Bureau of the Fiscal Service

FY 2017

Congressional Justification

February 9, 2016
FS - 2

Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Appropriations Detail Table .............................................................................................. 3

1B – Vision, Priorities and Context............................................................................................ 3

2.1 – Budget Adjustments Table................................................................................................. 9

2A – Budget Increases and Decreases Description..................................................................... 9

2.2 – Operating Levels Table.................................................................................................... 11

2B – Appropriations Language and Explanation of Changes................................................... 12

2C – Permanent, Indefinite Appropriations.............................................................................. 12

2.3– Permanent, Indefinite Appropriations Table..................................................................... 13

2D – Legislative Proposals....................................................................................................... 14

Section 3 – Budget and Performance Plan ............................................................................... 17

3A – Accounting and Reporting ............................................................................................... 17

3.1.1 –Accounting and Reporting Budget and Performance Plan ............................................ 19

3B – Collections........................................................................................................................ 20

3.1.2 –Collections Budget and Performance Plan .................................................................... 21

3C – Debt Collection................................................................................................................. 21

3.1.3 – Debt Collection Budget and Performance Plan ............................................................ 22

3D – Payments.......................................................................................................................... 22

3.1.4 – Payments Budget and Performance Plan ...................................................................... 25

3E – Retail Securities Services................................................................................................. 25

3.1.5 – Retail Securities Services Budget and Performance Plan............................................. 27

3F – Wholesale Securities Services.......................................................................................... 27

Section 4 – Supplemental Information...................................................................................... 30

4A – Summary of Capital Investments..................................................................................... 30

4B – Summary of Changes to Appropriated Budget Activities................................................ 32
FS - 3

Section 1 – Purpose

1A – Mission Statement

Promote the financial integrity and operational efficiency of the Federal Government through 

exceptional accounting, financing, collections, payments, and shared services.

1.1 – Appropriations Detail Table Dollars in thousands

Bureau of the Fiscal Service

Appropriated Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Accounting and Reporting 451 104,725 419 125,752 454 114,167 35 (11,585) 8.35% -9.21%

Collections 164 35,029 162 38,798 171 40,225 9 1,427 5.56% 3.68%

Payments 494 120,912 485 118,454 516 115,141 31 (3,313) 6.39% -2.80%

Retail Securities Services 463 76,819 457 70,038 458 71,186 1 1,148 0.22% 1.64%

Wholesale Securities Services 64 10,699 63 10,808 65 12,338 2 1,530 3.17% 14.16%

Subtotal New Appropriated Resources 1,636 $348,184 1,586 $363,850 1,664 $353,057 78 (10,793) 4.92% -2.97%

Other Resources:

Reimbursables 714 277,674 701 292,381 488 $268,486 (213) (23,895) -30.39% -8.17%

Subtotal Other Resources 714 $277,674 701 $292,381 488 $268,486 (213) (23,895) -30.39% -8.17%

Total Budgetary Resources 2,350 $625,858 2,287 $656,231 2,152 $621,543 (135) (34,688) -5.90% -5.29%

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 4B for additional information.

Request Change % Change

FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

Enacted Enacted

1B – Vision, Priorities and Context

The Bureau of the Fiscal Service (Fiscal Service) is guided by its vision to transform federal 

financial management and the delivery of shared services through efforts focused on 

maximizing efficiencies, transparency, and accountability. These themes are reinforced 

through bureau level Strategic Goals which promote the following:

• leadership and innovation .

• delivery of exceptional programs and services by an engaged and highly effective 

workforce .

• data transparency and usefulness .

• expansion of shared services.

Operationally, the Fiscal Service provides central payment services to federal program agencies 

(FPAs); operates the Federal Government's collections and deposit systems; provides 

government-wide accounting and reporting services; conducts all Treasury debt financing 

operations; issues, services, and accounts for all Treasury marketable securities and nonmarketable securities; delivers reimbursable support services to federal agencies; and manages 

the collection of delinquent debt.

FY 2017 Statement of Objectives

The Fiscal Service fulfills its mission and vision through five annually appropriated budget 

activities and one mandatory budget activity, funded through debt revenue that support and align 

with Treasury’s strategic objectives as follows:

Treasury Strategic Objective 1.1

Promote savings and increased access to credit and affordable housing options

Retail Securities Services

Wholesale Securities Services
FS - 4

Treasury Strategic Objective 3.1

Improve the efficiency and transparency of federal financial management and 

government-wide accounting

Accounting and Reporting

Treasury Strategic Objective 3.2

Improve the disbursement and collection of federal funds and reduce improper 

payments made by the United States Government

Collections

Debt Collection (non-appropriated)

Payments

Fiscal Service continues to make progress in implementing its priority projects, as well as 

supporting Treasury in the accomplishment of its strategic objectives. Through the Treasury 

Strategic Objective Annual Review, the following next steps were identified for Fiscal Service:

• Implement myRA scaled adoption and technology enhancement.

• Redesign the Financial Information Repository to address client needs and implement 

general capability improvements.

• Implement USAspending.gov improvements.

• Lead the government-wide Digital Accountability and Transparency Act of 2014 (DATA 

Act) implementation strategy in partnership with the Office of Management and Budget 

(OMB).

• Incorporate authorized data sources into the Do Not Pay Business Center.

• Perform 24-month student loan pilot with the Department of Education.

• Enhance program effectiveness by working to align new and existing performance measures 

to the Fiscal Service Strategic Plan.

Bureau-wide Efforts

Government-wide Shared Services

• Continue to support the Shared Services Cross-Agency goal to advance the adoption of 

shared services by coordinating input from the financial marketplace, managing financial 

business processes and expanding lessons learned into other lines of business.

• Support the newly established Unified Shared Services Management office in the General 

Services Administration to improve delivery of services, stabilize shared ecosystems and 

identify additional opportunities for agency collaboration.

Accounting and Reporting

Fiscal Service accomplished the following through September 30, 2015:

• Refreshed the USAspending.gov website in March 2015 and continued making additional 

changes throughout FY 2015 in response to new and outstanding feedback regarding 

usability and presentation.

• Released the initial data standards, guidance (including a baseline data exchange schema), 

and other resources to federal agencies in May 2015, in collaboration with OMB to support 

the implementation of the DATA Act; initiated the first phase of the DATA Act 

Implementation Pilot, which leverages industry data exchange standards to map federal 

financial data to a standard taxonomy and format.
FS - 5

• Accounted for and reported on all financial activity related to the $18.2 trillion public debt.

• Issued and serviced nearly $5.0 trillion in Treasury securities invested by 78 federal 

agencies in over 244 Federal Government trust and investment accounts, including 

$3.2 trillion in 22 Treasury managed trust funds.

• Managed a daily cash flow of $88.3 billion.

• Enhanced the Financial Information Repository (FIR) to support further efforts to provide the 

public with visibility into the financial health of the Federal Government.

• Implemented planned FIR releases to address user enhancements and incorporated the 

Monthly Statement of the Public Debt visualization proof of concept.

• The Central Accounting and Reporting System (CARS) was implemented as the central 

accounting system of record for the Federal Government, replacing the legacy STAR system 

that had been in use for 25 years.

FY 2016

• Continue implementation of the DATA Act to include necessary government-wide financial 

system enhancements and providing assistance to agencies. This includes developing the 

technical platform/architecture to collect data across disparate systems in the Federal 

Government. 

• Begin operationalizing data exchange standards for federal transparency reporting. In 

collaboration with OMB, develop a corresponding framework and governance structure 

required to manage the standards.

• Continue multi-year effort towards obtaining a clean audit of the Financial Report by 

FY 2018 by obtaining assurance on the reliability of all significant General Fund activity and 

balances. 

• Strengthen effective government-wide accounting by providing Central Accounting and 

Reporting System (CARS) operational and technical support during the transition of federal 

program agencies to CARS.

FY 2017

• Complete the implementation of the DATA Act and continue to meet Treasury's 

responsibility to publish additional spending data on USAspending.gov (or a successor site). 

This includes operationalizing data exchange standards for federal transparency reporting and 

the corresponding governance required to manage the standard. Develop a publication 

platform that provides consistent, reliable, and searchable government-wide spending data. 

• Continue to support the Agency Priority Goal to develop and improve financial transparency 

policies and their adoption that reflect a 21st century economy and data-driven decisionmaking. 

• Continue progress towards obtaining a clean audit of the Financial Report by FY 2018 by 

obtaining assurance on the reliability of all significant General Fund activity and balances. 

• Modify payment, collection, and accounting systems to enable Treasury to monitor and 

manage its cash position in near real time.

Collections

Fiscal Service accomplished the following through September 30, 2015:

• Collected nearly $3.1 trillion in federal revenue.
FS - 6

• Processed over 119 million transactions worth over $106 billion through Pay.gov, an 

internet-based non-tax collection system.

• Processed nearly $3.0 trillion (approximately 98% of total revenue collected) through 

Electronic Funds Transfer.

Fiscal Service plans to focus on the following highlighted Collections efforts:

FY 2016

• Continue to advance E-Commerce in support of Treasury’s initiative to have non-tax 

collections and remittances submitted electronically to reduce costs, improve accuracy, and 

increase options available to citizens to conduct transactions with the Government.

• Complete business requirements for the new Electronic Federal Tax Payment System 

(EFTPS) to facilitate innovation and incorporate sound security features.

• Facilitate cost savings and the reduction of paper in Lockbox programs through the Financial 

Agent Selection Process (FASP), E-Commerce, and program advancements.

FY 2017

• Advance E-Commerce further by implementing a variety of mobile apps and increasing 

agency implementation of digital wallet providers and online bill payment.

Payments

As of September 30, 2015 Fiscal Service achieved the following successes:

• Disbursed over $2.6 trillion in federal payments including Social Security, veterans’ 

benefits, and income tax refunds.

• Disbursed 94.8% of the nearly 1.2 billion payments electronically – 98% of the 931 million 

benefit payments were disbursed electronically.

• The DNP Business Center (DNP) implemented a major system release providing real-time 

matching at the time of payment, resulting in more timely agency and program access to 

potential improper payments that may need further investigation.

• DNP worked one on one with agencies to review payment data to identify and address 

internal control weaknesses that resulted in improper payments in addition to the business 

process review services offered.

FY 2016

• Improve federal fiscal management by expanding federal agency use of the Do Not Pay 

Business Center to reduce improper payments.

• Further expand federal agency use of the Invoice Processing Platform (IPP).

• Promote Treasury disbursing services to federal agencies that currently make their own 

payments.

• Enhance federal reporting and query capabilities by enabling agencies to submit claims 

electronically through improvements in the Post Payment System (PPS). 

• Continue planned enhancements to the Stored Value Card (SVC) program to include 

consolidating processing platforms and developing components for a SVC one-card solution.
FS - 7

FY 2017

• Improve analytics capabilities through the use of new algorithms and predictive modeling; 

acquire income, expanded death, and credit data; and implement authorities to work with 

Federal legislative and judicial programs and federally funded state-administered programs.

• Expand the number of agencies and their vendors using IPP to submit electronic invoices.

• Implement Treasury disbursing services with additional federal agencies.

• Continue to enhance SVC products for efficiency and expand capabilities.

Retail Securities Services

Fiscal Service accomplished the following during FY 2015:

• Issued and serviced $26.9 billion in savings and marketable issues held by 

583,227 investors in the online TreasuryDirect system through September 30th.

• Implemented a myRA landing site in November 2014 and worked on a variety of 

enhancements, such as including the ability to create a myRA account when filing tax returns.

• Implemented virtual case files to improve customer service by automating workflows and a 

virtual contact center as part of the multi-year Treasury Retail E-Services initiative.

FY 2016

• Enhance investment opportunities for American citizens through focused efforts on 

increasing participation in myRA.

• Complete a review of the Retail Securities Services program to refocus program direction 

and solidify the mission and long-term vision, identify the future customer base, design a 

new savings product(s), clarify the most effective channels for interacting with customers 

and servicing new products, and create an operating model and implementation roadmap.

• Develop core components and infrastructure for a new retail securities system that will 

enhance capabilities for customers to purchase, reinvest, redeem, transfer, and hold securities 

electronically, including developing a web interface.

FY 2017

• Continue to increase participation in myRA.

• Begin implementation of the Retail Securities Services program vision.

• Continue developing a new retail securities system that will enhance capabilities for 

customers to purchase, reinvest, redeem, transfer, and hold securities electronically, 

including deploying the core framework.

Wholesale Securities Services

During FY 2015, Fiscal Service:

• Conducted 269 auctions and awarded $6.9 trillion in Treasury marketable securities through 

September 30th.

• Continued stabilizing, modernizing, and migrating the Treasury Automated Auction 

Processing System (TAAPS) to a new technical platform, as well as planning to modernize 

the software components of TAAPS.
FS - 8

FY 2016

• Continue the multi-year effort to stabilize, modernize, and migrate TAAPS to a new 

technical platform, while modernizing software components.

FY 2017

• Complete the stabilization, modernization, and migration of TAAPS to a new technical 

platform and continue to modernize the software components.

Debt Collection

Fiscal Service accomplished the following through September 30, 2015:

• Collected nearly $7.3 billion in delinquent debt ($1.9 million in delinquent child support).

• Collected $547.8 million in State Unemployment Insurance Compensation debt on behalf of 

42 states and the District of Columbia.

• Started a Cross-Servicing debt collection pilot with the Department of Education upon 

receipt of 7,000 Direct and Federal Family Education Loan delinquent debts, with an 

additional 5,000 debts that followed, in order to determine the tools that can be employed to 

facilitate repayment or resolution of defaulted student loans.

FY 2016

• Expand the use of state-of-the-art mechanisms to include developing Cross-Servicing Next 

Generation to bring the Cross-Servicing system into the 21st Century.

• Continue the Education Student Loan Pilot.

FY 2017

• Continue to expand the use of state-of-the-art mechanisms and strategies for maximizing the 

collection of delinquent debt.

• Finalize the results of the Department of Education Student Loan Pilot and make a 

recommendation for future servicing of Education debts to ultimately achieve greater 

efficiency with government resources.
FS - 9

Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Bureau of the Fiscal Service FTE Amount

FY 2016 Enacted 1,586 $363,850 

Changes to Base

Base Realignment 108 $0 

Technical FTE Adjustment 108 $0 

Maintaining Current Levels (MCLs) $6,032 

Pay-Raise $2,295 

Pay Annualization $620 

Non-Pay $3,117 

Efficiency Savings (30) ($1,935)

Program Efficiencies (30) ($1,935)

Total FY 2017 Base 1,664 $367,947

Program Changes 

Program Decreases ($14,890)

DATA Act Implementation ($10,780)

Rent Savings ($4,110)

Total FY 2017 Request 1,664 $353,057 

2A – Budget Increases and Decreases Description

Base Realignment ................................................................................................+$0 / +108 FTE

Technical FTE Adjustment +$0 / +108 FTE 

Maintaining Current Levels (MCLs) ......................................................+$6,032,000 / +0 FTE

Pay-Raise +$2,295,000 / +0 FTE 

Funds are requested for the proposed January 2017 pay-raise.

Pay Annualization +$620,000 / +0 FTE 

Funds are requested for annualization of the January 2016 pay-raise.

Non-Pay +$3,117,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor costs such as travel, contracts, rent, 

supplies, and equipment.

Efficiency Savings ....................................................................................-$1,935,000 / +78 FTE

Program Efficiencies -$1,935,000 / -30 FTE 

Anticipated savings realized from reduced programmatic and FTE requirements to align with 

estimated operating levels.

Program Decreases ..................................................................................-$14,890,000 / +0 FTE

DATA Act Implementation -$10,780,000 / +0 FTE 

With the implementation of the DATA Act anticipated to be well underway, it is expected that 

Fiscal Service will be able to decrease the funding needed to complete the balance of the 

government-wide legislative requirements.
FS - 10

Rent Savings -$4,110,000 / +0 FTE 

With the final closeout of the Emeryville, California lease, Fiscal Service is realizing the last 

portion of the Payment Center Closure savings.
FS - 11

2.2 – Operating Levels Table

Dollars in thousands

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 4B 

for additional information.

FY 2015 

Actual

FY 2016 

Enacted 

FY 2017 

Request

Object Classification

11.1 Full-time permanent 136,298 141,854 135,185

11.3 Other than full-time permanent 394 2,034 1,932

11.5 Other personnel compensation 2,651 6,148 5,840

11.8 Special personal services payments 141 0 23,879

11.9 Personnel Compensation (Total) 139,484 150,036 166,836

12.0 Personnel benefits 44,696 40,429 44,331

13.0 Benefits to former personnel 132 206 150

Total Personnel and Compensation Benefits 184,312 190,671 211,317

21.0 Travel and transportation of persons 1,852 1,732 2,875

22.0 Transportation of things 121 241 121

23.1 Rental payments to GSA 26,189 25,214 21,767

23.2 Rental payments to others 866 519 435

23.3 Communication, utilities, and misc charges 7,676 9,580 7,346

24.0 Printing and reproduction 146 399 411

25.1 Advisory and assistance services 15,579 19,302 25,638

25.2 Other services from non-Federal Sources 18,384 17,517 16,013

25.3 Other goods and services from Federal 

Sources 83,708 88,936 58,993

25.4 Operation and maintenance of facilities 2,125 1,041 950

25.6 Medical care 0 2 0

25.7 Operation and maintenance of equipment 2,772 2,100 1,880

26.0 Supplies and materials 2,471 2,763 2,287

31.0 Equipment 1,456 2,769 2,394

32.0 Land and structures 81 1,014 630

42.0 Insurance claims and indemnities 0 50 0

Total Non-Personnel 163,426 173,179 141,740

Subtotal New Appropriated Resources $347,738 $363,850 $353,057 

Budget Activities:

Accounting and Reporting 114,856 141,873 127,511

Collections 38,880 43,884 45,094

Debt Collection 174,634 168,172 151,934

Payments 202,722 212,578 204,000

Retail Securities Services 82,717 77,729 79,266

Wholesale Securities Services 11,603 11,995 13,738

Total Budgetary Resources $625,412 $656,231 $621,543 

FTE 1,996 2,287 2,152
FS - 12

2B – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

THE BUREAU OF THE FISCAL SERVICE

Federal Funds

SALARIES AND EXPENSES

For necessary expenses of operations of the Bureau of the Fiscal

Service, [$363,850,000] $353,057,000; of which not to exceed

$4,210,000, to remain available until September 30, [2018] 2019, 

is for information systems modernization initiatives; and of which

$5,000 shall be available for official reception and representation 

expenses[; and of which not to exceed $19,800,000, to remain 

available until September 30, 2018, is to support the Department's 

activities related to implementation of the Digital Accountability 

and Transparency Act (DATA Act; Public Law 113–101), 

including changes in business processes, workforce, or 

information technology to support high quality, transparent 

Federal spending information]. In addition, $165,000, to be

derived from the Oil Spill Liability Trust Fund to reimburse

administrative and personnel expenses for financial management 

of the Fund, as authorized by section 1012 of Public Law 101–

380.

(Consolidated Appropriations Act, 2016.)

Multi-year funding is not necessary for DATA Act starting in FY 2017.

2C – Permanent, Indefinite Appropriations

Federal Reserve Bank Permanent, Indefinite Appropriation

The Federal Reserve Banks (FRBs) act as fiscal agents of the United States when directed 

by the Secretary of the Treasury in accordance with 12 U.S.C. 391. Under this account, the

FRBs support fiscal operations, which are unrelated to the administration of the public debt,

and provide banking and financial services on behalf of the Treasury of the United States. 

Specifically, this account supports the accounting and reporting, collections, and payments

programs. These and other programs are vital to the Fiscal Service’s strategic goals, the

National Financial Critical Infrastructure, and the expanding E-Government. Fiscal Service

estimates that the cost of FRB services for FY 2017 will be approximately $529.4 million.

Reimbursements to the Federal Reserve Banks

Public Law 101-509, 104 Stat. 1389, 1394 (1990), established a permanent, indefinite 

appropriation to pay such sums as necessary to reimburse the FRBs for acting as fiscal 

agents. This account was further defined in FY 1992 to solely support those activities 

related to the administration of the public debt. Claims for reimbursements are closely

monitored for compliance with the Instructions for Filing Reimbursement Claims for Fiscal 

Agent Services Provided to the Fiscal Service. Funding for FY 2017 is estimated at 

$138.3 million. Specifically, this account supports the Retail Securities Services and

Wholesale Securities Services budget activities only.
FS - 13

Financial Agent Services Permanent, Indefinite Appropriation

Congress has given the Secretary of the Treasury broad discretion to deposit money in 

financial institutions and obtain banking services by designating financial institutions to 

act/serve as Financial Agents (FA) of the United States. The services support many Fiscal 

Service programs, such as collections, payments, securities and accounting and reporting. 

These and other programs are vital to the Fiscal Service’s strategic goals, the National 

Financial Critical Infrastructure, and the expanding E-Government. The services provided 

by the FAs are authorized under numerous statutes including, but not limited to, 12 U.S.C. 

90 and 265.

In FY 2004, Treasury received a permanent, indefinite appropriation to pay for these services. 

Fiscal Service estimates that the cost of FA services for FY 2017 will be approximately 

$679.5 million, which includes $3 million for Government Sponsored Enterprise - Mortgage 

Backed Securities administrative costs.

Government Losses in Shipment

Public Law 103-329 established a permanent, indefinite appropriation to pay such sums as 

necessary to make payments for the replacement of valuables, or the value thereof, lost, 

destroyed, or damaged in the course of United States Government shipments. The Government 

Losses in Shipment Act was enacted July 8, 1937 to dispense with the necessity for insurance by 

the government against loss or damage to valuables in shipment and for other purposes. The

Act was amended in 1943 to cover losses resulting from the redemption of savings bonds (for 

example, stolen bonds, which were fraudulently negotiated even though the paying agent 

followed identification guidelines established by the Treasury). All authority of the Treasury 

under the Act has been delegated to the Commissioner of the Fiscal Service. In FY 2017, the 

funding estimated to support payments for the replacement of valuables is $1.1 million.

2.3– Permanent, Indefinite Appropriations Table

(Dollars in Thousands)

Permanent, Indefinite Appropriation 2015

Actuals

2016 

Enacted

2017 

Requested

Federal Reserve Bank 1

$ 477,091 $ 524,155 $ 529,397

Reimbursements to the Federal Reserve Banks $ 123,658 $ 136,945 $ 138,314

Financial Agent Services 1 , 2

$ 642,572 $ 716,230 $ 679,465

Government Losses in Shipment $ 1,221 $ 1,098 $ 1,123

1. Approximately $75M is reimbursed from other government agencies and deposited into the General Fund each year. 2. FY2015, FY2016, and FY2017 include costs for the Government Sponsored Enterprise - Mortgage Backed Securities

administrative costs of $3M per year.
FS - 14

2D – Legislative Proposals

New for FY 2017 President’s Budget

1. Option to access the National Directory of New Hire Data via the Do Not Pay Portal

The 2017 Budget includes a package of proposals to allow additional programs and agencies 

authority to access the National Directory of New Hire Data (NDNH), a federal database of 

employment and unemployment insurance information administered by the Office of Child 

Support Enforcement within the Department of Health and Human Services (HHS). Access 

to this data is tightly controlled by statute, and HHS implements strong privacy, 

confidentiality, and security protections to protect the data from unauthorized use or 

disclosure. Currently several programs are successfully using this data for program integrity, 

implementation, and research purposes, and the use of that data has led to important insights 

and program integrity gains. The Budget proposes to build on this strong history of data 

stewardship and protection to allow additional programs and agencies to access this valuable 

data to learn what works and improve program implementation, while continuing to protect 

the privacy, security and confidentiality of that data. 

Included in this package is a request to allow programs that are statutorily authorized in the 

Social Security Act to access NDNH data for program integrity purposes to do so via the Do 

Not Pay (DNP) initiative’s designated centralized portal at the Department of the Treasury. 

The Improper Payments Elimination and Recovery Improvement Act codified the 

Administration’s Do Not Pay initiative by specifying six Federal data sets to help prevent and 

identify improper payments. OMB designated Treasury to host a centralized portal, the DNP 

Business Center, for agencies to access, as authorized, multiple sources of data to aid in 

program integrity related efforts. This proposal includes the following sub-components:

• The Administration for Children and Families’ Office of Child Support Enforcement 

(OCSE) would retain control over the NDNH data through an MOU with Treasury 

and each individual agency that clearly defines how Treasury (and each agency) may 

use the data, and further provides rules for protecting and correcting the data and for 

its retention and destruction;

• OCSE would still apply its robust privacy and security review procedures before 

granting any agency access to data;

• DNP would only access and disclose the minimum relevant NDNH data to agency 

programs that are authorized to access the data in statute and who have an MOU with 

OCSE to access the data;

• Agencies would maintain the option to access NDNH via DNP or directly through 

OCSE;

• OCSE would be reimbursed by Treasury and/or the accessing agency for the costs 

incurred by providing the NDNH data to the agency, regardless of the mechanism 

used; and

• Since the NDNH data are not verified, agencies accessing NDNH data via Treasury's 

DNP portal will ensure that the data are not used as the basis for any adverse 

determination, including denial of benefits or overpayment determinations in 

federally-assisted programs, and will be required to conduct independent verification 

of information prior to taking any adverse action against any individual without 

further investigation. 
FS - 15

The proposal also includes penalties for unauthorized access, use, disclosure, or re-disclosure 

of personally identifiable information; clear specification of each authorized purpose; a 

requirement that the minimum data necessary be accessed; and satisfies the Administration’s 

criteria for when authority to access NDNH data should be considered.

The package also requires HHS to review each agency’s security position before it allows

that agency to access the data, prohibits HHS from granting access to the data for any 

purpose not authorized in statute, and requires HHS to generate a public reporting on the use 

of NDNH data. Please see Budget Chapter, A Government of the Future, and HHS’s 

Administration for Children and Families Congressional Justification for additional 

information on the full package of NDNH access proposals and the criteria for considering 

access to NDNH data.

Re-proposed from FY 2016 President’s Budget

1. Increase delinquent state income tax debt collections by allowing offset of federal 

income tax refunds to collect delinquent state income taxes for out-of-state residents. 

Estimated collections: $2.3 billion in state taxes over 10 years (no federal revenue)

Under current law, the Bureau of the Fiscal Service may offset federal tax refunds to collect 

delinquent state income tax obligations but only if the delinquent taxpayer resides in the state 

collecting the tax. This proposal would amend the Internal Revenue Code (IRC) section 

6402(e) to allow the Fiscal Service to offset federal income tax refunds to collect delinquent 

state tax obligations regardless of where the debtor resides. 

2. Reduce costs for states collecting delinquent income tax obligations by allowing states to 

send notices of intent to offset federal tax refunds to collect state income tax obligations 

by regular first-class mail, rather than by certified mail. Estimated savings: 

$202.4 million over 10 years (no federal revenue)

Under current law, the U.S. Department of the Treasury, Bureau of the Fiscal Service, may 

offset federal tax refunds to collect delinquent state income tax obligations only after the 

state sends the delinquent debtor a notice by certified mail. The statutory notice 

requirements for federal tax refund offset for all other types of debts, including federal nontax, child support, and state unemployment insurance compensation debts, are silent as to the 

notice delivery method. Federal tax refund offset regulations for all debts other than state 

income tax obligations require federal and state creditor agencies to send notices by regular 

first class mail. Similarly, notice requirements for other debt collection actions, including 

administrative wage garnishment, do not require delivery by certified mail. This proposal 

would amend IRC section 6402(e) to allow the Fiscal Service to amend its regulations to 

permit states to send notices for state income tax obligations by first class mail, saving states 

certified mail costs and standardizing notice procedures across debt types.

3. Increase delinquent federal non-tax debt collections by authorizing administrative bank 

garnishment for non-tax debts of commercial entities. Estimated Collections: 

$320 million in commercial debts over 10 years 
FS - 16

This proposal would allow federal agencies to collect non-tax debt by garnishing the bank 

and other financial institution accounts of delinquent commercial debtors without a court 

order and after providing full administrative due process. The Budget proposes to direct the 

Secretary of the Treasury to issue government-wide regulations implementing the authority 

of bank garnishment for non-tax debts of commercial entities. Bank garnishment rules under 

this authority would be subject to Treasury’s rule (31 CFR 212) protecting exempt benefit 

payments from garnishment. To reach income of commercial entities and other non-wage 

income and funds available to commercial debtors owing delinquent non-tax obligations to 

the United States, this proposal would authorize agencies to issue garnishment orders to 

financial institutions without a court order. Agencies would be required to provide debtors 

with appropriate due process and other protections to ensure that debtors have had the 

opportunity to verify and contest the debts and/or enter into repayment agreements to avoid 

issuance of an order. The Internal Revenue Service currently has similar authority to collect 

federal tax debts. The Debt Collection Improvement Act of 1996 authorized federal agencies 

to collect delinquent non-tax debt by garnishing the wages of debtors without the need to first 

obtain a court order. This proposal would reach assets of entities whose income is not 

derived from wages. Since July 2001, the Bureau of the Fiscal Service has collected $279.3 

million in garnished wages (as of November 30, 2015) on behalf of federal agencies. 

4. Increase and streamline recovery of unclaimed assets owed to the United States by 

authorizing Treasury to locate and recover assets of the United States and to retain a 

portion of amounts collected to pay for the costs of recovery. Estimated recoveries: 

$85 million over 10 years 

States and other entities hold assets in the name of the United States or in the name of 

departments, agencies and other subdivisions of the Federal Government. Many agencies are 

not recovering these assets due to a lack of expertise and/or funding. Under current 

authority, Treasury collects delinquent debts owed to the United States and retains a portion 

of collections, which is the sole source of funding for Treasury’s debt collection operations. 

While unclaimed federal assets are generally not considered to be delinquent debts, 

Treasury’s debt collection operations personnel have the skills and training to recover these 

assets. The Budget proposes to amend 31 U.S.C. 3718 to authorize Treasury to use its 

resources to recover assets of the United States. 
FS - 17

Section 3 – Budget and Performance Plan

3A – Accounting and Reporting

($114,167,000 from direct appropriations, and $13,344,000 from reimbursable resources): 

The Accounting and Reporting activity consists of three programs: Government Agency 

Investment Services, Government-wide Accounting and Reporting, and Summary Debt 

Accounting. In prior budget submissions, these three programs were separate budget activities. 

Fiscal Service has combined the three programs into one budget activity due to their 

commonalities. Additionally, all three support Treasury Strategic Goal Three to “Fairly and 

effectively reform and modernize the federal financial management, accounting and tax 

systems.”

The Government Agency Investment Services (GAIS) program issues, services, and redeems

Government Account Series (GAS) securities for federal agencies that have legislative authority 

to invest; administers State and Local Government Series (SLGS) securities and offers a flexible 

investment alternative for state and local governments to refinance their outstanding tax-exempt 

debt; and represents Treasury’s role in the federal loan program including accounting for and 

reporting on loans made to other federal agencies with legislative authority to borrow. 

The Government-wide Accounting (GWA) program produces timely and accurate financial 

information that contributes to the improved quality of financial decisions made by operating and 

overseeing the government’s Central Accounting and Reporting System. The GWA program

also works with FPAs to adopt uniform accounting and reporting standards and systems. It 

provides support, guidance, and training to assist FPAs in improving their government-wide 

accounting and reporting responsibilities. Fiscal Service collects, analyzes, and publishes 

government-wide financial information that is used by the Federal Government to establish fiscal 

and debt management policies and by the public and private sectors to monitor the government’s 

financial status. Publications include the Daily Treasury Statement, the Monthly Treasury 

Statement, the Treasury Bulletin, the Combined Statement of the United States Government, and 

the Financial Report of the United States Government (FR).

Fiscal Service is taking significant steps to address the material weaknesses found in the 

compilation process of the FR that include:

• Requesting federal entities to provide root cause analysis and corrective action plans for any 

recurring intragovernmental differences;

• Expanding feedback by providing scorecards to additional federal entities to ensure coverage 

over the material intragovernmental differences;

• Collecting data from all identified reporting entities and/or demonstrating their data is 

immaterial;

• Ensuring engagement with federal entities and that adequate support is gathered for all 

journal vouchers;

• Ensuring appropriate information regarding litigation is included in the Financial Report;

• Implementing a process to work in a more collaborative manner with key federal entity 

personnel in the preparation of complex areas in the Financial Report;
FS - 18

• Providing reasonable assurance that new or substantially revised federal accounting standards 

are consistently implemented among federal entities;

• Determining the significance of data contained in the Financial Report that does not have 

audit assurance;

• Performing an analysis of the variances for all financial statement lines and disclosures;

• Identifying and reporting all items needed to prepare the Budget Statements.

The Summary Debt Accounting (SDA) program reports daily on the balances and composition 

of the public debt, publishes the Monthly Statement of the Public Debt, and issues the annual, 

audited Schedules of Federal Debt (Schedules). The Schedules report on the single largest 

liability in Treasury’s Agency Financial Report and received an unmodified opinion for the past 

18 years.

Description of Performance:

The GAIS program strives to provide high-quality customer service, reliable transaction 

processing, and accurate and timely payment distribution. To aid in measuring performance, the 

organization conducted an annual customer survey with the intent to increase the percentage of 

customers rating GAIS as "Excellent." Fiscal Service’s FY 2016 target is 59 percent; however 

this measure will be discontinued in FY 2017 as Fiscal Service integrated all individual program 

customer service surveys into a single annual survey. A new efficiency measure to ensure timely 

and accurate reporting of investment and borrowing activity will be used to measure the success 

of the GAIS program. The FY 2017 reporting target for the new measure is 98 percent.

In FY 2015, Fiscal Service established a target of 100 percent for the Percentage of Governmentwide Accounting Reports, which include the Daily Treasury Statement (DTS), Monthly Treasury 

Statement (MTS), and consolidated Financial Report, issued on time measure. The timeliness 

standard of each report is as follows: 

• DTS target to be published by 4:00 pm (Eastern Time) each business day 

• MTS target to be published by the eighth business day each month 

• Consolidated Financial Report must be published annually 

Fiscal Service continues to achieve its targets by maintaining the established process of 

validating and reconciling data with reporting sources such as FPAs and various electronic 

deposit and payment applications. The bureau will continue modernization efforts to ensure the 

timeliness of these reports and anticipates it will achieve the 100 percent target for FY 2016 and 

FY 2017.

To transform SDA, the program created a long-term goal of restructuring or eliminating a 

percentage of unnecessary and/or duplicative business processes each fiscal year. SDA has now 

restructured or, where appropriate, eliminated the majority of its business processes; therefore 

this measure is no longer beneficial. Beginning in FY 2017, SDA will replace this measure with 

Percentage of Summary Debt Accounting reports submitted timely, with a target of 100 percent. 

SDA relies on cost per transaction to help manage the efficiency of the program. SDA 

transactions consist of activity related to the reporting of balances and the composition of the 

public debt with the average transaction totaling over a billion dollars. The actual FY 2015 cost 
FS - 19

is $19.26, which is above the target of $17.53 due to changes in the Fiscal Service cost 

accounting methodology. As a result, the target cost per item for FY 2016 and FY 2017 is 

currently $19.26; however this will be revised in the future.

3.1.1 –Accounting and Reporting Budget and Performance Plan

Dollars in Thousands

Accounting and Reporting Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Enacted Request

 Appropriated Resources $100,105 $94,044 $88,629 $86,628 $102,661 $104,600 $125,752 $114,167 

 Reimbursable Resources $4,967 $7,197 $7,416 $6,517 $6,699 $10,256 $16,121 $13,344 

Budget Activity Total $105,072 $101,241 $96,045 $93,145 $109,360 $114,856 $141,873 $127,511 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 4B 

for additional information.

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Cost Per Government 

Agency Investment 

Services Transaction ($) 

82.08 84.67 33.48 35.2 35.99 56.38 38.09 56.38 56.38

Collect and disburse 

interest/principal 

payment amounts for 

Government Agency 

Investment Services 

investments/borrowings 

timely and accurately 

N/A N/A N/A N/A N/A N/A N/A N/A 98.0

Percent of Respondents 

Selecting the Highest 

Rating of Customer 

Satisfaction with 

Government Agency 

Investment Services (%) 

55 60 60 61 57 52 58 59 DISC

Percentage of 

Government-Wide 

Accounting Reports 

Issued Timely (Includes 

Daily Treasury 

Statement - Table 1 and 

Monthly Treasury 

Statement - Table 1)

100.0 100.0 99.86 100.0 100.0 99.5 100.0 100.0 100.0

Cost Per Summary Debt 

Accounting Transaction 

($) 

11.28 14.8 22.47 19.86 16.36 19.26 17.53 19.26 19.26

Percentage of Summary 

Debt Accounting reports 

submitted timely and 

accurately

N/A N/A N/A N/A N/A N/A N/A N/A 100

Percent of Summary 

Debt Accounting 

Business Processes 

Restructured or 

Eliminated

6 9.5 6 21.4 21.4 15 15 20 DISC

Key: DISC - Discontinued 
FS - 20

3B – Collections

($40,225,000 from direct appropriations, and $4,869,000 from reimbursable resources): 

The Collections program supports Treasury Strategic Goal Three to “Fairly and effectively 

reform and modernize the federal financial management, accounting and tax systems” which 

includes the objective “to improve the disbursement and collection of federal funds and reduce 

improper payments made by the U.S. Government.” The Fiscal Service manages the collection 

of federal revenues such as individual and corporate income tax deposits, customs duties, loan 

repayments, fines, and proceeds from leases. In addition, the Fiscal Service establishes and 

implements collection policies, regulations, standards, and procedures for the Federal 

Government. These efforts also support the following Fiscal Service strategic goals:

• Serve as a catalyst for effective government through initiative and innovation

• Deliver exceptional programs and services

• Promote data transparency and usefulness as a public good

The Fiscal Service continues to promote the use of electronic systems in the collections process 

and to assist agencies in converting collections from paper to electronic media with programs 

such as:

Electronic Federal Tax Payment System (EFTPS): The Fiscal Service communicates the 

benefits of EFTPS – accuracy, security, simplicity, and flexibility – to financial institutions, 

small businesses, and tax practitioners. The goal is to continue to require businesses to pay 

their federal taxes electronically and focus efforts on increasing the number of individuals 

that pay taxes electronically. 

Pay.gov: Pay.gov is a system allowing individuals and businesses to make non-tax payments 

to federal agencies over the internet. Recent developments have focused on a mobilefriendly user interface, incorporation of digital wallet providers PayPal and Dwolla, and 

enhanced functionality in the areas of electronic billing and electronic forms. 

Check Conversion and Truncation: The Fiscal Service is employing strategies to reduce the 

number of paper checks it receives and to ensure that those it does receive are converted for 

electronic processing. The Over the Counter Channel Application (OTCnet) and Electronic 

Check Processing (ECP) are programs that provide a complete electronic record of all check 

images and related financial data that is accessible by agencies and eliminate the need to 

photocopy checks, safeguard checks, or process paper. 

Description of Performance:

The measure, Percentage Collected Electronically of Total Dollar Amount of Federal 

Government Receipts, reflects the dollar value of collections received (settled) electronically and 

supports Treasury Strategic Goal Three to “Fairly and effectively reform and modernize the 

federal financial management, accounting and tax systems.” As it is quicker and more costefficient to process electronic transactions, this measure gauges the efficiency of collecting funds 

for the Federal Government. In FY 2016 and FY 2017, Fiscal Service will continue its agency 

outreach and offer new products such as mobile applications and online bill presentment while 

expanding the use of digital wallets. Fiscal Service expects to maintain an annual electronic 

collections rate of at least 98 percent through FY 2017. 
FS - 21

3.1.2 –Collections Budget and Performance Plan

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Percentage 

Collected 

Electronically of 

Total Dollar Amount 

of Federal 

Government 

Receipts 

85 96 97 97 98 98 98 98 98

Key: DISC - Discontinued

3C – Debt Collection

($0 from direct appropriations, and $151,934,000 from reimbursable resources): 

The Debt Collection program supports Treasury Strategic Goal Three to “Fairly and effectively 

reform and modernize the federal financial management, accounting and tax systems” which 

includes the objective “to improve the disbursement and collection of federal funds and reduce

improper payments made by the U.S. Government.” Fiscal Service collects delinquent

government, state, and child support debt by providing centralized debt collection, oversight, and 

operational services to federal program agencies and states pursuant to the Debt Collection

Improvement Act of 1996 (DCIA) and related legislation. Fiscal Service uses two debt 

collection programs: Treasury Offset Program (TOP) and Cross-Servicing.

Fiscal Service implemented the new offset system, referred to as TOP Next Generation, on 

November 8, 2014. The new TOP system provides the ability to handle increasingly larger

volumes of debt and payment types, process new payment types, increase payment processing

throughput to meet future needs, and meet essential stakeholder needs. In addition, Fiscal 

Service continues to expand the offset program by including additional debts owed to states as 

well as payments made by states. In an effort to increase efficiency, the Debt Collection program

conducted random controlled trials to determine cost effective improvements to correspondence;

optimized the call center; expanded the use of highly productive debt collection approaches, such 

as wage garnishment; and continued to transition to a data-driven, analytical approach.

Additionally, Fiscal Service acquired a new Cross-Servicing collection system (Cross-Servicing 

Next Generation [CSNG]), a commercial off the shelf product, which will enable optimized, 

cost-effective collection, and resolution approaches. CSNG will permit greater automation, 

improved results and increased employee engagement. The implementation of this product and 

all its business upgrades will take place during the second quarter of FY 2017. 

Dollars in Thousands

Collections Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Request Request

 Appropriated Resources $21,911 $22,624 $21,166 $20,851 $30,469 $34,982 $38,798 $40,225 

 Reimbursable Resources $258 $1,419 $1,419 $176 $0 $3,898 $5,086 $4,869 

Budget Activity Total $22,169 $24,043 $22,585 $21,027 $30,469 $38,880 $43,884 $45,094 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 

4B for additional information.
FS - 22

Also, in close partnership with the Department of Education, the Cross-Servicing program is 

conducting a 24-month pilot program to service a total of 12,000 student loan debts. This 

began in February 2015 and will end in January 2017. Furthermore, Fiscal Service has begun 

to help agencies implement Section 5 of the DATA Act, which amends the DCIA to require 

agencies to refer to TOP eligible debt at 120 days delinquent, rather than 180 days delinquent, 

and requires Treasury to report non-compliance to Congress. Fiscal Service is working with 

OMB and agencies on the new requirements and tools developed for tracking compliance, as 

required.

Description of Performance:

The Fiscal Service’s goals for FY 2016 and FY 2017 are to collect $7.36 billion and 

$7.56 billion, respectively, in delinquent debt by expanding the use of the administrative wage 

garnishment collection tool, enhancing the use of analytics, and proposing legislative changes 

such as authorizing Treasury to offset federal income tax refunds to collect delinquent state tax 

obligations regardless of where the debtor resides. 

3.1.3 – Debt Collection Budget and Performance Plan

Dollars in Thousands

Debt Collection Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Enacted Request

 Reimbursable 

Resources $110,567 $130,474 $133,257 $153,667 $139,377 $174,634 $168,172 $151,934 

Budget Activity Total $110,567 $130,474 $133,257 $153,667 $139,377 $174,634 $168,172 $151,934 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 

4B for additional information.

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Amount of Delinquent 

Debt Collected 

Through All Available 

Tools ($ billions) 

5.45 6.17 6.17 7.02 6.91 7.28 7.12 7.36 7.56

Key: DISC - Discontinued

3D – Payments

($115,141,000 from direct appropriations, and $88,859,000 from reimbursable resources): 

The Payments budget activity supports Treasury’s Strategic Goal Three to “Fairly and effectively 

reform and modernize the federal financial management, accounting and tax systems” which 

includes the strategic objective “to improve the disbursement and collection of federal funds and 

reduce improper payments made by the U.S. Government.” Major payments include: Social 

Security Benefits, Supplemental Security Income, Federal Pension Benefits, Veterans’ 

Compensation and Pension, Railroad Retirement Pensions, and tax refunds.

Through the Payments budget activity, Fiscal Service is also responsible for controlling and 

providing financial integrity to the payment process through reconciliation, accounting, and 

claims activities. The claims activity settles claims against the United States resulting from 

Federal Government checks that have been forged, lost, stolen, or destroyed, as well as claims 

and reclamations of Electronic Funds Transfer (EFT) payments. Fiscal Service also collects 
FS - 23

monies from those parties liable for fraudulent or otherwise improper negotiation of government 

checks.

In addition, Fiscal Service actively encourages recipients to convert to electronic payment 

methods through a nationwide public education campaign, called Go Direct® as well as offering 

the unbanked and those beneficiaries who prefer a prepaid debit card the Direct Express® card, 

which enables benefit payments to be automatically deposited into the recipient’s card account 

on the payment date. As a result, 98 percent of benefit payments were disbursed electronically in 

FY 2015. Electronic payments provide timely, accurate, and efficient disbursement of Federal 

Government payments; eliminate the costs associated with postage and the re-issuance of lost or 

stolen checks; and help protect against fraud and identity theft.

The Fiscal Service has also undertaken considerable efforts to modernize its payment systems, 

incorporating new technologies and the internet. Some programs that will continue to be in 

focus are:

Stored Value Card (SVC): SVCs streamline financial requirements during initial entry 

into training of military personnel, remove physical cash from government locations 

overseas as well as from ships at sea, and provide a safe and secure means for 

government personnel stationed overseas to access and safeguard their personal funds in 

locations with limited or no connectivity. SVCs effectively reduce the high costs of 

securing, transporting, and accounting for physical currency. The program also provides 

a safe and convenient payment method for government, military, and support personnel. 

Currently, SVCs replace cash, checks, and coins at over 60 military bases and 

installations in 14 countries (including the U.S.) and on 130 Naval ships. Meeting this 

global demand necessitates the deployment of over 8,700 pieces of equipment including 

kiosks (cashless ATMs), point-of-sale terminals, laptops, and other related hardware. 

From 1997 through June 2015, over 55.7 million EFT transactions with a dollar value in 

excess of $7.7 billion were processed via the SVC programs. 

Invoice Processing Platform (IPP): IPP is a government-wide, secure, web-based 

electronic invoice exchange network connecting federal agencies and their vendors. IPP 

promotes the efficient use of resources by enabling federal agencies to receive invoices 

electronically from their vendors, transforming existing paper-based invoice processes 

into a streamlined electronic process that integrates with existing agency core financial 

systems. IPP’s single point of entry allows vendors to invoice multiple IPP enrolled 

agencies via either online or batch invoice submission. Vendors can view and receive 

notification of payments (including debt offsets) associated to their invoices via IPP. In 

addition, IPP supports the Financial Innovation and Transformation initiative to develop a 

standard for electronic invoicing government-wide.

Payment Application Modernization (PAM): The PAM investment supports a critical 

Fiscal Service function, which is the production and delivery of over one billion federal 

payments on behalf of more than 200 agencies with a single application. PAM replaced

30 existing legacy Fiscal Service payment applications that generated check, Automated 

Clearing House (ACH), International ACH Transaction (IAT), and wire transfer 

payments. PAM is modernizing the distribution of domestic payments and automatically 
FS - 24

interfaces with core Treasury systems such as the Do Not Pay Business Center (DNP) 

and the Treasury Offset Program (TOP) in order to prevent improper payments and 

collect delinquent debt owed to the Federal Government. PAM also allows FPAs to 

comply with the Government-wide Accounting mandate to submit valid component 

Treasury Account Symbol/Business Event Type Code (TAS/BETC) information on all 

payments at the time of payment origination.

Post Payment System (PPS) Consolidation: In support of Treasury’s Strategic Goal to 

“fairly and effectively reform and modernize federal financial management, accounting, 

and tax systems,” Fiscal Service has invested in the consolidation of several post payment 

systems into a single, centralized system. This investment will unify disparate business 

processes, eliminate data redundancy across systems, and provide a customer portal to be 

leveraged by federal program agencies and financial institutions for post-payment 

processing and reporting. By consolidating all post payment processing into one 

comprehensive application, Fiscal Service will be able to decommission these five legacy 

systems: Treasury Check Information System (TCIS); Payments, Claims and Enhanced 

Reconciliation (PACER); Treasury Receivable, Accounting and Collection System 

(TRACS); Teletrace; and TOP Control System (TCS). This will result in PPS, as the 

System of Record, being the authoritative data source for all payment and post payment 

data. 

PPS will include functionality to support: payment matching and verification, returns 

and cancellations, inquiries, calls and claims, funds receipt/funds management, 

reclamations, reconciliation, fraud detection, integrity analysis, reporting and integrated 

customer engagement. PPS will provide Fiscal Service and post-payment stakeholders 

with enhanced, reconciliation activities, improved information exchange, reduced 

reliance on paper, and more robust fraud detection. In addition, it will utilize 

standardized Common Government-wide Accounting Classification (CGAC) reporting 

structure and leverage commercial off-the-shelf software solutions, when appropriate, to 

provide common, best practice functionality and proven implementation methodologies. 

The Fiscal Service’s DNP provides a single, centralized point of access to timely, accurate, and 

actionable data for informed decision making and can help identify, prevent, detect, and recover 

improper payments throughout the payment life cycle while protecting individuals’ privacy. In 

FY 2015, DNP completed a major system release that provided real-time matching at the time of 

payment, replacing post-payment matching, resulting in providing agencies and programs with 

more timely access to potential improper payments that may need further investigation. It also 

provided more actionable results due to the replacement of a public data source with a restricted 

data source, thereby vastly reducing the number of false positive matches, and by providing 

additional filter functionalities that account for agency business rules thus further highlighting

potential improper payments. In addition, DNP has applied advanced analytics to produce a 

standard Agency Insight Report to provide a high-level overview of key findings and insights 

derived from the agency’s payment data. This report captures four key areas: 1) payment data 

quality assessment; 2) anomaly detection; 3) pattern and trend analysis; and 4) advanced 

matching techniques. This report also identifies opportunities for DNP to assist agencies in 

reducing or eliminating payment errors, waste, and abuse within its payment process.
FS - 25

In FY 2016, DNP will deploy a robust state-of-the-art analytics tool to support advanced 

analytics methodologies to include not only descriptive and diagnostic analytics, but predictive 

and prescriptive analytics as well. DNP will continue offering Business Process Mapping 

services in order to improve customer agencies’ internal controls and to increase efficiency in

identifying improper payments. Finally, DNP will continue focusing its engagement efforts on 

targeted high-risk improper payment issues within specific agencies.

In FY 2017, DNP will continue pursuing valuable data sources to provide timely, accurate, and 

actionable results by enhancing the DNP portal through user-defined feedback. In addition, DNP

analytics will mature to include the creation and execution of predictive models, which will 

provide customer agencies with additional tools to identify potential improper payments before 

payment in addition to identification at the time of payment or post-payment.

Description of Performance:

The measure Percentage of Treasury Payments and Associated Information Made Electronically

supports Treasury Strategic Goal Three to “Fairly and effectively reform and modernize the 

federal financial management, accounting and tax systems.” Due to the continued success of the 

Go Direct® and Direct Express® programs and implementation of the All Electronic Treasury 

priority, Fiscal Service issued 98 percent of its benefit payments and 94.8 percent of its total 

payments via EFT in FY 2015. Fiscal Service expects to achieve its targets in the outyears by 

expanding electronic conversion efforts to additional benefit agencies and payment types, such 

as other vendor miscellaneous payments and federal tax refunds.

3.1.4 – Payments Budget and Performance Plan

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Percentage of Treasury 

Payments and 

Associated Information 

Made Electronically 

82.0 84.3 88.0 92.5 94.4 94.7 95.00 95.0 95.0

Key: DISC - Discontinued 

3E – Retail Securities Services

($71,186,000 from direct appropriations, and $8,080,000 from reimbursable resources): 

Fiscal Service’s Retail Securities Services (RSS) program offers simple, safe, and affordable 

Treasury investment choices that enable Americans to invest and save for their future. The RSS 

program continues to examine the saving and investing needs of customers by researching new 

Treasury retail securities and services that will promote savings and appeal to the American 

Dollars in Thousands

Payments Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Enacted Request

 Appropriated Resources $150,395 $141,358 $142,265 $130,570 $114,650 $120,769 $118,454 $115,141 

 Reimbursable Resources $129,262 $142,340 $131,165 $102,401 $78,625 $81,953 $94,124 $88,859

Budget Activity Total $279,657 $283,698 $273,430 $232,971 $193,275 $202,722 $212,578 $204,000 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 4B 

for additional information.
FS - 26

public. In December 2014, myRA, a new retirement savings account that follows Roth 

Individual Retirement Account rules was launched in support of the President’s initiative to help 

millions of Americans start saving for retirement.

The RSS program encourages people to buy securities, access their accounts, and conduct 

transactions electronically. The program plans to implement a new securities investment 

management system that will enhance capabilities for customers to purchase, reinvest, redeem, 

transfer, and hold securities electronically. Investors will be able to learn about retail products 

and services, make informed decisions about buying Treasury securities, and manage their 

Treasury investments more efficiently. Over the next year, RSS will develop the web interface, 

as well as design and build the core infrastructure. In FY 2017, the program will deploy the core 

framework and select product content for the early releases of the new system.

The program has recently implemented two phases of the Treasury Retail E-Services (TRES) 

initiative. The virtual case file environment includes automated workflows, digitized customer 

correspondence, and fewer manual paper processes. A virtual contact center has also been 

deployed using shared telephony between two physical customer service sites. It improves 

customer service by providing a single toll free number, enhanced call menu options, and 

improved call routing. In the next year, the program will continue to improve the customer 

experience by automating notifications of case status.

In FY 2016, Fiscal Service will complete a review of the RSS program to develop the new 

mission and long-term vision, identify the future customer base, design a new savings product(s),

identify the most effective channels for interacting with customers and servicing new products,

and create an operating model and implementation roadmap.

Description of Performance:

The Cost per TreasuryDirect Online Transaction and Cost per TreasuryDirect Assisted 

Transaction measures will be discontinued in FY 2017 to allow Fiscal Service to measure 

performance for securities transactions regardless of the system used and for the incorporation of 

future offerings. In the interim, the FY 2015 performance and FY 2016 targets are:

• The internet-based TreasuryDirect system promotes savings by allowing investors to set 

up accounts, purchase electronic securities, and manage their holdings without customer 

assistance. The Cost per TreasuryDirect Online Transaction in FY 2015 was $1.49, 

below the target of $1.89 due to changes in the Fiscal Service cost accounting 

methodology. As a result, the target cost per item for FY 2016 is currently $1.49. 

• The Cost per TreasuryDirect Assisted Transaction demonstrates Fiscal Service’s 

efficiency in responding to customer inquiries when assistance from a customer service 

representative is necessary. Representatives handle phone and email inquiries, offline 

authentications, paper savings bond conversions, changes in bank information, and 

transactions requiring legal evidence. The Cost per TreasuryDirect Assisted Transaction

in FY 2015 was $9.55, above the target of $8.08 due to changes in the Fiscal Service cost 

accounting methodology. As a result, the target cost per item for FY 2016 is currently 

$9.55. 
FS - 27

Fiscal Service will add new performance measures in FY 2017 to support Treasury’s goal of 

promoting savings and the bureau’s goal to serve as a catalyst for effective government through 

initiative and innovation. The Cost per Electronic Transaction and Cost per Customer Assisted 

Transaction measures will demonstrate investor self-service and customer service efficiency, 

respectively, for all securities currently offered as well as future offerings. Fiscal Service plans 

to establish targets for each measure in FY 2016 and to meet those targets by maintaining a 

skilled customer service workforce and streamlining operations to effectively manage costs.

3.1.5 – Retail Securities Services Budget and Performance Plan

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Cost Per Electronic 

Transaction ($) N/A N/A N/A N/A N/A N/A N/A N/A B

Cost Per Customer 

Assisted Transaction ($) N/A N/A N/A N/A N/A N/A N/A N/A B

Cost Per TreasuryDirect 

Assisted Transaction ($) 8.23 3 4.58 7.3 7.18 9.55 8.08 9.55 DISC

Cost Per TreasuryDirect 

Online Transaction ($) 6.12 3.64 2.26 1.72 1.84 1.49 1.89 1.49 DISC

Increase the Number of 

Customers Who Buy 

Treasury Retail Securities 

Electronically

N/A 144,997 301,737 269,180 222,790 193,120 185,000 185,000 DISC

Percentage of Retail 

Customer Service 

Transactions Completed 

within 5 Business Days 

(%) 

92.7 73.1 75.7 74.5 89.7 83.2 88.0 88.0 DISC

Key: DISC - Discontinued 

3F – Wholesale Securities Services

($12,338,000 from direct appropriations, and $1,400,000 from reimbursable resources): 

The Wholesale Securities Services (WSS) program supports Treasury Strategic Goal One to 

“Promote domestic economic growth and stability while continuing reforms of the financial 

system” which includes the objective “to promote savings and increased access to credit and 

affordable housing options.” WSS is responsible for the announcement, auction, issuance, and 

settlement of marketable Treasury bills, notes, bonds, Treasury Inflation-Protected Securities and 

Floating Rate Notes. The program also oversees the portion of the federal infrastructure that 

Dollars in Thousands

Retail Securities Services Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Enacted Request

 Appropriated Resources $139,109 $135,337 $116,260 $110,876 $95,249 $76,711 $70,038 $71,186 

 Reimbursable Resources $15,393 $15,393 $17,166 $16,841 $17,400 $6,006 $7,691 $8,080 

Budget Activity Total $154,502 $150,730 $133,426 $127,717 $112,649 $82,717 $77,729 $79,266 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 4B 

for additional information.
FS - 28

provides for the transfer, custody, and redemption of all Treasury marketable securities that are 

purchased mostly by commercial market participants.

The auction program supports the financial critical infrastructure and is a mission essential 

function for Treasury that enables the Federal Government to finance operations. WSS ensures 

that communications, systems, processes, and contingency plans provide for high-level 

performance and business continuity for wholesale auction operations.

The auction system, Treasury Automated Auction Processing System (TAAPS), currently resides 

in an aging technical infrastructure. In an effort to ensure Treasury’s mission essential function, 

the program has started a multi-year effort to stabilize, modernize, and migrate the system to a 

new technical platform by FY 2017. The program has also begun another multi-year initiative to 

modernize TAAPS’ software components and rewrite the application by FY 2019.

Description of Performance:

Fiscal Service strives to efficiently deliver its debt financing operations, including auctions and 

buybacks, at the lowest possible cost. The Cost per Debt Financing Operation in FY 2015 was 

$174,998, above the target of $165,339, principally as a result of the migration of TAAPS to a 

new technical infrastructure. Also impacting this measure is the change in the Fiscal Service 

cost accounting methodology. As a result, the target cost per item for FY 2016 is currently 

$174,998. This measure will be discontinued in FY 2017 as Fiscal Service assesses how to better 

measure operational efficiency of debt operations given that the number of auctions is outside the 

control of the bureau. Fiscal Service plans to implement a new efficiency measure in FY 2018.

The accurate and timely release of auction results, with an emphasis on accuracy, is critical to the 

success of the WSS program. An emphasis on accuracy ensures preservation of public 

confidence in Treasury securities and stability of the financial market. Therefore, in FY 2015, 

Fiscal Service modified its performance measure from Percent of Auction Results Released in 

Two Minutes +/- 30 Seconds to Percent of Auction Results Released Accurately, with a target of 

100 percent. Released accurately is defined as auction results released to the public without any 

subsequent revisions. In the event auction results require adjustment after official release, a 

press release will be issued explaining any changes. In such a case, the results of that auction 

will not be counted as released accurately for purposes of this performance measure. Fiscal 

Service anticipates meeting its target through ongoing business process reviews and regularly 

scheduled contingency planning and mock auction exercises.
FS - 29

3.1.6 – Wholesale Securities Services Budget and Performance Plan

Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual Actual Target Target Target

Cost Per Debt Financing 

Operation ($) 162,378 157,284 159,449 141,115 137,888 174,998 165,339 165,716 DISC

Percent of Auction 

Results Released 

Accurately (%) 

100.0 100.0 100.0 99.6 99.3 99.6 100.0 100.0 100.0

Key: DISC - Discontinued

Dollars in Thousands

Wholesale Securities Services Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actuals Actuals Actuals Actuals Actuals Actuals Enacted Request

 Appropriated Resources $24,438 $24,058 $23,120 $22,092 $12,840 $10,676 $10,808 $12,338 

 Reimbursable 

Resources $2,821 $2,821 $3,051 $3,000 $2,346 $927 $1,187 $1,400 

Budget Activity Total $27,259 $26,879 $26,171 $25,092 $15,186 $11,603 $11,995 $13,738 

Note: Fiscal Service revised the budget activities and reporting to reflect the consolidated bureau activities. Please see Section 

4B for additional information.
FS - 30

Section 4 – Supplemental Information

4A – Summary of Capital Investments

Fiscal Service leads the way for responsible, effective government through commitment to 

cutting-edge technologies, service, efficient operations, sharing of best practices, and openness to 

change in order to meet the operating needs of the Federal Government. Fiscal Service 

systematically analyzes the demand for its services, considers effective methods for delivery, and 

identifies the broad asset implications through sound governance and investment management.

Effective Investment Governance

The Fiscal Service Governance and Capital Planning and Investment Control programs ensure 

the selection/re-selection, comparison, and prioritization of the most effective Information 

Technology investments to support the mission and long range plans for the Fiscal Service and 

Treasury. These programs also ensure the IT investment portfolio is well managed, cost 

effective, and achieving intended results through monthly tracking and reporting of progress. A 

monthly investment health assessment of cost, schedule, and operational performance is in place 

in addition to a formal Techstat process that engages appropriate senior level officials for insight

and successful remediation of significant issues or risks. 

Effective Project Execution

The Fiscal Service has a disciplined and consistent approach to project management (PM) as 

facilitated through a bureau-wide project management program that manages PM standards, 

procedures, and training for the bureau. In addition, a standing monthly project management 

community of practice is in place providing practitioners the opportunity for collaboration and 

continuous learning of creative problem solving/solution design related to practical lessons 

learned. Each IT investment has a dedicated program manager and a fully staffed integrated 

program team. The systems that support each investment are enhanced using iterative 

development techniques.

Enterprise Architecture Services

Enterprise Architecture (EA) services ensure that Fiscal Service applies a common language and 

framework to describe and analyze investments. The Fiscal Service EA program is designed to 

facilitate cross-agency analysis of capabilities, knowledge, processes, and relationships to apply 

evidence-based techniques, to identify duplicative investments, to discover goals and 

opportunities for collaboration with other agencies, and to establish a line-of-sight from the 

highest level strategic goals to the infrastructure that enables the achievement of those goals. 

The value of EA services is to facilitate planning by documenting where the Fiscal Service is 

currently and determining what the Fiscal Service should look like in the future so that it can 

make plans to transition from current state to future state. The planning is enabled by a holistic 

suite of integrated services that incorporates architecture perspectives from business, data, 

technical, and security. 

Risk Management

The nature of the Fiscal Service’s work requires effective risk management and high levels of 

performance to ensure the bureau maintains operational excellence while seeking innovative 

solutions to improve efficiencies and transform financial management and the delivery of shared 
FS - 31

services in the Federal government. As such, Fiscal Service has established an Enterprise Risk 

Management (ERM) office to promote a common understanding and approach to risk 

management. Through the development and issuance of an ERM framework, the bureau will 

incorporate risk management practices in decision making processes such as strategic and 

tactical planning, workforce planning, capital investment planning, and budget formulation. 

Fiscal Service will continue to communicate the importance of effective risk management to all 

employees.

Cyber Security

The Fiscal Service protects the enterprise architecture and infrastructure to ensure the 

confidentiality, integrity, and availability of information technology resources. This is 

accomplished by: monitoring the network for both internal and external information attacks, 

proactive vulnerability assessment, effective patch management, and expedient incident 

response. In addition, Enterprise Cybersecurity ensures Fiscal Service information technology 

resources are in compliance with National Institute of Standards and Technology security 

standards and fulfills annual security audit requirements.

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed and downloaded at: 

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.
FS - 32

4B – Summary of Changes to Appropriated Budget Activities

Fiscal Service completed a comprehensive evaluation of the legacy budget activities and 

associated methodologies in order to develop a single Fiscal Service approach that will allow for 

more efficient budgeting and a single cost allocation methodology. As a part of this new 

approach, Fiscal Service modified the reported appropriated budget activities to better align 

common functions. For the new reporting structure, the Do Not Pay Business Center has been 

combined with the Payments budget activity and Government Agency Investment Services, 

Government-wide Accounting and Reporting, and Summary Debt Accounting have been 

combined into a single Accounting and Reporting budget activity. 

In addition, Fiscal Service has implemented a new cost allocation methodology that 

complements the budget activity changes and more effectively and efficiently aligns costs to the 

appropriate activity. Overhead costs are now distributed in a single common and defined 

manner, eliminating the separate processes for different legacy activities. The resulting changes 

in reported budget activity costs are reflected in the table below.

$ in thousands

FY 2015 

Enacted

FY 2016 

Enacted

FY 2017 

Request

FY 2015 

Enacted

FY 2016 

Enacted

FY 2017 

Request

Accounting and Reporting 104,725 125,752 114,167

Collections 24,293 26,609 25,301 35,029 38,798 40,225

Do Not Pay Business Center 5,064 5,116 5,178

Government Agency Investment Services 13,055 13,074 13,277

Government-wide Accounting and Reporting 65,486 68,553 65,025

Payments 121,715 133,179 126,296 120,912 118,454 115,141

Retail Securities Services 95,237 94,145 94,438 76,819 70,038 71,186

Summary Debt Accounting 4,325 4,243 4,323

Wholesale Securities Services 19,009 18,931 19,218 10,699 10,808 12,338

Total 348,184 363,850 353,057 348,184 363,850 353,057

Included in Accounting & Reporting

Previous Budget Activities New Budget Activities

Included in Accounting & Reporting

Included in Payments

Included in Accounting & Reporting