Executive Summary - 1 

FY 2018 EXECUTIVE SUMMARY 

CONGRESSIONAL JUSTIFICATION FOR APPROPRIATIONS AND ANNUAL 

PERFORMANCE REPORT AND PLAN 

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 2018 President’s Budget by Function 

Dollars in Thousands 

 

FY 2016 FY 2017 FY 2018 Increase/ Percent

Enacted Annualized CR 

Rate Request Decrease Change

Management & Financial $1,404,653 $1,401,983 $1,122,000 ($279,983) -19.97%

Departmental Offices Salaries and Expenses $222,500 $222,077 $201,751 ($20,326) -9.15%

Terrorism and Financial Intelligence (TFI) $117,000 $116,778 $116,778 $0 0.00%

Cybersecurity Enhancement $0 $0 $27,264 $27,264 100.00%

Department-wide Systems and Capital Investments 

Program $5,000 $4,990 $4,426 ($564) -11.30%

Office of Inspector General $35,416 $35,349 $34,112 ($1,237) -3.50%

Treasury IG for Tax Administration $167,275 $166,957 $161,113 ($5,844) -3.50%

Special Inspector General for TARP $40,671 $40,594 $20,297 ($20,297) -50.00%

Community Development Financial Institutions Fund $233,523 $233,079 $14,000 ($219,079) -93.99%

Financial Crimes Enforcement Network $112,979 $112,764 $112,764 $0 0.00%

Alcohol and Tobacco Tax and Trade Bureau $106,439 $106,237 $98,658 ($7,579) -7.13%

Bureau of the Fiscal Service $363,850 $363,158 $330,837 ($32,321) -8.90%

Tax Administration1 $11,235,000 $11,213,642 $10,975,000 ($238,642) -2.13%

IRS Taxpayer Services $2,333,376 $2,328,940 $2,212,311 ($116,629) -5.01%

IRS Enforcement $4,714,936 $4,855,688 $4,706,500 ($149,188) -3.07%

IRS Operations Support $3,896,688 $3,739,565 $3,946,189 $206,624 5.53%

IRS Business Systems Modernization $290,000 $289,449 $110,000 ($179,449) -62.00%

Subtotal, Treasury Appropriations excluding 

TEOAF $12,639,653 $12,615,625 $12,097,000 ($518,625) -4.11%

Treasury Forfeiture Fund Total2 ($876,000) ($876,000) ($876,000) $0 0.00%

Temporary Rescission ($876,000) ($876,000) $876,000 -100.00%

Permanent Rescission ($876,000) ($876,000) 0.00%

Subtotal, Treasury Appropriations including 

TEOAF $11,763,653 $11,739,625 $11,221,000 ($518,625) -4.42%

Treasury International Programs $2,313,470 $2,309,072 $1,505,953 ($803,119) -34.78%

Multilateral Development Banks $1,816,477 $1,813,024 $1,348,123 ($464,901) -25.64%

Food Security $74,930 $74,787 $30,000 ($44,787) -59.89%

Environmental Trust Funds $398,563 $397,806 $102,375 ($295,431) -74.27%

Office of Technical Assistance (OTA) $23,500 $23,455 $25,455 $2,000 8.53%

Total, Treasury Appropriations $14,077,123 $14,048,697 $12,726,953 ($1,321,744) -9.41%

FY 2017 CR to FY 2018

1/ The IRS was provided with $290 million in funding in its administrative provisions. This table shows that funding as allocated. 

FY 2016/2017: $176.8 million Taxpayer Services, $4.9 million Enforcement, and $108.2 million Operations Support.

2/ In FY 2016 and FY 2017, total includes ($176,000,000) of the DHS Rescission (temporary).
Executive Summary - 2 

Funding Highlights 

The President’s Fiscal Year 2018 Budget provides $11.2 billion in discretionary funding (a 4 percent 

reduction from FY 2017 annualized continuing resolution (CR) levels) for Treasury’s operating accounts 

and $1.5 billion for Treasury’s international assistance programs. This includes: 

 Investing in core administration functions at IRS, modernizing legacy systems and platforms for 

interacting with taxpayers. IRS will utilize technology, training, and internal efficiencies to achieve a 

modest $239 million (two percent) reduction, in support of the President’s commitment to deficit 

reduction. 

 Eliminating funding for Community Development Financial Institutions (CDFI) Fund grants, a 

savings of $210 million from the 2017 annualized CR level. 

 Prioritizing investments in cybersecurity through a Department-wide plan to strategically enhance 

existing security systems and preempt fragmentation of information technology management across 

the bureaus and financial sector.

 Maintaining funding for Treasury’s array of economic enforcement tools and key programs that 

freeze the accounts of terrorists and proliferators, implement sanctions on rogue nations, and link law 

enforcement agencies with financial institutions are critical to the continued safety and financial 

stability of the Nation. 

 Preserving top donor status with international financial institutions while reducing Treasury 

International Programs funding by $803 million, a 35 percent reduction from the FY 2017 annualized 

CR level. 

 Targeted savings in nearly every Treasury program. 

Key Initiatives and Reforms 

 On February 3, 2017, the Administration issued the Executive Order on Core Principles for 

Regulating the United States Financial System. The Secretary of the Treasury, with the heads of the 

member agencies of the Financial Stability Oversight Council, is conducting a thorough review of the 

extent to which existing laws, regulations, and other Government policies promote (or inhibit) these 

Core Principles. The President’s Budget includes $35 billion in savings to be realized through 

reforms that prevent bailouts and reverse burdensome regulations that hinder financial innovation and 

reduce access to credit for hardworking American families. 

 Treasury is developing a plan for responding to the Executive Order on a Comprehensive Plan for 

Reorganizing the Executive Branch which will: 

o identify activities and functions that should be eliminated or consolidated because they are not 

core to our mission, are redundant, or are ineffective; 

o guide Treasury’s efforts to reshape its workforce; 

o determine processes and organizational structures that can be streamlined for greater 

efficiencies; and 

o align reform proposals with the priorities, including goals and objectives, under development 

for the FY 2018-2022 Strategic Plan and the FY 2018 and 2019 budgets. 

 The Budget requests statutory authority for BEP to begin construction of a new currency production 

facility in the vicinity of Washington, D.C.

The Budget includes reauthorization and reforms to the CDFI Bond Guarantee Program to encourage 

provision of community development capital without requiring taxpayer subsidies. 
Executive Summary - 3 

 Fiscal Year Comparison of Full‐Time Equivalent (FTE) Staffing (Direct and Reimbursable) Appropriation Direct Reimb. Total Direct Reimb. Total Direct Reimb. Total Departmental Offices Salaries and Expenses 814 189 1,003 891 107 998 811 107 918 Terrorism and Financial Intelligence 383 31 414 391 31 422 386 31 417 Cybersecurity Enhancement 0 0 0 0 0 0 19 0 19 Office of Inspector General 164 6 170 194 19 213 175 5 180 Treasury Inspector General for Tax Administration 787 2 789 859 2 861 819 2 821 Special Inspector General for TARP 137 0 137 192 0 192 100 0 100 Community Development Financial Institutions Fund 77 0 77 77 0 77 42 0 42 Financial Crimes Enforcement Network 278 1 279 338 1 339 332 1 333

Alcohol and Tobacco Tax and Trade Bureau 470 10 480 494 10 504 456 10 466

Bureau of the Fiscal Service 1,626 417 2,043 1,693 427 2,120 1,680 427 2,107

Internal Revenue Service 77,925 640 78,565 77,008 684 77,692 71,199 711 71,910

Subtotal, Treasury Appropriated Level 82,661 1,296 83,957 82,137 1,281 83,418 76,019 1,294 77,313Office of Financial Stability (Administrative Account) 67 0 67 53 0 53 43 0 43

Small Business Lending Fund Program 11 0 11 7 0 7 8 0 8

State Small Business Credit Initiative 10 10 9 9 0Capital Magnet Fund 7 7 6 6

Office of Financial Research 208 0 208 223 0 223 139 0 139

Financial Stability Oversight Council 22 22 23 23 21 21

Treasury Franchise Fund 0 1,715 1,715 0 1,794 1,794 0 1,848 1,848

Bureau of Engraving and Printing 1,818 0 1,818 1,842 0 1,842 1,842 0 1,842

United States Mint 1,692 0 1,692 1,801 0 1,801 1,801 0 1,801

Office of the Comptroller of the Currency 0 3,845 3,845 0 3,938 3,938 0 4,041 4,041

Terrorism Insurance Program 3 0 3 10 0 10 10 0 10IRS Private Collection Agent Program 5 5 17 17 84 84Subtotal, Treasury Non-Appropriated Level 3,836 5,560 9,396 3,992 5,732 9,724 3,954 5,889 9,843Total, Treasury 86,497 6,856 93,353 86,129 7,013 93,142 79,973 7,183 87,1561/ A portion of Fiscal Service's Reimbursable/Fee FTE is funded by fee revenue as authorized by the Debt Collection Improvement Act (DCIA) of 1996.2/ IRS FY 2018 Total FTE is overstated in the President's Budget Appendix by 102 FTE as a result of a reporting error in the Business Systems Modernization account. 

2016 Actual 2017 Annualized CR Rate 2018 President's Budget
Executive Summary - 4 

 DO TFI Cyber DSCIP OIG TIGTA SIGTAR P CDFI FinCEN TTB FS IRS Subtotal TEOAF T otal

FY 2017 Annualized CR Rate $222,077 $116,778 $0 $4,990 $35,349 $166,957 $40,594 $233,079 $112,764 $106,237 $363,158 $11,213,642 $12,615,625 ($876,000) $11,739,625 

(MCLs)Maintaining Current Levels $4,284 $2,315 - - $729 $3,335 $809 - $2,276 $2,102 $6,971 $220,035 $242,856 - $242,856 Non-Recurring Costs - - - ($4,990) - - - - - - ($14,890) - ($19,880) - ($19,880)Efficiency Savings - ($2,315) - - - - - - ($1,206) ($570) ($1,935) - ($6,026) - ($6,026)

FY 2018 Base $226,361 $116,778 $0 $0 $36,078 $170,292 $41,403 $233,079 $113,834 $107,769 $353,304 $11,433,677 $12,832,575 ($876,Adjustments to Base $4,284 $0 $0 ($4,990) $729 $3,335 $809 $0 $1,070 $1,532 ($9,854) $220,035 $216,950 $0 $216,950 

000) $11,956,575 

Program Decreases ($24,610) - - - ($1,966) ($9,179) ($21,106) ($219,079) ($1,070) ($9,111) ($22,467) ($638,126) ($946,714) - ($946,714)Program Increases - - $27,264 $4,426 - - - - - - - $179,449 $211,139 - $211,139

Subtotal, Program Changes ($24,610) $0 $27,264 $4,426 ($1,966) ($9,179) ($21,106) ($219,079) ($1,070) ($9,111) ($22,467) ($458,677) ($735,575) $0 ($735,575)FY 2018 President's Budget $201,751 $116,778 $27,264 $4,426 $34,112 $161,113 $20,297 $14,000 $112,764 $98,658 $330,837 $10,975,000 $12,097,000 ($876,000) $11,221,000 

(Dollars in Thousands)

Summary of FY 2018 Increases and Decreases
Executive Summary - 5 

Organization

Treasury is organized into the Departmental Offices, seven bureaus, and three inspectors general. 

The Department Offices are primarily responsible for policy formulation, while the bureaus are 

the operating units of the organization. 

 
Executive Summary - 6 

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. 

 Terrorism and Financial Intelligence (TFI) uses Treasury’s unique financial intelligence, 

expertise, and authorities to disrupt and disable terrorists, criminals, and other national 

security and foreign policy threats to the United States and to protect the U.S. and 

international financial systems from abuse. 

 International Affairs protects and supports U.S. economic prosperity and national security 

by working to foster the most favorable external environment for sustained employment 

and economic growth. 

 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. 

 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. 

 The Treasurer of the United States oversees the U.S. Mint and Bureau of Engraving and 

Printing, 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), manages the 

Department’s financial resources and oversees Treasury-wide programs, including human 

capital, information technology, acquisition, and diversity and inclusion. 

 Other offices within Departmental Offices include General Counsel, Legislative Affairs, 

and Public Affairs. 

 Three Inspectors General – the Office of 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 Treasury and its programs. 
Executive Summary - 7 

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, 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) provides central payment services to federal 

program agencies, operates the U.S. government’s collections and deposit systems, delivers 

administrative shared services to federal agencies, provides government-wide accounting and 

reporting services, manages the collection of delinquent debt owed to the U.S. government, 

borrows the money needed to operate the U.S. government through the sale of marketable, 

savings, and special-purpose U.S. Treasury securities (including the state and local government 

series), and accounts for and services the public debt. 

 The Internal Revenue Service (IRS) is the largest of our 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 U.S. 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. 

Treasury Strategic Framework 

The Government Performance and Results Act (GPRA) of 1993 and the GPRA Modernization Act of 

2010 require federal agencies to publish strategic plans every four years, aligning to the Administration 

transition, and establish the need for agencies to identify performance goals, report progress against 

targets, and conduct data-driven reviews. When done well, these practices serve two key purposes for 

stakeholders within and outside of the organization: to assess the organization’s health and impact and 

to inform decision-making and strategy, including effective resource allocation. In this spirit, we 

developed a strategic framework supported by using best-in-class organizational performance practices 
Executive Summary - 8 

to ultimately help achieve its strategic goals. Currently, we are developing Treasury’s FY 2018-2022 

Strategic Plan. 

Treasury Organizational Performance Review Cycle 

Treasury’s organizational performance reviews provide a regular forum for open dialogue and 

coordination between Department and bureau and office leadership, bringing together different 

perspectives to set and align priorities, identify and solve problems, review agency performance goals 

and drive results. The cycle integrates statutory requirements to conduct quarterly performance 

reviews of agency goals and a Strategic Objective Annual Review (SOAR), which analyzes crosscutting performance and designates a set of strategic objectives as making “Noteworthy Progress” or as 

“Focus Area for Improvement.” 

Fall Winter Spring Summer 

Focus 

Performance Strategic Objective 

Annual Review 

(SOAR) 

 Performance Budget 

Goals/Outcomes 

 Gain a shared 

understanding of 

prior year’s 

performance at the 

bureau/office level 

 Set priorities for 

current year 

 Recognize successes 

 Evaluate crossagency progress 

toward strategic 

objectives 

 Identify strategic 

shifts/ validate 

Treasury priorities 

 Outline potential 

topics for annual 

FedStat meeting 

with OMB 

 Introduction of 

bureau/office to new 

leadership 

 Assess progress on 

priorities 

 Surface problems or 

assistance needed 

 Recognize successes

 Connect priorities to 

future funding 

 Explore performance 

impacts 

 Strengthen IT 

acquisition 

budgeting 

accountability

To close out the FY 2014-2017 strategic plan, we used the FY 2017 SOAR to identify focus areas that 

will likely become priorities in the FY 2018-2022 strategic plan (including tax reform, financial 

transparency, and data-driven decision-making). In addition, we completed a scan of Treasury’s 

internal and external environment to identify proposed goals and objectives. The annual performance 

plan will be updated in FY 2019 to reflect the final strategic plan. 

In addition to these department-level reviews, bureaus and offices validate performance data each 

quarter and many run their own internal performance reviews.1

                                                            

1 The FY 2016 Verification and Validation Report is available at: https://www.treasury.gov/about/budget‐

performance/Pages/index.aspx
Executive Summary - 9 

Summary of Management and Performance Challenges 

OIG and TIGTA have identified the most significant management and performance challenges 

facing the Department, in accordance with the Reports Consolidation Act of 2000. These 

challenges do not necessarily indicate deficiencies in performance; some represent inherent risks 

that require continuous monitoring. Refer to Section D of Part 3, Other Information, in the FY 

2016 Treasury Agency Financial Report (AFR) for a detailed discussion of these challenges, 

including our progress toward addressing them.2 GAO releases a government –wide high-risk list 

every two years. Treasury has shared responsibility for one risk area and lead responsibility in 

another. 

 OIG- IDENTIFIED MANAGEMENT CHALLENGES

 Cyber Threats

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

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

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

 TIGTA- IDENTIFIED MANAGEMENT CHALLENGES

 Security Over Taxpayer Data and Protection of IRS Resources 

 Identity Theft and Impersonation Fraud 

 Implementing the Affordable Care Act and Other Tax Law Changes 

 Improving Tax Compliance 

 Reducing Fraudulent Claims and Improper Payments 

 Improving Tax Systems and Expanding Online Services 

 Providing Quality Taxpayer Services Operations 

 Impact of Global Economy on Tax Administration 

 Protecting Taxpayer Rights 

 Achieving Program Efficiencies and Cost Savings 

 GAO- IDENTIFIED HIGH-RISK AREAS

 Modernizing the U.S. Financial Regulatory System and the Federal Role in Housing Finance 

 Enforcement of Tax Laws 

                                                            

2 The FY 2016 Annual Financial Report is available at: https://www.treasury.gov/about/budgetperformance/annual-performance-plan/Documents/FY16%20AFR%20(508)_FINAL.pdf
Executive Summary - 10 

FY 2017 Enacted Levels 

Dollars in Thousands 

 

FY 2016 FY 2017 FY 2017 FY 2018 Increase/ Percent

Enacted Annualized CR 

Rate Omnibus1 Request Decrease Change

Management & Financial $1,404,653 $1,401,983 $1,473,456 $1,122,000 ($279,983) -19.97%

Departmental Offices Salaries and Expenses $222,500 $222,077 $224,376 $201,751 ($20,326) -9.15%

Terrorism and Financial Intelligence (TFI) $117,000 $116,778 $123,000 $116,778 $0 0.00%

Cybersecurity Enhancement $0 $0 $47,743 $27,264 $27,264 100.00%

Department-wide Systems and Capital Investments 

Program $5,000 $4,990 $3,000 $4,426 ($564) -11.30%

Office of Inspector General $35,416 $35,349 $37,044 $34,112 ($1,237) -3.50%

Treasury IG for Tax Administration $167,275 $166,957 $169,634 $161,113 ($5,844) -3.50%

Special Inspector General for TARP $40,671 $40,594 $41,160 $20,297 ($20,297) -50.00%

Community Development Financial Institutions Fund $233,523 $233,079 $248,000 $14,000 ($219,079) -93.99%

Financial Crimes Enforcement Network $112,979 $112,764 $115,003 $112,764 $0 0.00%

Alcohol and Tobacco Tax and Trade Bureau $106,439 $106,237 $111,439 $98,658 ($7,579) -7.13%

Bureau of the Fiscal Service $363,850 $363,158 $353,057 $330,837 ($32,321) -8.90%

Tax Administration2 $11,235,000 $11,213,642 $11,235,000 $10,975,000 ($238,642) -2.13%

IRS Taxpayer Services $2,333,376 $2,328,940 $2,333,376 $2,212,311 ($116,629) -5.01%

IRS Enforcement $4,714,936 $4,855,688 $4,864,936 $4,706,500 ($149,188) -3.07%

IRS Operations Support $3,896,688 $3,739,565 $3,746,688 $3,946,189 $206,624 5.53%

IRS Business Systems Modernization $290,000 $289,449 $290,000 $110,000 ($179,449) -62.00%

Subtotal, Treasury Appropriations excluding 

TEOAF $12,639,653 $12,615,625 $12,708,456 $12,097,000 ($518,625) -4.11%

Treasury Forfeiture Fund Total3 ($876,000) ($876,000) ($1,302,000) ($876,000) $0 0.00%

Temporary Rescission ($876,000) ($876,000) ($988,000) $876,000 -100.00%

Permanent Rescission ($314,000) ($876,000) ($876,000) 0.00%

Subtotal, Treasury Appropriations including 

TEOAF $11,763,653 $11,739,625 $11,406,456 $11,221,000 ($518,625) -4.42%

Treasury International Programs $2,313,470 $2,309,072 $1,800,577 $1,505,953 ($803,119) -34.78%

Multilateral Development Banks $1,816,477 $1,813,024 $1,571,014 $1,348,123 ($464,901) -25.64%

Food Security $74,930 $74,787 $53,000 $30,000 ($44,787) -59.89%

Environmental Trust Funds $398,563 $397,806 $146,563 $102,375 ($295,431) -74.27%

Office of Technical Assistance (OTA) $23,500 $23,455 $30,000 $25,455 $2,000 8.53%

Total, Treasury Appropriations $14,077,123 $14,048,697 $13,207,033 $12,726,953 ($1,321,744) -9.41%

1/ The omnibus was passed after the budget was completed. It is presented here for the readers' convenience.

FY 2017 CR to FY 2018

2/ The IRS was provided with $290 million in funding in its administrative provisions. This table shows that funding as allocated. 

FY 2016/2017: $176.8 million Taxpayer Services, $4.9 million Enforcement, and $108.2 million Operations Support.

3/ In FY 2016 and FY 2017 CR, total includes ($176,000,000) of the DHS Rescission (temporary). FY 2017 Ominibus, total includes ($187,000,000) of the 

DHS Rescission (temporary).