Executive Summary - 1

Mission Statement

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

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

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

government’s finances and resources effectively.

Executive Summary

FY 2016 President’s Budget by Function

Dollars in thousands

1

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

Offices Salaries and Expenses appropriation in FY 2016.

 

FY 2014 FY 2015 FY 2016 Increase/ Percent

Enacted Enacted Request Decrease Change

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

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

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

Departmental Offices Salaries and 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Less, IRS Cap Adjustment $0 $0 $667,297 $667,297 N A

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

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

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

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

Total, Cap Adjustment $0 $0 $667,297 $667,297 N A

Total, Treasury Appropriations Committee 

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

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

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

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

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

Debt Relief $0 $0 $124,500 $124,500 N A

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

Middle East Transition Fund $0 $0 $0 $0 N A

International Monetary Fund $0 $0 $62,000 $62,000 N A

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

FY 2015 to FY 2016
Executive Summary - 2

Overview

The Fiscal Year (FY) 2016 President’s 

Budget requests $14.3 billion in annual 

discretionary appropriations for the 

Department of the Treasury’s operating 

accounts. Of this amount, $667 million is 

provided through a program integrity cap 

adjustment for tax enforcement activities 

estimated to yield net deficit reduction of $41 

billion over the next ten years. Treasury 

continues to identify operational savings

across programs, while making key 

investments to foster economic growth and 

opportunity, fight financial crimes, protect 

taxpayers and promote fair and effective 

revenue collection, encourage small business 

lending, support struggling homeowners, and 

responsibly manage the U.S. government’s 

financial resources. The Budget also proposes 

a permanent cancellation of $875 million in 

Forfeiture Fund balances. In addition, the 

Budget proposes $2.9 billion for Treasury’s 

International programs in order to promote 

our national security, open new markets for 

U.S. exporters, and address key global 

challenges such as food security and the 

environment.

The Budget aligns with the Department’s FY 

2014 to 2017 Strategic Plan, Agency Priority 

Goals, and Federal Priority Goals.

1

The 

Congressional Justification also serves as the 

Department’s Annual Performance Report 

and Plan. 

 

1

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

address Federal Goals in the agency Strategic Plan and Annual 

Performance Plan, please refer to Performance.gov for information 

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

goals, where applicable.

Treasury Strategic Goal: Promote 

Domestic Economic Growth and Stability 

while Continuing Reforms to the Financial 

System

Treasury is committed to promoting economic 

growth that allows citizens and businesses to 

have more confidence in the safety and 

soundness of the financial system.

Supporting Small Businesses

The Small Business Jobs Act of 2010 created 

the Small Business Lending Fund (SBLF) and 

the State Small Business Credit Initiative 

(SSBCI). The SBLF helps increase the 

availability of credit to small businesses by 

providing capital to community banks and 

community development loan funds with 

assets under $10 billion. In its first round of 

funding, SSBCI allocated $1.5 billion to 

strengthen state programs that leverage 

private capital and support lending to small 

businesses and small manufacturers that are 

creditworthy but unable to access the credit 

needed to grow and create jobs in their 

communities. From FY 2011 through FY 

2013, SSBCI programs in all 50 states 

supported over $4.1 billion in loans and 

investments to 8,500 small businesses across 

the country — creating or saving more than 

95,000 American jobs, as reported by the 

small businesses who received the loans and 

investments.

The Budget proposes a new authorization of 

$1.5 billion for SSBCI to build on the 

momentum of the program's first round, 

strengthen the federal government's 

relationships with state economic 

development agencies, and provide capital to 

America's diverse community of 

entrepreneurs. This additional $1.5 billion 

would be awarded in two allocations: $1 

billion awarded on a competitive basis to 

states best able to target local market needs, 

promote inclusion, attract private capital for 
Executive Summary - 3

start-up and scale-up businesses, strengthen 

regional entrepreneurial ecosystems, and 

evaluate results; and $500 million awarded by 

a formula based on economic factors such as 

job losses and pace of economic recovery.

Supporting Economic Growth and 

Opportunity

The Budget proposes $233.5 million for the 

Community Development Financial 

Institutions (CDFI) Fund to promote 

economic development investments in lowincome and underserved communities. Of the 

total request, $35 million — an increase of 

$13 million from FY 2015 — for the 

Administration’s Healthy Food Financing 

Initiative will support increased availability of 

affordable, healthy food options for 

Americans living in food deserts.

The CDFI Fund will begin administering in 

FY 2016 a second round of awards under the 

Capital Magnet Fund (CMF). In December 

2014, the Federal Housing Finance Agency 

(FHFA) directed Fannie Mae and Freddie 

Mac to begin allocating funds to CMF as 

authorized by the Housing and Economic 

Recovery Act of 2008 (HERA). The purpose 

of CMF is to make awards to CDFIs and 

qualified nonprofit housing providers to 

increase capital investment for the 

development, preservation, rehabilitation, and 

purchase of affordable housing for lowincome families and for related economic 

development activities.

The Budget proposes legislation to extend the 

CDFI Bond Guarantee program, established 

by the Small Business Jobs Act of 2010, 

through FY 2017 with an annual guarantee

level not to exceed $1 billion to provide a 

source of long-term capital to CDFIs that 

support lending in underserved communities. 

The Budget also proposes reforms to the 

program to increase participation and ensure 

credit-worthy CDFIs have access to this 

important source of capital while continuing

to maintain strong protections against credit 

risk. The CDFI Bond Guarantee program will 

continue to operate at no budgetary cost for 

new guarantees issuances.

Treasury proposes to implement a new $300 

million fund from mandatory appropriations 

to support Pay for Success projects. A 

growing number of state and local 

governments are using the Pay for Success 

model to finance preventive social programs 

that can provide savings to the federal 

government while improving outcomes for 

families and communities. Emerging Pay for 

Success projects are hampered by an inability 

to leverage savings across both levels of 

government and also government programs 

and by a lack of rigorous data. A Pay for 

Success fund will be designed to ensure that 

taxpayers get better returns for funds 

expended and government assets are protected 

by supporting for projects that show 

measurable outcomes resulting in greater 

federal savings and programmatic efficiency. 

Improving Retirement Security 

Many Americans lack access to workplace 

retirement savings plans, which is usually the 

most effective way to save for 

retirement. The risk of an insecure retirement 

is especially great for women, minorities, and 

low-income Americans. Treasury is 

supporting the Administration’s effort to 

improve retirement security by implementing 

a safe, simple, and affordable “starter” 

retirement savings program called myRA. 

Launched in December 2014 as a pilot for a 

group of small, medium and large employers, 

myRA is a retirement savings option with a 

new type of Roth IRA investment that has no 

start-up cost, no fees and no minimum 

contributions. The investment is backed by 

the U.S. Treasury and the account carries no 

risk of losing money. Through regular, 

automatic contributions from a paycheck, 
Executive Summary - 4

myRA is a safe, simple and affordable way 

for individuals to start saving for retirement.

Implementing Financial Reform

The Budget provides resources to continue 

implementation of the comprehensive 

financial reforms included in the Dodd-Frank 

Wall Street Reform and Consumer Protection 

Act. These reforms place tougher limits on 

risk-taking by financial institutions in order to 

promote financial stability and protect the 

American people.

In FY 2016, Treasury will strengthen the 

capabilities of the Federal Insurance Office

and invest in enhanced coordination and 

oversight of regulatory reform through the 

Financial Stability Oversight Council 

(FSOC). The Budget also reinvests savings to 

support U.S. efforts to encourage international 

trade and investment partners to implement 

corresponding financial reforms and 

safeguards — a key element to preventing or 

mitigating future crises.

Winding Down the Troubled Asset Relief 

Program

The actions taken under the Troubled Asset 

Relief Program (TARP), along with other 

emergency measures put in place by the 

Board of Governors of the Federal Reserve 

System and the Federal Deposit Insurance 

Corporation (FDIC), helped prevent the 

collapse of the U.S. financial system and 

stabilize the economy during the recent 

financial crisis. As a result of careful 

stewardship of the program and improved 

financial conditions, the ultimate cost of 

TARP investments to taxpayers has dropped 

from an estimated $341 billion in FY 2009 to 

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

billion when Treasury’s additional AIG 

receipts are included). While winding down 

investment programs, Treasury continues 

TARP programs designed to help struggling 

homeowners avoid foreclosure. 

Stabilizing the Housing Market

Using authority granted under the Emergency 

Economic Stabilization Act (EESA), Treasury 

established two central housing programs 

under TARP, the Making Home Affordable 

(MHA) program and the Hardest Hit Fund 

(HHF). Treasury also used its authority to 

support the Federal Housing Administration’s 

(FHA) Short Refinance Program. In total, 

more than 2.2 million homeowner assistance 

actions have taken place under MHA 

programs. The Hardest Hit Fund provides 

$7.6 billion to 18 states and the District of 

Columbia to provide assistance to struggling 

homeowners through locally tailored 

programs administered by each respective

housing finance agency. To date, 19 housing 

finance agencies have drawn a total of $4.8 

billion under the HHF.

Recently, Treasury and HUD announced

enhancements to MHA programs designed to 

better assist struggling homeowners and 

communities still recovering from the effects 

of the financial crisis. The enhancements will 

help motivate borrowers to continue making 

modified mortgage payments, strengthen the 

safety net for homeowners facing continuing 

financial hardships, and help homeowners in 

MHA programs build equity in their homes, 

an important element in stabilizing distressed 

neighborhoods.

Treasury Strategic Goal: Enhance U.S. 

Competitiveness and Job Creation, and 

Promote International Financial Stability 

and More Balanced Global Growth

Encouraging International Economic 

Growth and Stability

Treasury works bilaterally and multilaterally 

to foster strong, sustainable, and balanced 

global growth; support free trade and open 

markets; promote a level playing field for 

U.S. financial institutions; maintain stable 

international financial markets; encourage 
Executive Summary - 5

foreign investment in the United States while 

protecting national security; and use 

leadership positions in international financial 

institutions to pursue U.S. strategic and 

economic policy goals. 

The Department’s $2.9 billion FY 2016

International Programs Budget request 

provides a cost effective way to promote our 

national security, expand markets for 

American businesses, and address key global 

challenges, including poverty, conflict, 

climate change, and food insecurity. The 

request includes funding for capital increases 

and replenishments at multilateral 

development banks, as well as contributions 

to several targeted funds and funding for 

Treasury’s Office of Technical Assistance. 

A well-resourced and effective IMF is 

indispensable to protecting the health of the 

U.S. economy, enhancing the prosperity of 

American workers, and achieving our national 

security interests. Our request proposes 

appropriations and authorization language to 

increase the U.S. quota in the IMF and 

simultaneously reduce, by an equal amount, 

U.S. participation in the IMF’s New 

Arrangements to Borrow. This language is 

necessary to complete IMF reforms that 

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

IMF. These reforms do not increase the 

current U.S. financial commitment to the 

IMF. We are prepared to work with Congress 

on funding approaches that secure passage of 

these critical reforms as soon as possible..

Treasury Strategic Goal: Fairly and 

Effectively Reform and Modernize Federal 

Financial Management, Accounting, and 

Tax Systems 

Data Transparency

The Budget provides funding for efforts to 

increase transparency and accountability in 

federal financial management and implement 

the Digital Accountability Transparency Act 

of 2014 (DATA Act). The DATA Act 

continues the reporting required under the 

Federal Funding Accountability and 

Transparency Act; requires additional federal

spending data to be displayed on 

USAspending.gov; and requires establishment 

of government-wide financial data standards 

for any federal funds made available to or

expended by federal agencies and entities 

receiving federal funds. Treasury is 

committed to implementing the DATA Act in 

a way that not only increases spending 

transparency but also improves government 

decision-making and increased operational 

efficiency through better access to data.

Internal Revenue Service

The Internal Revenue Service (IRS) collects 

more than 90 percent of federal revenue and 

interacts with virtually every American. 

Resources invested in the bureau represent a 

smart investment for taxpayers, returning 

nearly $4 for every dollar invested. In recent 

years, a lack of sufficient funding for the IRS 

has had major implications for taxpayers and 

the tax system. Despite IRS’s crucial role in 

our government, FY 2015 marks five years of 

Congress reducing the agency’s funding, 

which is now $1.2 billion lower than in FY 

2010. As a result, taxpayers face longer wait 

times on the phone, and it takes longer for the 

IRS to respond to taxpayer correspondence. A 

sustained deterioration in taxpayer service 

combined with reduced enforcement activity 

could create serious long-term risk for the 

U.S. tax system, which relies on voluntary 

compliance. The IRS supports this

compliance by addressing millions of 

taxpayers’ questions in their efforts to comply 

with the law. 

The Budget provides the IRS with $12.3

billion in base discretionary resources, an 

increase of $1.3 billion from FY 2015, to

begin restoring taxpayer services to 
Executive Summary - 6

acceptable levels. Funds are also provided to 

continue major IT projects which aim to 

protect taxpayer information, modernize 

antiquated systems, continue development of 

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

and build efficiencies throughout the agency 

while continuing to fund system development 

due to new legislative mandates including the 

Foreign Account Tax Compliance Act 

(FATCA) and the Affordable Care Act 

(ACA). 

The Budget also proposes a $667 million cap 

adjustment to support program integrity 

efforts aimed at restoring enforcement of 

current tax laws to acceptable levels and to 

help reduce the tax gap. This multi-year 

effort is expected to generate $60 billion in 

additional revenue over the next ten years at a 

cost of $19 billion, thereby reducing the 

deficit by $41 billion. The targeted 

investments made in FY 2016 are expected to

generate nearly $2.8 billion in annual revenue 

once fully operationalized in FY 2018, 

returning nearly $6 to the government for 

every dollar invested for these initiatives. 

Restoring Gulf Coast Communities

The Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) established the Gulf 

Coast Restoration Trust Fund (Trust Fund) to 

maintain the civil and administrative penalties 

arising from the Deepwater Horizon oil 

spill. Treasury serves oversight, 

administrative, compliance, and audit roles to 

help ensure that funds are expended as 

required by the RESTORE Act, and works

with the Gulf Coast Restoration Council to 

administer these funds in supporting 

economic and environmental restoration in 

the Gulf Coast region. The Budget proposes 

legislation that will allow Departmental 

Offices to draw resources from the Trust Fund 

to carry out its responsibilities.

Treasury Strategic Goal: Safeguard the 

Financial System and Use Financial 

Measures to Counter National Security 

Threats 

The Office of Terrorism and Financial 

Intelligence (TFI) oversees and marshals 

Treasury’s intelligence, enforcement, and 

economic sanctions functions in support of 

U.S. national security policies and interests. 

The Budget provides $109.3 million to 

support these efforts.

Treasury is leading the U.S. effort to 

undermine the Islamic State of Iraq and the 

Levant’s (ISIL) finances as part of the 

comprehensive U.S. strategy to disrupt, 

degrade, and ultimately defeat the terrorist 

group. Representative of the comprehensive 

approach to counter ISIL, Treasury is working 

closely with the State Department, the 

Department of Defense, domestic and foreign 

law enforcement, the intelligence community, 

and the international community to undermine 

disrupt ISIL’s revenue streams; to restrict

ISIL’s access to the international financial 

system; and impose sanctions on ISIL’s 

senior leadership and financial facilitators to 

disrupt its ability to operate. 

Safeguarding the Financial System

The Budget provides $113 million for the 

Financial Crimes Enforcement Network 

(FinCEN) to support Treasury’s efforts to 

safeguard the financial system from illicit use, 

combat money laundering, and promote 

national security through the collection, 

analysis, and dissemination of financial 

intelligence and strategic use of financial 

authorities. FinCEN is applying its 

information gathering, analytic, and policy 

resources, along with its international 

relationships with foreign financial 

intelligence units, to combat threats posed by

groups such as ISIL. FinCEN’s work is 

focused on the collection, analysis, and 
Executive Summary - 7

dissemination of financial intelligence 

information.

Collection of Major Asset Forfeitures 

Supports Deficit Reduction

The Treasury Forfeiture Fund received over 

$833.5 million in forfeitures and recoveries in 

FY 2014. The success of Treasury’s asset 

forfeiture program allows the Department to 

make priority investments in law enforcement 

and national security, without requesting 

additional resources from taxpayers. Further, 

it enables Treasury to contribute to deficit 

reduction with a proposed permanent 

cancellation of $875 million from the 

Forfeiture Fund’s unobligated balances in FY 

2016.

Improving the Cybersecurity of Our 

Nation’s Financial Sector

Cyber risks to financial institutions and 

markets are growing in both frequency and 

sophistication. A cyber-attack by a state or 

non-state actor could paralyze our economy 

and cause significant long-term damage. 

Treasury is working to reduce the risks from 

cyber-attacks by helping to improve the 

financial sector’s resilience to such attacks 

and by investing in Treasury’s own defenses

and infrastructure. 

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

Improving Efficiency, Effectiveness, and 

Customer Interaction

Treasury will continue to manage Treasury’s 

resources as effectively and efficiently as 

possible, creating the best value for all 

constituents.

Improving Digital Services

The success rate of government digital 

services is improved when agencies have 

digital service experts on staff with modern 

digital product design, software engineering,

and product management skills. The FY 2016 

Budget includes funding to establish a 

Treasury Digital Service team that will focus 

on transforming the Department’s digital 

services with the greatest impact to taxpayers 

and businesses so they are easier to use and 

more cost-effective to build and maintain. 

Increasing Shared Services

Treasury will continue to focus on achieving 

cost savings for American taxpayers, 

modernizing operations, and increasing 

productivity by governing strategically, 

working smarter, and leveraging technology. 

Increasing the use of shared services and 

better leveraging strategic sourcing for federal 

procurement will help achieve these goals.

Assess the Future of Currency, Including 

the Penny

The production and circulation of currency in 

the United States have been largely 

unchanged for decades, despite the growth in 

electronic financial transactions. Treasury is 

continuing its comprehensive review of U.S. 

currency, including a review of both the 

production and use of coins, in order to 

efficiently promote commerce in the 21st 

century. This review includes alternative 

metals, the United States Mint facilities, and 

consumer behavior and preferences. Treasury 

expects to announce the results of its review 

this fiscal year.

The Budget includes a plan to relocate the 

Bureau of Engraving and Printing’s 

Washington, D.C. facility to a facility more 

appropriate for modern currency production. 

Savings Proposals

As a result of Treasury’s ongoing efforts to 

improve efficiency, reduce costs, and 

streamline operations, the Department has 

been able to propose over $1.1 billion in 

savings in its budget submissions over the 

past five years. 
Executive Summary - 8

FY 2016 President's Budget by Strategic Goal

(Dollars in thousands) 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business Systems Modernization 379,178 379,178 0 

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

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

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

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

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

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

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

Financial Stability Oversight Council 19,316 0 19,316 

Office of Financial Research 108,105 0 108,105 

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

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

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

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

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

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

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

Total Treasury Goal/Objective

Promote domestic economic 

growth and stability while 

continuing reforms of the 

financial system

Enhance U.S. competitiveness 

and job creation, and promote 

international financial stability 

and more balanced global 

growth

Fairly and effectively reform 

and modernize federal 

financial management, 

accounting, and tax systems

Safeguard the financial 

system and use financial 

measures to counter national 

security threats

Create a 21st-century 

approach to government by 

improving efficiency, 

effectiveness and customer 

interaction
Executive Summary - 9

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

(Dollars in Thousands)

 2014 Actual 2015 Enacted 2016 President's Budget

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

through a transfer from the CMS HIRIF account for the Affordable Care Act. IRS FY 2016 Direct FTE includes 858 FTE funded from User Fees.
Executive Summary - 10

Summary of FY 2016 Increases and Decreases

(Dollars in Thousands)

 

 Offsetting Fees/ Total, Treasury

 

 Cancellations/ Appropriations

 DO DSCIP OIG TIGTA SIGTARP CDFI FinCEN TTB Fiscal 

Service IRS Total Rescissions Committee

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

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

Maintaining Current Levels 

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

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

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

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

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

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

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

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

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

Program Integrity Cap 

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

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

Change to Offsetting 

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

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

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

2/ Total Efficiency Savings for Treasury is $28.456 million. BEP and Mint savings of $7.757 million are not reflected in the chart above.
Executive Summary - 11

ORGANIZATION

Throughout its rich history, Treasury’s core mission has not changed. With approximately 100,000 employees in its 

ranks, Treasury remains the steward of the U.S. economy —taking in revenue, meeting financial obligations, and, 

when appropriate, borrowing and investing public funds. In recent years, Treasury’s role has expanded to include 

being a leader in safeguarding and growing the nation’s economy. Treasury is organized into the Departmental 

Offices, seven bureaus, and three inspectors general. The Departmental Offices are primarily responsible for policy 

formulation, while the bureaus are the operating units of the organization.

DEPARTMENTAL OFFICES

Domestic Finance works to preserve confidence in the U.S. Treasury securities market, effectively manage federal 

fiscal operations, strengthen financial institutions and markets, promote access to credit, and improve financial 

access and education in service of America’s long-term economic strength and stability.

International Affairs protects and supports U.S. economic prosperity and national security by working to foster 

the most favorable external environment for sustained jobs and economic growth in the United States.

Terrorism and Financial Intelligence marshals the Department’s intelligence and enforcement functions with 

the twin aims of safeguarding the financial system against illicit use and combating rogue nations, terrorist 

facilitators, weapons of mass destruction proliferators, money launderers, drug kingpins, and other national security 

threats.

Economic Policy reports on current and prospective economic developments and assists in the determination of 

appropriate economic policies. The office is responsible for the review and analysis of domestic economic issues and 

developments in the financial markets.

Tax Policy develops and implements tax policies and programs, reviews regulations and rulings to administer the 

Internal Revenue Code, negotiates tax treaties, and provides economic and legal policy analysis for domestic and 

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

The Treasurer of the United States has direct oversight over the U.S. Mint and Bureau of Engraving and Printing 

and chairs the Advanced Counterfeit Deterrence Steering Committee and is a key liaison with the Federal Reserve. In 

addition, the Treasurer serves as a senior advisor to the Secretary in the areas of community development and public 

engagement.

The Office of Management, including the Chief Financial Officer (CFO), is responsible for managing the 

Department’s financial resources and overseeing Treasury-wide programs, including human capital, information 

technology, acquisition, and diversity and inclusion efforts.

Three inspectors general – the Office of the Inspector General (OIG), the Treasury Inspector General for 

Tax Administration (TIGTA), and the Special Inspector General for the Troubled Asset Relief 

Program (SIGTARP) – provide independent audits, investigations, and oversight of the Department of the 

Treasury and its programs.

Other offices include General Counsel, Legislative Affairs, and Public Affairs. 
Executive Summary - 12

BUREAUS

The Alcohol and Tobacco Tax and Trade Bureau (TTB) collects federal excise taxes on alcohol, tobacco, 

firearms, and ammunition; and is responsible for enforcing and administering laws covering the production, use, and 

distribution of alcohol products.

The Bureau of Engraving and Printing (BEP) develops and produces U.S. currency notes that are trusted 

worldwide.

The Financial Crimes Enforcement Network (FinCEN) safeguards the financial system from illicit use and 

combats money laundering and promotes national security through the collection, analysis, and dissemination of 

financial intelligence and strategic use of financial authorities.

The Bureau of the Fiscal Service (Fiscal Service) —previously the Financial Management Service and the 

Bureau of the Public Debt —provides central payment services to federal program agencies, operates the U.S. 

government’s collections and deposit systems, provides government-wide accounting and reporting services, and 

manages the collection of delinquent debt owed to the U.S. government. In addition, the Fiscal Service borrows the 

money needed to operate the U.S. government through the sale of marketable, savings, and special-purpose 

(including the state and local government series) U.S. Treasury securities, and accounts for and services the public 

debt.

The Internal Revenue Service (IRS) is the largest of the Department’s bureaus and determines, assesses, and 

collects tax revenue in the United States.

The United States Mint (U.S. Mint) designs, mints, and issues U.S. circulating and bullion coins; prepares and 

distributes numismatic coins and other items; and strikes Congressional Gold Medals and other medals of national 

significance. The Mint maintains physical custody and protection of most of the nation’s gold and all of its silver 

assets.

The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises national banks and 

federal savings associations (thrifts) to ensure that they operate in a safe and sound manner, provide fair access to 

financial services, treat customers fairly and comply with applicable laws and regulations. The OCC also supervises 

federal branches and agencies of foreign banks and has rule-making authority for all savings associations.
Executive Summary - 13

DEPARTMENT OF THE TREASURY ORGANIZATIONAL CHART
Executive Summary - 14

TREASURY’S FISCAL YEAR 2014-2017 STRATEGIC FRAMEWORK

The strategic framework comprises the Department’s strategic goals and objectives. All bureaus and offices align their programs 

within this framework, which forms the basis for organizational performance management across the agency.

Strategic 

Goals Strategic Objectives Contributing Bureaus/Offices

Economic

Goal 1: 

Promote domestic 

economic growth 

and stability while 

continuing reforms 

of the financial 

system

1.1: Promote savings and increased access to credit and affordable 

housing options Domestic Finance

International Affairs

Economic Policy

BEP

Fiscal Service

OCC

TTB

U.S. Mint

1.2: Wind down emergency financial crisis response programs

1.3: Complete implementation of financial regulatory reform initiatives, 

continue monitoring capital markets, and address threats to 

stability

1.4: Facilitate commerce by providing trusted and secure U. S. currency, 

products, and services for use by the public

Goal 2: 

Enhance U.S. 

competitiveness and 

job creation, and 

promote 

international 

financial stability 

and more balanced 

global growth

2.1: Promote free trade, open markets, and foreign investment 

opportunities

International Affairs

TFI

Economic Policy

Tax Policy

2.2: Protect global economic and financial stability and press for 

market-determined foreign exchange rates

2.3: Advance U.S. economic, financial, and national security goals by 

leveraging multilateral mechanisms

2.4: Provide technical assistance to developing countries working to 

improve public financial management and strengthen their 

financial systems

Financial

Goal 3:

Fairly and effectively 

reform and 

modernize federal 

financial 

management, 

accounting, and tax 

systems

3.1: Improve the efficiency and transparency of federal financial 

management and government-wide accounting Domestic Finance

Tax Policy

Fiscal Service

IRS

TTB

3.2: Improve the disbursement and collection of federal funds and 

reduce improper payments made by the U.S. government

3.3: Pursue tax reform, implement the Patient Protection and 

Affordable Care Act, and Foreign Account Tax Compliance Act, and 

improve the execution of the tax code

Security

Goal 4: 

Safeguard the 

financial system and 

use financial 

measures to counter 

national security 

threats

4.1: Identify priority threats to the financial system using intelligence 

analysis and outreach to the financial sector

TFI

Domestic Finance

FinCEN

OCC

4.2: Develop, implement, and enforce sanctions and other targeted 

financial measures

4.3: Improve the cybersecurity of our nation’s financial sector critical 

infrastructure

4.4: Protect the integrity of the financial system by implementing, 

promoting, and enforcing anti-money laundering and 

counterterrorism financing standards

Management

Goal 5: 

Create a 21stcentury approach to 

government by 

improving efficiency, 

effectiveness and 

customer interaction

5.1: Increase workforce engagement, performance, and diversity by 

instilling excellence, innovation, and inclusion in Treasury’s 

organizational culture and business practices

All Offices and Bureaus, 

led by the Office of 

Management

5.2: Support effective, data-driven decision-making and encourage 

transparency through intelligent gathering, analysis, sharing, use, 

and dissemination of information 

5.3: Promote efficient use of resources through shared services, strategic 

sourcing, streamlined business processes, and accountability

5.4: Create a culture of service through relentless pursuit of customer 

value
Executive Summary - 15

The 40,500 residents of 

economically depressed 

Sumter, South Carolina will 

see an estimated 1,600 

new jobs in their

community over the next 

decade as a result of the 

construction of a new 

million-plus square foot 

manufacturing facility. 

Continental Tire’s new facility will expand the 

international automotive supplier’s operations in the 

United States. The project received a combined $57.06 

million loan from the Community Reinvestment Fund, 

National Development Council, and People Incorporated 

Financial Services as a result of the New Markets Tax 

Credit Program administered by Treasury’s CDFI Fund. 

Ninety percent of the new jobs created, which offer 

competitive wages, will be entry level. These types of jobs 

are desperately needed in Sumter, where the 

unemployment rate is about 1.5 times the national average 

(as of September 2014). 

FISCAL YEAR 2014 PERFORMANCE BY STRATEGIC GOAL

GOAL 1: PROMOTE DOMESTIC ECONOMIC GROWTH AND STABILITY WHILE 

CONTINUING REFORMS OF THE FINANCIAL SYSTEM

Economic growth stimulates opportunity, mobility, and security for Americans – and allows citizens and businesses to have more 

confidence in the safety and soundness of the financial system. In the FY 2014-2017 strategic plan, Treasury commits to promoting 

domestic economic stability in response to the 2008 financial crisis, building and strengthening domestic financial institutions and

markets, and identifying emerging issues requiring Treasury’s leadership. An additional priority under this goal is to stimulate 

domestic economic growth by facilitating commerce and promoting savings, access to credit, and affordable housing options. 

In FY 2014, Treasury made notable progress toward achieving its strategic objectives under this goal. As indicated in “Table 1: 

Summary of Goal One Performance,” major strides were made in winding down emergency financial crisis response programs, 

extending affordable housing programs to more Americans, 

and implementing major pieces of the financial regulatory 

reform required under the 2010 Dodd-Frank Wall Street 

Reform and Consumer Protection Act. 

In particular, after consulting with the Office of Management 

and Budget (OMB) on performance in this area, Treasury 

determined that “noteworthy progress” is being made toward 

achieving Objective 1.2, “Wind down emergency financial 

crisis response programs,” based on the success of the 

Troubled Asset Relief Program (TARP).

WHAT’S NEXT?

Treasury is focused on pursuing opportunities to increase 

coordination with industry and government partners to 

execute the latest rules and to obtain high-quality data to 

monitor threats to the market. Treasury is also taking steps 

to address the ever-increasing demand for improved services, 

including more sophisticated and accessible currency and 

timely permitting and label approval for alcohol and tobacco 

businesses. Specifically, Treasury plans to pursue the 

following actions in FY 2015:

 Work with Congress to extend the State Small Business 

Credit Initiative (SSBCI) authorization and to advance housing finance reform legislation

 Complete rulemakings for Dodd-Frank implementation and develop rulemaking to streamline and clarify the federal labeling 

and formula requirements for alcoholic beverages

 Complete the remaining pending evaluations of the Community Development Financial Institutions (CDFI) Fund programs

 Continue the transition of the currency quality assurance program and submit alternative metals research to Congress
Executive Summary - 16

TABLE 1: SUMMARY OF GOAL ONE PERFORMANCE 

Strategic 

Objective Key Areas of Progress () and Challenges ()

1.1 Promote 

savings and 

increased access 

to credit and 

affordable 

housing options



Helped increase housing affordability by extending the Making Homes Affordable Program through 

2016 and entering into a partnership with the Department of Housing and Urban Development 

(HUD) to help increase affordable options for renters 



Held the first successful auction of the Floating Rate Note, the first new Treasury security in 15 

years, which will expand the U.S. investor base and provides more options to investors



Provided more than 32,621 affordable housing units through the CDFI Program, New Markets Tax 

Credit Program, and Capital Magnet Fund lending and investing in FY 2014



Introduced myRA, a simple, safe and affordable retirement savings option designed for Americans 

who do not have access to an employer-sponsored retirement plan

 Small business lending at participating banks has grown $13.8 billion over the baseline 

 Sales of retail securities continue to decline due to low interest rates and product complexity

1.2 Wind down 

emergency 

financial crisis 

response 

programs



As of September 2014, Troubled Asset Relief Program (TARP) collections, including proceeds from 

non-TARP AIG-shares sales, exceed total disbursements by $14.5 billion



The Capital Purchase Program has generated $226.3 billion in proceeds for taxpayers through FY 

2014, with 43 institutions remaining in the program ($624.9 million in outstanding investments) 



Completed the disposition of all remaining shares of General Motors in December 2013 and, 

subsequent to Treasury’s sale of approximately 102 million shares in the initial public offering (IPO) 

of Ally, began selling additional shares of Ally common stock through a pre-defined written trading 

plan



Most of the largest mortgage servicers participating in the Making Home Affordable housing 

programs need minor or moderate improvement in their compliance with program requirements, 

according to the most recent Quarterly Servicer Assessment

1.3 Complete 

implementation of 

financial 

regulatory reform 

initiatives, 

continue 

monitoring capital 

markets, and 

address threats to 

stability



Issued the Modernization Report required by Dodd-Frank, which makes recommendations in the 

areas of insurance sector solvency and marketplace regulation



Made solid progress in standardizing essential data, including issuing more than 300,000 Legal 

Entity Identifiers (LEIs) to organizations in 186 countries

 Issued final rules implementing the Volcker Rule and Basel III capital rules

 Coordination with domestic and international actors is resource intensive



Timely and robust data (and analytical capability) are vital to monitoring markets and identifying 

threats, but building the environment and infrastructure are costly

1.4 Facilitate 

commerce by 

providing trusted 

and secure U.S. 

currency, 

products, and 

services for use by 

the public



Launched a currency reader distribution pilot program in 2014 to increase accessibility for the blind 

and visually impaired

 Met increased demand for currency while implementing operational efficiencies



Began circulating the redesigned $100 Federal Reserve note, which includes several new security 

features



Expanded the use of TTB’s Permits Online system, and improvements are in progress to support 

faster processing times for new businesses seeking a federal alcohol permit



Removed a significant barrier to wine export trade by launching a consolidated export certificate for 

wine exports to China



Hosted an infrastructure investment summit that brought together private investors and state and 

local government officials to build partnerships and develop strategies to close the infrastructure 

investment gap



Increasing complexity of currency design and evolving customer needs require more complex and 

costly materials, production technologies, and employee skill sets to maintain high-quality notes

 Current legislation restricts changes to metal composition, size, and weight of coinage



Growth in the alcohol beverage industry and increasing product innovation have increased the 

demand for TTB approvals, resulting in longer lead times to meet requirements that are preconditions to commerce

KEY:  indicates an area of progress;  indicates an area of challenge
Executive Summary - 17

For more than 20 years, International Affairs’ Office of Technical 

Assistance (OTA) has helped developing and transitional countries 

build their capacity to manage government finances more effectively, 

deliver essential public services, and grow their economies. Such 

assistance is also in the U.S. national interest as building strong 

economic governance regimes supports financial sector stability and 

fosters robust trade and investment relations. Currently, OTA 

operates in 44 countries with 100 active programs (see map below).

GOAL 2: ENHANCE U.S. COMPETITIVENESS AND JOB CREATION, AND PROMOTE 

INTERNATIONAL FINANCIAL STABILITY AND MORE BALANCED GLOBAL GROWTH

Treasury protects and supports American economic prosperity by strengthening the external environment for U.S. growth, 

preventing and mitigating global financial instability, and managing key global challenges. Over the next three years, the 

Department will continue to work with international partners to open new opportunities for American businesses and workers, 

level the playing field for U.S. firms doing business abroad, develop sound international financial regulatory standards consistent 

with domestic reforms, promote economic stability in strategically important countries, and leverage U.S. leadership positions in 

the International Financial Institutions (IFIs) to promote U.S. policy priorities around the world.

In FY 2014, Treasury made progress using a sometimes limited set of policy tools while facing major challenges. As indicated in 

“Table 2: Summary of Goal Two Performance,” evolving global geopolitical and financial crises and slowing economic growth in key 

regions and countries required Treasury to shift its focus away from some longer-term goals in favor of more immediate priorities. 

Despite this, Treasury successfully advocated for the prioritization of growth strategies in the Group of 20 (G-20), advanced 

negotiations for critical trade agreements, and 

made progress promoting financial stability in 

Europe. After consulting with OMB on 

performance in this goal, Treasury determined 

that “significant challenges” exist to achieving 

Objective 2.3, “Advance U.S. economic, financial, 

and national security goals by leveraging

multilateral mechanisms,” due largely to the need 

for Congress to approve the 2010 International 

Monetary Fund (IMF) Quota and Governance 

Reforms and insufficient support for multilateral 

assistance priorities, including arrears. 

WHAT’S NEXT?

Although progress toward this goal has been 

hampered by the challenges highlighted above, 

Treasury aims to bolster the impact of its efforts 

through expanded and additional bilateral and 

multilateral engagements in priority regions. 

Specifically, Treasury plans to pursue the following actions in FY 2015:

 Secure congressional approval of the 2010 IMF Quota and Governance Reforms Proposal

 Gain congressional support for Treasury’s International Programs budget proposal, which includes U.S. contributions to 

multilateral organizations in which the U.S. seeks to maintain a leadership position 

 Continue to negotiate tax treaties and international guidelines on the provision of official export financing

 Advance the financial services sections of the major trade agreements currently being negotiated, such as the Trans-Pacific 

Partnership, the Trade in Services Agreement, and the US-EU Trans-Atlantic Trade and Investment Partnership
Executive Summary - 18

TABLE 2: SUMMARY OF GOAL TWO PERFORMANCE 

Strategic 

Objective Key Areas of Progress () and Challenges ()

2.1 Promote free 

trade, open 

markets, and 

foreign 

investment 

opportunities



Negotiations of free trade agreements have progressed in key economic hubs such as the AsiaPacific region; Commitments secured through bilateral engagements including the U.S.-India 

Economic and Financial Partnership and the U.S.-China Strategic and Economic Dialogue



During the fiscal year, the Office of Tax Policy prepared for and testified before the Senate Foreign 

Relations Committee to recommend seven bilateral tax treaties that have been negotiated by the 

Office on behalf of the United States



Evolving global economic and geopolitical conditions affect counterparts’ priorities and 

willingness to make concessions in negotiations



The strengthening US economy yielded a corresponding increase in the number and complexity of 

cases before the Committee on Foreign Investment in the United States (CFIUS), complicating 

interagency coordination of the national security reviews

2.2 Protect global 

economic and 

financial stability 

and press for 

marketdetermined 

exchange rates



Have worked to stabilize the European financial system (Ireland and Portugal successfully exited 

from IMF programs and the Greece IMF program financing gap was resolved)



Made significant contributions to crisis response through Treasury’s Financial Attaché in Moscow 

and the rapid provision of a loan guarantee and technical assistance to Ukraine 



Refocused the G-20 to consider growth strategies and successfully added global rebalancing to the 

Leaders’ Summit Agenda



Evolving global geopolitical, economic, and financial crises require Treasury to rapidly shift its 

focus and limited resources away from longer-term priorities



Rising costs of overseas operations hinder deployment of Financial Attachés and technical 

assistance advisors abroad, negatively impacting performance

2.3 Advance U.S. 

economic, 

financial, and 

national security 

goals by 

leveraging 

multilateral 

mechanisms



Treasury’s Development Impact Honor Awards Program successfully highlighted the benefits of 

multilateral approaches to development 



Continued to successfully encourage the use of systems for measuring, monitoring, and 

incorporating development results in Multilateral Development Bank operations



Treasury’s work at the IMF is unnecessarily complicated by the U.S.’s status as the only country yet 

to approve the 2010 IMF Quota and Governance Reforms



The U.S. could potentially lose influence in IFIs, as overdue U.S. contributions continue to 

accumulate over time due to funding constraints

2.4 Provide 

technical 

assistance to 

developing 

countries 

working to 

improve public 

financial 

management and 

strengthen their 

financial systems



Treasury had success in building relationships with foreign counterparts; 100 projects are 

currently active in 44 countries, and programs received a 3.7 out of 5 in FY 2014 internal 

evaluations for “traction” (which measures engagement with counterparts)



A robust annual programmatic review has been instituted for all active projects before funding is 

allocated for the year; the review process includes defining priorities and measures for programs



The Office of Technical Assistance (OTA) supported successful reforms by several jurisdictions 

previously cited by the Financial Action Task Force for serious non-compliance with anti-money 

laundering and counterterrorism financing standards



Programmatic impact can be outside of Treasury’s control; programs received a 2.9 out of 5 in FY 

2014 internal evaluations for “impact” (which measures achievement of desired changes); rising 

cost of program administration from third parties limiting project selection

KEY:  indicates an area of progress;  indicates an area of challenge
Executive Summary - 19

In July 2014, the Bureau of the Fiscal Service (Fiscal Service) 

released its FY 2013 Annual Report to the States on the Treasury 

Offset Program’s (TOP) Delinquent Debt Collection. The report 

details each state’s success in collecting delinquent debts through a 

unique partnership with the federal government referred to as the 

State Reciprocal Program. 

Debts successfully recovered through 

TOP include delinquent child support 

and state income tax obligations, 

unemployment insurance 

compensation fraud debts, and more. 

“The Fiscal Service is proud of the work we have done in collecting 

more than $3.0 billion in delinquent debts for the states in FY 2013, 

including $1.9 billion of delinquent child support,” said Fiscal 

Service Commissioner Sheryl Morrow. “The simple premise of the 

offset program is that Treasury should not pay those individuals or 

businesses that have failed to meet their government obligations 

without first applying that money to the delinquent obligation.”

GOAL 3: FAIRLY AND EFFECTIVELY REFORM AND MODERNIZE FEDERAL 

FINANCIAL MANAGEMENT, ACCOUNTING, AND TAX SYSTEMS

Treasury is entrusted with managing the nation’s finances, which includes collecting money due to the United States, making 

payments owed by the United States, and financing the federal government by, in addition to collecting revenue, determining and 

executing a borrowing strategy that meets the federal government’s needs at the lowest cost over time. It also includes accounting 

for, and reporting on, the U.S. government’s finances to the American people. Sound financial management enables continual 

operation of essential government services and allows Treasury to meet its financial obligations while minimizing borrowing costs. 

Treasury made great strides during FY 2014, as indicated in “Table 3: Summary of Goal Three Performance.” Treasury began work 

to increase the usability of USAspending.gov, created a centralized service to help federal executive branch agencies reduce 

improper payments, and implemented tax-related 

provisions of both the Patient Protection and 

Affordable Care Act (ACA) and the Foreign 

Account Tax Compliance Act (FATCA). Treasury 

made additional progress in improving payment 

accuracy through continued implementation of the 

“Do Not Pay” Business Center, which uses data to 

review the eligibility of government beneficiaries. 

Furthering Treasury’s efforts, the IRS combatted 

tax refund fraud by using analytics to identify tax 

preparers who submit incorrect or fraudulent tax 

returns. Despite this progress, tight budget 

constraints facing the IRS resulted in fewer 

resources and missed opportunities in enforcement 

and service.

After consulting with OMB on performance in this 

area, Treasury determined that “noteworthy 

progress” was made toward achieving Objective 

3.2, “Improve the disbursement and collection of federal funds and reduce improper payments made by the U.S. government,” due

to achievements in converting to electronic transactions. However, Treasury’s future efforts face “significant challenges” due to the 

difficulty in making further gains toward the objective.

WHAT’S NEXT?

In the face of continued resource limitations and increasing requirements, including the implementation of new legislative 

requirements, Treasury plans to pursue the following in FY 2015: 

 Implement the Digital Accountability and Transparency Act (DATA) and improve IRS level of service to taxpayers, which will 

require Congress to approve increase funding to the IRS and Fiscal Service

 Gain approval of legislative proposals to improve debt collection and reduce Earned Income Tax Credit errors

 Build stronger relationships with the tax community and government partners to increase voluntary tax reporting and payment 

compliance
Executive Summary - 20

TABLE 3: SUMMARY OF GOAL THREE PERFORMANCE 

Strategic 

Objective Key Areas of Progress () and Challenges ()

3.1 Improve the 

efficiency and 

transparency of 

federal financial 

management and 

governmentwide accounting



Improvements made to the reliability of the Financial Report of the U.S. Government include 

making progress in establishing the General Fund as a reporting entity and meeting with 35 

agencies to create Agency Scorecards to facilitate review of agency performance in financial 

reporting



Treasury will receive its 15th clean audit opinion on the Agency Financial Report (AFR) and the 

Schedules of Federal Debt in FY 2014 and continues to report accurately on the Monthly and Daily 

Treasury Statements



Since Treasury assumed program responsibility for USAspending.gov in February 2014, Treasury 

began usability improvements to the website and plans to launch an improved site in March 2015



Encourage innovation from federal agencies and stakeholders to make data more accessible and 

easier to use, through implementation of the DATA Act

3.2 Improve the 

disbursement 

and collection of 

federal funds 

and reduce 

improper 

payments made 

by the U.S. 

government



Implementation of the Paperless Treasury Initiative resulted in the percentage of electronic 

payments increasing from 77 percent in FY 2006 to 94 percent in FY 2014



Completion of the Collections and Cash Management Modernization initiative resulted in an 

increase in the percentage of revenue collected (settled) electronically from 79 percent in FY 2006 

to 98 percent in FY 2014



Treasury created a centralized portal and data analytics service, which provides payment 

verification information for Federal executive branch agencies to help reduce improper payments



Further progress in increasing electronic payments will necessitate changing taxpayers’ behavior 

to achieve voluntary compliance because current law does not mandate electronic payments for 

tax refunds, including prepaid cards currently used for benefit payments to those without bank 

accounts



Legislation is needed to allow for more debt collection tools as well as additional data sources for 

the Do Not Pay program to reduce improper payments

3.3 Pursue tax 

reform, 

implement the 

Patient 

Protection and 

Affordable Care 

Act (ACA) and 

Foreign Account 

Tax Compliance 

Act (FATCA), and 

improve the 

execution of the 

tax code

 Issued a notice that takes targeted action to reduce the benefits of corporate tax inversions



Treasury implemented tax-related provisions of both the ACA and FATCA, including publishing 

major regulatory guidance, and completing 57 FATCA agreements in substance and signing 35 

FATCA agreements in FY 2014



In FY 2014, the IRS suspended or rejected 5.0 million suspicious tax returns and stopped or 

prevented 1.8 million returns worth more than $10.0 billion to combat identity theft

 The Office of Tax Policy continued providing support for the ongoing efforts to achieve tax reform



TTB successfully pursued criminal convictions for the illicit trade of alcohol and tobacco products, 

with millions in tax liabilities identified



TTB made advancements in tobacco science to support its pursuit of regulatory remedies to 

address enforcement challenges related to tax rate differentials on certain tobacco products



The evolving scope and increasing complexity of international tax administration presents an 

increasing implementation challenge, especially when faced with continued reductions in 

resources, limited time to make changes, and the need to collaborate with domestic and 

international partners to enforce the law

 Treasury anticipates future growth in IRS call volumes and walk-in site visits



Diversion schemes used to evade excise taxes on alcohol and tobacco products continue to grow 

and evolve, depriving governments and legitimate businesses of revenue



The constrained budget environment of recent years has major implications for service to 

taxpayers, enforcement of the tax laws, and the overall administration of the tax system

KEY:  indicates an area of progress;  indicates an area of challenge
Executive Summary - 21

Treasury, through the Office of Terrorism and Financial Intelligence 

(TFI), is responsible for safeguarding the financial system from 

abuse by illicit actors. FinCEN, a bureau reporting to the 

undersecretary of TFI, has an area of responsibility that constitutes 

tens of thousands of financial institutions in the United States and 

abroad. It is essential to take a risk-based, intelligence-driven 

approach to enforcement. Consequently, one of Treasury’s FY 

2014-2015 Agency Priority Goals (APG) is to employ a proactive, 

intelligence-driven approach to focus enforcement efforts against 

high priority threats.

Since the inception of this APG, FinCEN, among other achievements, 

developed a number of new advanced analytics algorithms, 

implemented a series of business rules to assist in the identification 

of financial activity related to terror finance and child-related 

crimes, and, as a result of improved processes and prioritizing 

strategies, FinCEN provided 370 intelligence products related to 

national security priorities in FY 2014.

See www.performance.gov for additional information on this APG. 

GOAL 4: SAFEGUARD THE FINANCIAL SYSTEM AND USE FINANCIAL MEASURES 

TO COUNTER NATIONAL SECURITY THREATS

Treasury works to protect the integrity of the financial system and advance key national security and foreign policy objectives 

through: outreach, coordination, and collaboration with public and private sector partners; regulation, enforcement, financial 

intelligence analysis; and targeted financial activities and measures. The Department looks for opportunities to aid the President’s 

financial stability and foreign policy agenda and develop creative alternatives to intervention, or, in the case of the latter, military 

action where possible – including identifying, monitoring, and targeting key issues, economic and financial trends, and national 

security threats in order to avoid key disruptions to economic or national security. 

Treasury also works with industry and government partners to foster the resilience of the financial sector’s critical infrastructure. 

As the Sector Specific Agency for Financial Services, defined under Presidential Policy Directive 21, “Critical Infrastructure Security 

and Resilience,” Treasury participates in interagency and cross sector initiatives and plays a key coordinating role in managing 

responses to disruptive events. While 

Treasury’s sector-specific responsibilities 

include all hazards, whether natural or 

manmade, in recent years, the Department has 

increasingly focused on promoting 

improvements in cybersecurity across the 

financial sector. 

After consulting with OMB on performance in 

this area, Treasury determined that Objective 

4.2, “Develop, implement, and enforce sanctions 

and other targeted financial measures,” made 

“noteworthy progress” due to precedent-setting 

work being done with targeted financial 

measures other than sanctions and to TFI’s 

response to rapidly increasing demands for the 

use of these tools. See “Table 4: Summary of 

Goal Four Performance” for key highlights of 

progress and challenges.

WHAT’S NEXT?

Treasury will focus on keeping pace with the rapid evolution of the financial industry and the threat landscape, including the 

proliferation of virtual currencies. Specifically, Treasury plans to pursue the following actions to sustain or improve progress:

 Continue support of the administration’s national security and foreign policy goals through the development and 

implementation of both traditional and non-traditional sanctions regimes

 Continue rule-making for long-term anti-money laundering and counter terrorist financing priorities

 Gain congressional support for Treasury’s cybersecurity budget proposal to strengthen Treasury run systems

 Continue ongoing information sharing, incident management, and resilience activities with public and private sector partners 

on critical infrastructure and cybersecurity issues
Executive Summary - 22

TABLE 4: SUMMARY OF GOAL FOUR PERFORMANCE 

Strategic 

Objective Key Areas of Progress () and Challenges ()

4.1 Identify 

priority threats to 

the financial 

system using 

intelligence 

analysis and 

outreach to the 

financial sector



Treasury intelligence resources pivoted swiftly to support the U.S. response to the Islamic State of 

Islam and Levant (ISIL) and the Ukraine crisis while remaining focused on sustained priorities

 Hosted a sanctions outreach and educational symposium that drew approximately 500 attendees



Sharing and properly using intelligence within the community, and with foreign partners and the 

financial sector, is an ongoing challenge due to differences in process and increasing workload

 The virtual currency world is rapidly changing, requiring Treasury to respond and adapt quickly

4.2 Develop, 

implement, and 

enforce sanctions 

and other targeted 

financial measures



Treasury actively managed financial sanctions programs and tools, including by taking individuals 

and entities off lists due to changed behavior and adding key individuals and entities to help achieve 

specific missions and broader national security goals 



Forfeiture funds significantly contributed to law enforcement agencies, including in high priority 

third party money laundering cases by the Department of Homeland Security, the IRS, and FinCEN



As the U.S. Government worked with P5+1partners to address Iran’s nuclear program, Treasury has 

provided targeted, reversible sanctions relief, while vigorously enforcing existing sanctions



Treasury developed new sanctions instruments (including the Sectoral Sanctions Identifications and 

Foreign Sanctions Evaders lists) to meet increasingly nuanced requirements for targeted sanctions

 Treasury issued a great deal of new guidance to aid in complying with complex Ukraine sanctions



The use of sanctions and other targeted financial measures has expanded greatly in the last two 

fiscal years, which has strained available resources

4.3 Improve the 

cybersecurity of 

our nation’s 

financial sector



OCC created a new Senior Infrastructure Officer position who will focus on cybersecurity policy for 

the federal banking system



Treasury stood up and expanded the Cyber Intelligence Group to improve the distribution of timely 

actionable information to the private sector and bolster communication channels and relationships



Enhancing collaboration with law enforcement and intelligence community partners in developing 

and disseminating threat and vulnerability trend analyses targeted for financial sector recipients



Coordinating efforts with the private sector and governmental entities to improve awareness and 

utility of tools and practices, such as the NIST Cybersecurity Framework, for enhancing the level of 

cybersecurity resilience in support of financial stability across the financial sector, including 

dissemination of information suited to smaller local entities and the service providers upon which 

they depend

4.4 Protect the 

integrity of the 

financial system by 

implementing, 

promoting, and 

enforcing antimoney laundering 

and 

counterterrorism 

financing 

standards



Treasury enhanced bilateral efforts to combat money laundering and financing of terrorism, 

including by completing the first ever Memorandum of Understanding between the U.S. and Mexico 

to share supervisory information on money laundering and terrorism financing



Treasury and FinCEN issued a proposed rule to enhance financial transparency, by strengthening 

customer due diligence obligations of financial institutions to help prevent the use of anonymous 

companies to engage in or launder the proceeds of illegal activity in the U.S. financial sector



Treasury secured civil penalty assessments working with federal partners against certain institutions 

(HSBC, JP Morgan, etc.) on Bank Secrecy Act (BSA) and money laundering violations



FinCEN promulgated rules and improved information sharing efforts to help clarify and strengthen 

standards, including completing the four-year BSA IT modernization investment, which earned the 

Government Computer News Award and was completed on time and within budget



OCC incorporated BSA and anti-money laundering standards into how they evaluate national banks 

and federal savings associations



FinCEN issued a Geographic Targeting Order (GTO) requiring enhanced reporting by common 

currency carriers crossing parts of the Southwest Border, which will help law enforcement efforts



The rapid evolution of the industry (including the proliferation of virtual currencies) will challenge 

Treasury’s ability to stay ahead of the change and respond appropriately

KEY:  indicates an area of progress;  indicates an area of challenge
Executive Summary - 23

Treasury’s second APG, increasing self-service options for taxpayers, 

aims to increase taxpayer satisfaction by delivering high-quality, 

timely, innovative, and consistent customer service to better 

address taxpayer needs, reduce burden, and encourage voluntary 

compliance. Using analytics and a user-centric approach, the IRS 

will develop online options as part of its multi-channel service 

model. 

Since the beginning of FY 2014, the IRS has launched several online 

interactive tools, including the following:

 IRS Direct Pay: Provides a low-friction electronic payment 

option to enable taxpayers to make payments from their bank 

account without any fees in a single session. 

 e-Authentication, Release 2: Provides taxpayers a userfriendly way to securely access and use IRS online tools and 

applications.

 IRS2Go Mobile Application, Release 4: Enables taxpayer selfservice access to IRS information and services anywhere, 

anytime, and on any device. 

See www.performance.gov for additional information on this APG.

GOAL 5: CREATE A 21ST-CENTURY APPROACH TO GOVERNMENT BY IMPROVING 

EFFICIENCY, EFFECTIVENESS, AND CUSTOMER INTERACTION

Treasury’s future success, both immediate and long term, depends on sustaining and developing the resources required to achieve 

the Department’s mission. These critical resources include finances, physical assets, technology, and, most importantly, people. In 

the FY 2014-2017 strategic plan, Treasury committed to capitalizing on 21st century advances in knowledge, methods, and 

technology to manage resources as effectively and efficiently as possible, creating the best value for all constituents. 

During FY 2014, Treasury made progress toward all of its management-focused strategic objectives. As indicated in “Table 5: 

Summary of Goal Five Performance,” Treasury established a new workforce planning effort, a Data Steward Group to improve data

quality, and designated Federal Financial Management Shared Service Providers, which will help improve the government’s 

efficiency. Additionally, pursuant to OMB guidance to reduce real property costs, Treasury has made progress in implementing a 

three-year real estate plan for FY 2013 - FY 2015 

that identifies tangible actions to freeze or 

reduce Treasury’s space footprint, including the 

following strategies:

 Better use of real property by undertaking 

space alignment efforts including 

optimization or consolidation of existing 

space;

 Increase telework, hoteling, and work space 

sharing; and

 Maximize utilization through improved 

work station standards.

WHAT’S NEXT?

While Treasury continues to make strides in 

creating a 21st century approach to government, 

challenges remain in standardizing data definitions and ensuring high-quality data as well as in sustaining resources focused on 

building a culture of performance improvement and service. These initiatives take time and Treasury remains committed to 

fostering an environment where leaders and employees feel encouraged to focus on these important principles of good government. 

Specifically, Treasury plans to pursue the following actions to sustain or improve progress in FY 2015:

 Finalize plans for a Treasury Senior Executive Service Candidate Development Program

 Adapt Treasury’s QPR process to meet new leadership needs and integrate the SOAR process

 Identify procurement areas in which success is likely to generate large savings on a Department-wide scale

FY 2012 

Baseline 

Sq. Ft.

FY 2014 

Est’d Sq. Ft. 

Change 

from FY 

2012

29,992,024 28,296,288 -1,695,736
Executive Summary - 24

TABLE 5: SUMMARY OF GOAL FIVE PERFORMANCE 

Strategic 

Objective Key Areas of Progress () and Challenges ()

5.1 Increase 

workforce 

engagement, 

performance, and 

diversity by 

instilling 

excellence, 

innovation, and 

inclusion in 

Treasury’s 

organizational 

culture and 

business practices



Treasury implemented an annual Federal Employee Viewpoint Survey (FEVS) analysis, planning, 

and execution cycle to use the data to improve workforce engagement



Treasury established a new workforce planning effort, adopting a model to allow bureaus to 

analyze future workforce requirements and align them to projected mission needs



A Diversity and Inclusion Executive Steering Committee was developed and a Diversity Plan 

established, with active participation by bureaus on the committee and in developing specific 

implementation plans



Treasury exceeded the Small Business Administration’s small business contracting goals for four 

consecutive years (FY 2011-2014)



Treasury has a large number of retirement-eligible employees in key leadership positions, which 

increases the importance of hiring, training, and retaining emerging leaders

5.2 Support 

effective datadriven decisionmaking and 

encourage 

transparency 

through intelligent 

gathering, analysis, 

sharing, use, and 

dissemination of 

information



Treasury established a Data Steward Group to validate and document the rules that drive data 

quality and delivery



Treasury published machine-readable public data listings that developers can leverage to find and 

use datasets and create new services for the American public



Treasury improved the speed of Freedom of Information Act (FOIA) request processing and closed 

ten of its oldest FOIA requests in FY 2014



Treasury put into place crisis response protocols based on rapidly notifying, collecting, 

synthesizing, and sharing critical information necessary for senior leadership decision-making 

during emergencies



Common definitions and data standards are difficult to establish and monitor; information quality 

and consistency are difficult to improve across organizational boundaries and within disparate 

systems within an organization

5.3 Promote 

efficient use of 

resources through 

shared services, 

strategic sourcing, 

streamlined 

business processes, 

and accountability



Treasury worked with OMB to successfully designate four Federal Financial Management Shared 

Service Providers, which will help promote the use of shared services government-wide



Treasury’s use of GSA’s strategic sourcing vehicle for domestic delivery services contracts resulted 

in a discount savings of 27.9 percent over other contracts ($6.3 million)



Data sharing and consistent data analysis is challenging due to multiple contract management 

systems



Sustaining the resources to build a performance improvement culture is challenging in an 

environment of increasing reporting requirements and mission needs

5.4 Create a culture 

of service through

the relentless 

pursuit of customer 

value



Several bureaus and offices, including FinCEN, Fiscal Service, Mint, Management, IRS, and TFI, 

have implemented and are using customer satisfaction surveys to improve program performance 

and determine priorities



The IRS and Management have provided internal training and raised employee awareness of 

customer service best practices



Leadership in the pursuit of customer value increased in several places, including TTB’s proactive 

efforts to improve online guidance and electronic filing options and Economic Policy’s efforts to 

develop popular forecasting models to share with federal partners



Providing the quality of service expected by customers is challenging in an environment with 

constrained resources and increasing demand for services



Late enactment of tax legislation results in a very limited time to prepare adequately for filing 

season, which impacts the level of service that can be provided

KEY:  indicates an area of progress;  indicates an area of challenge
Executive Summary - 25

MANAGEMENT PRIORITIES AND CHALLENGES

Annually, in accordance with the Reports Consolidation Act of 2000, OIG and TIGTA identify the most significant management 

and performance challenges facing the Department. These challenges do not necessarily indicate deficiencies in performance; 

rather, some represent inherent risks that require continuous monitoring. Treasury made progress on these issues in fiscal year 

2014, and will continue to focus on resolving them during fiscal year 2015 and beyond. However, during fiscal year 2015, the OIG 

elevated “Cybersecurity” from a “Matter of Concern” to a “Management Challenge” as “Cyber Threats” and added “Efforts to 

Promote Spending Transparency and to Prevent and Detect Improper Payments,” as a new challenge. Refer to Section C of Part 

3, Other Information, for a detailed discussion of these challenges, listed below.

Note: SIGTARP does not provide the Secretary with an annual report on management and performance challenges. SIGTARP, as a 

special inspector general provides oversight of the Troubled Asset Relief Program, a program that spans several federal agencies, 

while the OIG and TIGTA provide oversight of the Department and IRS, respectively, and report on its management and 

performance challenges.

TREASURY-WIDE MANAGEMENT CHALLENGES – AS IDENTIFIED BY OIG

 Cyber Threats

 Continued Implementation of Dodd-Frank

 Management of Treasury’s Authorities Intended to Support and Improve the Economy

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

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

 Gulf Coast Restoration Trust Fund Administration

IRS MANAGEMENT CHALLENGES – AS IDENTIFIED BY TIGTA

 Security for Taxpayer Data and IRS Employees

 Implementing the Affordable Care Act and Other Tax Law Changes

 Tax Compliance Initiatives

 Fraudulent Claims and Improper Payments

 Achieving Program Efficiencies and Cost Savings

 Modernization

 Providing Quality Taxpayer Service Operations

 Globalization

 Taxpayer Protection and Rights

 Human Capital

A summary of the planned corrective actions can be found in the FY 2014 Agency Financial Report; the FY 2016 Budget supports 

implementation of the identified actions.