DO - 1 

Departmental Offices 

Mission Statement 

The Departmental Offices mission is to serve the American people and strengthen 

America’s national security by managing the U.S. Government’s finances effectively, 

promoting economic growth and stability, and ensuring the safety, soundness, and 

security of the global financial system. 

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2008 FY 2009 FY 2010 

 Enacted ARRA 1/ Enacted Request $ Change % Change 

 Executive Direction $20,749 $0 $21,619 $22,383 $764 3.53% 

 Economic Policies and Programs $44,242 $0 $45,910 $44,749 ($1,161) -2.53%

 Financial Policies and Programs $29,465 $1,000 $36,038 $47,580 $11,542 32.03%

 Terrorism and Financial Intelligence $56,775 $0 $62,098 $64,611 $2,512 4.05% 

 Treasury-wide Management and Programs $18,505 $130,000 $21,600 $22,779 $1,179 5.46%

 Administration Programs $78,624 $0 $91,604 $100,286 $8,682 9.48% 

Total Appropriated Resources $248,360 $131,000 $278,870 $302,388 $23,518 8.43% 

Total FTE 1,133 892 1,204 1,266 62 5.19% 

1/ ARRA funding includes $123 Million for IRS and $7 Million for FMS. FTE level reflects peak in FY 2010. 

FY 2010 Priorities 

The FY 2010 budget request supports the Departmental Offices (DO) leading role in 

accomplishing key Departmental priorities: 

• U.S. and World Economies Perform at Full Economic Potential – The 

Departmental Offices will maintain America’s strength and prosperity by 

developing and implementing policies that encourage economic growth, protect 

key financial infrastructure, and ensure sound and secure investment in the U.S. 

economy. In support of this priority, DO will increase both staff and analytical 

resources for the Office of Domestic Finance, particularly in the areas of housing 

finance, small business and capital markets. 

• Effectively Managed U.S. Government Finances – The Departmental Offices 

will dedicate significant resources to increase staffing in the Office of Tax Policy 

in order to improve technical analysis, economic forecasting, and policy guidance 

on issues relating to Federal tax policy. The Departmental Offices will also 

continue implementing more efficient and refined debt management tools to 

produce taxpayer savings. 
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• Prevent Terrorism and Promote the Nation’s Security Through Strengthened 

International Financial Systems – The Treasury Department Office of Terrorism 

and Financial Intelligence (TFI) safeguards the financial system against illicit use 

and leverages the power of the U.S. financial system and financial intelligence to 

combat rogue nations, terrorist facilitators, weapons of mass destruction (WMD) 

proliferators, money launderers, drug kingpins, and other national security threats. 

• Management and Organizational Excellence – The Departmental Offices will 

develop integrated plans to align policies and operations in order to achieve 

efficiencies that maximize resources for the American people. In support of this 

goal and to accommodate the new staff in various policy offices, Treasury will 

increase staffing in key management offices. 
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Table of Contents 

Departmental Offices........................................................................................................ 1

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................................. 10

2.1 – Budget Adjustments Table................................................................................... 10 

2A – Budget Increases and Decreases Description ...................................................... 10 

2.2 – Operating Levels Table........................................................................................ 13 

2.3 – Appropriations Detail Table ................................................................................ 14 

2B – Appropriations Language and Explanation of Changes....................................... 14 

2C – Legislative Proposals ........................................................................................... 16 

Section 3 – Budget and Performance Plan ................................................................... 18

3.1 – Budget by Strategic Goal..................................................................................... 18 

3.2.1 – Executive Direction Budget and Performance Plan ......................................... 19 

3.2.2 – Economic Policies and Programs Budget and Performance Plan..................... 20 

3.2.3 – Financial Policies and Programs Budget and Performance Plan...................... 22 

3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan ............... 24 

3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan ..... 25 

3.2.6 – Administration Programs Budget and Performance Plan................................. 28 

Section 4 – Supporting Materials .................................................................................. 29

4A – Human Capital Strategy Description ................................................................... 29 

4.1 – Summary of IT Resources Table ......................................................................... 33 

4B – Information Technology Strategy ........................................................................ 34 

4.2 – Program Assessment Table.................................................................................. 36 
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 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 such critical areas as economic and financial policy, terrorism and 

financial intelligence, financial crimes, and general management. The Secretary of the 

Treasury has the primary role in 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 the nation's financial 

markets, and ensures the government's ability to collect revenue. 

The Fiscal Year 2010 budget request supports DO’s leading role in accomplishing key 

goals: 

• 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 maintains America’s economic strength and prosperity through the 

development and implementation of policies that encourage overall economic 

growth. These policies foster innovation, enabling a growth in productivity that 

will raise America’s standard of living. 

• Strengthening National Security – The Departmental Offices leads 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 implements 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. 

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

conditions that allow its programs and activities to perform efficiently and 

effectively, while continuing to drive results through performance and cost-based 

decision-making. 
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1B – Program History and Future Outlook 

Treasury's Departmental Offices (DO) not only supports the President's economic policy 

agenda, but maintains diligent administrative and management support necessary for 

future success. 

Securing America’s Economic and Financial Future – The Department serves in the 

lead policy role in promoting a prosperous U.S. and world economy by raising standards 

of living and protecting the global economy and financial systems. The Department 

strives to maintain America’s economic strength and prosperity by developing and 

implementing policies that encourage overall economic growth, protect the financial 

infrastructure, and ensure sound investment in the U.S. economy. 

The ongoing housing crisis has reverberated throughout the U.S. financial system, 

severely impacting the U.S. economy. A lack of confidence among lenders has strained 

capital markets making it harder to obtain student loans, auto loans, home loans, and 

business loans. Restoring America’s confidence in capital markets is essential to the 

long-term health of the U.S. economy. Significant efforts were taken by Treasury this last 

year to address financial market difficulties and mitigate effects on the overall economy, 

all in an support of the five goals of the Financial Stability Plan:. 

• Restore confidence in the strength of the U.S. financial system: 

o Treasury participated in development and implementation of the 

Emergency Economic Stabilization Act of 2008 (EESA)

o Treasury had an active role in finding solutions for troubled nondepository financial institutions, including providing direct financial 

assistance through EESA programs 

o Treasury provided substantial financial support to Fannie Mae and Freddie 

Mac 

• Restart the flow of credit critical to financing American households and 

businesses: 

o Treasury launched the Consumer and Business Lending Initiative to help 

catalyze issuance of securities backed by student loans, credit cards, small 

businesses, auto loans, corporate and commercial real estate loans 

o Treasury established a Temporary Guarantee Program for money market 

funds 

o Treasury developed a program to set up funds to provide a market for the 

legacy loans and securities that currently burden the financial system 

• Preserve homeownership and avoid preventable foreclosures: 

o Treasury participated in Federal Housing Administration modernization 

o Treasury established the Making Home Affordable Program 

o Treasury participated in the development and implementation of 

temporary tax relief for mortgage holders: 

• Restore net jobs creation and positive economic growth: 

o Treasury participated in the development and implementation of the

American Recovery and Reinvestment Act of 2009

• Safeguard taxpayer interests: 
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o Treasury implemented a series of reforms to improve the transparency, 

accountability and oversight of EESA 

o Treasury instituted executive compensation reforms for those institutions 

receiving EESA funding 

The Treasury Department is committed to playing an active role in building a healthy, 

more stable, and more competitive economic system that encourages people to invest, 

innovate, create jobs, and build stronger communities and better lives. 

To accomplish this mission and because of the unprecedented economic downturn, it has 

and will require action on a scale that has not been seen in a generation – and it will 

require more high quality people to execute this vision. This budget request provides the 

resources needed to increase staffing in the policy offices that support financial stability 

activities. 

Treasury also coordinated the U.S. policy agenda for the U.S.-China Strategic Economic 

Dialogue. Key achievements during the December 2007 and June 2008 meetings 

included: 

• Launching of bilateral investment treaty negotiations to help open new 

opportunities for U.S. and Chinese investors; 

• Signing of a Ten-Year Energy and Environment Cooperation Framework focused 

on creating a new energy-efficient model for sustainable economic development; 

• Reaching agreements to further open financial markets in the areas of banking, 

insurance, and securities; 

• Expanding coordination on management of product quality and food safety; 

• Expanding efforts to address economic imbalances related to trade, investment, 

and exchange rates; and 

• Establishing guidelines to improve transparency in administrative rule-making 

and innovation policy. 

Managing the Government’s Finances – Managing the U.S. government’s monetary 

resources is Treasury’s primary mission. Many critical aspects of this function fall under 

the scope of DO, including the determination of domestic and international economic 

policy and debt management. 

In fiscal year 2008 as part of the Cash Debt Management Modernization Initiative, 

Domestic Finance introduced the New Treasury Automated Auction Processing System 

(NTAAPS). The Department conducted more than 200 auctions, resulting in the issuance 

of over $5.6 trillion in marketable securities. Treasury successfully resumed the issuance 

of the 52-week bill on a monthly basis to meet increased demand for borrowing. 

Additionally, the minimum bid at Treasury auctions was reduced from $1,000 to $100 to 

broaden the potential investor pool. 

Domestic Finance has successfully provided support to the President’s Working Group 

on Financial Markets (PWG) through drafting and coordinating clearance/issuance of the 

PWG’s Policy Statement on Financial Market Developments (released in March 2008). 
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This statement addresses financial market turmoil and related issues, such as: the 

mortgage origination process, ratings processes and practices regarding structured credit 

and other securitized credit products, and global financial institutions’ risk management 

practices. In addition, Domestic Finance facilitated and contributed to the work of 

private-sector committees on issues related to private pools of capital and hedge funds, 

including: the Best Practices Reports issued for public comment by the Asset Managers’ 

Committee and Investors’ Committee in April 2008, PWG Financial Market 

Preparedness Plan Update. 

To improve international tax administration, the Treasury Department is examining how 

best to support individual and corporate taxpayers and effectively deal with tax issues 

associated with globalization. In fiscal year 2008, Treasury issued guidance addressing 

offshore and cross-border compliance risks. Collaboration with foreign tax 

administrators was expanded by the addition of Japan’s National Tax Agency to the Joint 

International Tax Shelter Information Centre, an organization created by the tax agencies 

of the U.S., Britain, Canada, and Australia to identify and curb abusive cross-border 

transactions. 

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 2008, Treasury issued a precautionary advisory and an online warning to U.S. 

banks about the risks of doing business with Iran. Specific attention focused on the 

Central Bank of Iran, which has engaged in deceptive financial conduct. The majority of 

the world’s leading financial institutions have dramatically scaled back or severed their 

relationships with Iranian banks in response to the mutually reinforcing actions taken by 

the public and private sectors. In addition, in January 2008, Treasury designated two 

Zimbabwean entities and two individuals as part of an increased effort to pressure those 

who are aiding Robert Mugabe. 

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

economic sanctions against foreign narcotics trafficking worldwide. In fiscal year 2008, 

Treasury designated 15 key commanders of FARC (Revolutionary Armed Forces of 

Colombia) leadership, parts of the FARC’s money laundering network, senior 

Venezuelan officials supporting the FARC, and members of the FARC’s international 

committee. Four successive actions throughout the year focused on disrupting FARC's 

money laundering operations through the international financial system. 

Treasury led or co-chaired several important working groups within the Financial Action 

Task Force (FATF) that produced valuable guidance and reports for identifying and 

addressing these vulnerabilities in the international financial system, including Iran, 

Pakistan, Sao Tome and Principe, Turkmenistan, Uzbekistan, and Turkish occupied 

northern Cyprus. 
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Finally, Treasury enhanced its efforts to provide timely, accurate, actionable, and policyrelevant intelligence analysis on the financial underpinnings of threats to national 

security. This analysis took the form of tactical and strategic assessments to inform 

policymaking and support enforcement actions. 

Producing Effective Results – The Department continues to provide effective 

management tools necessary to execute its mission. Essential components required for 

achieving the Department’s mission include human resources, emergency planning, 

information technology, financial services, and procurement. 

The Treasury Department provides a secure information technology infrastructure. 

Treasury strengthened its networks by tightening security policies and implementing 

safeguards to reduce exposure to Internet-based threats. In fiscal year 2008, Treasury 

made significant progress in strengthening security configuration management. 

 

Treasury is committed to maintaining, collecting, using, and disseminating information 

necessary to carry out its mission. The newly created Office of Privacy and Treasury 

Records will ensure that Treasury has a system in place to serve and inform the public 

and will strengthen the Department’s compliance with privacy and disclosure 

requirements. 

Treasury’s Office of the Assistant Secretary for Management and Chief Financial Officer 

(CFO), and the Office of Financial Stability (OFS) Office of the CFO are developing the 

financial and accounting aspects of the Emergency Economic Stabilization Act of 2008 

(EESA). The EESA has provided authority to the Secretary of the Treasury to establish 

the Troubled Asset Purchase Program (TARP) under OFS, to “purchase, and to make and 

fund commitments to purchase troubled assets from any financial institution, on terms 

and conditions as are determined by the Secretary.” 

The TARP currently includes a capital purchase program, public-private investment fund, 

systemically significant failing institutions program, consumer and business lending 

initiative, home affordable modification program, targeted investment program, 

automotive industry financing program, and an asset guarantee program. Treasury is 

addressing complex issues, such as how to: 

• Value the various types of assets to be purchased under the TARP’s authority; 

• Model the associated cash flows related to the assets to be purchased under the 

TARP’s authority; 

• Report the TARP accurately, fairly, and transparently on the OFS’ and the 

Department’s financial statements in accordance with Generally Accepted 

Accounting Principles (GAAP); and 

• Account for capital infusions and equity positions in financial institutions under 

the Capital Purchase Program. 

• Measure how effectively TARP funds achieve Treasury’s primary economic goals 
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Treasury will work with its partners to determine fair market value of the assets it 

purchases through the TARP program. This work began in early fiscal year 2009. 

Treasury plans to work closely with the Federal Accounting Standards Advisory Board 

(FASAB) to ensure that TARP financial reporting maintains consistency with appropriate 

accounting and financial reporting standards. 

While there have been significant accomplishments in fiscal year 2008 and the first half 

of FY 2009, more work remains to be completed to implement Treasury’s new 

authorities. The Department will exercise its stewardship, accountability, and 

transparency to perform its work on behalf of the American people. This work is 

accomplished through Treasury’s talented and dedicated workforce. 
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Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Departmental Offices - S & E FTE Amount

FY 2009 Enacted 1,204 278,870

Changes to Base: 

Maintaining Current Levels (MCLs): - $4,913

Across the Board program reduction - (1,464)

Non-Pay Inflation Adjustment - 1,531

Pay Annualization - 1,587

Pay Inflation - 3,259

Initiative Annualization: 10 $1,731

DF - Debt Management Office Analytical Support 2 307

GSE Support 4 464

OGC - General Counsel Support for CFIUS 2 338

OIA - Counterintelligence and Security Capabilities Enhancement 3 622

Subtotal FY 2010 Changes to Base 10 $6,644

Total FY 2010 Base 1,214 285,514

Program Changes: 

Program Reinvestment: (4) ($2,110)

International Affairs Reduction (4) (2,110)

Program Increases: 56 $18,984

Domestic Finance Staffing 26 8,731

Tax Policy Staffing 15 4,863

Management Staffing 13 3,000

Recovery Act Program Support 1 400

Afghanistan Threat Finance Cell and International Dues 1 790

CIO Treasury Foreign Intelligence Network (TFIN) - 1,200

Subtotal FY 2010 Program Changes 52 $16,874

Total FY 2010 President's Budget Request 1,266 302,388

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...........................................+$4,913,000 / +0 FTE 

Across the Board Program Reduction -$1,464,000 / +0 FTE 

Across the Board Program Reduction to reflect efficiency savings. 

Non-Pay Inflation Adjustment +$1,531,000 / +0 FTE 

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

equipment and GSA rent. 

Pay Annualization +$1,587,000 / +0 FTE 

Funds are requested for the FY 2010 cost of the January 2009 pay raise. 

Pay Inflation +$3,259,000 / +0 FTE 

Funds are requested for the FY 2010 pay increase. 

Initiative Annualization ...............................................................+$1,731,000 / +10 FTE 

DF - Debt Management Office Analytical Support +$307,000 / +2 FTE 

Annualization of the FY 2009 Domestic Finance initiative to modify the debt 

management system and provide dedicated analytical staff. 
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GSE Support +$464,000 / +4 FTE 

Annualization of the FY 2009 Domestic Finance initiative provided for the execution and 

management of the Government Sponsored Enterprises (GSE) program. The funding is 

used for program personnel and their administrative expenses, as well as audit and 

consulting services. 

OGC - General Counsel Support for CFIUS +$338,000 / +2 FTE 

Annualization of the FY 2009 initiative which provided legal support to the Office of the 

Assistant General Counsel (OGC) for IA. Additional resources will enable IA and OGC 

to meet the increased demand to support clients on the Treasury-chaired Committee on 

Foreign Investment in the United States. 

OIA - Counterintelligence and Security Capabilities Enhancements +$622,000 / +3 FTE 

Annualization of the FY 2009 initiative which augmented the Department’s efforts to 

address current and emerging threats that affect its national security mission. These 

include: preventing espionage in the Department; thwarting adversarial threats to our 

personnel, programs, and facilities; and identifying and mitigating threats from 

compromise of Treasury critical programs or theft. 

Program Reinvestment ....................................................................-$2,110,000 / -4 FTE 

International Affairs Reduction -$2,110,000 / -4 FTE 

The Department considers its attaché program to be a valuable asset for building 

relationships with foreign officials and working with local U.S. industry and agency 

representatives to advance U.S. interests, but it does recognize that with current economic 

conditions a partial amount of the funding for this program must be realigned to other 

offices that are focused on the domestic economic situation. The Department has 

identified funds in the attaché program, and will reallocate these resources to meet the 

increased workload on the Office of Domestic Finance for the initiative described in the 

program increases section below. 

Program Increases .....................................................................+$18,984,000 / +56 FTE 

Domestic Finance Staffing +$8,731,000 / +26 FTE 

In order to meet current and future economic challenges, Treasury must maintain a vast 

expertise is complex finance and government fields, particularly housing finance, small 

business and capital markets. In support of this objective, this initiative will fund 

additional staff in the Office of Domestic Finance, including two new Deputy Assistant 

Secretary (DAS) positions: one DAS for Housing Finance, Small Business and Consumer 

Issues and one DAS for Capital Markets. . The two DASs will lead teams designed to 

support the economic research and modeling for these critical areas. 

Tax Policy Staffing +$4,863,000 / +15 FTE 

To ensure Treasury possesses capabilities sufficient to support rigorous analysis and 

implementation of revenue policy, the Budget includes funding for an additional 15 tax 

specialists in Treasury’s Office of Tax Policy. These new tax specialists will apply tax 

expertise in of the following key areas: (1) the financial crisis; (2) the financial stimulus 

plan; (3) climate change; and (4) health care reform. 
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Management Staffing +$3,000,000 / +13 FTE 

DO has identified a number of staffing shortfalls in the areas of Treasury-wide human 

capital, IT and procurement policy. The Office of the Chief Information Officer (OCIO) 

needs additional staff to support the increasingly sophisticated technology needs of 

Treasury leadership and policy offices. As the Department takes on broader and more 

complex financial and fiscal issues, policymakers and advisors require more IT support 

and programs for their work to effectively meet these needs. The new staff will support 

the implementation of new procurement requirements associated with the 

Administration's efforts for increased transparency in Federal contracting, as well as 

provide additional support to process large, complex IT contracts. In addition, the 

additional HR staff and privacy directives staff will ensure that Treasury’s directives, 

both for HR and otherwise, are codified and made accessible to Treasury employees. 

Recovery Act Program Support +$400,000 / +1 FTE 

In accordance with sections 1602 and 1603 of the American Recovery and Reinvestment 

Act of 2009 (Recovery Act), the Secretary is implementing two new grant programs: (1) 

Grants to States for Low-Income Housing Projects in Lieu of Low-Income Housing Tax 

Credits and (2) Grants for Specified Energy Property in Lieu of Tax Credits. Funding is 

requested to continue the administration of these programs in FY 2010. 

Afghanistan Threat Finance Cell and International Dues +$790,000 / +1 FTE 

Resources are requested to provide designated Treasury staff for the Afghanistan Threat 

Finance Cell and support annual dues to international anti-money laundering 

organizations. The Afghanistan Threat Finance Cell (ATFC) was established in FY 2009 

on the model of the successful Iraq Threat Finance Cell as a joint Treasury, State and 

Defense Department initiative. Treasury requests resources to provide one dedicated, 

full-time staff member for this important effort. Treasury leads the United States 

delegation to the Asia-Pacific Group and the Financial Action Task Force, international 

bodies dedicated to combating money laundering and terrorist financing, and 

strengthening the financial systems of member states. Treasury requests funds to support 

dues payments. 

CIO Treasury Foreign Intelligence Network (TFIN) +$1,200,000 / +0 FTE 

Provide on-going Operations and Maintenance (O&M) support for the TFIN system, 

including program management, O&M managed services provider contractor support, 

telecommunications and circuit costs, hardware and software maintenance, and 

technology refresh. 
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2.2 – Operating Levels Table 

Appropriation Title: DO Salaries and Expenses FY 2008 

Enacted

FY 2009 

ARRA

FY 2009 

President's 

Budget Cong. Action

FY 2009 

Enacted

FY 2010 

President's 

Budget

% Change FY 

2009 to FY 

2010

FTE 1,133 1,200 4 1,204 1,266

Object Classification:

11.1 Full-Time Permanent Positions............................... $112,378 $15,000 $130,297 1,011 $131,308 $145,562 10.9%

11.3 Other than Full-Time Permanent Positions.............. 2,781 50,000 2,781 2,781 2,781 0.0%

11.5 Other Personnel Compensation.............................. 197 1,000 197 197 197 0.0%

11.8 Special Personal Services Payments...................... $0 0 0 0 0 0.0%

11.9 Personnel Compensation (Total)......................... $115,356 $66,000 $133,275 $1,011 $134,286 $148,540 10.6%

12.0 Personnel Benefits.................................................. 23,843 27,000 28,377 28,377 28,861 1.7%

13.0 Benefits to Former Personnel.................................. 000 0 0

Pay 139,199 93,000 161,652 1,011 162,663 177,401 9.1%

21.0 Travel...................................................................... 6,790 2,000 5,047 5,047 5,286 4.7%

22.0 Transportation of Things......................................... 0 0 0 0.0%

23.1 Rental Payments to GSA........................................ 5,239 4,000 4,000 5,427 0.0%

23.2 Rent Payments to Others........................................ 0 0 - 0.0%

23.3 Communications, Utilities, & Misc........................... 7,967 17,000 14,058 54 14,112 14,889 5.5%

24.0 Printing and Reproduction....................................... 2,715 4,000 2,715 2,715 2,715 0.0%

25.1 Advisory & Assistance Services.............................. 51,055 37,699 3,882 41,581 47,213 13.5%

25.2 Other Services........................................................ 9,724 14,000 19,229 19,229 19,229 0.0%

25.3 Purchase of Goods/Serv. from Govt. Accts............ 18,840 22,249 22,249 22,249 0.0%

25.4 Operation & Maintenance of Facilities..................... 900 900 900 900 0.0%

25.5 Research & Development Contracts....................... 0 0 0 0 0.0%

25.6 Medical Care........................................................... 0 0 0 0.0%

25.7 Operation & Maintenance of Equipment.................. 1,000 1,000 1,000 1,000 0.0%

25.8 Subsistence & Support of Persons.......................... 0 0 0 0 0.0%

26.0 Supplies and Materials............................................ 3,857 3,426 4 3,430 3,498 2.0%

31.0 Equipment............................................................... 1,073 1,000 1,920 24 1,944 2,581 32.7%

32.0 Lands and Structures.............................................. 0 0 0 0 0.0%

33.0 Investments & Loans............................................... 0 0 0 0 0.0%

41.0 Grants, Subsidies.................................................... 0 0 0 0 0.0%

42.0 Insurance Claims & Indemn.................................... 0 0 0 0 0.0%

43.0 Interest and Dividends....................................... 0 0 0 0 0.0%

44.0 Refunds................................................................... 0 0 0 0 0.0%

Non-Pay 109,161 38,000 112,243 3,964 116,207 124,987 7.6%

Total Budget Authority................................................ $248,360 $131,000 $273,895 $4,975 $278,870 $302,388 8.4%

Budget Activities:

Executive Direction $20,749 $21,592 $27 $21,619 $22,383 3.5%

Economic Policies and Programs 44,242 45,852 58 45,910 44,749 -2.5%

Financial Policies and Programs 29,465 1,000 34,737 1,302 36,038 47,580 32.0%

Terrorism and Financial Intelligence 56,775 61,710 388 62,098 64,611 4.0%

Treasury-wide Management and Programs 18,505 130,000 19,009 2,592 21,600 22,779 5.5%

Administration Programs 78,624 90,995 609 91,604 100,286 9.5%

Total Budget Authority................................................ $248,360 $131,000 $273,895 $4,975 $278,870 $302,388 8.4%

0.0%
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2.3 – Appropriations Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Newly Appropriated Resources:

Executive Direction Programs 129 $20,273 129 $20,749 131 $21,619 132 22,383 1.15% 3.53%

Economic Policies and Programs 244 41,852 244 44,242 247 45,910 243 44,749 -1.62% -2.53%

Financial Policies and Programs 194 29,134 194 29,465 1 $1,000 199 36,038 244 47,580 22.61% 32.03%

Terrorism and Financial Intelligence 308 51,904 308 56,775 342 62,098 346 64,611 1.17% 4.05%

Treasury-wide Management Policies and Programs 99 16,384 99 18,505 891 130,000 101 21,600 109 22,779 7.92% 5.46%

Administration Programs 160 82,630 160 78,624 185 91,604 192 100,286 4.07% 9.48%

Subtotal Newly Appropriated Resources 1,133 242,176 1,133 248,360 892 131,000 1,204 278,870 1,266 302,388 5.15% 8.43%

Other Resources:

Offsetting Collections - Reimbursable 90 $20,931 90 $19,800 0 $0 137 $38,642 137 $33,842 0.00% -12.42%

Subtotal Other Resources 90 20,931 90 19,800 0 0 137 38,642 137 33,842 0.00% -12.42%

Total Resources Available for Obligation 1,223 $263,107 1,223 $268,160 892 $131,000 1,341 $317,512 1,403 $336,230 4.63% 5.90%

% Change

Obligations Enacted

FY 2009

ARRA 1/

FY 2008 FY 2009 FY 2010 FY 2009

Resources Available for Obligation Request to FY 2010

FY 2008

Enacted

1/ ARRA funding will be spent in FY 2009 and FY 2010. FTE level reflects peak in FY 2010.

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, and 

improvements of, and purchase of 

commercial insurance policies for, real 

properties leased or owned overseas, when 

necessary for the performance of official 

business, [$278,870,000 of which not to 

exceed $21,619,000 is for executive 

direction program activities; not to exceed 

$45,910,000 is for economic policies and 

programs activities; not to exceed 

$36,038,000 is for financial policies and 

programs activities; not to exceed 

$62,098,000 is for terrorism and financial 

intelligence activities; not to exceed 

$21,600,000 is for Treasury-wide 

management policies and programs 

activities; and not to exceed $91,604,000 is 

for administration programs activities: 

Provided, That the Secretary of the 

 

 

 

 

 

 

 

 

The language has been amended to 

remove the allocation of appropriated 

funds by budget activity. The amended 

language provides flexibility to the 

Secretary of the Treasury to meet 

critical requirements in a timely 

manner. This methodology is in line 

with submissions from prior years, and 

will make DO’s reprogramming 

requirements the same as all other 

Treasury bureaus. 

 

 
DO - 15 

Treasury is authorized to transfer funds 

appropriated for any program activity of 

the Departmental Offices to any other 

program activity of the Departmental 

Offices upon notification to the 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] $302,338,000: Provided

[further], That of the amount appropriated 

under this heading, not to exceed 

$3,000,000, to remain available until 

September 30, [2010]2011, is for 

information technology modernization 

requirements; not to exceed $200,000 is for 

official reception and representation 

expenses; 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, 

[$5,232,000] $6,787,000, to remain 

available until September 30, [2010]2011, 

is for the Treasury-wide 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, [2010]2011, 

is for secure space requirements: [Provided 

further, That of the amount appropriated 

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

available until September 30, 2010, is for 

salary and benefits for hiring of personnel 

whose work will require completion of a 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
DO - 16 

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, $3,400,000, to remain available 

until September 30, [2011]2012, 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, [2011]2012, is for 

modernizing the Office of Debt 

Management's information technology. 

(Department of the Treasury 

Appropriations Act, 2009.)

2C – Legislative Proposals 

From proposed FY 2010 Department of the Treasury Administrative Provisions:

Sec. 117. The Secretary is authorized to establish additional Treasury accounts for the 

Alcohol & Tobacco Tax and Trade Bureau, Department of the Treasury; U.S. Customs 

and Border Protection, Department of Homeland Security; and the Bureau of Alcohol, 

Tobacco Firearms and Explosives, Department of Justice, for purposes of administering 

refunds under 31 U.S.C. 1324. 

Explanation / Background: 

Improving Efficiency of Tax Refund Payments 

The Internal Revenue Service (IRS), U.S. Customs and Border Protection (CBP), 

Alcohol & Tobacco Tax and Trade Bureau (TTB), and, in the past, the Bureau of 

Alcohol, Tobacco, Firearms and Explosives (ATFE), pay tax refunds. IRS, TTB, and 

ATFE refund both principal and interest amounts, while CBP refunds principal only at 

this time. Although each of these bureaus has their respective refunds to pay, only the 

IRS appropriations are currently available for payment of these refunds. 

The IRS appropriation was established as a permanent, indefinite appropriation in 1948 

and is now codified in 31 U.S.C 1324. It is designated as Treasury account fund symbols 

20X0903 (principal) and 20X0904 (interest) to be administered entirely by the IRS. The 

IRS administration of this appropriation encompasses the processing of warrants, 

recordation of budgetary entries and all appropriation year-end and monthly reporting. 

This arrangement, whereby multiple organizations utilize a single refund appropriation, 

prevents transactions relating to this appropriation from being recorded in conformance 
DO - 17 

with federal accounting standards, and creates processing delays for the all agencies. As 

all refunds are paid out of the same IRS fund symbol, the IRS must do a monthly review 

of refund activity to ascertain the refund amounts applicable to each agency involved in 

paying refunds. This is time-consuming and inefficient. Further, the IRS administers the 

existing fund symbols it must request all warrant authority for payments to be made. 

Thus, the IRS must monitor budget authority pertaining to the other agencies involved, 

which requires the IRS to communicate frequently with the other agencies, which is 

likewise time-consuming and inefficient. The current situation also results in differences 

between IRS’s budgetary accounts, which track all the budget activity for these fund 

symbols, and IRS’s proprietary accounts, which track only IRS-related activity. The 

differences between the budgetary and proprietary accounts need to be continually 

tracked and reconciled monthly before the data can be finalized for financial statement 

purposes and for reporting to the Financial Management Service. 

Impact: 

The proposed legislative language will greatly improve the efficiency of the payment of 

various types of tax refunds and related interest. 
DO - 18 

Section 3 – Budget and Performance Plan

This table lists all FY 2010 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/

3.1 – Budget by Strategic Goal 

Dollars in Thousands 

Treasury Strategic Goal

Effectively Manage U.S. Government Finances $53,807 $61,835 14.9%

Ensure Full Performance of U.S. and World Economies 102,226 $106,833 4.5%

Prevent Terrorism & Promote the Nation's Security 110,985 $115,039 3.7%

Dedicate to Management and Organizational Excellence $50,494 $52,523 4.0%

Total FY 2010 Request $317,512 $336,230 5.9%

FY 2009 

Enacted

FY 2010 

Request

% Change 

FY 2009 to 

FY 2010

3A – Executive Direction ($22,383,000 from direct appropriations and $1,092,000 

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 a legal synergy between the financial sector and the law. 

In FY 2008 the Office of General Counsel was appropriated $ 9.9 million, in FY 2009 

$10.5 million and in FY 2010 the President’s request is $11.0 million. 
DO - 19 

3.2.1 – Executive Direction Budget and Performance Plan 

Executive Direction Programs Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA Enacted Request

Appropriated Resources $16,329 $19,094 $20,273 $0 $21,619 $22,383

Reimbursable Resources 0 0 599 0 1,092 1,092

Total Resources $16,329 $19,094 $20,872 $0 $22,711 $23,475

Budget Activity Total $16,329 $19,094 $20,872 $0 $22,711 $23,475

FY 2009

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 ($44,749,000 from direct appropriations and 

$5,097,000 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 increase economic growth in 

developed and developing countries; improve financial stability in world markets; 

enhance the functioning of international financial institutions; and promote an open and 

transparent international trade and investment regime. 

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

related to international monetary affairs, trade and investment policy, international 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 

industrial 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 
DO - 20 

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. 

3.2.2 – Economic Policies and Programs Budget and Performance Plan 

Economic Policy and Programs Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA Enacted Request

Appropriated Resources $31,691 $35,581 $41,852 $0 $45,910 $44,749

Reimbursable Resources 8,504 3,195 4,073 0 5,097 5,097

Total Resources $40,195 $38,776 $45,925 $0 $51,007 $49,846

Budget Activity Total $40,195 $38,776 $45,925 $0 $51,007 $49,846

FY 2009

Economic Policies and Programs Budget 

Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Changes that result from project engagement 

(Impact) (Oe) 

N/A N/A 3.1 3.1 3.1

Improve International Monetary Fund (IMF) 

effectiveness and quality through periodic 

review of IMF programs (%) (Oe) 

 100 100 93 90 90

Number of new Free Trade Agreement (FTA) 

negotiations and Bilateral Investment Treaties 

(BIT) negotiations underway or completed 

(Oe) 

9 7 Discontinued Discontinued Discontinued

Number of new trade and investment 

negotiations underway or completed (Oe) 

N/A N/A 14 6 2

Number of specific new trade actions 

involving Treasury interagency participation 

in order to enact, implement and enforce US 

trade law and international agreements (Oe) 

N/A N/A 68 30 30

Percentage of grant and loan proposals 

containing satisfactory frameworks for results 

measurement (%) (Oe) 

 88 92 94 90 90

Scope and intensity of engagement (Traction) 

(E) 

N/A N/A 3.7 3.7 3.7

US real Gross Domestic Product (GDP) 

growth rate (%) (Oe) 

3 2.4 Discontinued Discontinued Discontinued

US unemployment rate (%) (Oe) 4.6 4.5 Discontinued Discontinued Discontinued

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Customer Satisfaction 

Description of Performance: The Treasury Department is committed to participating in 

the negotiation and implementation of international agreements, which help to remove 

trade and investment barriers and stimulate domestic and global growth. Treasury’s 

Office of International Affairs advises and assists in the formulation and execution of 

U.S. international economic and financial policy. In FY 2008, the office met or exceeded 

its targets for all of its performance measures. During the year, the office modified its 

measure related to trade and investment negotiations to broaden its scope and added a 

new measure related to the enactment, implementation and enforcement of US trade law 
DO - 21 

and international agreements. For FY 2009 and FY 2010, it is anticipated that completion 

of new international trade and investment agreements will be challenged by protectionist 

sentiment associated with the global recession. Commitments by G-20 nations to resume 

the World Trade Organization’s Doha Round of trade negotiations and limit protection 

are extremely favorable, but the performance results of FY 2008 are likely to be 

unrepeatable in the current climate. Performance targets for FY 2009 and FY 2010 for 

both measures have consequently been set to reflect these economic challenges. 

To help ensure that Multilateral Development Banks (MDB’s) demonstrate results of 

their development assistance, MDB’s closely monitor the percentage of grant and loan 

proposals containing satisfactory measurement frameworks. Over the past several years, 

most of the MDB’s have made substantial progress towards developing frameworks that 

measure the results of their development assistance. For FY 2008, 94 percent of grant and 

loan proposals contained satisfactory results measurement frameworks, exceeding the 

Department’s target of 90 percent. 

In FY 2008, the Department was actively involved in reforms at international financial 

institutions. In particular, the Department supported the IMF’s efforts to restructure its 

voting system to expand participation by emerging market countries, coordinate 

development of investment guidelines for sovereign wealth funds, and undertake 

comprehensive management reorganization. With the decision to increase funding for the 

IMF to $750 billion agreed to at the April 2009 G-20 summit, the IMF will continue to 

play a pivotal role in management of current and future financial crises. To assess the 

IMF’s contribution to international financial management, the Department conducts 

periodic reviews of IMF program effectiveness and quality. The Department’s review of 

IMF programs for FY 2008 yielded an improvement rate of 93 percent, exceeding the 

target rate of 90 percent. 

In fiscal year 2008, the Office of Technical Assistance established two, new 

comprehensive performance measures to assess the effectiveness of assistance programs 

for client countries. The measures evaluate the traction advisors establish with country 

leadership and the impact of client country programs implemented with U.S. assistance. 

The measures determine traction and impact along four dimensions: country integration 

into the international community, country progress towards strategic goals, human and 

systems capacity building, and program effectiveness across government and the private 

sector. The measures were base-lined in fiscal year 2008. The average rating was 3.7 for 

traction and 3.1 for impact, out of a possible score of 5.0. 

DO is continuing to work to develop meaningful performance measures for policy offices 

which align to the 2007-2012 Treasury Strategic Plan. 

3C – Financial Policies and Programs ($47,580,000 from direct appropriations and 

$5,225,000 from reimbursable programs): Offices within the Financial Policies and 
DO - 22 

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. 

3.2.3 – Financial Policies and Programs Budget and Performance Plan 

Financial Policies and Programs Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA Enacted Request

Appropriated Resources $26,308 $24,878 $29,134 $1,000 $36,038 $47,580

Reimbursable Resources 936 4,304 4,261 0 5,225 5,225

Total Resources $27,244 $29,182 $33,395 $1,000 $41,263 $52,805

Budget Activity Total $27,244 $29,182 $33,395 $1,000 $41,263 $52,805

FY 2009

Financial Policies and Programs Budget 

Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Audit opinion received on government-wide 

financial statements 

1 1 Discontinued Discontinued Discontinued

Release federal government-wide statements 

on time (Oe) 

1 1 1 1 1

Variance between estimated and actual 

receipts (%) (Oe) 

 3.9 2.1 4.6 5 4.5

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. Satisfaction 

Description of Performance: In FY 2008, for the fifth consecutive year, the Treasury 

Department’s Office of Domestic Finance released the government-wide financial 

statements on time, and expects to meet its target for both FY 2009 and 2010. The prompt 
DO - 23 

release of this statement contributes to improved transparency and accountability of 

government financial activities for the American public. 

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 the 

economic stimulus package, 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, FY 2008 was a particularly challenging forecasting year. 

While the estimated variance of 4.6 percent was below the target variance of 5.0 percent 

for the year, it still fell short of the 2.1 percent variance registered for FY 2007. 

Achieving target variance for FY 2009 will also be affected by factors associated with the 

recession and initiatives to restart credit markets, although OFP is continuing efforts to 

improve modeling systems and receipt projections to meet forecast targets. 

3D – Terrorism and Financial Intelligence ($64,611,000 from direct appropriations 

and $5,637,000 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 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. 
DO - 24 

Terrorism and Financial Intelligence Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA Enacted Request

Appropriated Resources $39,540 $43,115 $51,904 $0 $62,098 $64,611

Reimbursable Resources 6,987 3,934 3,866 0 5,637 5,637

Total Resources $46,527 $47,049 $55,770 $0 $67,735 $70,248

Budget Activity Total $46,527 $47,049 $55,770 $0 $67,735 $70,248

FY 2009

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 

on financial and other support networks of terrorist groups, 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. 

3.2.4 – Terrorism and Financial Intelligence Budget and Performance Plan 
Terrorism and Financial Intelligence 

Budget Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Increase the number of outreach engagements 

with the charitable and international financial 

communities (Ot) 

 45 85 80 Discontinued Discontinued

Number of countries that are assessed for 

compliance with the Financial Action Task 

Force (FATF) 40 + 9 recommendations (Ot) 

 5 6 12 Discontinued Discontinued

Number of open civil penalty cases that are 

resolved within the statute of limitations 

period (Ot) 

 85 296 233 Discontinued Discontinued

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Customer Satisfaction

Description of Performance: Currently, DO is working to develop meaningful 

performance measures that will align to the 2007-2012 Treasury Strategic Plan. These 

new measures have been developed and are currently being reviewed for implementation. 

3E - Treasury-wide Management and Programs ($22,779,000 from direct 

appropriations and $4,575,000 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; and financial administration (such as the formulation 

and management of Treasury's budget). The Department develops integrated plans to 

align policy and operations in order to produce maximum value for the American people. 

3.2.5 – Treasury-wide Management and Programs Budget and Performance Plan 

Treasury-wide Management Programs Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA 1/ Enacted Request

Appropriated Resources $16,674 $15,705 $16,384 $130,000 $21,600 $22,779

Reimbursable Resources 3,373 2,696 4,295 0 4,575 4,575

Total Resources $20,047 $18,401 $20,679 $0 $26,175 $27,354

Budget Activity Total $20,047 $18,401 $20,679 $0 $26,175 $27,354

FY 2009

1/ ARRA funding includes $123 Million for IRS and $7 Million for FMS.

Treasury-wide Management and Programs 

Budget Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Completed investigations of EEO complaints 

within 180 days (%) (Oe) 

 20 51.6 56 50 50

Injury and illness rate Treasury-wide - 

including DO (Oe) 

 1 1 1.29 Discontinued Discontinued

Management cost per Treasury employee ($) 

(E) 

40.59 29.64 Discontinued Discontinued Discontinued

Number of material weaknesses (significant 1020

management problems identified by GAO, the 

IGs and/or other bureaus) (Oe) 

1

Percent of complainants informally contacting 

Equal Employment Opportunity (EEO) (for 

the purpose of seeking counseling or filing a 

complaint) who participate in the ADR 

Process (%) (Oe) 

 25 29 45 30 30

 Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Customer Satisfaction

DO - 25 
DO - 26 

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. 

For FY 2008, DO met or exceeded its performance measures related to Equal 

Employment Opportunity (EEO) and Department-wide injury and illness rates. Both the 

percent of complainants informally contacting EEO (for the purpose of seeking 

counseling or filing a complaint) who participate in the Alternative Dispute Resolution 

process and percentage of EEO investigations completed within 180 days exceeded 

performance targets. In addition, the Department-wide injury and illness rate exceeded its 

target of 1.4, registering 1.29 (lower is better). During FY 2008 the Office of the Deputy 

Assistant Secretary for Human Resources / Chief Human Capital Officer 

(DASHR/CHCO) began using two performance measures to assess how well employee 

expectations align with organization performance. DASHR/CHCO also implemented its 

first human capital operating plan to ensure steady progress towards the goals laid out in 

the Human Capital Strategic Plan. These new initiatives have significantly improved 

insight into human capital programs and additional measures are being developed to 

determine the effectiveness of strategies articulated in the plan. 

The Department did not meet its FY 2008 performance goal for the number of material 

weaknesses closed, closing two and not three weaknesses. No material weaknesses are 

expected to be closed for FY 2009. 

The Department works to attract and retain the best talent while rewarding employees for 

their individual performance. Building a stronger management infrastructure through 

Department-wide 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 succession plan ensures 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 2008, offices have worked to objectively monitor their progress 

toward program outcomes and Treasury’s strategic objectives. 

Enhance security of information technology 

The Treasury Department strives to provide a secure information technology 

infrastructure. Treasury strengthened its networks by encrypting 99.8 percent of laptops, 

99.7 percent of digital assistants, testing 98 percent of system contingency plans, 

certifying and accrediting 97 percent of systems, strengthening security policies, and 

implementing enhanced safeguards to reduce exposure to Internet-based threats. The 
DO - 27 

Department recognizes the importance of cyber security in fulfilling its mission. In fiscal 

year 2008, Treasury made significant progress in strengthening security configuration 

management, which was noted as a significant deficiency in fiscal year 2007. The 

Federal Information Security Management Act (FISMA) 2008 audit found no significant 

deficiencies in information security, and the Department’s remaining material weakness 

in this area was formally closed. 

Created the Privacy and Treasury Records (PTR) office 

Treasury is committed to maintaining, collecting, using, and disseminating information 

necessary to carry out its mission. PTR was created to strengthen the Department’s 

privacy program and records management. PTR will ensure that Treasury has a system 

in place to serve and inform the public, and the PTR will strengthen the Department’s 

compliance with privacy and disclosure requirements. 

Developed human capital measures 

In fiscal year 2008, the Department developed two human capital performance measures. 

The first measure is designed to assess progress in developing a high-performance, 

talented, and diverse workforce; the second measure is designed to assess Treasury’s 

standing as a highly desirable employer of choice. 

Strengthen corporate leadership 

The Treasury Department has made a significant effort in 2008 to promote corporate 

governance. In addition to daily meetings of the senior leadership team, weekly bureau 

head meetings, and monthly Treasury-wide council meetings, the Department has taken 

several actions to improve corporate management. An Executive Review Board was reestablished for major IT capital investments to better engage department and bureau 

executive leadership in IT decision making. 

The Human Capital Strategic Plan was revised, identifying the factors that will shape the 

future workforce environment of the agency and the corporate strategies that are needed 

to meet these challenges. Strategic sourcing continued to implement its corporate 

approach to procurement, saving thousands, and improving governance, communication, 

and training across the agency. A prototype Treasury performance scorecard was 

developed for the financial outcomes described in the Department’s strategic plan. 

Corporate governance activities were consistently monitored and any gaps in the process 

were identified. These included strategic planning, financial management, asset 

management, information technology, risk management, human capital, procurement, 

performance management, privacy and records management, and emergency/continuity 

program management. 

3F – Administration Programs ($100,286,000 from direct appropriations and 

$12,216,000 from reimbursable programs): Administration Programs provides 
DO - 28 

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 is dedicated to information technology support (desktop computers, 

printers, faxes, copiers, helpdesk support, etc.). Another one-third consists of shared 

services: GSA rent, utilities, telecommunications, printing and graphics, public transit 

subsidy, workers compensation, and financial system support. The final third consists of 

employee salaries, routine building maintenance, and custodial services. 

3.2.6 – Administration Programs Budget and Performance Plan 

Administration Programs Budget Activity

FY 2006 FY 2007 FY 2008 FY 2010

Resource Level Obligations Obligations Obligations ARRA Enacted Request

Appropriated Resources $63,094 $75,154 $82,630 $0 $91,604 $100,286

Reimbursable Resources 0 3,028 3,837 0 17,016 12,216

Total Resources $63,094 $78,182 $86,467 $0 $108,620 $112,502

Budget Activity Total $63,094 $78,182 $86,467 $0 $108,620 $112,502

FY 2009

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. 

 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/
DO - 29 

Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

The Departmental Offices (DO) Office of Human Resources (OHR) helps ensure the 

availability of human resources tools required to manage the human capital which 

support strategic goals and mission accomplishment. OHR does this through the 

provision of sound advice and guidance on matters of staff employment, retention, 

recognition, employee relations, benefits, performance, and development. 

FY 2008 Accomplishments

HC Strategic Goal 1: Organizational Effectiveness – To achieve organizational 

effectiveness; accomplish mission objectives through the alignment of human capital 

plans, strategies, and systems. 

• OHR used the latest results from its customer surveys and focus groups to assess the 

effectiveness of DO human capital initiatives and improve performance management, 

alternate work arrangements, and staff development programs. The revision of 

critical policies and procedures ensures that DO’s human capital programs are 

efficient and in compliance with all existing regulations and statutes. 

• Each program office in partnership with OHR identified employee skill gaps and 

developed detailed succession plans to enable Treasury headquarters to maintain 

talented and skilled staff necessary to accomplish its missions. 

• OHR has placed a renewed emphasis on the need for staff development and 

workforce analysis by designing new supervisory leadership development training 

programs. Leadership training programs ensure that there is a qualified talent pool 

for senior career management positions. The Treasury Learning Management System 

(TLMS) has been partially implemented with full utilization targeted by October 1, 

2008. 

HC Strategic Goal 2: Recruitment and Diversity – Recruit and hire a highly skilled 

and diverse workforce aligned with business goals. 

• OHR received an extension of its direct-hire authority for positions within the 

intelligence community in support of the Office of Intelligence and Analysis (OIA). 

OHR continues to work closely with OIA to develop new staffing tools and methods 

to quickly fill analyst positions to support anti-terrorist efforts. 

• DO continues its exercise of excepted appointments - Presidential Management 

Fellows; the Student Career Experience Program; DO specific fellowship programs; 

and other authorities - to ensure that new talent is hired as quickly as possible. DO 

actively supports initiatives aimed at increasing the diversity of its workforce, 

including the use of student interns through organizations such as the Hispanic 
DO - 30 

National Internship Program and the Washington Internships for Native American 

Students (WINS). 

• To remain competitive with other employers, DO continues to advocate for the use of 

all pay and workplace scheduling flexibilities: recruitment bonuses, superior 

qualifications appointments, alternative work schedules, and tele-work. 

HC Strategic Goal 3: Employee Retention and Satisfaction – Retain a high 

performing workforce while maintaining an environment conducive to a high level of 

employee satisfaction. 

• OHR has continued to conduct “Benefits Brown Bag” sessions. These one-hour 

sessions address staff benefit programs and help employees make more informed 

choices. 

• Because of the number of DO employees eligible to retire within the next five years, 

OHR contracted with an outside vendor to provide several retirement seminars during 

this fiscal year. 

• Revisions to the New Employee Orientation program will include organizational 

awareness, so that new employees take pride in DO’s mission. 

• Feedback will be solicited as to the effectiveness of human capital programs and 

initiatives. An automated exit survey was implemented to identify the reasons why 

individuals are separating from the agency. This will identify barriers to staff 

engagement and job satisfaction. 

HC Strategic Goal 4: Information Technology – Enhance workforce capabilities to 

support the use of current, new, and evolving technologies. 

• Plans are underway with HR Connect to implement the E-OPF (Official Personnel 

Folder) initiative mandated by the Office of Personnel Management by FY 2010. 

Electronic employment files will contribute to meeting the challenges associated with 

employment data needs during government shutdowns, unexpected emergencies, or 

quick turn around requests. 

• Implementation of the TLMS will provide DO employees 24 hour access to an online 

learning system, which will help them achieve their professional and personal 

development goals at no added cost to their program offices. It will also allow 

managers to find solutions to their succession planning efforts by identifying critical 

skill gaps within their programs. 

• Concerted efforts have been made to encourage staff to register in the HR Connect 

system and update their personal information. 

 
DO - 31 

FY 2009 Challenges

DO faces a number of human capital challenges: 

Challenge: Increasing competition from the private sector and other government 

agencies 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: such as direct hire (where request to OPM is appropriate), superior 

qualifications appointments, recruitment bonuses, student loan repayment, retention 

allowances, alternative work arrangements/schedules, and other work life issues. 

• Expand the use of outside resources, such as the Corporate Executive Board 

Recruiting Roundtable, to explore cutting edge strategies to meet DO’s most 

challenging recruitment goals. 

• Enhance workplace flexibilities and employee assistance programs to attract good 

applicants, increase employee job satisfaction, and retain them for years to come. 

Challenge: The loss of institutional knowledge through retirement, particularly for 

critical subject experts, managers, and senior executives. 

Strategies for Addressing Challenge 

 

• Increase the emphasis on determining leadership bench strengths as well as 

supporting leadership and executive development programs that help to identify and 

prepare cadres of future leaders, and gain approval to hire at a level needed to 

continue to meet mission objectives. 

• 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 hire private sector retirees who have an interest in 

public service. 

Challenge: Continue to develop a results-oriented performance management culture 

within DO. 

Strategies for Addressing Challenge
DO - 32 

• 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 staff have performance plans and 

are receiving timely 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. 
DO - 33 

4.1 – Summary of IT Resources Table Dollars in Thousands 

Information Technology Investments 1/

FY 2007 FY 2008 FY 2009 FY 

Major IT Investments/Funding Source Budget Activity Enacted Enacted

% Change 

from FY07 to 

FY 08 Enacted

% Change 

from FY08 to 

FY09 R

Treasury Foreign Intelligence Network (TFIN)

Terrorism and Financial Intelligence (TFI) $0 $3,000 N/A $3,000 0.0% 

Subtotal, Major IT Investments $0 $3,000 N/A $3,000 0.0% Non-Major IT Investments $5,112 $6,979 36.5% $9,018 29.2% Infrastructure Investments $0 $0 N/A $0 N/A 

Enterprise Architecture $0 $0 N/A $0 N/A 

Total IT Investments $5,112 $9,979 95.2% $12,018 20.4% 

1/ This chart includes appropriated resources only and may not reflect total project costs.
DO - 34 

4B – Information Technology Strategy 

As the steward of the United States government’s finances, the Treasury Department 

plays a critical role in U.S. and global economies. The Department effectively manages 

the Federal Government’s finances, promotes economic opportunity at home and abroad 

through sound fiscal policy, works for entitlement reform, strengthens trade and 

investment policies, and maximizes voluntary tax compliance. Comprised of thirteen 

bureaus, each with at times very disparate missions, the Treasury Department collects 

over $2 trillion annually, manages over $8 trillion in debt and performs more than $58 

billion in daily cash transactions. Successfully executing on this mission requires not 

only an extreme focus on protecting the security of the nation’s monetary assets, but also 

on stimulating U.S. economic growth and strengthening financial institutions and 

markets. None of this could be done today without Information Technology. 

As Treasury's goals and objectives shift to address new economic challenges, so must its 

IT capabilities. In developing our Information Technology Strategy it is the 

Department’s goal to provide an enterprise-wide set of information technology 

capabilities that are effective, efficient, flexible and elastic. In summary, the IT Strategy 

is built on four major tenets: 

1) The Department will seek to continually transform Treasury's IT organization to 

further enhance its enterprise efficiency and effectiveness. This will be done through an 

even tighter focus on IT infrastructure optimization, even greater leverage of business 

and IT capabilities across the Department, and by further enabling an agile, delivery 

focused IT organization. 

2) The Department will continually provide innovative solutions to its business needs 

while also ensuring the long term viability of our core systems. Treasury will enable this 

by becoming an information centric organization, by ensuring its core platforms are 

operating as efficiently and effectively as possible, by further enabling its mobile 

workforce and by delivering solutions that promote greater transparency to the public, 

and collaboration with its partners. 

3) The Department will ensure all of its IT capabilities are adequately secure, robust and 

reliable enough to serve department-wide needs. In support of this, the Department will 

establish even tighter control and protection of its information assets and it will 

continually enhance its information and communication services to make them as reliable 

and robust as economically viable. 

4) The Department will provide high quality solutions by being diligent in its focus on 

enabling our people, improving our processes, managing risk, and meeting customer's 

needs. 

The Treasury Office of the Chief Information Officer (OCIO) facilitates and guides the 

implementation of the Department’s IT strategy. OCIO also provides a range of direct IT 

services to the Departmental leadership offices and Treasury Bureaus. For example, 
DO - 35 

OCIO operates the IT infrastructure for the Office of the Secretary, manages the 

Department’s wide area network, and administers an array of business specific 

applications that make necessary data available for the Secretary to make timely 

decisions on yield curve and interest rates, support the Office of Intelligence Analysis 

with the ability to communicate timely data with the intelligence community, and 

facilitate the administrative operations of the Department. 

The OCIO also leads department-wide IT endeavors that address common needs among 

the Treasury bureaus, such as Internet services, identity and access management services, 

content management solutions, and systems that help automate financial 

analysis/reporting, human resources management, and travel support. 

For 2009-2010, a particular area of department-wide focus is achieving cost efficiency 

and performance improvements by optimizing the IT Infrastructure through use of new 

technologies such as virtualization and Web enablement. 
DO - 36 

4.2 – Program Assessment Table 

For a complete list of program results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

Program Name: Economic and Trade Sanctions Program - OFAC

Year rated: FY 2002

Rating: RND

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. Adopting annual performance goals and aligning them with the long-term performance goals. 

1. The program lacks long-term performance goals with specific targets.

2. The program has not yet instituted annual performance goals to determine the effectiveness of 

 sanctions. its 

3. The program is lacking unit cost measures. 

1. Working to develop long-term performance goals with specific timeframes and measures.