% 

Resources from Other Accounts 0 

 

8,000 0 

 

10,959 0 

 

10,122 NA -7.6% 

Subtotal Other Resources 0 $16,461 0 $23,959 0 $23,122 0.0% -7.6% 

Total Budgetary Resources 189 55,905 190 $65,000 190 $67,000 0.0% 3.1% 

FY 2021 Other Resources and Full-time Equivalents reflect actuals. In FY 2021, additional appropriated resources were provided by the Consolidated Appropriations Act of 2021 and the American Rescue Plan 

Act of 2021 that are not included above: 

1. $3 million for oversight of the Emergency Rental Assistance program 

2. $6.5 million for oversight of the Emergency Rental Assistance program 

3. $2.6 million for oversight of the Homeowner Assistance Fund 

4. $35 million for oversight of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Funding received in FY 2020) 

5. $10 million for SSBCI (Small Business Jobs Act of 2010) starting in 2021 with $400k and thereafter, $1M each year. 
OIG-5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 190 $41,041 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $1,516 

Pay Annualization (2.7% average pay raise) 0 $211 

Pay Raise (4.6% average pay raise) 0 $1,083 

Non-Pay 0 $222 

Other Adjustments: 

Adjustments to Meet Current Operating Levels 0 $1,321 

 Subtotal Changes to Base 0 $2,837 

FY 2023 Current Services 190 $43,878 

FY 2023 President's Budget Request 190 $43,878 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$1,516,000 / +0 FTE 

Pay Annualization (2.7%) +$211,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$1,083,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$222,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Other Adjustments .....................................................................................+$1,321,000 / +0 FTE 

Adjustments to Meet Current Operating Levels +$1,321,000 / +0 FTE 

Treasury requests adjustments to realize current services operating levels. Current Operating 

Levels include the annualization of the January 2021 1.0% average pay raise, 2.7% average pay 

raise in January 2022, FY 2022 FERS contribution increases and FY 2022 non-labor expenses 

self-funded from FY 2021 enacted levels. 
OIG-6 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification1

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 22,000 27,000 28,000 

11.5 - Other personnel compensation 1,312 1,000 1,000 

11.9 - Personnel Compensation (Total) 23,312 28,000 29,000 

12.0 - Personnel benefits 9,000 10,000 11,000 

Total Personnel and Compensation Benefits $32,312 $38,000 $40,000 

21.0 - Travel and transportation of persons 0 1,000 1,000 

23.1 - Rental payments to GSA 0 4,000 4,000 

23.3 - Communications, utilities, and miscellaneous charges 0 1,000 1,000 

25.1 - Advisory and assistance services 1,100 0 0 

25.2 - Other services from non-Federal sources 9,417 10,000 9,000 

25.3 - Other goods and services from Federal sources 10,475 12,000 12,000 

31.0 - Equipment 667 0 0 

Total Non-Personnel $21,659 $28,000 $27,000 

Total Obligations $53,971 $66,000 $67,000 

 

Full-time Equivalents (FTE) 189 190 190 

FY 2021 Other Resources and Full-time Equivalents reflect actuals. In FY 2021, additional appropriated resources were provided by the Consolidated Appropriations Act of 2021 and the American Rescue Plan 

Act of 2021 that are not included above: 

1. $3 million for oversight of the Emergency Rental Assistance program 

2. $6.5 million for oversight of the Emergency Rental Assistance program 

3. $2.6 million for oversight of the Homeowner Assistance Fund 

4. $35 million for oversight of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Funding received in FY 2020) 

5. $10 million for SSBCI (Small Business Jobs Act of 2010) starting in 2021 with $400k and thereafter, $1M each year. 
OIG-7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

OFFICE OF INSPECTOR GENERAL 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of Inspector General in 

carrying out the provisions of the Inspector General Act of 1978, 

$43,878,000, 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, 2024, 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.

Note.—A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

The OIG has no legislative proposals. 

 
OIG-8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, through the audit and investigative functions the OIG is working to align budget activities 

and performance measures to the new objectives in the Treasury FY 2022 – 2026 Strategic Plan. This 

work will include benchmarking performance and may result in changes to performance measures in 

the FY 2024 budget. The OIG will publish a component plan that aligns bureau activities and 

priorities to the Department’s by early spring 2022.

The FY 2023 requested resources will enable the OIG to perform audits and investigations of 

Treasury programs and operations under its jurisdiction, except for those of the Internal Revenue 

Service (IRS), the Troubled Asset Relief Program (TARP), the Special Inspector General for 

Pandemic Recovery (SIGPR), and to keep the Secretary of the Treasury and Congress fully 

informed of problems, deficiencies, and the need for corrective action. By statute, the OIG also 

performs oversight of the Gulf Coast Ecosystem Restoration Council, an independent Federal 

entity. 

B – Major challenges and risks for Treasury 

New Mandates 

While Treasury continues transitioning key senior leadership positions and implementing new 

initiatives and programs, other critical matters such as the budget and debt ceiling stopgaps 

during the COVID-19 pandemic continues to be more challenging than usual. The impact of 

these challenges and the uncertainties require the Department to continue to focus its resources 

on programs that are in the highest need to citizens and/or where there is a unique federal role. It 

is essential that new initiatives, programs, and reforms be managed and communicated 

effectively for achieving performance and accountability The OIG will assess the Department’s 

ability to meet new mandates and manage challenges and risks to its programs and operations. 

Cyber Threats 

Treasury has maintained steady progress in addressing the continual and on-going challenges 

that the Federal Government and private sector face, including the threat of ransomware and 

challenging in recruiting and retaining cybersecurity personnel. Cyber threats are a persistent 

concern as Treasury’s information systems are critical to the core functions of Government and 

the Nation’s financial infrastructure. Attempted cyber-attacks against Federal agencies, 

including Treasury, and financial institutions continue to increase in frequency and severity, in 

addition to continuously evolving. There are risks that Treasury’s systems and resources already 

in use, including critical infrastructure, contain components from sources that have yet to be 

designated as threats. 

The Department will need to monitor developments in this area closely and plan for the 

possibility that its current supply chain may no longer be available in the near future. 

In addition to its own networks and systems, the Department must be cognizant of, and mitigate, 

the risks posed by attacks made against other agencies and Treasury contractors and 

subcontractors. Furthermore, effective public-private coordination is needed to address the cyber 

threat against the Nation’s critical infrastructure. In this regard, Treasury is looked upon to 
OIG-9 

provide effective leadership to financial institutions in particular, and the financial sector in 

general, to strengthen awareness and preparedness against cyber threats. 

As an ongoing challenge, Treasury will need to balance cybersecurity demands while 

modernizing and maintaining information technology (IT) systems. This is becoming more and 

more critical, especially since the COVID-19 pandemic shifted the Federal workforce to 

primarily telework status, which increases the opportunities for cyber-attacks. Long-standing 

cyber threats pose increased risks to networks and information systems during the ongoing 

COVID-19 global health pandemic as more opportunities are available for bad actors to stage 

cyber-attacks. As the tools used to perpetrate cyber-attacks become easier to use and more 

widespread, less technological knowledge and fewer resources are needed to launch successful 

attacks of increasing sophistication. To this end, Treasury must ensure that cyber security is 

fully integrated in its IT investment decisions. OIG conducts audits of Treasury’s information 

systems and operations. As part of these audits, OIG conducts penetration tests of selected 

Treasury bureaus and offices to determine whether sufficient protections exist to prevent and 

detect unauthorized access to Treasury networks and systems. 

Anti-Money Laundering/Terrorist Financing and Bank Secrecy Act Enforcement 

Identifying, disrupting, and dismantling the financial networks that support rogue regimes, 

terrorist organizations, transnational criminal organizations, and other threats to the national 

security of the United States and our allies continues to be challenging as the Office of Terrorism 

and Financial Intelligence’s (TFI) role to counter these financial networks and threats has grown 

because its economic authorities are key tools to carry out U.S. policy. TFI’s counter-terrorism 

designations disrupt the financial networks that support terrorist organizations. Disrupting 

terrorist financing depends on a whole-of-government approach and requires collaboration and 

coordination within Treasury and with other federal agencies. Effective collaboration and 

coordination are key to successfully identifying and disrupting terrorists’ financial networks and 

meeting TFI’s mission. 

Data security and information sharing are challenges for the Financial Crimes Enforcement 

Network (FinCEN), which has experienced unauthorized disclosures of Bank Secrecy Act 

information. The challenge for FinCEN is to ensure the Bank Secrecy Act data remain secure to 

maintain the confidence of the financial sector while meeting the access needs of law 

enforcement, regulatory, and intelligence partners. 

Given the criticality of Treasury’s mission and its role to carry out U.S. policy, the OIG 

continues to consider anti-money laundering and combating terrorist financing programs and 

operations as inherently high-risk. Through OIG’s ongoing audits and reviews, the OIG monitors 

this high-risk area closely. 

Efforts to Promote Spending Transparency and to Prevent and Detect Improper Payments 

Given the broad implications and critical roles assigned to Treasury by the Digital Accountability 

and Transparency Act of 2014 (DATA Act), there are renewed challenges facing Treasury given 

the need to ensure transparency to the taxpayer and other stakeholders on the use of funds 

distributed under the economic relief packages enacted to address individuals and industry 

sectors impacted by the COVID-19 pandemic. DATA Act reporting is now seen as one of the 

means to ensure transparency into the use of Federal funds related to COVID-19 expenditures. 
OIG-10 

In its April 2020 memorandum, Implementation Guidance for Supplemental Funding Provided 

in Response to the Coronavirus Disease 2019 (COVID-19), OMB requires that agencies leverage 

existing financial accountability and transparency mechanisms. In part, OMB requires (1) 

tracking of COVID-19 expenditures with usage of a Disaster Emergency Fund Code; (2) 

reporting financial assistance recipient information within two weeks of issuance, with the 

exception of loans; and (3) reporting outlay information at the financial award transaction level. 

To further enhance transparency, Treasury devoted significant resources and leveraged existing 

financial reporting systems to promote spending transparency and use of Federal financial data to 

strengthen government-wide decision-making. Treasury has also shifted from quarterly to 

monthly reporting and certification beginning with the period ending June 2020 and plans to add 

a program activity attribute beginning with the first quarter of fiscal year 2022. The speed in 

which supplemental funding was distributed created new data management needs for Treasury 

along with labor intensive ingestion of data associated with the application for, and issuance of, 

economic relief. The rapid delivery of funds within short timeframes may create opportunities 

for illicit activity by anyone attempting to misuse or abuse funds that were intended for COVID19 relief. Considering the challenges and risks associated with ensuring economic relief is 

deployed and used for intended purposes, Treasury must continue to address reporting and data 

quality issues noted in DATA Act audits and intensify efforts to reduce improper payments. 

Reliable and transparent data is critical to the Department’s ongoing implementation of 

Government-wide reforms for making data accessible and useful for decision-making as 

authorized by the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act).

The OIG will monitor the Department’s progress in this area. 

The OIG also continues to identify and analyze the risks of improper payments and reviews the 

controls and safeguards put in place by Treasury to prevent and recover such payments as set 

forth in the Payment Integrity Information Act of 2019 (PIIA).

Information Technology Acquisition and Project Management 

Government-wide implementation of the Federal Information Technology Acquisition Reform 

Act (FITARA) continues to be an ongoing challenge. FITARA expanded the involvement of 

Chief Information Officers of Federal agencies in IT decision making, including annual and 

multi-year planning, programming, budgeting, execution, reporting, management, governance, 

and oversight functions. Among FITARA specific requirements, the areas that Treasury needs 

most improvement were enhanced transparency and risk management and improved 

cybersecurity. Since February 2015, the Government Accountability Office has included the 

management of IT acquisitions and operations on its high-risk list as cost overruns and schedule 

delays impact mission related outcomes government-wide. The OIG monitors the Department’s 

progress to fully implement FITARA requirements and management of IT projects. 

Non-IT related acquisitions also require attention to ensure timely delivery and minimize cost 

overruns for achieving cost savings. In this regard, the OIG plans audit oversight of the Bureau 

of Engraving and Printing’s large construction project of a new facility to ensure continuity of 

operations of the bureau. 

 
OIG-11 

COVID-19 Pandemic Relief 

The COVID-19 pandemic affected the health and economic stability of communities 

nationwide. Congress passed a series of legislation to address the COVID-19 health crisis and 

the economic fallout affecting individuals, businesses, and other industry sectors. Treasury has 

been instrumental in implementing and supporting other Federal agencies in implementation of 

economic relief provisions of the CARES Act, the Consolidated Appropriations Act, 2021, and 

the American Rescue Plan. Along with administering and delivering economic relief, Treasury 

must manage the unprecedented oversight required by the aforementioned legislations. In the 

context of this overarching challenge, OIG recognizes the breadth and scope of Treasury’s 

responsibilities as it impacts programs, operations, and activities regardless of jurisdictional 

oversight boundaries. That said, there was reported strain associated with working remotely 

while managing normal responsibilities and additional work due to the COVID-19 pandemic. 

Going forward, Treasury may experience difficulties in balancing its new responsibilities and 

workloads while managing several ongoing challenges as described throughout this document. 

Major challenges and risks for the Gulf Coast Ecosystem Restoration Council (Council) 

Federal Statutory and Regulatory Compliance 

The Council must ensure that activities and projects funded by the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) meet all environmental laws and regulations at the Federal and State level 

and must also ensure its compliance with applicable laws and regulations as a Federal entity. 

The Council is required to follow Federal statutory and regulatory compliance requirements 

related to the DATA Act, PIIA, and the Evidence Act. The Council still faces challenges in 

meeting these Federal statutory and regulatory compliance stemming from the need for a reliable 

grants management system among other things. With the uncertainty of a successful transition to 

a new grants management system, the Council’s ability to comply with new as well as existing 

Federal requirements may be in question. In addition, there has been a loss of key leaders at the 

Council which will make a successful transition even more challenging. The OIG will continue 

to focus audits on the Council’s continued implementation and compliance with key Federal 

mandates. 

Grant and Interagency Agreement Compliance Monitoring Given the increase in grants and 

interagency agreements, the OIG continues to emphasize the necessity to monitor projects and 

award recipients of RESTORE Act funds. This challenge is further impacted by the Council’s 

transition to a new grants management system during FY 2020. The OIG audits will focus on the 

Council’s monitoring controls in place to ensure projects and recipients comply with grant and 

agency agreements and funds are used as intended. 

In the Investigations operational area, OIG has established eight priorities for FY 2022: 

Threats Against Treasury Employees and Facilities 

Investigative efforts into threats against Treasury employees and facilities are critical in ensuring 

safety for the Department. These matters require prompt attention and coordination with federal, 

state, and local authorities to protect those involved.

 
OIG-12 

Criminal and Serious Employee Misconduct 

The OIG Office of Investigation’s highest priority is investigating complaints involving alleged 

criminal and other serious misconduct by Treasury employees. OIG investigates allegations of 

the general crimes enumerated in Title 18 of the U.S. Code, other federal crimes, alleged 

violations of the Ethics in Government Act, and allegations of serious misconduct prohibited by 

the Standards of Ethical Conduct for Employees of the Executive Branch. Several Treasury 

bureaus and offices have additional rules and regulations relating to ethical standards for their 

own employees, and OIG also investigates complaints of alleged violations of these rules and 

regulations. 

Fraud Involving Contracts, Grants, Guarantees, and Federal Funds 

The OIG Office of Investigations conducts investigations into allegations of fraud and other 

crimes involving Treasury contracts, grants, loan guarantees, and federal funds, including 

investigations made in accordance with Sections 1602 and 1603 of the Recovery Act. Such 

allegations often involve contractors, entities, and individuals who are providing or seeking to 

provide goods or services to the Department. The Office of Investigations receives complaints 

alleging criminal or other misconduct from employees, contractors, members of the public, and 

the Congress. 

Financial Programs and Operations Crime 

Investigations relating to Treasury financial programs and operations that involve Treasury 

bureaus issuing licenses, providing benefits, and exercising oversight of U.S. financial 

institutions; frauds involving improper Federal payments such as those involving stolen, 

counterfeit, altered or fraudulently obtained Treasury checks and ACH payments; frauds 

involving improper Federal payments such as those involving Treasury checks and the Check 

Forgery Insurance Fund; crimes involving the improperly-redirected benefits of federal 

government payees; and false claims of any kind that seek Federal payments, including federal 

income tax refunds, Social Security benefits, and Department of Veterans’ Affairs. These matters 

require prompt attention to protect the public and the integrity of the department. 

Cyber Threats against Treasury Systems and Cyber Enabled Financial Crimes Fraud 

The OIG conducts investigations into Cyber intrusions of Treasury systems, the illicit removal of 

Treasury protected information from Treasury systems and Cyber enabled criminal activity 

impacting Treasury programs and operations, such as Business Email Compromise, Personal 

Email Compromise and other schemes.

Treasury Employee and Bureau Impersonation Scams 

Investigations relating to scammers who represent themselves as Treasury employees to defraud 

the citizens of the U.S. and other countries by the impersonation of Treasury employees and/or 

the fraudulent use of the Treasury and Bureau seals. This is a problem that has significantly 

increased in the last few years. These matters require prompt attention to protect the public and 

the integrity of the Department. 

Investigating Fraud Related to Persons Representing Themselves as “Sovereign Citizens” 

Submitting Fictitious Financial Instruments to Treasury, Financial Institutions, and Private 

Companies 
OIG-13 

The OIG conducts investigations into criminal activity associated with individuals who attempt 

to scam the Treasury, financial institutions, private companies, and citizens by submitting 

fictitious financial instruments purporting to be issued by or drawn on the Treasury or other 

counterfeit documents to perpetrate a variety of fraud schemes. These matters have become 

more prevalent and require prompt coordination with Federal, State, and local authorities to 

protect the targets of the scams. 

Identifying and Investigating Fraud Related to Pandemic Related Acts

The OIG conducts inquiries and investigations of waste, fraud, and abuse related to Title V of 

the CARES Act, which established the Coronavirus Relief Fund for State, Local, U.S territories, 

the District of Columbia and Tribal governments, the Consolidated Appropriations Act, 2021, 

the American Rescue Plan Act of 2021, as well as the Emergency Rental Assistance program 

(ERA/ERA2), the Homeowner Assistance Fund (HAF), Coronavirus State and Local Recovery 

Funds (SLFRF), State Small Business Credit Initiative (SSBCI), Air Carrier and Certain 

Contractors – Payroll Support Programs, Coronavirus Economic Relief for Transportation 

Services, Emergency Capital Investment Fund, and the CDFI Fund Emergency Support (Rapid 

Relief Program). 

C – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures

Dollars in Thousands

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $26,014 $24,413 $25,699 $30,524 $30,524 $30,521 $32,198 

Reimbursable $6,726 $6,116 $6,236 $9,000 $8,261 $12,000 $12,000 

Budget Activity Total $32,740 $30,529 $31,935 $39,524 $38,785 $42,521 $44,198 

Full-time Equivalents (FTE) 137 115 119 128 136 144 144 

 Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

 Actual Actual Actual Actual Actual Target Target Target 

Number of Completed Audit 

Products 90 91 79 85 80 80 74 82 

Percent of Statutory Audits 

Completed by the Required Date 100 100 100 100 100 100 100 100 

Audit Budget and Performance 

($32,198,000 from direct appropriations, and $11,000,000 from reimbursable resources): 

The Office of Audit (OA) conducts audits intended to ensure the accountability of resources, 

protect information, and provide recommendations for improving the integrity, economy, 

efficiency, effectiveness, of programs and operations within the Department and within OIG’s 

jurisdictional boundaries, which include those of the Council. The requested funding for 

FY 2023 is necessary to perform mandated work (including audits/assessments of financial 

statements, information systems security program and practices, cyber security information 

sharing, improper payments and recoveries, charge card programs, material loss reviews of failed 

insured depository institutions regulated by the OCC, and data quality audits of spending data), 

and to maintain an appropriate level of oversight of programs and operations consistent with the 
OIG-14 

OIG’s responsibilities under the Inspector General Act of 1978, amended. In FY 2023, OIG will 

also continue to provide oversight of Treasury’s Government-wide role and responsibilities 

under the CARES Act, FY 2021 Consolidated Appropriations Act, and ARP. Reimbursable 

funding agreements support financial statement audits of Treasury and oversight of the State 

Small Business Credit Initiative and the Small Business Lending Fund. Reimbursable funding 

agreements also support Treasury financial audits for which Treasury OIG is the lead office in 

selecting and overseeing contractor selection. 

Description of Performance

OA plans to complete 74 audit products in FY 2022, and 82 in FY 2023. Audit products include 

audit reports, evaluation reports, desk reviews, the Inspector General’s Semi-Annual Reports to 

Congress, and the Inspector General’s annual memoranda to the Secretary of the Treasury and 

the designated Chairperson of the Gulf Coast Ecosystem Restoration Council, on the most 

significant management and performance challenges facing the Department and Gulf Coast 

Ecosystem Restoration Council, respectively. 

Audit products can also include responses to specific information requests by the Congress. By 

completing independent and timely assessments of programs and operations across its 

jurisdiction, the Office of Audit supports the OIG’s mission of promoting integrity, efficiency, 

effectiveness of those programs and operations. The recommendations for improvement in 

programs and operations noted through OIG’s assessments directly support both the Treasury 

Department and the Gulf Coast Ecosystem Restoration Council in achieving their strategic goals 

and meeting their respective missions. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $7,164 $11,512 $11,344 $10,520 $10,520 $10,520 $11,680 

Budget Activity Total $7,164 $11,512 $11,344 $10,520 $10,520 $10,520 $11,680 

Full-time Equivalents (FTE) 43 42 39 39 44 46 46 

 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of All Cases 

Closed During Fiscal Year 

That Were Referred for 

Criminal/Civil/Administrative 

Action.

84 98 80 91 100 100 80 80 

Investigations Budget and Performance 

($11,680,000 from direct appropriations): 

The Office of Investigations (OI) prevents, detects, and investigates complaints of fraud, waste, 

and abuse impacting Treasury programs and operations. This includes the detection and 

prevention or deterrence of employee misconduct and fraud, or related financial crimes within or 

directed against Treasury. OI refers its cases to the Department of Justice, state or local 
OIG-15 

prosecutors for criminal prosecution or civil litigation, or to agency officials for corrective 

administrative action. 

With almost $3 billion in Treasury-related contracts, there is an increased risk of contract fraud 

across all Treasury bureaus and programs. OI initiated a program of providing integrity briefs to 

contract personnel notifying them of the responsibilities to report fraud, waste, and abuse within 

U.S. Treasury contracts and programs. OI works with the U.S. Department of Justice to 

prosecute False Claims Acts in federal court to recover funds through civil penalties. 

Additionally, OI conducts criminal investigations to prosecute contracts engaging in fraudulent 

activity, such as kickbacks, product substitution, bid manipulation, and many other types of 

contract fraud. OI continues to work allegations directly impacting the American Reinvestment 

and Recovery Act and the Gulf Coast Restoration Trust Fund. 

OI directs investigative efforts toward those that subvert bank examination processes, and/or 

perpetrate fraud impacting the Bank Secrecy Act oversight responsibilities of Treasury bureaus, 

subsequently defrauding the nation’s financial infrastructure, and eroding the public’s trust. 

In addition to the grant programs listed above, the OI has seen a noted increase in fraud 

impacting other significant Treasury programs and operations, including leaks of Treasury 

information, as well as fraud impacting the Treasury payment processing service operated by the 

Bureau of Fiscal Service. OI remains committed to investigating benefit, improper payment and 

other monetary fraud associated with the programs and operations of the Treasury Department. 

The Pandemic Response Accountability Committee (PRAC) established a Fraud Task Force to 

serve as a resource for the Inspectors General (IG) community by merging investigative 

resources into those areas where the need is the greatest, currently pandemic loan fraud. Agents 

from Offices of Inspectors General (OIG) across the Government are detailed to work on Task 

Force cases. These agents have partnered with prosecutors at the Department of Justice’s Fraud 

Section and at United States Attorneys’ Offices across the country. 

 

Treasury OIG has seven agents who are assigned to the PRAC Fraud Task Force on a part-time 

basis. The agents are assigned Paycheck Protection Program cases while continuing to work their 

existing Treasury OIG caseload. This initiative allows Treasury OIG to make a broader 

contribution to the IG community by assisting with investigations that might otherwise remain 

unstaffed. 

Description of Performance

The Investigative Performance Measure is a percentage of all cases closed by OI during the 

fiscal year referred to Department Bureaus for administrative action or for criminal or civil 

prosecution by Federal or local prosecutors. The goal for OI is that at least 80 percent of closed 

cases meet the aforementioned criteria. Meeting or exceeding this goal demonstrates that OI is 

responsive to allegations and complaints referred to the office and when these referrals require 

investigation, the cases are timely, thoroughly and accurately reported to assist the Department in 

maintaining the integrity of its programs and operations, subsequently ferreting out fraud, waste, 

and abuse. The office is working to meet or exceed this measure in both FY 2022 and FY 2023. 
OIG-16 

In FY 2021 OI met the Investigative Performance Measure target (Target – 80 percent; Actual – 

100 percent), opened 88 new investigations and closed 72 investigations. The OIG also referred 

13 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 and 5 investigations for civil prosecution. In FY 2020 OI charged and/or 

indicted 23 subjects. Ongoing investigations resulted in 24 subjects sentenced which resulted in 

fines, seizures, restitution, penalties, and settlements of more than $10.9 million. 

Since the inception of the CARES Act in March 2020, the OI has increased its caseload by 25 

percent for investigations that involve potential misappropriated funds of state, local, tribal 

governments, and governments of U.S. Territories. 

OI continues to support frequent congressional inquiries, sensitive investigative requests from 

the Council of the Inspectors General on Integrity and Efficiency, and annual peer reviews of 

other Offices of Inspector General, thus ensuring a high level of professionalism within the 

Inspector General community. 

C – Changes in Performance Measures 

OIG has no changes in performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

The OIG has no capital investments. Capital investments that support the OIG are included in 

the Departmental Offices plan. 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 


Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
TIGTA - 2 

Table of Contents 

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

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

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

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

1.2 – Budget Adjustments ................................................................................................................ 4

C – Budget Increases and Decreases Description ................................................................................. 4

1.3 - Object Classification (Schedule O) Obligations ........................................................................... 5

D – Appropriations Language and Explanation of Changes ................................................................ 6

E – Legislative Proposals ...................................................................................................................... 6

Section II – Annual Performance Plan and Report ........................................................................ 7

A – Strategic Alignment ....................................................................................................................... 7

B – Budget and Performance by Budget Activity ................................................................................ 8

2.1.1 – Audit Resources and Measures ............................................................................................... 8

Audit Budget and Performance ............................................................................................................. 8

2.1.2 – Investigations Resources and Measures ................................................................................ 11

Investigations Budget and Performance ............................................................................................. 11

Inspections and Evaluations ................................................................................................................ 13

C – Changes in Performance Measures .............................................................................................. 14

Section III – Additional Information ............................................................................................. 14

A – Summary of Capital Investments ................................................................................................. 14
TIGTA - 3 

Section I – Budget Request 

A – Mission Statement 

Provide quality professional audit, investigative, and inspection and evaluation services that 

promote integrity, economy, and efficiency in the administration of the Nation’s tax system. 

B – Summary of the Request 

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2023 

budget request of $182,409,000 represents an increase of seven percent above its FY 2022 

Annualized Continuing Resolution (CR) budget level. Funding TIGTA’s FY 2023 Budget 

request will enable TIGTA to conduct critical audit, investigative, and inspection and 

evaluation services to protect the integrity of the Nation’s Federal tax system. 

In accordance with the requirements of Section 6(f)(1) of the Inspector General Act of 1978 

(as amended),1

 TIGTA submits the following information related to its FY 2023 budget 

request: 

 The aggregate budget request for TIGTA operations is $182,409,000;

 The portion of the request needed for TIGTA training is $1,800,000; and

 The portion of the request needed to support the Council of the Inspectors General 

on Integrity and Efficiency is $656,672.

Funding for TIGTA allows its oversight efforts to continue, and for each dollar invested over 

the five-year period covering FY 2017 - FY 2021, TIGTA has produced an average annual 

return of $119. 

1.1 – Appropriations Detail 

Dollars in Thousands 

Treasury Inspector General for Tax 

Administration 

 

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audits 330 $64,851 341 $64,851 341 $67,491 0% 4% 

Investigations 409 $105,399 419 $105,399 419 $114,918 0% 9% 

Subtotal New Appropriated Resources 739 $170,250 760 $170,250 760 $182,409 0% 7% 

Other Resources 

Reimbursables 2 $502 2 $700 2 $700 0% 0% 

Unobligated Balances from Prior Years 0 $3,729 0 $1,469 0 $1,500 NA 2% 

Subtotal Other Resources 2 $4,231 2 $2,169 2 $2,200 0% 1% 

Total Budgetary Resources 741 $174,481 762 $172,419 762 $184,609 0% 7% 

FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

Table does not include $8M in funding provided through the American Rescue Plan Act of 2021 (ARP) (P.L.117-2) which is available for 

expenditure through FY 2023. 

1

 5 U.S.C. app. 3 § 6(f)(1). 
TIGTA - 4 

1.2 – Budget Adjustments 

C – Budget Increases and Decreases Description 

 Maintaining Current Levels (MCLs) .......................................................+$12,159,000 / +0 FTE 

Pay Annualization, (2.7%) +$975,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise, (4.6%) +$5,018,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay, +$626,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and equipment. 

Other Adjustments.................................................................+5,540,000 / +0 FTE 

Adjustments to Meet Current Operating Levels, +$5,540,000 / +0 FTE 

Treasury requests adjustments to realize current services operating levels. Current Operating 

Levels include the annualization of the January 2021 1.0% average pay raise, 2.7% average pay 

raise in January 2022, FY 2022 FERS contribution increases and FY 2022 non-labor expenses 

self-funded from FY 2021 enacted levels. Funds are requested for costs realized in FY 2022 

under the enacted appropriation, but not included under an annualized CR. 

 

FTE Amount

FY 2022 Annualized CR 760 $170,250 

Changes to Base: 

 Maintaining Current Levels (MCLs): 0 $6,619

 Pay Annualization (2.7% average pay raise) $975

 Pay Raise (4.6% average pay raise) $5,018

 Non-Pay $626

 Other Adjustments: 0 $5,540

 Adjustments to Meet Current Operating Levels 0 $5,540

Subtotal Changes to Base 0 $12,159

FY 2023 Current Services 760 $182,409 

FY 2023 President's Budget Request 760 $182,409 

Dollars in Thousands
TIGTA - 5 

1.3 - Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Object Classification 

FY 2021 

Actual 

Obligations 

FY 2022 

Estimated 

Obligations 

FY 2023 

Estimated 

Obligations 

11.1 - Full-time permanent $88,050 $88,165 $94,443 

11.3 - Other than full-time permanent $414 $414 $484 

11.5 - Other personnel compensation $8,764 $8,757 $9,495 

11.9 - Personnel Compensation (Total) $97,228 $97,336 $104,421 

12.0 - Personnel benefits $42,533 $42,635 $46,083 

Total Personnel and Compensation Benefits $139,761 $139,971 $150,504 

21.0 - Travel and transportation of persons $830 $1,427 $3,064 

22.0 - Transportation of things $0 $24 $39 

23.1 - Rental payments to GSA $9,047 $7,855 $7,986 

23.2 - Rental payments to others $441 $441 $169 

23.3 - Communications, utilities, and miscellaneous charges $788 $788 $851 

24.0 - Printing and reproduction $1 $1 $4 

25.1 - Advisory and assistance services $2,371 $1,892 $1,860 

25.2 - Other services from non-Federal sources $518 $518 $557 

25.3 - Other goods and services from Federal sources $11,235 $11,489 $11,934 

25.4 - Contractual Services - Other $1 $1 $0 

25.7 - Operation and maintenance of equipment $1,909 $1,909 $1,845 

26.0 - Supplies and materials $515 $515 $748 

31.0 - Equipment $4,891 $3,903 $3,321 

91.0 - Unvouchered Expenses $216 $216 $224 

Total Non-Personnel $32,763 $30,979 $32,605 

New Budgetary Resources $172,524 $170,950 $183,109 

 

Full-time Equivalents (FTE) 739 760 760 

Amounts reflect actual and anticipated obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

Table does not include $8M in funding provided through the ARP Act of 2021 (P.L.117-2) which is available for expenditure through 

FY 2023, of which $2.4M was obligated in FY 2021. 
TIGTA - 6 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION 

Federal Funds 

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; $182,409,000, of which $5,000,000 shall 

remain available until September 30, 2024; 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. 

Note.--A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

TIGTA has no legislative proposals. 
TIGTA - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Treasury, was established by Congress under the 

Internal Revenue Service (IRS) Restructuring and Reform Act of 1998.2

 It provides 

oversight of IRS activities by conducting independent audits, investigations, and inspections 

and evaluations necessary to prevent and detect waste, fraud, and abuse in IRS programs and 

operations. TIGTA conducts audits of IRS programs and operations and makes 

recommendations designed to improve the administration of the Federal tax system. TIGTA 

also conducts administrative and criminal investigations into allegations of waste, fraud, and 

abuse while helping to ensure that the IRS protects and secures taxpayer data. TIGTA also 

has the unique responsibility of protecting the IRS and its employees. This year, TIGTA is 

working to align budget activities and performance measures to the new objectives in the 

Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking performance 

and may result in changes to performance measures in the FY 2024 budget. 

TIGTA’s primary functions of investigations, audits, and inspection and evaluations align 

with the following goals in Treasury’s Strategic Plan for Fiscal Years (FY) 2022 - 2026: 

 Goal 1: Promote Equitable Economic Growth and Recovery; 

 Goal 2: Enhance National Security; 

 Goal 4: Combat Climate Change; and 

 Goal 5: Modernize Treasury Operations. 

TIGTA’s Strategic Goals: 

 Promote the economy, efficiency, and effectiveness of Federal tax administration; 

 Protect the integrity of Federal tax administration from internal and external threats; and 

 Sustain an inclusive work environment where employees are valued. 

Goal 1: Promote the Economy, Efficiency, and Effectiveness of Federal Tax 

Administration 

TIGTA’s audits, investigations, and inspections and evaluations identify opportunities to 

improve the administration of the Nation’s tax law. TIGTA’s comprehensive independent 

audits of IRS programs and operations focus on mandated reviews and on high-risk 

management and performance challenges that confront the IRS. These audits address a 

variety of IRS issues relating to security of taxpayer data and user authentication, tax systems, 

implementation of tax laws, tax compliance, meeting customer service demands, and 

improper payments. TIGTA’s recommendations not only result in cost savings, but have 

other quantifiable impacts, such as revenue protection, improving IRS systems and 

operations, and ensuring fair and equitable treatment of taxpayers. 

Goal 2: Protect the Integrity of Federal Tax Administration from Internal, and 

External Threats 

The successful operation of the Federal Government depends on an effective, efficient, and 

equitable tax system. During these times of such extraordinary demand on Federal resources, 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
TIGTA - 8 

Americans must have confidence that their tax dollars are being fairly assessed and collected, 

and that the tax laws are being uniformly and impartially enforced. TIGTA is committed to 

support and work with the IRS, Congress, and other stakeholders to ensure that these goals are 

achieved. Consistent with this commitment, TIGTA is constantly striving to carry out its 

statutory mandate to detect and prevent waste, fraud, and abuse in IRS programs and operations. 

TIGTA undertakes investigative initiatives designed to protect the IRS against external threats 

that could impede the efficient and effective administration of its operations. These investigative 

initiatives identify individuals who perpetrate violence against IRS employees, or who otherwise 

could pose a threat to the safety of IRS employees, facilities, or data infrastructure. TIGTA 

provides crucial intelligence to help IRS officials make anticipatory or proactive operational 

decisions about potential terrorist attacks or other activities that could pose a threat to IRS 

systems, operations, and people. 

Goal 3: Sustain an Inclusive Work Environment Where Employees Are Valued 

TIGTA recognizes that the key driving forces in a successful organization are the knowledge, 

skills, and abilities of its employees. This recognition is supported by sustaining an inclusive 

work environment where employees are valued. Accordingly, TIGTA’s employees play a 

critical role in the organization’s growth and performance. TIGTA is committed to promoting a 

workplace environment devoted to operational excellence, and to supporting the development of 

a highly skilled and valued workforce. One benchmark for measuring TIGTA’s success in 

achieving its strategic goal of being an organization that values its people is its consistently high 

placement in the Partnership for Public Service’s “Best Places to Work” rankings. In 2020, for 

instance, TIGTA placed 76th out of 411 subcomponent agencies. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual* Annualized 

CR Request 

Appropriated Resources $64,240 $61,099 $62,676 $65,308 $63,863 $64,851 $67,491 

Reimbursable Resources 0 0 0 $88 $4 0 0 

Unobligated Balances 

Brought Forward $1,524 $1,674 $1,947 $1,908 $1,389 $544 $557 

Budget Activity Total $65,764 $62,773 $64,623 $67,304 $65,256 $65,395 $69,341 

Full-time Equivalents (FTE) 339 328 323 328 322 341 341 

 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit Products 

Delivered When Promised to 

Stakeholders 

79 81 84 79 93 70 70 70 

Percentage of New Audit 

Reports with 

Recommendations to Improve 

Tax Administration 

NA NA NA NA NA B 70 70 

Key: NA-Not Applicable; B – Baseline 

*Excludes ARP Act of 2021 obligations. 

Audit Budget and Performance 

($67,491,000 from direct appropriations): 

TIGTA’s Office of Audit (OA) strives to promote the economy, efficiency, and 

effectiveness of tax administration. TIGTA provides recommendations to improve IRS 
TIGTA - 9 

systems and operations and to ensure the fair and equitable treatment of taxpayers. 

TIGTA’s comprehensive and independent performance and financial-related audits of 

the IRS’s programs and operations primarily address statutorily mandated reviews and 

high-risk challenges the IRS faces. 

In FY 2021 - 2022, OA publicly released many reports on critical areas of IRS operations, 

including issuance and reconciliation of Recovery Rebate Credits and Advanced Child Tax 

Credit payments, tax processing backlogs, customer service, cyber security, and tax compliance. 

These audits, along with the accompanying recommendations, have the potential to significantly 

benefit millions of taxpayers and improve IRS service and enforcement efforts. Annually, 

TIGTA OA expends significant resources evaluating the IRS efforts to sustain and improve 

taxpayer compliance because small declines in compliance cost the Nation billions of dollars in 

lost revenue and further exacerbate the tax gap. Since 2020, the IRS has experienced significant 

delays in processing taxpayer correspondence and meeting customer service demands due to 

shortfalls in hiring personnel for the Submission Processing functions. These delays negatively 

impact taxpayers and could potentially affect voluntary compliance. Additionally, the 

complexity and changes in the international tax environment require the IRS to collaborate with 

tax administrations of foreign countries to enforce compliance. The IRS must balance tax 

compliance activities to enforce with upholding taxpayer rights. 

IRS systems withstand approximately 1.4 billion cyberattacks annually (including denial-ofservice attacks, unsuccessful intrusion attempts, probes or scans, and other unauthorized 

connectivity attempts).3

 Many of these attempts are sophisticated in nature or represent 

advanced, persistent threats. TIGTA’s OA plays an important role in assessing the actions taken 

by the IRS to protect its infrastructure in an effort to reduce the risk of internal and external 

attacks on IRS assets that could potentially expose taxpayer data and information. TIGTA’s OA 

plans to evaluate IRS efforts to modernize its operations in addition to assessing whether user 

authentication for online services is secure to prevent the unauthorized disclosure of taxpayer 

information. 

Lastly, the IRS has issued billions of dollars in recovery rebates and child tax credits over the last 

two years, which increases the likelihood of scams and identity theft. TIGTA OA will continue 

to review IRS efforts to prevent identity theft and ensure only eligible taxpayers receive accurate 

benefits. 

The IRS’s implementation of audit recommendations results in: 

 Cost savings; 

 Increased or protected revenue; 

 Protection of taxpayers’ rights and entitlements; and 

 More efficient use of resources. 

 

3

 Written testimony of Charles Rettig, Commissioner, IRS, On the IRS Budget and Current Operations, Senate 

Appropriations Committee, Subcommittee on Financial Services and General Government (May 15, 2019). 
TIGTA - 10 

In FY 2021, TIGTA OA issued 81 final audit reports and other products, that: 

 Addressed a variety of high-risk issues, such as the IRS’s administration of tax law changes 

including provisions in the Tax Cuts and Jobs Act, Coronavirus Aid, Relief, and Economic 

Security (CARES) Act, Consolidated Appropriations Act of 2021 and the American Rescue 

Plan Act of 2021, enhancement of security of taxpayer data, improvement of tax reporting 

and payment compliance to reduce the tax gap, improvement of customer service and 

taxpayer experience, efforts to increase international tax compliance and reduce fraudulent 

claims and improper payments; 

 Reported potential financial benefits totaling approximately $16 billion, including increased 

and/or protected revenue in the amount of $11 billion; and cost savings of $4.9 billion; 

 Affected approximately 5.2 million taxpayer accounts; and 

 Returned an estimated $241 for every dollar invested in TIGTA’s audit program. 

Description of Performance 

TIGTA uses the following performance measures to gauge the success of its audit program: 

 Percentage of Audit Products Delivered When Promised to Stakeholders. 

TIGTA’s products will have a more significant impact if they are delivered when needed to 

support congressional and IRS decision-making. To determine whether products are timely, 

TIGTA tracks the percentage of products that are delivered on or before the date promised 

(contract date). At the end of FY 2021, the actual Percentage of Audit Products Delivered When 

Promised to Stakeholders was 93 percent, which exceeded the full-year target of 70 percent. 

TIGTA exceeded this target as a result of ongoing supervisory monitoring of the execution of 

audits to ensure timely delivery of audit products to stakeholders. 

 Percentage of New Audit Reports with Recommendations to Improve Tax Administration. 

This measure includes the number of new audit reports issued during the reporting period that 

contain recommendations by TIGTA to improve the economy and efficiency of IRS programs. 

These recommendations enhance management practices and procedures, offer ways to better use 

agency funds, and question actual expenditures. To determine the percentage of new reports 

with recommendations to improve tax administration, TIGTA compares the total number of new 

audit reports issued to IRS management during the reporting period that contained 

recommendations for IRS action to the total number of all new audit reports issued to IRS 

management during the reporting period. 

 
TIGTA - 11 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual* Annualized 

CR Request 

Appropriated Resources $100,819 $107,501 $106,866 $106,143 $108,158 $105,399 $114,918 

Reimbursable Resources $357 $414 $797 $536 $498 $700 $700 

Unobligated Balances Brought Forward $2,392 $3,326 $3,053 $3,104 $2,340 $925 $943 

Budget Activity Total $103,568 $111,241 $110,716 $109,783 $110,996 $107,024 $116,561 

Full-time Equivalents (FTE) 464 438 415 403 409 419 419 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative or 

Law Enforcement Action 

90 89 91 92 90 85 85 79 

*Excludes ARP Act of 2021 obligations. 

Investigations Budget and Performance 

($114,918,000 from direct appropriations, $700,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration. TIGTA 

accomplishes this mission through the investigative work conducted by the Office of 

Investigations (OI). Through its investigative programs, OI protects the integrity of the IRS 

and its ability to collect revenue owed to the Federal Government by investigating violations 

of criminal and civil law that adversely affect Federal tax administration, as well as 

administrative misconduct by IRS employees, which undermines the integrity of the Nation’s 

voluntary tax system. 

TIGTA’s OI uses a performance model that focuses on three primary areas of investigative 

responsibility: 

 Employee integrity;

 Employee and infrastructure security; and

 External attempts to corrupt tax administration.

The performance model uses a ratio of those investigations that have the greatest impact on 

IRS operations or the protection of Federal tax administration to the total number of 

investigations conducted. These performance measures guide OI’s activities and 

demonstrate the value of TIGTA’s investigative accomplishments to its external 

stakeholders. 

Using investigative activities from FY 2020 and FY 2021 as a baseline, OI projects that it 

will receive approximately 7,000 complaints, open 2,600 investigations, close 2,500 

investigations, and obtain approximately 125 criminal prosecutions in FY 2023. TIGTA’s 

OI conducts investigations with the intent of securing an actionable outcome, such as a 

clearance letter, or a criminal, civil, or administrative action. However, not all 

investigations result in an actionable outcome due to numerous, uncontrollable variables. 

Based on the total investigative hours logged in 2021, OI invested an average of 290.9 hours 

to successfully generate an actionable outcome. 
TIGTA - 12 

TIGTA’s OI expects employee integrity investigations to increase in FY 2023 to preCoronavirus pandemic levels as IRS increases staff levels and employees return to office 

workplaces. Examples of TIGTA investigations into employee misconduct during FY 2021 

include an IRS employee sentenced to 36 months imprisonment for obstructing the 

administration of an IRS criminal investigation. In another case, an IRS employee was 

sentenced to 30 months imprisonment for wire fraud and identity theft after using items 

obtained through an investigation to create a false identity and open a corporate entity.4

TIGTA has a statutory responsibility to identify, investigate, and respond to threats against 

IRS personnel and physical infrastructure. From FY 2012 through FY 2021, TIGTA 

processed more than 18,667 threat-related complaints and investigated more than 10,940 

threats against IRS employees. In FY 2021, TIGTA responded to 16 percent more threatrelated incidents than in FY 2020. For example, in FY 2021 a threat-related investigation 

involved the arrest of a man for assault on a Federal agent and felony possession of a 

firearm. The man fired a weapon at IRS Federal agents who were attempting to serve a 

subpoena at his residence. 

TIGTA investigates criminal activity originating outside the IRS, such as impersonation of an 

IRS employee, attempted bribery of IRS employees, international cybercrime and identity 

theft, and procurement fraud. Since March 2020, TIGTA has seen an increase in external 

investigative activity resulting from the CARES Act and the ARP Act. TIGTA has oversight 

over the IRS’s issuance of over $800 billion in Economic Impact Payments (EIP) in addition 

to the Paycheck Protection Program (PPP), Emergency Impact Disaster Loans, Recovery 

Rebates, and Payroll Protection Plan Loans through the CARES Act and ARP Act. During 

FY 2021, these types of cases represented 27 percent of OI’s investigative work hours, an 

increase of 15 percent from FY 2020. From March 2020 to February 2022, these 

investigative efforts resulted in the initiation of 876 investigations, 301 indictments, 72 

convictions, sentencing of over 149 years of incarceration, and more than $39 million in 

monetary recoveries and penalties. 

An example of OI’s investigations into criminal activity outside of the IRS is the fraudulent 

use of the IRS’s Modernized Internet Employer Identification Number (MODIEIN) system 

to obtain CARES Act funding for fictitious businesses. Individuals used the EINs and other 

falsified IRS tax forms in order to submit applications to financial institutions to obtain PPP 

funding. In one example, a group of 22 coconspirators obtained EINs from the IRS and 

submitted loan applications, including multiple false documents, to obtain approximately $4 

million through the PPP. 

The manipulation and unauthorized access of IRS systems has been an increasing focus for 

TIGTA. For example, in FY 2022, an individual pled guilty to wire fraud and aggravated 

identity theft after he was identified as fraudulently accessing the IRS’s eAuthentication Online 

Taxpayer System to unlawfully obtain personally identifiable information of taxpayers. 

The individual then filed fraudulent tax returns with the IRS using the unlawfully obtained 

4

 The facts in the summarized cases on this page come from court documents of the respective jurisdiction. 
TIGTA - 13 

information. 

Investigations into telephonic IRS impersonation remain a high-priority area that resulted in 284 

individuals charged in Federal court by the end of FY 2021. For example, an Indian-based Voice 

over Internet Protocol provider and its director were indicted in a first-of-its-kind indictment for 

conspiracy to commit wire fraud and wire fraud in connection with facilitating tens of millions of 

scam calls to American taxpayers on behalf of India-based phone scammers, causing a financial 

loss of more than $20 million. In FY 2021, TIGTA’s investigative efforts resulted in more than 

$53.8 million in court ordered fines, penalties, and restitution. 

Description of Performance 

TIGTA uses the following performance measures to gauge the success of its investigations 

program: 

 Percentage of Closed Investigations Resulting in a Criminal, Administrative, or Law 

Enforcement Action. 

At the end of FY 2021, performance of this measure was 90 percent, which exceeded the 

full-year target of 85 percent. OI exceeded the FY 2021 target as a result of the diligent work 

of experienced executives, managers, and special agents. 

Starting in FY 2022, TIGTA’s OI will transition to a performance model that places greater 

emphasis on complex cases. These cases are often lengthier and require more time-intensive 

engagement from OI staff. This change in prioritization may result in a reduced actual for the 

Percentage of Closed Investigations Resulting in a Criminal, Administrative, or Law 

Enforcement Action performance measure. Therefore, the FY 2023 target for this measure is 

reduced to 79 percent. The target may be revised at a later date as the results of the revised 

performance model are evaluated. TIGTA’s OI will continue to provide the IRS with the 

investigative coverage and information necessary to improve the integrity of IRS operations 

and mitigate threats against its employees, facilities, and data infrastructure. In addition, OI 

will maintain highly trained personnel available to address the significant vulnerabilities of 

taxpayer and IRS data and effectively combat compromises of IRS computer systems in the 

expanding digital environment of Federal tax administration, all of which contribute to 

maintaining the public’s confidence in the safe, fair, and effective administration of the 

Federal tax system. 

Inspections and Evaluations 

TIGTA’s Office of Inspections and Evaluations (I&E) identifies opportunities for 

improvement in IRS and TIGTA programs by performing inspections and evaluations that 

report timely, useful, and reliable information to decision makers and stakeholders. 

Inspections are intended to provide factual and analytical information, monitor compliance, 

measure performance, assess the effectiveness and efficiency of programs and operations, share 

best practices, and inquire into allegations of waste, fraud, abuse and mismanagement. 

Evaluations are intended to provide in-depth reviews of specific management issues, policies and 
TIGTA - 14 

programs, address Government-wide or multi-agency issues, and develop recommendations to 

streamline operations, enhance data quality, and minimize inefficient and ineffective procedures. 

In FY 2021, I&E produced five external reports: 

 Health and Safety Measures at Select IRS Facilities; 

 Health and Safety Measures at Select Taxpayer Assistance Centers; 

 Prior Recommendation Implementation; 

 IRS’s Oversight of Reported Sexual Harassment Allegations; and 

 IRS’s Pandemic Telework Program. 

C – Changes in Performance Measures 

TIGTA has no changes in performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

In addition to the funds requested in TIGTA’s Congressional Justification, funds for TIGTA’s IT 

operations are also requested through the Treasury Department Cybersecurity Enhancement 

Account. Please see the FY 2023 Cybersecurity Enhancement Account Congressional 

Justification for further information regarding the following initiative: 

Data Logging and Retention, +$700,000 / +0 FTE 

This investment supports TIGTA’s plans to meet EO 14028, “Improving the Nation’s 

Cybersecurity” and subsequent OMB M-21-31, “Improving the Federal Government’s 

Investigative and Remediation Capabilities Related to Cybersecurity Incidents.” TIGTA will 

continue strengthening and operating its enterprise logging solution to meet current and future 

demands to: 

 Collect security event and system logs in real time for threat detection and compliance use 

cases; 

 Analyze logs in real time and detect attacks and other activities of interest; 

 Investigate incidents to determine their potential severity and impact on a business; 

 Report on these activities; and 

 Store relevant events and logs. 

The investment will also enable TIGTA to perform the data collection needed to meet the 

requirements and help TIGTA to automate the identification of unauthorized disclosure or access 

(UNAX) while also vastly improving the cyber detection capabilities, as well as meeting the ongoing demands for improved efficiencies around cyber incident detection and response. The 

request will fund 12 months and operations is contingent on continued funding; however, this 

will only fund one of the many unfunded cybersecurity demands for TIGTA. 

Technology Investments – TIGTA has no major information technology investments. A 

summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: investments.aspxhttps://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx.


Department of the Treasury 

Office of the Special Inspector 

General for TARP 

(SIGTARP) 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
SIGTARP - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .......................................................................................... 5

1.2 – Budget Adjustments Table ................................................................................................. 5

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

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

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

E – Hiring Authority Proposal .................................................................................................... 7

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

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Investigations Resources and Measures .......................................................................... 9

Investigations Budget and Performance ................................................................................... 10

2.1.2 – Audit Resources and Measures ..................................................................................... 10

Audit Budget and Performance ................................................................................................. 10

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments ....................................................................................... 10

 
SIGTARP - 3 

Section I – Budget Request 

A – Mission Statement 

The mission of the Office of the Special Inspector General for the Troubled Asset Relief 

Program (SIGTARP) is to prevent and detect fraud, waste, and abuse in the more than $442 

billion appropriated by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) 

(P.L. 110-343) and $2 billion appropriated through the Consolidated Appropriations Act of 2016, 

and to promote economy, efficiency, effectiveness, and accountability in these economic stability 

programs. 

SIGTARP received an initial appropriation of $50 million in permanent, indefinite budget 

authority in EESA. The Public-Private Investment Program Improvement and Oversight Act of 

2009 (12 U.S.C. 5231a) provided $15 million in supplemental funding. Since 2010, SIGTARP 

has received annual appropriations to fund its operations. 

B – Summary of the Request 

The Fiscal Year (FY) 2023 Budget requests $9 million, a reduction of 47 percent from the 

FY 2022 President’s budget and a 53 percent reduction from SIGTARP’s FY 2021 enacted level. 

The proposed budget is intended to fund Congressionally mandated independent oversight of 

EESA programs through SIGTARP investigations (85 percent of request) and audits (15 

percent). 

SIGTARP prioritizes oversight of the ongoing EESA’s Home Affordable Modification Program 

(HAMP) which provides foreclosure relief to more than 600,000 homeowners and will remain 

open beyond FY 2023. Treasury remains obligated/committed to pay $1.0 billion in HAMP to 

keep these homeowners in their homes. In FY 2020 - 2021, Treasury distributed $919.5 million 

under HAMP to bank and non-bank mortgage servicers for the benefit of servicers, investors, 

and borrowers including large banks (i.e., $91.7 million to Wells Fargo, $51.4 million to JP 

Morgan Chase, $49.4 million to Bank of America, and $17.7 million to Citigroup), and large 

non-banks (i.e., $233.6 million to Ocwen Financial, $117.7 million to Nationstar). 

Despite HAMP’s existence since 2009, mortgage servicers continue to be the subject of 

enforcement actions related to HAMP. On September 9, 2021, the Office of the Comptroller of 

the Currency (OCC) fined Wells Fargo $250 million and issued a cease-and-desist order for 

engaging in unsafe and unsound practices related to material deficiencies in decisions related to 

loss mitigation, including HAMP. The OCC found the bank’s inadequate controls, insufficient 

independent oversight, and ineffective governance related to loss mitigation activities have 

caused the bank’s failure to timely detect, prevent, and quantify inaccurate loan modification 

decisions and impaired the bank’s ability to fully and timely remediate harmed customers. On 

December 

7, 2020, Nationstar was the subject of an $86 million enforcement action brought by 51 attorneys 

general and the Consumer Finance Protection Bureau for violating consumer protections laws 

and harming 40,000 homeowners, including HAMP homeowners. 

SIGTARP’s work has led to recoveries for the government and other victims of $11.3 billion – a 

29 times total return on investment (ROI) from SIGTARP’s cumulative annual budgets. 
SIGTARP - 4 

In FY 2021, $222 million was recovered as a result of SIGTARP investigations, exceeding 

SIGTARP’s FY 2021 $19 million enacted budget by nearly 12 times. 

SIGTARP Investigations: $7.85 million (85 percent of FY 2023 budget request)

SIGTARP’s law enforcement work has resulted in: (1) criminal prosecutions of 465 defendants 

(315 sentenced to prison, including 74 bankers); and (2) civil actions against 25 large Wall Street 

institutions and other entities. 

SIGTARP’s top law enforcement priority is to investigate and bring justice to unlawful conduct 

by financial institutions in HAMP. Our nation cannot have a resilient housing market run by 

financial institutions that violate the law. SIGTARP caught and investigated 121 foreclosure 

rescue scammers who were convicted after DOJ prosecutions. These scammers victimized 

nearly 31,000 homeowners seeking foreclosure relief through HAMP. For example, in 2021, 

three men were sentenced to prison, each for multimillion dollar scams against homeowners 

related to HAMP. A California man was sentenced to more than four years in prison in a 

nationwide $2.3 million fraud scam, under the names HOPE Services and HAMP Services, that 

victimized more than 400 homeowners related to HAMP. He was the fifth defendant sentenced 

to prison for this scam. The owner of Homesafe America was convicted for a $2.3 million scam 

against 500 homeowners related to HAMP. Additionally, a New York man was sentenced to six 

months in prison in a $9.4 million HAMP-related scam of New York homeowners. SIGTARP 

has additional open, confidential cases related to HAMP, including cases being worked in 

partnership with the Department of Justice. 

SIGTARP also has open investigations in the Hardest Hit Fund, which we are actively working 

with prosecutors. This includes investigations of fraud and environmental/safety crimes such as 

illegal dumping, asbestos exposure, or contaminated dirt used in demolitions of blighted 

properties. SIGTARP has a long-standing record of finding fraud, environmental/safety crimes, 

and corruption in this program. For example, in FY 2021, an Illinois-based demolition 

contractor was sentenced and ordered to pay restitution for defrauding HHF in connection with 

demolitions in Hammond, Indiana. SIGTARP’s investigation revealed that the contractor had 

improperly disposed of demolition debris, and had submitted false disposal, dumping, and fill 

dirt documentation to the City of Hammond. In addition, several individuals were prosecuted for 

defrauding HHF programs for unemployed homeowners. 

SIGTARP also continues to support the Department of Justice in long-standing prosecutions 

related to TARP banks. For example, in 2021, the former Chief Executive Officer (CEO) of a 

TARP-recipient credit union was criminally charged and convicted of making a false statement 

to Treasury in connection with TARP. The CEO did not disclose to Treasury that the credit 

union had filed false call reports that reported millions of dollars of fictitious income to its 

federal regulator. SIGTARP’s investigations have resulted in criminal prosecutions of 108 

bankers and 100 of their co-conspirators. Courts sentenced 74 of the bankers to prison, along 

with 69 of their co-conspirators. 

SIGTARP Audit: $1.15 million (15 percent of FY 2023 budget request)

SIGTARP’s audits ensure that EESA programs are operating effectively and efficiently, that 

federal dollars are used as Congress intended, and that the government does not pay more for 

EESA than is necessary. In FY 2023, SIGTARP will prioritize identifying risk or vulnerabilities 
SIGTARP - 5 

in HAMP that could hurt homeowners and Treasury’s goal for HAMP to provide affordable and 

sustainable housing. In August 2021, SIGTARP found that Treasury reduced its oversight of 

financial institutions that are HAMP servicers, and that servicers have violated HAMP rules by 

wrongfully cancelling homeowners out of HAMP, labelling homeowners as delinquent, and 

setting mortgage payments too high, along with other violations harming homeowners. In FY 

2021, SIGTARP also questioned $13 million in the HHF blight program paid to contractors in 

Michigan despite missing required supporting cost documentation for clean backfill dirt to fill 

the demolition hole. SIGTARP recommended that Treasury recoup any excessive payments. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

Appropriated 

Resources 

FY 2021 

Operating Plan 

FY 2022 FY 2023 FY 2022 to FY 2023 

Annualized CR Request % Change 

New Appropriated 

Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Investigations 65 $16,550 59 $16,150 40 $7,850 (19) ($8,300) -32.2% -51.4% 

Audits 9 $2,450 9 $2,850 5 $1,150 (4) ($1,700) -44.4% -59.6% 

Subtotal New 

Appropriated 

Resources 

74 $19,000 68 $19,000 45 $9,000 (23) ($10,000) -33.8% -52.6% 

Other Resources* Resources from No 

Year Account 0 $3,000 0 $3,000 0 $7,500 0 $4,500 0 150.0% 

Subtotal Other 

Resources 0 $3,000 0 $3,000 0 $7,500 0 $4,500 0.0% 150.0% 

Total Budgetary 

Resources 74 $22,000 68 $22,000 45 $16,500 (23) ($5,500) NA -25.0% 

FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

•Other Resources: Amounts assume SIGTARP’s full ability to use no-year funds. 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

Special Inspector General for TARP FTE Amount 

FY 2022 Annualized CR 68 $19,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 

 

537 

Pay Annualization (2.7% average pay raise) 62 

Pay Raise (2023 4.6% average pay raise) 

 

319 

Non-Pay 156 

Subtotal Changes to Base 0 

 

537 

FY 2023 Current Services 68 $19,537 

Program Changes: 

Program Decreases: 0 (10,537) 

Reduction in FTE (23) (2,677) 

Efficiency Savings 0 (360) 

Realignment from Annual to No-Year Funding 0 (7,500) 

Subtotal Program Changes 0 ($10,537) 

FY 2023 President's Budget Request 45 $9,000 
SIGTARP - 6 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................... +$537,000 / +0 FTE 

Pay Annualization (2.7%) +$62,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6%) +$319,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise for January 2023. 

Non-Pay +$156,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts rent, supplies, and 

equipment. 

Program Decreases ................................................................................... -$10,537,000 /-23 FTE 

Staff Reduction -$2,677,000 / -23 FTE 

Reduction in SIGTARP staff levels to 45 FTE. The reduction of FTE is part of the orderly wind 

down of SIGTARP. 

Efficiency Savings -$360,000/ -0 FTE 

Savings of $360,000 is the effect of reduction of FTE on Non-Personnel costs (training, travel, 

support services, etc.) 

Realignment from Annual to No-Year Funding -$7,500,000/ -0 FTE 

SIGTARP will fund a portion of its operations from its no-year account. 

1.3 – Object Classification (Schedule O) Obligations

 

Dollars in Thousands

Object Classification

FY 2021

Actual Obligations

FY 2022

Estimated 

Obligations

FY 2023

Estimated Obligations

11.1 - Full-time permanent 6,867 7,250 4,250

11.3 - Other than full-time permanent 2,390 2,250 1,450

11.5 - Other personnel compensation 2,657 3,000 1,700

11.9 - Personnel Compensation (Total) 11,914 12,500 7,400

12.0 - Personnel benefits 2,596 2,450 1,700

Total Personnel and Compensation Benefits $14,510 $14,950 $9,100

21.0 - Travel and transportation of persons 40 30 25

23.1 - Rental payments to GSA 1,250 800 800

23.3 - Communication, utilities, and misc charges 83 40 25

25.1 - Advisory and assistance services 146 20 10

25.2 - Other services 65 5

25.3 - Other goods and services from Federal sources 4,849 3,079 6,496

25.6 - Medical care 44 2

25.7 - Operation and maintenance of equip 2 2 2

26.0 - Supplies and materials 90 60 30

31.0 - Equipment 20 10 5

Total Non-Personnel $6,490 $4,050 $7,400

Budgetary Resources $21,000 $19,000 $16,500

FTE 70 68 45
SIGTARP - 7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

SPECIAL INSPECTOR GENERAL FOR THE 

TROUBLED ASSET RELIEF PROGRAM 

Federal funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special 

Inspector General in carrying out the provisions of 

the Emergency Economic Stabilization Act of 2008 

(Public law 110-343), $9,000,000. 

Note.--A full-year 2022 appropriation for this 

account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this 

account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-

43, as amended). The amounts included for 2022 

reflect the annualized level provided by the 

continuing resolution.

E – Hiring Authority Proposal 

Hiring Authority Similar to Other Special IGs 

While SIGTARP is reducing its staffing, sometimes it suffers attrition in a critical role. 

SIGTARP is requesting additional special hiring authority to enable SIGTARP to backfill critical 

vacancies with qualified personnel. This authority is similar to the special authority available to 

the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), pursuant to 

5 U.S.C. 3161. 

Proposed Language 

‘Sec. _________ 

Section 121 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5231) is amended 

in subsection (e)(1)(B)(ii) by striking “subparagraph” and all that follows through the period at 

the end and inserting “subparagraph, the Special Inspector General may not make any 

appointment that exceeds 18 months or that extends beyond the date on which the Special 

Inspector General terminates under subsection (k).”.’
SIGTARP - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, SIGTARP is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget.

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, SIGTARP’s Alignment with Treasury’s Strategic Goals and Objectives are 

as follows: 

Goal 1: Promote Equitable Economic Growth and Recovery 

Objective 1.3 Economically Resilient Communities: Promote equable financial recovery and 

growth through support and flow of capital to small business, household, and underserved 

communities. 

 SIGTARP investigates environmental/safety crimes (e.g., asbestos/lead exposure, 

contaminated dirt, illegal dumping), corruption, and fraud in HHF blight that hurts 

Treasury’s goal of economically resilient communities as the blight program operated in 

underserved communities. 

 SIGTARP’s HAMP investigations and audits combats scams against homeowners and 

identifies violations of the law and/or HAMP rules that hurt homeowners. 

Objective 1.4 Resilient Housing Market: Promote a stable and resilient housing market that 

expands fair and equable access to homeownership and affordable rental opportunities and 

protects taxpayers. 

 HAMP remains critical to the economic growth and recovery of more than 600,000 

Americans. HAMP provides fair access to homeownership through loss mitigation by 

modifying mortgages to be affordable and sustainable. 

 SIGTARP’s top law enforcement priority is to investigate and bring justice to unlawful 

conduct related to HAMP. Our nation cannot have a resilient housing market run by financial 

institutions that violate the law. SIGTARP also continues to support prosecution of HAMPrelated scams. 

 SIGTARP’s top audit priority is to identify risk/vulnerabilities in HAMP that would hurt 

homeowners and Treasury’s goal for HAMP to provide affordable and sustainable 

homeownership. 

Goal 2: Enhance National Security 

SIGTARP aligns with Objective 2.4: Transparency in the Financial System. 

 Money laundering is a financial system vulnerability and can threaten national security. 

SIGTARP has ongoing criminal investigations of money laundering, including in the HHF 

blight program and TARP banks (i.e., Operation Phantom Bank, which led to 25 individuals 

being indicted for money laundering, including through TARP recipient, Saigon Bank, to 

finance international narcotics trafficking for the Sinaloa Drug Cartel). 

 
SIGTARP - 9 

Goal 3: Promote Financial Stability 

SIGTARP aligns with Objective 3.1: Financial System Vulnerabilities. 

 SIGTARP’s investigations of bank and non-bank financial institutions in HAMP as well as 

TARP banks uncover financial system vulnerabilities. 

Goal 4: Combating Climate Change 

 SIGTARP’s investigations of environmental crimes in HHF blight are related to Treasury’s 

goal of combating climate change. 

Goal 5: Modernize Treasury Operations 

SIGTARP aligns with Objectives 5.1: Recruit/Retain Diverse & Inclusive Workforce, Objective 

5.2: Future Work Routines, Objective 5.3: Better Use of Data and Objective 5.4: Customer 

Experience Practices. 

 SIGTARP has a proven record of recruiting, retaining, and promoting a diverse and inclusive 

workforce. 

 SIGTARP has decreased its workforce, footprint and non-government spending, while 

maximizing telework for future work. 

 SIGTARP uses data to prioritize resources and determine which cases to pursue that will 

bring recoveries for the government and other victims. SIGTARP developed an intelligence 

and data-based method to find crime. 

 SIGTARP leverages task forces and other partnerships. SIGTARP has achieved a lifetime 

return on investment (ROI) of 29 times its cumulative annual budgets. Every year, recoveries 

have exceeded SIGTARP’s enacted budget. 

B – Budget and Performance by Budget Activity 

2.1.1 – Investigations Resources and Measures 

Dollars in Thousands 

 Resource Level 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $32,103 $28,855 $19,550 $18,920 $16,550 $16,150 $7,850 

Resources from No Year 

Account $82 $1,311 $1,000 $1,000 $3,000 $3,000 $7,500 

Budget Activity Total $32,185 $30,166 $20,550 $19,920 $19,550 $19,150 $15,350 

Full-time Equivalents (FTE) 114 106 87 72 65 59 40 

 

Performance Measure 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2021 

Target 

FY 2022 

Target 

FY 2023 

Target 

% of Cases Accepted for 

Consideration by Civil or 

Criminal Authorities 

Resulting in a Positive Final 

Outcome 

81 79 77 77 77 77 70 50 

% of Cases Presented to 

Civil or Criminal 

Authorities within Eight 

Months of Being Opened 

80 85 75 75 71 71 65 50 

% of Cases That are Joint 

Agency/Task Force 

Investigations 

75 78 76 86 90 90 70 60 

Key: Disc - Discontinue; B - Baseline 
SIGTARP - 10 

Investigations Budget and Performance

($7,850,000 from discretionary appropriations, $7,500,000 from other resources) 

SIGTARP met all metric targets in FY 2021. The “Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities Resulting in a Positive Final Outcome” in 

FY 2021 was 77 percent; the “Percentage of Cases Presented to Civil or Criminal Authorities 

within Eight Months of the Case Being Opened” was 71 percent; the “Percentage of Cases that 

are Joint Agency/Task Force Investigations” with other law enforcement agencies was 90 

percent. 

2.1.2 – Audit Resources and Measures 

Dollars in Thousands 

 Resource Level 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $7,530 $5,092 $3,450 $3,080 $2,450 $2,850 $1,150 

Resources from No Year Account 0 $231 0 0 0 0 0 

Budget Activity Total $7,530 $5,323 $3,450 $3,080 $2,450 $2,850 $1,150 

Full-time Equivalents (FTE) 27 25 9 8 9 9 5 

 

Performance Measure 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2021 

Target 

FY 2022 

Target 

FY 2023 

Target 

Number of Completed Audit Products 

Identifying Waste, Abuse, Mismanagement, 

Inefficiencies, or Referrals to Investigations 

Division (units) 

N/A 6 4 4 3 3 3 2 

Key: Disc - Discontinue; B - Baseline 

Audit Budget and Performance

($1,150,000 from discretionary appropriations) 

SIGTARP met its FY 2021 audit performance target with three products. 

C – Changes in Performance Measures 

SIGTARP has no changes in performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

SIGTARP has no capital investments. Capital investments that support SIGTARP are included in 

the Departmental Offices’ plan. A summary of capital investments, including major information 

technology and non-technology investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. This website also contains a digital copy of this document. 


 Department of the Treasury 

Special Inspector General for 

Pandemic Recovery (SIGPR) 

 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
SIGPR - 2 

Contents

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

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

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

Appropriations Detail .................................................................................................................. 4

1.1 – Budget Adjustments ...................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.2 – Object Classification (Schedule O) Obligations ........................................................... 5

D –Appropriations Language and Explanation of Changes ....................................................... 6

E – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

Investigations Budget and Performance ................................................................................... 10

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments ....................................................................................... 12

 
SIGPR - 3 

Section I – Budget Request 

A – Mission Statement 

To ensure that the American taxpayer gets the best return on investment by promoting the 

economy, efficiency, effectiveness, and integrity of Coronavirus Aid, Relief, and Economic 

Security (CARES) Act1 funds and programs. 

B – Summary of the Request 

The Special Inspector General for Pandemic Recovery (SIGPR) received an initial appropriation 

of $25 million derived from amounts made available under Section 4027 of the CARES Act in 

March 2020. The Budget proposes appropriations language to provide SIGPR an additional $25 

million in FY 2023 available until 2025. This funding is critical in ensuring that SIGPR's audit 

and investigative professionals perform at optimal levels with the necessary resources to protect 

the integrity of CARES Act funds. 

SIGPR, an independent office within the Department of the Treasury (Treasury), was established 

by section 4018 of the CARES Act in March 2020. Mr. Brian Miller was confirmed by the U.S. 

Senate in June 2020 as the Special Inspector General for Pandemic Recovery. SIGPR continues to 

lead the way by providing oversight of Treasury activities under the CARES Act by conducting 

independent audits and investigations necessary to prevent and detect waste, fraud, and abuse in 

programs and operations. SIGPR’s reduced CARES programs jurisdiction currently includes two 

significant programs, the Direct Loan Program (loans to air carriers and national security 

businesses consisting of 35 loans, 35 borrowers for $2.7B), and the Main Street Lending Program 

(loans to small and medium-sized for-profit businesses and nonprofit organizations consisting of 

319 lenders, 1,830 loans for $17.5B). SIGPR conducts audits of these Treasury programs, 

investigates fraud by recipients of CARES Act funds, and makes recommendations designed to 

improve the administration of pandemic recovery programs. SIGPR also conducts criminal 

investigations into allegations of waste, fraud, and abuse while helping to ensure that SIGPR 

protects and secures taxpayer data. 

SIGPR’s Fiscal Year (FY) 2023 Budget request of $25,000,000 will enable SIGPR to conduct 

critical audit, legal, investigative, and inspection and evaluation services to protect the integrity of 

the covered funds under the CARES Act. SIGPR’s FY 2021 Full-time equivalent (FTE) actuals 

equated to 35 (annualized FTE), reflecting the aggressive staffing build-up from 12 (September 

30, 2020) to 56 FTEs onboard by September 30, 2021. 

In accordance with the requirements of section 6(g)(1) of the Inspector General Act of 1978 (as 

amended),2

 SIGPR submits the following information in support of its appropriations request for 

FY 2023 operations: 

 The aggregate appropriated funds request for the operations of SIGPR is $25,000,000. 

 The portion of this amount needed for SIGPR training is $750,000, which satisfies all SIGPR 

training needs for FY 2023; and 

1

 Pub. L. 116-136, 134 Stat. 281 (2020). 

2

 5 U.S.C. app. 3 § 6(g)(1); cf. 15 U.S.C. § 9053(c)(1) (directing SIGPR to perform enumerated duties “in accordance 

with” the Inspector General Act of 1978). 
SIGPR - 4 

 The portion of this amount estimated in support the Council of Inspectors General on Integrity 

and Efficiency (CIGIE) is estimated to be $75,000. 

 Appropriations Detail 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Special Inspector General for Pandemic 

Recovery 0 $0 0 $0 66 $25,000 NA NA 

Subtotal New Appropriated Resources 0 $0 0 $0 66 $25,000 NA NA 

Other Resources 

Unobligated Balances from Prior Years 

Reimbursables 

35 

 0 

$11,100 

0 

38 

0 

$13,000 

25 

0 

0 

$0 

100 

-100% 

0 

NA 

N/A 

Subtotal Other Resources 35 $11,100 38 $13,000 0 $0 -100.0% NA 

Total Budgetary Resources 35 $11,100 38 $13,025 66 $25,100 73.7% 92.7% 

In FY 2020, an initial appropriation of $25M in no-year funds were provided to establish SIGPR under the CARES Act to expeditiously provide 

resources required for administrative, IT, general counsel, and external affairs to support the mission of SIGPR. 

FY 2021 and FY 2022 Other Resources and Full-time Equivalents (FTE) reflect actuals (55 positions in September 2021 and 51 positions as of 

March 2022) in spending of carryover funds from the initial FY 2020 $25M appropriation. 

The FY 2022 Budget included appropriations language to provide SIGPR an additional $25 million in unobligated 

mandatory funding from the CARES Act. 

1.1 – Budget Adjustments 

Dollars in Thousands 

 FTE Amount 

FY 2022 Operating Level 38 $13,000 

Changes to Base: 

2023 Maintaining Current Levels (MCLs): 0 $445 

Pay Annualization (2.7% average pay raise) $58 

Pay Raise (4.6% average pay raise) $299 

Non-Pay $88 

Other Adjustments: 

Adjustments to Meet Current Operating Levels 14 $7,000 

Subtotal Changes to Base 14 $7,445 

FY 2023 Current Services 52 $20,445 

Program Changes: 

Program Increases: 

Audits and Investigations 14 $4,555 

FY 2023 President's Budget Request 66 $25,000 

Note: The FY 2022 Operating Level reflects annualized FTE level based on available carryover 

resources. SIGPR did not receive funding through the 2022 Continuing Resolution (CR). 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................... +$445,000 / +0 FTE 

Pay Annualization (2.7%) +$58,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6%) +$299,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

 
SIGPR - 5 

Non-Pay +$88,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies and equipment. 

Other Adjustments..................................................................+7,000,000 / +14 FTE 

Adjustments to Meet Current Operating Levels +$7,000,000 / +14 FTE 

As of March 2022, SIGPR employed 52 FTE that are critical to SIGPR’s audits and investigations 

work. Funding is requested to maintain current operating levels and to avoid cuts to missioncritical FTEs.

Program Increases ................................................................+$4,555,000 / +14 FTE 

Audits and Investigations +$4,555,000 / +14 FTE 

Funding is requested for increased audits and investigations staffing to administer the expected 

significant increase in active case load and the expected DOJ prosecutorial team support 

requirements in FY 2023. Additionally, funds are requested for the acquisition of cutting-edge 

technology for predictive data analytics for adequate analysis of complex data to enhance detection 

of CARES Act funds waste, fraud, and abuse, while bringing lawbreakers to justice, seizing illgotten gains, and collecting court-ordered restitution. 

1.2 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 5,873 8,000 12,000 

11.9 - Personnel Compensation (Total) 5,873 8,000 12,000 

12.0 - Personnel benefits 1,578 2,000 3,000 

Total Personnel and Compensation Benefits $7,451 $10,000 $15,000 

23.1 - Rental payments to GSA 457 1,000 1,000 

25.3 - Other goods and services from Federal sources 3,215 2,000 6,000 

Total Non-Personnel $3,672 $3,000 $7,000 

Total Obligations $11 ,123 $13,000 $22,000 

 

Full-time Equivalents (FTE) 35 38 66 

In FY 2020, an initial appropriation of $25M in no-year funds were provided to establish SIGPR under the CARES Act to 

expeditiously provide resources required for administrative, IT, general counsel, and external affairs to support the mission of SIGPR. 

FY 2021 and FY 2022 Other Resources and Full-time Equivalents (FTE) reflect actuals (55 positions in September 2021 and 51positions 

as of March 2022) in spending of carryover funds from the initial FY 2020 $25M appropriation. 

The FY 2022 Budget included appropriations language to provide SIGPR an additional $25 million in unobligated 

mandatory funding from the CARES Act. 
SIGPR - 6 

D –Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

SPECIAL INSPECTOR GENERAL 

FOR PANDEMIC RECOVERY 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Office of the Special Inspector 

General for Pandemic Recovery in carrying out section 4018 of 

the Coronavirus Aid, Relief, and Economic Security Act of 2020 

(Public Law 116-136), in addition to amounts otherwise available 

for that purpose, $25,000,000 shall remain available until 

September 30, 2025. 

Note. —A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

SIGPR has no legislative proposals 
SIGPR - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

SIGPR, an independent office within the Department of the Treasury (Treasury), was established 

by section 4018 of the CARES Act in 2020. It provides oversight of Treasury activities under the 

CARES Act by conducting independent audits, investigations, and inspections and evaluations 

necessary to prevent and detect waste, fraud, abuse and mismanagement in programs and 

operations. SIGPR conducts audits of these Treasury programs, investigates fraud by recipients 

of CARES Act funds, and makes recommendations designed to improve the administration of 

section 4018 of the CARES Act. SIGPR also conducts criminal investigations into allegations of 

waste, fraud, abuse, and mismanagement while helping to ensure that SIGPR protects and secures 

taxpayer data. 

SIGPR’s budget activities and performance measures align to the new objectives in the Treasury 

FY 2022 – 2026 Strategic Plan. This work will include benchmarking performance and may result 

in changes to performance measures in the FY 2024 budget. 

Priority 1: Highly Impactful Work 

SIGPR offices of audit and investigations deliver timely, relevant, and highly impactful results. 

SIGPR’s objectives are to identify risk and weaknesses in program areas within SIGPR’s 

jurisdiction and recommend solutions that help mitigate fraud, waste, abuse, and mismanagement. 

In doing so, SIGPR employs risk-based approaches to prioritize and target audits and 

investigations in areas that provide the greatest impact and address the highest risks. 

SIGPR achieves these objectives through several strategies. SIGPR provides timely information, 

conclusions, and recommendations to SIGPR stakeholders for appropriate action and resolution. 

The offices of audit and investigations design and implement a comprehensive process that 

identifies, prioritizes, and assesses risks. Both offices develop and implement a process for 

proactive efforts that focus on high dollar loans or high impact projects. SIGPR leverages data 

analytics to identify meaningful indicators of fraud or misuse of CARES Act funds. Finally, 

SIGPR allocates resources to projects that address the highest risk and most vulnerable areas. 

Priority 2: Integrity in Oversight Work

SIGPR offices of audits and investigations delivers accurate, professional, independent, and 

actionable work products. 

SIGPR’s objective is to employ work processes that drive the timely completion of accurate, 

relevant, and impactful projects that adhere to professional standards. 

To do so, SIGPR develops policies, processes, and procedures to ensure that SIGPR work 

complies with the quality standards used in the federal inspector general community. The offices 

of audit and investigations ensure that projects and work products comply with professional 

standards, including, but not limited to the Government Auditing Standards and Quality Standards 

for Investigations. Finally, SIGPR participates in the CIGIE audit and investigation external peer 

review process. 
SIGPR - 8 

Priority 3: Inclusiveness and Innovation 

SIGPR promotes a diverse and inclusive culture that is innovative, high performing, and engaged. 

SIGPR’s objectives are to recruit and retain diverse, high-performing talent; to use innovative 

techniques and approaches that improve efficiency and effectiveness; and to promote transparent 

and timely communications and inclusiveness. 

SIGPR employs several strategies to do so. SIGPR develops a recruitment strategy that targets 

the knowledge and skills necessary to meet the mission critical needs of the organization and 

provides opportunities for continuous development and professional growth to meet current and 

future needs of the organization. SIGPR provides a work environment that promotes a positive 

work-life balance. SIGPR provides data analytic capabilities to support projects. SIGPR also 

collaborates with other agencies to leverage best practices, tools, data, and technologies. 

Priority 4: Effective Collaboration and Outreach

SIGPR will work with oversight partners and others to ensure efficiency, effectiveness, and 

transparency in SIGPR’s work. 

SIGPR’s objective is to leverage strategic communications to expand outreach to and 

collaboration with SIGPR’s stakeholders and partners, as well as to communicate SIGPR’s 

findings to Executive Branch leaders, Congress, and the public. 

To do so, SIGPR builds strong relationships with internal and external partners and stakeholders 

to identify emerging trends of fraud, waste, and abuse and share best practices. SIGPR develops a 

communications plan for outreach and collaboration and reports on SIGPR findings and activities. 

Finally, SIGPR tracks, analyzes, and reports on Department of the Treasury CARES Act relief. 

B – Budget and Performance by Budget Activity 

Audit Budget and Performance 

SIGPR’s Office of Audit (OA) conducts audits, reviews, and evaluations of loans, loan 

guarantees, and other investments made by Treasury under programs established under the 

CARES Act as well as Treasury’s management of programs established under the CARES Act. 

The Office of Audits takes an analytic approach to auditing CARES Act programs and has 

populated databases with CARES Act funding recipient information. The office is calculating 

individual risk scores to pinpoint where auditing resources can be best applied. The office also 

refers instances of suspected abuse to other SIGPR offices and outside entities. 

The most recent highlights include: 

 On September 23, 2021, SIGPR published its survey results for both approved and nonapproved Direct Loan Program applicants. The survey results are a compilation and summary 

of feedback that SIGPR requested from air passenger carriers and related businesses, air cargo 

carriers, and businesses critical to maintaining national security. SIGPR is using the survey 

responses to identify trends, both positive and negative, associated with the Direct Loan 

Program and identify program areas requiring additional oversight. 

 On September 29, 2021, SIGPR published its Fiscal Year 2022 audit plan 

(https://www.sigpr.gov/sites/sigpr/files/2021-10/SIGPR-A-21-004.pdf). To identify areas for 

audit SIGPR met with the Department of the Treasury’s Chief Recovery Officer and the 
SIGPR - 9 

White House’s team responsible for overseeing the implementation of the American Rescue 

Plan Act of 2021. As described above, we expanded the Audit of the Direct Loan Program to 

include separate attestation reviews of applicable submissions. SIGPR anticipates issuing the 

first of these attestation reviews by March 2022 and a final report on the overall Direct Loan 

Program by September 2023. SIGPR will deconflict and coordinate with the Office of 

Inspector General for the Board of Governors of the Federal Reserve System and other 

interested parties, as it refines the focus of its audits. 

 SIGPR is engaged in a joint effort with Department of Defense (DoD) Inspector General in an 

audit of national security designations for businesses to evaluate how the DoD determined that 

CARES Act business loans are critical to maintaining national security. 

 As part of SIGPR’s ongoing audit of the Direct Loan Program, SIGPR initiated a new set of 

attestation reviews of a select number of the 35 recipients’ application submissions to 

determine whether Treasury acquired all required documents from each applicant prior to 

approving the applicant for funding from the Direct Loan Program. 

 SIGPR began an audit of Treasury’s monitoring of borrowers’ compliance with the Direct 

Loan Program and held an entrance conference with Treasury on December 1, 2021. 

 On January 27, 2022, SIGPR published the results of its survey of the Main Street Lending 

Program’s lender banks and small and mid-sized businesses and nonprofit organization 

borrowers. Fifty-eight banks and 627 borrowers responded to the survey. Treasury invested 

more than $37.5 billion to support eligible loans. Both lenders and borrowers responded that 

the program enabled businesses to continue operating during the pandemic and that the 

program met their expectations. In addition, nearly all surveyed lenders and borrowers 

responded that they would be willing to participate in a similar program in the future. 

However, some borrowers and lenders indicated that they thought the process was complex 

and that loan eligibility requirements made it difficult to qualify for a loan. In addition, some 

borrowers commented that it was difficult to find banks that were willing to participate in the 

program. 

 In February 2022, SIGPR initiated an audit of direct loan recipients’ use of lobbying. Eleven 

businesses qualified for loans under this program based on their designations as businesses 

critical to national security. These loans totaled approximately $736 million. The purpose of 

the audit will be to determine how direct loan recipients obtained their designations as 

businesses critical to maintaining national security and determine what, if any role lobbying 

played in the loan process. 

The OI Data Analytics Division plays an integral role in SIGPR’s mission and success. In support 

of SIGPR’s mission, the data analytic platform uses sophisticated software and tools that process 

large quantities of data and analyze them to detect potential program fraud and misuse. The Data 

Analytics Division has developed a data library containing over 72 million rows of CARES Act 

funding information, drawn from both public and sensitive sources, and updates the library at 

least quarterly to maintain accurate and relevant information. This division also provides valuable 

forensic auditing services, including financial records analysis, in support of investigations 

conducted by the Office of Investigations (OI). OA is examining numerous requests for 

investigative support by OI. Additionally, the Data Analytics Division meets with the Pandemic 

Response Accountability Committee where several agencies discuss analytic methods and share 

databases. SIGPR uses two performance measures to gauge the success of its audit program: 
SIGPR - 10 

Description of Performance 

 Percentage of Audit Products Delivered to Stakeholders by the Due Date – SIGPR’s products 

will have a more significant impact if they are delivered when needed to support 

congressional and Treasury decision making. SIGPR baselined this measure in FY 2020 and 

met its target of 100 percent in FY 2021. The target is for 66 percent in both FY 2022 and 

FY 2023. 

To determine whether products are timely, SIGPR will track the percentage of audit products 

that are delivered on or before the established completion date. SIGPR has established a 

yearly completion target of 66.6 percent for the timely issuance of its audit products. 

However, as a newly established IG, SIGPR had only one issued audit product in FY 2020 to 

measure against this goal; this product was issued timely. 

 Percentage of Audit Products Subjected to Implementation Reviews - The SIGPR Office of 

Audits has established a process to review and verify the implementation actions taken by 

Treasury on SIGPR recommendations. This measure assesses SIGPR’s effect on improving 

Treasury’s accountability, operations, and services. SIGPR baselined this measure in FY 

2021 and has a target of 50 percent for both FY 2022 and FY 2023. 

As part of the audit process, Treasury provides a written response and action plan to address 

SIGPR audit recommendations. Audit resolution is achieved when SIGPR accepts Treasury’s 

time phased plan of action to implement each recommendation. To determine when a 

recommendation is implemented, SIGPR uses the Department of the Treasury’s Joint Audit 

Management Enterprise System (JAMES) to track the implementation status of audit 

recommendations. In addition, the Office of Audits will perform selective reviews of prior audit 

reports to verify whether appropriate corrective action as stated in the proposed action plan has 

been taken by management. SIGPR has established a target of conducting implementation 

reviews on 50 percent of all audit products listed as implemented in JAMES during the preceding 

fiscal year. 

In FY 2021, SIGPR conducted an implementation review on the audit product issued in the prior 

fiscal year and found that Treasury management had fully implemented the report’s 

recommendation. 

For FY 2022, the target for Percentage of Audit Products Delivered When Promised to 

Stakeholders will remain at 66.6 percent. The target for conducting Implementation Reviews will 

also remain at 50 percent. SIGPR believes that these targets are best attained through effective 

monitoring of ongoing audit work and essential communication with the Treasury regarding 

findings and the most appropriate recommendations for corrective action. Consequently, SIGPR’s 

Office of Audits will continue to accentuate the importance of these processes with Treasury 

leadership. 

Investigations Budget and Performance 

SIGPR’s Office of Investigations (OI) conducts criminal and civil investigations related to 

allegations of fraud, abuse, or misconduct involving CARES Act funds and programs within 

SIGPR’s jurisdiction. In addition, OI manages SIGPR’s hotline, which serves as a primary avenue 
SIGPR - 11 

for reporting fraud, waste, abuse, or misconduct. The office reviews and assesses complaints, 

develops proactive efforts in concert with SIGPR’s other components, and pursues investigations 

potentially involving millions of dollars in CARES Act-related funding. 

OI also continues coalition building and leveraging professional relationships with its colleagues 

across the Inspector General community, as well as working collaboratively with other Offices of 

Inspectors General, the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, 

the Department of Justice (DOJ) COIVD-19 Fraud Enforcement Task Force, Financial Crimes 

Enforcement Network, and other federal Offices of Inspectors General and law enforcement 

agencies to uncover large-scale and far-reaching fraud, waste, and abuse of CARES program 

funds. The office also supports the DOJ COVID-19 fraud enforcement task force, including 

involvement on subcommittees. 

The most recent highlights include: 

 Notable case trendline growth by steadily increasing quantity of investigative case load to a 

total of 28 open cases, in addition to 9 closed cases, and 23 preliminary inquiries converted to 

full investigations. This growth represented more than a 400 percent increase over a ninemonth period in FY 2021. 

 SIGPR’s proactive initiatives accounted for initiating more than 80 percent of its casework to 

date. 

 The Pandemic Response Accountability Committee (PRAC) extended its authority to 

investigate pandemic-related fraud to SIGPR through a Memorandum of Understanding, 

resulting in four SIGPR special agents assigned to the PRAC Fraud Task Force on a parttime basis. 

In less than one year after staffing OI with criminal investigators (special agents): 

 SIGPR obtained its first indictment, involving false statements to fraudulently obtain more 

than $1.6M in federal funds for business loans intended to relieve financial distress caused 

by the COVID-19 pandemic. 

 In early January 2022, a SIGPR-initiated investigation resulted in a guilty plea related to a 

loan obtained through the Main Street Lending Program, a lending facility established by 

the Federal Reserve Board and supported with Treasury’s investment in CARES Act funds. 

As part of the plea, it was agreed to include court-ordered restitution in the amount of 

$252,143. 

 SIGPR conducted various outreach efforts to include participating in the Federal Bureau of 

Investigation’s Bank Fraud Conference, training Civil and Criminal Assistant U.S. 

Attorneys on CARES Act programs, and coordinating with the Department of Justice Fraud 

Sections (Civil and Criminal), as well as U.S. Attorney’s Offices throughout the country to 

deconflict and develop leads.

 
SIGPR - 12 

Description of Performance 

SIGPR is continuing to develop/refine performance measures for the Investigations programs. 

Below is an Investigative Fact Sheet with potential key metrics: 

Behind the SIGPR Badge - Investigative Fact Sheet 

 Hotline Complaints 

 Hotline Complaints Received 

1,503 

 Referrals to Other Agencies 

376 

 Investigations 

 Ongoing* 

28 

 Closed 

9 

 Preliminary Inquiries Converted to Full Investigations 

23 

 Criminal Actions+ 

 Referrals to the Department of Justice 

14 

 Indictments/Criminal Information 

2 

 Arrests/Summons 

2 

 Convictions/Pleas 

1 

 Civil Actions 

 Referrals to the Department of Justice** 

2 

 Other Enforcement Actions 

 IG Subpoenas Issued 

11 

 Investigative Monetary Results 

 Funds Seized 

$507,477 

* Includes all SIGPR program-related cases, including PRAC Fraud Task Force investigations 

 and joint investigations with other agencies. 

+ Actions reported include those resulting from PRAC Fraud Task Force investigations 

 and joint investigations with other agencies. 

** Note: Same case may have been referred to DOJ both criminally and civilly. 

 SIGPR Attorneys 

SIGPR's Office of General Counsel, which includes many former federal prosecutors and staff with experience 

in the financial sector, assist with proactive initiatives, investigations, and prosecutions, including leaddevelopment, charging, restitution, filter team, and forfeiture support. 

Section III – Additional Information 

A – Summary of Capital Investments 

SIGPR has no capital investments. Capital investments that support SIGPR are included in the 

Departmental Offices plan. 

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx 


Department of the Treasury

Community Development 

Financial Institutions Fund

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2023
CDFI - 2

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .....................................................................................................4

1.2 – Budget Adjustment Table .........................................................................................................5

C – Budget Increases and Decreases Description..............................................................................5

1.3 – Object Classification (Schedule O) Obligations.......................................................................6

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

E – Legislative Proposals...................................................................................................................9

Section II – Annual Performance Plan and Report........................................................................11

A – Strategic Alignment ..................................................................................................................11

B – Budget and Performance by Budget Activity ...........................................................................12

2.1.1 – Administration Resources and Measures.............................................................................12

2A – Administration Budget and Performance................................................................................12

2.1.2 – Community Development Financial Institutions Program Resource and Measures...........13

2B – Community Development Financial Institutions Program......................................................13

2.1.3 – New Markets Tax Credit Resources and Measures.............................................................15

2C – New Markets Tax Credit Program..........................................................................................15

2.1.4 – Bank Enterprise Award Program Resources and Measures ................................................16

2D – Bank Enterprise Award Program............................................................................................16

2.1.5 – Native American CDFI Assistance Program Resources and Measures...............................17

2E – Native American CDFI Assistance Program...........................................................................17

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures....................................18

2F – Healthy Food Financing Initiative...........................................................................................18

2.1.7 – Small Dollar Loan Program Resource and Measures..........................................................18

2G - Small Dollar Loan Program.....................................................................................................18

2.1.8 – Capital Magnet Fund Program Resource Detail Table ........................................................19

2H. – Capital Magnet Fund Program...............................................................................................19

2.1.9 – CDFI Bond Guarantee Program Resource Detail Table......................................................20

2.1.10 – CDFI Bond Guarantee Program Financing Account – Non-Budgetary Summary............20

C – Changes in Performance Measures...........................................................................................21

Section III – Additional Information ...............................................................................................21

A – Summary of Capital Investments..............................................................................................21
CDFI - 3

Section I – Budget Request

A – Mission Statement

To expand economic opportunity for underserved people and communities by supporting the 

growth and capacity of a national network of community development lenders, investors and 

financial service providers. 

B – Summary of the Request

The Community Development Financial Institutions Fund (CDFI Fund) requests the following 

for fiscal year (FY) 2023:

• $215.4 million for the Community Development Financial Institutions Program (CDFI 

Program) to provide Financial Assistance (FA) and Technical Assistance (TA) awards, 

training and technical assistance. Through the CDFI Program, the CDFI Fund makes awards 

to invest in and build the capacity of Community Development Financial Institutions

(CDFIs) to serve low-income communities lacking adequate access to affordable financial 

products and services. Increased investment in the CDFI Program supports the need for 

greater capital flow to communities and geographies where access to capital is least efficient 

and most needed, including rural areas and persistent poverty counties, and to CDFIs seeking 

to build both capital and capacity to deploy resources. The proposed budget supports FA and 

TA awards to CDFIs to further goals that include, among others:

- Economic development (job creation, small business lending, and commercial real estate 

development);

- Affordable housing development (housing development and homeownership); 

- Provision of financial services (such as basic banking services to underserved 

communities); and

- Provision of development services (such as financial literacy or homebuyer counseling 

and education).

• $2 million for the AmeriCorps CDFI Economic Mobility Corps, to be operated in 

conjunction with Corporation for National and Community Service (CNCS) to place national 

service members at Certified CDFI’s to strengthen the capacity of CDFI’s to perform

activities related to financial literacy, financial planning, and other financial counseling 

activities, giving priority to positions in rural areas and to veterans.

• $26 million for the Bank Enterprise Award Program (BEA Program), which incentivizes 

insured banks and thrifts to invest in Certified CDFIs and increase their lending and financial 

services in economically distressed communities.

• $21.5 million for FA and TA awards for the Native CDFI Assistance Program (NACA 

Program), which provides awards and training to CDFIs that primarily serve Native 

Communities and to entities proposing to become or create Native CDFIs. These awards will 

increase access to credit, capital, and financial services in Native Communities.
CDFI - 4

• $35 million in administrative funding to support a variety of purposes, including:

- Staffing and resource demands created by significant growth across all programs, 

including the NMTC Program and the CDFI Bond Guarantee Program (BG Program);

- Administration of non-monetary programs and activities, including compliance 

monitoring and CDFI Certification;

- Enhancement of the Awards Management Information System (AMIS) including 

automation of key elements of the compliance, certification, program administration, 

research, reporting systems, and continuing improvements for operational efficiency and 

effectiveness; and

- Continued refinement of the CDFI Program Assessment and Risk Management (ARM) 

Framework - a suite of tools that the CDFI Fund uses to assess the financial and 

programmatic risk of CDFI Program applicants and award recipients, enhance datadriven decision-making, and mitigate post-award compliance reporting risks.

• $23 million for Healthy Food Financing Initiative (HFFI) awards to CDFIs to expand 

financing for healthy food options in underserved urban and rural communities. 

• $8.5 million for the Small Dollar Loan Program (SDL Program) to provide grants for Loan 

Loss Reserves and Technical Assistance to Certified CDFIs to establish and maintain small 

dollar loan programs. The SDL Program funding is intended to expand consumer access to 

mainstream financial institutions by providing alternatives to high cost small dollar lending. 

The SDL Program funding is also intended to help unbanked and underbanked populations 

build credit, access affordable capital, and allow greater access into the mainstream financial 

system.

1.1 – Appropriations Detail Table

Dollars in Thousands

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023

Appropriated Resources Operating Plan Annualized CR Request % Change

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Community Development Financial 

Institutions Fund Program 0 $165,000 0 $165,000 0 $215,383 NA 30.5%

Economic Mobility Corps 0 $2,000 0 $2,000 0 $2,000 NA 0.0%

Bank Enterprise Award Program 0 $26,000 0 $26,000 0 $26,000 NA 0.0%

Native American CDFI Assistance 

Program 0 $16,500 0 $16,500 0 $21,500 NA 30.3%

Administrative 67 $29,000 82 $29,000 89 $35,037 8.5% 20.8%

Healthy Food Financing Initiative 0 $23,000 0 $23,000 0 $23,000 NA 0.0%

Small Dollar Loan Program 0 $8,500 0 $8,500 0 $8,500 NA 0.0%

Subtotal New Appropriated Resources 67 $270,000 82 $270,000 89 $331,420 0.0% 22.7%

Other Resources

User Fees 0 $1,186 0 $1,250 0 $1,350 NA 8.0%

Recoveries from Prior Years 0 $405 0 $500 0 $500 NA 0.0%

Unobligated Balances from Prior Years 0 $13,569 0 $218,045 0 $28,000 NA -87.2%

Subtotal Other Resources 0 $15,160 0 $219,795 0 $29,850 NA -86.4%

Total Budgetary Resources 67 285,160 82 $489,795 89 $361,270 8.5% -26.2%

FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 
CDFI - 5

1.2 – Budget Adjustment Table

Dollars in Thousands

FTE Amount

FY 2022 Annualized CR 82 $270,000 

Program Changes:

Program Increases: 7 $61,420 

CDFI Program 0 $50,383 

Native American CDFI Assistance (NACA) Program 0 $5,000 

Administration 7 $6,037 

FY 2023 President's Budget Request 89 $331,420 

C – Budget Increases and Decreases Description

Program Increases .....................................................................................+$61,420,000/ +7 FTE

CDFI Program +$50,383,000 / +0 FTE

The CDFI Fund will increase the amount of Financial FA and TA awards. An increase of $50.4

million to the CDFI Program will result in larger FA awards to increase 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. This increase 

would also support Small and/or Emerging Community Development Financial Assistance

applicants and provide more funding for capacity building grants through the technical assistance 

component.

NACA Program +$5,000,000 / +0 FTE

The CDFI Fund will increase the NACA Program by $5 million, which will result in larger FA 

awards to increase the number of business and microenterprise loans, home improvement and 

purchase loans, residential real estate transactions, and other consumer loans and products in 

Native Communities. It will also be used to increase participation by Native communities by 

improving technical assistance and capacity building for Native CDFIs.

Administration +$6,037,000 / +7 FTE

An increase of $6 million in administration funding will support the hiring of seven new staff for 

program, compliance, certification, performance reporting and data collection, and IT system 

development and enhancements. It will support research on the growth and self-sufficiency of 

the CDFI Sector and its impact on underserved communities, minorities and economic 

inequality. In addition, it will enable the CDFI Fund to prepare for updating all its program

eligibility data based on the forthcoming Decennial Census data, and update the CDFI 

Information Mapping System (CIMS) used for compliance and performance reporting across 

programs. Finally, it will provide more support for IT contracts related to system enhancement 

and development, especially new program applications and improved efficiency and automation 

of compliance and certification validation processes.
CDFI - 6

1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands

Object Classification

FY 2021 

Actual

Obligations

FY 2022 

Estimated 

Obligations

FY 2023 

Estimated 

Obligations

11.1 - Full-time permanent 9,279 10,319 11,687 

11.9 - Personnel Compensation (Total) 9,279 10,319 11,687 

12.0 - Personnel benefits 3,193 3,489 3,994 

Total Personnel and Compensation Benefits $12,472 $13,808 $15,681 

21.0 - Travel and transportation of persons - 70 70 

24.0 - Printing and reproduction 9 2 5 

25.1 - Advisory and assistance services 4,983 1,743 3,700 

25.2 - Other services from non-Federal sources 33 150 135 

25.3 - Other goods and services from Federal sources 7,598 12,159 10,400 

25.7 - Operation and maintenance of equipment 113 2,600 3,850 

26.0 - Supplies and materials 23 45 50 

31.0 – Equipment 4,530 6,494 3,923 

41.0 - Grants, subsidies, and contributions 53,175 446,000 322,000 

Total Non-Personnel $70,464 $469,263 $344,133 

New Budgetary Resources $82,936 $483,071 $359,814 

Full-time Equivalents (FTE) 67 82 89

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and 

transfers. 
CDFI - 7

 

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL 

INSTITUTIONS FUND

SALARIES AND EXPENSES

To carry out the Riegle Community Development and 

Regulatory Improvement 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-III, 

$331,420,000. Of the amount appropriated under this heading—

(1) not less than $217,383,000, 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, 

2024, 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 $1,600,000 may be available for training and 

outreach under section 109 of Public Law 103–325 (12 U.S.C. 

4708), of which up to $3,153,750 may be used for the cost of 

direct loans, of which up to $6,000,000, notwithstanding 

subsection (d) of section 108 of Public Law 103–325 (12 U.S.C. 

4707 (d)), may be available to provide financial assistance, 

technical assistance, training, and outreach to community 

development financial institutions to expand investments that 

benefit individuals with disabilities, and of which not less than 

$2,000,000 shall be for the Economic Mobility Corps to be 

operated in conjunction with the Corporation for National and 

Community Service, pursuant to 42 U.S.C. 12571: 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: 

Provided further, That of the funds provided under this 

paragraph, excluding those made to community development 

financial institutions to expand investments that benefit 

individuals with disabilities and those made to community 

development financial institutions that serve populations living 

in persistent poverty counties, the CDFI Fund shall prioritize 

Financial Assistance awards to organizations that invest and 
CDFI - 8

lend in high-poverty areas: Provided further, That for purposes 

of this section, the term "high-poverty area" means any census 

tract with a poverty rate of at least 20 percent as measured by 

the 2011–2015 5-year data series available from the American 

Community Survey of the Bureau of the Census for all States 

and Puerto Rico or with a poverty rate of at least 20 percent as 

measured by the 2010 Island areas Decennial Census data for 

any territory or possession of the United States; 

(2) Not less than $21,500,000, notwithstanding section 108(e) of 

Public Law 103–325 (12 U.S.C. 4707(e)), is available until 

September 30, 2024, for financial assistance, technical 

assistance, training, and outreach programs designed to benefit 

Native American, Native Hawaiian, and Alaska 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 $26,000,000 is available until September 30, 

2024, for the Bank Enterprise Award program; 

(4) not less than $23,000,000, 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, 2024, 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) not less than $8,500,000 is available until September 30, 

2024, to provide grants for loan loss reserve funds and to 

provide technical assistance for small dollar loan programs 

under section 122 of Public Law 103–325 (12 U.S.C. 4719): 

Provided, That sections 108(d) and 122(b)(2) of such Public 

Law shall not apply to the provision of such grants and 

technical assistance; 

(6) up to $35,037,000 is available until September 30, 2023, for 

administrative expenses, including administration of CDFI Fund 

programs and the New Markets Tax Credit Program, of which 

not less than $1,000,000 is for the development of tools to better 

assess and inform CDFI investment performance and CDFI 
CDFI - 9

Fund program impacts, and up to $300,000 is for administrative 

expenses to carry out the direct loan program; and 

(7) during fiscal year 2023, 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 $500,000,000: Provided further, That such section 114A 

shall remain in effect until December 31, 2023: Provided 

further, That of the funds awarded under this heading, except 

those provided for the Economic Mobility Corps, not less than 

10 percent shall be used for awards that support investments 

that serve populations living in persistent poverty counties: 

Provided further, That for the purposes of this paragraph and 

paragraph (1), the term "persistent poverty counties" means any 

county, including county equivalent areas in Puerto Rico, that 

has had 20 percent or more of its population living in poverty 

over the past 30 years, as measured by the 1990 and 2000 

decennial censuses and the 2011–2015 5-year data series 

available from the American Community Survey of the Bureau 

of the Census or any other territory or possession of the United 

States that has had 20 percent or more of its population living in 

poverty over the past 30 years, as measured by the 1990, 2000 

and 2010 Island Areas Decennial Censuses, or equivalent data, 

of the Bureau of the Census. 

Note. --A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

Extension of the Bond 

Guarantee Program 

through December 31, 

2023 to allow more time 

to close complex and 

time-consuming bond 

commitments

E – Legislative Proposals

The FY 2023 Budget proposes to include $5 billion in long-term mandatory funding to support 

lending by eligible CDFIs to finance new construction and substantial rehabilitation that creates 

net new units of affordable rental and for sale housing known as the CDFI Affordable Housing 

Supply Fund.

The purpose of the program is to increase and preserve the supply of affordable housing in single 

family and small properties (1-4 units) and small multifamily properties not to exceed 100 units. 

The Community Development Financial Institutions Fund will provide $5 billion in grants to 

Community Development Financial Institutions (CDFIs) to support financing for the 
CDFI - 10

construction, acquisition, rehabilitation and preservation of both rental and homeownership

housing, including accessory dwelling units.

This program will encourage the participation of small-scale developers and contractors. 

The program will support activities that: 

• ensure the sustainability, climate resiliency, and energy efficiency of affordable housing 

through rehabilitation; 

• focus on increasing the supply of affordable housing in underserved markets, including 

single family, small properties (1-4 units) and small multifamily properties with fewer than 

100 units; 

• create affordable homeownership opportunities through financing the construction and 

rehabilitation of single-family properties for individuals and families with incomes up to 120

percent of AMI and up to 150 percent of the Area Median Income (AMI) in high cost areas 

(including acquisition and rehabilitation); 

• preserve and rehabilitate rental opportunities in Naturally Occurring Affordable Housing 

(NOAH);

• finance/ support the development of Accessory Dwelling Units (ADUs);

• preserve affordable housing that is at risk of conversion to market rate; and

• expand the supply of affordable housing through innovative approaches consistent with the 

goals of the program including the conversion of commercial properties to residential and 

utilization of modular housing.

Units financed under this program will have 10 years affordability compliance requirements.
CDFI - 11

Section II – Annual Performance Plan and Report

A – Strategic Alignment

The CDFI Fund’s mission is to expand economic opportunity for underserved people and 

communities by supporting the growth and capacity of a national network of community 

development lenders, investors, and financial service providers. 

The CDFI Fund’s award recipients provide loans, investments, business counseling, basic 

banking services, and financial literacy training in some of the most distressed communities in 

the nation. These are the communities in the United States where job opportunities remain 

stagnant and that otherwise lack access to more mainstream forms of capital – the places and 

populations that are not progressing economically as other parts of our economy have improved. 

CDFI Fund award recipients use their awards to increase access to capital and help improve the 

quality of life and boost the local economy in these communities.

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, Treasury developed the FY 2022 – 2026 Departmental Strategic Plan. The 

Annual Performance Plan has been updated to reflect new departmental strategic goals and 

objectives.

This year, the CDFI Fund is working to align budget activities and performance measures to the 

new objectives in the Treasury FY 2022 – 2026 Strategic Plan, specifically to Goal 1: Promote 

Equitable Economic Growth and Recovery; Objective 1.3 Economically Resilient Communities 

and Goal 5: Modernize Treasury Operations. This work will include benchmarking performance 

and may result in changes in performance measures in the FY 2024 budget. 

The FY 2023 Budget will advance the CDFI Fund’s current goals by allowing the CDFI Fund to 

administer all programs including those that are authorized by Congress but do not require 

annual appropriations (i.e., the NMTC Program). In addition, the CDFI Fund will continue to 

conduct ongoing program compliance for prior-year award recipients for all programs.

The Budget request is also intended to cover the cost to administer certification of CDFIs, as 

required by the Riegle Act, as well as Community Development Entities (CDEs), as required by 

the NMTC program. CDFI certification is a prerequisite for eligibility for the CDFI and NACA 

Program(s), the BG Program, the SDL Program and the Capital Magnet Fund (CMF), as well as 

other federal programs outside of the CDFI Fund. CDE certification is a prerequisite for 

eligibility for the NMTC program.

The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (P. L. 116-260) 

provided $3 billion to the CDFI Fund to help CDFIs deliver immediate assistance in 

communities impacted by the COVID-19 pandemic. In the spring of FY 2021, the CDFI Fund 

awarded $1.25 billion of these funds through its newly established CDFI Rapid Response 

Program (CDFI RRP), which was designed to quickly deploy capital to CDFIs through a 

streamlined application and review process. Through the CDFI RRP, CDFIs were provided with 

resources necessary to respond to the economic impacts of the COVID-19 pandemic in 

distressed and underserved communities and people.
CDFI - 12

In FY 2023, the CDFI Fund will be making an additional $1.75 billion in grant funds available to 

CDFIs. These grants will further assist distressed communities by expanding lending, grant 

making, and increasing investment activity in low- or moderate-income minority communities 

and to minorities that have significant unmet capital or financial service needs.

B – Budget and Performance by Budget Activity

2.1.1 – Administration Resources and Measures

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $26,000 $27,000 $27,000 $28,500 $29,000 $29,000 $35,037 

Budget Activity Total $26,000 $27,000 $27,000 $28,500 $29,000 $29,000 $35,037 

Full-time Equivalents (FTE) 74 66 67 76 67 82 89

Performance Measure

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

All Award Cycle Time 

(Months) 6.3 5.8 6.4 5.5 5.6 6.5 6.5 6.5

All-Time to Initial 

Disbursement (#Months) 7.5 7.0 7.0 4.4 5.1 4.5 4.5 4.5

ALL- Number of Affordable 

Housing Units Developed or 

Produced

 

27,443 

 

34,083 

 

61,839 

 

44,361 

 

58,125 I I I 

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

2A – Administration Budget and Performance

($35,037,000 from direct appropriations):

This encompasses the CDFI Fund’s operational support and management activities for each of its 

ongoing award programs. It includes, among other activities, developing notices of award 

availability and application materials; reviewing and evaluating certification and award 

applications; selecting awardees; finalizing the terms of award agreements; making 

disbursements; collecting and evaluating performance data; monitoring awardees’ compliance; 

and award closeout processes.

Description of Performance:

The CDFI Fund’s three administrative performance measures focus on organization-wide 

efficiency, measuring how quickly awards are made and funds are disbursed, and the creation of 

affordable housing units across all CDFI Fund programs.

• The All Cycle Time measures the average time from the date when applications are received 

to the date of award announcement (calculated in months as an average across all programs). 

The Award Cycle Time in FY 2021 was 5.6 months, thereby exceeding the target of 6.5

months. FY 2021 reflects the inaugural round of the SDL Program as well as estimates for 

BEA and CMF programs, which are still in the midst of their FY 2021 round application 

reviews. For FY 2022 and FY 2023, the target will remain at 6.5 months because the CDFI 

Fund will be standing up additional programs funded by the Consolidated Omnibus Act, 2021. 
CDFI - 13

• The Time to Initial Disbursement indicates how quickly the CDFI Fund completes award 

agreements and makes the first disbursement of funds or issues tax credits. The FY 2021

program disbursements results were tabulated in FY 2022 at 5.1 months which falls below the 

target set of 4.5 months. It should be noted that the tabulation includes estimates for BEA and 

CMF programs which are still in the midst of their FY 2021 round application reviews. While 

the FY 2021 results are higher than the FY 2020 results (4.4 months), they are still lower than 

the FY 2019 results (7 months) which reflect improved efficiencies through the AMIS system.

The target will remain at 4.5 months for FY 2022 and FY 2023.

 

• The Number of Affordable Housing Units Developed or Produced metric measures the 

number of affordable housing units developed or produced as a result of CDFI Fund awards as 

reported by CDFI Program, NMTC Program, and CMF awardees. The FY 2021 actual result 

was 58,125 affordable housing units. Beginning with FY 2021, this performance measure was 

converted to an indicator because the variability in projecting annually the number of 

affordable housing units funded for three programs made it difficult to project a reliable target. 

2.1.2 – Community Development Financial Institutions Program Resource and Measures 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $161,500 $160,000 $160,000 $165,500 $165,000 $165,000 $215,400 

Budget Activity Total $161,500 $160,000 $160,000 $165,500 $165,000 $165,000 $215,400 

Performance Measure

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

CDFI - Percentage of Loans 

& Investments Originated in 

Eligible Distressed or 

Underserved Communities 

by Dollar Amount of Loans 

(Annual %)

81.2 73.7 75.6 75.0 71.4 60.0 60.0 60.0

CDFI - Percentage of Loans 

& Investments Originated in 

Eligible Distressed or 

Underserved Communities 

by Number of Loans

83.0 72.1 78.8 79.6 75.7 60.0 60.0 60.0

2B – Community Development Financial Institutions Program 

($217,383,000 from direct appropriations)

The CDFI Program makes FA awards to CDFIs that have comprehensive business plans for 

creating community development impact and that demonstrate the ability to leverage private 

sector sources of financing, as well as TA grants to CDFIs and entities proposing to become 

CDFIs. CDFIs use FA awards to further goals such as: 

• Economic development (job creation, business development, and commercial real estate 

development);

• Affordable housing (rental housing and homeownership); and 

• Financial services (provision of basic banking services and financial literacy training to 

underserved people and communities). 
CDFI - 14

For the FY 2021 CDFI Program round, the CDFI Fund awarded $140.8 million in Base-FA and 

TA awards to 422 organizations in 43 states, the District of Columbia, and Puerto Rico. 

In addition to the Base-FA awards, the CDFI Fund will also provide the following supplemental 

FA awards:

• $23 million to 10 CDFIs through the Healthy Food Financing Initiative-Financial Assistance 

(HFFI-FA) awards, a supplemental program designed to encourage investments in businesses 

that provide healthy food options for communities;

• $6 million to 14 CDFIs through the Disability Funds-Financial Assistance (DF-FA) awards, a 

supplemental program designed to help CDFIs finance projects and services that will assist 

individuals with disabilities; and

• $18.6 million to 125 CDFIs through the Persistent Poverty Counties-Financial Assistance 

(PPC-FA) awards, which is a supplemental program designed to encourage investments in 

Persistent Poverty Counties nationwide.

The request includes $2 million for the AmeriCorps CDFI Economic Mobility Corps (EMC), 

which is a joint initiative of the CDFI Fund and CNCS that places full-time national service 

members in Certified CDFIs to enhance their capacity to provide financial literacy, financial 

planning, budgeting, saving, and other financial counseling activities. Award funding for the 

FY 2022 round of EMC was made available through the CNCS FY 2022 AmeriCorps State and 

National Grant program Notice of Funding Opportunity (NOFO) that was released September 

2021. EMC awards will be announced May 2022.

Description of Performance: 

The CDFI Program has two measures: (1) the percentage of loans and investments originated in 

eligible distressed communities or made to underserved populations, as measured against the 

total dollar amount of loans originated by awardees; and (2) the percentage of loans and 

investments originated in eligible distressed communities or to underserved populations, as 

measured against the total number of loans originated by awardees. 

Certification criteria require that all certified CDFIs originate at least 60.0 percent of their loans 

and investments in eligible distressed census tracts or to underserved populations. The target is 

set at a level that allows CDFIs to balance their mission to serve distressed communities and 

underserved populations with their safety and soundness considerations.

In FY 2021, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both 

the dollar amount (71.4 percent) and the number of CDFI loans (75.7 percent) made to eligible 

distressed communities and underserved populations.
CDFI - 15

2.1.3 – New Markets Tax Credit Resources and Measures

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources 0 0 0 0 0 0 0

Budget Activity Total 0 0 0 0 0 0 0

Performance Measure

FY 

2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

NMTC - Percentage of 

Loans and Investments 

That Went Into Severely 

Distressed Communities

77.5 73.6 80.3 77.2 77.0 75.0 75.0 75.0

2C – New Markets Tax Credit Program

($0 from direct appropriations): 

The NMTC Program stimulates capital investment in low-income communities nationwide by 

permitting individual and corporate taxpayers to receive a non-refundable tax credit against 

federal income taxes for making equity investments in CDEs. CDEs that receive the tax credit 

allocation authority under the program are domestic corporations or partnerships that provide 

loans, investments, or financial counseling in low-income urban and rural communities.

On December 27, 2020, legislation was enacted extending allocation authority of the NMTC 

Program for five years through calendar year (CY) 2025 at $5 billion annually. The FY 2023 

revenue proposal volume (also referred to as the “greenbook”) seeks a permanent reauthorization 

of the New Markets Tax Credit. Please see https://home.treasury.gov/policy-issues/taxpolicy/revenue-proposals for more information. 

Description of Performance:

In FY 2021, the CDFI Fund awarded $5 billion in CY 2020 NMTC Program allocation authority 

to 100 organizations out of a pool of 208 applicants that requested $15.1 billion in NMTC 

allocations.

In FY 2021, CDEs reported that 77 percent of NMTC investments were made in severelydistressed communities, exceeding the target of 75 percent. The expectation is that the NMTC 

investments performance report for FY 2022 and FY 2023 will meet or exceed the 75 percent

target.
CDFI - 16

2.1.4 – Bank Enterprise Award Program Resources and Measures

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $23,000 $25,000 $25,000 $25,000 $26,000 $26,000 $26,000 

Budget Activity Total $23,000 $25,000 $25,000 $25,000 $26,000 $26,000 $26,000 

Performance Measure

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

BEA - Increase in 

Community Development 

Activities Over Prior Year 

For All BEA Program 

Applicants ($ million)

522 646 429 469 DISC DISC DISC DISC

Bank Enterprise Award 

Program (BEA) Leverage 

Ratio is the $ Sum of All 

Award Recipients Qualified 

Activities to the $ Sum of 

All Awards in a Given Year

N/A N/A N/A N/A TBD B N/A N/A

Key: DISC - Discontinued; B - Baseline; TBD - To Be Determined; N/A - Not Available

2D – Bank Enterprise Award Program 

($26,000,000 from direct appropriations): 

The BEA Program provides monetary awards to regulated banks and thrifts for increasing their 

investments in CDFIs through grants, stock purchases, loans, deposits, and other forms of 

financial and technical assistance, and for increasing their lending, investment, and service 

activities in economically-distressed communities where at least 30 percent of residents have 

incomes less than the national poverty level and where the unemployment rate is at least 1.5 

times the national unemployment rate.

Description of Performance:

The BEA Program measures applicants’ increase in qualified community development activities 

over the prior year. The FY 2021 BEA Program round is still in the application review stage 

with the goal of announcing awards by the end of March 2022. 

For FY 2021, the BEA Program will begin reporting on its new performance measure — a 

leverage ratio of the dollar sum of all award recipients’ qualified activities to the dollar sum of 

all awards in a given year. The Fund will use the values for FY 2021 through FY 2023 to 

establish a baseline trend from which to compute a target threshold for the leverage ratio that 

must be met or exceeded by the program’s annual eligible activities.
CDFI - 17

2.1.5 – Native American CDFI Assistance Program Resources and Measures

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $15,500 $16,000 $16,000 $16,000 $16,500 $16,500 $21,500 

Budget Activity Total $15,500 $16,000 $16,000 $16,000 $16,500 $16,500 $21,500 

Performance Measure

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

NACA - Percentage of 

NACA Loans and 

Investments in Native 

Areas ($ Amount of Loans)

47.9 84.9 78.0 57.2 60.1 50.0 50.0 50.0

NACA - Percentage of 

NACA Loans and 

Investments in Native 

Areas (# of Loans)

95.1 94.4 86.0 72.1 72.6 50.0 50.0 50.0

2E – Native American CDFI Assistance Program

($21,500,000 from direct appropriations): 

Through the NACA Program, the CDFI Fund assists entities in overcoming barriers that prevent 

access to credit, capital, and financial services in American Indian, Alaska Native, and Native 

Hawaiian communities. The NACA Program makes monetary awards to increase the number 

and capacity of existing or new Native CDFIs (i.e., CDFIs that serve Native communities). In 

addition, the NACA Program provides training to help strengthen and develop Native CDFIs. 

Native CDFIs lend where other mainstream financial institutions do not and serve the poorest 

individuals, families, and businesses in Native communities.

For the FY 2021 round of the NACA Program, the CDFI Fund awarded $14.3 million in BaseFA and TA awards to 34 organizations in 16 states. In addition, the CDFI Fund awarded $1.65

million in NACA Program PPC-FA awards to eight Native CDFIs.

Description of Performance: 

The two measures of performance for the NACA Program are: (1) the percentage of the number 

of loans, and (2) the dollar amount of loans, made in tribal lands (based on Federal Designations 

of Tribal Areas) or to Native people. In accordance with their Assistance Agreements, NACA 

awardees are required to originate 50 percent or more of their loans and investments in Native 

areas or to Native populations. This threshold is set to allow the awardees to balance their 

mission of serving Native areas and populations with safety and soundness considerations. 

In FY 2021, NACA recipients reported outcome data for their 2020 activities, which showed that 

60.1 percent of loans by dollar amount and 72.6 percent of the number of loans originated were 

in Native areas or to Native borrowers, thereby exceeding the target of 50 percent for both

measures.
CDFI - 18

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources $22,000 $22,000 $22,000 $22,000 $23,000 $23,000 $23,000 

Budget Activity Total $22,000 $22,000 $22,000 $22,000 $23,000 $23,000 $23,000 

Performance Measure

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Target Target Target

HFFI - Retail Outlets 

Created/Preserved 24.0 20.0 23.0 25.0 29.0 I I I

Key: I - Indicator

2F – Healthy Food Financing Initiative

($23,000,000 from direct appropriations):

The HFFI aims to eliminate “food deserts” – low-income urban and rural areas in the United 

States with limited access to affordable and nutritious food – by financing interventions that 

expand the supply of, and demand for, nutritious foods. The objectives include increasing the 

distribution of agricultural products, developing and equipping grocery stores, and strengthening 

producer-to-consumer relationships. 

Through the HFFI, the CDFI Fund provides awards to Certified CDFIs to help address the need 

for healthy food in underserved and low-income communities. These organizations use federal 

grants, below market-rate loans, loan guarantees, and tax credits to attract private sector 

financing for projects that increase access to healthy food options.

Description of Performance: 

The primary HFFI performance measure is the number of healthy food retail stores created and 

maintained in low-income areas that have been identified through detailed census tract analysis 

as having limited access to healthy food options. In FY 2021, the number of HFFI Retail outlets 

created was 29. Beginning with FY 2021, the HFFI performance measure is reported as an

indicator because the variability of investments in new retail HFFI outlets made it difficult to 

forecast an annual target. 

2.1.7 – Small Dollar Loan Program Resource and Measures 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request

Appropriated Resources 0 0 0 $5,000 $8,500 $8,500 $8,500 

Budget Activity Total 0 0 0 $5,000 $8,500 $8,500 $8,500 

2G - Small Dollar Loan Program

($8,500,000 from direct appropriations): 

Authorized by Section 1206 of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (P.L. 111-203), the SDL Program provides grants for Loan Loss Reserves (LLR) and TA to 

CDFIs to establish and maintain small dollar loan programs. SDL Program funding is intended 

to expand consumer access to mainstream financial institutions by providing alternatives to high 
CDFI - 19

cost small dollar lending. The SDL Program funding is also intended to help unbanked and 

underbanked populations build credit, access affordable capital, and allow greater access into the 

mainstream financial system.

Description of Performance:

The program is in its infancy, therefore, its performance measure is still under review by the 

Office of Strategic Planning and Performance Improvement (OSPPI) and the Office of 

Performance Budget (OPB) before it receives final approval from the Office of Management and 

Budget (OMB). The Fund anticipates reporting out on SDLP’s performance measure in the 

FY2024 budget materials for FY2021. SDLP performance data will have to be baselined for 

three years to evaluate what a reasonable performance target might be based on the trends.

The inaugural round of SDLP awards were made in September 2021. A total of 52 CDFIs 

received $10.8 million in FY 2021 SDLP awards. These Certified CDFIs are headquartered in 

30 states, the District of Columbia and Puerto Rico. Two organizations received nearly 

$300,000 in awards for LLR grants. Nine organizations received $1.0 million in TA grants. 41 

organizations received $9.5 million in a combination of TA award and LLR awards. SDLP 

Award Recipients are comprised of Certified CDFIs of diverse types and include: 28 loan funds 

that received $5.2 million; 13 credit unions that received $2.8 million; and 11 banks or bank 

holding companies that received $2.8 million. This includes, two organizations headquartered in 

Puerto Rico that received $560,000 in awards, and five minority depository institutions that 

received a total of $1.6 million in awards.

2.1.8 – Capital Magnet Fund Program Resource Detail Table 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate

GSE Distribution $119,413 $144,917 $131,884 $175,809 $382,748 $367,000 $212,000 

Budget Activity Total $119,413 $144,917 $131,884 $175,809 $382,748 $367,000 $212,000 

Full-time Equivalents (FTE) 4 4 3 5 4 6 9 

2H. – Capital Magnet Fund Program

($0 from direct appropriations):

The CMF Program authorized by the Housing and Economic Recovery Act of 2008 (P.L. 110-

289), establishes recurrent funding of the CMF through allocations from the GovernmentSponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Through CMF, the CDFI Fund 

provides grants to CDFIs and qualified non-profit housing organizations to finance affordable 

housing, community service facilities, and economic development facilities. Award recipients 

can use funds to create financing tools such as loan funds, loan loss reserves, revolving loan 

funds, risk-sharing loans, and loan guarantees. 

Description of Performance:

The primary performance measures of the CMF are the number of affordable housing units for 

which CMF funding was a source of financing, and the degree to which private funding sources 

were leveraged by CMF financing. Data on affordable housing units are included in performance 

table 2.1.1. 
CDFI - 20

The FY 2021 CMF Program round is still in the application review stage with the goal of 

announcing awards in May 2022. 

2.1.9 – CDFI Bond Guarantee Program Resource Detail Table

Dollars in Thousands

 Resource Level FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Annualized 

CR Request

Obligations $245,000 $150,000 $150,000 $100,000 $100,000 $500,000 $500,000

Loan Limitation Obligation 

Authority $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000

2.1.10 – CDFI Bond Guarantee Program Financing Account – Non-Budgetary Summary

Dollars in Thousands

 Resource Level FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Estimate Request

Obligations $245,000 $150,000 $150,000 $100,000 $100,000 $500,000 $500,000

Collections* $19,789 $34,337 $51,493 $61,621 $74,320 $81,940 $95,728 

*Includes the principal and interest repayments and a 10 basis point fee for administrative expenses pursuant to Section 1134 of the Small Business 

Jobs Act of 2010. These amounts assume a zero subsidy rate with bond loan disbursement of $171 million and $265 million in FY 2022 and FY 

2023, respectively.

2I. – CDFI Bond Guarantee Program Budget and Performance

Through the BG Program, Treasury provides a 100 percent guarantee of bonds (including 

principal, interest, and call premiums) issued by Qualified Issuers. Bonds issued through the 

program support CDFI lending and investment activity in underserved communities by providing 

a source of long-term capital. Qualified Issuers use bond proceeds to finance loans to eligible 

CDFIs for community and economic development purposes. 

Since the inception of the program, the total amount of bonds guaranteed is nearly $1.8 billion. 

A total of 26 Eligible CDFIs and three Qualified Issuers participate in the BG Program. Upon 

the closing of each bond, the eligible CDFIs have five years to lend or disburse the bond 

proceeds. 
CDFI - 21

The table below provides the year-to-date (FYE) and proposed disbursement for the top eight 

asset classes:

C – Changes in Performance Measures

CDFI has no changes in performance measures.

Section III – Additional Information

A – Summary of Capital Investments

As part of its FY 2023 capital investment strategy, the CDFI Fund plans to spend approximately 

$7.16 million for enhancements, operations, and maintenance of its IT infrastructure. The CDFI 

Fund has no major IT investments, nor any capital investments other than IT. 

Non-Major IT Investments: 

For FY 2023, the CDFI Fund has identified two non-major IT investments: AMIS and the CDFI 

Fund public website. AMIS is an enterprise-wide commercial, cloud-based solution that supports 

CDFI Fund certification, tax credit allocation, bond guarantee, and all grant programs. The 

CDFI Fund public website, another cloud-based solution, provides access to general information 

about the CDFI Fund and is used to ensure the public can obtain information and guidance 

regarding CDFI Fund programs. In FY 2023, the CDFI Fund plans to provide Operations and 

Maintenance (O&M) support for these two investments, as well as enhancements to AMIS.

O&M includes system updates, help desk support, and software licenses. AMIS enhancements 

include annual program updates and improvements to program compliance monitoring and 

reporting.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Financial Crimes Enforcement 

Network 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
FinCEN - 2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table ................................................................................................. 3

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

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

E – Legislative Proposals ............................................................................................................ 7

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

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity .................................................................... 13

2.1.1 – BSA Administration and Analysis Resources and Measures ....................................... 13

BSA Administration and Analysis Budget and Performance ................................................... 13

C – Changes in Performance Measures .................................................................................... 14

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
FinCEN - 3 

Section I – Budget Request 

A – Mission Statement 

To safeguard the financial system from illicit use, combat money laundering and its related 

crimes including terrorism, and promote national security through the strategic use of financial 

authorities and the collection, analysis, and dissemination of financial intelligence. 

B – Summary of the Request 

The FY 2023 President’s Budget requests additional resources totaling $83,367,000 above 2021 

enacted, including for the implementation of the Fiscal Year (FY) 2021 Anti-Money Laundering 

Act/Corporate Transparency Act (AMLA/CTA) of the William M. (Mac) Thornberry National 

Defense Authorization Act (NDAA) and to increase staffing for the expansion of the Office of 

Chief Counsel. 

1.1 – Appropriations Detail Table 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 285 $126,963 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $5,401 

Pay Annualization (2.7% average pay raise) 0 $462 

Pay Raise (4.6% average pay raise) 0 $2,377 

Non-Pay 0 $2,562 

Other Adjustments: 10 $28,887 

Adjustment to Meet Operating Levels 10 $28,887 

Subtotal Changes to Base 10 $34,288 

FY 2023 Current Services 295 $161,251 

Program Changes: 

Program Increases: 125 $49,079 

AMLA/CTA Implementation 115 $46,359 

Increase Office of Chief Counsel Staff 10 $2,720 

FY 2023 President's Budget Request 420 $210,330 

Dollars in Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

BSA Administration and Analysis 269 $126,963 285 $126,963 420 $210,330 47.4% 65.7%

Subtotal New Appropriated Resources 269 $126,963 285 $126,963 420 $210,330 47.4% 65.7%

O ther Resources

Reimbursable 2 $1,941 3 $3,500 3 $3,500 0.0% 0.0%

Recoveries from Prior Years 0 $2,337 0 $0 0 $0 NA NA

Unobligated Balances from Prior Years 0 $29,444 0 $19,704 0 $2,817 NA -85.7%

Transfers In/Out (TEOAF) 0 $6,728 0 $22,500 0 $6,250 NA -72.2%

Subtotal O ther Resources 2 $40,450 3 $45,704 3 $12,567 0.0% -72.5%

Total Budgetary Resources 271 167,413 288 $172,667 423 $222,897 46.9% 29.1%

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023

O perating Plan Annualized CR Request

FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

% Change
FinCEN - 4 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$5,401,000 / +0 FTE 

Pay Annualization (2.7% average pay raise) +$462,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% average pay raise) +$2,377,000/ +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$2,562,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Other Adjustments..........................................................................+$28,887,000 / +10 FTE 

Adjustment to Meet Operating Levels +$28,887,000 / +10 FTE 

Funds are requested to meet operating levels in FY 2023, which includes IT infrastructure 

expansion and enhancements to support beneficial ownership secure system operations and 

maintenance. 

Program Increases ...............................................................................+$49,079,000 / +125 FTE

AMLA/CTA Implementation +$46,359,000 / +115 FTE 

The enactment of the FY 2021 National Defense Authorization Act (NDAA) included significant 

reforms to the U.S. anti-money laundering and countering the financing of terrorism (AML/CFT) 

regime through the AMLA and the CTA. 

The AMLA/CTA seeks to strengthen, modernize, and streamline the existing AML/CFT regime 

by promoting innovation, regulatory reform, and industry engagement through forums, such as 

the Bank Secrecy Act Advisory Group (BSAAG) and FinCEN Exchange. The AMLA calls for 

FinCEN to work closely with our regulatory, national security, and law enforcement partners to 

identify risks and priorities and provide valuable feedback to our industry partners. 

Within the AMLA, the CTA establishes a framework for uniform beneficial ownership reporting 

requirements for many corporations, limited liability companies, and other similar entities 

formed or registered to do business in the United States. The CTA provides FinCEN with the 

authority to collect that information, store it in a secure system, and share it with authorized 

government authorities and financial institutions, subject to effective safeguards and controls. 

To that end, FinCEN will use this funding to develop and maintain an information technology 

system for the reporting of information on beneficial ownership, collecting and securing the data, 

and creating access protocols and hiring staff to support outreach, implementation, and audits to 

ensure compliance with CTA rules. The AMLA and the CTA together set forth approximately 40 

rulemaking or other requirements, including periodic Congressional reporting on implementation 

efforts, assessments, and findings. Some key requirements authorized under the act include: 

1. Establishing standards for the reporting of information on beneficial ownership, building an 

information technology system to collect and secure the data, and creating access protocols, 

and ensuring enforcement of and compliance with the new reporting requirements; 
FinCEN - 5 

2. Establishing national anti-money laundering and countering the financing of terrorism 

priorities, issuing regulations to implement those priorities and other related requirements, 

and ensuring enforcement of and compliance with the new requirements; 

3. Enhancing whistleblower provisions to provide for a robust whistleblower program and new 

anti-retaliation protections; 

4. Establishing an Office of Domestic Liaison; 

5. Establishing foreign financial intelligence liaisons located overseas; 

6. Reviewing and revising Currency Transaction Report (CTR) and Suspicious Activity Report 

(SAR) requirements, and other existing Bank Secrecy Act (BSA) regulations and guidance; 

7. Expanding BSA requirements and obligations to persons engaged in the trade of antiquities; 

8. Hosting a Financial Crimes Tech Symposium, and establishing two new BSAAG 

subcommittees to enhance public-private partnerships in the areas of innovation and 

technology as well as information security; 

9. Establishing a BSA Analytical Hub; 

10. Conducting a formal review of regulations and guidance implementing the BSA; 

11. Formalizing a pilot program to allow financial institutions to share SARs with their foreign 

branches, subsidiaries, and affiliates, and ensuring enforcement of and compliance with the 

new requirements; 

12. Establishing an ongoing, timely process to receive and evaluate requests from law 

enforcement to financial institutions to keep accounts open; and 

13. Establishing an annual Bank Secrecy Act training program for all Federal examiners in the 

United States. FinCEN is required to comply with this new AMLA requirement to augment 

and build upon FinCEN’s continued, decades-long involvement with the Federal Financial 

Institutions Examination Council (FFIEC) and AMLA/BSA training opportunities, as well as 

drafting and updating the public FFIEC AML/BSA Examination Manual. While FinCEN is 

leveraging this experience and its relationships with delegated examiners, additional 

resources will enable the bureau to comply with this AMLA requirement. 

Timely and effective AMLA and CTA implementation continues to be FinCEN’s top priority 

and presents significant complexity and resource challenges. We are working diligently with our 

industry partners and law enforcement and regulatory stakeholders to implement these numerous 

provisions to further the national security, financial integrity, and innovative strength of the 

United States and protect the American people. 

Increase Office of Chief Counsel Staff +$2,720,000 / +10 FTE 

The Office of Chief Counsel staff increase commensurate with FinCEN’s workload. 
FinCEN - 6 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 36,687 40,545 64,939 

11.3 - Other than full-time permanent 190 150 150 

11.5 - Other personnel compensation 1,017 891 891 

11.8 - Special personal services payments 158 0 0 

11.9 - Personnel Compensation (Total) 38,052 41,586 65,980 

12.0 - Personnel benefits 12,751 13,862 21,993 

Total Personnel and Compensation Benefits $50,803 $55,448 $87,973 

21.0 - Travel and transportation of persons 18 319 1,339 

23.1 - Rental payments to GSA 4,849 4,239 4,431 

23.2 - Rental payments to others 61 32 567 

23.3 - Communications, utilities, and miscellaneous charges 2,920 3,056 3,433 

24.0 - Printing and reproduction 62 62 68 

25.1 - Advisory and assistance services 1,847 4,552 8,827 

25.2 - Other services from non-Federal sources 55,176 74,474 71,146 

25.3 - Other goods and services from Federal sources 12,328 14,142 20,945 

25.4 - Operation and maintenance of facilities 13 0 0 

25.6 - Medical care 151 0 0 

25.7 - Operation and maintenance of equipment 7,885 9,000 9,920 

26.0 - Supplies and materials 135 516 1,551 

31.0 - Equipment 8,382 4,010 10,419 

Total Non-Personnel $93,827 $114,402 $132,646 

Total Obligations $144,630 $169,850 $220,619 

 

Full-time Equivalents (FTE) 271 288 423 

* Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

** Includes TEOAF funding for Beneficial Ownership Secure System in the amounts of $6.73M in FY 2021, $22.5M in FY 2022 and

requesting $6.25M in FY 2023. 
FinCEN - 7 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

FINANCIAL CRIMES ENFORCEMENT NETWORK 

Federal Funds 

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 $45,000 for official reception and 

representation expenses; and for assistance to Federal law 

enforcement agencies, with or without reimbursement, 

$210,330,000 of which not to exceed $94,600,000 shall remain 

available until September 30, 2025 for information technology 

and to implement Division F of the William M. (Mac) 

Thornberry National Defense Authorization Act for Fiscal Year 

2021 (Public Law 116-283). 

Note.--A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117-43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

Changes to the 

appropriations language 

represent the additional 

amount for necessary 

expenses of the Financial 

Crimes Enforcement 

Network for the 

implementation of 

Division F of the William 

M. (Mac) Thornberry 

National Defense 

Authorization Act for 

Fiscal Year 2021 (Public 

Law 116-283), and for 

expansion of the Office 

of Chief Counsel. 

E – Legislative Proposals 

FinCEN has no legislative proposals. 
FinCEN - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Most notably, FinCEN’s work supports Treasury’s Strategic Objective 2.2: Economic Measures 

to Advance National Security which seeks to enhance and protect national security through the 

application of targeted financial measures and review of certain foreign investments; and 

Strategic Objective 2.4: Transparency in the Financial System which seeks to increase 

transparency in the domestic and international financial system. 

Since the start of FY 2021, FinCEN had several noteworthy accomplishments highlighted below: 

Implementation of the Anti-Money Laundering Act of 2020 (AMLA) and its Corporate 

Transparency Act (CTA): 

As mentioned above, the AMLA/CTA sets the stage for a reassessment and expansion of the 

U.S. AML framework. Chief among the requirements of the AMLA are those related to the 

CTA, which require FinCEN to implement beneficial ownership reporting requirements for 

many corporations, LLCs, and other similar legal entities. 

In addition to the CTA, FinCEN is tasked with an extensive and resource intensive list of 

requirements all aimed at improving and enhancing the existing AML/CFT framework and 

expanding FinCEN’s role in innovation, regulatory reform, and industry engagement pertaining 

to the administration of the BSA. The AMLA requirements include several significant 

rulemakings, numerous Congressional reports and assessments, and specific programs that 

authorize significant resource allocations, to include hiring and supporting domestic liaison 

officers across the United States and foreign financial intelligence unit liaisons abroad, staffing a 

whistleblower program, appointing additional officers addressing innovation and information 

security, creating new subcommittees of the Bank Secrecy Act Advisory Group, etc. 

Regulatory Actions: 

AML/CFT Priorities (AMLA Section 6101): In June 2020, FinCEN published the first 

government-wide AML/CFT priorities which identify the most significant threats facing the 

United States, including: corruption, cybercrime, domestic and international terrorist financing, 

fraud, transnational criminal organizations, drug trafficking organizations, human trafficking and 

human smuggling, and proliferation financing. FinCEN also published two statements to provide 

guidance to covered institutions on how to approach these priorities. FinCEN will be publishing 

a notice of proposed rulemaking (NPRM) in 2022 to implement these priorities and make other 

amendments to financial institutions’ AML program rules. 

Arts and Antiquities (AMLA Section 6110): FinCEN published a notice in March 2021 to inform 

financial institutions about (1) the AMLA efforts related to trade in antiquities and art, (2) select 

sources of information about existing illicit activity related to antiquities and art, and (3) provide 

specific instructions for filing SARs related to trade in antiquities. FinCEN then published an 

advance notice of proposed rulemaking (ANPRM) related to trade in antiquities in September 

2021 seeking public comment on the proposed rules. FinCEN received over 30 comments to the 

ANPRM and is currently reviewing them to determine next steps and the content of a notice of 

proposed rulemaking that it will issue at a later date. 
FinCEN - 9 

CTA / Beneficial Ownership (AMLA Sections 6401-6403): FinCEN published an advance notice 

of proposed rulemaking in April 2021 seeking public comment on the implementation of 

beneficial ownership information reporting provisions of the CTA. FinCEN published a NPRM 

in December 2021 seeking public comment on the proposed rules focusing on who must report 

beneficial ownership information, when they must report, and what information they must 

provide. FinCEN received nearly 250 comments to the reporting NPRM and is currently 

reviewing them as it considers the issuance of a final regulation implementing the beneficial 

ownership information reporting requirements. FinCEN anticipates publishing later this year 

proposed rules on beneficial ownership information access and disclosure requirements as the 

next step in the CTA rulemaking series, as well as finalizing the rules on reporting beneficial 

ownership information.

SAR Sharing Pilot Program (AMLA Act 6212): FinCEN published an NPRM in January 2022, 

seeking public comment on the establishment of a limited-duration pilot program for sharing 

SARs. The pilot program would permit a financial institution with a SAR reporting obligation to 

share SARs and information related to SARs with the institution’s foreign branches, subsidiaries, 

and affiliates for the purpose of combating illicit finance risks. The proposed rule ensures the 

sharing of information process is subject to appropriate data security and personal confidentiality 

standards and limited by federal and state requirements. Comments to the proposed rule are due 

by March 28, 2022. Following receipt and review of those comments, FinCEN will begin the 

process of drafting a final rule to implement this section. 

Review of Regulations and Guidance (AMLA Section 6216): In December 2021, FinCEN 

published a request for information (RFI) seeking public comments on ways to streamline, 

modernize, and update the AML/CFT regime of the United States, including ways to modernize 

risk-based AML/CFT regulations and guidance to protect U.S. national security in a costeffective and efficient manner. FinCEN received nearly 140 comments to the RFI in February 

2022. FinCEN will review the comments to determine how best to incorporate the proposals into 

modernizing the AML/CFT regulations and guidance. 

Bank Secrecy Act Advisory Group (BSAAG) Subcommittees (AMLA Section 6207 and 

6302):

FinCEN created and is administering two new BSAAG Subcommittees: Innovation and 

Technology, and Information Security and Confidentiality, as required under AMLA Sections 

6207 and 6302, respectively. 

SAR Trends Analyses (AMLA Section 6206):

FinCEN published a Financial Trend Analysis on ransomware in October 2021 and another on 

environmental crimes in December 2021. FinCEN will publish additional Trend Analysis 

products on significant money laundering issues in FY 2023 as required by the AMLA. 

Enforcement and Compliance: 

From January 2021 to the present, FinCEN’s Enforcement and Compliance Division (ECD) 

implemented an Office of the Whistleblower and an interim whistleblower program to 

implement Section 6314 of the AMLA. From January through June 2021, ECD conducted an 
FinCEN - 10 

analysis of the viability of a No-Action Letter process at FinCEN, and drafted and submitted a 

report on June 28, 2021, to Congress on the same per Section 6305 of the AMLA. 

ECD designed policies and procedures to process and track “keep open” requests and engaged in 

extensive research and consultations with other financial regulators to begin implementation of 

the annual training programs requirement for BSA regulators. 

Modernize, Streamline, and Simplify Regulatory Authorities: 

In addition to the AMLA/CTA rulemakings, FinCEN made significant progress with respect to 

advancing regulatory initiatives impacting the AML framework this year, including BSA 

reporting requirements relating to the Paycheck Protection Program (PPP). 

 FinCEN issued a final rule to require customer identification program, AML program, and 

beneficial ownership requirements for banks lacking a federal functional regulator. 

 FinCEN issued NPRMs related to virtual currency and funds transmittal recordkeeping 

requirements. 

 Administrative Rulings: Closed 92 administrative ruling cases in FY 2021. 

 Pilots: FinCEN continues to discuss potential pilot programs with U.S. financial institutions 

and established one in FY 2021 to enable the more efficient sharing of SARs in a certain 

context.

 Real Estate ANPRM: In December 2021, FinCEN issued an ANPRM seeking public 

comment on potential rulemaking to create a recordkeeping and reporting requirements 

concerning certain all-cash real estate purchases. FinCEN is reviewing the nearly 150 

comments it received on the ANPRM and intends to prepare an NPRM for publication later 

this year. 

 Geographic Targeting Order (GTO) Regulation: On November 15, 2021, FinCEN issued a 

final rule modernizing the regulation implementing the GTO authority, which had not been 

updated despite several successive amendments to the statute. 

Guidance to Industry:

 During fiscal year 2021, FinCEN worked closely with federal and state banking agencies to 

update the Federal Financial Institutions Examination Council (FFIEC) BSA/AML 

Examination Manual. In total, 12 sections of the manual were updated. 

 FinCEN issued nine advisories and notices, including a ransomware advisory, charities fact 

sheet, and several addressing COVID-19-related fraud. 

 FinCEN published a number of public documents either jointly or in consultation with the 

FBAs, including a Joint Statement issued by the Board of Governors of the Federal Reserve 

System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the 

Currency, in consultation with FinCEN and the National Credit Union Administration, 

regarding Model Risk Management for Bank Systems Supporting Bank Secrecy Act/AntiMoney Laundering Compliance (April 9, 2021). 

 FinCEN issued a new Fact Sheet in December 2020 providing clarification on FinCEN’s 

information sharing program under Section 314(b) of the USA PATRIOT Act. 

 FinCEN’s Regulatory Support Section responded to over 13,500 incoming inquiries from 

industry and other stakeholders in FY 2021. 

 
FinCEN - 11 

BSA Enforcement and Supervision:

 FinCEN finalized four public civil enforcement actions in response to serious violations of 

the BSA, which resulted in the assessment of civil money penalties pursuant to 31 U.S.C. § 

5321 totaling, in the aggregate, $690,000,000.1

 FinCEN finalized more than 275 compliance matters. 

 Led or participated in two examinations of non-bank financial institutions and one depository 

institution. While FinCEN has delegated its examination authority under 31 CFR 1010.810, 

FinCEN may still conduct compliance examinations should a specific need arise and its 

limited staffing and resources allow. These examinations were targeted, limited-scope 

examinations based on leads specific to FinCEN priorities. 

 Conducted a FinCEN examination of compliance with a Geographic Targeting Order (GTO) 

at a title insurance company, including the development of attendant policies and procedures. 

Public-Private Engagement: 

 FinCEN continued to support the BSAAG AML Effectiveness Working Group and held 

several FinCEN Exchange events to facilitate information sharing among law enforcement, 

national security agencies, financial institutions and other private sector entities, and 

FinCEN, including relating to key issues like ransomware (November 2020 and August 

2021) and environmental crime (November 2021). 

 FinCEN continued to enhance and effectively execute its Rapid Response Program (RRP), 

which assists law enforcement in the recovery of funds stolen from U.S. victims of cyberenabled fraud schemes. The RRP has been used to confront cyber threats involving 

approximately 70 foreign jurisdictions and since its inception in 2015 has successfully 

assisted in the recovery of over $1.1 billion. From October 1, 2020 through January 31, 

2022, the RRP received 1,057 requests from law enforcement with a total value of 

approximately $378 million, of which the RRP assisted in recovering approximately $183 

million for U.S. victims (48% of the value reportedly stolen).2

 

 FinCEN hosted Innovation Hours meetings with Financial Technology, Regulatory 

Technology, and other firms creating innovative solutions to AML/CFT challenges, which 

FinCEN is using to enhance our national security through the promotion of responsible 

financial services innovation that furthers the purposes of the Bank Secrecy Act (BSA). 

Enhance Systems and Analytical Capabilities:

 Deployed new search capabilities targeted at transaction data and visualization capabilities 

on BSA reports information and transaction data. 

Expand Special Collections Efforts:

 During 2021, FinCEN twice re-issued GTOs that require U.S. title insurance companies to 

obtain beneficial ownership information for persons using shell companies that are involved 

in residential real estate transactions in twelve geographic areas. 

1

 For additional information, please see the Enforcement Actions posted on https://www.fincen.gov/newsroom/enforcement-actions 

2

 https://www.fincen.gov/sites/default/files/shared/RRP%20Fact%20Sheet%20Notice%20FINAL%20508.pdf 
FinCEN - 12 

 FinCEN also prepared, researched and issued nine new special collection requests and one 

renewal (demand letters, foreign financial agency regulations, and/or geographic targeting 

orders) on major illicit finance issues around the world. 

Financial Intelligence:

 FinCEN’s ongoing intelligence activities included at least 90 specific products for law 

enforcement, industry, and other partners. 

International Engagement and Information Sharing: 

 FinCEN actively engages in the work of the Egmont Group of Financial Intelligence Units 

(FIUs) and supports its analytical and operational activities. As the U.S. FIU, FinCEN 

engages in extensive information exchange of financial intelligence on behalf of itself and 

U.S. law enforcement with FIUs that are members of the Egmont Group, as appropriate. 

From October 1, 2020 through January 31, 2022, FinCEN received more than 1,400 

information requests from partner FIUs and provided more than 1,400 responses. FinCEN 

received more than 1,500 spontaneous information disclosures from partner FIUs and 

provided nearly 1,000 such disclosures to partner FIUs. In addition, FinCEN sent more than 

1,000 information requests to partner FIUs. 

FinCEN’s FY 2022 and FY 2023 Priorities include: 

 Continuing to effectively implement the AMLA/CTA, including: 1) the design and 

development of the beneficial ownership information technology system, 2) the statutorily 

mandated beneficial ownership rulemakings under the CTA, and 3) approximately 40 

additional regulatory and other requirements under the AMLA, to include additional 

rulemakings, assessments, and guidance documents; periodic Congressional reporting; and 

numerous other provisions requiring coordination, collaboration with and feedback to law 

enforcement and financial institutions, among other things. FinCEN seeks the resources for 

the personnel and technology needed to meet these significant and impactful statutory 

requirements. 

 Updating FinCEN’s mission and priorities in the context of a post-pandemic economic 

recovery, AMLA/CTA implementation, and interference from foreign state actors. This 

includes an emphasis on advancing the innovative strength of the U.S. financial system, 

financial inclusion, and countering abuse by malign state actors and domestic terrorists, as 

well as corporate and political corruption that undermine the integrity and opportunity of the 

financial system, beyond the prior, post-9/11 emphasis on foreign terrorists. 

 Continuing to develop cyber-related expertise and capacity to address cyber-related finance 

threats, including the rising threat of ransomware and other criminal activity. 
FinCEN - 13 

B – Budget and Performance by Budget Activity 

2.1.1 – BSA Administration and Analysis Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $115,003 $115,003 $117,800 $126,000 $126,963 $126,963 $210,330 

Reimbursable Resources $2,526 $2,198 $1,771 $3,000 $1,941 $3,500 $3,500 

TEOAF 0 0 0 0 $6,728 $22,500 $6,250 

Budget Activity Total $117,529 $117,201 $119,571 $129,000 $135,632 $152,963 $220,080 

Full-time Equivalents (FTE) 275 281 273 265 271 288 423 

Workload Output/Activity FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Estimate Estimate Estimate 

Number of SARs filed 2,401,896 2,537,225 2,698,841 3,039,421 3,524,610 2,863,200 3,595,102 3,667,004 

Number of total BSA reports 

filed 19,322,891 20,393,947 20,755,285 20,051,834 23,036,995 21,593,799 23,497,735 23,967,690 

Number of BSA users 11,452 11,739 12,801 13,047 13,260 13,581 13,525 13,796 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Domestic Law 

Enforcement and Foreign 

FIUs who Assert Analytic 

Products Used Led to 

Detection and Deterrence of 

Illicit Activity 

92% 95% 92% 97% 96% 90% DISC DISC 

Percentage of Domestic Law 

Enforcement and Regulators 

Who Assert Queried BSA 

Data Led to Detection and 

Deterrence of Illicit Activity 

86% 85% 92% 90% 93% 89% 90% 90% 

Percentage of Users Satisfied 

with FinCEN Information 

Sharing Systems 

87% 86% 89% 88% 87% 87% 85% 85% 

Key: DISC - Discontinued

BSA Administration and Analysis Budget and Performance 

($210,330,000 from direct appropriations, $6,250,000 from TEOAF Strategic Support, 

$3,500,000 from reimbursable sources): 

FinCEN is a bureau of the U.S. Department of the Treasury. The Director of FinCEN reports to 

the Under Secretary for the Office of Terrorism and Financial Intelligence (TFI). FinCEN serves 

two primary roles in the financial regulatory and anti-money laundering framework: 1) 

administrator and primary regulator of the BSA; and 2) FIU for the United States. In carrying 

out its mission, FinCEN has numerous statutory areas of responsibility: 

 Developing and issuing regulations under the BSA, including the regulatory requirements of 

the AMLA/CTA which are codified as part of the BSA; 

 Enforcing compliance with the BSA, at times in partnership with law enforcement and other 

regulatory partners; 

 Maintaining a network of information sharing with FIUs in 166 partner countries that are part 

of the Egmont Group of FIUs; 

 Receiving millions of new financial reports each year; 

 Securing and maintaining the BSA database, with over 300 million reports; 
FinCEN - 14 

 Analyzing and disseminating financial intelligence to federal, state, and local law 

enforcement, federal and state regulators, foreign FIUs, and industry; and 

 Promoting authorized information sharing and coordination among law enforcement, FIUs, 

regulatory partners, and industry. 

Description of Performance: 

FinCEN conducts four annual surveys of the BSA user-facing systems, information sharing 

tools, and to assess the value of FinCEN’s data and analysis. The results provide valuable 

feedback on FinCEN’s performance safeguarding the financial system from illicit use, 

combatting money laundering, and promoting national security. 

Additionally, FinCEN monitors the percentage of domestic law enforcement and regulators who 

assert that queried BSA data led to the detection and deterrence of illicit activity. The survey 

looks 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. 

The final performance measure is based on survey responses and represents user satisfaction 

with the BSA E-Filing System, FinCEN Query, and the Egmont Secure Web (ESW). Starting 

with industry, FinCEN collects and maintains BSA reports filed by financial institutions and 

other filers. In turn, FinCEN provides authorized users that include, where appropriate, 

Treasury’s Office of Terrorism and Financial Intelligence TFI) access to a query system 

containing 16 years of BSA data. FinCEN also provides foreign FIUs in the Egmont Group with 

a secure system for exchanging financial intelligence to combat money laundering and terrorist 

financing. 

 

C – Changes in Performance Measures 

With the publication of Treasury’s Strategic Plan for FY 2022-2026, FinCEN will work this year 

to baseline performance against the new strategic objectives. This could result in changes to 

performance measures in the FY 2024 budget. 

Performance Measure or Indicator Proposed Change and Justification

Percentage of Domestic Law 

Enforcement and Foreign FIUs who 

Assert that they Used Analytic Products 

that Led to Detection and Deterrence of 

Illicit Activity 

Discontinue. FinCEN is discontinuing this 

performance measure and is working to 

develop an improved replacement measure to 

assess performance. 

Section III – Additional Information 

A – Summary of Capital Investments 

As the administrator of the BSA, FinCEN receives valuable information reported and collected 

under BSA requirements, which totaled more than 23 million filings in FY 2021. To successfully 

fulfill its mission, FinCEN relies on secure, advanced IT to manage the collection, processing, 
FinCEN - 15 

storage, analysis, and dissemination of BSA information that contributes to the strength of and 

confidence in the U.S. financial system. On January 1, 2021, Congress passed the National 

Defense Authorization Act (NDAA), which includes the Corporate Transparency Act (CTA). 

The CTA dictates that many companies disclose beneficial ownership information to FinCEN. 

As a result, FinCEN, has expanded its IT investment portfolio to include the resources necessary 

to securely collect, process, store, and disseminate beneficial ownership information. 

 

FinCEN’s IT strategy already takes into account the growing need for financial institutions to 

meet obligations as efficiently as possible, while ensuring that FinCEN and law enforcement 

agencies receive accurate, timely, and reliable BSA and beneficial ownership information to 

track money trails, identify money laundering, and unravel terrorist financing networks. 

FinCEN’s IT strategy also focuses on the critical need to improve the quality and accessibility of 

its data and increase responsiveness to stakeholders by maintaining and building upon flexible 

and innovative technical solutions. FinCEN’s FY 2023 request include an increase in its IT 

portfolio by approximately $29M annually, to support FinCEN’s current mission architecture 

and continue the development support and maintenance for the beneficial ownership 

requirements of the CTA. This increase is required to fully fund FinCEN’s mission IT platform, 

which is the foundational architecture for the CTA beneficial ownership system. FinCEN’s 

initial development costs includes obligations from TEOAF Strategic Support in FY 2021 ($6.73 

million), FY 2022 ($22.5 million), and FY 2023 ($6.25 million). 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


 

Department of the Treasury 

Alcohol and Tobacco Tax and 

Trade Bureau 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
TTB - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .......................................................................................... 4

1.2 – Budget Adjustments Table ................................................................................................. 5

C – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 – Collect the Revenue Resources and Measures .............................................................. 10

Collect the Revenue Budget and Performance ......................................................................... 10

2.1.2 – Protect the Public Resources and Measures .................................................................. 15

Protect the Public Budget and Performance ............................................................................. 16

C – Changes in Performance Measures .................................................................................... 22

Section III – Additional Information ........................................................................................ 22

A – Summary of Capital Investments ....................................................................................... 22

 
TTB - 3 

Section I – Budget Request 

A – Mission Statement 

To collect taxes on alcohol, tobacco, firearms, and ammunition; protect consumers by ensuring 

the integrity of alcohol products; ensure only qualified businesses enter the alcohol and tobacco 

industries; and prevent unfair and unlawful market activity for alcohol and tobacco products. 

B – Summary of the Request 

Supporting the nation’s economic vitality is at the core of the work performed by the Alcohol 

and Tobacco Tax and Trade Bureau (TTB). The bureau’s role in permitting, regulating, and 

taxing the alcohol, tobacco, and firearms industries facilitates a compliant and fair marketplace 

for those engaged in the manufacture and trade of these commodities, and ensures that the 

Federal government has the resources needed to fund national priorities. In FY 2021, TTB 

collected approximately $20.3 billion in excise taxes from the alcohol, tobacco, firearms, and 

ammunition industries. 

The economic impact of COVID-19 is still reverberating across U.S. communities, including for 

many of the small breweries, wineries, and distilleries that comprise the majority of TTB 

taxpayers. At the FY 2023 funding level, and in support of the Administration’s economic 

recovery and growth priorities, TTB plans to focus on timely service levels and facilitating 

voluntary compliance by simplifying tax and regulatory requirements, modernizing its online 

filing systems, and issuing clear and timely industry guidance. These efforts will also increase 

market competition and ensure all have an equal opportunity to thrive. 

Complex or overly burdensome regulatory requirements do not serve the interests of taxpayers or 

the government. In FY 2023, TTB plans to continue three major regulatory reform efforts in 

permitting, tax, and alcohol beverage labeling to consolidate, clarify, or simplify requirements 

and, where possible, minimize filing frequency. The revised requirements will ease the burdens 

placed on new and existing businesses and make it easier for them to voluntarily comply. At the 

same time, TTB plans to tailor the requirements to improve data quality and better detect risk to 

direct its enforcement efforts. As industry recovers and expands, these efforts are required to 

sustain service times and support all taxpayers in meeting their tax obligations. 

In FY 2023, TTB’s mission will also expand to include a new import claims program. The Craft 

Beverage Modernization Act (CBMA), as amended, transfers jurisdiction for import-related 

provisions from U.S. Customs and Border Protection (CBP) to Treasury as of January 1, 2023. 

Treasury intends for TTB to administer the new CBMA import claims program. TTB is taking a 

data-driven and risk-based approach to administer the new claims program to provide importers 

with CBMA tax benefits. The FY 2023 request supports the development and maintenance of 

custom information technology (IT) modules for foreign producers and importers to enable 

online filing and processing of claims as well as additional tax administration and enforcement 

staff necessary to timely issue refunds. 

At the FY 2023 funding level, TTB will also prioritize other improvements to its online filing 

systems as part of its IT modernization strategy to develop an integrated online experience for all 

tax and regulatory transactions with TTB. By improving the ease and usability of its online 
TTB - 4 

platforms, TTB aims to increase electronic submissions, improve timely filings, and support 

taxpayer compliance. Reducing paper submissions also supports “green” filing practices in line 

with the Administration’s climate change agenda. 

TTB will also continue to focus on providing clear and consistent industry guidance to facilitate 

the submission of compliant filings. Omissions and errors on permit and alcohol label 

applications create inefficiencies for TTB and delays in service to industry. Undue delays in 

service can be a barrier to industry expansion and ongoing product innovation that fuel the 

economy. Further, to support these industries as they rebound, TTB plans to use compliance data 

to target and tailor its guidance, industry outreach, and enforcement activities, ensuring that 

businesses have the information they need to comply and are operating on a level playing field. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan1 Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Collect the Revenue 207 57,526 222 57,526 262 77,821 18.0% 35.3% 

Protect the Public 258 66,811 265 66,811 265 73,042 0.0% 9.3% 

Subtotal New Appropriated Resources 465 $124,337 487 $124,337 527 $150,863 8.2% 21.3% 

Other Resources 

Reimbursables and Offsetting Collections2 14 7,072 12 7,880 12 7,880 0.0% 0.0% 

Unobligated Balances from Prior Years3

 22 4,611 21 4,824 21 4,450 0.0% -7.8% 

Transfers In/Out

4

 0 1,087 0 838 0 0 NA -100.0% 

Subtotal Other Resources 36 $12,770 33 $13,543 33 $12,330 0.0% -9.0% 

Total Budgetary Resources 501 $137,107 520 $137,880 560 $163,194 7.7% 18.4% 1

FY 2021 New Appropriated Resources by Budget Activity reflect levels appropriated in P.L. 116-260, the Consolidated Appropriations Act of 

2021. FY 2021 Full-time Equivalents (FTE) and FY 2021 Other Resources reflect actuals. 

2

Includes reimbursements from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund, Community Development 

Financial Institution (CDFI) Fund, and Treasury Departmental Offices; and offsetting collections from Puerto Rico Cover-Over Program. 

3

All years include carryover of unobligated balances from prior two-year set aside funding for trade practice enforcement and recoveries of 50 

percent in unobligated balances from prior one-year funding. 

4

FY 2021 actual obligations include a transfer from TEOAF Secretary's Enforcement and Strategic Support Fund. FY 2022 approved amounts 

includes approved TEOAF transfer from the Secretary's Enforcement and Strategic Support Fund. 
TTB - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 508 $124,337 

Changes to Base: 

2023 Maintaining Current Levels (MCLs): 0 $4,604 

Pay Annualization (2.7% average pay raise) 0 $572 

Pay Raise (4.6% average pay raise) 0 $2,942 

Non-Pay 0 $1,090 

Other Adjustments: 0 $6,993 

Adjustments to meet Current Operating Levels 0 $6,993 

Subtotal Changes to Base 0 $11,597 

FY 2023 Current Services 508 $135,934 

Program Changes: 

Program Increases: 40 $14,929 

CBMA Import Claims 40 $14,929 

FY 2023 President's Budget Request 548 $150,863 

C – Budget Increases and Decreases Description 

Maintaining Current Level (MCLs)............................................+$4,604,000 / +0 FTE 

Pay Annualization (2.7%) +$572,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$2,942,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$1,090,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Other Adjustments...............................................................+$6,993,000 / +0 FTE 

Adjustments to meet Current Operating Levels, +$6,993,000 / +0 FTE 

Treasury requests adjustments to meet current services operating levels. Current operating levels 

include the annualization of the January 2021, 1.0% average pay raise, 2.7% average pay raise in 

January 2022, FY 2022 FERS Contribution Increases, and FY 2022 non-labor expenses. 

Program Increases...............................................................+$14,929,000 / +40 FTE

CBMA Import Claims, +$14,929,000 / +40 FTE 

TTB is requesting $14.9 million and 40 FTE to implement and administer CBMA provisions 

related to imported alcohol. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 made 

permanent most CBMA provisions of the Tax Cuts and Jobs Act of 2017, with several 

amendments, including transferring responsibility for administering the CBMA provisions 

related to imported alcohol from CBP to Treasury as of January 1, 2023. Treasury intends for 

TTB to administer the new CBMA import claims program. 

Under the law, starting in 2023, alcohol beverage importers will no longer be eligible for the 

CBMA tax benefits at the time of entry; rather, importers will be required to pay the full tax rate 
TTB - 6 

at entry and submit quarterly refund claims to TTB to receive the benefits. TTB anticipates that 

this program will roughly double its current claims workload, estimating that importers will 

submit approximately 7,000 claims per year for roughly $250 million in refunds. 

TTB requires additional resources to implement and administer the new import claims program 

so that current services and operations are not disrupted. This investment funds the full-year cost 

for the program, including: 

 IT Systems and Support, +$5,500,000 / +0 FTE

TTB plans to develop two online modules that will enable TTB to receive import claims and 

foreign producer assignments electronically as well as develop automated validations for 

these claims. 

 Foreign Producer Registration & Import Claims and Bond Processing, +$3,386,000 / +22 

FTE 

TTB requests additional staff to process foreign producer registrations, importer claims, and 

related submissions. 

 Enforcement and Risk Analysis, +$4,536,000 / +11 FTE 

TTB plans to develop risk-targeting tools to identify ineligible or fraudulent claims for 

review and field enforcement. TTB will also acquire new data sets to improve and maintain 

visibility into controlled groups. 

 Regulations and Guidance, +$1,009,000 / +5 FTE 

TTB requests additional staff to develop implementing regulations and industry guidance and 

to educate industry stakeholders on new requirements. 

 Administrative Support, +$498,000 / +2 FTE

TTB requests additional administrative support to address human resources-related needs. 
TTB - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 56,625 58,541 66,682 

11.5 - Other personnel compensation 1,008 1,005 1,095 

11.5 - Overtime 292 582 635 

11.9 - Personnel Compensation (Total) 57,925 60,128 68,411 

12.0 - Personnel benefits 20,805 21,573 25,241 

13.0 - Benefits for former personnel 0 5 5 

Total Personnel and Compensation Benefits $78,730 $81,706 $93,657 

21.0 - Travel and transportation of persons 389 1,544 1,903 

22.0 - Transportation of things 31 30 34 

23.1 - Rental payments to GSA 4,589 4,342 4,557 

23.3 - Communication, utilities, and misc charges 900 1,300 1,252 

24.0 - Printing and reproduction 204 315 329 

25.1 - Advisory and assistance services 10,285 10,489 22,164 

25.2 - Other services from non-Federal sources 14,886 15,805 17,812 

25.3 - Other goods and services from Federal sources 9,401 9,388 10,632 

25.4 - Operation and maintenance of facilities 21 22 24 

25.7 - Operation and maintenance of equip 3,295 3,295 2,621 

26.0 - Supplies and materials 289 375 388 

31.0 - Equipment 8,948 4,451 3,622 

32.0 - Land and structures 218 0 0 

Total Non-Personnel $53,456 $51,356 $65,336 

Total Obligations1 $132,186 $133,062 $158,993 

 

Full-time Equivalents (FTE)2 501 520 560 

*Amounts reflect obligations from all fund sources including annual appropriation, carryover balances, reimbursables, offsetting 

collections, and transfers. 

1

FY 2021 reflects actual obligations totaling $132.2 million, of which $125.1 million was from direct resources (new 

appropriations, carryover from prior years, and a TEOAF transfer) and $7.0 million was from reimbursable resources/offsetting 

collections. FY 2022 reflects anticipated obligations totaling $133.1 million, of which $125.5 million is from direct resources (new 

appropriations and carryover from prior years) and $7.6 million is from reimbursable resources/offsetting collections. FY 2023 

reflects anticipated obligations totaling $159.0 million, of which $151.1 million is from direct resources (new appropriations and 

carryover from prior years) and $7.9 million is from reimbursable resources/offsetting collections. 2

FY 2021 FTE reflects actual total FTE of 501, of which 487 FTE was from direct resources and 14 FTE was from reimbursable 

resources/offsetting collections. FY 2022 reflects anticipated total FTE of 520, of which 508 FTE is anticipated from direct 

resources and 12 FTE is anticipated from reimbursable resources/offsetting collections. FY 2023 reflects anticipated total FTE of 

560, of which 548 FTE is anticipated from direct resources and 12 FTE is anticipated from reimbursable resources/offsetting 

collections.

 
TTB - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of carrying out section 1111 of the 

Homeland Security Act of 2002, including hire of passenger motor 

vehicles, $150,863,000; of which $5,000,000 shall remain 

available until September 30, 2024; of which not to exceed $6,000 

shall be available for official reception and representation 

expenses; and of which not to exceed $50,000 shall be available 

for cooperative research and development programs for 

laboratory services; and provision of laboratory assistance to 

State and local agencies with or without reimbursement. 

Note.—A full-year 2022 appropriation for this account was not 

enacted at the time the Budget was prepared; therefore, the Budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of Public Law 117–43, as 

amended). The amounts included for 2022 reflect the annualized 

level provided by the continuing resolution. 

E – Legislative Proposals 

TTB has no legislative proposals. 
TTB - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, TTB is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. TTB is 

responsible for administering and enforcing the sections of the Internal Revenue Code of 1986 

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 the alcohol 

beverage industry for the protection of U.S. consumers. TTB generally administers its 

jurisdiction according to five strategic goals that support U.S. economic growth and stability: 1) 

Business Qualification; 2) Labeling Modernization; 3) Tax Compliance; 4) Cross-Border Tax 

Risk; and 5) Workforce Readiness. TTB’s strategic goal of Workforce Readiness underpins 

TTB’s performance across all of its goals and objectives. 

TTB’s strategic goals to improve Tax Compliance and address Cross-Border Tax Risk ensure 

that the Federal government has the resources needed to fund national priorities through fair and 

effective administration and enforcement of tax laws. These efforts support Treasury’s 

Objective 1.1 (Tax Administration and Policy), which aims to enhance tax compliance and 

service, as well as improve tax policy design. The industries TTB regulates have grown 

significantly in recent years, which presents taxpayer service and enforcement challenges, 

particularly in light of recent tax reform legislation. These reforms expand TTB’s tax mission to 

include a new import claims program. This new program requires additional investments in TTB 

to ensure businesses are timely refunded for claims filed on imported alcohol beverage products 

and to prevent fraudulent claims. At the FY 2023 funding level, TTB will also continue its 

multi-year IT system modernization of outdated tax and regulatory systems to support efficient 

filing and processing. In addition, TTB plans to leverage technology to improve the TTB 

taxpayer experience and increase voluntary compliance, consistent with the Administration’s 

priorities. IT modernization also facilitates data analytics to timely detect fraud, tax evasion, and 

critical compliance issues that undermine a level playing field. 

TTB’s strategic goals to enhance Business Qualification and implement Labeling Modernization 

ensure that lawful U.S. alcohol businesses are competitive and thriving in the global 

marketplace. These efforts support Treasury’s Objective 1.3 (Economically Resilient 

Communities) by promoting economic recovery and growth for small businesses in communities 

across the country, including the thousands of breweries, wineries, and distilleries that TTB 

regulates. To this end, timely service remains a priority for TTB. As the demand for TTB 

services from these businesses continues to rise, and within the FY 2023 resources, TTB will aim 

to sustain improved service times for permit, label, and formula approvals. TTB will combine IT 

system modernization efforts with streamlined application requirements and enhanced guidance 

to achieve its performance goals for customer service. These strategies will help TTB maintain 

timely service by increasing the number of first-time approvals and reducing delays caused by 

extensive back-and-forth with industry members to correct application errors. 
TTB - 10 

B – Budget and Performance by Budget Activity 

2.1.1 – Collect the Revenue Resources and Measures 

Dollars in Thousands 

 

 Resource Level 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $53,560 $53,560 $58,856 $57,513 $57,526 $57,526 $77,821 

Reimbursable and Offsetting Collections $3,217 $3,923 $3,573 $4,131 $3,654 $4,807 $4,807 

Unobligated Balances from Prior Years $125 $112 $214 $98 $77 $113 $125 

Transfers In/Out $197 $902 $597 $349 $1,087 $419 0 

Budget Activity Total $57,099 $58,497 $63,240 $62,091 $62,344 $62,865 $82,753 

Full-time Equivalents (FTE) 223 212 213 211 211 226 267 

The FY 2017 - FY 2021 Appropriated Resources level represents the approved operating plan; all other resources in FY 2017 - FY 2021 

represent actual obligations. 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Amount of Revenue Collected Per 

Program Dollar ($) 406 369 339 380 375 I I I 

Voluntary Compliance from Large 

Taxpayers - Overall (%) 90 90 91 91 93 95 95 95 

By Payment 99 99 99 99 99 - - - 

By Tax Return 79 82 84 84 87 - - - 

By Operational Report 82 82 83 83 87 - - 

Electronically Filed Tax Returns - 

Pay.gov (%) 35 37 41 43 48 55 60 65 

Electronically Filed Operational Reports - 

Pay.gov (%) 39 40 42 46 50 55 60 65 

Claims Processed within Service 

Standard (30-45 days) (%)1 71 85 85 85 

Key: I – Indicator 1

Includes current tax claim types, including drawback claims from manufacturers of nonbeverage products (30-day service standard) and all other 

claims (45-day service standard); in FY 2023, TTB will modify the measure to include CBMA import claims. 

Collect the Revenue Budget and Performance 

($77,821,000 from new direct appropriations, $125,000 from unobligated balances from the 

prior year, and $4,807,000 from reimbursable sources): 

This budget activity includes all tax processing, verification, enforcement, and outreach efforts 

related to administering the Federal tax code for alcohol, tobacco, firearms, and ammunition 

products. TTB collects approximately $20.3 billion in Federal tax revenue annually from a tax 

base of nearly 37,000 businesses. TTB’s regulated taxpayers include distilleries, breweries, and 

wineries, as well as manufacturers and importers of tobacco and firearms. 

TTB extends the reach of its enforcement resources through advanced analytics and risk-based 

audits and investigations. To ensure a level playing field for those engaged in the trade of these 

regulated commodities, TTB also takes appropriate enforcement action to detect and address tax 

evasion and fraud to ensure all products sold in the marketplace are properly taxpaid. 

Other Resources.............................................................................. $4,932,000 

Unobligated Balances from the Prior Year..........................................................$125,000 

Offsetting Collections/Reimbursables............................................................. $4,807,000 

Other resources that fund this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of TTB’s Puerto Rico field office, which 

are offset against the roughly $520 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported to the United States; reimbursement from 
TTB - 11 

Community Development Financial Institution (CDFI) for IT services provided by TTB; and 

funding from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund to 

cover investigative expenses, data systems, and training. 

Description of Performance: 

TTB combines measures and indicators to demonstrate the effectiveness and efficiency 

with which TTB operates its tax administration function, including through facilitating 

voluntary compliance as well as field enforcement efforts to address critical threats to 

Federal revenues. Through FY 2023, TTB plans to improve tax compliance by updating 

its tax filings, processes, and technologies; enhancing its capacity to timely identify and 

address non-compliance through analytics and other detection tools; and continuing to 

improve taxpayer education and outreach. 

The Amount of Revenue Collected per Program Dollar indicator uses annual collections 

figures and the actual expenditures and obligations for collection activities to quantify the 

efficiency of the TTB tax collection program. In FY 2021, TTB achieved a return on 

investment of $375 for every program dollar spent on collection activities. 

Revenue from the alcohol, tobacco, and firearms and ammunition industries increased yearto-year, with alcohol collections up 4 percent, and firearms and ammunition excise tax 

collections up 66 percent. Tobacco collections continued to steadily decline, down another 4 

percent in FY 2021, in line with shifts in consumption patterns, product manufacturing, and 

trade. 

At the same time, TTB’s tax administration and enforcement costs have generally decreased 

over the past two years, as TTB continued to curtail much of its in-person enforcement 

activities due to the pandemic. TTB anticipates returning to a more robust in-person outreach 

and enforcement posture in FY 2022, guided by direction from the Administration and public 

health officials. 

Going forward, TTB will continue to monitor its return on investment for its Collect the 

Revenue activities as a key indicator; however, results will depend on several external factors, 

including the long-term effects of the craft beverage modernization provisions, and the 

duration and impact of the COVID-19 pandemic on TTB-regulated industries. 

 Fostering voluntary compliance among taxpayers is a primary tax administration strategy for 

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Collections (in Millions)

Alcohol and Tobacco Excise Tax Collections

Alcohol Tobacco

$50

$250

$450

$650

$850

$1,050

$1,250

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Collections (in Millions)

Firearms and Ammunition Excise Tax Collections

FAET
TTB - 12 

TTB. The Percent of Voluntary Compliance from Large Taxpayers is a key performance 

measure that shows the rate of compliance by large taxpayers (i.e., those that pay more than 

$50,000 in annual taxes) in voluntarily filing their required tax returns, operational reports, and 

payments on or before the scheduled due date. TTB uses its tax compliance data to improve the 

bureau’s ability to rate and prioritize taxpayers based on relative risk to ensure TTB addresses 

the most serious instances and patterns of non-compliance. 

To ensure adequate protection of Federal tax revenue, TTB established a high standard for its 

largest taxpayers, with a targeted filing compliance rate of 95 percent. In FY 2021, TTB 

achieved an overall compliance rate of 93 percent from its large taxpayers in meeting all tax 

filing requirements. The overall compliance rate increased from 91 percent in FY 2020. 

Payment compliance rates remained high at over 99 percent, indicating that the majority of 

reported liabilities were paid on time. Compliance rates for both tax returns and operational 

reports increased to 87 percent. These filings provide important information for tax verification 

and fraud detection, and require continued focus to improve compliance through FY 2023. 

As the taxpayer universe grows, and workloads increase, TTB has faced resource challenges in 

maintaining taxpayer service and voluntary compliance. In the last five years, the number of 

TTB taxpayers has increased over 40 percent, which has created additional workload and 

enforcement challenges, particularly in light of recent tax reforms. This growth has cut across 

industry types, with the most significant increases in small businesses entering the alcohol 

industry. Over time, with limited resources, TTB outreach efforts to educate industry members 

on tax requirements have also decreased. More recently, TTB had to defer planned tax policy 

and technology improvements and shift base resources to prepare to implement the new import 

refund claims program by the January 2023 statutory effective date. TTB has also faced 

competing enforcement priorities, including renewed efforts to address illicit trade practice 

activity in the alcohol industry, with directed funding for this purpose enacted in TTB’s 

appropriations since FY 2017. 

In FY 2021, to improve tax oversight, TTB refined its analytic tools and internal procedures to 

address identified non-compliance. New dashboard views of taxpayer compliance data include 

summary and detailed information about each compliance factor (i.e., late/missing tax returns, 

late/missing operational reports, late payments, and underpayments). Based on these data, TTB 

used streamlined procedures for reconciling taxpayer accounts and issuing assessments. At the 

same time, TTB employed new risk criteria for taxpayer referrals for field audits to address 

serious non-compliance issues that undermine the level playing field. These policy and process 

improvements proved effective, and have resulted in identified tax liabilities of $135 million and 

$32 million collections to date. While these assessments were necessary to protect revenue, at 

the same time, TTB also provided guidance to industry on payment options in cases of financial 

distress caused by COVID-19. 
TTB - 13 

At the FY 2023 funding level, improving compliance rates will remain a top priority. TTB 

plans to continue risk-based reviews of taxpayer accounts, with a focus on continued 

enhancements to analytic tools and expanding analysis into additional taxpayer segments. 

Over the next several years, TTB also plans to improve its education and outreach strategies 

to drive compliant behavior across TTB taxpayers, using compliance data to direct its annual 

outreach plan as well as to prioritize the development of new online tax guidance. These 

strategies will prove critical to supporting and increasing compliance by the thousands of 

small businesses that TTB regulates. 

TTB will also focus on increasing tax compliance by developing an improved and integrated 

online taxpayer experience, supported by the FY 2023 budget request. Today, TTB relies on 

Pay.gov, a Bureau of the Fiscal Service system designed for government payments, for the 

electronic filing of tax returns and operational reports. TTB’s two measures to monitor the 

Electronic Filing Rates for Tax Returns and Operational Reports in Pay.gov support ongoing 

efforts to reduce paper filings. 

Electronic filing rates for tax returns and operational reports trended positively in FY 2020, 

but remain low compared to other TTB e-filing systems. T TB ended the year at 48 percent of 

tax returns and 53 percent of operational reports submitted electronically, nearing or just over 

the annual target of 50 percent. These low rates impede TTB’s ability to timely and 

effectively detect and address non-compliance and add costs to making the data available for 

routine reconciliation or advanced analytics. Additional Pay.gov promotion is planned in 

FY 2022, and may improve e-filing rates; however, more significant tax system 

modernization is likely required for TTB to achieve its FY 2023 target of 65 percent, as well 

as its long-term target of 80 percent. 

At the FY 2023 funding level, and as part of its IT modernization efforts, TTB intends to 

implement phased releases to its tax system. Planned enhancements include a custom external 

interface to improve taxpayer options for electronic filing and enable online account 

Overall compliance trended down in the first part of the past 

decade – from 94% in FY 13 to 90% in FY 17. Recent 

enforcement efforts have increased overall taxpayer 

compliance to 93% in FY 21. Sustaining these 

improvements requires enhanced technology and guidance 

to support voluntary compliance by the increased number 

of TTB taxpayers. 

Compliance with tax payment remains high; however, 

lower compliance scores for required tax returns and 

operational reports pose challenges to verifying the taxes 

paid. In addition to IT and guidance, TTB plans to issue 

rulemaking to streamline its tax requirements to minimize 

filing burden and support voluntary compliance.

94%

90%

93%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Large Taxpayers Oveall Compliance Rate

Overall Compliance

TARGET: 95%

100% 99% 99%

88%

79%

87%

87% 82% 87%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Payments Tax Returns Operational Reports

Large Taxpayer Compliance Rate ‐ Overall Large Taxpayer Compliance Rate ‐ By Filing Type
TTB - 14 

management, as well as streamlined internal workflows to support TTB tax administration. In 

FY 2021, TTB continued to focus its IT development efforts on claims, completing the 

deployment of a new internal claims processing module to improve service times for issuing 

refunds on claims for manufacturers of nonbeverage products – filling a critical need for 

businesses potentially experiencing cash flow issues during the pandemic. In addition, TTB 

enhanced the web form for industry to file claims online, including improved security features, 

building on the interim solution deployed at the pandemic onset. TTB also continued critical 

identity management work, laying the groundwork for a single and secure industry member login 

across TTB’s online systems. 

These releases provide a foundation for the new integrated “myTTB” system, and prepare TTB 

to implement its new import claims jurisdiction. Starting in January 2023, TTB will be 

responsible for administering refund claims to importers eligible for reduced tax rates and credits 

under CBMA. These claims are currently administered by CBP; the Taxpayer Certainty and 

Disaster Tax Relief Act of 2020 transferred jurisdiction to Treasury as of January 1, 2023. 

Treasury delegated this authority to TTB. With FY 2023 funding, TTB will develop and 

implement two new IT systems modules – Foreign Producer Registration and Import Claims 

Submission/Processing. These modules are critical to TTB’s plans to implement the CBMA 

import refund claims program beginning in 2023, and include the associated security and data 

enhancements to facilitate implementation of the statute. TTB is adding a new measure of 

Claims Processed within Service Standard to monitor its ability to timely issue refund claims 

across all claims types. TTB’s service standards for drawback claims by manufacturers of 

nonbeverage products is 30 days; the service standard for all other claims is 45 days. CBMA 

import claims will be included beginning in FY 2023. In FY 2021, in baselining this new 

measure, TTB met its respective service standards for 71 percent of claims submissions. Going 

forward, TTB plans to continue focusing on process and IT system enhancements to support 

efficient claims filing and processing, with the aim of improving service levels and preventing 

potential service disruptions due to the anticipated influx of CBMA import claims. 

Effective tax administration also requires modernized IT systems to facilitate TTB’s datainformed approach to monitoring compliance and timely identifying potential tax evasion – 

which is even more critical in light of recent tax reforms. At present, resource-intensive manual 

analysis and reconciliation of multiple reports and returns by specialists, auditors, and 

investigators, in combination with other data sources, are required to detect and address high-risk 

activity. In the years ahead, and at the requested funding level, TTB plans to enhance its IT 

systems and analytics tools to facilitate TTB’s use of tax information to more effectively target 

its limited resources to suspected fraud or tax evasion schemes. 

At the FY 2023 funding level, TTB also plans to continue pursuing regulatory remedies to 

improve tax administration and industry compliance. TTB recognizes that a number of current 

tax-related reporting requirements are burdensome on industry and, in some cases, require 

significant TTB resources to administer. To address these issues, and to ensure that TTB’s tax 

requirements are commensurate with revenue risk, TTB completed a broad-based review of its 

tax return and operational report filing requirements. 

The review generated recommendations to significantly streamline requirements to decrease both 
TTB - 15 

the amount of information collected as well as the frequency with which it is collected. The 

review also incorporated changes to TTB requirements to address new risks to underreporting 

introduced by recent tax reforms. The net effect of these revisions would substantially reduce 

reporting and filing burdens for industry. 

This multi-year initiative will require rulemaking to implement. TTB will work these 

efforts in tandem with the IT modernization efforts funded through FY 2023 to deliver these 

new requirements through its new tax system interface. As TTB implements these efforts, 

the bureau will continuously evaluate and refine its regulatory and statutory options to find 

solutions to gain efficiencies for industry and TTB, while also boosting overall tax 

compliance. 

2.1.2 – Protect the Public Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $57,879 $57,879 $60,744 $60,744 $66,811 $66,811 $73,042 

Reimbursable and Offsetting Collections $2,637 $2,366 $2,666 $2,666 $3,418 $3,073 $3,073 

Unobligated Balances from Prior Years $125 $4,166 $4,865 $4,865 $4,534 $4,711 $4,325 

Transfers In/Out $0 $87 0 $0 $0 $419 $0 

Budget Activity Total $60,641 $64,498 $68,275 $68,275 $74,763 $75,014 $80,441 

Full-time Equivalents (FTE) 265 273 282 284 290 294 293 

The FY 2017 - FY 2021 appropriated resources level represents the approved operating plan; all other resources in FY 2017 - FY 2021 

represent actual obligations. 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Permit Applications Processed within Service 

Standards (75 days) (%) 48 71 58 84 92 85 85 85 

Alcohol Beverage Label and Formula 

Applications Processed within Service Standards 

(15 days) (%) 1

62 84 48 83 92 85 85 85 

Initial Error Rate for Permit Applications (%) 82 78 71 62 67 25 25 25 

Initial Error Rate for Label and Formula 

Applications (%) 43 40 37 34 31 25 25 25 

Electronically Filed Permit Applications (%) 85 87 89 92 95 95 95 95 

Electronically Filed Label and Formula 

Applications (%) 98 98 99 99 100 I I I 

Customer Satisfaction Rate with eGov Systems - 

Permits Online (%) 68 77 68 78 79 80 80 80 

Customer Satisfaction Rate with eGov Systems - 

COLAs Online (%) 82 81 77 80 83 80 80 80 

Customer Satisfaction Rate with eGov Systems - 

Formulas Online (%) 2 70 79 70 73 80 80 80 80 

Key: I – Indicator 1 Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. In FY 2018, following a spike in 

submission volume, TTB established service standards of 15 days for both labels and formulas; these standards have remained in effect through 

FY 2021. 

2 Results represent beverage alcohol filers only (nonbeverage alcohol formula submissions are excluded). 
TTB - 16 

Protect the Public Budget and Performance 

($73,042,000 from new direct appropriations, $4,325,000 from unobligated balances from the 

prior year, and $3,073,000 from reimbursable sources): 

This budget activity funds the programs that ensure the integrity of the products and industry 

members in the marketplace; promote compliance with Federal laws and regulations by more 

than 111,000 businesses that TTB regulates; facilitate fair and lawful domestic and international 

trade in the alcohol and tobacco commodities; and provide full and accurate alcohol beverage 

product information to the public as a means to prevent consumer deception. 

Other Resources................................................................................. $7,398,000 

Unobligated Balances from the Prior Year...........................................................$4,325,000 

Offsetting Collections/Reimbursables..................................................................$3,073,000 

Other resources that support this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of the TTB Puerto Rico field office, which 

are offset against the roughly $520 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported into the United States; reimbursement by 

CDFI for IT services provided by TTB; and funding from the TEOAF Mandatory Fund to cover 

investigative expenses, data systems, and training. 

Description of Performance: 

TTB uses a combination of measures to monitor the degree to which the bureau is improving 

industry services and customer experience through meeting its established service standards 

for permit, label, and formula applications; reducing error rates on applications to address 

processing delays caused by incomplete or non-compliant submissions; and increasing the 

user satisfaction rates with TTB’s online systems. TTB’s strategies to achieve its 

performance targets for these measures include a combination of improving internal 

processes, streamlining application requirements, modernizing IT systems, and providing 

clearer guidance to industry members. 

TTB monitors its timeliness in processing permit applications through its measure of the 

Percentage of Permit Applications Processed within Service Standards. As businesses rely 

on accurate information related to TTB service delivery in their operational planning, this 

measure provides important data related to a key outcome for TTB and its stakeholders. 

In recent years, the volume of submissions, particularly in the more complex application 

types related to producing alcohol beverage products, had caused approval times to increase. 

Approval times spiked to an average of over 120 days in FY 2016 – and over 200 days for 

alcohol producer applications – delaying operations for these applicants, many of whom had 

already had made significant upfront investments. In response, TTB established a priority 

performance goal in FY 2018 to improve the timeliness and consistency of service levels by 

reducing average processing times for new permit applications by 20 percent and achieving 

its service standard for 85 percent of applicants. 

Under this priority goal, TTB has significantly improved its service levels for permitting and 

met both aspects of this goal for the first time in FY 2021. Average approval times are now 

down to 34 days, another 20 percent reduction compared to last year, and a reduction of 65 
TTB - 17 

percent since this goal was established. 

TTB also made substantial gains in the second part 

of its priority goal to improve the reliability of its 

service levels. In FY 2021, TTB exceeded its 

target to achieve the 75-day service standard for 85 

percent of permit applicants, ending the year at 92 

percent. After reaching historic highs last year, 

submission volume normalized in FY 2021 as new 

permit applications related to hand sanitizer 

production subsided, contributing to these results. 

TTB also made significant improvements to its 

management of in-process permit applications, 

using new dashboards that display key metrics on 

the status and age of applications to proactively 

identify and address any processing delays. 

 

Sustaining these performance improvements in 

FY 2023 and beyond will require continued 

progress on several crosscutting initiatives. At the 

requested funding level, TTB will focus on 

achieving its performance target through ongoing 

process improvements, updates to its permit applications to simplify and streamline 

requirements, and IT modernization efforts to improve customer experience with Permits 

Online. 

TTB will also continue to improve its procedures to screen permit applicants, refining the 

risk criteria, tools, and processes used to vet applicants for suitability to hold a Federal 

permit. TTB will use the results of its field investigations to inform its risk factors to improve 

the timeliness and effectiveness of its business qualification process. 

TTB measures the Initial Error Rate on Permit Applications, which tracks how many 

applications are submitted either incomplete or with errors, to develop directed strategies to 

maintain timely service by increasing the number of first-time permit application approvals. 

Errors increase the overall workload volume, requiring extensive back-and-forth with 

applicants to ensure the application is complete prior to TTB review and verification, which 

adds to the total processing time. 

Over the last five years, TTB’s ability to meet its service standard for new permit 

applications has been challenged by high error rates, which have reached over 80 percent. 

Error rates are highest for prospective breweries, wineries, and distilleries, which have more 

complex applications compared to non-manufacturers (i.e., wholesalers and importers). In 

FY 2021, TTB achieved an error rate on new permit applications of 67 percent, up from 62 

percent in FY 2020, but still down significantly from 82 percent in FY 2017. This increase 

was anticipated following the expiration of expedited review policies employed last year for 

hand sanitizer-related applications. As operations normalized in FY 2021, error rates 

48%

58%

92%

FY 2017 FY 2018 FY 2019 FY2020 FY 2021

Permits Meeting Service Standard (<75 Days)

Permits Meeting Service Standard(75 Days)

TARGET: 85%

96

62

75

42 34

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Average Permit Approval Time (in calendar days)

TARGET: 75
TTB - 18 

increased, but are staying below 70 percent, indicating that recent efforts to streamline 

applications and processes are resulting in sustained improvements. Notably, error rates on 

brewery applications, an area of focused policy and process updates, have declined by 

approximately 10 percent since FY 2017. 

Going forward, TTB will continue to focus on reducing errors on permit applications that 

delay processing and frustrate applicants. The bureau expects significant progress in the next 

few years as it continues to simplify permit requirements and modernize IT systems to make 

filing easier. In FY 2021, TTB implemented a major IT system enhancement based on 

recommendations from a review of its process for returning permit applications for 

corrections. Previously, the Permits Online filing system did not allow an applicant to add or 

correct information on the application after it was submitted. Instead, it was handled via 

email exchange between the TTB specialist and applicant, creating processing inefficiencies 

and limiting effective oversight of in-process applications. As part of the IT modernization 

initiative, Permits Online now enables incomplete applications to be returned and corrected 

by the submitter within the system. Preliminary results indicate processing efficiencies as 

well as more effective communications with industry members that improve the user 

experience. The new functionality also provides TTB with better access to data on frequent 

errors to direct its system development efforts and improve online guidance. 

According to its measure of the Percent of Electronically Filed Permit Applications, which 

tracks the electronic filing rate for new business applications, TTB received 95 percent of 

permit applications via Permits Online in FY 2021. TTB attributes this ongoing increase to 

improvements in the Permits Online system, which provides improved guidance for first-time 

filers to navigate the application process. These system changes, combined with ongoing 

updates to online guidance available to industry, will continue to support TTB in achieving its 

FY 2023 targets to sustain electronic filing rates at or above 95 percent and reduce error rates 

on permit applications to 25 percent. 

 

As part of its strategy to optimize electronic filing systems, TTB measures Customer 

Satisfaction with the Permits Online eGov System through an e-mail survey to assess how 

satisfied businesses are in applying for a permit or registration through Permits Online. In 

FY 2021, system satisfaction rates increased to 79 percent, ending the year just short of the 80 

percent target. Notably, satisfaction continues to rise in conjunction with improved permit 

approval times, demonstrating a strong correlation between service levels and system 

satisfaction. 

TTB expects this positive trend to continue in line with improved service times, and as TTB 

implements broader system modernization efforts supported by FY 2023 funding to provide 

applicants with a single integrated online filing experience. Additionally, TTB will focus on 

improving the level of service at its call center for customers seeking live assistance with the 

permit application process. Going forward, and at the requested funding level, TTB will 

improve its use of call center data to understand customer pain points and support strategic 

system enhancements to improve customer satisfaction. 
TTB - 19 

Broader changes to TTB’s application requirements, some of which require rulemaking, are also 

underway. Using a zero-baseline approach in which no existing rule was taken for granted, TTB 

plans to modernize and streamline permit applications to minimize burden while meeting its 

statutory responsibilities and enforcement needs. The proposed changes are also informed by 

industry input on Treasury regulations that can be eliminated, modified, or streamlined to reduce 

burdens. 

In early FY 2022, TTB published the first in a series of proposed rulemakings to simplify permit 

applications, starting with distilled spirits plants. The proposed changes should dramatically 

reduce open text fields and requirements to upload supporting documentation. In addition to 

reducing compliance burdens, the simplified requirements should also reduce the number of 

initial permit applications submitted with errors, which should contribute to improved approval 

times. The requested funding level supports TTB plans to publish similar notices for breweries 

and wineries by the end of FY 2023. These changes may need to be fully implemented before 

TTB can achieve and sustain its targeted performance levels for FY 2023, particularly as the 

alcohol beverage industry continues to grow. 

In FY 2021, TTB received over 195,000 label and 28,000 formula applications for new alcohol 

beverage products. Given the importance of timely TTB approvals and the negative impact that 

delays have on U.S. businesses, TTB monitors its ability to provide timely and consistent service 

through its measure of the Percentage of Alcohol Beverage Label and Formula Applications 

Processed within Service Standards. TTB combines label and formula applications in this 

measure given the interdependent nature of these approvals. 

In the last five years, in line with industry expansion and product innovation, submission volume 

has increased 15 percent for labels and 100 percent for formulas. COVID-19 temporarily halted 

the growth in label applications in FY 2020. However, in FY 2021, submissions rebounded to 

near pre-pandemic levels, increasing 7 percent over FY 2020. Distilled spirits label applications 

continued to lead this trend, increasing more than 20 percent over last year and nearly 60 percent 

in the last five years, driven by ongoing product innovation. This innovation has also 

contributed to increased formula submission across all alcohol beverage commodities. Malt 

beverage formula submissions continue to increase at the fastest rate, up another 32 percent 

compared to last year, due to the use of novel ingredients and market trends toward flavored malt 

beverage products. 

In light of customer expectations, and supported by funding again enacted in the FY 2021 budget 

to accelerate approval times, TTB maintained a 15-day service standard for alcohol beverage 

label and formula applications in FY 2021. TTB set a performance target to meet this service 

standard for 85 percent of applications. Even as submission volume increased to pre-COVID 

levels, label performance improved in FY 2021. TTB ended the year at 93 percent of label 

applications meeting the 15‐day standard, exceeding its performance target. This was achieved 

through effective monitoring and management of the application backlog combined with 

strategic workforce management to efficiently deploy staff in response to submission 

fluctuations. B y employing similar strategies, TTB was also able to overcome significant 

increases in formula submissions to meet the 15-day standard for 92 percent of formula 

applications, also exceeding its performance target. By year-end, label and formula applicants 
TTB - 20 

received approval in just 6 days on 

average, well below the 15-day standard, 

and a significant improvement over the 

30 - 45 day standards that the bureau set 

and struggled to achieve in the past. 

TTB expects performance to continue to 

trend positively at the FY 2023 requested 

funding level through continuous queue 

management and strategic resource 

alignment. As a result, TTB intends to 

maintain its 15-day service standard for 

label and formula applications. TTB 

will also work to sustain its progress in meeting this standard for at least 85 percent of 

applications in FY 2023 through initiatives to modernize IT systems and guidance, with 

particular focus on high frequency application errors that increase total workload and challenge 

timely processing. 

Application errors are a key driver of label and formula processing times due to the 

additional review required for each resubmitted application. TTB uses its measure of the 

Initial Error Rate of Label and Formula Applications to monitor error trends and evaluate 

the effect of system and guidance enhancements on first-time approvals. In FY 2021, 

approximately 31 percent of label and formula applications were submitted incomplete or 

with errors, demonstrating continued year-to-year progress toward the targeted performance 

level of 25 percent. TTB made gains across commodity and application types. Notably, 

TTB ended the fiscal year at target for wine formulas and just above target at 26 percent for 

wine labels, proving the effectiveness of prior year strategies that focused on this 

commodity. 

In FY 2021, TTB continued to use a data-driven strategy to address the most frequent 

application errors, with the goal of increasing the number of applications that do not need to 

be returned for correction. TTB made progress in issuing improved guidance on TTB.gov 

for each alcohol beverage commodity. This includes detailed examples of compliant label 

and formula submissions by commodity, as well as web-based tools to make it easier for 

industry members to determine if their products require TTB formula approval prior to filing 

a label – a high frequency error. Going forward, TTB intends to further reduce error rates by 

increasing and integrating industry guidance available on TTB.gov and its online systems. 

Once complete, TTB will have completely refreshed its core labeling guidance in an easy-toread, user-friendly format to help improve compliant label submissions and reduce the 

burden of resubmissions on TTB and industry. 

In addition, TTB continued its initiative to modernize Federal alcohol beverage labeling 

regulations to reflect current TTB policy and modern industry practices. When finalized, the 

updated regulations will facilitate industry compliance through simplified regulatory 

standards and reduce burdens where possible. In April 2020, TTB published the first final 

rule in its phased labeling modernization rulemaking, codifying a number of liberalizing 

*Historic data adjusted to reflect the 15-day service standard for FY 2018 - 2021 to support trend analysis.

79%

93%

75%

92%

TARGET: 85%

FY 2017* FY 2018 FY 2019 FY 2020 FY 2021

Percentage of Applications Processed within Service Standards (15 days)

Labels Formulas

Label and Formula Applications Meeting Service Standard (15 Days)
TTB - 21 

proposals that received broad consensus and industry support. During FY 2021, TTB focused 

on updating industry guidance on TTB.gov so that industry could comply with and benefit 

from the new rules. Subsequent phases planned for fiscal years 2022 and 2023 will address 

specific labeling and advertising proposals for each alcohol beverage commodity, as well as 

crosscutting labeling issues. TTB will also indicate issues the bureau intends to close or 

reserve for future rulemaking. Through rulemaking, as well as policy guidance, TTB is 

seeking to equip industry with the information needed to submit more complete and accurate 

label and formula applications. 

Sustaining service levels in FY 2023 will also be supported through ongoing enhancements to 

TTB’s online systems. Over the last several years, TTB has deployed system enhancements to 

Certificate of Label Approvals (COLAs) Online and Formulas Online, focusing its efforts on 

compliance validations and embedded help features to address frequent application errors. These 

system releases have targeted both application errors (e.g., incomplete form fields) and label 

compliance errors (e.g., use of prohibited terms or images). FY 2021 results indicate that the 

changes implemented to date have proven effective, with error rates for label and formula 

applications ending the year at 31 percent, down 3 percent overall compared to last year, and 9 

percent since FY 2018. 

 

To be successful in this strategy, TTB must maintain high rates of electronic filing for label and 

formula applications. According to its measure of the Percent of Electronically Filed Label and 

Formula Applications, TTB now receives nearly 100 percent of applications via COLAs Online 

and Formulas Online, indicating that continued focus on system validations is warranted and will 

support performance goals in increasing accurate applications and accelerating approval times. 

In FY 2021, through its IT system modernization efforts, TTB expanded and improved systembased validations. These efforts included an enhancement to prevent the submission of label 

applications with low quality images. Problems with image legibility are among the top errors 

on label applications, and the system now flags low-resolution images so an applicant can 

address the error before they submit. Going forward, TTB plans to test the use of artificial 

intelligence to detect text and image errors on label applications, with the goal of alerting users 

to certain types of errors prior to submitting an application. As part of IT modernization, and at 

the FY 2023 funding level, TTB will also employ error data and user testing and feedback to 

make iterative enhancements to COLAs Online and Formulas Online to reduce application 

errors. 

Through its measures of Customer Satisfaction with COLAs Online and Formulas Online, TTB 

monitors user satisfaction with the process of submitting an application through its electronic 

filing systems, collecting responses via e-mail survey to assess factors such as ease of access, 

guidance, and overall experience. In FY 2021, satisfaction rates increased from 80 percent to 83 

percent for COLAs Online users, and 73 percent to 80 percent for Formulas Online users, 

meeting or exceeding the performance target for both systems. TTB attributes these increases in 

part to reduced processing times and anticipates that performance will continue to improve 

through FY 2023 in line with timely service levels. Further, TTB expects that system 

improvements funded at the FY 2023 request level, combined with regular review of survey 

feedback, will help TTB continue to exceed its user satisfaction target of 80 percent and attract 

users to its online systems to maintain its high electronic filing rates. 
TTB - 22 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

Claims Processed within Service 

Standard (30 - 45 days) (%) 

TTB is proposing to add a performance measure on 

the percentage of claims that meet service standards, 

which will capture the different types of TTB claims 

(drawback and other claims as of FY 2022, and 

CBMA import claims as of FY 2023). 

Section III – Additional Information 

A – Summary of Capital Investments 

Information Technology 

TTB’s Strategic Plan establishes the vision and objectives for the bureau in the business context. 

TTB’s Information Technology (IT) Strategic Plan is a five-year plan based on its business 

strategy, which includes the bureau’s mission, vision, goals, and objectives from an IT 

perspective. This plan charts the course the bureau will follow in the coming years to develop 

and implement IT solutions that are aimed at streamlining the collection of data, leveraging web 

technologies, and continuing to make the internet the method of choice for the reporting and 

exchanging of information between businesses and TTB. By aligning business and technical 

strategy, TTB is able to leverage technology to enable the bureau to meet its objectives in the 

most efficient and cost-effective manner while identifying ways to minimize system redundancy. 

TTB has no major IT investments based on the OMB and the Department of Treasury criteria. 

Several non-major investments, however, directly support the mission, strategy, and day-to-day 

operations of the bureau. These include: 

TTB Tax System: This investment consists of several component applications that ensure fair 

and proper collection of revenue from the industry members for alcohol, tobacco, firearms, and 

ammunition excise taxes and compliance with excise tax laws and regulations. 

TTB Regulatory System: This investment includes applications that streamline the beverage 

and nonbeverage alcohol formula approval process and COLA issuance for tax and regulatory 

compliance. 

TTB General Support Services: This investment provides TTB users with the infrastructure 

applications necessary to conduct daily business. 

TTB Enterprise Architecture: This investment supports strategic management of IT operations 

(e.g., business process redesign efforts not part of an individual investment, enterprise 

architecture development, capital planning and investment control processes, procurement 

management, and IT policy development and implementation) and costs for Chief Information 

Officer functions. 

In addition to leveraging IT to support the mission, strategy, and day-to-day operations of the 

bureau, TTB supports and maintains strategy alignment with OMB and Treasury through 

enterprise-wide IT initiatives. These include Cyber Security; IT Infrastructure; Electronic 

Identity and Access Management (HSPD-12); Enterprise-wide Contracts and Services; and 

Program Metrics and Milestones. 
TTB - 23 

Scientific Equipment for Laboratories 

This investment will enable TTB’s chemists to continue to provide accurate and reproducible 

scientific data and laboratory results to support regulatory compliance, tax enforcement, tax 

classification, rulemaking, and investigations for both the alcohol and tobacco commodities. 

Laboratory instruments require periodic replacement, as they have finite lifecycles due to use and 

as advances in scientific technology render older instruments obsolete. Periodic replacement of 

the existing technologies and equipment is essential for TTB laboratories to remain state-of-theart and effective to support the bureau’s mission, strategy, and day-to-day operations. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Bureau of the Fiscal Service 

 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023

 
Fiscal Service - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table ................................................................................................4 

1.2 – Budget Adjustments Table ..................................................................................................4 

C – Budget Increases and Decreases ............................................................................................5 

1.3 – Object Classification (Schedule O) Obligations .................................................................7 

D – Appropriations Language and Explanation of Changes .......................................................8 

1.4 – Permanent, Indefinite Appropriations Table .......................................................................9 

E – Reorganization Notification - Future Readiness ..................................................................10 

F – Legislative Proposals ..........................................................................................................11 

Section II – Annual Performance Plan and Report ..................................................................12

A – Strategic Alignment .............................................................................................................12 

B – Budget and Performance by Budget Activity ......................................................................13 

2.1.1 – Accounting and Reporting Resources and Measures .....................................................13 

Accounting and Reporting Budget Performance .......................................................................13 

2.1.2 – Collections Resources and Measures .............................................................................15 

Collections Budget and Performance .........................................................................................15 

2.1.3 – Payments Resources and Measures ................................................................................17 

Payments Budget and Performance ............................................................................................17 

2.1.4 – Retail Securities Services Budget and Performance .......................................................20 

Retail Securities Services Budget and Performance ...................................................................20 

2.1.5 – Wholesale Securities Services Resources and Measures ................................................22 

Wholesale Securities Services Budget and Performance ............................................................22 

2.1.6 – Debt Collection Resources and Measures .......................................................................24 

Debt Collection Budget and Performance ..................................................................................24 

C – Changes in Performance Measures ......................................................................................26 

Section III – Additional Information .........................................................................................26 

Summary of Capital Investments ...............................................................................................26

 
Fiscal Service - 3 

Section I – Budget Request 

A – Mission Statement 

Promote the financial integrity and operational efficiency of the Federal Government through 

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

B – Summary of Request 

The Bureau of the Fiscal Service (Fiscal Service) plays an integral role in the National Financial 

Critical Infrastructure (NFCI) of the entire Federal Government and touches the lives of nearly 

every American. Fiscal Service is guided by its enduring aspiration that the Government is an 

efficient steward of its financial resources; that financial information provided by the 

Government is accurate; and that financial interactions with the Government are inclusive, 

modern, seamless, and secure. 

The FY 2023 request for the Fiscal Service is $372.485 million. The Budget ensures the viability 

of the Government’s NFCI that finances Federal operations, collects revenue, disburses 

payments, and reports on the Government’s financial position. Because of Fiscal Service’s 

central role in Government-wide financial operations, the Budget also supports Treasury’s 

leadership in transforming Federal financial management to become more efficient, more 

accurate and deliver better service to citizens. 

The Budget provides resources to maintain current operations and supports ongoing initiatives in 

business modernization, customer experience, improving use of data, expanding access to digital 

financial services, innovative financial technology, operational integrity, and our workforce. This 

Budget supports the Financial Management Quality Service Management Office (FM QSMO), 

which is responsible for operating the Federal marketplace and making quality core financial 

service offerings available to all Federal agencies (funding for this activity was requested in 

FY 2022). The Budget also focuses on promoting integrity and equity in payment and collection 

practices. 

The Budget also supports ongoing operations related to cybersecurity for High Value Assets 

(HVAs) and other systems that support the NFCI. Fiscal Service will continue to partner with the 

Department, leveraging resources provided through the Treasury Cybersecurity Enhancement 

Account, to implement modern solutions that will support the security, resiliency, and agility of 

these critical systems and continue to maintain the financial integrity and efficiency of our 

operations. Our work will also continue to strengthen our cybersecurity posture by enhancing our 

ability to identify threats and carry out the recent Executive Order 14028, Improving the Nation’s 

Cybersecurity and OMB Memo M-22-09, Federal Zero Trust Strategy. 

These priorities will advance Treasury’s Strategic Plan FY 2022-2026, promote Fiscal Service’s 

mission to transform Federal financial management, and result in improved service for the 

American public. 
Fiscal Service - 4 

1.1 – Appropriations Detail Table

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Operating Plan Annualized CR Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Accounting and Reporting 398 $96,472 397 $89,482 399 $98,158 0.5% 9.7% 

Collections 153 $41,109 155 $43,596 155 $48,020 0% 10.1% 

Payments 512 $123,190 486 $123,697 486 $132,576 0% 7.2% 

Retail Securities Services 402 $59,312 391 $64,244 391 $67,816 0% 5.6% 

Wholesale Securities Services 125 $25,486 130 $24,550 130 $25,915 0% 5.6% 

Matured Unredeemed Debt 0 $25,000 0 $25,000 0 $0 NA -100.0% 

Subtotal New Appropriated 

Resources 1,590 $370,569 1,559 $370,569 1,561 $372,485 0.1% 0.5% 

Other Resources 

Reimbursable 15 $224,642 9 $208,823 9 $185,149 0.0% -11.3% 

Debt Collection Fund 332 $165,538 307 $187,363 335 $199,236 9.1% 6.3% 

Unobligated Balances from Prior 

Years 0 $137,952 0 $202,056 0 $188,713 NA -6.6% 

Subtotal Other Resources 347 $528,132 316 $598,292 344 $573,098 8.9% -4.2% 

Total Budgetary Resources 1,937 $898,701 1,875 $968,811 1,905 $945,583 1.6% -2.4% 

Note: FY 2021 Other Resources and Full-time Equivalents (FTE) reflect actuals. Table does not include the $78.65 million supplemental funding 

provided the Coronavirus Aid, Relief, and Economic Security Act (CARES) (P.L.116-136) in FY 2020 and $23.2 million provided by the 

American Rescue Plan (ARP) (P.L.117-2) in FY 2021. Unobligated balances do not include CARES and ARP. Also, the 2023 Budget Appendix 

includes a separate presentation for the Debt Collection Fund. 

1.2 – Budget Adjustments Table

Dollars in Thousands 

 FTE Amount 

FY 2022 Annualized CR 1,559 $370,569 

Changes to Base: 

2023 Maintaining Current Levels (MCLs): 0 $12,276 

Pay Annualization 0 $1,593 

Pay Raise (4.6% average pay raise) 0 $8,197 

Non-Pay 0 $2,486 

Other Adjustments 

Adjustments to Meet Current Operating Levels 0 $6,940 

Non-Recurring Costs: 

Matured Unredeemed Debt

1

 0 ($25,000) 

Subtotal Changes to Base 0 ($5,784) 

FY 2023 Current Services 1,559 $364,785 

Program Changes: 

Program Increases: 

Quality Service Management Office1 2 $3,700 

Fraud Prevention and Equitable Debt Collection Initiatives 0 $4,000 

Subtotal Program Changes 2 $7,700 

FY 2023 President's Budget Request 1,561 $372,485 1

Included in the FY 2022 President's Budget. 

 
Fiscal Service - 5 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...................................................... +$12,276,000 / +0 FTE

Pay Annualization (2.7%) +$1,593,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6%) +$8,197,000 / +0 FTE 

Funds are requested for a 4.6% average pay raise in January 2023. 

Non-Pay +$2,486,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent supplies, and 

equipment. 

Other Adjustments ...................................................................................... +$6,940,000 / +0 FTE 

Adjustments to Meet Current Operating Levels +$6,940,000 / +0 FTE 

Funds are requested to cover pay and non-pay inflationary costs that are realized in FY 2022 but 

not appropriated under an annualized CR. 

Non-recurring Cost ..................................................................................... -$25,000,000 / -0 FTE 

Matured Unredeemed Debt -$25,000,000 / -0 FTE 

United States Savings Bonds that have reached final maturity and stopped earning interest are 

considered Matured Unredeemed Debt (MUD). As of the end of FY 2021, the MUD balance 

had reached $29.9 billion. The Consolidated Appropriations Act, 2021, (P.L. 116-260) provided 

$25 million, available until expended, for the digitization of records of matured savings bonds 

that have not been redeemed. This adjustment removes this appropriation from the FY 2023 

Current Services levels. 

Program Increases..............................................................................................+$7,700,000 / +2 FTE 

Quality Services Management Office +$3,700,000 / +2 FTE 

This funding, which was originally requested in the FY 2022 President’s Budget, will support the 

continued implementation and management of the Financial Management Quality Service 

Management Office (FM QSMO) Marketplace, advance Government wide adoption of shared 

services, and ensure robust financial management support for Federal agencies. Funding will 

support ongoing collaboration with agency leaders modernizing financial systems; management 

of processes to ensure equitable access for industry to offer modern, secure, innovative, 

standards-based solutions and services as providers in the Marketplace; review of agency 

Marketplace acquisition requests to ensure adherence to standards; and delivery of expert 

guidance that will advance Government-wide financial management goals. FM QSMO will 

streamline access to Treasury services and empower customer agencies to create new 

opportunities for underserved communities through increased opportunities for small and 

disadvantaged businesses, which advances Treasury Strategic Objectives 1.3 (Economically 

Resilient Communities) and 5.4 (Customer Experience Practice). 

Fraud Prevention and Equitable Debt Collection Initiatives +$4,000,000 / +0 FTE 

Fiscal Service continues to focus on payment integrity and implementing best practices to ensure 

equitable debt collections. The Payment Integrity Center of Excellence (PICOE) and the Do Not 

Pay (DNP) Business Center improve the integrity of Government-wide financial transactions by 
Fiscal Service - 6 

providing business insight and solutions that assist government agencies in identifying, 

preventing, and recovering improper payments. DNP also assists agencies by providing a 

combination of access to data sources and data analytics to aid in identification, mitigation, and 

elimination of improper payments. PICOE will continue to leverage cross Government data 

sharing, an account verification service, the Treasury Check Verification System, investigative 

case support and other activities to improve payment accuracy and integrity. These activities will 

help to advance the Administration’s efforts to prevent and detect identity theft involving public 

benefits. While promoting the integrity of payments, Fiscal Service will also be promoting and 

reviewing equity in its debt collection practices by helping customer agencies to identify and 

implement changes that will improve their processes. This work will enable the Bureau to 

leverage data while enhancing information sharing practices to advance Treasury Strategic 

Objectives 5.3 (Better Use of Data) and 5.4 (Customer Experience Practice). 

 
Fiscal Service - 7 

1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 191,408 190,473 201,687 

11.3 - Other than full-time permanent 443 214 227 

11.5 - Other personnel compensation 6,832 5,227 5,591 

11.9 - Personnel Compensation (Total) 198,683 195,914 207,506 

12.0 - Personnel benefits 73,471 76,570 81,024 

13.0 - Benefits for former personnel 0 0 0 

Total Personnel and Compensation Benefits $272,154 $272,484 $288,530 

21.0 - Travel and transportation of persons 330 781 1,406 

22.0 - Transportation of things 36 56 60 

23.1 - Rental payments to GSA 24,222 26,265 27,994 

23.2 - Rental payments to others 0 0 0 

23.3 - Communications, utilities, and miscellaneous charges 71,608 63,629 59,573 

24.0 - Printing and reproduction 88 112 119 

25.1 - Advisory and assistance services 54,327 51,954 58,409 

25.2 - Other services from non-Federal sources 21,263 39,341 37,384 

25.3 - Other goods and services from Federal sources 279,606 311,239 288,487 

25.4 - Operation and maintenance of facilities 2,016 1,957 2,089 

25.7 - Operation and maintenance of equipment 8,788 6,411 6,659 

26.0 - Supplies and materials 3,883 2,767 2,956 

31.0 - Equipment 2,477 1,899 1,676 

32.0 - Land and structures 53 302 372 

Total Non-Personnel $468,697 $506,714 $487,185 

Total Obligations $740,851 $779,198 $775,714 

 

Full-time Equivalents (FTE) 1,937 1,875 1,905 

Note: Table does not include obligations related to the Coronavirus Aid, Relief, and Economic Security Act (CARES) (P.L.116-136) and the 

American Rescue Plan (ARP) (P.L.117-2). Also, while the 2023 Budget Appendix includes a separate presentation for the Debt Collection Fund, 

this table includes amounts presented in Schedule O of the Debt Collection Fund account. 
Fiscal Service - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

BUREAU OF THE FISCAL SERVICE 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal 

Service, $372,485,000; of which not to exceed $8,000,000, to remain 

available until September 30, 2025, is for information systems 

modernization initiatives; and of which $5,000 shall be available for 

official reception and representation expenses. 

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. 

Note.—A full-year 2022 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2022 (Division A of P.L. 117–43, as amended). 

The amounts included for 2022 reflect the annualized level provided 

by the continuing resolution.

Federal Reserve Bank Permanent, Indefinite Appropriation 

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

Secretary of the Treasury in accordance with 12 U.S.C. § 391. Under this account, the FRBs 

support fiscal operations unrelated to the administration of the public debt and provide banking 

and financial services on behalf of the United States Treasury. Specifically, this account supports 

accounting and reporting, collections, payments, and debt collection programs. These, and other 

programs, are vital to the NFCI, Treasury’s and Fiscal Service’s strategic goals, and the 

expansion of e-Government efforts to reduce costs, improve accuracy and increase options 

available to citizens to conduct transactions with the Federal Government. Fiscal Service 

estimates that the cost of FRB services for FY 2023 will be approximately $685 million. 

Reimbursements to the Federal Reserve Banks 

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

appropriation to pay such sums as may be necessary to reimburse the FRBs for acting as fiscal 

agents. This account was further defined in FY 1992 to solely support those activities related to 

the administration of the public debt. Funding for FY 2023 is estimated at $188 million. 

 
Fiscal Service - 9 

Financial Agent Services Permanent, Indefinite Appropriation 

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

institutions and obtain banking and financial services by designating qualified financial 

institutions to act/serve as Financial Agents (FAs) of the United States. The services support 

many Fiscal Service programs, such as collections, payments, and debt collection. The services 

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

12 U.S.C. 90 and 265. Fiscal Service estimates the cost of FA services for FY2023 will be 

approximately $1,012 million, which includes $1.3 million for Government Sponsored 

Enterprise – Mortgage-Backed Securities administrative costs. 

Government Losses in Shipment 

P.L. 103-329 established a permanent, indefinite appropriation to pay such sums as necessary to 

make payments for the replacement (or value) of valuables lost, destroyed, or damaged during 

United States Government shipments. The Government Losses in Shipment Act (the Act) was 

enacted July 8, 1937, to dispense with the necessity for insurance by the Government against loss 

or damage to valuables in shipment and for other purposes. The Act was amended in 1943 to 

cover losses resulting from the redemption of savings bonds (for example, stolen bonds that were 

fraudulently negotiated even though the paying agent followed identification guidelines 

established by the Treasury). All Authority of the Treasury under the Act is delegated to the 

Fiscal Service Commissioner. In FY 2023, the funding estimated to support payments for the 

replacement of valuables is approximately $1.6 million. 

1.4 – Permanent, Indefinite Appropriations Table 

Dollars in Thousands 

Permanent, Indefinite Appropriation FY 2021 

Actual 

FY 2022 

Estimate 

FY 2023 

Request 

Federal Reserve Bank1 $620,341 $665,000 $685,000 

Reimbursements to the Federal Reserve Banks $156,667 $183,000 $188,000 

Financial Agent Services1,2 $910,460 $1,016,000 $1,012,000 

Government Losses in Shipment $1,389 $1,389 $1,627 

1

Approx $100M was reimbursed from other Government agencies and deposited into the General Fund in FY 2021. 2

FY 2021 - FY 2023 includes $1M per year for the Government Sponsored Enterprise - Mortgage Backed 

 Securities administrative costs. 

 
Fiscal Service - 10 

E – Reorganization Notification - Future Readiness 

The Bureau of the Fiscal Service has planned a reorganization to better position itself for the 

future. Treasury’s strategic plan recognizes the importance of the Government’s financial 

infrastructure to the health of the nation’s economy and the welfare of its citizens. The strategic 

plan contains ambitious goals for the resiliency of our financial systems, the efficiency of our 

operations, and the quality of our services. To achieve these goals, the strategic plan envisions a 

diverse Treasury workforce that is highly skilled and represents the communities we serve. 

The planned re-alignment of Fiscal Service translates the goals of Treasury’s strategic plan as 

well as the Bureau’s Vision for the Future of Federal Financial Management into organizational 

capabilities. Over the past year, we assessed the current state and explored a potential future state 

by conducting nearly a dozen workshops with industry experts, Fiscal Service employees, 

customer agencies, and program partners (e.g., the Federal Reserve Banks). The team also 

interviewed over 80 stakeholders who use our services. We learned how our environment will 

change and what our customers expect us to deliver. 

The new organizational structure will better position Fiscal Service to provide a modern 

experience for its customers, strengthen its legacy of operational excellence, advance the 

adoption of its shared services, and create a diverse and inclusive workforce focused on 

continual professional development. The new structure will allow Fiscal Service to not only 

achieve our own vision for Federal financial management, but also support the goals set by 

Treasury’s strategic plan. 

The benefits of the reorganization will be realized by the American public, Federal agencies, and 

our employees. For the public, the emphasis on the end-to-end customer experience will mean 

seamless financial interactions across multiple programs – not a different experience for each 

program. Federal agency customers can access an integrated set of central and reimbursable 

services – not numerous system interfaces that seem to operate independently. Employees can 

focus on their development as Federal financial professionals – and not as narrowly-focused 

experts of a specific solution or domain. The planned organizational structure would break down 

our engrained organizational silos to emphasize our priorities (e.g., data, innovation, and 

customer experience) while maintaining operational excellence and catalyzing a culture change 

within the workforce. 

Fiscal Service is not requesting any additional funds to implement this reorganization, and the 

reorganization does not result in any changes to the structure of our budget or program line 

items. The reorganization will not reduce the number of employees, nor will it impact employee 

grade levels. Additionally, the planned realignment will not require employees to relocate or 

change duty stations. 

 
Fiscal Service - 11 

F – Legislative Proposals 

1. Fund the Federal Payment Levy Program via collections. Estimated costs: $220 million in 

Fiscal Service costs to operate the Tax Levy Program in the Treasury Offset Program over 10 

years. Fiscal Service is currently being reimbursed for this cost from IRS appropriated funding. 

This proposal improves the way the Fiscal Service collects its reimbursement from IRS to cover 

Fiscal Service’s costs in developing and operating the Federal Payment Levy Program (FPLP), 

which utilizes the Treasury Offset Program to process levies of Federal payments to collect 

delinquent tax debts. Under the Economy Act, the IRS pays fees to Fiscal Service from the IRS 

annual discretionary appropriation. This proposal authorizes Fiscal Service to recover its costs 

from levy collections, rather than from IRS’s direct appropriation, which reduces administrative 

and overhead costs for both Fiscal Service and IRS. It would also allow IRS to re-direct the use 

of appropriated dollars that are currently needed to fund FPLP to other initiatives that will aid in 

the collection of delinquent tax debt. 

2. Amend the Bank Merger Act to allow for the transition of Treasury-sponsored debit 

card accounts from one bank to another. The cost avoidance associated with this proposal is 

estimated to be $17.64 million in labor and materials. The estimated cost avoidance will only 

materialize if a new financial agent is designated. 

This proposal would amend the Bank Merger Act to allow for the transition of Treasurysponsored debit card accounts from one bank to another when Treasury changes its financial 

agent. Current law restricts Treasury’s ability to move its sponsored debit card accounts to a new 

bank in order to obtain better or lower cost services. Treasury sponsored debit card programs, 

particularly the Direct Express program that provides Social Security benefits and Supplemental 

Security Income benefits, serve a vulnerable population. Thus, any disruption in service resulting 

from the transition to a new financial agent could have a devastating impact. To mitigate these 

risks, this proposal would authorize Treasury to retain new financial agents for services 

involving sponsored debit card accounts. 

Proposed Statutory Revision: Amend 12 USC 1828(c) by adding a new section (c)(14) to read: 

“This section does not apply to a transfer of deposits by an insured depository institution holding 

such deposits in its capacity as a financial agent of the government. Deposits held by a financial 

agent of the government may be transferred without consent of the account holders to another 

financial agent designated by the government to hold such accounts.”

 
Fiscal Service - 12 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In FY 2021, Fiscal Service collected over $4.91 trillion in revenue, issued more than 1.7 billion 

payments totaling $6.4 trillion, and conducted 472 auctions that sold $20.04 trillion in Treasury 

marketable securities to fund critical Government operations. Fiscal Service accounted for the 

Nation’s $28.4 trillion public debt down to the penny, every day. 

Fiscal Service operations and initiatives support and advance all five of Treasury’s strategic 

goals. Specifically, Fiscal Service supports these Treasury strategic goals and objectives. 

 Goal 1 - Promote Equitable Economic Growth and Recovery 

o Objective 1.3 - Economically Resilient Communities 

 Goal 2 - Enhance National Security 

o Objective 2.1 - Cyber Resiliency of Financial Systems and Institutions 

 Goal 3 - Protect Financial Stability and Resiliency 

o Objective 3.3 - Financial Innovation 

 Goal 4 - Combat Climate Change 

o Objective 4.4 - Sustainable Treasury Operations 

 Goal 5 - Modernize Treasury Operations 

o Objective 5.1 - Recruit and Retain a Diverse and Inclusive Workforce 

o Objective 5.2 - Future Work Routines 

o Objective 5.3 - Better Use of Data 

o Objective 5.4 - Customer Experience Practices 

Fiscal Service continues its mission to promote the financial integrity and operational efficiency 

of the Federal Government through exceptional accounting, financing, collections, payments, 

and shared services. Fiscal Service is guided by Treasury’s strategic plan, the Future of Federal 

Financial Management Vision (FM Vision), and its own strategic plan. 

The FM Vision outlines three expectations citizens have for Federal financial management which 

guide the work within Fiscal Service: 

 The Government is an efficient steward of its financial resources; 

 Financial information provided by the Government is accurate; and 

 Financial interactions with the Government are inclusive, modern, seamless, and secure. 

We are committed to providing our customers with innovative, modern financial management 

solutions. This includes providing a modern customer experience to the American public, leading 

the Federal financial management community, and unlocking value for agency Chief Financial 

Officers (CFOs). 

To transform financial management, Fiscal Service is guided by its strategic vision to deliver 

operational excellence and business modernization, provide a modern customer experience, 

engage its diverse high-performing workforce, increase data integrity and transparency, and 
Fiscal Service - 13 

provide innovative solutions to the financial management community. These transformations are 

more important than ever as we move forward. 

Fiscal Service fulfills its mission and strategic vision through appropriated budget activities - 

Accounting and Reporting, Collections, Payments, Retail Securities Services, Wholesale 

Securities Services - and one mandatory budget activity - Debt Collection, which is funded 

through delinquent debt collection revenue. 

The following sections detail how specific budget activities support the strategic direction and 

illustrate FY 2021 performance accomplishments and FY 2022 and 2023 performance goals. 

B – Budget and Performance by Budget Activity 

2.1.1 – Accounting and Reporting Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $114,829 $90,291 $94,104 $94,446 $102,344 $89,482 $98,158 

Reimbursable Resources $23,800 $18,923 $20,114 $21,205 $23,937 $26,365 $19,951 

Budget Activity Total $138,629 $109,214 $114,218 $115,651 $126,281 $115,847 $118,109 

Full-time Equivalents (FTE) 381 400 373 355 400 399 401 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Government-wide 

Accounting Reports Issued Timely (%) 100 100 99.6 100 100 99.5 99 99 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 

Accounting and Reporting Budget and Performance 

($98,158,000 from direct appropriations, $19,951,000 from reimbursable sources):

Fiscal Service collects, analyzes, and publishes Government-wide financial information, made 

available to both the public and private sectors, to provide transparency on the Government’s 

financial status. Fiscal Service is responsible for maintaining the Federal Government’s set of 

accounts and serves as the repository of information for the financial position of the United 

States Government. The Bureau closely monitors the Government’s monetary assets and 

liabilities through its oversight of central accounting and reporting systems. Fiscal Service 

oversight responsibilities include helping Federal agencies use uniform accounting and reporting 

standards and systems and assuring the continuous exchange of financial information between 

Federal agencies, OMB, and financial institutions. The Bureau also gathers and publishes 

Government-wide financial information for use in establishing fiscal and debt management 

policies as well as to allow the public and private sectors to monitor the Government's financial 

status. In FY 2021, Fiscal Service issued a total of 263 Government-wide accounting reports. 
Fiscal Service - 14 

Description of Performance:

In FY 2021, Fiscal Service accounted for and reported on the financial activity related to the 

$28.4 trillion public debt and managed a daily cash flow of $209.9 billion. Fiscal also issued and 

serviced $6.2 trillion in Treasury securities invested by 53 Federal agencies in over 155 Federal 

Government trust and investment accounts, including $3.2 trillion in 17 managed trust funds. 

Fiscal Service continued to issue 100 percent of Government-wide accounting reports on time, 

including the annual Financial Report of the United States Government, which reports the 

financial condition of the Federal Government using accrual basis of accounting. 

During FY 2021, Fiscal completed four data quality analyses of Fiscal Service data, identifying 

areas for improvement as well as further maturing the data quality framework. Supporting 

Treasury’s customer experience objectives, Fiscal Data launched its first major usability 

improvements since the initial release of FiscalData.gov, allowing users to select the specific 

date range for the requested data and the ability to download all data tables from a given dataset 

at once. Additionally, supporting Treasury’s data transparency objectives, Fiscal Service added 

19 new datasets to Fiscal Data, bringing the total number of datasets on the site to 37, more than 

doubling the datasets from the Minimum Viable Product (MVP) launch last year. 

To further expand data transparency with the American public, the Bureau published COVID19 spending data on USAspending.gov which offers a detailed view into the $4.5 trillion spent 

in response to the pandemic. Fiscal also released a Your Guide to America’s Finances update 

with FY 2021 data on the Data Lab to coincide with the release of the Federal Government’s 

year-end financial data. 

Additionally, Fiscal received its 25th consecutive unmodified audit opinions on the Schedules of 

Federal Debt from the Government Accounting Office and received timely certification from 22 

of 24 CFO Act agencies and 60 of 78 independent agencies on their DATA Act submissions. 

In FY 2023, Accounting and Reporting will continue to pursue innovative solutions to data 

quality challenges, improve delivery and digestibility of data available to the American public, 

and improve the audit and reporting process for Federal agencies. 
Fiscal Service - 15 

In support of Treasury’s objective to increase timely access to and use of quality data, Fiscal will 

identify data quality challenges by automating data quality analysis and providing automated 

data reports to drive data quality improvements. Additionally, Fiscal Service will improve our 

data architecture and data delivery for the Government to eliminate data redundancies, 

streamline processes and standards, and introduce real-time, on-demand analytics and data 

services. 

Fiscal Service will also continue efforts to improve data transparency and accessibility. The 

Bureau will continue migrating open datasets to Fiscal Data, resulting in maximum usability and 

an intuitive customer experience. By centralizing all Fiscal Service datasets to Fiscal Data, it 

creates a one-stop shop for the public and Federal agencies to find Fiscal Service data in easy to 

use, machine readable formats. Additionally, Fiscal Service will continue to translate complex 

public finance data into simple, digestible insights through USAspending. This website can play 

a key role in building trust in Government by making complex information clear and easy to 

understand. In FY 2023, Fiscal Service will continue to make improvements and enhancements 

to the website based on user feedback and will incorporate human-centered design principles to 

make Federal data easier to understand and more accessible to the public. 

Lastly, Fiscal Service will continue to advance enterprise analytics during FY 2023 to foster a 

strong data analytics culture, modernize analytics capabilities across the Bureau, and enable 

Fiscal Service to better leverage data to inform decision-making and improve performance. 

2.1.2 – Collections Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $35,281 $38,338 $42,333 $38,976 $42,317 $43,596 $48,020 

Reimbursable Resources $7,028 $8,042 $7,804 $8,535 $9,311 $7,754 $9,725 

Budget Activity Total $42,309 $46,380 $50,137 $47,511 $51,628 $51,350 $57,745 

Full-time Equivalents (FTE) 159 160 156 148 153 155 155 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Total Federal Government 

Receipts Settled Electronically (%) 98.3 98 98.4 99 99.6 98 99 99 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 

 

Collections Budget and Performance 

($48,020,000 from direct appropriations, $9,725,000 from reimbursable sources): 

The Collections budget activity supports the NFCI and Treasury by administering the world’s 

largest Government collections system through a network of Fiscal and Financial Agents. 

Fiscal Service’s collections network supports a significant number of transactions and dollars 

collected, demonstrating the criticality of our programs to the economy, to the operations of 

Government, and to the daily lives of the American public. 

In FY 2021, Fiscal Service collected nearly $4.91 trillion in Federal revenue, including 

individual and corporate income tax deposits, customs duties, fees for Government services, 
Fiscal Service - 16 

fines, and loan repayments. Within the Federal revenue collected, the Electronic Federal Tax 

Payment System (EFTPS) processed nearly 202.2 million transactions valued at over 

$3.56 trillion in tax revenue while Pay.gov processed over 81.4 million transactions worth 

nearly $210.4 billion. 

Description of Performance:

In FY 2021, Fiscal Service settled 99.6% of the funds collected electronically. This is an increase 

over the electronic settlement rate of 99% in FY 2020 as Fiscal Service advanced several 

projects to increase digitization, including expanding adoption of eCommerce digital collection 

options across Federal agencies. These projects continued to move paper-based transactions to 

electronic alternatives (e.g., Pay.gov, Digital Wallets, etc.). Fiscal Service will continue to 

promote electronic alternatives and assist Federal agencies in converting collections from paper 

to electronic media, which supports the Administration’s climate priority and Treasury Strategic 

Objectives 3.3 (Financial Innovation) and 4.4 (Sustainable Treasury Operations).

Fiscal Service also continues efforts to streamline lockbox networks which process paper-based 

payments and forms. In FY 2020, the General Lockbox Network was streamlined from three 

financial agents to one, and from four lockbox sites to two. In FY 2021, the IRS Lockbox 

Network was streamlined from three financial agents to two, and from five lockbox sites to three. 

In FY 2023, Fiscal Service plans to continue to increase digitization and streamline lockboxes in 

support of Treasury’s objectives of financial innovation, sustainable operations, equity, and the 

customer experience. Fiscal Service will be advancing its General Lockbox Network digitization 

efforts, with a goal of reducing paper volume by 25% by 2024. Additionally, Fiscal Service will 

convert 25% of Treasury General Account Network transactions from cash and check bank 

deposits to electronic by 2025.

 
Fiscal Service - 17 

2.1.3 – Payments Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $133,998 $131,160 $122,835 $136,678 $136,627 $123,697 $132,576 

Reimbursable Resources $111,464 $117,264 $113,313 $118,127 $139,842 $130,845 $135,676 

Budget Activity Total $245,462 $248,424 $236,148 $254,805 $276,469 $254,542 $268,252 

Full-time Equivalents (FTE) 597 508 477 487 524 492 492 

Performance Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Treasury Payments Made 

Electronically (%) 95.1 95.4 95.6 96 96.2 96.1 96.4 96.6 

Count of Improper Payments Identified 

or Stopped (# in Thousands) 21.4 20.3 22.4 22.8 23.8 21.5 22.5 23.6 

Dollar Amount of Improper Payments 

Identified or Stopped ($ Millions) 36.6 35.5 41.1 43.5 47.6 37.0 38.8 40.7 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 

Payments Budget and Performance 

($132,576,000 from direct appropriations, $135,676,000 from reimbursable sources): 

The Fiscal Service Payments budget activity supports the National Financial Critical 

Infrastructure (NFCI) and delivers Federal payments on behalf of more than 250 Federal entities 

through disbursement mechanisms such as paper checks, Electronic Fund Transfers (EFT), debit 

cards, and other digital payment mechanisms. The public relies on the Fiscal Service 

disbursement of payments, including programs such as Veterans’ Compensation and Pension, 

Social Security Benefits, Federal and Railroad Pensions, IRS tax refunds, and Supplemental 

Security Income (SSI). Fiscal Service continues to focus on improving the public’s payment 

experience, promoting the use of electronic channels in the payments process, and assisting 

agencies in converting payments from paper checks to electronic, improving payment integrity, 

expanding financial inclusion, promoting cost-effective and sustainable operations in support of 

the Administration’s climate priority and Treasury Strategic Objectives 3.3 (Financial 

Innovations) and 4.4 (Sustainable Treasury Operations), and delivering payments and related 

services expeditiously to the American public.

Fiscal Service continues to increase the percentage of Federal payments which are Treasurydisbursed. In FY 2021, Fiscal Service disbursed 90.5 percent of all Federal payments 

(88.4 percent excluding Economic Impact Payments).

In FY 2021, the Fiscal Service payments activity continued to support COVID-19 pandemic 

recovery efforts, specifically the delivery of Economic Impact Payments (EIP) and the Advance 

Child Tax Credit (CTC) payments to the American public. These recovery programs have 

significantly increased the payments workload volume. In FY 2021, Fiscal Service issued 

approximately 500 million more payments than in 2019, or a 42% increase in the number of 

payments disbursed. In FY 2021, Fiscal Service securely disbursed 1.7 billion payments, totaling 

$6.4 trillion.
Fiscal Service - 18 

Description of Performance:

In FY 2021, Fiscal Service was critical to the rapid implementation of programs providing relief 

to American workers and families during the coronavirus pandemic. Fiscal Service’s use of 

modern, seamless, and secure electronic payment methods dramatically improved the speed and 

delivery of payments, including more than 428 million EIP2, EIP3, and CTC payments totaling 

$583 billion. 

While supporting recovery efforts, Fiscal Service also continued advancing its planned 

initiatives and modernizations within the Payments activity. One major initiative in this area 

was the FY 2020-2021 Agency Priority Goal (APG) to improve the public’s payment 

experience by reducing paper checks and increasing electronic payments. Excluding EIPs and 

checks directly related to the pandemic, Fiscal Service achieved its APG targets and reduced 

checks from 54.2 million in 2019 to 48.8 million in 2021, a 10% reduction. Additionally, 

collaborating with the IRS, Fiscal Service increased the IRS Tax Refund electronic rate from 

77% in 2019 to 80.3% in 2021. This increase in electronic payments resulted in faster, more 

secure, and significantly fewer payment issues or exceptions for the public. 

*Excludes EIPs, Department of Education, and Department of Veterans Affairs checks directly related to the 

pandemic.
Fiscal Service - 19 

In FY 2022-2023, Fiscal Service will build on these efforts with a new APG to provide a 

modern, seamless, and secure payment experience for the public that meets customer needs 

while reducing costs, expanding financial inclusion, and improving climate sustainability of 

Treasury’s operations by increasing electronic payments. Supporting Executive Order 14058, 

Transforming Federal Customer Experience and Service Delivery to Rebuild Trust in 

Government and Treasury’s designation as a High-Impact Service Provider and the 

Administration’s climate and equity priorities, the Bureau, in collaboration with IRS, will seek 

to improve the electronic payment rate for all payments (including individual tax refunds) and 

improve financial inclusion. Fiscal will continue to promote and increase the delivery of 

payments through EFT, with an emphasis on tax refunds, vendor payments, benefit payments, 

and other miscellaneous payments. This is especially notable, as historically, check payments 

are 16 times more likely to have exceptions (e.g., lost, stolen, returned, etc.) than payments 

made via direct deposit. Additionally, the Bureau plans to explore, develop, and deploy 

innovative, customer-driven electronic payment solutions.

In FY 2023, Fiscal Service plans to continue modernizing the entire payments lifecycle. This 

initiative will modernize payment disbursement and address aging technology, resulting in 

increased efficiencies, improved resiliency and security, and an enhanced user experience. 

Fiscal Service plans to modernize our centralized electronic invoicing service, which currently 

serves 151 Federal entities including 19 CFO Act agencies and 160,000 vendors. The 

e-Invoicing service automates Government invoicing from purchase order through payment 

notification, resulting in reduced paper, Governmentwide cost savings and efficiencies, faster 

payments, more accurate data, better cash management, and enhanced daily interactions 

between Government and commercial organizations. This modernization initiative supports the 

administration’s priority to deliver excellent, equitable, and secure Federal services and 

enhance the customer experience. Additionally, Fiscal Service plans to complete the project 

aimed at processing faster payments in FY 2023. Faster Payments embraces the ability to pay or 

be paid instantly – with near real-time settlement. Not only will this benefit the American 

public by providing a more efficient payment option to customers, but it will also support the 

efforts to decrease the number of paper checks issued. 

Fiscal Service will also continue to advance payment integrity in the Federal Government. In 

partnership with OMB, Fiscal Service will continue to advance its Government-wide payment 

integrity services and solutions through its payment integrity programs. During FY 2021, Fiscal 

Service received OMB approval and official designation to add 12 new data sets to the Do Not 

Pay (DNP) portal for analytic use. Additionally, Fiscal Service engaged with State and Federal 

programs to expand and adopt our payment integrity services. During the year, Fiscal Service 

hosted three agency partnership forums to advance the payment integrity mission, on-boarded 

seven new State and five new Federal programs for DNP services and initiated 23 new DNP 

projects with State and Federal programs.

These payment integrity services were critical in preventing improper and fraudulent payments 

while implementing recovery programs. During recovery program implementation, Fiscal 

Service used multiple approaches to maximize electronic disbursements, resulting in faster 

payments to Americans and increased payment integrity. This included Account Verification 
Fiscal Service - 20 

Service (AVS), a new pilot program to supplement Fiscal Service cross-Government data with 

a third-party verification service and bank matching to convert checks to direct deposit. 

Fiscal Service partnered with IRS and with FEMA’s COVID-19 Funeral Assistance Program to 

leverage Fiscal’s AVS to verify the status of a bank account and authenticate account ownership 

for recovery payments. In FY 2021, the AVS prevented $171.2 million in improper payments. 

Additionally, Fiscal Service used bank matching to convert 70.2 million EIPs and CTCs from 

check to direct deposit using cross-Government banking information at a 99.7% accuracy rate. 

This conversion of check to direct deposit avoided $33 million in check production costs. 

In FY 2023, Fiscal Service will continue to manage its portfolio of payment integrity tools, 

services, and data sources with a focus on access to data and data sharing; data analytics; and 

standardized and agency-specific payment integrity solutions. These programs support 

agencies, law enforcement, and states in combatting fraud, waste, abuse, and improper 

payments. Fiscal Service will continue to provide actionable business insights and solutions that 

transform how Federal agencies approach identifying, preventing, stopping, and recovering 

improper payments and related fraudulent activity. 

2.1.4 - Retail Securities Services Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $61,910 $60,491 $55,465 $56,344 $62,104 $64,244 $67,816 

Reimbursable Resources $12,642 $12,100 $13,306 $12,406 $16,418 $15,549 $14,326 

Matured Unredeemed Debt $0 $0 $0 $401 $5,237 $25,000 $0 

Budget Activity Total $74,552 $72,591 $68,771 $69,151 $83,759 $104,793 $82,142 

Full-time Equivalents (FTE) 472 434 388 393 403 392 392 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Retail Customer Service 

Transactions That Are Unassisted (%) N/A N/A 69 70 63 71 72 73 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 

Retail Securities Services Budget and Performance 

($67,816,000 from direct appropriations, $14,326,000 from reimbursable sources, $0 from 

appropriations for Matured Unredeemed Debt): 

Fiscal Service provides simple, safe, and affordable ways for investors to directly interact with 

the Department of the Treasury to save for their future by investing in Treasury securities. The 

U.S. Treasury began offering savings bonds in paper in 1935. Today, electronic savings bonds 

and marketable securities are sold through TreasuryDirect, an internet-based book-entry 

system for purchasing, holding, and conducting Treasury securities transactions. In FY 2021, 

Fiscal Service electronically issued $73.6 billion in Treasury retail securities (includes sales 

and reinvestments), processed $86.4 billion in redemptions, added 219,740 new accounts to 

TreasuryDirect, and made 2.2 million retail payments worth $23.1 billion.
Fiscal Service - 21 

Description of Performance:

Retail Securities continues to make progress toward improving the retail customer experience 

by enabling customers to purchase, manage, and redeem their Treasury security holdings 

through one platform, known as myTreasury, by 2024. The multi-year initiative to build 

myTreasury is a key modernization effort that will replace the existing TreasuryDirect system 

and will offer innovative products and services to improve the customer experience through a 

modern, efficient, and customer-centric system. In FY 2021, Fiscal Service began executing 

the migration plan and building functionality to move marketable securities data from 

TreasuryDirect to myTreasury. 

In FY 2021, Retail Securities saw a decline in the percentage of unassisted retail customer 

service transactions, with 63% unassisted during the fiscal year, significantly lower than the 

71% target. This was the result of both reduced sales of marketable Treasury securities, as well 

as a continued trend of customers redeeming savings bonds through mail services instead of 

in-person interactions with financial institutions as a result of the COVID-19 pandemic. 

Retail Securities also continues to improve the customer experience and help owners find and 

claim savings bonds that have reached final maturity and stopped earning interest through the 

Matured Unredeemed Debt (MUD) initiative. Treasury’s redemption process for paper savings 

bonds has proven effective, given that 99% of all paper savings bonds ever issued have been 

redeemed. Annually, Treasury redeems approximately 7.2 million matured savings bonds worth 

$4 billion, including nearly 1.8 million bonds that were five or more years past maturity. As of 

the end of FY 2021, the balance of these matured unredeemed savings bonds was $29.9 billion 

across 82.3 million pieces. During FY 2021, the Bureau began a multi-phase approach to 

digitize and index its records of paper savings bonds. The Bureau also began a data matching 

effort to compare MUD records against various systems (e.g., bureau systems and other 

government databases) to obtain updated bond owner information in order to develop strategies 

to better reach these customers. For example, the Bureau initiated mailings to a subset of 

customers within TreasuryDirect to create awareness of MUD bonds and provide guidance for 

redeeming them. In addition to other customer experience improvements being considered, 

Fiscal Service continues to work with the National Association of Unclaimed Property 

Administrators (NAUPA) and the National Association of State Treasurers (NAST) to find 

collaborative solutions to locate owners of MUD bonds. 

 
Fiscal Service - 22 

2.1.5 - Wholesale Securities Services Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Annualized 

CR 

FY 2023 

Request 

Appropriated Resources $16,796 $21,851 $23,522 $23,414 $25,031 $24,550 $25,915 

Reimbursable Resources $4,214 $4,613 $4,599 $5,062 $5,415 $4,888 $5,471 

Budget Activity Total $21,010 $26,464 $28,121 $28,476 $30,446 $29,438 $31,386 

Full-time Equivalents (FTE) 117 116 112 116 125 130 130 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Auction Results Released 

Accurately (%) 98.9 98.9 98.8 100 100 100 100 100 

Percentage of Auctions Successfully 

Completed by the Scheduled Close Date 

(%) 

N/A N/A 100 100 100 100 100 100 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 

Wholesale Securities Services Budget and Performance 

($25,915,000 from direct appropriations, $5,471,000 from reimbursable sources): 

 The Wholesale Securities Services (WSS) budget activity finances daily Government 

operations by offering Treasury securities through reliable, accurate, and secure electronic 

systems. Fiscal Service oversees the announcement, auction, and issuance of marketable 

Treasury bills, notes, bonds, floating rate notes, and inflation-protected securities. 

In FY 2021, Treasury successfully conducted 472 auctions and awarded $20.04 trillion in 

Treasury securities - both records for a single year. Fiscal Service also set record highs on 

April 26, 2021, with $267 billion awarded on a single day and on September 8, 2021, with six 

auctions held in a single day. Thirteen auctions were held the week of January 25, 2021, 

matching the weekly record that was set in FY 2020. Debt financing activities continue to be 

elevated, evidenced by the 45 percent increase in the number of auctions conducted above the 

pre-pandemic FY 2019 level of 325 auctions. 

269 275 270

325

447

472

334 334

0

50

100

150

200

250

300

350

400

450

500

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Projected

FY 2023

Projected

Total Number of Auctions Conducted
Fiscal Service - 23 

Description of Performance: 

In FY 2021, Fiscal Service continued to see unprecedented demand for borrowing needs that 

began in FY 2020 with the COVID-19 pandemic. Through this increased financing activity, 

Fiscal Service continued to demonstrate operational excellence by successfully completing 

100 percent of auctions by the scheduled close date and by releasing 100 percent of auction 

results accurately. 

In FY 2021, Fiscal Service also continued the Financing Modernization (FinMod) effort, a 

multi-year program to modernize the financing system in alignment with Treasury’s 

strategic priorities and long-term business requirements. This modernization will include 

development of a new system to support operations, meet customer expectations, become 

current with existing technologies, manage technical debt, and improve the delivery of 

secure, flexible, and resilient financing services. In addition to advancing its modernization 

initiative, Fiscal Service increased automated testing and successfully deployed ten 

enhancement releases to the current Treasury Automated Auction Processing System 

(TAAPS) with zero defects. 

 

$8.00 $8.72 $9.96

$11.77

$18.72 $20.04

$21.58 $22.34

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Projected

FY 2023

Projected

Dollar Amount of Marketable Securities Awarded ($ Trillions)
Fiscal Service - 24 

2.1.6 – Debt Collection Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Annualized 

CR Request 

Appropriated Resources $0 $0 $0 $0 $0 $0 $0 

Reimbursable Resources1 $176,928 $167,726 $204,512 $214,910 $195,256 $210,785 $199,236 

Budget Activity Total $176,928 $167,726 $204,512 $214,910 $195,256 $210,785 $199,236 

Full-time Equivalents (FTE) 417 389 366 348 332 307 335 

Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Amount of Delinquent Debt collected 

Through A11 Available Tools ($ 

Billions) 

7.61 7.44 9.65 10.68 5.04 8.81 5.26 7.61 

Amount of Delinquent Debt Collected 

Through All Available Referred ($ 

Billions) 

N/A N/A 14.3 15.7 15.9 14.9 15 13.9 

Percentage of the Active Delinquent 

Debt Portfolio Collected (%) N/A N/A 6.8 9.2 7.3 7 6.7 6.5 

Note: The FY 2017 - FY 2021 appropriated resources represent actual obligations. 1

FY 2023 does not include $22 million as part of our Federal Payment Levy Program legislative proposal. 

Debt Collection Budget and Performance 

($199,236,000 from Debt Collection sources):2012017 FY 2018 FY 2019 FY 2020 FY 2021 

Fiscal Service is the Government’s central debt collection agency and funds its delinquent debt 

collection operations through fees charged to agencies that refer debts for collection. Fiscal 

Service collects delinquent debt through two programs: the Treasury Offset Program (TOP) and 

Cross-Servicing. TOP collects delinquent Federal and state tax and nontax debts by matching the 

names and taxpayer identifying numbers of debtors included in its database against the names 

and taxpayer identifying number of recipients of Federal and state payments. If there are 

matches, the amounts of the payments are reduced (“offset”) to satisfy either all or a portion of 

the delinquent debts. In FY 2021, Fiscal Service processed 2.77 million new debt referrals 

through TOP. 

11.98

14.90

13.26

16.30

12.78

2.77

7.20

10.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Projected

FY 2023

Projected

Number of Debts Processed Through TOP (Millions)
Fiscal Service - 25 

Through Cross-Servicing, delinquent nontax debts referred to Fiscal Service by Federal agencies 

(e.g., loans and administrative debts such as overpayments, fines, fees, etc.) are collected in 

several ways, including offsetting Federal payments, sending demand letters to debtors, entering 

into payment agreements, withholding non-Federal wages administratively, referring debts to the 

Department of Justice for litigation, reporting credit to bureaus, and referring to private 

collection agencies. In FY 2021, Fiscal Service processed 0.20 million new debt referrals 

through Cross-Servicing. 

Description of Performance: 

During FY 2021, the COVID-19 pandemic continued to impact delinquent debt collection. Total 

delinquent debt collections fell below the original annual target due to several Federal agencies 

extending their delinquent debt collection suspensions in response to economic concerns related 

to the pandemic. Fiscal Service ended the year collecting $5.04 billion in delinquent debt from 

all tools, falling short of the target of $8.81 billion. Of the $5.04 billion collected in delinquent 

debt, $4.8 billion was collected through TOP, and $269.3 million was collected through CrossServicing. TOP’s FY 2021 collections included delinquent debts owed to states, such as $2.71 

billion of delinquent child support and $294.8 million of state Unemployment Insurance 

payments. 

Fiscal Service anticipates ongoing concerns about the COVID-19 pandemic and associated 

economic recovery will continue to negatively affect collections in FY 2022 and potentially 

2023. In FY 2020, the collections success was driven by offsets of the first round of EIP to 

collect delinquent child support. The second and third rounds of EIP were exempt from all 

offsets resulting in a significant decline in collections revenue. Fiscal Service reduced 

expenditures to address these challenges and continues to identify opportunities to gain 

efficiencies. Even with these measures, the anticipated collections reduction in FY 2022 creates 

funding challenges in 2023 and beyond. Fiscal Service will conduct an independent assessment 

to evaluate the debt collection program’s current cost structure and fee methodology, identify 

0.41

1.97

2.40 2.53

1.60

0.20

1.30

3.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

FY 2016

Actual

FY 2017

Actual

FY 2018

Actual

FY 2019

Actual

FY 2020

Actual

FY 2021

Actual

FY 2022

Projected

FY 2023

Projected

Number of Debts Processed Through Cross Servicing (Millions)
Fiscal Service - 26 

potential cost saving opportunities to counter losses, and explore potential funding alternatives to 

provide a more sustainable model capable of evolving with future Government needs. 

C – Changes in Performance Measures 

There are no changes to performance measures since the FY 2022 Congressional Justification. 

With the publication of Treasury’s Strategic Plan for FY 2022-2026, Fiscal Service will work 

this year to baseline performance against the new strategic objectives. 

Section III – Additional Information 

Summary of Capital Investments 

Fiscal Service leads the way for responsible, effective Government through our commitment to 

technology enablement, customer-focused service, efficient operations, strategic partnering, and 

agility to securely enable the missions of the Federal Government. Fiscal Service strategically 

governs and manages its information technology (IT) portfolio lifecycle, and continually 

harnesses IT resources, investment health, and portfolio performance insights for capital 

planning decisions to deliver secure, flexible, extensible, and resilient technology services and 

solutions that maximize business value. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.

Effective Investment Governance 

Fiscal Service Governance focuses on overall progress in achieving the outcomes described in 

the Bureau’s Strategic Plan and the Future of Federal Financial Management vision. The 

governance and portfolio management functions ensure that the IT Portfolio maintains cost 

effectiveness and continuously delivers intended results throughout the lifecycle of its 

investments. This includes a monthly performance assessment on investment’s cost, schedule, 

risk and performance trends. A ChatStat process – where projects are formally reviewed based 

on negative trends or concerns, senior leadership is given visibility into the project’s issues, and 

Get-to-Green plans are established and tracked to completion – is now fully operationalized in 

Governance as well. The Bureau is also beginning to evaluate programs and projects for ongoing 

results management. The value insights being gained inform governance decisions around 

investment planning, selection, resourcing, and prioritization to best support the mission and 

long-term plans for Fiscal Service and Treasury. 

Effective Project Execution 

Fiscal Service has a disciplined and consistent approach to project management (PM) rooted in 

industry standard best practices and supported by a Bureau-wide Program Management 

Improvement Accountability Act (PMIAA) framework, Solutions Lifecycle Policy, and Project 

Performance and Accountability Standards. The PMIAA framework is in pilot, and 

policy/standard gap assessments are underway. In addition, the Bureau has a project management 
Fiscal Service - 27 

community of practice that provides practitioners with a collaborative forum and 

communications, unique learning opportunities, creative problem-solving support, and leadership 

led discussions on practical lessons learned. Each large-scale IT initiative has a dedicated 

program manager and integrated program team. The systems that support each investment are 

enhanced using iterative development techniques, with most of the Bureau’s software 

development projects using an iterative development methodology. Project-based reporting is 

used to align projects from governance through execution and thus improve the Bureau’s ability 

to monitor performance and shape IT strategy. 

Enterprise Architecture Services 

Enterprise Architecture (EA) services ensure that Fiscal Service applies a common framework, 

using consistency and standardization practices, to describe and analyze investments which 

enables the Bureau to proactively plan for changes, according to business vision and technology 

trends. Fiscal Service’s EA program is designed to facilitate cross-agency analysis of 

capabilities, knowledge, processes, and relationships to apply evidence-based techniques, 

identify duplicative investments, discover goals and opportunities for collaboration with other 

agencies, and establish a line-of-sight from the highest-level strategic goals to the infrastructure 

that enables the achievement of those goals. The value provided by the Bureau’s EA services is 

demonstrated through the development of a Fiscal Service technology roadmap, which is 

leveraged in tandem with IT Portfolio rationalization and investment and cost optimization 

efforts to continuously transform methods of IT service and product delivery. Service Brokers 

ensure this transformation is designed and implemented in a standardized manner while also 

aligned with customer expectations by engaging with stakeholders ahead of their modernization 

needs. 

Enterprise Risk Management (ERM) 

The nature of Fiscal Service’s work requires effective enterprise risk management and high 

levels of performance to ensure the Bureau maintains operational excellence while seeking 

innovative solutions to improve efficiencies and transform financial management and the 

delivery of shared services in the Federal Government. To this end, Fiscal Service has 

established an Office of Enterprise Risk Management (OERM) to promote a common 

understanding and approach to risk management and strengthen organizational capabilities to 

recognize, assess, and address risks that could disrupt the successful achievement of strategic 

goals and objectives. Fiscal Service has also established a Bureau Risk Committee to provide 

executive-level accountability for identifying, managing, and monitoring enterprise risk for the 

Bureau, making timely and collaborative risk decisions, providing transparency around 

enterprise risks, and enabling a risk-aware culture. In collaboration with the Executive 

Board/Risk Committee, OERM has developed the Fiscal Service Risk Appetite Statement to 

guide the Bureau’s strategic analysis of risk. Moreover, through the development and issuance of 

an ERM framework, policies, guidance, and tools, the Bureau incorporates risk management 

practices in decision-making processes such as strategic and tactical planning, workforce 

planning, capital investment planning, objective prioritization, and budget formulation. Fiscal 

Service continues to communicate the importance of effective risk management to all employees. 

 
Fiscal Service - 28 

Cybersecurity 

Fiscal Service has a multi-faceted mission that promotes financial integrity and operational 

efficiency across the Federal Government. As such, protecting the information and technology 

resources that support the Bureau’s mission with more modern solutions that will support 

security, resiliency, and agility are critically important. Fiscal Service is responsible for 63 

Federal Information Security Modernization Act of 2014 (FISMA) systems with billions of 

Personally Identifiable Information (PII) records, including multiple High Value Assets (HVAs) 

that support the Financial Services Sector of the Critical Infrastructure (CI) of the Federal 

Government. Fiscal Service invests in strengthening the cyber defenses of HVAs and other 

systems against the increasing volume, sophistication, frequency, impact and brazenness of 

global cybersecurity threats. These investments are critical to maintain confidence in the 

financial ecosystem of the United States and avoid the immeasurable reputational damage 

Treasury would suffer in the event of a significant data breach or cybersecurity incident. 

Financial integrity and operational efficiency are accomplished by effective, coordinated 

management of security risks and incidents that ensure the confidentiality, integrity, and 

availability of the Bureau’s systems are maintained. Fiscal Service employs a defense-in-depth 

strategy and approach to identify, protect against, detect, and respond to anomalies in the 

Bureau’s network and systems. In addition, Enterprise Cybersecurity ensures Fiscal Service 

information technology resources are compliant with the National Institute of Standards and 

Technology security standards and satisfies annual security audit requirements. In 2022 and 

beyond, Fiscal Service is accelerating efforts that will enhance cybersecurity and support cyber 

resiliency, including implementing the provisions of Executive Order 14028, Improving the 

Nation’s Cybersecurity, and addressing the zero trust security requirements in OMB 

Memorandum M-22-09. 



Department of the Treasury 

Office of Financial Stability 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
Table of Contents

Section I – Budget Request........................................................................................................... 2

A – Mission Statement ................................................................................................................ 2

1.1 - Program Account Summary ............................................................................................... 2

1.2 – Financing Account Summary (1.2 Credit) ......................................................................... 3

1.3 – Program Disbursement, Repayments, and Cost/Savings ................................................... 3

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

C – Credit Reform Account Description .................................................................................... 4

1.4 – Budget Adjustments Table ................................................................................................. 5

D – Budget Increases and Decreases Description ....................................................................... 5

1.5 – Object Classification (Schedule O) Obligations ................................................................ 6

E – Appropriations Language and Explanation of Changes ....................................................... 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

C – Operational Goals ................................................................................................................. 9

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments ....................................................................................... 10
OFS - 2 

Section I – Budget Request 

A – Mission Statement 

A central part of the response to the 2008 financial crisis was the implementation of the Troubled 

Asset Relief Program (TARP), which was established in the fall of 2008 under the Emergency 

Economic Stabilization Act of 2008 (EESA) (P.L. 110-343) within the Office of Domestic 

Finance at the U.S. Department of the Treasury (Treasury). TARP was created to restore the 

liquidity and stability of the financial system, and it is administered by the Office of Financial 

Stability (OFS). 

Since late 2010, OFS has made significant progress in winding down TARP investment 

programs and in recovering OFS’s outstanding investments. OFS continues to operate a housing 

program under TARP to help struggling families avoid foreclosure, but in fiscal year (FY) 2016 

began to wind-down the largest TARP housing program. As of November 30, 2021, OFS has 

recovered more than 96 percent of the $443.1 billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion from Treasury’s equity in American International 

Group, Inc. (AIG). 

1.1 - Program Account Summary 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

 Actual Estimated Estimated $ Change % Change 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Obligations 

Equity Program Account 4,752 12,334 0 (12,334) -100.0% 

Housing Account 0 0 0 0 NA 

TARP Direct Program Account 0 0 0 0 NA 

TARP Administrative Account 40,789 37,637 34,333 (3,304) -8.8% 

TARP Negative Downward 

Reestimate Receipt Account (3,946) (4,000) 0 4,000 -100.0% 

Total Obligations $41,595 $45,971 $34,333 ($11,638) -25.3% 

Budget Authority 

Equity Program Account 4,752 12,334 0 (12,334) -100.0% 

Housing Account 0 0 0 0 NA 

TARP Direct Program Account 0 0 0 0 NA 

TARP Administrative Account 40,789 37,637 34,333 (3,304) -8.8% 

TARP Negative Downward 

Reestimate Receipt Account (3,946) (4,000) 0 4,000 -100.0% 

Total Budget Authority $41,595 $45,971 $34,333 ($11,638) -25.3% 

Outlays 

Equity Program Account 4,752 12,334 0 (12,334) -100.0% 

Housing Account 479,323 508,000 456,000 (52,000) -10.2% 

TARP Direct Program Account 47 0 0 0 NA 

TARP Administrative Account 30,598 33,000 30,000 7,000 21.2% 

TARP Negative Downward 

Reestimate Receipt Account (3,946) (4,000) 0 4,000 -100.0% 

Total Outlays $510,774 $549,334 $496,000 ($53,334) -9.7% 

Total Full-time Equivalents (FTE) 10 10 8 -2 -20.0% 
OFS - 3 

1.2 – Financing Account Summary (1.2 Credit) 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

 Actual Estimated Estimated $ Change % Change 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

TARP Direct Loans 

Obligations 0 2,822 0 (2,822) -100.0% 

Collections 2,822 0 0 0 NA 

Financing Authority (net) 0 0 0 0 NA 

Financing Disbursements (net) (2,822) 0 0 0 NA 

Equity Purchases 

Obligations 3,500 439 118 (322) -73.2% 

Collections 6,138 12,896 1,069 (11,827) -91.7% 

Financing Authority (net) (1,955) 0 0 0 NA 

Financing Disbursements (net) (2,637) (12,457) (951) 11,506 -92.4% 

Housing 

Obligations 1,104 644 0 (644) -99.9% 

Collections 482 6 0 (6) -100.0% 

Financing Authority (net) 0 0 0 0 NA 

Financing Disbursements (net) 622 820 42 (778) -94.9% 

1.3 – Program Disbursement, Repayments, and Cost/Savings 

 Dollars in Billions 

 

Cumulative 

Obligated 

(as of 

11/30/2021) 

Cumulative 

Disbursed 

(as of 

11/30/2021) 

Cumulative 

Outstanding 

(as of 

11/30/2021) 

Total 

Cumulative 

Income 

(as of 

11/30/2021) 

Total Cash 

Back (as of 

11/30/2021) 

Total 

Estimated 

Life Costs 

(as of 

11/30/2021) 

Bank Support Programs 250.5 245.1 0.0 35.7 275.6 (24.2) 

Credit Market Programs 19.1 19.1 0.0 4.5 23.6 (3.3) 

AIG Investment Program (AIG) 67.8 67.8 0.0 1.0 55.3 15.2 

Automotive Industry Financing Program 79.7 79.7 0.0 7.5 70.6 12.1 

Treasury Housing Programs 32.6 31.4 0.0 0.0 0.0 32.4 

Total $449.6 $443.1 $0.0 $48.7 $425.1 $32.1 

Additional AIG Common Shares Held by 

Treasury $0.0 $0.0 $0.0 $17.6 $17.6 ($17.6) 

Total for Programs and Shares $449.6 $443.1 $0.0 $66.3 $442.7 $14.6 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of nearly $2.4 billion on those shares. 

B – Vision, Priorities and Context 

TARP was created by EESA in October 2008 as part of a broad-based federal response to the 

financial crisis. The purposes of EESA were — 

(1) to immediately provide authority and facilities that the Secretary of the Treasury could use to 

restore liquidity and stability to the financial system of the United States; and 

(2) to ensure that such authority and facilities were provided in a manner that would — 

(A) protect home values, college funds, retirement accounts, and life savings; 

(B) preserve homeownership and promote jobs and economic growth; 

(C) maximize overall returns to the taxpayers of the United States; and 

(D) provide public accountability for the exercise of such authority. 
OFS - 4 

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.” This program supports Treasury’s goal of 

financial stewardship. 

As a result of improved financial conditions and careful stewardship of the program, the ultimate 

cost to taxpayers of TARP investments is estimated to be significantly lower than initially 

expected. In FY 2009, the program was projected to cost $341 billion, but as of November 30, 

2021, it is estimated to cost only $32.1 billion (of which $-0.3 billion relates to investments and 

$32.4 billion relates to housing programs that do not require repayments by recipients). Lifetime 

costs are projected to be $14.6 billion with the inclusion of receipts from Treasury’s sale of 

additional AIG common stock. 

During FY 2022 and FY 2023, OFS’s priority is to continue the responsible wind-down of all 

TARP programs. OFS is expected to complete its wind-down in FY 2024. 

OFS Administrative Expenses 

The authority for OFS’s administrative funding is provided in section 118 of EESA. In 

FY 2022, OFS plans to obligate just over $37 million and use no more than 10 Full-Time 

Equivalent (FTE) employees. In FY 2023, OFS plans to obligate just over $34 million and use 

no more than 8 FTE employees, a reduction of over 8% and 20%, respectively, from the current 

FY 2022 estimates, to fund the management, maintenance and continued wind-down of the 

TARP housing programs and the disposition of OFS’s remaining investments. 

C – Credit Reform Account Description 

Section 123 of EESA requires the cost of TARP programs to be calculated using the methods 

required by the Federal Credit Reform Act of 1990 (“credit reform”). In addition to the OFS 

Administrative Account, the organization manages six accounts to comply with the credit reform 

accounting requirements: (1) the TARP Equity Purchase Program Account; (2) the TARP Equity 

Purchase Financing Account (EPFA); (3) the TARP Housing Programs Account; (4) the TARP 

Housing Programs, Letter of Credit (LOC) Financing Account; (5) the TARP Program Account; 

and (6) the TARP Direct Loan Financing Account (DLFA). 

Account Descriptions 

TARP Equity Purchase Program Account: The TARP Equity Purchase Program Account 

records the subsidy costs (cost to the government) associated with federal equity injections into 

qualifying financial institutions. Subsidy costs are calculated on a net present value basis. 

TARP Equity Purchase Financing Account: The TARP Equity Purchase Financing Account is a 

non-budgetary account that records all financial transactions to and from the government 

resulting from equity purchases. The EPFA primarily tracks each cohort year’s purchase activity 

(dividend payments, the exercise of warrants, Treasury borrowings, interest paid to or received 

from Treasury, etc.) and is not included in the budget totals when calculating total government 

spending. 
OFS - 5 

TARP Housing Programs Account: The TARP Housing Programs Account records the subsidy 

costs and cash outlays associated with Treasury’s housing programs under TARP. The Making 

Home Affordable (MHA) and Hardest Hit Fund (HHF) housing programs are recorded on a cash 

basis, and the Federal Housing Administration (FHA) Short-Refinance Program is subject to 

credit reform accounting requirements, whereby its subsidy cost is calculated on a net present 

value basis. 

TARP Housing Programs, LOC Financing Account: The TARP Housing Programs, LOC 

Financing Account is a non-budgetary account that records all financial transactions to and from 

the government resulting from OFS’s FHA Short-Refinance Program. Like other financing 

accounts, its primary purpose is the financial tracking of each cohort year’s loan activity. It is 

not included in the budget totals. 

TARP Program Account: The TARP Program Account records the subsidy costs associated with 

direct loans obligated to qualifying institutions. Subsidy costs are calculated on a net present 

value basis. 

TARP Direct Loan Financing Account: The TARP Direct Loan Financing Account is a nonbudgetary account that records all financial transactions to and from the government resulting 

from direct loans. Like EPFA, its primary purpose is the financial tracking of each cohort year’s 

loan activity. It is not included in the budget totals. 

OFS Administrative Account: This account provides for the administrative costs of OFS. 

1.4 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Estimate 10 $37,637 

Changes to Base: 

Maintaining Current Levels (MCLs): 794 

Pay Annualization (2.7% average pay raise) 13 

Pay Raise (4.6% average pay raise) 67 

Non-Pay 714 

Subtotal Changes to Base 0 $794 

FY 2023 Current Services 10 $38,431 

Program Changes: 

Program Decreases: (2) 

 

(4,098) 

Housing Program Support 0 

 

(3,650) 

OFS Salaries and Benefits (2) 

 

(393) 

Organizational Support 0 

 

(55) 

FY 2023 Estimate 8 $34,333 

D – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) .......................................................... +$794,000 / +0 FTE

Pay Annualization (2.7%) +$13,000 / +0 FTE 

Funds are required for annualization of the January 2022 pay raise. 
OFS - 6 

Pay-Raise (4.6% in FY 2023) +$67,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$714,000 / +0 FTE 

Funds are required for non-labor costs such as travel, contracts, rent, supplies, and equipment. 

Program Decreases ...................................................................................... -$4,098,000 / -2 FTE 

Housing Program Support -$3,650,000 / -0 FTE 

Administrative and compliance functions will continue to wind-down during FY 2022 and over 

time as programs close and no new assistance actions are provided and commitments are paid. 

 OFS Salaries and Benefits -$393,000 / -2 FTE 

Savings resulted from natural attrition and expiration of term appointments due to the winddown of various TARP programs. 

Organizational Support -$55,000/ -0 FTE 

Administrative costs associated with managing OFS’s portfolio will decline over time as TARP 

winds down. However, many duties and responsibilities will remain and are not directly 

correlated to the volume of assets held by OFS. Many of these organizational support functions 

will be run in-house and relate to legislative and oversight-mandated reporting functions, as well 

as the management and maintenance of TARP’s housing programs. 

1.5 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,187 1,489 1,896 

11.5 - Other personnel compensation 46 42 40 

11.9 - Personnel Compensation (Total) 2,233 1,531 1,936 

12.0 - Personnel benefits 406 384 380 

Total Personnel and Compensation Benefits $2,639 $1,915 $2,316 

21.0 - Travel and transportation of persons 17 15 5 

23.0 - Rent, Communications and Utilities 1 1 1 

25.1 - Advisory and assistance services 3,418 2,510 2,500 

25.2 - Other services 28,634 27,650 24,000 

25.3 - Other purchases of goods & serv from Govt accounts 6,070 5,535 5,500 

26.0 - Supplies and materials 3 3 3 

31.0 - Equipment 8 8 8 

Total Non-Personnel $38,150 $35,722 $32,017 

Total Budgetary Resources $40,789 $37,637 $34,333 

 

Full-time Equivalents (FTE) 10 10 8 

*Amounts include all budgetary resources 

E – Appropriations Language and Explanation of Changes 

OFS does not receive discretionary appropriations from Congress. Therefore, no appropriations 

language is proposed.
OFS - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

OFS’s continued wind-down efforts align with Treasury’s strategic goal of promoting equitable 

economic growth and recovery. 

Bank Support Programs 

CPP: OFS created CPP, its largest program, in October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 states. During FY 2021, OFS continued to wind-down 

remaining CPP investments. As of November 30, 2021, CPP has generated $226.4 billion in 

recoveries for taxpayers with one institution remaining in the program, for a total of $12 million 

in investments outstanding. 

CDCI: OFS created CDCI on February 3, 2010, to provide investments of capital to certified 

Community Development Financial Institutions (CDFI) banks, thrifts, and credit unions. OFS 

invested $570 million in 84 CDFIs, of which 28 institutions converted $363 million (including 

warrants) from CPP to CDCI. As of November 30, 2021, CDCI has generated $592 million in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $1 million 

in investments outstanding. 

Housing Programs 

OFS established several TARP housing programs, assisting millions of homeowners and 

introducing reforms for the mortgage servicing industry to facilitate mortgage modifications. 

MHA: In 2009, OFS launched MHA to help homeowners prevent avoidable foreclosures and 

strengthen the housing market. The cornerstone of MHA is the Home Affordable Modification 

Program (HAMP), which provides eligible homeowners the opportunity to reduce their monthly 

mortgage payments. In accordance with provisions of the Consolidated Appropriations Act, 

2016 (the Act), MHA terminated on December 31, 2016, except with respect to certain 

applications made before such date. MHA servicers were required to design policies and 

procedures to reasonably ensure that all MHA transactions were completed by December 1, 

2017. As of November 30, 2021, OFS had disbursed $21.9 billion out of a possible $22.9 billion 

under MHA. 

HHF: Established in 2010 to provide aid to homeowners in states hit hardest by the economic 

and housing market downturn. The $7.6 billion initiative encompassed 18 states and the District 

of Columbia (DC). In December 2015, the Act granted Treasury authority to make an additional 

$2.0 billion in commitments through the HHF. As of November 30, 2021, OFS had disbursed 

$9.5 billion out of a possible $9.6 billion under HHF. 

FHA Short-Refinance Program: OFS continues to support the FHA Short-Refinance Program, 

which was intended to assist borrowers with negative equity. The program has seen limited 

participation. As such, OFS has incrementally reduced the LOC Facility supporting this program 

from an initial $8.0 billion to $27 million in FY 2017, which matches OFS’s maximum liability 

for loans covered by the program as of December 31, 2016, when the program ended for new 
OFS - 8 

refinances. As of November 30, 2021, the revised lifetime cost estimate for the program was 

$13 million for outstanding refinanced loans. 

Other Programs 

Automotive Industry Financing Program (AIFP): OFS fully wound down AIFP during FY 2015, 

selling its remaining stake in Ally Financial. OFS disbursed $79.7 billion in loans and equity 

investments to the automotive industry through the AIFP. As of November 30, 2021, OFS had 

collected $70.6 billion through sales, repayments, dividends, interest, recoveries, and other 

income. Recoveries from the bankruptcy liquidation of Old Chrysler and Old GM remain 

possible. 

All other TARP programs closed prior to FY 2016, including the Targeted Investment Program, 

Asset Guarantee Program, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and AIG 

Investment Program. 

B – Budget and Performance by Budget Activity 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Clean Audit Opinion on 

TARP Financial 

Statements (ensure 

transparency of operations 

to the public) 

1 1 1 1 1 1 1 1 

Percentage of 

Congressional Constituent 

Correspondence Responses 

Completed within 10 

Business Days of Receipt 

87.5 100 93.75 100 100 100 100 100 

Percentage of FOIA 

Assignments On-Time or 

Less Than 30-Days 

Overdue (ensure 

transparency within the 

government) 

85 85 97.5 100 100 100 80 80 

Percentage of SIGTARP 

and GAO Oversight 

Recommendations 

Responded to On-Time 

(ensure transparency of 

operations to the public) 

100 100 99.5 100 100 100 100 100 

Percentage of Statutorily 

Mandated Reports 

Submitted On-Time 

(ensure transparency of 

operations to the public) 

96.25 100 100 100 100 100 100 100 

Key: I – Indicator

The authority for OFS’s administrative funding is provided in section 118 of EESA. The 

administrative budget consists primarily of contracting and financial agent support costs 

associated with OFS’s ongoing implementation and management of the TARP housing programs 

and the management and disposition of OFS’s remaining investments. In addition, continuing 

organizational support, including information technology, facilities, legal, compliance, 
OFS - 9 

accounting, and human resources, will be needed to manage and wind-down these ongoing 

initiatives. OFS’s senior management is responsible for performance on its operational goals. 

C – Operational Goals 

OFS’s strategic goal is promoting equitable economic growth and recovery and the request will 

support the underlying operational goals to help OFS achieve this strategic goal. These 

operational goals include: 

Completing the wind-down of remaining TARP investment programs; 

1. Continuing to help struggling homeowners avoid foreclosure; 

2. Minimizing the cost of the TARP programs to the taxpayer; and 

3. Operating with the highest standards of transparency, accountability, and integrity. 

Completing the wind-down of remaining TARP investment programs 

The first Operational Goal is to complete the wind-down of the remaining TARP investment 

programs, the CPP and CDCI. OFS continues to exit CPP and CDCI by either: (i) allowing 

banks that are able to repurchase in full in the near future to do so; or (ii) restructuring and 

selling OFS’s investments in limited cases. OFS continues to work with the remaining CPP 

institution to exit TARP. As of November 30, 2021, OFS had $12 million in outstanding CPP 

investments and $1 million in outstanding CDCI investments. 

Continuing to help struggling homeowners avoid foreclosure 

OFS’s second Operational Goal is to continue helping struggling homeowners avoid foreclosure. 

The Act, signed into law on December 18, 2015, provided that the MHA program would 

terminate on December 31, 2016, except with respect to certain loan modification applications 

made before such date. As set forth in program guidelines, MHA servicers were required to 

evaluate applications submitted before the deadline and offer trial modifications to eligible 

applicants. All MHA transactions, including first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and unemployment forbearance plans, were required 

to be completed per program guidelines by December 1, 2017. Under this program, as of 

November 30, 2021, more than 1.7 million homeowners have secured permanent mortgage 

modifications. In addition, the HHF Program provides funding to 18 states and DC to assist 

struggling homeowners. As of November 30, 2021, HHF has disbursed approximately $9.5 

billion in total program and administrative funds, and HFAs have drawn approximately $9.5 

billion to prevent avoidable foreclosures and help stabilize neighborhoods. Based on 

information provided by the HFAs, all states are projected to be fully closed by the end of March 

2022, including having completed final compliance reviews and returning any unused funds to 

Treasury. 

Minimizing the cost of the TARP programs to the taxpayer 

The third Operational Goal of OFS is to minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP funds to reduce the federal debt, and continuing to 

replace government assistance with private capital in the financial system. OFS also takes steps 

to confirm that TARP recipients comply with any TARP-related statutory or contractual 

obligations such as executive compensation requirements and restrictions on dividend payments. 
OFS - 10 

Operating with the highest standards of transparency, accountability, and integrity 

OFS’s final Operational Goal is to continue to operate with the highest standards of 

transparency, accountability, and integrity. OFS posts a variety of reports online that provide 

taxpayers with regular and comprehensive information about how TARP funds are spent, who 

received them and on what terms, and how much has been recovered to date. OFS also publishes 

the annual audited Agency Financial Report and continues to maintain productive working 

relationships with the three oversight bodies charged with auditing and reviewing TARP 

activities. 

Section III – Additional Information 

A – Summary of Capital Investments 

OFS uses Departmental Offices (DO) systems and is part of DO’s capital investment strategy. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: https://home.treasury.gov/about/budget-financial-reportingplanning-and-performance/budget-requestannual-performance-plan-and-reports. 



Department of the Treasury 

Office of Financial Research 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
OFR - 2 

Table of Contents 

Section I - Budget Request ........................................................................................................... 3

A – Mission and Vision Statement ............................................................................................. 3

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

1.1 – Resource Detail Table ........................................................................................................ 3

1.2 – Budget Adjustments Table ................................................................................................. 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 6

E – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B –Budget and Performance by Budget Activity ....................................................................... 8

2.1.1 – Data Center Resources and Measures ............................................................................. 8

Data Center Budget and Performance ......................................................................................... 8

2.1.2 – Technology Center Resources and Measures ............................................................... 10

Technology Center Budget and Performance ........................................................................... 10

2.1.3 – Research and Analysis Center Resources and Measures .............................................. 11

Research and Analysis Center Budget and Performance .......................................................... 11

2.1.4 – Operations and Support Services Resources and Measures ......................................... 12

Operations and Support Services Budget and Performance ..................................................... 12

C – Changes in Performance Measures .................................................................................... 13

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
OFR - 3 

Section I - Budget Request 

A – Mission and Vision Statement 

Mission: Promote financial stability by delivering high-quality financial data, standards, and 

analysis principally to support the Financial Stability Oversight Council (FSOC) and its member 

agencies. 

Vision: A transparent, efficient, and stable financial system. 

B – Summary of the Request 

The Office of Financial Research (OFR or Office) is estimating a fiscal year (FY) 2023 funding 

level of $88.112 million, which is $9.618 million higher than its FY 2022 estimated funding 

level. The FY 2023 Budget includes increases in funding for the Data Center, Technology 

Center, Research and Analysis Center (RAC), and Operations and Support Services. The 

increased funding reflects the resources required to effectively execute emerging research, 

monitoring, and data priorities in support of the OFR’s legislative mandate under the DoddFrank Wall Street Reform and Consumer Protection Act of 2010 (P.L. 111-203). It also provides 

for the corresponding technology and operations infrastructure needed to execute that mission 

work. 

1.1 – Resource Detail Table 

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

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

 

Dollars in Thousands

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections 

Assessments 0 $60,339 0 $81,719 0 $83,083 NA 1.7%

Interest 0 $32 0 $44 0 $88 NA 100.0%

Recoveries 0 $1,390 0 $3,520 0 $3,520 NA 0.0%

Restoration of Sequestration Rescission 0 $3,849 0 $3,441 0 $4,660 NA 35.4%

Unobligated Balances from Prior Years 0 $54,725 0 $46,360 0 $51,929 NA 12.0%

Total Revenue/Offsetting Collections 0 $120,335 0 $135,083 0 $143,280 NA 6.1%

Expenses/Obligations 

Data Center 10 $3,033 13 $4,045 15 $5,630 15.4% 39.2%

Technology Center 50 $40,743 62 $38,320 67 $40,909 8.1% 6.8%

Research and Analysis Center 21 $8,692 34 $15,184 43 $20,413 26.5% 34.4%

Operations and Support Services 30 $18,066 34 $20,945 38 $21,160 11.8% 1.0%

Total Expenses/Obligations 111 $70,534 143 $78,494 163 $88,112 14.0% 12.3%

Sequestration Reduction ($3,441) ($4,660) ($4,741)

Net Results 111 $46,360 143 $51,929 163 $50,427 14.0% -2.9%

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023

Actual Estimate Estimate % Change
OFR - 4 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ......................................................+$2,124,000 / +0 FTE 

Pay Annualization +$323,000 / +0 FTE 

Funds are requested for annualization of the January 2022 2.7% average pay raise. 

Pay Raise +$970,000 / +0 FTE 

Funds are requested for anticipated increases to labor costs to include merit pay increases for 

qualifying staff. 

Non-Pay +$831,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Non-Recurring Costs................................................................................-$1,360,000 / -0 FTE 

Non-Recurring Costs -$1,360,000 / -0 FTE 

This efficiency adjustment stems from the execution of non-recurring facilities improvements in 

FY 2022, associated with reentry planning and lease renewal activities. 

Program Increases................................................................................ +$8,854,000 / +20 FTE 

Research and Analysis Center $4,793,000 / +9 FTE 

This program increase is driven by new work requirements in support of the FSOC and the 

Administration’s emerging priorities: short-term funding markets, asset management/hedge fund 

monitoring, environmental risks, digital assets/cryptocurrencies, and cybersecurity. It responds 

to growing demands for research on financial stability, especially risks and vulnerabilities in 

areas not previously requested from our external stakeholders. This includes research related to 

uncleared bilateral repurchase agreement (repo) data and revitalizing a research grants program 

FTE Amount

FY 2022 Estimate 143 $78,494

Changes to Base:

Maintaining Current Levels (MCLs): 0 $2,124

Pay Annualization 0 $323

Pay Raise 0 $970

Non-Pay 0 $831

Non-Recurring Costs for Facilties Upgrades 0 ($1,360)

Subtotal Changes to Base 0 $764

FY 2023 Current Services 143 $79,258

Program Changes:

Program Increases: 20 $8,854

Research and Analysis Center 9 $4,793

Technology Center 5 $1,582

Data Center 2 $1,453

Operations and Support Services 4 $1,026

FY 2023 Estimate 163 $88,112

Dollars in Thousands
OFR - 5 

to drive high-impact research and analysis in research areas outside of traditional finance and 

economics disciplines. 

Technology Center $1,582,000 / +5 FTE 

This program increase is driven by new work requirements in support of a secure cloud 

environment, plus data and dataset management. It responds to: 

 Emerging cybersecurity needs, ensuring an ability to meet evolving demands for secure, 

cloud-based infrastructure. 

 Increasing demands for data sharing and data product functionality and support from internal 

and external stakeholders. This includes the development and maintenance of a climaterelated data and analytics hub serving multiple stakeholder groups. 

 Pursuit of research related to uncleared bilateral repo data and potentially subsequent data 

product work. This scales support for potentially collecting, maintaining, and using the new 

data and related products. 

Data Center $1,453,000 / +2 FTE 

This program increase is driven by new work requirements in support of the OFR’s data 

products, including financial monitors, and responds to: 

 Expanding requirements associated with the statutorily-mandated Financial Instrument 

Reference Database (FIRD). The FIRD was initially mandated within the Dodd Frank Act. 

Increased funding herein supports the analysis and integration of new reference data into the 

FIRD, based on emerging X9D1 Industry Forum recommendations that will inform the future 

shape of the FIRD. 

 Higher than anticipated workloads for monitor production, review, and publication due to 

rapidly changing market conditions, limited data availability, and varying levels of data 

quality. This supports the development of a framework that defines a path from conception 

to production for machine learning products, performing exploratory data analysis for the 

development of new data visualizations, and increasing the interpretability of complex 

financial data. 

 Increasing demands for data sharing and data product functionality and support from internal 

and external stakeholders. This includes the development and operation of a climate-related 

data and analytics hub serving multiple stakeholder groups. An updated Climate Data Hub 

would serve additional FSOC stakeholders beyond the Federal Reserve Board and Federal 

Reserve Bank of New York in FY 2023. 

 Growing standards work initiatives raised by OFR’s global and domestic partners. This 

increase responds to the increased engagements with the Department of the Treasury’s Office 

of International Financial Markets in the financial standards work of the OFR and the FSOC. 

Operations and Support Services +$1,026,000 / +4 FTE 

This program increase stems from process and program improvement efforts begun in FY 2021, 

which enhanced the effectiveness of the OFR’s operational functions. This includes focused 

service improvements for strategic planning, resource management, risk management, and 

organizational performance measurement and monitoring, as well better use of data for decision 

making through improved tools and visualizations. 

1

X9D is a Subcommittee of the Accredited Standards Committee X9, accredited by the American National 

Standards Institute to develop and maintain voluntary consensus standards for the financial services industry. 
OFR - 6 

1.3 – Object Classification (Schedule O) Obligations

1) Personnel compensation and benefits include direct OFR staff members only. Object Classification 25.3, “Other goods and services from 

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

Offices; personnel benefits services from the Office of the Comptroller of the Currency; and, services from Treasury’s Bureau of the Fiscal 

Service Administrative Resource Center, including human resource, procurement, travel, and financial management services. 

D – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

E – Legislative Proposals 

The OFR has no legislative proposals. 

 

Dollars in Thousands

FY 2021 FY 2022 FY 2023

Object Classification

Actual 

Obligations

Estimated 

Obligations

Estimated

Obligations

11.1 - Full-time permanent 20,901 26,508 31,168

11.3 - Other than full-time permanent 6 7 8

11.5 - Other personnel compensation 475 529 623

11.9 - Personnel Compensation (Total) 21,382 27,045 31,799

12.0 - Personnel benefits 8,545 9,919 11,663

Total Personnel and Compensation Benefits $29,927 $36,964 $43,461

21.0 - Travel and transportation of persons 7 450 450

23.3 - Communication, utilities, and misc charges 125 128 137

24.0 - Printing and reproduction 4 4 4

25.1 - Advisory and assistance services 23,230 23,765 25,543

25.2 - Other services 21 21 23

25.3 - Other purchases of goods & serv frm Govt accounts 730 747 803

25.7 - Operation and maintenance of equip 7,373 7,091 6,597

26.0 - Supplies and materials 8,378 8,568 8,781

31.0 - Equipment 640 655 704

32.0 - Land and structures 99 101 109

41.0 - Grants, subsidies, and contributions 0 0 1,500

Total Non-Personnel 40,607 41,530 44,651

Total Budgetary Resources $70,534 $78,494 $88,112

Full-time Equivalents (FTE) 111 143 163
OFR - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, the OFR is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

 Goal 2 – Enhance National Security 

o Objective 2.1 – Cyber Resiliency of Financial Systems and Institutions 

 Goal 3 – Protect Financial Stability and Resiliency 

o Objective 3.1 – Financial System Vulnerabilities 

 Goal 5 – Modernize Treasury Operations 

o Objective 5.1 – Recruit and Retain a Diverse and Inclusive Workforce 

o Objective 5.3 – Better Use of Data 

o Objective 5.4 – Customer Experience Practices 

OFR priorities for FYs 2022 and 2023 include: 

1. Conducting relevant research and providing timely financial stability analysis and data 

products to the FSOC, its member agencies, and other stakeholders. 

2. Administering highly secure and efficient service-oriented technology, data collection, data 

management, and data mandate-oriented programs; continuing engagement as an essential 

source of standards expertise in domestic and international fora; and becoming a source of 

standardized data necessary for financial stability risk measurement and monitoring. 

3. Strengthening management accountability and employee engagement to continuously 

improve support for the FSOC and its member agencies. 

The Office will continue to focus on monitoring risks to financial stability and enhancing and 

expanding tools for the OFR, FSOC, and FSOC member agencies to monitor those risks. The 

OFR will continue to provide stakeholders with high-quality, timely research and policy analysis. 

The OFR will also continue its work to identify and fill financial data gaps and to develop and 

implement financial data standards that underpin the quality and comparability of financial data 

needed for regulatory oversight work. Specific examples of this work include the OFR’s 

ongoing data collection of centrally-cleared repurchase agreements as well as support for the 

Secured Overnight Financing Rate, the Alternative Reference Rates Committee’s preferred 

alternative to LIBOR. It also includes the exploration of a potential uncleared bilateral 

repurchase agreement data collection and how the OFR could serve as a climate data hub. 

The OFR will continue to publish its statutorily-mandated Annual Report that assesses the state 

of the U.S. financial system and presents key findings from the OFR’s research. High quality 

data, strong research expertise, and capable and flexible information technology (IT) are 

essential to continue to support these assessments. The OFR will continue to assist the FSOC 

Secretariat by providing data, analysis, and other resources needed for the FSOC’s annual report 

to Congress. In addition, as of December 2021, the OFR took on the role of Secretariat of the 

Regulatory Oversight Committee (ROC), an international group of financial market regulators, 

public authorities, and observers from more than 50 countries. 
OFR - 8 

The OFR is maturing its human capital strategy to foster a high-performing and inclusive team, 

support employee engagement, and to strengthen its management team. Recognizing that 

organizational excellence is necessary for the OFR to achieve its mission, work slated for FYs 

2022 and 2023 includes a range of initiatives related to human capital. The OFR will continue 

building on Federal Employee Viewpoint Survey results with a focus on internal 

communications, workforce planning, and learning and development. This also includes the 

deployment of a competency model that helps the OFR better understand existing staff’s learning 

and development needs while improving understanding and planning related to the OFR’s 

staffing pipeline. The OFR will continue maturing its organizational performance management, 

enterprise risk management, and enterprise-level strategic, tactical, and budget planning 

programs. 

B –Budget and Performance by Budget Activity 

2.1.1 – Data Center Resources and Measures 

 

Data Center Budget and Performance 

($5,630,000 from Assessments):

The Data Center seeks new ways to promote, share, and develop the OFR’s data and data 

analytic products with external stakeholders, and advances the development and use of data 

standards to improve the quality and sharing of data across the regulatory system. The Data 

Center’s efforts are divided into two major focus areas: 1) Data Products, and 2) Data Strategy 

and Standards.

Data Products 

The Data Products Team serves as the product integrator of the overall vision, management, and 

implementation of the OFR’s data products program. The team continues to mature its data 

science capacity, incorporating elements of data science in order to expand the OFR’s ability to 

gain deeper insights from financial markets data and data the OFR produces. 

Throughout FY 2023, the team will continue efforts to enhance and expand the OFR’s financial 

monitors. For FY 2023, Data Products will target having a 95% on-time publication of the 

financial monitors. The team will develop a common user-interface, data, and an analytical 

framework for the OFR’s production of financial monitors; update deprecated production code 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Estimate Estimate

Expenses/Obligations $17,833 $15,967 $5,849 $2,771 $3,033 $4,045 $5,630

$17,833 $15,967 $5,849 $2,771 $3,033 $4,045 $5,630

Full-time Equivalents (FTE) 44 42 9 9 10 13 15

Budget Activity Total

 Resource Level 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measure Actual Actual Actual Actual Actual Target Target Target 

Number of Legal Entity Identifiers (LEIs) Issued 

Cumulatively in the United States and 

Internationally

587,941 1,300,832 1,487,695 1,733,473 1,941,554 I I I

Number of Times That Financial Data Standards 

are Incorporated in Rules and Regulations 4 1 1 3 2II I

Percent of monitors updated or expanded during 

the reporting period N/A N/A N/A N/A 100% 95% 95% 95%

Key: I - Performance Indicator
OFR - 9 

for the Financial Stability Index and Money Market Fund Monitors; and review and update, if 

required, the underlying analytical methodologies of all the OFR’s production financial 

monitors. 

The Data Products team plans to continue to implement the OFR-hosted Climate Data and 

Analytics Hub pilot. As part of this effort, it will produce and disseminate a lessons-learned 

report for the pilot. As directed, it will continue to support FSOC and OFR climate-related 

financial research. The Data Strategy and Standards (DSS) team will support this effort by 

developing and delivering multiple climate data taxonomies or ontologies as requested to fulfill 

the requirements of the OFR-Hosted Climate Data & Analytics Hub pilot. 

Data Strategy and Standards 

The DSS team is the OFR’s principal unit for ensuring the OFR meets its standards mandates. 

To meet these mandates, DSS leads and participates in domestic and international financial data 

standards organizations that meet the definition of a voluntary consensus standards organization, 

as established in the Office of Management and Budget’s Circular No. A-119. Financial data 

standards for financial data benefit regulators and financial market participants by making data 

aggregation easier, improving analysis, and reducing data collection costs. 

While promotion of the Legal Entity Identifier (LEI) remains a foundational standards focus for 

the OFR, the DSS team continues to play a leading role in the development of international 

consensus for, and governance of, vital identifiers for products, transactions, and the data 

elements critical to derivatives market reporting and regulation. Throughout FY 2023, the team 

will identify and analyze data standards gaps and the potential to fill them. Specific 

engagements include contributing to the further development of the Natural Person Identifier 

(ISO 24366), a new standard of the International Organization for Standardization. This 

standard provides specifications to uniquely identify the natural person relevant to any financial 

transaction. In addition, DSS will continue providing Secretariat support for the ROC, delivering 

expert knowledge of standards and service to its members. 

The DSS team also leads the standards development of the FIRD and will conduct analysis and 

validation of open datasets for use in future phases of the FIRD. This includes identifying 

industry data standards requirements obtained from the X9 Industry Forum for Financial Terms 

Harmonization and integrating new functionality into the OFR’s FIRD. This effort will be 

conducted in the X9 Industry Forum for Financial Terms Harmonization, with OFR as Chair. 

The DSS team will also expand its standards guidance and support for FSOC and main Treasury, 

including the Office of International Financial Markets in research and monitoring of emerging 

standards developments and potential risks in the area of payments, digital currency, digital 

identity, blockchain, and potential international risks from new standards initiatives. The team 

will also contribute standards requirements and compliance validation for uncleared bilateral 

repo data. 
OFR - 10 

The OFR Data Center monitors progress through the following key performance indicators:2

 Number of LEIs Issued Cumulatively in the United States and Internationally – The LEI 

helps the financial industry, regulators, and policymakers trace exposures and connections 

across the financial system. It also generates efficiencies for financial companies in internal 

reporting; risk management; and in collecting, cleaning, and aggregating data. In addition, 

the LEI can ease companies’ regulatory reporting burdens by reducing overlap and 

duplication with respect to the multiple identifiers reporting firms must manage. The 

indicator developed for the LEI tracks the progress of industry’s use of the LEI over time. 

 Number of Times that Financial Data Standards are Incorporated in Rules and Regulations – 

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

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

Similar to the indicator above, the Data Center monitors activity in this area to determine 

whether relevant pending rules and regulations incorporate financial data standards, as 

appropriate. 

2.1.2 – Technology Center Resources and Measures 

Technology Center Budget and Performance 

($40,909,000 from Assessments):

The OFR Technology Center oversees OFR’s information technology systems and system 

security, including an information technology platform to support analysis of large-scale data 

sets. The Technology Center also acquires commercial, nonpublic, and proprietary data through 

procurements, provider agreements, and the OFR’s own collection activities. To advance 

Treasury’s strategic goal to promote financial stability, the Technology Center provides missioncritical technology resources needed to produce financial stability monitors, research and 

briefings for the FSOC and other stakeholders, and evaluations of financial stability policies. It 

is responsible for secure access to data sets, and maintenance of data lineage, privacy, and 

governance. It provides data stewardship, onboarding, processing, storing, and archiving of data 

and work products. The OFR has internal performance measures for this activity; however, they 

are not public because the measures contain sensitive information. 

 

The Technology Center’s focus in FY 2023 will be on several major initiatives that require 

infrastructure growth in the near future. As the OFR engages more intensively in climate databased financial stability research, the Office will build and expand its information 

infrastructure to support these emerging needs. The Technology Center also anticipates 

2

Note that these are not measures, but indicators because the OFR, through its leadership in standards and regulatory 

oversight bodies and provision of technical guidance to other regulators, can influence these metrics but cannot 

directly control them. 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Estimate Estimate

Expenses/Obligations $29,235 $23,530 $28,278 $35,739 $40,743 $38,320 $40,909

$29,235 $23,530 $28,278 $35,739 $40,743 $38,320 $40,909

63 52 47 47 50 62 67

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
OFR - 11 

additional development, data storage, and security controls to support the third phase of the 

FIRD project, the LEI ROC project, and exploration of a potential collection of uncleared 

bilateral repo data. 

Cloud Transition 

Having migrated to the cloud environment, the OFR will shift to building out, implementing, 

and expanding cloud native applications and functionality—such as high performance 

computing, Hadoop, content delivery network, and serverless and scalable application 

programming interface—in support of OFR, FSOC, and ROC projects, data, and research. 

This requires further investment, development, and growth in our cloud infrastructure in FY 

2023. 

2.1.3 – Research and Analysis Center Resources and Measures 

 

Research and Analysis Center Budget and Performance 

($20,413,000 from Assessments): 

The Research and Analysis Center (RAC) conducts applied research and analysis and essential 

long-term research on systemic risk, macroprudential policy, and financial stability to support the 

stability of the U.S. financial system. The Center’s work aims to inform sound policy and 

develop tools for risk monitoring. Working closely with the FSOC, Treasury, the Financial 

Research Advisory Committee, and other key stakeholders, the OFR collaboratively identifies 

important issues that need to be addressed. The OFR focuses its resources on delivering 

impactful results that identify financial system fragilities and vulnerabilities, and the channels 

and sources of risk amplification through which vulnerabilities can affect financial stability. 

Supporting the FSOC and Congress with Timely and Relevant Research, Analysis, and Risk 

Monitoring Tools. 

In FY 2023, the RAC will devote significant effort to the collection and analysis of repo market 

data. This relates to heightened efforts to understand bilateral repo markets as well as 

continuation of analysis around centrally cleared repo markets on U.S. Treasury collateral. This 

strand of work broadly supports the Interagency Working Group on Treasury Market Liquidity, 

comprised of a number of financial regulatory agencies. The objective of this working group is 

to maintain and develop additional resilience of US Treasury markets which supports a major 

FSOC and Treasury strategic priority. 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $15,605 $12,302 $8,238 $7,340 $8,692 $15,184 $20,413

$15,605 $12,302 $8,238 $7,340 $8,692 $15,184 $20,413

53 42 24 21 21 34 43

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Measure Actual Actual Actual Actual Actual Target Target Target 

Timeliness of responses to FSOC research and 

analysis requests N/A N/A N/A 100% 100% 95% 95% 95%
OFR - 12 

The RAC is also devoting efforts to framework risks for the financial system, those which might 

not present themselves through the lens that financial regulators traditionally contemplate for 

markets and institutions. One of these framework risks is the risk posed to the financial system 

by the growth and adoption of digital assets. Consistent with Treasury’s strategic priorities, the 

RAC is studying the effects on traditional asset classes, changes in incentives, consequences of 

regulatory and policy gaps, and uses of financial innovation by new and existing financial 

institutions. A second framework risk is the threat posed by cybersecurity disruptions. In this 

regard, the RAC has entered a partnership with the Defense Advanced Projects Research Agency 

(DARPA) to develop analysis and technologies for resilience to cybersecurity disruptions to 

digital financial ledgers. As these ledgers are resident in financial market participants and 

utilities that relate to financial stability risks, the partnership has certain applications. 

Throughout FY 2023, the RAC will continue its direct work for the FSOC Secretariat, providing 

support for the FSOC’s annual report to Congress in the form of research, analysis, and other 

resources. The RAC will contribute to the FSOC’s transition to an activities-based approach for 

the non-bank designation process and will continue to respond to specific requests for research 

and analysis. The RAC also provides subject-matter experts to FSOC committees and working 

groups, and routinely collaborates on policy evaluation and financial research with staff from 

FSOC member agencies. Staffers frequently make presentations of their research and analysis to 

FSOC committees, such as the Systemic Risk Committee. 

2.1.4 – Operations and Support Services Resources and Measures 

Operations and Support Services Budget and Performance 

($21,160,000 from Assessments): 

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

Operations, and Chief Counsel’s Office. This category includes support provided through a 

shared services model and reimbursable arrangements with Treasury’s Departmental Offices; 

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

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

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

The OFR has made organizational excellence a critical priority. Initiatives related to Federal 

Employee Viewpoint Survey results, internal communications, workforce planning and 

competency modeling activities, continuous process improvement, organizational performance 

management, and enterprise planning frameworks are led by Operations and guided by the 

Director’s Office and Chief Counsel’s Office. These initiatives will continue across FY 2022 

and FY 2023. 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Estimate Estimate

Expenses/Obligations $26,533 $24,226 $17,496 $17,237 $18,066 $20,945 $21,160

$26,533 $24,226 $17,496 $17,237 $18,066 $20,945 $21,160

59 49 25 25 30 34 38

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
OFR - 13 

In coordination with Treasury’s Risk Management Office, Operations will continue to mature its 

enterprise risk management (ERM) program and the integration of ERM into strategic and 

tactical planning and organizational performance measurement. Key objectives for FY 2023 

include conducting an annual enterprise risk review, an enterprise risk maturity assessment, and 

the continuous improvement of OFR operations and support services. 

C – Changes in Performance Measures 

There are no changes in OFR’s performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

Capital investments that support OFR are included in the Departmental Offices plan. A 

summary of capital investment resources, including major IT and non-IT investments can be 

viewed and downloaded at: 

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


Department of the Treasury 

Financial Stability Oversight 

Council 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
FSOC-2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table ............................................................................................ 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ........................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 6

2.1.1 – Financial Stability Oversight Council Resources and Measures .................................... 6

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

Section III – Additional Information .......................................................................................... 7

A – Summary of Capital Investments ......................................................................................... 7
FSOC-3 

Section I – Budget Request 

A – Mission Statement 

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system. 

B – Summary of the Request 

The Financial Stability Oversight Council (FSOC or Council) anticipates a fiscal year (FY) 2023 

funding level of $12.433 million, including $7.933 million for the FSOC Secretariat and the 

Office of the Independent Member with Insurance Expertise, and $4.500 million to reimburse the 

Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by law. Of the 

$1.612 million overall increase from the FY 2022 estimated funding level, the increase to the 

FDIC reimbursement represents $1.246 million or 77 percent of this total. The FSOC is financed 

through assessments on certain bank holding companies and nonbank financial companies. 

See 31 CFR Part 150 and Treasury’s final rule and interim final rule governing the Assessments 

process: https://www.govinfo.gov/content/pkg/FR-2012-05-21/pdf/FR-2012-05-21.pdf. The 

funding for the first six months of operating expenses and 12 months of capital expenses are 

reflected in Unobligated Balances from Prior Years. This is because the first assessment covering 

the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

 

The increase reflects the need for the FSOC Secretariat to rebuild capacity and acquire resources 

to fulfill ongoing responsibilities and advance the Council’s priorities. These focus areas include: 

1) nonbank financial intermediation; 2) Treasury market resilience; 3) climate-related financial 

risk; and 4) digital assets. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Appropriated Resources Actuals Estimate Estimate % Change 

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Assessments 0 $8,228 0 $11,143 0 $11,329 NA 1.7% 

Interest 0 $4 0 $6 0 $12 NA 100.0% 

Recoveries 0 $76 0 $480 0 $480 NA 0.0% 

Restoration of Sequestration Rescission 0 $525 0 $469 0 $636 NA 35.4% 

Unobligated Balances from Prior Years 0 $7,463 0 $6,380 0 $7,022 NA 10.1% 

Subtotal New Appropriated Resources 0 $16,296 0 $18,478 0 $19,479 NA 5.4% 

Expenses/Obligations 

FSOC 14 $4,996 23 $7,567 27 $7,933 17.4% 4.8% 

FDIC 0 $4,451 0 $3,254 0 $4,500 NA 38.3% 

Subtotal Other Resources 14 $9,447 23 $10,821 27 $12,433 17.4% 14.9% 

Sequestration Reduction ($469) ($636) ($646) 

Total Budgetary Resources 14 6,380 23 7,022 27 6,400 17.4% -8.9% 

 
FSOC-4 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Estimate 23 $10,821 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $306 

Pay Annualization (2.7% average pay raise) 0 $28 

Pay Raise (4.6% average pay raise) 0 $144 

Non-Pay 0 $133 

Subtotal Changes to Base 0 $306 

FY 2023 Current Services 23 $11,127 

Program Changes: 

Program Increases: 4 $1,306 

FSOC Priority Workstream Hiring 4 1,220 

Strengthen DO Equity, Cybersecurity, IT, and facilities infrastructure 0 86 

FY 2023 Estimate 27 $12,433 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..........................................................+$306,000 / +0 FTE 

Pay Annualization (2.7%) +$28,000 / +0 FTE 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6 % in FY 2023) +$144,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$133,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Increases ......................................................................................+$1,306,000/ +4 FTE 

FSOC Priority Workstream Hiring +$1,220,000 / +4 FTE 

To fulfill the priorities set forth by the Secretary, acting in her capacity as the Chair of the 

Council, the FSOC Secretariat intends to increase its long-term staffing plan to 27 by four staff 

members. 

In estimating the resources needed to advance the Council’s new priorities and to realize 

improvements needed for ongoing responsibilities, the FSOC Secretariat predicts an ongoing 

headcount deficiency starting in the near-term. Preliminary work has already begun on the 

Council’s new initiatives, including work on measuring and mitigating climate-related financial 

risk and on understanding the potential financial stability risks posed by nonbank financial 

intermediaries. Together with staff at FSOC member agencies and other members, the FSOC 

Secretariat staff established the Council’s Hedge Fund Working Group (HFWG) and the OpenEnd Funds Working Group (OEFWG) and also published the Council’s Report on ClimateRelated Financial Risk in 2021. The Council also announced plans to establish two new 

committees to support the Council’s climate-related efforts, which the FSOC Secretariat will 

support along with the Council’s other existing committees. As these efforts mature, additional 

staff will be needed to ensure these groups and committees function as intended and make 
FSOC-5 

progress in these important areas. These priorities reflect the effort required in addition to core 

responsibilities such as publishing the annual report and advancing financial stability monitoring 

work. 

Strengthen Departmental Offices (DO) Equity, Cybersecurity, IT, and facilities infrastructure 

+$86,000 / +0 FTE 

This funding also includes FSOC’s costs associated with Treasury’s internal equity programs, 

including growing recruitment pipelines to diverse talent and improving support and analysis of 

equity programs geared at the existing workforce. 

This effort supports Equal Employment Opportunity (EEO) efforts as required in Executive 

Orders 13985, 13988, and 14035. 

This request also provides for FSOC’s portion of funding for a Treasury funding for non-capital 

investments. These ensures costs avoid diverting DO resources away from programmatic needs. 

The funding will also support Treasury’s strengthening of cybersecurity, consistent with 

heightened risks. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,029 3,353 4,117 

11.3 - Other than full-time permanent 168 0 0 

11.5 - Other personnel compensation 18 228 280 

11.9 - Personnel Compensation (Total) 2,215 3,581 4,397 

12.0 - Personnel benefits 755 1,031 1,266 

Total Personnel and Compensation Benefits $2,971 $4,612 $5,663 

21.0 - Travel and transportation of persons 2 40 40 

25.1 - Advisory and assistance services 213 700 708 

25.2 - Other services from non-Federal sources 4 17 17 

25.3 - Other goods and services from Federal sources 6,011 4,830 5,375 

26.0 - Supplies and materials 246 617 624 

31.0 - Equipment 0 5 5 

Total Non-Personnel $6,476 $6,209 $6,770 

Total Obligations $9,447 $10,821 $12,433 

 

Full-time Equivalents (FTE) 14 23 27 

D – Appropriations Language and Explanation of Changes 

The FSOC receives no appropriations from Congress. 

E – Legislative Proposals 

The FSOC has no legislative proposals. 
FSOC-6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The Council is chaired by the Secretary of the Treasury and consists of ten voting members and 

five nonvoting members who serve in an advisory capacity. 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 statutory purposes are to: 

1) 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) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

Among other statutory duties, the Council has a duty to facilitate information sharing and 

coordination among the member agencies regarding domestic financial services policy 

development, rulemaking, examinations, reporting requirements, and enforcement actions. 

This office supports the following strategic objectives for Strategic Goal 3, to Protect Financial 

Stability and Resiliency: 

 Objective 3.1: Financial System Vulnerabilities. 

 Objective 3.2: Resilient Treasury and Municipal Securities Markets. 

 Objective 3.3: Financial Innovation. 

This office supports the following strategic objectives for Strategic Goal 4, to Combat Climate 

Change: 

 Objective 4.3: Climate-related Financial Risks. 

B – Budget and Performance by Budget Activity 

2.1.1 – Financial Stability Oversight Council Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $5,655 $4,966 $5,246 $5,190 $4,996 $7,567 $7,933 

Budget Activity Total $5,655 $4,966 $5,246 $5,190 $4,996 $7,567 $7,933 

Full-time Equivalents (FTE) 17 13 14 15 14 23 27 

Note: The amounts of actuals in FSOC expenses/obligations for 2020 in the table above differ from the amounts in the 2022 President’s Budget 

by $325K. The accurate $5.190M is reflected in the above table. 

 
FSOC-7 

Financial Stability Oversight Council 

($7,933,000 from Assessment): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents provide information to the public relevant to the Council’s 

performance. Information on the Council is provided on www.treasury.gov, www.fsoc.gov. 

Performance documents for FSOC member agencies can also be found on their respective 

websites to provide transparency and accountability. 

On December 17, 2021, the Council published its annual report. The report describes activities of 

the Council over the past year, as the U.S. economy has continued to rebound from the 

disruptions caused by the COVID-19 pandemic. Additionally, the Council’s annual report 

describes significant financial market and regulatory developments, potential emerging threats to 

U.S. financial stability, and recommendations to promote U.S. financial stability. The report was 

developed collaboratively by members of the Council and their agencies and staffs. 

2.1.2 – FDIC Reimbursement Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $5,126 $4,162 $4,301 $2,993 $4,451 $3,254 $4,500 

Budget Activity Total $5,126 $4,162 $4,301 $2,993 $4,451 $3,254 $4,500 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

FDIC Reimbursement

($4,500,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement of these expenses to the Chairperson of the Council, who shall arrange for 

prompt reimbursement to the FDIC. FDIC expenses are for rule writing and resolution planning. 

Section III – Additional Information 

A – Summary of Capital Investments 

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan. 

A summary of capital investments, including major information technology and non-technology 

investments, can be viewed and downloaded at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Treasury Franchise Fund 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
TFF – 2 

Table of Contents

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

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

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

1.1 – Resource Detail Table ...................................................................................... 4

1.2 – Budget Adjustments Table ............................................................................... 5

C – Budget Increases and Decreases Description ..................................................... 5

1.3 – Object Classification (Schedule O) Obligations ........................................... 8

D – Appropriations Language and Explanation of Changes .................................... 8

E – Legislative Proposals .......................................................................................... 8

Section II – Annual Performance Plan and Report ................................................. 9

A – Strategic Alignment ........................................................................................... 9

B – Budget and Performance by Budget Activity .................................................. 10

2.1.1 – Treasury Shared Services Program Resources and Measures .................... 10

Treasury Shared Services Programs Budget and Performance ............................... 10

2.1.2 – Centralized Treasury Administrative Services Resources and Measures 11

Centralized Treasury Administrative Services Budget and Performance ............... 11

2.1.3 – Administrative Services Resources and Measures ................................... 12

Administrative Services Budget and Performance ................................................. 12

2.1.4 – Information Technology Resources and Measures .................................. 13

Information Technology Services Budget and Performance .................................. 13

C – Changes in Performance Measures .................................................................. 15

Section III – Additional Information ...................................................................... 15

A – Summary of Capital Investments ..................................................................... 15

B – Treasury Franchise Fund Program Costs ......................................................... 16
TFF – 3 

Section I – Budget Request 

A – Mission Statement 

To assist customer agencies in meeting their mission by providing responsive, customer-focused, 

cost-effective administrative and information technology support services. 

B – Summary of the Request 

The Treasury Franchise Fund (TFF) supports effective administrative and information 

technology services through commitment to service, efficient operations, openness to change, 

and values-based behavior. The TFF achieves cost savings leveraging economies of scale which 

promote efficient use of resources by shared service providers. 

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF shared service providers offer 

financial management, procurement, travel, human resources, information technology, and other 

administrative services to federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2023 Congressional Budget Justification reflects revised estimates for FY 2022 

along with new funding estimates for FY 2023. The revised estimates in FY 2022 for ARC 

Administration (Admin) includes an increase in resources to meet critical workforce demands for 

increased hiring and related human resource actions to help Bureaus and Offices achieve 

missions and priorities. The revised estimates also include a reduction in resources needed in 

ARC Information Technology’s (IT) planned operations and maintenance support because of 

efficiency gains realized from modernizations efforts to transition to cloud and low-code 

solutions for applications and services. Additionally, the FY 2022 revised estimates include a 

decrease in CTAS resources due to deferment of IT modernization investments. 

In FY 2023, TSSP will continue to support efforts in cybersecurity with the additional 

transferred operations and maintenance costs for initiatives developed under the Cybersecurity 

Enhancement Account (CEA). These cybersecurity initiatives will be deployed and 

implemented as a shared service to support enterprise-wide services and capabilities to 

strengthen the cybersecurity posture across the components of the Department of Treasury. 

Additionally, TSSP and CTAS programs will also support efforts related to the Secretary’s 

priorities associated with IT Modernization and Advancing Equity in Treasury Programs. 

In FY 2023, ARC Admin will complete foundational initiatives from the business transformation 

effort (“oneARC”) and begin realizing operational efficiencies. The effort will simplify customer 

financial management (FM) services, increase customer FM maturity and public trust, and 

maximize ARC value. 
TFF – 4 

1.1 – Resource Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budgetary Resources Actual Revised Estimate Estimate % Change 

Revenues/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury Shared Services Program1 356,934 314,318 326,772 3.96% 

Centralized Treasury Administrative 

Services 131,449 146,043 160,151 9.66% 

Administrative Services1 208,491 191,029 205,796 7.73% 

Information Technology Services 196,417 214,837 220,606 2.69% 

Recovery from Prior Years 13,272 13,000 13,000 0.00% 

Unobligated Balances from Prior Years 168,160 123,946 137,008 10.54% 

Total Revenues/Offsetting Collections $1,074,723 $1,003,173 $1,063,333 6.00% 

Expenses/Obligations 

Treasury Shared Services Program 191 359,467 269 314,318 279 326,772 3.72% 3.96% 

Centralized Treasury Administrative 

Services2 156 129,780 170 137,351 170 160,151 0.00% 16.60% 

Administrative Services 1,183 224,019 1,258 214,159 1,245 211,081 -1.03% -1.44% 

Information Technology Services 506 231,156 515 215,337 515 221,106 0.00% 2.68% 

Totals Expenses/Obligations 2,036 944,422 2,212 881,165 2,209 919,111 -0.14% 4.31% 

Net Results 2,036 $130,301 2,212 $122,008 2,209 $144,222 -0.14% 18.21% 

The Financial Management Administrative Support Service and Shared Services Programs, as denoted in the President’s budget is also referred 

o as the Administrative Services and Treasury Shared Services Program, respectively. 

In FY 2022, Centralized Treasury Administrative Services reflects an additional reduction to FTE levels from the amounts presented in the 

resident’s budget. This is due to the extended continuing resolution (CR). 
TFF – 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2022 Original Estimate 

 

2,219 $893,144 

Adjustments to FY 2022 Original Estimate (7) (11,979) 

Deferred IT System Modernization and Investments (CTAS)1

 (27) (8,497) 

Increased Personnel Resources/IT Modernization (ARC Admin/IT) 20 (3,482) 

FY 2022 Revised Estimate 

 

2,212 $881,165 

Changes to Base: 

Maintaining Current Levels (MCLs): 23,695 

Pay Annualization (2.7% average pay raise) 1,832 

Pay-Raise (4.6% average pay raise) 9,429 

Non-Pay 12,434 

Subtotal Changes to Base 23,695 

FY 2023 Current Services 2,212 $904,860 

Program Changes: 

Program Increases: 10 24,254 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (TSSP) 4 1,120 

IT Systems Modernization and Program Support (TSSP) 3 3,386 

Advancing Equity in Treasury Programs (TSSP) 3 515 

IT System Modernization (CTAS) 0 13,835 

Cyber Infrastructure (CTAS) 0 3,398 

Facilities Infrastructure (CTAS) 0 2,000 

Program Decreases: (13) (10,003) 

Business Transformation Efforts (ARC Admin) (13) (10,003) 

Subtotal Program Changes 

 

(3) $14,251 

FY 2023 Estimate 

 

2,209 $919,111 1

In FY 2022, Centralized Treasury Administrative Services reflects an additional reduction to FTE levels from the amounts 

presented in the President’s budget. This is due to the extended continuing resolution (CR). 

C – Budget Increases and Decreases Description 

Adjustments to FY 2022 Original Estimate ................................... -$11,979,000/ -7 FTE 

Deferred IT System Modernization and Investments (CTAS) -$8,497,000/ -27 FTE 

The revised CTAS FY 2022 estimate includes adjustments to decrease labor and non-labor 

estimates from the FY 2022 original estimate. Due to the extended continuing resolution (CR) in 

FY 2022, the customers within Departmental Offices (DO) are unable to fund key initiatives 

proposed in the FY 2022 Budget, including server replacements and modernization to end user 

hardware and software. Those investments in the Departmental Offices are re-proposed in the FY 

2023 CTAS estimates. 

Increased Personnel Resources/IT Modernization (ARC Admin/IT) -$3,482,000 / +20 FTE 

ARC Admin - Increased Personnel Resources +2,851,000 / +22 FTE 

Revised FY 2022 estimates includes adjustments for additional resources to meet critical 

workforce demands for classification and staffing services provided to customers. As the hiring 

volumes of customers has recovered from the FY 2017 Federal hiring freeze, this resource level 

will provide the necessary support to alleviate delays for the delivery of critical hiring needs 

within targeted service levels. 

ARC IT - IT Modernization -$6,333,000 / -2 FTE 

In FY 2022, efficiency gains are realized as ARC IT modernizes and moves to cloud and lowcode solutions for applications and services. Additionally, the reduction of custom platforms has 
TFF – 6 

also allowed for rightsizing of licensing and maintenance contracts resulting in cost avoidance 

for the fiscal year. 

Maintaining Current Levels (MCLs)......................................... +$23,695,000 / +0 FTE 

Pay Annualization (2.7%) +$1,832,000 / +0 FTE: 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% in 2023) +$9,429,000 / +0 FTE: 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$12,434,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Program Increases.............................................................. +$24,254,423 / +10 FTE 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$1,120,000 / +4 FTE 

The TSSP supports the transition of additional O&M costs from CEA for cybersecurity 

enhancements and capabilities that will be deployed enterprise wide. Since FY 2020, the total 

O&M costs transitioned into TSSP is $16.75 million, including this increase. The following 

initiatives will transition in this fiscal year: 

 CEA High Value Assets Staffing Transition (+$890,000 / +4 FTE) 

 PhishMe Licenses and PhishMe Triage (+$230,000 / +0 FTE) 

Systems Modernization and Program Support (TSSP) +3,386,056 / +3 FTE 

Treasury will increase spending for program support and IT system modernization for 

enhancements across TSSP programs to include: 

 O&M and sustainment costs for applications across the Enterprise Business Solution 

Programs (+$1,368,196) 

 IT systems program and contractor support (+$825,260 / +3 FTE) 

 Cloud adoption and transition for financial reporting applications (+$692,600 / +0 FTE) 

 Enterprise cost for the new Line-of-Business for the Federal Executive Boards program 

support the advancement of the Administration’s objectives and strengthen the Federal 

workforce (+$500,000 / +0 FTE) 

 Management support for enterprise-wide data collections efforts (+$350,000 / +0 FTE) 

Advancing Equity in Treasury Programs (TSSP) +$514,705 / +3 FTE 

To further the priorities and objectives set forth by the Treasury Secretary, the TSSP will support 

efforts across the shared services programs to advancing equity for Federal employees. These 

efforts include the development of new diversity and inclusion curriculum within Treasury’s 

Executive Institute. Resources will also support expanded program support for the Offices of 

Civil Rights and Diversity and Equal Employment Opportunity (EEO). 

IT Systems Modernization (CTAS) +$13,835,662 / +0 FTE 

Departmental Offices (DO) IT Modernization investment will support increased spending for 

critical lifecycle equipment upgrades and enhancements to modernize the DO IT infrastructure 
TFF – 7 

and IT server replacements. 

DO IT Infrastructure Modernization 

1. End User Equipment Lifecycle – Asset refresh of end-of-life end equipment (i.e., laptops, 

desktops, zero clients, etc.) and migrate to cloud services 

2. Telework Workforce Enhancements – Hardware and software to support efficiency and 

mission achievement in telework paradigm 

3. Video Teleconferencing – Increased software licenses, support, and services for DO web 

conferencing 

4. Managed Remote Access - Transition from government owned and operated to managed 

service remote access for DO user community 

5. Managed Desktop/Virtual Desktop Infrastructure (VDI) - Transition from government owned 

and operated virtual desktop infrastructure to managed service 

DO IT Server Replacement 

In FY 2023, Treasury will replace IT servers that have reached end of life. These servers support 

the majority of IT operations and the daily workload within DO. By FY 2023, over 120 of these 

critical servers will no longer receive vendor support or updates, which put critical IT 

components at risk of failure or breach. Cloud migration assessments for have been conducted 

for these servers and results have helped to identify opportunities to transition to cloud services 

for most servers. Re-capitalization of servers represents most of the costs incurred. 

Cyber Infrastructure (CTAS) +$3,398,000 / +0 FTE 

DO must invest in cyber protections commensurate with the risks incurred in Treasury’s efforts 

to safeguard the financial sector, U.S. economy and in combating cybercrimes. DO investments 

will enhance Treasury’s ability to protect the cyber infrastructure and respond to major cyber 

incidents. Investments will also include Microsoft FedRAMP High Government Community 

Compliance (GCC) licenses, which have been a key component of Treasury’s response to 

SolarWinds. This includes enhanced security controls, monitoring, and threat protection, as well 

as improved data and identity management. These new capabilities are crucial to protect the 

3,000 users within DO from potential ransomware. 

Facilities Infrastructure (CTAS) +$2,000,000 / +0 FTE 

This request also provides funding for a repairs and improvements account within DO. Historic 

office buildings like Treasury’s are expected to have costs near $3 per square foot per annum. 

Based on that benchmark the costs for maintaining buildings of the size of Main Treasury (MT) 

and Freedman’s Bank Building (FBB) Treasury Facilities would be approximately $2M in 

funding annually. Treasury’s current funding level is approximately $450K. 

Program Decreases...............................................................-$10,003,000 / -13 FTE 

Business Transformation Efforts (ARC Admin) -$10,003,000 / -13FTE 

In FY 2023, ARC anticipates realized results from the business transformation related to the 

oneARC initiative in FY 2022. This initiative focused on foundational enhancements to business 

operations. The decrease reflects a $7,555 reduction in initiative spending and estimates 

efficiency gains related to oneARC, to include $2,448 and 13 FTE. 
TFF – 8 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Revised Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 186,777 188,818 193,030 

11.3 - Other than full-time permanent 836 1,025 1,019 

11.5 - Other personnel compensation 7,974 3,181 2,666 

11.6 - Overtime 0 3,190 3,255 

11.8 - Special personal services payments 13 14 15 

11.9 - Personnel Compensation (Total) 195,600 196,229 199,984 

12.0 - Personnel benefits 72,428 72,498 77,410 

13.0 - Benefits for former personnel 35 31 29 

Total Personnel and Compensation Benefits $268,063 $268,758 $277,424 

21.0 - Travel and transportation of persons 374 301 556 

22.0 - Transportation of things 15 0 0 

23.1 - Rental payments to GSA 36,269 33,000 34,250 

23.3 - Communication, utilities, and misc charges 82,035 87,965 91,756 

24.0 - Printing and reproduction 204 144 215 

25.1 - Advisory and assistance services 223,924 129,182 140,657 

25.2 - Other services 39,736 31,965 39,611 

25.3 - Other purchases of goods & serv frm Govt accounts 153,865 147,300 159,867 

25.4 - Operation and maintenance of facilities 1,190 1,965 4,750 

25.7 - Operation and maintenance of equip 87,174 127,435 114,086 

26.0 - Supplies and materials 3,059 3,149 2,836 

31.0 - Equipment 43,656 50,000 52,040 

32.0 - Land and structures 4,428 1 1,059 

42.0 - Insurance claims and indemnities 5 0 6 

44.0 - Refunds 425 0 0 

Total Non-Personnel $676,358 $612,407 $641,687 

Total Obligations $944,422 $881,165 $919,111 

 

FTE1 2,036 2,212 2,209 

1

In FY 2022, Centralized Treasury Administrative Services reflects an additional reduction to FTE levels from the amounts presented in the 

President’s budget. This is due to the extended continuing resolution (CR). 

D – Appropriations Language and Explanation of Changes 

The TFF has no appropriated resources. 

E – Legislative Proposals 

The TFF has no legislative proposals. 
TFF – 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Alignment with the Treasury Strategic Plan 

The Treasury Franchise Fund aligns to the following Treasury strategic goals and objectives as 

presented in the FY 2022 - 2026 strategic plan: 

Goal 5: Modernize Treasury Operations 

 Objective 5.1 – Recruit and Retain a Diverse and Inclusive Workforce - Recruit and retain a 

diverse workforce that represents communities that Treasury serves. 

 Objective 5.2 - Future Work Routines - Transform the Department’s work routines to support 

changing mission and workforce needs. 

 Objective 5.2 – Better Use of Data - Increase timely access to and use of quality data and 

other types of evidence to inform decision-making. 

 Objective 5.4 – Customer Experience Practices – Mature and embed strong customer 

experience practices across the Department, establishing Treasury’s reputation for 

consistently positive experiences. 

TFF continues to set the benchmark for federal mission support services and is committed to: 

 Customer satisfaction 

 Streamlining processes 

 Implementing innovative and customer centric solutions

The TFF is well positioned in FY 2023 as a key federal resource. The TFF service providers to 

enhance federal mission for all customer Bureaus and Offices by providing services that align 

and comply with priority areas including cybersecurity and IT modernization of the 

infrastructure and networks. The TFF emphasizes this through a standardized “build once, use 

many” service model with a focus on providing economies of scale enabling agencies to 

concentrate on mission critical activities. 
TFF – 10 

B – Budget and Performance by Budget Activity 

2.1.1 – Treasury Shared Services Program Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Resource Level Actual Actual Actual Actual Actual 

Revised 

Estimate Estimate 

Expenses/Obligations $235,811 $241,845 $235,515 $284,298 $359,467 $314,318 $326,772 

Budget Activity Total $235,811 $241,845 $235,515 $284,298 $359,247 $314,318 $326,772 

FTE 235 234 225 252 191 269 279 

*The FY 2017 - FY 2021 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Average Cost per FTE N/A N/A $1,463.5 $1,719.4 $1,805.7 $1,580.3 $1,710.5 $1,710.5 

Annual Effective Spend 

Rate N/A N/A 97% 98% 98% 96% 96% 96% 

Customer Satisfaction N/A N/A 75% 90% 93% 80% 80% 80% 

Treasury Shared Services Programs Budget and Performance 

($326,772,000 from offsetting collections): 

Treasury Shared Services Programs (TSSP) provides administrative and information technology 

services on a competitive basis and delivers outstanding customer service. TSSP supports the 

goals and objectives for the current Treasury Strategic Plan by allowing customers to maximize 

their operations support resources and the benefit from centralized approaches to program 

support and administration. 

Description of Performance 

TSSP measures focus on customer satisfaction and the value proposition of the services 

provided. The Current TSSP performance measures are: 

 Average Cost per FTE 

 Annual Effective Spend Rate 

 Customer Satisfaction 

To provide greater transparency into the value proposition of shared services, the average cost 

per FTE and annual effective spend rate measures have been identified as measures to 

demonstrate the value. As agencies budgets shrink, it becomes increasingly important to 

demonstrate clear insight into the current cost of shared services and to help customers assess the 

cost efficiency benefits of the shared approach. 

The annual effective spend rate provides insight to the financial management and oversight of 

the TSSP programs. It measures how much of the resources collected from customers are being 

obligated for service delivery in the fiscal year. This measure captures the efficient use of 

resources by the service providers. In FY 2021, 98 percent of the funds collected from customers 

for the shared services was obligated which was above the 96 percent target rate set for the fiscal 

year. The target will remain at 96 percent for FY 2022 and FY 2023. 
TFF – 11 

In FY 2021, the survey results yielded a 93 percent overall customer satisfaction rating which is 

up from 80 percent in the prior year for services provided through the TSSP. Strategic 

partnerships with TSSP governance councils, meeting monthly with Treasury budget directors 

and the use of the TSSP Roadshows provides expanded customer engagement opportunities to 

the various stakeholders to better communicate the expected changes to program budgets and the 

impact to their upcoming service level agreements. This level of transparency has contributed to 

the higher rating. The target for this measure is set at 80 percent for both FY 2022 and 2023. 

2.1.2 – Centralized Treasury Administrative Services Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Resource Level Actual Actual Actual Actual Actual 

Revised 

Estimate Estimate 

Expenses/Obligations NA NA $136,565 $122,034 $129,135 $137,351 $160,151 

Budget Activity Total NA NA $136,565 $122,034 $129,135 $137,351 $160,151 

FTE NA NA 196 161 156 170 170 

*The FY 2017 - FY 2021 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Annual Effective Spend 

Rate N/A N/A 98% 94% 98% 96% 96% 96% 

Customer Satisfaction N/A N/A 75% 75% 83% 80% 80% 80% 

Centralized Treasury Administrative Services Budget and Performance 

($160,151,000 from offsetting collections): 

The Centralized Treasury Administrative Services (CTAS) program provides administrative 

support to offices within Treasury’s Departmental Offices. This support includes administrative 

functions such as financial management, travel, human resources, information technology, and 

facilities management. 

Description of Performance 

FY 2019 was the first year of inclusion CTAS program into the TFF. CTAS has identified the 

following performance measures: 

 Annual Effective Spend Rate 

 Customer Satisfaction 

In FY 2021, the annual effective spend and customer satisfaction rates were 98 and 83 percent 

respectively. Each measure result was above the set targets. The targets set for the annual 

effective spend rate and customer satisfaction measures are mirrored after the TSSP target to 

maintain consistency in overall financial management of the two shared services providers 

within Departmental Offices. The targets set in both FY 2022 and 2023 is 96 and 80 percent, for 

the annual effective spend rate and customer satisfaction measures respectively. 
TFF – 12 

2.1.3 – Administrative Services Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Resource Level Actual Actual Actual Actual Actual 

Revised 

Estimate Estimate 

Expenses/Obligations $157,284 $150,876 $170,184 $220,180 $224,019 $214,159 $211,081 

Budget Activity Total $157,284 $150,876 $170,184 $220,180 $224,019 $214,159 $211,081 

FTE 988 957 988 1,152 1,183 1,258 1,245 

*The FY 2017 - FY 2021 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Customer Unmodified 

Audit Opinions N/A 1 100% 100% 100% 100% 100% 100% 

Percentage of shared 

services service level 

agreement performance 

metrics met or exceeded 

N/A N/A 89% 87% 90% 94% 94% 94% 

Customer Satisfaction 

with ARC Admin 

Services 

N/A N/A 93% 90% 90% 80% 80% 80% 

Administrative Services Budget and Performance 

($211,081,000 from offsetting collections): 

ARC provides administrative services in the areas of financial management, human resources, 

procurement, and travel to Federal customers to support core business activities. ARC’s services 

allow agencies to focus on their missions and avoid redundancies within administrative 

operations, creating cost avoidance across government, including more than $129,600,000 in 

FY 2021. Using shared services reduces the need for Treasury and other federal agencies to 

maintain duplicative financial management systems, thereby promoting efficiency and cost 

savings while enhancing the quality, timeliness, and accuracy of financial management 

processes. ARC continues to focus on financial innovation, transformation, and improving the 

customer experience. 

Description of Performance: 

In FY 2021, ARC continued to receive strong customer satisfaction scores, with 90.4 percent of 

customers being satisfied with ARC Administrative Services. ARC service lines of Financial 

Management, Human Resources, and Procurement all improved with their customer satisfaction 

percentages from 2020 to 2021. Despite recent achievement of over 90 percent, ARC maintains 

an 80 percent target and continues to focus on a balance of cost and quality, a strategy that has 

made them a preferred federal provider for over 20 years. 

In FY 2021, ARC received an unmodified opinion on franchise operations for the 18th 

consecutive year and met its performance target of 100 percent of customer unmodified audit 

opinions (33). By meeting this metric consistently year after year, ARC has been able to help 

gain public confidence in federal stewardship, operations, and accuracy of information. 

In addition, ARC continued to implement innovative solutions that continuously improved 

mission support services, including implementing (to date) 82 robotic process automation bots in 

production, resulting in cost avoidance of over $2 million and 13 FTE. In FY 2021, ARC was 

recognized by the Federal Robotics Process Automation (RPA) Community as a GSA showcase 

RPA winner and considered a top 5 RPA program within the federal government. Finally, ARC’s 
TFF – 13 

standard processes and controls enabled delivery of responsive services to Treasury and other 

agencies to support pandemic response programs under the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act and the American Rescue Plan (ARP), some within days of 

authorization. ARC provided support for seven of Treasury’s eight ARP programs, conducting 

application integrity reviews and contacting applicants to finalize more than 10,000 grant 

applications, providing contact center services, and disbursing nearly $300 billion to program 

recipients. 

In FY 2022 and FY 2023, ARC is committed to Financial Management Quality Service 

Management Office (FM QSMO) readiness, continued improvements to customer experience, 

increasing the number of streamlined processes, meeting, or exceeding service level agreement 

metrics, using technology and automation to reduce manual work and provide increased 

economies of scale, and continually improving efficiency and effectiveness of its services. 

2.1.4 – Information Technology Resources and Measures 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

Resource Level Actual Actual Actual Actuals Actuals 

Revised 

Estimate Estimate 

Expenses/Obligations $195,441 $197,009 $179,631 $222,547 $231,156 $215,337 $221,106 

Budget Activity Total $195,441 $197,009 $179,631 $222,547 $231,156 $215,337 $221,106 

FTE 493 465 465 504 506 515 515 

*The FY 2017 - FY 2021 columns represent realized resources for full-time equivalents, reimbursables, and user fees. 

 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Performance Measure Actual Actual Actual Actual Actual Target Target Target 

Percentage of IT 

Portfolio (TFF) Software 

and Hardware Currency 

N/A N/A N/A N/A B B 75% 85% 

Percentage of OnPremise Target Service 

Level Agreements Met 

N/A N/A N/A N/A B B 80% 80% 

Information Technology Services Budget and Performance 

($221,106,000 from offsetting collections): 

ARC IT provides shared services to a multitude of federal customers, delivering value through 

consolidated IT infrastructures and standardized IT service delivery in a modern, technically 

innovative, and secure environment. In FY 2023 ARC IT will continue to modernize 

infrastructure and technology service delivery for our customers (to include cloud adoption), 

implementing enterprise-scale foundational technology services, and continuing to operationalize 

IT portfolio management and cybersecurity enhancements and best practices. FY 2023 objectives 

include supporting the maturity of zero trust architecture, increasing the ability to accommodate 

changes in volume and demand, improving customer experience, adding new business 

capabilities, and promoting faster time to market for IT customers. 

 Accelerate Cloud Adoption: Modernizing technology service delivery and conducting cloud 

migration activities continue to be priorities in FY 2023. ARC IT will capitalize on the 

investments made in prior fiscal years, including the network architecture and Trusted 

Internet Connection (TIC) modernization effort, the adoption and implementation of multiple 
TFF – 14 

cloud hosting environments, and the expansion of an enterprise, scalable Application 

Programming Interface (API) solution and offerings. As customer applications are migrated 

to various cloud hosting environments, ARC IT will ensure that additional scrutiny is 

employed to ensure adherence to Executive Order 14208 and compliance with Zero Trust 

Architecture requirements. Additionally, modern infrastructure and cloud adoption can meet 

high availability and disaster recovery requirements more economically while providing the 

foundation to develop more easily managed microservice applications – to enable faster time 

to market, proactive security, and smooth innovation. Implementing a modern architecture – 

one that enables consistency, transparency, performance, security, and cloud-readiness across 

multiple environments – is necessary to support ongoing and new mission critical efforts 

while simultaneously reducing the accumulation of technical debt. 

 Implement Enterprise-scale Foundational Technology Services: Implementing enterprisescale foundational technology services will consistently and iteratively secure and 

operationalize environments across multiple hosting platforms. ARC IT will continue to 

build on initiatives that utilize services and capabilities that are standardized, portable, 

reusable, scalable, and resilient through the implementation of agile practices and the 

increase of automation. Examples of services to be incorporated include incident response, 

logging/event aggregation, identity and access management, network access, and the public 

key infrastructure. ARC IT will also continue to evolve and mature our development 

security, and operations processes, pipeline and automated deployments, maturing the 

capability to deploy applications, infrastructure changes, patches, and databases with tools 

and scripts, thereby allowing simple, common tasks to be cloned and shared across multiple 

applications with little to no additional development or human interaction. This strategy 

includes use of the cloud and other secure hosted solutions. 

 Modernize IT Infrastructure and Transform Mainframe Services: In concert with the 

acceleration of cloud adoption, ARC IT is modernizing its IT infrastructure from aging, 

costly platforms – specifically the on-premises mainframe – to a cloud‐based architecture. 

Several of the Department’s High Value Assets (HVAs) that support the National Financial 

Critical Infrastructure (NFCI) are currently hosted on this aging platform and are based on 

antiquated code. The Mainframe Services Transformation initiative will decommission the 

mainframe platform by leveraging enterprise solutions (e.g., Enterprise API Solution) and 

modernized, foundational technology services. This initiative also supports compliance with 

Executive Order 14208 and the remediation of audit deficiencies. Decommissioning the 

Mainframe environment will also mitigate substantial contractual costs that are anticipated to 

continue increasing over time, thereby increasing costs to provide these services to our 

customers. 

 Operationalizing Cybersecurity: Operationalizing optimized cybersecurity – with coordinated 

and embedded security across a distributed and shared infrastructure – ensures the resiliency 

to identify, protect, detect, respond, and recover should our systems become compromised. 

This includes protecting our critical information and systems, supporting compliance with 

Executive Order 14208, and adhering to the established cybersecurity strategic direction. 

 
TFF – 15 

Description of Performance: 

In FY 2021, ARC IT established a baseline for software and hardware currency with the goal of 

reducing the use of End of Life (EOL) technology, which in turn further minimizes technical 

debt and risk for our customers. A key priority related to software/hardware currency is the 

Mainframe Services Transformation program, which seeks to decommission ARC IT’s physical 

mainframe footprint, including hardware and software, and modernize business applications and 

services.

At the same time, ARC IT also established a baseline for on-premises target service level 

agreements (SLA) met. The SLA performance measure is an operational indicator to reflect how 

well technical teams are performing and closing out the requests and incidents. The target 

reflects the operational commitment to our customer and allows room for improvement. There 

are occasions when agreements are breached through no fault of the service provider (ARC-IT). 

For example, a customer might open a ticket (which starts the clock for open items) and then go 

on vacation. Another example of a delayed ticket closing is waiting for a vendor to provide 

software licensing. These types of delays are beyond the control of the service provider and are 

factored into the Service Level Objectives.

C – Changes in Performance Measures 

This year, TFF is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

 

There are no changes to the TFF performance measures. 

Section III – Additional Information 

A – Summary of Capital Investments 

The TFF’s planned investments enhance the capabilities and capacity of our IT and financial 

management shared services. Investing in service-oriented architecture will allow customers to 

streamline application connections resulting in benefits that include reducing development time, 

using industry development best practices for coding efforts, allowing real time processing of 

transactional data between systems, and independent communication between systems. This 

effort will also reduce redundancy, providing more flexible and efficient interfaces with 

customers' third-party applications. 

The Administrative Resource Center capital investments are contained within the Fiscal Service 

capital investment summary. The Treasury Shared Service Programs capital investments are 

contained within the Departmental Offices capital investment summary. A summary of capital 

investment resources, including major information technology and non- technology investments 

can be found at: Summary of Capital Investments | U.S. Department of the Treasury
TFF – 16 

B – Treasury Franchise Fund Program Costs 

This information is provided to fulfill requirements of Section 121 of the FY 2021 Financial 

Services and General Government appropriations bill. 

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2021 Total Charges by Customer

FY 2021 TSSP Customers

Enterprise 

Business 

Solutions

Infrastructure 

Operations

Cyber 

Security

IT Strategy 

and 

Technology 

Management

NonInformation 

Technology 

Services Grand Total

Administrative Resource Center 1,924,568 5,725,651 30,945 85,117 570,428 8,336,710 

Agency for Healthcare Research and Quality 1,626 1,626 

Alcohol and Tobacco Tax and Trade Bureau 880,428 493,161 11,192 30,783 443,473 1,859,036 

Build America Bureau 16,293 16,293 

Bureau of Alcohol, Tobacco, Firearms and 

Explosives 914,173 62,360 976,533 

Bureau of Engraving and Printing 5,760,014 2,554,654 123,262 109,719 1,053,540 9,601,188 

Bureau of Labor Statistics 13,682 13,682 

Bureau of the Fiscal Service 1,802,836 880,290 136,372 128,139 1,584,549 4,532,186 

CARES Act 16,789,325 34,125 427 1,174 574,072 17,399,123 

Centers for Medicare and Medicaid Services 130,408 130,408 

Centralized Treasury Administrative Services 865,996 1,850,748 3,528 9,705 240,399 2,970,376 

Community Development Financial Institutions 247,700 300,269 1,685 4,636 469,065 1,023,355 

Consumer Financial Protection Bureau 4,200 447,171 88,480 539,852 

Department of Commerce 11,581,072 404,765 11,985,837 

Department of Education 539,745 539,745 

Department of Energy 3,199 3,199 

Department of Health and Human Services 

Headquarters 11,537 11,537 

Department of Homeland Security Headquarters 79,443 79,443 

Department of Housing and Urban Development 1,671,944 196,208 1,868,152 

Department of Labor 3,107,344 126,310 3,233,654 

Department of Labor Office of the Inspector 

General 5,838 5,838 

Drug Enforcement Administration 36,311 36,311 

Environmental Protection Agency 159,088 159,088 

Exchange Stabilization Fund 693,214 56,197 292 804 1,881,737 2,632,243 

Executive Office for Immigration Review 10,995 10,995 

Export Import Bank 12,644 12,644 

Export Import Bank Office of the Inspector General 1,119 1,119 

Federal Communications Commission 47,648 2,041 49,690 

Federal Emergency Management Agency 46,684 46,684 

Federal Financing Bank 788,761 25,871 337 927 85,968 901,864 

Federal Housing Finance Agency 28,683 28,683 

Federal Transit Administration 10,535 10,535 

Financial Crimes Enforcement Network 2,357,462 180,865 204,923 16,813 363,799 3,123,862 

Financial Stability Oversight Council 459,232 262,555 247 680 120,000 842,714 

General Services Administration 70,152 70,152 

Government Accountability Office 662,647 25,278 687,925 

Internal Revenue Service 49,395,549 131,185,582 2,340,093 5,060,662 17,415,997 205,397,882 

International Trade Administration 17,967 17,967 

Marshals Service 24,974 24,974 

Millennium Challenge Corporation 50,013 50,013 

Mint 944,077 3,183,944 260,038 97,851 1,247,544 5,733,454 

National Archives and Records Administration 21,299 21,299 

National Oceanic and Atmospheric Administration 53,477 53,477 

National Transportation Safety Board 12,098 12,098 

Office of D.C. Pensions 32,666 136,936 449 1,236 73,138 244,426 

Office of Financial Research 262,412 4,750,654 2,315 6,367 417,962 5,439,709 

Office of Financial Stability 685,052 319,379 315 865 689,601 1,695,212 

Office of Government Ethics 2,639 2,639 

Office of Management and Budget 45,619 45,619 
TFF – 17 

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2021 Total Charges by Customer 

(continued) 

Treasury Franchise Fund – Centralized Treasury Administrative Services Programs, FY 2021 Total Charges 

by Customer 

FY 2021 TSSP Customers

Enterprise 

Business 

Solutions

Infrastructure 

Operations

Cyber 

Security

IT Strategy 

and 

Technology 

Management

NonInformation 

Technology 

Services Grand Total

Office of Technical Assistance 20,961 113,287 292 804 161,635 296,979 

Office of the Comptroller of the Currency 1,881,244 3,422,464 167,834 214,678 1,177,907 6,864,126 

Peace Corps 155,005 5,697 160,702 

Small Business Administration 33,092 33,092 

Small Business Lending Fund Administration 989 10,544 45 124 106,634 118,335 

Small State Business Credit Initiative 692,826 692,826

Special Inspector General for Pandemic Recovery 125,477 637,635 1,483 4,080 104,933 873,607 

Special Inspector General for the Troubled Asset 

Relief Program 686,593 428,335 1,685 4,636 153,283 1,274,532 

Terrorism and Financial Intelligence 2,501,097 7,182,228 499,250 32,576 761,708 10,976,858 

Terrorism Insurance Program 15,764 2,107 22 62 37,740 55,695 

Treasury Departmental Offices 17,226,278 6,987,904 278,135 41,786 4,458,990 28,993,093 

Treasury Inspector General for 

Tax Administration 474,616 2,998,903 79,714 45,186 443,165 4,041,583 

Treasury Office of Executive Asset Forfeiture 3,564,302 248,064 517 1,422 168,005 3,982,310 

Treasury Office of Inspector General 132,605 568,425 3,416 9,396 155,193 869,033 

U.S. Agency for International Development 1,066,749 52,079 1,118,828 

U.S. Air Force 118,640 118,640 

U.S. Citizenship and Immigration Services 37,254 37,254 

U.S. Defense Security Cooperation Agency 65,734 65,734 

U.S. Immigration and Customs Enforcement 51,896 51,896 

United States Secret Service 1,103,825 84,401 1,188,227 

Grand Total $126,853,300 $179,661,298 $4,148,814 $5,910,225 $37,720,763 $354,294,401

FY 2021 CTAS Customers

Information 

Technology 

Services

Treasury 

Facilities and 

Operations 

Serivces

Financial 

Management 

Services

Budget and 

Travel 

Services

Human 

Resource 

Services

Privacy, 

Transparency 

and Records 

Services 

Other 

Administrative 

 Services Grand Total

Administrative Resource Center 1,114,894 1,114,894

CARES Act 36,343 203,831 355,223 110,352 240,736 946,485 

Community Development Financial Institutions 33,623 1,584,127 602,954 76,623 194,098 140,373 103,219 2,735,017 

Consumer Financial Protection Bureau 597,262 645,271 48,009 

Exchange Stabilization Fund 356,080 43,075 69,161 46,583 71,440 586,339 

Federal Financing Bank 2,459,457 892,427 55,257 77,639 56,149 171,632 3,712,561 

Financial Crimes Enforcement Network 2,908,149 2,969,960 61,812 

Financial Crimes Enforcement Network Economy 

Act 50,129 50,129 

Financial Stability Oversight Council 210,119 268,279 109,686 41,408 29,946 39,007 698,445 

Office of D.C. Pensions 476,737 652,131 125,191 54,347 39,305 72,614 1,420,324 

Office of Financial Research 4,591,352 25,000 1,499,743 263,973 190,908 285,653 6,856,628 

Office of Financial Stability 1,033,222 477,792 242,603 237,890 43,995 31,818 100,219 2,167,539 

Office of Technical Assistance 154,344 703,667 2,077,389 31,056 22,460 171,632 3,160,548 

Shared Services Programs 6,531,342 6,255,236 5,601,805 662,520 479,141 895,367 20,425,411 

Small Business Lending Fund Administration 258,602 34,321 178,312 66,771 5,176 3,743 19,804 566,728 

Small State Business Credit Initiative 223,421 7,400 230,821 

Special Inspector General for Pandemic Recovery 89,279 770,435 2,588 1,872 864,174 

Special Inspector General for the Troubled Asset 

Relief Program 2,145,262 1,035,107 1,800 142,827 3,324,996 

Terrorism and Financial Intelligence 6,641,457 6,388,626 119,508 6,032,292 1,286,221 930,208 1,311,245 22,709,557 

Terrorism Insurance Program 63,063 56,969 53,596 12,940 9,358 8,402 204,328 

Treasury Departmental Offices 9,590,398 12,540,966 1,099,575 8,880,999 1,752,056 1,267,104 1,938,962 37,070,061 

Treasury Office of Executive Asset Forfeiture 944,153 11,450,786 1,291,740 69,875 50,534 621,116 14,428,205 

Treasury Office of Inspector General 22,746 24,546 1,800 

Grand Total 31,339,480 $ 52,435,321 $ 2,242,952 $ 26,631,843 $ 4,654,827 $ 3,615,226 $ 5,993,320 $ 126,912,968 $ 
TFF – 18 

Treasury Franchise Fund – Administrative Resource Center, FY 2021 Total Charges by Customer 

FY 2021 ARC Customers

Financial 

Management 

Services FMLoB FEES

Human 

Resource 

Services

Procurment 

Services

Travel 

Services

Information 

Technology 

Services Total

ACCESS BOARD 276,883 150,798 236,341 28,870 692,892 

ADMIN OFFICES OF THE US COURTS 86,263 86,263 

ADMINISTRATION FOR CHILDREN AND 

FAMILIES 182,159 182,159 

AFRICAN DEVELOPMENT FOUNDATION 831,649 455,512 44,877 1,332,038 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT 95,819 95,819 

AGENCY FOR INTERNATIONAL 

DEVELOPMENT - OIG 153,672 153,672 

ALCOHOL AND TOBACCO TAX AND 

TRADE BUREAU 1,252,370 885,475 868,627 210,636 3,217,108 

ARCHITECT OF THE CAPITOL 260,529 260,529 

ARMED FORCES RETIREMENT HOME 1,069,848 1,041,177 1,041,450 15,931 3,168,406 

BUREAU OF ENGRAVING AND PRINTING 3,398,684 123,470 3,522,154 

BUREAU OF THE FISCAL SERVICE 16,345,329 5,305,196 2,306,976 401,216 161,791,926 186,150,643 

CDFI PROGRAM FUND 917,669 203,062 207,588 13,760 1,342,079 

CENTER FOR DISEASE CONTROL 2,409,041 2,409,041

CHEMICAL SAFETY AND HAZARD 

BOARD 311,972 288,652 33,928 634,552 

COMPTROLLER OF THE CURRENCY 114,345 114,345 

CONSUMER FINANCIAL PROTECTION 

BUREAU 1,620,698 2,688,281 1,399,936 1,034,670 6,743,585 

CONSUMER PRODUCT SAFETY 

COMMISSION 1,048,973 424,916 123,305 1,597,194 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE 3,013,348 (452,209) 823,136 1,539,164 4,923,439 

DC PENSIONS PROJECT OFFICE 2,271,320 45,375 35,935 697 1,570,421 3,923,748 

DEFENSE HEALTH AGENCY 72,282 72,282

DEFENSE LOGISTICS AGENCY 739,983 739,983 

DENALI COMMISSION 395,130 81,964 68,951 14,481 560,526 

DEPARTMENT OF AGRICULTURE 167,510 167,510 

DEPARTMENT OF COMMERCE 95,819 95,819 

DEPARTMENT OF DEFENSE 187,342 187,342 

DEPARTMENT OF EDUCATION 230,616 230,616 

DEPARTMENT OF ENERGY 198,269 124,236 322,505 

DEPARTMENT OF HEALTH & HUMAN 

SERVICES 230,616 236,764 467,380 

DEPARTMENT OF HOMELAND 

SECURITY 187,342 1,135,294 1,322,636 

DEPARTMENT OF HOMELAND 

SECURITY - CIS 143,315 143,315

DEPARTMENT OF HOMELAND 

SECURITY - OIG 82,682 804,125 194,515 330,696 1,412,018 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 25,804,514 230,616 12,950,969 2,262,103 2,459,497 43,707,699 

DEPARTMENT OF JUSTICE 218,610 218,610 

DEPARTMENT OF JUSTICE 

JMD/OCIO/EGSS/BOG 124,236 124,236

DEPARTMENT OF LABOR 320,390 141,399 461,789 

DEPARTMENT OF STATE 285,003 95,892 380,895 

DEPARTMENT OF THE INTERIOR 580,349 124,236 704,585 

DEPARTMENT OF TRANSPORTATION 230,616 230,616 

DEPARTMENT OF VETERANS AFFAIRS 158,998 158,998 

DEPARTMENT OF VETERANS AFFAIRS - 

OIG 3,026,167 3,026,167

DEPARTMENT OF VETERANS AFFAIRS - 

TAC 673,892 67,120 741,012 

ELECTION ASSISTANCE COMMISSION 413,669 250,981 65,786 730,436 

ENVIRONMENTAL PROTECTION 

AGENCY 95,819 95,819 

EXECUTIVE OFFICE OF THE PRESIDENT 1,534,763 262,150 306,163 2,103,076 
TFF – 19 

Treasury Franchise Fund – Administrative Resource Center, FY 2021 Total Charges by Customer 

(continued) 

FY 2021 ARC Customers

Financial 

Management 

Services FMLoB FEES

Human 

Resource 

Services

Procurment 

Services

Travel 

Services

Information 

Technology 

Services Total

FARM CREDIT ADMINISTRATION 532,947 72,662 214,672 820,281 

FARM CREDIT SYSTEM INSURANCE 

CORPORATION 229,055 2,402 6,298 237,755 

FEDERAL EMERGENCY MANAGEMENT 

AGENCY 89,380 20,967 110,347 

FEDERAL HOUSING FINANCE AGENCY 1,056,868 231,417 231,563 1,519,848 

FEDERAL HOUSING FINANCE AGENCY - 

OIG 333,040 270,748 111,789 76,485 792,062 

FEDERAL LABOR RELATIONS 

AUTHORITY 486,598 22,712 32,931 542,241 

FEDERAL MARITIME COMMISSION 437,792 84,004 25,473 547,269 

FEDERAL MEDIATION & CONCILIATION 

SERVICE 584,015 45,455 259,578 889,048 

FEDERAL MINE SAFETY AND HEALTH 

REVIEW COMMISSION 358,008 296,095 14,024 32,504 700,631 

FEDERAL TRADE COMMISSION 1,314,579 401,554 251,019 1,967,152 

FINANCIAL CRIMES ENFORCEMENT 

NETWORK 846,802 633,567 881,242 80,871 2,980,222 5,422,704 

FOOD AND DRUG ADMINISTRATION 754,007 754,007 

GENERAL SERVICE ADMINISTRATION 41,332 1,252,015 1,293,347 

GULF COAST ECOSYSTEM 

RESTORATION COUNCIL 112,796 375,244 41,783 36,665 566,488 

INTER AMERICAN FOUNDATION 633,035 416,922 39,526 1,089,483 

INTERNAL REVENUE SERVICE 565 565

MERIT SYSTEMS PROTECTION BOARD 432,439 26,565 42,231 501,235 

NATIONAL AERONAUTICS AND SPACE 

ADMINISTRATION 31,670 124,236 532,995 688,901 

NATIONAL ARCHIVES & RECORDS 

ADMINISTRATION 4,086,711 5,982,340 520,393 205,503 10,794,947 

NATIONAL CAPTIAL PLANNING 

COMMISSION 287,533 7,813 8,151 303,497 

NATIONAL MEDIATION BOARD 293,735 164,870 46,055 504,660 

NATIONAL SCIENCE FOUNDATION 139,094 68,665 207,759 

NUCLEAR REGULATORY COMMISSION 1,471,487 41,332 852,606 2,365,425 

OCCUPATIONAL SAFETY AND HEALTH 

REVIEW COMMISSION 286,984 12,491 28,901 328,376 

OFFICE OF FINANCIAL STABILITY 210,007 48,279 58,953 2,656 319,895 

OFFICE OF GOVERNMENT ETHICS 380,609 254,411 114,510 6,813 756,343 

OFFICE OF PERSONNEL MANAGEMENT 11,413,972 41,332 11,455,304 

OFFICE OF TECHNICAL ASSISTANCE 844,041 30,561 29,517 114,398 1,018,517 

OFFICE OF THE INSPECTOR GENERAL 476,265 382,166 27,082 52,002 937,515 

PRIVACY AND CIVIL LIBERTIES 

OVERSIGHT BOARD 314,833 174,668 2,627 492,128 

RAILROAD RETIREMENT BOARD 14,207 14,207

SECURITIES AND EXCHANGE 

COMMISSION 86,263 86,263 

SMALL BUSINESS ADMINISTRATION 67,475 67,475 

SOCIAL SECURITY ADMINISTRATION 67,475 752,761 820,236 

SPECIAL INSPECTOR GENERAL - 

PANDEMIC RELIEF 464,492 313,312 262,018 53,001 1,092,823 

SPECIAL INSPECTOR GENERAL - TARP 395,581 270,775 147,013 55,131 39,192 907,692 

TREASURY DEPARTMENTAL OFFICES 368,640 1,409,998 786,642 2,565,280 

TREASURY EXECUTIVE OFFICE FOR 

ASSET FORFEITURE 1,760,552 1,760,552 

TREASURY FRANCHISE 

FUND/ADMINISTRATIVE SERVICES 15,000,000 15,000,000

TREASURY FRANCHISE 

FUND/INFORMATION TECHNOLOGY 1,047,510 1,564,884 1,370,404 90,848 4,073,646 

TREASURY FRANCHISE FUND/SHARED 

SERVICES PROGRAM 3,689,883 95,892 4,895,761 1,187,669 654,586 9,633,934 20,157,725 

TREASURY INSPECTOR GENERAL FOR 

TAX ADMINISTRATION 668,238 1,913,573 758,837 365,306 3,705,954 
TFF – 20 

Treasury Franchise Fund – Administrative Resource Center, FY 2021 Total Charges by Customer 

(continued) 

FY 2021 ARC Customers

Financial 

Management 

Services FMLoB FEES

Human 

Resource 

Services

Procurment 

Services

Travel 

Services

Information 

Technology 

Services Total

TRUST FUND - BLACK LUNG DISABILITY 98,128 98,128 

TRUST FUND - FEDERAL DISABILITY 236,517 236,517 

TRUST FUND - FEDERAL HOSPITAL 

INSURANCE 359,329 359,329 

TRUST FUND - FEDERAL OLD AGE & 

SURVIVORS 236,517 236,517 

TRUST FUND - FEDERAL SUPPLEMENT 

INSURANCE 359,329 359,329 

TRUST FUND - OIL SPILL LIABILITY 165,000 165,000 

TRUST FUND - UNEMPLOYMENT 405,001 405,001 

U.S. DEPARTMENT OF COMMERCE 

OFFICE OF INSPECTOR GENERAL 450,419 450,419

UNITED STATES MARSHALS SERVICE 14,753 14,753 

UNITED STATES MINT 9,048,310 4,280,178 2,588,013 266,714 16,183,215 

US COURT OF APPEALS FOR VETERANS 340,601 13,151 17,434 371,186 

US TAX COURT 393,965 58,755 48,501 501,221 

USDA FOOD AND NUTRITION 934,600 934,600

USDA OCIO INTERNATIONAL 

TECHNOLOGY SERVICES 2,410,357 2,410,357 

USDA OFFICE OF INSPECTOR GENERAL 56,912 56,912

Grand Total $108,194,763 $3,139,280 $54,248,984 $22,342,817 $16,159,880 $195,831,879 $399,917,602


Department of the Treasury 

Treasury Executive Office of 

Asset Forfeiture 

Congressional Budget 

Justification and Annual 

Performance Report and 

Plan 

FY 2023 
TEOAF – 2 

Table of Contents 

Section I – Purpose .................................................................................................................................. 3

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

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

1.1 – Resource Detail Table ........................................................................................................... 9

1.2 – Obligations Detail Table ............................................................................................................ 10

1.3 – Object Classifications Obligations (Schedule O) ...................................................................... 10

Section II – Annual Performance Plan and Report ........................................................................... 11

A – Strategic Alignment ..................................................................................................................... 11

B – Budget and Performance by Budget Activity ............................................................................... 11

2.1.1 Treasury Forfeiture Fund Resources and Measures ................................................................... 11

Section III – Additional Information .................................................................................................. 12

A – Summary of Capital Investments ................................................................................................. 12
TEOAF – 3 

Section I – Purpose 

A – Mission Statement 

To affirmatively influence the consistent and strategic use of asset forfeiture by law enforcement 

bureaus that participate in the Treasury Forfeiture Fund (TFF or the Fund) to disrupt and 

dismantle criminal enterprises. 

B – Summary of the Request 

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Fund, which is the 

receipt account for deposit of non-tax forfeitures made pursuant to laws enforced or administered 

by participating Treasury and Department of Homeland Security (DHS) bureaus. Principal 

revenue-producing bureaus include U.S. Customs and Border Protection (CBP), U.S. 

Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. 

Secret Service (USSS), the U.S. Coast Guard (USCG), and Alcohol and Tobacco Tax and Trade 

Bureau (TTB), among others. The Fund is a special fund, defined as a Federal fund account for 

receipts earmarked for specific purposes and the expenditure of those receipts. The law (31 

U.S.C. 9705) allows TEOAF to use the funds for payment of all proper expenses of seizure or 

the proceedings of forfeiture and sale. 

Revenues deposited in the Fund can be allocated and used as the result of a permanent indefinite 

appropriation provided by Congress. A forfeiture process begins once currency or property is 

seized. Seized currency is deposited into a suspense account (holding account) until forfeited. At 

that time, the forfeited amount is transferred-in (deposited) to the Fund as revenue. Forfeited 

properties are usually sold, and the proceeds are also transferred-in into the Fund as revenue. 

This revenue represents budget authority for meeting obligations and expenses of the program. 

Expenses of the Fund are set in a relative priority so that operating costs are met first and may 

not exceed revenues. 

 Mandatory expenses represent operating costs of the Fund, including storing and 

maintaining seized and forfeited assets, valid liens and mortgages, investigative expenses 

incurred in pursuing a seizure, information and inventory systems, remissions, victim 

restoration, and certain costs of local police agencies incurred in joint law enforcement 

operations. Following forfeiture, equitable shares may be paid to state and local law 

enforcement agencies that contributed to the seizure activity at a level proportionate to their 

involvement. 

 Secretary’s Enforcement Fund (SEF) expenses are funded from revenue from equitable 

shares received from Department of Justice (DOJ) or U.S. Postal Service (USPS) forfeitures. 

These shares are proportionate to Treasury’s participation in the overall investigative effort 

that led to a DOJ or USPS forfeiture. SEF revenue is available for Federal law enforcementrelated purposes of any bureau participating in the Fund. 

 Strategic Support allows TEOAF to fund priority Federal law enforcement initiatives with 

remaining unobligated balances at the close of the fiscal year, after an amount is reserved for 

the next fiscal year’s operations. 

FY 2021-2022 Case Highlights: The following case highlights are intended to provide examples 

of the types of investigative cases worked by the Fund’s law enforcement bureaus during 
TEOAF – 4 

FY 2021-2022 that resulted in the seizure and forfeiture of assets. Such cases, as those profiled 

below, are consistent with the strategic mission and vision of the Fund, which seeks to use highimpact asset forfeiture in investigative cases to disrupt and dismantle criminal enterprises. 

 Leader of Complex International Fraud and Money Laundering Ring Sentenced to 14 

Years in Prison and Ordered to Pay Restitution in the Amount of $14.5 million 

The leader of an international fraud and money laundering ring was sentenced in January 

2022 to 14 years in federal prison for conspiracy to commit money laundering. The Court 

ordered the defendant to forfeit various assets and, as part of their sentence, entered a $1.5 

million money judgement. In addition, the Court ordered the defendant to pay restitution to 

victims in the amount of $14.5 million. 

The defendant contracted with international “boiler rooms” to launder fraud proceeds 

obtained from foreign victims, primarily by selling worthless investments. They employed a 

mass-marketing scam to defraud victims who believed that they were investing in regulated 

financial products, particularly shares of stocks. The defendant operated a network of funnel 

accounts in the U.S. in the names of shell companies into which the victims were instructed 

to send their money. Most of the victims were in Australia, New Zealand, the U.K., and 

countries in Asia. The defendant was arrested in Belgrade, Serbia pursuant to an 

INTERPOL Red Notice issued by the U.S. Department of Justice and extradited to Tampa in 

April 2019. The investigation was conducted by Homeland Security Investigations and IRS 

Criminal Investigation. 

 Joint Case Leads to a Shutdown of an Illegal Bitcoin ATM Network Involved in Laundering 

Millions of Dollars in Bitcoin and Cash

Herocoin, an illicit virtual-currency money service business, was advertised online as a Bitcoin 

(BTC) cash exchange service of up to $25,000. The owner and operator of Herocoin, a former 

bank employee familiar with compliance matters, deliberately failed to register his money service 

business with FinCEN. The owner exchanged currency with their customers in-person and 

operated a series of purchased BTC ATM kiosks, located in malls, convenience stores and gas 

stations throughout Los Angeles. The owner did not conduct any due diligence and was aware that 

funds he accepted for exchange came from illicit sources. The owner registered Herocoin in 2018, 

only after being contacted by FinCEN, but still failed to exercise due diligence, file suspicious 

activity and currency transaction reports, or develop an anti-money laundering program. As a part 

of their plea agreement, the owner agreed to forfeit cash, cryptocurrency, and seventeen BTC 

ATMs. On May 28, 2021, he was sentenced to 24 months of imprisonment. The case was 

investigated by Homeland Security Investigations (HSI), IRS Criminal Investigations, and the Los 

Angeles County Sheriff’s Department. 

 Kidnapping Suspects Indicted; Ransom Money Returned to Victim 

Two subjects entered a residence rented by an elderly man and terrorized their victim for several 

hours, extorting him out of his truck, guns, and other possessions. They subsequently kidnapped 

the man and held him at their residence for over eight hours, forcing him to wire $250,000 to one 

of the subject’s bank accounts. After the money was deposited, the kidnappers released the victim 

and threatened to kill his family if he called the police. Despite the threats, he called the police, 

and USSS agents, along with the FBI, were able to track the subjects down using GPS. The USSS 

seized subject’s bank account and in June 2021, returned the $250,000 to the victim, along with his 

other recovered possessions. They were charged with kidnapping, wire fraud, and bank fraud. 
TEOAF – 5 

COVID 19 Related Case Highlights: 

 Homeland Security Investigations (HSI) Operation Stolen Promise Targets 

Counterfeit Vaccines and Treatments for COVID-19 

Since April 2020, ICE’s HSI Cyber Crimes Center (C3), Intellectual Property Rights (IPR) Center 

and HSI Office of Intelligence representatives have been successfully targeting online fraud 

schemes and the sale of illicit COVID 19 vaccines and treatments using illicit websites and dark 

net marketplaces. As of January 26, 2022, HSI Special Agents have initiated 1,426 criminal 

investigations, made 421 arrests, secured 192 indictments, and 58 convictions in addition to 

executing 449 search warrants and seizing nearly $59 million related to COVID-19 fraud. Case 

highlights include: 

 In January 2022, HSI Boston reported the guilty plea of two targets for wire fraud and false 

statements in preparation of fraudulent CARES Act documents used to obtain approximately 

$30,000. The funds were used to operate illicit massage businesses that offered sex services. 

 On December 20, 2021, HSI Detroit reported the seizure of approximately $350,000 in a case 

involving the U.S. Small Business Administration (SBA) Economic Injury Disaster Loans 

fraud. On the same date, HSI Detroit seized a bank account linked to the subject worth 

$350,000. 

 On May 7, 2021, HSI Los Angeles reported the arrest of a U.S. citizen for Paycheck Protection 

Program (PPP) fraud. From May-December 2020, the subject submitted four PPP loan 

applications worth over $5 million. HSI seized three luxury vehicles valued over $700,000 

purchased with fraudulent PPP loan money and a bank account containing over $2 million 

dollars.

 In April 2021, HSI Portland, OR executed a federal search warrant at a business in Eugene, OR 

resulting in the seizure of 537,000 counterfeit 3M masks. 

 In February 2021, HSI Portland, ME, initiated an investigation of counterfeit 3M masks that 

were sold to the State of Maine for health care providers, first responders, and teachers. 

Approximately 2,175,000 counterfeit N95 masks were sold for approximately $6.4 million 

dollars. HSI seized $3,616,082 and 2,082,907 counterfeit 3M masks. 

 In February 2021, HSI Los Angeles seized approximately 9.4 million counterfeit 3M masks at a 

logistics facility, some of which were destined for the Federal Emergency Management 

Agency. 

 USSS Response to COVID-19 Related Fraud 

Since mid-2020, US Secret Service offices nationwide have been investigating rampant fraud 

related to the SBA loans. The USSS has developed tactics for responding to this emerging criminal 

trend and identified several avenues for recovering the funds through administrative forfeiture. 

This effort has been extremely successful, resulting in 1,493 seizures totaling $1.257 Billion 

recovered from fraudulently obtained COVID Relief loans. 

 USSS Tallahassee PPP and EIDL Fraud Investigation Resulted in Forfeiture of $7.8 million 

USSS Tallahassee investigated fraudulent PPP and Economic Injury Disaster Loan (EIDL) 

applications that were submitted online through the SBA website, utilizing fabricated 

employment information and/or stolen individual and corporate PII. The applications directed 

funds to numerous “money mule” accounts. USSS Tallahassee Office seized funds from 

numerous Charles Schwab Brokerage Accounts in various names. The funds were forfeited on 

September 15, 2021. SBA and others defrauded entities have filed petitions for remission for 

the forfeited funds. 
TEOAF – 6 

 USSS Baltimore Successes in COVID-19 Related Fraud Investigations 

USSS Baltimore has seized over $8 Million in fraud cases involving COVID Relief Funds. 

One of the recent cases targeted a subject who had falsified IRS Tax Documents for the 

purpose of receiving a large PPP Loan. M&T Bank notified the USSS of the fraud scheme and 

assisted agents in the investigation. On December 22, 2021, USSS Baltimore obtained a 

seizure warrant for $1,295,000 from account(s) controlled by the subject. A criminal complaint 

and arrest(s) are forthcoming. SBA will file a petition for remission for the forfeited funds. 

 22 Defendants Charged and 6 Pleaded Guilty in Connection with $11.1 Million PPP Fraud 

Twenty-two individuals have been charged in connection with a fraudulent scheme to obtain 

approximately $11.1 million in PPP loans to purchase luxury vehicles, jewelry, and other 

personal items. Six individuals, including the scheme’s ringleader, pleaded guilty. The 

leader pleaded guilty on June 16, 2021, to one count of conspiracy to commit bank fraud and 

wire fraud and one count of money laundering. As part of his plea, the defendant admitted 

their participation in fraudulent conduct totaling more than $14.7 million, including more 

than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic 

Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. They also 

agreed to forfeit assets, including more than $2.1 million in seized funds, three luxury 

vehicles, and jewelry. The investigation has been conducted by the FBI, IRS Criminal 

Investigation, the U.S. Treasury Inspector General for Tax Administration, and the SBAOffice of the Inspector General.

 CBP Port Entry Inspections Prevent Fraudulent COVID-19 Tests and Counterfeit 

Products from Entering the U.S.

On January 15, 2021, during a regular inspection at the Seattle Port of Entry, CBP officers 

opened a box labeled “Doorbell”, but discovered COVID-19 Rapid Test Kits. Further 

investigation determined that the entire shipment of ten boxes containing 5002 test kits were 

non-FDA compliant. The value of the test kits was $95,038. The officers determined that the 

manufacturer listed the kits as “Test that should no longer be used”. Additionally, CBP 

officers at the El Paso Port of Entry found and seized 139 boxes of counterfeit 3M masks 

manufactured in Peru and shipped to the U.S. via Hong Kong. As of September 2021, the 

Treasury forfeiture program has over 13 million counterfeit masks in its warehouses. 

Priorities: In FY 2023, TEOAF will continue to support the investigations and activities of the 

participating law enforcement bureaus. The bulk of TEOAF expenses include supporting 

seizures, forfeitures, and the funds are used to cover the costs of activities associated with 

seizures including storage, maintenance, disposition, and destruction of seized property. 

TEOAF focuses on supporting investigations and activities that meet the mission of disrupting 

and dismantling criminal enterprises. To this end, TEOAF prioritizes major case1

 initiatives 

when allocating funding to member agencies, including the purchase of evidence and 

information, joint operations expenses, investigative expenses leading to seizure, as well as 

software tools used for computer forensics, analysis of financial data, and tracing cryptocurrency 

transactions. Major case initiatives are aligned directly to the National Money Laundering and 

Southwest Border strategies. 

1 A major case refers to a case where the forfeiture results in a deposit greater than $5 million, or a case that disrupts or dismantles money 

laundering networks or other financial activities that threaten the financial stability, financial system, or financial interests of the United States. 
TEOAF – 7 

Often, the assets identified in these investigations are proceeds of fraud schemes with multiple 

victims. TEOAF allocates significant resources to ensure that such investigations are adequately 

funded to yield successful prosecutions and forfeitures. The resulting forfeiture deposits are used 

to compensate the victims defrauded by the violators. 

One of TEOAF’s highest immediate priorities now is supporting TFF participating law enforcement 

agencies’ response to COVID-19 related crimes. Our agencies are facing formidable challenges 

dealing with massive COVID-19 related fraud schemes, the use of stolen PII in such schemes, and the 

sales of counterfeit vaccines, masks, and COVID treatments online and via Darknet marketplaces. 

From the start of the pandemic, TEOAF has made it a priority to support our agencies’ efforts 

aimed at intercepting, disrupting and dismantling multi-million-dollar COVID fraud schemes 

and returning the money to the victims. It will remain a TEOAF high priority in FY 2022-2023, 

as the number of COVID-19 crimes and investigations associated with them is still growing. 

The most notable financial investigations conducted by the TFF agencies involve professional 

money launderers who utilize highly sophisticated money laundering methods, global trade and 

finance, and emerging technologies such as cryptocurrencies. They launder illicit funds derived 

from many criminal violations, including drug trafficking, human smuggling and COVID-19 

fraud. This type of investigation requires extraordinary law enforcement efforts, manpower, and 

resources. TEOAF prioritizes the support of such investigations, including their ongoing 

operation’s needs and cutting-edge technology capabilities required for big data analytics, dark 

net investigations, block chain analysis, and mobile forensics necessary for these operations. 

These investments buttress the anti-money laundering and countering the financing of terrorism 

(AML/CFT) strategy of DHS and Treasury and alleviate uncertainty about funding availability 

for investigations and forfeitures. 

Challenges: Managing an inconsistent revenue stream to meet the burgeoning investigative 

needs of the agencies, particularly software and analytical tools necessary to pursue criminal 

activity that is increasingly cyber based. A funding mix involving all funding authorities 

(Mandatory, SEF and Strategic Support) is essential to avoid uncertainty about future funding 

for financial investigations and forfeitures. 

Many investigations require analytical and cyber-investigative tools and services that are currently not 

available or are insufficient. Additional datasets and analytical tools specific to COVID-19 

investigations must be acquired and maintained. These critical datasets include PPP loans and EIDL 

applications, Advanced Payment of Employer Credits due to COVID-19, and Economic Impact 

Payments (EIP) disbursement. 

The table below reflects forfeiture revenue from all sources including direct revenue, reverse 

asset sharing, and interest earned. 
TEOAF – 8 

FY 2015 data does not include the BNP Paribas S.A. forfeiture in the amount of $3,839 million. Of that amount, $3,800 million was 

permanently rescinded under the Consolidated Appropriations Act of 2016, Pub. L. 114-113, Div. O, Tit. IV, §404(e) and §405(b). The 

remainder was returned to the General Fund in FY 2018. 

For operational support of TFF agencies’ investigations, both Mandatory and SEF are critical 

funding sources. The Mandatory funding supports investigative expenses only for seizure cases, 

but the vast majority of seizure cases do not initially start as financial cases. Most seizure cases 

grow out of other cases pursuing specified unlawful activities such as drug trafficking, human 

smuggling, or cybercrime, which are all dependent on SEF funding for operational support. The 

nature of revenue and expenses for both Mandatory and SEF funding is equally dynamic, 

requiring adjustments during the fiscal year. 

In addition, TEOAF tracks future remission payments to third parties as contingent liabilities. 

However, these amounts are not recorded as Fund obligations until the Department of Justice 

grants the petition for remission. The third parties are predominantly victims of crimes that 

triggered the forfeiture (e.g., Ponzi scheme victims). Amounts recorded are significant because 

remission payments from multiple years are recorded and carried forward. The amounts change 

constantly as payments are made and amounts for new remission cases are added. TEOAF 

considers the amounts recorded as contingent liabilities as unavailable and consideration of 

contingent liabilities provides a more accurate representation of the Fund’s financial position. 
TEOAF – 9 

1.1 – Resource Detail Table

Dollars in Thousands

Treasury Forfeiture Fund

Budgetary Resources

FTE * AMOUNT FTE* AMOUNT FTE* AMOUNT FTE* AMOUNT FTE* AMOUNT

Revenue/Offsetting Collections

Interest $1,558 $5,000 $5,000 $0 NA 0.00%

Restored Prior Year Sequestration Reduction $30,294 $44,774 $32,327 ($12,447) NA -27.80%

Forfeited Revenue $783,957 $562,136 $573,379 $11,243 NA 2.00%

Recovery from Prior Years Unpaid $33,811 $12,000 $12,000 $0 NA 0.00%

Recovery from Prior Years Paid $455,447 $0 $0 $0 NA NA

Unobligated Balances from Prior Years $691,454 $877,271 $808,223 ($69,048) NA -7.87%

Total Revenue/Offsetting Collections $1,996,521 $1,501,181 $1,430,929 0 ($70,252) NA -4.68%

Expenses/Obligations

Mandatory Obligations 27 ($624,275) 27 ($453,000) 27 ($462,060) 0 ($9,060) 0.00% 2.00%

Secretary's Enforcement ($14,670) ($35,000) ($35,000) $0 NA 0.00%

Strategic Support ($360,531) ($97,631) ($100,000) ($2,369) NA 2.43%

Total Expenses/Obligations 27 ($999,476) 27 ($585,631) 27 ($597,060) 0 ($11,429) 0.00% 1.95%

Rescissions/Cancellations

Sequestration Reduction ($44,774) ($32,327) ($32,968) ($641) NA 1.98%

Permanent Cancellation ** ($75,000) ($75,000) $0 $75,000 NA -100.00%

Total Rescission/Cancellations ($119,774) ($107,327) ($32,968) $74,359 NA -69.28%

Net Results 27 $877,271 27 $808,223 27 $800,901 0 ($7,322) 0.00% -0.91%

Contingent Liabilities ($590,714) ($550,000) ($550,000) $0 NA 0%

** Due to the timing of FY 2023 budget preparation, the rescission amount for FY 2022 does not reflect the $175 million rescission included in the FY 2022 enacted appropriation 

(P.L. 117-103).

* The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. The FTE are shown here for clarity, but are 

also reflected in the Departmental Offices chapter in the reimbursable FTE total.

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023

Actual Revised Estimate Estimate $ Change % Change
TEOAF – 10 

1.2 – Obligations Detail Table 

Dollars in Thousands 

Treasury Forfeiture Fund Obligations 

FY 2021 

Actual 

FY 2022 

Revised 

Estimate 

FY 2023 

Estimate 

Mandatory * 

 CBP $58,594 $52,775 $53,830 

 ICE $197,826 $119,275 $121,660 

 IRS $150,602 $117,780 $120,136 

 USSS $81,916 $41,450 $42,278 

 USCG $1,400 $1,268 $1,294 

 TEOAF/DO $96,577 $85,844 $87,560 

 TTB $567 $951 $970 

 DOJ/AFMS $18,793 $17,486 $17,836 

 DOJ/CID $18,000 $16,172 $16,496 

Total Mandatory $624,275 $453,000 $462,060 

SEF 

 CBP $1,200 $4,400 $4,400 

 ICE $6,883 $12,123 $12,123 

 IRS $4,257 $12,001 $12,001 

 USSS $1,980 $6,126 $6,126 

 TTB $350 $350 $350 

Total SEF $14,670 $35,000 $35,000 

Strategic Support ** CBP $289,759 $13,933 TBD 

 ICE $35,016 $22,946 TBD 

 IRS $17,341 $22,335 TBD 

 USSS $5,938 $7,444 TBD 

 USCG $5,012 $7,635 TBD 

 TTB $737 $838 TBD 

 FINCEN $6,728 $22,500 TBD 

Total Strategic Support $360,531 $97,631 $100,000 

Total Expenses/Obligations $999,476 $585,631 $597,060 

* These amounts represent all operating expenses (i.e., Refunds, Asset Shares, etc.) including Reimbursables. 

** FY 2022 and 2023 Strategic Support shows preliminary allocations subject to change in the policy process. 

1.3 – Object Classifications Obligations (Schedule O) 

Dollars in Thousands 

Treasury Forfeiture Fund FY 2021 FY 2022 FY 2023 

Object Classification Actual 

Revised 

Estimate Estimate 

25.2 - Other services from non-Federal sources 67,000 15,935 15,165 

25.3 - Other goods and services from Federal sources 232,999 294,806 301,754 

26.0 - Supplies and materials 1 1 1 

41.0 - Grants, subsidies, and contributions 132,000 158,113 160,550 

43.0 - Interest and dividends 311 176 179 

44.0 - Refunds 191,689 88,141 89,499 

94.0 - Financial Transfers 375,476 28,459 29,912 

Total Non-Personnel $999,476 $585,631 $597,060 

Total Budgetary Resources $999,476 $585,631 $597,060 

 

Full- time Equivalents (FTE) * 27 27 27 
TEOAF – 11 

* The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable 

agreement. The FTE are shown here for clarity, but are also reflected in the Departmental Offices chapter in the reimbursable 

FTE total. 

E – Legislative Proposals 

 TEOAF has no legislative proposals. 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, Treasury Forfeiture Fund is working to align budget activities and performance 

measures to the new objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will 

include benchmarking performance and may result in changes to performance measures in the 

FY 2024 budget. 

The purpose of the Fund is to ensure resources are managed to cover the costs of an 

effective asset seizure and forfeiture program, including the costs of seizure or the 

proceedings of forfeiture and sale, including the expenses of detention, inventory, 

security, maintenance, advertisement, or disposal of the property. Additionally, the 

Fund is used to support law enforcement priorities, financial investigative 

capabilities, and the seizure of physical and financial resources to disrupt and 

dismantle criminal enterprises. 

B – Budget and Performance by Budget Activity 

2.1.1 Treasury Forfeiture Fund Resources and Measures 

Dollars in Thousands 

Resource Level Actual FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Revised 

Estimated 

FY 2023 

Estimated 

Expenses/Obligations $526,228 $1,007,426 $1,022,684 $488,041 $999,476 $585,631 $597,060 

Budget Activity Total $526,228 $1,007,426 $1,022,684 $488,041 $999,476 $585,631 $597,060 

FTE 25 25 25 26 27 27 27 

Measures FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Target 

FY 2023 

Target 

Percent of Forfeited Cash 

Proceeds Resulting from HighImpact Cases 80 94.19 90.8 82.87 89.65 80 80 

Treasury Forfeiture Fund Budget and Performance 

($597,060,000 in obligations from revenue/offsetting collections): 

The Fund continues to measure the performance of the participating law enforcement 

bureaus through the percent of forfeited cash proceeds resulting from high-impact 

cases, which are cases that yield a cash forfeiture deposit equal to or greater than 

$100,000. 

The high-impact cases are cases that pursue major criminal targets and their financial 

networks, and therefore, central to disrupting and dismantling criminal enterprises. At the 

same time, these cases are heavily dependent on TEOAF’s funding due to their high 

operational costs and reliance on sophisticated technologies and analytical tools that are 
TEOAF – 12 

not adequately covered by the appropriated funds. The dominant share of high-impact 

forfeitures reflects TEOAF’s effectiveness in supporting such major investigations. 

While the specific numbers shown in the chart fluctuate due to the unusually big forfeitures, the 

consistently dominant (80 percent or more) share of major forfeitures year after year 

demonstrates 

TEOAF’s consistent commitment to supporting high-impact cases. Member law 

enforcement bureaus participating in the Fund have met or exceeded the performance 

target since FY 2014. 

For FY 2022 and FY 2023, the target will remain at 80 percent. The Fund maintains a 

target of 80 percent because some cases may be important to pursue, even if they are 

not high-impact cases and result in deposits of less than $100,000. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and nontechnology investments, can be accessed at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Bureau of Engraving and 

Printing 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
BEP - 2 

Table of Contents

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

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

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

1.1 – Resources Detail Table .................................................................................................. 5

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

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

1.3 – Object Classification (Schedule O) .................................................................................... 8

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1 – Manufacturing Resources and Measures ......................................................................... 10

C – Changes in Performance Measures .................................................................................... 11

Section III – Additional Information ........................................................................................ 11

A – Summary of Capital Investments ....................................................................................... 11

 
BEP - 3 

Section I – Budget Request 

A – Mission Statement 

To develop and produce United States currency notes trusted worldwide. 

B – Summary of the Request 

The Bureau of Engraving and Printing (BEP) produces and delivers U.S. currency notes for the 

Federal Reserve System ordered by the Board of Governors of the Federal Reserve (FRB) and 

other security products for the Federal Government. BEP began printing currency in 1862 and 

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 BEP 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 annual discretionary appropriations. BEP provides technical assistance, 

advice, and some production services to other federal agencies in the development of security 

documents requiring counterfeit deterrent features due to their innate value or other 

characteristics. Other activities at BEP include engraving plates and dies; manufacturing inks 

used to print security products; purchasing materials, supplies, and equipment; and storing and 

delivering products in accordance with customer requirements. BEP supports Treasury’s 

Strategic Goal 2: Enhance National Security, Goal 3: Financial Systems Vulnerabilities, Goal 4: 

Combat Climate Change, and Goal 5: Modernize Treasury Operations. 

BEP’s FY 2023 President’s Budget request funds the following projects: 

1. Washington, DC Replacement Facility: In FY 2019, BEP received legislative authority to 

acquire land and fund construction of a more efficient production facility to replace BEP’s 

current aging Washington, D.C. facility. Additionally, a provision in the Agriculture 

Improvement Act of 2018 (P.L. 115-334) authorized the transfer of a U.S. Department of 

Agriculture (USDA) land parcel in Beltsville, Maryland to the Department of the Treasury to be 

the site for BEP’s replacement production facility. The property transfer Memorandum of 

Agreement between USDA and Treasury was finalized in early 2020. The formal transfer of 

administrative control from USDA to Treasury is expected to occur in 2022. The FY 2023 

current estimate includes $12M in base funding and $885M in increase funding for a total of 

$897M for the next phase of the replacement facility project which was originally planned for 

FY 2022. In 2021, BEP began early site development construction activities estimated at $33 

million to include the removal of hazardous building materials, demolition of twenty-two former 

agriculture research buildings and minor utility system relocations to support the BEP 

development. BEP’s final environmental impact statement was issued in FY 2021. A 

replacement facility will save an estimated $579 million over 10 years, as compared to the cost 

of the renovation of the existing facility. In addition, BEP will reduce its annual operating costs 

by at least $38 million through production, material handling, and other operational/support 

efficiencies. 

 
BEP - 4 

2. Western Currency Facility Expansion: BEP began expanding the Western Currency Facility 

(WCF) in FY 2018 to house and support the new equipment required for the next generation of 

currency design. Producing the next family of updated notes requires that BEP purchase and 

install new production equipment to support the new designs. The expansion will provide the 

space and infrastructure necessary to successfully meet the production requirements of the next 

family of U.S. currency banknotes that focus on the integration of strong new security features. 

The expansion work continued though FY 2022. BEP anticipates additional costs related to 

contract overhead and material price escalation in FY 2023. The project completion date has 

been extended to FY 2023 mainly due to unforeseen site conditions, electrical issues, and 

weather delays. 

3. Banknote Design and Development: In FY 2023, BEP will continue to work on this multiyear project with the Federal Government’s Advanced Counterfeit Deterrent (ACD) Steering 

Committee to develop improved security features for the next family of updated 

notes. The ACD Committee is an inter-agency group established to monitor and explore existing 

and emerging technologies to deter counterfeiting and a raised tactile feature to provide 

meaningful access to blind and visually impaired individuals. The committee includes 

representatives from BEP, the Department of the Treasury, the U.S. Secret Service, and the 

FRB. The updated notes will focus on innovative banknote security and anti-counterfeit 

technology that will enhance and ensure the security and integrity of U.S. currency. While many 

factors are taken into consideration when updating currency, the primary purpose for updating 

notes is to improve the security of U.S. banknotes and ensure they maintain their position as 

being trusted worldwide. The current note release sequence is as follows: $10, $50, $20, $5, 

$100. 

4. Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with 

state-of-the-art intaglio printing presses, electronic inspection systems, and finishing equipment. 

To ensure that BEP will meet the FRB’s annual currency order, the FRB and BEP developed 

short, medium, and long-term strategic equipment replacement plans for the U.S. Currency 

Program. Successful implementation of advanced technology improves productivity, reduces 

environmental impact and enhances counterfeit deterrence of U.S. currency notes. In 

FYs 2022 and 2023, the major retooling initiatives include: 

 Continuation of the upgrade and complete automation of the $100 finishing line to integrate 

Single Note Inspection technology. The capability to inspect single notes provides a 

significant improvement over BEP’s traditional sheet inspection process. Spoilage will be 

reduced significantly, and processing efficiency will increase resulting in cost savings. 

 Replace obsolete electrical and mechanical parts on existing presses and upgrade the 

inspection system to meet present and future currency printing requirements, as well as to 

extend the life of electrical and mechanical systems in the existing machinery. 

 The LEPE Inspection and Electrical Upgrades project is to make improvements to the 

existing system in operation to bring them up to the new capabilities that are included on the 

next generation LEPE system mentioned above. 

 

5. Human Capital/Talent Management: 

The BEP will continue with its FY 2022 strategic initiatives into FY 2023 by updating its hiring 

and recruiting plan to ensure the bureau accomplishes talent management initiatives, while filling 
BEP - 5 

personnel gaps in needed mission critical occupations. Throughout FY 2021, the BEP continued 

to fill gaps in both STEM and cybersecurity positions by utilizing a variety of hiring authorities 

and participating in four virtual fairs that specifically targeted STEM positions in the federal 

government. Additionally, the BEP attended 12 virtual and two in-person recruitment events in 

the Washington D.C. and Dallas/Ft. Worth locations to attract potential candidates in targeted 

demographic and underrepresented areas. STEM positions will continue to be highlighted in 

FY 2023 by the remaining targeted fields/occupations in our annual Recruitment, Hiring, and 

Outreach Plan and by our continued participation in upcoming recruitment events/career fairs 

that highlight our STEM and mission critical occupations. In FY 2021 the BEP hired 33 new 

hires in the STEM field; and in the first quarter of FY 2022, three STEM positions have been 

filled. In addition, BEP hired 25 employees in identified mission critical occupations. 

Throughout FY 2022, BEP continues its efforts focusing on employee engagement by educating 

the workforce on important topics such as: increasing employee satisfaction; building and 

sustaining high trust and accountability; improving interpersonal and cross-functional 

communications; improving employee appreciation; and strengthening meaningful connections. 

Additionally, BEP’s Office of Human Resources is assisting with developing Employee 

Engagement action plans promoting increased innovativeness, collaboration, and diversity in 

thought. 

In FY 2023, BEP will continue its focus on employee engagement by educating the workforce on 

important engagement topics, reevaluating the current Engagement Strategy, recruiting new 

volunteers to implement the engagement initiatives, and promote direct communications with 

BEP executive leadership reinforcing their voices are heard. 

1.1 – Resources Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023 

Budgetary Resources Actual Revised Estimate Estimate % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

 Currency Program 1,829 $1,212,649 1,860 $1,066,911 1,860 $1,139,803 0.00% 6.56% 

 Other Programs 0 2,207 0 3,000 0 3,000 NA 0.00% 

 DC Replacement Facility 3 33,875 3 11,769 3 897,048 0.00% 7522.13% 

Total Revenue/Offsetting Collections 1,832 $1,248,731 1,863 $1,081,680 1,863 $2,039,851 0.00% 88.58% 

Obligations 

Manufacturing 

 Direct Manufacturing 861 571,892 876 508,996 876 531,984 0.00% 4.52% 

 Indirect Manufacturing Support 968 642,964 984 560,915 984 610,819 0.00% 8.90% 

 DC Replacement Facility 3 33,875 3 11,769 3 897,048 0.00% 7522.13% 

Total Expenses/Obligations 1,832 $1,248,731 1,863 $1,081,680 1,863 $2,039,851 0.00% 88.58% 

Net Results 0 0 0 0 0 0 NA NA 

 
BEP - 6 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Program Decreases .................................................................................-$928,907,000 / -0 FTE 

Currency Program -$42,413,000 / -0 FTE 

The yearly currency order (YCO) is 7.2B notes in FY 2022. 

Travel Decrease -$1,215,000 / -0 FTE 

The decrease is due to COVID travel restrictions. 

DC Replacement Facility -885,279,000 / -0 FTE 

The obligation for the next phase of DC Replacement Facility project is delayed to FY 2023. 

Program Increases .................................................................................+ $66,334,000 / +0 FTE 

Additional Overtime +$7,500,000 / +0 FTE 

The overtime in FY 2021 was trending at a higher rate due to COVID. BEP anticipates the 

higher overtime rate to continue into FY 2022. 

Dollars in Thousands 

 FTE Materials Operating & 

Capital Total 

FY 2022 Original Estimate 1,863 $374,278 $1,569,975 $1,944,253 

Program Changes 

Program Decreases: 0 (42,413) (886,494) (928,907) 

Currency Program 0 (42,413) 0 (42,413)

Decrease in Travel 0 0 (1,215) (1,215) 

Washington D.C. Replacement Facility 0 0 (885,279) (885,279)

Program Increases: 0 0 66,334 66,334 

Additional overtime required to meet YCO 0 0 7,500 7,500 

Service Contracts 0 0 53,584 53,584 

WCF Building Expansion 0 0 5,250 5,250 

Subtotal Program Changes 0 (42,413) (820,160) (862,573)

FY 2022 Revised Estimate 1,863 $331,865 $749,815 $1,081,680 

Changes to Base 

Maintaining Current Levels (MCLs) 0 0 19,110 19,110 

Pay Annualization (2.7% average pay raise) 0 0 2,002 2,002 

Pay-Raise (4.6% average pay raise) 0 0 9,620 9,620 

Non-Pay 0 0 7,488 7,488 

Subtotal Changes to Base 0 0 19,110 19,110 

FY 2023 Current Services 1,863 $331,865 $768,925 $1,100,790 

Program Changes 

Program Decreases: 0 0 (17,469) (17,469) 

Manufacturing Support 0 0 (12,769) (12,769) 

WCF Building Expansion 0 0 (4,700) (4,700)

Program Increases: 0 43,261 913,269 956,530 

Currency Program 0 43,261 0 43,261 

Retooling 0 0 19,750 19,750 

Washington D.C. Replacement Facility 0 0 885,279 885,279 

Facilities Support 0 0 825 825 

Information Systems 0 0 3,300 3,300 

Security and Accountability 0 0 4,115 4,115 

Subtotal Program Changes 0 43,261 895,800 939,061 

FY 2023 Estimate 1,863 $375,126 $1,664,725 $2,039,851 
BEP - 7 

Service Contracts +53,584,000 / +0 FTE 

Large service contracts awarded in FY 2021 include asbestos abatement service, repairing annex 

building exterior façade, banknote design and development, and cybersecurity. 

WCF Expansion +5,250,000 / +0 FTE 

The increase is due to equitable adjustments and claims. 

Maintaining Current Levels (MCLs) ......................................................+$19,110,000 / +0 FTE 

Pay Annualization (2.7% average pay raise) +$2,002,000 / +0 FTE 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6% average pay raise) +$9,620,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$7,488,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Decreases ..................................................................................-$17,469,000 / -0 FTE 

Manufacturing Support -$12,769,000 / -0 FTE 

This reflects decrease of planned obligation for Manufacturing Support. 

WCF Building Expansion -$4,700,000 / -0 FTE 

This reflects decrease of anticipated obligations from $13M in FY 2022 to $8.3M in FY 2023. 

Program Increases .................................................................................+$956,530,000 / +0 FTE 

Currency Program Increase +$43,261,000 / +0 FTE 

This reflects currency order commitment increase from 7.2B to 7.6B notes. 

Retooling +19,750,000 / + 0 FTE 

This increase is for planned obligation for new equipment for the DC Replacement Facility and 

WCF. 

Washington, DC Replacement Facility +885,279,000 / +0 FTE 

This increase is for obligations related to construction activities originally planned in FY 2022. 

Facilities Support +$825,000 / +0 FTE 

This increase is for planned obligations for facilities support. 

Information Systems +$3,300,000 / +0 FTE 

This increase is for planned obligations for IT hardware and software upgrades. 

Security and Accountability +$4,115,000, +0 FTE 

This increase is for planned obligations for new traceability project and security equipment. 
BEP - 8 

1.3 – Object Classification (Schedule O) 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 169,368 189,926 195,230 

11.3 - Other than full-time permanent 268 200 206 

11.5 - Other personnel compensation 0 5,698 8,757 

11.6 – Overtime 44,505 32,800 33,716 

11.9 - Personnel Compensation (Total) 214,141 228,624 237,909 

12.0 - Personnel benefits 76,133 83,690 86,027 

13.0 - Benefits for former personnel 36 3 3 

Total Personnel and Compensation Benefits $290,310 $312,317 $323,939 

21.0 - Travel and transportation of persons 442 750 765 

22.0 - Transportation of things 824 821 846 

23.1 - Rental payments to GSA 3,710 3,124 3,218 

23.2 - Rental payments to others 780 1,101 832 

23.3 - Communication, utilities, and misc. charges 17,977 19,168 19,745 

24.0 - Printing and reproduction 3 5 3 

25.1 - Advisory and assistance services 29,753 30,938 31,868 

25.2 - Other services 171,317 123,291 127,001 

25.3 - Other purchases of goods & serv from Govt accounts 33,650 34,731 915,310 

25.4 - Operation and maintenance of facilities 658 76,372 78,668 

25.5 - Research and development contracts 3,357 3,557 3,664 

25.7 - Operation and maintenance of equip 24 0 0 

25.8 - Subsistence and support of persons 152 0 0 

26.0 - Supplies and materials 579,007 351,362 394,623 

31.0 – Equipment 83,834 123,958 139,179 

32.0 - Land and structures 32,749 0 0 

42.0 - Insurance claims and indemnities 184 185 190 

Total Non-Personnel $958,421 $769,363 $1,715,912 

Total Budgetary Resources $1,248,731 $1,081,680 $2,039,851 

 

Full-time Equivalents (FTE) 1,832 1,863 1,863 

D – Appropriations Language and Explanation of Changes 

BEP does not require annual appropriations language. 

E – Legislative Proposals 

BEP has no legislative proposals. 
BEP - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

BEP's vision is to be the world standard securities printer providing its customers and the public with 

superior products through excellence in manufacturing and innovation. BEP supports the following 

Department of the Treasury FY 2022-2026 strategic goals: 

 Goal 2: Enhance National Security 

o Cyber Resiliency of Financial Systems and Institutions 

 Goal 3: Financial System Vulnerabilities: 

o Financial Innovation 

 Goal 4: Combat Climate Change 

o Sustainable Treasury Operations 

 Goal 5: Modernize Treasury Operations 

o Recruit and Retain a Diverse and Inclusive Workforce 

o Better Use of Data 

U.S. currency is used globally and as its manufacturer, BEP needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating the next series of secure notes. 

BEP continues to make every effort to meet its mission to manufacture sophisticated and 

technologically advanced notes that are dependable in commerce. This achievement requires the 

focus and determination of the entire agency, since BEP faces challenges and is committed to 

stay ahead of increasingly sophisticated counterfeiters. In addition, BEP is working to align 

budget activities and performance measures to the new Treasury FY 2022-2026 Strategic Plan. 

In accordance with the Government Performance and Results Act Modernization Act of 2010 

(GPRAMA), the Department of the Treasury has finalized the FY 2022 – 2026 Departmental 

Strategic Plan. Bureau of Engraving and Printing will publish a component plan that aligns 

bureau activities and priorities to the Department’s by the 3rd quarter of FY 2022. 
BEP - 10 

B – Budget and Performance by Budget Activity 

2.1 – Manufacturing Resources and Measures 

Dollars in Thousands 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Revised 

Estimate Estimate 

Expenses/Obligations $712,920 $914,134 $955,212 $878,611 $1,248,731 $1,081,680 $2,039,851 

Budget Activity Total $712,920 $914,134 $955,212 $878,611 $1,248,731 $1,081,680 $2,039,851 

Full-time Equivalents (FTE) 1,818 1,748 1,727 1,740 1,832 1,863 1863 

 

Performance Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Currency Notes Delivered 

Returned Due to Defects 

(parts per million) 

B .0031 .009 .02 .0016 <1ppm <1ppm <1ppm 

FEVS Satisfaction Index1 N/A 73 74 74 NR >65% >65% >65% 

Lost Time Accident rate 

(per 100 employees) 1.36 2 0.78 2 1.48 1.01 1.59 < 1.8 < 1.8 < 1.8 

Manufacturing Costs for 

Currency (Dollars per 

Thousand Notes Produced) 

$43.58 $47.41 $50.33 $56.193 $61.81 $64.33 $63.07 $65.00 

Yearly Currency Order N/A N/A 100% 100% 100% 100% 100% Disc 

Key: B – Baseline; NR – Not Received 

1 FEVS Satisfaction scores are keyed to the year of survey, not the year results are received. 

2 Lost Time Accident Rates are adjusted following adjudication of accident reports received during each fiscal year. 

The FY 2017 and 2018 numbers shown reflect these adjustments. 

3 Target Manufacturing Cost in FY 2020 was increased from $55.73 to $59.65 in Jun 2020 in response to an increase in 

FY 2020 order due to pandemic demand. 

Manufacturing Budget and Performance 

($2,039,851,000 from reimbursable sources) 

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s 

strategic goals. 

Description of Performance: 

Currency Notes Returned Due to Defects (in parts per million or ppm) is an indicator of BEP’s 

ability to provide a quality product. The target for this performance metric is <1 ppm. BEP was 

able to exceed the established target in FY 2021, with an actual result of 0.0016 ppm notes 

returned due to a defect. BEP’s target for this performance metric will be held constant at <1 

ppm for FY 2022 and FY 2023. 

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on 

what matters most to them. Based on the results of the survey, BEP can target areas for 

improvement or additional employee engagement. The measure uses the Department’s standard 

FEVS Satisfaction Index with a target of 65 percent or greater. In FY 2022 and 2023, BEP will 

continue to strive for improvements in overall employee satisfaction. 

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries 
BEP - 11 

in the workplace. BEP’s FY 2021 Lost Time Accident rate was at 1.59 cases per 100 employees, 

lower than the target of 1.80 cases per 100 employees. This performance resulted from increased 

focus on following safe work practices and avoiding hazards. For FY 2022, BEP remains 

committed to maintaining and improving the safety of its employees. BEP will continue to 

perform analysis to determine the root causes of any injury and to identify best practices in 

safety. The 1.8 case rate represents approximately one injury per facility per month. BEP’s 

target will be held at 1.80 cases per 100 employees for FY 2022 and FY 2023. 

Manufacturing Cost 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, and the mix and timing of denominations 

ordered. This indicator is strongly affected by the portion of the order devoted to high-value 

notes, which are more expensive to produce. Actual performance against standard costs depends 

on BEP’s ability to meet spoilage, efficiency, and capacity utilization goals. The final FY 2021 

cost was $61.81 per 1,000 notes produced. BEP’s target for this performance metric is $63.07 in 

FY 2022. The notional target for FY 2023 is set at $65.00 per 1,000 notes produced. This target 

will be refined once the FY 2023 currency order is received. 

The Yearly Currency Order (YCO) measures BEP’s success in delivering the total number of 

currency notes ordered by the Federal Reserve Board annually, this is being discontinued in 

FY 2023. 

The FY 2021 order met its target of delivering 100 percent of the currency notes ordered, with 

BEP delivering 7.0B notes. Recent currency orders now include a minimum quantity of notes by 

denomination, as well as a maximum. In FY 2022, the minimum quantity requested is 6.876B 

notes. 

C – Changes in Performance Measures 

For FY 2023, with the publication of Treasury’s Strategic Plan for FY 2022-2026, BEP will 

work this year to baseline performance against the new strategic objectives. This could result in 

changes to performance measures in the FY 2024 budget. 

Section III – Additional Information 

A – Summary of Capital Investments 

A summary of capital investments, including major information technology and non-technology 

investments can be viewed and downloaded at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

United States Mint 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 

 
MINT - 2 

Table of Contents

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

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

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

1.1 – Resource Detail Table ........................................................................................................ 5

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

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

1.3 – Object Classification (Schedule O) Obligations ................................................................ 8

D – Appropriations Language and Explanation of Changes ...................................................... 9

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 – Manufacturing Resources and Measures ...................................................................... 11

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
MINT - 3 

Section I – Budget Request 

A – Mission Statement 

To enable America’s economic growth and stability by protecting assets entrusted to us and 

manufacturing coins and medals to facilitate national commerce. 

B – Summary of the Request 

In Fiscal Year (FY) 2023, the Mint’s total estimated budgetary requirements for operations, 

metal, and capital investments are $3.4 billion. This budget will support the production of 14.5 

billion circulating coins, as well as the production of bullion and other numismatic products 

sufficient to meet customer demand. The Mint has one budget activity: manufacturing, which 

encompasses the bureau’s two major programs, circulating coinage and numismatic products 

(including bullion coins, collector coins, and national medals). 

To maintain its reputation as one of the finest mints in the world, the Mint is committed to 

operating according to the core values of service, quality, and integrity. The Mint has three 

strategic goals to help fulfill its mission and values: 1) Advancing our circulating mission 

through innovation and technology; 2) Foster a safe, flexible, diverse and engaged workforce; 3) 

Introducing diverse products to new customers and revitalizing the Mint customer base through 

the use of industry-proven marketing approaches. 

Mint operations are funded through the Mint Public Enterprise Fund (PEF), 31 U.S.C. § 5136. 

The Mint generates revenue through the sale of circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and bullion coins to authorized purchasers. All 

circulating and numismatic operating expenses, along with capital investments incurred for the 

Mint’s operations and programs, are paid out of the PEF. By law, all funds in the PEF are 

available without fiscal year limitation. Revenues determined to be in excess of the amount 

required by the PEF are transferred to the United States Treasury General Fund. 

Circulating 

Circulating coin production projections are based on current economic data and forecasts of FRB 

coin orders. Circulating coin production for FY 2022 and FY 2023 is forecasted at 13.3 billion 

and 14.5 billion coins, respectively. This level reflects a 10 percent decrease for FY 2022 and a 

1.4 percent decrease for FY 2023 in shipments of all coin denominations, as compared to 14.7 

billion in FY 2021. Circulating revenue is forecasted at $1.084 billion in FY 2022 and $1.237 

billion in FY 2023. FY 2021 unit costs increased for all denominations except the half dollar 

compared to last year. The penny’s unit cost rose by 19.3 percent, the nickel’s unit cost rose by 

14.8 percent, the dime’s unit cost rose by 17.7 percent, and the quarter-dollar’s unit cost rose by 

11.7 percent. The unit cost for both pennies (2.10 cents) and nickels (8.52 cents) remained above 

face value for the 16th consecutive fiscal year. 

Numismatic Program 

The numismatic program, which includes bullion coins, is designed to prepare and distribute 

premium products to collectors and those who desire quality versions of coinage. Numismatic 

products are priced to cover metal and production costs. 
MINT - 4 

Bullion Coins 

The bullion coin program provides the public a means to acquire precious metal coins as part of 

an investment portfolio. In FY 2021, bullion demand increased to 37.5 million ounces from the 

24.7 million ounces sold in FY 2020. Demand for bullion is forecasted at 20.8 million ounces 

for both FY 2022 and FY 2023. Bullion revenue is forecasted to be $2.0 billion in FY 2022 and 

$1.95 billion in FY 2023. 

Numismatic (Collector Coins and Medals) 

The numismatic program provides high-quality versions of circulating coinage, precious metal 

coins, commemorative coins, and national medals for sale to the public. FY 2021 numismatic 

revenue was up 66.6 percent compared to FY 2020. Numismatic revenue was $577.4 million, a 

$230.8 million increase. The 2021 American Eagle One Ounce Silver Proof and the 2021 United 

States Mint Proof Set were the most popular sellers (in terms of units) this year, selling a 

combined 1,216 thousand units. Sales for these products were 63.8 percent higher than they were 

last year. Gold and platinum numismatic products generated the largest share of revenue (57.2 

percent) during FY 2021 compared to the other numismatic products. This category generated 

$330.0 million in numismatic revenue compared to $247.4 million revenue generated by the 

other categories. Total units increased by 20.9 percent from 3.4 million in FY 2020 to 3.7 million 

in FY 2021. FY 2022 and FY 2023 numismatic revenues are projected to be $448.6 million and 

$339.6 million, respectively, based on projected demand for numismatic products of 3.5 million 

units in FY 2022 and decreasing to 3.0 million units in FY 2023. 
MINT - 5 

1.1 – Resource Detail Table 

 

Dollars in Thousands

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE FTE AMOUNT

Revenue/Offsetting Collections 

Other Income

Circulating 0 $1,044,021 0 $1,084,008 0 $1,237,350 NA 14.15%

Bullion/Numismatic 0 $4,376,121 0 $2,450,268 0 $2,295,065 NA -6.33%

Total Revenue/Offsetting Collections 0 $5,420,142 0 $3,534,276 0 $3,532,415 NA -0.05%

Expenses/Obligations

Manufacturing

Circulating 846 $968,868 933 $1,014,902 933 $1,178,132 0.00% 16.08%

Bullion/Numismatic 720 $4,061,107 772 $2,396,348 772 $2,219,013 0.00% -7.40%

Total Expenses/Obligations 1,566 $5,029,975 1,705 $3,411,250 1,705 $3,397,145 0.00% -0.41%

Net Results 1,566 $390,167 1,705 $123,026 1,705 $135,270 0.00% 9.95%

Coin Shipments (Units In Millions/Coins) FY 2021 FY 2022 FY 2023

Circulating:

One Cent 7,613 6,500 6,925 

5-Cent 1,736 1,442 1,502 

Dime 3,066 2,581 2,843 

Quarter 2,274 2,717 3,158 

Half-Dollar 12 - - 

Dollar - - 

Total Circulating 14,701 13,240 14,428 

FY 2021 FY 2022 FY 2023

Budget Category Actual Revised Estimate Estimate

Administrative Operating Costs $406,001 $451,250 $467,145

Capital Investments $60,105 $70,000 $70,000

Metals and Materials Costs $4,563,869 $2,890,000 $2,860,000

Total Budgetary Resources $5,029,975 $3,411,250 $3,397,145

% Change

3.5%

0.0%

-1.0%

-0.4%

Note: Includes circulating coinage and protective service capital investments which shall not exceed $50,000. The remaining $20,000 is allocated for Numismatic capital investments, 

which are outside of the legislative limit. 

% Change

6.5%

4.1%

10.2%

16.2%

0.0%

0.0%

9.0%

FY 2021 FY 2022 FY 2023 FY 2022 to FY 2023

Actual Revised Estimate Estimate % Change
MINT - 6 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Program Increases............................................................. +$98,652,000 / +34 FTE

Metal due to Forecasted Increase in Bullion and Numismatic Production +$80,000,000 / +0 FTE 

FY 2022 forecasted bullion coin production is projected to remain flat but metal prices are 

anticipated to increase, which will increase bullion coin program costs overall. 

Order Management Services +$3,103,000 / +0 FTE 

We anticipate an increase of approximately $3.1 million for operating and maintenance costs for 

labor rate, digital media, and software to improve system functionality and customer experience. 

Numismatic Capital Increase +$9,500,000 / +0 FTE 

Investments in capital are a critical part of regular manufacturing operations. To continue 

effective coin production, equipment replacements and facility maintenance is mandatory. An 

increase to numismatic capital investments is required to effectively support equipment and 

facility maintenance needs that have been deferred in prior years, including a proof press 

overhaul as well an HVAC renovation at the San Francisco Mint. 

FTE Increase +$4,749,000 / +34 FTE 

The Mint has identified 19 new FTEs needed to support cyber security and data network efforts, 

anti-counterfeiting efforts, evidence-building activities, and numismatic and bullion programs. 

In addition, the Mint increased its actual FTE 5% in FY21 and anticipates an increase of 6% in 

FY 2022 to return to the 1705 FTE level in past years. The higher level increase will be made 

possible by additional hiring authorities for cyber and production. 

Dollars in Thousands

FTE Materials Operating & 

Capital Total

FY 2022 President's Budget 1,671 $2,810,000 $502,598 $3,312,598 

Program Changes

Program Increases: 34 $80,000 $18,652 $98,652 

Metal Due to Forecasted Increase in Bullion and Numismatic Production 0 $80,000 $0 $80,000 

Order Management Services 0 $0 $3,103 $3,103 

Numismatic Capital Increase 0 $0 $9,500 $9,500 

FTE Increase 34 $0 $4,749 $4,749 

Launching American Women Quarters Program 0 $0 $1,300 $1,300 

Subtotal Program Changes 34 $80,000 $18,652 $98,652 

FY 2022 Revised Estimate 1,705 $2,890,000 $521,250 $3,411,250 

Changes to Base

Maintaining Current Levels (MCLs) 0 $0 $15,895 $15,895 

Pay Annualization (2.7%) 0 $0 $1,610 $1,610 

Pay Raise (4.6%) 0 $0 $9,004 $9,004 

Non-Pay (2%) 0 $0 $5,280 $5,280 

FY 2023 Current Services 1,705 $2,890,000 $537,145 $3,427,145 

Program Changes

Program Decreases 0 ($100,000) $0 ($100,000)

Metal due to forecasted decrease in Bullion and Numismatic production 0 ($100,000) $0 ($100,000)

Program Increases 0 $70,000 $0 $70,000 

Metal due to forecasted increase in circulating production 0 $70,000 $0 $70,000 

Subtotal Program Changes 0 ($30,000) $0 ($30,000)

Total FY 2023 Estimate 1,705 $2,860,000 $537,145 $3,397,145 
MINT - 7 

Launching American Women Quarters Program +$1,300,000 / +0 FTE 

The new quarters program was launched in FY 2022. These costs will support our efforts to 

inform the public of the program by investing in various media platforms, marketing and 

education.

 

Maintaining Current Levels (MCLs)..................................................... +$15,895,000 / +0 FTE

Pay Annualization (2.7%) +$1,610,000 / +0 FTE 

Funds are required for annualization of the January 2022 2.7% average pay raise. 

Pay Raise (4.6%) +$9,004,000 / +0 FTE 

Funds are required for a 4.6% average pay raise in January 2023. 

Non-Pay +$5,280,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Decreases............................................................. -$100,000,000 / -0 FTE

Metal due to Forecasted Decrease in Bullion/Numismatic Production -$100,000,000 / -0 FTE 

FY 2023 forecasted demand for the bullion coin program is anticipated to return to more historic 

levels. The result is a decrease of $50 million in bullion metal costs. Concurrently, numismatic 

program sales are also forecasted to decline causing a decrease of $50 million in metal costs. The 

result for the numismatic and bullion program is an overall decrease in program costs. 

Program Increases............................................................. +$70,000,000 / +0 FTE

Metal due to Forecasted Increase in Circulation Production +$70,000,000 / +0 FTE 

FY 2023 forecasted circulating coin production is projected to increase. In conjunction, 

circulating metal prices are also projected to increase. This results in an overall increase in the 

circulating coin program. 
MINT - 8 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands

Object Classification

FY 2021 

Actual 

Obligations 

FY 2022 

Estimated 

Obligations

FY 2023

Estimated 

Obligations

11.1 - Full-time permanent 141,810 170,097 180,712

11.3 - Other than full-time permanent 278 161 161

11.5 - Other personnel compensation 17,577 15,700 15,700

11.9 - Personnel Compensation (Total) 159,665 185,958 196,573

12.1 - Personnel benefits 58,565 56,347 57,474

13.0 - Benefits for former personnel 114 1,019 1,019

Total Personnel and Compensation Benefits $218,344 $243,324 $255,066

21.0 - Travel and transportation of persons 403 2,663 2,663

22.0 - Transportation of things 41,870 33,803 33,803

23.2 - Rental payments to others 15,731 14,000 14,000

23.3 - Communication, utilities, and misc charges 14,656 18,960 18,960

24.0 - Printing and reproduction 751 3,366 3,366

25.1 - Advisory and assistance services 55,231 52,621 52,647

25.2 - Other services 20,346 21,063 21,701

25.3 - Other purchases of goods & serv frm Govt accounts 22,471 20,586 21,586

25.4 - Operation and maintenance of facilities 8,616 9,375 9,675

25.5 - Research and development contracts 0 900 900

25.6 - Medical care 1,290 900 1,000

25.7 - Operation and maintenance of equip 9,098 7,059 7,349

26.0 - Supplies and materials 18,090 19,050 20,550

26.0 - Raw Materials 4,541,624 2,890,000 2,860,000

31.0 - Equipment 42,003 60,266 60,566

32.0 - Land and structures 19,451 13,314 13,314

Total Non-Personnel 4,811,631 3,167,926 3,142,080

Total Obligations $5,029,975 $3,411,250 $3,397,145

Full-time Equivalents (FTE) 1,566 1,705 1,705
MINT - 9 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

UNITED STATES MINT 

Federal Funds 

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 2023 under such 

section 5136 for circulating coinage and protective 

service capital investments of the United States Mint shall 

not exceed $50,000,000. 

 

 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, the Mint is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

Strategic Alignment to Treasury’s new strategic plan 

Goal 2: Enhance National Security 

 Strategic Objective 2.1: Cyber Resiliency of Financial Systems and Institutions (Support) 

Goal 3: Protect Financial Stability and Resiliency 

Strategic Objective 3.3: Financial Innovation (Support) 

Goal 4: Combat Climate Change 

 Strategic Objective 4.4: Sustainable Treasury Operations (Support) 

Goal 5: Modernize Treasury Operations 

 Strategic Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce (Support) 

 Strategic Objective 5.2: Future Work Routines (Support) 

 Strategic Objective 5.3: Better Use of Data (Support) 

 Strategic Objective 5.4: Customer Experience Practices (Support) 

Circulating Coinage Program 

Circulating coinage includes the minting and issuing of pennies, nickels, dimes, and quarter 

dollars. The Mint delivers circulating coinage to the FRBs in quantities to support their service 

to commercial banks and other financial institutions. These financial institutions then meet the 

coinage needs of retailers and the public. The Mint recognizes revenues from the sale of 

circulating coins at face value when they are shipped to the FRBs. 
MINT - 10 

The America the Beautiful Quarters Program ended in FY 2021, bringing to a close one of the 

nation’s most successful coin programs. To continue the Mint’s tradition of celebrating 

America’s history through circulating coins, the Circulating Collectible Coin Redesign Act was 

passed into law January 2021, granting the Mint authority to change the designs of circulating 

coins – specifically, quarter-dollars. Beginning in FY 2022, the Mint will introduce the first in a 

series of new quarter-dollar designs – the American Women QuartersTM Program. This program 

will run through 2025 and will present five new designs each year featuring prominent American 

women who have made an impact in American history in a variety of fields including women’s 

suffrage, civil right, abolition, government, humanities, science, and the arts. The first women to 

be honored include Maya Angelou, Dr. Sally Ride, Wilma Mankiller, Nina Otero-Warren and 

Anna May Wong. 

Numismatic Program 

The Mint’s numismatic program provides high-quality versions of circulating coinage, precious 

metal coins, commemorative coins, and national medals for sale 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. 

Bullion Coins 

The Mint produces and issues gold, silver, platinum, and palladium bullion coins to authorized 

purchasers through the American Eagle, American Buffalo, and America the Beautiful Silver 

Bullion Coin Programs. The authorized purchasers agree to maintain an open, two-way market 

for these coins, ensuring their availability for consumers who desire them for investment 

portfolios. Demand for bullion coins is greatly influenced by the performance of other 

investment options, such as equities 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 Mint will continue to mint and issue $1 coins commemorating 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 

addition, the Mint started the American Innovation $1 Coin Program (Public Law 115-197) in 

2018. This is a multi-year $1 coin series to honor innovation and innovators for each of the 50 

states, the District of Columbia and the five U.S. territories – Puerto Rico, Guam, American 

Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana 

Islands. Four new $1 coins with distinctive reverse designs will be released each year through 

2032, in the order the states ratified the Constitution of the United States or were admitted to the 

Union. Once a coin is issued for each state, coins will be released for the District of Columbia 

and the territories. 

Commemorative coins are authorized by law to recognize and honor people, places, events, 

institutions, and other subjects of historic or national significance. Each coin is minted and 

issued by the Mint in a limited quantity and is available only for a limited time. Included in the 

price is a surcharge that is authorized to be paid to the designated recipient organizations, 
MINT - 11 

assuming all legal requirements have been met. Recipient organizations must use the proceeds 

for the purposes specified in the enabling legislation. In 2022, the Mint has authorization to mint 

commemorative coins commemorating National Purple Heart Hall of Honor (Public Law 116-

247) and Negro Leagues Baseball Centennial (Public Law 116-209). Currently, the Mint does 

not have authorization for any commemorative coins in FY 2023. 

B – Budget and Performance by Budget Activity 

2.1.1 – Manufacturing Resources and Measures 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023

Performance Measure Actual Actual Actual Actual Actual Target Target Target

Circulating On‐Time Delivery 100 100 100 100 100 97.5 97.5 97.5

Customer Satisfaction Index (%) 91.7 93.6 93.6 91.7 84.5 90 84.5 85

Numismatic Sales Units (Million

Units)

3.9 3.3 4.3 3.4 3.7 3.6 3.5 3.0

Safety Incident Recordable Rate 1.96 1.9 1.45 1.29 0.71 2.30 2.26 2.19

Seigniorage per Dollar Issued ($) 0.45 0.37 0.4 0.47 0.37 0.41 0.33 0.33

Manufacturing Budget and Performance 

($3,397,145,000 from offsetting collections) The Mint will mint and issue circulating coins and 

produce numismatic products, including bullion, to meet demand. 

Description of Performance: 

Several key performance measures are used to gauge the bureau’s progress in achieving its 

strategic goals and to assess its Manufacturing Budget Activity performance. 

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly survey of a random sample of active numismatic customers. The 

survey is intended to capture customer satisfaction with the Mint’s service performance as a coin 

products supplier and with the quality of specific products. The CSI metric is a quantitative 

score summarizing the survey’s results into one consolidated value. This metric gauges 

performance results in the effort to achieve the Mint’s internal strategic plan goal, 

“Revitalization of products and customer base,” and the Mint’s internal strategic objective linked 

to this goal, “Integrated marketing plan”, which includes metrics for performance, customer 

engagement and customer satisfaction to evaluate the health of the Mint’s sales and marketing 

program. 

Dollars in Thousands

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Actual Actual Actual Actual Actual Revised Estimate Estimate

Expenses/Obligations $2,203,909 $1,424,770 $1,555,462 $3,462,361 $5,029,975 $3,411,250 $3,397,145

$2,203,909 $1,424,770 $1,555,462 $3,462,361 $5,029,975 $3,411,250 $3,397,145

1,645 1,545 1,536 1,539 1,566 1,705 1,705

 Resource Level 

Budget Activity Total

FTE 
MINT - 12 

In FY 2021, the CSI was 84.5 percent, failing to reach its 90.0 percent target. The Mint fell short 

of the target due to COVID-19 as the call center and distribution warehouse experienced labor 

shortages and high labor turnover, impeding fulfillment of phone call and shipping volumes. 

The Mint has set the target for this metric at 84.5 percent for FY 2022 and at 85.0 percent for FY 

2023. The Mint is implementing new and exciting technology to our marketing services to help 

meet these targets. This technology will enable more and better customer engagement and allow 

us to connect with a broader audience across multiple channels. 

Numismatic Sales Units 

The numismatic sales unit metric measures public demand for coin products sold from 

numismatic operations. This metric also measures performance results achieving the Mint’s 

internal strategic plan goal, “Revitalization of products and customer base” and the Mint’s 

internal strategic objective linked to this goal, “Increasing brand awareness.” 

Numismatics product sales for FY 2021 totaled nearly 3.7 million units, slightly over its 3.6 

million units target. However, the environment for numismatic sales overall remains uncertain. 

A shortage of silver blanks is challenging the Mint’s ability to manufacture enough units to fully 

meet customer demand for its most popular products. The performance target for numismatic 

sales units is 3.5 million for FY 2022 and 3.0 million for FY 2023. Targets are representative of 

anticipated results for the various numismatic product programs for that year. Therefore, targets 

tend to vary year over year. To meet these targets, the Mint will continue to provide high-quality 

products and maintain outstanding customer service and deepen engagement with coin 

collectors. 

Safety Incident Recordable Rate 

The safety incident recordable rate is the number of injuries and illnesses meeting the 

Occupational Safety and Health Administration recording criteria per 100 full-time workers. It 

measures the occurrence of work-related incidents involving death, lost time and restricted work, 

loss of consciousness, or medical treatment. The safety incident recordable rate indicates 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Foster a safe, 

flexible, diverse, and engaged workforce,” and the corresponding Mint internal strategic 

objective linked to this goal, “Continue to cultivate a safe working environment.” 

In FY 2021, the total recordable case rate reached 0.71, well below the Mint’s FY 2021 target of 

2.30, and significantly below the most recently published industry average rate of 5.2 published 

in 2015 by the U.S. Bureau of Labor Statistics for the comparable Non-Automotive Metal 

Stamping industry. During FY 2021, the Mint continued implementing and updating risk 

management guidelines to prioritize resources and mitigate risks in advance of injuries or 

catastrophic events at each plant. Mint facility leadership and employees continue to interact on a 

daily basis on the importance of safety. The performance targets for the safety incident 

recordable rate are 2.26 for FY 2022 and 2.19 for FY 2023. 

Seigniorage per Dollar Issued 

Seigniorage per Dollar Issued is the financial return on circulating operations, calculated as 

seigniorage divided by the total face value of circulating coins shipped to the FRBs. Seigniorage 

is the difference between the face value and cost of producing circulating coinage. It measures 
MINT - 13 

the cost effectiveness of minting and issuing the United States’ circulating coinage. It also 

measures performance results in achieving the Mint’s internal strategic plan goal, “Advancing 

the circulating mission,” as well as the Mint’s internal strategic objective linked to the goal, 

“Utilize research, analysis, and technology for enhancement of circulating coin output and 

input.” 

At the end of FY 2021, Seigniorage per Dollar Issued was $0.37, well below the FY 2021 

performance target of $0.41, the result of a decrease in circulating units shipped. FY 2022 and 

FY 2023 target decreases are a result of projected decreases in production volumes, as well as 

increases in base metals costs for all denominations, as spot market prices are expected to 

escalate. The Seigniorage per Dollar Issued performance targets are set at $0.33 for both FY 

2022 and FY 2023. 

Circulating On-time Delivery 

Circulating On time Delivery is the percentage total of scheduled circulating coin orders shipped 

on time to the Federal Reserve Banks. Each month, the FRB provides Mint a report detailing the 

next month's requirements for coinage. Based on this report, the Mint establishes a shipment 

schedule that is captured in the Oracle manufacturing system. Changes to the schedule are only 

made when the FRB provides formal documentation of a requested adjustment to scheduled 

orders. The Mint will continue to respond to FRB orders as needed, as well as make every effort 

to have the appropriate amount of coinage available to accommodate timely shipments. 

Performance over the past few years has consistently averaged around 100%. On time delivery 

for FY 2021 was 100%. The performance target for circulating on-time delivery is set at 97.5% 

for both FY 2022 and FY 2023. 

Section III – Additional Information 

A – Summary of Capital Investments 

The Mint’s capital investment requirements are predominantly for manufacturing-type 

equipment. Capital investments, along with its operating expenses, are paid out of the Mint’s 

PEF. Current annual appropriations legislation caps the aggregate amount of new liabilities and 

obligations incurred during a fiscal year for capital investments in circulating coinage operations 

and protective service at $50 million. 

The Mint's manufacturing capital investment projects focus on safety, equipment replacement, 

protection, and facility improvements. 

In addition, the Mint’s capital investments encompass a robust information technology (IT) 

portfolio of investments and programs that modernize and secure the bureau’s infrastructure. 

The bureau’s governance structures ensure that the IT portfolio is managed in accordance with 

cost, schedule, risk, and performance goals, and that expected results and benefits are achieved. 

Enterprise architecture reviews assess and reinforce alignment to the bureau’s strategic plan and 

the strategic enterprise direction of the Department of the Treasury. 

In accordance with the Statement of Federal Financial Accounting Standard (SFFAS) No. 6, the 

Condition Index and the Deferred Maintenance assessments for purposes of Federal Real 
MINT - 14 

Property Profile, the Mint’s maintenance is scheduled and performed regularly to keep the 

manufacturing equipment operating at optimal levels. 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Office of the Comptroller of the 

Currency 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2023 
OCC - 2 

Table of Contents

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

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

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

1.1 – Resource Detail Table ........................................................................................................ 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 6

2.1.1 – Supervise Resources and Measures ................................................................................ 6

Supervise Budget and Performance ............................................................................................ 7

2.1.2 – Regulate Resources and Measures .................................................................................. 9

Regulate Budget and Performance .............................................................................................. 9

2.1.3 Charter Resources and Measures ..................................................................................... 10

Charter Budget and Performance .............................................................................................. 10

C – Changes in Performance Measures .................................................................................... 10

Section III – Additional Information ........................................................................................ 11

A – Summary of Capital Investments ....................................................................................... 11

 
OCC - 3 

Section I – Budget Request 

A – Mission Statement 

To ensure that national banks and federal savings associations operate in a safe and sound 

manner, provide fair access to financial services, treat customers fairly, and comply with 

applicable laws and regulations. 

B – Summary of the Request 

The Office of the Comptroller of the Currency (OCC) was created by Congress in 1863 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 DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), transferred to the 

OCC rulemaking authority and responsibility for the supervision of federal savings associations. 

As of September 30, 2021, the OCC supervised 797 national bank charters, 52 federal branches 

and agencies, and 269 federal savings associations with approximately $14.9 trillion in financial 

institution assets. 

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 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. 

FY 2022 and 2023 Priorities 

A major focus for FY 2022 and forward involves reviews of existing regulations to consider 

changes consistent with safety and soundness and fair treatment of bank customers, with the goal 

of enhanced regulatory coordination, reducing unnecessary regulatory burden, and increasing 

examination efficiency. OCC supervised banks are showing resilience in the current environment 

with satisfactory credit quality and strong earnings, but weak loan demand and low net interest 

margins continue to weigh on performance. While economic activity is rebounding, there is 

significant ongoing financial risk. 

The OCC noted operational, credit, compliance, and strategic risks, among the key risks. 

Pandemic-related supply chain disruptions are a potential concern and have the possibility to 

limit borrower revenue and cash flow, while inflationary pressures could cause interest rates and 

labor costs to rise. In addition, a higher volume of consumer mortgage loans benefiting from 

COVID-19 forbearance began expiring in June 2021 and will continue into early 2022. Although 

data indicate that forbearance customers generally have a significant level of home equity, which 

will likely mitigate losses to banks in the event of foreclosures absent sale of a property, these 

elevated levels of mortgage forbearance pose increased operational, compliance, and reputation 

risks that will require diligent oversight. 

Strategic risk remains an emerging issue due to the impact on bank profitability of the 

historically low-rate environment and potential credit stress. Operational risk is elevated as 
OCC - 4 

cyberattacks evolve, become more sophisticated, and cause damage to a variety of industries 

including software systems commonly used by large numbers of OCC-supervised banks. 

Compliance risk remains heightened, as banks’ efforts to serve customers in the end stages of 

assistance programs create challenges for change management, as well as for product and service 

risk management practices. 

The OCC is committed to acting on the risks that climate change presents to the financial system. 

Banks are exposed to physical and transition risks presented by climate change which may 

impact the safety and soundness of supervised institutions. Physical and transition risks can have 

an associated material impact on the financial system by damaging property, impeding business 

activity, shifting the values of assets (both up and down), and affecting income. 

The OCC will conduct examinations based on the risk profile of individual national banks and 

federal savings associations to ensure they are safe and sound, sufficiently capitalized, and 

comply with all laws and regulations, including consumer protection laws and regulations. The 

expiration of federal stimulus programs, eviction moratoriums, and other support programs 

presents a near-term challenge to community banks. Priorities and activities will include 

supervisory reviews of commercial and retail credit quality and credit risk management 

functions, implementation and preparedness for the current expected credit losses accounting 

standard, risk management systems related to the financial risks of climate change, cybersecurity 

and operational resiliency, the impact of a low-rate environment and the transition to alternative 

reference rates given the phaseout of the London Interbank Offering Rate (LIBOR), fintech 

partnerships for potential cryptocurrency, payment systems products, and other services, Bank 

Secrecy Act/Anti Money Laundering (BSA/AML) under delegated authority from Treasury’s 

Financial Crimes Enforcement Network and in line with Federal Financial Institutions 

Examination Council (FFIEC) guidance, and fair access and fair lending. Examiners will work to 

resolve problem national bank and federal savings association situations effectively by 

identifying problems at the earliest possible stage, clearly communicating concerns and 

expectations to bank management through Reports of Examination and appropriate enforcement 

actions and ensuring timely follow-up on needed corrective actions. 

1.1 – Resource Detail Table 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 FY 2023 to FY 2022 

Budgetary Resources Actual Estimated Estimated % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Assessments 0 $1,130,960 0 $1,158,673 0 $1,158,673 NA 0% 

Interest 0 $17,320 0 $17,771 0 $17,771 NA 0% 

Other Income 0 $18,847 0 $14,067 0 $14,067 NA 0% 

Unobligated Balances from Prior Years 0 $1,664,755 0 $1,718,848 0 $1,692,000 NA -2% 

Total Revenue/Offsetting Collections 

0 $2,831,882 0 $2,909,359 0 $2,882,511 NA -1% 

Supervise 3,073 $978,890 3,130 $1,071,065 3,130 $1,078,520 0.00% 1% 

Regulate 330 $105,202 336 $115,109 336 $115,910 0.00% 1% 

Charter 88 $27,887 89 $30,513 89 $30,726 0.00% 1% 

Total Expenses/Obligations 3,491 $1,111,979 3,555 $1,216,687 3,555 $1,225,156 0.00% 1% 

Net Results $1,719,903 $1,692,672 $1,657,355 NA -2% 

 
OCC - 5 

- OCC funds are not appropriated funds or government monies. 12 U.S.C. § 481. The Comptroller may impose and collect assessments, fees, or 

other charges as necessary or appropriate to carry out his responsibilities and to meet the expenses of the OCC. 12 U.S.C. § 482. As of 

September 30, 2021, the net position of the OCC was $1,642.5 million. 

-The Comptroller has sole authority to determine how OCC funds are obligated and its expenses incurred and paid. 12 U.S.C. § 16. 

-As part of its annual budget formulation process, the OCC re‐evaluates the size of the reserve based on a disciplined analysis of the impact of 

material events on its ability to fund operations. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2021 FY 2022 FY 2023 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 549,908 580,324 586,127 

11.3 - Other than full-time permanent 4,329 3,027 3,027 

11.5 - Other personnel compensation 3,898 3,769 3,769 

11.9 - Personnel Compensation (Total) 558,135 587,120 592,923 

12.0 - Personnel benefits 260,109 266,610 269,276 

13.0 - Benefits for former personnel 225 230 230 

Total Personnel and Compensation Benefits $818,469 $853,960 $862,429 

21.0 - Travel and transportation of persons 4,692 22,840 22,840 

22.0 - Transportation of things 2,502 2,556 2,556 

23.1 - Rental payments to GSA 80 91 91 

23.2 - Rental payments to others 65,585 65,805 65,805 

23.3 - Communication, utilities, and misc charges 22,998 15,947 15,947 

24.0 - Printing and reproduction 491 613 613 

25.1 - Advisory and assistance services 26,219 40,075 40,075 

25.2 - Other services 30,589 36,961 36,961 

25.3 - Other purchases of goods & serv frm Govt 

accounts 9,142 8,767 8,767 

25.4 - Operation and maintenance of facilities 6,256 7,640 7,640 

25.7 - Operation and maintenance of equip 77,090 108,169 108,169 

26.0 - Supplies and materials 4,954 6,838 6,838 

31.0 - Equipment 29,072 35,839 35,839 

32.0 - Land and structures 12,636 10,202 10,202 

42.0 - Insurance claims and indemnities 1,204 384 384 

Total Non-Personnel 293,510 362,727 362,727 

Total Budgetary Resources $1,111,979 $1,216,687 $1,225,156 

 

Full-time Equivalents (FTE) 3,491 3,555 3,555 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

 

D – Appropriations Language and Explanation of Changes 

The OCC receives no appropriated funds from Congress. 

E – Legislative Proposals 

The OCC has no legislative proposals. 
OCC - 6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

This year, OCC is working to align budget activities and performance measures to the new 

objectives in the Treasury FY 2022 – 2026 Strategic Plan. This work will include benchmarking 

performance and may result in changes to performance measures in the FY 2024 budget. 

As such, the OCC’s nationwide staff of bank examiners conducts on-site and off-site reviews of 

banks and provides sustained supervision of these institutions’ operations. Examiners have used 

enhanced off-site tools and processes during the pandemic to support their supervision 

responsibilities. Examiners analyze asset quality, capital adequacy, earnings, liquidity, and 

sensitivity to market risk for all banks, and assess compliance with federal consumer protection 

laws and regulations. Examiners also evaluate management’s ability to identify and control risk 

and assess banks’ performance in meeting the credit needs of the communities in which they 

operate, pursuant to the Community Reinvestment Act (CRA). 

In addition, under the bank supervision program, the OCC will also: 

 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 to change banking 

practices, and issue cease-and-desist orders as well as Civil Money Penalties (CMPs); and 

 Issue rules and regulations, legal interpretations, supervisory guidance, and corporate 

decisions governing investments, lending, and other practices. 

B – Budget and Performance by Budget Activity 

2.1.1 – Supervise Resources and Measures 

Dollars in Thousands FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 

 Resource Level Actual Actual Actual Actual Actual Estimated Estimated 

Expenses/Obligations $993,680 $1,105,022 $939,193 $953,433 $978,890 $1,071,065 $1,078,520 

Budget Activity Total $993,680 $1,105,022 $939,193 $953,433 $978,890 $1,071,065 $1,078,520 

Full-time Equivalents (FTE) 3,498 3,434 3,289 3,202 3,073 3,130 3,130 

 

Measure 

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of National Banks and Federal 

Savings Associations with Composite 

CAMELS Rating 1 or 2 

94 96 96 96 96 90 90 90 

Percentage of National Banks and Federal 

Savings Associations That Are Categorized 

as Well Capitalized 

97 95 98 95 99 95 95 95 

Percentage of National Banks and Federal 

Savings Associations with Consumer 

Compliance Rating of 1 or 2 

97 98 98 98 98 94 94 94 

Rehabilitated National Banks and Federal 

Savings Associations as A Percentage of 

Problem National Banks One Year Ago 

(CAMEL 3,4, or 5) 

40 44 15 23 28 40 Disc Disc 

Total OCC Costs Relative to Every $100,000 

in Bank and Federal Savings Associations 

Assets Regulated ($) 

9.49 9.12 8.07 7.78 6.79 7.71 7.37 7.37 

Key: DISC- Discontinued 
OCC - 7 

Supervise Budget and Performance 

($1,078,521 from revenue/offsetting collections): 

An effective supervision program is the cornerstone of the OCC’s activities that support its 

strategic goals. Specifically, the Supervise Program consists of ongoing supervision and 

enforcement activities that directly support the OCC’s strategic goal to foster a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks that is a source of economic strength and opportunity that meets 

the evolving needs of consumers, businesses, and communities. The condition and risk 

management practices of national banks and federal savings associations, and requiring 

corrective actions when weaknesses are found, directly supports Treasury’s goal to promote 

financial stability. In FY 2021, the OCC took a number of enforcement actions, including 

imposition of large CMPs to address violations of the Bank Secrecy Act and Anti-Money 

Laundering requirements, and/or failure to maintain effective risk management programs for 

enterprise-wide risk management, compliance risk management, internal controls, or IT risk 

governance that are commensurate with the bank’s size, complexity, and risk profile. 

Description of Performance: 

Percentage of National Banks and Federal Savings Associations with Composite CAMELS 

Rating of 1 or 2: The composite Capital Adequacy, Asset Quality, Management, Earnings, 

Liquidity, and Sensitivity (CAMELS) rating reflects the overall condition of a national bank or 

federal savings association. 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 national bank or federal savings 

association. The rating scale is 1 through 5 of which 1 is the highest rating granted and 

represents the lowest supervisory risk. These CAMELS ratings are assigned at the completion of 

every supervisory cycle or when there is a significant event leading to a change in CAMELS. 

The OCC established a target outcome measure that 90 percent of the institutions under its 

supervision have a composite CAMELS rating of 1 or 2. Such a rating is consistent with the 

strategic goal of a safe and sound banking system, that banks maintain adequate capital and 

liquidity and have strong risk management practices. As of December 31, 2021, 96 percent of 

national banks and federal savings associations earned composite CAMELS ratings of either 1 or 

2. Degradation in CAMELS can reflect weaknesses in risk management systems that need 

corrective action. The OCC, consistent with Treasury’s goals of boosting U.S. economic growth 

and promoting financial stability, has instructed bank examiners to identify and seek corrective 

action at the earliest stage to address potential problems or weaknesses. The OCC’s primary 

focus is to ensure that CAMELS ratings are an accurate reflection of each institution's current 

financial position and risk controls, and thus the OCC would not prematurely restore a favorable 

CAMELS rating. 

Percentage of National Banks and Federal Savings Associations that are Considered WellCapitalized: The Federal Deposit Insurance Act established a system that classifies insured 

depository institutions into five categories (well capitalized, adequately capitalized, 

undercapitalized, significantly undercapitalized, and critically undercapitalized) based on their 

capital levels relative to their risks. The OCC established a target outcome measure that 95 

percent of national banks and federal savings associations will meet or exceed the wellcapitalized threshold. The OCC works closely with problem national banks and federal savings 
OCC - 8 

associations to develop rehabilitation plans. Such plans typically include directives to improve 

or restore capital levels. As of December 31, 2021, 99 percent of national banks and federal 

savings associations were classified as well capitalized. 

Percentage of National Banks and Federal Savings Associations with Consumer Compliance 

Rating of 1 or 2: To ensure fair access to financial services and fair treatment of national bank 

and federal savings association customers, the OCC evaluates an institution’s compliance with 

consumer laws and regulations. Bank regulatory agencies use the Uniform Financial Institutions 

Rating System, Interagency Consumer Compliance Rating, to provide a general framework for 

evaluating significant consumer compliance factors inherent in an institution. Each 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 of 

which 1 is the highest rating granted and represents the lowest risk for noncompliance. The 

target for FY 2022 is 94 percent. As of December 31, 2021, national banks and federal savings 

associations continue to show strong compliance with consumer protection regulations with 96 

percent earning a consumer compliance rating of either 1 or 2. Under the Dodd-Frank Act, the 

OCC has enforcement and supervisory authority for those institutions with total assets of no 

more than $10 billion. 

Rehabilitated National Banks and Federal Savings Associations: The OCC’s early identification 

and intervention with problem financial institutions can lead to a successful rehabilitation. As of 

September 30, 2021, 28 percent of national banks and federal savings associations with 

composite CAMELS ratings of 3, 4, or 5 one year ago have improved their ratings to either 1 or 

2 this year. In addition, there were no national bank or federal savings association failures in 

FY21. Moving forward, in conjunction with Treasury, OCC will discontinue this performance 

measure in FY22 and re-evaluate in FY23 with OCC’s new Strategic Plan. 

Total OCC Costs Relative to Every $100,000 in National Bank and Federal Savings Association 

Assets Regulated: The OCC measures the efficiency of its operations while meeting the 

increasing supervisory demands of a growing and more complex national banking system. The 

OCC costs are those reported as total program operating costs that include obligations incurred in 

each fiscal year. National bank and federal savings association assets are those reported 

quarterly by national banks and federal savings associations on the Reports of Condition and 

Income. Total national bank and federal savings association assets represent the growth and 

complexity of the financial institutions under the jurisdiction of the OCC. 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. As of September 30, 2021, 

total OCC cost relative to every $100,000 in assets regulated was $6.79 compared to the 

FY 2021 target of $7.71. The OCC continues to meet its efforts to ensure that resources are 

used prudently and that programs are carried out in a cost-effective manner ensuring that the 

OCC operates as efficiently and effectively as possible. 
OCC - 9 

2.1.2 – Regulate Resources and Measures 

Dollars in Thousands 

 Resource Level FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Estimated 

FY 2022 

Estimated 

Expenses/Obligations $92,151 $106,649 $93,323 $94,738 $105,202 $115,109 $115,910 

Budget Activity Total $92,151 $106,649 $93,323 $94,738 $105,202 $115,109 $115,910 

Full-time Equivalents (FTE) 324 331 327 318 330 336 336 

Regulate Budget and Performance

($115,910 from revenue/offsetting collections): 

The Regulate Program supports the OCC’s strategic goal of a vibrant and diverse system of 

national banks and federal savings associations that supports a robust U.S. economy. 

Specifically, 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 national banking and federal savings 

association practices, provide guidance on risks and responsibilities facing national banks and 

federal savings associations, or prohibit (or restrict) national banking or federal savings 

association practices deemed to be imprudent or unsafe. They also establish standards for 

ensuring fair access to financial services and fair treatment of national bank and federal savings 

association customers. This program includes establishing examination policies and handbooks; 

interpreting administrative, judicial, and congressional proceedings; and establishing the 

applicable legal and supervisory framework for new financial services and products. 

Description of Performance: 

The OCC has recently undertaken actions to reduce regulatory burden on and expand economic 

opportunity, including in response to the pandemic. The OCC took an important step towards 

strengthening and modernizing the Community Reinvestment Act (CRA) by issuing a final rule 

to rescind its June 2020 CRA rule and pledged to work with the other federal banking agencies 

to develop consistent framework across all banks that will encourage higher levels of responsible 

lending, investments, services, and greater community engagement, particularly focused on 

helping to meet the needs of low- and moderate-income and other underserved communities 

across the nation, including communities that have been disproportionately affected by the 

pandemic. The OCC, with its FFIEC counterparts, updated sections of the BSA/AML 

Examination Manual to improve the effectiveness and efficiency of the BSA/AML regime and 

reduce unnecessary burden on banks. 

The OCC issued draft principles designed to support the identification and management of 

climate-related financial risks by large OCC-supervised institutions. The draft principles support 

banks’ efforts to focus on key aspects of climate-related financial risk management and outline 

the OCC’s initial supervisory expectations for climate-related financial risk management within 

existing OCC rules and guidance. 

The OCC is approaching crypto-related activities in its regulated and supervised institutions with 

a high degree of caution and expects its supervised institutions to do the same. The OCC 

participated with the other Federal banking agencies in an interagency “policy sprint” on cryptoassets. The agencies issued a statement announcing several initiatives to provide greater clarity 
OCC - 10 

on permissibility, safety and soundness, consumer protection, and compliance with existing laws 

and regulations related to crypto-asset-related activities in which banks may engage. 

2.1.3 Charter Resources and Measures 

Dollars in Thousands 

 Resource Level 

FY 2017 

Actual 

FY 2018 

Actual 

FY 2019 

Actual 

FY 2020 

Actual 

FY 2021 

Actual 

FY 2022 

Estimated 

FY 2023 

Estimated 

Expenses/Obligations $24,426 $24,033 $20,212 $20,519 $27,887 $30,513 $30,726 

Budget Activity Total $24,426 $24,033 $20,212 $20,519 $20,887 $30,513 $30,726 

Full-time Equivalents (FTE) 86 75 71 69 88 89 89 

 Measure FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 FY 2023 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Licensing Applications and 

Notices Completed within Established 

Timeframes 

96 97 99 98 98 95 95 95 

Charter Budget and Performance 

($30,726 from revenue/offsetting collections): 

The Charter Program consists of ongoing activities that result in the chartering of national banks 

and federal savings associations and the evaluation of the permissibility of structures and 

activities of national banks and federal savings associations and their subsidiaries. This includes 

the review and approval of new national bank and federal savings association charters, federal 

branches and agencies, mergers, acquisitions, conversions, business combinations, corporate 

reorganizations, changes in control, operating subsidiaries, branches, relocations, and 

subordinated debt issuances. By supporting the entry of new products and institutions into the 

financial system with a national charter in a manner consistent with safety and soundness, the 

Charter Program supports the OCC’s strategic goals of assuring safety and soundness while 

allowing national banks and federal savings associations to offer a full competitive array of 

financial services. 

Description of Performance: 

Percentage of Licensing Applications and Notices Completed within Established Time Frames: 

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 national bank or federal savings 

association 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. As of December 31, 2021, the OCC completed 99 percent of national bank and federal 

savings association applications and notices within the required time frame, above the target of 

95 percent. 

C – Changes in Performance Measures 

With the publication of Treasury’s Strategic Plan for FY 2022-2026, OCC will work this year to 

baseline performance against the new strategic objectives. This could result in changes to 

performance measures in the FY 2024 budget. 
OCC - 11 

Section III – Additional Information 

A – Summary of Capital Investments 

Modernizing the OCC’s approach to bank supervision through standardizing data and 

information, reducing duplication of effort, and leveraging technology is an agency priority. A 

single supervisory platform will provide data, information, and analytics to OCC staff to assist in 

making better decisions, in near real time, to support the agency’s mission. 

The OCC Chief Information Officer’s (CIO) strategy aligns information technology initiatives 

and investments to the OCC’s core mission, including the development of new or enhanced 

applications and services and the disposition of redundant or “end-of-lifecycle” applications, 

capabilities, and services. The CIO strategy is implemented through the budget formulation and 

the Capital Planning and Investment Control processes. These processes ensure that all IT 

investments are aligned with the OCC’s mission, goals, and objectives, before a project is 

funded. The OCC ensures funding and staff resources to address IT investment priorities and 

considers risk mitigation strategies for IT investments to ensure that they are meeting stated 

performance goals. Performance metrics are linked to the delivery, alignment, and achievement 

of the OCC’s strategic program objectives to support evaluation of cost effectiveness for each 

investment. 

FY 2022 and 2023 Plans - The OCC has 4 major IT initiatives in FY 2022 and 2023: 

 Server Support Services (SSS) – The SSS supports the OCC’s server Operations and 

Maintenance, including refreshes of End-of-Life hardware. The infrastructure staff continues 

to build out additional capacity and support server technology refresh, business resiliency, 

and enterprise storage capacity. 

 Telecommunications Services and Support (TSS) – TSS includes telecommunications Wide 

Area Network (WAN) and Local Area Network (LAN) infrastructure. Remote access to the 

OCC systems is facilitated via a virtual private network and secure access to cloud services. 

This includes messaging services supporting highly mobile bank examiners and the OCC 

workforce. In FY 2022, the OCC will continue to refresh telecommunication infrastructure 

to increase capacity, maximize uptime, and ensure maintenance and security are maintained. 

 End User Services and Support (EUSS) – EUSS includes help desk/customer service support, 

computer hardware and software operations and maintenance, mobile devices, printers, asset 

management, and desktop engineering and image management. In FY 2022, OCC will 

refresh mobile devices and begin the planning for the next computer refresh. 

 Cyber Security (CS) – CS includes technologies, processes and practices aligned to protect 

networks, computers, programs and data from attack, damage, or unauthorized access. In 

alignment with Federal and Treasury requirements, the OCC has transitioned the Agency's 

systems and applications into Information System Continuous Monitoring and Ongoing 

Authorization. In FY 2022, the OCC will continue to deploy technologies to meet 

Cybersecurity Executive Orders and additional cloud-based services to minimize dependence 

on the OCC Data Center for critical network security and infrastructure services. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


International Programs 

The Department of the Treasury’s FY 2023 budget request for International Programs is included 

in the State, Foreign Operations, and Other Related Programs Appropriation. 

Treasury’s International Programs Justification of Appropriations can be found at the following: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/treasury-international-programs-justification-ofappropriations