Departmental Offices - S & E 

Program Summary by Budget Activity 

Dollars in thousands 

Appropriation FY 2010 

Enacted* 

FY 2011 

Annualized 

CR Level** 

FY 2012 

Request** 

Change FY10 to FY12 

$ Change** % Change** 

 Executive Direction $21,983 $33,465 $38,098 $16,115 73.3% 

 International Affairs and Economic Policy $47,249 $70,037 $68,349 $21,100 44.7% 

 Domestic Finance and Tax Policy $48,580 $71,738 $84,562 $35,982 74.1% 

 Terrorism and Financial Intelligence $64,611 $96,386 $92,605 $27,994 43.3% 

 Treasury-wide Management and Programs $22,679 $33,262 $41,275 $18,596 82.0% 

 Administration Programs $99,786 $0 $0 ($99,786) (100%) 

Subtotal, Departmental Offices - S & E $304,888 $304,888 $324,889 $20,001 6.6% 

 Offsetting Collections - Reimbursables $66,045 $91,498 $91,498 $25,453 38.5% 

Total Program Operating Level $370,933 $396,386 $416,387 $45,454 12.3% 

 Direct FTE 1,266 1,266 1,341 75 5.9% 

 Reimbursable FTE 150 137 137 (13) (8.7%) 

Total FTE 1,416 1,403 1,478 62 4.4% 

 *This does not include funding provided by Public Law 111-212 nor transfers. 

**FY 2011/2012, numbers and percentage changes reflect the reallocation of the Administration Programs dollars 

 to their respective budget activities, resulting in across-the-board increases to other budget activities. 

Summary 

 

Departmental Offices, as the headquarters 

bureau for the Department of the Treasury, 

provides leadership to the Department through 

the promotion of policies geared toward 

developing a strong and stable economy. The 

Secretary of the Treasury plays a primary role 

in the formulation and management of 

domestic and international economic policies 

of the United States, specifically in the areas 

of finance, tax, terrorism and financial 

intelligence policies. Through effective 

management and leadership, the Department 

of the Treasury develops and implements 

strategies to promote the stability of the 

nation's financial markets, ensure the integrity 

of the financial system, and enhance the 

government's ability to collect revenue, and 

serves as a world leader for best practices in 

the area of counterterrorist financing and antimoney laundering. 

Departmental Offices (DO) top priorities and 

proposed initiatives support each of the 

Department’s strategic goals: Effectively 

Manage U.S. Government Finances; Ensure 

U.S. and World Economies Perform at Full 

Potential; Prevent Terrorism and Promote the 

Nation’s Security Through Strengthened 

International Financial Systems; and Promote 

Management and Organizational Excellence. 

Total resources requested to support DO 

activities for FY 2012 are $416,387,000 

including $324,889,000 from direct 

appropriations and $91,498,000 from 

offsetting collections and reimbursable 

programs. 

 
DO FY 2012 Budget Highlights

Dollars in thousands 

Appropriation Amount

FY 2010 Enacted $304,888

FY 2011 Annualized CR Level $304,888

Changes to Base: 

Adjustment to Reach Policy Level: $39,707

Adjustment to Reach FY 2011 President's 

Policy 

$39,707

Maintaining Current Levels (MCLs): $3,215

Non-Pay, Pay & Benefits, and Pay 

Annualizations 

$3,215

Transfers Out: $0

Procurement Transfer to IRS $0

Efficiencies, Savings & Base Reductions: ($28,946)

Streamlining Management ($6,400)

Administrative Efficiency Savings ($2,635)

Non-recur of Alpha Computers ($2,750)

Non-recur of Domestic Finance Contracts ($1,596)

Federalizing the IT Workforce ($1,000)

Multilateral Meeting Support Savings ($1,974)

Summit Support Representation Funds ($200)

Non-Recur of ODM Information Technology ($1,550)

Non-recur of Program Evaluation ($5,292)

Terrorism and Financial Institutions (TFI) 

Office Efficiency Savings 

($4,349)

TFIN Savings ($1,200)

Subtotal FY 2012 Changes to Base $13,976

Total FY 2012 Base $318,864

Program Changes: 

Program Increases: $6,025

Dodd-Frank Wall Street Reform Act $5,525

Domestic Finance (DF) Recovery Act $500

Subtotal FY 2012 Program Changes $6,025

Total FY 2012 Request $324,889

FY 2012 Budget Adjustments 

 

FY 2011 Annualized CR Level 

The FY 2011 annualized Continuing 

Resolution (CR) level for DO is $304,888,000. 

Adjustment to Reach FY 2011 President’s 

Policy Level 

Adjustments to Reach FY 2011 President’s 

Policy Level +$39,707,000 / +76 FTE 

Adjustment from the FY 2011 Annualized 

Continuing Resolution (CR) Rate to reach the FY 

2011 President’s Policy Level. The President’s 

Policy Level is equal to the FY 2011 President’s 

Budget as adjusted for the proposed pay freeze.

Maintaining Current Levels (MCLs) 

Adjustments Necessary to Maintain Current 

Levels +$3,215,000 / +0 FTE 

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment 

and health benefits and the increase in Federal 

Employee Retirement System participation. 

No inflation adjustment is requested for pay in 

FY 2012.

Transfers 

Procurement Transfer to IRS +$0 / -9 FTE 

Transfer the functions of the Departmental 

Offices Procurement Services Division to the 

Internal Revenue Service. 

Non-Recurs and Efficiencies Savings 

Streamlining Management -$6,400,000 / -23 

FTE 

Savings will be achieved through a number of 

management initiatives, including the nonrecur of FY 2011 one-time initiative support 

costs, consolidation of IT contractor services, 

reduction of overtime, and other services. 

Administrative Efficiency Savings -$2,635,000 

/ +0 FTE 

Savings will be achieved through a more 

efficient use of administrative activities and 

through non-recur of one-time FY 2010 costs. 

Non-recur of Alpha Computers -$2,750,000 / 

+0 FTE 

Non-recur of one-time FY 2011 funds to 

upgrade the Department’s Alpha computers.

Non-Recur of Domestic Finance Contracts 

-$1,596,000 / +0 FTE 

Non-recur $1.596 million of a $3.5 million FY 

2011 increase to support research activities to 

allow Domestic Finance to obtain high-quality, 

time-sensitive research, data, and analysis to 

inform policy development. 
Federalizing the IT Workforce -$1,000,000 / 

+20 FTE 

Net contract savings from converting IT 

contractors into federal employees while 

improving accountability, efficiency, and 

customer service within the department. 

Multilateral Meeting Support Savings 

-$1,974,000 / +0 FTE 

Non-recur of FY 2011 funds to host 

international meetings, including G-8 

meetings, a G-20 Ministerial and an AsiaPacific Economic Cooperation (APEC) 

meeting, plus numerous other related meetings 

and workshops leading up to these events. 

Summit Support Representation Funds 

 -$200,000 / +0 FTE 

Reduction in the increased FY 2011 financial 

support for attending annual economic 

summits with the G-7 and G-20 nations.

Non-Recur of Office of Debt Management 

(ODM) Information Technology -$1,550,000 / 

+0 FTE 

Non-recur $1.550 million of program funds 

used to develop and modernize ODM’s 

information technology system. The remaining 

$1.450 million in the base will cover 

operations and maintenance. 

Non-recur of Program Evaluations 

 -$5,292,000 / +0 FTE 

Non-recur of FY 2011 requested in a 

government-wide competition to measure 

program effectiveness. Funding was one-time 

for specifically chosen studies. 

Office of Terrorism and Financial Intelligence 

(TFI) Efficiency Savings -$4,349,000 / +0 FTE

TFI will realize savings through the 

prioritization of staff travel; elimination of 

overseas support for its Brussels liaison; 

targeted procurement spending to save on 

contracts, IT licenses, subscriptions, and 

supplies; and by eliminating funding for its 

now completed responsibilities under United 

Nations Security Council Resolution 1822 

which required agencies to address 

discrepancies in the terrorist financing 

designation list. 

Treasury Foreign Intelligence Network 

-$1,200,000 / +0 FTE 

Remaining base funding will be used to support 

operations and maintenance expenses in FY 

2012 and beyond.

Program Increases 

Dodd-Frank Wall Street Reform Act 

+$5,525,000 / +11 FTE 

Departmental Offices (DO) requests funds in 

FY 2012 to support Dodd–Frank Wall Street 

Reform and Consumer Protection Act 

activities. The FY 2012 request is focused on 

building the expertise necessary to fulfill 

Treasury’s ongoing responsibilities under the 

Act and to monitor and develop policy in the 

areas where regulation was greatly expanded 

under the Act. 

DF Recovery Act +$500,000 / +0 FTE

Resources are requested to support Domestic 

Finance’s implementation of the American 

Recovery and Reinvestment Act (ARRA) 

Cash Payments for Specified Energy Property 

in Lieu of Tax Credits. Payments under this 

program continue through 2017. 

Explanation of Budget Activities 

 

Salaries and Expenses 

 

Executive Direction ($38,098,000 from direct 

appropriations and $3,134,000 from 

reimbursable programs) 

Provides direction and policy formulation to 

the Department, and interacts with Congress 

and the public on Departmental policy matters. 
International Affairs and Economic Policy 

($68,349,000 from direct appropriations and 

$10,883,000 from reimbursable programs) 

Monitors domestic and international economic 

conditions and collects and analyzes financial 

data, including foreign credits and credit 

guarantees. 

Domestic Finance and Tax Policy 

($84,562,000 from direct appropriations and 

$36,160,000 from reimbursable programs) 

Monitors and provides economic and financial 

policy expertise in the areas of domestic 

finance and tax policy. 

Terrorism and Financial Intelligence (TFI) 

($92,605,000 from direct appropriations and 

$10,621,000 from reimbursable programs) 

Develops and implements strategies to counter 

terrorist financing and money laundering. 

Treasury-wide Management and Programs 

($41,275,000 from direct appropriations and 

$30,700,000 from reimbursable programs) 

Provides strategic plans, and policy direction 

in the fields of human resources, information 

technology security, and financial 

administration that include the formulation and 

management of the budget. 

Administration Programs (Direct 

appropriations and reimbursable program 

funding have been allocated to operational 

budget activities.) 

Treasury has allocated administrative expenses 

for Departmental Offices by operational 

budget activity, instead of maintaining a 

separate budget activity for administrative 

expenses. This will give oversight officials a 

better understanding of the full cost of each 

program within Departmental Offices. 

Legislative Proposals 

 

Departmental Offices has no legislative 

proposals. 

DO Performance by Budget Activity 

Budget Activity Performance Measure FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Target Target

Terrorism and Financial 

Intelligence

Impact of TFI programs 

and Activities (Oe) (Oe)

N/A 7.8 8.1 7.4 7.6

International Affairs and 

Economic Policy 

Number of new trade and 

investments negotiations 

underway or completed 

(Oe) 

14 15 13 6 6 

International Affairs and 

Economic Policy 

Scope and intensity of 

engagement (traction) 

3.6 3.7 3.5 3.6 3.6 

Domestic Finance and Tax 

Policy 

Variance between 

estimated and actual 

receipts (annual forecast) 

(%) (Oe)

4.6 5.5 5.8 5.0 5.0

Treasury-wide Management 

Policies and Programs

Percent of timely 

completed Planned 

Corrective Actions (%) (Oe)

82.5 85.6 88.4 85.0 85.0

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, M - Management/Cust. Satisfaction, and DISC - Discontinued, and B – Baseline 
Description of Performance 

 

DO is continuing to work to develop more 

meaningful performance measures for policy 

offices. 

In FY 2010, the Department continued using a 

composite performance measure which 

assesses of its impact of the organization. The 

composite measure resulted in a score of 8.1 

out of 10 equaling its target for FY 2010. The 

targets for the composite performance measure 

have been set to 7.4 for FY 2011 and 7.6 for 

FY 2012. 

In FY 2010, Treasury’s Office of International 

Affairs (IA) exceeded its performance 

measures related to the number for new trade 

and investments negotiations trade and 

investment. For FY 2010, the Office 

completed or was in progress on 13 new trade 

and investment negotiations, far in excess of 

the 2 that were targeted in FY 2010. The 

performance targets are 6 new negotiations for 

FY 2011 and FY 2012. The Office of 

Technical Assistance continues to assess the 

effectiveness of assistance programs for client 

countries. The average rating in FY 2010 was 

3.6 for traction out of a possible score of 5.0, 

exceeding its target of 3.5. Performance targets 

for FY 2011 and FY 2012 for IA measures 

have been set to reflect current economic 

conditions. 

Given economic uncertainties and legislative 

changes, the forecasts for FY 2010 were not as 

good as those for FY 2009. The variance for 

FY 2010 was 5.8 percent, higher than the 5.5 

percent variance in FY 2009 and the 5.0 

percent target for FY 2010. FY 2010 proved 

very challenging to forecast due to the heavy 

influence of 2009 tax liabilities on FY 2010 

receipts and lingering uncertainty concerning 

the pace of the economic recovery. To reduce 

error rates, the office completed a review of 

the statistical techniques used to forecast major 

federal financial activities, and will deploy a 

new updated fiscal projections system. 

Targets for FY 2011 and FY 2012 have been 

set at 5 percent. 

The offices comprising the Treasury Wide 

Management (TWM) budget activity are 

committed to ensuring accountability and a 

well understood strategic direction in order to 

build a world-class organization. In FY 2010, 

offices have continued to work to objectively 

monitor their progress toward program 

outcomes and Treasury’s strategic objectives. 

For FY 2011, Treasury has made the decision 

to allocate administrative expenses for 

Departmental Offices by operational budget 

activity, instead of maintaining a separate 

budget activity just for administrative 

expenses. As a result, Treasury Wide 

Management Goals are under development. 

Also, the Department continues to be engaged 

in rigorous efforts to redevelop metrics for its 

International Affairs programs that better 

reflect the mission and goals of the office.