Department of the Treasury 

Office of Financial Research 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2019 

 
OFR - 2 

Table of Contents 

Section I – Budget Request........................................................................................................... 3

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

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

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

D – Budget Increases and Decreases Description ....................................................................... 5

1.3 – Operating Levels Table ...................................................................................................... 6

E – Appropriations Language and Explanation of Changes ....................................................... 6

F – Legislative Proposals ............................................................................................................ 6

Section II – Annual Performance Plan and Report ................................................................... 7

A – Strategic Alignment ............................................................................................................. 7

B – Data Center ........................................................................................................................... 7

2.1.1 – Data Center Budget and Performance Plan .................................................................... 8

C – Technology Center ............................................................................................................... 8

D – Research and Analysis Center .............................................................................................. 9

2.1.3 – Research and Analysis Center Budget and Performance Plan ...................................... 10

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

2.1.4 – Operations and Support Services Budget and Performance Plan ................................. 10
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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) 2019 funding level of 

$75.271 million, which is nine percent below its FY 2018 estimated funding level. To align with 

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

implementing an organizational realignment effort to ensure appropriate structure for maximum 

efficiency. In addition, the Budget reflects continued reductions in OFR 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 normal appropriations process beginning in FY 2020. 

1.1 – Resource Detail Table

Dollars in Thousands 

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 the unobligated 

balance line. This is because the first assessment covering the fiscal year beginning October 1 is actually 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 Congress to make informed and comprehensive policies and take actions that will strengthen 

the financial system. In addition, the OFR is authorized to provide certain data to the regulatory 

community, Treasury, financial industry participants and the general public to increase market 

Office of Financial Research

Budgetary Resources

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections Column1 Column2 Column3 Column4 Column5 Column6 Column7 Column8 Column9 Column10

Assessments1 $77,613 $62,995 $59,748 ($3,247) NA -5.15%

Interest $554 $421 $383 ($38) NA -9.00%

Recovery of Prior Year Paid Obligations $68 $63 $60 ($4) NA -5.56%

Recovery of Prior Year Unpaid Obligations $2,330 $3,331 $3,656 $326 NA 9.78%

Restoration of Sequestration Reduction2 $6,262 $5,394 $4,185 ($1,208) NA -22.40%

Unobligated Balances from Prior Years2 $71,250 $63,477 $48,524 ($14,953) NA -23.56%

Total Revenue/Offsetting Collections $158,077 $135,680 $116,556 ($19,124) NA -14.09%

Expenses/Obligations Column1 16Amt 17FTE 17Amt 18FTE 18Amt ChgFTE ChgAmt pctFTE pctAmt

Data Center 44 $17,833 42 $16,348 35 $15,346 (7) ($1,002) -16.67% -6.13%

Technology Center 63 $29,235 53 $25,935 37 $22,325 (16) ($3,610) -30.19% -13.92%

Research Center 53 $15,605 44 $15,185 35 $13,465 (9) ($1,720) -20.45% -11.33%

Operations and Support Services 59 $26,533 51 $25,503 33 $24,135 (18) ($1,368) -35.29% -5.36%

Total Expenses/Obligations 219 $89,206 190 $82,971 140 $75,271 (50) ($7,700) -26.32% -9.28%

Sequestration Reduction ($5,394) ($4,185) $0 $4,185

Net Results $63,477 $48,524 $41,285 ($7,239) -14.92%

FY 2017 FY 2018 FY 2018 to FY 2019

Actual Estimated Estimated Change % Change

FY 2019
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transparency and facilitate monitoring of and research on the financial system. 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, advocate for needed data initiatives, 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 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 through FY 2019 and will support the decisions made 

about resources needed to implement those strategies. The three goals 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. 

 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. 

 

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. 
OFR - 5 

OFR priorities for FY 2018 and FY 2019 that support the three strategic goals include: 1. Collection of bi-lateral repurchase (repo) data that will support both expanded monitoring of 

the repo market, and calculation of the Secured Overnight Funding Rate planned to be used 

as an alternative to LIBOR (US dollar London Interbank Offered Rate) 

2. Publishing the OFR Annual Report 

3. Advancing industry-wide data standards development and use 

4. Implement the Financial System Vulnerability Monitor and Financial Stress Index to monitor 

threats and vulnerabilities in the financial system 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

Office of Financial Research FTE Amount 

FY 2018 Estimated 190 $82,971 

Changes to Base: 

Total FY 2019 Base 190 $82,971 

Program Changes: 

Program Decreases (50) ($7,700) 

Personnel (50) ($6,571) 

Non-Personnel 0 ($1,129) 

Total FY 2019 Estimated 140 $75,271 

D – Budget Increases and Decreases Description 

Program Decreases........................................................................-$7,700,000 

Personnel -$6,571,000 / -50 FTE 

To align with the Administration’s initiative to improve Government efficiency and 

effectiveness, the OFR is implementing a staffing streamlining effort to ensure appropriate levels 

for maximum efficiency. This effort will begin in FY 2018 with full implementation occurring 

in FY 2019. 

Non-Personnel -$1,129,000 / 0 FTE 

The office proposes to continue decreasing administrative costs, reduce supplies and equipment 

purchases, and re-organize management functions. 
OFR - 6 

1.3 – Operating Levels Table

Dollars in Thousands 

Office of Financial Research FY 2017 FY 2018 FY 2019 

Object Classification Actual Estimated Estimated 

 

11.1 - Full-time permanent 32,701 30,146 26,035 

11.3 - Other than full-time permanent 563 515 509 

11.5 - Other personnel compensation 578 555 519 

11.9 - Total personnel compensation 33,842 31,216 27,063 

12.0 - Personnel benefits 12,988 11,579 9,161 

Total Personnel and Compensation Benefits $46,830 $42,795 $36,224 

21.0 - Travel and transportation of persons 447 356 299 

23.3 - Communication, utilities, and misc charges 179 115 110 

24.0 - Printing and reproduction 22 24 8 

25.1 - Advisory and assistance services 10,897 8,446 8,403 

25.2 - Other services from non-Federal sources 939 913 755 

25.3 - Other goods and services from Federal sources 19,915 21,039 20,193 

26.0 - Supplies and materials 6,508 5,748 5,776 

31.0 - Equipment 3,469 3,535 3,503 

Total Non-Personnel $42,376 $40,176 $39,047 

Subtotal New Budgetary Resources $89,206 $82,971 $75,271 

Budget Activities: Column1 Column2 Column3 

 Data Center 17,833 16,348 15,346 

 Technology Center 29,235 25,935 22,325 

 Research Center 15,605 15,185 13,465 

 Operations and Support Services 26,533 25,503 24,135 

Total Budgetary Resources $89,206 $82,971 $75,271 

 

FTE 219 190 140 

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 services, procurement services, 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 normal appropriations process beginning in FY 2020. 
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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 

and analysis to the FSOC and the public. This mission is in direct alignment with Treasury’s 

Strategic Plan for FY 2018-2022, including all objectives under the following goals: 

 Goal 1 - Boost U.S. Economic Growth 

 Goal 2 - Promote Financial Stability 

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

FY 2018 to baseline its performance against the new strategic objectives. This could result in 

additional changes to performance measures in the FY 2020 Budget. 

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

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

OFR’s efforts, working with the FSOC, 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 threats and vulnerabilities in the financial system 

through OFR’s Financial System Vulnerability Monitor and Financial Stress Index 

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

quality data 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 permanent bi-lateral repurchase (repo) agreement data collection 

and supporting the development of an alternative to the London Interbank Offered Rate (LIBOR) 

reference rate. OFR is helping to spearhead both of these efforts. 

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

the state of the U.S. financial system. The OFR also plans to publish the annual Financial 

Stability Report that provides detailed analysis to supplement the Annual Report. 

B – Data Center 

($15,346,000 from Assessments):

As required by statute, the Data Center, on behalf of the Council, collects, validates, and 

maintains all data necessary to carry out the Center’s duties. Under this mandate, the Data 

Center works to increase efficiency in data acquisition and management; reduce redundant 

reporting requirements across the regulatory system (including through more effective datasharing arrangements); and to ensure the security of sensitive data. 

 
OFR - 8 

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 

participants by making data aggregation easier, improving analysis, and reducing data collection 

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

 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 Budget and Performance Plan

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 

 Actual Actual Actual Actual Actual Estimated Estimated 

Expense/Obligations $37,619 $46,940 $17,240 $16,477 $17,833 $16,348 $15,346 

Budget Activity Total $37,619 $46,940 $17,240 $16,477 $17,833 $19,157 $16,865 

FTE 66 90 51 37 44 42 35 

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Number of LEIs Issued 

Cumulatively in the United 

States and Internationally

N/A N/A 395,861 395,861 587,941 I I I

Number of Times That Data 

Standards Related are 

Incorporated in Rules and 

Regulations

N/A N/A 2 9 4 4 I I

Key: I - Indicator

C – Technology Center 

($22,325,000 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. In 

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

managing all Information Technology 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. 

 
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2.1.2 – Technology Center Budget and Performance Plan 

Dollars in Thousands 

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 

 Actual Actual Actual Actual Actual Estimated Estimated 

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 

Expense/Obligations $0 $0 $30,970 $32,132 $29,235 $25,935 $22,325 

Budget Activity Total $0 $0 $30,970 $32,132 $29,235 $25,935 $22,325 

FTE 0 0 51 61 63 53 37 

D – Research and Analysis Center 

($13,465,000 from Assessments): 

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

macroprudential policy, and financial stability. Working closely with the FSOC, 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 multi-factor 

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. There are two 

output measures for this goal. The Research and Analysis measures noted below are planned to 

be replaced in FY 2018 and FY 2019 with new metrics that better capture stakeholder needs and 

better reflect mission accomplishment in this area. 

 

 Number of Research and Analysis Publications (working papers, briefs, staff discussion 

papers, and reports) Made Public – This measure tracks the OFR’s progress in increasing the 

size of its research portfolio available to policy makers, regulators, industry, academics, and 

the public. The measure includes a wide range of published research products, from the 

OFR’s comprehensive annual reports to the more frequently issued working papers. This 

measure was formerly called, “Number of research and analysis products made public.” 

 Financial Stability Monitoring Services and Products Provided – This measure tracks the 

OFR’s output of monitoring tools and other analyses of threats to financial stability. It 

includes tools and information made available to the general public, as well as those 

produced for the Council or Council member agencies. The metric includes tools and 

information such as number of monitor editions, policy analyses, dashboards, and other 

analyses provided directly to the public or to the Financial Stability Oversight Council in 

response to their requests. 
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2.1.3 – Research and Analysis Center Budget and Performance Plan 

Dollars in Thousands 

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 

 Actual Actual Actual Actual Actual Estimated Estimated 

Expense/Obligations $4,733 $7,700 $10,396 $14,239 $15,605 $15,185 $13,465 

Budget Activity Total $4,733 $7,700 $10,396 $14,239 $15,605 $17,719 $11,573 

FTE 26 33 43 54 53 44 35 

Measure FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Number of Research and 

Analysis Publications Made 

Public Year-to-Date

10 15 11 34 20 20 20

 DISC

Financial Stability Monitoring 

Services and Products 

Provided

N/A N/A N/A N/A 33 25 DISC DISC

Number of Monitor Editions, 

Policy Analyses, and 

Dashboards Produced for 

Monitoring Threats to 

Financial Stability

N/A N/A 21 34 DISC DISC DISC DISC

Key: DISC - Discontinued

E – Operations and Support Services 

($24,135,000 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 

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 Budget and Performance Plan 

Dollars in Thousands 

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 

 Actual Actual Actual Actual Actual Estimated Estimated 

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2 

Expense/Obligations $22,953 $26,626 $26,110 $32,026 $26,533 $25,503 $24,135 

Budget Activity Total $22,953 $26,626 $26,110 $32,026 $26,533 $25,503 $24,135 

FTE 35 43 49 56 59 51 33 

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 

information technology and non-technology 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.