E Pluribus Unum

The theme for the Department of the Treasury’s 2007-2012 Strategic Plan is E 

Pluribus Unum –Out of many, one. Just as the 13 colonies came together to form 

our Union, the many Treasury departmental offices and bureaus operate in unity to 

serve the American people. 

The Latin phrase E Pluribus Unum is found in the Journals of the Continental Congress,

June 20, 1782, where it is used to describe the Great Seal adopted that day (1). 

From the Great Seal’s earliest depiction (2), E Pluribus Unum has appeared on coins 

since 1795 (3) and has graced the back of $1 notes (4) since 1935. The phrase 

has been required on all U.S. coinage by law since February 12, 1873 (5). The 

Treasury Department produces all U.S. legal tender coins and notes for both public 

and private debts.

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United States Department of the Treasury

Fiscal Years 2007-2012 

Stra S

E Pluribus Unum

 Out of Many, One

Strategic Plan
ii
Message from the Secretary . . . . . . . . . . . . . . . . . . . . . . . . . .  

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  

Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Strategic Priorities of the Department of the Treasury . . . . . . . . . . . . 7

Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Strategic Framework for the Department of the Treasury . . . . . . . . . 13

Strategic Goal: Effectively Managed 

U.S. Government Finances                                                     .

Strategic Goal: U.S. and World Economies Perfo

at Full Economic Potential . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Strategic Goal: Prevented Terrorism and Promoted 

the Nation’s Security Through Strengthened 

International Financial Systems . . . . . . . . . . . . . . . . . . . .  2

Strategic Goal: Management and 

Organizational Excellence . . . . . . . . . . . . . . . . . . . . .  2

The Strategic Management System 

of the Department of the Treasury . . . . . . . . . . . . . . . 31

Appendices:

Appendix A: Organizations of the

Department of the Treasury . . . . . . . . . . . . . . . . .  3

Appendix B: The Strategic Framework 

of the Department of the Treasury . . . . . . . . . . . . . 38

Appendix C: The Strategic-Operational 

Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Appendix D: Key Factors Affecting the Strategic 

Outlook of the Department of the Treasury . . . . . . . 42

Appendix E: Summary of Consultation Efforts . . . . . .  4

Appendix F: Strategic Goal Linkage 

to Federal Partners . . . . . . . . . . . . . . . . . . . . . . . . . 47

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Table of Contents
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July 2007 

The Treasury Department plays a critical role in U.S. and global economies that 

reaches back to America’s founding. We are pleased to submit the Strategic Plan of 

the Department of the Treasury for fiscal years 2007 to 2012, which provides the basis 

for strengthening this legacy over the next five years. 

The American economy is a model of strength, flexibility, and resiliency. At the 

Treasury Department, we help to sustain this model by effectively managing the 

government’s finances, promoting economic opportunity at home and abroad 

through sound fiscal policy, working for entitlement reform, strengthening trade and 

investment policies, and maximizing voluntary tax compliance. Utilizing flexibility 

in planning these activities allows us to be responsive to today’s world and to the 

challenges of the new century. 

We acknowledge that the global integration of economies and the liberalization of 

markets hold the promise of a more prosperous and secure world. We will continue 

to promote an economic system that brings a better life for people here and abroad, 

while supporting the national security strategy and ensuring the safety and integrity 

of our financial systems against the abuse of terrorist financiers, money launderers, 

and other criminals. 

The Department is fervently committed to creating the conditions that allow its 

programs and activities to perform efficiently and effectively, while continuing 

to drive results through performance and cost-based decision-making, 

aligning resources to deliver outcomes, investing in, securing and leveraging 

information technology, closing skill gaps, recruiting and retaining a high 

performing workforce, and developing effective leadership. 

The theme of this strategic plan, E Pluribus Unum – out of many, one – 

supports the Department’s commitment that despite its organizational 

diversity, we are one Treasury. Collectively, the strategic objectives 

are clear, the priorities distinct, and the outcomes are meaningful. 

Through the use of performance-based management, we establish 

the foundation for linking funding to performance, helping Treasury 

employees understand, accept, and meet their responsibilities for 

achieving organizational excellence.

With this plan, the Treasury Department is well-positioned to 

embrace change, perform to expectations and fulfill our obligations 

to the American people. We will keep our economy strong and 

chart a course for maintaining and enhancing our global economic 

and financial leadership in the years ahead.

Sincerely, 

Henry M. Paulson, Jr.

Secretary of the Treasury 

Message from the Secretary

Introduction

E Pluribus Unum—Out of Many, One

Most know the Treasury Department has something to do with money, 

but few understand the scope of its functions or how it affects their 

daily lives.

The Department of the Treasury is the steward of the public purse. It takes in 

money, pays bills, and when appropriate, borrows and invests. On a typical day, 

the Treasury Department’s cash transactions average in excess of $58 billion.

The most visible evidence of the Department’s work is currency – the nation’s 

coins and notes. The Bureau of Engraving and Printing produces notes and the 

United States Mint manufactures coins, both for circulation and as collectibles. 

In addition, the United States Mint makes bullion coins for investment and 

secures the nation’s gold reserves.

One of the most important functions the Department of the Treasury 

performs is tax collection, which funds federal government operations 

on behalf of the American people. The Internal Revenue Service collects 

taxes and is the Department’s largest bureau, accounting for about 90 

percent of its employees. The Alcohol and Tobacco Tax and Trade Bureau

collects excise taxes on alcohol, tobacco and firearms, and ensures 

that alcoholic beverages are properly produced, labeled, advertised, 

and marketed.

At some point nearly every American will receive a federal 

disbursement, such as an income tax refund or Social Security 

payment, through the Financial Management Service. It also 

operates the federal government’s collections and deposit 

systems, provides government-wide accounting and reporting 

services, and manages the collection of delinquent debt.

When the total operating cost of the federal government 

exceeds available funds, the Bureau of the Public Debt borrows 

money by selling Treasury securities to the public, institutional 

investors, and authorized government agencies.

Many Americans have bank accounts. The Treasury 

Department’s Office of the Comptroller of the Currency 

and Office of Thrift Supervision charter, regulate, examine, 

and supervise national banks and savings institutions to 

maintain their safety and soundness, and ensure fair access 

and treatment of customers. The Community Development 

Financial Institutions Fund expands the capacity of financial 

The Depar tment

 of the Treasur y

 is the steward

 of the public 

purse. It takes

in money, pays 

bills, and when 

appropriate, 

bor rows and 

invests


institutions to provide credit, capital, and financial services 

to underserved communities which spur economic 

development and create jobs.

The Office of the Treasurer of the United States

advises the Secretary on currency matters and 

communicates changes in currency design 

to the public. The Treasurer also promotes 

improved financial literacy for Americans

 by educating people about the basics 

of cash and credit management so that 

informed decisions can be made about 

their personal and family budgets. 

The Office of Terrorism and Financial 

Intelligence and the Financial Crimes 

Enforcement Network enhances national 

security and combats terrorist financing 

and their support organizations, weapons 

of mass destruction (WMD) proliferators, 

drug traffickers, money launderers, and other 

financial criminals.

 The Inspector General conducts independent audits, 

investigations, and reviews to help ensure that the Treasury 

Department accomplishes its mission, improves its programs and 

operations, promotes economy, efficiency and effectiveness, and prevents and detects fraud, waste,

 and abuse. 

The Treasury Inspector General for Tax Administration provides audit and investigative services to promote 

economy, efficiency, and effectiveness in the administration of the internal revenue laws. 

The Department’s headquarter offices develop policies related to financial regulation, entitlements, taxation, 

and terrorist financing. They also maintain accountability through internal controls, and provide guidance 

in legal, public, and congressional matters. These offices provide data, analysis, and recommendations 

that assist the Secretary of the Treasury, Congress and the President, and other federal agencies in financial 

and economic decision-making for the nation. 

Through these combined efforts the Treasury Department stays accountable to its most important 

stakeholders, the American people.


Vision

Set the global standard in financial and economic leadership.

The Treasury Department‘s vision statement provides a compelling picture 

of the organization’s future. The Department strives to maintain public 

trust and confidence in U.S. and international economic and financial 

systems while building on exemplary leadership, best-in-class processes, 

and a culture that is characteristic of excellence, integrity, and teamwork to 

achieve its goals on behalf of the American people.

Mission

Serve the American people and strengthen national security by 

managing the U.S. Government’s finances effectively, promoting 

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

and security of U.S. and international financial systems.

The Department of the Treasury’s mission highlights its role as the steward 

of the U.S. economic and financial systems, and as an influential participant 

in the global economy.

The Treasury Department is the executive agency responsible for 

promoting economic prosperity and ensuring the financial security of 

the United States. The Department is responsible for a wide range of 

activities such as advising the President on economic and financial 

issues, encouraging sustainable economic growth, and fostering 

improved governance in financial institutions. 

The Department of the Treasury operates and 

maintains systems that are critical to the nation’s 

financial infrastructure, such as the production of 

coin and currency, the disbursement of payments 

to the American public, revenue collection, and the 

borrowing of funds necessary to run the federal 

government. The Department works with other federal 

agencies, foreign governments, and international 

financial institutions to encourage global economic 

growth, raise standards of living, and, to the extent 

possible, predict and prevent economic and financial 

crises. The Treasury Department also performs a 

critical and far-reaching role in enhancing national 

security by implementing economic sanctions 

against foreign threats to the U.S., identifying and 

targeting the financial support networks of national 

security threats, and improving the safeguards of our 

financial systems.

Core Values

Service – Work for the benefit of the American people

Integrity – Aspire to the highest ethical standards of 

honesty, trustworthiness, and dependability

Excellence – Strive to be the best, continuously 

improve, innovate, and adapt

Objectivity – Encourage independent views

Accountability – Responsible for our conduct and work

Community – Dedicated to excellent customer service, 

collaboration, and teamwork while promoting diversity


The Treasury Building – Symbol of Steadfastness

To Americans there is no more impressive symbol of the Treasury Department than the magnificent building itself. Adjacent to the

White House, it is the oldest departmental building in Washington, DC and, when completed, was one of the largest office buildings 

in the world. From the ancient fossils embedded in its black marble flooring tiles to the Greek Revival style of architecture, few U

Government buildings evoke such a sense of security, steadfastness, and permanence (1)

It did not start out that way, the first Treasury building (2) was burned by the British in 1814, and its identical replacement 

was burned by arsonists in 1833. Construction on the current fire-resistant granite structure began in 1836, with intermittent

construction of several additions concluding in 1869 (3) as captured in this 1870 drawing (4). The Treasury building has graced

the back of the $10 note (5) since 1928

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Strategic Priorities of the 

Department of the Treasury 

The Financial Focus: 

Managing the Government’s Finances

The Department of the Treasury’s key priorities for managing the 

government’s finances effectively include collecting money due to the United 

States by maximizing voluntary compliance with tax laws and regulations, 

making payments, and financing the federal government by continually 

improving financial management processes. The Department oversees, 

accounts for, and reports on government collections and expenditures, 

and is responsible for collecting delinquent debt owed the government. 

The Treasury Department forecasts receipts and payments, determines 

borrowing needs, and executes the borrowing strategy to meet the financial 

needs of the federal government at the lowest possible cost over time. 

Increasing voluntary compliance with the tax 

laws reduces the cost of tax administration, 

increases revenue, lessens the need to 

borrow, and ultimately lowers the cost 

of government. To reduce the tax gap, 

the Department must execute its 

comprehensive, integrated, multiyear strategy. The tax gap is the 

difference between what taxpayers 

should pay and what they actually 

pay. The Treasury Department’s 

tax gap reduction strategy is 

guided by the principle that 

voluntary compliance will 

increase through improved 

and expanded taxpayer service and outreach, and effective 

targeted enforcement. Enforcement should be sensitive 

to taxpayer rights and maintain the appropriate balance 

between enforcement and taxpayer burden. 

Financial transactions are becoming increasingly electronic, 

and the Department continues to leverage technology 

advancements to achieve all-electronic cash management. 

Electronic transactions are more efficient than paper 

transactions, saving the federal government millions of dollars 

each year. The Treasury Department continues to convert 

The Depar tment 

collects over $2 

trillion annually 

and manages 

over $8 trillion 

in debt with more 

than $58 billion 

in daily cash 

transactions



Treasur y issues 

more than 

960 million 

payments 

on behalf of 

the federal 

gover nment 

ever y year


Treasury Vaults

For many years both notes and coins were stored in vaults at the Treasury building (1, 2 &4). An officer in 1915 demonstrates the

security of the Reserve & Cash vault doors (3). Today newly produced coins and notes are released directly into the Federal

Reserve System

2

4

3

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paper transactions to electronic transactions in a manner that ensures the secure transfer of information 

and funds.

Financing the government at the lowest possible cost over time necessitates that the Department accurately 

project its revenues and payments, and offer the right mix of debt instruments.


The Economic Focus: 

Securing America’s Economic and Financial Future

The Treasury Department performs both 

policy and operational roles in promoting 

prosperous U.S. and world economies, 

raising standards of living, and protecting 

domestic and international economic 

and financial systems. As the principal 

economic advisor to the President, the 

Secretary of the Treasury utilizes the 

policy expertise of the Department to 

address national and global economic 

and financial challenges.

A top priority of the Department 

is the fundamental reform of 

entitlement programs. Without 

this reform, annual outlays by the federal government for Social Security and Medicare 

are projected to more than double by 2080, representing a grave threat to the American 

economy. In partnership with Congress, the Department of the Treasury will bring its 

economic and fiscal expertise to design and implement needed entitlement program reform.

The Department will actively strive 

to maintain America’s strength 

and prosperity by developing and 

implementing policies that encourage 

overall economic growth. The 

Treasury Department will collaborate 

with Congress to establish progrowth tax programs, and ensure that 

U.S. regulations provide necessary 

protections without harming our 

international competitive position 

and the competitiveness of U.S. 

capital markets. By continuing to 

develop policies that foster innovation 

and skill enhancement, the Treasury 

Department will enable growth 

in productivity that raises living 

standards and keeps America the 

economic envy of the world.

Tested by Treasury

Over the years many items were analyzed in laboratories inside the Treasury 

building. Whiskies were tested in the Treasury building from 1804 to

1918. Regulatory testing of alcoholic beverages is still conducted by one of

Treasury’s bureaus to this day

Today people live longer, healthier, more 

productive lives than they did in 1935 

when the Social Security program was 

created. In 1950, 16 workers paid into

the Social Security system to benefit each 

beneficiar y. Today that ratio has dropped

to only 3.3 workers for each beneficiar 
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The Security Focus: 

Strengthening National Security

The sponsorship of terrorism and the potential acquisition of WMD by rogue regimes and non-state 

entities represent a grave threat to U.S. national security and all free and open societies. The Treasury 

Department implements targeted financial measures and other forms of sanctions against terrorists and 

their support networks, with the goal of stopping the flow of money to terrorist groups, state sponsors of 

terrorism, proliferators of WMD, drug traffickers, money launderers, and regimes that constitute a threat to 

the United States. The Department leads the U.S. Government’s multi-faceted effort to keep the world’s 

financial systems accessible to legitimate users, while excluding those who wish to exploit these systems 

for illegal purposes through law enforcement and appropriate financial regulatory initiatives.

To achieve these goals, the Treasury Department works closely with other U.S. federal agencies, state and 

local governments, foreign governments, international bodies, and private financial institutions to attack 

the financial and support networks of terrorism.

The Treasury Department’s priority is to integrate its financial intelligence activities into the broader 

intelligence community, to invest in information technology infrastructure, and to recruit and retain a 

high-performing workforce required to support the national security strategy.

Safe and Secure

Although it was never needed, during World War II the vault area of Treasury was considered so secure that it was outfitted with an 

office, desks, beds (1), and a fully appointed kitchen (2) for President Franklin Delano Roosevelt and his staff

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The Management Focus: 

Producing Effective Results

Management’s primary role and responsibility in the Department is to create the conditions that allow 

all programs and activities to perform efficiently and effectively. The Treasury Department continues 

to develop integrated plans where policies and operations align to produce maximum value for the 

American people.

The Department’s priorities 

are to drive improved results 

through performance and 

cost–based decision–making, 

strategically align its resources 

to deliver outcomes, secure 

its information technology 

infrastructure and leverage 

technology investments, close 

skill gaps in mission critical 

occupations, and develop 

leadership capacity.

The Department of the Treasury achieves effective results through continuous improvement, and 

linking budget and costs to outcomes. Through an integrated management system, program management 

will be able to determine if goals were achieved with the provided level of resources. To improve value for 

the American people, a number of options can be executed, such as redeployment of resources, competitive 

sourcing, realignment, and redesign of processes.

The Treasur y Franchise Fund’s shared ser vices 

center reduces over head costs and operational 

redundancy by pooling and leveraging resources 

across Treasur y. It now provides integrated

accounting, human resources, procurement, and 

other administrative suppor t ser vices for many 

Treasur y bureaus and other federal entities

Clean Money

To enable reintroduction of soiled, but still serviceable 

currency notes into circulation, Treasury invented a 

“money washing” machine. Each machine could

wash, size, and dry 35,000 greenbacks daily 

(photo dated 1915)
Definition of Terms

Vision is a compelling picture of the organization that all can strive for in the future.

Although it may never be achieved, it is intrinsically motivating and drives the organization 

toward a common purpose.

Mission is the purpose of the organization

Core Values are the ideals that guide behavior for all interactions internal and external to 

the organization.

Strategic Goals are long-term outcomes that help the organization achieve its mission

Strategic Objectives are broad based outcome statements for a group of value chains.

Value Chains are programs grouped by a common purpose. These help employees

understand their shared objectives by identifying activities that cross organizational boundaries 

in the achievement of the Department’s strategic goals

Value Chain Outcomes describe the intended result from carrying out activities for a 

group of programs with a common purpose

Strategies are methods used to achieve outcomes

Indicators are broad-based metrics which show whether outcomes are trending in the 

desired direction.

Measures help determine the impact or influence of Department activities on outcomes.

They have targets associated with them and can be quantitative or qualitative in nature
Strategic Framework for 

the Department of the Treasury

The Treasury Department’s strategic framework is a summary of our 

goals, objectives, and outcomes. This framework provides the basis for 

performance planning and continuous improvement.

Strategic 

Goals

Strategic 

Objectives

Value 

Chains Outcomes

Finance

Effectively Managed 

U.S. Governmen

Finances

Cash resources are available to 

operate the government

Collect

Disburse

Borrow

Invest

Account

• Revenue collected when due through a fair and 

uniform application of the law

• Timely and accurate payments at the lowest 

possible cost

• Government financing at the lowest possible 

cost over time

• Effective cash management

• Accurate, timely, useful, transparent and 

accessible financial information

Economy

U.S. and Worl

Economies Perform at 

Full Economic Potential

Improved economic opportunity, 

mobility and security with 

robust, real, sustainable 

economic growth at home 

and abroad

Strengthen

Regulate

• Strong U.S. economic competitivene

• Competitive capital markets

• Free trade and investment

• Prevented or mitigated financial and 

economic crises

• Decreased gap in global standard of living

Trust and confidence in U.

currency worldwide

Manufacture • Commerce enabled through safe, secure U.S. notes and coi

Security

Prevented Terrorism 

and Promoted the 

Nation’s Security 

Through Strengthened 

International Financial 

Systems

Pre-empted and neutralized 

threats to the international 

financial system and enhanced 

U.S. national securi

Secure • Removed or reduced threats to national security 

from terrorism, proliferation of weapons of 

mass destruction, drug trafficking and other 

criminal activity on the part of rogue regimes, 

individuals, and their support networks

• Safer and more transparent U.S. an

international financial systems

Management

Management and 

Organizational 

Excellence

Enabled and effective 

Treasury Department Manage • A citizen-centered, results-oriented and 

strategically aligned organization

• Exceptional accountability and transparency
The Cash Room 

The Cash Room was opened March 4, 1869, with the Inaugural Reception of President Ulysses S. Grant (1)  The event was s

crowded guests had to wait two hours to retrieve their coats. This exquisite room, with its brass chandeliers and seven different

types of marble, was where government checks could be cashed as recently as 1976 (2), although the gaslight chandeliers were 

removed when the building was electrified. The Cash Room has been completely restored and electric duplicates of the original

chandeliers were installed. The room is now used for special meetings and events (3

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Strategic Goals of the 

Department of the Treasury 

Strategic Goal:

Effectively Managed 

U.S. Government Finances

As the executive agency responsible for managing the nation’s finances, the 

Department of the Treasury provides the American public with cost-effective, 

efficient and secure management of federal finances, and quality customercentered service.

The Treasury Department manages the nation’s finances by collecting 

money due to the United States, making its payments, managing its 

borrowing, investing when appropriate, and performing central accounting 

functions. Sound fiscal management enables continual operation of 

essential government services and allows the Department to meet its 

financial obligations while minimizing borrowing costs. Accurate 

projections of the U.S. government’s cash requirements ensure that 

funds are available to cover federal payments on a daily basis. The 

ability of the Department of the Treasury to manage the nation’s 

finances with integrity is paramount to maintaining financial 

stability and enabling economic growth. 

Achieving this strategic goal requires the implementation of the 

Department’s comprehensive, integrated, multi-year strategy to 

reduce the tax gap. This tax gap reduction strategy is guided by 

the principle that voluntary compliance will increase through 

improved taxpayer service and outreach, coupled with 

enforcement to discourage and deter non-compliance.

Strategic Objective:

Cash resources are available to 

operate the government

The Department forecasts the federal government’s fiscal 

needs and has appropriate systems in place for secure, 

efficient and effective cash management.

The ability of 

the Depar tment 

of the Treasur y 

to manage the 

nation’s finances 

with integrity 

is paramount 

to maintaining 

financial stability 

and enabling 

economic growth
Outcomes

Revenue collected when due through a fair and 

uniform application of the law

The Department of the Treasury maximizes the level of voluntary compliance through a fair and uniform 

application of the law.

Government financing at the lowest possible cost over time 

The federal government finances its expenditures in excess of tax receipts through the sale of debt 

obligations at various maturities. The Department’s activities minimize the interest paid on the national 

debt over time and enhance market liquidity.

Timely and accurate payments at the lowest possible cost

The Treasury Department plays a critical role in society and the economy as it issues government 

payments to the correct recipient at the proper time, including Social Security benefits, tax refunds, and 

veterans benefits.

Accurate, timely, useful, transparent, and accessible financial information 

The Department of the Treasury produces government-wide financial information and reports, that 

contribute to improved quality of the nation’s financial decision-making. 

Effective cash management 

The Department forecasts receipts and payments accurately to ensure sufficient funds, and minimize 

excess borrowing. Excess cash balances are invested.

Strategies

Encourage compliance through improved 

service and expanded outreach

Improving taxpayer service is especially important to help 

taxpayers avoid unintentional errors that contribute to the tax 

gap. Underreporting tax liability accounts for 83 percent of 

the gap between what taxpayers should pay and what they 

actually pay. The Department works with taxpayers and 

other stakeholders to help them understand and meet their 

tax and other financial obligations to the government while 

minimizing the burden of compliance.

The Depar tment spends 

46 cents for ever y 100 

dollars collected in federal 

income taxes
Discourage and deter non-compliance

The Treasury Department relies on those with financial obligations to the government to voluntarily 

comply with the law, but is prepared to take appropriate action when they do not. 

Non-compliance may not be deliberate and can stem from a wide range of causes; however, some noncompliance is intentional, such as the misuse of offshore transactions and the use of abusive tax shelters. 

The Department conducts examinations to ensure that the proper amount of tax is reported and paid. The 

Treasury Department is sensitive to taxpayer rights, and will maintain an appropriate balance between 

enforcement activity and the imposition of unecessary burden on taxpayers.

An important factor of encouraging compliance and deterring noncompliance is a comprehensive tax gap 

reduction strategy with components that include:

• Reform and simplify the tax law 

• Reduce opportunities for evasion and improve efficiency

• Make a multi-year commitment to research which is essential to identifying sources 

of non-compliance

• Continue improvements in information technology which provide better tools to improve 

compliance through early detection, better case selection, and better case management

• Improve compliance activities that enable prevention, detection, and remedy 

non-compliance

• Enhance taxpayer service to help avoid unintentional errors

• Coordinate with partners and stakeholders to share information and compliance strategies

Optimize cash and debt portfolio

The Department of the Treasury will continue to determine the right mix of investment and debt instruments 

that will minimize risk and the cost of financing the government.

Expand all-electronic transactions

The Department will provide incentives and reduce barriers for agencies and customers to increase use of 

electronic payments, savings bonds, and other financial transactions while using technology to automate 

operations, improve security, and create cost-saving efficiencies. 

Modernize

The Treasury Department’s government-wide accounting modernization project will improve reliability, 

timeliness, and accessibility of financial information among federal agencies, the Office of Management 

and Budget, and the banking community.

The Department will strengthen its collection and enforcement efforts by continuing to enhance and 

implement the Internal Revenue Service’s Business Systems Modernization program and projects.
Standardize

The Department of the Treasury will continue its work with 

other agencies to adopt uniform accounting and reporting 

standards, common systems, and standardized definitions 

and usage of federal accounting terms.

Indicators and Measures

Cost to finance the 

government over time

The Treasury Department will develop a cash 

balance financing portfolio model to minimize 

interest costs and other risk factors, such as 

operational and rollover risk.

Voluntary compliance

The Department estimates the portion of total taxes due, 

reported, and paid by the scheduled due date. 

Projection variance

To optimize cash management, the Treasury 

Department measures the difference between 

actual and projected receipts. Improvements 

in forecast accuracy have a direct impact on 

reducing borrowing costs and increasing the 

return on investment.

Percentage of referred delinquent 

debt collected

The Department of the Treasury tracks the 

percentage of delinquent debt it collects 

on behalf of federal agencies by comparing 

collections to the total amount of referred debt.

Percentage of payments made 

electronically

The Department measures the portion of the total volume of payments made electronically. Direct deposit, 

as opposed to paper checks, represents significant savings to American taxpayers, improves payment 

security, and enhances convenience for payment recipients.

If the almost 154 million benefit 

checks issued in fiscal year 2006 

were conver ted to direct deposit, 

the savings to the American 

taxpayer would have been $124 

million. Of the 154 million

checks, 142 million were Social 

Security and Supplemental Security 

Income payments
Strategic Goal: U.S. and World Economies Perform at 

Full Economic Potential

To achieve conditions that enable economies to perform at full economic potential, the Treasury Department 

must stimulate growth through the development and implementation of policies that effectively regulate 

banking and financial markets, create pro-growth tax policies, and advocate free trade. Modernizing 

entitlement programs and ensuring optimal economic performance, by encouraging and supporting 

American competitiveness through innovation, is a critical aspect of this strategic goal. 

Strong and dynamic foreign and domestic economies serve the United States by creating markets 

for the trade of goods and services, and encouraging cooperation and collaboration among nations.

A more robust global economy is brought about by people and nations exchanging value and information 

through trade.

Strategic Objective:

Improved economic opportunity, mobility, and security with robust, 

real, sustainable economic growth at home and abroad

Economic growth stimulates economic opportunity, mobility, and security for Americans and others 

around the world. Promoting the development of new markets in the U.S. ensures that all Americans 

benefit from economic growth. The expansion of underdeveloped economies abroad opens markets, 

enhances regional stability, reduces the spread of disease, creates opportunities for profitable trade, and 

demonstrates democracy in action. The Department of the Treasury leads these efforts on behalf of the 

American people. 

Outcomes

Strong U.S. economic competitiveness 

Strong U.S. economic competitiveness is crucial to robust economic growth worldwide, continued 

investment in the United States, and job creation. The Treasury Department’s contribution to the facilitation 

of a prosperous financial infrastructure, a balanced macro economy, market efficiency, technological 

readiness, and innovation are critical for keeping a sharp competitive edge.

Competitive capital markets 

Prosperous capital markets play an important role in facilitating economic growth. Competitive markets 

inspire investor confidence and offer fair prices. The Department strives to preserve the integrity of the 

U.S. market which is essential to maintaining competitiveness.
2

Free trade and investment

Opening foreign and domestic markets for 

goods and services is vital for a robust, growing, 

and sustainable U.S. economy.

Prevented or mitigated financial 

and economic crises

It is in the best interest of the U.S. and the 

world to prevent financial and economic crises 

and diminish their impact when they occur. 

By promoting sound pro-growth policies and 

troubleshooting, the Department helps retain 

the benefits of economic progress, reduces 

poverty, maintains political stability, and avoids expensive intervention.

Decreased gap in global standard of living 

Sustained strong economic growth creates opportunities, improves quality of life, and reduces poverty.

Strategies

Stimulate U.S. economic growth

Key components of continued American economic growth are remaining competitive in the international 

marketplace, particularly in the realm of science and technology; fostering an economic climate that 

promotes productivity, innovation, learning, and excellence in all fields of endeavor; improving and 

simplifying the tax code and tax strategies; and shrinking the deficit.

The Department will work to help reform the tort system which currently has a negative impact on U.S. 

economic competitiveness due to fear of frivolous, costly, and unnecessary litigation.

Strengthen and modernize entitlement programs

The Treasury Department, in collaboration with Congress and other stakeholders, will help to reform Social 

Security and Medicare which will reduce fiscal burden and enhance the nation’s future economic health 

and competitiveness. 

Engage in financial and economic diplomacy 

An increasingly interconnected and interdependent global economy requires the Department to maintain 

its leadership role in financial and economic diplomacy by promoting economic growth, limiting the impact 

of international financial crises, promoting global economic stability, working to reform the International 

Monetary Fund, stimulating growth through international trade, encouraging increased debt relief for 

the most heavily indebted poor countries, managing U.S. participation in multilateral development 

banks, engaging emerging economies through bilateral initiatives, and providing technical advice to 

A University of Michigan study 

showed that lowering global trade 

bar riers on all products and ser vices, 

by even one-third, could boost the 

U.S. economy by $177 billion

raising living standards for the 

average family by $2,500 annually
developing countries on building marketbased economies.

The Department will support U.S. policy 

objectives by playing a critical role 

in monitoring foreign investment 

in the United States, responding 

to humanitarian emergencies, 

stabilizing fragile economies, and 

opening new markets for U.S. 

financial services and investment. 

Strengthen financial 

institutions and markets

A strong financial sector with a full 

spectrum of competitive services 

enables the timely and fluid conduct of 

business on every level, from individual 

citizens to multi-national corporations. 

Effective supervision of national banks and 

thrifts ensures a safe and sound financial system 

that complies with laws and regulations, and provides fair 

access and treatment of customers. Building the capacity of these and other financial institutions to serve 

the nation’s low-income communities enables economic opportunity. 

Encourage voluntary compliance with the tax code while minimizing 

regulatory and compliance burdens

The Treasury Department encourages voluntary compliance and deters non-compliance through outreach 

and effective enforcement. The Department is committed to minimizing regulatory and compliance 

burdens on the public through more agile and responsive systems, which eliminate redundancy in 

reporting requirements, simplify regulations, forms and instructions, and streamline interactions 

with regulators. 

Promote financial literacy 

The Department’s financial literacy program provides 

information, tools, and guidance on a wide range of 

financial activities from opening a bank account to learning 

how to invest. These resources help people manage their 

personal finances more effectively, ensuring them a sound 

financial future.

Technology accounts for 

approximately 50 percent of 

the United States’ economic 

growth since World War II
Indicators and Measures

Growth-Competitiveness Index 

This index provides a quantified framework to evaluate a nation’s 

competitiveness based on the quality of the macroeconomic 

environment, the state of its public institutions, and the level of 

its technological readiness.

Research and development as a percent of Gross Domestic Product 

Technology is critical to the growth of the economy. The percentage of the Gross Domestic Product spent 

by both government and the private sector on research and development, in science and technology, is an 

indicator of the future health of the economy.

Financial crises per year

The number of countries that default on debt obligations is an indicator of financial crises.

Sustainability imbalance

Sustainability imbalance measures the difference between what has been promised 

to current and future generations above what is projected to be collected in 

federal tax. Other indicators, such as the cost of entitlement programs as 

a percentage of Gross Domestic Product and of total federal spending, 

measure the effect of entitlement reform.

Sum of imports and exports as a percent of 

Gross Domestic Product 

The openness of U.S. markets and the degree of involvement 

in foreign trade of goods and services is gauged through 

the sum of imports and exports as a percent of the Gross 

Domestic Product.

Gap in the global standard of living

The Department uses indicators to monitor the gap in the global 

standard of living, such as the Thiel Indicator and Gini Index.

The U.S. account

for about 1/3 of 

global research and 

development spending
Strategic Objective:

Trust and confidence in U.S. currency worldwide 

Trust and confidence are vital to the continued global acceptance of our currency. U.S. currency is 

redesigned and manufactured to protect the global user from counterfeiting schemes. In addition, the 

Department of the Treasury secures the nation’s gold reserves.

Outcome

Commerce enabled through safe, secure U.S. notes and coins 

The Department reliably provides safe, secure, cost-efficient, high quality U.S. notes, security documents, 

and coins that are readily accepted by all currency users and customers, which facilitates seamless and 

stable commerce.

Strategies 

Respond to customer requirements through adaptive production capability

As demand varies for coin and currency, the Department of the Treasury adjusts its production in a flexible 

manner to meet the United States’ needs efficiently. 

Engage in research and development to 

enhance counterfeit-deterrence features

Research and development assures the continued 

safety and security of notes and coins; a continuing 

commitment keeps the Department ahead of increasingly 

sophisticated counterfeiters.

Promote global suppression of 

counterfeiting 

Through outreach and education, the Treasury Department 

works with global partners to promote awareness of changes 

made to U.S. currency, enabling money handlers to detect 

counterfeit notes.

Extend the life of currency notes 

The Department of the Treasury continues to research and test various materials to prolong the life of 

U.S. notes. Benefits of these changes must be weighed against all factors, including cost and impact on 

counterfeit-deterrent features.

The U.S. Secret Ser vic

estimates that only 

1/1000 of a percent of 

U.S. cur rency in circulatio

worldwide is counter feit
Canceling Money

Once notes were too worn for use, they were cancelled (1).

Mutilated notes were then taken to a vault to await destruction 

(2). This Treasury employee carted wheelbarrows of mutilated

notes for 50 years. The Federal Reserve Banks now handle the

destruction of worn currency

1

2

Consider alternative coin materials

The Department is considering use of possible alternative materials to reduce the cost of 

producing coins.

Indicators and Measures

Response to demand

The Treasury Department will measure its ability to supply quality notes and coins dependably to meet 

Federal Reserve Bank demand.

Counterfeiting rate

The Department of the Treasury will use available information to estimate counterfeiting rates of notes 

in circulation.
Strategic Goal: Prevented Terrorism and Promoted 

the Nation’s Security Through Strengthened 

International Financial Systems

While promoting financial and economic growth at home and abroad, the Treasury Department 

performs an important, unique, and growing role in preserving national security. All national security 

threats – from terrorists to drug traffickers to proliferators of weapons of mass destruction – depend on 

financial and support networks to survive. Terrorists use financial systems to move money for training 

and indoctrinating operatives, bribing officials, procuring false documents, and carrying out horrific 

attacks. Weapons proliferators access the financial sector to pay for the components and services needed 

to build weapons. Drug cartels funnel money through fraudulent businesses and front companies to 

cloak their trafficking activities. Rogue regimes turn to gray markets and illicit activity to raise funds and 

purchase arms.

The Department’s regulatory, law enforcement, and intelligence authorities provide powerful tools for 

the United States to apply pressure against threats to national security when diplomatic outreach may be 

unproductive and traditional military action may be ineffective or inappropriate. 

The Department of the Treasury leverages its unique authorities to safeguard the security of the U.S. and 

international financial and economic systems. These authorities defend against threats by detecting and 

excluding those who would use these systems for illegal purposes or compromise U.S. national security 

interests, while keeping them free and open to legitimate users.

Strategic Objective: Pre-empted and neutralized threats to the 

international financial system and enhanced U.S. national security

Potential threats to U.S. national security and financial systems are identified, minimized, and prevented.

Outcomes 

Removed or reduced threats to 

national security from terrorism, 

proliferation of weapons of mass 

destruction, drug trafficking and 

other criminal activity on the part of 

rogue regimes, individuals, and their 

financial and other support networks

The financial and other support networks of terrorists, 

weapons proliferators, drug traffickers, rogue regimes, 

and other criminals are degraded, impairing the ability 

of individual actors and organizations to carry out 

criminal activities or attacks against the United States, 

its allies and interests worldwide.

“We will direct ever y resource 

at our command to win the war 

against ter rorists, ever y means 

of diplomacy, ever y tool of 

intelligence, ever y instr ument 

of law enforcement, ever y 

financial influence.

– President George W. Bus
Safer and more transparent U.S. and international financial systems

Confidence in the integrity of the U.S. and international financial systems is a key element in fostering 

economic growth as well as improving national security. Transparency in the financial sector denies 

terrorists, drug traffickers, WMD proliferators and other criminals the ability to conceal their illicit dealings. 

U.S. national security is enhanced when financial systems are safeguarded from criminal abuse.

Strategies 

Collect, analyze, and disseminate financial and 

other information concerning national security 

Financial intelligence data helps identify the infrastructure of terrorist and criminal organizations. 

Financial intelligence is uniquely reliable; it allows the Department to track, deter, and disrupt threats. The 

Department of the Treasury, in support of the U.S. Government’s national security policy, has access to 

financial information and conducts all-source analysis to develop a picture of support networks that can 

be shared with the intelligence community, law enforcement, foreign authorities, and the private sector. 

Intelligence and analysis of this type can help create broad deterrence against criminal activity.

Financially and economically isolate, 

disrupt, and dismantle national security threats

The Department exercises a broad range of intelligence, regulatory, policy, and enforcement authorities, and 

tools to track and disrupt the support networks of terrorists, proliferators of weapons of mass destruction, 

rogue regimes, and international drug traffickers; thus degrading security threats facing the United States.

Actions include:

• Targeting and applying financial measures and other forms of sanctions that freeze assets, 

prohibit financial and commercial transactions, and deny access to the U.S. financial and 

commercial systems

• Promoting international relationships that attack the financial and economic foundation of 

threats and their support networks 

• Tracing and repatriating assets looted by rogue regimes

• Promoting a meaningful exchange of information with the private financial sector to help 

detect and address threats to the financial system 

• Protecting U.S. financial institutions by designating appropriate foreign jurisdictions and 

institutions as areas of primary money laundering concern

Shape policy, laws and regulations, and increase compliance

The Department of the Treasury administers the Bank Secrecy Act, enforces regulations to reduce illicit 

financing and money laundering, and ensures compliance with sanctions. The Department leverages its 

relationships with counterparts in foreign governments and banking and financial service industries to 

encourage voluntary compliance with existing laws and regulations.
Damaged Currency Redemption

To this day the Treasury 

Department will redeem 

damaged currency. In

1900, these experts 

carefully examined burned 

notes to determine their 

denomination

Coordinate and integrate 

The Treasury Department will work to seamlessly coordinate its financial intelligence, law enforcement, and 

policymaking authorities under one unified organization. The Department of the Treasury plays a unique 

role linking law enforcement and intelligence communities with financial institutions and regulators, as 

well as with other organizations, and will continue to improve its integration into the broader intelligence 

community. 

Indicators and Measures

Terrorism and Financial Intelligence’s program impact 

The Department will gauge progress in achieving its national security mission by developing composite 

performance measures to assess the impact of its sanctions, law enforcement, intelligence, regulatory and 

diplomatic programs in fighting the war on terror, and reducing threats to U.S. national security. Areas of 

focus include:

• Impact of financial measures and other forms of sanctions

• Impact of law enforcement actions

• Impact of information collection and the analysis of intelligence

• Impact of regulatory activity on transparency of financial systems

• Impact of policymaking, outreach, and diplomacy
Strategic Goal:

Management and Organizational Excellence

The Department of the Treasury strives to maintain public trust and confidence in U.S. and international 

economic and financial systems through exemplary leadership, best-in-class processes, and a culture of 

excellence, integrity, and teamwork. 

The Treasury Department realizes its strategic goals by building a strong institution that is citizen-centered, 

results-oriented, and efficient, while actively promoting innovation. The Department works to implement 

initiatives and programs that benefit the American people.

Each bureau has individual goals, strategies, and metrics to achieve performance goals and improve 

internal business operations. The Treasury Department’s strategic plan establishes the framework that 

provides guidance to bureaus and policy offices.

Strategic Objective: Enabled and effective Treasury Department

Management’s responsibility is to create conditions that enable program goals to be accomplished and 

achieve organizational excellence. The Department continues to integrate policies and operational 

activities to produce optimal value for the American public.

Outcomes

A citizen-centered, results-oriented, and strategically aligned organization 

The Treasury Department is dedicated to serving the public interest and focused on delivering results 

where outcomes align with strategic goals and objectives. 

Exceptional accountability and transparency

Operations improve as a result of using clear and understandable reporting, proper internal controls, 

meaningful performance measures, continuous assessment to achieve desired outcomes, and 

effective management.

Strategies 

Communicate and collaborate effectively 

with Congress and other stakeholders

Constructive action can only be achieved through collaborative relationships. When developing and 

implementing policies and programs, it is necessary to have active, open, and productive dialogue with 

stakeholders whose cooperation and support is required to accomplish the Department’s goals on behalf 

of the American people. 
Align and optimize resources strategically

By aligning resources to strategic priorities and outcomes, the Department will be focused on its 

most important tasks and programs. By leveraging opportunities the Treasury Department optimizes 

resources for shared services and when necessary reallocates to improve efficiency and deliver 

best value. 

Invest in people

The Department uses succession planning to develop emerging leaders. Targeted development and 

training is used to close skill gaps. Human capital flexibilities are used to attract and retain a diverse 

talent pool. Management recognizes and rewards employees for their contributions toward achieving the 

Department’s priorities and outcomes.

Invest in technology

The Department will provide a secure information technology infrastructure, and use Enterprise 

Architecture and Earned Value Management to establish the appropriate mix of transaction processing, 

and analytic and transformational applications that can be utilized effectively and efficiently across the 

Department and the federal government.

Continuously improve

Management regularly reviews progress toward achieving outcomes, and continuously improves by 

planning, executing, evaluating, and adjusting actions to achieve desired results using an integrated 

management system. The Department will focus on a set of critical performance measures and indicators 

and calculate the cost of achieving outcomes and target levels of performance.

Indicators and Measures

Stakeholder indicators

Independent evaluations and audits determine how the Department informs the public, its stakeholders, 

and management about its performance. Auditing addresses mission critical aspects of the Department, 

and its financial statements; audit findings and performance evaluations provide recommendations that 

drive corrective action. The desired result of an audit is an unqualified or clean opinion that conforms to 

generally accepted accounting principles.

Process indicators

Quality, cycle time, and cost are important indicators of internal process performance.
Evolving Responsibilities

Many government agencies had their start in the Treasury Department. The Office of the Supervising Architect of the Treasury (1),

which began when the building was under construction, grew to handle architectural jobs for other areas of government as well.

In 1920 personnel from the Office of the Supervising Architect posed in front of the west portico (2). Architectural functions were

transferred to the General Services Administration in 1949

2

1

Human capital indicators

To provide a comprehensive picture of 

accountability and personnel management, 

the Department measures core competency 

gap closure, leadership depth development, 

hiring time, retention rates, and analyze 

the results of the Federal Human 

Capital Survey. 

Results indicators

The Department of the Treasury will measure 

progress on outcomes through appropriate 

measures and indicators, assess the degree 

of budget and outcome alignment, and 

calculate the cost of achieving outcomes 

and target levels of performance.

3

On November 15 of each year, the 

Depar tment issues its Per for mance and 

Accountability Repor t for the 

prior fiscal year. Since fiscal year

2000, the auditors have given the 

Depar tment an unqualified or “clean” 

audit opinion
Strategic Management 

System of the Department 

of the Treasury

Renewing Our 

Commitment to Excellence

In building the fiscal year 2007-2012 strategic plan, the Treasury Department 

took the opportunity to refine and test its strategic goals against a changing 

global environment. In this plan, the Treasury Department went beyond 

linking performance to the budget, and established an integrated 

management system that will address continuously improvement and add 

value for all of its stakeholders.

Typical strategic planning uses a forecast of the future based on the 

realities of today. This type of planning tends to be event-driven, 

and narrowly focused. The Treasury Department supplemented 

this approach by assessing the potential effect that a wide range of 

factors can have on the organization (see Appendix D). The goal 

is to manage future uncertainty and act effectively in the face of 

future ambiguity. 

Understanding the future in the context of a broad set of 

possibilities, the Department tested the robustness of its mission 

and made some important changes. These changes include 

articulating a vision and a set of core values by which the 

Department will operate, enabling the strategic plan to serve 

the Treasury Department and its stakeholders effectively with 

a high degree of institutional longevity.

The strategic goals are stated in an outcome-oriented 

manner, describing the result the Department wishes to 

achieve. In developing outcomes and objectives, the Treasury 

Department identifies value chains, or programs grouped by 

common purpose: collect, disburse, borrow, invest, account, 

strengthen, regulate, manufacture, secure, and manage. Value 

chain outcomes help employees understand their shared 

objectives by identifying activities that cross organizational 

boundaries in the achievement of the Department’s strategic 

goals. Value chain outcomes can be assessed for cost 

and performance.
Executing the Strategic Plan

To accomplish its strategic objectives effectively, the Department of the Treasury must link outcomes, 

strategy, budget, and the production of value into an integrated management system. This management 

system, based on a model of continuous improvement, is shown below:

The process begins with an understanding of important national priorities and outcomes, which are 

then translated into broadly defined, intended results for the Department. These become the Treasury 

Department’s strategic goals and objectives. Outcomes related to these strategic goals and objectives are 

then articulated. Strategies are developed to achieve the outcomes, and then measures and indicators are 

identified to provide the means to assess progress.

Integrated

Management

System

• Compare actual to target

 performance and benchmarks

• Determine changes that will produce 

 the best value

• Broadly defined intended results 

 and the methods to achieve them

• Track the progress, cost and value 

 of achieving outcomes

• Performance - Specifically defined 

 intended results 

• Budget and spend plan - how funds

 will be allocated to achieve the 

 intended results

• Value - achieving enough benefit for 

 the investment

• Establish long-term and annual targets

 for spending, performance, and value

Assessing & Improving

Strategic Planning

Executing & Performing

Performance Planning

& Budgeting
Once the Department of the Treasury’s 

strategic framework is established, 

performance planning is possible. 

Performance planning is focused on the 

outcomes developed in this strategic plan, 

where a funding determination is made to 

achieve the intended results. Long-term and 

annual targets for performance measures 

are then formulated. Funding will be tied 

to the level of performance that needs to 

be achieved. As part of the management 

process, a number of options, such as 

reallocation of resources when necessary, shared services, competitive sourcing, realignment, or redesign 

of processes can be executed to improve value for stakeholders. 

The Treasury Department will then execute and perform according to the plan, tracking progress on 

outcomes, and the cost to achieve them. As part of the Department’s continuous improvement strategy, 

comparisons of actual performance to desired targets and applicable benchmarks will be performed. 

Management will add value by continually striving to make changes that will produce the most effective 

results, which will ultimately produce increased value for the American taxpayer.

Managing for Accountability

Achieving and maintaining exemplary accountability 

and transparency is critical for the Treasury 

Department as the primary financial agency of 

the U.S. Government. The Department follows 

proper internal controls that serve to deter 

and eliminate fraud, waste, and abuse, while 

increasing efficiency and effectiveness.

The two independent Offices of the 

Inspector General and other examiners 

conduct audits and investigations, when 

necessary, to identify problems, abuses, 

and deficiencies in the Department’s 

programs and recommend appropriate 

corrective actions.

“If you are doing something that 

cannot be evaluated, you are in the 

awkward position of being unable 

to demonstrate that you are doing 

anything at all.

– Dr. Rober t F. Mager, 19
Strength Through Unity

A visual representation of E Pluribus Unum could be the Roman fasces, an axe surrounded by a cylinder of birch rods tied with 

ribbon, symbolizing power and strength through unity. This design theme is evident throughout Treasury  The architects employe

it in the staircases (1 & 2) and in the doorframes and fireplace in the Andrew Johnson Suite (3). A careful eye will also note its

use in frosted transoms, on large, ornate golden frames at various locations around the building and on the base of the statue of 

Alexander Hamilton, Treasury’s first Secretary, at the entrance to the south wing (4). An early Treasury seal from 1800 features

fasces on a Treasury strongbox. A seal featuring Nero, the Treasury Department’s watchdog who guarded the Nation’s first minting

facility, was purchased in 1793 for $3 (5). A fasces also appears on the reverse of the Mercury dime (6

1 5

2 4

3

6
Appendices

Appendix A: 

Organizations of 

the Department of the Treasur y

The Department of the Treasury (www.treas.gov) is organized into two major 

components, the departmental offices and the bureaus. The departmental 

offices are primarily responsible for policy formulation, while the bureaus 

are primarily the operating units of the organization. 

Departmental Offices

Domestic Finance (www.treas.gov/offices/domestic-finance/) advises and 

assists in areas of domestic finance, banking, and other related economic 

matters. In addition, this office develops policies and guidance for 

Treasury Department responsibilities in the areas of financial institutions, 

federal debt finance, financial regulation, capital markets, financial 

management, fiscal policy and cash management decisions.

Economic Policy (www.treas.gov/offices/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.

Terrorism and Financial Intelligence (www.treas.

gov/offices/enforcement/) 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, 

money launderers, drug kingpins, and other national 

security threats.

International Affairs (www.treas.gov/offices

/international-affairs/) advises and assists in the formulation 

and execution of U.S. international economic, financial 

monetary, trade, investment, bilateral aid, environment, debt, 

development, and energy policy, including U.S. participation 

in international financial institutions.
Tax Policy (www.treas.gov/offices/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 estimates for the President’s budget.

Treasurer of the United States (www.treas.gov/offices/treasurer/) advises the Secretary on matters relating 

to coinage, currency, and the production of other financial instruments. The Treasurer also serves as one 

of the Department’s principal advisors and a spokesperson in the area of financial literacy and education.

The Community Development Financial Institutions Fund (www.cdfifund.gov) expands the capacity 

of community development financial institutions and community development entities to provide credit, 

capital, tax credit allocations, and financial services to underserved populations and communities in the 

United States. 

Internally, Treasury’s Departmental Offices are responsible for the overall management of the 

Department. The Office of Management and the Chief Financial Officer is responsible 

for internal management and controls. Support organizations include General Counsel, 

Legislative Affairs, and Public Affairs. Also, two inspector general organizations, the Treasury 

Inspector General for Tax Administration and the Office of the Inspector General

provide independent audits, investigations, and oversight to the Department of the Treasury and 

its programs.

Bureaus 

Bureaus employ 98 percent of the work force and are responsible for carrying out specific operations 

assigned to the Department.

The Alcohol and Tobacco Tax and Trade Bureau (www.ttb.gov) collects excise taxes on alcohol, 

tobacco, and firearms that are lawfully due the government, protects consumers of alcoholic beverages 

through voluntary compliance programs that are based on education and enforcement to ensure a fair 

marketplace, and assists industry members in understanding and complying voluntarily with federal tax, 

product, and marketing requirements.

The Bureau of Engraving and Printing (www.moneyfactory.gov) designs and manufactures high 

quality notes and other financial documents that deter counterfeiting and meet customer requirements 

for quality, quantity, and performance.

The Bureau of the Public Debt (www.publicdebt.treas.gov) borrows the money needed to operate the 

federal government through the sale of U.S. Treasury marketable, savings, and special purpose securities. 

In addition, it accounts for and services the resulting public debt and provides reimbursable support 

services to federal agencies.

The Financial Crimes Enforcement Network (www.fincen.gov) safeguards the financial system from 

the abuses of financial crime, including terrorist financing, money laundering, and other illicit activity.

The Financial Management Service (www.fms.treas.gov) provides central payment services to 

federal program agencies, operates the federal 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.
The Internal Revenue Service (www.irs.gov) is the largest of the Department’s bureaus and it 

determines, assesses, and collects tax revenue for the federal government.

The United States Mint (www.usmint.gov) designs, produces, and issues circulating and bullion coins, 

numismatic coins and other items, Congressional gold medals, and other medals of national significance. 

The United States Mint maintains physical custody and protection of the nation’s gold assets. 

The Office of the Comptroller of the Currency (www.occ.treas.gov) charters, regulates, and supervises 

national banks to ensure a safe, sound, and competitive banking system that supports citizens, communities, 

and the economy.

The Office of Thrift Supervision (www.ots.treas.gov) charters, examines, supervises, and regulates 

federal and many state-chartered thrift associations in order to maintain their safety and soundness and 

compliance with consumer laws, and to encourage a competitive industry that meets America’s financial 

services needs.
Appendix B: 

The Strategic Framework of the Department of the Treasur y

The Department’s strategic framework is a summary of its goals, objectives, outcomes, value chains, 

strategies, indicators, and measures. This framework provides the basis for performance planning and 

continuous improvement.

Strategic 

Goals

Strategic 

Objectives

Value 

Chains Outcomes

Finance

Effectively Managed 

U.S. Governmen

Finances

Cash resources are available to 

operate the government

Collect

Disburse

Borrow

Account

Invest

• Revenue collected when due through a fair and uniform application of the law

• Timely and accurate payments at the lowest 

possible cost

• Government financing at the lowest possible 

cost over time

• Effective cash management

• Accurate, timely, useful, transparent and accessible 

financial information

Economy

U.S. and Worl

Economies Perform at 

Full Economic Potential

Improved economic opportunity, 

mobility and security with 

robust, real, sustainable 

economic growth at home 

and abroad

Strengthen

Regulate

• Strong U.S. economic competitivene

• Competitive capital markets

• Free trade and investment

• Prevented or mitigated financial and economic crises

• Decreased gap in global standard of living

Trust and confidence in U.S. currency worldwi

Manufacture • Commerce enabled through safe, secure U.S. note

and coins

Security

Prevented Terrorism 

and Promoted the 

Nation’s Security 

Through Strengthened 

International Financial 

Systems

Pre-empted and neutralized 

threats to the international 

financial system and enhanced 

U.S. national securit

Secure • Removed or reduced threats to national security 

from terrorism, proliferation of weapons of mass 

destruction, drug trafficking and other criminal 

activity on the part of rogue regimes, individuals, 

and their support networks

• Safer and more transparent U.S. and internationa

financial systems

ManagementManagement and 

Organizational 

Excellence

Enabled and effective 

Treasury Department Manage • A citizen-centered, results-oriented and strategically aligned organization

• Exceptional accountability and transparency
Strategies Indicators & Measures

• Encourage compliance through improving service 

 and expanding outreach

• Discourage and deter non-compliance

• Optimize cash and debt portfolio

• Expand all-electronic cash transactions

• Modernize

• Standardize

• Cost to finance the government over time

• Voluntary compliance

• Projection variance

• Percentage of referred delinquent debt collected

• Percent of payments made electronically

Finance

• Stimulate U.S. economic grow

• Strengthen and modernize entitlement programs

• Engage in financial and economic diplomacy

• Strengthen financial institutions and markets

• Encourage voluntary compliance with the tax code 

 while minimizing regulatory and compliance burdens

• Promote financial literacy

• Growth-Competitiveness Index

• Research and development as a percent of GDP

• Financial crises per year

• Sustainability Imbalance

• Sum of imports and exports as a percent of GDP

• Gap in the global standard of living

Economy

• Respond to customer requirements through adaptive 

 production capability

• Engage in research and development to enhance 

 counterfeit-deterrence features

• Promote global suppression of counterfeiting

• Extend the life of currency notes

• Consider alternative coin materials

• Response to demand

• Counterfeiting rate

• Collect, analyze and disseminate financial and other 

 information concerning national security

• Financially and economically isolate, disrupt, and 

 dismantle national security threats

• Shape policy, laws and regulations and 

 increase compliance

• Coordinate and integrate into the broader 

 intelligence community

Terrorism and Financial Intelligence program:

• Impact of target financial measures and other sanctions programs

• Impact of law enforcement actions 

• Impact of information collection and the analysis of intelligence

• Impact of regulatory activity on transparency of financial systems

• Impact of policymaking, outreach, and diplomacy

Security

• Communicate and collaborate effectively with Congress 

 and other stakeholders

• Align and optimize resources strategically

• Invest in people

• Invest in technology

• Continuously improve

• Stakeholder indicators

• Process indicators

• Human capital indicators

• Results indicators

Management
4

Appendix C: 

The Strategic-Operational Relationship

The following chart shows the relationship between the Department’s strategic goals and its annual 

program performance goals.

The Treasury Department’s strategic goals are long-term outcomes which will assist the organization 

in achieving its mission. Strategic objectives are broad-based outcome statements for a group of value 

chains. Value chains are programs grouped by a common purpose. Value chain outcomes are important 

results for each of the Department’s major functions. Departmental strategies are agency-wide methods 

used to achieve value chain outcomes and guide program activities. 

To achieve performance goals, program resources must be properly managed to generate desired outcomes 

and output. Departmental indicators and measures are used to guide the development of long-term and 

annual performance targets associated with performance goals, which are essential components of the 

annual performance budget.

Treasury Department

Strategic Goal

Strategic Objective

Value Chain Outcomes

Departmental Strategies

Indicators & Measures

Bureaus & Policy Offices

Performance Goals

Performance Measures

Outcomes & Output

Program Activity

Budget Resources
Data is Illustrative – Goals, targets, timeframes, and costs 

are simulated and may not represent actual values.

The example below illustrates how the “disburse” value chain outcome links to performance 

goals, measures, and costs. This value chain supports the strategic goal of “Effectively Managed U.S. 

Government Finances.”

Data is Illustrative

Data is Illustrative

Data is Illustrative

Data is Illustrative

Data is Illustrative

Data is Illustrative

Data is Illustrative

Treasury Goal Effectively Managed U.S. Government Finances Strategic

Planning

Treasury Objective Cash Resources are Available to Operate the Government

Treasury Value Chain Collect Borrow Disburse Account Invest

Value Chain Outcome Timely and accurate payments at the lowest possible cost

 Strategies

Performance Goal Minimize the cost and time of payments Performance 

Planning

Measures with 

Long–Term Target

100% of paper check and 

Electronic Funds Transfer (EFT) 

payments made accurately 

and on time

Unit cost for federal 

government payments is 

reduced by 5%

90 % of Treasury payments 

and associated information 

made electronically

Annual Target 100% accurate and timely 

payments

Reduce unit costs 

for government 

payments by x%

Increase electronic payments 

and information sent 

electronically by x%

Cost to Achieve 

Target Level of 

Performance

Cost to achieve 100% timely and 

accurate payments

Cost to reduce 

government payment 

unit costs by x%

Cost to increase electronic 

payments and information 

sent electronically by x%

Performance 

Budgeting

Budget Resources $$ $$ $$

Tracking Progress Performance to target

Value produced

Executing & 

Performing

Increasing Value

Performance/Cost

Actual vs. Benchmark

Reallocate/Reengineer/Redesign

Assessing & 

Improving
Appendix D: 

Key Factors Affecting the Strategic Outlook 

of the Department of the Treasur y

A strategic outlook is an appraisal of significant outside forces, such as threats or opportunities, which 

influence the success an agency will have in achieving its mission and goals. Successful strategic planning 

efforts develop strategies that respond to a range of alternative futures and consider economic, political, 

technological, legal, and demographic factors.

The Department of the Treasury, in identifying its own strategic outlook, considered a broad range of 

possible alternative futures across multiple dimensions, for example: the challenge to a nation-state’s 

power and influence, the gap in the global standard of living, U.S. economic competitiveness, and U.S. 

public perception of threats to security and quality of life. These dimensions used in the planning process 

were based on the examination of information from Project Horizon, bureau environmental scans, and the 

National Intelligence Council 2020 Project. 

Review of this information identified a need for the Treasury Department to effectively respond to a number 

of foreseeable challenges to successfully achieve its goals. The Department’s operations are influenced by 

numerous factors, many not under its direct control. It is important to acknowledge these factors when 

executing the strategic plan. The following were identified as the most critical factors potentially affecting 

the achievement of the Department’s goals:

Budget Environment 

Rapid growth in government spending on major entitlement programs is anticipated, representing a 

critical economic challenge. If left unchecked, spending on these programs could significantly impair 

U.S. economic flexibility and erode competitiveness. Tight fiscal constraints will drive fiscally conservative 

budgets and will be increasingly important for deficit reduction. The Department of the Treasury will 

need to leverage greater efficiencies to better stretch existing funding. Optimizing resources across the 

Department and aligning the budget with priorities will become important tools.

Technology 

The Department of the Treasury must keep pace with and adapt to technological advancements including 

those in the areas of electronic commerce and security. The Treasury Department must design information 

technology that is flexible and allows for rapid response to a constantly changing environment. 

Furthermore, the Department will need to work across its bureaus to leverage department-wide 

resources and knowledge.

The continuing rise of electronic commerce will require more efficient and secure processing of electronic 

collections and payments in an ever-increasing volume.

Advances in duplication technology are becoming more affordable and widely used, thereby broadening 

the counterfeiting threat. Other new technologies, such as electronic cash, internet electronic payment 
systems, and internet banking increase the ability of individuals to rapidly transfer large sums of 

money, making it increasingly challenging to track transactions related to money laundering and other 

financial crimes. 

Workforce 

The Department of the Treasury is not 

immune to the management challenges 

which will occur government-wide 

over the next five years and beyond. 

These challenges include the increase 

in the number of employees eligible 

for retirement, closing skill gaps, and 

leadership development.

As more of the workforce ages and readies 

for retirement, the Treasury Department 

must increase its ability to compete 

effectively for personnel resources. People 

are no longer seeking lifetime employment but rather lifetime employability. The Department will need 

to respond to changes in workforce trends by implementing systemic changes that will attract and retain 

talent as an employer of choice.

The Department of the Treasury will need to make continued progress in executive development by 

building a cadre of leaders with the necessary skills to lead the Department effectively in the future. In 

addition, the Treasury Department will need to provide specialized training programs to enhance the 

skills of its existing workforce, and aggressively recruit workers into mission critical positions related to its 

core competencies. These constraints and challenges will require the Department’s management to use 

foresight in identifying and addressing workforce trends on the horizon.

Cooperation 

Controlling the flow of funds to terrorists, enforcing international sanctions, and battling money laundering 

and other financial crimes will require cooperation at all levels of government and with global partners. 

The degree of commitment by major U.S. trading partners to strengthen regional and multilateral trading 

initiatives and further open domestic markets will have an impact on the achievement of the Treasury 

Department’s objectives for economic growth. The inability of different countries and international 

organizations to agree on a flexible approach to economic and regulatory cooperation and stability could 

delay progress in establishing new or existing arrangements and limit growth opportunities. Reaching 

widespread cooperation will be an enormous endeavor, but one which must be achieved to accomplish 

the Department’s economic and national security objectives. 

Economy 

Economic and financial crises are difficult to predict, and the quality of responses to them depends on 

the adoption of effective policies and the reaction of financial markets. Factors such as natural disasters, 

infectious disease, war, and civil unrest may adversely affect economic performance. For example: 

Approximately 31 percent of the Treasur y 

Depar tment’s employees will be eligible 

to retire by 2008. Leadership positions

will see the greatest impact because 

over half of Senior Executive Ser vice 

employees will be eligible
international terrorism and large scale natural disasters can potentially have a profound impact on the 

nation’s economy due to the amount of required insurance to cover losses. Federal programs are authorized 

to borrow from the Treasury Department, increasing taxpayer liability, potentially displacing private sector 

insurance companies, and decreasing the incentive for individuals to purchase private insurance. The 

Department will need to work closely with its federal partners to minimize any negative economic impact 

as a result of catastrophic events.

Financial Services 

Changes in the financial service industry, such as the consolidation of institutions, variations in the personal 

savings rate, and the development of new products and services will continue to be a regulatory challenge. 

Another increasing challenge for 

the Treasury Department is 

integrating the millions of “unbanked” American households into 

the financial mainstream.

Changes in the market will influence 

the Department’s efforts to modernize, 

improve reliability, and maintain the 

integrity of the U.S. financial system, 

affecting economic performance and 

competitiveness. 

Globalization

The increase in the scope of the financial system and the effects of a globalized economy will continue to 

present a challenge to the Treasury Department and the regulatory community to remain modern in its 

efforts to promote financial stability. 

Legislation 

Legislative mandates will continue to affect the Treasury Department’s work. Statutory limits on the total 

debt could potentially restrict the Department’s ability to borrow and finance the activities of the federal 

government. The Department of the Treasury’s desire to effect change, such as modernizing the nation’s 

entitlement programs and simplifying the tax code, can only happen through political consensus and 

effective legislation. 

More than 10 million American households 

do not have accounts at mainstream 

financial institutions; and by being “unbanked” they are more likely to pay 

extraordinarily high fees for basic ser vices 

and less likely to save for the future
Society 

Changes in American culture affect the way the Treasury Department operates. The Department must be 

constantly aware of the public’s perception of government. Changing demographics will put pressure on 

the Social Security and Medicare systems and will affect retirement security objectives. 

National Security Threats 

As the U.S. wages the war on terror, our national security is subject to various threats and challenges. The 

Department of the Treasury is actively involved in ensuring national security. The Department’s success 

is affected by the willingness of other nations and organizations to cooperate in actions against terrorism, 

proliferation of weapons of mass destruction, drug trafficking, international crime, and the underground 

economy. The Treasury Department functions in an environment where financial crime trends and patterns 

change quickly. The Department will need to stay ahead of financial criminals, requiring increased global 

cooperation with foreign governments and private sector partners, while minimizing the flow of illegal 

goods and services.

Immigration

Immigration plays a vital role in the dynamic U.S. 

economy. Historically, high levels of migration 

can be an indicator of a strong national 

economy due to better wages and jobs 

available to more people. Current 

trends suggest that economic forces 

will continue to attract migration 

to the United States for years to 

come. Immigration policy reform 

will be a significant factor in the 

American economy.
Making Money

The Treasury building has served many functions over the years including barracks for soldiers during the Civil War and as the 

temporary White House for President Andrew Johnson following the assassination of President Abraham Lincoln in 1865.

When the southern states seceded from the Union, the loss of customs revenue prompted the establishment of the Bureau of 

Internal Revenue and the printing of paper currency to finance the Civil War. On August 29, 1862, two men and four women began

work in the basement of the Treasury building affixing the Treasury seal and cutting apart sheets of notes by machinery. Pictured

here are bronzing (an anti-counterfeiting measure) and sealing (affixing the Treasury Seal) in1867 (1), the hydraulic press room in 

1865 (2), and separating and trimming greenbacks in1867 (3). The printing of currency at the Treasury building ceased in 1880

when operations were moved to another location

1

2

3

Appendix E:

Summar y of Consultation Efforts

The Department of the Treasury, as an integral part of the strategic planning process, consulted with its 

federal government partners and stakeholders in preparing its strategic plan for fiscal years 2007-2012. 

Federal agency partners, congressional contacts, and independent sources were encouraged to submit 

comments on the plan which were reviewed and incorporated.
Strategic Partner Strategic Plan Goal

Commodity Futures Trading Commission Goal 1, 2, & 3 

Congress Goal 1, 2, 3, & 4

Department of Agriculture Goal 1, 2, & 3

Department of Commerce Goal 1, 2, & 3 

Department of Defense Goal 1, 2, & 3

Department of Education Goal 2 & 4

Department of Health and Human Services Goal 1, 2, & 3

Department of Homeland Security Goal 1, 2, & 3 

Department of Housing and Urban Development Goal 1 & 2 

Department of Interior Goal 2 & 3 

Department of Justice Goal 1, 2, & 3 

Department of Labor Goal 1 & 2

Department of State Goal 2 & 3 

Department of Transportation Goal 1, 2, & 3

Department of Veterans Affairs Goal 2 & 3 

Environmental Protection Agency Goal 2 

Export-Import Bank Goal 2 & 3

Federal Deposit Insurance Corporation Goal 1, 2, & 3 

Federal Financial Institutions Examination Council Goal 1, 2, & 3 

Federal Reserve Goal 1, 2, & 3 

Federal Trade Commission Goal 1, 2, & 3

General Services Administration Goal 1 & 4

International Monetary Fund Goal 2 & 3

National Credit Union Administration Goal 1, 2, & 3 

National Security Council Goal 1, 2, & 3 

Office of Management and Budget Goal 1 & 4

Office of the Director of National Intelligence Goal 3

Office of Personnel Management Goal 4

Organisations for Economic Cooperation 

and Development

Goal 2 & 3

Overseas Private Investment Corporation Goal 2 & 3

Pension Benefit Guaranty Corporation Goal 1 & 2

Securities and Exchange Commission Goal 2 & 3

Small Business Administration Goal 2

U.S. Postal Service Goal 1 & 2 

U.S. Trade Representatives Goal 2

World Bank Goal 2 & 3 

Appendix F:

Strategic Goal Linkage to Federal Partners

Strategic Goals: 

Goal 1: Effectively Managed U.S. Government Finances 

Goal 2: U.S. and World Economies Perform at Full Economic Potential

Goal 3: Prevented Terrorism and Promoted the Nation’s Security Through Strengthened International 

Financial Systems

Goal 4: Management and Organizational Excellence

E Pluribus Unum

Out of Many, One

Strategic Plan

Fiscal Years 2007-2012 

Vision

Set the global standard for financial and economic leadership

Mission

Serve the American people and strengthen national security by managing the U.S. 

Government’s finances effectively, promoting economic growth and stability, and 

ensuring the safety, soundness, and security of U.S. and international financial systems

Values

Accountability

Integrity

Community

Excellence

Objectivity

Service

Priorities

• Reform entitlement programs to reduce fiscal burden

• Promote open markets

• Enable competitiveness of U.S. capital markets

• Maximize voluntary compliance

• Improve financial management processes

• Enable the government to be financed at the lowest cost over time

• Integrate terrorist and financial intelligence into the broader intelligence community

• Invest in the IT infrastructure required to support the national security strategy

• Drive improved results through leveraging of all resources, decision-making based on 

cost and performance, developing leadership depth, and closing skill gaps.

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