Departmental Offices - S & E 

FY 2011 

Congressional Justification 

DO ‐ 1
Table of Contents 

Overview.............................................................................................................................3 

Section 1 – Purpose............................................................................................................4 

1A – Description of Bureau Vision and Priorities......................................................4 

1B – Program History and Future Outlook................................................................ 5 

Section 2 – Budget Adjustments and Appropriation Language..................................15 

2.1 – Budget Adjustments Table..............................................................................15 

2A – Budget Increases and Decreases Description..................................................15 

2.2 – Operating Levels Table...................................................................................21 

2.3 – Appropriation Detail Table.............................................................................22 

2C – Legislative Proposals.......................................................................................24 

Section 3 – Budget and Performance Plan....................................................................25 

3.1 – Budget by Strategic Outcome.........................................................................25 

Section 4 – Supporting Materials...................................................................................36 

4A – Human Capital Strategy Description..............................................................36 

4.1 – Summary of IT Resources Table....................................................................39 

4B – Information Technology Strategy...................................................................40 

DO ‐ 2
Departmental Offices Salaries & Expenses 

Mission Statement 

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

conditions that enable economic growth and stability at home and abroad, strengthen 

national security by combating threats and protecting the integrity of the financial system 

and manage the U.S. Government’s finances and resources effectively. 

Program Summary by Budget Activity 

(Dollars in thousands) 

Appropriation FY 2009 FY 2010 FY 2011

ARRA Enacted Enacted Request $ Change

% Change 

(Plus Admin 

Allocation)*

 Executive Direction $0 $21,619 $21,983 $38,587 $16,604 76%

 Economic Policies and Programs $0 $45,910 $47,249 $70,562 $23,313 49%

 Financial Policies and Programs $0 $36,038 $48,580 $91,212 $42,632 88%

 Terrorism and Financial Intelligence $0 $62,098 $64,611 $102,613 $38,002 59%

 Treasury-wide Management and Programs $0 $21,600 $22,679 $43,426 $20,747 91%

 Administration Programs $131,000 $91,604 $99,786 $0 ($99,786) (100.0%)

Total Appropriated Resources $131,000** $278,869 $304,888 $346,401 $41,513 13.6%

Total FTE 892 1,204 1,266 1,342 76 5.6%

*FY 2011 numbers and percentage changes reflect the reallocation of the Administration Programs dollars to their respective budget 

activities, resulting in across-the-board increases to other budget activities. 

**ARRA funding includes $122 million for IRS, $6 million for FMS, and $3 million for DO 

FY 2011 Priorities 

As part of developing the FY 2011 Budget and performance plan, the Department of the 

Treasury has also identified a limited number of high priority performance goals that will be 

a particular focus over the next two years. 

Goal 1: Repair and reform the financial system 

Measures and milestones: 

• Complete up to four million trial mortgage loan modifications by December 31, 

2012. 

• Implement strong, comprehensive regulatory reform to restore stability and 

accountability to the financial system. 

Goal 2: Increase voluntary tax compliance 

Measures and milestones: 

• Make progress against the Tax Gap through improved service and enhanced 

enforcement of the tax laws 

• Assist Americans in voluntarily meeting their tax obligations 

Goal 3: Significantly increase the number of paperless transactions with the public 

Measures and milestones: 

• Increase electronic payment, collections, and savings bonds transactions by 33 

percent by the end of FY 2011. 

• Increase individual E-file rate to 81 percent. 

DO ‐ 3
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

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

provides leadership in critical areas including U.S. and international economic and 

financial policy, terrorism and financial intelligence, financial crimes, and general 

management. The Secretary of the Treasury has the primary role of formulating and 

managing the domestic and international tax and financial policies of the Federal 

Government. Through effective management, policies, and leadership, the Treasury 

Department enables the use of financial tools in the war on terror, promotes the stability 

of U.S. and global financial markets to strengthen American economic opportunities, 

manages key global challenges, and ensures the government's ability to collect revenue. 

The FY 2011 budget request supports DO’s leading role in accomplishing key objectives: 

• Managing the Government’s Finances – The Department of Treasury will improve the 

effectiveness, reliability, security, and transparency of the U.S. financial system. DO 

forecasts receipts and payments, determines borrowing needs, and executes the 

borrowing strategy to meet the financial needs of the federal government. 

• Securing America’s Economic and Financial Future – The Departmental Offices will 

continue to develop and implement policies that promote economic growth as well 

strengthen global financial stability and open trade and investment policies to foster U.S. 

export and job opportunities in order to maintain America’s economic strength and 

prosperity. 

• Strengthening National Security – The Departmental Offices lead the U.S. 

Government’s effort to keep the world’s financial systems accessible to legitimate users, 

while excluding those who wish to exploit the systems for illegal purposes. The 

Department is integral to countering terrorist organizations’ financing networks. The 

Departmental Offices implement targeted financial measures in the form of sanctions 

with the goal of stopping the flow of money to terrorist organizations, drug traffickers, 

money launderers, weapons proliferators, rogue regimes and their support networks that 

constitute a threat to the United States. The Department also supports national security 

objectives by strengthening the economic policies and the capacity of core institutions in 

countries of vital national security interest to the United States, including Afghanistan, 

Pakistan, and Iraq. 

• Producing Effective Results – The Department is committed to creating the conditions 

that maximize program and activity efficiency and effectiveness, while continuing to 

drive results through performance and cost-based decision-making through departmentspecific ownership of administrative costs. 

DO ‐ 4
1B – Program History and Future Outlook 

From the beginning of this Administration, Treasury has confronted extraordinary 

challenges: a severe recession here and around the world; a catastrophic loss of trust and 

confidence in our financial system; unprecedented foreclosure rates; small businesses 

struggling to stay afloat; and millions of Americans worried about losing their jobs and 

their savings. The current economic challenges that the United States faces require bold 

and comprehensive action. Treasury has responded to these challenges with an array of 

programs and initiatives to reignite growth, restore our financial system, and strengthen 

the U.S. and global economy. 

Historically, the Treasury Department has affected Americans in their daily lives in many 

different ways, by collecting the taxes that build roads, fund vital programs, and protect 

our security. Now, in the face of severe challenges, Treasury is helping individuals and 

families in even more immediate ways. Treasury is acting to address multiple facets of 

this complicated economic crisis with new, comprehensive programs that are helping to 

stabilize the economy and the financial system—at home and abroad. Treasury has 

actively worked to strengthen the global economy and financial systems, as well as 

maintain open trade and investment policies, to foster improved economic opportunities 

for all Americans. Treasury is also taking a leading role in the design and implementation 

of the Administration’s financial regulatory reform agenda to ensure that the 

circumstances that created this crisis are not allowed to re-emerge. While there is still 

more work to be done, Treasury has already accomplished a great deal during this FY, 

and will continue to work at an unprecedented pace to restore balance and growth to our 

economy. The section below describes the highlights of Treasury’s critical achievements 

in the past year related to America’s economic and financial future, and lays out key 

priorities going forward. 

Tax Policy 

The Office of Tax Policy develops and implements tax policies and programs, reviews 

regulations and rulings to administer the Internal Revenue Code, negotiates tax treaties, 

and provides economic and legal policy analysis for domestic and international tax policy 

decisions. Tax Policy also provides revenue estimates for the President’s Budget. Tax 

Policy analysis has supported a number of critical programs, including: 

American Recovery and Reinvestment Act. Treasury has played a critical role in the 

implementation of key provisions of the American Recovery and Reinvestment Act 

(Recovery Act). Treasury is responsible for implementing more than 30 tax changes that 

have and will continue to provide relief to the American taxpayer. Under the Recovery 

Act, 70 percent of the tax benefits target the middle 60 percent of American workers, and 

an estimated 2 million families will be lifted out of poverty as a result of Recovery Act 

tax cuts. Furthermore, it is estimated that over 1 million jobs will be saved or created 

from these tax cuts alone. 

Build America and School Bonds Program. The Build America Bonds and School Bonds 

program was introduced to help states and localities pursue needed capital projects, such 

DO ‐ 5
as infrastructure development and public school construction. Over $8 billion of Build 

America Bonds have been sold. Over the next year to 18 months, an estimated $100 

billion and $150 billion will be sold into the market. 

Domestic Finance 

Domestic Finance advises and assists in areas of domestic finance, banking, and other 

related economic matters. In addition, this office develops policies and guidance in the 

areas of financial institutions, federal debt finance, financial regulation, capital markets, 

financial management, fiscal policy, and cash management decisions. 

Treasury has taken a leadership role in addressing the financial crisis with a 

comprehensive, forceful, and sustained response. The Financial Stability Plan, as well as 

the subsequent initiatives that have built on the Plan, are designed to mitigate the 

immediate effects of the crisis and to restore balance and growth to our economy. 

Treasury, working with others in the Administration, has introduced a series of programs 

that address multiple aspects of the complicated financial crisis. These programs include 

an unprecedented “stress test” of the nation’s largest banks that attracted a wave of 

private capital to the sector; capital support for financial institutions; targeted initiatives 

to support key credit markets for consumer and small businesses; critical support for the 

auto industry during a period of necessary restructuring; and assistance to at-risk 

homeowners to reduce mortgage rates and limit the number of foreclosures. 

Office of Financial Institutions

Key areas of recent work and future priorities for the Office of Financial Institutions 

include: 

Reforming the U.S. Financial Regulatory System. Treasury has taken the lead within the 

Administration in developing and promoting a sweeping financial regulatory reform plan 

that will lay a new, solid foundation for growth. Such a plan will help increase stability in 

the financial markets and prevent the next crisis, by streamlining and strengthening the 

prudential regulatory system (including raising capital requirements), closing loopholes 

that allowed some firms to escape appropriate regulation, and creating strong safeguards 

for previously under-regulated financial markets, such as those for over-the-counter 

derivatives and asset-backed securities. The plan will strengthen protections for 

consumers and investors, through a proposal to establish a dedicated Consumer Financial 

Protection Agency. Finally, the plan will protect the economy and taxpayer from future 

crises in the financial markets by giving the government the tools to safely and efficiently 

wind down nonbank financial institutions whose failure would pose a threat to the 

system. 

Addressing the housing crisis and ensuring strong housing policies going forward. The 

Office of Financial Institutions has played a key role in developing the Administration’s 

housing crisis response policies. The Office has helped develop and expand the Making 

Home Affordable program, and is also playing a critical part in shaping the 

DO ‐ 6
Administration’s mortgage finance policy, including policy with regard to housing 

finance markets and the future roles of Fannie Mae and Freddie Mac. 

Protecting financial consumers. In the spring of 2009, the Office of Financial Institutions 

established a Deputy Assistant Secretary for Consumer Protection, which oversees the 

Office of Consumer Protection. Consumer Protection has developed and promoted the 

consumer and investor planks of the Administration’s financial regulatory reform agenda, 

including the proposed establishment of a new Consumer Financial Protection Agency. 

Going forward, the Office of Consumer Protection will play an ongoing role as a leader 

in developing federal consumer and investor protection policy. 

Managing diverse financial institution regulatory issues. The Office of Financial 

Institutions has also led Treasury’s efforts in a diverse range of financial regulatory 

matters, including amending the Preferred Stock Purchase Agreements with Fannie Mae 

and Freddie Mac, operating Treasury’s Temporary Money Market Mutual Fund 

Guarantee Program, supporting the Secretary as a Board member on the Pension Benefit 

Guaranty Corporation (which included a suspension of the recent investment policy), and 

representing Treasury on the Board of the Securities Investor Protection Corporation 

(including managing the consequences of the Madoff fraud). 

Promoting financial education and access to financial services. The Office of Financial 

Education (OFE), under the Office of Financial Institutions, develops policies that 

promote financial empowerment and works with other agencies to help ensure that 

families and individuals have the knowledge, skills, and access they need to make wise 

financial choices. OFE also serves a key leadership role with respect to the President’s 

Advisory Council on Financial Literacy and the Financial Literacy and Education 

Commission. In FY 2010, OFE has worked with the Community Development Financial 

Institutions Fund to create the Bank on USA Initiative, a newly proposed program that 

will promote access to affordable and appropriate financial services and basic consumer 

credit products for households without access to such products and services. 

Office of Financial Markets

The Office of Financial Markets (OFM) is responsible for a broad array of critical 

national policy functions related to financial markets. Key highlights of OFM’s work 

include: 

Successfully financing the federal debt. IN FY 2009, the Office of Debt Management 

conducted 296 auctions, issuing over $8.86 trillion in marketable securities and raising 

over $1.78 trillion in new cash, a significant increase from the previous record of $760 

billion in FY 2008. This year’s financing needs were completed through a number of 

changes to the auction calendar, which included both increases in the frequency of 

existing securities and the introduction of new securities. The Office pursued a number of 

policies to support the liquidity and functioning of the market for Treasury securities. 

Supporting the housing market through purchases of mortgage-backed securities. Under 

the authority granted to Treasury in the Housing and Economic Recovery Act of 2008, 

the Office of Debt Management has purchased $225 billion of Agency mortgage-backed 

DO ‐ 7
securities to support the housing market. This has helped keep mortgage rates at 

historically low levels for consumers across the country, reducing economic pressure on 

families and helping to stem the tide of foreclosures. 

Modernizing Treasury’s lending and investment MOUs. The Office of Policy and 

Legislation Review is working with its Agency borrowers on new, comprehensive 

Agency-Treasury agreements that cover borrowing and investing relationships with 

Treasury. Treasury policies and procedures are clearly defined in writing, providing 

transparency to all parties. 

Office of Fiscal Service

The Office of Fiscal Service has been invaluable in the following achievements: 

Promoting financial stability. Over the last year, the Fiscal Service established an 

unprecedented new government infrastructure to implement and manage the Treasury’s 

investments – including securities, loans, guarantees, and equity ownership – under the 

Housing and Economic Recovery Act (HERA) and the Emergency Economic 

Stabilization Act (EESA). This infrastructure includes the ability to perform investment 

accounting, pricing, valuation, and cash flow projections; payments, collections, and cash 

management processing; asset management and servicing; and transaction closing and 

asset custody activities. 

Implementing programs under the American Recovery and Reinvestment Act. The Fiscal 

Service has implemented two new programs establishing cash payments in lieu of tax 

credits under the American Recovery and Reinvestment Act of 2009. Over the past year, 

Treasury received over 92 applications from 51 state housing agencies and awarded $4 

billion for the Payments to States for Low Income Housing Projects in Lieu of Tax 

Credits. Additionally, Treasury has awarded over $1.95 billion to 190 applicants under 

the Payments for Specified Renewable Energy Property in Lieu of Tax Credits program. 

Enhancing reporting and modernizing systems. In addition to continued support for the 

Treasury’s financial stability and economic recovery efforts, in the coming year the 

Fiscal Service will work to produce more accurate and useful financial statements and 

reports for the public, as well as to modernize systems and processes to reduce operating 

costs and improve the robustness of the government’s financial infrastructure. 

In FY 2010, the office will create the Office of Federal Financial Transformation (OFFT) 

program to develop and expand efforts to support shared, government-wide financial 

solutions associated with agency financial management services (e.g., invoice processing, 

cash collections, interagency agreement management), that will allow for the elimination 

of redundant processing of information. This program will eliminate the passing of 

financial information from one location or entity to the next. Instead, the transactions and 

information will reside in one location and users, stakeholders and the public will be able 

to access the information or append to the information without requiring the movement of 

the data. This will streamline processes and allow for more transparency of information. 

DO ‐ 8
This program will be run by the new Office of Financial Transformation funded by the 

government-wide CFO Council. Contract resources are requested to support this effort in 

the Departmental-wide Systems and Capital Investment (DSCIP) budget request. 

Economic Policy 

The Office of Economic Policy monitors economic developments and trends in the 

United States and assists in the development of policies to stimulate economic growth 

and job creation. Analysis performed by Economic Policy staff enhances policymakers’ 

understanding of key economic issues so that they are better able to formulate policies 

that will benefit the U.S. economy. In the past 18 months the office has concentrated 

significant resources on participating in policy development and implementation related 

to financial stability, initiatives to create and maintain jobs, and health care. 

Key areas of recent work and future priorities for the Office of Economic Policy include: 

Participating in the design and implementation of housing policies. Economic Policy 

participated in the development and implementation of the Making Home Affordable 

program, which helps at-risk homeowners stay in their homes by obtaining affordable 

loan modifications and refinancing. The Office will continue to remain active in the 

development of housing policies. 

Assisting in the development, evaluation, and tracking of numerous government 

economic incentive programs, including: the development and evaluation of programs to 

assist small business financing; evaluating and tracking the American Recovery and 

Investment Act Build America Bonds; supporting Administration health care reform 

efforts through research and evaluation; the development and evaluation of initiatives to 

encourage and support job creation; monitoring and analyzing critical trends and 

economic developments including the housing market and bank lending. 

The Office has also provided expertise on policy development in the areas of climate 

change, energy and infrastructure. In addition, the office will continued to carry out its 

traditional responsibilities in the preparation of the Administration's budget and 

supporting the Secretary of the Treasury in his roles as Chairman and Managing Trustee 

of the Social Security and Medicare Boards of Trustees. 

International Affairs 

Treasury’s Office of International Affairs protects and supports U.S. economic prosperity 

by strengthening the external environment for U.S. growth and exports, preventing and 

mitigating global financial instability, and managing key global challenges. To advance 

this mission, International Affairs has focused on the following five policy priorities of 

the Obama Administration. 

Supporting the Global Recovery to Help Promote U.S. Growth.

Treasury has led efforts to mitigate the impact of the global financial crisis and avert a 

more serious economic depression through global leadership that involved unprecedented 

DO ‐ 9
global cooperation. Treasury’s leadership was critical to the U.S. role in securing in G-20 

Leaders’ commitments at the Washington and London Summits on measures to combat 

the global economic and financial crisis. Treasury has also secured strong multilateral 

support at the G-20 meetings for robust, coordinated policy response to reverse the global 

economic slide and take all necessary steps to restore public confidence, economic 

growth, and job creation for the U.S. economy. Treasury has worked closely with the 

International Financial Institutions (IFIs), other U.S. agencies, and via Treasury's 

technical assistance program, to rapidly respond to the global crisis, encouraging the IFIs 

to respond quickly with assistance and ensuring that they have adequate resources to do 

so. In particular, Treasury secured Congressional approval to provide the International 

Monetary Fund with supplemental resources to backstop the IMF’s lending capacity and 

restore confidence to the global financial system. Treasury has also led efforts to 

strengthen international financial regulation through the Financial Stability Board and 

other international forums to ensure high-quality standards around the globe. 

Deepening U.S. Engagement with Key Emerging Markets and Priority Countries.

Given the increasingly interconnected global economy, Treasury has led efforts to engage 

emerging market economies to pursue more balanced and sustainable growth patterns, 

open markets for U.S. exports, and create new job and economic opportunities for 

American workers. To this end, Treasury has undertaken strategic dialogues with China, 

India, Russia, Afghanistan, Pakistan, and Iraq. Treasury has closely focused on engaging 

currency adjustment and expanding export opportunities for American businesses to 

strengthen the U.S. economy, specifically working closely with China and other leading 

emerging markets. 

Economic policy cooperation between the U.S. and China has been one of the most 

important elements of the international effort aimed to rebalance growth. The meeting of 

the U.S.-China Strategic and Economic Dialogue held in Washington in July 2009 

offered an opportunity for candid communication in which the United States and China 

reaffirmed their commitment to maintaining strong policy responses to support global 

recovery, and committed to a new framework for achieving more sustainable and 

balanced growth once global recovery is assured. These engagements will continue in 

bilateral, regional and multilateral channels. 

Maintaining Attractiveness of the U.S. Investment and Trade Environment. Through a 

number of priority initiatives and responsibilities, Treasury promotes and reinforces open 

and transparent international trade and investment regimes at home and abroad, which are 

essential to U.S. growth and competitiveness. As Chair of the Interagency Committee on 

Foreign Investment in the United States (CFIUS), Treasury helps maintain an open 

investment environment by focusing CFIUS reviews of foreign investments solely and 

rigorously on protecting U.S. national security, consistent with statutory authority. 

Treasury also supports trade liberalization and budget discipline through its role in 

negotiating, implementing, and policing international agreements to reduce official 

export subsidies. Treasury has drastically reduced the subsidies that member 

governments of the Organization for Economic Co-operation and Development (OECD) 

can provide when financing national exports. The OECD agreements open markets and 

DO ‐ 10
level the playing field for U.S. exporters and save U.S. taxpayers $800 million annually. 

Treasury has actively engaged in interagency deliberations and decisions impacting on at 

least 55 specific trade actions. Treasury actively fights to keep markets open by 

supporting efforts by the G-20 leaders to refrain from new protectionist measures during 

the period of the global economic crisis. 

Supporting Poverty Reduction, Fragile States and Global Public Goods. Treasury is 

actively engaged in managing key global challenges and pursuing development the 

Obama Administration’s development objectives, specifically supporting multilateral 

development efforts to help the world’s poorest, combating climate change, and 

strengthening food security. 

The Multilateral Development Banks (MDBs) have been “first responders” in the global 

response to the financial crisis. At the same time, these institutions are responding to 

increasing calls that they deliver public goods, such as intervention in fragile states and 

efforts to help developing countries mitigate or adapt to climate change. 

 

As part of the President’s commitment to address global hunger and food insecurity, 

Treasury is working with the World Bank, interested donors and potential recipient 

countries to establish a new multi-donor trust fund that would provide financial support 

for poor countries committed to addressing their internal food security needs. The fund, 

which will complement our increased bilateral spending on agricultural development and 

food security, will leverage the expertise and experience of the multilateral development 

banks as well as the financial resources of other donors to increase the impact of U.S. 

food security investments. 

Additionally, Treasury technical assistance helps aid recipients build financial 

management capacity, which improves the likelihood that funding will be used 

effectively. 

Treasury has played a critical role in the formulation of the President’s AfghanistanPakistan Strategy and has been instrumental in focusing attention on the important 

connections among macroeconomic stability, effective public financial management, 

security, and political stability. Treasury participation was key to ensuring an extension 

of Afghanistan’s debt relief from the Paris Club, which will provide Afghanistan an 

opportunity to reach the Completion point for Heavily Indebted Poor Countries before 

April 2010, resulting in the cancellation of all remaining Paris Club claims. Treasury has 

led support for Kosovo’s integration into the global financial and economic communities 

by facilitating and developing support for Kosovo’s membership in the International 

Monetary Fund (IMF) and World Bank. This has provided a solid foundation to reinforce 

our efforts to promote peace and prosperity in the region. Treasury also successfully 

negotiated the release of two installments of US credit guarantees of Israeli debt under 

the Israel-US Loan Credit Guarantee Agreement. Treasury has helped the Government of 

Iraq to successfully complete the IMF Stand-By Arrangement, leading to the release of 

final installment of Paris Club debt relief. Treasury also hosted the US-Iraq “Forum on 

Iraq Financial Issues” to help the Iraqi Government formulate and execute economic 

policies that are consistent with a sovereign, secure, and self-reliant Iraq. 

DO ‐ 11
Supporting Efforts to Confront Global Climate Change. Treasury leads U.S. environment 

and energy finance efforts in the G-20, assists the U.S. negotiating team on finance issues 

at U.N. climate negotiations, and manages U.S. interests and obligations in multilateral 

financial mechanisms that support environmental goals, including the Climate Investment 

Funds (CIF) at the World Bank and the Global Environmental Facility (GEF), as well as 

the Tropical Forest Conservation Act (TFCA). The Department also works to develop 

efficient and effective environmental and energy policies at the national level. 

Terrorism and Financial Intelligence 

Strengthening National Security. The Treasury Department, through its Office of 

Terrorism and Financial Intelligence (TFI), leads the U.S. Government’s multi-faceted 

effort to keep the world’s financial systems free and open to legitimate users, while 

excluding those who wish to use those systems for illegal purposes. 

In FY 2009, Treasury designated 31 entities and individuals under Executive Order 

13382 -- an authority aimed at freezing the assets of weapons of mass (WMD) 

proliferators and those who support them in the Asian and Middle East regions. Under 

Executive Order (E.O.) 13448 and 13464, two individuals and 23 entities were 

designated, imposing financial pressure against key financial backers of the Burmese 

regime. Treasury also targeted five individuals pursuant to E.O. 13413 targeting political 

or military leaders of foreign armed groups operating in African continent. Under E.O. 

13469, Treasury designated four individuals and 21 entities, targeting those who provide 

financial and other support to the Zimbabwe government and Zimbabwean Specially 

Designated Nationals (SDNs) and thwarting the financial and logistical support they 

provided to the regime enabled Robert Mugabe to pursue policies that seriously 

undermine democratic processes and institutions in Zimbabwe. 

 

In FY 2009, Treasury designated 26 individuals as Specially Designated Global 

Terrorists pursuant to E.O. 13224. These actions included the designation of Abdul Haq, 

leader of the Eastern Turkistan Islamic Party (ETIP) and responsible for terrorist acts in 

China and four Pakistan-based individuals who provided direct support to Al Qaida and 

Lashkar-e Tayyiba. 

The Foreign Narcotics Designation Kingpin Act gives Treasury the authority to apply 

economic sanctions against foreign narcotics trafficking worldwide. In FY 2009, 

Treasury designated a Mexican pharmaceutical company diverting precursor materials 

for methamphetamine production, four key leaders of the Gulf Cartel in Mexico, three 

members of the Revolutionary Armed Forces of Colombia’s (FARC) international 

committee, and a FARC trafficking associate in Costa Rica. Additionally, Treasury 

designated a drug trafficking network in Asia and the financial network of Peruvian drug 

Kingpin Fernando Zevallos. Additionally, Treasury designated 42 individuals and 37 

entities pursuant to E. O. 12978 targeting drug trafficking centered in Colombia. Treasury 

also designated a money laundering network based in Colombia and Mexico resulting in 

DO ‐ 12
the identification of a major narcotics trafficking organization centered in Medellín, 

Colombia. 

Treasury serves as the lead or co-chair on several international working groups within the 

Financial Action Task Force (FATF) and FATF-style regional bodies (FSRB). These 

working groups have produced valuable guidance and reports for identifying and 

addressing vulnerabilities in the international financial system. This international 

outreach effort includes the promotion of financial system standards and safeguards 

through bilateral relationships and multilateral organizations. In FY 2009, Treasury 

participated in or reviewed over 50 mutual evaluations or assessments of jurisdictions’ 

compliance with international anti-money laundering and counter-terrorist financing 

standards. Treasury also offered training and other technical assistance to counterparts 

abroad working to create effective anti-money laundering frameworks and financial 

regulation and oversight capable of combating terrorist finance. Further, Treasury 

promulgates policy related to money laundering and related financial crimes, including 

addressing emerging value transfer mechanisms and other challenges to financial 

transparency. Throughout the year, Treasury continued to develop conduct-based 

sanctions and executive orders to target illicit actors and works closely with the private 

sector, both individuals and financial institutions, to amplify these targeted measures. 

Treasury staff also worked with counterparts in foreign governments to extend U.S. 

sanctions efforts through corresponding sanctions in foreign jurisdictions. 

Treasury continues to enhance its efforts to provide timely, accurate, actionable, and 

policy-relevant intelligence analysis. These threats are addressed by strengthening our 

understanding of the global financial network and encompass four areas: the financial 

underpinnings of national security threats, foreign leadership’s and adversaries’ plans, 

intentions, and financial vulnerabilities, the impact of targeted financial measures, and 

threats to international financial stability. As the Treasury Department’s national security 

role has grown, so has its potential as a target for foreign intelligence services and nonstate actors such as terrorists and criminal groups. In FY 2009, Treasury pursued this 

objective by developing and implementing a counterintelligence and security program 

commensurate with the Department’s national security responsibilities. 

Treasury-Wide Management 

Producing Effective Results. The Departmental Offices (DO) continues to provide 

effective management tools necessary to execute its mission. Essential components 

required for achieving the DO mission include human resources, emergency planning, 

information technology, financial services, and procurement. 

In 2009, DO undertook several core management projects to ensure that the Department 

produced effective results for the American people. DO was able to account for 

approximately $1.8 billion in collections associated with the Exchange Stabilization Fund 

Money Market Guarantee Program. In addition, DO has awarded 36 contracts valued at 

over $125 million for the Troubled Asset Relief Program (TARP) since October 2008, 

with no adverse GAO findings after five audits. In support of the Recovery Act, Treasury 

DO ‐ 13
has awarded 12 contract actions and obligated $55.4 million in Recovery Act funds since 

March 2009. 

Human Capital Management developed several Treasury-wide strategic initiatives 

including the design of user-friendly vacancy announcement templates, piloting an 

employee exit survey to identify systemic causes of employee attrition and developing a 

Treasury-wide recruitment “brand” that leverages the Treasury name and reputation. 

The Treasury Department provides a secure information technology infrastructure. In FY 

2009, Treasury strengthened its networks and improved sensitive data protection by 

tightening security policies, implementing safeguards to reduce exposure to Internetbased threats, strengthening the security configuration of its desktop and laptop systems 

by deploying the Federal Desktop Core Configuration, and achieving 97 percent and 98 

percent completion rates for certification/accreditation and annual contingency plan 

testing, respectively. In FY 2010, we will continue the work we have begun to deploy 

Domain Name Server Extensions (DNSSEC) and the DHS Internet Security Sensors 

(“Einstein II”) and conduct in-depth pilots of data leakage prevention tools. 

In acknowledgement of the social and economic impacts our programs have on the lives 

of Americans, the Department is working on the development of rigorous, independent 

program evaluations for FY 2011. These evaluations will allow us to measure program 

effectiveness and will further strengthen our capacity to conduct similar evaluations on 

current and future programs. Engaging in evaluations of Treasury programs will provide 

our management and policy makers with the information needed to invest in effective 

programs and target problems in programs found to be ineffective. All of our proposed 

evaluation initiatives will be coordinated within our Departmental Offices, and in two 

cases, in partnership with other federal agencies. 

Finally, in FY 2011, DO propose to re-allocate administrative expenses by operational 

budget activity, instead of maintaining a separate budget activity just for administrative 

expenses. The reallocation will make each of the DO offices responsible for the most 

efficient utilization of their administrative costs and will result in a level funding stream 

allocation for each budget activity, which will be sustained through future years. 

Resources and programs which are currently housed within this budget activity will be 

transferred directly to DO’s policy budget activities utilizing a per- cost weighted cost 

allocation methodology. This re-alignment of resources will ensure that the policy offices 

feel ownership for their administrative costs, thereby eliminating the problem of free 

ridership which can occur when offices do not directly manage their resources. It will 

also give oversight officials a better understanding of the full cost of each program within 

DO. 

DO ‐ 14
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

F

Departmental Offices - S & E FTE Amount

Y 2010 Enacted 1,265.5 304,888

Changes to Base: 

Base Realignment: 16.5 $0

Base Realignment 16.5 -

Maintaining Current Levels (MCLs): - $5,584

FERS % Change - 374

Non-Pay Inflation Adjustment - 1,762

Pay Annualization - 935

Pay Inflation - 2,513

Non-Recurring Costs: - ($2,500)

National Academy of Science Transfer - (2,500)

Efficiencies Savings: (3) ($10,603)

DO IT Contract Savings - (5,300)

DAS Operations - (1,700)

Operations Center - (1,500)

Centralized Services - (500)

TFI and IA Office Savings (3) (1,603)

Subtotal FY 2011 Changes to Base 10.5 ($7,519)

Total FY 2011 Base 1,279 297,369

Program Changes: 

Program Increases: 63 $49,032

Domestic Finance Capacity Building 24 16,681

IA Multilateral Meeting Support - 6,739

Program Evaluations - 5,292

OIA Global Finance Initiative 10 3,600

Cyber Security - 3,000

Alpha Computers Modeling Systems - 2,750

Procurement Improvements 10 2,500

Tax Policy Capacity Building 8 2,400

Recovery Act 3 2,000

Economic Policy Capacity Building 6 2,000

Global Tax Forum - 1,000

OIA Counterproliferation 2 770

OIA IT Connectivity/Information Sharing - 300

Subtotal FY 2011 Program Changes 63 $49,032

Total FY 2011 Budget Request 1,342 346,401

2A – Budget Increases and Decreases Description 

Base Realignment .................................................................................... +$0 / +16.5 FTE 

Base Realignment +$0 / +17 FTE 

This realigns Secure Communications positions previously located within the Treasury 

Working Capital Fund. These positions were moved back into DO because they only 

support DO, and not other bureaus. 

Maintaining Current Levels (MCLs) ........................................... +$5,584,000 / +0 FTE 

FERS % Change +$374,000 / +0 FTE 

Funds are requested for the increase in agency retirement contribution percentages for GS 

employees from 11.2 percent to 11.5 percent for FY 2011 as required by OPM. 

DO ‐ 15
Non-Pay Inflation Adjustment +$1,762,000 / +0 FTE 

Funds are requested for non-pay related items such as contracts, travel, supplies, 

equipment and GSA rent. 

Pay Inflation +$2,513,000 / +0 FTE 

Funds are requested for the FY 2011 pay increase. 

Pay Annualization +$935,000 / +0 FTE 

Funds are requested for the FY 2011 cost of the 2010 pay raise. 

Efficiencies Savings ........................................................................ -$10,603,000 / -3 FTE 

Departmental Offices IT Contract Savings -$5,300,000 / +0 FTE 

Savings will be realized through contracting improvement and more efficient use of and 

reduced IT consumption. These savings will be realized proportionally across all of DO 

because of the re-alignment of the Administration Programs budget activity based on a 

per capita ratio. 

Deputy Assistant Secretary of Operations -$1,700,000 / +0 FTE 

Reduction will be realized through more efficient use and reduced consumption of 

utilities and a streamlined space plan. These improvements will be shared at a per capita 

level across DO as a result of the re-alignment of Administration Programs dollars based 

on a proportional spread. 

Treasury Operations Center -$1,500,000 / +0 FTE 

Efficiencies will be gained by consolidating portions of existing offices within the new 

combined Treasury Operations Center (TOC). The combined TOC will use fewer 

contract communications officers and need less IT and telecommunications and 

subscriptions support. 

Centralized Services -$500,000 / +0 FTE 

Reduction will be realized through the centralization of IT servers previously funded 

through the Working Capital Fund. This savings is shared proportionally across DO. 

Terrorism and Financial Intelligence and International Affairs Office Savings -

$1,603,000 / -3 FTE 

A $1.6 million reduction to IA ($580 thousand) and TFI ($1.02 million) will be realized 

through the implementation of their identified cost efficiencies and other savings. 

Program Increases ..................................................................... +$49,032,000 / +63 FTE 

Domestic Finance Capacity Building +$16,681,000 / +24 FTE 

To more effectively respond to the financial crisis and to promote stronger and more 

equitable financial regulations going forward, the Administration recognizes that the 

Department of Treasury needs additional resources to support more robust institutional 

capacity within the Office of Domestic Finance. Additional resources will enable 

DO ‐ 16
Domestic Finance to provide expert advice to the current and future administrations, 

promoting a strong economy while maintaining fiscal discipline. To accomplish the 

reforms necessary to achieve its goals, Domestic Finance requests resources to increase 

its staff (with associated administrative overhead) and contract support, as well as to add 

two staff members within the Office of General Counsel and one within the Office of 

Legislative Affairs. The additional resources requested will allow Domestic Finance to 

pursue the following critical goals: (1) Expand expertise in capital markets, including in 

securities market structure and housing finance, to deepen capacity in an area critical to 

financial crisis response and prevention; (2) Conduct significant long-term, policy-related 

research projects drawing on interdisciplinary expertise in areas such as finance, 

economics, and law; (3) Provide leadership in developing and implementing financial 

regulatory policy. The areas of emphasis will include housing initiatives, small business, 

community development, consumer and investor protection, and financial education; and 

(4) Support research activities to allow the Office to obtain high-quality, time-sensitive 

research, data, and analysis to inform policy development. $3.5 million (included in the 

request above) is requested to fund these activities; (5) The resources requested will also 

support two initiatives included in the Administration’s financial regulatory reform 

legislation: (i) an office of full-time, expert staff to support the newly created Financial 

Services Oversight Council, which will identify emerging systemic risks and improve 

interagency cooperation; and (ii) the Office of National Insurance, which will gather 

information, develop expertise, negotiate international agreements, and coordinate policy 

within the insurance sector. 

International Affairs Multilateral Meetings Support +$6,739,000 / +0 FTE 

In 2009, Treasury provided an unprecedented level of support for President Obama as he 

pursued the U.S. economic agenda at numerous international summits focused on 

mitigating the impact of the global financial crisis, and building strong, sustainable and 

balanced growth in the future. In FY2011, Treasury continues to hold the major 

responsibility of convening other countries to ensure financial and economic stability and 

growth in order to foster new economic opportunities and jobs for Americans. The major 

international summits and meetings that must be convened include G-20 meetings, AsiaPacific Economic Cooperation (APEC) meeting, and economic summits with China, 

India and regional groups, as well as numerous ministerial engagements. These meetings 

are critical to achieving the U.S. economy agenda as they provide venues to advance U.S. 

policy priorities to foster economic growth. Therefore, Treasury is requesting funds to 

host these high-level engagements as well as $400,000 for official reception and 

representation expenses. 

Program Evaluations +$5,292,000 / +0 FTE 

As part of the Administration's government-wide initiative to strengthen program 

evaluation, the request includes funds to support four substantive program evaluations at 

a total cost of $5.766 million, of which $474,000 can be funded out of existing 

administrative funding for the Office of Financial Stability. These evaluations include (1) 

Testing alternative mortgage modification strategies; (2) Evaluating CDFI Financial 

Innovations; (3) Linking mortgage/administrative data to assess mortgage risk; and (4) A 

combined study to evaluate different approaches to no-fee debit cards and Volunteer 

DO ‐ 17
Income Tax Assistance (VITA) prepaid cards. These studies are just a few of 23 

evaluation proposals specifically approved by the Office of Management and Budget for 

2011 to strengthen the quality and rigor of Federal program evaluation. To ensure the 

study is well designed and implemented, Treasury will work with evaluation experts at 

OMB and the Council of Economic Advisers during the planning, design, and 

implementation of the study. Treasury is committed to promoting strong, independent 

evaluation that can inform policy and program management decisions and will post the 

status and findings of this and 

other important evaluations publicly available online. 

Office of Intelligence and Analysis Global Finance +$3,600,000 / +10 FTE 

This builds upon the FY 2009 Global Finance Initiative to further leverage financial 

intelligence that informs and enables senior Treasury leaders in the formulation of policy 

and the execution of Treasury authorities, and allows OIA to play a critical role in 

coordinating global finance intelligence issues across the Intelligence Community. 

Cyber Security +$3,000,000 / +0 FTE 

These base resources are used for department-wide policy implementation of the Cyber 

Security program, and are not developmental. The reallocation would eliminate the 

challenges associated with a recurring program funded through an account which is 

developed as a zero-based budget, by providing a permanent funding stream for the 

ongoing operations and maintenance of the program. The Cyber Security program helps 

ensure the protection of Treasury systems and information against threats. The program 

provides greater protection against network intrusions, which can result in significant 

disruptions and delays in its business activities. 

Alpha Computers Modeling Systems +$2,750,000 / +0 FTE 

Alpha computers are large scale computer systems which support several critical 

applications for Departmental Offices, including the Office of Tax Policy tax models, the 

Federal Financing Bank Loan Management System, Economic Policy modeling, the 

Treasury Library catalog application and Domestic Finance applications. These 

computers were purchased and installed in FY 2005 to meet the large scale processing 

and data storage requirements of these policy offices. Since these systems will be over six 

years old and are no longer manufactured by the vendor, this initiative will replace these 

systems with Intel-based 64 bit blade servers. 

Procurement Improvements +$2,500,000 / +10 FTE 

Treasury requires additional centralized procurement resources to identify, manage, 

execute and make sustainable initiatives to generate procurement influenced savings, 

additional strategic sourcing efforts within Treasury and across government, and systemic 

process improvements. The approach to identifying and realizing these goals is to focus 

the additional resources on corporate-wide opportunities in an optimized and sustainable 

manner to: achieve ongoing savings and high risk contracting reductions; improve our eProcurement and drive process efficiencies; drive needed policy support; and to stand-up 

and manage effective corporate governance, accountability and reporting. This 

investment will enable and promote an optimized, efficient and effective corporate 

DO ‐ 18
procurement approach utilizing centers of excellence, consolidated purchasing with 

common tools and processes. When the improvement opportunities are realized, they 

will yield a significant return on investment. 

Tax Policy Capacity Building +$2,400,000 / +8 FTE 

To meet the challenges that have resulted from the current global financial crisis and 

continuing tax policy challenges facing the American people, the Office of Tax Policy 

(OTP) is requesting an additional eight positions. Tax specialists will be allocated to the 

development of tax policies addressing key tax policy issues. These tax specialists will 

ensure the OTP is able to respond to new challenges due to the financial crisis, support 

the financial stimulus plan, and address tax policy issues such as climate change, health 

care, and tax reform. OTP will use these new resources to ensure that tax policies allow 

the Department of Treasury and the President to respond in a more flexible manner to 

new challenges and provide support for Administration priorities in these key areas. 

Recovery Act +$2,000,000 / +3 FTE 

This Department of the Treasury initiative is requesting three staff members and 

additional contract funds for an interagency agreement between the National Renewable 

Energy Research Lab and Treasury to review application for the Cash Payments for 

Specified Energy Property in Lieu of Tax Credits. These resources are needed to support 

Treasury’s critical role in the implementation of the American Recovery and 

Reinvestment Act (ARRA), specifically supporting Cash Payments to States for LowIncome Housing Projects in Lieu of Low-Income Housing Tax Credit Allocations and 

Cash Payments for Specified Energy Property in Lieu of Tax Credits. These payments 

cover a wide range of options for the American people: housing payments help attract 

private capital to invest in the construction, acquisition, or rehabilitation of qualified lowincome housing buildings; energy payments support the deployment of specified energy 

property (including qualified facilities that produce electricity from wind and certain 

other renewable resources; qualified fuel cell property; solar property; qualified small 

wind energy property; geothermal property; qualified microturbine property; combined 

heat and power system property; and geothermal heat pump property. These three 

additional staff members and additional contract support provide a vital function, 

managing a high profile program which is showing direct impacts to the American 

people. 

Economic Policy Capacity Building +$2,000,000 / +6 FTE 

The Office of Economic Policy (OEP) develops and analyzes policies in the housing and 

financial sectors. Demand for its services has risen sharply. OEP has an excellent record 

of accomplishments, but needs specialized expertise to: analyze events and make policy 

proposals, understand how recent and future policy actions affect the economy, and use 

all available data more efficiently. OEP needs to increase its staff expertise to provide 

analysis in utilizing various government and private databases which differ in structure 

and content. OEP requests resources to add expert economists in the housing and 

financial sectors and to create a small, efficient Data Analysis unit. The unit will maintain 

the large financial and nonfinancial databases needed to assess the financial and 

economic situation and support policy analyses. 

DO ‐ 19
DO ‐ 20

Global Tax Forum +$1,000,000 / +0 FTE 

The Global Forum was previously funded through the Organization for Economic Cooperation and Development (OECD) budget, but as part of a restructuring to become a 

more independent body, it is moving to a new funding structure that will require 

members of the Global Forum to fund it themselves (entirely outside the regular OECD 

budget). Recent developments have increased the importance of transparency and 

exchange of information in tax matters. Major progress has been made, with all 

jurisdictions previously surveyed by the Global Forum on Transparency and Exchange of 

Information (the Global Forum) having now committed to the standards on transparency 

and exchange of information for tax purposes. The Declaration of the G-20 Heads of 

State on Strengthening the Financial System issued after the London summit in April 

2009 calls on the Global Forum to conduct and strengthen objective peer reviews, based 

on existing processes, and to review its structure. This message was reinforced by G-8 

Leaders who met in L’Aquila, Italy, on July 8-9, 2009. On September 1-2, 2009, the 

Global Forum met in Mexico and began the process of implementing this new mandate. 

The Global Forum’s new peer review mechanism will allow a more in-depth assessment 

which should lead to a clear rating system, resulting in objective measurements of how 

well jurisdictions are implementing the international standards on transparency and 

exchange of information. The budget of the Global Forum is allocated among its 

members, with each county’s contribution calculated on the basis of the relative 

percentages of the adjusted national incomes of each member. National income statistics 

(GNP at factor cost less 10 percent depreciation allowance) are adjusted to a common 

currency unit (USD) at official exchange rates by a $450 per capita deduction. Based on 

this methodology, Treasury believes that its contribution for continued U.S. participation 

this G-8 and G-20 commitment, initiated at the behest of the United States, will be at 

least $1 million. 

Office of Intelligence and Analysis Counterproliferation +770,000 / + 2 FTE

Targeting the financing of proliferation networks, including those associated with 

terrorists seeking weapons of mass destruction (WMD), is a key component of USG 

efforts to deter, disrupt, and prevent the spread of WMD. OIA leads Treasury’s effort to 

identify, monitor, and assess the evolution of proliferation finance networks and supports 

the use of targeted financial measures against them. OIA proposes to expand these 

activities to ensure Treasury’s continued progress in disrupting proliferation networks as 

they evolve and adapt, as well as to respond to emerging proliferation threats posed by 

state and non-state actors 

Office of Intelligence and Analysis IT Connectivity/Information Sharing +300,000 / + 0 

FTE 

Resources dedicated to this initiative will help implement the Identity and Access 

Management capability in support of the National Intelligence Strategy Enterprise 

Objective, improve information integration and information sharing. This capability will 

establish an enterprise capability within the sensitive compartmentalized information 

(SCI) computer networks. 
2.2 – Operating Levels Table 

Table 2.2

Dollars in Thousands

FY 2011 

FY 2010 Increase % Change Appropriation Title: DO Salaries and Expenses FY 2009 President's Cong. FY 2010 and FY 2011 FY 2010 to 

Enacted Budget Action Enacted Decreases Request FY 2011

FTE 1,204 1,266 0 1,266 77 1,342

Object Classification:

11.1 Full-Time Permanent Positions............................ $131,308 $145,562 $0 $145,562 $8,976 $154,538 6.2%

11.3 Other than Full-Time Permanent Positions......... 2,781 2,781 0 2,781 323 3,104 11.6%

11.5 Other Personnel Compensation.......................... 197 197 0 197 560 757 284.3%

11.8 Special Personal Services Payments................. 0 0 0 0 1,162 1,162 ----

Personnel Compensation (Total) $134,286 $148,540 $0 $148,540 $11,022 $159,561 7.4%

12.0 Personnel Benefits................................................ 28,377 28,861 0 28,861 11,431 40,293 39.6%

13.0 Benefits to Former Personnel.............................. 0 0 0 0 253 253 ----

Pay 162,663 177,401 0 177,401 22,706 200,107 12.8%

21.0 Travel...................................................................... 5,047 5,286 0 5,286 4,601 9,888 87.0%

22.0 Transportation of Things....................................... 0 0 0 0 302 302 ----

23.1 Rental Payments to GSA...................................... 4,000 5,427 0 5,427 (1,495) 3,932 -27.5%

23.2 Rent Payments to Others...................................... 0 0 0 0 170 170 ----

23.3 Communications, Utilities, & Misc........................ 14,112 14,889 0 14,889 (5,435) 9,454 -36.5%

24.0 Printing and Reproduction.................................... 2,715 2,715 0 2,715 (33) 2,682 -1.2%

25.1 Advisory & Assistance Services........................... 41,581 47,213 0 47,213 4,215 51,428 8.9%

25.2 Other Services....................................................... 19,229 19,229 0 19,229 1,888 21,117 9.8%

25.3 Purchase of Goods/Serv. from Govt. Accts......... 22,249 22,249 2,500 24,749 1,681 26,430 6.8%

25.4 Operation & Maintenance of Facilities................. 900 900 0 900 308 1,208 34.2%

25.5 Research & Development Contracts................... 0 0 0 0 0 00

25.6 Medical Care......................................................... 0 0 0 0 0 00

25.7 Operation & Maintenance of Equipment............. 1,000 1,000 0 1,000 1,857 2,857 185.7%

25.8 Subsistence & Support of Persons...................... 0 0 0 0 0 00

26.0 Supplies and Materials......................................... 3,430 3,498 0 3,498 6,947 10,445 198.6%

31.0 Equipment.............................................................. 1,944 2,581 0 2,581 3,801 6,381 147.3%

32.0 Lands and Structures........................................... 0 0 0 0 0 00

33.0 Investments & Loans............................................. 0 0 0 0 0 00

41.0 Grants, Subsidies.................................................. 0 0 0 0 0 00

42.0 Insurance Claims & Indemn................................. 0 0 0 0 0 00

43.0 Interest and Dividends................................. 0 0 0 0 0 00

44.0 Refunds.................................................................. 0 0 0 0 0 00

Non-Pay 116,207 124,987 2,500 127,487 18,807 146,294 14.8%

Total Budget Authority....................................... $278,869 $302,388 $2,500 $304,888 $41,513 $346,401 13.6%

Budget Activities:

Executive Direction $21,619 $22,383 ($400) $21,983 $16,604 $38,587 75.5%

Economic Policies and Programs 45,910 44,749 2,500 $47,249 $23,313 $70,562 49.3%

Financial Policies and Programs 36,038 47,580 1,000 $48,580 $42,632 $91,212 87.8%

Terrorism and Financial Intelligence 62,098 64,611 0 $64,611 $38,002 $102,613 58.8%

Treasury-wide Management and Programs 21,600 22,779 (100) $22,679 $20,747 $43,426 91.5%

Administration Programs 91,604 100,286 (500) $99,786 ($99,786) $0 -100.0%

Total Budget Authority....................................... $278,869 $302,388 $2,500 $304,888 $41,513 $346,401 13.6%

.

.

.

.

.

.

.

.

.

*FY 2011 numbers and percentage changes reflect the reallocation of the Administration Programs dollars to their respective budget activities, 

resulting in across-the-board increases to other budget activities. 

0%

0%

0%

0%

0%

0%

0%

0%

0%

DO ‐ 21
2.3 – Appropriations Detail Table 

Dollars in Thousands 

DO ‐ 22

*FY 2011 numbers and percentage changes reflect the reallocation of the Administration Programs dollars to their respective budget activities, 

resulting in across-the-board increases to other budget activities. 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Newly Appropriated Resources:

Executive Direction Programs 129 $20,273 131 $21,619 132 $21,983 162 38,587 23% 76%

Economic Policies and Programs 244 41,852 247 45,910 243 47,249 272 70,562 12% 49%

Financial Policies and Programs 194 29,134 199 36,038 244 48,580 306 91,212 25% 88%

Terrorism and Financial Intelligence 308 51,904 342 62,098 346 64,611 437 102,613 26% 59%

Treasury-wide Management Policies and Programs 99 16,384 101 21,600 109 22,679 165 43,426 51% 91%

Administration Programs 160 82,630 185 91,604 192 99,786 0 0 -100% -100%

Subtotal Newly Appropriated Resources 1,133 242,176 1,204 278,869 1,266 304,888 1,342 346,401 6% 14%

Appropriation Detail

Table 2.3

(Dollars in Thousands)

% Change

to FY 2011

FY 2008 FY 2009 FY 2010 FY 2011 FY 2010

Resources Available for Obligation Obligations Enacted Enacted Pres. Budget
2B – 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 

Annex; hire of passenger motor vehicles; maintenance, repairs, The language has been and improvements of, and purchase of commercial insurance amended to remove the 

policies for, real properties leased or owned overseas, when allocation of appropriated necessary for the performance of official business, funds by budget activity. [$304,888,000, of which not to exceed $21,983,000 is for The amended language executive direction program activities; not to exceed provides flexibility to the $47,249,000 is for economic policies and programs activities, Secretary of the Treasury 

including $1,000,000 that shall be transferred to the National to meet critical 

Academy of Sciences for a study by the Board on Mathematical requirements in a timely 

Sciences and Their Applications on the long-term economic manner. This methodology 

effects of the aging population in the United States, to remain is in line with submissions 

available until September 30, 2011, and $1,500,000 that shall from prior years, and will 

be transferred to the National Academy of Sciences for a carbon make DO’s reprogramming 

audit of the tax code as authorized in section 117 of the Energy requirements the same as 

Improvement and Extension Act of 2008 (Public Law 110-343), all other Treasury bureaus. 

to remain available until September 30, 2011; not to exceed 

$48,580,000 is for financial policies and programs activities; 

not to exceed $64,611,000 is for terrorism and financial The language requests that intelligence activities; not to exceed $22,679,000 is for representation funds be Treasury-wide management policies and programs activities; increased by $400,000 to and not to exceed $99,786,000 is for administration programs reflect Treasury’s greater activities: Provided, That the Secretary of the Treasury is increased international 

authorized to transfer funds appropriated for any program responsibilities and activity of the Departmental Offices to any other program participation as hosts for activity of the Departmental Offices upon notification to the multilateral meetings. 

House and Senate Committees on Appropriations: Provided 

further, That no appropriation for any program activity shall be 

increased or decreased by more than 4 percent by all such 

transfers: Provided further, That any change in funding greater 

than 4 percent shall be submitted for approval to the House and 

Senate Committees on Appropriations] $346,401,000: Provided

[further], That notwithstanding any other provision of law, of 

the amount appropriated under this heading, up to $1,000,000, 

may be contributed to the Global Forum on Transparency and 

Exchange of Information for Tax Purposes, a Part II Program 

DO ‐ 23
of the Organization for Economic Cooperation and 

Development, to cover the cost assessed by that organization 

for Treasury's participation therein: Provided further, That of 

the amount appropriated under this heading, not to exceed 

$3,000,000, to remain available until September 30, [2011] 

2012, is for information technology modernization 

requirements; not to exceed $200,000 is for official reception 

and representation expenses; $400,000 is to support increased 

international representation commitments of the Secretary; and 

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 his certificate: Provided further, That of the 

amount appropriated under this heading, $6,787,000, to remain 

available until September 30, [2011] 2012, is for the Treasurywide Financial Statement Audit and Internal Control Program, 

of which such amounts as may be necessary may be transferred 

to accounts of the Department's offices and bureaus to conduct 

audits: Provided further, That this transfer authority shall be in 

addition to any other provided in this Act: Provided further,

That of the amount appropriated under this heading, $500,000, 

to remain available until September 30, [2011] 2012, is for 

secure space requirements: Provided further, That of the 

amount appropriated under this heading, $1,100,000 to remain 

available until September 30, 2012, is for salary and benefits 

for hiring of personnel whose work will require completion of a 

security clearance investigation in order to perform highly 

classified work to further the activities of the Office of 

Terrorism and Financial Intelligence: Provided further, That of 

the amount appropriated under this heading, up to $3,400,000, 

to remain available until September 30, [2012] 2013, is to 

develop and implement programs within the Office of Critical 

Infrastructure Protection and Compliance Policy, including 

entering into cooperative agreements: Provided further, That of 

the amount appropriated under this heading, $3,000,000, to 

remain available until September 30, [2012] 2013, is for 

modernizing the Office of Debt Management's information 

technology. (Department of the Treasury Appropriations Act, 

2010.)

2C – Legislative Proposals 

There are no legislative proposals for the Departmental Offices. 

DO ‐ 24
Section 3 – Budget and Performance Plan

This table lists all FY 2011 resources by strategic goal, objective and outcome outlined in the FY 

2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a corporate level 

plan for the Department that provides a description of what the agency intends to accomplish 

over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

DO ‐ 25

3.1 Budget by Strategic Outcome (Includes Reimbursables)

(Dollars in Thousands)

Treasury Strategic Goal FY 2010 FY 2011 % Change 

Enacted Request FY 2010 to 

FY 2011

Effectively Managed U.S. Government Finances $62,386 $76,675 22.9%

109,336 $121,866 11.5% U.S. and World Economies Perform at Full Economic Potential

Prevented Terrorism and Promoted the Nation’s Security 114,815 $115,673 0.7%

Through Strengthened International Financial Systems

Management and Organizational Excellence $52,193 $66,029 26.5%

Total FY 2010 Request $338,730 $380,243 12.3%

3A – Executive Direction ($38,587,000 from direct appropriations and $2,536,000 from 

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

formulation to the Department and DO and interacts with Congress and the public on 

Departmental policy matters. These offices include: Secretary/Deputy Secretary, Chief of Staff, 

Executive Secretariat, General Counsel, Legislative Affairs, Public Affairs, and Treasurer. 

The Office of General Counsel is a constituent component of Executive Direction. This division 

provides legal support and guidance on all matters pertaining to the Department, from issues 

relating to tax and financial policies, international treaties, human resources related matters and 

procurement. This is a vital function for the Department and the American people as it ensures 

legal cooperation between the financial sector and the law. 
DO ‐ 26

3.2.1 Budget and Performance Plan

(Dollars in Thousands)

Executive Direction Programs Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $19,094 $20,273 $21,619 $21,983 $38,587

Reimbursable Resources 0 599 1,092 1,092 2,536

Total Resources $19,094 $20,872 $22,711 $23,075 $41,123 

Budget Activity Total $19,094 $20,872 $22,711 $23,075 $41,123

No specific performance goals/measures are presented for this budget activity as the work of the 

offices within this budget activity is captured within the other budget activities. 

3B – Economic Policies and Programs ($70,562,000 from direct appropriations and 

$7,537,000 from reimbursable programs): A major mission of the offices within the Economic 

Policy and Programs budget activity is to promote economic growth and security. The Offices 

pursue this mission by providing economic guidance and support to the Secretary in his role as 

the President’s chief economic adviser. These offices play a key role in supporting the Secretary 

by providing technical analysis, economic forecasting, and policy guidance on issues ranging 

from changes in entitlement policy to responding to international financial crises. They provide 

economic intelligence and support by analyzing and reporting on current and prospective 

economic developments in the U.S. and world economies, assisting in the determination of 

appropriate economic policies, and evaluating policy ideas. The offices review and analyze 

domestic and international economic issues and developments in the financial markets. 

Office of International Affairs (IA)

The Office of International Affairs’ (IA) mission is to protect and support U.S. economic 

prosperity by strengthening the external environment for U.S. growth, preventing and mitigating 

global financial instability, and managing key global challenges. 

IA leads the Treasury Department effort in the development of policies and guidance related to 

international monetary affairs, trade and investment policy, international development and debt 

strategy, and the United States participation in international financial institutions. IA also 

coordinates the United States economic policies with the finance ministers of other G-7 and G-20 

nations and prepares the President for annual economic summits. 

Office of Economic Policy (EP)

The Office of Economic Policy (EP) plays a key role in supporting the Secretary by providing 

technical analysis, economic forecasting, and policy guidance. The office provides economic 

intelligence through the analysis and reporting of current and prospective economic 

developments in the U.S. and world economies. EP also provides assistance in the evaluation and 

determination of the appropriate economic approach. 

Economic Policy supports the Secretary of the Treasury in his roles as Chairman and Managing 

Trustee of the Social Security and Medicare Boards of Trustees. EP has proposed and 
implemented significant changes in the Trustees Reports, including perpetuity estimates of 

unfunded liabilities in the Social Security and Medicare reports. EP has developed a set of 

criteria and associated metrics to allow evaluations and analysis of options related to Social 

Security reform. 

DO ‐ 27

3.2.2 Budget and Performance Plan

(Dollars in Thousands)

Economic Policy and Programs Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $35,581 $41,852 $45,910 $47,249 $70,562

Reimbursable Resources 3,195 4,073 5,097 5,097 7,537

Total Resources $38,776 $45,925 $51,007 $52,346 $78,099 

Budget Activity Total $38,776 $45,925 $51,007 $52,346 $78,099 

Economic Policies and Programs Budget 

Activity

 Measure FY 2007 FY 2008 FY 2009 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Number of new trade and investment N/A 14 6 6 2 2

negotiations underway or completed (Oe) 

Percentage of grant and loan proposals 92 94 90 94 90 90

containing satisfactory frameworks for results 

measurement (%) (Oe) 

Improve International Monetary Fund (IMF) 100 93 90 23 90 90

effectiveness and quality through periodic 

review of IMF programs (%) (Oe) 

Scope and intensity of engagement (Traction) N/A 4 4 4 4 4

(E) 

Changes that result from project engagement N/A 3 3 3 3 3

(Impact) (Oe) 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure

Description of Performance: Managing the economic crisis, instability in financial markets, 

trade flows, climate change and aid for developing economies can only be accomplished in a 

global context. Rising protectionism and insularity associated with weakened international 

economies have in recent years heightened the challenges associated with managing international 

partnerships. Expanding and improving these partnerships is critical to pursuing U.S. global 

economic objectives, including expanded trade and investment opportunities, and increased job 

opportunities for all Americans. 

Treasury’s Office of International Affairs (IA) advises and assists in the formulation and 

execution of U.S. international economic and financial policy. In FY 2009, the office exceeded 

its targets for all of its performance measures related to trade and investment. During FY 2010 - 

FY 2011 it is anticipated that completion of new international trade and investment agreements 

will be challenged by protectionist sentiment associated with the 2007-2009 global recession. 

Commitments by G-20 nations to complete the World Trade Organization’s Doha Round of 

trade negotiations and limit protection are extremely favorable, but matching the performance 

results of FY 2009 will remain challenging until political impediments associated with the 
recession diminish. Performance targets for FY 2010 and FY 2011 for IA measures have been set 

to reflect these economic conditions. 

To help ensure that the accountability in the lending of the MDBs, Treasury monitors the 

percentage of grant and loan proposals containing satisfactory results measurement frameworks. 

Over the past several years, most of the MDBs have made substantial progress towards 

developing frameworks to measure the results of their development assistance. For FY 2009, 94 

percent of grant and loan proposals contained satisfactory results measurement frameworks, 

exceeding the Department’s target of 90 percent. The Department will continue to encourage the 

development of robust, transparent performance measurement systems at the MDBs to ensure 

accountability for the resources they utilize. 

In FY2009, the Department led efforts to restore global confidence in the wake of the financial 

crisis by ensuring the IMF had the adequate resources and tools necessary to respond. This action 

was critical to strengthening the U.S. economy via the stabilization of international markets and 

other major and emerging economies. By convening two G-20 meetings, the Department also 

developed a new international economic architecture that ensures that all major economies 

participate in economic governance, including efforts to foster strong, balanced and sustainable 

growth, which will help boost U.S. exports. The Department led efforts in this regard to secure 

international agreement for a shift in IMF quota share of at least 5 percent in favor of dynamic 

emerging market and developing countries, and from over-represented to under-represented 

countries. The Department’s efforts to work through the IMF to secure sound institutional and 

operational practices for sovereign wealth funds culminated in FY 2009 with the publication of 

the Santiago Principles. 

The Department systematically reviews IMF country programs to monitor quality and enhance 

the effectiveness of IMF lending. The Department’s review of IMF programs for FY 2009 

yielded an improvement rate of 23 percent versus 93 percent in FY 2008. The lower result was 

largely due to a shortened timeframe for review of IMF program documents (from two weeks to 

several days) due to the activation of emergency lending procedures to support crisis-affected 

countries. The IMF effectiveness indicator for FY 2010 and FY 2011 has been modified to take 

emergency review procedures into account, which should not be considered a departure from 

performance-based assessment as the target has been raised to 100 percent. 

In FY 2009, OTA continued its ongoing effort to verify and evaluate its performance. Building 

on its initiatives in 2008, it conducted a 100 percent review of all technical assistance projects to 

verify performance. It also reciprocated a peer-review process begun with the Australian 

Treasury in 2008. For the past six years OTA has been developing a tool to enhance its 

performance measures. The tool uses evaluations by resident advisors to rate projects on the 

level of engagement with the host government (Traction in OTA parlance) and the changes that 

result from that engagement based on technical indicators specific to each of the five financial 

disciplines (what OTA calls Impact). This innovative approach was showcased by the OMB 

Associate Director for Administration and Management, to be presented at the annual Excellence 

in Government Conference in 2008. Results from 2008 encouraged OTA to forecast goals for the 

next three years of 3.6 (out of 5) for Traction, and 3.1 for Impact. Calculated results for FY 2009 

were 3.7 for Traction and 3.1 for Impact. 

DO ‐ 28
In 2008, the Department of the Treasury of the Government of Australia conducted a 

professional peer review of OTA work to assess effectiveness. The report was beneficial and 

contributed valuable insight to OTA’s mid- and long-term planning. The process was so 

successful that the Australian Treasury requested that the U.S. Treasury reciprocate the process 

using its own financial technical assistance projects as the object of examination. The results of 

this second peer-review, which was conducted in May 2009, were presented to an international 

group of representatives from other countries who engaged in financial technical assistance. The 

process was highly beneficial to both parties. The first outcome was that the Australian Treasury 

became aware of how their projects were judged on process and results from a professional and 

technical point of view by someone who had no agenda but reporting the truth as they saw it. 

The second and not inconsiderable benefit was to OTA itself, since the process required that we 

determine the relevant areas to evaluate, set criteria and methods to conduct the study, and fairly 

judge the work being done by a peer agency. The process of peer review recommends itself to 

other organizations on the basis of OTA experience. 

3C – Financial Policies and Programs ($91,212,000 from direct appropriations and 

$8,182,000 from reimbursable programs): Offices within the Financial Policies and Programs 

budget activity monitor and provide advice and assistance to the Secretary in the areas of tax 

policy, domestic finance, financial markets, and the regulation of financial institutions. 

Office of Tax Policy (TP) 

The Office of Tax Policy supports the Secretary of the Treasury through the provision of 

technical analysis, economic forecasting, and policy guidance on issues relating to Federal tax 

policy. The office’s analysis also supports the Department’s management of Federal revenues, 

collection of tax revenues due the United States, and Federal debt management; all essential for 

ensuring the integrity of the American financial system. 

 

The Office of Tax Policy has supported the Administration’s health care initiatives through 

significant and timely analysis of taxation and employee benefits issues underlying many health 

and Medicare reform proposals. The Office is currently facing two significant challenges: to 

improve its analytical capabilities by expanding its data systems and economic modeling 

capabilities and to maximize voluntary tax compliance. 

Office of Domestic Finance (DF) 

The mission of the Office of Domestic Finance is to advise and assist the Secretary on the 

domestic financial system and fiscal policy and operations, as well as governmental assets and 

liabilities. The office advises the Secretary on regulations and legislation for financial institutions 

to ensure a resilient and healthy financial sector. The Office of Domestic Finance includes the 

Office of Financial Markets, the Office of Fiscal Policy, the Office of Financial Institutions, the 

Office of Critical Infrastructure Protection, and the Office of Financial Stability. 

DO ‐ 29
3.2.3 Budget and Performance Plan

(Dollars in Thousands)

Financial Policies and Programs Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $24,878 $29,134 $36,038 $48,580 $91,212

Reimbursable Resources 4,304 4,261 5,225 5,225 8,182

Total Resources $29,182 $33,395 $41,263 $53,805 $99,394 

Budget Activity Total $29,182 $33,395 $41,263 $53,805 $99,394 

Financial Policies and Programs Budget 

Activity

 Measure FY 2007 FY 2008 FY 2009 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Audit opinions received on government-wide 1 Discontinued Discontinued Discontinued Discontinued Discontinued

financial statements 

Release Federal Government-wide Yes Yes Meet Deadline Was Met Meet Deadline Meet Deadline

Statements on time (Oe) 

Variance between estimated and actual 2.1 4.6 5 5.5 4.5 4.5

receipts (%) (Oe) 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure 

Description of Performance: As part of managing the government’s central operating account 

and cash position, the Office of Fiscal Projections (OFP) provides forecasts of federal receipts, 

outlays, and debt transactions to ensure that funds are available on a daily basis to cover federal 

payments. To analyze the effectiveness of cash management techniques employed, OFP 

measures the variance between actual and projected government receipts. Given economic 

stimulus efforts, stress in global credit markets, restructuring of the Federal Reserve’s balance 

sheet, a spike in deposit insurance outlays and lower tax receipts associated with the recession, 

forecasts for FY 2009 were not as good as those for FY 2008. The estimated variance for FY 

2009 was 5.5 percent, higher than the 4.6 percent variance in FY 2008 and 5.0 percent target for 

FY 2009. FY 2009 proved a more challenging forecasting year than FY 2008, given the rapid 

rates of decline in key indicators such as employment levels and implementation of tax 

provisions directly impacting receipts such as Making Work Pay. Moreover, any additional 

changes in economic conditions or promulgation of new programs and initiatives will impact 

volatility in government tax receipts. OFP is making significant efforts to assess and improve 

modeling systems to reduce error and return to target error ranges. Targets for FY 2010 and FY 

2011 have been set at 5 percent. OMB revised the accelerated December 15, 2009 deadline to 

February 16, 2010 and we are on target to meet the revised deadline for the FY 2009 Financial 

Report of the United States Government (FR). The statutory deadline for the FR is March 31, 

2010. 

3D – Terrorism and Financial Intelligence ($102,613,000 from direct appropriations and 

$9,484,000 from reimbursable programs): The Office of Terrorism and Financial Intelligence 

(TFI) oversees the Department's functions that strengthen national security with the twin aims of 

safeguarding financial systems against illicit use and combating rogue nations, terrorist 

DO ‐ 30
facilitators, money launderers, drug kingpins, proliferators of weapons of mass destruction, and 

other national security threats. 

The Office of Foreign Assets Control (OFAC)

The Office of Foreign Assets Control (OFAC) is dedicated to carrying out the complex mission 

of administering and enforcing economic and trade sanctions based on U.S. foreign policy and 

national security goals. OFAC administers approximately 30 economic sanctions programs 

against foreign countries, targeted regimes, and entities and individuals. Although these many 

programs differ in terms of their scope and application, they all involve the exercise of the 

President’s constitutional and statutory wartime and national emergency powers to impose 

controls on transactions and trade and to freeze foreign assets that come within the jurisdiction of 

the United States. 

Office of Intelligence and Analysis (OIA) 

The Office of Intelligence and Analysis (OIA) is responsible for the receipt, analysis, collation, 

and dissemination of foreign intelligence and foreign counterintelligence information related to 

the operation and responsibilities of the Department of the Treasury. OIA’s mission is to support 

the formulation of policy and execution of Treasury authorities. OIA executes this mission by 

producing expert intelligence analysis and driving collection on support networks of terrorists, 

weapons of mass destruction proliferators, and other key national security threats and by 

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

security issues. 

The Office of Terrorist Financing and Financial Crimes (TFFC)

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

apparatus for the Office of Terrorism and Financial Intelligence (TFI) on terrorist financing, 

money laundering, financial crime, and sanctions issues. It develops and implements strategies, 

policies, and initiatives to identify and address vulnerabilities in the U.S. and the international 

financial system and to disrupt and dismantle terrorist and WMD proliferation financial 

networks. TFFC collaborates with the other elements of TFI and other Treasury offices and 

works closely with the federal law enforcement community – in particular, IRS criminal 

investigators – as well as with the regulatory community, the private sector, and its counterparts 

abroad to identify and address terrorist financing and WMD proliferation threats.

More specifically, TFFC leads and coordinates the United States representation at international 

bodies dedicated to fighting terrorist financing and financial crime, such as the Financial Action 

Task Force (FATF), and increases our multilateral and bilateral efforts in this field. The office 

advances international standards, conducts assessments, and applies protective countermeasures 

against high-risk foreign jurisdictions and financial institutions. Bilaterally, TFFC works with 

foreign counterparts to craft strategies to jointly attack terrorist financing both globally and 

within specific regions. 

DO ‐ 31
3.2.4 Budget and Performance Plan

(Dollars in Thousands)

Terrorism and Financial Intelligence Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $43,115 $51,904 $62,098 $64,611 $102,613

Reimbursable Resources 3,934 3,866 5,637 5,637 9,484

Total Resources $47,049 $55,770 $67,735 $70,248 $112,097 

Budget Activity Total $47,049 $55,770 $67,735 $70,248 $112,097 

Terrorism and Financial Intelligence 

Budget Activity

 Measure FY 2007 FY 2008 FY 2009 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Increase the number of outreach engagements 85 80 Discontinued Discontinued Discontinued Discontinued

with the charitable and international financial 

communities (Ot) 

Number of countries that are assessed for 6 12 Discontinued Discontinued Discontinued Discontinued

compliance with the Financial Action Task 

Force (FATF) 40 + 9 recommendations (Ot) 

Number of open civil penalty cases that are 296 233 Discontinued Discontinued Discontinued Discontinued

resolved within the statute of limitations 

period (Ot) 

Impact of TFI programs and activities (OE) Baselined 7.81 7.4 7.6

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure 

Description of Performance: 

In FY 2009, the Department discontinued using all of its performance measures that were 

previously reported, as shown in the table above. These measures are now used as indicators for 

the new composite measure that was developed. TFI introduced and began to apply a composite 

performance measure in FY 2009 to improve the assessment of its impact. There are four 

components within the composite measure that align to each office within TFI, each are linked to 

its overall performance goals and the Department’s strategic outcomes. The four focus areas and 

corresponding ratings are; the impact of policy making, outreach, and diplomacy (6.75), the 

impact of economic sanctions (7.7), impact of information and analysis (9.4), and the impact of 

activities to create safer and more transparent financial systems (7.4). The score is based on a 

possible ten points, with low impact being rated at 0-3, medium being 4-7, and high impact being 

scored at 8-10. This performance measure was baselined in FY 2009 with a value of 7.8, or 

medium impact, and has a target of 7.4 for FY 2010 and 7.6 for FY 2011. TFI and the 

Department will continue to refine how the measure is rated and scored. 

3E - Treasury-wide Management and Programs: ($43,426,000 from direct appropriations 

and $6,103,000 from reimbursable programs) The primary role of offices within Treasury-wide

Management (TWM) is to create the conditions which allow Administration priorities and goals 

to be achieved as efficiently and effectively as possible. TWM provides strategic planning and 

develops policy direction in the areas of: human resources; emergency management, privacy, 

records management, civil liberties; information technology security; procurement; and financial 

administration (such as the formulation and management of Treasury's budget). The Department 

DO ‐ 32
develops integrated plans to align policy and operations in order to produce maximum value for 

the American people. 

Treasury-wide Management Programs Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $15,705 $16,384 $21,600 $22,679 $43,426

Reimbursable Resources 2,696 4,295 4,575 4,575 6,103

Total Resources $18,401 $20,679 $26,175 $27,254 $49,529 

Budget Activity Total $18,401 $20,679 $26,175 $27,254 $49,529 

3.2.5 Budget and Performance Plan

(Dollars in Thousands)

Treasury-wide Management and Programs 

Budget Activity

 Measure FY 2007 FY 2008 FY 2009 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Completed investigations of EEO complaints 52 56 50 65 65 65

within 180 days (%) (Oe) 

Percent of complainants informally contacting 29 45 30 35 35 40

Equal Employment Opportunity (EEO) (for 

the purpose of seeking counseling or filing a 

complaint) who participate in the ADR 

Process (%) (Oe) 

Number of material weaknesses closed n/a 2 n/a n/a 1 1

(significant management problems identified 

by GAO, the IGs and/or other bureaus) (Oe) 

Injury and illness rate Treasury-wide - 1 1.29 Discontinued Discontinued Discontinued Discontinued

including DO (Oe) 

Management cost per Treasury employee ($) 29.64 Discontinued Discontinued Discontinued Discontinued Discontinued

(E) 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure 

Description of Performance: DO, through Treasury-wide Management (TWM), is committed to 

building a strong institution that is dedicated to serving the public’s interest and focused on 

delivering results. 

Beginning in FY 2008 the Office of the Deputy Assistant Secretary of Human Resources-Chief 

Human Capital Officer (DASHR-CHCO) identified two performance measures to assess the 

effectiveness of human capital at the Treasury Department. First, how effective is Treasury at 

recognizing employee performance and second does Treasury have the needed talent to achieve 

organizational success? 

There was a change between FYs 2008 and 2009 in SES relationship between performance and 

awards based on the change in the metrics. For 2009, Treasury used the Office of Personnel 

Management’s most recent Pearson’s Correlation Coefficient of .627 based 2008 performance 

data. (The 2009 performance data has not been received yet.) This is a standard metric across 

Federal Government provided by an objective third party. Using this metric provides 

consistency year to year in terms of assessment as well as relativity in terms of performance of 

other federal agencies. 

DO ‐ 33
Similarly a standard federal wide metric that is used to measure the effectiveness of performance 

is the Office of Personnel Management’s Performance Appraisal Assessment Tool (PAAT). 

OPM considers 80 points a “passing score” for agency bureaus. For FY 2009 Treasury received 

an overall score of 73 percent, based on six bureaus receiving a passing score. Agency bureaus 

that did not receive a passing score were required to submit and begin execution of an 

improvement plan. 

Several “indexes” from the 2008 Federal Human Capital survey were used as indicators for 

talent and performance. Treasury received a 59.9 percent overall positive rating for the Talent 

Index and 65.7 percent overall positive rating for the Job Satisfaction Index. For the 

Performance Culture Index, Treasury received an overall positive rating score of 56.8 percent. 

In fiscal 2010 Treasury will review and update all human capital metrics as part of a strategy to 

improvement human capital strategic at the Treasury Department. 

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

individual performance. Building a stronger management infrastructure through Departmentwide management training and by linking organization accomplishments to individual 

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

offers purposeful, challenging work in a constructive performance culture. TWM has laid a 

foundation that is focused on results-oriented performance, leadership succession planning, and 

accountability, not only to maintain the present skills base and diversity in the Department’s 

workforce, but to also meet future human resource needs. The Department-wide focus on 

succession planning looks to ensure that future management acquires appropriate skills to enable 

them to lead the Department in an ever-changing environment. 

The offices comprising the TWM budget activity are committed to ensuring accountability and a 

well understood strategic direction in order to build a world-class organization. In FY 2009, 

offices have worked to objectively monitor their progress toward program outcomes and 

Treasury’s strategic objectives. 

3F – Administration Programs ($0 from direct appropriations and $0 from reimbursable 

programs): Administration Programs provided operational support and shared services to all 

offices within DO, including activities such as accounting, budgeting, human resource 

management, information technology services, procurement services, facilities support, and 

travel services. Approximately one-third of this budget activity was dedicated to information 

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

one-third consisted of shared services: GSA rent, utilities, telecommunications, printing and 

graphics, public transit subsidy, workers compensation, human resources support, and financial 

system support. The final third consisted of employee salaries, routine building maintenance, and 

custodial services. 

DO ‐ 34
DO ‐ 35

Administration Programs Budget Activity

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Resource Level Obligations Obligations Enacted Enacted Request

Appropriated Resources $75,154 $82,630 $91,604 $99,786 $0

Reimbursable Resources 3,028 3,837 17,016 12,216 0

Total Resources $78,182 $86,467 $108,620 $112,002 $0 

Budget Activity Total $78,182 $86,467 $108,620 $112,002 $0 

3.2.6 Budget and Performance Plan

(Dollars in Thousands)

For FY 2011, Treasury has made the decision to allocate administrative expenses for 

Departmental Offices by operational budget activity, instead of maintaining a separate budget 

activity just for administrative expenses. The reallocation will make each of the DO offices 

responsible for the most efficient utilization of their administrative costs and will result in a level 

funding stream allocation for each budget activity, which will be sustained through future years. 

Where necessary, performance assessment will accommodate for this level increase, so that 

performance results will maintain historical comparability with prior years’ results. The 

administrative expenses have been allocated across operational budget activities of the 

Departmental Office budget utilizing various cost-allocation methodologies based upon the type 

of service which is being allocated. 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: 

http://treas.gov/offices/management/budget/
Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

The Departmental Offices (DO) Office of Human Resources (OHR) ensures the availability of 

tools required to manage the human capital that supports accomplishment of DO’s strategic goals 

and mission. OHR does this through the provision of sound advice and guidance to managers and 

execution of processes related to staff employment, retention, recognition, employee and labor 

relations, benefits, performance management, and development. 

FY 2009 Accomplishments

HC Strategic Goal 1: Recruitment and Diversity – Recruit and hire a highly skilled and 

diverse workforce aligned with business goals. In conjunction with this goal, OHR: 

• Supported the quick stand-up of the Office of Financial Stability to allow the Department to 

rapidly implement the authorities of the Emergency Economic Stabilization Act. 

• Successfully facilitated the out-processing and in-processing of political appointees during 

the Presidential transition. 

• Used a variety of hiring flexibilities to help offices effectively fill current positions. (quality 

and time) Flexibilities used includes the on-boarding of the first class of Hamilton Fellows 

(using the Federal Career Intern Program authority), and the use of the Presidential 

Management Fellows Program, the Student Career Experience Program; DO specific 

fellowship programs; and other hiring authorities. 

• Actively supports initiatives aimed at increasing the diversity of its workforce, including the 

hiring of student interns through the Hispanic Association of Colleges and Universities 

National Internship Program and the Washington Internships for Native American Students 

(WINS). 

• Participated in the Treasury-wide Disability Summit and Career Fair. This event provided an 

opportunity for human capital leaders, recruiters and hiring managers share best practices on 

recruiting and hiring of individuals with targeted disabilities. It also connected DO Program 

Offices with qualified candidates with disabilities. 

HC Strategic Goal 2: Employee Retention and Satisfaction – Retain a high performing 

workforce while maintaining an environment conducive to a high level of employee satisfaction. 

In conjunction with this goal, OHR: 

• Facilitated the implementation of the first collective bargaining agreement with the National 

Treasury Employees Union (NTEU) by providing training to managers and employees. 

• Continued to provide programs to improve employee understanding of benefit programs to 

ensure they can make more informed choices, including hosting a health and wellness fair 

and several “Benefits Brown Bag” sessions. 

• Contracted with an outside vendor to provide several retirement seminars in anticipation of 

the large number of DO employees eligible to retire within the next five years

• Updated the New Employee Orientation program to include Department-wide awareness so 

new employees understand and take pride in overall Treasury mission. 

DO ‐ 36
• Developed a quick reference guide, entitled “The Keys to the Treasury”, to help orient all 

new DO employees. The guide provides critical information pertaining to employee services 

and resources. 

• Piloted an automated exit survey to identify the reasons why individuals are leaving DO. 

This survey results will help identify employee engagement and job satisfaction issues and 

provide valuable information for developing solutions. 

• Implemented the Treasury Learning Management System (TLMS), an online learning system 

that provides employees with training at no cost for program offices. 

HC Strategic Goal 3: Organizational Effectiveness – To achieve organizational effectiveness; 

accomplish mission objectives through the alignment of human capital plans, strategies, and 

systems. In conjunction with this goal, OHR: 

• Implemented the e-OPF (Electronic Official Personnel Folder) initiative as mandated by 

OPM and OMB. Electronic employment files will enhance the maintenance and retrieval of 

employment data and ensure timely and secure transfer of employees’ employment data. 

HC Strategic Goal 4: Highly effective human capital practitioners – Work as key partners 

with the Department’s leaders to ensure effective human capital management is a strategic 

business component in achieving the Department’s mission. In conjunction with this goal, OHR: 

• Hired Senior HR Specialists (HR Business Partners) to provide DO program offices with a 

single point of contact that could provide focused attention and human capital consultation. 

o The HR Business Partner transforms the HR Specialist from a transactional, rulesbased posture to one more consultative and advisory. 

FY 2011 Challenges

In FY 2011 OHR will face a number of human capital challenges: 

Challenge: Competition from the private sector and other government agencies for high quality 

candidates for mission-critical positions, such as intelligence analysts, economists, and 

information technology specialists. 

Strategies for Addressing Challenge 

• Increase education about, and support of, a variety of hiring and retention flexibilities and 

incentives, e.g., direct hire authority, superior qualifications appointments, recruitment 

incentives, student loan repayments, retention allowances, alternative work arrangements, 

and other work life programs. 

• Enhance workplace flexibilities and employee assistance programs to attract high quality 

applicants, increase employee job satisfaction/engagement, and enhance retention. 

Challenge: The loss of institutional knowledge through retirement, particularly for critical 

subject matter experts, managers, and senior executives. 

DO ‐ 37
DO ‐ 38

Strategies for Addressing Challenge 

• Lead a workforce planning effort throughout DO to determine leadership bench strength as 

well as supporting leadership and executive development programs that help identify and 

prepare a cadre of future leaders. 

• Coordinate with DO program offices to identify succession issues and develop appropriate 

strategies, emphasizing an overall need to conduct workforce planning to transition and 

maintain technical knowledge. 

• Implement a broad, systematic approach whereby both line staff and management can assess 

individual staff training needs and funding each year. 

• Make broad use of programs to attract and potentially hire private sector retirees who have an 

interest in public service as a second career, and use authorities to hire reemployed annuitants 

who have the skill sets to fill key positions while recruitment efforts are underway to hire 

new talent. 

• Analyze Employee Viewpoint surveys and exit survey results to determine employee 

dissatisfaction and develop actions plans that will address issues, improving retention of key 

talent. 

Challenge: Continue to develop a results-oriented performance management culture within DO. 

Strategies for Addressing Challenge

• Monitor the revised performance management policy to ensure commitments are clearly 

linked to organizational goals, are measurable, and are results-based. 

• Conduct reviews of DO program offices to ensure employees have performance plans and 

are receiving timely and meaningful feedback from their supervisors. 

• Ensure performance awards are based on objective, relevant, merit-based criteria and 

distributed in a fair manner. 

• Provide ongoing workshops and guidance to program offices on how to develop appropriate 

performance commitments that meet the criteria of the OPM certification process. 

• Enhance the use of e-performance tools. 
4.1 – Summary of IT Resources Table 

Dollars in Thousands 

4.1 Summary of IT Resources Table

Dollars in ThousandsInformation Technology Investments 1/

FY 2008 FY 2009 FY 2010 

% Change % Change 

from FY08 to from FY09 to 

Major IT Investments/Funding Source Budget Activity Enacted Enacted FY09 Enacted FY10 

Treasury Foreign Intelligence Network (TFIN)

Departmental Offices Salaries and Terrorism and Expenses Financial Intelligence $3,000 $3,060 2.0% $4,337 41.7% Department-wide Systems Capital Terrorism and Investments Program (DSCIP) Financial Intelligence $0 $0 0.0% $2,000 0.0% 

Alpha Computers Modeling Systems

$0 $0 0.0% $0 0.0% 

Enterprise Content Management

Department-wide Systems Capital Investments Program (DSCIP) $6,000 $6,000 0.0% $0 -100.0% 

Federal Financial Transformation Program

Department-wide Systems Capital Investments Program (DSCIP) $0 $0 0.0% $0 0.0% 

Subtotal, Major IT Investments $9,000 $9,060 0.7% $6,337 -30.1% Non-Major IT Investments $6,979 $9,018 29.2% $7,514 -16.7% Infrastructure Investments $0 $0 N/A $0 N/A Enterprise Architecture (DSCIP) $400 $1,000 150.0% $0 -100.0% 

Total IT Investments $16,379 $19,078 16.5% $13,851 -27.4% 

1/ The TFIN percentage increase reflects the transfer of funds from the DSCIP account.2/ This chart includes appropriated resources only and may not reflect total project costs.3/ This column reflects TFIN transfer request of total funding for FY114/ The Departmental Offices S&E funds include MCL amounts

DO ‐ 39
DO ‐ 40

4B – Information Technology Strategy 

The Department is extremely reliant on its Information Technology infrastructure. It is upon this 

infrastructure (e.g., data centers, networks and servers) that more than $8 trillion dollars in debt 

are managed, more than $2 trillion in revenue is collected and more than $58 billion in daily cash 

transactions are performed. It is the cost associated with this same infrastructure however, that 

represents one of the greatest opportunities the Department has for parlaying the savings from 

greater efficiency to the deployment of new capabilities. The Department overall spends 

approximately $1.1 billion on IT infrastructure which is roughly one third of our total IT 

spending. A 2008 Gartner Group benchmarking study suggests that Treasury could achieve cost 

savings of up to $200 million if the Department maximized all infrastructure optimization and 

consolidation opportunities. Ferreting out and taking advantage of these potential cost savings is 

not only good management, but is necessary if the Department is to effectively field the new 

capabilities required to support the Department's expanding financial and economic missions. 

Background

The core challenge to realizing these savings lies in the delicate balance of optimizing cost 

efficiency while still enabling the autonomous and agile delivery of capability against the, at 

times, extremely disparate missions of the bureaus comprising the Department. In light of this, 

the Treasury E-Board has endorsed the following multi-faceted strategy for assessing and 

executing against the opportunities that exist for reducing the cost of the Department’s IT 

infrastructure. 

• Converge our voice and data networks to a more capable and cost effective platform

Treasury currently operates the largest private, secured civilian government network in 

the United States. While the reliability and security of these networks is critical to the 

Department's mission, these networks also represent a significant component of 

Treasury's overall IT Infrastructure expense. Furthermore, newer managed service type 

offerings built on digitally converged networks allow for the secure provisioning and 

management of voice, data, fax and video services in a much more cost effective manner 

than Treasury enjoys today. In light of this, Treasury is actively migrating to a newer, 

managed service type offering. Once completed, this migration will enable the 

Department to quickly tailor specific features and functionality to the needs of a 

particular bureau, team or individual based on their mission objectives, security 

requirements and geographic location. It will also allow Treasury to aggressively manage 

the unit costs of these services. 

• Expand the usage of virtualization technologies to further improve the cost efficiency of 

our computing centers

Treasury currently manages several different server and mainframe technologies to 

operate its IT infrastructure. The costs associated with these server technologies vary 

tremendously and current utilization rates indicate there are clear opportunities for 

improved consolidation and increased, overall hardware utilization. Building on our 
current successes in leveraging virtualization technologies, we will continue to deploy 

these technologies in both our server and desktop environments to further drive down 

unit costs and improve the agility with which computer platforms can be provisioned. 

• Promote greater leverage of either Department-wide or multi-bureau IT capabilities (i.e., 

data centers, enterprise content management, etc.)

As disparate as the missions of the Bureaus comprising the U.S. Department of the 

Treasury can be, there are also significant opportunities for creating and leveraging 

capabilities that are shared across more than one Bureau. This includes data centers, help 

desks, or common applications (i.e., human capital, enterprise content management, 

business analytics platforms, etc.) Treasury will be extremely aggressive in identifying, 

rationalizing and executing against these opportunities for providing greater functionality 

at a lower unit cost. 

• Ensure the usage of cross enterprise licensing for commodity software and hardware

Treasury Bureaus and Offices have traditionally sole sourced licenses for various IT 

related products and services which have at times resulted in disparate fee schedules and 

inconsistent vendor performance. Treasury will aggressively pursue enterprise level 

agreements in an effort to provide reduced licensing fees, better product and agreement 

terms, and more consistent vendor performance. 

 

DO ‐ 41
DO ‐ 42

4.2 – Program Evaluation 

• The program had not yet instituted annual performance goals to determine the 

effectiveness 

• The program lacked long-term performance goals with specific targets 

Assessment and Improvement Actions

Program Name:Economic and Trade Sanctions Program - OFAC

• The program was lacking unit cost measures of its sanctions 

Bureau Actions Planned or Underway

TFI introduced and began to apply a composite performance measure to improve the assessment 

of its impact. There are four components within the composite measure aligned to each office 

within TFI that are linked to its overall performance goals and the Department’s strategic 

outcomes. This performance measure was baselined in FY 2009 and has a target of 7.14 for FY 

2010 and FY 2011. TFI and the Department will continue to refine how the measure is rated and 

scored.