Department of the Treasury

Office of Financial Research

Congressional Budget

Justification and Annual

Performance Report and Plan

FY 2020
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Table of Contents

Section I - Budget Request.................................................................................3

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

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

1.1 – Resource Detail Table........................................................................................................ 3

C – Vision, Priorities, and Context............................................................................................. 3

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

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

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

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

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

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

A – Strategic Alignment ............................................................................................................. 8

B – Data Center........................................................................................................................... 8

2.1.1 – Data Center Resources and Measures............................................................................. 9

C – Technology Center............................................................................................................... 9

2.1.2 – Technology Center Resources and Measures............................................................... 10

D – Research and Analysis Center............................................................................................ 10

2.1.3 – Research and Analysis Center Resources and Measures.............................................. 10

E – Operations and Support Services........................................................................................ 10

2.1.4 – Operations and Support Services Resources and Measures ......................................... 11
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Section I - Budget Request __________

A – Mission Statement

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

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

B – Summary of the Request 

The Office of Financial Research (OFR) is estimating a fiscal year (FY) 2020 funding level of 

$75.271 million, which is flat with its FY 2019 estimated funding level. To align with the 

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

implemented an organizational realignment effort to ensure appropriate structure for maximum 

efficiency. In addition, the Budget reflects continued reductions in OFR non-labor spending 

commensurate with the renewed fiscal discipline being applied across the Federal Government. 

The Budget also proposes to impose appropriate Congressional oversight of OFR functions by 

subjecting its activities to the annual appropriations process beginning in FY 2021.

1.1 – Resource Detail Table

1) The OFR is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s 

final rule and interim final rule governing the Assessments process: https://www.financialresearch.gov/strategybudget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated 

Balances from Prior Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on 

September 15 of the prior fiscal year. This makes it appear as though large amounts of unobligated balances went unused, when in 

fact very little, if any, of those balances were from under execution.

C – Vision, Priorities, and Context 

The OFR, or Office, resides within the Department of the Treasury (Treasury). In carrying out 

its mission, the OFR seeks to support achievement of a transparent, efficient, and stable financial 

system. The OFR’s work contributes to the efforts of the regulatory community, the Treasury, 

and the Congress to make informed and comprehensive policies and take actions that will 

strengthen the financial system. This work is dependent on data, which the OFR obtains from 

member agencies, commercial data providers, publicly available data sources, and financial 

Dollars in Thousands

Office of Financial Research

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Assessments1 $49,444 $62,995 $59,748 ($3,247) -5%

Interest $823 $1,175 $1,254 $79 7%

Recovery of Prior Year Paid Obligations $22 $31 $31 $0 0%

Recovery of Prior Year Unpaid Obligations $6,243 $3,727 $3,428 ($299) -8%

Restoration of Sequestration Rescission $5,394 $3,418 $3,979 $561 16%

Unobligated Balances from Prior Years $65,134 $47,728 $39,824 ($7,904) -17%

Offsetting Collections $111 $0 $0 $0 NA

Total Revenue/Offsetting Collections $127,171 $119,074 $108,264 ($10,810) -9%

Expenses/Obligations

Data Center 42 $15,967 10 $6,010 12 $6,796 2 $786 20.00% 13%

Technology Center 52 $23,530 61 $34,162 63 $32,218 2 ($1,944) 3.28% -6%

Research and Analysis Center 42 $12,302 29 $13,180 36 $14,274 7 $1,094 24.14% 8%

Operations and Support Services 49 $24,226 30 $21,919 34 $21,983 4 $64 13.33% 0%

Total Expenses/Obligations 185 $76,025 130 $75,271 145 $75,271 15 $0 11.54% 0%

Sequestration Reduction ($3,418) ($3,979) $0 $3,979 

Net Results $47,728 $39,824 $32,993 ($6,831) -17%

FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Actual Estimated Estimated $ Change % Change
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companies in support, and at the direction, of the Council. The OFR obtains data from the 

financial regulators and financial companies either voluntarily, or, where necessary, using its 

rulemaking authority. It may also subpoena data. For example, the OFR has scores of 

agreements with other regulators to obtain, among other things, information about bank stress 

testing and information about risks in private funds. In addition, the OFR obtains information 

from specific firms under consideration by the Council for heightened supervision. Finally, the 

OFR recently promulgated a rule that will collect information about transactions in the securities 

repurchase agreements market. In addition, the OFR is authorized to, and does, provide certain 

data to the regulatory community, the Treasury, financial industry participants, and the general 

public to increase market transparency and facilitate monitoring of and research on the financial 

system. 

Using this data, the Office monitors the financial environment for the emergence of new 

vulnerabilities and migration of financial activity that could threaten financial stability. The 

Office takes an objective position to evaluate macroprudential policies and assess financial 

stability risks and sources of resilience, advocate for needed data standards, help the regulatory 

community enhance its peripheral vision, and produce work that may have previously been 

beyond the reach of individual regulatory agencies and other important stakeholders. In addition

to developing standards for data collection, the Office facilitates the development of standards 

for financial data so that a common language and way of describing institutions and activities in 

our markets are used globally. By law the OFR is required to create a legal entity identifier 

database, and has done so by establishing a global system that currently identifies over 1.4 

million firms. We are also working with Council member agencies and global coordinating 

bodies to develop standards for transaction identification, instrument classification, and critical 

data elements in the derivatives markets. 

In the OFR Strategic Plan for FY 2015-2019, the OFR established three strategic goals that 

reflect its primary functions in data and analysis, data standardization, and research.1

 The plan 

will continue to guide the Office’s work and will support the decisions made about resources 

needed to implement those strategies while a new OFR Strategic Plan for FY 2020-2024 is 

drafted with a targeted publication date of FY 2019 Q4. The three goals in the current OFR 

Strategic Plan are:

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

stability.

Key objectives of this goal include:

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

financial stability.

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

policy makers and the public through the OFR.

 1 See the OFR Strategic Plan for FY 2015-2019: 

http://financialresearch.gov/strategy-budget/files/Office-of-Financial-Research-Strategic-Plan-2015-2019.pdf.
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• Data providers and the public trust, acknowledge, and recognize that OFR data are 

protected and secure.

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

adopted.

Key objectives of this goal include:

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

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

formats of data reported and collected.

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

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

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

Key objectives of this goal include: 

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

• OFR research is widely cited and used to improve policy making, risk management, 

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

Specific OFR priorities for FY 2019 and FY 2020 that support the three strategic goals include:

1. Collecting data on centrally-cleared funding transactions in the U.S. repurchase 

agreement (repo) market to support expanded monitoring of this market and calculation 

of certain reference rates, particularly the Secured Overnight Financing Rate which is

planned as an alternative to LIBOR (USD London Interbank Offered Rate). 

2. Developing and launching a short-term funding monitor, which will display the data 

referenced above along with other data on the repo market, to provide the OFR, FSOC 

member agencies, and the public with essential insight into this market, which is critical 

to the provision of liquidity and was at the center of the financial crisis.

3. Publishing the OFR Annual Report, including the assessment of risks to financial 

stability and key findings from the OFR’s research and analysis.

4. Continuing to expand and enhance the OFR’s support of the FSOC.

5. Advancing the development and use of industry-wide data standards.
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1.2 – Budget Adjustments Table

Dollars in Thousands

D – Budget Increases and Decreases Description

Program Increases............................................................... +$1,633,000 / +15 FTE

Staff Restructuring +$1,633,000 / +15 FTE

The OFR anticipates it may take 12 to 18 months to backfill critical positions left vacant due to a 

hiring freeze and a recently completed Reduction in Force. Such positions should be backfilled 

by late FY 2019 or early FY 2020, resulting in an increase of 15 FTE from FY 2019 to FY 2020. 

The OFR anticipates near-term steady-state FTE of 145 as a result of the organizational 

realignment.

Program Efficiencies............................................................... -$1,633,000 / -0 FTE

Administrative Cost Savings -$1,633,000 / -0 FTE

With the completion of the organizational realignment, the Office will continue to realize savings 

from lower administrative costs, and reduced supplies and equipment purchases. In FY 2020, 

reduced non-labor costs will enable the OFR to backfill critical positions. See Program Increases.

Office of Financial Research FTE Amount

FY 2019 President's Budget 140 $75,271

Changes to Base:

Program Decrease (10) $0

FTE Adjustment (10) $0

Revised FY 2019 Estimated 130 $75,271

Initiative Annualization 15 $1,633

Staff Restructuring 15 $1,633

Efficiency Savings 0 ($1,633)

Administrative Cost Savings 0 ($1,633)

Subtotal Changes to Base 15 $0

FY 2020 Estimated 145 $75,271
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1.3 – Operating Levels Table

Dollars in Thousands

1) Personnel compensation and benefits include direct OFR staff members only. Object Classification 25.3, 

“Other goods and services from Federal sources,” and expenditures of “Operations and Support Services” include reimbursable 

support received from Treasury’s Departmental Offices; personnel benefits services from the

Office of the Comptroller of the Currency; and services from Treasury’s Bureau of the Fiscal Service Administrative Resource 

Center, including human resource, procurement, travel, and financial management services.

E – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

F – Legislative Proposals

The Budget proposes to impose appropriate Congressional oversight of OFR functions by 

subjecting its activities to the annual appropriations process beginning in FY 2021.

Office of Financial Research FY 2018 FY 2019 FY 2020

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 31,136 20,036 21,965

11.3 - Other than full-time permanent 299 208 379

11.5 - Other personnel compensation 421 213 403

11.8 - Special personal services payments 229 120 5

11.9 - Personnel Compensation (Total) 32,085 20,577 22,752

12.0 - Personnel benefits 10,908 7,795 8,559

13.0 - Benefits for former personnel 65 1,306 0

Total Personnel and Compensation Benefits $43,058 $29,678 $31,311

21.0 - Travel and transportation of persons 147 245 265

23.3 - Communication, utilities, and misc charges 131 135 141

24.0 - Printing and reproduction 8 24 25

25.1 - Advisory and assistance services 16,964 19,725 18,875

25.2 - Other services from non-Federal sources 735 785 755

25.3 - Other goods and services from Federal sources 5,433 9,785 8,795

25.7 - Operation and maintenance of equip 3,220 3,701 3,705

26.0 - Supplies and materials 5,649 7,458 7,535

31.0 - Equipment 680 3,735 3,864

Total Non-Personnel 32,967 45,593 43,960

New Budgetary Resources $76,025 $75,271 $75,271

FTE 185 130 145
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Section II – Annual Performance Plan and Report________________________

A – Strategic Alignment

The OFR seeks to promote financial stability by delivering high-quality financial data standards, 

research, and analysis to the FSOC and the public. This mission is in direct alignment with 

Treasury’s Strategic Plan for FY 2018-2022 under the following goals and objectives: 

• Goal 1 - Boost U.S. Economic Growth 

o Objective 1.2 – Strong Economic Fundamentals

• Goal 2 - Promote Financial Stability 

o Objective 2.4 – Financial Sector Critical Infrastructure and Cybersecurity

With the publication of the Treasury Strategic Plan for FY 2018-2022, the Treasury will work in 

FY 2019 to baseline its performance against the new strategic objectives. This could result in 

additional changes to performance measures in the 2021 Budget.

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

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

The OFR’s efforts, working with the FSOC, the Treasury, and other important stakeholders, will 

help drive toward the vision of a stable, transparent, and efficient financial system. 

Key areas of focus will be in monitoring risks to financial stability and in developing and 

introducing new tools for the OFR, FSOC members, and the public to use in monitoring those 

risks. 

Other focus areas include research and policy analysis that promote informed decision-making 

for policies that balance the need of stability with the need for efficient and effective regulation, 

supporting the Treasury’s objective of Strong Economic Fundamentals. In all of these areas, 

high quality data and strong research expertise, supported by strong information technology (IT), 

are essential. The OFR will continue its efforts to promote, identify, and implement financial 

data standards to improve the quality, scope, and accessibility of financial data. Two important 

initiatives will be the ongoing data collection covering centrally-cleared repo agreements and 

support for the Secured Overnight Financing Rate planned as an alternative to LIBOR.

Finally, the OFR will continue to publish its statutorily-mandated Annual Report that assesses 

the state of the U.S. financial system and presents key findings from the OFR’s research. 

B – Data Center

($6,796,000 from Assessments):

Following reshaping, the Data Center seeks new ways to promote and share the OFR’s data and 

data analytic products with external stakeholders and promotes the development and use of data 

standards to improve upon the acquisition and sharing of data across the regulatory system. 

Data Standards

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

utility of financial data. Standards for financial data will benefit regulators and financial market 
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participants by making data aggregation easier, improving analysis, and reducing data collection 

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

these are not measures but indicators because the OFR, through mechanisms such as its 

leadership in standards and regulatory oversight bodies and providing technical guidance to other 

regulators, can influence these metrics but cannot directly control them. 

• Number of Legal Entity Identifiers (LEIs) Issued Cumulatively in the United States and 

Internationally – This indicator tracks the progress over time in industry’s use of the LEI. 

• Number of Times That Financial Data Standards are Incorporated in Rules and Regulations –

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

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

2.1.1 – Data Center Resources and Measures

Dollars in Thousands

C – Technology Center

($32,218,000 from Assessments):

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

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

of the restructuring is that the Technology Center is now also responsible for collecting, 

validating, maintaining, and disseminating all data necessary to achieve the OFR mission. In 

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

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

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

solutions. 

The OFR has internal performance measures for this activity, however they are not public 

because the measures contain sensitive information.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations $46,940 $17,240 $16,477 $17,833 $15,967 $6,010

$46,940 $17,240 $16,477 $17,833 $15,967 $6,010

FTE 90 51 37 44 42 10 12

Budget Activity Total $6,796

 Resource Level FY 2020

Estimated

$6,796

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Number of LEIs Issued Cumulatively in the 

United States and Internationally N/A 395,861 395,861 587,941 1,300,832 I I

Number of Times That Financial Data 

Standards are Incorporated in Rules and 

Regulations

N/A 2 9 4 1 I I

Measure Actual Actual Actual Actual Actual Target Target
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2.1.2 – Technology Center Resources and Measures

Dollars in Thousands

D – Research and Analysis Center

($14,274,000 from Assessments):

The Research and Analysis Center conducts research and analysis on systemic risk, 

macroprudential policy, and financial stability. Working closely with the FSOC, the Treasury, 

other key stakeholders, the Financial Research Advisory Council, and experts from around the 

globe, the OFR collaboratively identifies important issues that need to be addressed and focuses 

its resources on delivering impactful results in areas such as a LIBOR alternative and a multifactor approach for determining bank regulatory thresholds. 

Leading Edge Research and Monitoring Threats to Financial Stability

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

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

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

essential source of data and analysis for monitoring threats to financial stability. Historically, the 

OFR has reported output measures, such as the numbers of publications and monitoring tools. 

However, these measures did not reflect the OFR’s progress in meeting stakeholder needs for 

research and analysis work, which is a top priority. As such, moving forward, the OFR will

discontinue public reporting of such output metrics in recognition that producing greater quantity 

does not always further the agency’s goals. The OFR has begun its next five-year strategic 

planning effort, targeted for completion in FY 2019 Q4. A key part of the planning process is 

establishing strategic goals and objectives that are both meaningful and measurable. The OFR is 

currently reviewing measurement approaches such as more sophisticated website monitoring of 

product usage and direct outreach to external stakeholders in the financial community. The OFR 

is targeting FY 2020 to introduce new measures, concurrent with the implementation of its new 

five-year strategic plan 

2.1.3 – Research and Analysis Center Resources and Measures

Dollars in Thousands

E – Operations and Support Services

($21,983,000 from Assessments):

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

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

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations 0 $30,970 $32,132 $29,235 $23,530 $34,162

0 $30,970 $32,132 $29,235 $23,530 $34,162

FTE 0 51 61 63 52 61 63

 Resource Level FY 2020

Estimated

$32,218

Budget Activity Total $32,218

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations $7,700 $10,396 $14,239 $15,605 $12,302 $13,180

$7,700 $10,396 $14,239 $15,605 $12,302 $13,180

FTE 33 43 54 53 42 29 36

 Resource Level FY 2020

Estimated

$14,274

Budget Activity Total $14,274
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through a shared services model and reimbursable arrangements with Treasury’s Departmental 

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

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

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

2.1.4 – Operations and Support Services Resources and Measures

Dollars in Thousands

The OFR has no capital investments. Capital investments that support OFR are included in the 

Departmental Offices plan. A summary of capital investment resources, including major IT and 

non-IT investments can be found at: 

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

This website contains a digital copy of this document.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations $26,626 $26,110 $32,026 $26,533 $24,226 $21,919

$26,626 $26,110 $32,026 $26,533 $24,226 $21,919

43 49 56 59 49 30

Budget Activity Total $21,983

 Resource Level FY 2020

Estimated

$21,983

FTE 34