Message from the Secretary of the Treasury 

Dear Member: 

The Fiscal Year (FY) 2021 President's Budget prioritizes Treasury's goals to maintain a strong 

economy and create job opportunities by promoting the conditions that enable economic growth 

and stability at home and abroad, to strengthen national security by combatting threats and 

protecting the integrity of the financial system, and to manage the U.S. Government's finances 

and resources effectively. 

Treasury's request includes $ 12 billion for the IRS for core tax administration, Taxpayer First 

Act implementation, and the third year of the integrated modernization business plan, which will 

transform the taxpayer experience and improve tax compliance with leading edge digital services 

and capabilities. The Budget requests a cap adjustment to protect the integrity of the tax system 

and reduce the tax gap, returning $64 billion in net savings to taxpayers over ten years. 

The Budget proposes increased resources for the Office of Terrorism and Financial Intelligence 

to counter illicit financial networks and the Financial Crimes Enforcement Network to strengthen 

the prevention, detection, and investigation of financial and cyber-crimes. The request includes 

funding for Treasury to identify and mitigate cybersecurity vulnerabilities in the financial 

services sector. 

The Budget prioritizes U.S. leadership in International Financial Institutions by proposing to 

extend and increase the International Monetary Fund's New Arrangements to Borrow, as well as 

authorization and funding for the Multilateral Development Banks. It also seeks funding for 

bilateral technical assistance and critical bilateral debt relief for the nation of Somalia. 

Treasury's request includes $10 million to build off the $25 million provided in FY 2020 for the 

digitization of savings bond information and the creation of an online tool that would allow 

individuals to verify ownership of unredeemed bonds dated after 1974. 

The Budget proposes legislation to return the Secret Service to Treasury to create new 

efficiencies in the investigation of financial crimes and prepare the Nation to face the threats of 

tomorrow. Technological advancements in recent decades, such as cryptocurrencies and the 

increasing interconnectedness of the international financial marketplace, have resulted in more 

complex issues facing our country. Criminal organizations have varied means of obtaining 

financing, and we have observed stronger links between financial and electronic crimes and the 

financing of terrorists and rogue state actors. 

The FY 2021 Budget includes the information required for the Annual Performance Report. I 

have validated the accuracy, completeness, and reliability of the performance data in this report. 

Sincerely, 

Sr�t-: 

Steven T. Mnuchin 

Executive Summary - 1 

FY 2021 EXECUTIVE SUMMARY 

President’s Budget Discretionary Appropriation Request 

Dollars in Thousands

FY 2019 Enacted 

(post IRS 

transfer)

FY 2020 

Enacted

FY 2020 Enacted 

(post IRS 

transfer)

FY 2021 

President's 

Budget

Management & Financial $1,458,758 $1,538,377 $1,538,377 $1,300,909 

Departmental Offices Salaries and Expenses $214,576 $228,373 $228,373 $241,473 

Post-transfer Oversight of USSS (non-add) $0 $0 $0 $1,500 

Committee on Foreign Investment in the United States (CFIUS) Fund $0 $20,000 $20,000 $20,000 

CFIUS Fees $0 ($10,000) ($10,000) ($20,000)

Subtotal CFIUS Fund (non add)1 $0 $10,000 $10,000 $0

Office of Terrorism and Financial Intelligence $159,000 $169,712 $169,712 $172,751 

Cybersecurity Enhancement Account $25,208 $18,000 $18,000 $18,000 

Treasury Capital Investments and Modernization Fund2 $4,000 $6,118 $6,118 $13,500

Office of Inspector General $37,044 $41,044 $41,044 $39,335 

Treasury Inspector General for Tax Administration $170,250 $170,250 $170,250 $171,350 

Special Inspector General for TARP $23,000 $22,000 $22,000 $17,500 

Community Development Financial Institutions Fund $250,000 $262,000 $262,000 $14,000 

Financial Crimes Enforcement Network $117,800 $126,000 $126,000 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $119,600 $119,600 $119,600 $125,837

Bureau of the Fiscal Service $338,280 $340,280 $340,280 $350,200 

Digitization of Unredeemed Matured Savings Bonds Records $0 $25,000 $25,000 $10,000 

Tax Administration3

Taxpayer Services $2,491,554 $2,511,554 $2,535,554 $2,562,554

Enforcement $4,665,600 $5,010,000 $4,909,500 $5,071,260

Operations Support $3,918,400 $3,808,500 $3,885,000 $4,104,689

Subtotal $11,075,554 $11,330,054 $11,330,054 $11,738,503 

Business Systems Modernization $150,000 $180,000 $180,000 $300,000 

Tax Reform Implementation $77,000 $0 $0 $0 

IRS Total Excluding Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,038,503 

Cap Adjustment $0 $0 $0 $400,000

IRS Total, Including Cap Adjustment $11,302,554 $11,510,054 $11,510,054 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap 

Adjustment4 $12,761,312 $13,048,431 $13,048,431 $13,339,412 

United States Secret Service 5 $2,248,159 $2,415,845 $2,415,845 $2,360,538 

Operations and Support $2,148,528 $2,336,401 $2,336,401 $2,310,296 

Procurement, Construction & Improvements $97,131 $66,989 $66,989 $38,305 

Research and Development $2,500 $12,455 $12,455 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap 

Adjustment6 $15,009,471 $15,464,276 $15,464,276 $15,699,950 

Treasury International Programs $1,547,697 $1,736,780 $1,736,780 $1,592,244 

Multilateral Development Banks $1,348,122 $1,522,205 $1,522,205 $1,481,244

Food Security $30,000 $30,000 $30,000 $0 

Environmental Trust Funds $139,575 $139,575 $139,575 $0 

Office of Technical Assistance $30,000 $30,000 $30,000 $33,000 

Debt Restructuring - Tropical Forest Conservation Act $0 $15,000 $15,000 $0 

Somalia - Bilateral Debt Relief $0 $0 $0 $78,000 

Total, Treasury excluding Cap Adjustment $16,557,168 $17,201,056 $17,201,056 $17,292,194 

Total, Treasury $16,557,168 $17,201,056 $17,201,056 $17,692,194 

6/ U.S. Secret Service appropriations are included in the subtotals for FY 2019 and FY 2020 for comparison purposes, but were not included in Treasury’s enacted 

appropriations in those years.

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. FY 2019 and FY 2020 enacted amounts exclude 

rescissions and administrative adjustments ($5.7M in FY 2019/$.7M in FY 2020).

4/ Treasury’s enacted appropriation in FY 2019 was $12,561 million, after a $200 million rescission from the Treasury Forfeiture Fund.

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries 

and Expenses.

3/ FY 2020 Enacted (post IRS transfer) includes a proposed transfer of $100.5 million from Enforcement to Taxpayer Services ($24 million) and Operations Support 

($76.5 million). FY 2019 Enacted (post IRS transfer) includes a transfer of $194 million from Enforcement to Operations Support. $77 million for implementation of 

the Tax Cuts and Jobs Act was allocated to Taxpayer Services ($65 million) and Enforcement ($12 million).

2/ Previously known as the Department-wide Systems and Capital Investments Program.
Executive Summary - 2 

MISSION STATEMENT 

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad; strengthen national security by 

combating threats and protecting the integrity of the financial system; and manage the U.S. 

Government’s finances and resources effectively. 

OVERVIEW OF REQUEST 

 The Budget requests $15.7 billion in base discretionary resources for the Department of the 

Treasury’s domestic programs, a $236 million or 1.5 percent increase from the FY 2020 enacted 

level. Excluding the United States Secret Service, Treasury requests $13.3 billion in base 

discretionary resources, a $291 million or 2.2 percent increase from FY 2020 enacted levels. It 

also requests $1.6 billion for Treasury’s international programs, a $145 million or 8.3 percent 

decrease from the FY 2020 enacted level. The Budget: 

 Proposes to transfer of the United States Secret Service (USSS) from the Department of 

Homeland Security to Treasury as a standalone bureau. The request provides USSS with 

$2.36 billion in base discretionary resources to support the 2020 Presidential election through 

inauguration, continue growth in staff to meet mission expansion, and advanced 

countermeasures to address established and evolving threats. 

 Provides the IRS with $12.0 billion from base discretionary appropriations to collect $3.6 

trillion in revenue, process more than 255 million tax returns, and continue to transform 

systems to improve taxpayer service and experience and tax administration over the longterm. 

o The request provides $300 million for multi-year modernization efforts to deliver 

long-term, systemic transformation of service and compliance for millions of 

taxpayers, small businesses, and corporations, as well as put IT operations and 

maintenance costs on a sustainable path. The IRS will continue developing a case 

management solution to replace 60 legacy systems, new digital service options 

including electronic notices and live chat assistance, and new web applications to 

streamline taxpayer filing, payment, and authentication. 

o The request proposes $106 million for Taxpayer First Act implementation to 

revamp IRS customer service, introduce new taxpayer protections, and deliver 

new online service platforms to facilitate filing and payment. 

o The request includes $5.1 billion in the enforcement account to continue building 

compliance staffing and protect billions of dollars in revenue. The IRS is one of 

the best investments in the federal government with an overall return on 

investment of $5 for every $1 invested, not including significant deterrence 

effects. Every dollar invested in enforcement requires a funding increase in 

operations support for technology and administrative costs. 

o In addition to the amounts above, the request includes a program integrity 

initiative that will generate approximately $79 billion in additional revenue and 

will cost approximately $15 billion, yielding estimated net savings of $64 billion 

over ten years. 

 Provides $241 million for Treasury Departmental Offices (including $20 million for the 

Committee on Foreign Investment in the United States) growing workload with funding 
Executive Summary - 3 

increases to continue strengthening cybersecurity in the financial services sector, provide 

impact analysis for tax regulations, and enhance and broaden Treasury’s evidence-based 

decision making and program evaluation. Contingent on the transfer of USSS to Treasury, 

the request includes $1.5 million for departmental oversight. 

 Provides $173 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), a

$3 million increase over the FY 2020 enacted level; and $127 million for the Financial

Crimes Enforcement Network (FinCEN), a $1 million increase over the FY 2020 enacted

level. These increases will allow TFI and FinCEN to continue their critical work

safeguarding the financial system from abuse and combating other national security threats

using non-kinetic economic tools. These additional resources will be deployed to bolster data

analytic and cybercrime enforcement capabilities, fortify Bank Secrecy Act data, and counter

the financial networks that support terrorists, organized transnational crime, weapons of mass

destruction proliferators, and other threats.

 Proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice’s

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to Treasury’s Alcohol and

Tobacco Tax and Trade Bureau (TTB). This transfer would leverage TTB’s resources and

expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus

on its firearms and explosives mandates, enabling both agencies to more efficiently and

effectively carry out their core missions of protecting the public.

 Provides $1.6 billion for Treasury’s International Programs to support U.S. leadership in the

International Financial Institutions. The budget proposes to extend and increase the IMF

New Arrangements to Borrow, which preserves U.S. control over the activation of

emergency IMF resources and reflects progress on a variety of institutional reforms at the

IMF. In addition, it provides for critical investments to safeguard U.S. leadership in the

Multilateral Development Banks (MDBs) while continuing to press for necessary reforms.

Recently negotiated reforms – led by the United States - will improve financial management

and debt sustainability while increasing the MDBs’ focus on infrastructure, women’s

economic empowerment, and assistance to fragile states. The request seeks authorization and

funding for U.S. participation in an African Development Bank capital increase as well as

new pledges to the World Bank’s International Development Association and the African

Development Fund. It also includes authorization to vote in favor of a capital increase at the

International Finance Corporation, which will not require any U.S. funding. The budget

proposes $33 million for Treasury’s Office of Technical Assistance and $78 million for U.S.

debt relief as part of the Heavily Indebted Poor Countries (HIPC) debt relief process for

Somalia.

 Proposes to impose appropriate Congressional oversight of the Treasury Financial Stability

Oversight Council and Office of Financial Research (OFR) by subjecting their activities to

the normal appropriations process. The Budget continues the reduced level of OFR spending

commensurate with the renewed fiscal discipline being applied across the Federal

Government.
Executive Summary - 4 

Fiscal Year Comparison of Full-Time Equivalent (FTE) Staffing (Direct and Reimbursable)
Executive Summary - 5 

(Dollars in Thousands)

Treasury Goal/Objective Boost U.S. Economic 

Growth

Promote Financial 

Stability

Enhance National 

Security

Transform 

Government-wide 

Financial 

Stewardship

Achieve Operational 

Excellence Total

Management & Financial $392,778 $38,250 $348,652 $439,872 $81,358 $1,300,909 

Departmental Offices Salaries and Expenses $82,991 $38,250 $48,938 $21,437 $49,858 $241,473 

Committee on Foreign Investment in the United States Fund

1 $20,000 $20,000 

CFIUS Fees ($20,000) ($20,000)

Office of Terrorism and Financial Intelligence $172,751 $172,751 

Cybersecurity Enhancement Account $18,000 $18,000 

Treasury Capital Investments and Modernization Fund

2 $13,500 $13,500 

Office of Inspector General $39,335 $39,335 

Treasury Inspector General for Tax Administration $171,350 $171,350 

Special Inspector General for TARP $17,500 $17,500 

Community Development Financial Institutions Fund $12,600 $1,400 $14,000 

Financial Crimes Enforcement Network $126,963 $126,963 

Alcohol and Tobacco Tax and Trade Bureau $125,837 $125,837 

Bureau of the Fiscal Service3 $360,200 $360,200 

Tax Administration $12,038,503 $12,038,503 

IRS Taxpayer Services $2,562,554 $2,562,554 

IRS Enforcement $5,071,260 $5,071,260 

IRS Operations Support $4,104,689 $4,104,689 

Business Systems Modernization $300,000 $300,000 

IRS Cap Adjustment 4 $400,000 $400,000 

IRS Total, Including Cap Adjustment $12,438,503 $0 $0 $0 $0 $12,438,503 

Subtotal, Treasury Appropriations excluding U.S. Secret Service and Cap Adjustment $12,431,281 $38,250 $348,652 $439,872 $81,358 $13,339,412 

United States Secret Service5 $688,943 $0 $1,126,932 $0 $544,663 $2,360,538 

Operations and Support $688,943 $1,114,995 $506,358 $2,310,296 

Procurement, Construction & Improvements $38,305 $38,305 

Research and Development $11,937 $11,937 

Subtotal, Treasury including U.S. Secret Service and excluding Cap Adjustment $13,120,224 $38,250 $1,475,584 $439,872 $626,021 $15,699,950 

Treasury International Programs $33,000 $1,559,244 $1,592,244 

Total, Treasury excluding Cap Adjustment $13,120,224 $71,250 $1,475,584 $1,999,116 $626,021 $17,292,194 

Non-Appropriated Accounts

Office of Financial Stability (Administrative Account) $42,154 $42,154 

Terrorism Risk Insurance (Administrative) $3,000 $3,000 

Financial Stability Oversight Council $5,220 $5,220 $10,439 

Office of Financial Research $37,636 $37,636 $75,271 

Bureau of Engraving and Printing $888,700 $888,700 

United States Mint $2,547,197 $2,547,197 

Office of the Comptroller of the Currency $882,721 $220,680 $1,103,401 

Federal Reserve Bank $645,520 $645,520 

Reimbursable to the Federal Reserve Banks $176,799 $176,799 

Financial Agent Services $865,400 $865,400 

Total, Non-Appropriated Level $4,361,473 $263,535 $3,000 $1,729,873 $0 $6,357,881 

Grand Total $17,481,696 $334,785 $1,478,584 $3,728,989 $626,021 $23,650,075 

5/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021.

4/ The FY 2021 budget includes a program integrity cap adjustment of $400 million (Enforcement $280 million, Operations Support $120 million).

1/ The overall request for Treasury's CFIUS costs is $35 million, which includes $15 million from the CFIUS Fund and $20 million from Departmental Offices Salaries and Expenses.

2/ Previously known as the Department-wide Systems and Capital Investments Program.

3/ The FY 2020 Enacted levels include $25M , available until expended, for Matured Unredeemed Debt. 

FY 2021 President’s Budget by Strategic Goal 
Executive Summary - 6 

DO1 CFIUS2 TFI Cyber TCIMF3 OIG TIGTA SIGTARP CDFI FinCEN TTB FS4 USSS1 IRS Total

FY 2020 Enacted $228,373 $10,000 $169,712 $18,000 $6,118 $41,044 $170,250 $22,000 $262,000 $126,000 $119,600 $365,280 $2,415,845 $11,510,054 $15,464,276 

Maintaining Current Levels (MCLs) $5,472 $0 $3,983 $0 $0 $982 $4,354 $510 $641 $2,827 $2,748 $9,503 $74,701 $452,085 $557,806

Pay Annualization $1,023 $757 $237 $1,048 $117 $99 $380 $590 $1,666 $45,875 $67,757 $119,549

Pay Raise $998 $738 $231 $1,022 $115 $96 $390 $575 $1,625 $11,388 $66,080 $83,258

FERS Contribution Increase $1,100 $800 $304 $1,582 $141 $131 $524 $714 $1,901 $14,146 $100,000 $121,343 

Labor Adjustment $1,805 $162,904 $164,709

Non-Pay $2,351 $1,688 $210 $702 $137 $315 $1,533 $869 $2,506 $3,292 $55,344 $68,947 

Non-Recurring Costs ($2,539) ($18,000) ($6,118) ($1,300) ($32,796) ($101,718) ($162,471)Efficiency Savings/Reinvestment ($1,246) ($2,716) ($9,876) ($143,795) ($157,633)Other Adjustment/Initiative Annualization $10,000 $900 ($55,660) ($44,760)

Adjustments to Base $4,226 $10,000 ($1,272) ($18,000) ($6,118) $982 $4,354 $510 $641 $1,527 $3,648 ($23,293) ($92,553) $308,290 $192,942FY 2021 Base $232,599 $20,000 $168,440 $0 $0 $42,026 $174,604 $22,510 $262,641 $127,527 $123,248 $341,987 $2,323,292 $11,818,344 $15,657,218 

Program Decreases ($2,691) ($3,254) ($5,010) ($248,641) ($2,864) ($1,500) ($115,990) ($379,950)

CFIUS User Fees ($20,000) ($20,000)Program Increases/Reinvestments $8,874 $4,311 $18,000 $13,500 $2,300 $4,089 $18,213 $153,236 $220,159 $442,682 

Subtotal, Program Changes $8,874 ($20,000) $4,311 $18,000 $13,500 ($2,691) ($3,254) ($5,010) ($248,641) ($564) $2,589 $18,213 $37,246 $220,159 $42,732 

FY 2021 President's Budget funded from discretionary resources

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,038,503 $15,699,950 

Program Integrity Cap Adjustment $400,000 $400,000FY 2021 President's Budget including program integrity cap adjustment

$241,473 $0 $172,751 $18,000 $13,500 $39,335 $171,350 $17,500 $14,000 $126,963 $125,837 $360,200 $2,360,538 $12,438,503 $16,099,950 

1/ The FY 2021 President's Budget assumes the transfer of U.S. Secret Service to Treasury in FY 2021. $1.5 million of the Treasury‐wide Management and Programs request in 2021 is contingent on legislation enacting the transfer.

2/ CFIUS Fund enacted levels are net appropriations including user fees.

3/ Treasury Capital Investments and Modernization Fund (TCIMF) is formerly Department‐wide Capital Systems Investment Programs (DSCIP).

4/ FY 2020 non‐recurring costs includes MUD adjustment; program increases include $10M for MUD .

Summary of FY 2021 Increases and Decreases

(Dollars in Thousands)
Executive Summary - 7 

ORGANIZATION

Treasury is organized into the Departmental Offices, seven bureaus, and three offices of Inspector General. The 

Departmental Offices are primarily responsible for headquarters operations and policy formulation, while the 

bureaus are the operating units of the organization.

 
Executive Summary - 8 

DEPARTMENTAL OFFICES

Domestic Finance works to preserve confidence in the 

U.S. Treasury securities market, strengthen 

financial institutions and markets, and promote 

access to credit, in service to long-term economic 

strength and stability.

Terrorism and Financial Intelligence (TFI) uses 

unique policy, intelligence, enforcement and 

regulatory tools and authorities to disrupt and 

disable terrorists, criminals, and other national 

security threats while also safeguarding the 

financial system against abuse by illicit actors.

International Affairs protects economic prosperity 

and national security by working to foster a most 

favorable external environment for sustained jobs 

and economic growth.

Tax Policy develops and implements tax policies and 

programs, reviews regulations and rulings to 

administer the Internal Revenue Code, and 

provides revenue estimates for the President’s 

Budget.

Economic Policy reports on economic developments 

and assists in the determination of appropriate 

economic policies. It also reviews and analyzes 

domestic economic issues and financial market 

developments. 

The Treasurer of the United States serves as a 

principal advisor to the Secretary and leads the 

Office of Consumer Policy, which provides policy 

leadership, research, and analysis to foster 

economic growth and financial security for 

American families in a robust consumer 

marketplace. The Treasurer also oversees the U.S. 

Mint, including advising the Secretary on coinage 

matters and liaising with the Federal Reserve.

The Office of Management and Chief Financial Officer, 

manages the Department’s financial resources and 

oversees Treasury-wide programs, including 

human capital, organizational performance, 

information technology, acquisition, and diversity 

issues.

Other offices within Departmental Offices include 

the General Counsel, Legislative Affairs, and Public 

Affairs. 

INSPECTORS GENERAL

Three Inspectors General – the Office of Inspector 

General (OIG), the Treasury Inspector General for Tax 

Administration (TIGTA), and the Special Inspector 

General for the Troubled Asset Relief Program 

(SIGTARP) – provide independent audits, 

investigations, and oversight of Treasury and our 

programs. 
Executive Summary - 9 

BUREAUS1

The Alcohol and Tobacco Tax and Trade Bureau 

(TTB) collects federal excise taxes on alcohol, 

tobacco, firearms, and ammunition and enforces 

and administers laws covering production, use, and 

distribution of alcohol and tobacco products. 

The Bureau of Engraving and Printing (BEP) develops 

and produces U.S. currency notes, as well as secure 

documents for government use. 

The Financial Crimes Enforcement Network (FinCEN)

safeguards the financial system from illicit use and 

combats money laundering. It also promotes 

national security through the collection, analysis, 

and dissemination of financial intelligence and 

strategic use of financial authorities. 

The Bureau of the Fiscal Service (Fiscal Service)

promotes financial integrity and operational 

efficiency by operating the U.S. government’s 

collections and deposit systems, and providing 

central payment services to the American public on 

behalf of federal agencies. It also manages the 

collection of delinquent debt, borrows funds needed 

1 Treasury proposes the transfer of the U.S. Secret 

Service from DHS as a stand-alone bureau. 

to operate the U.S. government through the sale of 

marketable and special-purpose U.S. Treasury 

securities, and accounts for the resulting debt. 

Additionally, it delivers administrative shared 

services to federal agencies and provides 

government-wide accounting and reporting. 

The Internal Revenue Service (IRS) determines, 

assesses, and collects U.S. tax revenue and helps 

taxpayers understand their tax responsibilities and 

combats tax-related fraud.

The United States Mint (U.S. Mint) designs, mints, 

and issues U.S. circulating, numismatic, and 

bullion coins, strikes Congressional gold medals 

and other medals of national significance, and 

maintains physical custody and protection of most 

of the nation’s gold and all its silver assets.

The Office of the Comptroller of the Currency (OCC) 

charters, regulates, and supervises national banks 

and federal savings associations as well as federal 

branches and agencies of foreign banks to ensure 

that they operate in a safe and sound manner, 

provide fair access to financial services, treat 

customers fairly, and comply with applicable laws 

and regulations. 
Executive Summary - 10 

TREASURY STRATEGIC MANAGEMENT

FRAMEWORK

The Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010 require 

agencies to identify goals, report progress against targets, and conduct data-driven reviews. These practices 

serve two key purposes for stakeholders within and outside of the organization — to assess the organization’s 

health and impact, and to enhance effective decision-making and strategy, including resource allocation. In this 

spirit, Treasury developed a strategic framework using best-in-class organizational performance practices to 

help achieve our strategic goals and objectives. 

ORGANIZATIONAL PERFORMANCE REVIEW CYCLE

Our organizational performance reviews provide a regular forum for open dialogue and coordination between 

bureau and departmental policy office management and leadership. We bring together different perspectives to 

set and align priorities, identify and solve problems, review agency performance, and drive results. The cycle 

integrates statutory requirements to conduct quarterly performance reviews of agency goals and a Strategic 

Objective Annual Review (SOAR). The SOAR process includes analyzing cross-cutting performance and 

identifying a set of strategic objectives as priority focus areas. In 2019, the Foundation for Evidence-Based 

Policy Act was signed into law to further advance the Federal Government’s evidence-building functions. In 

this fiscal year, Treasury approached the implementation of the evidence-building requirements by leveraging 

Treasury’s strategic management framework, including the SOAR, to initiate an agency learning agenda. 

At designated points throughout the fiscal year, we set annual priorities, evaluate progress against goals and 

objectives, discuss new strategies to improve program outcomes, and assess funding options to increase results 

for the agency. Treasury’s process and framework for managing to our strategic objectives and performance 

outcomes are described in Table 1 below. 
Executive Summary - 11 

Table 1: Strategic Framework Sessions

Fall

(October – November)

Winter

(February – March)

Spring

(April – May)

Summer

(June – July)

FocusOrganizational Performance SOAR Organizational Performance Budget Chair

Assistant Secretary for

Management/Performance

Improvement Officer

(ASM/PIO)

ASM/PIO and Deputy PIO ASM/PIO ASM/PIO and Budget

Officer

Goals/Outcomes  Review prior year’s

performance at the

bureau/office level

 Set priorities for year

ahead

 Recognize successes

 Identify shortfalls/

accountability

 Evaluate cross‐agency

progress toward strategic

objectives

 Identify strategic shifts/

validate Treasury priorities

 Outline potential topics

for annual review with the

Office of Management

and Budget (OMB)

 Assess progress on

priorities

 Identify necessary

adjustments/near‐term

improvements

 Surface problems or

assistance needed

 Recognize successes

 Identify shortfalls/

accountability

 Connect priorities to

future funding

 Explore

performance

impacts

 Strengthen

information

technology  

acquisition  

budgeting  

accountability

FY 2018 – 2022 STRATEGIC FRAMEWORK

The strategic framework comprises the Department’s FY 2018–2022 strategic goals and objectives and FY 

2018–2019 Agency Priority Goals (APGs), which align to specific objectives. All bureaus and offices align their 

programs and performance within this framework. In FY 2019, after Treasury’s annual review to assess 

progress towards the Department’s strategic objectives, Treasury leadership identified three key updates. First, 

we realigned Strategic Objective 2.2 (Foreign Exchange Practices) as a new strategy under Strategic Objective 

1.4 (Free and Fair Trade). Second, we updated Strategic Objective 3.3 (Economic Strength and National 

Security) to ensure our supporting strategies on this objective better distinguished responsibilities among offices 

and to reflect Treasury’s current efforts. Finally, we expanded Strategic Objective 5.3 from only reflecting 

“customer value” to “customer value and experience” to better align with the President’s Management Agenda’s 

goal of improving customer experience. Our updated goals and objectives are reflected below. 

   
Executive Summary - 12 

Strategic Goals Strategic Objectives/APGs

Contributing

Bureaus/Offices

Economic

Goal 1: Boost U.S.

Economic Growth

1.1:  Tax Law Implementation

        Aligned APG: Reducing Refund Fraud

1.2:  Strong Economic Fundamentals

1.3:  Trusted Currency and Services

        Aligned APG: Improved Business Qualification Process

1.4:  Free and Fair Trade

Domestic Finance

International Affairs

Tax Policy

Treasurer

Economic Policy

IRS

BEP

U.S. Mint

TTB

OCC

Goal 2: Promote

Financial Stability

2.1:  Housing Finance Reform

2.2:  (Incorporated into Strategic Objective 1.4)

2.3:  Foreign Technical Assistance

2.4:  Financial Sector Critical Infrastructure and Cybersecurity

Domestic Finance

International Affairs

Management

OCC

Security

Goal 3: Enhance

National Security

3.1:  Strategic Threat Disruption

        Aligned APG: U.S. and Mexico Strategic Dialogue on Illicit Finance

3.2:  Anti‐Money Laundering and Combating Financing of Terrorism

Framework

3.3:  Economic Strength and National Security

TFI

FinCEN

International Affairs

Economic Policy

OCC

Financial

Goal 4: Transform

Government‐wide

Financial

Stewardship

4.1:  Financial Data Access and Use

4.2:  Debt Management

4.3:  Federal Financial Performance

Domestic Finance

International Affairs

IRS

Fiscal Service

Management

Goal 5: Achieve

Operational

Excellence

5.1:  Workforce Management

5.2:  Treasury Infrastructure   

5.3:  Customer Value and Experience

All Offices and

Bureaus, led by the

Office of

Management

The Government Performance and Results Act (GPRA) and the GPRAMA established the need for agencies to 

identify performance goals, report progress against targets, and conduct data-driven reviews. These practices 

serve two key purposes for stakeholders within and outside of the organization: to assess the organization’s 

health and impact and to inform decision-making and strategy (including effective resource allocation). In this 

spirit, we developed a strategic framework supported by best-in-class organizational performance practices to 

help achieve the Department’s strategic objectives.

Our organizational performance reviews provide a regular forum for open dialogue and coordination among 

Department, bureau, and office leadership and bringing together different perspectives to set and align 

priorities, identify and solve problems, review agency performance goals, and drive results. The cycle integrates 

statutory requirements to conduct performance reviews of agency strategic objectives, agency priority goals, and 

cross-agency priority goals.
Executive Summary - 13 

FYS 2018-2019 AGENCY PRIORITY GOALS

Fraud Prevention: The filing of fraudulent individual and business tax returns by identity thieves continues to 

have a significant impact on tax administration. Identity theft tax fraud occurs when an individual uses 

another person’s or business’ name and Taxpayer Identification Number to file a fraudulent tax return for the 

purpose of obtaining a tax refund. The IRS is using data analytics and public-private partnerships to reduce 

the amount of unprotected identity theft tax refunds. Progress toward this goal is measured using the IRS’s 

annual Taxonomy, a statistical estimation of the amount of revenue protected and unprotected from identity 

refund fraud based on analysis and sampling of returns. Although the Taxonomy provides a statistical 

estimation of fraud detection, the detection methods are evaluated continuously for opportunities to improve 

detection or reduce taxpayer burden. For processing year 2016, the IRS estimates between $1.68 billion and 

$2.31 billion of identity theft tax refunds were unprotected (i.e., refunds were paid on probable identity theft 

refund fraud claims and are likely unrecoverable). That same year, the IRS successfully protected between 

$10.56 billion and $10.61 billion in identity theft refunds (i.e., IRS defenses prevented payment). For processing 

year 2017, the IRS estimates between $0.11 billion and $0.60 billion of identity theft tax refunds were 

unprotected. The IRS successfully protected between $11.78 billion and $11.81 billion in identity theft refunds. 

As a result of the Security Summit efforts and by using data analytics, the IRS is preventing more identity 

theft. The Security Summit is a public-private partnership that consists of the IRS, representatives from the 

software industry, tax preparation firms, payroll and tax financial product processors, and state tax 

administrators. It was established in 2015 to combat identity theft refund fraud to protect the nation's 

taxpayers. 

Improved Business Qualification: Ongoing growth in the alcohol beverage industry in recent years has resulted 

in an increased volume in permit applications for new alcohol producers. This growth in workload has 

contributed to delayed permit approvals that exceeded TTB’s service standards. Reaching the goal of 

consistently achieving the service standard for original permit applications has proven difficult, with application 

volumes high and continuing to increase. TTB met one of its two APG targets by the end of FY 2019, reducing 

average approval times by 20% from 96 days in FY 2017 to 75 days in FY 2019. However, TTB fell short of its 

second target to achieve the 75-day service standard for 85% of permit applicants. In FY 2019, during the 

government shutdown, with industry continuing to file for Federal permit approval, the backlog of pending 

applications continued to increase and age. As a result, for FY 2019, TTB issued 58% of permit applications 

within its 75-day service standard. TTB will remain focused on performance improvement through FY 2020. 

Through concerted recovery efforts, TTB ended the fiscal year with 68% of applications issued within 75 days in 

September 2019, which positions the bureau to achieve this priority goal target in FY 2020. TTB expects to 

achieve and maintain its performance goals through Permits Online system enhancements, continued process 

improvements, and implementation of permit application revisions, with the full impact of these changes 

expected to be realized in FY 2020. TTB strategies in the coming years also will remain focused on reducing the 

application error rate through system checks, enhanced guidance, and simplified application requirements. 
Executive Summary - 14 

U.S. and Mexico Strategic Dialogue on Illicit Finance: Established in 2014, the Strategic Dialogue on Illicit 

Finance (SDIF) was created in an effort to deliver greater economic growth and opportunity for the citizens of 

Mexico and the United States by safeguarding our financial systems against the threats of illicit finance. SDIF 

remained a critical avenue in FY 2019 between the Government of Mexico (GOM) and the Treasury Department 

on combatting illicit finance activities that exist within and between our two countries. During this year, the 

two governments partnered together to address systemic anti-money laundering / countering the financing of 

terrorism (AML/CFT) issues, specific threats that affect both of our countries, and sharing best practices on the 

use of existing and new authorities available to each government. Within the SDIF, the Treasury Department 

has been on track in our key milestones of assisting with Mexico’s domestic sanctions reforms, providing 

information to be used in investigations by Mexico’s law enforcement, and confirming our mutual understanding 

of illicit finance trends associated with Mexican drug trafficking organizations. Also completed this year was 

Treasury and the GOM’s annual principal-level SDIF, hosted at the Assistant Secretary level, and the planning 

for a SDIF deputies (to be held in November 2019). Principals committed the SDIF to forming and developing 

three task forces on human trafficking, trade based money laundering, and exchange houses. These milestones 

were accomplished despite Mexico’s loss of key personnel and austerity measures that were enacted by the new 

Administration, as well as the disruption in scheduling and planning caused by the U.S. Government shutdown 

in January. In FY 2020, the Treasury Department will continue working with the GOM through SDIF on 

AML/CFT issues of concern. 
Executive Summary - 15 

FYS 2020-2021 AGENCY PRIORITY GOALS

Treasury Priority Goals (FYs 2020‐2021) Goal Leader(s)

Implementation of the Foreign Investment Risk Review

Modernization Act of 2018 (FIRRMA). Successful implementation of

the Foreign Investment Risk Review Modernization Act of 2018

(FIRRMA) will ensure that identified national security risks arising from

certain foreign investments—including from some types of

investments and transactions that previously fell outside of

Committee on Foreign Investment in the United States’ (CFIUS)

jurisdiction—are addressed in an effective manner. By September 30,

2021, the Department of the Treasury, as Chair of the CFIUS program,

will implement key elements of FIRRMA, including:

 Publishing final FIRRMA regulations, including filing fees, by

February 2020.

 Completing Phase 1 of work space construction to enhance

operational security by June 2020.

 Implementing a new information technology infrastructure

and electronic case management system by September 2020.

 Implementing and managing processes to monitor a

significantly increased caseload.

Thomas Feddo, Assistant

Secretary for Investment

Security, Department of the

Treasury

David Eisner, Assistant

Secretary for Management,

Department of the Treasury  

Fraud Prevention. Reduce the amount of unprotected identity theft

tax refunds paid by 2 percent by December 31, 2019 (based on data

reporting lag), and by an additional 1 percent annually through

December 31, 2021.  

Charles P. Rettig,

Commissioner, Internal

Revenue Service (IRS)

Paper Check Reduction. Create a modern, seamless, and cost‐

effective Federal payment experience for Americans by:

 Reducing the number of paper checks printed by Treasury’s

Bureau of the Fiscal Service to

49 million by the end of FY 2021, compared with 54 million in

FY 2019; and

 Achieving an electronic payment rate of 96.1 percent by the

end of FY 2021, compared with 95.6 percent in FY 2019.

Timothy Gribben,

Commissioner, Bureau of the

Fiscal Service
Executive Summary - 16 

ENTERPRISE RISK MANAGEMENT

FRAMEWORK

OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, 

provides guidance to federal managers to effectively manage risks to achieve strategic objectives. Management, 

together with the Chief Risk Officer (CRO), is responsible for establishing a governance structure to effectively 

implement a robust process of risk management and internal control and for developing an enterprise-wide risk 

profile. Successful implementation requires us to establish and foster an open, transparent culture that 

encourages people to communicate information about potential risks and other concerns.

The CRO meets regularly with senior leaders to discuss top risks to critical programs, systems, projects, and 

priorities, including response strategies. The Office of Risk Management (ORM) has also established an 

Enterprise Risk Management (ERM) Council, chaired by the Deputy CRO, which brings together risk managers 

from each of our bureaus and policy offices on a bi-monthly basis to share best practices, and discuss risks. 

ORM works with the bureaus and policy offices across Treasury to monitor and annually update our risk profile. 

Beyond its work at Treasury, ORM leads an interagency ERM community of practice including officials from 

approximately 40 federal agencies. This group grew from ORM’s efforts to support agencies in their 

implementation of ERM, including the July 2016 publication of the Playbook: Enterprise Risk Management 

(ERM) for the U.S. Federal Government. This government-wide working group meets on a bi-monthly basis to 

discuss common risks and various methods of implementing the guidelines of the Circular.

ENTERPRISE RISKS AND CHALLENGES

Through the FY 2019 SOAR and enterprise risk management process, we identified the following cross-cutting 

operational risks. 

Evolving Cyber Climate: Treasury, the U.S. government, and the whole financial sector face growing 

complexity of technology, increasing sophistication of adversaries, and techniques.

Aging IT Infrastructure, Data Sharing and Analytics Capabilities: Aging infrastructure and technical debt, a 

risk shared across the U.S. government, can impede analytics capabilities, program innovation, and improved 

delivery of products and services.

Procurement, Acquisition, and Vendors: Supply chain vulnerabilities and insufficient acquisition planning 

increase operational risk.

Workforce Management: Ongoing government-wide challenges in recruiting and retaining qualified candidates 

presents mission risks, and exacerbates the long-standing risk of knowledge and skills gaps as a greater 

proportion of Treasury’s workforce becomes eligible to retire. 

Balancing Mission Objectives and Resource Constraints: Treasury is at the forefront of several new initiatives 

to improve our economy and keep it on a stable footing. Due to uncertain funding amounts and timing, there is 

a risk that we will not be as agile as we should be in balancing new innovations or initiatives with existing 

requirements or projects. 
Executive Summary - 17 

ADDITIONAL INFORMATION

HUMAN CAPITAL PLAN IMPLEMENTATION

In FY 2020, Treasury’s Human Capital Community will continue its efforts towards a competency-based 

management approach. In alignment with these efforts, below are some of the strategies that are the focus for 

FY 2020: 

 Continued implementation of the Integrated Talent Management System (DASHR-CHCO) 

 Expand and integrate technology to increase human capital management capability, enhance services, 

streamline processes and increase operational efficiency 

 Improve the Human Resources customer experience in a manner that results in higher degrees of 

customer satisfaction (DASHR-CHCO) 

 Validate updated HR governance approach and expand coverage to include subsidiary bodies, resulting 

in greater focus on high-value human capital issues by HR practitioners, HR Officers, and Department 

Leadership (DASHR-CHCO) 

 Make improvements to Treasury’s Human Capital Evaluation System resulting in a higher level of 

maturity as assessed by the Office of Personnel Management (DASHR-CHCO) 

 Develop and implement effective workforce planning processes (TTB) 

 Pilot competency model in the Integrated Talent Management (ITM) System (BEP) 

 Deliver an Enterprise Workforce Plan (IRS) 

 Continue to strengthen the EEO/Diversity & Inclusion Programs across the service (IRS) 

 Strengthen Employee Engagement with support from the FEVS Engagement Advisory Committee 

(FEAC) (Mint) 

 Improve Workforce Planning efforts/data driven hiring decisions through 

workload/capacity measurement (BFS) 

 Utilize attrition and retention data to drive employee engagement efforts (FinCEN) 

AWARDS SPEND PLANS

In July 2019, the Treasury Office of the DASHR-CHCO issued a memorandum to Treasury bureaus regarding 

their awards spending plans to ensure that those plans set forth a comprehensive strategy to develop and foster 

a culture of recognition, including formal and informal recognition. The memo also indicated that bureaus must 

establish meaningful distinctions in performance and provide greater rewards to employees who have 

demonstrated the highest-levels of performance and achievement. Allocation of award funds should strike a 

strategic balance between rating-based awards and individual contribution awards (e.g., special act awards, onthe-spot awards) and should focus on rewarding excellence, especially in mission-critical occupations, hard-tofill positions, and other key positions requiring critical skills set. In doing so, bureaus should honor all collective 

bargaining obligations and agreements consistent with law and regulation. In the past, most awards were tied 

to rating-based performance. Treasury will continue to monitor the balance between rating-based awards and 

individual contribution awards; additionally we will work to determine the effectiveness of the awards and 

recognition programs. 
Executive Summary - 18 

SUMMARY OF MANAGEMENT AND PERFORMANCE CHALLENGES

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

Department, in accordance with the Reports Consolidation Act of 2000. These challenges do not necessarily 

indicate deficiencies in performance; some represent inherent risks that require continuous monitoring. Refer 

to Section C of Part 3, Other Information, in the FY 2019 Treasury Agency Financial Report (AFR) for a 

detailed discussion of these challenges, including our progress toward addressing them.2 GAO releases a 

government-wide high-risk list every two years. Treasury has shared responsibility for one risk area and lead 

responsibility in another. 

OIG – IDENTIFIED MANAGEMENT CHALLENGES

 Operating in an Uncertain Environment;

 Cyber Threats;

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

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

 Information Technology Acquisition and Project Management.

TIGTA – Identified Management Challenges 

 Security Over Taxpayer Data and Protection of IRS Resources;

 Implementing Tax Law Changes;

 Addressing Emerging Threats to Tax Administration;

 Supporting an Enhanced Taxpayer Experience;

 Modernizing IRS Operations;

 Improving Tax Reporting and Payment Compliance;

 Reducing Fraudulent Claims and Improper Payments;

 Impact of Global Economics;

 Protecting Taxpayer Rights; and

 Achieving Operational Efficiencies

GAO – Identified High-Risk Areas 

 Modernizing the U.S Financial Regulatory System (OFR/FSOC/OCC/Federal Reserve); and

 Enforcement of Tax Laws (IRS).

GOOD ACCOUNTING OBLIGATION IN GOVERNMENT ACT (GAO-IG ACT) 

The Good Accounting Obligation in Government Act (the Act) requires each Federal agency to include, in its 

annual budget justification, a report that identifies each public recommendation issued by the Government 

Accountability Office (GAO) and the agency's inspectors general (IGs) that has remained unimplemented for one 

year or more from the budget justification submission date. In compliance with the Act, Treasury has included 

a report listing each public recommendation issued by GAO, Treasury Office of Inspector General (OIG), and 

2 The FY 2019 AFR is available at https://home.treasury.gov/system/files/236/Treasury-FY-2019-AFR-Final111519-508-FINALrevised.pdf. The response letters are on pages 187-195. 
Executive Summary - 19 

Treasury Inspector General for Tax Administration (TIGTA). For recommendations with which Treasury 

agreed, this report provides timelines for full implementation of the planned corrective actions (PCAs). For 

recommendations with their PCAs completed, this report indicates their status as "Implemented. Pending 

auditor validation." For recommendations with which Treasury disagreed or did not implement due to 

budgetary constraints or other factors, this report indicates their status as either "Rejected" or "On Hold," 

respectively. For recommendations where Treasury did not formally respond or take action, this report 

indicates “No Action Taken.” 

The Act also requires a reconciliation between the agency records of unimplemented recommendations and each 

IGs' Semiannual Report to Congress (SAR). Treasury IGs use the same system (Treasury’s Joint Audit 

Management Enterprise System (JAMES)) for the reporting of unimplemented recommendations in the SAR. 

In addition, Treasury IGs have direct access to JAMES and regularly review and validate recommendation 

implementation status recorded in JAMES by conducting corrective action verifications and follow-up audits. A 

reconciliation table is provided as part of this report to illustrate that the discrepancies between this report and 

the SAR are due to reporting criteria differences. 

The information used to create this report is based on JAMES and GAO’s recommendations database available 

on www.gao.gov. 

Reporting Methodology and Report Structure

This report includes GAO, OIG, and TIGTA recommendations issued between 2/1/2012 and 1/31/2019 (7 years 

per Treasury’s record retention policy) that remained unimplemented for one year or more from the planned 

fiscal year 2021 budget justification submission date. 

The report has five parts: 

Appendix 1: A report listing GAO recommendations and their implementation status. 

Appendix 2: A report listing OIG recommendations and their implementation status. 

Appendix 3: A report listing TIGTA recommendations and their implementation status. 

Appendix 4: A reconciliation of this report and the IGs’ SARs. 

Appendix A: A listing of acronyms used throughout this report. 
Executive Summary - 20 

Status of Unimplemented Recommendations 

Out of a total of 432 unimplemented recommendations, 190 have been implemented and are awaiting auditor 

verification, 193 have corrective actions in progress, and 49 are in “rejected,” “on hold,” or “no actions taken” 

status. 

Unimplemented Recommendations By Audit Area 

Out of a total of 432 unimplemented recommendations, the top three audit areas of Tax Administration and 

Compliance, Information Technology, and Administration of Program Operations account for 82% of all 

unimplemented recommendations. 

Please see https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports for more information. 

86

37

70

142

48

32

17

0

20

40

60

80

100

120

140

160

GAO OIG TIGTA

Corrective Actions in Progress

Implemented and Awaiting

Auditor Verification

Rejected, On Hold, or No Action

Taken

6

12

16

44

101

102

151

0 20 40 60 80 100 120 140 160

Terrorist Financing

Improper Payments

Banking and Lending

Financial Statements

Administration of Program Operations

Information Technology

Tax Administration and Compliance
Executive Summary - 21 

EVIDENCE ACT

The Foundations for Evidence-Based Policymaking Act ("Evidence Act"), Public Law 115-435, takes steps to 

advance evidence-building functions in the Federal government. The law builds on existing Federal policies and 

data infrastructure investments in order to support information quality, access, and use. The Evidence Act 

challenges agencies to rethink how they are currently using and organizing evidence. An evidence-building 

activity section (section D) is provided in the subsequent Treasury budget account chapters. This evidencebuilding section provides an overview of the data and evidence necessary to make critical decisions about 

program operations, policy, and regulations, and provides visibility into the impact of resource allocation on 

achieving program objectives. 

IDEA ACT

As required by section 3(b)(2) of Public Law 115-336, 132 Stat. 5025-5028, the 21st Century Integrated Digital 

Experience Act (21st Century IDEA or the Act), Treasury will provide a report to Congress on modernizing 

agency websites and digital services. This report will include a list of key websites and digital services operated 

by the Department of the Treasury that have been prioritized and targeted for modernization, including a list of 

the websites and digital services maintained by Treasury that are most viewed or utilized by the public, or are 

otherwise important for public engagement; a prioritization of the websites and digital services listed that 

require modernization to meet the Act requirements; and an estimation of the cost and schedule for modernizing 

the websites and digital services as prioritized. Please see https://home.treasury.gov/system/files/291/TreasuryWebsite-And-Modernization-Report-Dec2019.pdf for more information. 

MACHINE READABLE SUMMARY TABLES

Treasury has developed, for online posting, machine-readable files of the budget summary tables in the 

executive summary chapter of the FY 2021 Congressional Justification. Please see 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budget-requestannualperformance-plan-and-reports for more information. 

IT WORKING CAPITAL FUND (WCF)

Treasury is proposing to include new transfer authority to the Department-wide Systems and Capital 

Investments Program (DSCIP) to leverage existing funding and introduce further flexibility that will allow 

Treasury to continuously modernize information technology infrastructure across the Department. These 

changes will allow for Treasury bureaus to invest in IT projects that advance their mission and align to 

Departmental Chief Information Office priorities. Treasury is also proposing to change the name of this account 

to the Department for the Treasury Capital Investments and Modernization Fund (TCIMF). For additional 

information on this proposal see the TCIMF chapter of the Treasury request. 



Congressional 

Budget 

Justification & 

Annual 

Performance 

Report and Plan

 Fiscal Year 2021

Publication 4450 (Rev. 2-2020) Catalog Number 39720Z

Department of the Treasury Internal Revenue Service www.irs.gov
IRS-i 

Table of Contents

Section I – Budget Request........................................................................................................... 1

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

1.1 – Appropriations Detail Table ........................................................................................... 1

Introduction ............................................................................................................................... 2

Vision for the Future................................................................................................................. 3

Reducing the Tax Gap .............................................................................................................. 4

Program Integrity Cap Adjustment........................................................................................ 6

1B – Summary of the Request.................................................................................................. 7

1.2 – Budget Adjustments Table ............................................................................................ 12

1C – Base Adjustment and Program Changes Description ................................................. 12

Base Adjustment ...................................................................................................................... 12

Maintaining Current Levels ................................................................................................... 13

Pay Annualization (3.1%) ..................................................................................................... 13

Pay Raise (1.0%) ................................................................................................................... 13

FERS Contribution Increase ................................................................................................. 13

Non-Pay ................................................................................................................................. 13

Additional Required Labor Costs .......................................................................................... 13

Efficiencies / Savings ............................................................................................................... 13

Increase e-File Savings ......................................................................................................... 13

Space Optimization ................................................................................................................ 13

Personnel Savings ................................................................................................................. 14

Program Increases ................................................................................................................... 14

IRS Integrated Modernization Business Plan ........................................................................ 14

Implementing the Taxpayer First Act .................................................................................... 22

1.3 – Object Classification (Schedule O) Obligations .......................................................... 25

1D – Appropriations Language and Explanation of Changes ............................................ 26

1E – Legislative Proposals ...................................................................................................... 35

1F – IRS Use of Evidence and Evaluation ............................................................................. 38

Section II – Budget and Performance Plan .............................................................................. 41

Taxpayer Services ................................................................................................................... 42

2.1 – Budget Adjustments Table ............................................................................................ 43

2.2 – Object Classification (Schedule O) Obligations .......................................................... 44

2.3 – Appropriation Detail Table .......................................................................................... 45

2A – Pre-Filing Taxpayer Assistance and Education ........................................................... 45

FY 2021 Changes by Budget Activity .................................................................................... 48

2.1.1 – Budget and Performance Report and Plan ............................................................... 49

2B – Filing and Account Services ......................................................................................... 49

FY 2021 Changes by Budget Activity .................................................................................... 52

2.1.2 – Budget and Performance Report and Plan ............................................................... 53
IRS-ii

Enforcement ............................................................................................................................. 54

2.1 – Budget Adjustments Table ............................................................................................ 55

2.2 – Object Classification (Schedule O) Obligations .......................................................... 56

2.3 – Appropriation Detail Table .......................................................................................... 57

2C – Investigations ................................................................................................................ 57

FY 2021 Changes by Budget Activity .................................................................................... 60

2.1.3 – Budget and Performance Report and Plan ............................................................... 61

2D – Exam and Collections ................................................................................................... 61

FY 2021 Changes by Budget Activity .................................................................................... 67

2.1.4 – Budget and Performance Report and Plan ............................................................... 68

2E – Regulatory ..................................................................................................................... 68

FY 2021 Changes by Budget Activity .................................................................................... 71

2.1.5 – Budget and Performance Report and Plan ............................................................... 72

Operations Support ................................................................................................................. 73

2.1 – Budget Adjustments Table ............................................................................................ 74

2.2 – Object Classification (Schedule O) Obligations .......................................................... 75

2.3 – Appropriation Detail Table .......................................................................................... 76

2F – Infrastructure ................................................................................................................ 76

FY 2021 Changes by Budget Activity .................................................................................... 79

2.1.6 – Budget and Performance Report and Plan ............................................................... 80

2G – Shared Services and Support ........................................................................................ 80

FY 2021 Changes by Budget Activity .................................................................................... 83

2.1.7 – Budget and Performance Report and Plan ............................................................... 84

2H – Information Services ..................................................................................................... 84

FY 2021 Changes by Budget Activity .................................................................................... 87

2.1.8 – Budget and Performance Report and Plan ............................................................... 88

Business Systems Modernization ........................................................................................... 89

2.1 – Budget Adjustments Table ............................................................................................ 90

2.2 – Object Classification (Schedule O) Obligations .......................................................... 91

2.3 – Appropriation Detail Table .......................................................................................... 92

2I – Business Systems Modernization.................................................................................... 92

FY 2021 Changes by Budget Activity .................................................................................. 104

2.1.9 – Budget and Performance Report and Plan ............................................................. 105

Section III – Supplemental Information ................................................................................. 106

3.1 – Summary of Capital Investments ............................................................................... 106

3.2 – Return on Investment (ROI) for IRS Major Enforcement Programs .................... 112

3.3 – IRS Performance Measures Table .............................................................................. 114

3.4 – Summary of FY 2019 Savings Realized ...................................................................... 116

Section IV – Appendix .............................................................................................................. 117

4.1 Appropriations Detail Table with Program Integrity Cap Adjustment .................... 117

Increase Audit Coverage ..................................................................................................... 119

Increase Collection Coverage ............................................................................................. 122
IRS-iii

Expand Coverage in the Tax-Exempt Sector ....................................................................... 124

Expand Cyber and Virtual Currency Compliance Efforts .................................................. 125

4.2 – Summary of IRS FY 2021 Request by Business Unit (including the Program 

Integrity Cap Adjustment) ................................................................................................... 128

4.3 – Summary of IRS FY 2021 Identity Theft Budget Request ....................................... 128

4.4 – Summary of IRS FY 2021 ACA Budget Request ...................................................... 129

4.5 – Summary of IRS FY 2021 Cyber Security Budget Request ..................................... 130

4.6 – Summary of IRS FY 2021 Budget Request ................................................................ 131
IRS-1

Section I – Budget Request

1A – Mission Statement

Provide America’s taxpayers top-quality service by helping them understand and meet their tax 

responsibilities and enforce the law with integrity and fairness to all.

1.1 – Appropriations Detail Table

Dollars in thousands

Internal Revenue Service Change % Change

Appropriated Resources

FY 2019

Operating Plan1

FY 2020

Enacted2

FY 2021

Enacted3

FY 2020 to FY 2021 

Request

FY 2020 to FY 2021 

Request

New Appropriated Resources: FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Taxpayer Services 28,531 $2,556,554 26,760 $2,535,554 25,678 $2,562,554 (1,081) $27,000 -4.04% 1.06%

Pre-Filing Taxpayer Assistance and 

Education 4,335 621,907 4,524 656,829 4,341 667,018 (183) 10,189 -4.05% 1.55%

Filing and Account Services 24,196 1,934,647 22,236 1,878,725 21,337 1,895,536 (898) 16,811 -4.04% 0.89%

Enforcement 33,478 $4,677,600 35,388 $4,909,500 35,026 $5,071,260 (362) $161,760 -1.02% 3.29%

Investigations 2,833 595,686 2,971 654,285 2,933 675,533 (38) 21,248 -1.28% 3.25%

Exam and Collections 29,698 3,907,290 31,467 4,091,953 31,147 4,225,886 (320) 133,933 -1.02% 3.27%

Regulatory 947 174,624 950 163,262 946 169,841 (4) 6,579 -0.42% 4.03%

Operations Support 10,277 $3,918,400 11,970 $3,885,000 12,140 $4,104,689 169 $219,689 1.41% 5.65%

Infrastructure 891,140 881,654 895,071 13,417 1.52%

Shared Services and Support 4,181 900,287 4,947 1,012,155 5,023 1,063,984 76 51,829 1.54% 5.12%

Information Services 6,096 2,126,973 7,023 1,991,191 7,117 2,145,634 93 154,443 1.32% 7.76%

Business Systems Modernization 445 $150,000 426 $180,000 517 $300,000 91 $120,000 21.36% 66.67%

Subtotal New Appropriated Resources 72,731 $11,302,554 74,544 $11,510,054 73,361 $12,038,503 (1,183) $528,449 -1.59% 4.59%

Other Resources:

Reimbursables 642 124,559 978 170,726 1,027 179,262 49 8,536 5.01% 5.0%

Offsetting Collections - Non 

Reimbursables 9,749 31,781 33,370 1,589 5.0%

User Fees 96 319,023 75 530,230 1,520 549,930 1,445 19,700 1926.67% 3.72%

Recovery from Prior Years 7,515 11,386 11,339 (47) -0.41%

Recoveries Paid 3,681 3,681 

Unobligated Balances from Prior 

Years 727 356,057 15 168,743 15 116,142 (52,601) 0.0% -31.17%

Transfers In/Out 111 

Resources from Other Accounts

Subtotal Other Resources 1,465 $817,014 1,068 $916,547 2,562 $893,724 1,494 ($12,730) 139.89% -1.39%

Total Budgetary Resources 74,196 $12,119,568 75,612 $12,426,601 75,923 $12,932,227 311 $515,719 0.41% 4.15% 1

FY 2019 Operating Plan amount includes a $194.4 million interappropriation transfer from Enforcement to Operations Support to cover operations and maintenance 

requirements in FY 2019. FY 2019 amount also includes $77 million for the Section 112 Administrative Provision to implement requirements under the Tax Cuts and Jobs 

Act (Public Law 115-97). FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

2 FY 2020 Enacted assumes a proposed transfer of $100.5 million from Enforcement to Taxpayer Services ($24 million) and Operations Support ($76.5 million).

3 FY 2021 Request does not include a $400 million Program Integrity Cap Adjustment.
IRS-2 

Introduction

The Internal Revenue Service (IRS) fiscal year (FY) 2021 budget request provides $12 billion (a 5 percent 

increase) to administer the nation’s tax system fairly, collect more than $3.6 trillion ingross taxes to fund 

the government, and strengthen tax compliance. The request includes a $400 million program integrity 

investment in FY 2021 that over 10 years will generate $79 billion in additional revenue and reduce the 

$381 billion net tax gap. The IRS is one of the best investments in the federal government with an overall 

return on investment (ROI) of about $5 for every $1 invested, excluding significant deterrence effects. The 

request provides: 

• $452 million for inflation and labor investments to fund current activities and annualization of the

3.1 percent pay raise from Congress;

• $300 million for modernization to transform the taxpayer experience with new digital

communications, online payment tools and reminders for individuals and tax professionals, and

stronger data encryption to protect taxpayer information from billions of cyberattacks; and

• $106 million to implement the Taxpayer First Act of 2019 which will revamp customer service,

introduce new taxpayer protections, and deliver new online service platforms to facilitate filing and

payment for individuals and businesses.

The IRS is executing the largest tax reforms in 30 years with the Tax Cuts and Jobs Act and the Taxpayer 

First Act. We are also implementing an ambitious modernization plan, delivering the annual filing season, 

and conducting important criminal investigations. Even with the lapse in appropriations and 

implementation of tax reform, the IRS started the 2019 filing season as planned and issued nine out of ten 

refunds within 21 days. Systems maintained 100 percent uptime with no unscheduled outages, which 

ensured submission processing, fraud detection, and online payments continued without interruption. 

The IRS recently receivedstreamlined critical pay authority for technology positions, multiyear budget 

authority that will allow better execution of contracts, and new electronic filing requirements. These 

changes will improve IRS performance, reduce errors in tax returns that inconvenience taxpayers, and 

lower processing costs. We look forward to building on these efforts with the FY 2021 request, including 

working with Congress to implement important legislative reforms such as expanding error correction 

authority and providing Treasury explicit authority to set standards for paid preparers. 

The IRS interacts with more Americans than any other institution. During the successful 2019 filing 

season, the IRS processed about 255 million federal tax returns andforms and issued more than 109 million 

federal tax refunds totaling over $300 billion. Nine out of 10 of those refunds were issued within 21 days, 

and the average refund per household was about $2,800. On April 15, 2019, the IRS processed the largest 

single-day filing volumes ever recorded (about 15.3 million returns) and observed record-breaking use of 

IRS Online Account and Direct Pay applications. 
IRS-3

The IRS must serve taxpayers in a manner that facilitates voluntary compliance by providing proper levels 

of staffing and support at points of significant taxpayer interaction. The IRS is using advanced analytics 

every day to improve enforcement and encourage voluntary compliance. 

In the year ahead, we have many exciting changes on the horizon. We are embarking on a journey 

about how best to provide our services and how we are currently organized,as we work to implement 

provisions in the Taxpayer First Act and help improve our working relationships with taxpayers and 

others. We will also work to put in place the concepts outlined in the IRS Integrated Business 

Modernization plan. We will continue to put taxpayers first, recognize the critical role our workforce 

plays in fulfilling our mission and make improvements across our operations. We also must work 

hard to enhance every perspective of the taxpayer experience while enhancing both civil and criminal 

enforcement efforts and numerous other priorities. We are making a difference, and we will not stop 

in the successful pursuit of our mission on behalf of the greatest country in the world.1

Chuck P. Rettig

Vision for the Future

The Internal Revenue Service (IRS) FY 2018 – 2022 Strategic Plan articulates the IRS vision and will 

guide the IRS’s strategic decision-making. The plan includes six strategic goals:

• Empower and enable all taxpayers to meet their taxobligations.

• Protect the integrity of the tax system by encouraging compliance through administering and 

enforcing the taxcode.

• Collaborate with external partners proactively to improve taxadministration.

• Cultivate a well-equipped, diverse, flexible and engaged workforce.

 1 Internal Revenue Service Progress Update, Fiscal Year 2019, Putting Taxpayers First. December 2019. 

https://www.irs.gov/pub/irs-pdf/p5382.pdf
IRS-4

• Advance data access, usability and analytics to inform decision making and improve operational

outcomes.

• Drive increased agility, efficiency, effectiveness and security in IRS operations.

The IRS is supporting multiple strategic initiatives including:

• Customer Experience Cross Agency Priority Goal: The IRS is leading the Office of Management 

and Budget (OMB) customer experience goal on behalf of the Department of the Treasury. As part 

of the goal and in response to the Taxpayer First Act, the IRS is undertaking a significant 

assessment of its approach to customer service, preparing improvement recommendations, and will

develop a comprehensive customer service strategy. 

• Fraud Prevention Agency Priority Goal: The IRS has set a goal to reduce the amount of 

unprotected identity theft tax refunds by an additional 1 percent annually through December 31, 

2021. The IRS exceeded the FY 2018 and FY 2019 goal by reducing the amount of fraud refunds

paid by an estimated 88 percent between processing year 2016 and 2018. The IRS successfully 

protected $6 billion in refunds in 2018. The opt-in Identity Protection Personal Identification 

Number (IP PIN) program will be expanded to 10 more states for the 2020 filing season. An IP 

PIN is a six-digit number assigned to eligible taxpayers that helps prevent the misuse of their 

Social Security number on fraudulent federal income tax returns.

• Electronic Payments Agency Priority Goal: The IRS and the Bureau of the Fiscal Service are 

leading the goal to reduce paper checks printedto 49 million by the end of FY 2021, compared 

with 54 million in FY 2019; and achieve an electronic payment rate of 96.1percent by the end of 

FY 2021, compared with 95.6 percent in FY 2019. Tax checks continue to represent a significant

portion (52 percent) of all federal paper checks delivered to taxpayers each year. 

Reducing the Tax Gap

The IRS is one of the best investments the federal government makes, with an ROI of about $5 for every $1 

invested. The net tax gap, which refers to the amount of taxes owed to the federal government that are not 
IRS-5

collected, was estimated on average at about $381 billion per year between 2011 and 2013. The FY 2021 

request includes resources to help target the tax gap and provide robust civil and criminal enforcement to 

protect against those who pursue overly aggressive tax positions, while ensuring honest taxpayers have 

access to the services they need, and includes legislative proposals to give the IRS more authority to 

address the tax gap.

Reducing the tax gap requires the IRS to maintain a robust enforcement program. The IRS’s work is still

labor intensive despite technological improvements. Operational efficiencies alone will not offset the 

cumulative effect of lost staff on the level and quality of services. This is most visible in enforcement 

activities. Reductions to enforcement staffing levels between FY 2010 and 2019 likely reducedtotal 

enforcement revenue collected (TERC) by around $70 billion. 

Note: Losses would likely be greater but for recent improvements in automation, notices, and analytics.

While a portion of the unpaid tax obligations that make up the tax gap result from a lack of knowledge or 

ambiguity and complexity in tax law, willful evasion is a significant contributing factor. The IRS could 

help remedy this with investments funded by the program integrity cap adjustment, which includes targeted 

investments in enforcement activities that will increase revenue and lower the tax gap. 

The request and legislative proposals provide the IRS with a blueprint to address various facets of the tax 

gap. The modernization plan will provide significant improvements in the taxpayer experience by 

increasing online service options and making it easier for taxpayers tofind answers to their questions. IRS 

research demonstrates making it easier for taxpayers to meet their obligations with self-service tools and 

user-friendly customer service improves compliance. Modernizing operations and expanding data analytics 

throughout the organization – in part by replacing legacy systems – will assist the IRS in determining 

which tax returns need review for compliance questions. This means fewer honest taxpayers will face an 

interaction with the IRS that results in no change to the return and more IRS resources will be available for 

taxpayer assistance and for focusing on deliberate non-compliance. 

57.6 55.2 50.2 53.3 57.1 54.2 54.3 56.9 59.4 57.5

0.0 0.2 2.0 4.4

6.5 7.7 9.7

11.7 14.1 14.4

0

20

40

60

80

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Revenue ($B)

Fiscal Year

Foregone Revenue

TERC (actual) Foregone revenue
IRS-6

Program Integrity Cap Adjustment

In addition to the base appropriations request of $12 billion request, the budget proposes a $400 million 

discretionary program integrity cap adjustment in FY 2021 to fund investments in expanding and 

improving the effectiveness and efficiency of the IRS’s overall tax enforcement program. The budget 

proposes $280 million for the Enforcement account and $120 million for the Operations Support account. 

Additional adjustments are provided in future years to fund new initiatives and inflation. These 

investments will generate $79 billion in new revenue over 10 years and will cost $15 billion for net revenue 

of $64 billion over 10 years. This return on investment (ROI) is likely understated because it does not 

reflect the effect that enhanced enforcement has on deterring non-compliance. For example, under the 

proposal, the Criminal Investigations Division would expand personnel in seven locations and major cities 

where tax and cybercrimes are prevalent. The IRS will be able to enhance its overall coverage and 

decrease risk to the nation’s voluntary tax compliance system. More information on the cap adjustment is 

available in Section 4.1 of the Appendix and in the Budget Process Chapter of the Analytical Perspective 

volume of the FY 2021 President’s Budget.
IRS-7

1B – Summary of the Request

The IRS is responsible for administering the nation’s tax system and meeting the needs of America’s 

taxpayers by helping them understand their tax responsibilities and by enforcing the law with integrity and 

fairness. The IRS’s core operations include collection of individual and corporate taxes, examination of 

returns, taxpayer assistance, and oversight of tax-exempt organizations, as well as administering multiple 

refundable tax credits and other specialized programs. 

In FY 2019 the IRS collected $3.6 trillion in taxes (gross receipts before tax refunds) and generated 

95 percent of the funding that supports the Federal Government’s operations. With the U.S. tax base 

becoming more complex, one of the IRS’s key responsibilities is to make it easier for taxpayers to 

understand and meet their tax obligations.

FY 2021 Budget Request and Priorities

The FY 2021 request is $12.039 billion, $528.5 million or 4.6percent more than the FY 2020 enacted level 

of $11.510 billion. The base budget request provides funding to carry out the IRS mission. 

Appropriation Account ($ in Millions)

Taxpayer Services $2,562.5

Enforcement 5,071.3

Operations Support 4,104.7

Business Systems Modernization 300.0

Total Appropriated Resources $12,038.5

This funding level includes a program increase of $220 million for modernization ($114 million) and 

implementation of the Taxpayer First Act ($106 million).

255M $3.6T $2,800 $57.5B

Federal Tax

Returns and Forms

Processed

Collected in 

Gross Taxes

Average 

Individual Refund

Enforcement Revenue 

Collected
IRS-8

Tax Administration Challenges and Risks

Over the last few years, IRS workload and responsibilities increased. Operational efficiencies alone cannot 

fully compensate for the effect of lost staff on the level and quality of services provided. Substantially 

every taxpayer service and enforcement statistic has declined considerably since 2010. The following chart 

displays the dramatic reduction in FTE over the past 10 years. In FY 2019, the IRS was able to stop this 

decline, revamped its hiring efforts, has begun to see significant progress in hiring, and expects to make

approximately 7,000 external hires between FY 2019 and 2020.

Section 113/112 refers to funding provided by Congress in the IRS administrative provisions for specific purposes in recent appropriations legislation. 

In FY 2016 and 2017, funds were provided for level of service, identity theft, and cybersecurity. In FY 2018 and 2019, funds were provided for 

implementing the Tax Cuts and Jobs Act. Similarly, Congress provided a separate appropriation (approximately $15 million) in FY 2009 – 2011 to 

implement the health insurance tax credit as part of the Trade Act of 2002. 

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

FY 2010

Actuals

FY 2011

Actuals

FY 2012

Actuals

FY 2013

Actuals

FY 2014

Actuals

FY 2015

Actuals

FY 2016

Actuals

FY 2017

Actuals

FY 2018

Actuals

FY 2019

Actuals

FTE

IRS FTE from Newly Appropriated Resources FY 2010 - FY 2019

Section 113/Sec. 112 Health Insurance Tax Credit Administration (HITCA)

Business Systems Modernization (BSM) Operations Support (OS)

Enforcement (ENF) Taypayer Services (TS)
IRS-9

Excludes Wage & Investment and Taxpayer Advocate in Taxpayer Services to avoid skewing data with seasonal hiring adjustments. Excludes over 900 

additional hires through the IRS Forward (Recent Graduates) Program. Operations Support includes BSM hires. Operations Support hiring has increased 

alongside Enforcement hiring to facilitate onboarding and provide mission critical services including technology. Internal selections are excluded. 

Including internal and external selections, for example, Enforcement hiring in FY 2019 was more than 4,200.

Why Does the IRS Need Operations Support Funding?

The Operations Support account currently funds multiple activities that have a direct tie to basic and critical 

IRS activities and directly ensure that IRS personnel funded in Enforcement and Taxpayer Service accounts 

can execute their mission. For example, while revenue agents are funded in the Enforcement account, the 

facilities (and the resulting rent and physical security) and the computer systems that they use to conduct 

their work are funded in the Operations Support account. Similarly, customer service representatives 

funded in Taxpayer Services use telephone lines, work on computer systems, and work in facilities funded 

through Operations Support. Without commensurate funding in Operations Support, these personnel 

would not be able to conduct their work to provide quality service and ensure taxpayers can meet their tax 

obligations. 

10 

1,578 

892 

63 

3,760 

1,431 

73 

5,338 

2,323 

0 1,000 2,000 3,000 4,000 5,000 6,000

Taxpayer

Services

Enforcement

Operations

Support

IRS External Hiring in FY 2019 and FY 2020

Total Hiring Planned FY 2020 Per External Hiring FY 2019 Perm External Hiring

What Operations Support Funds* Percent

Information Technology 57.4%

Rent and Physical Security 21.3%

Human Capital Office 6.0%

Printing and Postage – Media and Publications 4.7%

Headquarters 4.4%

Facilities Management & Security Services 2.3%

Chief Financial Officer 1.5%

Privacy, Governmental Liaison and Disclosure 1.4%

Communications & Liaison 0.6%

Other 0.4%

Total 100.0%

* Based on FY 2019 Actual Obligations
IRS-10

As a part of the organizational and strategic work that the IRS is doing to respond to the Taxpayer First 

Act, the IRS is examining how and where these types of activities should be funded to provide a 

transparent and more accurate estimate of the cost of administering Taxpayer Services and Enforcement 

programs. The IRS looked first at rent and physical security costs and estimates that $235 million in 

Taxpayer Service costs and $392 million in Enforcement costs could be realigned from the Operations 

Support appropriations. The exhibit in the Proposed Physical Security-Rent Adjusted Levels provides a 

table of how costs could be realigned and more information.

Why is the Demand for IT Spending Growing?

Spending on information technology at the IRS has steadily increased in response to electronic filing, 

growing demand for online services, technological advances, and security concerns.

IT is an Increasing Share of the IRS Budget

In FY 2019, considering all sources of funding (including user fees), 57.4 percent of Operations Support 

funding was spent on IT, up from 45.6 percent in FY 2010. There are several main reasons IT demand is 

growing: 

• Taxpayers expect more electronic interactions, and the IRS strives to provide them;

• IT efficiencies that benefit the IRS overall sometimes increase costs in Operations Support.

Electronic filing, for example, saves manual effort in Taxpayer Services but is funded in 

Operations Support. The savings occur in Taxpayer Services or Enforcement but costs to achieve 

those savings are expended from Operations Support;

• Modernization programs developed in the Business Systems Modernization account must have 

their IT operations and maintenance funded from Operations Support; 

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

IT % of total OS % Total IT % of OS (Excludes BSM but includes User Fees)
IRS-11

• As increasingly sophisticatedfraud schemes threaten IRS systems, the IRS must increase IT 

security efforts (for example, the IRS spends around $330 million on cybersecurity and $450 

million on identity theft); and

• New statutory requirements necessitate additional IT investment.

While IT spending at the IRS continues to increase consistent with trends in the private and public sector 

for comparable organizations, a 2018 benchmarking analysis conducted by the MITRE Corporation found 

that “higher IRS IT spend numbers, where present, seem consistent with the IRS size, significant number of 

outdated legacy systems, need to modernize, and new legislative requirements.”2 Basic operations and 

maintenance costs today exceed $2 billion per year, and without modernization, these costs are projected to 

grow at an unsustainable trajectory. Ultimately, modernization will allow the IRS to lower its operations 

and maintenance costs and direct more of its resources to new development, enforcement, and service. 

The National Taxpayer Advocate has identified the need to replace antiquated technology systems as a top 

priority: “IRS performance already is significantly limited by its aging systems, and if those systems aren’t 

replaced, the gap between what the IRS should be able to do and what the IRS is actually able to do will 

continue to increase in ways that don’t garner headlines but increasingly harm taxpayers and impair 

revenue collection.”

 2 “Information Technology Spend Profiles: Federal Agencies, Industry, and IRS IT Comparison.” MITRE Study Team. 

August 9, 2018. 
IRS-12

1.2 – Budget Adjustments Table

Dollars in thousands

Bureau: Internal Revenue Service 

Summary of Proposed FY 2021 Request FTE Amount 

FY 2020 Enacted (Pre-IAT) 74,174 $11,510,054 

Planned Interappropriation Transfer 370 

FY 2020 Enacted 74,544 $11,510,054 

Changes to Base:

Maintaining Current Levels (MCLs) $452,085 

Pay Annualization (3.1% average pay raise) 67,757 

Pay Raise (1.0% average pay raise) 66,080 

FERS Contribution Increase 100,000 

Non-Pay 55,344 

Additional Required Labor Costs 162,904 

Efficiencies/Savings: (1,536) ($143,795)

Increase e-File Savings (85) (4,684)

Space Optimization (6,200)

Personnel Savings (1,451) (132,911)

Subtotal FY 2021 Changes to Base (1,536) $308,290 

FY 2021 Current Services 73,008 $11,818,344 

Program Changes:

Program Increases

Integrated Modernization Business Plan 91 113,799 

Implementing the Taxpayer First Act 262 106,360 

Subtotal FY 2021 Program Increases 353 $220,159 

Total FY 2021 Budget Request 73,361 $12,038,503 

See footnotes in 1.1 -- Appropriations Detail Table

1C – Base Adjustment and Program Changes Description

Base Adjustment..................................................................$0 / +370 FTE

The FY 2020 enacted level of $11.510 billion assumes a $100.5 million interappropriation transfer (IAT)

from Enforcement to Taxpayer Services ($24.0 million) and Operations Support ($76.5 million), which is

included in the IRS FY 2020 Operating Plan. A total of 370 FTE will be added to Taxpayer Services to 

support delivery of a 60 percent Level of Service (LOS) and an estimated 65 percent LOS for the filing 

season (January through April) on the Accounts Management phone lines in FY 2020. 
IRS-13

Maintaining Current Levels.......................................................+$452,085,000 / 0 FTE

Pay Annualization (3.1%) +$67,757,000 / 0 FTE

Funds are requested for annualization of the January 2020 3.1 percent average pay raise. 

Pay Raise (1.0%) +$66,080,000 / 0 FTE

Funds are requested for a 1.0 percent average pay raise in January 2021.

FERS Contribution Increase +$100,000,000 / 0 FTE

Funds are requested for the 1.3 percent increase to the Federal Employee Retirement System (FERS) 

contribution rates effective FY 2021, for a total employer contribution of 17.3 percent of base salaries. This 

amount is in addition to the 2.4 percent increase absorbed in FY 2020. 

Non-Pay +$55,344,000 / 0 FTE

Funds are requested for inflationary increases in non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. This amount is based on an OMB Circular A-11 inflation factor of 2.0 percent. 

Additional Required Labor Costs +$162,904,000 / 0 FTE

Funds are requested to pay for increases in labor resulting from employees moving through career ladders, 

above journey level promotions, manager payband increases, and within-grade increases ($117.9 million). 

These funds will also pay for an increase in employee performance awards spending of 1.0 percentage 

point of non-SES/SL/ST salary spending per OMB Circular A-11.

Efficiencies / Savings........................................................-$143,795,000 / -1,536 FTE

Increase e-File Savings -$4,684,000 / -85 FTE

The IRS projects a total of 1,300,100 fewer returns filed on paper (623,000 individual and 676,500 business 

returns). As a result, the IRS would need 85 fewer FTE in submission processing, generating a savings of 

$4.7 million. 

Space Optimization-$6,200,000 / 0 FTE

The IRS will reduce expenditures on rent and improve usage of office space across the country. Since

2013, the IRS released 3.7 million square feet, closing 115 buildings and reducing total rent costs by about 

11 percent. For FY 2020, the IRS anticipates the release of 500,000 square feet with an estimated 

$10 million in annualized rent savings. The IRS will continue to consolidate space in FY 2021, projecting 

a release of 243,000 square feet for an estimated $6.2 million in annualized rent savings.
IRS-14

Personnel Savings -$132,911,000 / -1,451 FTE

Although the budget request increases staffing resources to support strategic priorities, the IRS must 

manage its personnel costs through limited attrition replacement and seasonal workforce adjustments across 

many operational areas. These adjustments are necessary to fund the $452 million in inflationary and labor 

cost increases for existing personnel, including annualization of the FY 2020 pay raise, the proposed 

FY 2021 pay raise, employee promotions, and employee retirement contributions. To achieve these 

savings, the IRS plans to:

• Fill critical vacancies only; 

• Streamline the workforce by reducing administrative, analyst, and other support positions;

• Realign mission critical occupations by hiring employees who have the background and skills to 

support the IRS in meeting its strategic goals, objectives, and priorities.

Program Increases.......................................................................+$220,159,000 / +353 FTE

IRS Integrated Modernization Business Plan +$113,799,000 / +91 FTE

Position Type/Other Costs FTE Positions $000

IRS Integrated Modernization 

Business Plan 91 182 $113,799 

IT Specialist 91 182 11,279 

Contractual Services 83,895 

Hardware & Software 18,625 

Total 91 182 $113,799 

The modernization plan provides a roadmap for improving IRS systems and taxpayer services. 

Modernization is an IRS priority and a key driver of the President’s Management Agenda. The plan will 

enable the IRS to provide consistently superior service to taxpayers and deliver long-term budget 

efficiencies as the IRS modernizes capabilities currently provided via legacy applications. The budget 

requests an increase of $113.8 million for an appropriated budget of $300 million in FY 2021. The IRS is 

working diligently to deliver Section 2101 of the Taxpayer First Act, which requires independent 

verification of Customer Account Data Engine 2 and Enterprise Case Management implementation. The 

IRS will also prepare its annual Key Insights report highlighting 2021 deliverables and funding allocation.

The request funds:

• Web Applications ($25 million): The IRS will expand the capability for taxpayers to use anonline 

account, building on current capabilities to create and submit online installment agreements and make 

payments. The IRS will develop new Tax Pro capabilities for Power of Attorney and Disclosure 

Authorization. Tax Pro capabilities will provide taxpayers and tax professionals a digital service 

channel to establish and manage taxpayer/tax professional authority relationships. 
IRS-15

• Taxpayer Digital Communications Outbound Notification ($10 million): The IRS will continue

developing digital notices available through a secure online account for taxpayers who prefer that

channel over mailed correspondence. The IRS has developed a metric to measure its short-term

progress: the percentage of high-volume IRS notices available to be viewed by taxpayers digitally.

This investment will increase taxpayer response rates to notices, reduce burden on taxpayers and the

IRS, and promote more efficient interactions. This effort will reduce IRS costs over time – the IRS will

spend approximately $185 million on postage costs in FY 2020.

• Live Assistance ($15 million): The investment funds the Live Assistance program to expand customer

callback capabilities allowing taxpayers to keep their place in queue without remaining on the phone

and the Live Chat capability that allows taxpayers to interact with assistors in a web-based chat session.

The IRS will also deploy machine learning and natural language processing to quickly answer common

taxpayer inquiries and improve call routing to deliver expert service to customers and empower

taxpayers with real-time responses.

• Customer Account Data Engine 2 (CADE2) ($100 million): Since the Individual Master File (IMF)

was built almost 60 years ago, the IRS has made additions to legacybase code to reflect annual tax law

changes. As a result, the base code of IMF includes embedded business logic written in outdated

programming languages that only an extremely small number of IRS personnel understand. Funding

will be used to continue re-engineering the IMF core components of posting, settlement, and analysis

functions for individual taxpayer accounts by applying modern programming languages to the most

complex areas of the IMF. This investment will:

o Reduce the burden of ongoing maintenance and routine updates due to tax law changes

through a common data model;

o Enable enhanced data accessibility both within the IRS and for taxpayers, and security

controls; and

o Support business units to deploy advanced analytical capabilities addressing key issues of

compliance, fraud, and identity theft.

The IRS has set a goal of reducing the amount of legacy code in the IRS technology environment by 

30 percent by FY 2021 and 75 percent by FY 2024.

• Enterprise Case Management (ECM) ($64 million): The ECM investment will modernize and

consolidate more than 60 legacy case management applications. The investment will establish a

common cloud infrastructure, automate business functions, and enable seamless case transfers,
IRS-16

promoting collaboration that will improve enforcement and facilitate a comprehensive customer 

experience for taxpayers. In FYs 2020-2021, ECM expects to deliver its first release. The IRS is 

currently running ECM pilots and anticipates the Tax Exempt and Government Entities division being 

the first target customer for migration to the new platform. 

• Robotic Process Automation (RPA) ($5 million): RPA is the implementation of smart software 

designed to automaticallyperform high-volume, repeatable tasks that are normally labor intensive. 

These new tools will record the actions an employee takes to complete a computer-based task and then 

rapidly replicate those actions as many times as necessary with increased accuracy – allowing 

employees to focus on high value work. This investment will allow the IRS to scale an enterprise 

solution and onboard new projects that build off implementations completed for IRS procurement, 

monitoring offers-in-compromise, tax exempt referrals, and the internal IRS IT help desk. 

• Application Program Interface (API) ($5 million): The IRS plans to expand the use of APIs. Using 

modern approaches for exchanging data, the IRS will provide expanded integration and data access to 

taxpayers and authorizedthird parties, such as business and government entities using APIs.

• Cloud Execution ($5 million): This investment will provide the IRS with convenient, on-demand 

network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, 

applications, and services) that can be provisioned rapidly and released with minimal management 

effort or service provider interaction.

• NextGen Infrastructure (NGI) ($15 million): This investment will allow the IRS to continue 

modernizing its infrastructure base (hardware, software, network resources, and services) and support 

agile software development and delivery practices.

• Vulnerability and Threat Management ($20 million): This investment will enable the IRS to improve 

security integration in system development and automate security testing; apply use cases to enhance 

security audit analytics and compliance; and enhance data protection through encryption. 

• Identity & Access Management ($12 million): This investment in user identity controls, privileged 

access protections, building access security, and software security configuration will help the IRS 

mitigate the risk of unauthorized access to tax data as the IRS delivers new online tools to taxpayers 

and the number of private sector data breaches increases.
IRS-17

• Security Operations and Management ($14 million): This investment will deliver a next generation 

secure operations center; improve incident analysis and forensic network investigation; and protect 

High Value Assets by blocking network access for unauthorized users.

As part of the modernization plan, the IRS committed to publishing performance measures evaluating cost, 

schedule, outputs, and outcomes associated with modernization and direct and indirect effects on service 

and enforcement as well as annual deliverables and funding allocations. While several measures are being 

updated for Taxpayer First Act performance measure requirements and revised funding levels for Business 

Systems Modernization ($180 million versus the FY 2020 request of $290 million), the IRS is committed 

to several goals as part of the modernization plan and the FY 2021 request:

Modernization Measures & Milestones 

TAXPAYER EXPERIENCE

Objective Measure FY 2019 Baseline* Interim Progress FY 2024 Target

TRUST & 

CONFIDENCE

Research indicates that 

an improved customer 

experience can lead to 

increased compliance, 

engagement, and trust.

American Customer 

Satisfaction Index score1

74 out of 100 (as of 

FY 2018) Increase Increase

DIGITAL ACCESS

Increase use of digital 

self-help tools.

Percent of interactions by 

taxpayers seeking 

services from the IRS that 

are completed through 

self-assistance

79% (as of FY 2017) 82% in FY 2020 Increase

 * FY 2019 baselines are as of the beginning of FY 2019, unless otherwise indicated.

Note: Integration of activities to implement the Taxpayer First Act and realization of a reduced budget could result 

in resequencing IRS Modernization Portfolio capabilities necessitating adjustments to measures. 1 IRS will continue to identify better ways to measure customer satisfaction, including analyzing the IRS wide 

customer satisfaction surveys.
IRS-18

DIGITAL ACCESS

Provide taxpayers with 

additional digital options 

for interacting with the 

IRS

Number of taxpayer

interaction types that have a 

digital alternative2 18 In progress 35

DIGITAL ACCESS

Give taxpayers access to 

their IRS notices online

Percent of high-volume IRS 

notices available to be 

viewed by taxpayers 

digitally3 0% 100% by the end of 

CY 2020 In progress

HELPFUL REMINDERS

Give taxpayers access to 

their IRS notices online.

Percent of taxpayers opting 

in to receive the monthly 

installment agreement 

notice digitally 0% 10% by FY 2021 25%

PERSONALIZED SERVICE 

& CONTROL

Offer customer callback 

where there is the 

highest demand for live 

assistance.

Number of live assistance 

applications offering a 

callback option None

1 telephone application

in FY 2019; Additional 

telephone applications 

each fiscal year

61 applications 

(accounting for 

95% of taxpayer 

demand)

 2 Based on prioritized list of taxpayer interactions. This measure may be impacted by future work to improve digital 

services, in accordance with the 21st Century Integrated Digital Experience Act. 3 These notices account for an estimated 35% of notice volume. This measure may be impacted by future work to 

improve digital services, in accordance with the 21st Century Integrated Digital Experience Act.
IRS-19

CORE TAXPAYER SERVICES & ENFORCEMENT

Objective Measure FY 2019 Baseline* Interim Progress FY 2024 Target

FRAUD PREVENTION

Reduce fraudulent tax 

refunds resulting from 

identity theft.

Amount of unprotected 

identity theft tax refunds 

paid In progress Additional 1% 

reduction

Additional 1% 

annually by 

CY 2024

ANOMALY DETECTION

Enhanced systemic 

identification of 

noncompliance and fraud 

will allow the IRS to 

expand taxpayer 

protection.

Number of data sources 

(return types, schedules and 

datasets) screened for 

anomaly detection through 

Return Review Program 40

Approximately 10 

additional sources by 

FY 2021

60 

EASE & SIMPLICITY

Increase taxpayer usage of 

online identity verification 

services.

Percent of taxpayers using the 

ID Verify tool

14% Increase 5% in CY2020 Increase 50% 

by CY 2024

MODERNIZED IRS OPERATIONS

Objective Measure FY 2019 Baseline* Interim Progress FY 2024 Target

COST CONTAINMENT

According to the 

Government

Accountability Office, 

federal spending on IT 

operations and

maintenance has been 

steadily increasing. Until 

modernization progress is 

achieved, we expect this to 

continue to grow.

Stabilize the cost of operations 

and maintenance4 84% N/A 80% 

 * FY 2019 baselines are as of the beginning of FY 2019, unless otherwise indicated.

Note: Integration of activities to implement the Taxpayer First Act and realization of a reduced budget could result 

in resequencing IRS Modernization Portfolio capabilities necessitating adjustments to measures. * FY 2019 baselines are as of the beginning of FY 2019, unless otherwise indicated.

Note: Integration of activities to implement the Taxpayer First Act and realization of a reduced budget could result 

in resequencing IRS Modernization Portfolio capabilities necessitating adjustments to measures. 4 IRS will continue to identify ways to address cost savings.
IRS-20

RELIABILITY & 

SECURITY

Upgrading and maintaining 

IRS infrastructure in line 

with industry standards 

provides greater security, 

reliability, and business 

value.

Percent of aged

infrastructure

45.5% (as of FY 

2018) 30% by FY 2021 25%

OPERATIONAL AGILITY

With millions of lines of code 

written in legacy 

programming languages (ALC 

and COBOL),

the IRS must provide 

taxpayers with current data 

and keep pace with changes 

to tax laws, technology and 

business processes.

Reduction of selected legacy 

code (via multiple methods: 

Retire, Re-write, Replace and 

Refactor)

0% 30% by FY 2021 75%

SPEED & EFFICIENCY

Automation tools can 

drastically reduce hours of 

manual labor and provide 

near-instant results. We 

introduced robotic process 

automation in 2019.

Achieve efficiency gains on 

work processes where robotic 

process automation is applied

0% 10% by FY 2020 75%

CYBERSECURITY & DATA PROTECTION

Objective Measure FY 2019 Baseline* Interim Progress FY 2024 Target

HIGH SERVICE 

AVAILABILITY

The IRS is striving to 

ensure systems are 

available when

customers need them.

Service availability of critical 

systems at the appropriate 

level of redundancy 24% 40% 100%

 * FY 2019 baselines are as of the beginning of FY 2019, unless otherwise indicated.

Note: Integration of activities to implement the Taxpayer First Act and realization of a reduced budget could result 

in resequencing IRS Modernization Portfolio capabilities necessitating adjustments to measures.
IRS-21

CYBERSECURITY

Enhancing cybersecurity 

protects taxpayer data and

the nation’s financial 

information from 

persistent and evolving 

threats.

Percent of applications at the 

assessed level of risk or 

mitigated with compensating 

controls5

100% 100% 100%

Key successes for the modernization portfolio in FY 2019 included: 

• Deploying the ID Verify Tool to protect more taxpayers from identity theft by giving them an 

option to confirm their identity with the IRS online; 

• Deploying callback technology on the Toll-Free Balance Due phone line to give taxpayers a 

callback option as an alternative to waiting on the phone; 

• Taking critical steps to award a contract for an Enterprise Case Management system;

• Creating new models and filters within the Return Review Program to more effectively identify 

non-compliance in individual tax returns associated with withholding; 

• Delivering all three planned testing scenarios for the CADE2 Transition State 2 program: Simple 

Single Filing to Testing, Subsequent Payment with Filing for Extension, Internal Balancing & 

Control;

• Completing all nine Modernized IRS Operations milestones including deployment of a critical 

vendor compliance check for a procurement process and development and validation of stack 

components; and

• Completing both Cybersecurity & Data Protection milestones including a strategy to improve the 

number and quality of IRS audit trails through improved security audit analytics and compliance.

 5 The IRS will continue to maintain 100 percent while implementing process improvements as they arise or are

identified.
IRS-22

Implementing the Taxpayer First Act +$106,360,000 / +262 FTE

Position Type/Other Costs FTE Positions $000

Establish an Independent Office of Appeals 70 140 $7,679 

Analyst 70 140 7,679 

Comprehensive Service and Training Strategy 78 156 $12,837 

HR Specialist 76 152 11,607 

Program Analyst 2 4 221 

Contractual Services 1,009 

IT Requirements 94 188 $81,400 

IT Specialist 94 188 81,400 

Whistleblower Reforms 10 20 $1,173 

Analyst 6 12 707 

Manager 1 2 118 

Support Staff 3 6 348 

Modernization of IRS Organizational Structure $1,254 

Contractual Services 1,254 

Other Direct Costs 10 20 $2,017 

Attorney 10 20 2,017 

Total 262 524 $106,360 

The Taxpayer First Act will change how the IRS engages with taxpayers, increase digital interactions, and 

require changes in the structure and functioning of the IRS. The FY 2021 request includes funding for:

• Internet Platform for Form 1099 Filings ($30 million): The IRS will create a new website that 

allows taxpayers to prepare, file, and distribute Forms 1099, and create and maintain taxpayer 

records. This platform should improve taxpayer compliance and reduce administrative burden for 

individuals and businesses filing information returns. Taxpayers filed over three billion 1099s in 

calendar year 2019, and 1099s are a critical tool in IRS income verification and document 

matching. 

• Mandatory e-filing by Exempt Organizations ($14.4 million): The Taxpayer First Act mandates 

that all tax-exempt organizations electronically file statements or returns in the Form 990 series or 

Form 8872 (Political Organization Report of Contributions and Expenditures). This platform 

should improve exempt organization compliance and reduce administrative burden for 

organizations and the IRS. 

• Establish Independent Office of Appeals ($7.7 million): Section 1001 requires the IRS to establish 

an independent office of appeals and share non-privileged case files with taxpayers at least 10 days 

prior to conference. Exam and collection case files can be thousands of pages and require sensitive 

reviews. Approximately 70 FTE are neededto make privilege determinations and format case 

files. This estimate includes labor, scanning equipment, and printing. Appeals receives 
IRS-23

approximately 100,000 cases each year and currently has around 1,900 FTE, down 40 percent from 

FY 2010.

• Comprehensive service and training strategy ($12.8 million): Section 1001 requires the IRS submit 

a comprehensive service strategy to Congress by July 2020 to include online services, callback 

technology, training for customer service employees, co-location with other federal service 

providers, self-service options, 10 year and five-year service improvements, and metrics for 

implementation. New training to fulfill the strategy is anticipatedby July of 2021. These costs 

reflect the anticipated technology expenses necessary to fulfill the strategy.

• Uniform Standards for the Useof Electronic Signature for Disclosure Authorizations

($9.2 million): Section 2201 requires the IRS to implement uniform standards for accepting 

electronic signatures, specifically e-Signature for tax professionals to submit Power of Attorney

and other disclosure authorizations required to communicate with the IRS on behalf of clients. 

• Authentication of Users of Electronic Services Accounts ($3.0 million): Section 2304 requires the 

IRS to take additional steps to verify the identity of any individual opening an e-Services account. 

Authentication will need to be done in accordance with current guidance from the National 

Institute of Standards and Technology (NIST).

• Payment of Taxes by Debit and Credit Cards ($3.0 million): Section 2303 requires the IRS to 

charge a fee for those paying taxes by credit or debit card, which requires modifications to 

applications. 

• Whistleblower Reforms ($1.1 million): Section 1405 requires the IRS whistleblower office to 

disclose to whistleblowers that their provided information has been referred for an audit or 

examination, the information provided has resulted in a tax payment, the status and stage of any 

investigation or action related to information provided, and the amount of any whistleblower 

award, including reasons for such determination, within a 60 day mandated window. Historically, 

the IRS generally provides limited notifications of status at preliminary award determination. The 

whistleblower office currently consists of approximately 35 FTE despite an increase in claims and 

awards in recent years. The program made 217 awards in 2018 for $312 million based on tax 

collections of $1.4 billion.

• Technology Operations and Maintenance ($25.2 million): Operations and maintenance costs for 

planned Taxpayer First Act technology and application deployments in FY 2020 based on trends 

observed in recent comparable system builds (approximately 20 percent of development costs). 
IRS-24

Other Direct Costs

Dollars in thousands

IRS Activity Cost FTE Positions Explanation

Chief Counsel $2,017 10.0 20 

Provide support for increases in requests for legal advice, 

litigation assistance, and published guidance on issues raised 

in audits.

Total $2,017 10.0 20 
IRS-25

1.3 – Object Classification (Schedule O) Obligations

Dollars in thousands

Internal Revenue Service

Object Classification

FY 2019

Actuals

FY 2020

Enacted

FY 2021

Request

11.1 Full-Time Permanent Positions 5,682,279 6,057,059 6,202,252

11.3 Other than Full-Time Permanent Positions 86,595 91,508 92,158

11.5 Other Personnel Compensation 271,633 185,801 233,281

11.8 Special Personal Services Payments 29,145 20,494 20,807

11.9 Personnel Compensation (Total) 6,069,652 6,354,862 6,548,498

12.1 Personnel Benefits 2,128,057 2,353,298 2,461,677

13.0 Benefits to Former Personnel 29,240 34,678 35,210

Total Personnel and Compensation Benefits $8,226,949 $8,742,838 $9,045,385

21.0 Travel 91,377 123,226 126,489

22.0 Transportation of Things 19,697 23,204 23,702

23.1 Rental Payments to GSA 581,764 579,517 585,262

23.2 Rent Payments to Others 11,576 11,712 11,947

23.3 Communications, Utilities, & Misc 309,793 327,965 335,164

24.0 Printing & Reproduction 28,851 30,985 31,677

25.1 Advisory & Assistance Services 910,061 740,392 905,518

25.2 Other Services 73,546 101,665 105,817

25.3 Purchase of Goods & Services from Govt. Accounts 166,616 165,198 169,321

25.4 Operation & Maintenance of Facilities 187,915 186,806 190,941

25.5 Research & Development Contracts

25.6 Medical Care 14,301 14,516 14,865

25.7 Operation & Maintenance of Equipment 56,590 60,945 63,443

25.8 Subsistence & Support of Persons

26.0 Supplies and Materials 29,942 47,862 48,949

31.0 Equipment 340,695 248,142 273,514

32.0 Land and Structures 39,367 50,851 52,152

33.0 Investments & Loans

41.0 Grants, Subsidies 39,890 48,000 48,000

42.0 Insurance Claims & Indemnities 1,870 1,730 1,767

91.0 Unvouchered 1,986 4,500 4,590

Total Non-Personnel $2,905,837 $2,767,216 $2,993,118

New Appropriated Resources $11,132,786 $11,510,054 $12, 038,503

Appropriations:

Taxpayer Services 2,553,595 2,535,554 2,562,554

Enforcement 4,592,859 4,909,500 5,071,260

Operations Support 3,861,879 3,885,000 4,104,689

Business Systems Modernization 124,453 180,000 300,000

New Appropriated Resources $11,132,786 $11,510,054 $12,038,503

FTE 72,731 74,544 73,361

See footnotes in 1.1 -- Appropriations Detail Table.

Amounts include obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. Table excludes user fee obligations, 

which can be found in the Treasury chapter of the FY 2021 Budget Appendix.
IRS-26

1D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

TAXPAYER SERVICES

For necessary expenses of the Internal Revenue 

Service to provide taxpayer services, including 

pre-filing assistance and education, filing and 

account services, taxpayer advocacy services, and 

other services as authorized by 5 U.S.C. 3109, at 

such rates as may be determined by the 

Commissioner, [$2,511,554,000] $2,562,554,000

of which not less than $11,000,000 shall be for the 

Tax Counseling for the Elderly Program, of which 

not less than $12,000,000 shall be available for 

low-income taxpayer clinic grants, of which not 

less than $25,000,000, to remain available until 

September 30, [2021] 2022, shall be available for 

the Community Volunteer Income Tax Assistance 

Matching Grants Program for tax return 

preparation assistance, and of which not less than 

$209,000,000 shall be available for operating 

expenses of the Taxpayer Advocate Service: 

Provided, That of the amounts made available for 

the Taxpayer Advocate Service, not less than 

$5,500,000 shall be for identity theft and refund 

fraud casework. 

ENFORCEMENT

For necessary expenses for tax enforcement 

activities of the Internal Revenue

Service to determine and collect owed taxes, to 

provide legal and litigation support,

to conduct criminal investigations, to enforce 

criminal statutes related to violations

of internal revenue laws and other financial crimes, 

to purchase and hire passenger
IRS-27

motor vehicles (31 U.S.C. 1343(b)), and to provide 

other services as authorized by

5 U.S.C. 3109, at such rates as may be determined 

by the Commissioner,

[$5,010,000,000] $5,071,260,000, of which not to 

exceed $250,000,000 shall remain

available until September 30, [2021] 2022; of 

which not less than $60,257,000

shall be for the Interagency Crime and Drug 

Enforcement program; and of which

not to exceed $15,000,000 shall be for 

investigative technology for the Criminal

Investigation Division: Provided, That the amount 

made available for investigative

technology for the Criminal Investigation Division 

shall be in addition to amounts

made available for the Criminal Investigation 

Division under the "Operations

Support" heading: Provided further, That of the 

funds provided under this paragraph, 

$5,071,260,000 is provided to meet the terms of 

section 251(b)(2) of the

Balanced Budget and Emergency Deficit Control 

Act of 1985, as amended.

In addition, not less than $279,983,000 for tax 

activities under this heading, including tax 

compliance to address the Federal tax gap: 

Provided, That such amount

is additional new budget authority for tax 

activities, including tax compliance to

address the Federal tax gap, as specified for 

purposes of section 251(b)(2) of the

Balanced Budget and Emergency Deficit Control 

Act of 1985, as amended.

OPERATIONS SUPPORT

For necessary expenses of the Internal Revenue 

Service to support taxpayer services and 

Language required for the proposed program 

integrity cap adjustment. More information about 

the cap adjustment can be found in section 4.1 –

Appropriations Detail Table with Program 

Integrity Cap Adjustment of the Appendix and 

Budget Process Chapter of the FY 2021 budget.
IRS-28

enforcement programs, including rent payments; 

facilities services; printing; postage; physical 

security; headquarters and other IRS-wide 

administration activities; research and statistics of 

income; telecommunications; information 

technology development, enhancement, operations, 

maintenance, and security; the hire of passenger 

motor vehicles (31 U.S.C. 1343(b)); the operations 

of the Internal Revenue Service Oversight Board; 

and other services as authorized by 5 U.S.C. 3109, 

at such rates as may be determined by the 

Commissioner; [$3,808,500,000] $4,104,689,000, 

of which not to exceed $250,000,000 shall remain 

available until September 30, [2021] 2022; of 

which not to exceed $10,000,000 shall remain 

available until expended for acquisition of 

equipment and construction, repair and renovation 

of facilities; of which not to exceed $1,000,000 

shall remain available until September 30, [2022] 

2023, for research; [of which not less than 

$10,000,000, to remain available until expended, 

shall be available for establishment of an 

application through which entities registering and 

renewing registrations in the System for Award 

Management may request an authenticated 

electronic certification stating that the entity does 

or does not have a seriously delinquent tax debt;] 

and of which not to exceed $20,000 shall be for 

official reception and representation expenses: 

Provided, That not later than 30 days after the end 

of each quarter, the Internal Revenue Service shall 

submit a report to the Committees on 

Appropriations of the House of Representatives 

and the Senate and the Comptroller General of the 

United States detailing [the cost and schedule 

performance for its major information technology 

investments, including the purpose and life-cycle 

stages of the investments; the reasons for any cost 

and schedule variances; the risks of such 

investments and strategies the Internal Revenue 

Please see the exhibit in the Proposed Physical 

Security-Rent Adjusted Levels for a discussion of 

the “rent” and “physical security” language. 
IRS-29

Service is using to mitigate such risks; and the 

expected developmental milestones to be achieved 

and costs to be incurred in the next quarter] major 

information technology investments in the Internal 

Revenue Service Integrated Modernization 

Business Plan portfolio, including detailed, plain 

language summaries on the status of plans, costs, 

and results; prior results and actual expenditures of 

the prior quarter; upcoming deliverables and costs 

for the fiscal year; risks and mitigation strategies

associated with ongoing work; reasons for any cost 

or schedule variances; and total expenditures by 

fiscal year: Provided further, That the Internal 

Revenue Service shall include, in its budget 

justification for fiscal year [2021] 2022, a 

summary of cost and schedule performance 

information for its major information technology 

systems; Provided further, That of the funds 

provided under this paragraph, $4,104,689,000 is 

provided to meet the terms of section 251(b)(2) of 

the Balanced Budget and Emergency Deficit 

Control Act of 1985, as amended. 

In addition, not less than $120,017,000 for tax 

activities under this heading, including tax 

compliance to address the Federal tax gap: 

Provided, That such amount is additional new 

budget authority for tax activities, including tax

compliance to address the Federal tax gap, as 

specified for purposes of section 251(b)(2) of the 

Balanced Budget and Emergency Deficit Control 

Act of 1985, as amended.

BUSINESS SYSTEMS MODERNIZATION

For necessary expenses of the Internal Revenue 

Service's business systems modernization program, 

[$180,000,000] $300,000,000, to remain available 

until September 30, [2022] 2023, for the capital 

This change (and the corresponding change in 

Business Systems Modernization) makes reporting 

requirements across the two appropriations 

consistent and updates the report requirements to 

account for the Integrated Modernization Business 

Plan. 

Language required for the proposed program 

integrity cap adjustment. More information about 

the cap adjustment can be found in section 4.1 –

Appropriations Detail Table with Program 

Integrity Cap Adjustment of the Appendix and 

Budget Process Chapter of the FY 2021 budget.
IRS-30

asset acquisition of information technology 

systems, including management and related 

contractual costs of said acquisitions, including 

related Internal Revenue Service labor costs, and 

contractual costs associated with operations 

authorized by 5 U.S.C. 3109: Provided, That not 

later than 30 days after the end of each quarter, the 

Internal Revenue Service shall submit a report to 

the Committees on Appropriations of the House of 

Representatives and the Senate and the 

Comptroller General of the United States detailing 

[the cost and schedule performance for major 

information technology investments, including the 

purposes and life-cycle stages of the investments; 

the reasons for any cost and schedule variances; 

the risks of such investments and the strategies the 

Internal Revenue Service is using to mitigate such 

risks; and the expected developmental milestones 

to be achieved and costs to be incurred in the next 

quarter] major information technology investments 

in the Internal Revenue Service Integrated 

Modernization Business Plan portfolio, including 

detailed, plain language summaries on the status of 

plans, costs, and results; prior results and actual 

expenditures of the prior quarter; upcoming 

deliverables and costs for the fiscal year; risks and 

mitigation strategies associated with ongoing 

work; reasons for any cost or schedule variances; 

and total expenditures by fiscal year.

ADMINISTRATIVE PROVISIONS-INTERNAL 

REVENUE SERVICE (INCLUDING 

TRANSFER OF FUNDS)

SEC. 101. Not to exceed 4 percent of the 

appropriation made available in this Act to the 

Internal Revenue Service under the "Enforcement" 

heading, and not to exceed 5 percent of any other 

appropriation made available in this Act to the 

Internal Revenue Service, may be transferred to 
IRS-31

any other Internal Revenue Service appropriation 

upon the advance approval of the Committees on 

Appropriations of the House of Representatives 

and the Senate. 

SEC. 102. The Internal Revenue Service shall 

maintain an employee training program, which 

shall include the following topics: taxpayers' 

rights, dealing courteously with taxpayers, crosscultural relations, ethics, and the impartial 

application of tax law. 

SEC. 103. The Internal Revenue Service shall 

institute and enforce policies and procedures that 

will safeguard the confidentiality of taxpayer 

information and protect taxpayers against identity 

theft. 

SEC. 104. Funds made available by this or any 

other Act to the Internal Revenue Service shall be 

available for improved facilities and increased 

staffing to provide sufficient and effective 1–800 

help line service for taxpayers. The Commissioner 

shall continue to make improvements to the 

Internal Revenue Service 1–800 help line service a 

priority and allocate resources necessary to 

enhance the response time to taxpayer 

communications, particularly with regard to 

victims of tax-related crimes. 

SEC. 105. The Internal Revenue Service shall 

issue a notice of confirmation of any address 

change relating to an employer making 

employment tax payments, and such notice shall 

be sent to both the employer's former and new 

address and an officer or employee of the Internal 

Revenue Service shall give special consideration to 

an offer-in-compromise from a taxpayer who has 

been the victim of fraud by a third party payroll tax 

preparer.
IRS-32

SEC. 106. None of the funds made available under 

this Act may be used by the Internal Revenue 

Service to target citizens of the United States for 

exercising any right guaranteed under the First 

Amendment to the Constitution of the United 

States.

SEC. 107. None of the funds made available in this 

Act may be used by the Internal Revenue Service 

to target groups for regulatory scrutiny based on 

their ideological beliefs. 

SEC. 108. None of funds made available by this 

Act to the Internal Revenue Service shall be 

obligated or expended on conferences that do not 

adhere to the procedures, verification processes, 

documentation requirements, and policies issued 

by the Chief Financial Officer, Human Capital 

Office, and Agency-Wide Shared Services as a 

result of the recommendations in the report 

published on May 31, 2013, by the Treasury 

Inspector General for Tax Administration entitled 

"Review of the August 2010 Small Business/SelfEmployed Division's Conference in Anaheim, 

California" (Reference Number 2013–10–037). 

SEC. 109. None of the funds made available in this 

Act to the Internal Revenue Service may be 

obligated or expended– (1) to make a payment to 

any employee under a bonus, award, or recognition 

program; or (2) under any hiring or personnel 

selection process with respect to re-hiring a former 

employee; unless such program or process takes 

into account the conduct and Federal tax 

compliance of such employee or former employee. 

SEC. 110. None of the funds made available by 

this Act may be used in contravention of section 

6103 of the Internal Revenue Code of 1986 
IRS-33

(relating to confidentiality and disclosure of 

returns and return information). 

SEC. 111. Unobligated balances of expired 

discretionary funds appropriated from the General 

Fund of the Treasury to the Internal Revenue 

Service by this Act may be transferred (not later 

than the end of the fifth fiscal year after the last 

fiscal year for which such funds are available for 

the purposes for which appropriated) into 

Operations Support heading; Provided that any 

funds so transferred shall remain available for 

obligation for five fiscal years after the fiscal year 

of such transfer, and in addition to such other 

funds as may be available for such purposes, for 

facilities and information technology expenses; 

Provided further, That transfer authority under this 

heading shall be in addition to any other transfer 

authority provided in this Act: Provided further, 

That amounts may be obligated only after the 

Committees on Appropriations of the House of 

Representatives and the Senate are notified at least 

15 days in advance of the planned use of funds. 

SEC. 112. Notwithstanding any Congressional 

notification requirements for a reprogramming of 

funds in this Act, funds provided in this Act for the 

Internal Revenue Service shall be available for 

obligation and expenditure through a 

reprogramming of funds that augments or reduces 

existing programs, projects, or activities by up to 

$10,000,000 without prior Congressional 

notification of such action.

(Department of the Treasury Appropriations Act, 

2020.)

This change would allow the IRS to utilize 

unobligated, expired funds provided in this Act for 

high priority facility and technology investments. 

This is in addition to the Department’s request for 

additional flexibility with the Treasury Capital 

Investments and Modernization Fund.

Providing authority to reprogram up to $10 million 

within appropriations accounts without formal 

notification procedures. This increase will allow 

the IRS to allocate funds to highest priority needs 

at end of fiscal year, including infrastructure, and 

respond to workload and program demand 

changes. 

 
IRS-34

Proposed Physical Security-Rent Adjusted Levels

FY 21 Request 

(excludes PIC)

Proposed 

Security 

Adjustment*

Proposed Rent 

Adjustment*

Subtotal 

Adjustments

Adjusted 

Levels

Taxpayer Service 2,562,554,000 57,027,414 177,463,822 234,491,237 2,797,045,237 

Pre-filing Taxpayer Assistance & 

Education 667,017,847 9,640,782 33,972,331 43,613,113 710,630,960 

Filing & Account Services 1,895,536,153 47,386,632 143,491,491 190,878,124 2,086,414,277 

Enforcement 5,071,259,990 77,788,076 314,618,563 392,406,639 5,463,666,629 

Investigations 675,533,397 6,513,802 47,031,409 53,545,211 729,078,608 

Exam & Collections 4,225,885,766 69,173,334 256,306,904 325,480,238 4,551,366,004 

Regulatory 169,840,827 2,100,940 11,280,250 13,381,190 183,222,017 

Operations Support 4,104,689,010 (134,815,491) (492,082,385) (626,897,876) 3,477,791,134 

Infrastructure 895,071,621 (162,925,000) (596,918,131) (759,843,131) 135,228,490 

Shared Services & support 1,063,983,643 11,155,413 53,215,527 64,370,940 1,128,354,583 

Information Services 2,145,633,746 16,954,096 51,620,219 68,574,315 2,214,208,061 

Business Systems Modernization 300,000,000 300,000,000 

IT Investments 300,000,000 300,000,000 

Grand Total $12,038,503,000 $0 $0 $0 $12,038,503,000 

*Although they are meant to be representative, if implemented, the IRS would need to perform a more detailed analysis to set these 

levels in the plan. FY 2021 is presented as a 2% inflation of FY 2019 levels, compounded twice.

Dollars for rent and physical security have not been realigned in the 2021 budget submission to give 

Congress an opportunity to evaluate the changes, but the table above shows how these costs would be 

shifted between the appropriations accounts. Executing this change would require moving the references to 

rent and physical security in the Operations Support. This would allow the IRS to execute these costs out 

of the two other accounts, while retaining authority and funding for a portion of these expenses in 

Operations Support for headquarters, technology, procurement, and other personnel. This change would 

increase transparency in the cost of operations and, along with the proposed increase in reprogramming 

authority to $10 million and the new authority for using expired balances, would also improve the IRS’s 

ability to execute these resources efficiently. 

In addition, the Department is proposing to create a Treasury-wide IT modernization fund, the Treasury 

Capital Investments and Modernization Fund, that would include new transfer authority to leverage 

existing funding and introduce further flexibility that would help Treasury to continuously modernize 

information technology infrastructure across the Department. 

Sec. 126 Not to exceed 5 percent of any appropriation made available for the current fiscal year for the 

Department of the Treasury by this Act and unobligated balances of expired discretionary funds 

appropriated from the General Fund to the Department of the Treasury by this Act may be transferred (not 

later than the end of the fifth fiscal year after the last fiscal year for which such funds are available for the 

purposes for which appropriated) to the Treasury Capital Investments and Modernization Fund: Provided,

That any funds so transferred shall remain available for obligation for five fiscal years after the fiscal year 

of such transfers for modernization of Treasury systems to increase cybersecurity and improve efficiency: 
IRS-35

Provided further, That funds so transferred shall not be available for obligation until the Secretary submits 

to the Committees on Appropriations of the House of Representatives and the Senate a spending plan for 

such funds.

1E – Legislative Proposals

Provide the IRS with greater flexibility to address correctable errors: The budget would expand the 

IRS authority to correct errors on taxpayer returns. Current statute only allows the IRS to correct errors on 

returns in certain limited instances, such asbasic math errors or the failure to include the appropriate social 

security number or taxpayer identification number. 

This proposal would expand the instances in which the IRS could correct a taxpayer’s return including 

cases where: (1) the information provided by the taxpayer does not match the information contained in 

Government databases or Form W-2, or from other third party databases as the Secretary determines by 

regulation; (2) the taxpayer exceeded the lifetime limit for claiming a deduction or credit; or (3) the 

taxpayer failed to include with his or her return certain documentation that is required to be included on or 

attached to the return. This proposal would make it easier for IRS to correct clear taxpayer errors, directly 

improving tax compliance and reducing EITC and other improper payments and freeing IRS resources for 

other enforcement activities. 

Increase Oversight of Paid Tax Return Preparers: Paid tax return preparers have an important role in 

tax administration because they assist taxpayers in complying with their obligations under the tax laws. 

Incompetent and dishonest tax return preparers increase collection costs, reduce revenues, disadvantage 

taxpayers by potentially subjecting them to penalties and interest because of incorrect returns, and 

undermine confidence in the tax system. To promote high quality services from paid tax return preparers, 

the proposal would explicitly provide that the Secretary of the Treasury has the authority to regulate all 

paid tax return preparers.

Improve clarity in worker classification and information reporting requirements: The budget 

proposes to: (1) establish a new safe harbor that allows a service recipient to classify a service provider as 

an independent contractor and requires withholding of individual income taxes to this independent 

contractor at a rate of five percent on the first $20,000 of payments; and (2) raises the reporting threshold 

for payments to all independent contractors from $600 to $1,000, and reduces the reporting threshold for 

third-party settlement organizations from $20,000 and 200 transactions per payee to $1,000 without regard 

to the number of transactions. In addition, Form 1099-K would be required to be filed with the IRS by 

January 31 of the year following the year for which the information is being reported. The proposal 

increases clarity in the tax code, reduces costly litigation, and improves tax compliance.
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Fund the Federal Payment Levy Program via Collections: This proposal would allow the Fiscal Service 

to retain a portion of the funds collected under the Bureau’s Federal Payment Levy Program (FPLP) which 

processes and collects delinquent tax debts through the Treasury Offset Program (TOP). TOP currently 

recoups its costs from retained amounts from collected amounts for all its programs except for the FPLP 

but under current law, the IRS must pay these costs through annual reimbursement agreements under the 

Economy Act. This proposal would make the FPLP consistent with other TOP programs. Delinquent

taxpayers will not be impacted by the proposal, because they will receive credit for the full amount 

collected. This proposal creates efficiencies, because it allows the Fiscal Service to recover its FPLP costs 

from the IRS in the same manner as other TOP programs.

Require a social security number (SSN) that is valid for work to claim child tax credit (CTC), earned 

income tax credit (EITC), and credit for other dependents (ODTC): The Administration proposes 

requiring an SSN that is valid for work to claim the EITC, CTC (both the refundable and non-refundable 

portion), and/or the ODTC for the taxable year. For all credits, this requirement would apply to taxpayers 

(including both the primary and secondary filer on a joint return) and all qualifying children or dependents. 

Under current law, taxpayers who do not have an SSN that is valid for work may claim the CTC if the 

qualifying child for whom the credit is claimed has a valid SSN. Furthermore, the ODTC, created by the 

Tax Cuts and Jobs Act, allows taxpayers whose dependents do not meet the requirements of the CTC, 

including the SSN requirement, to claim this non-refundable credit. This proposal would ensure that only 

individuals who are authorized to work in the United States could claim these credits by extending the SSN 

requirement for qualifying children to parents on the tax form for the CTC and instituting an SSN 

requirement for the ODTC. While this SSN requirement is already current law for the EITC, this proposal 

also would close an administrative gap to strengthen enforcement of the provision.
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Program Integrity Cap Adjustment

In addition to the base appropriations request of $12 billion request, the budget proposes a $400 million 

discretionary program integrity cap adjustment in FY 2021 to fund investments in expanding and 

improving the effectiveness and efficiency of the IRS’s overall tax enforcement program. The budget 

proposes $280 million for the Enforcement account and $120 million for the Operations Support account. 

Additional adjustments are provided in future years to fund new initiatives and inflation. These investments 

will generate $79 billion in new revenue over 10 years and will cost $15 billion, for net revenue of $64 

billion over 10 years. This return on investment (ROI) is likely understated because it does not reflect the 

effect that enhanced enforcement has ondeterring non-compliance.
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1F – IRS Use of Evidence and Evaluation

The IRS continues to improve program performance by using data and analytics to develop evidence that 

informs innovation and improves program delivery. 

Significant Accomplishments in FY 2019

Compliance Data Warehouse Knowledge Graph Environment (CKGE): CKGE provides over 

2,300 users across the IRS with a powerful tool for exploring and understanding relationships between 

entities in the tax ecosystem including taxpayers, businesses, return preparers, and even personal devices. 

The IRS Research, Analysis, and Statistics division (RAAS) is working to design and develop a corporate 

graph database to assist with comparing changes in corporate structures pre and post-Tax Cuts and Job Act.

Centralized Authorization File (CAF)/Power of Attorney (POA) Analysis: The CAF is a computer 

database containing information on the authority of taxpayer representatives. RAAS has delivered 

15 recommendations to Accounts Management (AM)/CAF to improve processing of Power of Attorney 

requests and mailed 1,500 letters to better understand schemes used by fraudsters.

Conservation Easements: RAAS continues to partner with IRS business units on efforts to address tax 

avoidance schemes through conservation easements. These schemes are estimated to involve billions of 

dollars in lost revenue. RAAS has provided data to the Department of Justice (DOJ) for a pending court 

case involving 96 conservation easement syndicates resulting in over $2 billion of tax deductions from 

overvalued and improperly qualified conservation contributions.

Criminal Investigation Employment Study: RAAS continues to partner with the IRS Criminal 

Investigation (CI) division to develop data-driven approaches to case selection and development. As a 

result of this partnership, CI and RAAS:

• Referred 42 criminal employment tax cases, with an average potential tax loss of $3.3 million per 

case.

• Initiated a project to identify US Citizens living abroad who are not paying income tax on their 

earnings.

• Initiated a project to leverage text analytics for improving the process of reviewing Suspicious 

Activity Reports.

• Coordinated with the Tax-Exempt/Government Entities (TE/GE) business unit to identify potential 

criminal cases.

Exam Planning Scenario Tool: The Exam Planning Scenario Tool (EPST) employs a data-driven 

approach to generate and evaluate optimal, executable tax return examination plans and improve business 

outcomes through incorporation of predictive analytical models. IRS business units used EPST to prepare a 

revised FY 2019 exam plan to assess the effect of the lapse in appropriations on examination starts and 

closures. EPST allowed planners to complete the process in just days, a substantial time saving from a 
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manual process that historically took weeks. The tool also allowed leadership to consider multiple 

strategies for optimizing exam plans, where previously the manual process only allowed one strategy.

Identity Theft: During FY 2017, the IRS prevented about 95 percent of known tax refund identity theft 

from being paid out to fraudsters. Known unprotected identity theft is about $300-$600 million annually.

RAAS developed models and filters selected 228,000 returns for potential identity theft, protecting 

$716 million in refunds from being issued until the legitimate filer could authenticate through the Taxpayer 

Protection Program (TPP) that the return was legitimately filed. This effort supports the Treasury Fraud 

Prevention Agency Priority Goal to reduce the amount of unprotected identity theft tax refunds paid by

2 percent by December 31, 2019 (based on data reporting lag), and by an additional 1 percent annually 

through December 31, 2021 under the new FY 2020-2021 goal. The IRS exceeded the FY 2018-2019 goal 

by reducing the amount of unprotected identity theft tax refund paid by an estimated 88 percent between 

processing year 2016 and 2018. The IRS successfully protected between $6.03 billion and $6.08 billion in 

identity theft refunds in 2018. 

Implementing 2019 Legislation and Executive Order: Passage of the Foundations for Evidence-Based 

Policymaking (Evidence Act) and the Executive Order on Improving Free Inquiry, Transparency, and 

Accountability at Colleges and Universities (Executive Order), as well as the recently enacted Taxpayer 

First Act of 2019 increase RAAS’s responsibilities for planning and leading research and statistical 

activities. The Statistics of Income (SOI) Division has been working with the OMB Interagency Council 

on Statistical Policy to implement Title III of the Evidence Act, which focuses on policies and practices to 

improve Federal statistics. 

Large Business & International (LB&I) Line Anomaly Recommender (LAR): LAR is a new and 

innovative approach based on unsupervised learning to find potentially anomalous cases, and specific line 

items for those cases, from LB&I’s filing population. Analysis of the distribution of LB&I filters for LAR 

cases showed that the top 5percent LAR-ranked cases are not often identified by filters, confirming the 

potential opportunity for identifying previously undetected anomalous cases.

Nonfiler: RAAS worked with Collection to construct a training set that replicated Inventory Delivery 

System (IDS) data and improved an expanded suite of predictive models meant to allow downstream 

systems greater flexibility in prioritization and routing. Back-test results indicate that prioritizing inventory 

based on these models can lead to a 30percent increase in enforcement revenue over legacy models. 

Passport Study: The Fixing America’s Surface Transportation (FAST) Act authorizes the IRS to certify 

individual taxpayers with “seriously delinquent tax debt” to the Department of State to use as a factor for 

issuing new or renewed passports. A randomized controlled trial allowed the IRS to show that the Passport 

program has produced an estimated total of $623 million in additional dollars collected and increased the 

number of taxpayers making a payment within 90 days by 13,000. 

RAAS Tax Cuts and Jobs Act of 2018 Response: Passage of the Tax Cuts and Jobs Act significantly 

increased RAAS’s work. RAAS has provided IRS leadership with an improved and updated tax reform 
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statistics placemat and, on the TaxStats pages of IRS.gov, posted detailed SOI filing season statistics that 

reflect the effects of tax reform. 

Collection Notice Redesign and Inventory Case Selection: RAAS has an initiative to redesign certain 

notices sent to taxpayers who owe outstanding tax debts using behavioral insights. RAAS and the 

Collection office developed a model to help Collection identify notice recipients who were more likely to 

fully pay. The model realized a rate of full payment 7.92 percent higher than the control group, while also 

increasing overall collections and decreasing phone calls from notice recipients by 2percent (using 

previously tested re-designed notices).

SB/SE Issue Recommender: The IRS pulls revenue agents from regular audit work to review returns 

flagged for audit, determine what employees to assign to each return, and indicate which lines should be 

worked during an audit. This initiative focuses on using artificial intelligence to automate the classification 

process. SB/SE has approved the use of RAAS’s model, saving weeks of work and classification time. 

The algorithm also can identify training returns. 

Statistics of Income (SOI) Highlights: 

• SOI released more than 500 tables, public-use datasets, and PDF documents on the TaxStats pages 

of IRS.gov. This information is designed to help the public learn more about the tax system.

• For the first time, SOI released data by congressional district. SOI also works with other Federal 

agencies and outside researchers on efforts that benefit the public and improve its understanding of 

tax administration. 

• SOI’s Joint Statistical Research Program uses tax data to evaluate a broad range of research 

questions that can assist in improving tax administration. In 2019, 29 proposals were selected for 

inclusion in the program. 

TE/GE Compliance Initiatives: RAAS is partnering with TE/GE to provide analytic support to enhance 

noncompliance identification and case selection for high priority areas within Exempt Organizations,

Employee Plans, and Government Entities/Indian Tribal Governments workstreams. By partnering with 

RAAS, TE/GE conducts “test and learn” compliance strategies targeted at these high priority areas. 
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Section II – Budget and Performance Plan

Treasury Strategic Objectives and Agency Priority Goals

The budget supports the following Department of the Treasury Strategic Objectives for FY 2018 – FY 2022 

and Agency Priority Goals for FY 2020- FY 2021 for all appropriations: 

• Strategic Goal 1: Boost U.S. Economic Growth, Strategic Objective 1.1: Tax Law 

Implementation: Administer tax law to better enable all taxpayers to meet their obligations, while 

protecting the integrity of the tax system. 

• Strategic Goal 4: Transform Government-wide Financial Stewardship, Strategic Objective 4.1: 

Financial Data Access and Use: Increase the access and use of federal financial data to strengthen 

government-wide decision-making, transparency, and accountability. 

• Strategic Goal 5: Achieve Operational Excellence, Strategic Objectives 5.1 – 5.3: 

o 5.1 Workforce Management: Foster a culture of innovation to hire, engage, develop, and 

optimize a diverse workforce with the competencies necessary to accomplish the mission. 

o 5.2 Treasury Infrastructure: Better enable mission delivery by improving the reliability, 

security, and resiliency of Treasury’s infrastructure. 

o 5.3 Customer Value and Experience: Enhance the experience of interacting with Treasury by 

providing high quality products and services and by delivering excellent customer service. 

• Agency Priority Goal(s): IRS leads the Fraud Prevention Agency Priority Goal and supports the 

Bureau of Fiscal Service’s Reduce Paper Checks Agency Priority Goal for FY 2020 – FY 2021.

o Fraud Prevention (aligned to strategic objective 1.1): Reduce the amount of unprotected 

identity theft tax refunds paid by two percent by December 31, 2019, and by an additional 

one percent annually through December 31, 2021.

o Bureau of Fiscal Service Reduce Paper Checks (aligned to strategic objective 5.3): Create a 

modern, seamless, and cost-effective payment experience for Americans that results in a 

reduction in the number of paper checks issued by Treasury to 49 million and achievement of 

an electronic payment rate of 96.1 percent by the end of FY 2021.

• Cross-Agency Priority Goal on Customer Experience: In FY 2019, OMB designated IRS as one 

of several government-wide High Impact Service Providers. The IRS reports to Treasury and 

OMB on a quarterly and annual basis on its “highest-impact” customer transaction survey data, and 

on efforts to improve the customer experience.



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Taxpayer Services

Appropriation Description

The Taxpayer Services appropriation provides funding for taxpayer service activities and programs. This 

includes printing forms and publications, processing tax returns and related documents, offering filing and 

account services, taxpayer assistance, and providing taxpayer advocacy services. 

The Taxpayer Services budget request for FY 2021 is $2,562,554,000 in direct appropriations and 

25,678 FTE, excluding the proposed program integrity cap adjustment. This amount is an increase of 

$27,000,000, or 1.06 percent, and a decrease of 1,082 FTE from the FY 2020 enacted level (after transfer) 

of $2,535,554,000 and 26,760 FTE. 
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2.1 – Budget Adjustments Table

Dollars in thousands

Taxpayer Services

Summary of Proposed FY 2021 Request FTE Amount 

FY 2020 Enacted (Pre-IAT) 26,390 $2,511,554 

Planned Interappropriation Transfer 370 24,000 

FY 2020 Enacted 26,760 $2,535,554 

Changes to Base:

Maintaining Current Levels (MCLs) $107,929 

Pay Annualization (3.1% average pay raise) 18,078 

Pay Raise (1% average pay raise) 17,631 

FERS Contribution Increase 26,523 

Non-Pay 4,058 

Additional Required Labor Costs 41,639 

Efficiencies/Savings: (1,082) ($80,929)

Increase e-File Savings (85) (4,607)

Personnel Savings (997) (76,322)

Subtotal FY 2021 Changes to Base (1,082) $27,000 

FY 2021 Current Services 25,678 $2,562,554 

Total FY 2021 Budget Request 25,678 $2,562,554 

See footnotes in 1.1 -- Appropriations Detail Table
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2.2 – Object Classification (Schedule O) Obligations

Dollars in thousands

Taxpayer Services

Object Classification

FY 2019

Actuals

FY 2020

Enacted

FY 2021

Request

11.1 Full-Time Permanent Positions 1,556,489 1,549,224 1,546,081

11.3 Other than Full-Time Permanent Positions 52,468 52,143 51,901

11.5 Other Personnel Compensation 129,622 55,107 67,766

11.8 Special Personal Services Payments 7

11.9 Personnel Compensation (Total) 1,738,586 1,656,474 1,665,748

12.1 Personnel Benefits 612,696 642,458 655,652

13.0 Benefits to Former Personnel 28,605 33,725 34,241

Total Personnel and Compensation Benefits $2,379,887 $2,332,657 $2,355,641

21.0 Travel 11,679 13,832 14,186

22.0 Transportation of Things 672 722 740

23.3 Communications, Utilities, & Misc 1,517 1,350 1,386

24.0 Printing & Reproduction 9,158 9,630 9,865

25.1 Advisory & Assistance Services 34,759 41,196 42,275

25.2 Other Services 12,418 22,563 23,154

25.3 Purchase of Goods & Services from Govt. 

Accounts 59,000 58,409 59,939

25.7 Operation & Maintenance of Equipment 61 249 256

26.0 Supplies and Materials 3,924 6,227 6,374

31.0 Equipment 230 270 277

41.0 Grants, Subsidies 39,890 48,000 48,000

42.0 Insurance Claims & Indemnities 400 449 461

Total Non-Personnel $173,708 $202,897 $206,913

New Appropriated Resources $2,553,595 $2,535,554 $2,562,554

Budget Activities:

Pre-filing Taxpayer Assistance & Education 614,204 656,829 667,018

Filing & Account Services 1,939,391 1,878,725 1,895,536

New Appropriated Resources $2,553,595 $2,535,554 $2,562,554

FTE 28,531 26,760 25,678

See footnotes in 1.1 -- Appropriations Detail Table

FY 2019 amounts include obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
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2.3 – Appropriation Detail Table

Dollars in thousands

Taxpayer Services Change % Change

Appropriated Resources

FY 2019

Operating Plan

FY 2020

Enacted

FY 2021

Request

FY 2020 to FY 2021 

Request

FY 2020 to FY 2021 

Request

New Appropriated Resources: FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Pre-Filing Taxpayer

 Assistance and Education 4,335 621,907 4,524 656,829 4,341 667,018 (183) 10,189 -4.05% 1.55%

Filing and Account Services 24,196 1,934,647 22,236 1,878,725 21,337 1,895,536 (898) 16,811 -4.04% 0.89%

Subtotal New Appropriated 

Resources 28,531 $2,556,554 26,760 $2,535,554 25,678 $2,562,554 (1,081) $27,000 -4.04% 1.06%

Other Resources:

Reimbursables 507 37,964 862 65,650 905 68,932 43 3,282 4.99% 5.0%

Offsetting Collections - Non

 Reimbursables

User Fees 96 5,870 60 3,900 1,510 99,900 1,450 96,000 2416.67% 2461.54%

Recovery from Prior Years 47 (47) -100.0%

Unobligated Balances from

 Prior Years 234 18,606 1,000 (1,000) -100.0%

Transfers In/Out

Resources from Other 

Accounts

Subtotal Other Resources 837 $62,440 922 $70,597 2,415 $168,832 1,493 $98,235 161.93% 139.15%

Total Budgetary Resources 29,368 $2,618,994 27,682 $2,606,151 28,093 $2,731,386 412 $125,235 1.49% 4.81%

See footnotes in 1.1--Appropriations Detail 

Table

2A – Pre-Filing Taxpayer Assistance and Education ($667,018,000 in direct appropriations, 

and an estimated $213,000 from reimbursable programs). This budget activity funds direct labor and some 

non-labor expenses to assist with tax return preparation, including tax law interpretation, publication, 

production, and advocate services. The program activities include: 

• Pre-Filing Services Management supports headquarters staffing and support for Taxpayer 

Advocate Service and Customer Assistance Relationship and Education (CARE) program 

activities. CARE provides pre-filing taxpayer assistance and education. 

• Taxpayer Communication and Education researches customer needs; develops and manages 

educational programs; establishes partnerships with stakeholder groups; and disseminates tax 

information to taxpayers and the public through a variety of media, including publications and 

mailings, websites, broadcasting, and advertising. 

• Media and Publications develops and produces notices, forms, and publications for printed and 

electronic tax materials, and provides media production services to taxpayers.

• Taxpayer Advocacy provides advocate services to taxpayers by identifying the underlying causes 

of taxpayer problems and participating in the development of systematic and/or procedural 

remedies.
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• Account Management and Assistance – Field Assistance provides face-to-face assistance, 

education, and compliance services to taxpayers. It includes return preparation, answering tax 

questions, resolving account and notice inquiries, and supplying forms and publications to 

taxpayers. 

• Taxpayer Advocate Case Processing provides advocate services to taxpayers to resolve taxpayer 

problems through prompt identification, referral, and settlement.

• Wage and Investment (W&I) HQ Management and Administration provides staffing, training, and 

direct support for W&I management activities of strategic planning, communications and liaison, 

finance, human resources, equity, diversity and inclusion, business modernization, and embedded 

training. 

• Taxpayer Services Research provides resources to support taxpayer services by conducting 

taxpayer behavioral studies, data analysis, and uses advanced analytics to deliver results and 

conclusions to inform business decisions to improve IRS products and services. 

• National Distribution Center processes orders for IRS forms and publications received from 

individual taxpayers, tax practitioners, and IRS tax return preparation partners. 

Description of FY 2019 Performance 

In FY 2019, the Timeliness of Critical Individual Filing Season (CIFS) Tax Products to the Public (i.e. tax 

forms, schedules, instructions, and publications) was 92.6 percent (88 out of 95 products delivered timely), 

exceeding the FY 2019 target of 85 percent by 8.9 percent. These results were achieved due to preparation 

for tax reform changes that started in October 2017. Several working groups were established which 

allowed for the timely identification and approval of changes needed. Prioritization of critical products 

ensured that key forms, instructions, and publications necessary for the completion of income tax returns 

were available to the public by the January 28 start of filing season. The IRS expects to achieve a target of 

89 percent for both FY 2020 and FY 2021.

In FY 2019, the IRS Timeliness of Critical Tax TE/GE and Business Filing Season Tax products to the 

Public was 96.1 percent, exceeding the target of 85 percent. The IRS achieved these results through 

workload planning and prioritization of critical products, which ensured that 73 of the 76 total key forms, 

instructions, and publications necessary for the completion of income tax returns were available to the 

public by the January 28 start of filing season. The IRS will continue to collaborate with stakeholders for 

timely identification of affected tax products, prioritize critical products over eminent products, and create 

and execute effective workload planning and monitoring, including the judicious use of overtime as 

needed. The IRS expects to achieve a target of 89 percent for both FY 2020 and FY 2021.
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The FY 2019 Enterprise Self-Assistance Participation Rate (ESAPR) was 85.4 percent. This is due, in part, 

to increases in Get Transcripts Online by 30 percent, “Where's My Refund?” by more than 19 percent, and 

Transcript Delivery Service by almost 31 percent. Compared to FY 2018, total services increased by 

12.4 percent, self-assisted services increased 17.1 percent and assisted services fell 8.5 percent due, in part, 

to the lapse in appropriations as assistors were not available. As the IRS provides new self-assistance 

applications to the public, the IRS will add them to the calculation. The IRS continues to improve taxpayer 

services by developing and improving self-assistance tools and traditional services. In response to taxpayer 

preferences, the IRS also continued expanding secure digital communication options. The IRS measures 

progress toward improvement to taxpayer service by its ESAPR metric. The ESAPR FY 2020 and 

FY 2021 target is set at 82 percent, recognizing the decrease in FY 2019 to assisted services was due to the 

lapse in appropriations and should not repeat in FY 2020.

82.0%

85.4%
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FY 2021 Changes by Budget Activity

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FTE Amount

FY 2020 Enacted (Pre-IAT) 4,524 $656,829

Planned Interappropriation Transfer

FY 2020 Enacted 4,524 $656,829

Changes to Base:

Maintaining Current Levels (MCLs) $27,807 

Pay Annualization (3.1% average pay raise) 4,407 

Pay Raise (1.0% average pay raise) 4,298 

FERS Contribution Increase 5,982 

Non-Pay 1,053 

Additional Required Labor Costs 12,067 

Efficiencies/Savings (183) ($17,618)

Personnel Savings (183) (17,618)

Subtotal FY 2021 Changes to Base (183) $10,189 

FY 2021 Current Services 4,341 $667,018

Program Increases:

Subtotal FY 2021 Program Increases

Total FY 2021 Request (Before Cap) 4,341 $667,018

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted (183) $10,189 

Percent Change FY 2021 Request over FY 2020 Enacted -4.05% 1.55%
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2.1.1 – Budget and Performance Report and Plan

Dollars in thousands

Pre-Filing Taxpayer Assistance & Education FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $609,196 $609,445 $594,962 $640,379 $621,907 $656,829 $667,018 

Reimbursable Resources2 51 13 4 260 118 203 213 

User Fees2 4,141 

Budget Activity Total $613,388 $609,458 $594,966 $640,639 $622,025 $657,032 $667,231 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

Pre-Filing Taxpayer Assistance & Education FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measure Actual Actual Actual Actual Actual Target Target Target

Timeliness of Critical Filing Season Tax Products to the Public 

(Ot)1 89.0% 92.5% 93.1% 59.6% 92.6% 85.0% 89.0% 89.0%

Timeliness of Critical TE/GE & Business Tax Products to the 

Public (Ot)1 92.6% 98.0% 96.7% 100.0% 96.1% 85.0% 89.0% 89.0%

Enterprise Self Assistance Participation Rate (E) (L)2 88.7% 89.0% 79.0% 82.0% 85.4% 82.0% 82.0% 82.0%

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Strategic Goal Measure

1

Modified for FY 2019

2 Starting in FY 2017, the IRS modified the Taxpayer Self Assistance Rate measure (renamed to Enterprise Self Assistance Participation Rate) to include additional 

self-service channels including Get Transcript and payment applications such as Direct Pay and Online Payment Agreements. As new self-assistance 

applications are provided to the public, they will be added to the methodology.

2B – Filing and Account Services ($1,895,536,000 in direct appropriations, $68,719,000 from 

reimbursable programs, and $99,900,000 from user fees): This budget activity funds direct labor and 

non-labor expenses that provide filing and account services to taxpayers, process paper and 

electronically-submitted tax returns, issue refunds, and maintain taxpayer accounts. The public continues 

to file more returns electronically (more than 90 percent of individual returns were filed electronically 

during the 2018 filing season). The program activities include:

• Filing and Account Services Management administers filing and account services programs.

• Submission Processing processes paper and electronically-submitted tax returns and supplemental 

documents, accounts for tax revenue, processes information documents, and issues refunds and tax 

notices.

• Account Management and Assistance– Electronic/Correspondence Assistanceprovides education 

and assistance to taxpayers and resolves accounts and notice inquiries through telephone, paper, 

and internet correspondence.
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• Electronic Products and Services Support (EPSS) provides centralized operations and support 

capabilities for the IRS suite of electronic products, including e-help desk, technology support, and 

operations support.

• Electronic Tax Administration (ETA) markets and administers electronic tax administration 

products and services.

• Health Care Tax Administration provides funds to administer the health insurance tax credit 

portion of the Trade Adjustment Assistance Reform Act of 2002. 

• Joint Operations Center (JOC)provides service, support, and technology for telephone, 

correspondence, and electronic media inquiries; real time monitoring and routing of inbound calls; 

monitoring of Customer Service Representative (CSR) accuracy; and management of the enterprise 

telephone database.

Description of FY 2019 Performance 

Millions of business taxpayers file their returns electronically. The IRS achieved a 57.8 percent business 

e-file rate in FY 2019, just missing the target of 58 percent. The IRS processed 29 million business returns 

electronically, a five-year high and a 5.8 percent increase from FY 2018. Employment tax returns 

(Form 941, Employer’s Quarterly Federal Tax Return), continue to increase as a share of business returns 

filed from 38 percent in FY 2015 to 41 percent in FY 2019. The IRS will continue to promote the benefits 

of e-filing (i.e. faster refunds, greater accuracy, secure and confidential submission, and quick 

confirmation). The business e-file target will be increased to 60 percent for FY 2020 and FY 2021.

In FY 2019, Customer Accuracy – Tax Law was 91.6 percent, 0.4 percent below the target of 92 percent. 

The delay in training before the filing season startedaffected the accuracy results. The IRS will continue to 

monitor results through data driven analysis of reports obtained from the Embedded Quality Review 

47.0% 50.0% 52.9% 55.6% 57.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Business E-File Rate
IRS-51

System (EQRS) to ensure achievement of future goals. Ongoing efforts have and will continue to focus on 

production meetings with field sites, promoting coding consistency of product reviews, and providing 

training to managers and employees to ensure quality service to customers. For FY 2020 and FY 2021, the 

IRS set a tax law accuracy target of 92 percent.

For Customer Accuracy – Accounts (Phones), the IRS correctly answered 94.3 percent of account 

questions over the telephone, exceeding the FY 2019 target of 94 percent. The IRS will continue to 

monitor Account Telephone Customer Accuracy results through data driven analysis of reports obtained 

from EQRS to achieve future goals. Ongoing efforts have and will continue to focus on production 

meetings with field sites, promoting coding consistency of product reviews and providing training to 

managers and employees to ensure quality service to customers. For FY 2020 and FY 2021, the IRS 

expects to achieve an accounts (phones) accuracy rate of 94 percent.

The CSR level of service (LOS) measures the relative success rate of taxpayers wanting to speak with a 

CSR. CSR LOS includes telephone lines answered by Accounts Management CSRs only (31 phone lines 

total). These telephone lines service 78 percent of all telephone traffic. In FY 2019, the CSR LOS 

exceeded the target of 63 percent, reaching 65.4 percent. For filing season, LOS was 66.9 percent, an 

increase of 1.9 percentage points over the target of 65 percent. While the target was met, the LOS dropped 

10.5 percentage points from FY 2018 due, in part, to the lapse in appropriations. Overall, the number of 

FY 2019 toll free callers was 15.7 percent lower compared to FY 2018 as more taxpayers use IRS.gov to 

obtain information. The IRS monitors demand in real time and allocates down to the half hour between 

telephones and paper processing to achieve the planned goals and avoid downtime. In FY 2019, the ending 

paper correspondence inventory was 1.1 million. In FY 2020, the IRS will continue to create detailed 

forecasts of expected telephone and correspondence demand and adjust staffing accordingly. The LOS 

target is set at 60 percent for FY 2020, which assumes assistors calls answered of a projected 20 million

and paper correspondence estimated at 1.1 million. The IRS projects that the filing season LOS will be

slightly higher at 65 percent. The FY 2021 LOS target is projected to be 60 percent with a projected 20 

million assistor calls answered with a project paper correspondence inventory estimated at 1.1 million. 

38.1%

53.4%

77.1%

75.9%

65.4%

30% 40% 50% 60% 70% 80%

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

CSR LOS
IRS-52

FY 2021 filing season LOS is projected to be 65 percent. Both targets for FY 2021 assume $96 million in 

user fees to help offset mandatory labor cost increases. 

The Taxpayers Satisfied with the IRS indicator – the All Individual Tax Filers Score, is based on the annual 

American Customer Satisfaction Index (ACSI) Survey, which is the only uniform, 

cross-industry/government measure of customer satisfaction with the quality of goods and services 

available to U.S. residents. The measure is calculated as a weighted combination of the ACSI Individual 

Electronic Tax Filer and Individual Paper Tax Filer Customer Satisfaction Index scores based on a 

100-point scale. After remaining steady for three years, the measure dropped one point in 2019 to 73, due

to declines in both electronic and paper filers scores. The government shutdown that ended in early 2019

likely affected these scores by impacting the timeliness of IRS customer service and the ease of getting

filing information for certain tax filers.

FY 2021 Changes by Budget Activity

Dollars in thousands

Filing and Account Services FTE Amount 

FY 2020 Enacted (Pre-IAT) 21,865 $1,854,725 

Planned Interappropriation Transfer 370 $24,000 

FY 2020 Enacted 22,236 $1,878,725 

Changes to Base:

Maintaining Current Levels (MCLs) $80,122 

Pay Annualization (3.1% average pay raise) 13,671 

Pay Raise (1.0% average pay raise) 13,333 

FERS Contribution Increase 20,541 

Non-Pay 3,005 

Additional Required Labor Costs 29,572 

Efficiencies/Savings (899) ($63,311)

Increase e-File Savings (85) (4,607)

Personnel Savings (814) (58,704)

Subtotal FY 2021 Changes to Base (899) $16,811

FY 2021 Current Services 21,337 $1,895,536 

Program Increases:

Subtotal FY 2021 Program Increases

Total FY 2021 Request (Before Cap) 21,337 $1,895,536 

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted (899) $16,811

Percent Change FY 2021 Request over FY 2020 Enacted -4.04% 0.89%
IRS-53

2.1.2 – Budget and Performance Report and Plan

Dollars in thousands

Filing and Account Services FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $1,550,027 $1,564,488 $1,712,511 $1,872,175 $1,934,647 $1,878,725 $1,895,536 

Reimbursable Resources2 28,555 30,147 34,905 62,794 37,846 65,447 68,719 

User Fees2 160,342 40,553 69,987 3,900 5,870 3,900 99,900 

Budget Activity Total $1,738,924 $1,635,188 $1,817,403 $1,938,869 $1,978,363 $1,948,072 $2,064,155 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

Filing and Account Services FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Business Returns Processed Electronically (Oe) 47.0% 50.0% 52.9% 55.6% 57.8% 58.0% 60.0% 60.0%

Customer Accuracy - Tax Law (Phones) (Ot) 95.0% 96.4% 96.7% 95.5% 91.6% 92.0% 92.0% 92.0%

Customer Accuracy - Accounts (Phones) (Ot) 95.5% 96.1% 96.0% 96.1% 94.3% 94.0% 94.0% 94.0%

Customer Service Representative Level of Service (Oe)1,2 38.1% 53.4% 77.1% 75.9% 65.4% 63.0% 60.0% 60.0%

Taxpayers Satisfied with the IRS (based on a 100-point 

scale)3, 4 73 74 74 74 73 Indicator Indicator Indicator

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and L - Long Term Goal 1

CSR LOS includes telephone lines answered by Accounts Management Customer Service Representatives only. These telephone phone lines service 78% of all 

telephone traffic.

2

The FY 2019 level of service target was calculated at the FY 2019 Enacted level.

3

New measure added for FY 2019

4

Based on the American Customer Satisfaction Index (ACSI) survey; the All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer and 

Electronic Filer customer satisfaction index scores; available on an annual basis at the end of January and computed on a 100-point scale. 


IRS-54

Enforcement

Appropriation Description

The Enforcement appropriation provides funding for the examination of tax returns, both domestic and 

international; administrative and judicial settlement of taxpayer appeals of examination findings; technical 

rulings; monitoring of employee pension plans; determination of qualifications of organizations seeking 

tax-exempt status; examination of tax returns of exempt organizations; enforcement of statutes relating to 

detection and investigation of criminal violations of the internal revenue laws; identification of 

underreporting of tax obligations; securing of unfiled tax returns; and collection of unpaid accounts. 

The Enforcement budget request for FY 2021 is $5,071,260,000 in direct appropriations and 35,026 FTE, 

excluding the proposed program integrity cap adjustment. This amount is an increase of $161,760,000, or 

3.29 percent, and 362 FTE fewer than the FY 2020 enacted level (after transfer) of $4,909,500,000 and 

35,388 FTE. 
IRS-55

2.1 – Budget Adjustments Table

Dollars in thousands

Enforcement

Summary of Proposed FY 2021 Request FTE Amount

FY 2020 Enacted (Pre-IAT) 35,388 $5,010,000 

Planned Interappropriation Transfer (100,500)

FY 2020 Enacted 35,388 $4,909,500 

Changes to Base:

Maintaining Current Levels (MCLs) $207,089 

Pay Annualization (3.1% average pay raise) 35,236 

Pay Raise (1% average pay raise) 34,364 

FERS Contribution Increase 52,345 

Non-Pay 7,258 

Additional Required Labor Costs 77,886 

Efficiencies/Savings: (454) ($56,589)

Personnel Savings (454) (56,589)

Subtotal FY 2021 Changes to Base (454) $150,500 

FY 2021 Current Services 34,934 $5,060,000 

Program Changes:

Program Increases

Implementing the Taxpayer First Act 92 11,260 

Subtotal FY 2021 Program Increases 92 $11,260 

Total FY 2021 Budget Request 35,026 $5,071,260 

See footnotes in 1.1 -- Appropriations Detail Table
IRS-56

2.2 – Object Classification (Schedule O) Obligations

Dollars in thousands

Enforcement

Object Classification

FY 2019

Actuals

FY 2020

Enacted

FY 2021

Request

11.1 Full-Time Permanent Positions 2,976,718 3,129,874 3,198,737

11.3 Other than Full-Time Permanent Positions 28,520 33,337 33,992

11.5 Other Personnel Compensation 121,867 110,921 135,557

11.8 Special Personal Services Payments 28,969 20,456 20,769

11.9 Personnel Compensation (Total) 3,156,074 3,294,588 3,389,055

12.1 Personnel Benefits 1,136,199 1,251,401 1,309,907

13.0 Benefits to Former Personnel 418 590 600

Total Personnel and Compensation Benefits $4,292,691 $4,546,579 $4,699,562

21.0 Travel 64,375 92,711 94,702

22.0 Transportation of Things 5,799 8,568 8,740

23.2 Rent Payments to Others 311 311 318

23.3 Communications, Utilities, & Misc 2,063 2,176 2,219

24.0 Printing & Reproduction 2,216 2,625 2,685

25.1 Advisory & Assistance Services 128,541 121,691 125,390

25.2 Other Services 31,815 49,188 50,174

25.3 Purchase of Goods & Services from Govt. 

Accounts 34,886 35,434 36,222

25.4 Operation & Maintenance of Facilities 1 5 5

25.6 Medical Care 35 8 8

25.7 Operation & Maintenance of Equipment 1,076 1,545 1,576

26.0 Supplies and Materials 17,517 31,867 32,531

31.0 Equipment 8,389 11,283 11,509

32.0 Land and Structures 3 1 1

42.0 Insurance Claims & Indemnities 1,155 1,008 1,028

91.0 Unvouchered 1,986 4,500 4,590

Total Non-Personnel $300,168 $362,921 $371,698

New Appropriated Resources $4,592,859 $4,909,500 $5,071,260

Budget Activities:

Investigations 587,235 654,285 675,533

Exam & Collections 3,841,166 4,091,953 4,225,886

Regulatory 164,458 163,262 169,841

New Appropriated Resources $4,592,859 $4,909,500 $5,071,260

FTE 34,478 35,388 35,026

See footnotes in 1.1 -- Appropriations Detail Table

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
IRS-57

2.3 – Appropriation Detail Table

Dollars in thousands

Enforcement Change % Change

Appropriated Resources

FY 2019

Operating Plan

FY 2020

Enacted

FY 2021

Request

FY 2020 to FY 2021 

Request

FY 2020 to FY 2021 

Request

New Appropriated Resources: FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Investigations 2,833 595,686 2,971 654,285 2,933 675,533 (38) 21,248 -1.28% 3.25%

Exam and Collections 29,698 3,907,290 31,467 4,091,953 31,147 4,225,886 (320) 133,933 -1.02% 3.27%

Regulatory 947 174,624 950 163,262 946 169,841 (4) 6,579 -0.42% 4.03%

Subtotal New Appropriated Resources 33,478 $4,677,600 35,388 $4,909,500 35,026 $5,071,260 (362) $161,760 -1.02% 3.29%

Other Resources:

Reimbursables 45 28,401 62 40,076 65 42,080 3 2,004 4.84% 5.0%

Offsetting Collections - Non 

 Reimbursable 9,749 31,781 33,370 1,589 5.0%

User Fees 42 30 30 

Recovery from Prior Years 3,110 30 30 

Recoveries Paid 3,408 3,408 

Unobligated Balances from Prior 

 Years 6 12,832 69,043 28,400 (40,643) -58.87%

Transfers In/Out 111 

Resources from Other Accounts

Subtotal Other Resources 51 $54,245 62 $144,368 65 $107,318 3 ($37,050) 4.84% -25.66%

Total Budgetary Resources 33,529 $4,731,845 35,450 $5,053,868 35,091 $5,178,578 (359) $124,710 -1.01% 2.47%

See footnotes in 1.1--Appropriations Detail Table

2C – Investigations ($675,534,000in direct appropriations, an estimated $40,734,000 from 

reimbursable programs, and an estimated $33,370,000 from non-reimbursable programs): This budget 

activity funds the Criminal Investigation (CI) programs that explore potential criminal and civil violations 

of tax laws; enforce criminal statutes relating to violations of tax laws and other financial crimes; and 

recommend prosecution as warranted. The program activities include:

• General Management and Administration supports the headquarters management activities of 

strategic planning, communications, finance, and human resources for CI activities. 

• Identity Theft, through CI's collaboration with internal and external business partners, combats the 

inherent risks of Stolen Identity Refund Fraud (SIRF) by focusing on significant tax investigations, 

prosecutions to maximize deterrence, and preventing the IRS from issuing fraudulent refunds. 

• CI supports the enforcement of criminal statutes relating to violations of internal revenue laws and 

other financial crimes. CI investigates cases of suspected intent to defraud involving both legal 

and illegal sources of income and recommends prosecution as warranted. This includes the 

investigation and prosecution of tax and money-laundering violations associated with narcotics 

organizations. 
IRS-58

• Criminal Tax Legal Support provides legal advice and support from IRS Counsel to CI. 

• International Investigations supports international investigations involving U.S. citizens residing 

abroad, non-resident aliens, expatriates (U.S. citizens living abroad who have renounced their 

citizenship), and investigations involving other international issues, including legal support (e.g., 

Foreign Tax Credit and Foreign Earned Income Exclusion, Corporations, Non-Profits, Pension

Plans, etc.).

• Cybersecurity supports CI’s cyber-efforts around inherent risks to CI’s networks and systems, 

while focusing enforcement and investigative actions on the criminals that pose those threats. This 

activity also supports security program management that protects the safeguarding of all data and 

systems within CI while adhering to all federal regulatory security compliance mandates and local 

security policies. 

Description of FY 2019 Performance

The CI division serves the American public by investigating potential criminal violations of the Internal 

Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and 

compliance with the law. CI uses the following measures to evaluate its success in achieving its mission. 

In FY 2019, CI completed 2,797 criminal investigations, an 8.3 percent decrease compared to FY 2018, 

falling just short of the year-end target of 2,800. Overall performance in FY 2019 continued to be affected 

by a steady decrease in the number of special agents and was affected by the mix of cases, where if CI has 

more traditional tax cases, which tend to have a longer cycle time, the total number of investigations will 

go down. Cases of a Legal, Illegal and Narcotics nature decreased 1.2 percent, 13.2 percent, and 12.6 

percent respectively, compared to FY 2018. Legal source cases include people that earn their income 

legally, but willfully violate the tax laws (i.e. tax evasion). Illegal cases include income from sources such 

4,486 

3,721 

3,089 3,051 2,797 

 2,400

 2,600

 2,800

 3,000

 3,200

 3,400

 -

 1,000

 2,000

 3,000

 4,000

 5,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Criminal Investigations Completed and 

Associated FTE

Criminal Investigations Completed

FTE for Criminal Investigations
IRS-59

as embezzlement, mortgage fraud, telemarketing fraud, money laundering, etc. Narcotics cases are like 

illegal, these cases are specific to profit, and financial gains of organized drug groups involved in narcotics 

trafficking and/or narcotics/money laundering. The target is currently projected at 2,700 for FY 2020 and 

FY 2021. It is based on the number of recent hires, estimated attrition levels, and current performance 

trends.

The FY 2019 conviction rate of 91.2 percent was slightly below the year‐end target of 92 percent. The 

average number of acquittals and dismissals remained comparable to previous years while the overall 

number of convictions decreased 7.7 percent from FY 2018, contributing to the slight drop in the 

conviction rate. Appropriate case selection and effective field performance continue to positively affect the 

quality of cases. The FY 2020 and FY 2021 targets will remain at 92 percent, based on historical averages 

while the number of convictions is projected to be 1,600 for both years due to lower than expected 

inventory levels. In addition, projected decreases in the judicial process (pipeline) inventory will influence 

the number of convictions in future years. Additional factors such as unforeseen legislative and 

prosecutorial priorities, as well as resources at the Department of Justice and U.S. Attorney’s offices to 

prosecute CI cases, will also influence future performance.

2879

2672

2300

1879 1735

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0

500

1000

1500

2000

2500

3000

3500

2015 2016 2017 2018 2019

Convictions vs. Conviction Rate

Convictions Conviction Rate
IRS-60

FY 2021 Changes by Budget Activity

Dollars in thousands

Investigations FTE Amount

FY 2020 Enacted (Pre-IAT) 2,971 $688,733 

Planned Interappropriation Transfer ($34,449)

FY 2020 Enacted 2,971 $654,284 

Changes to Base:

Maintaining Current Levels (MCLs) $27,132

Pay Annualization (3.1% average pay raise) 4,437 

Pay Raise (1.0% average pay raise) 4,327 

FERS Contribution Increase 7,809 

Non-Pay 1,635 

Additional Required Labor Costs 8,925 

Efficiencies/Savings (38) ($7,138)

Personnel Savings (38) (7,138)

Subtotal FY 2021 Changes to Base (38) $19,995 

FY 2021 Current Services 2,933 $674,279 

Program Increases:

Implementing the Taxpayer First Act 1,254 

Subtotal FY 2021 Program Increases $1,254 

Total FY 2021 Request (Before Cap) 2,933 $675,533 

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted (38) $21,249

Percent Change FY 2021 Request over FY 2020 Enacted -1.28% 3.25%
IRS-61

2.1.3 – Budget and Performance Report and Plan

Dollars in thousands

Investigations FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $601,665 $591,449 $589,295 $581,680 $595,686 $654,285 $675,533 

Reimbursable Resources2 29,957 29,053 33,618 28,295 27,749 38,794 40,734 

User Fees2

Budget Activity Total $631,622 $620,502 $622,913 $609,975 $623,435 $693,079 $716,267 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

Investigations FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measures Actual Actual Actual Actual Actual Target Target Target

Criminal Investigations Completed (Ot) 4,486 3,721 3,089 3,051 2,797 2,800 2,700 2,700

Conviction Rate (Oe) 93.2% 92.1% 91.5% 91.7% 91.2% 92.0% 92.0% 92.0%

Key: Oe - Outcome Measure, Ot - Output/Workload Measure

2D – Exam and Collections ($4,225,886,000 in direct appropriations, an estimated $495,000 from 

reimbursable programs, and an estimated $30,000 from user fees): This budget activity funds programs that 

enforce the tax laws and increase compliance through examination and collection programs that ensure 

proper payment and tax reporting. This budget activity also includes campus support of the Questionable 

Refund program and appeals, and litigation activities associated with exam and collection. The program 

activities include:

• Compliance Services Management supports management associated with exam and compliance 

program activities.

• Payment Compliance – Correspondence Collectionsupports IRS collection activities by initiating 

contact and collecting delinquent taxpayer liabilities through written notices and other means.

• Automated Collections and Support initiates contact and collects delinquent taxpayer liabilities 

through the centralized Automated Collection System (ACS). 

• Payment Compliance – Field Collection conducts field investigations and collection efforts 

associated with delinquent taxpayer and business entity liabilities, including direct taxpayer contact 

and outreach programs to protect the interest of the federal government in delinquent tax liability 

situations.

• Tax Reporting Compliance – Document Matching supports the Automated Underreporter (AUR), 

Combined Annual Wage Reporting (CAWR), Federal Unemployment Tax Act (FUTA), and other 

document matching programs.
IRS-62

• Tax Reporting Compliance – Electronic/Correspondence Exam initiates written correspondence

with taxpayers related to tax issues arising from claims on their tax returns.

• Tax Reporting Compliance – Field Exam compares taxpayer income levels and corresponding tax

liabilities to ensure the accuracy of taxpayer returns.

• Fraud/Bank Secrecy Act enforces the anti-money laundering provisions of the Bank Secrecy Act of 

1970 (BSA) and the USA Patriot Act of 2001. It examines non-bank financial institutions for

compliance with these laws, receives and processes more than 15 million financial reports

annually, and manages a centralized database of that information for the Financial Crimes

Enforcement Network. The Fraud program follows the money trail to support the criminal

investigation of tax evasion operations. Fraud technical advisors and revenue agents supply

investigative leads and referrals to federal, state, and local law enforcement agencies.

• Appeals supplies an administrative review process that provides a channel for impartial case

settlement before a case is docketed in a court of law.

• Litigationprovides legal support for the IRS in litigation of cases, including interpretation of the

tax law.

• Specialty Programs – Exams examines federal tax returns of businesses and individuals responsible

for the filing and payment of employment, excise, estate, and gift taxes.

• International Collection supports international field collection efforts associated with delinquent

taxpayer and business entity liabilities from U.S. citizens residing abroad, non-resident aliens,

expatriates (U.S. citizens living abroad who have renounced their citizenship), and those involving

other international issues (e.g., Foreign Tax Credit and Foreign Earned Income Exclusion).

• International Exams supports the international exam program involving U.S. citizens residing

abroad, non-resident aliens, expatriates, and other examinations involving other international issues

including legal support (e.g., Foreign Tax Credit and Foreign Earned Income Exclusion,

Corporations, Non-Profits, Pension Plans, etc.).

• Enforcement Research provides resources for market-based research to identify compliance issues,

for conducting tests of treatments to address noncompliance, and for the implementation of

successful treatments of taxpayer non-compliant behavior.

• Unit General Management and Administration provides staffing, training, and direct support for

headquarters management activities of strategic planning, communication and liaison, finance,

human resources, equity, diversity and inclusion, business system planning, and embedded

training.

• EITC Management and Administrationsupports headquarters management associated with EITC.
IRS-63

• Integrity & Verification Operations supports civil fraud detection and prevention efforts in a 

pre-refund environment including monitoring performance and developing policy, procedures, and 

guidance for processing civil revenue protection programs.

• ID Theft Victim Assistance has end-to-end responsibility and accountability for identity theft 

victim assistance policy and operations, which includes paper inventories from tax-related ID theft, 

the Identity Theft Protection Specialized Unit, and Return Preparer Misconduct.

• Whistleblower Office provides staffing, training, and direct support to process, assess, and analyze 

tips from individuals who identify tax problems in the course of their daily business, regardless of 

where encountered (including workplace).

• Communications and Liaison coordinates local government and liaison relationships; manages 

congressional, state, and national stakeholder relationships and issues; coordinates crosscutting 

issues, including audit management and legislative implementation; manages national media 

contacts and local media relationships; and ensures compliance with disclosure and privacy laws.

• Return Integrity, Verification & Program Management provides policy and program oversight of 

revenue protection efforts such as detection, prevention, and treatment of improper refunds 

(identity theft and non-compliance), including managing systemic solutions regarding payment of 

valid refund claims and the development of innovative technology solutions supporting IRS-wide 

revenue protection strategies.

Description of FY 2019 Performance - Exam

The Examination program provides taxpayers top quality service by helping them understand and meet 

their tax responsibilities and by applying the tax law with integrity and fairness.

12,298

10,360 9,157 8,930

6,811

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Individual Exam Closures with Coverage Rates

Exam Closures (hundreds) Exam Coverage Individual
IRS-64

In FY 2019, Individual Exam Coverage was 0.45 percent, below the target of 0.50 percent. This measure 

tracks the number of individual audits closed in a given fiscal year. While meaningful over time, the 

measure does not reflect in real time ongoing open audit activities or the effectiveness of exams; exam 

selection and effectiveness should continue to increase due to data analytics and system improvements. For 

example, audits of high-income individuals generally take longer and are therefore more likely to remain 

open for a significant period of time. The IRS has continued to increase audits in the category of total 

positive income (TPI), or the sum of all positive amounts shown for various sources of income reported on 

the individual tax return excluding losses, of $10 million and over. At the end of FY 2018, the IRS had 

5,220 audits open in this TPI grouping and has increased the number of open audits in this TPI grouping. 

Many of these exams would not show up in Individual Exam Coverage until closed, which may take 

several years. 

Closures were short of plan because of delays in enforcement hiring due to the lapse in appropriations. 

Significant staffing losses also adversely affected closures. IRS Operating Divisions will monitor 

resources, starts, and work-in-process to ensure FY 2020 targets are met. For FY 2020 the target is 

0.48 percent and the FY 2021 target is being raised to 0.55 percent. The proposed program integrity cap 

adjustment would significantly improve performance for this metric in future years.

The Examination Coverage – Business (Assets > $10 million) measure is calculated by taking the total 

number of LB&I returns with assets of more than $10 million, including all partnerships examined and 

closed by LB&I during the current fiscal year, divided by total filings for the prior calendar year. In

FY 2019, Business Examination Coverage was 1.6 percent, below the target of 2.2 percent. Actual attrition 

has exceeded the attrition rate factored into the closure plan for FY 2019. Closures of corporate returns in 

the highest asset classes are well below plan in anticipation of the transition from the traditional 

coordinated industry case program to the new large corporate compliance program. The FY 2020 target is 

1.7 percent and the FY 2021 target is 1.1 percent. The decrease in FY 2021 target is a result of reassigning 

10,804

8,890

7,834 7,189

5,697

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Business Exam Closures with Coverage Rates

Exam Closures Exam Coverage Business
IRS-65

more than 100 revenue agents from normal casework to serve as on-the-job-instructors for recent hires and 

limited hiring in FY 2021.

In FY 2019, Exam Efficiency - Individual (the number of closures divided by the total Exam FTE) was 

109, below the target of 122 and down 16.8 percent from FY 2018. Efficiency is below the 12-month 

target due to the five-week lapse in appropriations, resumption activities, and unplanned staffing loses to 

other business units. In addition, the amount of overtime worked, with no additional closures, added to the 

workplan, and reducedexam efficiency. The FY 2020 Exam Efficiency – Individual is 115 and the 

FY 2021 target is 120. 

The AUR Coverage measure is calculated by taking the total number of contact closures divided by total 

prior calendar year individual filings. In FY 2019, AUR Coverage was 1.3 percent, below the target of 

1.6 percent. Manpower was short of plan because of the shutdown and resumption activities, including 

delays in the enforcement hiring timeline. New hires that were originally scheduled for March were not on 

board until August. The IRS will monitor resources, work in process, and planned starts to ensure it meets

future targets. The target in FY 2020 is 1.7 percent for FY 2019 and 1.8 percent for FY 2021.

The Time to Start Compliance Resolution is a new measure currently under development. This measure 

will be used as an indicator in FY 2020. It is the percentage of all individual income tax enforcement cases 

started within six months of the return posting date. It will reflect the effect of expedited issue detection 

and more integrated enforcement approaches. It supports expedited document matching, enhanced 

anomaly detection leading to faster issue identification, and data and analytics to improve issue 

identification and treatment choice. 

The Time to Resolve Compliance Issue After Filing is a new measure currently under development. This 

measure will be used as an indicator in FY 2020. It measures the average time (in days) it takes to close all 

individual income tax enforcement cases. This measure reflects the complete life cycle from return filing 

to resolution. It will reflect the effect of process enhancements, such as new self-correction capabilities, 

including Online Account. It supports expedited document matching and enhanced anomaly detection, 

which will lead to faster issue identification. 

The Repeat Non-Compliance Rate is a new measure under development. The measure will be used as an 

indicator in FY 2020. It measures the percentage of individual taxpayers with repeat non-compliance two 

years after the first tax year for filing, payment, or reporting compliance. This measure supports expedited 

document matching, enhanced anomaly detection leading to faster issue identification, and Enterprise Case 

Management. It also promotes improved customer service through expanded access to new self-correction 

capabilities and improved behavioral analytics. It allows the IRS to better understand and change 

non-compliant taxpayer behavior.

Time to Start, Time to Resolve, and Repeat Non-Compliance are new measures under development.
IRS-66

Description of FY 2019 Performance - Collection

The Collection program collects delinquent taxes, secures delinquent tax returns through the fair and 

equitable application of tax laws, and provides education to customers to promote future compliance. The 

performance goals that the IRS uses to gauge collection program performance are discussed below. 

The Collection Coverage measure is calculated by taking the total volume of collection work disposed (i.e. 

completed) divided by total collection work available. In FY 2019, Collection Coverage was 41.3 percent, 

exceeding the target of 40.1 percent. Collection exceeded its overall disposition target by 3.3 percent, 

while available inventory grew slightly from the FY 2018 level. For FY 2020, Collection coverage is 

expected to meet the planned target basedon the expected case closures calculated on the FY 2020 work 

and staffing plan. The IRS will set a target of 39.7 percent for FY 2020 and 38.8 percent in FY 2021.

The Cost to Collect $100 (in cents) measure is an existing metric that was not been reported in the budget 

prior to FY 2021 and will be used as an indicator in FY 2020. This measure is computed as total operating 

costs divided by gross collections multiplied by 100. The official number isusually released in March after 

the budget release. The FY 2018 Cost to Collect $100 was 34 cents. For FY 2019, IRS total operating 

costs were approximately $11.8 billion while gross collections were approximately $3.56 trillion. The 

FY 2019 Cost to Collect $100 was 33 cents. Operational efficiencies and economic activitycontributed to 

the lower cost to collect.
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FY 2021 Changes by Budget Activity

Dollars in thousands

Exam and Collections FTE Amount

FY 2020 Enacted (Pre-IAT) 31,467 $4,152,837 

Planned Interappropriation Transfer ($60,884)

FY 2020 Enacted 31,467 $4,091,953 

Changes to Base:

Maintaining Current Levels (MCLs) $172,969

Pay Annualization (3.1% average pay raise) 29,693 

Pay Raise (1.0% average pay raise) 28,959

FERS Contribution Increase 43,001 

Non-Pay 5,211 

Additional Required Labor Costs 66,105 

Efficiencies/Savings (404) ($47,652)

Personnel Savings (404) (47,652)

Subtotal FY 2021 Changes to Base (404) $125,316 

FY 2021 Current Services 31,063 $4,217,269 

Program Increases:

Implementing the Taxpayer First Act 83 8,617 

Subtotal FY 2021 Program Increases 83 $8,617

Total FY 2021 Request (Before Cap) 31,147 $4,225,886

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted (321) $133,933

Percent Change FY 2021 Request over FY 2020 Enacted -1.02% 3.27%
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2.1.4 – Budget and Performance Report and Plan

Dollars in thousands

Exam and Collections FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $4,018,292 $3,945,578 $3,901,041 $3,875,098 $3,907,290 $4,091,953 $4,225,886 

Reimbursable Resources2 640 456 450 3,289 240 471 495 

User Fees2 36 42 30 30 

Budget Activity Total $4,018,932 $3,946,070 $3,901,491 $3,878,387 $3,907,572 $4,092,454 $4,226,411 1

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan 

including any inter-BAC transfers and interappropriation transfers. 2

The FY 2015 - FY 2019 columns represent realized 

resources for reimbursables and user fees.

Exam and Collections FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measures Actual Actual Actual Actual Actual Target Target Target

Examination Coverage -

Individual (Oe) 0.8% 0.7% 0.6% 0.6% 0.45% 0.5% 0.48% 0.55%

Examination Coverage -

Business (Assets > $10 million) 

(Oe)

3.9% 3.0% 2.5% 2.2% 1.6% 2.2% 1.7% 1.1%

Examination Efficiency -

Individual (E) 148 143 121 131 109 122 115 120

Automated Underreporter (AUR) 

Coverage (E) 2.3% 2.3% 2.2% 2.0% 1.3% 1.6% 1.7% 1.8%

Time to Start Compliance 

Resolution (E, L)1 TBD N/A Indicator Indicator

Time to Resolve Compliance 

Issue After Filing (E)1 TBD N/A Indicator Indicator

Repeat Non-Compliance Rate 

(Ot)1 TBD N/A Indicator Indicator

Collection Coverage - Units (Ot) 46.3% 43.4% 42.2% 41.6% 41.3% 40.1% 39.7% 38.8%

Cost to Collect $100 (E)1 $0.35 $0.35 $0.34 $0.34 $0.33 Indicator Indicator Indicator

Key: Oe - Outcome Measure, E - Efficiency Measure, L - Strategic Plan Goal, Ot - Output/Workload Measure

1

New measure added for FY 2019

2E – Regulatory ($169,841,000 in direct appropriations and an estimated $851,000 from reimbursable 

programs): This budget activity funds the development of published IRS guidance materials; interpretation 

of tax laws; internal advice to IRS on general non-tax legal issues; enforcement of regulatory rules, laws, 

and approved business practices; and support for taxpayers in the areas of pre-filing agreements, 

determination letters, and advance pricing agreements. The activities include:

• Tax Law Interpretation and Published Guidance interprets tax law through published guidance, 

technical advice, and other technical legal services.

• General Legal Servicesprovides advice to the IRS on non-tax legal issues, including procurement, 

personnel, labor relations, equal employment opportunity, fiscal law, tort claims and damages, 

ethics, and conflict of interest.
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• Rulings and Agreements applies the tax law to specific taxpayers in the form of pre-filing 

agreements, determination letters, advance pricing agreements, and other pre-filing determinations 

and advice.

• International Regulatory Legal Support supports Counsel’s work in tax law interpretation and 

rulings and agreements related to international issues.

• Return Preparer Strategy provides staffing, training, and direct support associated with the Return 

Preparer Strategy.

• Office of Professional Responsibilityidentifies, communicates, and enforces Treasury Circular 

230 standards of competence, integrity, and conduct of those who represent taxpayers before the 

IRS, including attorneys, Certified Public Accountants (CPAs), enrolled agents, enrolled actuaries 

and appraisers, and other professionals.

Description of FY 2019 Performance

In FY 2019, IRS published 213 items: 147 Priority Guidance Plan (PGP) projects and 66 ministerial 

rulings. Ministerial projects are publications that only involve ministerial matters (such as applicable 

federal interest rates and monthly bond factor amounts). They are usually published on an annual basis.

Many items published in FY 2019 involved complex and novel issues. For example, six of the published 

items pertain to a deduction created by the Tax Cuts and Jobs Act allowing owners of pass-through 

businesses to deduct up to 20 percent of their qualified business income from their tax returns. Another 

four items addressed the new Opportunity Zone provisions of the Tax Cuts and Jobs Act, which provide 

preferential taxtreatment to investments made in economically-distressed communities. Two items 

addressed the new global intangible low-taxed income provisions that reduced the incentive for 

multinationals to shift profits on intangible assets (patents, copyrights, trademarks, etc.) to low tax 

jurisdictions. The 2019-2020 PGP, published on October 8, 2019 and covering the period, July 2019 

through June 2020, lists 202 projects.

In addition to the significant increase in work due to the Tax Cuts and Jobs Act, the IRS undertook new 

work on return preparers. It established a team to develop a return preparer strategy. This team evaluated 

the current activities around return preparer compliance, identified gaps and associated risks with current 

initiatives, and developed recommendations for a comprehensive and coordinated IRS return preparer 

strategy. The IRS added new language to letters sent to return preparers who are not in tax compliance to 

clarify that the IRS had previously provided details to the recipient about alleged tax noncompliance. Also, 

the IRS worked with Treasury Inspector General for Tax Administration’s (TIGTA) Office of 

Investigations to update the referral criteria for return preparers who misrepresent their professional 

credentials. The IRS currently prepares a quarterly report to track and analyze progress on Compliance 
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Initiative projects using the Preparer Risk Identification Scoring Model feature of the Return Preparer 

Database.

Also in FY 2019, the Office of Professional Responsibility (OPR) obtained a new Case Source, 

Compliance Data Warehouse (CDW). The CDW allows the OPR to independently identify potential cases 

of practitioner misconduct that are not being referred to the OPR by other business units. The OPR 

partnered with Criminal Investigation (CI) and the shared cases that met OPR criteria with CI to determine 

whether potential criminal conduct exists, and CI initially elected to keep 291 cases for further 

investigation, leaving the OPR with 900 cases. In May 2019, the OPR began the review process, focusing 

on the remaining cases. The OPR anticipated the cases to be consistently complex and significant, involve 

multiple tax years and violations, and will provide staff with more challenging cases with less routine fact 

patterns. This allows OPR to focus resources on a variety of case types to provide broad deterrent effect. 

The OPR plans to monitor the intake function to refine the queries or case selection as needed and use their

triage function to monitor the selection of these cases to ensure that case selection and investigative results 

are consistent.
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FY 2021 Changes by Budget Activity

Dollars in thousands

Regulatory FTE Amount

FY 2020 Enacted (Pre-IAT) 950 $168,430

Planned Interappropriation Transfer (5,167)

FY 2020 Enacted 950 $163,262 

Changes to Base:

Maintaining Current Levels (MCLs) $6,988

Pay Annualization (3.1% average pay raise) 1,106

Pay Raise (1.0% average pay raise) 1,078 

FERS Contribution Increase 1,536 

Non-Pay 412 

Additional Required Labor Costs 2,856 

Efficiencies/Savings (12) ($1,798)

Personnel Savings (12) (1,798)

Subtotal FY 2021 Changes to Base (12) $5,189

FY 2021 Current Services 938 $168,452

Program Increases:

Implementing the Taxpayer First Act 8 1,389 

Subtotal FY 2021 Program Increases 8 $1,389 

Total FY 2021 Request (Before Cap) 946 $169,841

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted (4) $6,578

Percent Change FY 2021 Request over FY 2020 Enacted -0.44% 4.03%
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2.1.5 – Budget and Performance Report and Plan

Dollars in thousands

Regulatory FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $147,605 $137,245 $131,662 $170,222 $174,624 $163,262 $169,841 

Reimbursable Resources2 363 202 160 593 412 811 851 

User Fees2 18,485 9,233 9,537 

Budget Activity Total $166,453 $146,680 $141,359 $170,815 $175,036 $164,073 $170,692 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.



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Operations Support

Appropriation Description

The Operations Support appropriation provides funding for overall planning, direction, and support for the 

IRS, including shared service support related to facilities services, rent payments, printing, postage, and 

security. This appropriation funds headquarters policy and management activities such as corporate 

support for strategic planning; communications and liaison; finance; human resources; equity, diversity, 

and inclusion; research and statistics of income; and necessary expenses for information systems and 

telecommunication support, including development, security, and maintenance of the IRS’s information 

systems. 

The Operations Support budget request for FY 2021 is $4,104,689,000 in direct appropriations and 

12,140 FTE, excluding the proposed program integrity cap adjustment. This is an increase of 

$219,689,000, or 5.65 percent, and 170 FTE more than the FY 2020 enacted level of $3,885,000,000 (after 

transfer) and 11,970 FTE. 
IRS-74

2.1 – Budget Adjustments Table

Dollars in thousands

Operations Support

Summary of Proposed FY 2021 Request FTE Amount

FY 2020 Enacted (Pre-IAT) 11,970 $3,808,500 

Planned Interappropriation Transfer 76,500 

FY 2020 Enacted (Pre-IAT) 11,970 $3,885,000 

Changes to Base:

Maintaining Current Levels (MCLs) $130,866 

Pay Annualization (3.1% average pay raise) 13,896 

Pay Raise (1% average pay raise) 13,552 

FERS Contribution Increase 20,143 

Non-Pay 41,840 

Additional Required Labor Costs 41,435 

Efficiencies/Savings: ($6,277)

Increase e-File Savings (77)

Space Optimization (6,200)

Subtotal FY 2021 Changes to Base $124,589 

FY 2021 Current Services 11,970 $4,009,589 

Program Changes:

Program Increases

Implementing the Taxpayer First Act 170 95,100 

Subtotal FY 2021 Program Increases 170 $95,100 

Total FY 2021 Budget Request 12,140 $4,104,689 

See footnotes in 1.1 -- Appropriations Detail Table
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2.2 – Object Classification (Schedule O) Obligations

Dollars in thousands

Operations Support

Object Classification

FY 2019

Actuals

FY 2020

Enacted

FY 2021

Request

11.1 Full-Time Permanent Positions 1,091,508 1,324,130 1,393,126

11.3 Other than Full-Time Permanent Positions 5,064 5,976 6,212

11.5 Other Personnel Compensation 19,569 19,306 28,906

11.8 Special Personal Services Payments 169 38 38

11.9 Personnel Compensation (Total) 1,116,310 1,349,450 1,428,282

12.1 Personnel Benefits 361,284 443,204 475,856

13.0 Benefits to Former Personnel 217 363 369

Total Personnel and Compensation Benefits $1,477,811 $1,793,017 $1,904,507

21.0 Travel 15,102 16,230 16,937

22.0 Transportation of Things 13,226 13,914 14,222

23.1 Rental Payments to GSA 581,764 579,517 585,262

23.2 Rent Payments to Others 11,265 11,401 11,629

23.3 Communications, Utilities, & Misc 306,213 324,439 331,559

24.0 Printing & Reproduction 17,477 18,730 19,127

25.1 Advisory & Assistance Services 700,752 485,090 560,937

25.2 Other Services 29,313 29,897 32,409

25.3 Purchase of Goods & Services from Govt. 

Accounts 72,730 71,349 73,151

25.4 Operation & Maintenance of Facilities 187,914 186,801 190,936

25.6 Medical Care 14,266 14,508 14,857

25.7 Operation & Maintenance of Equipment 55,442 57,941 59,205

26.0 Supplies and Materials 8,501 9,751 10,022

31.0 Equipment 330,424 221,292 227,500

32.0 Land and Structures 39,364 50,850 52,151

42.0 Insurance Claims & Indemnities 315 273 278

Total Non-Personnel $2,384,068 $2,091,983 $2,200,182

New Appropriated Resources $3,861,879 $3,885,000 $4,104,689

Budget Activities:

Infrastructure 891,987 881,654 895,071

Shared Services & Support 892,920 1,012,155 1,063,984

Information Services 2,076,972 1,991,191 2,145,634

New Appropriated Resources $3,861,879 $3,885,000 $4,104,689

FTE 10,277 11,970 12,140

See footnotes in 1.1 -- Appropriations Detail Table

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
IRS-76

2.3 – Appropriation Detail Table

Dollars in thousands

Operations Support Change % Change

Appropriated Resources

FY 2019

Operating Plan

FY 2020

Enacted

FY 2021

Request

FY 2020 to FY 

2021 Request

FY 2020 to FY 2021 

Request

New Appropriated Resources: FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Infrastructure 891,140 881,654 895,071 13,417 1.52%

Shared Services and Support 4,181 900,287 4,947 1,012,155 5,023 1,063,984 76 51,829 1.54% 5.12%

Information Services 6,096 2,126,973 7,023 1,991,191 7,117 2,145,634 93 154,443 1.32% 7.76%

Subtotal New Appropriated 

Resources 10,277 $3,918,400 11,970 $3,885,000 12,140 $4,104,689 169 $219,689 1.41% 5.65%

Other Resources:

Reimbursables 90 58,194 54 65,000 57 68,250 3 3,250 5.56% 5.0%

Offsetting Collections - Non 

Reimbursables

User Fees 223,398 15 423,995 10 450,000 (5) 36,098 -33.33% 8.51%

Recovery from Prior Years 3,338 8,732 8,732 

Recoveries Paid 13 13 

Unobligated Balances from Prior 

Years 472 194,976 70,652 57,500 (13,152) -18.62%

Transfers In/Out

Resources from Other Accounts

Subtotal Other Resources 562 $479,906 69 $568,392 67 $584,495 (2) $26,196 -2.90% 4.61%

Total Budgetary Resources 10,839 $4,398,306 12,039 $4,453,392 12,207 $4,689,184 167 $245,885 1.39% 5.52%

See footnotes in 1.1--Appropriations Detail Table

2F – Infrastructure ($895,071,000 in direct appropriations and an estimated $784,000 from 

reimbursable programs): This budget activity funds administrative services related to space and housing, 

rent and space alterations, building services, maintenance, guard services, and non-IT equipment. The 

program activities include: 

• Building Delegation oversees and manages the IRS GSA-delegated buildings, including cleaning, 

maintenance, utilities, protection, administrative, and recurring and one-time repair costs. 

• Rent provides resources for all IRS rent needs. 

• Space and Housing/Non-IT Equipment provides management of all IRS building services, 

maintenance, space alterations, guard services, custodial overtime, utility service needs, and non-IT 

equipment. 

• Security covers all physical security costs, including guard services, security equipment and 

maintenance, countermeasures, Homeland Security Presidential Directive 12 (HSPD-12) and 

Treasury Enterprise Identity Credential and Access Management (TEICAM). 
IRS-77

Description of FY 2019 Performance 

The Rentable Square Feet per Person indicator is the amount of rentable square feet the IRS maintains per 

person requiring space. The IRS continues to reduce its total office space. Through FY 2019, the Rentable 

Sq. Ft. per Person was 298 compared to 301 in FY 2018. The IRS continued to release excess office space 

through building closures and consolidations; nearly one million rentable square feet has been released 

since FY 2017. In FY 2019, the IRS released 449,500 square feet of space, including closing 

nine buildings, saving $10.6 million. The IRS expanded the number of offices that incorporate hoteling or 

shared workspace for employees and contractors who do not require full-time space. To achieve more 

effective space utilization, the IRS incorporated a more detailed account of employees’ out-of-office status 

in its planning to increase workspace sharing and reduce quantity of leased space required. The IRS is also 

looking to incorporate new hires into existing space, where possible. These and other actions will help 

limit projected rent cost increases. The IRS plans to use this measure as an indicator for FY 2020.

Security 

Security of taxpayer data and providing a secure environment for employees are of utmost importance to 

the IRS. In FY 2019, the IRS: 

• Strengthened internal controls to protect the physical security of IRS facilities against internal and 

external threats and to safeguard taxpayer information. 

• Continued improvements to authentication by deploying phase 2 of the Identity Verify (IDVerify)

tool, which assists taxpayers selected by the Taxpayer Protection Program to provide identity and 

return verification information online rather than by calling a live assistance telephone line or 

visiting a Taxpayer Assistance Center. As of September 30, 2019, 134,200 eligible taxpayers have 

logged in and verified their identity since the application launched for the 2019 filing season.

• Continued to make strides in detecting and preventing fraudulent activity in IRS information 

systems. For example, the IRS adapted its processes to reject fraudulent electronically-filed tax 

returns and prevent the issuance of millions in fraudulent tax refunds and increased the number of 

business return identity theft filters. Also, in FY 2019, the IRS detected and mitigated 

2,534 phishing and malware sites and identified and responded to 147 cyber incidents, 104 of 

which involved common threats such as removable media, email, and web-based activity. The IRS 

also implemented 12,527 content filtering restrictions to mitigate internet content deemed a 

security risk to IRS information systems.
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The IRS worked on several initiatives related to the Security Summit, a collaborative effort between the 

IRS, state tax administrators, and private-sector tax partners. In FY 2019, the IRS:

• Held its annual Security Summit meeting in December 2018. The Security Summit continues to 

demonstrate the strength of the public-private partnership to combat identity theft. 

• Conducted the fourth National Tax Security Awareness Week, with events across the country to 

remind taxpayers about the importance of data security and featured a daily series of national news 

releases and 36 press conferences and partner events. 

• Held an annual summer awareness campaign for tax professionals focusing on the 

“Taxes-Security-Together” Checklist, describing how to protect their tax clients’ sensitive tax 

data. The effort included a six-week series of news releases and continuing education sessions for 

tax professionals at the five major IRS Nationwide Tax Forums. 

 
IRS-79

FY 2021 Changes by Budget Activity

Dollars in thousands

Infrastructure FTE Amount

FY 2020 Enacted (Pre-IAT) $881,654 

Planned Interappropriation Transfer

FY 2020 Enacted $881,654 

Changes to Base:

Maintaining Current Levels (MCLs) $17,633 

Pay Annualization (3.1% average pay raise)

Pay Raise (1.0% average pay raise)

Non-Pay 17,633

Efficiencies/Savings ($6,200)

Space Optimization (6,200)

Subtotal FY 2021 Changes to Base $11,433 

FY 2021 Current Services $893,087

Program Increases:

Implementing the Taxpayer First Act 1,984 

Subtotal FY 2021 Program Increases $1,984 

Total FY 2021 Request (Before Cap) $895,071 

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $13,417

Percent Change FY 2021 Request over FY 2020 Enacted 1.52%
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2.1.6 – Budget and Performance Report and Plan

Dollars in thousands

Infrastructure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $833,846 $838,048 $856,655 $870,360 $891,140 $881,654 $895,071

Reimbursable Resources2 928 626 634 662 681 746 784 

User Fees2 999 

Budget Activity Total $834,774 $838,674 $857,289 $871,022 $892,820 $882,400 $895,856 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

Infrastructure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measure Actual Actual Actual Actual Actual Target Target Target

Rentable Square Feet per Person (Ot, L) 297 301 298 Indicator Indicator Indicator

Key: Ot - Output/Workload Measure L - Strategic Plan Goal

2G – Shared Services and Support ($1,063,984,000 in direct appropriations, and an estimated 

$45,514,000 from reimbursable programs): This budget activity funds policy management, IRS-wide 

support for research, strategic planning, communications and liaison, finance, human resources, and equity, 

diversity, and inclusion programs. It also funds printing and postage, business systems planning, security, 

legal services, and procurement. The program activities include: 

• National Headquarters Management and Administrationdirects the management activities of 

strategic planning, communications and liaison, finance, human resources, equity, diversity and 

inclusion programs, business systems planning, embedded training, and the Treasury Franchise 

Fund. It sets policies and goals, provides leadership and direction for the IRS, and builds partner 

relationships with key stakeholders (Congress, GAO, and OMB). It provides policy guidance for 

conducting planning and budgeting strategies, conducting analyses of programs and investments to 

support strategic decision-making, and developing and managing human resources. It also 

includes official reception and representation expenses.

• Facilities Management & Security Servicesprovides facilities and security services to deliver a 

safe, secure and optimal work environment to IRS employees.

• Procurement supports the procurement function of the IRS.

• Equity, Diversity and Inclusion Field Services provides staffing, training, and direct support to plan 

and manage the IRS’s Equity, Diversity and Inclusion program.

• Communications and Liaison coordinates local government and liaison relationships; handles 

congressional, state, and national stakeholder relationships and issues; coordinates cross-cutting 
IRS-81

issues, including managing audits and legislative implementation; handles national media contacts 

and local media relationships; and ensures IRS-wide compliance with disclosure and privacy laws.

• Employee Support Services plans and manages financial services, including relocation, travel, 

purchase cards, corporate express, and employee clearances. 

• Treasury Complaint Centers plan and manage the Treasury Complaint centers.

• Shared Support not provided by Facilities Management & Security Services provides resources for 

shared cross-functional support, such as postage meters, shredders, courier services, and post office 

boxes.

• Printing and Postage – Media and Publicationsprovides operating divisions with printing and 

postage, including shipping of taxpayer and internal-use materials.

• Statistics of Incomeprovides resources for researching annual income, financial, and tax data from 

tax returns filed by individuals, corporations, and tax-exempt organizations.

• Research provides resources for market-based research to identify compliance issues, for 

conducting tests of treatments to address noncompliance, and for the implementation of successful 

strategies to address taxpayer noncompliance behavior.

• Protection of Sensitive Information manages and oversees the staffing, training, equipment, and 

direct support for the protection of IRS employees, facilities, and assets, and the protection and 

proper use of identity information.

• W&I Business Modernization Support provides staffing, training, and support for W&I’s 

enterprise-wide business modernization efforts, including re-engineered business processes.

Description of FY 2019 Performance 

Through support activities that include management and administration of human resources and research,

Operations Support continues to provide shared services to all IRS programs. 

Human Capital 

The future of the IRS depends on a workplace culture that empowers employees to improve the taxpayer 

experience and uphold the tax code fairly. In FY 2019, the IRS: 

• Helped the IRS business units execute more than 2,400 external hiring actions.

• Implemented the Leadership Engagement Action Plan to enhance workplace morale and retention. 

• Fostered a robust IRS knowledge management effort to enhance succession planning and 

knowledge transfer for employees, which received multiple awards and recognitions. 
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• Worked to ensure employees were provided training and developmental opportunities to meet their 

job obligations and career aspirations. 

• Implemented a performance management module for executives in the Treasury-wide Integrated 

Talent Management (ITM) system. The IRS implemented a learning module in early FY 2020 and 

will implement modules in the future for employee performance management, workforce planning,

and succession planning.

Research 

The IRS invests in research projects to help its leaders make data and evidence-driven improvements to 

IRS operations and taxpayer services. In FY 2019, the IRS:

• Updated its Enterprise Research Plan, which describes the IRS’s most critically important 

research initiatives. 

• Expanded and formalized its data and analytics governance structure overseeing the coordination, 

decision-making, and alignment of data and analytics initiatives across the IRS. 

• Created a Learning Agenda Working Group to implement new requirements from the Foundations 

for Evidence-Based Policy Act. These include determining which policy questions and data are 

required to build the “evidence” needed for the IRS to make better decisions and policies that meet 

the changing needs and expectations of taxpayers and members of the tax community who serve 

taxpayers.

• Developed and deployed a graph analytics database environment supporting nearly 3,300 users 

across the IRS, including field revenue agents and officers. The IRS is using this graph 

environment to explore and analyze relationships between taxpayers, businesses, return preparers 

and personal devices to identify taxpayer noncompliance indicators that support IRS enforcement 

and identity theft efforts. 
IRS-83

FY 2021 Changes by Budget Activity

Dollars in thousands

Shared Services and Support FTE Amount

FY 2020 Enacted (Pre-IAT) 4,947 $1,012,154 

Planned Interappropriation Transfer

FY 2020 Enacted 4,947 $1,012,154 

Changes to Base:

Maintaining Current Levels (MCLs) $40,068 

Pay Annualization (3.1% average pay raise) 5,120 

Pay Raise (1.0% average pay raise) 4,993 

FERS Contribution Increase 7,553 

Non-Pay 7,031 

Additional Required Labor Costs 15,371 

Subtotal FY 2021 Changes to Base $40,068 

FY 2021 Current Services 4,947 $1,052,222

Program Increases:

Implementing the Taxpayer First Act 76 11,762

Subtotal FY 2021 Program Increases 76 $11,762

Total FY 2021 Request (Before Cap) 5,023 $1,063,984

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted 76 $51,830

Percent Change FY 2021 Request over FY 2020 Enacted 1.54% 5.16%
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2.1.7 – Budget and Performance Report and Plan

Dollars in thousands

Shared Services and Support FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $1,126,230 $1,090,192 $964,702 $920,283 $900,287 $1,012,155 $1,063,984 

Reimbursable Resources2 17,126 19,443 19,194 27,995 30,360 43,347 45,514 

User Fees2 1,768 1,000 1,000 1,000 

Budget Activity Total $1,145,124 $1,110,635 $984,896 $949,278 $930,647 $1,055,502 $1,109,498 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

2H – Information Services ($2,145,634,000 in direct appropriations, $21,952,000 in reimbursable 

resources, and $450,000,000 from user fees): This budget activity funds staffing, equipment, and related 

costs to manage, maintain, and operate the information systems critical to the support of tax administration 

programs. This includes the design and operation of security controls and disaster recovery planning. This 

budget activity funds the development and maintenance of the millions of lines of programming code that 

support all aspects and phases of tax processing and the operation and administration of mainframes, 

servers, personal computers, networks, and a variety of management information systems. The program 

activities include:

• Enterprise Program Management Office (EPMO)provides oversight and project integration into 

daily IT processes for large-scale development, modernization and enhancement projects. It 

enables a coordinated, cross-functional project planning, implementation and performance 

assessment effort aimed at improving IT systems quality, cost and delivery schedule. 

• Security Services ensures effective security policies and programs to safeguard taxpayer records, 

IRS employees, facilities, business processes, systems and other resources. The program is 

responsible for corrective action efforts to establish adequate IRS-wide security, including Security 

Policy Support and Oversight, Mission Assurance, and Modernization Security. 

• IT Executive Oversightprovides support to the immediate Office of the Chief Information Officer, 

and the Stakeholder Management (including program oversight). The program provides executive 

direction for the IT organization, enabling IT to be a customer-focused supplier of IT solutions that 

is responsive to customer business priorities and meets functional and operational needs 

effectively.

• Application Developmentperforms the analysis, design, development, testing, and implementation 

of about 85,000 application programs supporting critical tax processing, management information 

reporting and financial management support systems for the IRS. This program also supports 

external trading partner data exchanges with federal government agencies, state and local 
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governments, and other third-party entities. The program controls application source code and 

deploys applications to the production environment.

• Enterprise Operations provides efficient and reliable computing services for all IRS business 

entities and taxpayers including the deployment and maintenance of infrastructure that supports

critical tax processing, management information reporting, and financial management support 

systems for the IRS. It also includes a comprehensive disaster recovery capability to ensure 

continued operations in the event of a major interruption of service.

• Enterprise Network provides telecommunications service delivery to all customer segments, 

including management of day-to-day operations of the telecommunications environment. This 

includes the operation of equipment and services to meet business user needs and the execution of 

routine changes for scheduled and unscheduled modifications to the telecommunications 

infrastructure and applications. It addresses all phases of engineering, acquisition, implementation, 

and operation of telecommunications systems and services, including voice, video, and data 

communications. 

• Enterprise Services (ES) plans and manages service and delivery methods used across the IT 

organization, including defining the current and target technology architecture and developing the 

transition strategy towards the target environment. ES shares in the responsibility that translates 

enterprise and project objectives into targeted, actionable investments to provide the framework 

and direction for cohesive, successful modernization across the IT enterprise. ES also provides 

systems engineering services that promote standards-based, enterprise technology solutions and 

serves as the enterprise testing authority partnering with customers to improve the quality of IT 

systems, products and services. Also, ES provides shared infrastructure that leverages reusable 

engineering design patterns and best practices for standardized, virtual, and secure environments. 

These environments allow multiple BSM projects to develop, test, deploy, operate, and monitor in 

a common approach.

• End User & Network Services maintains the IRS automated business processes at headquarters and 

field sites, effectively allowing the IRS to fulfill its mission. The support includes technical 

systems and applications software support to end users, maintaining legacy operations, local and 

corporate systems administration activities, email and domain user account maintenance. This 

activity monitors IRS network and systems administration by utilizing automated management 

tools. It performs asset management activities, and maintenance of the voice and data 

infrastructure at the territory offices.

• Strategy and Planning provides the management and oversight of investments in IT, demand 

analysis, project reporting, portfolio management, strategic planning, financial management, 

acquisition planning, and other IT operational priorities. It also provides expertise for requirements 

guidance, processes, procedures, and tools that allows for transformation of the IT enterprise. 
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• Information Technology Security Certification and Accreditation provides design and operations of 

security controls and the technical mechanisms used by the IRS systems and applications as part of 

the development of the system security plan, system risk assessment, and IT contingency plan. It 

also supports security testing and evaluation as part of the certification process, including time 

preparing system documentation, interviewing contractors, and responding to information requests. 

• Disaster Recovery supports activities related to Enterprise Disaster Recovery planning, including 

testing, evaluations, plan development, and technical and business assessments. 

• Infrastructure Currency (IC) funds the upgrade or replacement of outdated and aged technology 

solutions related to the IT hardware, software and applications development product portfolio. 

• IT Infrastructure centralizes the resources achieved through efficiencies in various parts of IT to 

ensure that replacement of the aging infrastructure is addressed corporately. 

Description of FY 2019 Performance

The Percent of Aged Hardware measure shows the quantity of IT hardware in operation past its useful life 

as a percentage of total hardware in use. The IRS reducedthe percentage of aged hardware within the IT 

environment from 45.5 percent at the end of FY 2018 to 31 percent at the end of FY 2019. This is a 

reduction of nearly 36,000 aged assets during the fiscal year through efforts such as refreshing employee 

workstations, upgrading aged server operating systems and related aged hardware, and phasing out old 

equipment.

For FY 2020 and FY 2021, the IRS will lower the target to 30 percent, as the IRS continues to dedicate 

funding to reducing the backlog. The IRS will monitor progress against FY 2020 aged hardware 

replacement targets. The industry standard for aged hardware is in the range of 20 – 25 percent. 

0

50000

100000

150000

200000

2016 2017 2018 2019

Percent of Aged Infrastructure

Amount of Aged Infrastructure Total Infrastructure

52.2% 52.3%

45.5%

31.0%
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FY 2021 Changes by Budget Activity

Dollars in thousands

Information Services FTE Amount

FY 2020 Enacted (Pre-IAT) 7,023 $1,914,691 

Planned Interappropriation Transfer 76,500 

FY 2020 Enacted 7,023 $1,991,192

Changes to Base:

Maintaining Current Levels (MCLs) $73,165 

Pay Annualization (3.1% average pay raise) 8,775 

Pay Raise (1.0% average pay raise) 8,558 

FERS Contribution Increase 12,590 

Non-Pay 17,178 

Additional Required Labor Costs 26,064 

Efficiencies/Savings ($77)

Increase e-File Savings (77)

Subtotal FY 2021 Changes to Base $73,088

FY 2021 Current Services 7,023 $2,064,280

Program Increases:

Implementing the Taxpayer First Act 94 81,354 

Subtotal FY 2021 Program Increases 94 $81,354 

Total FY 2021 Request (Before Cap) 7,117 $2,145,634 

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted 94 $154,442

Percent Change FY 2021 Request over FY 2020 Enacted 1.34% 7.76%
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2.1.8 – Budget and Performance Report and Plan

Dollars in thousands

Information Services FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $1,641,360 $1,883,667 $1,950,191 $2,390,357 $2,126,973 $1,991,191 $2,145,634 

Reimbursable Resources2 24,262 19,660 35,307 40,600 27,153 20,907 21,952 

User Fees2 373,610 263,250 201,584 204,032 222,399 423,995 450,000

Budget Activity Total $2,039,232 $2,166,577 $2,187,082 $2,634,989 $2,376,525 $2,436,093 $2,617,586

1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursables and user fees.

Information Services FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Aged Hardware (Ot, L) 56.5% 52.2% 52.3% 45.5% 31.0% 43.8% 30.0% 30.0%

Key: Ot - Output/Workload Measure L - Strategic Plan Goal

 


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Business Systems Modernization

Appropriation Description

The Business Systems Modernization (BSM) appropriation provides resources for the planning and capital 

asset acquisition of IT to modernize the IRS business systems. 

The BSM budget request for FY 2021 is $300,000,000 in direct appropriations and 517 FTE, excluding the 

proposed program integrity cap adjustment. This amount is an increase of $120,000,000, or 66.7 percent, 

and 91 FTE more than the FY 2020 enactedlevel of $180,000,000 and 426 FTE.
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2.1 – Budget Adjustments Table

Dollars in thousands

Business Systems Modernization

Summary of Proposed FY 2021 Request FTE Amount

FY 2020 Enacted (Pre-IAT) 426 $180,000 

Planned Interappropiation Transfer

FY 2020 Enacted 426 $180,000 

Changes to Base:

Maintaining Current Levels (MCLs) $6,201 

Pay Annualization (3.1% average pay raise) 547 

Pay Raise (1% average pay raise) 533 

FERS Contribution Increase 989 

Non-Pay 2,188 

Additional Required Labor Costs 1,944 

Subtotal FY 2021 Changes to Base $6,201 

FY 2021 Current Services 426 $186,201 

Program Changes:

Program Increases

Integrated Modernization Business Plan 91 $113,799 

Subtotal FY 2021 Program Increases 91 $113,799 

Total FY 2021 Budget Request 517 $300,000 

See footnotes in 1.1 -- Appropriations Detail Table
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2.2 – Object Classification (Schedule O) Obligations

Dollars in thousands

Business Systems Modernization

Object Classification

FY 2019

Actuals

FY 2020

Enacted

FY 2021

Request

11.1 Full-Time Permanent Positions 57,564 53,831 64,308

11.3 Other than Full-Time Permanent Positions 543 52 53

11.5 Other Personnel Compensation 575 467 1,052

11.9 Personnel Compensation (Total) 58,682 54,350 65,413

12.1 Personnel Benefits 17,878 16,235 20,262

Total Personnel and Compensation Benefits $76,560 $70,585 $85,675

21.0 Travel 221 453 664

25.1 Advisory & Assistance Services 46,009 92,415 176,916

25.2 Other Services 17 80

25.3 Purchase of Goods & Services from Govt. Accounts 6 9

25.7 Operation & Maintenance of Equipment 11 1,210 2,406

26.0 Supplies and Materials 17 22

31.0 Equipment 1,652 15,297 34,228

Total Non-Personnel $47,893 $109,415 $214,325

New Appropriated Resources $124,453 $180,000 $300,000

Budget Activities:

IT Investments 124,453 180,000 300,000

New Appropriated Resources $124,453 $180,000 $300,000

FTE 445 426 517

See footnotes in 1.1 -- Appropriations Detail Table

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
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2.3 – Appropriation Detail Table

Dollars in thousands

Business Systems Modernization Change % Change

Appropriated Resources

FY 2019

Operating Plan

FY 2020

Enacted

FY 2021

Request

FY 2020 to FY 2021 

Request

FY 2020 to FY 2021 

Request

New Appropriated Resources: FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Business Systems Modernization 445 150,000 426 180,000 517 300,000 91 120,000 21.36% 66.67%

Subtotal New Appropriated Resources 445 $150,000 426 $180,000 517 $300,000 91 $120,000 21.36% 66.67%

Other Resources:

User Fees 89,713 102,305 (102,305) -100.0%

Recovery from Prior Years 1,067 2,577 2,577 

Recoveries Paid 260 260 

Unobligated Balances from Prior 

 Years 15 129,643 15 28,048 15 30,242 2,194 7.82%

Subtotal Other Resources 15 $220,423 15 $133,190 15 $33,079 ($100,111) -75.16%

Total Budgetary Resources 460 $370,423 441 $313,190 532 $333,079 91 $19,889 20.63% 6.35%

See footnotes in 1.1--Appropriations Detail Table

2I – Business Systems Modernization ($300,000,000 in direct appropriations): This budget 

activity funds the planning and capital asset acquisition of information technology to modernize IRS 

business systems and processes, including labor and related contractual costs, in support of the IRS 

mission.

The IRS is implementing its multiyear modernization plan to address the long-term sustainability and 

affordability of its technological environment, eliminating organizational silos and driving efficiencies and 

cost savings throughout the enterprise. The plan defines the scope of capabilities, sets timelines and 

targets, describes milestones, and includes outcome measures for each investment.

Funding for the third year (FY 2021) of the plan is reflected in four pillars (Taxpayer Experience; Core 

Taxpayer Services and Enforcement; Modernized IRS Operations, and Cybersecurity and Data Protection),

and two supporting projects (Architecture Integration and Management and Core Infrastructure).
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Taxpayer Experience: $50 million / 124 FTE

Web Applications (WebApps) ($25 million / 88 FTE) – WebApps delivers a secure, unified online 

experience, accessible through a single online account. It provides taxpayers and business users with 

accurate account information, transparent explanations, and next steps to resolve tax-related issues, along 

with full-service payment options. This allows taxpayers to resolve more issues online with fewer direct 

interactions with the IRS over the telephone and in person. In FY 2021, WebApps will continue to 

develop the capability for taxpayers to create and submit online installment agreements and make 

payments directly from their online account. In addition, in FY 2021, Web Apps will develop new Tax 

Pro capabilities for Power of Attorney and Disclosure Authorization. Tax Pro capabilities will provide 

taxpayers and taxprofessionals a digital service channel to establish and manage taxpayer/tax 

professional authority relationships. 

Expected Benefits:

• Enable taxpayers to view payment plan status and determine eligibility for payment plans within 

online account, which is the first step towards allowing taxpayers to create a payment plan for 

taxes owed; 

• Enable taxpayers to view details for all electronic payments that are pending and scheduled for 

future dates in their online account;

• Establish, in near real-time, a taxpayer/ tax pro authorization record without the need for manual 

review; and,

• Enable multi-faceted views to both parties of the taxpayer/tax pro authorized relationship 

coupled with the ability to revoke/withdraw from the relationship, to allow the parties to 

proactively manage data access and representational rights as well as potentially mitigate 

exposure to fraud.

Taxpayer Digital Communications Outbound Notification ($10 million / 18 FTE) – Taxpayer Digital 

Communications Outbound Notification (TDC-ON) will improve the taxpayer experience with easier, 

more efficient interactions with the IRS through the development of reliable, user-friendly, secure online 

services. Funding will be used to develop digital notices and make them available through the online 

account for taxpayers who prefer that channel over mailed correspondence.

Expected Benefits:

• Increase taxpayer response rate to notices; 

• Lower the burden on taxpayers and the IRS for tax compliance and enforcement; and,

• Provide easier, more efficient interactions with the IRS.
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Live Assistance ($15 million / 18 FTE) – Live Assistance will improve the taxpayer experience in the IRS 

contact center environment by providing enhanced capabilities and adding new channels to interact with 

the IRS. The Live Assistance program will expand Customer Callback capability allowing taxpayers to 

keep their place in queue without remaining on the phone. The Live Chat capability will allow taxpayers 

to interact with assistors in a web-based chat session. Other capabilities may include: machine learning 

and natural language understanding to provide a capability to quickly answer common taxpayer inquiries 

and improve call routing and agent assist to ensure all IRS assistors are able to deliver enhanced expert 

service to customers, empowered with improved relevant information for skilled, real-time responses. 

Funding in FY 2021 will build an enterprise callback solution to support Live Assistance capabilities and 

expand callback capacity to support the new channels in support of toll-free taxpayer demand.

Expected Benefits:

• Reduce taxpayer burden by providing a call back option for services instead of waiting on the 

phone for an assistor to become available; 

• Modernize the IRS contact center infrastructure and expanded Live Assistance capabilities like call 

back, live chat, natural language processing and automated chat, machine learning and natural 

language processing; and

• Enhancing the speed and accuracy of customer experience and allowing faster resolution to 

taxpayer inquiries.

Core Taxpayer Services and Enforcement: $164 million / 303 FTE

Customer Account Data Engine 2 (CADE2) ($100 million) / 203 FTE) – Since the Individual Master File 

(IMF) was built almost 60 years ago, the IRS has made additions to legacy base code to reflect annual tax 

law changes. As a result, the base code of IMF includes embedded business logic written in outdated 

programming languages that only an extremely small number of IRS personnel understand. Funding will 

be used to re-engineer the IMF core components of posting, settlement and analysis functions for 

individual taxpayer accounts by applying modern programming languages to the most complex areas of 

the Individual Master File.

Expected Benefits:

• Simplify the modernized logic by eliminating obsolete functionality;

• Reduce the burden of ongoing maintenance and routine updates due to tax law changes 

through a common data model; 

• Enable enhanced data accessibility both within the IRS and for taxpayers, while implementing 

state of the art financial requirements and security controls; 
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• Support business units to deploy advanced analytical capabilities addressing key issues of 

compliance, fraud, and identity theft; and

• Complete foundational modernization necessary to enable future technology enhancements to 

improve the taxpayer experience by enabling real-time processing and digital services updates 

such as immediate update to balances after payment is made. 

Enterprise Case Management ($64 million / 99 FTE) – Enterprise Case Management (ECM) will 

modernize, upgrade, and consolidate existing case management capabilities. The IRS has more than 

60 legacy case management systems built on aging platforms. These legacy systems have limited 

connectedness to enable the transfer and sharing of case information, resulting in taxpayer and IRS 

employee frustration as they must often work with multiple offices/systems to work and resolve cases. 

The ECM platform will have a common cloud infrastructure, automated business functions and services 

that will allow for transfer of cases across business units. In FYs 2020-2021, ECM expects to deliver its 

first release, centering on delivering the ECM technical foundation and initial case management 

capabilities to support modernized business processes. ECM anticipates moving Tax Exempt & 

Government Entities (TE/GE) as its first business unit. 

Expected Benefits:

• Provide taxpayers with better service as ECM will empower employees to resolve cases more 

rapidly in a simplified technical environment designed to drive efficiency and collaboration.

• Reduce process redundancies to improve transparency and timeliness, and to reduce the risk of 

systems failure impeding revenue collection.

• Increase process and case management efficiencies by creating one solution for all case types, 

treatment streams, and operating divisions.

• Increase integration among existing case management programs, migrate legacy system users 

to a standardized enterprise-wide solution for case management, and reduce fragmentation of 

both business and IT processes across legacy applications.

• Standardize system design for increased taxpayer information security and shortened 

development milestones.

• Modernize data collection and retrieval capabilities and processes for faster authorized access 

to case information.

• Enable retirement of components of legacy case management systems.
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Modernized IRS Operations: $30 million / 29 FTE

Robotic Process Automation ($5 million / 6 FTE) – Robotic Process Automation (RPA) is the 

implementation of smart software designed to perform high-volume, repeatable tasks that are normally 

labor intensive. The software would be capable of navigating across different IT systems, mimicking the 

way staff perform certain work functions. These new tools will record the actions an employee takes to 

complete a computer-based taskand then rapidly replicate those actions as many times as necessary, with 

increased accuracy. This will allow IRS staff to focus on other work. 

Expected Benefits:

• Achieve a 10 percent efficiency gain on work processes where robotic process automation is 

applied;

• Make labor resources available for more complex, value-add activities;

• Increase self-service options for employees; 

• Enhance business processes to ensure better accuracy; and

• Enhance speed and accuracy of business process execution results leading to improved taxpayer 

service.

Application Program Interface (API) ($5 million / 6 FTE)– APIs are a set of protocols, routines, functions 

and/or commands that programmers use to develop software or facilitate interaction between distinct 

systems. In response to growing demands to integrate systems internally and externally, the IRS plans to 

expand the use of APIs. Using modern approaches for exchanging data, the IRS will provide expanded 

integration and data access to taxpayers and third parties, such as business and government entities using 

APIs. API is standard reusable services where interfaces built once can be reused for other future 

development efforts. API will allow the IRS to reduce the complexity within the infrastructure 

environment, improve management and monitoring, improve security of systems to systems interfaces, 

versus the current model of creating, managing, and sending stored data extracts.

Expected Benefits:

• Improve data exchange capabilities with growing external demand for IRS data;

• Enable increased innovation;

• Enhance security posture for internal and external data sharing; and

• Reduce complexity. 

Cloud Execution ($5 million / 3 FTE) – Enterprise Cloud Program (EnCP) refers to the implementation of 

the IRS cloud strategy, leveraging a defined roadmap and process to ensure an effective and accelerated 

transition to the cloud. 
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Expected Benefits:

• Improve time-to-market;

• Increase operational efficiency and resilience;

• Enable increased innovation; and

• Enhance or maintain appropriate security posture.

NextGen Infrastructure (NGI) ($15 million / 14 FTE) – NGI addresses the infrastructure base (i.e. 

hardware, software, network resources and services) at the foundation of IRS critical systems. NGI is 

focused on the identification, evaluation, and selection of new and emerging technologies and services to 

support a resilient, scalable, and secure infrastructure. Infrastructure improvements are necessary to 

effectively operate a large-scale hybrid on-premise/cloud environment, support agile software 

development and delivery practices, and support comprehensive and robust security practices.

Expected Benefits:

• Reduce the infrastructure footprint;

• Increase the speed of provisioning of infrastructure and software;

• Increase system availability and reliability; and 

• Improve time-to-delivery of business capabilities.

Cybersecurity and Data Protection: $46 million / 30 FTE

The IRS defends against more than one million cyberattacks daily and has operated strong network 

perimeter defenses to mitigate threats, detect vulnerabilities, and monitor network security. This 

investment will fund:

Vulnerability and Threat Management ($20 million / 10 FTE) – The effectiveness of vulnerability and 

threat management depends on the organization’s ability to keep up with current security threats and 

trends. Investment in this area allows for expanded capabilities and improved execution for the 

identification and mitigation of vulnerabilities across the disparate, geographically dispersed, IRS 

technology infrastructure.
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Expected Benefits:

• Implement processes to improve the integration of security into the system development lifecycle 

and automate security testing;

• Proactively identify emerging insider threats using real-time intelligence information;

• Apply use cases to enhance security audit analytics and compliance;

• Enhance data protection through the implementation of encryption for data collection, cleansing, 

and events management; and

• Reduce risk of data leaks.

Identity & Access Management ($12 million / 11 FTE) – The risk of unauthorized access to tax accounts 

continues to grow as the IRS focuses its efforts on delivering online tools to taxpayers. The IRS must 

control information about users on computers, including information that authenticates the identity of a 

user and information that describes information and actions they are authorized to access and/or perform.

In addition, the IRS must ensure appropriate access to resources. This covers issues such as how users 

gain an identity, the protection of that identity, and the technologies supporting that protection (e.g., 

network protocols, digital certificates, passwords, etc.).

Expected Benefits:

• Provide user identity control, privileged access protection, and critical data security; 

• Provide security compliance for building access; 

• Develop new Digital Identity Risk Assessment components for transactions that will accept 

Federated Identities; and

• Ensure identification of authorized hardware and software assets to continuously ensure they are 

properly configured with vulnerabilities mitigated. 

Security Operations and Management ($14 million / 9 FTE)– The IRS engages in a collection of 

associated security activities that maintain the ongoing security posture. It consists of the monitoring, 

maintenance and management of the security aspects of the IT environment, its people, and its 

processes.

Expected Benefits:

• Deliver a Next Generation Secure Operations Center (SOC) to increase synergies and enhance 

rapid response activities;
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• Improve incident analysis and forensic investigation through increased capabilities for capturing 

network activity; 

• Restrict network access to only approved users and devices; and

• Protect High Value Assets (HVA) by blocking network access for unauthorized users.

Supporting Projects: $10 million / 31 FTE

Architecture Integration and Management (AIM) ($6 million / 19 FTE)– AIM provides engineering 

management capabilities essential to delivering a program of BSM’s magnitude and complexity. It 

also delivers IRS systems strategy, architecture, and engineering capabilities for the major 

modernization projects across all technology platforms; IT infrastructure, business applications, data 

management, and IT security. The AIM program translates enterprise and project objectives into 

targeted, actionable investments to provide the framework and direction for cohesive, successful 

modernization.

Core Infrastructure (CORE) ($4 million / 12 FTE)– Core Infrastructure provides mission-critical 

services for designing, engineering, testing, and deploying standardized, consolidated, virtual, and 

secure modernized development and production environments for use by projects in the BSM 

portfolio. 

Note: Effective FY 2021, enterprise-wide costs for Architecture, Integration, and Management and Core 

Infrastructure will be paid from the Operations Support appropriation. BSM-specific projects receiving 

services from Core and AIM will continue to be funded from the BSM appropriation.

Description of FY 2019 Performance 

The IRS’s modernization efforts focus on building and deploying advanced information technology 

systems, processes, and tools to improve efficiency and productivity. In FY 2019, IRS delivered 19 

modernization portfolio milestones at approximately $291 million. IRS also made incremental progress on 

27 additional milestones, which will continue to be worked and delivered into FY 2020 and beyond. 

Achievements for FY 2019 include: 

• Completing three scenario-based deliveries for the CADE2 program, which validates the agency’s 

overall approach to modernizing this critical functionality;

• Reduced caller wait times as 77 percent of customers chose the callback option on the IRS Balance 

Due application;

• Provided quick service as tax chat assistors handled 100k text chats;

• Adopted first steps of using standard technology stacks;
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• Implementing the strategy for Next Generation Enterprise Security Audit Trails;

• Delivered a strategy to convert legacy code targeting a scope of 10 million source lines of code;

• Strengthened the agency’s fraud detection capabilities through the Return Review Program by

protecting $2.08B of revenue from attempted fraud between January and September 2019; and

• Deployed the Procurement Vendor Compliance Bot lead to aggregate time savings of up to 17,625 

hours per year.

In FY 2019, the IRS’s key accomplishments included three completed Taxpayer Experience milestones:

• WebApps - ID Verify Tool: This tool provides an online option for taxpayers whose return has 

been selected as a potential identity theft return by the IRS’s Taxpayer Protection Program. With 

the ID Verify Tool, taxpayers can provide additional identity verification information online rather 

than on the phone or in person. From February 1 through August 29, 2019, over 131,000 taxpayers 

successfully logged in and more than 111,000 (85 percent) of unique users were able to resolve 

their account issue online.

• Live Assistance – Callback - External Application - Balance Due: This feature gives taxpayers on 

the IRS Toll-Free Balance Due line a callback option when calling to discuss or pay a balance due 

rather than having to wait on the phone for an IRS CSR. When offered, approximately 77 percent 

of taxpayers chose to receive a call back and over 90 percent of callbacks successfully reconnected 

the taxpayer with an IRS CSR.

• Live Assistance - Callback - Internal Application - IRS IT Help Desk: This new feature saves staff 

time by providing a callback option for IRS employees calling the internal help desk for IT 

assistance with their workplace technology.
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The 2020 and 2021 targets, which are 90 percent of major IT investments for both BSM and non-BSM 

projects, will be within 10 percent of the cost variance and the schedule variance. 

Major IT (BSM and Non-BSM) Investments

Fiscal Year Percent within +/- 10% Cost 

Variance

Percent within +/- 10% 

Schedule Variance

2019 88.9% 88.9%

Percent of Major IT Investments within +/- 10 percent Cost Variance at the Investment Level: 16 of 

18 major investments (88.89 percent) were within the cost variance threshold at the close of the fourth

quarter. Shown below are the investments falling short of the cost variance target.

• Account Management Services (AMS): The cost underrun was caused by the Account

Management Services project redirecting funds from October 2018 to January 2019 to support tax 

reform and subsequently, required less labor than what was allocated for the July mid-year Release 

project. 

• Foreign Account Tax Compliance Act (FATCA): The cost underrun was because the project 

was ahead of schedule as contractors faced fewer problems than expected.

Percent of Major IT Investments within +/- 10 percent Schedule Variance at the Investment Level: 

16 of 18 major investments (88.89 percent) were within the schedule variance threshold at the close of the 

fourth quarter. Shown below are the investments falling short of the 90 percent schedule variance target.

• FATCA: The schedule variance is showing ahead of schedule due to no priority defects which 

would have required additional time and resources to resolve. Improvements in the quality of 

Enterprise Life Cycle documentation pre-work activities, and the improved MS4b process to 

finalize the Cybersecurity Concurrence Memo also aided in the early completion.

• IRS End User Systems and Services: The ahead of schedule variance is due to the scanners and 

workstations refresh projects combining resources from multiple organizations to achieve a faster 

than projected deployment.

The IRS will continue to closely monitor cost and schedule reporting for investments in FY 2020 and 

FY 2021 to improve current performance levels for this measure.
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FY 2019 - FY 2021 IRS Integrated Modernization Business Plan Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2019

 Actual Spend

FY 2020 

Funding and 

Projected 

Spend

FY 2021 

President's 

Budget 

Request

FY 2019 Appropriation / FY 2020 Appropriation / FY 2021 President's Budget 150,000 180,000 300,000

Carryover balances 133,530 30,000 0

User Fees 99,000 102,300 0

Total Funding $382,530 $312,300 $300,000

Capital 264,584 222,950 213,201

Support 544 742 1,123

Labor 79,745 76,608 85,676

Subtotal Spend 344,873 300,300 300,000

Management Reserve 0 12,000 0

 FTE 459 461 517

Total Spend $344,873 $312,300 $300,000

Web Applications $24,081 $25,000 $25,000

Capital 9,210 9,777 9,732

Support 269 350 395

Labor 14,602 14,873 14,873

FTE 88 88 88

Taxpayer Digital Communications Outbound Notification (TDC-ON) $5,360 $3,000 $10,000

Capital 5,269 2,500 6,617

Support 0 0 150

Labor 91 500 3,233

FTE 1 3 18

Live Assistance $5,000 $200 $15,000

Capital 4,889 0 12,431

Support 0 0 26

Labor 111 200 2,543

FTE 1 1 18

Taxpayer Experience - Subtotal $34,441 $28,200 $50,000

FTE 90 92 124

Customer Account Data Engine (CADE 2) $80,878 $100,000 $100,000

Capital 57,640 66,188 66,188

Support 45 72 72

Labor 23,193 33,740 33,740

FTE 133 203 203

Enterprise Case Management $59,531 $66,200 $64,000

Capital 46,081 50,000 47,160

Support 204 200 300

Labor 13,246 16,000 16,540

FTE 76 96 99

Return Review Program $34,682 $0 $0

Capital 27,353 0 0

Support 5 0 0

Labor 7,324 0 0

FTE 41 0 0

Core Taxpayer Services and Enforcement - Subtotal $175,091 $166,200 $164,000

FTE 250 300 303

Taxpayer Experience

Providing easy access to taxpayer information via digital channels. Funding will drive the IRS transition 

to digital government and support the long-term vision of migrating services from expensive traditional 

channels to the internet. To keep pace with the ever changing state of web technology and increasing 

taxpayer demand for IRS service, the IRS must create and enhance online self-service capabilities for 

taxpayers, tax practitioners, and internal IRS stakeholders. 

Providing digital notices through the secure messaging platform to taxpayers who prefer that channel 

over mailed correspondence.

Implementation of Call Center technologies to improve the taxpayer experience. This includes both 

taxpayer-facing capabilities and infrastructure improvement to support the capabilities. Live Assistance 

capabilities may include callback, live chat, automated chat, natural language processing, etc.

Core Taxpayer Services and Enforcement

Providing modernized individual tax processing. CADE 2 will continue work on completion of Java code 

conversion to modernize Individual Master File core components. The modernization: enables enhanced 

data accessibility across the organization and for online taxpayer services; implements the latest financial 

requirements and security controls; and, supports business units to deploy advanced analytical 

capabilities addressing key issues of compliance, fraud, and identity theft.

Providing a modernized case management platform. Working cases more efficiently so taxpayer burden 

is lessened and employee productivity is increased. ECM is a business-driven transformation program 

that addresses the need to modernize, upgrade, and consolidate case management systems with similar 

functionality in the IRS environment. Continuously deliver incremental capabilities and features that allow 

Business Operating Divisions (BODs) to drive migration of users to the new ECM platform in order to 

improve taxpayer service. In FY 20/21, ECM expects to deliver its first release, centering on delivering the 

ECM technical foundation and initial case management capabilities to support modernized business 

processes. Subsequent releases in FY 2021 and beyond will deliver integration with data sources critical to 

case management and delivery of additional case management capabilities to users in all Business 

Operating Divisions.

Providing leading-edge technologies to advance the IRS effectiveness in detecting, addressing, and 

preventing tax refund fraud in protecting U.S. Treasury revenue. 
IRS-103

FY 2019 - FY 2021 IRS Integrated Modernization Business Plan (Continued) Pillar

Business Systems Modernization

Dollars in thousands

Funding

Category1

FY 2019

 Actual Spend

FY 2020 

Funding and 

Projected 

Spend

FY 2021 

President's 

Budget 

Request

Robotics Process Automation $5,121 $1,000 $5,000

Capital 4,792 500 3,931

Support 5 0 25

Labor 324 500 1,044

FTE 2 3 6

Application Program Interface (API) $0 $0 $5,000

Capital 0 0 3,904

Support 0 0 9

Labor 0 0 1,087

FTE 0 0 6

Cloud Execution $5,394 $2,500 $5,000

Capital 4,998 2,000 4,451

Support 3 0 5

Labor 393 500 544

FTE 2 3 3

Next Generation Infrastructure $9,821 $300 $15,000

Capital 9,315 0 12,442

Support 3 0 21

Labor 503 300 2,537

FTE 3 2 14

Modernized IRS Operations - Subtotal $20,336 $3,800 $30,000

FTE 6 8 29

Vulnerability and Threat Management $21,389 $34,400 $20,000

Capital 21,389 32,765 18,365

Support 0 50 50

Labor 0 1,585 1,585

FTE 0 10 10

Identity and Access Management $18,994 $16,000 $12,000

Capital 18,994 14,080 10,080

Support 0 20 20

Labor 0 1,900 1,900

FTE 0 11 11

Security Operations and Management $20,970 $14,600 $14,000

Capital 20,970 13,040 12,900

Support 0 50 50

Labor 0 1,510 1,050

FTE 0 9 9

Cybersecurity and Data Protection - Subtotal 61,353 65,000 46,000

FTE 0 30 30

Architecture, Integration, and Management 2 $35,639 $26,500 $6,000

Capital 27,020 23,500 3,000

Support 10 0 0

Labor 8,609 3,000 3,000

FTE 48 19 19

Core Infrastructure 2 $18,013 $10,600 $4,000

Capital 6,664 8,600 2,000

Support 0 0 0

Labor 11,349 2,000 2,000

FTE 65 12 12

Subtotal Supporting Projects $53,652 $37,100 $10,000

FTE 113 31 31

Modernized IRS Operations

Robotic Process Automation (RPA) has emerged as an effective enabling technology to gain efficiencies by 

automating repetitive, rule-based, manual tasks and mitigating human error risks. Combining RPA with 

Artificial Intelligence (AI) has further enhanced opportunities to empower organizations to take on more 

complex processes and gain value through cognitive automation. The goal of the RPA program is to build 

the capability (i.e.; technology, people, and processes) for IRS to take advantage of these emerging 

technologies. Toward this goal, IRS is pursuing a multiyear investment plan that would prove the value 

through execution of strategically selected pilot projects, establish an initial operating capability through 

FY 2021 and, scale services to provide full enterprise-wide operational capability in FY 2022.

APIs are a set of protocols, routines, functions and/or commands that programmers use to develop 

software or facilitate interaction between distinct systems. In response to growing demands to integrate 

systems internally and externally, the IRS plans to expand the use of APIs across its ecosystem. 

Cloud Execution will result in improved “time to market” agility, increased operational efficiency and 

resilience, increased innovation, and enhanced or maintained security posture by migrating workload to 

cloud platforms and services. 

A series of packaged initiatives to support a more efficient, scalable, and flexible architecture 

implemented through advanced IT infrastructure tools and technologies (e.g., Standard Stacks, Enterprise 

Storage Solution). Implementing the Next Generation Infrastructure initiative encompasses 

transformation of compute, network, and storage activities—along with DevOps—to automate software 

delivery and infrastructure changes. IRS will also continue to convert legacy code to modern languages.

1

 Capital Investment funding: capital and contractor labor costs. Support funding: training, travel, supplies costs. Labor funding: IRS employee pay and benefits costs. FTE: FY 2021 

Initiative FTEs are costed at 1/2 year hiring, which equates to 0.5 FTEs per position. Cybersecurity and Data Protection

Enable proactive threat and vulnerability identification using real-time intelligence information and 

analytics, enhance security testing and process automation, protect sensitive data at rest through 

encryption, and enhance both application and infrastructure audit capabilities to detect breaches and 

mitigate internal and external threats effectively.

Prevent compromises to taxpayer and other sensitive data by establishing trusted and streamlined access 

to information through implementing Identity Access Management, Infrastructure Integrity, and Privilege 

Management capabilities. Conduct Digital Identity Risk Assessments and provide identity proofing and 

authentication in compliance with NIST 800-63-3.

Enhance ability to secure taxpayer data and systems through investing in data collection, management, 

and analysis capabilities to achieve a level of situational awareness that enables us to understand both 

our current environment and known threats, while accurately predicting and responding to future 

threats. Block network access for unauthorized users and devices.

 Supporting Projects

Provide system engineering management capabilities, including systems strategy, architecture, and 

engineering capabilities, across IT Infrastructure, Business Applications, Data Management, and IT 

Security. Provide portfolio control and management processes and tools, including governance, 

enterprise lifecycle support, tiered program management, and configuration/change management.

Provide shared infrastructure that leverages reusable engineering design patterns and best practices for 

standardized, virtual, and secure environments. These environments allow multiple BSM projects to 

develop, test, deploy, operate, and monitor in a common approach. 

2 Note: Effective FY 2021, enterprise-wide costs for Architecture, Integration, and Management and Core Infrastructure will be paid from the Operations Support appropriation. BSMspecific projects receiving services from Core and AIM will continue to be funded from the BSM appropriation. 
IRS-104

FY 2021 Changes by Budget Activity

Dollars in thousands

Business Systems Modernization FTE Amount

FY 2020 Enacted (Pre-IAT) 426 $180,000 

Planned Interappropriation Transfer

FY 2020 Enacted 426 $180,000 

Changes to Base:

Maintaining Current Levels (MCLs) $6,201 

Pay Annualization (3.1% average pay raise) 547 

Pay Raise (1.0% average pay raise) 533 

FERS Contribution Increase 989 

Non-Pay 2,188 

Additional Required Labor Costs 1,944 

Subtotal FY 2021 Changes to Base $6,201 

FY 2021 Current Services 426 $186,201

Program Increases:

Integrated Modernization Business Plan 91 113,799 

Subtotal FY 2021 Program Increases 91 $113,799 

Total FY 2021 Request (Before Cap) 517 $300,000 

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted 91 $120,000

Percent Change FY 2021 Request over FY 2020 Enacted 21.36% 66.67%
IRS-105

2.1.9 – Budget and Performance Report and Plan

Dollars in thousands

Business Systems Modernization FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources1 $107,746 $190,945 $166,263 $110,000 $150,000 $180,000 $300,000 

Reimbursable Resources2

User Fees 25,464 77,418 89,713 102,305 

Budget Activity Total $107,746 $190,945 $191,727 $187,418 $239,713 $282,305 $300,000 1

The FY 2015 - FY 2019 appropriated resources represent the approved operating plan including any inter-BAC transfers and interappropriation transfers.

2

The FY 2015 - FY 2019 columns represent realized resources for reimbursable resources and user fees.

Business Systems Modernization FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measures Actual Actual Actual Actual Actual Target Target Target

Percent of Major IT Investments within +/- 10% Cost 

Variance at the Investment Level (E)1 73.7% 76.2% 50.0% 72.2% 88.9% 90.0% 90.0% 90.0%

Percent of Major IT Investments within +/- 10% Schedule 

Variance at the Investment Level (E)1 89.5% 85.7% 88.9% 83.3% 88.9% 90.0% 90.0% 90.0%

Key: E - Efficiency Measure

1 Starting in FY 2015, the measure includes all major investments (BSM and non-BSM).



IRS-106

Section III – Supplemental Information

3.1 – Summary of Capital Investments

Introduction

The IRS information technology organization is a key enabler of efficient and effective tax administration. 

IT provides critical support as the IRS faces an increasingly complex tax administration environment. IT 

works to address evolving taxpayer expectations, frequent tax law changes, growing challenges in 

combating refund fraud and identity theft, workforce shortages, while achieving program and cost 

efficiencies. Challenges including aging infrastructure, insertion of emerging technologies, and expanding 

cybersecurity threats, further complicate the IT operating environment.

In July 2019, Congress passed the Taxpayer First Act, a wide-ranging law that touches multiple parts of the 

IRS and includes provisions that are designed to improve taxpayer service and ensure the IRS continues to 

enforce the tax laws in a fair, impartial manner. Section 2101 requires the IRS Chief Information Officer to 

develop and implement a multiyear strategic plan for the IRS’s information technology needs and the IRS 

expects to address the requirements in FY 2020. 

In FY 2020, the IRS will publish the IT Strategic Plan, which aligns with the IRS Strategic Plan 

(FY 2018 - FY 2022), and the requirements of the Taxpayer First Act and the IRS Integrated 

Modernization Business Plan. It will articulate a vision to strengthen and modernize the IRS IT 

environment, while supporting business objectives and enhancing taxpayer services. The Capital 

Investment Strategy outlines the technology initiatives and IT investments undertaken to achieve the IRS’s 

vision of a modern IT organization. 

IRS Integrated Modernization Business Plan

The IRS Integrated Modernization Business Plan supports the IRS’s mission to help America’s taxpayers 

understand and meet their tax responsibilities, while enforcing tax laws to ensure integrity and fairness for 

all. The modernization plan establishes a multi-year modernization approach to provide effective, reliable, 

IT solutions for taxpayer support to fulfill their tax obligations. The April 2019 plan set out four pillars 

(Taxpayer Experience; Core Taxpayer Services and Enforcement; Modernized IRS Operations, and 

Cybersecurity and Data Protection) and two supporting projects (Architecture Integration and Management 

and Core Infrastructure). It includes specific projects with timeframes and deliverables and serves as a 

guiding document for IRS IT modernization efforts. The IRS will also examine how the Taxpayer First 

Act requirements will affect IT modernization and will update the plan accordingly. 
IRS-107

MODERNIZATION 

PILLAR

KEY OBJECTIVES KEY PROGRAMS 

& INITIATIVES

Taxpayer Experience: 

Deliver a service 

experience comparable 

to private industry

• Help taxpayers resolve issues quickly and

efficiently

• Empower taxpayers with information about

their account, obligations, and payment options

• Make services available to customers when

they need them

• Protect taxpayer information and data

• Web Applications (WebApps)

• Taxpayer Digital Communications

• Outbound Notifications (TDC—ON)

• Live Assistance (Callback)

Core Taxpayer Services 

& Enforcement: 

Streamline and 

integrate IT programs 

that enable top- quality 

service

• Integrate tax processing systems to increase

the cost effectiveness of operations

• Enable real-time processing and increase

transparency of returns status

• Increase data usability and the use of data

analytics to combat fraud

• Customer Account Data Engine

(CADE) 2 Transition State 2 (TS2)

• CADE 2 Target State

• Enterprise Case Management (ECM)

• Real-Time Tax Processing (RTTP)

• Information Returns Processing

Modernized IRS 

Operations: Retire and 

decommission legacy 

systems in place of 

more sustainable 

infrastructure

• Reduce complexity of the technical

environment

• Leverage data to deliver secure, agile, and

efficient applications and services

• Strengthen organizational agility through

automation and streamlining processes

• Robotics Process Automation (RPA)

• Application Programming Interface

(API) Management

• Cloud Execution

• Next Generation Infrastructure

• Data Digitization

• Universal Data Hub / Analytics

Tools/Platform
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Cybersecurity & Data 

Protection: Continue to 

protect taxpayer data 

and address emerging 

threats

• Establish trusted and streamlined access to 

information through identity and access 

management technologies

• Proactively identify emerging threats and 

vulnerabilities through the use of real-time 

intelligence information and analytics

• Protect taxpayer data and systems via end-toend visibility and common platforms

• Vulnerability & Threat Management

• Identity & Access Management

(IAM)

• Security Operations & Management

Figure 4 – IRS Modernization Portfolio and Pillars

A. Taxpayer Experience

• Web Applications (Web Apps): These programs and initiatives improve interactions and 

communications across taxpayers, employers, the IRS, and third parties by providing a broad 

range of self-service options, establishing secure information exchange options, and building 

internal capabilities. By enabling authorized third parties and taxpayers to interact digitally 

with the IRS, the investment will provide a better user experience, achieve significant savings 

by moving some service interactions to lower cost channels, and deliver consistent data and 

services through reusable Application Programming Interfaces (APIs). Web Apps will 

transform the way the IRS does business by delivering a digital service that allows taxpayers to 

track and receive information they need when they need it.

• Taxpayer Digital Communications Outbound Notifications (TDC-ON): The program will 

improve the user experience through reliable, user-friendly, secure online services. For 

example, the IRS will develop digital notices through the secure messaging platform that 

provides communications to taxpayers who prefer that channel over mailed correspondence, 

including digital chat.

• Live Assistance – (Callback): Taxpayers will receive customer callback, engage a redesigned 

customer voice portal, and experience improved identity verification. Future live assistance 

enhancements will broaden service channels to include live text chat, virtual assistant 

capabilities, and video chat assistance.

B. Core Taxpayer Services and Enforcement

• CADE 2 Transition State 2 (TS2): The CADE 2 TS 2 environment provides capabilities that 

will help modernize the taxpayer account processing environment and develop an integrated, 

near real-time processing environment to support tax returns, information returns, payments, 

and other transactions, and will allow direct visibility and access to taxpayer account detail on 
IRS-109

a near real-time basis. A key project supporting CADE 2 TS 2 is the Individual Tax Processing 

Engine (ITPE) project, which will convert about 200,000 lines of legacy assembly language 

code to modern software language. This code conversion is a major milestone towards retiring 

the Individual Master File (IMF). The CADE 2 TS 2 will facilitate voluntary compliance and 

improve traceability of financial data from core accounting systems to IRS financial 

statements.

• Enterprise Case Management (ECM): This solution provides an IRS-wide solution for 

streamlining case and workload management processes. The solution digitizes case 

information, automates work selection, and improves resource alignment. 

• Real-Time Tax Processing (RTTP) (Starts in Phase 2): The program will deliver 

independent and near real-time data processing, allowing the IRS to move away from batch 

processing, view returns dynamically, and understand the status of a return as it is processed. 

Currently, batch processing prevents a taxpayer from easily adjusting their individual return. 

Within certain parameters, RTTP will allow amendments to be processed directly, improving 

the overall taxpayer experience and level of confidence with multi-channel options to enable 

account access. It also improves at-filing compliance and communication with the IRS.

• Information Returns System Processing (Starts in Phase 2): The program consists of a 

modern intake database and applications that allow for improved document matching to 

improve intake consistency.

C. Modernized IRS Operations

• Robotics Process Automation (RPA): Enhancing business process execution, speed, and 

accuracy through smart software designed to perform high-volume, repeatable tasks.

• Application Programming Interface (API) Implementation: The API initiative incorporates 

efforts to drive internal and external API deployment. For example, authorized third parties 

will have easier access and a streamlined data exchange with the IRS on behalf of their clients 

through standard, reusable services and common programming code.

• Cloud Execution: Cloud Execution will result in improved “time-to-market” agility, increased 

operational efficiency and resilience, increased innovation, and an enhanced or maintained 

security posture by migrating workloads to cloud platforms and services.

• Next Generation Infrastructure: Next Generation Infrastructure involves a series of 

packaged initiatives to support a more efficient, scalable, and flexible architecture 

implemented through advanced IT infrastructure tools and technologies (e.g., Standard Stacks, 

Enterprise Storage Solution). Implementing the Next Generation Infrastructure initiative 

encompasses transformation of computer, network, and storage activities—along with 
IRS-110

DevOps—to automate software delivery and infrastructure changes. IRS will also continue to 

convert legacy code to modern languages.

• Data Digitization (Starts in Phase 2): Electronic files will be enhanced, and the intake of

paper forms and correspondence will be simplified and streamlined through the integration of

scanned data and content management systems. This will improve processing of taxpayer

paper submissions and create efficiencies from not having to manually process, transcribe, and

store documents.

• Universal Data Hub / Analytics Tools / Platform (Starts in Phase 2): The program will

support foundational architecture and technology elements that enable business capabilities

like real-time processing, error correction, expanded online tools and data analytics

capabilities, improved fraud detection, and other anomaly detection capabilities. The program

will streamline data availability and will allow for more data-driven business decisions.

D. Cybersecurity and Data Protection

• Vulnerability & Threat Management: Enable IRS cybersecurity professionals to monitor

servers in order to protect taxpayer data and systems, providing full visibility into endpoints.

• Identity & Access Management: Further prevent malicious or unintended access and

disclosure of taxpayer and other sensitive data using a common platform for secure

authorization and authentication services and encrypting sensitive data at rest as well as in

transit.

• Security Operations & Management: Enhance the ability to secure taxpayer data and

systems through full visibility of hardware and software on the network and enhance incident

response and detection of internal threats to data and systems.
IRS-111

FY 2019 Modernization Portfolio Budget

Modernization 

Pillar

Programs Planned Annual 

Budget1

($ in Millions)

Revised Annual 

Budget2

($ in Millions)

End of Year 

Actuals3

($ in Millions)

Taxpayer 

Experience

WebApps4 25.00 24.70 24.10

Taxpayer Digital Communications 

Outbound Notifications 5.00 5.40 5.40

Live Assistance 5.00 5.00 5.00

Core Taxpayer 

Services & 

Enforcement

CADE2 TS2 85.00 85.00 80.90

Enterprise Case Management 

(ECM)5 60.00 70.00 59.50

Return Review Program (RRP) 35.00 35.00 34.70

Modernized IRS 

Operations

Robotics Process Automation (RPA) 5.00 5.00 5.10

API Implementation N/A N/A N/A

Cloud Execution 5.00 5.00 5.40

Next Generation Infrastructure 10.50 10.50 9.80

Cybersecurity & 

Data Protection

Vulnerability & Threat Management 19.50 23.10 21.40

Identity & Access Management 20.00 20.20 19.00

Security Operations & 

Management

25.00 21.20 21.00

Subtotal: $300.00 $310.00 $291.20

Core Infrastructure6 18.30 18.30 18.00

Architecture, Integration, and Management6 36.00 36.00 35.60

Total: $354.30 $364.30 $344.80

 1 Planned Annual Budget reflects figures as identified in the Business Plan published in April 2019.

2 Revised Annual Budget reflects IRS adjustments based on FY 2020 appropriations and prioritization decisions. 3 End of Fiscal Year includes end-of-year adjustments. 4 IRS realigned $350,000 from WebApps to Taxpayer Digital Communications Outbound Notifications on 

September 26, 2019 to support critical development work.

5 IRS increased the budget for Enterprise Case Management from $60 million to $70 million on July 22, 2019. 6 Core Infrastructure (Core) and Architecture, Integration, and Management (AIM) represent enterprise staffing 

and planning costs necessary to deliver the Business Plan. Core Infrastructure provides mission-critical services for 

designing, engineering, testing, and deploying standardized, consolidated, virtual, and secure modernized 

development and production environments. AIM provides engineering management capabilities essential to 

delivering complex IT functions, and supports IRS systems strategy, architecture, and engineering capabilities. 

These costs were not identified in the Business Plan because they are not attributable to specific initiatives, but 

they were reflected in the FY 2020 President’s Budget. For more information on Core and AIM, see page 71 of the 

FY 2020 Congressional Justification (March 18, 2019).
IRS-112

3.2 – Return on Investment (ROI) for IRS Major Enforcement Programs

The actual cost and actual revenue collected for FY 2013 through FY 2019 for the three major enforcement 

programs, Examination, Collection, and Automated Underreporter (AUR) are provided below. The 

activities included in these programs include:

Examination Program conducts examinations of tax returns of individual taxpayers, businesses, and other 

types of organizations to verify that the tax reported is correct. This includes examinations of individuals, 

small businesses, self-employed, large corporate businesses, partnerships, international, estate and gift, 

excise tax and employment tax-exempt organizations, qualified pension benefit plans, and government 

entities. The examination costs include the cost of the Field Exam, Correspondence Exam, IRS Chief 

Counsel, and Appeals functions.

Collection Program collects delinquent taxes and secures delinquent tax returns through the appropriate 

use of enforcement tools, such as lien, levy, seizure of assets, installment agreement, offer in compromise, 

substitute for return, summons, and IRC section 6020(b) (which allows the IRS to prepare returns if a 

taxpayer neglects or refuses to file), and provides education to taxpayers to enable future compliance. The 

cost of the Collection program includes Automated Collection System (ACS), Field Collection, and 

Payment Compliance/Correspondence Collection.

Automated Underreporter (AUR) Program matches payer information returns (Forms 1099, W-2, etc.) 

against data reported to the IRS on individual tax returns. The information is verified to identify any 

discrepancies. If a discrepancy is found, the case is given to a tax examiner for research and analysis. If 

the tax examiner is unable to resolve the discrepancy, the IRS issues a proposed notice and generates a 

proposed assessment. 

ROI is calculated by dividing revenue by cost. This information provides an indication of the ROI for the 

three major enforcement programs over time. Enforcement revenue collected in a fiscal year includes tax, 

interest, and penalties from multiple tax years. Some enforcement activities take more than a year to close 

and may generate revenue over several years. 

In addition, these data reflect the average return on investment for these programs and do not include the 

indirect effects of IRS enforcement activities on voluntary compliance. Net revenue is maximized only 

when resources are allocated according to marginal direct and indirect return on investment, but those 

ratios are much more challenging to estimate than the average ROI. As a result, the IRS will continue to 

allocate enforcement resources across a range of enforcement activities to ensure taxpayers pay the taxes 

they owe.
IRS-113

Return on Investment for IRS Major Enforcement Programs

Dollars in Millions

Enforcement Program Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI Cost1 Revenue ROI

IRS Total $5,644 $54,203 9.6 $5,592 $54,291 9.7 $5,506 $56,914 10.3 $5,559 $59,366 10.7 $5,418 $57,523 10.6

Examination 3,974 13,320 3.4 3,782 12,023 3.2 3,693 15,102 4.1 3,716 15,017 4.0 3,568 10,877 3.0

Collection 1,419 35,740 25.2 1,576 37,259 23.6 1,600 36,498 22.8 1,635 38,985 23.8 1,625 41,793 25.7

Automated Underreporter (AUR) 251 5,143 20.5 234 5,009 21.4 214 5,314 24.9 208 5,364 25.7 225 4,853 21.6

1

The cost of the enforcement programs was calculated using budget data from the IRS Integrated Financial System (IFS) and includes direct dollars and FTE from the Enforcement appropriation, Exam and 

Collections budget activity, and dollars from the Operations Support appropriation prorated using actual FTE realized for each major enforcement program.

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
IRS-114

3.3 – IRS Performance Measures Table

Performance Measures FY2015 

Actual

FY2016 

Actual 

FY2017 

Actual

FY2018 

Actual 

FY2019 

Actual

FY2020 

Target

FY2021 

Target

Customer Service Representative Level of 

Service (LOS)1 38.1% 53.4% 77.1% 75.9% 65.4% 60.0% 60.0%

Customer Accuracy - Tax Law (Phones) 95.0% 96.4% 96.7% 95.5% 91.6% 92.0% 92.0%

Customer Accuracy - Accounts (Phones) 95.5% 96.1% 96.0% 96.1% 94.3% 94.0% 94.0%

Timeliness of Critical Filing Season Tax Products 

to the Public2 89.0% 92.5% 93.1% 59.6% 92.6% 89.0% 89.0%

Timeliness of Critical TE/GE & Business Tax 

Products to the Public2 92.6% 98.0% 96.7% 100.0% 96.1% 89.0% 89.0%

Percent of Business Returns Processed 

Electronically 47.0% 50.0% 52.9% 55.6% 57.8% 60.0% 60.0%

Enterprise Self-Assistance Participation Rate3 88.7% 89.0% 79.0% 82.0% 85.4% 82.0% 82.0%

Taxpayers Satisfied with the IRS (based on 

100-point scale)4, * 73 74 74 74 73 Indicator Indicator

Examination Coverage - Individual 0.8% 0.7% 0.6% 0.6% 0.45% 0.48% 0.55%

Examination Coverage - Business (Assets > $10 

million) 3.9% 3.0% 2.5% 2.2% 1.6% 1.7% 1.1%

Examination Efficiency - Individual 148 143 121 131 109 115 120

Automated Underreporter Coverage 2.3% 2.3% 2.2% 2.0% 1.3% 1.7% 1.8%

Time to Start Compliance Resolution4 Under 

Development Indicator Indicator

Time to Resolve Compliance Issue After Filing4 Under 

Development Indicator Indicator

Repeat Non-Compliance Rate4 Under 

Development Indicator Indicator

Collection Coverage (Units) 46.3% 43.4% 42.2% 41.6% 41.3% 39.7% 38.8%

Cost to Collect $100 (in cents)4 0.35 0.35 0.34 0.34 0.33 Indicator Indicator

Criminal Investigations Completed 4,486 3,721 3,089 3,051 2,797 2,700 2,700

Conviction Rate 93.2% 92.1% 91.5% 91.7% 91.2% 92.0% 92.0%

Rentable Square Feet per Person 297 301 298 Indicator Indicator

Percent of Aged Hardware5 56.5% 52.2% 52.3% 45.5% 31.0% 30.0% 30.0%

Percent of Major IT Investments within +/- 10% 

Cost Variance at the Investment Level6 73.7% 76.2% 50.0% 72.2% 88.9% 90.0% 90.0%

Percent of Major IT Investments within +/- 10% 

Schedule Variance at the Investment Level6 89.5% 85.7% 88.9% 83.3% 88.9% 90.0% 90.0%

1 CSR LOS includes telephone lines answered by Accounts Management Customer Service Representatives only. These telephone phone lines service 78% of 

all telephone traffic.

2 Modified in FY 2019. 3 Starting in FY 2017, the IRS modified the Taxpayer Self Assistance Rate measure (renamed to Enterprise Self-Assistance Participation Rate) to include 

additional self-service channels including Get Transcript and payment applications such as Direct Pay and Online Payment Agreements. As new self-assistance 

applications are provided to the public, they will be added to the methodology.

4 New measure added for FY 2019. 5 This is an existing measure added for budget reporting; the measure definition changed in FY 2018, removing certain asset categories (fax machines, low-end 

printers and scanners) that are no longer being actively refreshed from the calculation to more accurately define the inventory that’s reflective of risk to the IT 

environment.

6 Starting in FY 2015, the measure includes all major investments (BSM and non-BSM).

* Based on the American Customer Satisfaction Index (ACSI) survey; the All Individual Tax Filer score is calculated from separate ACSI Individual Paper Filer 

and Electronic Filer customer satisfaction index scores, available on an annual basis at the end of January and computed on a 100-point scale.
IRS-115

Budget Level Performance Measure Descriptions

Customer Service Representative (CSR) Level of 

Service

The number of toll-free callers that either speak to a Customer Service 

Representative or receive informational messages divided by the total 

number of attempted calls.

Customer Accuracy – Tax Law Phones The percentage of correct answers given by a live assistor on Tollfree tax law inquiries.

Customer Accuracy – Customer Accounts (Phones) The percentage of correct answers given by a live assistor on Tollfree account inquiries.

Timeliness of Critical Individual Filing Season Tax 

Products to the Public

The percentage of critical individual filing season tax products (tax 

forms, schedules, instructions, and publications required by many 

filers to prepare a complete and accurate tax return) available to the 

public in a timely fashion.

Timeliness of Critical TE/GE & Business Tax Products 

to the Public

Percentage of critical business tax products (tax forms, schedules, 

instructions, and publications used by a large number of TE/GE and 

Business filers to prepare a complete and accurate return or form) 

available to the public in a timely fashion. 

Percent Business Returns Processed Electronically The percentage of electronically filed business tax returns divided by 

the total business returns filed.

Enterprise Self Assistance Participation Rate The percentage of taxpayer assistance requests resolved using selfassisted automated services.

Taxpayers Satisfied with the IRS

The percentage of taxpayers satisfied with the IRS according to the 

American Customer Satisfaction Index (ACSI) survey. The All 

Individual Tax Filer score is calculated from separate ACSI Individual 

Paper Filer and Electronic Filer Customer Satisfaction Index Scores. 

Based on a 100-point scale.

Examination Coverage – Individual (1040)

The sum of all individual 1040 returns closed by Small Business/Self 

Employed (SB/SE), Wage & Investment (W&I), Tax Exempt and 

Government Entities (TE/GE), and Large Business and International 

(LB&I) (Field Exam and Correspondence Exam programs) divided by 

the total individual return filings for the prior calendar year.

Examination Coverage – Business Assets >$10 Million)

The number of LB&I returns (C and S Corporations with assets over 

$10 million and all partnerships) examined and closed by LB&I during 

the current fiscal year divided by the number of filings for the 

preceding calendar year.

Examination Efficiency – Individual (1040)

The sum of all individual 1040 returns closed by SB/SE, W&I, TE/GE, 

and LB&I (Field Exam and Correspondence Exam programs) divided by 

the total Full-Time Equivalent (FTE) expended in relation to those 

individual returns.

Automated Underreporter (AUR) Coverage

A percentage representing the total number of W&I and SB/SE 

contact closures (a closure resulting from a case where SBSE and 

W&I made contact) divided by the total return filings for the prior year.

Time to Start Compliance Resolution The percentage of all individual income tax enforcement cases started 

within six months of the return posting date.

Time to Resolve Compliance Issue After Filing

The average time it takes to close all individual income tax 

enforcement cases in days. This is an annual measure based on all 

cases closed in a fiscal year.

Repeat Non-Compliance Rate

The percentage of individual taxpayers in a fiscal year with additional 

non-compliance two years after the initial tax year that contains a 

filing, payment, or reporting compliance issue, compared to total 

taxpayers 

Collection Coverage – Units The volume of collection work disposed compared to the volume of 

collection work available.

Cost to Collect $100 (in cents) The cost of collecting $100 is computed as total operating costs 

divided by gross collection divided by 100. 

Criminal Investigations Completed

The total number of subject criminal investigations completed during 

the fiscal year, including those that resulted in prosecution 

recommendations to the Department of Justice as well as those 

discontinued due to a lack of prosecution potential. 
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Conviction Rate The percent of adjudicated criminal cases that result in convictions.

Rentable Square Feet per Person The amount of Rentable Square Feet the IRS maintains per Personnel 

requiring space. IRS will use this as an indicator for FY 2018.

Percent of Aged Hardware This measure shows the quantity of IT hardware in operation past its 

useful life as a percentage of total hardware in use. 

Percent of Major IT Investments within +/- 10% Cost 

Variance at the Investment Level 

Number of major IT investments within +/-10 percent variance 

between planned total cost and projected/actual cost within a fiscal 

year divided by the total number of major IT investments in that fiscal 

year.

Percent of Major IT Investments within +/- 10% 

Schedule Variance at the Investment Level 

Number of major IT investments within +/-10 percent variance 

between planned days and projected/actual days within a fiscal year 

divided by the total number of major IT investments in that fiscal year.

3.4 – Summary of FY 2019 Savings Realized

Increase e-File Savings 

FY 2019 Actual Savings: -$8,900,000 / -167 FTE

FY 2021 Projected Savings: -$4,684,000 / -85 FTE

The IRS realized savings of 167 FTE and $8.90 million in FY 2019 as a result of increases in electronically 

filed returns. The number of paper returns received by the IRS decreased by 2.1 million from FY 2018 to 

FY 2019 while the number of electronically filed returns increased by 4 million over the same period.

Rent 

FY 2019 Actual Savings: $0

FY 2021 Projected Savings: -$6,200,000

Rent is one of the IRS’s largest operating expenses. The IRS plans to release 243,000 square feet for an 

estimated $6.2 million in annualized rent savings. Although savings were projected, there were no savings 

in FY 2019 due torent increases from lease renewal, delays in space release, and expansion of space 

needed to accommodate additional hiring.
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Section IV – Appendix

4.1 Appropriations Detail Table with Program Integrity Cap Adjustment

In addition to the base appropriations request of $12 billion request, the budget proposes a $400 million 

discretionary program integrity cap adjustment in FY 2021 to fund new and continuing investments in 

expanding and improving the effectiveness and efficiency of the IRS’s overall tax enforcement program. 

The budget proposes $280 million for the Enforcement account and $120 million for the Operations 

Support account. Additional adjustments are provided in future years to fund new initiatives and inflation. 

These investments will generate $79 billion in new revenue over 10 years and will cost $15 billion, for net 

revenue of $64 billion over 10 years. This return on investment (ROI) is likely understated because it does 

not reflect the effect that enhanced enforcement has on deterring non-compliance.

IRS Program Integrity Cap Adjustment FY 2021 – FY 2030

Table compares revenue receipts to budget authority. Outlays over ten years are projected to be $15.385 billion compared to budget authority of 

$15.838 billion for net savings of $64.010 billion. 

Return on Investment (ROI) for FY 2021 Enforcement Investments

Enforcement efforts generate and protect revenue, as well as encourage voluntary compliance for taxpayers 

who would otherwise seek to avoid meeting their tax obligations under the law. The IRS calculates an ROI

for both revenue generating and revenue protecting investments. Generated revenue is from compliance 

efforts that yield direct, measurable results through enforcement activities such as examination and 

collection returns. Protected revenue is revenue the IRS protects from being refunded erroneously. It is 

associated with activities that occur before issuing a taxpayer’s refund, including the identification of fraud 

and questionable returns. 

FY 2021 Revenue Generating Investments

The cap adjustment includes $351.5 million in investments for traditional enforcement and strategic 

revenue programs, such as examinations and collection activities, which are projected to generate more 

than $4.6 billion in revenue once the investments reach full potential in FY 2023 with an expected total 

ROI of $9.2 to $1. This request also includes $40.5 million to support strategic revenue producing 

investments, including increasing investigations related to cybercrimes, virtual currency, refund fraud, and 

Description 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2021-2030

Base $9,059 $9,154 $9,250 $9,348 $9,446 $9,545 $9,646 $9,747 $9,850 $9,953 $94,999

Cap $400 $828 $1,173 $1,524 $1,879 $1,994 $1,995 $2,005 $2,015 $2,025 $15,838

Total $9,459 $9,982 $10,424 $10,872 $11,325 $11,539 $11,641 $11,752 $11,865 $11,979 $110,837

Revenues $264 $542 $3,106 $5,158 $7,356 $9,682 $12,005 $12,974 $13,813 $14,495 $79,395

Net Savings ($136) ($286) $1,933 $3,634 $5,477 $7,688 $10,011 $10,970 $11,798 $12,469 $63,557
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prosecution efforts. While these investments do not have an immediately measurable ROI, they have clear 

long-term positive revenue effects. 

FY 2021 Revenue Protecting Investments

The benefits of IRS activities that prevent erroneous refunds are not captured in IRS’s ROI calculations 

above. However, the IRS estimates that investment in these activities should protect $952.7 million in 

revenue that otherwise would need to be recovered from downstream enforcement actions for an estimated 

ROI of $14.7 to $1 by FY 2023. These investments also support IRS’s Agency Priority Goal on Fraud 

Prevention, which is part of the Treasury Strategic Plan FY 2018-2022. 

Return on Investment (ROI) for IRS FY 2021 Enforcement Initiatives 

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI Cost Revenue ROI

FY 2021 Revenue Producing Enforcement Initiatives $351.5 $738.3 2.1 $516.6 $3,557.5 6.9 $504.2 $4,654.6 9.2

Cap Adjustment Enforcement Initiatives $351.5 $738.3 2.1 $516.6 $3,557.5 6.9 $504.2 $4,654.6 9.2

Immediate and Directly Measurable Revenue-Producing Initiatives $311.0 $738.3 2.4 $476.1 $3,557.5 7.5 $463.7 $4,654.6 10.0

Increase Audit Coverage 140.5 356.4 2.5 218.0 1,328.6 6.1 209.1 1,846.1 8.8

Increase Collection Coverage 170.5 381.9 2.2 258.1 2,228.9 8.6 254.6 2,808.5 11.0

Strategic Revenue-Producing Initiatives (which do not have immediately measurable ROI, 

but clear long-term revenue effects)

$40.5 $0.0 0.0 $40.5 $0.0 0.0 $40.5 $0.0 0.0

Expand Cyber and Virtual Currency Compliance Efforts 40.5 0.0 0.0 40.5 0.0 0.0 40.5 0.0 0.0

First Year (FY 2021) Second Year (FY 2022) Full Performance (FY 2023)

FY 2021 Revenue Protecting Enforcement Initiatives

Dollars in Millions

Cost Revenue ROI Cost Revenue ROI Cost Revenue ROI

Revenue Protecting Initiatives (which protect taxpayer information, prevents identity theft, 

and results in long-term revenue protection)

$48.5 $31.6 0.7 $64.8 $703.7 10.9 $64.7 $952.7 14.7

Cap Adjustment Revenue Protecting Initiative $48.5 $31.6 0.7 $64.8 $703.7 10.9 $64.7 $952.7 14.7

Increase Audit Coverage (revenue-protecting portion) 32.7 31.6 1.0 49.0 703.7 14.4 48.9 952.7 19.5

Expand Coverage in the Tax-Exempt Sector 15.8 0.0 0.0 15.8 0.0 0.0 15.8 0.0 0.0

First Year (FY 2021) Second Year (FY 2022) Full Performance (FY 2023)
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Increase Audit Coverage +$173,180,000 / +1,333 FTE

Position Type/Other Costs FTE Positions $000

Examination Coverage 437 874 $68,571 

Tax Technician 110 220 14,828 

Revenue Agent 315 630 52,581 

Manager and Support Staff 12 24 1,162 

Specialty Programs 44 88 $8,600 

Tax Examiner 8 16 629 

Revenue Agent 28 56 6,105 

Attorney 8 16 1,866 

Correspondence Examination 451 902 $43,669 

Tax Examiner 426 852 41,281 

Manager and Support Staff 25 50 2,388 

Document Matching 250 500 $24,505 

Tax Examiner 200 400 19,640 

Support Staff 50 100 4,865 

Other Direct Costs 151 302 $27,835 

Appeals Officer 83 166 15,272 

Paralegal 14 28 1,565 

Attorney 30 62 5,983 

Support Staff 24 48 5,015 

Total 1,333 2,666 $173,180 

The cap adjustment includes additional examination employees. The decline in staffing since FY 2010 has 

led to a decrease inthe individual audit coverage rate from 1.1 percent in FY 2010 to 0.45 percent in 

FY 2019, which increases the risk to the integrity of the nation’s voluntary tax compliance system. As 

audit coverage rates continue to decline, individuals and businesses may decide that the chance of the IRS 

auditing them is minimal, and take riskier positions on their tax reporting, especially since the IRS’s audit 

coverage decline has been widely reported and is public. The additional resources will fund a broad range 

of compliance priorities and allow for earlier case assignment and resolution. This investment is expected 

to produce additional enforcement revenue of $1.3 billionannually (an ROI of $6.4 to $1) once the new 

hires reach full potential in FY 2023 and protect revenue of $952.7 million (a protected ROI of $14.7 to 

$1). These resources will help to: 

• Improve the individual audit coverage rate by closing more than 41,000 individual field and

specialty examination cases and 451,000 pre-refund and post-refund correspondence examination

cases; and

• Expand the Automated Underreported (AUR) program to process more than 1,013,000 additional

cases (document matching of individuals decreased by 42 percent from FY 2011 to FY 2019).
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Other Direct Costs 

Dollars in thousands

IRS Activity Cost FTE Positions Explanation

Appeals $15,272 83 166 

Support examination efforts on key compliance areas focused on 

improving voluntary compliance and providing a high level of customer 

service.

Chief Counsel $7,548 44 88 Provide support for increases in requests for legal advice, litigation 

assistance, and published guidance on issues raised in audits.

Human Capital 

Office $170 1 2 Handle the increase in front-line positions and the expectation that new managerial positions will be created. 

SB/SE Operations 

Support $2,184 16 32 Support hiring, training, human capital, technology needs, data analytics, and resource requirements for the business unit.

Privacy, 

Governmental 

Liaison and 

Disclosure

$862 7 14 Address the increase in Freedom of Information Act requests as a result of 

increased compliance activity.

Taxpayer Advocate 

Service $507 Ensure the IRS follows appropriate procedures and does not create unnecessary burdens or compromise taxpayers' rights.

Customer Service 

Representative $1,292 Support examination efforts by ensuring staffing is available to handle downstream impact in accounts management operations.

Total $27,835 151 302 
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Increase Collection Coverage +$170,506,000 / +1,342 FTE

Position Type/Other Costs FTE Positions $000

Field Collection Coverage 325 650 $51,500 

Revenue Officer 325 650 51,500 

ACS & ACS Support 555 1110 $56,265 

Customer Service Representative 437 874 44,724 

Tax Examiner 78 156 7,641 

Support Staff 40 80 3,900 

Correspondence Collection (CSCO) 166 332 $16,878 

Tax Examiner 158 316 15,714 

Support Staff 8 16 1,164 

Specialty Collection 78 156 $8,818 

Tax Examiner 68 136 7,423 

Manager and Support Staff 10 20 1,395 

Other Direct Costs 218 436 $37,045 

Attorney 46 92 7,756 

Appeals Officer 148 296 24,819 

Support Staff 24 48 4,470 

Total 1,342 2,684 $170,506 

The IRS is requesting additional resources to improve its capacity to work the collection inventory and 

answer taxpayer phone calls. Increased staffing will address the overall collection coverage rate, which has 

declined 18 percent from FY 2010 to FY 2019 as millions of collection cases available to work were not 

disposed of each year due to lack of staffing. This investment is expected to produce additional annual 

enforcement revenue of $2.8 billion (an ROI of $11 to $1) once the new hires reach full potential in 

FY 2023. These resources will help the IRS to:

• Provide 650 additional field collection staff to address non-filing and underpayment of taxes in 

order to handle more than 29,800 additional collection cases. Currently, there are more than one 

million cases with an aggregate assessed balance of more than $55.4 billion in the queue; 

• Provide 874 additional Automated Collection System (ACS) staff to address an additional 

422,000 ACS cases, including incoming calls generated by the issuance of levies, delinquent 

returns, and/or unpaid tax liabilities. Reduced ACS staffing has contributed to a substantial 

increase in unhandled cases and a 37 percent decline in level of service (LOS) to taxpayers; and

• Expand several Compliance Services Collection Operations (CSCO) programs that address 

non-filing and underpayment of taxes through the notice process by more than 509,000 notice 

dispositions and cases. More than 40,000 Offers in Compromise cases will also be closed, thereby 

enabling taxpayers another option to resolve their tax liability.
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Other Direct Costs 

Dollars in thousands

IRS Activity Cost FTE Positions Explanation

Appeals $24,819 148 296 Support collection efforts and appropriately resolve these cases while 

providing a high level of customer service.

Chief Counsel $7,756 46 92 Provide support for increases in requests for legal advice, litigation 

assistance, and collection due process.

SB/SE Operations 

Support $2,184 16 32 Support hiring, training, human capital, technology needs, data analytics, and 

resource requirements for the business unit.

Accounts 

Management $241 Support Collection efforts to address taxpayer communications in Accounts Management.

Privacy, 

Governmental 

Liaison and 

Disclosure

$616 5 10 Address the increase in Freedom of Information Act requests as a result of 

increased compliance activity.

Human Capital 

Office $969 3 6 Handle the increase in front-line positions and the expectation that new 

managerial positions will be created.

Online Services and 

Equity, Diversity, and 

Inclusion

$460 

Support service design/delivery for payment product improvements and 

taxpayer digital communications support. Provide sign language interpreters, 

special emphasis events, and reasonable accommodation.

Total $37,045 218 436
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Expand Coverage in the Tax-Exempt Sector +$15,766,000 / +109 FTE

Position Type/Other Costs FTE Positions $000

Expand Protection and Coverage of Small Business 

and Tax-Exempt Sponsored Plans 29 58 $4,295

Revenue Agent 25 50 3,893 

Manager 3 6 257

Support Staff 1 2 146 

Address EO Noncompliance with UBI 47 94 $6,907 

Revenue Agent 40 80 6,228 

Support Staff 3 6 291 

Manager 4 8 388 

Enhance Up-front Compliance for Applicant for 

Tax-Exempt Status 15 30 $2,090 

Revenue Agent 13 26 1,850 

Manager 1 2 144 

Support Staff 1 2 96 

Increase Voluntary Compliance 16 32 $2,091 

Revenue Agent 10 20 1,557 

Manager 1 2 97 

Research Analyst 1 2 97 

Support Staff 4 8 340 

Other Direct Costs 2 4 $384 

Attorney 1 2 292 

Appeals Officer 1 2 92 

Total 109 218 $15,766

Funding for this investment will allow the IRS to use a multi-faceted data-driven approach to enhance 

taxpayer education and compliance that will help protect the tax-exempt status of associated assets and 

revenue. 

This investment supports the following efforts, which will increase taxpayer service and education and 

improve overall compliance and protection of funds: 

• Enhance enforcement coverage of employee retirement plans, including but not limited to those 

sponsored by small businesses, exempt organizations, and governments, which make up almost 

half of all retirement plans in the United States;

• Address Exempt Organizations and Tax-Exempt Bond non-compliance to ensure adherence with 

complex and often confusing tax laws; and

• Increase voluntary compliance using low cost correction opportunities, to enhance taxpayer 

education and compliance. 
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Other Direct Costs

Dollars in thousands

IRS Activity Cost FTE Positions Explanation

Appeals $92 0.50 1 Support examination efforts on key compliance areas focused on improving 

voluntary compliance and providing a high level of customer service.

Chief 

Counsel $292 1.50 3 Provide support for increases in requests for legal advice, litigation assistance, and collection due process.

Total $384 2.0 4 

Expand Cyber and Virtual Currency Compliance Efforts +$40,548,000 / +101 FTE

Position Type/Other Costs FTE Positions $000

Expand Cyber and Virtual Currency 

Compliance 87 174 $25,699 

Special Agent 54 108 21,465 

Analyst 29 58 3,700 

IT Specialist 4 8 534 

Operational Technology Environment (OTE) 6 12 $13,349

IT Specialist 6 12 802 

Contractual Services 12,547

Other Direct Costs 8 16 $1,500 

Criminal Tax Legal Specialist 6 12 1,325 

Criminal Tax Admin Specialist 2 4 175 

Total 101 202 $40,548

Since 2016, the IRS Criminal Investigation (CI) division has seen a dramatic rise in the use and value of 

virtual currency, specifically cryptocurrency. With top coins like Bitcoin and Ethereum seeing increases 

well above 1,200 percent in recent years, this remains a large area of noncompliance and risk to the IRS. 

Internal statistics indicate that very few individuals filed tax returns showing gains generated from the sale 

or transfer of cryptocurrency, which indicates a large tax gap in this program area. 

This additional funding would support the hiring of 108 special agents to conduct more criminal 

investigations related to cyber and virtual currency. As a result, about 450 additional criminal 

investigations are projected to be completed from FY 2023 – FY 2025 once the new hires reach full 

potential. Additionally, CI estimates that as a result of the additional special agents, CI will identify 

$197.3 million annually in tax revenues either not reported to the IRS or fraudulently refunded by the IRS.
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Funding for this investment will strengthen CI’s Refund and Cybercrimes efforts by:

• Enhancing several areas, to include supplementing special agent and investigative support 

resources, to combat cyber-criminals and develop a core group of subject matter experts indigital 

assets;

• Allowing further participation in multi-agency cyber taskforces to target large-scale criminal 

organizations and maximize compliance; and

• Expanding criminal investigations through the analysis of available data (open source intelligence 

and investigative data) and fund the build-out of CI’s cybercrime sections. 

Cybercrime continues to exploit stolen taxpayer personally identifiable information (PII) through 

sophisticated data breaches. This new evolution of cyber identity theft has unleashed new schemes, such as 

complex intrusions, business email compromises, synthetic identity theft, account takeovers, 

business/corporate identity theft and a host of dark web exfiltration. This activity undermines the tax 

system and coupled with the ability to use digital assets in their financial concealment only elevates the 

difficulty level for law enforcement. 

Additional funding and resources dedicated to this area would allow CI to hire special agents with the skills 

to combat today’s cybercriminals. Traditionally, CI focused on agents with accounting skills, but with 

cybercrime, agents will need a high technical knowledge of computing as well as the understanding of 

digital assets, such as cryptocurrency. These skills will better assist the agency in identifying, 

investigating, and mitigating known criminal activities and further assist other business units in addressing 

compliance. 

The ever-evolving threats in this area require new approaches to the detection, investigation and prevention 

of these crimes. CI is employing its data strategy to approach these issues differently, seeking to identify 

patterns of non-compliance, focusing on high impact cases and developing predictive methods for new and 

emerging schemes. Past staffing and hiring plans which focused on special agents as the sole 

“investigators” need to be augmented with employees who are skilled in the specialized areas of 

cybercrime, virtual currency and data research/analytics. 

CI is authorized to use a wide array of investigative techniques including, but not limited to, electronic 

surveillance, digital forensics, physical forensics and covert internet surveillance. The operational 

technology associated with these investigative techniques must be deployed outside the IRS enterprise IT 

infrastructure. This has resulted in CI supporting dozens of isolated systems and law enforcement 

applications. In order to increase IT oversight and compliance, CI will centralize these technologies in a 

new program area referred to as Operational Technology Environment (OTE). OTE will be responsible for 

deploying and supporting technology-based law enforcement solutions within a separate and secure 

framework.

If IRS Criminal Investigation successfully expands the Cyber and Digital Assets Compliance Program in 

FY 2021, Criminal Tax (CT) would place an additional attorney in each of its six CT geographic areas and 
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one attorney in the National Office, to support the build-out of the CI Cybercrime sections. For added 

client support, CT would strategically place attorneys in each of the major cities where the cyber 

investigations are more voluminous or active, and where Cybercrime Units (CCUs) are present, such as 

Washington, DC, New York, Los Angeles, and Miami. The additional attorneys would assist the case 

agents investigating cybercrimes or cyber-enabled investigations (including crypto currency), and also 

render advice to CCUs, thereby reducing the tax gap in this area. 

Other Direct Costs

Dollars in thousands

IRS Activity Cost FTE Positions Explanation

Chief Counsel $1,500 8 16

Support case agents investigating cybercrimes or cyber-enabled 

investigations (including crypto currency), and render advice to CCUs, thereby 

reducing the tax gap in this area.

Total $1,500 8 16
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4.2 – Summary of IRS FY 2021 Request by Business Unit (including the Program 

Integrity Cap Adjustment)

4.3 – Summary of IRS FY 2021 Identity Theft Budget Request

By Business Unit: Dollars % of TS

Appropriation Dollars % of ENFAppropriation Dollars % of OSAppropriation Dollars % of BSMAppropriation Dollars % ofTotal Budget

Information Technology 2,178,007,836 51.55% 300,000,000 100.0% 2,478,007,836 19.92%

Wage & Investment 2,177,104,640 84.96% 273,490,502 5.11% 241,308,722 5.71% 2,691,903,864 21.64%

Small Business/Self-Employed 2,493,886,566 46.60% 2,493,886,566 20.05%

Facilities Management and Security 

Services

1,098,144,548 25.99% 1,098,144,548 8.83%

Large Business and International 789,597 0.03% 854,253,606 15.96% 916,981 0.02% 855,960,184 6.88%

Criminal Investigation 671,111,327 12.54% 1,570 671,112,897 5.40%

Chief Counsel 20,697,637 0.81% 394,435,280 7.37% 132,172 415,265,089 3.34%

Human Capital Office 336,009,475 7.95% 336,009,475 2.70%

Tax Exempt & Government Entities 8,230,173 0.32% 247,185,007 4.62% 255,415,180 2.05%

Taxpayer Advocate Service 225,238,163 8.79% 205,647 0.00% 225,443,810 1.81%

Corporate Reserve and Payments 54,606,767 2.13% 50,975,137 0.95% 15,096,828 0.36% 120,678,732 0.97%

Appeals 231,367,479 4.32% 231,367,479 1.86%

Research, Applied Analytics, and 

Statistics

2,975,974 0.12% 53,453,759 1.00% 58,391,192 1.38% 114,820,925 0.92%

Chief Financial Officer 22,210,453 0.42% 71,583,623 1.69% 93,794,076 0.75%

Privacy, Governmental Liaison and 

Disclosure

14,944,877 0.58% 2,194,910 0.04% 73,802,239 1.75% 90,942,026 0.73%

Procurement 59,339,230 1.40% 59,339,230 0.48%

Communications & Liaison 17,559,935 0.69% 5,800,577 0.11% 30,368,016 0.72% 53,728,528 0.43%

Online Services 38,920,212 1.52% 38,920,212 0.31%

Return Preparer Office 714,701 0.03% 35,334,393 0.66% 176,926 36,226,020 0.29%

Equity, Diversity & Inclusion 31,270,902 0.74% 31,270,902 0.25%

Front Office2 771,324 0.03% 3,977,513 0.07% 25,449,775 0.60% 30,198,612 0.24%

Whistleblower Office 6,877,559 0.13% 6,877,559 0.06%

Office of the Chief Risk Officer 4,500,178 0.11% 4,500,178 0.04%

Office of Professional Responsibility 4,689,072 0.09% 4,689,072 0.04%

Total 2,562,554,000 5,351,243,140 4,224,705,860 300,000,000 12,438,503,000

Note: These figures reflect full requirements before taking any proposed reductions (Operations Support Hiring Reduction/Delay, FMSS Physical Infrastructure/Security Reduction/Delay, IT Reduction/Delay).

2 Includes Commissioner, Chief of Staff, DCOS, DCSE offices, and Project Management Offices for ACA/FATCA and Services & Enforcement.

Taxpayer Services Enforcement Operations Support BSM Total

Bureau: Internal Revenue Service 

Summary of FY 2021 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2020 Enacted $264,457 118 $237,408 2,401 $8,920 42 $510,786 2,561

Changes to Base:

Maintaining Current Levels (MCLs) $10,786 $9,209 $416 $20,411

Pay Annualization (3.1% average pay raise) 2,049 1,691 65 3,804

Pay Raise (1.0% average pay raise) 1,998 1,649 63 3,710

FERS Contribution Increase 3,160 2,639 99 5,898

Non-Pay 3 385 11 399

Additional Required Labor Costs 3,577 2,845 178 6,599

Efficiencies/Savings ($2,747) (31) ($2,747) (31)

Personnel Savings (2,747) (31) (2,747) (31)

Subtotal FY 2021 Changes to Base $10,786 $6,463 (31) $416 $17,664 (31)

FY 2021 Current Services $275,243 118 $243,871 2,370 $9,336 42 $528,450 2,530

Total FY 2021 Request (Before Cap) $275,243 118 $243,871 2,370 $9,336 42 $528,450 2,530

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $10,786 $6,463 (31) $416 $17,664 (31)

Percent Change FY 2021 Request over FY 2020 Enacted 4.08% 2.72% -1.28% 4.66% 3.46% -1.20%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL
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4.4 – Summary of IRS FY 2021 ACA Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2021 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2020 Enacted $250,885 14 $41,888 328 $33,320 189 $326,093 531

Changes to Base:

Maintaining Current Levels (MCLs) $10,193 $1,649 $1,501 $13,343

Pay Annualization (3.1% average pay raise) 1,944 323 256 2,523

Pay Raise (1.0% average pay raise) 1,896 315 249 2,460

FERS Contribution Increase 2,972 480 371 3,823

Non-Pay 1 3 6 10

Additional Required Labor Costs 3,380 528 619 4,527

Efficiencies/Savings ($534) (4) ($534) (4)

Personnel Savings (534) (4) (534) (4)

Subtotal FY 2021 Changes to Base $10,193 $1,115 (4) $1,501 $12,809 (4)

FY 2021 Current Services $261,078 14 $43,003 324 $34,821 189 $338,902 527

Total FY 2021 Request (Before Cap) $261,078 14 $43,003 324 $34,821 189 $338,902 527

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $10,193 $1,115 (4) $1,501 $12,809 (4)

Percent Change FY 2021 Request over FY 2020 Enacted 4.06% 2.66% -1.22% 4.50% 3.93% -0.75%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL
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4.5 – Summary of IRS FY 2021 Cyber Security Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2021 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2020 Enacted $31,024 67 $31,579 162 $243,571 471 $35,000 30 $341,174 729

Changes to Base:

Maintaining Current Levels (MCLs) $1,020 $1,148 $7,094 $9,262

Pay Annualization (3.1% average pay raise) 93 212 689 994

Pay Raise (1.0% average pay raise) 91 207 672 969

FERS Contribution Increase 131 354 1,000 1,485

Non-Pay 499 84 3,094 3,677

Additional Required Labor Costs 206 291 1,640 2,137

Efficiencies/Savings ($351) (1) ($351) (1)

Personnel Savings (351) (1) (351) (1)

Subtotal FY 2021 Changes to Base $1,020 $797 (1) $7,094 $8,911 (1)

FY 2021 Current Services $32,044 67 $32,376 161 $250,665 471 $35,000 30 $350,085 728

Program Increases:

Integrated Modernization Business Plan 11,000 11,000

Implementing the Taxpayer First Act

Subtotal FY 2021 Program Increases $11,000 $11,000

Total FY 2021 Request (Before Cap) $32,044 67 $32,376 161 $250,665 471 $46,000 30 $361,085 728

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $1,020 $797 (1) $7,094 $11,000 $19,911 (1)

Percent Change FY 2021 Request over FY 2020 Enacted 3.29% 2.52% -0.62% 2.91% 5.84% -0.14%

Cap Adjustment Program Increases

Increase Audit Coverage 278 278

Increase Collection Coverage 273 273

Expand Coverage in the Tax-Exempt Sector 22 22

Expand Cyber and Virtual Currency Compliance Efforts 20 20

Subtotal FY 2021 Cap Adjustment Investments $593 $593

Total FY 2021 Request Including Cap Adjustment $32,044 67 $32,376 161 $251,258 471 $46,000 30 $361,678 728

Dollar/FTE Change FY 2021 Request Including cap over FY 2020 Enacted $1,020 $797 (1) $7,687 $11,000 $20,504 (1)

Percent Change FY 2021 Request Including cap over FY 2020 Enacted 3.29% 2.52% -0.62% 3.16% 6.01% -0.14%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL
IRS-131

4.6 – Summary of IRS FY 2021 Budget Request

Bureau: Internal Revenue Service 

Summary of FY 2021 Request $000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

FY 2020 Enacted (Pre-IAT) $2,511,554 26,390 $5,010,000 35,388 $3,808,500 11,970 $180,000 426 $11,510,054 74,174

Planned Interappropriation Transfer 24,000 370 (100,500) 76,500 370

FY 2020 Enacted $2,535,554 26,760 $4,909,500 35,388 $3,885,000 11,970 $180,000 426 $11,510,054 74,544

Changes to Base:

Maintaining Current Levels (MCLs) $107,929 $207,089 $130,866 $6,201 $452,085

Pay Annualization (3.1% average pay raise) 18,078 35,236 13,896 547 67,757

Pay Raise (1.0% average pay raise) 17,631 34,364 13,552 533 66,080

FERS Contribution Increase 26,523 52,345 20,143 989 100,000

Non-Pay 4,058 7,258 41,840 2,188 55,344

Additional Required Labor Costs 41,639 77,886 41,435 1,944 162,904

Efficiencies/Savings ($80,929) (1,082) ($56,589) (454) ($6,277) ($143,795) (1,536)

Increase e-File Savings (4,607) (85) (77) (4,684) (85)

Space Optimization (6,200) (6,200)

Personnel Savings (76,322) (997) (56,589) (454) (132,911) (1,451)

Subtotal FY 2021 Changes to Base $27,000 (1,082) $150,500 (454) $124,589 $6,201 $308,290 (1,536)

FY 2021 Current Services $2,562,554 25,678 $5,060,000 34,934 $4,009,589 11,970 $186,201 426 $11,818,344 73,008

Program Increases:

Integrated Modernization Business Plan 113,799 91 113,799 91

Implementing the Taxpayer First Act 11,260 92 95,100 170 106,360 262

Subtotal FY 2021 Program Increases $11,260 92 $95,100 170 $113,799 91 $220,159 353

Total FY 2021 Request (Before Cap) $2,562,554 25,678 $5,071,260 35,026 $4,104,689 12,140 $300,000 517 $12,038,503 73,361

Dollar/FTE Change FY 2021 Request over FY 2020 Enacted $27,000 (1,082) $161,760 (362) $219,689 170 $120,000 91 $528,449 (1,183)

Percent Change FY 2021 Request over FY 2020 Enacted 1.06% -4.04% 3.29% -1.02% 5.65% 1.42% 66.67% 21.36% 4.59% -1.59%

Cap Adjustment Program Increases

Increase Audit Coverage 123,440 1,325 49,740 8 173,180 1,333

Increase Collection Coverage 119,737 1,334 50,769 8 170,506 1,342

Expand Coverage in the Tax-Exempt Sector 12,102 109 3,664 15,766 109

Expand Cyber and Virtual Currency Compliance Efforts 24,704 101 15,844 40,548 101

Subtotal FY 2021 Cap Adjustment Investments $279,983 2,869 $120,017 16 $400,000 2,885

Total FY 2021 Request Including Cap Adjustment $2,562,554 25,678 $5,351,243 37,895 $4,224,706 12,156 $300,000 517 $12,438,503 76,246

Dollar/FTE Change FY 2021 Request Including cap over FY 2020 Enacted $27,000 (1,082) $441,743 2,507 $339,706 186 $120,000 91 $928,449 1,702

Percent Change FY 2021 Request Including cap over FY 2020 Enacted 1.06% -4.04% 9.00% 7.08% 8.74% 1.55% 66.67% 21.36% 8.07% 2.28%

TAXPAYER SERVICES ENFORCEMENT OPERATIONS 

SUPPORT BSM TOTAL


Department of the Treasury 

Departmental Offices 

Salaries and Expenses 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2021 
SE - 2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes .................................................... 10

E – Legislative Proposals .......................................................................................................... 11

Section II – Annual Performance Plan and Report ................................................................. 12

A – Strategic Alignment ........................................................................................................... 12

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Executive Direction Resources and Measures .............................................................. 12

Executive Direction Budget and Performance .......................................................................... 12

2.1.2 – International Affairs and Economic Policy Resources and Measures .......................... 13

International Affairs and Economic Policy Budget and Performance ...................................... 13

2.1.3 – Domestic Finance and Tax Policy Resources and Measures ........................................ 18

Domestic Finance and Tax Policy Budget and Performance .................................................... 18

2.1.4 – Treasury-wide Management and Programs Resources and Measures .......................... 23

Treasury-wide Management and Programs Budget and Performance ..................................... 24

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures....... 30

Committee on Foreign Investment in the United States Budget and Performance .................. 30

C – Changes in Performance Measures .................................................................................... 31

D – Evidence-Building Activity ............................................................................................... 31

Section III – Additional Information ........................................................................................ 34

A – Summary of Capital Investments ....................................................................................... 34
SE - 3 

Section I – Budget Request 

A – Mission Statement 

Maintain a strong economy and create economic and job opportunities by promoting conditions 

that enable economic growth and stability at home and abroad, and manage the U.S. 

Government’s finances and resources effectively. 

B – Summary of the Request 

The FY 2021 Request proposes increases to help implement programs that bolster U.S. economic 

growth, promote financial stability, enhance national security, transform government-wide 

financial stewardship, and achieve operational excellence. Particular focuses of this request are 

continued expansion of the Office of Cybersecurity and Critical Infrastructure Protection’s 

(OCCIP’s)1 efforts to protect the U.S. financial services sector from cyberattacks and improve 

resilience of critical infrastructure, continued expansion of the Office of Tax Policy’s impact 

analyses of tax regulations, funding to pay the State Department’s increased bill for the Capital 

Security Cost Share Program, the creation of a maintenance and minor repair budget to support 

the Treasury-owned facilities, and funding to support the Evidence Act and Office of Minority 

and Women Inclusion mandates. 

In addition to requested increases for the Treasury Departmental Offices (DO) Salaries and 

Expenses (SE) account, DO anticipates transferring in and executing $15 million from the 

$20 million request for the Committee on Foreign Investment in the United States (CFIUS) 

Fund, discussed separately. 

1.1 – Appropriations Detail Table 

Note: FY 2019 FTEs are Actuals 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury. 

 

1 The Department of the Treasury has recognized the continuing increase in cyber threats and the need to continue enhancing 

cybersecurity in the financial sector. To reflect these changes, Treasury has refocused and renamed the office from the former

“Office of Critical Infrastructure Protection and Compliance Policy” name to the “Office of Cybersecurity and Critical 

Infrastructure Protection” (OCCIP). 

Dollars In Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Executive Direction 98 $35,407 106 $36,775 102 $37,714 -3.8% 2.6%

International Affairs and Economic Policy 157 $52,428 180 $52,825 181 $54,367 0.6% 2.9%

Domestic Finance and Tax Policy 210 $72,570 226 $78,153 237 $84,506 4.9% 8.1%

Treasury-wide Management and Programs 99 $39,171 110 $38,279 125 $40,740 13.6% 6.4%

Committee on Foreign Investment in the 

United States 32 $15,000 81 $22,341 120 $24,146 48.1% 8.1%

Subtotal New Appropriated Resources 596 $214,576 703 $228,373 765 $241,473 8.8% 5.7%

Other Resources

Reimbursable 46 $12,432 40 $9,071 40 $9,242 0.0% 1.9%

Transfer from CFIUS Fund 0 $0 0 $15,000 0 $15,000 NA 0.0%

Subtotal O ther Resources 46 $12,432 40 $24,071 40 $24,242 0.0% 0.7%

Total Budgetary Resources 642 $227,008 743 $252,444 805 $265,715 8.3% 5.3%

% Change

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request
SE - 4 

1.2 – Budget Adjustments Table 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ..................................................... +$5,472,000 / + 0 FTE 

Pay Annualization (3.1%) +$1,023,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$998,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$1,100,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$2,351,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Dollars in Thousands FTE Amount

FY 2020 Enacted 703 $228,373

Changes to Base:

Maintaining Current Levels (MCLs): 0 5,472

Pay Annualization (2020 3.1% average pay raise) 0 $1,023

Pay Raise (1% average pay raise) 0 $998

FERS Contribution Increase 0 $1,100

Non-Pay 0 $2,351

Efficiency Savings 0 ($1,246)

Subtotal Changes to Base 0 $4,226

FY 2021 Base 703 $232,599

Program Changes:

Reinvestments 39 $0

Staffing to Support CFIUS Caseload Growth 39 $0

Program Increases: 23 $8,874

Strengthen Cybersecurity of the Financial Services Sector 8 $3,700

Impact Analyis of Tax Regulations 3 $1,063

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 0 $333

Attaché Cost Increases from State Department 0 $498

Implementation of Evidence Act of 2018 3 $723

Main Treasury and Freedman's Bank Building Annual Maintenance 0 $550

Increase Office of Minority and Women Inclusion staffing 2 $507

Management and Oversight for US Secret Service 7 $1,500

FY 2021 President's Budget Request 765 $241,473
SE - 5 

Efficiency Savings ......................................................................................... -$1,246,000 / -0 FTE 

Contractual Support -$1,246,000 / -0 FTE 

DO will achieve cost savings and efficiencies in contract services through more efficient contract 

oversight, consolidating contracts where appropriate, and partnering with other agencies and DO 

components to leverage common technology or administrative support needs. 

Reinvestments .......................................................................................................... +$0 / +39 FTE

Staffing to Support CFIUS Caseload Growth +$0 / +39 FTE 

Increase in CFIUS staffing to support anticipated program growth. Funding will come from 

redirecting contract spending. 

Program Increases ................................................................................... +$8,874,000 / +23 FTE 

Strengthen the Financial Services Sector’s Cybersecurity and Critical Infrastructure Protection 

+$3,700,000 / +8 FTE 

The U.S. financial services sector faces a broad range of cybersecurity vulnerabilities and 

physical hazards. Adversaries and malicious actors have recently exploited vulnerabilities in the 

financial sector, leading to major financial industry breaches and disruptions. The potential for 

damage in the event of a major breach is massive. The scale of transactions of the largest 

financial systems dwarfs the U.S. GDP. For example, the largest U.S. real-time gross settlement 

system transmitted over $700 trillion in 2018. Although many U.S. financial institutions are well 

protected from attack, adversaries and malicious actors continue to grow in technical capability, 

and their attacks continue to increase in sophistication and severity. 

The FY 2021 Request would enable Treasury, the sector-specific agency for financial services 

critical infrastructure, to help the private sector and regulators shift toward a more proactive 

posture toward these risks and challenges. This request would reduce risks by allowing Treasury 

and its partners to identify and address vulnerabilities before they can be exploited. This request 

builds on FY 2020 initiatives for which Congress provided the Office of Cybersecurity and 

Critical Infrastructure Protection (OCCIP) a $4.0 million increase. It expands FY 2020 efforts to 

map critical financial processes, assess and mitigate financial institution-level vulnerabilities, and 

study new technologies for potential risks to the sector. The FY 2021 Request also proposes 

funding one additional cyber center liaison to meet the increasing demands from the financial 

services sector for more information sharing and a new staff member to provide cybersecurity 

expertise to the CFIUS review process. 

Identify, Map, and Prioritize Risks and Vulnerabilities +$3,194,000 / +6 FTE

This initiative will support efforts to identify risks to large financial institutions, key third parties, 

and the other infrastructures and technologies on which the sector relies (e.g., energy and 

telecommunications) to pinpoint shared vulnerabilities with potential systemic implications. 

This would include completion of the first version of comprehensive financial process maps. 

Through this initiative, Treasury will identify and diagram the infrastructure required to deliver 

critical financial transactions; automate maintenance of the maps; and implement visualization 

techniques to further understand cascading effects of cyber events in the sector to mitigate 

damage to the infrastructure. Additionally, Treasury will use the requested funding to conduct 

cross-cutting studies of the firms that are critical and how they support key national critical 

functions. In conjunction with process mapping, this examination will allow Treasury to identify 

and reduce vulnerabilities to these key financial sector institutions. Finally, Treasury will 
SE - 6 

proactively assess new and emerging technologies in the financial sector to identify 

vulnerabilities and mitigate any associated risks. 

The FY 2021 Request focuses on three ongoing activities: 

 Map critical processes, institutions, and data flows +$1,085,000 / +0 FTE: OCCIP will work 

with industry to identify, map, and prioritize vulnerabilities, focusing on 27 key financial 

sector institutions, critical infrastructure (e.g., electrical grid), and industry processes (e.g., 

credit card authorization and settlement). 

 Identify, study, and analyze vulnerabilities by engaging key financial institutions 

+$1,249,000 / +3 FTE: Identify and mitigate cybersecurity and operational risks and 

vulnerabilities at key financial institutions. Improve the security and resilience of the 

sector’s cybersecurity to reduce exploitable vulnerabilities. 

 Assess emerging technologies +$860,000 / +3 FTE: Analyze emerging technologies for their 

potential security risks to financial sector networks, systems, and processes. Continuously 

develop and improve OCCIP’s knowledge of emerging technologies in order to provide risk 

reduction advice for the sector. 

Mitigate/Avoid Risks +$506,000 / +2 FTE 

Treasury/OCCIP plays an important role in the National Cyber Strategy, which the President 

announced in September 2018. In addition, Treasury partners with the Departments of Energy 

and Homeland Security (i.e., the “Tri-Sector Council”) to mitigate risks from specific threat 

actors against financial institutions, energy infrastructure, and telecom companies. Treasury’s 

partnerships among sectors and agencies ultimately enable more timely and actionable 

dissemination of threat and vulnerability information to support risk mitigation. The FY 2021 

Request will help prevent the introduction of new vulnerabilities into systems, lower risks to the 

sector, and reduce recovery costs from incidents. This initiative comprises two ongoing 

activities: 

 Enhance OCCIP’s protection of the financial sector via the Committee on Foreign 

Investment in the United States (CFIUS) +$233,000 / +1 FTE: Assist in understanding 

product and supply chain dependencies and potential risks of transactions under review by 

CFIUS. 

 Cyber Command Liaison Officer +$273,000 / +1 FTE: Fund a full-time Liaison Officer at 

U.S. Cyber Command, which is one of the unified commands of the Department of Defense. 

This liaison will increase cyber threat information-sharing with financial institutions to 

provide early indications of malicious activity and cyber vulnerabilities that could harm the 

sector and the American people. 

Impact Analysis of Tax Regulations +$1,063,000 / +3 FTE 

One of the Administration’s goals is to bring clarity to the complex Internal Revenue Code and 

to provide useful guidance to taxpayers. Following enactment of the Tax Cuts and Job Act 

(TCJA) of 2017, pursuant to a Memorandum of Agreement between Treasury and OMB in April 

2018, Treasury agreed to create a new framework to accommodate Executive Order (EO) 12866 

– Regulatory Planning and Review. The EO requires a review of tax regulations with the 

objective of providing taxpayers with economic analysis for significant tax regulations while 

reducing regulatory burdens and providing timely tax guidance for taxpayers. To accomplish 

this, the Office of Tax Policy (OTP) requests $1.1 million and three FTE to conduct robust 
SE - 7 

regulatory impact analyses of “significant” tax regulations as determined by OMB. Failure to 

adequately fund this effort will result in fewer regulations available for OMB review and 

subsequent publication and lead to an increase in taxpayer confusion, lowering compliance with 

the TCJA. 

Operations and Maintenance (O&M) of Prior-year Enterprise-wide Cybersecurity Investments 

+$333,000 / +0 FTE 

Treasury’s Cybersecurity Enhancement Account has made a number of key investments over the 

past two years which have resulted in significant improvements in Treasury’s Cross Agency 

Priority (CAP) scores. From FY 2018 Quarter 2 to FY 2019 Quarter 2, Treasury has seen, met 

or exceeded six out of 10 federal-wide targets, which represented a 30 percent improvement over 

the prior year. This request level will sustain those prior year investments, to include operations 

and maintenance costs for improvements to the Treasury Secure Data Network (TSDN), 

Treasury’s secret network, and advanced monitoring and mitigation capabilities for the Treasury 

Government Security Operations Center consistent with the National Continuous Diagnostics 

and Mitigation (CDM) strategy. 

Attaché Cost Increases from State Department +$498,000 / +0 FTE 

As representatives of the United States’ financial diplomacy efforts, attachés possess expertise 

on financial authorities, financial intelligence, economic policy, sanctions, and anti-money 

laundering/countering the financing of terrorism. The State Department considers Treasury 

attachés to be significant force multipliers on the embassy teams in which they operate. 

Incremental annual increases in mandatory overseas support costs continue to erode the program 

office base budget. In FY 2017 and FY 2018, agencies were provided a credit on their State 

Department Capital Security Cost Share bill to partially mitigate the impact of increases. 

Reduced payroll cost within non-CFIUS functions of the Office of International Affairs (IA), in 

addition to the closure of an overseas duty post, allowed IA to absorb the remainder of these cost 

increases through FY 2019, but this funding will no longer be available to support these costs in 

FY 2021. 

Implementation of Evidence Act of 2018 +$723,000 / +3 FTE 

This initiative is to support Treasury-wide data-driven strategic management processes and 

bolster evidence-building capability in furtherance of the Foundations for Evidence-Based 

Policymaking Act of 2018. It would fund key investments in personnel to increase DO’s 

analytic capacity and better understand areas of potential risk and investment. 

Office of the Chief Data Officer +$472,000 / +2 FTE: P.L. 115-435 (The Evidence Act) requires 

agencies to designate a Chief Data Officer. This funding request is to stand up an office of the 

Chief Data Officer to be comprised initially of two positions. The Chief Data Officer’s goals are 

to ensure data is used as a strategic asset, increase use of data in decision-making and evidencebuilding, and increase coordination of data collection and use. 

Treasury Organizational Performance and Evaluation Program +$251,000 / +1 FTE: The 

Office of Strategic Planning and Performance Improvement (OSPPI) requests one position to 

better support implementation of the Evidence Act, by dedicating a senior program lead to serve 
SE - 8 

as the Department’s Evaluation Officer and Government Performance and Results 

Modernization Act Program Manager. This investment would enable the Department to build a 

better evidence base for informing policy and strategy decisions as well as address priority 

questions identified in the agency learning agenda. A dedicated senior accountable official will 

enable the Department to build a better evidence-base for informing policy and strategy 

decisions. This request will also enable dedicating a modest amount of funding to procure 

evaluation and research support from other agencies or academic institutions to address priority 

questions identified in the agency learning agenda.

Main Treasury and Freedman’s Bank Building Annual Maintenance +$550,000 / +0 FTE 

This request represents a portion of the maintenance and minor repair budget of Treasury-owned 

space, including the Main Treasury (MT) Building and the Freedman’s Bank Building (FBB). 

Treasury is in a unique position from many other Federal agencies in that it owns historic 

buildings, which require more and complex routine maintenance. The scope supported by this 

funding represents a broad range of continuous facility needs that include historical preservation; 

significant water leaks/intrusion; failure of minor electrical components, plumbing components 

and fixtures, hardware and doors, plaster, and paint; and all small projects that fall below the 

capital improvements level. While the MT and FBB have been kept functional under limited 

funding, it has not been sufficient to properly maintain the buildings, resulting in the deferral of 

important maintenance and repair work. Deferred maintenance results in additional costs and 

scope to perform the work later. 

Increase Office of Minority Women and Inclusion Staffing +$507,000 / +2 FTE 

The Office of Minority and Women Inclusion (OMWI) was mandated under Section 342 of the 

Dodd Frank Act (P.L.111-203). The initiative will expand steps to seek diversity in the 

workforce at all levels and fair utilization of minority and women-owned businesses in the 

business activities of the agency. The new staff will support efforts to institute a more 

transparent and data-driven accountability structure to measure success, review the impact 

agency policies on minority and women-owned businesses, and inform evidence-based decisionmaking. This request will also strive to create a more efficient and effective team of diversity 

and inclusion experts to implement innovative solutions and new technologies that address 

behavioral and systematic impediments to success. 

Management and Oversight for United States Secret Service (USSS) +$1,500,000 / +7 FTE 

Contingent upon enactment of authorizing legislation to transfer the United States Secret Service 

to the Department of the Treasury, an additional $1.5 million will be necessary for expenses of 

the Departmental Offices related to oversight of the USSS in areas such as IT, human capital, 

and budget. 

 
SE - 9 

1.3 – Object Classification (Schedule O) Obligations 

Note: $1.5 million of the Treasury-wide Management and Programs request in 2021 is contingent on enactment of legislation transferring the 

U.S. Secret Service to the Department of the Treasury 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification Actual 

O bligations

Estimated 

O bligations

Estimated 

O bligations

11.1 - Full-time permanent 88,194 98,184 105,718

11.3 - Other than full-time permanent 1,504 1,760 1,760

11.5 - Other personnel compensation 2,493 2,535 2,535

11.8 - Special personal services payments 1,343 0 0

11.9 - Personnel Compensation (Total) 93,534 102,479 110,013

12.0 - Personnel benefits 27,249 30,599 31,810

Total Personnel and Compensation Benefits $120,783 $133,078 $141,823

21.0 - Travel and transportation of persons 4,614 2,970 3,174

22.0 - Transportation of things 200 183 190

23.1 - Rental payments to GSA 0 291 346

23.2 - Rental payments to others 1,528 670 699

23.3 - Communications, utilities, and miscellaneous charges 76 174 203

24.0 - Printing and reproduction 0 42 44

25.1 - Advisory and assistance services 12,555 12,945 14,095

25.2 - Other services from non-Federal sources 3,197 5,849 5,960

25.3 - Other goods and services from Federal sources 81,275 84,671 88,801

25.4 - Operation and maintenance of facilities 121 0 0

25.7 - Operation and maintenance of equipment 271 1,417 1,476

26.0 - Supplies and materials 2,551 3,960 4,259

31.0 - Equipment 2,345 2,195 2,145

32.0 - Land and structures 536 4,000 2,500

42.0 - Insurance claims and indemnities 65 0 0

Total Non-Personnel $109,334 $119,366 $123,893

Total O bligations $230,117 $252,444 $265,715

Full Time Equivalents (FTE) 642 743 805

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
SE - 10 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of 

Changes 

DEPARTMENT OF THE TREASURY 

DEPARTMENTAL OFFICES 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Departmental Offices including operation 

and maintenance of the Treasury Building and Freedman's Bank 

Building; hire of passenger motor vehicles; maintenance, repairs, and 

improvements of, and purchase of commercial insurance policies for, 

real properties leased or owned overseas, when necessary for the 

performance of official business; executive direction program activities; 

international affairs and economic policy activities; domestic finance 

and tax policy activities, including technical assistance to State, local, 

and territorial entities; and Treasury-wide management policies and 

programs activities, $239,973,000 [$228,373,000]: 

Provided, That of the amount appropriated under this heading- 

(1) not to exceed $350,000 is for official reception and representation 

expenses; 

(2) not to exceed $258,000 is for unforeseen emergencies of a 

confidential nature to be allocated and expended under the direction of 

the Secretary of the Treasury and to be accounted for solely on the 

Secretary's certificate; and 

(3) not to exceed $24,000,000 shall remain available until September 30, 

[2021] 2022, for- 

(A) the Treasury-wide Financial Statement Audit and Internal Control 

Program; 

(B) information technology modernization requirements; 

(C) the audit, oversight, and administration of the Gulf Coast Restoration 

Trust Fund; 

(D) the development and implementation of programs within the Office 

of Critical Infrastructure Protection and Compliance Policy, including 

entering into cooperative agreements; 

(E) operations and maintenance of facilities; and 

(F) international operations. (Department of the Treasury Appropriations 

Act, 2020.) 

Contingent upon enactment of authorizing legislation to transfer the 

United States Secret Service to the Department of the Treasury, an 

additional $1,500,000 for necessary expenses of the Departmental 

Offices of the Department of the Treasury. 

 

 
SE - 11 

E – Legislative Proposals 

Transfer the United States Secret Service to the Department of the Treasury

The Budget proposes to transfer the United States Secret Service from the Department of 

Homeland Security to the Department of the Treasury. The proposed funding will support 

necessary expenses for the coordination and oversight of the transfer by the Departmental 

Offices of the Department of the Treasury. For additional information on the transfer proposal, 

please consult the Department of the Treasury chapters of the Main Budget Volume and the 

Major Savings and Reform Volume. 

“Contingent upon enactment of authorizing legislation to transfer the United States Secret 

Service to the Department of the Treasury, an additional $1,500,000 for necessary expenses of 

the Departmental Offices of the Department of the Treasury.” 

Create a Freedom of Information Act exemption for certain financial sector cybersecurityrelated information to increase protection of the U.S. financial services sector. 

This proposal would provide Treasury with an appropriately scoped Freedom of Information Act 

(FOIA) exemption for cybersecurity-related information, in furtherance of the Department’s 

responsibilities to enhance the security and resilience of the financial services sector’s critical 

infrastructure. To identify risks to financial sector critical infrastructure, Treasury relies on 

private-sector financial organizations to provide a range of cyber threat and vulnerability 

information. Firms in the sector have not been sharing such information with Treasury due to 

concerns that their sensitive information will be subject to public disclosure under FOIA. A 

narrowly-tailored FOIA exemption would enable Treasury to leverage its relationship with the 

sector to improve information sharing. This proposal would strengthen Treasury’s ability to 

identify risks to financial sector critical infrastructure and enable public and private-sector action 

to mitigate significant risks. 

 
SE - 12 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Departmental Offices (DO) is Treasury’s headquarters bureau. It provides leadership in 

economic and financial policy, financial intelligence, and general management. Treasury utilizes 

effective management, policies, and leadership to protect our national security through targeted 

financial actions, promote the stability of the nation’s financial markets, and ensure the 

government’s ability to collect revenue and fund its operations. DO aligns to all Treasury 

strategic goals and objectives. Specific alignment by budget activity is indicated below. 

B – Budget and Performance by Budget Activity 

2.1.1 – Executive Direction Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $35,200 $36,988 $36,980 $32,993 $35,407 $36,775 $37,714 

Other Resource $21,677 $29,632 $22,997 $25,455 $4,863 $1,538 $1,563 

Budget Activity Total $56,877 $66,620 $59,977 $58,448 $40,270 $38,313 $39,277 

Full-time Equivalents (FTE) 185 201 161 159 113 114 110 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Executive Direction Budget and Performance 

($37,714,000 from direct appropriations, $1,563,000 from reimbursable sources): 

The Executive Direction program area provides direction and policy formulation to DO and the 

rest of Treasury and interacts with Congress and the public on policy matters. 

No specific performance goals/measures are presented for this budget activity because the work 

of these offices is captured within the other budget activities. 
SE - 13 

2.1.2 – International Affairs and Economic Policy Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $54,758 $56,886 $57,191 $48,460 $52,428 $52,825 $54,367 

Other Resource $5,896 $14,680 $10,617 $9,795 $2,701 $1,689 $1,735 

Budget Activity Total $60,654 $71,566 $67,808 $58,255 $55,129 $54,514 $56,102 

Full-time Equivalents (FTE) 249 262 253 220 161 182 183 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

IA - Monitor Quality and Enhance 

Effectiveness of International Monetary 

Fund (IMF) Lending Through Review of

IMF Country Programs

100 100 100 100 100 100 100 100

IA - Monitor Quality and Enhance 

Effectiveness of MDB Lending Through

Review of MDB Grant and Loan 

Proposals

100 100 100 100 100 100 100 100

IA - Percentage of MDB Grant and Loan

Proposals Containing Satisfactory 

Frameworks for Results Measurement

93 89 96 97.6 95 95 95 95

OTA - Program Engagement 3.8 3.9 4.0 3.8 3.8 3.6 3.6 3.6

International Affairs and Economic Policy Budget and Performance 

($54,367,000 from direct appropriations, $1,735,000 from reimbursable sources): 

The offices in this budget activity promote economic growth in the U.S. by producing technical 

economic analyses for the Secretary and advancing U.S. economic and financial policy priorities 

around the world. 

Office of International Affairs (IA) 

This office supports the following strategic objectives for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

Treasury and other regulations and advancing domestic economic policies that boost 

investment, employment, and innovation. 

 Objective 1.4 – Free and Fair Trade: Advance a free and fair trade environment for U.S. 

businesses through successful negotiation of trade agreements and investment policies. 

This office supports the following strategic objectives for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.3 – Foreign Technical Assistance: Provide technical assistance to enable foreign 

partner countries to better raise and manage financial resources and protect their financial 

sectors. 

 
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This office supports the following strategic objectives for Strategic Goal 3, to enhance national 

security: 

 Objective 3.1 – Strategic Threat Disruption: Identify, dismantle, and disrupt priority threats 

to the U.S. and international financial systems. 

 Objective 3.3 – Economic Strength and National Security: Advance American prosperity and 

security through growth, investment, trade, and expanding the American industrial base 

while protecting national security. 

This office supports the following strategic objective for Strategic Goal 4, to transform 

government-wide financial stewardship: 

 Objective 4.1 – Financial Data Access/Use: Increase the access and use of federal financial 

data to strengthen government-wide decision-making, transparency, and accountability. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

International Affairs 

In FY 2019, IA worked to put in place policies that achieve faster U.S. and global growth and 

higher after-tax wages for American workers. This involved ambitious reforms for trade, energy, 

financial regulation, infrastructure, and international relations, all of which continue into 

FY 2020. 

Free, fair, and reciprocal trade has been a cornerstone of our economic agenda, and Treasury has 

worked with our interagency colleagues and trading partners in order to modernize trade for the 

benefit of all Americans. These values have been reflected in our government’s ongoing 

negotiations with China and in the historic trade deal we recently signed with Japan. The United 

States-Mexico-Canada Agreement, passed by the U.S. Congress in January 2020, will establish 

the highest standards ever in a trade agreement to enhance digital trade, protect intellectual 

property rights, support small and mid-sized businesses, open markets for agricultural products, 

and spur manufacturing. Treasury is playing a lead role in analyzing the implications for U.S. 

financial services firms of the United Kingdom’s exit from the European Union. In addition, as 

the lead U.S. agency in negotiating reductions of export finance subsidies, Treasury continues to 

press China and other major providers of export finance to agree to disciplines on government 

support, so that U.S. exporters can compete globally on a level playing field. These efforts serve 

not only to enhance U.S. competitiveness but also move export credit financing to a more 

market-reflective basis consistent with Congressional mandates. 

Treasury works to address the large and persistent global imbalances and unfair currency 

practices that threaten strong and sustainable U.S. economic growth. Treasury seeks to level the 

playing field for U.S. businesses through multilateral and bilateral engagements on foreign 

exchange practices. Treasury does this via multilateral and bilateral activities working through 

the International Monetary Fund (IMF) and the Group of 20 Nations (G-20). As an example, 

Treasury continues to press for stronger exchange rate surveillance in the IMF. Treasury 
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continues its close oversight of multilateral development bank (MDB) policies and programs and 

continues to promote reforms to further enhance their efficiency, effectiveness, and financial 

discipline. Recently negotiated reforms – led by the United States - will improve financial 

management and debt sustainability while increasing the MDBs’ focus on infrastructure, 

women’s economic empowerment, and assistance to fragile states. 

Treasury promotes economic growth by managing U.S. participation and leveraging U.S. 

leadership positions in the International Financial Institutions in order to mitigate emerging 

threats to the U.S. and global economies; support international trade and investment; and 

reinforce U.S. national security interests in key countries around the world. 

International Affairs Description of Performance: 

 Monitor Quality and Enhance Effectiveness of IMF Lending through Review of IMF 

Country Programs: This measure tracks efforts by IA staff to monitor the quality of IMF 

country programs and ensure the application of appropriately high standards for the use of 

IMF resources. The target (100 percent) was met in FY 2019. In FY 2020 and FY 2021, 

IA’s target for this measure remains 100 percent. 

 Monitor Quality and Enhance Effectiveness of MDB Lending through Timely Review of 

MDB Grant and Loan Proposals: IA reviews MDB loan and grant proposals to ensure that 

funded projects meet several key goals, which include supporting long-term U.S. objectives, 

having a measurable development impact, and being consistent with congressional mandates. 

The target (100 percent) was met in FY 2019. In FY 2020 and FY 2021, IA aims to continue 

its review of 100 percent of MDB loan and grant proposals prior to the date of the relevant 

Executive Board meeting and increase its oversight of projects during implementation. 

 Percentage of MDB Grant and Loan Proposals Containing Satisfactory Frameworks for 

Results Measurement: This measure tracks the percentage of grant and loan project proposals 

that contain a satisfactory framework for measuring project results (such as outcome 

indicators, quantifiable and time-bound targets, etc.) This information is measured on an 

annual basis. In FY 2019, 95 percent of MDB grant and loan project proposals had excellent 

or satisfactory ratings for the results matrices. The FY 2020 target is 95 percent, and the FY 

2021 target is 95 percent. 

Office of Technical Assistance 

Treasury’s Office of Technical Assistance (OTA) complements Treasury’s international 

economic and terrorist financing policy work. Treasury’s offices of International Affairs and 

Terrorism and Financial Intelligence advocate for improvements in economic and terrorist 

financing policies internationally. OTA helps the governments of developing and transitioning 

countries build the human and institutional capacity to implement such policy improvements. 

 

Office of Technical Assistance Description of Performance: 

 Office of Technical Assistance (OTA) Program Engagement (Traction): Measures the 

degree to which foreign counterparts are engaging proactively and constructively with OTA 

advisors, at the working and policy levels. Counterpart engagement is both a key outcome of 

OTA efforts to structure and execute effective technical assistance projects that support host 
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country ownership as well as the most crucial input to the successful achievement of the 

intermediate goals and ultimate outcomes described in the project’s terms of reference and 

work plan during the fiscal year – such as passage of law or regulation, an increase in 

government revenues, an improvement in a government’s credit rating, or a reduction in 

economic crimes. The measure is scored on a 5-point scale and averaged across all projects 

to provide one overall measure of OTA’s performance. In FY 2019, the Traction score was 

3.8, exceeding the target of 3.6. In FY 2020 and FY 2021, IA’s target for Traction is 3.6. 

Office of Economic Policy (EP) 

This office supports the following strategic objective for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

Treasury and other regulations and advancing domestic economic policies that boost 

investment, employment, and innovation. 

This office supports the following strategic objective for Strategic Goal 3, to enhance national 

security: 

 Objective 3.2 – AML/CFT Framework: Identify and reduce vulnerabilities in the U.S. and 

international financial system to prevent abuse by illicit actors. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

Macroeconomic Analysis 

During the past year, EP staff in the Office of Macroeconomic Analysis have closely monitored 

U.S. economic performance. The office’s high-quality analytic updates served as DO’s main 

internal source of information on U.S. macroeconomic developments and informed a wide range 

of high-level engagements and official publications, including the Bank/Fund and regional 

development bank meetings, meetings of the G-7 and G-20, the Quarterly Treasury Bulletin, the 

report to Congress titled, “Foreign Exchange Policies of Major Trading Partners of the U.S.,” the 

Economy Statement for the Treasury Borrowing Advisory Committee, and the U.S. 

Government’s Annual Financial Report. 

The office continued to deliver the High-Quality Market Corporate Yield Curve (a set of daily 

rates issued on a monthly basis) as mandated under the Pension Protection Act and to produce a 

Treasury Real Coupon-Issue Yield Curve, a companion to the Treasury Nominal Coupon-Issue 

Yield Curve, in addition to several other yield curves. These yield curve data are used 

extensively throughout the private sector and executive agencies that administer private and 

public pension programs and other future payment programs to calculate their annual liabilities. 

Finally, economists in the Macro office help prepare the economic assumptions used to create 

the Administration’s Budget. 
SE - 17 

Microeconomic Analysis 

The Office of Microeconomic Analysis has been actively engaged in helping the public and 

policymakers understand important economic policy issues including economic issue briefs 

covering a wide range of economic topics, including education finance reform, multiemployer 

pensions, digital assets, and labor market developments. Other activities included: 

 Significant contributions to Treasury’s September 2019 Housing Reform Plan, which aims 

to improve the U.S. housing finance system for borrowers while protecting taxpayers; 

 Regulatory Impact Analysis for Treasury’s Alcohol and Tobacco tax and Trade Bureau on a 

proposed deregulatory policy change; 

 A congressionally-mandated analysis of a potential Committee on Foreign Investment in the 

United States application fee; 

 Analysis of the potential impact on economic growth of the Administration’s infrastructure 

investment proposal; and 

 Ongoing coordination and analysis related to the Secretary’s role as Managing Trustee of 

the Social Security and Medicare Trust Funds. 

Social Impact Partnerships to Pay for Results Act 

Economic Policy is also responsible for implementation and ongoing management of the Social 

Impact Partnerships to Pay for Results Act (SIPPRA) program. SIPPRA, signed into law on 

February 9, 2018, appropriated $100 million to fund social impact partnership projects and 

feasibility studies to prepare for such projects. Program funds may be obligated through 

February 8, 2028, and not less than fifty percent of funding for social impact partnership projects 

must be provided for initiatives that directly benefit children. The SIPPRA program aspires to 

demonstrate a new model of implementing and funding projects designed to solve entrenched 

societal problems such as homelessness, recidivism among juvenile offenders, and incidences of 

childhood abuse and neglect. 

SIPPRA issued its first Notice of Funding Availability on February 21, 2019 with the 

expectation of awarding up to $66.29 million in funding for social impact partnership project 

grants with fifty percent of this funding allocated for initiatives designed to directly benefit 

children. Twenty-one applications were received and evaluated by Treasury staff and subject 

matter expert panels. Nine applications were provided to the Commission on Social Impact 

Partnerships (Commission) for review and funding recommendations to the Secretary of the 

Treasury (Secretary) and to the Federal Interagency Council on Social Impact Partnerships 

(Council) for application certification. The Commission, a federal advisory committee 

comprised of nine private-sector individuals nominated by the President and Congressional 

leadership, met multiple times in 2019 and made eight funding recommendations to the 

Secretary. SIPPRA anticipates issuing an additional Notice of Funding Availability for 

demonstration projects in FY 2022. The Council, which is chaired by OMB and includes 

representatives from ten federal agencies, was stood up in 2019. The Council is required to 

certify for each application that (1) the application “contains rigorous, independent data and 

reliable, evidence-based research methodologies to support the conclusion that the project will 

yield savings to the State or local government or the Federal Government if the project outcomes 

are achieved,” SIPPRA Section 2056(a)(8); (2) the “project will yield a projected savings to the 

Federal Government if the project outcomes are achieved,” SIPPRA Section 2056(a)(9); (3) the 

evaluation design proposed as the basis for outcome payments uses “experimental designs using 
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random assignment or other reliable, evidence-based research methodologies . . . that allow for 

the strongest possible causal inferences when random assignment is not feasible,” SIPPRA 

Section 2055(c); and (4) the applicant and proposed evaluator have “access to Federal 

administrative data to assist the State or local government and the evaluator in evaluating the 

performance and outcomes of the project.” SIPPRA Section 2056(a)(5); Treasury anticipates 

awarding grants by mid-calendar year 2020. 

2.1.3 – Domestic Finance and Tax Policy Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $78,589 $84,591 $83,104 $73,804 $72,570 $78,153 $84,506 

Other Resource $40,240 $55,231 $38,650 $42,042 $8,539 $5,844 $5,944 

Budget Activity Total $118,829 $139,822 $121,754 $115,846 $81,109 $83,997 $90,450 

Full-time Equivalents (FTE) 364 398 365 311 236 256 267 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

DF-Variance Between Estimated 

and Actual Receipts (Annual 

Forecast) (%)

2.80 3.10 4.00 2.33 3.14 4.25 4.25 4.25 

Domestic Finance and Tax Policy Budget and Performance 

($84,506,000 from direct appropriations, $5,944,000 from reimbursable sources): 

The Offices of Domestic Finance and Tax Policy monitor policy, legislation, and regulations, 

and provide advice and assistance to the Secretary about the financial services sector and taxes, 

as well as financial markets and the regulation of financial institutions. The Office of Tax Policy 

supports the Administration’s efforts in tax reform legislative proposals and regulatory 

implementation. 

Office of Domestic Finance (DF) 

This office supports the following strategic objective for Strategic Goal 1, to boost U.S. 

economic growth: 

 Objective 1.2 – Strong Economic Fundamentals: Spur faster economic growth by right-sizing 

regulations and advancing domestic economic policies that boost investment, employment, 

and innovation. 

This office supports the following strategic objectives for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.1 – Housing Finance Reform: Support housing finance reform to resolve 

Government-Sponsored Enterprise (GSE) conservatorships and prevent taxpayer bailouts of 

public and private mortgage finance entities, while promoting consumer choice within the 

mortgage market. 

 Objective 2.4 – Financial Sector Cybersecurity and Critical Infrastructure Protection: 

Enhance security, improve resiliency, and reduce the risk of significant cybersecurity and 
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other incidents to the financial sector’s critical infrastructure, domestically and 

internationally. 

This office supports the following strategic objectives for Strategic Goal 4, to transform 

government-wide financial stewardship: 

 Objective 4.1 – Financial Data Access and Use: Increase the access and use of federal 

financial data to strengthen government-wide decision-making, transparency, and 

accountability. 

 Objective 4.2 – Debt Management: Fund the federal government at the least cost over time. 

 Objective 4.3 – Federal Financial Performance: Improve federal financial management 

performance using innovative practices to support effective government. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

During FY 2019, DF worked to promote America’s long-term economic strength and stability 

by preserving confidence in the U.S. Treasury securities market, managing federal fiscal 

operations and the U.S. government’s debt, advising state and local governments on their 

finances, supporting community and economic development, and strengthening financial 

institutions and markets. DF advanced several key Administration policies, including financial 

regulatory reform, housing finance reform, and cybersecurity. 

Strong Economic Fundamentals 

To promote strong economic fundamentals, Treasury continued work to improve the financial 

regulatory system and strengthen the economy, consistent with the Administration’s “Core 

Principles” for regulating the U.S. financial system. These Core Principles, conveyed in 

February 2017 under Executive Order 13772, include empowering Americans to make 

independent financial decisions, preventing taxpayer-funded bailouts, and fostering economic 

growth. Given the breadth of the financial system and a complex regulatory environment, 

Treasury divided the review of the financial system into four reports, covering: (1) banks and 

credit unions; (2) capital markets; (3) asset management and insurance; and (4) non-bank 

financials, fintech, and innovation. 

Treasury published the fourth and final of the four Core Principles reports in July 2018. The 

reports make numerous recommendations for administrative and statutory reforms, which require 

action by the regulators and/or Congress. These reforms would, among other things, discourage 

taxpayer-funded bailouts, promote American companies’ competitiveness, and make regulation 

efficient, effective, and appropriately tailored. As of December 31, 2019, financial regulatory 

agencies and Congress had acted on or are acting on roughly 60 percent of about 370 

recommendations in the Core Principles reports. 
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During FYs 2020 and 2021, Treasury will continue to evaluate progress and work to support the 

implementation of the Core Principles recommendations for the U.S. financial system. 

Housing Finance Reform 

During the 2008 financial crisis, the GSEs (Fannie Mae and Freddie Mac) suffered significant 

losses because of structural flaws and inadequate oversight. To prevent the GSEs’ failure, the 

federal government placed them in conservatorship, which continues today. Treasury retains 

significant investments in the GSEs and continues to provide them capital support through the 

Senior Preferred Stock Purchase Agreements. These capital support agreements provide 

confidence to the financial markets that the GSEs will fulfill their financial obligations. These 

agreements have been amended several times since they were executed in 2008, most recently in 

FY 2019, when Treasury and the GSEs, acting through their conservator, the Federal Housing 

Finance Agency, agreed to increase the minimum capital reserve each entity is allowed to retain. 

In March 2019, the President signed a memorandum on the urgent need to reform the U.S. 

housing finance system. The memorandum directed Treasury to develop a plan for 

administrative and legislative reforms to end the GSE conservatorships, facilitate competition in 

the housing finance market, establish appropriate regulation of the GSEs, and provide for the 

federal government to be compensated for any support of the secondary housing finance market. 

In September 2019, Treasury released its Housing Finance Reform Plan. During FY 2020, 

Treasury is supporting congressional action, and administrative action pending legislation, to 

implement housing finance reform pursuant to the recommendations in its Plan. 

Financial Sector Cybersecurity and Critical Infrastructure Protection 

During FY 2019, DF also played an important role in supporting the cybersecurity and protecting 

critical infrastructure of the financial services sector. Treasury submitted to Congress, as 

required by law, a report on the risks of cyber threats. Further, the Office of Cybersecurity and 

Critical Infrastructure Protection (OCCIP) developed and executed twelve exercises, many cohosted with regional Federal Reserve Banks, involving other government and regional, small to 

medium-sized private-sector financial institutions. OCCIP also ran its first virtual tabletop 

exercise with participation from across the country remotely. Shortly afterwards, Treasury 

documented these results in an after action report for the participants that outlined areas for 

improvement to reduce vulnerabilities and risks in both the private and public sector. OCCIP 

will expand the number, type, and target audiences of these exercises in FYs 2020 and 2021. 

Also, in Treasury’s roles as chair of the Financial and Banking Information Infrastructure 

Committee and partner with the Financial Services Sector Coordinating Council, OCCIP 

continued pushing for enhanced voluntary cybersecurity information sharing among the member 

organizations. This is to minimize the time it takes to discover, contain, and mitigate cyber 

incidents, whether from malicious or natural causes. These efforts to enhance incident 

management coordination among the regulators and the private sector will also continue in 

FYs 2020 and 2021. 

Financial Data Access and Use 

During FY 2019, Treasury continued its leadership to increase the access to and use of federal 

financial data to strengthen government-wide decision-making, transparency, and accountability. 
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Treasury continued to make progress in government-wide implementation of the 2014 Digital 

Accountability and Transparency Act (DATA Act). The DATA Act requires the federal 

government to provide consistent, reliable, and useful online data about how it spends taxpayer 

dollars. In April 2018, DF fully transitioned to the new USAspending.gov website by sunsetting 

the legacy site. The new site allows taxpayers to examine nearly $4 trillion in annual federal 

spending and see how this money flows to local communities and businesses. In FY 2019, DF 

reviewed data quality. DF will work with OMB and federal agencies to drive continued 

improvements in FY 2020 and FY 2021. The data is compiled from federal agencies and 

published quarterly. In FY 2019, DF also continued to expand the sister site to 

USAspending.gov—the Data Lab—which provides additional use cases, data visualizations, and 

analysis with insights into federal spending and trends. Additionally, DF released the new online 

“Your Guide to America’s Finances,” which provides an overview of federal spending, revenues, 

debt, and deficit information. 

Debt Management

Another important DF responsibility is managing the U.S. government’s debt. The Office of 

Fiscal Projections (OFP) forecasts the government’s cash and debt activity. As discussed below, 

OFP achieved its performance goal for FY 2019 by ensuring that the variance between its 

projections of federal government receipts and actual federal receipts was no more than 4.25 

percent. 

Another DF office, the Office of Debt Management (ODM), seeks to fund the federal 

government at the least cost to the taxpayer over time by working to maintain predictable 

issuance of Treasury debt, minimizing the amount of interest the government must pay, and 

managing debt maturity over time. In FY 2019, Treasury introduced a new product to the 

Treasury securities market: the 8-week Treasury bill. In FY 2020, Treasury also announced the 

re-introduction of the 20-year Treasury bond. The goals for these new products are to satisfy 

investors and help Treasury to meet its goals for debt issuance. 

Domestic Finance Description of Performance: 

 Variance between estimated and actual receipts (annual forecast) (percent): As part of 

managing the federal government’s central operating account and cash position, OFP 

forecasts net cash flows (e.g., federal receipts and outlays) to ensure that adequate funds are 

available daily to cover federal payments. To determine its overall effectiveness, one of 

OFP’s metrics is to measure the variance between actual and projected federal receipts. A 

lower variance is better because that indicates a more accurate forecast. The actual variance 

for FY 2019 was 3.14 percent, which is lower than the 4.25 percent target. Because tax 

receipts are quite variable from year to year and are very sensitive to changes in macroeconomic conditions and legislative changes, accurate forecasts in one year do not 

necessarily portend accuracy in a subsequent year or period. OFP will maintain its target of 

4.25 percent for both FY 2020 and FY 2021. 

Office of Tax Policy (OTP) 

This office supports the following strategic objectives for Strategic Goal 1, to boost U.S. 

economic growth: 
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 Objective 1.1 – Tax Law Implementation: Administer tax law to better enable all taxpayers 

to meet their obligations, while protecting the integrity of the tax system. 

This office supports the following strategic objective for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

Tax Policy 

During FY 2019, the Office of Tax Policy (OTP) worked closely with the IRS in implementing 

provisions of the Tax Cuts and Jobs Act (TCJA). Together, they published final regulations on a 

number of TCJA provisions including changes related to the new section 199A pass-through 

deduction, the 100-percent additional depreciation deduction under section 168(k) and section 

170 that preserves the revenue in TCJA related to the imposition of a cap on state and local 

income tax deductions. Treasury and the IRS also implemented TCJA provisions related to the 

section 965 one-time repatriation tax and new section 951A regulations dealing with the 

computation of global intangible low-taxed income, including income by U.S. shareholders of 

foreign subsidiaries. In addition, OTP and the IRS promulgated proposed regulations and issued 

sub-regulatory guidance on a number of TCJA provisions, including the Opportunity Zones 

incentives, the base erosion and anti-abuse tax under section 59A, the foreign-derived intangible 

income rules of section 250, the disallowed interest deduction rules under section 163(j), and the 

income timing rules under section 451. The IRS also issued a number of updates to forms and 

updated the web page on IRS.gov to provide easy and comprehensive access for the public to 

final regulations, proposed regulations, and sub-regulatory guidance on TCJA provisions as they 

became available. Since TCJA’s passage in November 2017, Treasury has issued nearly 400 

items of guidance, including regulations, revenue procedures, revenue rulings and notices related 

to every section of TCJA. 

OTP also provided analysis in support of tax reform implementation, including updated tax 

withholding tables and inflation-adjusted tax parameters and regulatory impact analyses. The 

office also estimated the effects of proposed and final tax reform provisions on tax revenue 

(overall and for specific types of taxpayers), to inform policymakers and to produce the baseline 

for the Administration’s FY 2020 Budget. 

OTP continues to provide leadership for the Organisation for Economic Co-operation and 

Development (OECD), the Inclusive Framework, the Global Forum, and the G20, advocating for 

the interests of U.S. based businesses. In particular, during FY 2019, OTP played a leading role 

in developing OECD proposals (Pillar 1 and Pillar 2) intended to change certain aspects of the 

allocation of international taxing rights in an effort to combat the unilateral tax actions of 

multiple jurisdictions (e.g., the French digital services tax). As part of this effort, OTP attended 

and led numerous meetings at the OECD and organized numerous meetings with stakeholders 

(including with executives of major digital and non-digital companies) to discuss various 

alternatives. OTP plans to continue this effort in FY 2020. 
SE - 23 

In FY 2020 – FY 2021, OTP’s primary mission will continue to be leading tax reform 

implementation. This work will include regulatory and sub-regulatory guidance required to 

implement changes to the law by conducting cost-benefit analyses of many regulatory actions. 

The resulting Regulatory Impact Analyses (RIA) require detailed work. OTP received funding 

for FY 2019 to start hiring professionals to work on the RIA and hired seven new staff members. 

In 2020-2021, OTP hopes to continue the implementation with additional staff and technology 

funding to conduct the necessary analyses. 

2.1.4 – Treasury-wide Management and Programs Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $39,143 $41,446 $43,365 $40,494 $39,171 $38,279 $40,740 

Other Resource $55,213 $3,339 $4,284 $2,398 $226 0 0 

Budget Activity Total $94,356 $44,785 $47,649 $42,892 $39,397 $38,279 $40,740 

Full-time Equivalents (FTE) 171 124 153 147 100 110 125 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

EO 13771 - Number of Deregulatory 

Actions Issued* N/A N/A N/A 4 N/A I I I 

EO 13771 - Number of Deregulatory 

Actions Issued that Address 

Recommendations by the Regulatory 

Reform Task Force*

N/A N/A N/A 2 N/A I I I 

EO 13771 - Number of Deregulatory 

Actions Issued that Address 

Recommendations by the Regulatory 

Reform Task Force to the Agency Head 

Consistent with Applicable Law*

N/A N/A N/A 0 N/A I I I 

EO 13771 - Number of Evaluations to 

Identify Potential Deregulatory Actions 

That Included Opportunity for Public Input 

and/or Peer Review*

N/A N/A N/A 1 N/A I I I 

EO 13771 - Number of Regulatory Actions 

Issued* N/A N/A N/A 0 N/A I I I 

EO 13771 - Total Incremental Cost of All 

Regulatory Actions and Deregulatory 

Actions (Including Costs or Cost Savings 

Carried Over From Previous Fiscal 

Years)*

N/A N/A N/A $0 N/A I I I 

Percent of Procurement Dollars Spent on 

Small Business 35.11 36.17 35.01 42.63 40.4 38.5 39.0 N/A 

Treasury-wide Employee Engagement 

Index of the FEVS 66 67 68 68 69 69 70 71 

Treasury-wide Footprint (Square Footage) 35,439 34,894 34,100 33,766 33,209 33,356 32,895 32,593 

Treasury-wide Leaders Lead Index of the 

Federal Employee Viewpoint Survey 

(FEVS)

54 55 56 56 58 58 59 60 

Note: I – Performance Indicator 

*FY 2019 Actuals for these indicators pending review by OMB’s Office of Information and Regulatory Affairs 
SE - 24 

Treasury-wide Management and Programs Budget and Performance 

($40,740,000 from direct appropriations): 

This budget activity includes offices that are responsible for the internal management and policy 

of the Department: the Office of the Assistant Secretary for Management; the Office of the 

Chief Information Officer; the Office of Privacy, Transparency, and Records; the Office of the 

Senior Procurement Executive; the Office of the Chief Human Capital Officer; the Office of 

Treasury Operations; the Office of the Deputy Chief Financial Officer; the Office of Civil Rights 

and Diversity; the Office of Minority and Women Inclusion; the Office of Strategic Planning and 

Performance Improvement; the Office of Risk Management; and the Office of the Deputy 

Assistant Secretary for Management and Budget. 

This office supports the following strategic objective for Strategic Goal 2, to promote financial 

stability: 

 Objective 2.4 – Financial Sector Critical Infrastructure and Cybersecurity: Enhance security, 

improve resiliency, and reduce the risk of significant cybersecurity and other incidents to the 

financial sector’s critical infrastructure, domestically and internationally. 

This office leads the following strategic objectives for Strategic Goal 5, to achieve operational 

excellence: 

 Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission. 

 Objective 5.2 – Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure. 

 Objective 5.3 – Customer Value: Enhance the experience of interacting with Treasury by 

providing high quality products and services and by delivering excellent customer service. 

Treasury-Wide Management and Program Description of Performance:

 EO 13771: FY 2019 Actuals for these indicators pending review by OMB’s Office of 

Information and Regulatory Affairs 

 Percentage of Procurement Dollars Spent on Small Business: Based on preliminary data in 

FY 2019, Treasury met and exceeded all small business prime contracting goals. However, 

Treasury may not meet all small business subcontracting goals. The Small Business 

Administration (SBA) is expected to calculate the data in March 2020. All Treasury 

bureaus were included in the goaling report, with no exclusions. The FY 2019 overall small 

business goal was set for 38.5 percent, and Treasury currently exceeds the goal at 40.4 

percent. The FY 2020 small business goal is set at 39 percent. One overarching challenge in 

FY 2019 was that Treasury must follow OMB’s directive to utilize Category Management 

principles and Best-in-Class (BIC) contracts to leverage use of existing government-wide 

contracting vehicles: there are not enough small business firms included in category 

management/BIC contract solutions. With a Treasury BIC goal of 35 percent utilization, 

Treasury Office of Small and Disadvantaged Business Utilization issued a Category 

Management and BIC Small Business Utilization policy which is believed to have enhanced 

the overall small business goal achievement. Particularly noteworthy is that Treasury far 

exceeded the contracting goals for the following socioeconomic groups: 

o Small and Disadvantaged Business – goal five percent, achieved 11.85 percent; 
SE - 25 

o Women Owned Small Business – goal five percent, achieved 11.42 percent; 

o Historically Underutilized Business zone – goal three percent, achieved 3.44 percent; 

and 

o Service Disabled Veteran Owned Small Business – goal three percent, achieved 4.29 

percent. 

 Treasury-wide “Employee Engagement” Index of Federal Employee Viewpoint Survey 

(FEVS): Treasury’s strategy focused on improving employee engagement in a number of 

areas to create an opportunity to improve the effectiveness of our workforce while improving 

our ranking among other federal agencies. Treasury’s scores for the Engagement Index 

increased from 68 percent to 69 percent in FY 2019. Treasury’s engagement score exceeded 

the government-wide average and the average score for very large agencies by one percent. 

Targets are 70 percent for FY 2020 and 71 percent for FY 2021. 

 Treasury-wide Footprint (Square Footage): This goal measures the total square footage 

occupied by Treasury’s owned and leased buildings. To reduce the Department’s real 

property footprint and maximize the use of existing real property assets, the Department 

maximized space utilization by undertaking space realignments, consolidations, and 

improved work station standards. GSA is still in the process of certifying the FY 2019 

square footage inventories. Several fourth quarter space reductions were not reflected within 

GSA’s end of fiscal year square footage numbers. The Department is currently working with 

GSA to establish the Q4 space release effective dates. Once these dates have been mutually 

agreed upon, Treasury should be on target to meet the FY 2019 target of 33,356 square feet. 

The Department will continue targeting metropolitan areas with multiple posts of duty sites 

to pursue consolidation opportunities or space reductions where it makes business and 

financial sense. It should be noted that several Treasury programs focused on economic 

expansion and national security, including CFIUS, OCCIP and the Office of Terrorism and 

Financial Intelligence (TFI), will be experiencing considerable growth in investments and 

personnel. As a result, Treasury’s out-year facilities projects are expected to reflect these 

changes, including the possible expansion of real property holdings in certain geographic 

areas. 

 Treasury-wide “Leaders Lead” Index of Federal Employee Viewpoint Survey (FEVS): 

Treasury also set the goal to increase the “Leaders Lead” index above FY 2018 results. 

Treasury’s score for the Leaders Lead Index increased from 56 percent in FY 2018 to 58 

percent in FY 2019. Treasury’s score in FY 2019 exceeded the government-wide average 

and the average score for very large agencies by one percent. Targets are 59 percent for 

FY 2020 and 60 percent for FY 2021. 

Office of the Chief Human Capital Officer 

In FY 2018, Treasury published a strategic plan for 2018-2022 that continued the Department’s 

focus on operational excellence by including a specific goal on workforce management. The 

Office of the Deputy Assistant Secretary for Human Resources and Chief Human Capital Officer 

(DASHR-CHCO), based on annual Human Capital Review feedback from the Office of 

Personnel Management and Office of Management and Budget, is confident that the Treasury 

human capital strategy is appropriately aligned to Treasury’s overall strategic priorities. For FY 

2020, the Treasury CHCO issued the following goals: enhance integration of human capital 

management practices with front-line mission requirements, identify and mitigate risks 

associated with human capital management, improve the customer experience with HR services, 
SE - 26 

more actively manage and coordinate HR information technology investments, and further 

maturing Treasury’s human capital evaluation system. 

 

Treasury’s human capital community is also providing direct support for priority Administration 

initiatives including the 21st Century Workforce driver under the President’s Management 

Agenda, especially in the areas of reskilling and upskilling. These are critical needs in light of 

IRS processing center consolidations and closures, IRS IT modernization, the Bureau of 

Engraving and Printing’s planned move to a new production facility, and the Ten Year Vision for 

the Future of Federal Financial Management. In addition, during FY 2019 DASHR-CHCO 

continued its effort to support the expansion of the Office of Terrorism and Financial Intelligence 

as well as the Committee on Foreign Investment in the United States. 

 

Two key drivers of continual improvement in strategic human capital management are updating 

governance under the Human Capital Advisory Council (HCAC) and reorganizing DASHRCHCO. These actions are designed to improve the value and impact of interactions between 

DASHR-CHCO, Treasury bureaus, and external stakeholders. Treasury’s CHCO and the 

Director of the Office of Civil Rights and Diversity Co-Chair the HCAC and updated its charter 

during FY 2019. They concurrently established the goal of chartering six subsidiary bodies 

during FY 2020, including the HR IT Executive Steering Committee, the HR Policy Council, the 

Executive Diversity and Inclusion Committee, the Learning Leaders Council, the Workforce and 

Succession Planning Council, and Treasury’s Certified Strategic Partners. These groups are 

responsible for staff work and Treasury-wide coordination of their portfolios, taking direction 

from the HCAC and raising issues of mutual interest for decision by the HCAC membership. 

The CHCO initiated the DASHR-CHCO reorganization in January 2019 and completed all 

necessary personnel actions to establish and staff new organizational units that better align with 

OPM’s Human Capital Business Reference Model and also recognize the emergence of 

workforce data analysis as a key capability for the agency. 

 

Specific initiatives undertaken in support of the FY20 goals will include the following: 

 Continuing strategic workforce planning conversations between bureau Human Resources 

Officers and owners of Treasury and bureau strategic objectives; 

 Staging a coordinated rollout of multi-modal training across Treasury in the key 

competencies of data literacy, digital transformation, front-line supervision, and leadership at 

all levels (self, team, organization); 

 Conducting an workforce planning occupational study for the IT workforce to validate 

competency models, assess current competency levels, identify skills gaps, and develop 

mitigation plans; 

 Streamlining and digitizing new employee orientation and improving the pre-appointment 

experience for individuals selected as members of Treasury’s Senior Executive Service. 

 Successfully implementing specific recommendations from OPM’s 2019 assessment of 

Treasury’s human capital evaluation system to achieve a higher level of maturity in the 2020 

assessment. 

 

Finally, Treasury will continue implementation of an enterprise Integrated Talent Management 

(ITM) system. In FY 2019, Treasury achieved a full transition to the learning management 

module, placing all Treasury employees in a single enterprise-wide platform for online employee 
SE - 27 

development. Treasury also brought all Senior Executive Service performance plans into ITM, 

and three bureaus implemented GS performance management in ITM. During FY 2020, bureaus 

will continue phasing in the ITM performance management module and begin working to utilize 

talent management modules. When fully deployed, the ITM system will provide employees a 

single, modern system for learning, performance, and career planning; give leadership a 

consolidated view of the Department’s human capital landscape; and consolidate 24 stand-alone 

legacy systems into a single, cloud-based system. 

 

Office of Civil Rights and Diversity (OCRD) 

In FY 2020, OCRD will work with Treasury bureaus to either update or establish Diversity and 

Inclusion (D&I) and Equal Employment Opportunity (EEO) Strategic Plans (FY 2021-2025), 

which map to both the Treasury Strategic Plan and the Human Capital Plan. OCRD will 

continue the audits of bureaus’ EEO, D&I, and External Civil Rights Programs in FY 2020. 

These audits will critically look at bureaus’ D&I and EEO programs to determine any areas 

where bureaus need a sharper focus and to find and recreate “best practices.” EEO offices 

worked on Human Capital engagement teams to improve inclusion scores – this will also be a 

continuing focus in FY 2020 and FY 2021. While scores for “Fairness” continue to be a 

concern, efforts have been made to introduce “Unconscious Bias” training in the workforce and 

at all management levels to help make leaders aware of biases and to learn to put aside such 

biases when making employment decisions. 

In FY 2019, OCRD developed and distributed sexual harassment prevention training to the 

workforce in DO, and shared the training with bureaus. Additionally, this office continued to 

work with the Treasury Executive Institute to develop programming for executives and senior 

level staff in the areas of diversity and inclusion. OCRD also offered Civility Training to 

increase the number of trainers in Treasury bureaus. This was the catalyst to establish the 

Department’s Training Cadre with the goal of offering additional training classes in FY 2020 and 

FY 2021. EEO complaints were adjudicated effectively with the Department improving in 

meeting EEOC regulatory timeframes both in issuance of decisions and days to investigate 

complaint. Both benchmarks exceeded Treasury’s prior years timeliness rate. To better manage 

case processing, OCRD plans on upgrading Treasury’s EEO case management system in 

FY 2021, and will start the acquisition process in FY 2020. In FY 2019, disability hiring met 

three out of four benchmark targets, and emphasis was placed on improving veterans hiring, with 

the acquisition in FY 2019 of a resume data base for use in hiring veterans. The Department 

started to pilot this program in FY 2019 and if successful, intends to explore expanding it to the 

larger disability community in FY 2020. In FY 2019, OCRD procured a Reasonable 

Accommodation Management System, to better manage reasonable accommodation requests, 

which is an identified risk. The goal is to have the system fully operational and accessible to 

bureaus in FY 2020. 

In FY 2019 considerable progress was made in improving OCRD’s external civil rights program 

policies and guidance and efforts will continue in FY 2020. OCRD will continue to lead the 

efforts of the DO financial assistance programs to implement the compliance requirements in the 

recently issued Treasury civil rights regulations. The effort will include a review of grant 

making procedures with the goal of introducing compliance measures into existing processes. 
SE - 28 

Office of the Deputy Chief Financial Officer 

For FY 2019, the Department received its twentieth consecutive unmodified audit opinion on its 

Treasury-wide financial statements. Treasury anticipates unmodified audit opinions for the 

consolidated audits to be conducted for FY 2020 and FY 2021. Overall, the Department has 

made strong progress in enhancing its internal control environment and remains committed to 

ensuring high standards of integrity and transparency in reporting its financial performance. 

Office of Small and Disadvantaged Business Utilization (OSDBU) 

Based on preliminary data for FY 2019, Treasury is on track to meet and exceed all small 

business prime contracting goals. The consistent “A” score is a testament to the hard work and 

professionalism of the procurement and acquisition teams across Treasury’s bureaus and the 

serious commitment to utilizing small businesses that emanates from Treasury’s leadership. To 

comply with Section 15 (k), Small Business Act, the Department focused on small business 

prime and subcontracting goal achievements and monitoring small business pre-award and postaward functions. 

In FY 2019, per FAR Part 19.201, OSDBU successfully executed Small Business Programs 

Compliance and Surveillance Reviews on six Bureaus, which have procurement authority and 

make awards to small businesses. The results of the surveillance reviews will provide for a 

comprehensive small business acquisition transformation strategy that will include acquisition 

workforce teaching and training across the Department. Overall, the Department has made 

progress in enhancing its small business programs and remains committed to ensuring high 

standards of small business program compliance. Central to the surveillance review strategy is 

early acquisition planning and broad stakeholder participation. 

In FY 2019, Treasury OSDBU reviewed 350 acquisition actions valued at over $250,000 not setaside for small business and rejected 23 of these actions due to inadequate market research. 

After the rejections, small business opportunities were found for all 23 actions. Of the 327 

actions, 101 required subcontracting plan review (over $700,000) and monitoring of the 

subcontracting goals addressed in the plan. Together with the Small Business Administration 

Procurement Center Representative, the OSDBU approved the subcontracting plans and these 

became part of the resultant contract. 

In FY 2020, OSDBU will conduct their annual Small Business Program Compliance and 

Surveillance Reviews on each Bureaus that has procurement authority in conjunction with the 

Office of the Procurement Executive. The purpose of the review is to ascertain whether Bureaus 

are implementing their corrective action plans from previous years, and to ensure they are 

following small business procurement laws, regulations, and policies as they pertain to small 

business set-asides, bundling and consolidation, and 8(a) Business Development contract awards. 

A small business program health summary will be submitted to the Deputy Secretary by October 

2020. 

Office of the Senior Procurement Executive (OPE) 

In FY 2019, Treasury continued a comprehensive acquisition transformation strategy designed to 

facilitate innovation, strategic management, efficiency, and effective mission outcomes in 

compliance with the President’s Management Agenda. Central to the strategy is early planning 
SE - 29 

and broad stakeholder participation as well as accelerated transition to strategic acquisition 

vehicles. In FY 2020 and FY 2021, Treasury will continue to focus on exploring the use of 

automated solutions to improve the acquisition process. 

In FY 2019, Treasury continued successful execution of its Major Acquisition Program (MAP) 

reviews in which primary and senior stakeholders (to include procurement, customer, program 

management, and legal representatives) jointly and periodically review procurement strategy and 

progress for critical acquisitions. These reviews provided a forum for development of effective 

acquisition strategies; early identification and resolution of problems; and sharing of experience 

and expertise among various stakeholder personnel. FY 2019 reviews mainly focused on preaward actions and were designed to facilitate successful award of critical contracts. In FY 2019, 

Treasury reviewed 30 acquisitions, valued at $7.5 billion. Reviews included 15 IT acquisitions 

valued at $3.2 billion. OPE, in collaboration with Office of Strategic Planning and Performance 

Improvement (OSPPI), also performed non-IT major acquisition portfolio reviews with the 

Bureau of Engraving and Printing (BEP) and the United States Mint in support of the 

Department’s Program Management Improvement and Accountability Act (PMIAA) 

implementation efforts. Through these portfolio reviews, OPE was able to develop a better 

understanding of which non-IT major acquisitions supported the Department’s strategic 

objectives. In FY 2020, the Department will transition from pre-award MAP reviews to more 

robust Acquisition Management Reviews (AMR). An expected outcome of the AMR is to help 

ensure successful contract performance strategically aligns with mission outcomes by expanding 

emphasis on the acquisition lifecycle from the time a contracting office receives a complete 

acquisition package through contract performance, closeout and final payment. 

From FY 2016 to FY 2019, Treasury increased the percentage of Spend Under Management 

(SUM) from 47.3 percent to 62.7 percent and increased the percentage of Best In Class (BIC) 

spend from 12.8 percent to 41.3 percent. Treasury has achieved both savings and efficiencies 

through aggregating requirements and leveraging its purchasing power via enterprise-level 

management of common spend categories. By fully utilizing category management, Treasury 

seeks to save the Federal Government money through smarter purchasing and greater 

collaboration across stakeholder organizations and to achieve greater efficiency with fewer 

resources. The Treasury strategy for FY 2019 and FY 2020 continues the Department’s 

transition to the Office of Management and Budget’s preferred contract vehicles, reducing the 

need to establish department level contracts and freeing associated resources for focus on other 

acquisition priorities. Treasury continues to make significant progress by widely adopting 

category management principles and actively pursuing opportunities to manage spend more 

effectively across the Department. 
SE - 30 

2.1.5 – Committee on Foreign Investment in the United States Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 

2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $2,310 $2,589 $3,736 $6,000 $15,000 $22,341 $24,146 

CFIUS Fund Transfers 0 0 0 0 0 $15,000 $15,000 

Budget Activity Total $2,310 $2,589 $3,736 $6,000 $15,000 $37,341 $39,146 

Full-time Equivalents (FTE) 14 15 23 26 32 81 120 

Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals. 

Note: CFIUS Budget activity was established in FY 2020 PB. Prior year enacted levels are based on an approximation of funding and have been 

subtracted from IA/EP & ED budget activities. 

Key: I – Indicator 

Committee on Foreign Investment in the United States Budget and Performance 

($24,146,000 from direct appropriations, and $15,000,000 from fund transfers): 

The Committee on Foreign Investment in the United States is an interagency committee 

authorized to review certain transactions involving foreign investment in the United States to 

determine the effect of such transactions on the national security of the United States. In 

FY 2019 CFIUS took significant steps toward full implementation of the Foreign Investment 

Risk Review Modernization Act of 2018 (FIRRMA). At the beginning of FY 2019, the 

Committee established a pilot program to cover certain investments in critical technologies 

related to specific industries. At the end of FY 2019, Treasury published draft FIRRMA 

regulations to implement the remainder of the statute, for public notice and comment. In January 

2020, Treasury issued final regulations to implement FIRRMA, which become effective on 

February 13, 2020. Treasury has also made substantial progress on various administrative 

aspects of implementation, including with regard to staffing, information technology systems and 

infrastructure, and facility build-out. In recognition of the strategic importance of FIRRMA 

implementation to national security Treasury is including this as an Agency Priority Goal. 

Successful implementation of FIRRMA will ensure that identified national security risks arising 

from certain foreign investments—including from some types of investments and transactions 

that previously fell outside of CFIUS’ jurisdiction—are addressed in an effective manner. 

Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines for 

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2019. IA’s 

target for this measure in CY 2020 and CY 2021 is 100 percent. 
SE - 31 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. Number of notices that are reviewed 

by the Committee on Foreign 

Investment in the United States per 

calendar year (indicator). 

This indicator measures the number of 

notices reviewed by CFIUS as a result of 

updated regulations under FIRRMA. 

2. Number of notices that proceed 

beyond the initial review to a 

subsequent investigation. CFIUS 

generally investigates cases that 

require more resource-intensive 

analysis and/or corrective action 

(indicator). 

This indicator measures the number of 

investigations conducted by CFIUS as a 

result of updated regulations under 

FIRRMA. 

D – Evidence-Building Activity 

International Affairs 

International Affairs’ policy analysis and recommendations to senior government leaders 

leverage economic, financial, and market data in addition to other social, political, and 

intelligence information available publically and through U.S. Government sources. Similar 

sources of evidence and data are used in the production of congressionally mandated reports, 

such as the semi-annual foreign exchange report to Congress. 

The Office of Technical Assistance is leading Treasury’s Monitoring and Evaluation (M&E) 

efforts under the Foreign Aid Transparency and Accountability Act of 2016. In 2019, OTA took 

steps towards full implementation of FATAA including: development of M&E instructions, the 

hiring of two new M&E specialists, development of a LogFrame template and associated 

instructions, initiation of the procurement process for contracting independent evaluation 

services, and socialization of M&E efforts with programmatic teams, including identifying the 

benefits of increased opportunities for program learning. Further support for these efforts is 

requested in Treasury’s International Programs Congressional Justification for Appropriations. 

Throughout FY 2019, Treasury’s Office of Investment Security drafted regulations to implement 

the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The Office relied 

on evidence from a range of sources to shape and effectively scope the final regulations, which 

were published in January 2020. This includes aggregated data on transactions covered under a 

“pilot program” that expanded the scope of transactions subject to review by CFIUS to certain 

non-controlling investments involving foreign persons and certain critical technologies. 

Treasury also benefited from hundreds of individual comments it received on proposed versions 

of the regulations that it published in September 2019. The final regulations update multiple 

provisions in response to a considered analysis of pilot program data and the public comments. 

Once the final FIRRMA regulations become effective on February 13, 2020, Treasury will 

collect and regularly analyze data on covered transactions that are reviewed by CFIUS and 
SE - 32 

monitor the broader national security and investment landscapes to ensure that the final 

regulations are effectively addressing national security concerns. As a result of these activities, 

Treasury may, if necessary, periodically amend the regulations or provide additional information 

to assist the public with compliance. 

In FY 2020, Treasury will begin use of a new, electronic case management system that will 

support this effort and better enable future evidence-building and program evaluation-related 

activities. 

Economic Policy 

Economic Policy serves as a data-driven policy office within the DO with a specific focus on 

supporting decision making processes. Over the past year, EP has reinforced Treasury initiatives 

by providing economic analysis on a wide variety of public policy. Through the office’s use of 

research-based studies, both explorative and focused, the economic team delivered micro and 

macro level recommendations to Treasury offices. Those recommendations included issues 

related to cryptocurrency, pension reform, tax policy, Social Security and Medicare, long term 

care insurance, financial innovation, industry concentration, monetary policy, and financial 

analysis, among others. 

Domestic Finance 

Financial Sector Cybersecurity and Critical Infrastructure Protection 

At the beginning of FY 2020, OCCIP successfully participated in the Treasury Department’s 

“health check-up” pilot of selected programs and projects critical to the success of Treasury’s 

FY 2019 strategic objectives. The pilot allowed Treasury to assess the management health of its 

selected programs and projects. The pilot is also pursuant to the Program Management 

Improvement Accountability Act (PMIAA) (P.L. 114-264). OCCIP received an initial evaluation 

of its program effectiveness, and received high-range scores in its ability to plan for 

risks/contingencies and for its resource needs. In FY 2020 and FY 2021, OCCIP will continue to 

inform and strengthen its program goals by developing and implementing a pilot analysis of 

critical third parties in the financial services sector. The pilot will allow Treasury to identify 

risks associated with critical third parties and enable Treasury to prioritize information sharing 

and risk management initiatives to mitigate third party risks to critical financial services 

infrastructure. Additionally, in FY 2021, OCCIP will study and analyze vulnerabilities in key 

financial institutions to identify and mitigate cybersecurity and operational risks, and to further 

inform and strengthen Treasury’s ability to improve the security and resiliency of the financial 

services sector. 

Tax Policy 

The Office of Tax Policy’s Office of Tax Analysis (OTA) is a division consisting of 55 PhD 

economists and statisticians who are dedicated to developing models of taxpayer behavior based 

upon the IRS’ Compliance Data Warehouse (CDW). OTA economists develop and manage 

hundreds of models annually. The analytics inform policy for the administration and OTA is the 

premier organization for tax analysis. 
SE - 33 

Under Section 6103 of the Internal Revenue Code, OTA economists have permission to access 

IRS data that are only available to certain IRS and Treasury employees. This database is the 

most comprehensive relevant data available regarding tax policy research. 

Treasury-wide Management 

The Office of Strategic Planning and Performance Improvement (OSPPI), through its internal 

consulting program, conducts program evaluations and other analysis to help leadership make 

informed decisions about program goals and operations. OSPPI’s works with Treasury bureaus 

to use process and performance data to identify and implement operational improvements. 

OSPPI, in partnership with Management and Budget, also leads the Department’s quarterly 

performance reviews, which use data and other evidence to identify strategic issues, problemsolve, and decide on actions to take to achieve goals. 

OSPPI also leads implementation of Title I of the Evidence Act, which concerns setting research 

priorities and coordinating the Department’s evidence-building activities. Immediately after the 

law was enacted, Treasury leveraged the department-wide Strategic Objective Annual Review 

(SOAR) that OSPPI leads to collaboratively identify a preliminary set of research questions. 

Treasury also began working with Treasury’s Federally Funded Research Development Center 

(MITRE Corporation) to identify existing research efforts that align to this nascent learning 

agenda, both from their paid work and independent research efforts. Early in FY 2020, Treasury 

and MITRE formalized a strategic research team to better align MITRE’s independent research 

efforts with Treasury’s research priorities. This team will include representatives from Treasury 

offices and bureaus who have key research equities to better coordinate research efforts across 

Treasury, including IRS, Fiscal Service, the Office of Economic Policy, and the Office of 

Performance Budgeting. OSPPI also organized an inaugural research event to socialize 

Evidence Act requirements, outline Treasury’s implementation approach, and raise awareness of 

existing Treasury research capabilities. 

Treasury is taking the following approach to implementing the evidence-building requirements 

in Title I of the Evidence Act: 

 Treasury will use the SOAR as a primary means of gathering relevant policy questions to 

create an “enterprise learning agenda.” In the 2019 SOAR, Treasury leaders cleared 1-3 

policy questions for each of the Department’s 17 strategic objectives. 

 Treasury will engage with MITRE as the agency’s Federally Funded Research Development 

Center to align MITRE’s annual research budget more closely with Treasury’s research 

priorities. 

OSPPI’s next steps for 2020, in partnership with key stakeholders, include: 

 Lead the Treasury/MITRE strategic research coordination team to identify shared research 

priorities and the means to pursue them. 

 Work closely with IRS to integrate their research activities into Treasury’s overall plans. 

 Leverage the 2020 SOAR to create Treasury’s initial learning agenda and evaluation plan. 

 Identify low-cost ways to build evidence to address the research questions (e.g., developing 

and sharing literature reviews for each question). 

 Conduct an evidence-building capacity assessment and determine a public comment process 

for Treasury’s learning agenda as required by OMB. 
SE - 34 

Treasury also began developing a data governance framework approximately a year prior to the 

enactment of the Evidence Act, pursuant to Title II requirements. At that time the Treasury 

Deputy Chief Financial Officer began a Data Governance and Analytics project designed to 

identify a data governance structure, develop standards, and increase the department’s analytic 

capabilities through infrastructure and visualization improvements. After enactment of the 

Evidence Act, the Executive Steering Committee, which already included the Deputy Chief 

Financial Officer, the Chief Information Officer, and OSPPI, was expanded to include 

Treasury’s designated Statistical Official and the Deputy Assistant Secretary for Privacy, 

Transparency, and Records. Currently, this group is developing recommendations for the 

mission and goals of the Data Governance Body, along with recommendations for initial broader 

membership of the Data Governance Body. 

Section III – Additional Information 

A – Summary of Capital Investments 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 


Department of the Treasury 

Cybersecurity Enhancement 

Account 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2021
CEA - 2

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table................................................................................................. 4

C – Budget Increases and Decreases Description....................................................................... 4

1.3 Object Classification (Schedule O) Obligations................................................................... 9

D – Appropriations Language and Explanation of Changes .................................................... 10

E – Legislative Proposals.......................................................................................................... 10

Section II – Annual Performance Plan and Report................................................................. 11

A – Strategic Alignment ........................................................................................................... 11

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 Cybersecurity Enhancement Account Resources and Measures..................................... 11

2.1.2 Cybersecurity Enhancement Account Resources and Measures..................................... 11

Cybersecurity Enhancement Account (CEA) Budget and Performance .................................. 12

C – Changes in Performance Measures.................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments....................................................................................... 14
CEA - 3

Section I – Budget Request

A – Mission Statement

Bolster the Department’s cybersecurity posture.

B – Summary of the Request 

The Department’s strategic plan guides program and budget decisions for the Cybersecurity 

Enhancement Account (CEA). The FY 2021 Budget Request supports Treasury’s FY 2018-2022 

Strategic Goal: Achieve Operational Excellence.

To more proactively and strategically protect Treasury systems against cybersecurity threats, the 

FY 2021 budget requests $18.0 million for the CEA. Trillions of dollars are accounted for and 

processed by the Department of the Treasury's information technology (IT) systems, and 

therefore, they are a constant target for sophisticated threat actors. The CEA account identifies 

and supports Department-wide investments for critical IT improvements, including the systems 

identified as High Value Assets (HVAs). Furthermore, the centralization of funds allows 

Treasury to more nimbly respond in the event of a cybersecurity incident as well as leverage 

enterprise-wide services and capabilities across the Department.

By managing CEA centrally, Treasury elevates the importance of such initiatives and provides 

Treasury leadership, OMB, and Congress with better transparency into cybersecurity activities 

across the Department. Enhanced transparency also improves Department-wide coordination of 

cybersecurity efforts and improves the Department’s response and recovery capabilities. With 

high-level support, the program provides a platform to enhance efficiency, communication, 

transparency, and accountability around the mission.

Over the past year, Treasury has recognized the utility of the National Institute of Standards and 

Technology’s (NIST) Cybersecurity Framework. In order to better align the CEA account with 

NIST’s push for a Government-wide Cybersecurity risk framework, the FY 2021 President’s 

Budget reflects initiatives organized around the NIST Framework Core. While in previous 

budget submissions CEA included initiatives organized around specific investments (e.g., High 

Value Assets), the FY 2021 President’s Budget is instead organized around common 

cybersecurity activities and outcomes that are gaining use industry-wide: Identify, Protect, 

Detect, Respond, and Recover. Treasury’s goal in making this methodology shift going forward

is to provide better clarity into the strategic focus of the Department’s cybersecurity investments, 

align with accepted industry standards, guidelines, and practices and allow Treasury to track 

more effectively against government-wide reporting requirements.

1.1 – Appropriations Detail Table

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Appropriated Resources Operating Plan Enacted Request % Change

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Cybersecurity Enhancement Account 12 $25,208 11 $18,000 6 $18,000 -45.5% 0.0%

Total Budgetary Resources 12 $25,208 11 $18,000 6 $18,000 -45.5% 0.0%

Note: FTE = Full-time Equivalent employment
CEA - 4

1.2 – Budget Adjustments Table

C – Budget Increases and Decreases Description

Non-Recurring Costs................................................................................-$18,000,000 / -11 FTE

FY 2020 Non-Recurring Investments -$18,000,000 / -11 FTE 

This amount represents non-recurring initial investments. 

Program Increases ...................................................................................+$18,000,000 / +6 FTE

Identify the Business Context, Resources & Cybersecurity Risk +$5,083,000 / +1 FTE

Goal: Develop an organizational understanding to manage cybersecurity risk to systems, people, 

assets, data, and capabilities.

Cybersecurity Risk Model, +$1,291,000

The Cybersecurity Risk Model initiative will define and implement a risk model for assessing 

and quantifying risk. This includes defining risk criteria and developing a risk quantification 

tool. The Cybersecurity Risk Model initiative will identify, quantify, access, prioritize, and 

report on Enterprise Cyber Risks found across the Treasury Department. The Cybersecurity Risk 

Model will also quantify and prioritize Enterprise Cyber risk. This will allow the Department to 

prioritize mitigation of risks associated with cyber attacks based on their likelihood of

occurrence. Treasury’s implementation of the Cybersecurity Risk Model will also help meet 

mandated requirements set by OMB, NIST and DHS. This project aligns with the Improving 

HVA Cybersecurity initiative from the FY 2020 Budget.

Risk Management Dashboard, +$1,291,000

The end-state of the initiative will provide access to risk data and the ability to analyze such data 

from multiple sources. Without this central dashboard, data from the System Detection Analysis 

& Risk Reporting (S-DARR) tool, Treasury FISMA Inventory Management System (TFIMS), 

HVA data, and the CDM dashboard cannot be easily digested, making assessing risks more time 

consuming and inaccurate. The Risk Management Dashboard will deliver an enterprise risk 

analysis and scoring capability allowing personnel to manage risks through clear, centralized 

FTE Amount

FY 2020 Enacted 11 $18,000

Changes to Base:

Non-Recurring Costs (11) ($18,000)

Subtotal Changes to Base (11) ($18,000)

FY 2021 Current Services 0 $0

Program Changes:

Program Increases: 6 $18,000

Identify the Business Context, Resources & Cybersecurity Risk 1 $5,083

Protect the Delivery of Critical Infrastructure Services 3 $8,008

Detect Cybersecurity Events 1 $550

Respond to Detected Cybersecurity Incidents 1 $3,359

Recover by Maintaining Resilience and Restoration Plans 0 $1,000

FY 2021 President's Budget Request 6 $18,000

Dollars in Thousands
CEA - 5

rankings. This investment will reduce the manual workload required to separately assess the 

Department’s risk profile and allow Treasury’s cybersecurity staff to see an accurate, current 

picture of cybersecurity risk and vulnerability vectors. This insight and improved understanding 

of the Department’s risk posture will further Treasury’s ability to continue to make critical IT 

decisions and cybersecurity investments with the proper risk vectors in mind going forward. 

This project aligns with the Proactive Cyber Risk and Threat Identification initiative from the 

FY 2020 Budget.

Risk Management Framework (RMF) Automation Tool, +$2,501,000

The Risk Management Framework Automation Tool automates a broad range of services for 

comprehensive integrated risk management practices and replace the outdated Treasury FISMA 

Information Management System (TFIMS). Automation would include controls scorecard 

measurement, dashboard reporting, and the generation of Risk Management Framework (RMF) 

System Assessment and Accreditation (SA&A) artifacts. As an example, an average SA&A 

artifact is over 400 pages long. The RMF will provide an integrated suite of ongoing 

authorization capabilities to streamline the process of creating, maintaining, and reviewing 

SA&A artifacts. Across Treasury, there are over 1,600 Federal employees who have 

responsibilities with respect to preparation of SA&A artifacts, and who could see reductions in 

their Cybersecurity-related tasks of up to 10 percent. Based on a conservative reduction of 5

percent, a total possible estimated person-hour workload reduction would still exceed 25,000 

hours. This project aligns with the Proactive Cyber Risk and Threat Identification initiative from 

the FY 2020 Budget.

Protect the Delivery of Critical Infrastructure Services +$8,008,000 / +3 FTE

Goal: Develop and implement appropriate safeguards to ensure delivery of critical services.

High Value Asset (HVA) Security Enhancements, +$3,205,000

This request supports additional investment for HVA management per the Department of 

Homeland Security’s (DHS) Binding Operational Directive (BOD) 18-02, which coordinated 

DHS’s approach to securing the federal government’s High Value Assets (HVAs) from 

cybersecurity threats. The HVA Program establishes a governance framework for Departmental 

HVAs in accordance with federal mandates. DHS performs a select few Risk and Vulnerability 

(RVA) Assessments for Treasury. However, Treasury HVAs face constraints that impede a full 

inventory: DHS is not available to support additional assessments, and multiple Treasury sites 

cannot conduct off-hours assessments as required due to system sensitivity and criticality. 

Treasury has elected to perform discretionary RVAs and Security Architecture Reviews (SAR) 

where DHS HVA RVAs are not feasible. This initiative provides support for those additional 

assessments. These assessments will be compliant with OMB, DHS, and National Institute of 

Standards and Technology requirements and standards. Capabilities implemented to date include 

the implementation of HVA governance framework, which includes the annual recurring 

requirement for the identification of Treasury HVAs, and the execution of additional RVAs and 

SARs. This next phase falls under the Recover NIST CSF category—for more information 

please refer to the Recover section below. The next phase of capabilities includes the 

development and implementation of an HVA risk management framework, RVA and SAR 

evaluation methodology, the execution of RVAs and SARs across the department, as well as the 

remediation of assessment findings where the risks involved pose vulnerabilities to the 

enterprise. This will allow for the mitigation of enterprise level cyber risk discovered through 
CEA - 6

the RVA/SAR assessments and/or other Enterprise Risk Management Activities and provide 

better visibility of Treasury’s current cyber posture. This project aligns with the Improving HVA 

Cybersecurity initiative from the FY 2020 Budget.

Data Centric Security and Encryption, +$281,000

Over the past several years, technological advancements have made many emergent technologies 

a reality. This has changed the landscape of cybersecurity. Likewise, advancements in artificial 

intelligence, social engineering, and quantum computing over the next several years could 

require upgrades to traditional defenses and methods. For example, the increases in 

computational power from practical quantum computing at scale would have a significant impact 

on several cryptographic algorithms currently in wide use. This initiative would analyze IT 

advancements and the evolving threat environment as it pertains specifically to the Treasury 

Department. It would seek to understand how new technological advancements may impact 

Treasury’s systems (specifically Treasury HVAs) and work to develop strategies to safeguard the 

data entrusted to the Department. This initiative would provide resources to develop strategies 

and take steps to address emerging threats that are not imminent today in order to push 

protections closer to the data, consistent with the concept of Zero Trust that was recommended 

by the House Committee on Oversight and Reform following the Office of Personnel 

Management breach. This project aligns with the Enhancements to Cybersecurity Infrastructure 

initiative from the FY 2020 Budget.

Treasury Identity Enterprise Services (TIES), +$1,074,000

TIES is an identity management system that provides enterprise-class services for centrally 

managing employee and contractor identities/user accounts, credentials and access to systems at 

the Department level. Centralizing these functions allows Treasury to consolidate duplicative 

identity management processes, provides the potential for increased usage of automation tools 

across the Department, and improves Treasury’s ability to audit and report on cybersecurity 

posture. Decentralized identity solutions housed across Bureaus have created data silos, nonstandardized processes, and inconsistent identity management capabilities that lack efficiency 

and necessary support for automated provisioning. Altogether, the lack of a centralized identity 

solution increases Treasury’s vulnerability to security threats across the landscape and hinders 

Treasury’s ability to achieve overall cost savings in identity management. The tools and services 

provided by Continuous Diagnostics and Mitigation (CDM) Phase 2 provide Treasury with an 

opportunity to implement TIES. This further aligns Treasury identity management with OMB 

M-19-17. This project aligns with the Enhancements to Cybersecurity Infrastructure initiative 

from the FY 2020 Budget.

Centralized Key Management Services (CKMS), +$865,000 

This initiative will design, procure, and implement a centralized Treasury-wide key management 

service. The Department shares sensitive data across networks and multiple bureaus, and is 

using encryption to mitigate risk to data at rest and in transit. In order to be truly effective at 

mitigating risk, encryption must be paired with strong cryptographic key management. Utilizing 

a centralized key management service will allow Treasury to bring all facets of crypto key 

management, including hardware, software, and processes into one location. This is increasingly 

important as the number of encryption keys continue to grow based on updated encryption 

requirements, as outlined in Cybersecurity Information Sharing Act of 2015. In addition to 
CEA - 7

tracking new keys, Treasury also needs to continue to track updates to existing keys. Key 

rotation reduces the time a potentially compromised key is active. Coupled together, newly 

encrypted platforms and ongoing key rotations for existing encryption services result in an 

exponentially growing volume of encryption keys. Keeping up with this volume would call for 

unsustainable amounts of manpower to maintain synchronicity across multiple bureau sites. A 

centralized key management service would be agnostic to hosting provider and allow Treasury’s 

bureaus to centrally manage encryption keys, as well as automate and quickly revoke keys in 

case of compromise. This will contribute to an increase in the number of keys inventoried and 

managed while reducing availability failures as a result of expiring certificates/keys. This 

project aligns with the Enhancements to Cybersecurity Infrastructure initiative from the FY 2020 

Budget.

Cloud Access Security Broker (CASB), +$2,583,000 

The Treasury Department, in accordance with various government-wide initiatives and industry 

practices, is migrating many of its internal systems to cloud-based systems using Platform as a 

Service (PaaS) and Software as a Service (SaaS). Treasury utilizes dozens of cloud 

environments. Every new cloud solution creates an aperture between our on-premise solutions 

and these dozen cloud services through which a bad actor can enter and disrupt Treasury’s 

mission. A Cloud Access Security Broker (CASB) will sit between Treasury Bureaus and cloud 

service providers to enforce security, compliance, and governance policies for and between the 

dozens of cloud applications used by Treasury. The CASB will allow Treasury to extend the 

security controls of our on-premises infrastructure to the cloud. Manually governing each of 

these solutions separately would require a time-consuming implementation. Implementing a 

CASB is critical for Treasury to efficiently adopt cloud services in a secure fashion. If this 

initiative is not funded, Treasury will struggle to implement appropriate security controls in a 

cost effective and reliable fashion. Lack of a CASB will slow Treasury’s adoption of cloud, 

bringing security and mission risk to the Department and its Bureaus. This project aligns with 

the Enhancements to Cybersecurity Infrastructure initiative from the FY 2020 Budget.

Detect Cybersecurity Events +$550,000 / +1 FTE

Goal: Develop and implement appropriate activities to identify the occurrence of a cybersecurity event.

Cybersecurity Threat Hunting Analysis, +$550,000 

Cyber threat hunting is an active cyber defense activity using data collected by Treasury, in 

contrast to traditional threat management measures which investigate after warning of a threat. 

The Government Security Operations Center (GSOC) collects a rich set of Treasury data from 

which to perform cyber threat identification. These datasets, however, provide only a subjective, 

narrow view from which to fully understand specific cyber threat activities and nation state cyber 

threat actors. This investment provides Treasury with access to commercial sources to supply 

the indicators and toolsets Treasury needs to identify malicious behavior within its datasets. 

Providing GSOC analysts with additional tools and a larger set of data via intelligence feeds 

would significantly enhance insight and understanding of cyber threat actors’ command and 

control, infrastructure, and capabilities. The commercial industry offers a variety of data in a 

variety of formats that cover the spectrum of cyber threat intelligence. This includes registration 

information for domains and IP addresses that could be malicious and passive DNS data 

collected around the globe. Integrating a fuller, more comprehensive dataset into the daily 

analytic cyber threat hunt process would increase situational awareness and cyber threat 
CEA - 8

preparedness while enabling earlier threat detection to defend the Treasury enterprise. This 

project aligns with the Enhanced Incident Response and Recovery Capabilities initiative from 

the FY 2020 Budget.

Respond to Detected Cybersecurity Incidents +$3,359,000 / +1 FTE

Goal: Develop and implement appropriate activities to take action regarding a detected cybersecurity incident.

Enhanced Treasury Cyber/Fraud Management Capabilities, +$3,359,000 

While the Department has robust incident management protocols in place on a per information 

system basis, Treasury’s cross-system and inter-Bureau incident management needs to be better 

equipped to handle the interconnectivity and interdependence of the modern IT environment.

This initiative drives the Department’s ability to manage incidents related to cybersecurity and 

fraud by creating a cross-functional incident response team housed at the GSOC to improve 

inter-Bureau communication and systems integration to enable the team to quickly and 

efficiently respond to incidents. With Treasury’s increased profile and role in the National 

Security apparatus, understanding linkages between systems and being able to quickly identify 

and combat cybersecurity threats is increasingly important. Differences in security posture 

within and outside of Treasury increase vulnerability of Treasury High Value Assets (HVAs) 

across the enterprise. The Cyber/Fraud Fusion Incident Response will provide the ability to 

support analysis and triage of cybersecurity and fraud incidents with the goals of increasing 

detection, reducing potential dwell time between the detection and containment, and reducing the 

overall impact of an incident to the Treasury. Every minute of delay means more data exfiltrated 

or destroyed, and improving incident response capability can mitigate and reduce overall impact 

to the Treasury mission. If this initiative is not funded, Treasury will continue to lack the 

necessary process and tools to manage incidents that cross-cut multiple Bureaus and information 

systems despite the ever-increasing sophistication, frequency, impact and brazenness of global 

cyber threats. This project aligns with the Enhanced Incident Response and Recovery 

Capabilities initiative from the FY 2020 Budget.

Recover by Maintaining Resilience and Restoration Plans +$1,000,000 / +0 FTE

Goal: Develop and implement appropriate activities to maintain plans for resilience and to restore any capabilities 

or services that were impaired due to a cybersecurity incident. 

HVA Security Enhancements, +$1,000,000

As noted in the HVA Security Enhancements initiative, the next phase of capabilities includes 

the remediation of assessment findings where the risks involved pose vulnerabilities to the 

enterprise. This will allow for the mitigation of enterprise level cyber risk discovered through the 

RVA/SAR assessments and/or other Enterprise Risk Management Activities and provide better 

visibility of Treasury’s current cyber posture. This project aligns with the Improving HVA 

Cybersecurity initiative from the FY 2020 Budget.
CEA - 9

1.3 Object Classification (Schedule O) Obligations

Amounts Reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers.

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

11.1 - Full-time permanent 1,736 1,909 1,235

11.5 - Other personnel compensation 28 0 0

11.9 - Personnel Compensation (Total) 1,764 1,909 1,235

12.0 - Personnel benefits 552 570 369

Total Personnel and Compensation Benefits $2,316 $2,480 $1,604

21.0 - Travel and transportation of persons 1 0 0

23.3 - Communications, utilities, and miscellaneous charges 0 82 1,343

25.1 - Advisory and assistance services 25,671 10,307 14,039

25.2 - Other services from non-Federal sources 3 0 1,033

25.3 - Other goods and services from Federal sources 973 1,034 738

25.7 - Operation and maintenance of equipment 1,783 9,627 2,660

26.0 - Supplies and materials 10 0 0

31.0 - Equipment 1,838 276 3,438

32.0 - Land and structures 0 147 0

Total Non-Personnel $30,279 $21,473 $23,251

Total O bligations $32,595 $23,953 $24,855

Full-time Equivalents (FTE) 12 11 6
CEA - 10

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

CYBERSECURITY ENHANCEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For salaries and expenses for enhanced cybersecurity for 

systems operated by the Department of the Treasury, 

$18,000,000, to remain available until September 30, [2022]

2023: Provided, That such funds shall supplement and not 

supplant any other amounts made available to the Treasury 

offices and bureaus for cybersecurity: Provided further, That of 

the total amount made available under this heading $1,000,000 

shall be available for administrative expenses for the Treasury 

Chief Information Officer to provide oversight of the 

investments made under this heading: Provided further, That 

such funds shall supplement and not supplant any other 

amounts made available to the Treasury Chief Information 

Officer. (Department of the Treasury Appropriations Act, 

2020.)

None

E – Legislative Proposals

The Cybersecurity Enhancement Account has no legislative proposals.
CEA - 11

Section II – Annual Performance Plan and Report

A – Strategic Alignment

The projects have the common purpose of strengthening the security of Treasury’s IT assets and 

supports the following strategic objective for Strategic Goal 5, to achieve operational excellence: 

• Objective 5.2 – Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure. 

B – Budget and Performance by Budget Activity

2.1.1 Cybersecurity Enhancement Account Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actuals Actuals Actuals Actuals Actuals Enacted Request

Appropriated Resources 0 0 $47,743 $24,000 $25,208 $18,000 $18,000 

Budget Activity Total 0 0 $47,743 $24,000 $25,208 $18,000 $18,000 

Full-time Equivalents (FTE) 0 0 1 8 12 11 6

Note: The FY 2015 – 2019 appropriated resources represents the approved operating plan. FY 2015 - FY 2019 FTE are actuals.

2.1.2 Cybersecurity Enhancement Account Resources and Measures

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Number of Major Incidents N/A N/A N/A 0 0 2 2 0

Number of Reported Incidents N/A N/A N/A 225 152 280 280 150

Percentage of Tier I High 

Value Assets (HVA) where 

Risk and Vulnerability 

Assessment (RVA) or 

Security Architecture Review 

(SAR) are Completed on 

Time

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

Percentage of High and/or 

Critical Findings from RVAs 

or SARs on Tier I HVAs that 

are closed by the end of the 

FY

N/A N/A N/A N/A 57% 55% 65% 75%

Risk Management Assessment 

Overall Rating N/A N/A N/A 68% 68% 60% 70% DISC

% of Cross-Agency Priority 

(CAP) Cybersecurity Key 

Performance Indicators (KPIs) 

that Treasury meets/exceeds 

OMB performance targets

N/A N/A N/A 60% 60% B B 80%

Key: DISC – Discontinued; B – Baseline 

 
CEA - 12

Cybersecurity Enhancement Account (CEA) Budget and Performance

($18,000,000 from direct appropriations):

The purpose of CEA is to strategically mitigate cybersecurity risks through a centralized 

program with Department-wide impact. Due to the increasing volume and sophistication of 

cyberattacks, Treasury leadership has prioritized cybersecurity and supports the centralization of 

department-wide cybersecurity initiatives through the CEA account and budget activity. Current 

bureau-level cybersecurity spending remains in the base budgets of each bureau.

Number of Major Incidents: The number of major incidents, as defined in OMB M-19-02, 

reported by Treasury to Congress in a given fiscal year. This is a measure of how effective 

Treasury’s collective defenses are at mitigating the most damaging security threats. The 

FY 2020 performance target of two major incidents reported will be met through increased 

training, implementation of technology, interagency collaboration and customer feedback. 

Number of Reported Incidents: Each fiscal year, Treasury tracks the number of cybersecurity 

incidents reported to the United States Computer Emergency Readiness Team (US-CERT). This 

measures the effectiveness of Treasury’s defenses at mitigating security threats and indicates 

how often Treasury is being targeted by malicious actors. If the number of reported incidents 

rises while the number of major incidents remains steady or declines, it indicates an effective 

cybersecurity program. The incidence of intrusion events at Treasury has not remained constant 

over time, and our projections must be used as a baseline measure. As reflected in the Actual

value column, there was a reduction in incidents to 159 for FY 2019 in comparison to those 

projected by Treasury. The target goal of 280 for FY 2019 was chosen as an increase in 

recognized incidents of up to 25 percent from FY 2018 actuals, applying the same criteria, within 

the FY 2019 timeframe was expected. In order to allow time to increase preventative measures

effectiveness, it was decided that the FY 2020 target should remain flat from FY 2019 numbers.

In FY 2019, Treasury had a greater ability to do more thorough analysis prior to declaring an 

incident. This drove some of the decreases in reported incidents. Natural variation in actual 

results also played a role in the variation from FY 2018 to FY 2019. As such, the FY 2021 target 

has been decreased to be in line with FY 2019 actuals. 

Percentage of High and/or Critical Findings from Risk and Vulnerability Assessment (RVAs) or 

Security Architecture Review (SARs) on Tier I High Value Assets (HVAs) that are closed by the 

end of the Fiscal Year (FY). This is a measure of how Treasury addresses the vulnerabilities and 

potentially-exploitable weaknesses of its most important systems, based on its recurring HVA 

review and assessment process. In the past three years, Treasury’s CEA performance targets 

were based upon the percentage of HVA system assessments/reviews that were conducted in a 

timely manner. Treasury has consistently recorded a 100 percent completion rate, even though it 

faced increasing challenges over the mid- and long-term period. Treasury will now focus on 

steps to address findings resulting from these assessments. This focus will assure that the proper 

Plans of Action and Milestones (POAMs) are both in place for all reviewed systems and that the 

POAMs have been acted upon in a timely manner. The investment will focus on remediation of 

vulnerabilities, as well as increased review and reporting on corrective actions to resolve all 

findings and recommendations discerned during the assessment process.
CEA - 13

Cross-Agency Priority (CAP) Cybersecurity Key Performance Indicator (KPI) Targets Met: The 

President’s Management Agenda identifies CAP Goals to target those areas where multiple 

agencies must collaborate to effect change. The Cybersecurity KPIs for FY 2018-2020 focus on 

capabilities that the Office of Management and Budget (OMB) has determined will, when 

implemented appropriately, provide the most effective improvements to cybersecurity across the 

federal enterprise. OMB established the initial Cybersecurity CAP KPIs for FY 2018-2020 in 

April 2018. In December 2018, OMB revised the CAP KPIs, eliminating several component 

measures that had been factored into the performance goals in FY 2018. As a result of these 

changes, Treasury met the same number of KPI targets at the end of FY 2019 as it had met in FY 

2018. Improvement is anticipated in FY 2021 due to maturing cybersecurity enhancement 

investments made in prior years. The FY 2021 target Risk Management Rating of 80 percent 

will be met through mitigation of known vulnerabilities and deployment of additional cyber 

capabilities.

C – Changes in Performance Measures

The following are proposed changes in performance measures from the previous year President’s 

Budget.

Performance Measure or Indicator Proposed Change and Justification

1. Replace “Risk Management Assessment 

(RMA) Overall Rating” with CAP KPI 

targets met (substitution)

While RMA was a focus of senior 

leadership in FY 2018, it has since been 

supplanted by the Cross-Agency Priority 

(CAP) Cybersecurity Key Performance 

Indicators (KPIs). The Cyber CAP KPIs 

leverage the CIO FISMA reporting metrics 

much as the RMA does, focusing on a 

smaller number of high-priority capabilities.

2. Replace “% of Tier I HVAs where RVAs 

or SARs are completed on time” with “% 

of High and/or Critical Findings from 

RVAs or SARs on Tier I HVAs that are 

closed by the end of the FY” 

(substitution)

The percentage of RVAs and SARs 

completed on a timely basis for Treasury’s 

HVAs had consistently reached a level of 

100 percent based on previous investment.

This percentage left no room for continued 

improvement. The HVA investment will 

now evolve and refocus on making systemic 

improvements based on remediation and 

corrective actions taken to address 

assessment findings and vulnerabilities once 

they are identified.

D – Evidence-Building Activity

CEA initiatives result from the ongoing analysis and review of current risk posture (threat, 

configuration, and operational data). This is accomplished through proactive RVAs and SARs,

which generate data to inform leadership where critical remediation is required and to identify

opportunities to leverage shared services to solve common problems across the Department. 

Metrics surrounding detection, attack vectors, depth into our defenses, and containment inform 
CEA - 14

operational decisions on capabilities and configurations for the defensive and analytical 

capabilities in the Department’s cybersecurity infrastructure. The CEA is also critical to 

systematize and automate the collection of cybersecurity operational data, increasing its accuracy 

and accelerating its availability so that resources and organizational capacity can be directed in a 

timely and efficient manner. Improvements in these foundational capabilities will improve 

Treasury’s ability to use data to refine the operational decision-making process. 

Section III – Additional Information

A – Summary of Capital Investments

Capital investments that support CEA are included in the Departmental Offices plan.

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 

The website also contains a digital copy of this document.


Department of the Treasury 

Treasury Capital Investments and 

Modernization Fund 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2021 
TCIMF - 2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

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

E – Legislative Proposals ............................................................................................................ 6

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

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

B – Budget and Performance by Budget Activity ...................................................................... 7

2.1.1 – TCIMF Resources and Measures .................................................................................... 7

Treasury Treasury Capital Investments and Modernization Fund Budget and Performance ..... 7

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments ......................................................................................... 8
TCIMF - 3 

Section I – Budget Request 

A – Mission Statement 

Improve infrastructure, modernize business processes, and increase efficiency through 

technology and capital investments that support the missions of Treasury bureaus and programs. 

B – Summary of the Request 

In this Budget, Treasury is proposing two structural changes to the account currently established 

as the Department-wide Systems and Capital Investments Program (DSCIP): change the name of 

the account to Treasury Capital Investments and Modernization Fund (TCIMF) from DSCIP, and 

include new transfer authority to leverage existing funding and introduce further flexibility that 

will help Treasury to continuously modernize information technology infrastructure across the 

Department. These changes will allow for Treasury bureaus to invest in IT projects that advance 

their mission and align to Departmental Chief Information Office priorities. 

Treasury owns and operates two historic office buildings in downtown Washington, D.C. – the 

Main Treasury Building (MT) and the Freedman’s Bank Building (FBB). In FY 2016, Treasury 

conducted an internal assessment of both buildings and found a range of needs that include 

immediate safety/health risks, capital renewal to address systematic and mechanical failure, and 

building modernization. In FY 2017, an external architectural and engineering firm validated the 

estimated $98.7 million in remaining costs from that report. In addition to validating the 

identified repair needs, the report identified additional repairs and cyclic needs over the next 20 

years. The Department plans to continue to work through these accumulated needs over time. 

The bulk of the FY 2021 request of $13.5 million addresses MT and FBB repair and restoration. 

The TCIMF investments support the Treasury strategic goal/objective 5.2 “Achieve Operational 

Excellence/Treasury Infrastructure: Better enable mission delivery by improving the reliability, 

security, and resiliency of Treasury’s infrastructure.” 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Appropriated Resources Operating Plan Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Treasury Capital Investments and 

Modernization Fund (TCIMF) 

 

- $4,000 -

 $6,118 -

 $13,500 NA 121% 

Subtotal New Appropriated 

Resources 

 

- $4,000 - $6,118 - $13,500 NA 121% 

IT Modernization (Transferred 

Resources) 

 

- 

 

- 

 -

 

 

 - 

 -

 TBD NA NA 

Subtotal Transferred Resources 

- 

 

- 

 -

 

 

 - 

 -

 TBD NA NA 

Total Budgetary Resources 

- $4,000 - $6,118 - $13,500 NA 121% 

 
TCIMF - 4 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Treasury Technology Business Management (TBM) Tool +$1,534,000 / +0 FTE 

This proposal provides resources for a Treasury-wide centralized cloud-based TBM tool to 

include automated data extraction from the individual bureau financial systems, the modeling 

and allocation of cost elements to IT services and consumption by business units, and reporting 

through data visualization and benchmarking capabilities. This will enable Treasury to migrate 

to the TBM reporting structure across the agency and replace the legacy Capital Planning and 

Investment Control reporting tool and processes. It will also serve as a foundation for future IT 

budget formulation and execution processes and management of Treasury enterprise services. 

FBB Restroom Renovation Phase 2 +$1,500,000 / +0 FTE 

Phase 1 funding is being used to make the restrooms on the second through fourth floors code 

compliant. The requested Phase 2 funding will address the basement level restrooms along with 

the first and sixth floors. Additional future funding will be needed to address the fifth floor and 

complete all of the FBB restrooms. At the completion of this effort, all restrooms will be code 

compliant and meet the requirements of the Americans with Disabilities Act. 

FBB/MT Lifecycle Replacement of Building Interior $4,278,000 / +0 FTE 

The MT is past due for cyclic carpeting, painting, and plaster repair in public corridors and 

interior office space, and the FBB is past due for cyclic carpeting and painting in public corridors 

and interior office space. Sections of the MT will be repainted, re-carpeted, and plaster repaired 

starting with the oldest, most damaged sections and/or concurrent with planned renovations. 

Sections of the FBB will be repainted and re-carpeted on an ongoing basis or concurrent with 

planned renovations. The last comprehensive refresh for the buildings’ interiors was completed 

between 2001 and 2006, which outpaces a typical refresh cycle of three to seven years for paint 

and seven to ten years for carpet. Plaster damage occurs as a result of natural settling and 

FTE Amount

FY 2020 Enacted 0 $6,118

Change to Base:

Non-Recurring Costs 0 ($6,118)

FBB Domestic Water Line Repair 0 ($1,500)

FBB Repair and Restoration 0 ($1,500)

MT Repair and Restoration 0 ($3,118)

Subtotal Changes to Base 0 ($6,118)

FY 2021 Current Services 0 $0

Program Changes:

Program Increases: 0 $13,500

Treasury Technology Business Management Tool 0 $1,534

FBB Restroom Renovation Phase 2 0 $1,500

FBB/MT Lifecycle Replacement of Building Interior 0 $4,278

MT Masonry, Windows, and Restroom Renovations 0 $6,188

FY 2021 President's Budget Request 0 $13,500

Dollars in Thousands
TCIMF - 5 

vibrations, water intrusion from rain or damaged piping. These funds will allow Treasury to 

begin a scheduled, reoccurring cycle of renewal and repair. 

MT Masonry, Windows, and Restroom Renovations +$6,188,000 / +0 FTE 

The funding will provide for the second phase of the MT exterior renovation. Work items 

include: 1) repairing failed masonry joints to protect from moisture penetration, cleaning the 

stone surfaces, and repairing damaged stone; and 2) repairing or replacing window frames 

suffering varying degrees of damage after years of weather exposure. Failure to complete this 

work will result in the current staining becoming more difficult to remove, requiring a higher 

level of cleaning, and an increase in joint failures and window frames that will expose more of 

the interior to moisture infiltration. Each of these is continuation from earlier work. Phase one 

of the masonry repair is in the FY 2020 President’s Budget ($3.118 million) and phase one of the 

windows was funded in FY 2015 ($1.225 million). 

1.3 – Object Classification (Schedule O) Obligations 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

25.1 - Advisory and assistance services 419 0 0

25.4 - Operation and maintenance of facilities 0 4,204 0

31.0 - Equipment 0 0 1,534

32.0 - Land and structures 3,142 3,118 8,800

Total Non-Personnel $3,561 $7,322 $10,334

Total O bligations $3,561 $7,322 $10,334

Full-time Equivalents (FTE) 0 0 0
TCIMF - 6 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

[Department-wide Systems and Capital Investments Program] 

Treasury Capital Investments and Modernization Fund 

For development and acquisition of [automatic data processing] 

information technology equipment, software, and services and for 

repairs and renovations to buildings owned by the Department of 

the Treasury, [$6,118,000]$13,500,000, to remain available until 

September 30, [2022]2025: Provided, That [these funds shall] any 

funds available under this heading may be transferred to accounts 

and in amounts as necessary to satisfy the requirements of the 

Department's offices, bureaus, and other organizations: Provided 

further, That [this] all transfer authority under this heading shall be 

in addition to any other transfer authority provided in this Act.[: 

Provided further, That none of the funds appropriated under this 

heading shall be used to support or supplement "Internal Revenue 

Service, Operations Support" or "Internal Revenue Service, 

Business Systems Modernization"]. (Department of the Treasury 

Appropriations Act, 2020.)

Treasury is proposing to 

change the name of the 

account to the Treasury 

Capital Investments and 

Modernization Fund 

(TCIMF) and include 

new transfer authority to 

leverage existing funding 

and introduce further 

flexibility that will allow 

Treasury to continuously 

modernize information 

technology infrastructure 

across the Department. 

See the Treasury 

administrative provisions 

section 125 for the 

proposed transfer 

authority. 

E – Legislative Proposals 

The budget proposes transfer authority for this account (see section 125 in the Treasury 

administrative provisions). 
TCIMF - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The TCIMF account provides a mechanism for Treasury to fund capital investments that have 

complex contracts with projects that span several fiscal years. Through the TCIMF, and its 

predecessor the DSCIP account, the Treasury has been able to develop a Treasury-wide human 

resources information technology solution as well as fund the continual repair and restoration of 

the Main Treasury Building and the FBB. 

TCIMF projects support the following strategic objective for Strategic Goal 5, to achieve 

operational excellence: 

Objective 5.2 – Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure. 

B – Budget and Performance by Budget Activity 

2.1 – TCIMF Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $2,725 $5,000 $3,000 $4,426 $4,000 $6,118 $13,500 

IT Modernization (Transferred Resources) 0 0 0 0 0 0 TBD 

Budget Activity Total $2,725 $5,000 $3,000 $4,426 $4,000 $6,118 $13,500 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0 

Treasury Capital Investments and Modernization Fund Budget and Performance 

($13,500,000 from direct appropriations): 

TCIMF enables the Department to make investments in capital improvements that support the 

missions of Treasury bureaus and programs. 

Treasury Building - Repairs and Renovations 

MT and the FBB are owned by the Department and are Departmental Offices’ capital 

investments. MT is the oldest departmental building and the third oldest federally occupied 

building in Washington, preceded only by the Capitol and the White House. The age and 

historical significance of the buildings, considered by some to be national treasures, create 

special conditions that do not exist in many other Federal office facilities. Continual upkeep, 

with close attention to historic preservation, is necessary in order to continue occupying these 

buildings. The FY 2021 request addresses MT and FBB repair and restoration. 

Over the past decade, Treasury has made a concerted effort to improve the MT and FBB building 

envelope, including its moisture, air and thermal control functions. These are the features that 

provide for an energy efficient, comfortable, and sustainable building. A lack of these controls 

can result in a myriad of issues that include progressive degradation of the indoor air quality 

environment, extensive interior damage, waste associated with costly repairs, decreased energy 

efficiency, unhappy customers, and decreased worker productivity. Treasury Operations has 
TCIMF - 8 

strategically focused on restoring the health of the building envelope (shell), in an effort to 

correct the deteriorating building structure and infrastructure through the TCIMF 

fund. Components of the Main Treasury building that have been repaired, replaced, or 

funded/planned include new roofs (FY 2019/2021), repair and cleaning of exterior masonry (FY 

2020/2022), and repairs to 40% of the windows (FY 2015/2017). The Freedman’s Bank 

Building components that have been repaired, replaced or funded/planned include new roofs (FY 

2017/2019), repair and cleaning of exterior masonry (FY 2019/2021 & FY 2020/2022), and 

replacement of all windows (FY 2009/2011). Funding and completion of these items represent 

significant progress towards the preservation of the two buildings, maintaining a safe and healthy 

workplace, and reducing the need for making interior repairs. The funding requested in the FY 

2021 TCIMF account would make have a substantial beneficial impact on the continuing effort 

to harden Treasury’s outer shell by finishing the repair and cleaning of the exterior masonry of 

the two buildings. 

Treasury IT Infrastructure Modernization 

In addition to the building and repairs, the proposed TCIMF fund transfer authority provides a 

backstop for Treasury to continue to modernize its IT Infrastructure while making the most 

efficient use of limited resources available to Treasury (see Treasury administrative provisions 

section 125 for the proposed transfer authority). The fund would help unify bureaus, including 

IRS, around a centralized Department vision, with each individual bureau aligning its 

modernization plan to the Department-wide plan. The added flexibility of the TCIMF transfer 

authority allows Treasury to pursue long-term, proactive investments that optimize efficiency 

and benefits to taxpayers. In addition to persistent major focus areas such as mandatory software 

and hardware upgrades, Treasury plans to use the TCIMF to become compliant with other 

important recent pieces of legislation. One Department-wide example would be centered around 

modernization efforts associated with the 21st Century IDEA Act (Public Law 115-336) passed 

in 2018. Treasury has developed an inventory of 77 websites, services and forms that require 

modernization in order to comply with Act requirements which included several bureau home 

pages in addition to a variety of important bureau websites. Treasury plans to utilize the TCIMF 

authority to prioritize key investments across the enterprise associated with the 21st Century 

IDEA Act, allowing the Department to take a unified approach to modernizing its digital service 

footprint and improving the public’s digital experience. This plan aligns with Treasury’s 

Strategic Objectives to enable mission delivery by improving the reliability, security, and 

resiliency of Treasury’s infrastructure (Objective 5.2) as well as enhance the experience of 

interacting with Treasury by delivering high quality products and services (Objective 5.3). 

Section III – Additional Information 

A – Summary of Capital Investments 

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

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments

This website also contains a digital copy of this document.


Department of the Treasury 

Office of Terrorism and 

Financial Intelligence 

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2021 
TFI - 2

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table................................................................................................. 4

C – Budget Increases and Decreases Description....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals............................................................................................................ 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Terrorism and Financial Intelligence Resources and Measures ..................................... 9

Terrorism and Financial Intelligence Budget and Performance ............................................... 11

C – Changes in Performance Measures.................................................................................... 16

D – Evidence-Building Activity ............................................................................................... 19

Section III – Additional Information ........................................................................................ 19

A – Summary of Capital Investments....................................................................................... 19
TFI - 3

Section I – Budget Request

A – Mission Statement

Strengthen national security by using targeted financial measures to combat threats and protect 

the integrity of the financial system.

B – Summary of the Request 

The Department of the Treasury’s (Treasury) strategic plan guides program and budget decisions 

for the Office of Terrorism and Financial Intelligence (TFI). The FY 2021 Budget Request 

supports two of Treasury’s FY 2018-2022 Strategic Goals: Enhance National Security and 

Achieve Operational Excellence.

TFI requests $172.751 million, which is a $3.039 million increase from the FY 2020 enacted 

level. TFI requests these additional resources to continue to invest in its people as well as 

infrastructure, systems, and automated tools, thereby ensuring that TFI remains agile, innovative, 

and strategic in responding to the most pressing U.S. national security concerns. The budget 

prioritizes funding for Treasury’s targeted financial tools that protect the U.S. and international 

financial system from abuse, as well as countering the financial networks that support terrorists, 

weapons proliferators, organized transnational crime, rogue regimes, and other threats. 

TFI’s economic authorities continue to play an increasingly central role in countering some of 

the nation’s most critical security threats. This Administration and Congress rely upon TFI to 

deploy non-kinetic tools at a rapid pace to proactively implement U.S. policy towards North 

Korea, Iran, Russia, Islamic State of Iraq and Syria (ISIS) and other terrorist organizations, 

Venezuela, human rights abusers and corrupt actors, narcotics traffickers, and other malign and 

destabilizing actors. As reliance upon TFI’s authorities has grown, the corresponding growth in 

personnel across TFI and increased demand placed upon secure systems requires additional 

investment in mission support areas. TFI’s infrastructure investments have been developed with 

careful consideration of the personnel increase request with the intent of developing and 

maintaining a collaboration network that facilitates our operational and policy goals.

1.1 – Appropriations Detail Table

Note: FTE = Full-time Equivalent employment

Dollars in Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Terrorism and Financial Intelligence 440 $159,000 526 $169,712 575 $172,751 9.3% 1.8%

Subtotal New Appropriated Resources 440 $159,000 526 $169,712 575 $172,751 9.3% 1.8%

O ther Resources

Reimbursable 40 $8,000 41 $8,000 41 $8,000 0.0% 0.0%

Subtotal O ther Resources 40 $8,000 41 $8,000 41 $8,000 0.0% 0.0%

Total Budgetary Resources 480 $167,000 567 $177,712 616 $180,751 8.6% 1.7%

% Change

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request
TFI - 4

1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2020 Enacted 526 $169,712 

Changes to Base: 

Maintaining Current Levels (MCLs): - 3,983 

Pay Annualization (2020 3.1% average pay raise) - $757 

Pay Raise (1.0% average pay raise) - $738 

FERS Contribution Increase - $800 

Non-Pay - $1,688 

Non-Recurring Costs - ($2,539)

Efficiency Savings - ($2,716)

Other Adjustments: 30 $0 

FTE Adjustment 30 $0 

Subtotal Changes to Base 30 ($1,272)

FY 2021 Current Services 556 $168,440 

Program Changes: 

Program Increases 19 $4,311 

TFI-Wide Centralized Data Platform Infrastructure Support - $602 

Western Hemisphere/Human Rights Sanctions 3 $657 

Cyber Analysts and Data Scientists 9 $1,583 

Virtual Currency Investigators 4 $812 

Foreign Asset Control Staffing 3 $657 

FY 2021 President's Budget Request 575 $172,751

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$3,983,000 / +0 FTE

Pay Annualization (3.1%) +$757,000 / +0 FTE

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$738,000 / +0 FTE

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$800,000 / +0 FTE

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$1,688,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment.

Non-Recurring Costs....................................................................................-$2,539,000 / -0 FTE

Non-Recur of IT Infrastructure Investments -$2,539,000 / -0 FTE

One-time costs of the FY 2020 IT Infrastructure Investment initiative will non-recur.
TFI - 5

Efficiency Savings.........................................................................................-$2,716,000 / -0 FTE

TFI Contractual Support -$2,716,000 / +0 FTE

TFI will achieve cost savings and efficiencies in contract services through improved oversight of 

all TFI contracts, consolidating contracts where appropriate, and partnering with other agencies 

and Treasury Departmental Offices (DO) components to leverage common technology or 

administrative support needs.

Other Adjustments..................................................................................................+$0 / +30 FTE

FTE Adjustment +$0 / +30 FTE 

The FY 2021 Budget reflects a +30 FTE technical adjustment from the FY 2020 Enacted Budget. 

This technical adjustment reflects increased efforts at TFI to hire and on-board new staff as 

provided for in prior year budget requests. 

Program Increases ..................................................................................+$4,311,000 / + 19 FTE

TFI-Wide Centralized Data Platform Infrastructure Support +$602,000 / +0 FTE 

To best utilize the volumes of data currently available to TFI staff and positively leverage 

technology to expand the efficiency of TFI’s limited personnel resources, TFI is establishing a 

data analytics program and staff, an overarching governing body (in close coordination with 

CIO), and an operational enterprise tool capable of fusing TFI’s disparate data streams for 

Treasury Foreign Intelligence Network (TFIN) desktop analysis by TFI staff. 

Western Hemisphere/Human Rights Sanctions +$657,000 / +3 FTE

Administration and Congressional actions during the past 18 months in the Western 

Hemisphere require significant sanctions implementation efforts by the Licensing, Policy, 

and Regulatory Affairs teams, including: designing sanctions implementation architecture 

proposals for Treasury and interagency leadership, implementing new regulatory 

frameworks through general licenses (over 30 issued in the Venezuela program alone),

publishing regulations, and public guidance such as frequently asked questions, and

processing an onslaught of new licensing requests to authorize activity that may be 

otherwise prohibited but is in U.S. foreign policy interests.

Cyber Analysts and Data Scientists +$1,583,000 / +9 FTE

The Office of Intelligence and Analysis (OIA) requests five cyber intelligence research 

specialists and one visual analyst to meet the increased demand from Treasury senior 

policymakers and Domestic Finance/Office of Cybersecurity and Critical Infrastructure 

Protection for intelligence support and analysis to counter the intensification of cyberenabled threats to the U.S. financial services sector (FSS) and US national security interests 

more broadly. The analysts would focus on support to improve the sharing of cyber threat 

intelligence to the FSS, provide the Office of Foreign Assets Control (OFAC) intelligence 

support on targeting financial networks of malicious cyber actors, and provide tactical 

intelligence support to TFI cryptocurrency initiatives. OIA also requests three data scientists 

to analyze large tranches of data and to build assessments from that analysis. Data scientists 

are skilled in statistical analysis and trained specially to perform this type of work, which is 

critical to using Treasury's own data to answer analytic questions and inform policymakers.
TFI - 6

Virtual Currency Investigators +$812,000 / +4 FTE

Among the new and emerging threats to the use of sanctions as a tool for national security is 

the rapid development of virtual currencies as a mechanism to move value across borders while

skirting the formal financial system that OFAC relies on as the implementing mechanism for 

its authorities. Presently, OFAC has a single investigator focused on the illicit use of virtual 

currency, and this investigator is often pulled away from purely investigative duties in order to 

share virtual currency expertise across TFI, since this area is of high concern but also an 

uncommon area of technical competency. Meanwhile, investigators across most sanctions 

programs are reporting increasing exposure to the use of virtual currencies by the targets of 

their investigations. Additional virtual currency investigators will allow investigations 

involving cryptocurrency across all of OFAC’s sanctions programs to be able to exploit this 

investigative arena.

Foreign Asset Control Staffing +$657,000 / +3 FTE

The requested Senior Enforcement Officers will provide essential investigative and legal 

knowledge to OFAC’s enforcement process, deliberative memoranda, and final agency 

charging documents. These personnel will be responsible for working closely with 

Enforcement’s investigators to coordinate the final phase of public enforcement actions 

through the OFAC Front Office (Director and Deputy Director) and handle all negotiations, 

meetings, and interactions with subject persons thereafter. These personnel will handle such 

matters for all U.S. economic and trade sanctions programs, and will reduce the workload 

and burden placed on other offices (e.g., the Office of Chief Counsel, OFAC).
TFI - 7

1.3 – Object Classification (Schedule O) Obligations

 Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers.

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

11.1 - Full-time permanent 57,132 69,145 76,035

11.3 - Other than full-time permanent 601 556 556

11.5 - Other personnel compensation 1,381 1,078 1,078

11.9 - Personnel Compensation (Total) 59,114 70,779 77,669

12.0 - Personnel benefits 18,307 22,637 24,084

Total Personnel and Compensation Benefits $77,421 $93,416 $101,753

21.0 - Travel and transportation of persons 2,434 3,969 3,665

22.0 - Transportation of things 98 0 2

23.2 - Rental payments to others 177 0 4

23.3 - Communications, utilities, and miscellaneous charges 15 67 712

24.0 - Printing and reproduction 19 0 0

25.1 - Advisory and assistance services 21,505 25,717 21,514

25.2 - Other services from non-Federal sources 1,718 533 2,121

25.3 - Other goods and services from Federal sources 44,695 47,680 45,900

25.4 - Operation and maintenance of facilities 9 0 0

25.7 - Operation and maintenance of equipment 328 399 538

25.8 - Subsistence and support of persons 5 0 0

26.0 - Supplies and materials 2,672 2,321 2,197

31.0 - Equipment 5,965 3,540 1,989

32.0 - Land and structures 4,322 70 356

Total Non-Personnel $83,962 $84,296 $78,998

Total O bligations $161,383 $177,712 $180,751

0

Full-time Equivalents (FTE) 480 567 616
TFI - 8

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

OFFICE OF TERRORISM AND FINANCIAL 

INTELLIGENCE

Federal Funds

SALARIES AND EXPENSES

For the necessary expenses of the Office of Terrorism and 

Financial Intelligence to safeguard the financial system 

against illicit use and to combat rogue nations, terrorist 

facilitators, weapons of mass destruction proliferators, human 

rights abusers, money launderers, drug kingpins, and other 

national security threats, [$169,712,000] $172,751,000, of 

which not less than $3,000,000 shall be available for 

addressing human rights violations and corruption, including 

activities authorized by the Global Magnitsky Human Rights 

Accountability Act (22 U.S.C. 2656 note): Provided, That of 

the amounts appropriated under this heading, up to 

$10,000,000 shall remain available until September 30, 

[2021] 2022. (Department of the Treasury Appropriations 

Act, 2020.)

E – Legislative Proposals

The Office of Terrorism and Financial Intelligence has no legislative proposals.
TFI - 9

Section II – Annual Performance Plan and Report

A – Strategic Alignment

TFI programs support the following Department of the Treasury’s Strategic Plan for FY 2018-

2022. Strategic objectives for Strategic Goal 3, to enhance national security: 

• Objective 3.1 – Strategic Threat Disruption: Identify, dismantle, and disrupt priority threats 

to the U.S. and international financial system. 

• Objective 3.2 – AML/CFT Framework: Identify and reduce vulnerabilities in the U.S. and 

international financial system to prevent abuse by illicit actors. 

• Objective 3.3 – Economic Strength and National Security: Advance American prosperity and 

security through growth, investment, trade, and expanding the American industrial base 

while protecting national security. 

TFI programs support the following strategic objectives for Strategic Goal 5, to achieve 

operational excellence: 

• Objective 5.1 – Workforce Management: Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to accomplish 

our mission.

• Objective 5.2 – Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure.

B – Budget and Performance by Budget Activity

2.1.1 – Terrorism and Financial Intelligence Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $112,500 $117,000 $123,000 $141,778 $159,000 $169,712 $172,751 

Other Resources $6,966 $6,329 $6,491 $8,626 $7,756 $8,000 $8,000 

Budget Activity Total $119,466 $123,329 $129,491 $150,404 $166,756 $177,712 $180,751 

Full-time Equivalents (FTE) 385 414 428 444 480 567 616 

*Note: FY 2015 - FY 2019 Other Resources dollars are actuals. FY 2015 - FY 2019 FTE are actuals.

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Measure Actual Actual Actual Actual Actual Target Target

New or Modifications to Existing 

Sanctions Programs

N/A N/A 5 5 7 I DISC

Number of Designation Actions N/A N/A 867 1431 1120 I DISC

Analytic Intelligence Support N/A N/A 385 523 637 I DISC

Review and Support of Foreign 

AML/CFT Laws and Regulations 

N/A N/A 49 64 81 I DISC

N/A: Not available; DISC: Discontinued; I: Indicator 

New measures are being introduced in FY 2020. Refer to Section C for justification. 
TFI - 10

Description of TFI’s Performance:

As described more fully above, TFI has strategically and tactically deployed all available 

economic tools and authorities to disrupt and counter key national security challenges. TFI 

focuses its resources on those actions that are most likely to create the greatest impact towards a 

stated program objective. Therefore, the number of actions taken cannot serve as a single 

determination of effectiveness, complexity, or level of resources required to complete the action. 

For instance, as TFI takes action against larger entities or individuals that are integrated into and 

impact global supply chains, the level of resources and complexity of planning for the action 

increases substantially. For each action, resources are required to monitor collateral impacts, 

issue required licenses, engage with the public to answer questions, participate in bilateral and 

multilateral exchanges to ensure international support for actions, meet reporting requirements in 

a timely manner, monitor for potential evasion, and execute all required regulatory changes, 

among other things. Workload indicators tracked in FY 2019 were the following: 

• New or Modifications to Existing Sanctions Programs: This indicator measures new actions 

or expansion of existing sanction programs, and the data is collected by OFAC. The measure 

reflects an increase in workload requirements as any new country programs or expansion in 

scope of existing programs are by and large in addition to current workload and not in lieu of 

already existing work, and therefore, cumulative. Conversely, ongoing program 

requirements are much less frequently removed. The creation or modification of sanctions 

programs requires a significant upfront dedication of policy, program, legal, and regulatory 

resources to ensure proper coordination and documentation of the changes. 

• Number of Designation Actions: This indicator measures number of actions taken to impose 

sanctions, and is collected by OFAC. It is important to note that for “Program-Specific 

Designations” may not always represent a true reflection of TFI’s extensive efforts across 

programs or toward a particular program. From FY 2017 to FY 2018, TFI activity increased 

across a number of high priority programs. However, the FY 2018 numbers do not reflect 

the approximately 700 Iran sanctions that were implemented on November 5, 2018, in 

conjunction with the full snapback of sanctions following the President’s withdrawal of the 

United States from the JCPOA. Though these sanctions technically occurred in FY 2019, the 

preparation for the tranche was exceedingly complex and required several lines of effort over 

the last several months of FY 2018. 

• Analytical Intelligence Support: TFI includes both formal analytical intelligence briefings as 

well as final analytical intelligence products that were published. The significant increase 

from FY 2017 to FY 2018 represents increased demand as well as a higher prioritization on 

production. In FY 2021 this indicator will be replaced with an expanded indicator that 

includes the vast array of OIA products, including number of IIRs published and the number 

of finished intelligence pieces published.

• Review of Foreign AML/CFT Law and Regulations: This measure tracks/includes 

participation in Financial Action Task Force (FATF) mutual evaluations (ME), which are 

peer evaluations of countries’ levels of effectiveness and implementation of the FATF antimoney laundering and countering the financing of terrorism (AML/CFT) Standards. The 

data is collected from the Office of Terrorist Financing and Financial Crimes (TFFC). 

Participation in MEs usually requires several extended on-site visits in country, extensive 

analysis of a country’s AML/CFT system, and follow-up meetings to provide in-depth 

analyses and ratings. Additionally, the metric includes reviews and comments on reports 

produced by the nine FATF-style Regional Bodies; and, work assessing and reviewing 
TFI - 11

countries as part of the International Cooperation Review Group, which oversees the FATF 

process that identifies and reviews jurisdictions with strategic AML/CFT deficiencies that 

may pose a risk to the international financial system and closely monitors their progress. 

Finally, this metric includes strategic support to certain high priority bilateral partners in an 

effort to enhance their AML/CFT laws, regulations, and structures. This effort may include, 

but is not limited to, bi-lateral and multi-lateral meetings, foreign travel, and reviewing draft 

legislation.

TFI proposes to create a number of new indicators and measures for FY 2021 which will be 

reflected in the FY 2022 Budget. Among these are regulatory documents published in the 

Federal Register within four months of publication of an Executive order or Congressional 

mandate during the fiscal year; the number of roundtables with private sector on Money 

Laundering/Terrorist Finance threats, vulnerabilities, and risk; the number of overseas/domestic 

engagements with foreign officials by TFFC officials; the timeliness of response to deconfliction requests received from law enforcement; the number of security clearances processed 

by OIA’s Office of Security Programs (OSP); and the percent of customer satisfaction with OIA 

products. See Section C for changes in performance measures and indicators.

Terrorism and Financial Intelligence Budget and Performance

($172,751,000 from direct appropriations, $8,000,000 from reimbursable resources):

TFI serves a distinct role in enhancing national security by deploying Treasury’s tools and 

authorities to protect the U.S. and international system from abuse and by combating rogue 

regimes, terrorist facilitators, weapons proliferators, money launderers, drug kingpins, human 

rights abusers, cyber criminals and other illicit finance and national security threats. TFI does 

this by strategically applying the policy, law enforcement, intelligence, and regulatory tools, and 

authorities of its components in a calibrated manner to achieve maximum impact. In FY 2019, 

TFI successfully applied its diverse targeted financial measures, including financial sanctions 

and regulatory tools that address major national security challenges. These challenges include 

North Korea, Iran, Russia, Syria, Venezuela, ISIS, al-Qai’da, Hizballah, human rights violators 

and others. In an effort to identify, disrupt, and dismantle these threats, TFI was able to deny 

revenue sources to these illicit actors and organizations.

North Korea

In the past year, TFI has supported the Administration’s goal to achieve the final, fully verified 

denuclearization of North Korea by maintaining pressure on North Korea’s finances and 

economy, thereby stemming the flow of illicit revenue to its weapons program which continues 

to pose a threat to global security. TFI deploys a variety of financial tools and authorities to curb 

the North Korean threat, including sanctions; measures for anti-money laundering and countering 

the financing of terrorism (AML/CFT); regulatory actions under Section 311 of the United and 

Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct 

Terrorism Act of 2001 (USA PATRIOT Act); foreign engagement; and private sector 

partnerships; among other actions. 

In 2019, TFI targeted illicit actors serving as gateways for North Korea to access the 

international financial system. This includes targeted DPRK illicit efforts aimed at schemes used 
TFI - 12

to evade U.S. and UN sanctions, launder funds, and finance the regime’s weapons of mass 

destruction and ballistic missile programs. 

Overall, in FY 2019, TFI has sanctioned more than 20 individuals, entities, and vessels related to

North Korea. This economic pressure campaign has created the conditions to bring the U.S. and

North Korea to the negotiating table to finally achieve fully verifiable denuclearization with the

hope of bringing peace to the Korean peninsula. 

Iran

Treasury continues to play a leading role in the implementation of the Administration's Iran 

policy. Treasury's actions have disrupted the Iranian regime's ability to fund its broad range of 

malign activities, including supporting its proxies Hizballah and Hamas. Following the 

Administration’s decision to fully re-imposed the nuclear-related sanctions that had been lifted or 

waived under the Joint Comprehensive Plan of Action (JCPOA), in November 2018, Treasury 

took the largest single-day action by sanctioning over 700 individuals, entities, aircraft, and 

vessels. Treasury followed that up through a variety of targeted financial measures that disrupt 

funding sources such as oil, its primary source of funds, as well as other areas such as banking, 

petrochemicals, shipping, and metals. Treasury re-imposed U.S. sanctions on the Iranian regime

and has continued to apply pressure to reduce Iran’s capacity to continue its support for

terrorism, human rights abuses, ballistic missile proliferation, destabilizing activities, and support

of militant groups. Sanctions have included designations of the then-Governor of the Central

Bank of Iran for conspiring with the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)

to conceal the movement of millions of dollars to enrich and support Hizballah; individuals and

entities supporting Mahan Air, an airline previously designated for its support to terrorism, and a

currency exchange network that was funneling millions of dollars to the IRGC-QF.

Of note, in September 2019, Treasury designated the Central Bank of Iran, National 

Development Fund, and Etemad Tejarate Pars Co. under its counterterrorism authority for its 

support of Hizballah and IRGC-Qods Force. In addition, as of the end of FY 2019, TFI has

issued sanctions on 450 individuals and entities for a range of activities related to terrorism,

proliferation, and human rights abuses, and to thwart Iran’s exploitation of the global financial

system. In addition to sanctions, TFI continues to deploy other tools to achieve maximum

pressure on Iran to hold Iran accountable for its destabilizing activities. For example, TFI

recently issued advisories to financial institutions detailing Iran’s efforts to deceive legitimate

businesses, including through the use of front and shell companies, to fund its malign activities. 

Likewise, Treasury officials have traveled the world, meeting with officials in dozens of

countries to warn them of Iran’s illicit activities and garner their support for our pressure

campaign.

Russia

TFI has also undertaken a comprehensive and strategic financial pressure campaign to counter

the scale and sophistication of Russia’s malign activities. TFI has strategically deployed tools to

maximize financial pressure on the Kremlin while minimizing unintended consequences within

the international financial system. These efforts have included a robust sanctions program,

enforcement actions, foreign engagement, and private sector partnerships to deter their illicit

activity. During FY 2019, the Administration sanctioned 58new individuals or entities,
TFI - 13

including 18 designated under Ukraine/Russia-related sanctions under the Countering America's

Adversaries Through Sanctions Act. TFI sanctioned powerful Russian oligarchs and many of the

companies they own or control. 

Counter-Terrorism

TFI’s financial tools are also making an impact in the fight to combat terrorism, to include ISIS,

al-Qai’da, Hizballah, Hamas, the Taliban and others. The Office of Terrorist Financing and 

Financial Crimes (TFTC), introduced in FY 2017, was created to disrupt the financing of terror

through the sharing of intelligence and coordinated actions between the U.S. and six Gulf

country partners—Saudi Arabia, Bahrain, Qatar, Kuwait, Oman, and the United Arab Emirates—

as well as through capacity building. In FY 2019, TFTC conducted two rounds of multilateral

designations. These designations were put into place to expose and disrupt Taliban actors and

their Iranian sponsors that seek to undermine the security of the Afghan Government and to

additionally disrupt an Iranian-backed terrorist group by designating the senior leadership of

Lebanese Hizballah. Additionally, TFI led discussions and training sessions with Gulf partners

on regional terrorist financing issues.

 

Beyond coordinated sanction actions, TFI continued targeting Hizballah and its supporters,

including leadership, operatives, facilitators, financiers, investors, and key global procurement

networks. In FY 2019, TFI conducted 33 Hizballah-related sanction designations, and saw more

designations in calendar year 2019 by the Departments of State and the Treasury than in any

single prior year. 

Venezuela

The U.S. along with other international partners have applied unprecedented financial pressure

on the Maduro regime in Venezuela in light of the actions and policies of the Government of

Venezuela, including serious abuses of human rights and fundamental freedoms; the deepening

humanitarian crisis in Venezuela; establishment of an illegitimate Constituent Assembly;

rampant public corruption; and ongoing repression and persecution of, and violence toward, the

political opposition. Specifically, Treasury has designated over 200 individuals and entities

pursuant to its sanctions authorities, including state-owned oil company, PDVSA, and former

President Maduro and members of his inner circle, cutting them off from the U.S. financial

system. TFI will continue to impose financial constraints on those responsible for Venezuela’s

severe decline and the illicit financial networks used to mask their wealth.

Human Rights

TFI has also applied our tools and authorities to combat corruption and human rights abuses

through the Global Magnitsky Human Rights Accountability Act. In FY 2019 under this

program, TFI has sanctioned approximately 30 individuals and entities for serious human rights

abuse and/or corruption. Consistent with the growing human rights-related workload and

Congress’s focus on these areas, TFI will continue to take action against human rights and

corruption related targets around the globe, including implementing sanctions under Global

Magnitsky and other authorities, and will continue to assess the impact of these activities on

TFI’s mission.
TFI - 14

Financial Action Task Force (FATF)

TFI has also focused on improving systemic enhancements to the global financial system,

including Treasury's assumption of the presidency of the Financial Action Task Force (FATF),

the AML/CFT standard setting body, from July 2018 through June 2019. TFI set three priorities

during its term:

• Clarifying how the FATF standards on regulation and supervision apply to virtual currency

service providers to mitigate the use of virtual currencies by illicit actors;

• Maintaining the FATF's emphasis on combating terrorist financing; and

• Enhancing FATF's work on preventing the financing of the proliferation of weapons of mass

destruction.

During FY 2019, Treasury participated in FATF peer review processes of ten countries. These

comprehensive AML/CFT assessments evaluate countries against the FATF standards for both

technical compliance and effective implementation. FATF also clarified how its standards apply

to virtual asset service providers, which include virtual currency exchangers and administrators.

TFI led the FATF to adopt new standards that require countries around the world to regulate and

supervise virtual currency providers for AML/CFT. TFI also led U.S. efforts to issue guidance

on how countries can effectively regulate and supervise virtual currency providers. Additionally,

TFI, through the Office of Terrorist Financing and Financial Crimes (TFFC), worked with the

United Nations to incorporate into international law the FATF standard that countries prohibit

any funds to terrorists and/or terrorist organizations even without any link to a specific terrorist

act.

In FY 2019, TFI led FATF to foster improved information-sharing between governments and

between financial institutions to put both in a better position to detect, deter, and disrupt illicit

finance, one effort among many that will continue into FY 2020 and beyond.

Under the U.S. Presidency of the FATF, two key U.S. allies became full members of the FATF. 

In addition, due in part to TFI leadership, the FATF under the U.S. Presidency agreed to impose

countermeasures on Iran for the first time in three years. 

Throughout FY 2020 and FY 2021, TFI will focus heavily on strategically deploying its tools

and authorities for maximum impact against national security and foreign policy challenges, as

well as addressing risks to and vulnerabilities within the U.S. and international financial system. 

TFI will continue to focus on applying targeted financial measures against North Korea, Iran,

Russia, and Venezuela, in addition to identifying, disrupting, and dismantling terrorist

organizations, drug kingpins, transnational criminal organizations, and other threats to the U.S.

and our international partners.

Terrorism and Financial Intelligence Offices Supporting the AML/CFT Mission

This budget request supports three of the four components within TFI that exercise AML/CFT 

authorities and responsibilities. The fourth component, Financial Crimes Enforcement Network, 

reports directly to the Under Secretary for TFI but is budgeted separately as a bureau within the 

Treasury.
TFI - 15

Office of Terrorist Financing and Financial Crimes (TFFC)

TFFC is responsible for formulating and coordinating comprehensive strategies to target national 

security and foreign policy threats and safeguard the U.S. and international financial systems 

from abuse. In performing its mission, TFFC works across TFI, as well as interagency and law 

enforcement, to ensure that Treasury’s tools are strategically applied and calibrated for 

maximum impact against global threats such as North Korea, Iran, Venezuela, Russia, ISIS and 

Hizballah, among others. TFFC also leads the development of AML/CFT regulatory and 

outreach initiatives and collaborates with Federal law enforcement on financial crime 

methodology analysis. Domestically, TFFC performs a critical role in working with key 

stakeholders to increase the security of our financial systems, leading public-private sector 

dialogues, financial experts meetings, and other strategic initiatives to identify and address 

potential vulnerabilities. TFFC also serves as the primary interlocutor with international partners 

whether on a bilateral basis or in multi-lateral fora to enhance information sharing, advance 

systemic reforms, synchronize targeted actions, and increase pressure on other countries to 

address specific illicit finance concerns in line with U.S. national security priorities. TFFC 

serves as the head of the U.S. Delegation to the Financial Action Task Force, the international 

body that sets standards and promotes effective implementation of AML/CFT legal, regulatory

and operational measures that protect the integrity of the international financial system. The 

United States held the FATF Presidency from June 2018-June 2019, and TFFC’s Assistant 

Secretary served in that role. Throughout this time period, he and his staff spent months 

determining FATF priorities, working with member countries, and organizing the week long 

FATF plenary, which took place in Orlando, FL in June 2019. TFFC is also leading Treasury’s 

efforts to operationalize the Terrorist Financing Targeting Center.

Office of Intelligence and Analysis (OIA)

As one of 17 members of the U.S. Intelligence Community (IC), OIA is responsible for 

informing Treasury decisions with timely, relevant, and accurate intelligence and analysis of 

financial networks and illicit actors. It supports this mission by: producing all-source 

intelligence analysis that identifies threats to and vulnerabilities within the international financial 

system; driving and delivering intelligence that meets the needs of Treasury decision makers; 

and providing the security infrastructure to protect Treasury’s physical and information security 

apparatus. OIA’s efforts inform and support the Department’s ability to address illicit finance 

and national security threats, including Iran, North Korea, Russia, ISIS, al-Qaida, and illicit 

cyber actors. OIA works with the Office of the Director of National Intelligence and other IC 

agencies to help ensure the Department’s intelligence needs are met. OIA’s security office 

ensures that all necessary Treasury personnel are properly trained to safeguard information 

systems and infrastructure. OIA’s security office also maintains counterintelligence and insider 

threat programs designed to deter, detect, and mitigate foreign intelligence and insider threats to 

Treasury. 

Office of Foreign Assets Control (OFAC)

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and 

national security goals against over 40 targeted foreign countries and regimes, terrorists, 

international narcotics traffickers, those engaged in activities related to the proliferation of 

weapons of mass destruction, and other threats to the national security, foreign policy, or 

economy of the United States. OFAC acts under Presidential national emergency powers, as 
TFI - 16

well as authority granted by specific legislation, to impose controls on transactions and freeze 

assets under U.S. jurisdiction. Many of the sanctions are based on United Nations and other 

international mandates, are multilateral in scope, and involve close cooperation with allied 

governments. OFAC vigorously enforces the sanctions programs it administers, and conducts 

civil enforcement investigations against U.S. and non-U.S. individuals and entities who threaten 

the integrity of its sanctions programs. OFAC’s enforcement actions and activities – including 

civil monetary penalties, non-public disruptive intervention, and public outreach – illuminate 

evasion schemes and enlist the private sector in its sanctions efforts. Additionally, OFAC 

administers a licensing program through which it reviews and then authorizes or denies requests 

to conduct certain transactions or activities that would otherwise be prohibited. OFAC is 

continually evaluating and adjusting its sanctions programs to ensure that it is prohibiting illicit 

activity, while allowing activity that is consistent with or advances U.S. national security and 

foreign policy.

C – Changes in Performance Measures

In 2019 new measures and indicators were determined by a working group between Treasury and 

TFI to effectively measure the growing workload of TFI and better align with enhanced reporting 

across Treasury bureaus and offices. These will be reflected in the FY 2022 Budget tables. 

Performance Measure 

or Indicator

Proposed Change and Justification Indicator/ Measure

1. Number of new 

sanctions 

programs 

modified by EO or 

Congressional 

mandate during 

the fiscal year 

This indicator measures new actions or 

expansion of existing sanction programs. 

The creation of sanctions programs 

requires a significant upfront dedication 

of policy, legal, and regulatory resources 

to ensure proper coordination and 

documentation of the changes. Previously 

TFI reported New or Modificaitons to 

Existing Sanctions programs but the 

indicator has been spilt and refined to 

better capture TFI workload. The data is 

collected by OFAC.

Indicator

2. Number of 

sanctions 

programs 

modified by EO or 

Congressional 

mandate during 

the fiscal year 

This indicator measures actions or 

expansion of existing sanction programs. 

The modification of sanctions programs 

requires a significant upfront dedication 

of policy, legal, and regulatory resources 

to ensure proper coordination and 

documentation of the changes. Previously 

TFI reported New or Modifications to 

Indicator
TFI - 17

Existing Sanctions programs but the 

indicator has been spilt and refined to 

better capture TFI workload. The data is 

collected by OFAC.

3. Regulatory 

documents 

published in the 

Federal Register 

within four 

months of 

publication of an 

Executive order or 

Congressional 

mandate during 

the fiscal year 

(Target 75%)

This measure ensures that OFAC 

publishes regulatory documents related to 

sanctions in a timely manner. The 

preparation for regulatory documents can 

be complex and include several lines of 

effort across OFAC. The data is collected 

by OFAC. 

Performance Measure

4. Designations and 

identifications 

released on time to 

the public without 

errors 

(Target 90%)

This performance measure captures the 

number of actions taken to impose 

sanctions without errors. The preparation 

for each action is exceedingly complex 

and requires several lines of effort. In 

2020 Congressional Justification (CJ)

TFI reported the indicator number of 

designation actions but now is 

performance measure with a target.

Designations released on time and 

without errors strengthens effectiveness 

of US sanction programs. The data is 

collected from OFAC.

Performance Measure

5. Conduct outreach 

events for the 

other US 

government 

agencies, the 

public, the 

business sector, 

and foreign 

government per 

calendar year 

(Target 60 events)

For TFI to be successful in their mission 

involvement and buy-in with the private 

sector and government officials is 

necessary. This performance measure 

tracks the amount of outreach events 

conducted by TFI. 

Performance Measure
TFI - 18

6. Participation in 

FATF 

international 

mutual evaluations

and follow up 

reports)

FATF Mutual Evaluations are peer 

evaluations of countries’ levels of 

effectiveness and implementation of the 

FATF AML/CFT Standards. 

Additionally, the metric includes reviews 

and comments on reports produced by 

the nine FSRBs; and, work assessing and 

reviewing countries as part of the ICRG. 

Participation on mutual evaluations 

usually requires several extended on-site 

visits in country, extensive analysis of a 

country’s AML/CFT system. Previously 

TFI reported Review and Support of 

Foreign AML/CFT laws and regulations 

in the CJ. The modified indicator 

includes FATF ME and follow-up reports

which better represents TFI workload.

The data is collected from TFFC.

Indicator

7. Number of 

roundtables with 

private sector on 

ML/TF threats, 

vulnerabilities, 

and risk

This indicator measures the number of 

roundtables with the private sector TFFC 

conducts. Roundtables contribute to the 

success of TFI mission since private 

sector buy-in support compliance. The 

data is collected by TFFC. 

Indicator

8. # of 

overseas/domestic 

engagements with 

foreign officials 

by TFFC officials 

TFFC is tasked with the majority of the 

outreach and engagement with private 

sector and foreign officials. This 

indicator tracks the number of 

engagement with foreign officials. The 

data is collected by TFFC. 

Indicator

9. Respond to deconfliction 

requests received 

from law 

enforcement 

(target: TBD)

OFAC is tasked with providing a timely 

response to law enforcement agencies 

regarding conflicts in law enforcement 

information.The data is collected by 

OFAC. 

Performance Measure
TFI - 19

10. Number of 

security clearances 

processed 

This indicator reports the number of 

security clearances processed by OIA’s 

Office of Security Programs (OSP). The 

data is collected by OIA. 

Indicator

11. Number of 

analytic products 

published 

(includes Number 

of IIRs published, 

Number of 

finished 

intelligence pieces 

published) 

This indicator includes both formal 

analytical intelligence briefings and final 

analytical intelligence products that were 

published. In the 2020 CJ for TFI, OIA 

reported Analytical Intelligence Support 

published but the indicator has been 

modified to include the vast array of OIA 

products. The data is collected from 

OIA.

Indicator

12. Percent Customer 

Satisfaction with 

OIA products 

(performance 

measure)

OIA products are rated by customers 

using a survey. The rating help OIA 

improve the quality of products and 

customer support. The information is 

collected from OIA.

Performance measure

D – Evidence-Building Activity

TFI is an organization of 800+ people in five independent, but complimentary offices that work 

together using its tools and authorities, including sanctions, to enhance national security. This is 

done by applying policy analysis, law enforcement information, intelligence analysis, and 

regulatory tools in understanding and addressing threats such as rogue regimes, terrorist 

organizations, human rights abusers, drug traffickers, money launders, proliferators of weapons 

of mass destruction (WMDs) and more. Analytics and other information—regulatory reporting, 

foreign government information, and record keeping rules— inform our approach to policy 

implementation, diplomatic engagement, and sanctions and designation targets and more. 

Similar sources of analytics and data are also used to ensure that the domestic and international 

financial systems are protected from abuse by illicit actors. 

Section III – Additional Information

A – Summary of Capital Investments

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

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

This website also contains a digital copy of this document.



Department of the Treasury

Committee on Foreign 

Investment in the United States

Activities

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2021
CFIUS - 2

Table of Contents

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

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

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

1.1 – Appropriations Detail......................................................................................................... 4

1.2.1 – CFIUS Fund Budget Adjustments.................................................................................. 4

1.2.2 – Departmental Offices Budget Adjustments.................................................................... 5

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

1.3 – Object Classification (Schedule O) Obligations................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals............................................................................................................ 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Treasury CFIUS Activities Resources and Measures..................................................... 8

2.1.2 – Other Member CFIUS Activities Resources and Measures ........................................... 8

Committee on Foreign Investment in the United States Budget and Performance .................... 9

C – Changes in Performance Measures...................................................................................... 9

D – Evidence-Building Activity ................................................................................................. 9

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments....................................................................................... 10
CFIUS - 3

Section I – Budget Request

A – Mission Statement

Review certain transactions involving foreign investment in the United States to determine the 

effect of such transactions on the national security of the United States and to address any 

identified national security risks. 

B – Summary of the Request 

The Committee on Foreign Investment in the United States (CFIUS) was established in 1975 

under Executive Order 11858 to monitor the impact of foreign investment in the United States, 

and to coordinate and implement federal policy on such investment. CFIUS is composed of nine 

voting member agencies, some of which have multiple subcomponents. CFIUS’ unique design 

leverages the skills, subject matter expertise, and integrated analysis of Committee members and 

other relevant agencies. CFIUS voting members include:

 Department of the Treasury

 Department of Commerce

 Department of Defense

 Department of Energy

 Department of Homeland Security

 Department of Justice

 Department of State

 Office of Science Technology and Policy

 Office of the United States Trade Representative

As both Chair and member of CFIUS, Treasury is responsible for leading CFIUS in establishing 

policies, issuing regulations, implementing processes and functions, and managing its daily 

operations. Treasury participates in every aspect of CFIUS, including reviews and 

investigations, policy and international relations, mitigation monitoring and enforcement, nonnotified transaction analysis, legal support, and national security threat assessments. The Office 

of International Affairs (IA) is responsible for case management and coordination and 

representing the Committee to parties that file notices. The Office of General Counsel (OGC) 

provides legal support to IA and is responsible for certain analyses conducted on each notice 

filed with CFIUS.

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) strengthens CFIUS 

to better address national security concerns arising from some types of investments and 

transactions that were previously outside of its jurisdiction. Additionally, FIRRMA modernizes

CFIUS’ processes to better enable timely and effective reviews of covered transactions. 

FIRRMA also establishes the CFIUS Fund (the Fund), to be administered by the chairperson (the 

Secretary of the Treasury), to accept appropriated funds for these expanded responsibilities and 

functions, and to collect filing fees.

In recent years, CFIUS’ caseload has increased in volume and complexity. CFIUS reviewed 229

cases in calendar year (CY) 2018 compared to 93 in CY 2010. Transactions generally have also 

become more complex, which had contributed to an increasing rate of investigations. CFIUS 
CFIUS - 4

generally investigates cases that require more resource-intensive analysis and/or corrective 

action. In CY 2018, CFIUS investigated approximately 69 percent of cases compared to 38

percent in CY 2010. The FY 2021 budget requests resources necessary to implement FIRRMA 

and handle an anticipated workload of 1,000 cases per year. 

The Administration requests $20 million for the Fund in upfront appropriations that will be offset 

by up to $20 million in offsetting collections from filing fees, which will be established in 

forthcoming regulations. To fund capital investments and staff to support Committee activities, 

$15 million is proposed for transfer to Treasury. The remaining $5 million will be available for 

transfer to other CFIUS agencies to facilitate, for example, interagency connectivity with 

Treasury’s information technology (IT) and case management systems, as well as address 

emerging needs.

1.1 – Appropriations Detail

Note: Treasury Departmental Offices S&E values and requests are reflected here for illustrative purposes. Those resources are being requested for 

the Departmental Offices S&E Account.

Note: Treasury CFIUS Activities total $39 million - $15 million transferred from the CFIUS Fund and $20 million requested for the 

Departmental Offices S&E Account.

1.2.1 – CFIUS Fund Budget Adjustments 

The total request for Treasury is $39 million, with requested funding increases shown in the two 

Budget Adjustment tables below. The first table shows the CFIUS Fund only. The second table 

includes both the CFIUS Fund and Treasury CFIUS resources provided in the Departmental 

Offices Salary and Expenses account. 

Dollars in Thousands

Appropriated Resources

FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

New Appropriated Resources

Treasury CFIUS Activities 0 $ 0 0 $15,000 0 $15,000 NA 0.0%

Other Member CFIUS Activities 0 $ 0 0 $5,000 0 $5,000 NA 0.0%

New Appropriated Resources - Member Agencies

Treasury Departmental Offices S&E 3 2 $15,000 8 1 $22,341 120 $24,146 48.1% 8.1%

Subtotal New Appropriated Resources 3 2 $15,000 8 1 $42,341 120 $44,146 48.1% 4.3%

O ther Resources

Anticipated User Fees - CFIUS Fund ($10,000) ($20,000) NA 100.0%

Subtotal O ther Resources 0 $ 0 0 ($10,000) 0 ($20,000) NA 100.0%

Total Budgetary Resources 3 2 $15,000 8 1 $32,341 120 $24,146 48.1% -25.3%

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request % Change

FTE Amount

FY 2020 Enacted 0 $20,000

Changes to Base:

Maintaining Current Levels (MCLs): 0 $ 0

Non-Recurring Costs 0 $ 0

Subtotal Changes to Base 0 $ 0

FY 2021 Current Services 0 $20,000

Program Changes:

Anticipated User Fees - CFIUS Fund 0 ($20,000)

FY 2021 President's Budget Request 0 $ 0

Dollars in Thousands
CFIUS - 5

1.2.2 – Departmental Offices Budget Adjustments

Dollars in Thousands

FTE Amount

FY 2020 Enacted 81 $22,341 

Transfer in from CFIUS Fund $15,000 

Subtotal, FY 2020 CFIUS funding 81 $37,341 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $263 

Pay Annualization (2020 3.1% average pay raise) 0 $73 

Pay Raise (1.0% average pay raise) 0 $70 

FERS Contribution Increase 0 $120 

Non-Recurring Costs 0 ($4,867)

Subtotal Changes to Base 0 ($4,604)

FY 2021 Current Services 81 $32,737 

Program Changes:

Program Increases: 39 $6,409 

Staffing to Support CFIUS Caseload Growth 39 $6,409 

FY 2021 President's Budget Request 120 $39,146 

Note: Table reflects Departmental Offices anticipated CFIUS funding. Does not reflect additional $5 

million in funding for other agencies for a total of $44.146 million indicated previously in 1.1 table.

C – Budget Increases and Decreases Description

Offsetting User Fees -$20,000,000 / -0 FTE

Treasury and IA anticipate collection of filing fees that will be credited to the Fund as offsetting 

collections. 

Transfer in from CFIUS Fund +$15,000,000 / +0 FTE

The CFIUS Fund anticipates to transfer $15.0 million dollars to the DO Salaries and Expenses 

account to provide for Treasury DO CFIUS activities. 

Maintaining Current Levels (MCLs) ..........................................................+$263,000 / +0 FTE

Pay Annualization (3.1%) +$73,000 / +0 FTE

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$70,000 / +0 FTE

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$120,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Recurring Costs ..................................................................................-$4,867,000 / -0 FTE

Case Management System -$3,189,000 / -0 FTE

IA expects to complete the final phase of development for the CFIUS Case Management System 

in FY 2021. This non-recur encompasses a portion of this funding. 
CFIUS - 6

Secure Spaces -$1,678,000 / -0 FTE

CFIUS anticipates having completed the majority of anticipated facility buildout by FY 2021. 

Program Increases ....................................................................................+$6,409,000 / +39 FTE

Staffing to Support Caseload Growth +$6,409,000 / +39 FTE

Increase in CFIUS staffing to continue in light of anticipated program growth.

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

11.1 - Full-time permanent 0 0 0

11.9 - Personnel Compensation (Total) 0 0 0

12.0 - Personnel benefits 0 0 0

Total Personnel and Compensation Benefits $ 0 $ 0 $ 0

94.0 - Financial Transfers 0 20,000 20,000

Total Non-Personnel $ 0 $20,000 $20,000

Total O bligations $ 0 $20,000 $20,000

Full-time Equivalents (FTE) 0 0 0
CFIUS - 7

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

Federal Funds

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED 

STATES FUND

(Including transfer of funds)

For necessary expenses of the Committee on Foreign Investment in 

the United States, $20,000,000, to remain available until expended: 

Provided, That the chairperson of the Committee may transfer such 

amounts to any department or agency represented on the 

Committee (including the Department of the Treasury) subject to 

advance notification to the Committees on Appropriations of the 

House of Representatives and the Senate: Provided further, That 

amounts so transferred shall remain available until expended for 

expenses of implementing section 721 of the Defense Production 

Act of 1950, as amended (50 U.S.C. 4565), and shall be available 

in addition to any other funds available to any department or 

agency: Provided further, That fees authorized by section 721(p) of 

such Act shall be credited to this appropriation as offsetting 

collections: Provided further, That the total amount appropriated 

under this heading from the general fund shall be reduced as such 

offsetting collections are received during fiscal year [2020] 2021, 

so as to result in a total appropriation from the general fund 

estimated at not more than [$10,000,000] $0. (Department of the 

Treasury Appropriations Act, 2020.)

This account was created 

by the Foreign 

Investment Risk Review 

Modernization Act of 

2018. 

E – Legislative Proposals

CFIUS has no legislative proposals.
CFIUS - 8

Section II – Annual Performance Plan and Report

A – Strategic Alignment

Treasury’s CFIUS activities support the following strategic objective for Strategic Goal 3, to

enhance national security: 

 Objective 3.3 – Economic Strength and National Security: Advance American prosperity and 

security through growth, investment, trade, and expanding the American industrial base 

while protecting national security.

In recognition of the strategic importance of FIRRMA implementation to national security 

Treasury is including this as an Agency Priority Goal. Successful implementation of FIRRMA

will ensure that identified national security risks arising from certain foreign investments—

including from some types of investments and transactions that previously fell outside of CFIUS’

jurisdiction—are addressed in an effective manner.

B – Budget and Performance by Budget Activity

2.1.1 – Treasury CFIUS Activities Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Enacted Request

Treasury CFIUS Activities 0 0 0 0 0 $15,000 $15,000 

Budget Activity Total 0 0 0 0 0 $15,000 $15,000 

Full-time Equivalents (FTE) 0 0 0 0 0 0 0

2.1.2 – Other Member CFIUS Activities Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Enacted Request

Other Member CFIUS 

Activities 0 0 0 0 0 $5,000 $5,000 

Budget Activity Total 0 0 0 0 0 $5,000 $5,000 

Full-time Equivalents 

(FTE) 0 0 0 0 0 0 0

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Timely Review of CFIUS 

Casse 100 100 100 100 100 100 100 100

Number of notices 

reviewed by CFIUS NA NA NA NA NA NA I I

Number of notices that 

proceed to investigation by 

CFIUS

NA NA NA NA NA NA I I

Key: DISC - Discontinued; B - Baseline; I - Indicator; NA - Not Applicable

Note: Prior to FY 2018, CFIUS was reflected in the International Affairs Program Resources section of the Departmental Offices Salaries and 

Expenses Account.
CFIUS - 9

Committee on Foreign Investment in the United States Budget and Performance

($20,000,000 from direct appropriations):

In FY 2019 CFIUS took significant steps toward full implementation of the Foreign Investment 

Risk Review Modernization Act of 2018 (FIRRMA). At the beginning of FY 2019, the 

Committee established a pilot program to cover certain investments in critical technologies 

related to specific industries. At the end of FY 2019, Treasury published proposed FIRRMA 

regulations to implement the remainder of the statute, for public notice and comment. In January 

2020, Treasury issued final regulations to implement FIRRMA, which become effective on 

February 13, 2020. Treasury has also made substantial progress on various administrative 

aspects of implementation, including with regard to staffing, information technology systems and 

infrastructure, and facility build-out.

Timely Review of CFIUS Cases: This measure tracks compliance with statutory deadlines for 

completing national security reviews of transactions notified to the CFIUS to ensure that the 

CFIUS process is timely and efficient. The target (100 percent) was met in CY 2019. IA’s 

target for this measure in CY 2020 and CY 2021 is 100 percent.

C – Changes in Performance Measures

Performance Measure or Indicator Proposed Change and Justification

1. Number of notices that are reviewed 

by the Committee on Foreign 

Investment in the United States per 

calendar year (indicator).

This indicator measures the number of 

notices reviewed by CFIUS as a result of 

updated regulations under FIRRMA.

2. Number of notices that proceed 

beyond the initial review to a 

subsequent investigation. CFIUS 

generally investigates cases that 

require more resource-intensive 

analysis and/or corrective action

(indicator).

This indicator measures the number of 

investigations conducted by CFIUS as a 

result of updated regulations under 

FIRRMA.

D – Evidence-Building Activity

Throughout FY 2019, Treasury’s Office of Investment Security drafted regulations to implement 

the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The Office relied 

on evidence from a range of sources to shape and effectively scope the final regulations, which 

were published in January 2020. This includes aggregated data on transactions covered under a 

“pilot program” that expanded the scope of transactions subject to review by CFIUS to certain 

non-controlling investments involving foreign persons and certain critical technologies. 

Treasury also benefited from hundreds of individual comments it received on proposed versions 

of the regulations that it published in September 2019. The final regulations update multiple 

provisions in response to a considered analysis of pilot program data and the public comments. 
CFIUS - 10

Once the final FIRRMA regulations become effective on February 13, 2020, Treasury will 

collect and regularly analyze data on covered transactions that are reviewed by CFIUS and 

monitor the broader national security and investment landscapes to ensure that the final 

regulations are effectively addressing national security concerns. As a result of these activities, 

Treasury may, if necessary, periodically amend the regulations or provide additional information 

to assist the public with compliance. 

In FY 2020, Treasury will begin use of a new, electronic case management system that will 

support this effort and better enable future evidence-building and program evaluation-related 

activities. 

Section III – Additional Information

A – Summary of Capital Investments

A summary of capital investment resources, including major information technology and nontechnology investments related to CFIUS can be found with other DO IT investments at:

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments. This website also 

contains a digital copy of this document.


Department of the Treasury 

Office of Inspector General 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021
OIG - 2

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 5

1.2 – Budget Adjustments Table................................................................................................. 5

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

1.3 – Object Classification (Schedule O) Obligations................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals............................................................................................................ 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity .................................................................... 13

2.1.1 – Audit Resources and Measures..................................................................................... 13

Audit Budget and Performance................................................................................................. 13

2.1.2 – Investigations Resources and Measures........................................................................ 14

Investigations Budget and Performance ................................................................................... 14

C – Changes in Performance Measures.................................................................................... 15

D – Use of Evidence and Evaluation ........................................................................................ 16

Section III – Additional Information ........................................................................................ 16

A – Summary of Capital Investments....................................................................................... 16
OIG - 3

Section I – Budget Request

A – Mission Statement

To promote the integrity, efficiency, and effectiveness in programs and operations within the 

Department of the Treasury and across OIG’s jurisdictional boundaries. 

B – Summary of the Request

The FY 2021 request for $39,335,000 for the OIG will be used to fund audit, investigative, and 

mission support activities to meet the requirements of the Inspector General Act of 1978, as 

amended, and other statutes including, but not limited to: the Cybersecurity Act of 2015; DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank); Federal Information 

Security Modernization Act of 2014 (FISMA); Federal Information Technology Acquisition 

Reform Act; Government Management Reform Act; Improper Payments Elimination and 

Recovery Act of 2010 (IPERA); Government Charge Card Abuse Prevention Act of 2012; 

Digital Accountability and Transparency Act of 2014 (DATA Act); Federal Deposit Insurance 

Act; Small Business Jobs Act of 2010; and Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTORE). 

Specific mandates include: (1) audits of the Department’s financial statements (2) audits or 

evaluations of the Department’s information systems security program and practices as required 

by FISMA, (3) assessments of the Department’s cyber security information sharing, (4) audits of 

improper payments and recoveries under IPERA, (5) risk assessments and audits of charge card 

programs, (6) material loss reviews of failed insured depositary institutions regulated by the 

Office of the Comptroller of the Currency (OCC), and (7) data quality audits of spending data 

submitted by the Department to USASpending.gov.

The OIG will also conduct audits of the Department’s highest risk programs and operations, and 

respond to stakeholder requests for specific work, including: (1) operating in an uncertain 

environment, (2) cyber threats, (3) Bank Secrecy Act, anti-money laundering, and anti-terrorist 

financing enforcement, (4) efforts to promote spending transparency and to prevent and detect 

improper payments, and (5) information technology acquisition and project management.

Within its jurisdictional boundaries, the OIG also conducts audit of the highest risk programs and 

operations of Gulf Coast Ecosystem Restoration Council (Council) established under RESTORE. 

The highest risk programs and operations identified as the Council’s management and performance 

challenge include: (1) Federal statutory and regulatory compliance and (2) grant and interagency 

agreement compliance monitoring.

The OIG will continue its investigative work to prevent, detect, and investigate complaints of

fraud, waste, and abuse impacting Treasury programs and operations. This includes the 

detection and prevention or deterrence of employee misconduct and fraud.

Through the audit and investigative functions, the OIG supports Treasury’s FY 2018 – 2022 

Strategic Plan. The goals are: Goal 1: Boost U.S. Economic Growth; Goal 2: Promote Financial 

Stability; Goal 3: Enhance National Security; Goal 4: Transform Government-wide Financial 

Stewardship; and Goal 5: Achieve Operational Excellence. In support of Treasury’s Strategic Plan, 

the OIG established the following strategic goals:
OIG - 4

• Promote the integrity, efficiency, and effectiveness of programs and operations across 

Treasury OIG’s jurisdictional boundaries through audits and investigations

• Proactively support and strengthen the ability of programs across Treasury OIG’s 

jurisdictional boundaries to identify challenges and manage risks 

• Fully and currently inform stakeholders of Treasury OIG findings, recommendations, 

investigative results, and priorities

• Enhance, support, and sustain a workforce and strengthen internal operations to achieve the 

Treasury OIG mission, vision, and strategic goals

The Budget includes language that would allow, contingent upon enactment of authorizing 

legislation to transfer the United States Secret Service to Treasury, the Secretary of Homeland 

Security to transfer amounts from the Department of Homeland Security Office of Inspector 

General to support the Treasury OIG’s oversight of the Secret Service.

Office of Inspector General’s FY 2021 Budget Request

In accordance with the requirements of Section 6(f) (1) of the Inspector General Act of 1978, as 

amended, the Treasury Inspector General submits the following information relating to the 

OIG’s requested budget for FY 2021:

• The aggregate budget request for the operations of the OIG is $48,335,000 comprised of 

$39,335,000 from direct appropriations, and $9,000,000 from reimbursable collections;

• The portion of this amount needed for OIG training is $650,000; and

• The portion of this amount estimated in support the Council of Inspectors General on 

Integrity and Efficiency (CIGIE) is $92,500.

The amount requested for training satisfies all OIG training needs for FY 2021.
OIG - 5

1.1 – Appropriations Detail Table

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to 

FY 2021

Appropriated Resources Operating Plan Enacted Request % Change

New Appropriated Resources FTE AMOUNT FTE AMOUT FTE AMOUNT FTE AMOUNT

Audit 128 $28,524 128 $30,524 136 $29,524 3.0% 1.1%

Investigations 39 $8,520 39 $10,520 44 $9,811 3.3% 1.8%

Subtotal New Appropriated Resources 154 $37,044 167 $41,044 180 $39,335 7.70% -4.1%

Other Resources

Reimbursable 0 $6,000 0 $9,000 0 $9,000 0.0% 100.0%

Subtotal Other Resources 0 $6,000 0 $9,000 0 $9,000 0.0% 100.0%

Total Budgetary Resources 154 $43,044 167 $50,044 180 $48,335 7.70% -3.4%

Note: FTE = Full-time Equivalent Employment 

1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2020 Enacted 167 $41,044 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $982 

Pay Annualization (2020 3.1% average pay raise) 0 $237 

Pay-Raise (1% average pay raise) 0 $231 

FERS Contribution Increase 0 $304 

Non-Pay 0 $210 

Other Adjustments: 13 $0 

Workforce FTE Adjustment 13 $0 

Subtotal Changes to Base 13 $982 

FY 2021 Current Services 180 $42,026 

Program Changes:

Program Decreases - ($2,691)

Reduction in Contracts and Absorption of Rent 

Increases - ($2,691)

FY 2021 President's Budget Request 180 $39,335 

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs)............................................................+$982,000 / +0 FTE 

Pay Annualization (3.1%) +$237,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$231,000 / +0 FTE

Funds are requested for a 1.0% average pay raise in January 2021.

FERS Contribution Increase +$304,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.
OIG - 6

Non-Pay +$210,000 / +0 FTE 

Funds are requested for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment.

Other Adjustments .................................................................................................+$0 / +13 FTE

Workforce FTE Adjustment +0 / +13 FTE 

This adjustment is required to right-size the workforce to the funded FTE level.

Program Decreases ......................................................................................-$2,691,000 / -0 FTE

Reduction in Contracts and Absorption of Rent Increase -$2,691,000 / -0 FTE 

Program decrease in contracts and to accommodate increased administrative costs, including 

rent.

1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands

FY 2019 FY 2020 FY 2021

Object Classification

Actual

Obligations

Estimated

Obligations

Estimated

Obligations

11.1 - Full-time permanent 18,989 22,000 20,000

11.3 - Other than full-time permanent 0 10 10 

11.5 - Other personnel compensation 1,000 400 900 

11.9 - Personnel Compensation (Total) 19,989 22,410 20,910

12.0 - Personnel benefits 6,986 8,000 7,291

13.0 - Benefits for former personnel 0 15 15

Total Personnel and Compensation Benefits $26,975 $30,425 $28,216

21.0 - Travel and transportation of persons 968 700 700

23.1 - Rental payments to GSA 3,903 4,106 4,306

23.3 - Communications, utilities, and miscellaneous charges 0 900 900

24.0 - Printing and reproduction 0 10 10 

25.2 - Other services from non-Federal sources 2,200 2,100 2,300 

25.3 - Other goods and services from Federal sources 2,200 2,200 2,300

25.6 - Medical care 0 75 75

25.7 - Operation and maintenance of equipment 0 58 58

26.0 - Supplies and materials 0 200 200

31.0 – Equipment 1,960 250 250

91.0 - Unvouchered 0 20 20

43.0 - Interest and dividends 0 0 0 

Total Non-Personnel $10,831 $10,619 $11,119

Total Obligations $37,806 $41,044 $39,335

Full-time Equivalents (FTE) 154 167 180

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
OIG - 7

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

OFFICE OF INSPECTOR GENERAL

Federal Funds

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General in 

carrying out the provisions of the Inspector General Act of 

1978, [$41,044,000]$39,335,000, including hire of passenger 

motor vehicles; of which not to exceed $100,000 shall be 

available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the 

Inspector General of the Treasury; of which up to $2,800,000 

to remain available until September 30, [2021]2022, shall be 

for audits and investigations conducted pursuant to section 

1608 of the Resources and Ecosystems Sustainability, Tourist 

Opportunities, and Revived Economies of the Gulf Coast 

States Act of 2012 (33 U.S.C. 1321 note); and of which not to 

exceed $1,000 shall be available for official reception and 

representation expenses. (Department of the Treasury 

Appropriations Act, 2020.)

E – Legislative Proposals

The OIG has no legislative proposals.
OIG - 8

Section II – Annual Performance Plan and Report

A – Strategic Alignment

Through the audit and investigative functions, the OIG supports the Department of the 

Treasury’s Strategic Plan for FY 2018-2022 including all objectives under the following goals: 

• Goal 1: Boost U.S. Economic Growth

• Goal 2: Promote Financial Stability

• Goal 3: Enhance National Security

• Goal 4: Transform Government-wide Financial Stewardship

• Goal 5: Achieve Operational Excellence

The FY 2021 requested resources will enable the OIG to perform audits and investigations of 

Treasury programs and operations under its jurisdiction, except for those of the Internal Revenue 

Service (IRS) and the Troubled Asset Relief Program (TARP), and to keep the Secretary of the 

Treasury and Congress fully informed of problems, deficiencies, and the need for corrective 

action. By statute, the OIG also performs oversight of the Gulf Coast Ecosystem Restoration 

Council, an independent Federal entity.

Major challenges and risks for Treasury: 

Operating in an Uncertain Environment

This challenge addresses the external factors and future uncertainties that affect the Department’s 

programs and operations. Among the most notable are the proposed changes included in the 

Office of Management and Budget’s (OMB) comprehensive “Government–wide Reform Plan

and Reorganization Recommendations” (Government–wide Reform Plan) to reorganize the 

Executive Branch. Tackling OMB’s proposed reformations and other critical matters at hand 

could be more challenging as Senate confirmed leadership positions and other key senior level 

positions within the Department remain vacant. Overall, human capital management remains a 

high risk area as the lengthy security clearance process has hampered the recruitment of 

cybersecurity personnel and other mission critical positions dealing with programs and materials 

of the highest sensitivity.

As another complicating factor, Treasury must operate in the repeated cycle of budget and debt 

ceiling stopgaps. While the debt ceiling has been lifted, through July 31, 2021, it is only 

temporary. The OIG will assess the Department’s ability to meet new mandates and manage 

challenges and risks to its programs and operations.

Cyber Threats

Treasury has maintained steady progress in addressing the continual and on-going challenges 

that the Federal Government and private sector face, including the threat of ransomware and 

difficulty obtaining cybersecurity personnel. Cyber threats are a persistent concern as Treasury’s 

information systems are critical to the core functions of government and the Nation’s financial 

infrastructure. Attempted cyber-attacks against Federal agencies, including Treasury, and 

financial institutions continue to increase in frequency and severity, in addition to continuously 

evolving. There are risks that Treasury’s systems and resources already in use, including critical 

infrastructure, contain components from sources that have yet to be designated as threats. 
OIG - 9

The Department will need to monitor developments in this area closely and plan for the 

possibility that its current supply chain may no longer be available in the near future. 

In addition to its own networks and systems, the Department must be cognizant of, and mitigate, 

the risks posed by attacks made against other agencies and Treasury contractors and 

subcontractors. Furthermore, effective public-private coordination continues to be required to 

address the cyber threat against the Nation’s critical infrastructure. In this regard, Treasury is

looked upon to provide effective leadership to financial institutions in particular, and the 

financial sector in general, to strengthen awareness and preparedness against cyber threats.

As an ongoing challenge, Treasury will need to balance cybersecurity demands while 

modernizing and maintaining information technology (IT) systems. To this end, Treasury must 

ensure that cyber security is fully integrated its IT investment decisions. OIG conducts audits of 

Treasury’s information systems and operations. As part of these audits, OIG conducts 

penetration tests of selected Treasury bureaus and offices to determine whether sufficient 

protections exist to prevent and detect unauthorized access to Treasury networks and systems. 

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

Identifying, disrupting, and dismantling the financial networks that support rogue regimes, 

terrorist organizations, transnational criminal organizations, and other threats to the national 

security of the United States and our allies continues to be challenging as the Office of Terrorism 

and Financial Intelligence’s (TFI) role to counter these financial networks and threats has grown 

because its economic authorities are key tools to carry out U.S. policy. Effective coordination 

and collaboration and TFI’s ability to effectively gather and analyze intelligence information 

requires a stable cadre of experienced staff. The security clearance process has significantly 

impacted Treasury’s human capital management and is a systemic issue government-wide. 

Stability, experienced leadership, and coordination within TFI is imperative to enhance 

information gathering and intelligence analysis and increase efficiency. 

Data security and information sharing are challenges for the Financial Crimes Enforcement 

Network (FinCEN), which has experienced unauthorized disclosures of Bank Secrecy Act 

information. The challenge for FinCEN is to ensure the Bank Secrecy Act data remain secure in 

order to maintain the confidence of the financial sector while meeting the access needs of law 

enforcement, regulatory, and intelligence partners. 

Given the criticality of Treasury’s mission, its role to carry out U.S. policy, and resource 

constraints, the OIG continues to consider anti-money laundering and combating terrorist 

financing programs and operations as inherently high-risk. Through OIG’s ongoing audits and 

reviews, the OIG monitors this high-risk area closely. 

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

Given the broad implications and critical roles assigned to Treasury by the Digital Accountability 

and Transparency Act of 2014 (DATA Act), it is considered an ongoing management challenge. 

The DATA Act requires the Federal Government to provide consistent, reliable, and useful 

online data about how it spends taxpayer dollars. Given the Department’s role in the 

Government-wide implementation of the DATA Act, Treasury OIG has provided continuous 

oversight since enactment of the law. While there have been successes to date, there is still much 
OIG - 10

to do. Concurrent with the work performed by the OIG, the office leads a multi-agency IG 

community DATA Act Working Group and provides educational oversight ensuring the IG 

community is carrying out responsibilities under the DATA Act. Reliable and transparent data is 

critical to the Department ongoing implementation of government-wide reforms for making data 

accessible and useful for decision-making as authorized by the Foundations for Evidence-Based 

Policymaking Act of 2018 (Evidence Act). The OIG will monitor the Department’s progress in 

this area.

The OIG also continues to identify and analyze the risks of improper payments and reviews the 

controls and safeguards put in place by Treasury to prevent and recover such payments as set 

forth in the Improper Payment Elimination and Recovery Act of 2010 (IPERA).

Information Technology Acquisition and Project Management

Government-wide implementation of the Federal Information Technology Acquisition Reform 

Act (FITARA) continues to be an ongoing challenge. FITARA expanded the involvement of 

Chief Information Officers of Federal agencies in IT decision making, including annual and 

multi-year planning, programming, budgeting, execution, reporting, management, governance, 

and oversight functions. Among FITARA specific requirements, the areas that Treasury needs 

most improvement were enhanced transparency and risk management and improved 

cybersecurity. Since February 2015, the Government Accountability Office has included the 

management of IT acquisitions and operations on its high-risk list as cost overruns and schedule

delays impact mission related outcomes government-wide. The OIG monitors the Department’s 

progress to fully implement FITARA requirements and management of IT projects.

Non-IT related acquisitions also require attention to ensure timely delivery and minimize cost 

overruns for achieving cost savings. In this regard, the OIG plans audit oversight of the Bureau 

of Engraving and Printing’s large construction project of a new facility to ensure continuity of 

operations of the bureau. 

Major challenges and risks for the Gulf Coast Ecosystem Restoration Council (Council)

Federal Statutory and Regulatory Compliance

The Council must ensure that activities and projects funded by the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 

2012 (RESTORE Act) meet all environmental laws and regulations at the Federal and State 

level, and must also ensure its compliance with applicable laws and regulations as a Federal 

entity. The Council is challenged to follow Federal statutory and regulatory compliance 

requirements related to the DATA Act, IPERA, and the Evidence Act. The Council still faces 

challenges in meeting these Federal statutory and regulatory compliance stemming from the need 

for a reliable grants management system among other things. With the uncertainty of a 

successful transition to a new grants management system expected to be completed in fiscal year 

2020, the Council’s ability to comply with new as well as existing Federal requirements may be 

in question. The OIG will continue to focus audits on the Council’s continued implementation 

and compliance with key Federal mandates.
OIG - 11

Grant and Interagency Agreement Compliance Monitoring

Given the increase in grants and interagency agreements, the OIG continues to emphasize the 

necessity to monitor projects and award recipients of RESTORE Act funds. This challenge is 

further impacted by the Council’s transition to a new grants management system during fiscal 

year 2020. The OIG audits will focus on the Council’s monitoring controls in place to ensure 

projects’ and recipients’ comply with grant and agency agreements and funds are used as 

intended. 

In the Investigations operational area, OIG has established eight priorities for FY 2020:

Criminal and Serious Employee Misconduct

The OIG Office of Investigation’s highest priority is investigating complaints involving alleged 

criminal and other serious misconduct by Treasury employees. OIG investigates allegations of:

the general crimes enumerated in Title 18 of the U.S. Code, other federal crimes, alleged 

violations of the Ethics in Government Act, and allegations of serious misconduct prohibited by 

the Standards of Ethical Conduct for Employees of the Executive Branch. Several Treasury 

bureaus and offices have additional rules and regulations relating to ethical standards for their 

own employees, and OIG also investigates complaints of alleged violations of these rules and 

regulations.

Fraud Involving Contracts, Grants, Guarantees, and Funds

The OIG Office of Investigations conducts investigations into allegations of fraud and other 

crimes involving Treasury contracts, grants, loan guarantees, and federal funds, including 

investigations made in accordance with Sections 1602 and 1603 of the Recovery Act. Such 

allegations often involve contractors, entities, and individuals who are providing or seeking to 

provide goods or services to the Department. The Office of Investigations receives complaints 

alleging criminal or other misconduct from employees, contractors, members of the public, and 

the Congress.

Financial Programs and Operations Crime

Investigations relating to Treasury financial programs and operations that involve Treasury 

bureaus issuing licenses, providing benefits, and exercising oversight of U.S. financial 

institutions; frauds involving improper Federal payments such as those involving stolen, 

counterfeit, altered or fraudulently obtained Treasury checks and ACH payments; frauds 

involving improper Federal payments such as those involving Treasury checks and the Check 

Forgery Insurance Fund; crimes involving the improperly-redirected benefits of federal 

government payees; and false claims of any kind that seek Federal payments, including federal 

income tax refunds, Social Security benefits, and Department of Veterans’ Affairs. These matters 

require prompt attention to protect the public and the integrity of the department.

Threats Against Treasury Employees and Facilities

Investigative efforts into threats against Treasury employees and facilities are critical in ensuring 

safety for the Department. These matters require prompt attention and coordination with federal, 

state, and local authorities in order to protect those involved.
OIG - 12

Cyber Threats against Treasury Systems and Cyber Enabled Financial Crimes Fraud

The OIG conducts investigations into Cyber intrusions of Treasury systems, the illicit removal of 

Treasury protected information from Treasury systems and Cyber enabled criminal activity 

impacting Treasury programs and operations, such as Business Email Compromise, Personal 

Email Compromise and other schemes.

Treasury Employee and Bureau Impersonation Scams

Investigations relating to scammers who represent themselves as Treasury employees in order to 

defraud the citizens of the U.S. and other countries by the impersonation of Treasury employees 

and/or the fraudulent use of the Treasury and Bureau seals. This is a problem that has 

significantly increased in the last few years. These matters require prompt attention to protect the 

public and the integrity of the Department.

Investigating Fraud Related to Persons Representing Themselves as “Sovereign Citizens” 

Submitting Fictitious Financial Instruments to Treasury, Financial Institutions, and Private 

Companies

The OIG conducts investigations into criminal activity associated with individuals who attempt 

to scam the Treasury, financial institutions, private companies, and citizens by submitting 

fictitious financial instruments purporting to be issued by or drawn on the Treasury or other 

counterfeit documents to perpetrate a variety of fraud schemes. These matters have become more 

prevalent and require prompt coordination with Federal, State, and local authorities to protect the 

targets of the scams. 

Identifying and Investigating Fraud Related to the RESTORE Act 

The RESTORE Act commits 80 percent of all administrative and civil penalties related to the 

Deepwater Horizon spill to the Gulf Coast Restoration Trust Fund. It also outlines a structure for 

using the funds to restore and protect the natural resources, ecosystems, fisheries, marine and 

wildlife habitats, beaches, coastal wetlands, and economy of the Gulf Coast region. As such, the 

act assigns Treasury several roles in administering the Trust Fund, including authorizing the 

Inspector General to investigate projects, programs, and activities funded under the act.
OIG - 13

B – Budget and Performance by Budget Activity

2.1.1 – Audit Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $24,947 $27,653 $26,014 $24,413 $25,699 $30,525 $29,524

Reimbursable $8,525 $7,299 $6,726 $6,116 $6,236 $9,000 $9,000 

Budget Activity Total $33,472 $34,952 $32,740 $30,529 $31,935 $39,525 $38,524

Full-time Equivalents (FTE) 135 137 115 119 128 128 136

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Number of Completed 

Audit Products 75 86 90 91 79 74 82 74

Percent of Statutory Audits

Completed by the Required

Date

100 100 100 100 100 100 100 100

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Audit Budget and Performance

($29,524,000 from direct appropriations, and $9,000,000 from reimbursable resources):

The Office of Audit conducts audits intended to ensure the accountability of resources, protect 

information, and provide recommendations for improving the integrity, economy, efficiency, 

effectiveness, of programs and operations within the Department and across OIG’s jurisdictional 

boundaries, which include those of the Council. The requested funding for FY 2021 is necessary 

to perform mandated work (including audits/assessments of financial statements, information 

systems security program and practices, cyber security information sharing, improper payments 

and recoveries, charge card programs. material loss reviews of failed insured depository 

institutions regulated by the OCC, and data quality audits of spending data), and to maintain an 

appropriate level of oversight of programs and operations consistent with the OIG’s 

responsibilities under the Inspector General Act of 1978, amended. In FY 2021, OIG will also 

continue to provide oversight of Treasury’s government-wide role and responsibilities under the 

DATA Act. Reimbursable funding agreements support financial statement audits of Treasury and 

oversight of the Small Business Lending Fund. Reimbursable funding agreements also support 

Treasury financial audits for which Treasury OIG is the lead office in selecting and overseeing 

contractor selection.

Description of Performance

The Office plans to complete 82 audit products in FY 2020, and 74 in FY 2021. The number of 

audit products was reduced beginning in FY 2019 due to decreased staffing to cover increased 

administrative costs (rent). In FY 2019, the Office of Audit completed 79 audit products, and met 

all statutory audit timelines. Audit products included audit reports, evaluation reports, the 

Inspector General’s Semi-Annual Reports to Congress, and the Inspector General’s annual 

memoranda to the Secretary of the Treasury and the designated Chairperson of the Gulf Coast 
OIG - 14

Ecosystem Restoration Council, on the most significant management and performance 

challenges facing the Department and Gulf Coast Ecosystem Restoration Council, respectively. 

Audit products can also include responses to specific information requests by the Congress. By 

completing independent and timely assessments of programs and operations across its 

jurisdiction, the Office of Audit supports the OIG’s mission of promoting integrity, efficiency, 

effectiveness of those programs and operations. The recommendations for improvement in 

programs and operations noted through OIG’s assessments directly support both the Treasury 

Department and the Gulf Coast Ecosystem Restoration Council in achieving their strategic goals 

and meeting their respective missions. 

2.1.2 – Investigations Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $6,237 $6,913 $7,164 $11,512 $11,345 $10,519 $9,811

Budget Activity Total $6,237 $6,913 $7,164 $11,512 $11,345 $10,519 $9,811

Full-time Equivalents (FTE) 33 33 43 42 39 39 44

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of All Cases 

Closed During Fiscal Year 

That Were Referred for 

Criminal/Civil/Administrative 

Action.

87 84 84 98 80 74 80 80

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Investigations Budget and Performance 

($9,811,000 from direct appropriations): 

The Office of Investigations prevents, detects, and investigates complaints of fraud, waste, and 

abuse impacting Treasury programs and operations. This includes the detection and prevention 

or deterrence of employee misconduct and fraud, or related financial crimes within or directed 

against Treasury. The Office of Investigations refers its cases to the Department of Justice, state 

or local prosecutors for criminal prosecution or civil litigation, or to agency officials for 

corrective administrative action. 

With almost $4 billion in Treasury-related contracts, there is an increased risk of contract fraud 

across all Treasury bureaus and programs. OI initiated a program of providing integrity briefs to 

contract personnel notifying them of the responsibilities to report fraud, waste, and abuse within 

U.S. Treasury contracts and programs. OI works with the U.S. Department of Justice to 

prosecute False Claims Acts in federal court to recover funds through civil penalties. 

Additionally, OI conducts criminal investigations to prosecute contracts engaging in fraudulent 

activity, such as kickbacks, product substitution, bid manipulation, and many other types of 

contract fraud. OI continues to work allegations directly impacting the American Reinvestment 

and Recovery Act and the Gulf Coast Restoration Trust Fund. 
OIG - 15

OI directs investigative efforts toward those that subvert bank examination processes, and/or 

perpetrate fraud impacting the Bank Secrecy Act oversight responsibilities of Treasury bureaus, 

subsequently defrauding the nation’s financial infrastructure and eroding the public’s trust.

In addition to the grant programs listed above, the Office of Investigations has seen a noted 

increase in fraud impacting other significant Treasury programs and operations, including leaks 

of Treasury information, as well as fraud impacting the Treasury payment processing service 

operated by the Bureau of Fiscal Service. The Office of Investigations remains committed to 

investigating benefit, improper payment and other monetary fraud associated with the programs 

and operations of the Treasury Department. 

Additionally, the Office of Investigations remains committed to investigating benefit, improper 

payment and other monetary fraud associated with the programs and operations of the Treasury 

Department. 

Description of Performance

In FY 2019 the Office of Investigations met the Investigative Performance Measure target 

(Target – 80 percent; Actual – 80 percent), opened 63 new investigations and closed 119 

investigations. The OIG also referred 10 investigations that substantiated administrative 

violations against a Treasury employee to the appropriate regulated bureau for action. In 

addition, the OIG referred 81 investigations for criminal prosecution and 3 investigations 

involving 13 entities for civil prosecution. In FY 2019 the Office of Investigations charged 

and/or indicted 19 subjects. Ongoing investigations resulted in 32 subjects sentenced which 

resulted in fines, seizures, restitution, penalties and settlements of more than $29.5 million. 

The Office of Investigations continues to support frequent congressional inquiries, sensitive 

investigative requests from the Council of the Inspectors General on Integrity and Efficiency, 

and annual peer reviews of other Offices of Inspector General, thus ensuring a high level of 

professionalism within the Inspector General community.

The Investigative Performance Measure is a percentage of all cases closed by the Office of 

Investigations during the fiscal year referred to Department Bureaus for administrative action or 

for criminal or civil prosecution by Federal or local prosecutors. The goal for Office of 

Investigations is that at least 80 percent of closed cases meet the aforementioned criteria.

Meeting or exceeding this goal demonstrates that the Office of Investigations is responsive to 

allegations and complaints referred to the office and when these referrals require investigation, 

the cases are timely, thoroughly and accurately reported to assist the Department in maintaining 

the integrity of its programs and operations, subsequently ferreting out fraud, waste, and abuse. 

The office is working to meet or exceed this measure in both FY 2020 and FY 2021.

With the publication of the Treasury Strategic Plan for FY 2018-2022, OIG will work this year 

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

performance measures in the FY 2021 budget.

C – Changes in Performance Measures

OIG has no changes in performance measures.
OIG - 16

D – Use of Evidence and Evaluation

The OIG will be adding a data analysis function to its audits in order to use data to assess risk 

and feed decisions about programs requiring further evaluation within Treasury. The auditors 

within the Office of Audit will use this information to assess individual programs and to assess 

risk on a Treasury-wide level.

Section III – Additional Information

A – Summary of Capital Investments

The OIG has no capital investments. Capital investments that support the OIG are included in the 

Departmental Offices plan.

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx


Department of the Treasury 

Office of the Special Inspector 

General for TARP 

(SIGTARP) 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021
SIGTARP - 2

Table of Contents

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

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

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

Special Inspector General’s Comments...................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 6

1.2 – Budget Adjustments Table................................................................................................. 7

C – Budget Increases and Decreases Description....................................................................... 7

1.3 – Object Classification (Schedule O) Obligations................................................................ 8

D – Appropriations Language and Explanation of Changes ...................................................... 9

E – Legislative Proposals............................................................................................................ 9

Section II – Annual Performance Plan and Report................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 12

2.1.1 – Investigations Resources and Measures........................................................................ 12

Investigations Budget and Performance ................................................................................... 12

2.1.2 – Audit Resources and Measures..................................................................................... 13

Audit Budget and Performance................................................................................................. 13

D– Evidence-Building Activity ................................................................................................ 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments....................................................................................... 14
SIGTARP - 3

Section I – Budget Request

A – Mission Statement

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) 

is a federal law enforcement agency and an independent audit watchdog that targets financial 

institution crime, and other fraud, waste, and abuse related to TARP. Protecting Americans, 

taxpayer dollars, and TARP programs drives SIGTARP’s mission.

B – Summary of the Request

The Fiscal Year (FY) 2021 Budget proposes $17,500,000, a 20 percent reduction from the 

FY 2020 level. The proposed Budget is intended to fund the Congressionally mandated

independent oversight of TARP through SIGTARP criminal investigations and audits. TARP 

spending continues because TARP foreclosure prevention programs, the Making Home 

Affordable (MHA) and the Hardest Hit Fund (HHF) programs continue. Banks, mortgage 

servicers, state agencies, thousands of contractors and other recipients have already received over 

$30 billion via these programs. SIGTARP’s investigations and audits stop fraud, waste, and 

abuse of the $30 billion spent, and recover lost dollars for the Government and other victims. 

The more than $3.5 billion in future TARP spending will add to SIGTARP’s existing and 

planned investigations and audits.

Special Inspector General’s Comments

Pursuant to section 6(f)(3)(E) of the Inspector General Act of 1978, as amended, as applied 

through the Emergency Economic Stabilization Act of 2008, I have concluded that the President’s 

FY 2021 Budget request of $17.5 million would substantially inhibit the Special Inspector 

General from performing the duties of the office. I independently proposed an appropriation of 

$19 million (an additional $1.5 million) for FY 2021, as the level needed to support SIGTARP’s 

Congressionally mandated mission to conduct oversight of TARP, while also reflecting an 

orderly and responsible step down towards TARP’s sunset of March 2024. I respectfully request 

that Congress consider this level, which is a 14 percent reduction from the FY 2020 enacted 

level; a 17 percent reduction from the FY 2019 enacted level; a 44 percent reduction from the

FY 2018 enacted level; and a 54 percent reduction from the FY 2017 enacted level.

The President’s Budget request would substantially inhibit our oversight because it will require a 

larger reduction in staffing and mission support levels than I have determined is necessary to 

fulfill the mission. The President’s Budget request is a 49 percent reduction from the FY 2018 

enacted level, even though the same TARP programs are open as in FY 2018 with significant 

activity, spending more than $1 billion each year – spending that should be accompanied by 

SIGTARP’s oversight. 

In FY 2019 alone, TARP programs had significant operations and spent more than $1.7 billion. 

Of this amount, Treasury paid $1.12 billion in TARP dollars to 74 financial institutions in MHA, 

including, for example, $290 million to Ocwen Financial, $155 million to SPS, $132 million to 

Wells Fargo, $101 million to JP Morgan Chase, $59 million to Bank of America, $129 million to 

Nationstar, $19 million to Citigroup, and $5 million to CIT Bank. 
SIGTARP - 4

As more TARP dollars are spent in MHA and HHF, SIGTARP’s investigations and audits over 

that spending increases. Every TARP dollar spent is another dollar potentially subject to fraud, 

waste and abuse, increasing the need for investigations and audits. Treasury has already paid 

more than $20 billion in MHA. Additionally, through FY 2024, Treasury is obligated or 

committed to pay $2.8 billion to banks and non-bank mortgage servicers in MHA to modify 

these residential mortgages. For example, Treasury is obligated or committed to pay in the future 

$675 million to Ocwen Financial, $359 million to Wells Fargo, $218 million to JP Morgan 

Chase, $152 million to Bank of America, $338 million to Select Portfolio Servicing, $340 

million to Nationstar, $69 million to CitiMortgage, and $22 million to CIT Bank/One West 

Bank. In the Hardest Hit Fund, 19 state agencies have received more than $9 billion in TARP 

funds from Treasury, and have another nearly $800 million in state agency bank accounts ready 

to be spent through December 2021. 

When left unchecked, fraud, waste, and abuse in these programs can have a devastating impact 

on those the program are intended to help. HAMP continues today with nearly 800,000 people 

in all 50 states receiving mortgage modifications to make their payments affordable and 

sustainable. The billions of TARP dollars that Treasury will pay financial institutions in the 

future are not automatic, but instead require the banks and other servicers to comply with the law 

and rules of the program for those homeowners – decisions and actions that require oversight and 

law enforcement. 

There are 40 HHF programs still open to applicants, plus open programs that continue to spend 

TARP dollars related to existing homeowners, many of which are unemployed or 

underemployed, and other participants. This year, there were more TARP-funded demolitions of 

blighted houses than any other year, and 58 percent of all new first-time homebuyers receiving 

HHF down payment assistance occurred in the last year. Just this past year, more than 29,000 

new borrowers came into the program. State agencies told SIGTARP that they expect an 

additional 8,000 demolitions in the future. After those discussions, Treasury approved an 

additional 450 demolitions in Ohio. These programs have important goals for communities, 

goals that would be hurt by fraud, waste, and abuse. 

SIGTARP has demonstrated that it is a solid investment for taxpayers, as SIGTARP’s work has 

led to cumulative recoveries for the government and other victims of $11 billion – a 31 time 

cumulative return on investment (ROI) from our annual budgets. 

This ranks SIGTARP as having the third highest ROI out of 18 OIGs reviewed by the Brookings 

Institution Center for Effective Public Management in its analysis of how cutting the budget of 

positive-revenue OIGs costs the government money and contributes to the federal deficit.1

 

We appreciate Congress’s strong support for our budget each year. 

 1 Hudak, J. Wallack, G. (2015). Brookings Institution Center for Effective Public Management, Website: 

https://www.brookings.edu/wp-content/uploads/2016/06/CEPMHudakWallackOIG.pdf.
SIGTARP - 5

In FY 2019:

• $900 million was recovered as a result of SIGTARP’s law enforcement work, 

representing a 39 times annual return on investment from our $23 million budget.

• SIGTARP investigations resulted in criminal charges against 13 defendants, four arrests, 

criminal convictions of 18 defendants, courts sentencing 28 defendants to prison, federal 

enforcement activity against three corporations/organizations, and 26 referrals to prosecutors.

• SIGTARP auditors questioned more than $848,000 in costs, including more than $411,000 

that state agencies in HHF spent on travel and conference costs that violated Federal cost 

regulations, some of which also constituted waste. For example:

 The North Carolina agency spent $130,000 on annual housing counselor conferences 

including paying $2,500 to a guest speaker who lectured on “Motivation by Chocolate.” 

Also, before homeowners received a single dollar from HHF, housing counselors were 

treated to an evening reception featuring a carved beef station staffed by a uniform chef, 

cake bites and strawberry shortcake martinis. 

 After the Ohio agency decided to close the HHF program to new homeowner 

applications, it deviated from past practices to hold housing counselor conferences at 

zoos. 

 Two top Florida officials charged TARP more than a dozen conferences each, often at 

luxury hotels, beaches and other resort destinations, despite the fact that the state agency 

was one of the most underperforming state agencies in HHF, providing assistance to only 

20percent of applicants, the lowest of any state. 

 Officials from some state agencies attending an annual meeting with Treasury in 

Washington, D.C. charged TARP for luxury hotels, while other state agencies attending 

the same meeting stayed at hotels at or near the GSA rate. Two senior Ohio agency 

officials stayed at the W hotel paying $315-$423 per night, while a junior Ohio official 

on the same trip stayed at a hotel with the rate of $170 per night. 

 

• SIGTARP has open investigations into financial institutions participating in MHA and 

receiving TARP dollars. SIGTARP has referred some of these investigations to the 

Department of Justice, and SIGTARP continues to work these cases with the U.S. 

Department of Justice (DOJ). 

• SIGTARP continued to obtain convictions and sentencings of defendants who defrauded 

nearly 30,000 homeowners with false promises of entry into HAMP, including some who 

claimed affiliation with the government, and preyed on the elderly, and other vulnerable 

Americans. Already, 93 of these scammers were sentenced to prison as a result of 

SIGTARP’s investigations. 

• SIGTARP’s investigations resulted in the conviction and prison sentencing of the Detroit city 

official in charge of contracts for HHF’s blight demolition program, the conviction for 

bribery of an official from one of the largest demolition contractors in the HHF program in 

Detroit, and the indictment of a land bank official in the HHF program in Ohio on one count 

of conspiracy to commit bribery and honest services fraud, three counts of honest services 

wire fraud and one count of bribery.

• SIGTARP’s investigations resulted in DOJ resolving a false claim act action against the sole 

contractor in HHF blight demolition in Fort Wayne, Indiana for filling the demolition sites 

with construction debris rather than clean fill dirt, and falsely billing the HHF program as if it 

had used clean fill dirt. 
SIGTARP - 6

• SIGTARP’s investigations have also resulted in criminal charges and arrests this year for 

homeowners defrauding HHF. 

• SIGTARP’s audits have focused on the costly and harmful risks of asbestos and lead 

exposure, illegal dumping, and contaminated dirt. 

• SIGTARP’s recent audit warned Treasury about a lack of fraud controls that led to more 

than $437,000 in payments to California homeowners who lost eligibility but continued 

receiving TARP payments for years. 

 

SIGTARP is grateful for the support of Congress. We will continue to deliver investigative and 

audit results, and a high return on investment. In every year since FY 2016, recoveries from 

SIGTARP’s work have far exceeded our annual appropriations. Investing in SIGTARP is one of 

the most effective and efficient ways to protect the Government. The Government will receive 

far more than our budget in recovered dollars lost to fraud, in addition to cost savings. Our work 

ensures that TARP dollars are used as Congress intended, and that the government does not pay 

more for TARP than is necessary. 

1.1 – Appropriations Detail Table

Dollars in Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Investigatons 87 $19,550 75 $18,920 72 $15,050 -4.0% -20.5%

Audit 9 $3,450 10 $3,080 8 $2,450 -20.0% -20.5%

Subtotal New Appropriated 

Resources 96 $23,000 85 $22,000 80 $17,500 -5.9% -20.5%

O ther Resources

Unobligated Balances from Prior 

Years 0 $16,912 0 $14,642 0 $14,000 NA -4.4%

Subtotal O ther Resources 0 $16,912 0 $14,642 0 $14,000 NA -4.4%

Total Budgetary Resources 96 $39,912 85 $36,642 80 $31,500 -5.9% -14.0%

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

% Change

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request
SIGTARP - 7

1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2020 Enacted 85 $22,000 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $510 

Pay Annualization (2020 3.1% average pay raise) 0 $117 

Pay Raise (1.0% average pay raise) 0 $115 

FERS Contribution Increase 0 $141 

Non-Pay 0 $137 

Subtotal Changes to Base 0 $510 

FY 2021 Current Services 85 $22,510 

Program Changes:

Program Decreases (5) ($5,010)

Staff Reduction (5) ($344)

Efficiency Savings 0 ($946)

Realignment from Annual to No-Year 0 ($3,720)

FY 2021 President's Budget Request 80 $17,500 

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ...........................................................+$510,000 / +0 FTE

Pay Annualization (3.1%) +$117,000 / +0 FTE: 

Funds are requested for annualization of the January 2020 3.1% average pay raise.

Pay Raise (1.0% in 2021) +$115,000 / +0 FTE: 

Funds are requested for a 1.0% average pay raise in January 2021.

FERS Contribution Increase +$141,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$137,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.

Program Decreases ....................................................................................-$5,010,000 / -5 FTE

Staff Reduction -$344,000 / -5 FTE

Reduction in SIGTARP staff levels to 80 FTE.

Efficiency Savings -$946,000/ -0 FTE

SIGTARP will seek to reduce non-personnel costs.

Realignment from Annual to No-Year -$3,720,000/ -0 FTE

SIGTARP will fund a portion of its operations from its no-year account.

SIGTARP actively reduces costs and its footprint, while creating an appropriately sized, skilled 

and structured workforce. 
SIGTARP - 8

• In the last two years, SIGTARP cut its footprint by 47 percent in cost and square footage. In 

FY 2018, SIGTARP eliminated 50 percent of its headquarters annual rent expenses. In 

FY 2019, SIGTARP eliminated 100 percent of its San Francisco annual rent expense.

• Beginning in FY 2020, SIGTARP is reducing its New York annual rent expense by 43 

percent. 

• SIGTARP reduced fleet-related expenses by 40 percent since FY 2014. 

• In FY 2021, over $3 million of the proposed budget (23 percent) will be spent on goods and 

services from the government, more that 95 percent of which will be paid to Treasury. 

• SIGTARP has eliminated management layers and is structuring the workforce in such a way 

to create maximum flexibility as the agency’s sunset approaches. 

• SIGTARP drives efficiencies through innovative processes and the use of technology, 

including through data mining. 

• SIGTARP coordinates with other law enforcement agencies and Inspectors General, 

leveraging its unique position and expertise by forming law enforcement and other 

partnerships to create operational efficiencies and realize cost savings. 

1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

11.1 - Full-time permanent 10,573 9,315 9,128

11.3 - Other than full-time permanent 1,907 1,472 1,384

11.5 - Other personnel compensation 1,034 989 930

11.9 - Personnel Compensation (Total) 13,514 11,776 11,442

12.0 - Personnel benefits 3,915 3,385 3,383

Total Personnel and Compensation Benefits $17,429 $15,161 $14,825

21.0 - Travel and transportation of persons 261 250 250

23.1 - Rental payments to GSA 138 110 59

23.3 - Communications, utilities, and miscellaneous charges 34 29 20

25.1 - Advisory and assistance services 708 500 200

25.2 - Other services from non-Federal sources 20 20 15

25.3 - Other goods and services from Federal sources 6,692 5,729 1,956

25.6 - Medical care 50 40 30

25.7 - Operation and maintenance of equipment 38 20 15

26.0 - Supplies and materials 138 131 125

31.0 - Equipment 19 10 5

Total Non-Personnel $8,098 $6,839 $2,675

Total O bligations $25,527 $22,000 $17,500

Full-time Equivalents (FTE) 96 85 80

Amounts reflect obligations of annually appropriated resources, does not include unobligated balances from prior years 

($17M in FY 2019 and estimated $14M in FYs 2020 and 2021). 
SIGTARP - 9

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

SPECIAL INSPECTOR GENERAL FOR THE 

TROUBLED ASSET RELIEF PROGRAM

Federal funds

SALARIES AND EXPENSES

For necessary expenses of the Office of the Special 

Inspector General in carrying out the provisions of the 

Emergency Economic Stabilization Act of 2008 (Public 

Law 110–343), [$22,000,000] $17,500,000. (Department of 

the Treasury Appropriations Act, 2020.)

E – Legislative Proposals

PPIP Funds 

The Public-Private Investment Program (PPIP) Improvement and Oversight Act of 2009

(12 U.S.C. § 5231a) provided $15 million in no-year appropriations to SIGTARP for the purpose 

of providing oversight to PPIP and the Term Asset-Backed Securities Loan Facility. SIGTARP 

does not plan PPIP or TALF activity in FY 2020 and FY 2021. SIGTARP is requesting that 

these PPIP funds be made available to also support SIGTARP’s oversight of ongoing TARP 

programs. This proposed language is identical to that included in the FY 2018 enacted 

appropriation.

Proposed Language 

Section 124

Notwithstanding paragraph (2) of section 402(c) of the Helping Families Save their Homes Act of 

2009, in utilizing funds made available by paragraph (1) of section 402(c) of such Act, the Special 

Inspector General for the Troubled Asset Relief Program shall prioritize the performance of audits 

or investigations of any program that is funded in whole or in part by funds appropriated under the 

Emergency Economic Stabilization Act of 2008, to the extent that such priority is consistent with 

other aspects of the mission of the Special Inspector General.
SIGTARP - 10

Section II – Annual Performance Plan and Report

A – Strategic Alignment

The Investigation Division budget supports SIGTARP’s priority of law enforcement of crimes 

and civil violations of the law related to TARP, and the Audit Division budget activity supports 

SIGTARP as the independent watchdog over TARP dollars and programs. 

SIGTARP’s activities and goals of justice, impact, innovation, and stewardship support and 

complement Treasury’s FY 2018 – 2022 Strategic Plan goals: (1) boost U.S. economic growth

by investigating anti-competitive practices; (2) promote financial stability; (3) enhance national 

security by investigating money laundering; (4) transform government-wide financial 

stewardship; and (5) achieve operational excellence. 

All of SIGTARP’s work aligns with Treasury’s strategic goal to promote financial stability given 

that all TARP programs are designed to promote financial stability. Fraud, waste, and abuse 

erode that goal. All of SIGTARP’s planned work for FY 2021 also aligns with Treasury’s 

Strategic Plan goal (4) “Transform Government-wide Financial Stewardship” by winding down 

sunsetting programs responsibility and funding the government at the least cost over time. 

Fraud, waste, and abuse are costly for taxpayers. SIGTARP’s efficiency and high return on 

investment also aligns with Treasury’s strategic goal to achieve operational excellence

SIGTARP’s audit and investigative goals and priorities are driven by independently-identified 

TARP threats and findings of fraud, waste, and abuse. SIGTARP’s goals through 2023 are: 

• Justice - protect Americans through law enforcement’s fight against TARP-related crime; 

• Impact - assess, understand, and counter the most serious risks, threats, and challenges to 

TARP; 

• Innovation - expand the use of technology, virtual information sharing, and data analytics to 

increase the expedited identification of TARP-related crime, fraud, waste and abuse; and 

• Stewardship - ensure TARP programs and oversight proceed responsibly and transparently. 

Justice: As a law enforcement office with 85 percent of its resources focused on criminal 

investigations, SIGTARP strives to bring justice, accountability, and deterrence in the fight 

against TARP-related crimes, including major financial crimes and money laundering. This past 

year SIGTARP continued to support prosecutions of defendants SIGTARP investigated. 

SIGTARP’s cumulative law enforcement record includes 430 defendants charged with crimes, 

and law enforcement actions against 24 corporations/organizations. SIGTARP achieved justice 

when, in FY 2019, 4 defendants were arrested, 13 defendants were indicted or criminally 

charged by information, 18 defendants were convicted, and courts sentenced to prison 28

defendants. For example, in FY 2019, courts sentenced four defendants for their part in a wideranging investigation into narcotics trafficking and international money laundering that included 

money laundering at a TARP bank. SIGTARP has one of the highest conviction rates in the 

federal government, a DOJ conviction rate of 97 percent, achieving operational excellence. 

Alignment: Treasury Goals (1), (2), (3), (4), and (5).

Impact: SIGTARP analyzes risks from the most serious and imminent threats to TARP. 

SIGTARP prioritizes its resources and conducts confidential investigations to combat serious 
SIGTARP - 11

threats, the largest of which SIGTARP believes is potential wrongdoing by the more than 130 

financial institutions that continue to receive billions of TARP dollars in the MHA program, 

including some of the nation’s largest. Criminal and civil violations of the law by these financial 

institutions directly lead to foreclosures of homeowners.

SIGTARP’s investigations into corruption into the HHF blight demolition program impact 

competition in, and the integrity of, this federally funded program. In FY 2019, SIGTARP’s 

investigations resulted in the conviction and prison sentencing of the Detroit city official in 

charge of contracts for HHF’s blight demolition program. SIGTARP’s investigations also 

resulted in the conviction for bribery of an official from one of the largest demolition contractors 

in the HHF program in Detroit. SIGTARP’s investigations also resulted in the indictment of a 

land bank official in the HHF program in Ohio on one count of conspiracy to commit bribery and 

honest services fraud, three counts of honest services wire fraud and one count of bribery. 

SIGTARP achieves operational excellence by leveraging task forces and other partnerships to 

reduce the number of personnel assigned to each case. Alignment: Treasury Goals (1), (2), (4), 

and (5).

Innovation: SIGTARP achieved an unparalleled record of criminal charges against more than 

100 bankers through innovation. SIGTARP developed an intelligence-based method to find 

crime in banks proactively without waiting for a whistleblower. SIGTARP is deploying similar 

techniques to find crime proactively in the housing, foreclosure, and demolition industries. By 

expanding the use of technology, virtual information sharing using central repositories of 

information, and data analytics, SIGTARP can expedite its identification of crime, fraud, waste, 

and abuse in MHA and HHF. Alignment: Treasury Goals (2), (4) and (5).

Stewardship: SIGTARP stands as the independent watchdog for Americans, ensuring that TARP 

programs operate and spend responsibly. In FY 2019, SIGTARP auditors uncovered that state 

agencies in the Hardest Hit Fund had spent more than $411,000 on travel and conference costs 

that violated federal cost regulations. SIGTARP also uncovered more than $437,000 in HHF 

mortgage assistance to California homeowners who had lost eligibility for the program. 

SIGTARP also acts as a good steward of taxpayer dollars. SIGTARP reduces its operating

budget each year. Additionally, SIGTARP seeks to recover dollars lost to fraud, waste, and 

abuse for taxpayers and other victims. Every year, recoveries far exceed SIGTARP’s budget. 

FY 2019 recoveries were $899.2 million, a 39x annual ROI from its $23 million appropriation. 

SIGTARP has achieved a 31x lifetime ROI. Alignment: Treasury Goals (4) and (5).
SIGTARP - 12

B – Budget and Performance by Budget Activity

2.1.1 – Investigations Resources and Measures

Dollars in Thousands

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Investigations Budget and Performance

($15,050,000 from discretionary appropriations, $11,750,000 from other resources)

SIGTARP exceeded all metric targets in FY 2019. The “Percentage of Cases Accepted for 

Consideration by Civil or Criminal Authorities Resulting in a Positive Final Outcome” in 

FY 2019 was 77 percent, which exceeded the target of 70 percent. Typically, the positive final 

outcome is indictment and criminal conviction of individual defendants. Appropriate case 

selection and effective field performance continue to increase the number of cases resulting in 

convictions. SIGTARP’s rate of conviction for cases prosecuted by DOJ is 97 percent, one of the 

highest in federal law enforcement. This is a strong indicator of investigative quality. As an 

investigative agency, SIGTARP must depend on DOJ’s ability to accept its cases for prosecution 

and to move such cases through the courts. SIGTARP will continue to coordinate with the U.S. 

Attorney Offices and DOJ’s Criminal and Civil Divisions on prosecutorial priorities and on the 

appropriate movement of pipeline investigations to ensure a positive final outcome.

The “Percentage of Cases Presented to Civil or Criminal Authorities within Eight Months of the 

Case Being Opened” was 75 percent, which exceeded the target of 70 percent. The “Percentage 

of Cases that are Joint Agency/Task Force Investigations” with other law enforcement agencies 

was 76 percent, which exceeded the target of 70 percent. Both of these measures recognize that 

as SIGTARP reduces spending and staffing, it must act with efficiency, in its investigative 

timeline, and in leveraging other law enforcement partnerships for resources.

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $27,295 $32,478 $32,103 $28,855 $19,550 $18,920 $15,050

Other Resources $6,354 $376 $82 $1,311 $14,412 $12,392 $11,750

Budget Activity Total $33,649 $32,854 $32,185 $30,166 $33,962 $31,312 $26,800

115 103 114 106 87 75 72

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Cases Accepted 

for Consideration by Civil or 

Criminal Authorities Resulting 

in a Positive Final Outcome

N/A 77 81 79 77 70 60 35

Percentage of Cases Presented 

to Civil or Criminal Authorities 

within Eight Months of Being 

Opened

N/A 80 80 85 75 70 50 25

Precentage of Cases That are 

Joint Agency/Task Force 

Investigations

70 71 75 78 76 70 70 70

 Resource Level

Full-time Equivalents (FTE)

Performance Measure
SIGTARP - 13

2.1.2 – Audit Resources and Measures

Dollars in Thousands

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Audit Budget and Performance

($2,450,000 from discretionary appropriations, $2,250,000 from other resources)

SIGTARP exceeded its FY 2019 audit performance target of three for the “Number of 

Completed Audit Products Identifying Waste, Abuse, Mismanagement, Inefficiencies, or 

Referrals to Investigations Division,” with four products. SIGTARP auditors questioned more 

than $860,000 in costs. In one audit, SIGTARP auditors uncovered more than $411,000 that 

state agencies in HHF spent on travel and conference costs that violated federal cost regulations, 

some of which also constituted waste. In another evaluation, SIGTARP made recommendations 

to mitigate the risk of asbestos and lead exposure in the HHF blight program. In another letter, 

SIGTARP recommended fraud controls after SIGTARP learned that homeowners received more 

than $437,000 in Hardest Hit Fund mortgage assistance after becoming ineligible for the 

program. SIGTARP auditors also made a referral to SIGTARP’s Investigations Division.

D– Evidence-Building Activity

In FY 2019, SIGTARP engaged in the following evidence-building activities:

• Linked spending to program outputs by analyzing SIGTARP’s annual return on investment 

(31 x for FY 2019) by comparing actual dollars recovered annually ($899 million in FY

2019) compared to appropriations ($23 million in FY 2019); 

• Determined short term and long term questions about how SIGTARP’s audits encourage 

Hardest Hit Fund grant-like recipients to implement practices to support stronger 

performance, efficiency, and to prevent fraud, waste, and abuse;

• Determined short term and long term questions about the factors that positively lead to 

prosecutions of SIGTARP investigations;

• Engaged stakeholder state agencies in the Hardest Hit Fund to learn how their demographic 

and economic forecasts have changed the demand for HHF dollars, and have shifted the 

dollars from one HHF subprogram to others with higher demand;

• Engaged stakeholder Treasury to determine status of TARP programs and to understand its 

oversight and management of TARP; 

• Engaged stakeholders at DOJ, U.S. Attorney’s offices, the Securities Exchange Commission, 

and state and local prosecutors to discuss their priorities and requirements for prosecution or 

civil charges;

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $6,824 $7,618 $7,530 $5,092 $3,450 $3,080 $2,450

Other Resources $1,069 $99 0 $231 0 0 0

Budget Activity Total $7,893 $7,717 $7,530 $5,323 $3,450 $3,080 $2,450

35 34 27 25 9 10 8

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Number of Completed Audit 

Products Identifying Waist, 

Abuse, Mismanagement, 

Inefficienceis, or Referrals to 

Investigations Division (units)

N/A N/A N/A 6 4 3 2 2

 Resource Level

Full-time Equivalents (FTE)

Performance Measure
SIGTARP - 14

• Engaged the public through efforts to increase public contacts to SIGTARP’s hotline;

• Undertook data analysis related to TARP recipients blight demolition program partners and 

contractors in the Hardest Hit Fund to inform SIGTARP’s efforts in prioritizing SIGTARP 

resources;

• Undertook data analysis of homeowner data in the HAMP program to inform SIGTARP’s 

investigative efforts; and

• Undertook program evaluation of the Hardest Hit Fund blight demolition program in South 

Carolina in FY 2019, and began program evaluation of the program in Detroit, Michigan in 

FY 2019, which will continue in FY 2020.

Section III – Additional Information

A – Summary of Capital Investments

SIGTARP has no capital investments. Capital investments that support SIGTARP are included in 

the Departmental Offices’ plan. A summary of capital investments, including major information 

technology and non-technology investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Treasury Inspector General for 

Tax Administration 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
TIGTA - 2 

Table of Contents

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

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

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

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

1.2 – Budget Adjustments ........................................................................................................... 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

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

E – Legislative Proposals ............................................................................................................ 6

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

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

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Audit Resources and Measures ....................................................................................... 8

Audit Budget and Performance ................................................................................................... 9

2.1.2 – Investigations Resources and Measures ........................................................................ 10

Investigations Budget and Performance ................................................................................... 10

Inspections and Evaluations ...................................................................................................... 12

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
TIGTA - 3 

Section I – Budget Request 

A – Mission Statement 

Provide quality professional audit, investigative, and inspection and evaluation services that 

promote integrity, economy, and efficiency in the administration of the Nation’s tax system. 

B – Summary of the Request 

The Treasury Inspector General for Tax Administration’s (TIGTA) Fiscal Year (FY) 2021 

budget request of $171,350,000 represents an increase of 1 percent above its FY 2020 enacted 

level. Funding TIGTA’s FY 2021 budget request will enable TIGTA to conduct critical audit, 

investigative, and inspection and evaluation services to protect the integrity of the Nation’s 

system of tax administration. In accordance with the requirements of Section 6(f)(1) of the 

Inspector General Act of 1978 (as amended),1

 TIGTA submits the following information related 

to its FY 2021 budget request: 

• The aggregate budget request for TIGTA operations is $171,350,000; 

• The portion of the request needed for TIGTA training is $1,800,000; and 

• The portion of the request needed to support the Council of the Inspectors General on 

Integrity and Efficiency is $565,455. 

1.1 – Appropriations Detail 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Treasury Inspector General for Tax 

Administration Operating Plan Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Audit 308 $66,260 333 $66,260 333 $66,667 0.0% 0.6% 

Investigations 428 $103,990 467 $103,990 467 $104,683 0.0% 0.7% 

Subtotal New Appropriated Resources 736 $170,250 800 $170,250 800 $171,350 0.0% 0.6% 

Other Resources 

Reimbursable 2 $798 2 $500 2 $500 0.0% 0.0% 

Recoveries from Prior Years 0 $2,141 0 $0 0 $0 NA NA 

Unobligated Balances from Prior Years 0 $5,000 0 $5,000 0 $5,000 NA 0.0% 

Subtotal Other Resources 2 $7,939 2 $5,500 2 $5,500 0.0% 0.0% 

Total Budgetary Resources 738 178,189 802 $175,750 802 $176,850 0.0% 0.6% 

Note: FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

 

 

1

 5 U.S.C. app. 3 § 6(f)(1). 
TIGTA - 4 

1.2 – Budget Adjustments 

Dollars in Thousands 

FTE Amount 

FY 2020 Enacted 800 $170,250 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $4,354 

Pay Annualization (2020 3.1% average pay raise) 0 $1,048 

Pay Raise (1.0% average pay raise) 0 $1,022 

FERS Contribution Increase 0 $1,582 

Non-Pay 0 $702 

Subtotal Changes to Base 0 $4,354 

FY 2021 Current Services 800 $174,604 

Program Changes: 

Program Decreases 0 ($3,254) 

Operating Cost Reduction 0 ($3,254) 

Subtotal FY 2021 Program Changes 0 ($3,254) 

FY 2021 President's Budget Request 800 $171,350 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs).........................................................+$4,354,000 / +0 FTE 

Pay Annualization (3.1%) +$1,048,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in FY 2021) +$1,022,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$1,582,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$702,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Program Decreases....................................................................................-$3,254,000 / -0 FTE 

Operating Cost Reduction -$3,254,000 / -0 FTE 

TIGTA will reduce program levels in order to meet its FY 2021 budget request. Reaching this 

target without impacting the quality of TIGTA’s programs will require balancing mission 

requirements and workload. 
TIGTA - 5 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

Treasury Inspector General for Tax Administration FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 86,030 87,948 89,964 

11.3 - Other than full-time permanent 428 404 416 

11.5 - Other personnel compensation 8,566 9,121 9,466 

11.9 - Personnel Compensation (Total) 95,024 97,473 99,846 

12.0 - Personnel benefits 37,268 38,189 39,468 

Total Personnel and Compensation Benefits $132,292 $135,662 $139,314 

21.0 - Travel and transportation of persons 4,310 4,100 3,886 

22.0 - Transportation of things 21 47 45 

23.1 - Rental payments to GSA 9,567 9,400 8,682 

23.2 - Rental payments to others 163 170 154 

23.3 - Communications, utilities, and miscellaneous charges 783 825 750 

24.0 - Printing and reproduction 2 8 8 

25.1 - Advisory and assistance services 2,958 2,752 2,668 

25.2 - Other services from non-Federal sources 1,029 849 750 

25.3 - Other goods and services from Federal sources 10,764 10,514 9,581 

25.4 - Operation and maintenance of facilities 2 24 24 

25.7 - Operation and maintenance of equipment 1,843 1,577 1,457 

26.0 - Supplies and materials 690 700 834 

31.0 - Equipment 5,693 3,962 3,555 

42.0 - Insurance claims and indemnities 0 4 4 

91.0 - Unvouchered 222 156 139 

Total Non-Personnel $38,047 $35,088 $32,536 

Total Obligations $170,339 $170,750 $171,850 

 

Full-time Equivalents (FTE) 736 800 800 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
TIGTA - 6 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Treasury Inspector General for Tax 

Administration in carrying out the Inspector General Act of 1978, 

as amended, including purchase and hire of passenger motor 

vehicles (31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 

3109, at such rates as may be determined by the Inspector General 

for Tax Administration; [$170,250,000]$171,350,000, of which 

$5,000,000 shall remain available until September 30, 

[2021]2022; of which not to exceed $6,000,000 shall be available 

for official travel expenses; of which not to exceed $500,000 shall 

be available for unforeseen emergencies of a confidential nature, 

to be allocated and expended under the direction of the Inspector 

General for Tax Administration; and of which not to exceed 

$1,500 shall be available for official reception and representation 

expenses. (Department of the Treasury Appropriations Act, 

2020.)

E – Legislative Proposals 

TIGTA has no legislative proposals. 
TIGTA - 7 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TIGTA, an independent office within the Department of the Treasury (Treasury), was established 

by Congress under the Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 

(RRA 98).2

 It provides oversight of IRS activities by conducting independent audits, 

investigations, and inspections and evaluations necessary to prevent and detect waste, fraud, and 

abuse in IRS programs and operations. TIGTA conducts audits of IRS operations and makes 

recommendations designed to improve the administration of the Federal tax system. TIGTA also 

conducts administrative and criminal investigations into allegations of waste, fraud, and abuse 

while helping to ensure that the IRS protects and secures taxpayer data. TIGTA also has the 

unique responsibility of protecting the IRS and its employees. 

TIGTA’s budgetary activities align its vision and goals with the Treasury FY 2018 – FY 2022 

Strategic Plan, including objectives under the following goals: 

• Goal 1: Boost U.S. Economic Growth; 

• Goal 4: Transform Government-wide Financial Stewardship; and 

• Goal 5: Achieve Operational Excellence. 

TIGTA’s Strategic Goals: 

• Promote the economy, efficiency, and effectiveness of tax administration; 

• Protect the integrity of tax administration from internal and external threats; and 

• Sustain an inclusive work environment where employees are valued. 

Goal 1: Boost U.S. Economic Growth 

Objective 1.1 – Tax Law Implementation: Administer tax law to better enable all taxpayers to 

meet their obligations, while protecting the integrity of the tax system. 

TIGTA supports this strategic objective through its oversight of Treasury’s efforts to implement 

tax law changes enacted in the Tax Cuts and Jobs Act of 2017 (TCJA), which will continue to 

present challenges for the IRS. For example, the Taxpayer First Act, enacted on July 1, 2019, 

requires the IRS to propose an organizational redesign with the goals of improving efficiency, 

modernizing systems and business processes, and finding ways to better serve taxpayers. The 

TCJA also made substantial changes to the tax code that affect individuals, businesses, and taxexempt organizations. 

In addition, the IRS must administer other tax law provisions such as those in the Protecting 

Americans from Tax Hikes Act of 2015 (PATH). The PATH contains program integrity 

provisions intended to reduce fraudulent and improper Earned Income Tax Credit, Child Tax 

Credit, Additional Child Tax Credit, and American Opportunity Tax Credit payments. TIGTA 

continues to assess the IRS’s efforts to implement these provisions and future tax legislation. 

 

 

2

 Pub. L. No. 105-206, 112 Stat. 685. 
TIGTA - 8 

Goal 4: Transform Government-wide Financial Stewardship

Objective 4.1 – Financial Data Access/Use: Increase the access and use of Federal financial data 

to strengthen Government-wide decision making, transparency, and accountability. 

TIGTA supports Treasury’s Digital Accountability and Transparency Act efforts by 

implementing the related policies and requirements. Many of TIGTA’s audits include 

recommendations that, when implemented, would result in cost savings, increased or protected 

revenue, or more efficient use of resources. Additionally, TIGTA develops advanced analytics 

and innovative approaches to help prevent and detect the flow of dollars fraudulently obtained by 

criminals or IRS employees. TIGTA provides the IRS with the investigative coverage and 

information necessary to mitigate domestic and foreign threats against its employees, facilities, 

and data systems. 

 

Goal 5: Achieve Operational Excellence 

Objectives 5.1 – 5.3 Workforce Management, Treasury Infrastructure, and Customer Value. 

TIGTA endeavors to hire and develop a workforce with the skills and competencies necessary to 

accomplish its mission to provide quality professional audit, investigative, and inspection and 

evaluation services related to the administration of the Nation’s tax system. TIGTA mitigates 

security risks affecting taxpayer data, tax systems, and IRS employees. It effectively improves 

customer value by protecting the IRS and its employees and responding to attempts to 

impersonate the IRS for fraudulent purposes. TIGTA prioritizes acquisition and application of 

human and financial resources to enhance its ability to detect and protect against cyberattacks. 

Additionally, TIGTA collaborates with the IRS to share intelligence and expertise to thwart 

cyber threats. 

B – Budget and Performance by Budget Activity 

2.1.1 – Audit Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Enacted Enacted Enacted Enacted Enacted Enacted Request 

Appropriated Resources $61,572 $65,100 $66,020 $66,020 $66,260 $66,260 $66,667 

Reimbursable Resources $382 $60 0 0 0 0 0 

Unobligated Balances Brought Forward $1,808 $1,780 $1,524 $1,674 $1,945 $1,945 $1,945 

Budget Activity Total $63,762 $66,940 $67,544 $67,694 $68,205 $68,205 $68,612 

Full-time Equivalents (FTE) 316 329 333 318 304 333 333 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees.

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Audit 

Products Delivered When 

Promised to Stakeholders 

80 75 79 81 84 68 70 70 

Percentage of 

Recommendations Made 

That Have Been 

Implemented 

92 97 92 85 83 85 85 85 
TIGTA - 9 

Audit Budget and Performance 

($66,667,000 from direct appropriations): 

TIGTA’s Office of Audit (OA) strives to promote the economy, efficiency, and effectiveness of 

tax administration. TIGTA provides recommendations to improve IRS systems and operations 

and to ensure the fair and equitable treatment of taxpayers. TIGTA’s comprehensive and 

independent performance and financial audits of the IRS’s programs and operations primarily 

address statutorily mandated reviews and high-risk challenges the IRS faces. 

The IRS’s implementation of audit recommendations results in: 

• Cost savings; 

• Increased or protected revenue; 

• Protection of taxpayers’ rights and entitlements; and 

• More efficient use of resources. 

In FY 2019, OA issued 97 final audit reports and other products, that: 

• Addressed a variety of high-risk issues, such as identity theft detection and prevention, 

security of taxpayer data, tax compliance, tax law changes, fraudulent claims and improper 

payments, tax systems and online services. 

• Reported potential financial benefits totaling approximately $28.1 billion, including 

o Increased and/or protected revenue in the amount of $27.7 billion; and 

o Cost savings of $362.5 million. 

• Affected approximately 1.7 million taxpayer accounts; and 

• Returned an estimated $434 for every dollar invested in TIGTA’s audit program. 

Description of Performance 

TIGTA uses two performance measures to gauge the success of its audit program: 

• Percentage of Audit Products Delivered to Stakeholders When Promised - TIGTA’s products 

will have a more significant impact if they are delivered when needed to support 

congressional and IRS decision making. 

To determine whether products are timely, TIGTA tracks the percentage of products that are 

delivered on or before the date promised (contract date). At the end of FY 2019, the actual 

Percentage of Audit Products Delivered When Promised to Stakeholders was 84 percent, 

which exceeded the full-year target of 68 percent. TIGTA exceeded this target as a result of 

ongoing supervisory monitoring of the execution of audits to ensure timely delivery of audit 

products to stakeholders. 

• Percentage of Recommendations Made That Have Been Implemented - This measure 

assesses TIGTA’s effect on improving the IRS’s accountability, operations, and services. 

To determine when a recommendation is implemented, TIGTA uses the Department of the 

Treasury’s Joint Audit Management Enterprise System to track the percentage of four-yearold recommendations that have been implemented, rather than the results of the activities 

during the fiscal year in which the recommendations are made. At the end of FY 2019, the 

actual Percentage of Recommendations Made That Have Been Implemented was 83 percent, 

which did not meet the full-year target of 85 percent. TIGTA did not meet this target partly 
TIGTA - 10 

due to IRS funding constraints, which delayed recommendation implementations. TIGTA is 

currently working with the IRS to prioritize these unimplemented recommendations.

For FY 2021, the target for Percentage of Audit Products Delivered When Promised to 

Stakeholders will remain at 70 percent. The target for Percentage of Recommendations Made 

That Have Been Implemented will also remain at 85 percent. TIGTA believes that these targets 

are best attained through effective monitoring of ongoing audit work and essential 

communication with the IRS regarding findings and the most appropriate recommendations for 

corrective action. Consequently, TIGTA’s OA will continue to accentuate the importance of 

these processes with IRS leadership. 

2.1.2 – Investigations Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Enacted Enacted Enacted Enacted Enacted Enacted Request 

Appropriated Resources $96,638 $102,175 $103,614 $103,614 $103,990 $103,990 $104,683 

Reimbursable Resources $429 $475 $357 $414 $798 $500 $500 

Unobligated Balances Brought Forward $3,192 $3,220 $2,392 $2,626 $3,055 $3,055 $3,055 

Budget Activity Total $100,259 $105,870 $106,363 $106,654 $107,843 $107,545 $108,238 

Full-time Equivalents (FTE) 442 460 469 448 429 469 469 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Closed 

Investigations Resulting in a 

Criminal, Administrative, or Law 

Enforcement Action 

93 90 90 89 91 79 81 85 

Investigations Budget and Performance 

($104,683,000 from direct appropriations, $500,000 from reimbursable sources): 

TIGTA is statutorily mandated to protect the integrity of Federal tax administration. TIGTA 

accomplishes this mission through the investigative work conducted by the Office of 

Investigations (OI). Through its investigative programs, OI protects the integrity of the IRS and 

its ability to collect revenue owed to the Federal Government by investigating violations of 

criminal and civil law that adversely impact Federal tax administration, as well as administrative 

misconduct by IRS employees, both of which undermine the integrity of the Nation’s voluntary 

tax system. 

TIGTA’s OI accomplishes its mission through the hard work of its employees, whose efforts are 

guided by a performance model that focuses on three primary areas of investigative 

responsibility: 

• Employee integrity; 

• Employee and infrastructure security; and 

• External attempts to corrupt tax administration. 

The performance model uses a ratio of those investigations that have the greatest impact on IRS 

operations or the protection of Federal tax administration to the total number of investigations 

conducted. These performance measures guide OI’s activities and help to demonstrate the value 

of TIGTA’s investigative accomplishments to its external stakeholders. 
TIGTA - 11 

Using investigative activities from FY 2018 and FY 2019 as a baseline, OI projects to receive 

approximately 9,500 complaints, open 2,500 investigations, close 2,400 investigations, and 

obtain approximately 135 criminal prosecutions for FY 2021. FY 2021 activity may actually be 

higher due to the impact of the month-long Government shutdown on FY 2019 operations. 

TIGTA’s FY 2019 statistics were slightly lower than the FY 2018 numbers, thus bringing the 

averages slightly lower. 

With respect to the primary areas of investigation, OI expects employee integrity investigations 

to remain constant at the 1,100 referrals estimated for FY 2021. Examples of TIGTA 

investigations into employee misconduct during FY 2019 include a former IRS special agent 

who was sentenced to 51 months’ imprisonment for corrupt interference with the IRS, filing 

false tax returns, theft of Government funds, and destruction or falsification of records. In 

another case, a former IRS employee was sentenced to 52 months’ imprisonment, followed by 36 

months’ supervised release, for stealing a taxpayer’s identity.3

 

Second, TIGTA has a statutory responsibility to identify, investigate, and respond to threats 

against IRS personnel and physical infrastructure. During FY 2019, TIGTA’s response to 

incidents of employee and infrastructure security increased by 86 with the backdrop of the 

Federal Government shutdown. With the media focused on the IRS and its policies and tax law 

revisions, TIGTA expects these types of investigations to remain at least constant; however, they 

are more likely to increase through FY 2021. Based on FY 2018 and FY 2019 activity, TIGTA 

estimates the need to respond to approximately 1,500 threat incidents in FY 2021. From FY 

2011 through FY 2019, TIGTA has processed more than 18,768 threat-related complaints and 

investigated more than 9,290 threats against IRS employees. One example of these types of 

investigations in FY 2019 involved a man who was convicted for forcibly assaulting an unarmed 

IRS revenue officer by pointing a shotgun at him and threatening to shoot him. 

Last, TIGTA investigates criminal activity originating outside the IRS, such as impersonation of 

an IRS employee, attempted bribery of IRS employees, international cybercrime and identity 

theft, and procurement fraud. Since 2015, abuses of the IRS Electronic Filing Personal 

Identification Number and Data Retrieval Tool for the Federal Student Loan process have 

increased the number of victimized taxpayers to over 800,000. The Taxpayer First Act of 2019, 

signed into law on July 1, 2019, focuses primarily on mandating the IRS to expand digital 

services such as these in the future. This will unavoidably raise the IRS risk portfolio, and 

generate additional work for TIGTA’s OI, over and above the current workload as cyber 

criminals seek to exploit these new services. 

Investigations into telephonic IRS impersonations is another high visibility area. Between 

October 2013 and September 2019, more than 2.5 million Americans have reportedly received 

unsolicited telephone calls from individuals who claimed to be IRS agents. The caller, using a 

fake name, provides a “badge number” and claims the victim owes taxes and is criminally liable 

for the amount owed. The victim is threatened that if he or she fails to pay the tax immediately, 

the victim will be arrested, a suit will be filed, or some other form of adverse action will be 

taken. More than 15,778 victims have reported that they had collectively paid upwards of $79.7 

 

3 The facts in the summarized cases on this page come from court documents of the respective jurisdictions. 
TIGTA - 12 

million to the scammers. By the end of FY 2019, TIGTA investigations resulted in 154 

individuals charged in Federal court. As a result, reports of this activity to TIGTA have reduced 

from a high of 180,000 reports in September 2016, to just over 1,600 in September 2019. 

Although this demonstrates that significant results can be obtained by forward-leaning 

investigations, it also illustrates that this activity will not likely cease as long as the scammers 

can identify potential victims. 

In FY 2019, OI’s total protection of dollars and financial accomplishments as a result of 

investigative activities was $24.2 million. Additionally, TIGTA’s investigative efforts resulted 

in more than $10.8 million in court-ordered fines, penalties, and restitution. 

Description of Performance 

TIGTA’s OI has adopted performance measures that identify the percentage of results derived 

from investigative activities that most accurately align with the strategic goals of the 

organization and provide the greatest impact on the protection of the integrity of Federal tax 

administration. At the end of FY 2019, the Percentage of Closed Investigations Resulting in a 

Criminal, Administrative, or Law Enforcement Action was 91 percent, which exceeded the fullyear target of 79 percent. The Office of Investigations exceeded the FY 2019 performance 

measure as a result of the hard work of experienced executives, managers, and special agents. 

With the FY 2021 budget request, TIGTA will continue to maintain its special agents’ skills and 

abilities in order to be able to respond to its mission requirements. 

For FY 2021, OI’s performance target will increase to 85 percent for Percentage of Closed 

Investigations Resulting in a Criminal, Administrative, or Law Enforcement Action. OI will 

continue to provide the IRS with the investigative coverage and information necessary to 

improve the integrity of IRS operations and mitigate threats against its employees, facilities, and 

data infrastructure. In addition, OI will maintain highly trained personnel available to address 

the significant vulnerabilities of taxpayer and IRS data and effectively combat compromises of 

IRS computer systems in the expanding digital environment of Federal tax administration, all of 

which contribute to maintaining the public’s confidence in the safe, fair, and effective 

administration of the Federal tax system. Through its investigative programs, OI will continue to 

protect the IRS’s ability to process approximately 253 million tax returns, collect more than 

$3.5 trillion in tax revenue, and issue more than $464 billion in refunds for the Federal 

Government.4

 

Funding for TIGTA allows its oversight efforts to 

continue, and for each dollar invested over the five-year 

period covering FY 2015 – FY 2019, TIGTA has 

produced an average annual return of $107 (Figure 1). 

 

Inspections and Evaluations 

TIGTA’s Office of Inspections and Evaluations (I&E) 

identifies opportunities for improvement in IRS and 

TIGTA programs by performing inspections and 

 

4

 IRS, Management’s Discussion & Analysis, Fiscal Year 2018. 

Figure 1: TIGTA’s Return on Investment
TIGTA - 13 

evaluations that report timely, useful, and reliable information to decision makers and 

stakeholders. This function has two primary product lines: inspections and evaluations. 

Inspections are intended to: 

• Provide factual and analytical information; 

• Monitor compliance; 

• Measure performance; 

• Assess the effectiveness and efficiency of programs and operations; 

• Share best practices; and 

• Inquire into allegation of waste, fraud, abuse, and mismanagement. 

Evaluations are intended to: 

• Provide in-depth reviews of specific management issues, policies, or programs; 

• Address Government-wide or multi-agency issues; and 

• Develop recommendations to streamline operations, enhance data quality, and minimize 

inefficient and ineffective procedures. 

In FY 2019, I&E produced eight external reports, which included reviews of: 

• Physical Security Controls (four different locations); 

• Follow-up Reports (on Offer in Compromise and I&E Recommendations); 

• IRS Virtual Delivery Strategy; and 

• 1099-Misc Accuracy of Information Reporting. 

C – Changes in Performance Measures 

TIGTA has no changes in performance measures. 

D – Evidence-Building Activity

The Foundations for Evidence-Based Policymaking Act of 20185

 emphasizes collaboration to 

advance data and evidence-building function in the Federal Government by statutorily mandating 

Federal evidence-building activities, open government data, confidential information protection, 

and statistical efficiency.

TIGTA supports Treasury’s efforts to use data and evidence for decisionmaking about program 

operations, policy, and regulations. TIGTA supports these efforts through data-driven 

decisionmaking when selecting which audits and investigations to pursue that have the most 

significant impact on tax revenue, taxpayer behavior, the integrity of the IRS, and the efficiency 

of agency operations. 

OA prepares its Audit Plan addressing the highest priority risk areas for tax administration. The 

plan addresses: 

• Taxpayer impact; 

• Stakeholders’ concerns; 

• Size of the program; and 

• Program changes. 

 

5 Pub. L. No. 115-435, 132 Stat. 5529.
TIGTA - 14 

OA is scheduled to conduct several key audits in FY 2020: Compliance Efforts for the Tax Cuts 

and Jobs Act Section 965 Repatriation Tax; Security Over Internet Accessible Computer 

Resources; and Using John Doe Summons Data to Ensure Cryptocurrency Tax Compliance. 

OI allocates its resources based on a performance model that assesses which investigations have 

the greatest impact on IRS operations and tax administration, and considers the following in its 

selection of investigations: 

• Value of the IRS assets and resources protected; 

• Volume of taxpayer information (personally identifiable information) affected; 

• Value of the cyber infrastructure and the sensitivity of affected data; and 

• Monetary losses incurred due to embezzlement, bribery, impersonation, and stolen funds. 

Section III – Additional Information 

A – Summary of Capital Investments 

Technology Investments – TIGTA has no major information technology investments. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx 

Law Enforcement Vehicles – TIGTA leases its vehicles through the General Services 

Administration. However, TIGTA maintains ownership of six surveillance and communications 

vehicles that will remain part of TIGTA’s capital asset strategy to support TIGTA’s investigative 

and law enforcement activities. TIGTA communications vehicles also are used in support of its 

Continuity of Operations (COOP) Plan. The COOP provides a mechanism for the organization 

to recover fully operational capability following a critical incident, including the capability to 

communicate during a local or national emergency. 


Department of the Treasury 

Community Development 

Financial Institutions Fund 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
CDFI - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 4

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 7

Section II – Annual Performance Plan and Report ................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Administration Resources and Measures ........................................................................ 9

2A - Administration .................................................................................................................... 9

2.1.2 – Community Development Financial Institutions Program Resources and Measures ... 10

2B – Community Development Financial Institutions Program............................................... 10

2.1.3 – New Markets Tax Credit Resources and Measures ...................................................... 11

2C – New Markets Tax Credit Program ................................................................................... 11

2.1.4 – Bank Enterprise Award Program Resources and Measures ......................................... 12

2D – Bank Enterprise Award Program ..................................................................................... 12

2.1.5 – Native American CDFI Assistance Program Resources and Measures ........................ 13

2E – Native American CDFI Assistance Program .................................................................... 13

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures ............................. 14

2F – Healthy Food Financing Initiative .................................................................................... 14

2.1.7 – Small Dollar Loan Program Resources and Measures ................................................. 14

2G - Small Dollar Loan Program .............................................................................................. 14

2.1.8 – Capital Magnet Fund Program Resource Detail ........................................................... 15

2H – Capital Magnet Fund Program ......................................................................................... 15

2.1.9 – CDFI Bond Guarantee Program Resource Detail ......................................................... 16

2.1.10 – Financing Accounts Non-Budgetary Summary .......................................................... 16

2I. – CDFI Bond Guarantee Program Budget and Performance .............................................. 16

C – Changes in Performance Measures .................................................................................... 17

D – Evidence - Building Activity ............................................................................................. 17

Section III – Additional Information ........................................................................................ 17

A – Summary of Capital Investments ....................................................................................... 17
CDFI - 3 

Section I – Budget Request 

A – Mission Statement 

To expand economic opportunity for underserved people and communities by supporting the 

growth and capacity of a national network of community development lenders, investors and 

financial service providers. 

B – Summary of the Request 

The Community Development Financial Intuitions Fund (CDFI Fund) requests the following for 

the CDFI Fund for FY 2021: 

 $14 million in administrative funding to support: 

- Management of the CDFI Bond Guarantee Program (BG Program) and the New 

Markets Tax Credit Program (NMTC Program); and 

- Ongoing certification and compliance monitoring for all programs, including the Bank 

Enterprise Award Program (BEA Program), CDFI Program, Native American CDFI 

Assistance Program (NACA Program) and Healthy Food Financing Initiative (HFFI). 

 The Budget eliminates funding for the CDFI Fund’s five discretionary grant and direct loan 

programs (i.e. the CDFI Program, the BEA Program, the NACA Program, HFFI and the SDL 

Program) and includes a proposal to eliminate new funding for Capital Magnet Fund (CMF). 

The CDFI industry has matured, and these institutions should have access to private capital 

needed to build capacity, extend credit, and provide financial services to the communities 

they serve. 

 The Budget proposes to extend the CDFI BG Program through December 31, 2021, which 

offers CDFIs low-cost, long-term financing at no cost to taxpayers. 

- The BG Program provides CDFIs access to capital by providing guarantees of bonds 

issued by Qualified Issuers. CDFIs invest the bond proceeds into our nation’s most 

distressed communities. CDFIs benefit by accessing long-term credit at below-market 

interest rates. The BG Program incentivizes and empowers CDFIs to execute largescale projects, including the development of charter schools, commercial real estate, 

rental housing, senior living, daycare or healthcare centers, small businesses, and rural 

infrastructure, among others. The program requires no credit subsidy. 

- The BG Program was originally authorized in the Small Business Jobs Act of 2010 

(P.L. 111–240) for a period of four years to provide a source of long-term capital in 

low-income and underserved communities. The Administration is implementing 

significant administrative reforms to the Bond Guarantee Program. To increase 

taxpayer protections, the program will change its collateral and cash requirements. The 

CDFI Fund will also pursue additional risk mitigation strategies and streamlining of 

administrative processes such as new liquidity premiums, escrow procedures and a 

designated bonding authority. 

- The Budget proposes an annual commitment authority of $300 million and legislative 

changes to eliminate the relending account, as it is currently not utilized and redundant. 

 
CDFI - 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Appropriated Resources Operating Plan Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Community Development Financial 

 Institutions Program 0 $160,000 0 $165,500 0 $0 NA -100.0% 

Bank Enterprise Award Program 0 $25,000 0 $25,000 0 $0 NA -100.0% 

Native American CDFI Assistance 

 Program 0 $16,000 0 $16,000 0 $0 NA -100.0% 

Administration 67 $27,000 76 $28,500 39 $14,000 -48.7% -50.9% 

Healthy Food Financing Initiative 0 $22,000 0 $22,000 0 $0 NA -100.0% 

Small Dollar Loan Program 0 $0 0 $5,000 0 $0 NA -100.0% 

Subtotal New Appropriated 

Resources 67 $250,000 76 $262,000 39 $14,000 -48.7% -94.7% 

Other Resources 

User Fees 0 $880 0 $1,000 0 $1,200 NA 20.0% 

Recoveries from Prior Years 0 $364 0 $500 0 $500 NA 0.0% 

Unobligated Balances from Prior 

Years 0 $32,542 0 $194,145 0 $8,000 NA -95.9% 

Subtotal Other Resources 0 $33,786 0 $195,645 0 $9,700 NA -95.0% 

Total Budgetary Resources 67 $283,786 76 $457,645 39 $23,700 -48.7% -94.8% 

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 8,706 10,068 4,584 

11.9 - Personnel Compensation (Total) 8,706 10,068 4,584 

12.0 - Personnel benefits 2,778 2,672 2,050 

Total Personnel and Compensation Benefits $11,484 $12,740 $6,634 

21.0 - Travel and transportation of persons 57 124 14 

24.0 - Printing and reproduction 50 15 1 

25.1 - Advisory and assistance services 9,900 2,331 0 

25.2 - Other services from non-Federal sources 18 132 15 

25.3 - Other goods and services from Federal sources 6,991 8,524 5,352 

25.7 - Operation and maintenance of equipment 972 1,000 2,960 

26.0 - Supplies and materials 34 30 5 

31.0 - Equipment 9 7,000 0 

41.0 - Grants, subsidies, and contributions 66,247 428,000 0 

Total Non-Personnel $84,278 $447,156 $8.347 

Total Obligations $95,762 $459,896 $14,981 

 

Full-time Equivalents (FTE) 67 76 39 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

 
CDFI - 5 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

Community Development Financial Institutions Fund 

Federal Funds 

SALARIES AND EXPENSES 

To carry out the Riegle Community Development and 

Regulatory Improvement Act of 1994 (subtitle A of title I of 

Public Law 103-325), including services authorized by section 

3109 of title 5, United States Code, but at rates for individuals 

not to exceed the per diem rate equivalent to the rate for EX-III, 

[$262,000,000. Of the amount appropriated under this heading-] 

[(1) not less than $165,500,000, notwithstanding section 108(e) 

of Public Law 103-325 (12 U.S.C. 4707(e)) with regard to Small 

and/or Emerging Community Development Financial 

Institutions Assistance awards, is available until September 30, 

2021, for financial assistance and technical assistance under 

subparagraphs (A) and (B) of section 108(a)(1), respectively, of 

Public Law 103-325 (12 U.S.C. 4707(a)(1)(A) and (B)), of 

which up to $1,600,000 may be available for training and 

outreach under section 109 of Public Law 103-325 (12 U.S.C. 

4708), of which up to $2,397,500 may be used for the cost of 

direct loans, of which up to $4,000,000, notwithstanding 

subsection (d) of section 108 of Public Law 103-325 (12 U.S.C. 

4707 (d)), may be available to provide financial assistance, 

technical assistance, training, and outreach to community 

development financial institutions to expand investments that 

benefit individuals with disabilities, and of which not less than 

$2,000,000 shall be for the Economic Mobility Corps to be 

operated in conjunction with the Corporation for National and 

Community Service, pursuant to 42 U.S.C. 12571: Provided, 

That the cost of direct and guaranteed loans, including the cost 

of modifying such loans, shall be as defined in section 502 of 

the Congressional Budget Act of 1974: Provided further, That 

these funds are available to subsidize gross obligations for the 

principal amount of direct loans not to exceed $25,000,000: 

Provided further, That of the funds provided under this 

paragraph, excluding those made to community development 

financial institutions to expand investments that benefit 

individuals with disabilities and those made to community 

development financial institutions that serve populations living 

in persistent poverty counties, the CDFI Fund shall prioritize 

Financial Assistance awards to organizations that invest and 

The Budget is proposing 

the elimination of CDFI 

appropriated programs, 

while maintaining $14M 

for administration and 

oversight of existing 

grants. 
CDFI - 6 

lend in high-poverty areas: Provided further, That for purposes 

of this section, the term "high-poverty area" means any census 

tract with a poverty rate of at least 20 percent as measured by 

the 2011-2015 5-year data series available from the American 

Community Survey of the Bureau of the Census for all States 

and Puerto Rico or with a poverty rate of at least 20 percent as 

measured by the 2010 Island Areas Decennial Census data for 

any other territory or possession of the United States;] 

[(2) not less than $16,000,000, notwithstanding section 108(e) of 

Public Law 103-325 (12 U.S.C. 4707(e)), is available until 

September 30, 2021, for financial assistance, technical 

assistance, training, and outreach programs designed to benefit 

Native American, Native Hawaiian, and Alaska Native 

communities and provided primarily through qualified 

community development lender organizations with experience 

and expertise in community development banking and lending in 

Indian country, Native American organizations, tribes and tribal 

organizations, and other suitable providers;] 

[(3) not less than $25,000,000 is available until September 30, 

2021, for the Bank Enterprise Award program;] 

[(4) not less than $22,000,000, notwithstanding subsections (d) 

and (e) of section 108 of Public Law 103-325 (12 U.S.C. 

4707(d) and (e)), is available until September 30, 2021, for a 

Healthy Food Financing Initiative to provide financial 

assistance, technical assistance, training, and outreach to 

community development financial institutions for the purpose of 

offering affordable financing and technical assistance to expand 

the availability of healthy food options in distressed 

communities;] 

[(5) not less than $5,000,000 is available until September 30, 

2021, to provide grants for loan loss reserve funds and to 

provide technical assistance for small dollar loan programs 

under section 122 of Public Law 103-325 (12 U.S.C. 4719): 

Provided, That sections 108(d) and 122(b)(2) of such Public 

Law shall not apply to the provision of such grants and technical 

assistance;] 

[(6) up to $28,500,000 is available until September 30, 2020,] 

$14,000,000, for administrative expenses, including 

administration of CDFI Fund programs and the New Markets 

Tax Credit Program:[, of which not less than $1,000,000 is for 

development of tools to better assess and inform CDFI 
CDFI - 7 

investment performance, and up to $300,000 is for 

administrative expenses to carry out the direct loan program; 

and] 

[(7) during fiscal year 2020] Provided, that during fiscal year 

2021, none of the funds available under this heading are 

available for the cost, as defined in section 502 of the 

Congressional Budget Act of 1974, of commitments to 

guarantee bonds and notes under section 114A of the Riegle 

Community Development and Regulatory Improvement Act of 

1994 (12 U.S.C. 4713a): Provided further, That commitments to 

guarantee bonds and notes under such section 114A shall not 

exceed [$500,000,000]$300,000,000: Provided further, That 

such section 114A shall remain in effect until December 31, 

[2020]2021[: Provided further, That of the funds awarded under 

this heading, not less than 10 percent shall be used for awards 

that support investments that serve populations living in 

persistent poverty counties: Provided further, That for the 

purposes of this paragraph and paragraph (1) the term "persistent 

poverty counties" means any county, including county 

equivalent areas in Puerto Rico, that has had 20 percent or more 

of its population living in poverty over the past 30 years, as 

measured by the 1990 and 2000 decennial censuses and the 

2011-2015 5-year data series available from the American 

Community Survey of the Bureau of the Census or any other 

territory or possession of the United States that has had 20 

percent or more of its population living in poverty over the past 

30 years, as measured by the 1990, 2000 and 2010 Island Areas 

Decennial Censuses, or equivalent data, of the Bureau of the 

Census]. (Department of the Treasury Appropriations Act, 

2020.)

E – Legislative Proposals 

The Budget proposes to extend the BG Program’s authorization, with an annual guarantee level 

not to exceed $300 million, and requests an extension of the BG Program through December 31, 

2021. The Budget also proposes to eliminate the relending account, as it is currently not utilized 

and redundant. The BG Program will continue to operate at no budgetary cost for new issuances. 

The Budget also requests elimination of new allocations into the Capital Magnet Fund. 
CDFI - 8 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The CDFI Fund’s mission is to expand economic opportunity for underserved people and 

communities by supporting the growth and capacity of a national network of community 

development lenders, investors, and financial service providers. The CDFI Fund supports the 

following the Department of the Treasury’s FY 2018-2022 strategic goals: 

• Goal 1: Boost U.S. Economic Growth 

- Objective 1.2 - Strong Economic Fundamentals 

• Goal 4: Transform Government-wide Financial Stewardship 

- Objective 4.1 - Financial Data Access and Use 

The CDFI Fund’s award recipients provide loans, investments, business counseling, basic 

banking services, and financial literacy training in some of the most distressed communities in 

the nation. These are the communities where job opportunities remain stagnant and that 

otherwise lack access to more mainstream forms of capital – the places in the United States that 

are not progressing economically as other parts of our economy have improved. CDFI Fund 

award recipients use their awards to increase access to capital and help to improve the quality of 

life and the local economy in these communities. 

The FY 2021 Budget will advance these goals by allowing the CDFI Fund to administer and 

fully staff the CDFI Fund’s programs that are authorized by Congress but do not require 

appropriated funds to make awards, i.e., the NMTC Program and BG Program. In addition, the 

CDFI Fund will continue to conduct ongoing program compliance for prior-year award 

recipients for all programs. 

The budget request is also intended to cover the cost to administer certification of CDFIs, as 

required by the Riegle Act, as well as Community Development Entities, as required by the 

NMTC Program. CDFI certification is a prerequisite for eligibility for the CDFI Program, the 

NACA Program, the BG Program and the Capital Magnet Fund (CMF), as well as other federal 

programs outside of the CDFI Fund. 

 
CDFI - 9 

B – Budget and Performance by Budget Activity 

2.1.1 – Administration Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $23,100 $23,600 $26,000 $27,000 $27,000 $28,500 $14,000 

Budget Activity Total $23,100 $23,600 $26,000 $26,713 $27,000 $28,500 $14,000 

Full-time Equivalents (FTE) 76 77 74 66 67 76 39 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents. 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

ALL Award Cycle Time 

(Months) 8.3 7.6 6.3 5.8 6.4 6.5 6.5 6.5 

ALL - Time to Initial 

Disbursement (#Months) N/A B 7.5 7 N/A* 4.5 4.5 4.5 

ALL - Number of 

Affordable Housing Units 

Developed or Produced 

27,004 35,251 27,443 34,083 61,000 21,500 21,500 21,500 

The FY 2019 results for this measure will be tabulated after 4.5 months have elapsed from the end of FY 2019 

2A - Administration 

($14,000,000 from direct appropriations): 

This encompasses the CDFI Fund’s operational support and management activities for each of its 

ongoing award programs. It includes, among other activities, developing notices of award 

availability and application materials; reviewing and evaluating certification and award 

applications; selecting awardees; finalizing the terms of award agreements; making 

disbursements; collecting and evaluating performance data; monitoring awardees’ compliance; 

and award closeout processes. 

Description of Performance: 

The CDFI Fund’s three administrative performance measures focus on organization-wide 

efficiency. They measure how quickly awards are made and funds are disbursed, and the creation 

of affordable housing units across all CDFI Fund programs. Note that targets are set for these 

FY2021 administrative measures because the results reflect prior year activities reported in the 

fiscal year. 

• The All Cycle Time measures the average time from the date when applications are received 

to the date of award announcement (calculated in months as an average across all programs). 

The Award Cycle Time in FY 2019 was 6.4 months, thereby meeting the target of 6.5 months. 

This achievement reflects improved efficiency in making awards, which is largely a function 

of the implementation of the Awards Management and Information system (AMIS). FY 2020 

and FY 2021 Targets will be maintained at 6.5 months to reflect the improved efficiencies in 

the award making processes. 

• The Time to Initial Disbursement indicates in months how quickly the CDFI Fund completes 

award agreements and makes the first disbursement of funds or issues tax credits. The FY 

2019 results for this measure will be tabulated after 4.5 months have elapsed from the end of 

FY 2019. The results are not yet available. 

• The Number of Affordable Housing Units Developed or Produced metric measures the 

number of affordable housing units developed or produced as a result of CDFI Fund awards as 
CDFI - 10 

reported by CDFI Program, NMTC Program, and CMF awardees and allocation recipients. 

The FY 2019 actual result of 61,011 affordable housing units was well above the target of 

21,500 affordable housing units, largely due to large CDFI Program investments in over 

47,500 affordable home ownership units. Despite this result, the FY 2021 target was set to 

21,500 units to reflect a potential decrease in program funding which may reduce projected 

outcomes for program investments. 

2.1.2 – Community Development Financial Institutions Program Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $152,400 $153,423 $161,500 $160,000 $160,000 $165,500 $0 

Budget Activity Total $152,400 $153,423 $161,500 $160,000 $160,000 $165,500 $0 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

CDFI - Percentage of 

Loans & Investments 

Originated in Eligible 

Distressed or Underserved 

Communities by Dollar 

Amount of Loans (Annual 

%) 

80.1 80.9 81.2 73.7 75.6 60 60 N/A 

CDFI - Percentage of 

Loans & Investments 

Originated in Eligible 

Distressed or Underserved 

Communities by Number 

of Loans 

80.5 81.5 83 72.1 78.5 60 60 N/A 

2B – Community Development Financial Institutions Program 

($0 from direct appropriations): 

The CDFI Program makes Financial Assistance (FA) awards to CDFIs that have comprehensive 

business plans for creating community development impact and that demonstrate the ability to 

leverage private sector sources of financing, as well as Technical Assistance (TA) grants to 

CDFIs and entities proposing to become CDFIs. CDFIs use FA awards to further goals such as: 

• Economic development (job creation, business development, and commercial real estate 

development); 

• Affordable housing (rental housing and homeownership); and 

• Financial services (provision of basic banking services and financial literacy training to 

underserved people and communities). 

For the FY 2019 CDFI Program round, the CDFI Fund awarded $132 million in Financial 

Assistance to 261 organizations. The CDFI Fund also awarded $18.2 million in Persistent 

Poverty Counties-Financial Assistance (PPC-FA) to 125 CDFIs specifically to serve Persistent 

Poverty Counties nationwide. In addition, the CDFI Fund awarded $22 million in HFFIFinancial Assistance to 14 CDFIs, as well as $3 million in Disability Funds-Financial Assistance 

awards to 16 CDFIs to help finance projects and services to assist individuals with disabilities. A 

total of 60 organization were also awarded more than $7.2 million in Technical Assistance. 

 
CDFI - 11 

Description of Performance: 

The CDFI Program has two measures: (1) the percentage of loans and investments originated in 

eligible distressed communities or made to underserved populations, as measured against the 

total dollar amount of loans originated by awardees; and (2) the percentage of loans and 

investments originated in eligible distressed communities or to underserved populations, as 

measured against the total number of loans originated by awardees. 

Certification criteria require that all certified CDFIs originate at least 60.0 percent of their loans 

and investments in eligible distressed census tracts or to underserved populations. The target is 

set at a level that allows CDFIs to balance their mission to serve distressed communities and 

underserved populations with their safety and soundness considerations. 

In FY 2019, the CDFI Program surpassed the 60.0 percent threshold for the percentage of both 

the dollar amount (75.6 percent) and the number of CDFI loans (78.5 percent) made to eligible 

distressed communities and underserved populations. No target is set for the FY 2021 measures 

because no appropriation is proposed for the CDFI Program for this fiscal year. 

2.1.3 – New Markets Tax Credit Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $0 $0 $0 $0 $0 $0 $0 

Budget Activity Total $0 $0 $0 $0 $0 $0 $0 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

NMTC - Percentage of 

Loans and Investments 

That Went Into Severely 

Distressed Communities 

75.2 74.5 77.5 73.6 80 75 75 N/A 

2C – New Markets Tax Credit Program 

($0 from direct appropriations): 

The NMTC Program stimulates capital investment in low-income communities nationwide by 

permitting individual and corporate taxpayers to receive a non-refundable tax credit against 

federal income taxes for making equity investments in vehicles known as Community 

Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the 

program are domestic corporations or partnerships that provide loans, investments, or financial 

counseling in low-income urban and rural communities. 

On December 20, 2019, legislation was enacted extending allocation authority of the NMTC 

Program for one year through calendar year (CY) 2020 at $5 billion. 

Description of Performance: 

In FY 2019, the CDFI Fund awarded $3.5 billion in calendar year 2018 New Markets Tax Credit 

Program (NMTC Program) allocation authority to 73 organizations out of a pool of 214 

applicants that requested $14.8 billion in NMTC allocations. 
CDFI - 12 

In FY 2019, CDEs reported that 80 percent of NMTC investments were made in severelydistressed communities, well above the target of 75 percent. The expectation is that the NMTC 

investments performance report for FY2020 will meet or exceed the 75 percent target. Due to the 

expiration of the extension of the allocation authority at the end of calendar year 2020, no target 

has been set for FY 2021. 

2.1.4 – Bank Enterprise Award Program Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $18,000 $19,000 $23,000 $25,000 $25,000 $25,000 $0 

Budget Activity Total $18,000 $19,000 $23,000 $25,000 $25,000 $25,000 $0 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

BEA - Increase in 

Community 

Development Activities 

Over Prior Year For All 

BEA Program 

Applicants ($ million) 

460 539 522 646 429 500 500 N/A 

 

2D – Bank Enterprise Award Program 

($0 from direct appropriations): 

The Bank Enterprise Award (BEA) Program provides monetary awards to regulated banks and 

thrifts for increasing their investments in CDFIs through grants, stock purchases, loans, deposits, 

and other forms of financial and technical assistance, and for increasing their lending, 

investment, and service activities in economically-distressed communities where at least 30 

percent of residents have incomes less than the national poverty level and where the 

unemployment rate is at least 1.5 times the national unemployment rate. 

Description of Performance: 

The BEA Program measures applicants’ increase in qualified community development activities 

over the prior year. In FY 2019, the CDFI Fund announced awards under both the FY 2018 and 

FY 2019 rounds of the BEA Program. A total of $25 million was awarded to 119 organization 

under the FY 2018 round in December 2018 and then $25.2 million was awarded to 113 

organizations under the FY 2019 round in September 2019. 

BEA Program results for FY2019 was $429 million in qualified community development 

activities, which is below the target of $500 million. The target was not met due to delays in 

opening the round. No target is set for the FY 2021 measure because no appropriation is 

proposed for the BEA Program for this fiscal year. 
CDFI - 13 

2.1.5 – Native American CDFI Assistance Program Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $15,000 $15,500 $15,500 $16,000 $16,000 $16,000 $0 

Budget Activity Total $15,000 $15,500 $15,500 $16,000 $16,000 $16,000 $0 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

NACA - Percentage of 

NACA Loans and 

Investments in Native 

Areas ($ Amount of 

Loans) 

65 48.4 42.6 84.9 78 50 50 N/A 

NACA - Percentage of 

NACA Loans and 

Investments in Native 

Areas (# of Loans) 

95.9 94.9 94.5 94.4 86 50 50 N/A 

2E – Native American CDFI Assistance Program 

($0 from direct appropriations): 

Through the NACA Program, the CDFI Fund assists entities in overcoming barriers that prevent 

access to credit, capital, and financial services in American Indian, Alaska Native, and Native 

Hawaiian communities. The NACA Program makes monetary awards to increase the number 

and capacity of existing or new Native CDFIs (i.e., CDFIs that serve Native communities). In 

addition, the NACA Program provides training to help strengthen and develop Native CDFIs. 

Native CDFIs lend where other mainstream financial institutions do not and serve the poorest 

individuals, families, and businesses in Native communities. 

For the FY 2019 round of the NACA Program, the CDFI Fund awarded $12 million in Financial 

Assistance to 23 organizations in 11 states. In addition, 11 organizations received $1.5 million in 

PPC-FA awards. More than $1.9 million in Technical Assistance was also awarded to 13 

organizations. 

Description of Performance: 

The two measures of performance for the NACA Program are: (1) the percentage of the number 

of loans, and (2) the dollar amount of loans, made in tribal lands (based on Federal Designations 

of Tribal Areas) or to Native people. In accordance with their Financial Assistance agreements, 

NACA awardees are required to originate 50 percent or more of their loans and investments in 

Native areas or to Native populations. This threshold is set to allow the awardees to balance their 

mission of serving Native areas and populations with safety and soundness considerations. 

In FY 2019, NACA recipients reported outcome data for their 2018 activities, which showed that 

78 percent of loans by dollar amount and 86 percent of the number of loans originated were in 

Native Areas or to Native borrowers. No target is set for the FY 2021 measures because no 

appropriation is proposed for the NACA Program for this fiscal year. 
CDFI - 14 

2.1.6 – Healthy Food Financing Initiative Detail Resources and Measures 

Dollars in Thousands Resource Level FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $0 

Budget Activity Total $22,000 $22,000 $22,000 $22,000 $22,000 $22,000 $0 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. 

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

HFFI - Retail Outlets 

Created/Preserved 35 19 24 20 20 23 20 N/A 

2F – Healthy Food Financing Initiative 

($0 from direct appropriations):

The HFFI aims to eliminate “food deserts” – low-income urban and rural areas in the United 

States with limited access to affordable and nutritious food – by financing interventions that 

expand the supply of, and demand for, nutritious foods. The objectives include increasing the 

distribution of agricultural products, developing and equipping grocery stores, and strengthening 

producer-to-consumer relationships. 

Through the HFFI, the CDFI Fund provides awards to Certified CDFIs to help address the need 

for healthy food in underserved and low-income communities. These organizations use federal 

grants, below market-rate loans, loan guarantees, and tax credits to attract private sector 

financing for projects that increase access to healthy food options. 

Description of Performance: 

The primary HFFI performance measure is the number of healthy food retail stores created and 

maintained in low-income areas that have been identified through detailed census tract analysis 

as having limited access to healthy food options. In FY 2019, the number of HFFI Retail outlets 

created was 23, thereby exceeding the target of 20 new retail outlets for FY 2019. No target is set 

for the FY 2021 measures because no appropriation is proposed for the HFFI Program for this 

fiscal year. 

 

2.1.7 – Small Dollar Loan Program Resources and Measures 

Dollars in Thousands FY 2020 FY 2021 

Resource Level Enacted Request 

Appropriated Resources $5,000 $0 

Budget Activity Total $5,000 $0 

2G - Small Dollar Loan Program 

($0 from direct appropriations): 

Authorized by Section 1206 of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (P.L. 111-203), the Small Dollar Loan Program provides Financial Assistance, in the form of 

grants for loan loss reserves, and Technical Assistance to enable CDFIs to establish and maintain 
CDFI - 15 

small dollar loan programs. This funding helps allow CDFIs provide consumers access to 

mainstream financial institutions and combat high-cost small dollar lending. 

Description of Performance: 

No target has been set because this is a new program. 

2.1.8 – Capital Magnet Fund Program Resource Detail 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

Resource Level Actual Actual Actual Actual Actual Estimate Request 

GSE Distribution N/A $100,292 $119,413 $144,917 $131,884 $162,000 $0 

Budget Activity Total N/A $100,292 $119,413 $144,917 $131,884 $162,000 $0 

FTE 0 0 4 4 3 6 3* 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents. 

*FY 2021 will require FTE for compliance monitoring.

2H – Capital Magnet Fund Program 

($0 from direct appropriations): 

The CMF Program authorized by the Housing and Economic Recovery Act of 2008 (P.L. 110-

289), establishes recurrent funding of the CMF through allocations from the GovernmentSponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Through CMF, the CDFI Fund 

provides grants to CDFIs and qualified non-profit housing organizations to finance affordable 

housing, community service facilities, and economic development. Award recipients can use 

funds to create financing tools such as loan loss reserves, revolving loan funds, risk-sharing 

loans, and loan guarantees. The Budget proposes to eliminate new funding for CMF. 

Description of Performance: 

The primary performance measures of the CMF are the number of affordable housing units for 

which CMF funding was a source of financing, and the degree to which private funding sources 

were leveraged by CMF financing. Data on affordable housing units are included in performance 

table 2.1.1. 

Based on award recipients’ projections, the FY 2018 round of the CMF will leverage an 

estimated $5.5 billion in public and private investment. The award recipients plan to develop 

more than 25,000 affordable housing units, including nearly 23,000 rental units and more than 

2,000 homeownership units. Of these: 

• 95 percent of all housing units will be developed for low-income families (80 percent of 

the area median income or below). 

• 94 percent of the homeownership units will be developed for low-income families (80 

percent of the area median income or below). 

• 57 percent of the rental units will be developed for very low-income and extremely lowincome families (50 percent of the area median income or below). 
CDFI - 16 

2.1.9 – CDFI Bond Guarantee Program Resource Detail 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Obligations    $327,000 $265,000 $245,000 $150,000 $100,000 $500,000 $300,000 

Loan Limitation 

Obligation Authority $750,000 $750,000 $500,000 $500,000 $500,000 $500,000 $300,000 

2.1.10 – Financing Accounts Non-Budgetary Summary 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Obligations    $327,000 $265,000 $245,000 $150,000 $100,000 $500,000 $300,000 

Collections*    $2,966 $9,377 $19,789 $34,337 $51,493 $59,791 $63,667 

*Includes the principal and interest repayments and a 10 basis point fee for administrative expenses pursuant to Section 1134 of the Small 

Business Jobs Act of 2010. These amounts assume a zero subsidy rate with bond loan disbursement of $438 million and $452 million in FY 2020 

and FY 2021, respectively. 

2I. – CDFI Bond Guarantee Program Budget and Performance 

Through the BG Program, Treasury provides a 100 percent guarantee of bonds (including 

principal, interest, and call premiums) issued by Qualified Issuers. Bonds issued through the 

program support CDFI lending and investment activity in underserved communities by providing 

a source of long-term capital. Qualified Issuers use bond proceeds to finance loans to eligible 

CDFIs for community and economic development purposes. 

Since the inception of the program, the total amount of bonds guaranteed is $1.592 billion. A 

total of 25 Eligible CDFIs and three Qualified Issuers participate in the BG Program. Upon the 

closing of each bond, the eligible CDFIs have five years to lend or disburse the bond proceeds. 

The table below provides the year-to-date (FYE) and proposed disbursement for the top eight 

asset classes:

Assets Classes

Disbursements

($Millions)

Disbursements

(%)

Proposed

Disbursements

($Millions)

Proposed

Disbursements

(%)

Charter Schools $288.50 26.84% $440.00 29.49%

Rental Housing $297.90 27.72% $360.60 24.17%

Commercial Real Estate $192.70 17.93% $267.80 17.95%

Financing Entity $107.10 9.97% $132.30 8.87%

Healthcare Facilities $78.60 7.31% $104.20 6.98%

Not‐For‐Profits $50.00 4.65% $80.20 5.38%

Small Business $30.70 2.86% $37.80 2.53%

Senior Living and Long

Term Care Facilities $17.60 1.64% $44.00 2.95%

Daycare Centers $11.60 1.08% $25.10 1.68%

Total $1,074.70 100.00% $1,492.00 100.00%

FY2019 BGP Proposed and Disbursed Funds (Cumulative)
CDFI - 17 

C – Changes in Performance Measures 

With the publication of Treasury’s Strategic Plan for FY 2018-2022, the CDFI Fund will work 

this year to baseline the performance for the new strategic objectives. The CDFI Fund has had 

discussions with the Office of Strategic Planning and Performance Improvement (OSPPI) about 

changes to performance measures in FY 2021. 

 

D – Evidence - Building Activity 

Development of the Assessment and Risk Management Framework 

During FY 2019, the CDFI Fund continued its development of the CDFI Program Assessment 

and Risk Management Framework (ARM Framework), which began in FY 2015. The ARM 

Framework is a suite of six tools that the CDFI Fund will use to assess the financial and 

programmatic risk of CDFI Program applicants and award recipients, enhance data-driven 

decision-making, and mitigate post-award compliance and reporting risks. The full suite of tools 

will be implemented by the end of FY 2020 and will support the needs of multiple CDFI Fund 

business units. 

Section III – Additional Information 

A – Summary of Capital Investments 

As part of its FY 2021 capital investment strategy, the CDFI Fund plans to spend approximately 

$3.20 million for operations and maintenance of its Information Technology (IT). The CDFI 

Fund has no major IT investments, nor any capital investments other than IT. 

Non-Major IT Investments: 

For FY 2021, the CDFI Fund has identified two non-major IT investments: Awards Management 

Information System (AMIS) and the CDFI Fund public website. AMIS is an enterprise-wide 

commercial, cloud-based solution that supports CDFI Fund certification, tax credit allocation, 

bond guarantee, and grant programs. The CDFI Fund programs were fully deployed in AMIS in 

September 2018. The CDFI Fund public website, another cloud-based solution, provides access 

to general information about the CDFI Fund and is used to ensure the public can obtain 

information and guidance regarding CDFI Fund programs. For FY 2021, the CDFI Fund plans to 

provide Operations and Maintenance (O&M) support for these two IT investments. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 



Department of the Treasury 

Financial Crimes Enforcement 

Network 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
FinCEN – 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 – BSA Administration and Analysis Resources and Measures ....................................... 11

BSA Administration and Analysis Budget and Performance ................................................... 12

C – Changes in Performance Measures .................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
FinCEN – 3 

Section I – Budget Request 

A – Mission Statement 

To safeguard the financial system from illicit use, combat money laundering, and promote 

national security through the strategic use of financial authorities and the collection, analysis, 

and dissemination of financial intelligence. 

B – Summary of the Request 

The FY 2021 President’s Budget requests additional resources totaling $963,000 and provides 

$2,300,000 for two critical program areas and program decreases totaling $2,864,000. 

Specifically, FinCEN will enhance its national security capacity, which includes continuous 

expansion of its efforts to combat cybercrime and cryptocurrency threats and strengthening the 

inspection and training efforts to ensure the proper stewardship and on-going protection of 

sensitive national security information. 

FinCEN is a bureau in the U.S. Department of the Treasury. The Director of FinCEN reports to 

the Under Secretary for Terrorism and Financial Intelligence (TFI). In carrying out its mission, 

FinCEN has numerous statutory areas of responsibility: 

 Developing and issuing regulations under the Bank Secrecy Act (BSA); 

 Enforcing compliance with the BSA in partnership with law enforcement and other 

regulatory partners; 

 Serving as the U.S. Financial Intelligence Unit (FIU) and maintaining a network of 

information sharing with FIUs in 164 partner countries; 

 Receiving millions of new financial reports each year; 

 Securing and maintaining a database of over 300 million reports; 

 Analyzing and disseminating financial intelligence to federal, state, and local law 

enforcement, federal and state regulators, foreign FIUs, and industry; and 

 Bringing together the disparate interests of law enforcement, FIUs, regulatory partners, and 

industry. 
FinCEN – 4 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Appropriated Resources Operating Plan Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

BSA Administration and Analysis 271 $117,800 300 $126,000 345 $126,963 15.0% 0.8% 

Subtotal New Appropriated Resources 271 $117,800 300 $126,000 345 $126,963 15.0% 0.8% 

Other Resources 

Reimbursable 2 $1,771 1 $3,000 1 $3,000 NA 0.0% 

Recoveries from Prior Years 0 $34 0 $500 0 $500 NA 0.0% 

Unobligated Balances from Prior Years 0 $37,967 0 $27,000 0 $28,000 NA 3.7% 

Subtotal Other Resources 2 $39,772 1 $30,500 1 $31,500 0.0% 3.3% 

Total Budgetary Resources 273 $157,572 301 $156,500 346 $158,463 15.0% 1.3% 

FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2020 Enacted 300 $126,000 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $2,827 

Pay Annualization (3.1% average pay raise) 0 $380 

Pay Raise (1.0% average pay raise) 0 $390 

FERS Contribution Increase 0 $524 

Non-Pay 0 $1,533 

Non-Recurring Costs 0 ($1,300) 

TBML Risk Assessment 0 ($1,300) 

Other Adjustments: 37 $0 

Technical FTE Adjustment 37 $0 

Subtotal Changes to Base 37 $1,527 

FY 2021 Current Services 337 $127,527 

Program Changes: 

Program Decreases 0 ($2,864) 

 Programmatic Contract and Equipment Reductions 0 ($2,864) 

Program Increases: 8 $2,300 

 Bolstering BSA Data Protection 5 $1,481 

Building Out FinCEN's Virtual Currency and Cyber 

Threat Mitigation Program 3 $819 

FY 2021 President's Budget Request 345 $126,963 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$2,827,000 / +0 FTE 

Pay Annualization (3.1%) +$380,000 / +0 FTE: 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$390,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 
FinCEN – 5 

FERS Contribution Increase +$524,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$1,533,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Non-Recurring Costs..............................................................-$1,300,000 / -0 FTE 

TBML Risk Assessment -$1,300,000 / -0 FTE 

Completion of Trade-Based Money Laundering (TBML) risk assessment. 

Other Adjustments.........................................................................+$0 / +37 FTE 

Technical FTE Adjustment +$0 / +37 FTE 

This adjustment reflects FTEs in FinCEN’s multi-year hiring plan, which is beginning 

implementation in FY 2020. 

Program Decreases .....................................................................................-$2,864,000 / -0 FTE 

Programmatic Contract and Equipment Reductions -$2,864,000 / -0 FTE 

This reduction will be taken through evaluation of potential decreases or changes in proposed 

acquisitions of contractual services and equipment. FinCEN will evaluate contracts during the 

renewal process to absorb this reduction. 

Program Increases ....................................................................................+$2,300,000 / +8 FTE 

Bolstering BSA Data Protection +$1,481,000 / +5 FTE 

This funding will allow FinCEN to support an enhancement in BSA data inspections and training 

efforts. In order to bolster the ability to protect BSA data collected, FinCEN will strengthen its 

inspections program to include internal, external, and bulk data usage; enhance its proactive 

engagement for preventative measures; and increase education and training efforts for the over 

460 federal, state, and local agencies across the country with whom FinCEN maintains data 

access Memoranda of Understanding (MOUs) and their over 12,700 authorized users. 

Safeguarding the BSA database from misuse is a critical obligation, and FinCEN needs to make 

on-site inspections of its MOU holders a priority. With additional funding, FinCEN will move to 

a primarily on-site inspection posture to enhance our visibility into individual agencies’ 

compliance with the obligations set forth in their MOUs. This effort is very much in furtherance 

of FinCEN’s obligation to safeguard the BSA database from misuse and will allow FinCEN to 

increase the number of routine on-site inspections performed. 

In addition to expanding FinCEN’s capabilities to inspect data access activities, there is also a 

need to increase the training and outreach initiatives. From FY 2014 to FY 2018 there was an 18 

percent increase in BSA data access MOUs, and FinCEN expects this percentage to steadily 

increase annually. Furthermore, FinCEN receives on average 120 access requests per year. As 

we anticipate an increase in MOUs in the future commensurate with historical growth patterns, 

there is a need for more training resources to cover BSA data security and proper use of BSA 

data for the corresponding increase in users. In order for FinCEN to keep up with the increasing 
FinCEN – 6 

needs of our stakeholders, we must be readily available to conduct substantive outreach and 

provide comprehensive financial analysis training. Better understanding of complex financial 

schemes translates into better use of BSA data, which encourages more responsible behavior 

when accessing the data. It will also increase FinCEN’s ability to provide on-going, substantive 

training and outreach to our law enforcement partners on myriad issues of national security 

importance in an effort to increase their awareness and enhance their traditional methods of 

utilizing the BSA to investigate illicit finance. As investigators become more adept at 

manipulating BSA data, more sophisticated cases of criminal wrongdoing will be brought to 

justice. Additionally, more meaningful feedback provided to regulated institutions that are 

subject to BSA reporting requirements ultimately lends to better reporting by the institutions 

themselves. 

Increased access to BSA data creates increased risk of improper use of the data, including 

unauthorized disclosures. Training addresses this knowledge gap for stakeholders and assists 

them in effectively manipulating the BSA data to properly support their investigations. This 

effort also assists FinCEN in maintaining a close and continual working relationship with its 

broad universe of stakeholders. These additional resources will allow FinCEN to ensure all of its 

users are fulfilling their responsibility to properly use and protect BSA data. 

Building Out FinCEN’s Virtual Currency and Cyber Threat Mitigation Program +$819,000 / +3 

FTE 

These funds will allow for international capacity building to ensure that accessibility of critical 

information exists for investigations that include an international component. The utilization of 

software tools will allow FinCEN to double the number of virtual currencies analyses, 

corroborate findings, and increase big data analytics capability, allowing for automated analytics 

and visualization of financial and cyber data. The program enhancement strengthens direct 

support for law enforcement cases to 130 cases per year, the development of 37 strategic 

intelligence products, and the provision of 50 training sessions per year. 

The FY 2021 funds will also allow FinCEN to respond to an increasing number of law 

enforcement requests for operational support regarding domestic and global cyber-enabled 

financial crimes, including efforts into the use of virtual currency to facilitate such crimes. This 

will enable FinCEN to conduct intelligence and law-enforcement driven responses to 

international and domestic financial threat incidents. The enhancement will also assist FinCEN’s 

ongoing efforts to recover funds stolen by cyber means in fraud and virtual currency exchange 

thefts. Based on metrics developed by law enforcement partners, FinCEN estimates that it will 

be able to recover approximately 60 percent of funds stolen domestically and maintain its current 

international recovery rate at 50 percent. 

Lastly, the funding will directly support FinCEN’s coordination with other international 

jurisdictions as they advance their efforts to establish their own capabilities to address virtual 

currency and cyber threats through training and capacity building, analytical development, and 

information sharing initiatives. 
FinCEN – 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 35,696 41,247 47,434 

11.3 - Other than full-time permanent 101 150 150 

11.5 - Other personnel compensation 770 822 845 

11.9 - Personnel Compensation (Total) 36,567 42,219 48,429 

12.0 - Personnel benefits 11,352 12,374 14,231 

Total Personnel and Compensation Benefits $47,919 $54,593 $62,660 

21.0 - Travel and transportation of persons 658 767 816 

22.0 - Transportation of things 2 0 0 

23.1 - Rental payments to GSA 4,193 4,913 4,971 

23.2 - Rental payments to others 49 50 51 

23.3 - Communications, utilities, and miscellaneous charges 1,703 2,100 2,137 

24.0 - Printing and reproduction 62 62 65 

25.1 - Advisory and assistance services 1,517 1,500 1,552 

25.2 - Other services from non-Federal sources 48,930 44,285 35,478 

25.3 - Other goods and services from Federal sources 13,531 7,903 10,143 

25.6 - Medical care 186 200 226 

25.7 - Operation and maintenance of equipment 9,210 9,100 9,497 

26.0 - Supplies and materials 251 270 278 

31.0 - Equipment 1,635 1,765 1,928 

Total Non-Personnel $81,927 $72,915 $67,142 

Total Obligations $129,846 $127,508 $129,802 

 

Full-time Equivalents (FTE) 273 301 346 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 
FinCEN – 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

BUREAU NAME 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of the Financial Crimes Enforcement 

Network, including hire of passenger motor vehicles; travel and 

training expenses of non-Federal and foreign government 

personnel to attend meetings and training concerned with 

domestic and foreign financial intelligence activities, law 

enforcement, and financial regulation; services authorized by 5 

U.S.C. 3109; not to exceed $12,000 for official reception and 

representation expenses; and for assistance to Federal law 

enforcement agencies, with or without reimbursement, 

[$126,000,000]$126,963,000, of which not to exceed 

$34,335,000 shall remain available until September 30, 

[2022]2023. (Department of the Treasury Appropriations Act, 

2020.)

E – Legislative Proposals 

FinCEN has no legislative proposals. 
FinCEN – 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

FinCEN supports the Treasury Strategic Goal 3: Enhance National Security and Goal 5: Achieve 

Operational Excellence. In Strategic Goal 3, FinCEN supports the following Treasury Strategic 

Objectives: 3.1 Strategic Threat Disruption – Identify, disrupt, and dismantle priority threats to 

the U.S. and international financial system and Treasury Strategic Objective 3.2 Anti-Money 

Laundering/Combating Financing of Terrorism Framework – Identify and reduce vulnerabilities 

in the U.S. and international financial system to prevent abuse by illicit actors. 

In FY 2019, FinCEN had several noteworthy accomplishments highlighted below: 

 Expand Supervision over Non-bank Financial Institutions

o Piloted a project to collect virtual currency sector data for identifying activity of illicit 

concern. 

o Successfully completed a pilot for identifying compliance risk among entities 

registered as money services businesses (MSBs) with FinCEN. The pilot used BSA 

data to risk-rate MSBs. FinCEN intends to expand this pilot to other sectors, and is 

currently in preliminary stages with casinos and Residential Mortgage Lenders and 

Originators (RMLOs). 

 Modernize, Streamline, and Simplify Regulatory Authorities

o Provided interpretive guidance to the regulated industry consolidating FinCEN 

regulations related to MSBs, explaining how they apply to convertible virtual 

currency (CVC) business models. 

o With the Federal Banking Agencies (FBAs), issued three joint statements on 1) 

sharing BSA resources; 2) encouraging innovative approaches to meeting Bank 

Secrecy Act/Anti-Money Laundering (BSA/AML) compliance obligations; and 3) 

emphasizing the risk-focused approach to examinations of banks’ BSA/AML 

compliance programs. 

o Created an AML Effectiveness Working Group in the BSA Advisory Group 

(BSAAG) to develop recommendations to enhance the AML regime by focusing on 

strategic AML priorities and realigning AML compliance practices to more 

effectively deter criminal activity. 

 Enhance Systems and Analytical Capabilities

o FinCEN also transitioned the final three BSA reports (Foreign Bank Account, 

Designation of Exempt Person, Cash over 10K Received in Trade/Business) to the 

Extensible Mark-Up Language (XML) industry format for electronic filing. 

 Expand Special Measures Efforts

o Issued special collections requests to dozens of financial institutions related to a range 

of illicit finance concerns including the Democratic People’s Republic of North 

Korea (DPRK), Iran, Venezuela, Third Party Money Launders, Transnational 

Organized Crime, and other illicit activity. FinCEN expects to receive in the order of 
FinCEN – 10 

50 million records in response to these requests, which will help to identify future 311 

targets and further map out broad illicit financial activity. 

o In coordination with interagency partners, FinCEN expanded the use of its 311 

authorities by investigating cases of drug trafficking and illicit financial activity in 

Venezuela and elsewhere in Latin America, proliferation of weapons of mass 

destruction in Asia, and other illicit activity in the Middle East and sub-Saharan 

Africa. 

 Financial Intelligence

o Increased support to cyber-related investigations, publishing more than 76 products 

ranging from Intelligence Assessments, Situation Reports, Investigative 

Memorandums, Flash Reports, and Spontaneous Disclosures, including a joint 

publication with law enforcement partners and a public product on Business Email 

Compromise (BEC). 

o Provided financial analyses supporting law enforcement efforts to combat 

fentanyl/opioid trafficking and Hizballah-related narcotics money laundering, and 

provided briefings and training to law enforcement on detecting and countering 

opioid trafficking. 

o Produced over 300 intelligence analyses or trend updates on threat actors, including 

transnational security threats (terrorism financing, Venezuela, Iran, and DPRK). 

 Expand Threat and Information Sharing

o Hosted four FinCEN Exchange events to enhance information sharing with financial 

institutions and provide them with important information regarding priority issues. 

o Completed three Egmont Information Exchange Working Group projects, producing 

two important Bulletins and a Report: a BEC Bulletin that was published for the 

public, a Human Trafficking Bulletin that was disseminated to Egmont members, and 

an Egmont Counter Terrorist Financing Project Report on lone actors and small cells. 

o Launched a pilot of the Rapid Response Program focusing on domestic wire transfers 

related to BEC. 

FinCEN’s FY 2020 and FY 2021 Priorities include: 

 Enhance efforts to identify and disrupt threats to financial system by increased tactical and 

strategic BSA-focused analytical products on terrorism, cyber and emerging technology 

threats; 

 Improve BSA framework through execution of priority initiatives with Federal Banking 

Agency, Bank Secrecy Act Advisory Group, BSA Value Project, and the Innovation 

Initiative; 

 Increase its international information sharing efforts with members of the Egmont Group of 

Financial Intelligence Units (FIU); 

 Continue to expand its investigative efforts with respect to foreign jurisdictions, financial 

institutions and classes of transactions of primary money laundering concern; 

 Partner with Functional Regulators to implement AML examination through an effective 

results-driven approach and participate in four examinations of covered financial institutions; 
FinCEN – 11 

 Bolster BSA Data Protection to enhance ability to protect BSA data collected through 

enhancements to BSA data inspections and training efforts. 

B – Budget and Performance by Budget Activity 

2.1.1 – BSA Administration and Analysis Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $112,000 $112,979 $115,003 $115,003 $117,800 $126,000 $126,963 

Reimbursable Resources $515 $1,721 $2,526 $2,198 $1,771 $3,000 $3,000 

Budget Activity Total $112,515 $114,700 $117,529 $117,201 $119,571 $129,000 $129,963 

Full-time Equivalents (FTE) 276 279 275 281 273 301 346 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents and reimbursables.

Workload 

Output/Activity 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Estimate Estimate Estimate 

Number of SARs filed 2,118,092 2,316,550 2,401,896 2,537,225 2,698,841 2,689,459 2,850,826 3,021,876 

Number of total BSA 

reports filed 19,147,588 19,244,824 19,322,891 20,393,947 20,755,285 20,801,826 21,217,862 21,642,220 

Number of BSA users 10,166 10,833 11,452 11,739 12,801 12,326 12,942 13,589 

Performance Measure 

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Domestic 

Law Enforcement and 

Foreign FIUs who Assert 

Analytic Products Used 

Led to Detection and 

Deterrence of Illicit 

Activity 

B 95% 92% 95% 92% 95% 90% 90% 

Percentage of Domestic 

Law Enforcement and 

Regulators Who Assert 

Queried BSA Data Led 

to Detection and 

Deterrence of Illicit 

Activity 

81% 83% 86% 85% 92% 86% 88% 89% 

Percentage of Users 

Satisfied with FinCEN 

Information Sharing 

Systems 

78% 80% 87% 86% 89% 84% 84% 85% 

Key: B - Baseline 

 
FinCEN – 12 

BSA Administration and Analysis Budget and Performance 

($126,963,000 from direct appropriations, $3,000,000 from reimbursable sources): 

Description of Performance: 

The continued increase in valuable BSA data demands the continued expansion of analysis 

capability and supporting technology to utilize this data to its full capacity. The increases in 

BSA data and the demand for this data informed the requested program changes. 

FinCEN conducts three annual surveys of the BSA database and information sharing systems’ 

users on the utility and value of FinCEN’s information, analysis, and systems. The results 

provide valuable feedback on FinCEN’s performance safeguarding the financial system from 

illicit use, combatting money laundering, and promoting national security. 

First, FinCEN measures the percentage of domestic law enforcement and foreign FIUs who 

assert that the analytic products they used led to detection and deterrence of illicit activity. This 

performance measure tracks what the analytics products are intended to do, i.e., be useful to a 

wide range of customers and have impact, such as identifying new leads or providing previously 

unknown information. In FY 2019, 92 percent found the analytic products and research had 

impact on the investigations, narrowly missing the target of 95 percent. Even though the target 

was narrowly missed, FinCEN was able to achieve this high level of performance by 

continuously evaluating and enhancing the processes that FinCEN uses to ensure that 

intelligence products meet the demands of its domestic and international stakeholders. The 

increased outreach and feedback to and from FinCEN’s users of its intelligence products resulted 

in introducing new types of intelligence products which focused on high-profile actors and illicit 

finance networks. These and other products also leverage new data obtained through FinCEN’s 

unique authorities, making the analyses in these products more timely, informative and 

actionable. The FY 2020 and FY 2021 targets are set at 90 percent. Due to the number and 

increasing sophistication of domestic and international threats to the financial system, FinCEN 

believes that 90 percent is indicative of satisfactory level of success. 

Second, FinCEN monitors the percentage of domestic law enforcement and regulators who assert 

that queried BSA data led to the detection and deterrence of illicit activity. The survey looks at 

the value of FinCEN data, such as whether the data provided unknown information; 

supplemented or expanded known information; verified information; helped identify new leads; 

opened a new investigation or examination; supported an existing investigation or examination; 

or, provided information for an investigative or examination report. In FY 2019, FinCEN 

surpassed its target of 86 percent with 92 percent asserting that queried BSA data led to the 

detection and deterrence of illicit activity. FinCEN achieved this performance by increasing its 

FinCEN Portal and Query training efforts. FinCEN will continue to increase its training efforts 

to provide the FinCEN Portal and FinCEN Query user community with the information they 

need to successfully enhance their investigative efforts. In FY 2020, the target is set at 88 

percent and in FY 2021 at 89 percent. 

Finally, FinCEN tracks the percentage of users satisfied with FinCEN information sharing 

systems. This measure is based on survey responses and represents user satisfaction with the 

BSA E-Filing System, FinCEN Query, and the Egmont Secure Web. FinCEN collects and 

maintains BSA reports filed by financial institutions and other filers. In turn, FinCEN provides 
FinCEN – 13 

authorized users (including Treasury and TFI) access to a query system containing 14 years of 

BSA data. FinCEN also provides foreign FIUs in the Egmont Group with a secure system for 

exchanging financial intelligence to combat money laundering and terrorist financing. This 

measure is meaningful because the information sharing system allows authorized persons to 

more readily access BSA information and better enable them to conduct investigations more 

efficiently and effectively. In FY 2019, FinCEN exceeded its target of 84 percent with 89 

percent of the users satisfied with the information sharing systems. FinCEN attributes this 

performance to the increased satisfaction with the value of BSA information in FinCEN Query, 

as well as improved system stability. FinCEN is currently undergoing a technical refresh of the 

FinCEN Portal and FinCEN Query applications, which will be implemented in mid FY 2020. As 

such, FinCEN will keep the target at 84 percent due to the learning curve associated with these 

changes. FinCEN expects the target to slightly increase to 85 percent in FY 2021. 

C – Changes in Performance Measures 

FinCEN has no changes in performance measures. 

D – Evidence-Building Activity 

The BSA Value Project will provide FinCEN with a methodology and initial calculation of the 

value of BSA reporting. The Project information and final results will (1) inform and help 

measure the potential impact of proposed regulatory reform actions, including regulatory or 

compliance changes; (2) establish a greater public understanding of how BSA reporting is used; 

(3) support the development of more targeted feedback to financial institutions on the use and 

value of their reporting; (4) identify additional measures or actions that FinCEN and other 

stakeholders can take to improve the tracking and calculation of BSA reporting value; and (5) 

identify actions that can enhance the underlying value and use of BSA reporting. The Project 

informs internal FinCEN actions/deliberations as well as external stakeholders (law enforcement, 

regulators, and others). The Project specifically informs the work of the Bank Secrecy Act 

Advisory Group on regulatory reform initiatives. 

FinCEN also conducts research for its advisories. The advisory support analysis for the 

Advisory on Traffic of Fentanyl and Other Synthetic Opioids and the Advisory on Public 

Corruption in Venezuela are examples of this research. The research analyzed BSA and other 

data to produce intelligence reporting on illicit opioid trafficking and Venezuelan government 

corruption. The research supported the development of FinCEN Advisories, assisted financial 

institutions in formulating or enhancing AML processes, and supported other agency activities. 

This information assisted financial institutions, Treasury components and law enforcement in 

identifying money laundering typologies, proactively targeting certain geographical areas, 

developing or enforcing economic sanctions against targeted entities and individuals, and 

enhancing FinCEN’s collaboration with senior officials in Treasury, the Department of Justice, 

and the White House National Security Council on national security issues. 
FinCEN – 14 

Section III – Additional Information 

A – Summary of Capital Investments 

As the administrator of the BSA, FinCEN receives valuable information reported and collected 

under BSA requirements, which totaled approximately 20.8 million filings in FY 2019. To 

successfully fulfill its mission, FinCEN relies on secure, advanced information technology (IT) 

to manage the collection, processing, storage, and dissemination of BSA information that 

contributes to the soundness and confidence in America’s financial system. 

 

FinCEN’s IT strategy takes into account the growing need for financial institutions to meet 

obligations as efficiently as possible, while ensuring that FinCEN and law enforcement agencies 

receive accurate, timely, and reliable BSA information to track money trails, identify money 

laundering, and unravel terrorist financing networks. FinCEN’s IT strategy focuses on the 

critical need to improve the quality and accessibility of its data and increase responsiveness to 

stakeholders by maintaining and building upon flexible and innovative technical solutions. The 

entire lifecycle cost of the BSA IT Modernization investment, which includes the year the 

investment started (2010) through BY+4 (2025), is $422.658 million (including FTE) and the FY 

2021 cost is projected at $25.951 million (including FTE). 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Alcohol and Tobacco Tax and 

Trade Bureau 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
TTB - 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 5

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

1.3 Object Classification (Schedule O) Obligations ................................................................... 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 – Collect the Revenue Resources and Measures .............................................................. 11

Collect the Revenue Budget and Performance ......................................................................... 11

2.1.2 – Protect the Public Resources and Measures .................................................................. 16

Protect the Public Budget and Performance ............................................................................. 16

C – Changes in Performance Measures .................................................................................... 22

D – Evidence-Building Activity ............................................................................................... 22

Section III – Additional Information ........................................................................................ 23

A – Summary of Capital Investments ....................................................................................... 23

 
TTB - 3 

Section I – Budget Request 

A – Mission Statement 

To collect the taxes on alcohol, tobacco, firearms, and ammunition; protect the consumer by 

ensuring the integrity of alcohol products; ensure only qualified businesses enter the alcohol and 

tobacco industries; and prevent unfair and unlawful market activity for alcohol and tobacco 

products. 

B – Summary of the Request 

Supporting the nation’s economic vitality is at the core of the work performed by the Alcohol 

and Tobacco Tax and Trade Bureau (TTB). The bureau’s role in permitting, regulating, and 

taxing the alcohol, tobacco, and firearms industries facilitates a compliant and fair marketplace 

for those engaged in the manufacture and trade of these commodities, and ensures that the 

Federal government has the resources needed to fund national priorities. In FY 2019, TTB 

collected nearly $20 billion in excise taxes from the alcohol, tobacco, firearms, and ammunition 

industries. 

As the most efficient means of tax administration, facilitating voluntary compliance will remain 

a priority for TTB in FY 2021. To this end, TTB will make critical IT investments to modernize 

TTB’s tax system with the aim of increasing electronic submissions, improving timely filings, 

and supporting taxpayer compliance. Further, in FY 2021, TTB will enhance its guidance related 

to Federal alcohol, tobacco, firearms, and ammunition laws and regulations, and pursue 

opportunities to streamline regulations and requirements to reduce compliance burden. These 

strategies support the President’s Management Agenda and are critical for TTB to mitigate 

potential performance impacts as TTB continues to prioritize its enforcement of the Craft 

Beverage Modernization and Tax Reform provisions of P.L. 115-97, recently extended through 

December 31, 2020. In the first two years of enactment, Federal revenues have declined, with the 

full impact not yet known. TTB expects that administration and enforcement will continue to 

pose significant challenges, particularly given the multitude of tax rates and complexity of 

verifying their appropriate application, and will continue to coordinate with CBP to engage in 

data-driven enforcement with regard to imported products. 

Alcohol and tobacco diversion remain long-term tax enforcement challenges given the high 

profits to be gained from illegal activity, the relative ease of diversion, and the substantial 

revenue loss that it represents. Failure to address illicit trade not only deprives governments of 

revenue, but also gives non-compliant actors an unfair competitive advantage over their lawful 

counterparts. To improve tax enforcement outcomes, and promote a more efficient Federal 

government, the Administration is proposing the consolidation of Federal alcohol and tobacco 

tax enforcement authorities within the Department of the Treasury, including transferring 

jurisdiction for the Contraband Cigarette Trafficking Act (CCTA) from the Department of 

Justice’s (DOJ) Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to TTB. The 

FY 2021 request supports an initial investment of $1.5 million in start-up funding for TTB to 

initiate the transfer and begin to implement this enforcement program. Upon transfer of CCTA 

authority, and once fully resourced, TTB expects that its current enforcement model, which uses 

a data-driven approach and relies on teams of agents, auditors, and investigators, as well as state 
TTB - 4 

and local law enforcement partners, will provide positive returns in terms of increased revenue 

and reduced criminal activity. 

As demand for TTB services has grown in line with the expanding alcohol industries, TTB has 

responded through updated burden-reducing policies, improved systems, and streamlined 

processes to support the timely turnaround of applications for new and existing wineries, 

breweries, and distilleries. Delays can cause financial hardships for these businesses and create a 

barrier to compliant commerce. In FY 2021, TTB will continue to focus on providing timely 

service to businesses seeking permit, label, and formula approvals. At the FY 2021 funding level, 

TTB will prioritize improvements to its permitting and labeling online filing systems as part of 

its IT modernization strategy to develop an integrated online experience for all tax and regulatory 

transactions with TTB, resulting in improved usability across the bureau’s online platforms. As 

part of these improvements, TTB will also continue to focus on providing clear and consistent 

industry guidance to facilitate the submission of compliant filings. 

1.1 – Appropriations Detail Table 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Appropriated Resources Operating Plan 1/ Enacted Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Collect the Revenue 209 $58,856 220 $57,513 228 $62,086 3.6% 8.0% 

Protect the Public 253 $60,744 262 $62,087 260 $63,751 -0.8% 2.7% 

Subtotal New Appropriated Resources 462 $119,600 482 $119,600 488 $125,837 1.2% 5.2% 

Other Resources 

Unobligated Balances from Prior Years 2/ 23 $5,079 20 $4,601 20 $3,908 0.0% -15.1% 

Transfers In/Out 3/ 0 $597 0 $0 0 $0 NA NA 

Offsetting Collections and Reimbursables 4/ 10 $6,239 10 $7,437 10 $7,437 0.0% 0.0% 

Subtotal Other Resources 33 $11,915 30 $12,038 30 $11,345 0.0% -5.8% 

Total Budgetary Resources 495 131,515 512 $131,638 518 $137,182 1.2% 4.2% 

 Note: FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

1/ FY 2019 New Appropriated Resources by Budget Activity reflect levels appropriated in P.L. 116-6, the Consolidated Appropriations Act of 

2019. FY 2019 FTE and Other Resources are Actual Obligations. For further details on the execution of these resources see the 2021 Budget 

Appendix chapter for the Department of the Treasury. 

2/ Includes carryover of prior two-year set aside funding for trade practice enforcement and recoveries of 50 percent in unobligated balances 

from prior one-year funding. 

3/ Transfer from TEOAF Secretary's Enforcement Fund. 

4/ Includes reimbursements from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund and Community Development 

Financial Institutions Fund (CDFI), and offsetting collections from Puerto Rico Cover-Over Program. 
TTB - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2020 Enacted 502 $119,600 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $2,748 

Pay Annualization (2020 3.1% pay raise) 0 $590 

Pay-Raise (1.0% average pay raise) 0 $575 

FERS Contribution Increase 0 $714 

Non-Pay 0 $869 

Other Adjustments: 6 $900 

Annualization of FY 2020 Hiring 6 $900 

Subtotal Changes to Base 6 $3,648 

FY 2021 Current Services 508 $123,248 

Program Changes: 

Program Decreases (6) ($1,500) 

Enforcement to Maintain a Level Playing Field (6) ($1,500) 

Program Increases: 6 $4,089 

MyTTB IT System Modernization 0 $2,589 

Consolidation of Federal Alcohol & Tobacco Tax Jurisdiction 6 $1,500 

FY 2021 President's Budget Request 508 $125,837 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$2,748,000 / +0 FTE 

Pay Annualization (3.1%) +$590,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Pay-Raise (1.0% in 2021) +$575,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$714,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$869,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Other Adjustments .................................................................................+$900,000 / +6 FTE 

Annualization of FY 2020 Hiring +$900,000 / +6 FTE 

This adjustment reflects the annualization of new hires brought onboard during the second half of 

FY 2020. 

Program Decreases ....................................................................................-$1,500,000 / -6 FTE 

Enforcement to Maintain a Level Playing Field -$1,500,000 / -6 FTE 

TTB will reduce its investigators and support staff dedicated to the Trade Practice Enforcement 

program. TTB enforcement addresses unlawful trade practices in the marketplace and ensures a 
TTB - 6 

level playing field for U.S. alcohol manufacturers and distributors. With two-year set aside 

funding provided in fiscal years 2017-2020, TTB added staffing to increase its capacity for trade 

practice investigations from approximately one each year to approximately 50 active cases 

annually. At the FY 2021 funding level, TTB will maintain fewer active cases and continue its 

process of evaluating and prioritizing the highest risk revenue and trade practice cases as part of 

its annual enforcement planning process. 

Program Increases ......................................................................................+$4,089,000 / +6 FTE 

MyTTB IT System Modernization +$2,589,000 / +0 FTE 

TTB will continue to invest in IT system modernization to transform the online experience for 

TTB industry members. The desired end-state, known as MyTTB, will provide an integrated and 

personalized online system to help industry members navigate the process of doing business with 

TTB. This initiative would transform the industry member experience with TTB incrementally, 

developing and delivering functional modules in phases to provide a seamless and consistent 

experience across all permitting, tax, and labeling interactions with TTB. MyTTB would also 

facilitate improved data integration across TTB programs and systems, enabling TTB to better 

detect noncompliance and fraud, validate application data, automate workflows, and increase 

data-driven decision making. 

Consolidation of Federal Alcohol & Tobacco Tax Jurisdiction +$1,500,000 / +6 FTE 

TTB requests start-up funding to support the Administration’s proposal to consolidate Federal 

alcohol and tobacco tax jurisdiction within the Department of the Treasury and TTB. This initial 

investment will enable TTB to begin hiring the necessary additional enforcement personnel to 

conduct the complex, multi-state investigations associated with contraband cigarette smuggling. 

The requested funding level supports 6 FTE, which will allow TTB to begin hiring auditors, 

investigators, and other program staff. Further, TTB will hire criminal enforcement agents under 

an expansion of its existing interagency agreement with the IRS. This initial investment would 

also enable TTB to initiate any needed rulemaking and guidance, as well as support initial 

research into system requirements and data analytics to improve enforcement targeting. During 

this transition period, and at the proposed staffing level, TTB will also expand its outreach to 

state law enforcement partners and work closely with DOJ on the transfer and continuation of 

existing cases. 
TTB - 7 

1.3 Object Classification (Schedule O) Obligations 

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 53,475 57,092 60,195 

11.5 - Other personnel compensation 910 941 941 

11.5 - Overtime 671 650 639 

11.8 - Special personal services payments 0 0 0 

11.9 - Personnel Compensation (Total) 55,056 58,683 61,775 

12.0 - Personnel benefits 17,695 20,225 21,988 

13.0 - Benefits for former personnel 18 5 5 

Total Personnel and Compensation Benefits $72,769 $78,913 $83,768 

21.0 - Travel and transportation of persons 2,065 2,058 1,919 

22.0 - Transportation of things 28 30 30 

23.1 - Rental payments to GSA 4,098 4,293 4,342 

23.2 - Rental payments to others 8 0 0 

23.3 - Communications, utilities, and miscellaneous charges 841 1,175 1,193 

24.0 - Printing and reproduction 210 315 315 

25.1 - Advisory and assistance services 15,630 14,198 13,845 

25.2 - Other services from non-Federal sources 14,989 12,877 13,540 

25.3 - Other goods and services from Federal sources 9,153 8,750 8,882 

25.4 - Operation and maintenance of facilities 22 22 22 

25.7 - Operation and maintenance of equipment 3,265 2,515 2,565 

26.0 - Supplies and materials 381 350 352 

31.0 - Equipment 3,126 1,795 1,872 

32.0 - Land and structures 193 152 0 

Total Non-Personnel $54,009 $48,530 $48,877 

Total Obligations 1/ $126,778 $127,443 $132,645 

 

Total Full-time Equivalents (FTE) 2/ 495 512 518 

1/ FY 2019 reflect actual obligations totaling $126.8 million, of which $120.6 million was from direct resources (new appropriations, 

carryover from prior years, and a TEOAF transfer) and $6.2 million was from reimbursable resources/offsetting collections. FY 2020 reflects 

anticipated obligations totaling $127.4 million, of which $120.5 million is from direct resources (new appropriations and carryover from prior 

years) and $6.9 million is from reimbursable resources/offsetting collections. FY 2021 reflects anticipated obligations totaling $132.6 million, 

of which $125.7 million is from direct resources (new appropriations and carryover from prior years) and $6.9 million is from reimbursable 

resources/offsetting collections. 

2/ FY 2019 FTE reflects actual total FTE of 495, of which 485 FTE was from direct resources and 10 FTE was from reimbursable 

resources/offsetting collections. FY 2020 reflects anticipated total FTE of 512, of which 502 FTE is anticipated from direct resources and 10 

FTE is anticipated from reimbursable resources/offsetting collections. FY 2021 reflects anticipated total FTE of 518, of which 508 FTE is 

anticipated from direct resources and 10 FTE is anticipated from reimbursable resources/offsetting collections. 
TTB - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU 

SALARIES AND EXPENSES 

For necessary expenses of carrying out section 1111 of the 

Homeland Security Act of 2002, including hire of passenger 

motor vehicles, [$119,600,000] $125,837,000; of which 

$5,000,000 shall remain available until September 30, 2022, of 

which not to exceed $6,000 for official reception and 

representation expenses; and of which not to exceed $50,000 

shall be available for cooperative research and development 

programs for laboratory services; and provision of laboratory 

assistance to State and local agencies with or without 

reimbursement [: Provided, That of the amount appropriated 

under this heading, $5,000,000 shall be for the costs of 

accelerating the processing of formula and label applications: 

Provided further, That of the amount appropriated under this 

heading, $5,000,000, to remain available until September 30, 

2021, shall be for the costs associated with enforcement of the 

trade practice provisions of the Federal Alcohol Administration 

Act (27 U.S.C. 201 et seq.)]. (Department of the Treasury 

Appropriations Act, 2020.)

E – Legislative Proposals 

Government Reform Initiative - Consolidation of Federal Alcohol & Tobacco Tax 

Jurisdiction 

The Administration proposes to transfer primary jurisdiction over Federal tobacco and alcohol 

anti-smuggling laws from the Department of Justice and the Bureau of Alcohol, Tobacco, 

Firearms and Explosives to the Department of the Treasury and TTB. Under the proposal, TTB 

would be responsible for the administration and enforcement of the Jenkins Act of 1949 (as 

amended by the Prevent All Cigarette Trafficking Act of 2009), 15 U.S.C. Chapter 10A, the 

Contraband Cigarette Trafficking Act of 1978, 18 U.S.C. Chapter 114, and the criminal statutes 

involving Liquor Trafficking, 18 U.S.C. Chapter 59. Specific statutory language to effect the 

transfer and facilitate Federal enforcement against tobacco smuggling has been developed in 

consultation with the Secretary of the Treasury and with the Attorney General. 
TTB - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

TTB is responsible for administering and enforcing the sections of the Internal Revenue Code of 

1986 associated with the collection of excise taxes on alcohol, tobacco, firearms, and 

ammunition, and the Federal Alcohol Administration Act, which provides for the regulation of 

the alcohol beverage industry for the protection of U.S. consumers. In essence, TTB administers 

its jurisdiction according to five strategic goals that support economic growth and stability: 1) 

Tax Compliance; 2) Cross-Border Tax Risk; 3) Business Qualification; 4) Labeling 

Modernization; and 5) Training Revitalization. TTB’s strategic goal of Training Revitalization 

directly contributes to Treasury’s Strategic Goal 5 (Achieve Operational Excellence) through 

Strategic Objective 5.1 (Workforce Management) and underpins TTB’s performance across all 

of its goals and objectives. 

TTB’s strategic goals to improve Tax Compliance and address Cross-Border Tax Risk ensure 

that the Federal government has the resources needed to fund national priorities and support 

Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.1 (Tax 

Law Implementation) to administer tax laws to better enable all taxpayers to meet their 

obligations while protecting the integrity of the tax system. The FY 2021 funding level continues 

the investment in a multi-year IT system modernization effort, leveraging technology to improve 

mission outcomes as called for by the President’s Management Agenda. The industries TTB 

regulates have grown significantly in recent years, which present workload and enforcement 

challenges, particularly in light of recent tax reform legislation. Funding is required to address 

outdated tax and regulatory systems to support efficient filing and processing as well as facilitate 

data analytics to timely detect fraud, tax evasion, and critical compliance issues that undermine a 

level playing field. 

Additionally, in support of effective tax administration, the Administration is proposing the 

consolidation of Federal alcohol and tobacco tax jurisdiction within the Department of the 

Treasury to improve mission alignment and focus and, in turn, create tax enforcement 

efficiencies. This proposal calls for the transfer of enforcement authority for the CCTA and the 

Prevent All Cigarette Trafficking (PACT) Act from DOJ to Treasury. These Federal statutes 

were intended, among other things, to protect state and local governments from revenue losses 

from interstate cigarette smuggling as well as stop criminal organizations from profiting by 

smuggling cigarettes across state borders from low-tax states to high-tax states. ATF, which 

currently has primary jurisdiction for CCTA and PACT Act enforcement, has estimated that the 

sale of contraband cigarettes costs Federal, state, and local governments close to $5 billion a year 

in revenue. The FY 2021 funding request represents the initial investment required to begin the 

transfer of these authorities, including preliminary hiring and contract actions to support 

investigations, as well as required rulemaking, IT, and data analytics efforts to effectively 

implement the program and generate leads for future investigations. The full program costs will 

be higher and will be addressed in future budgets. When fully implemented, TTB anticipates that 

the consolidation of CCTA and PACT Act enforcement with TTB’s existing tobacco 

enforcement authorities will result in increased Federal and state tobacco excise tax revenues. 
TTB - 10 

These investments will require tradeoffs across TTB’s enforcement programs. TTB conducts 

trade practice enforcement in the alcohol beverage marketplace in support of the Treasury’s 

Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.4 (Free and Fair 

Trade) to advance a free and fair trade environment for U.S. businesses. At the FY 2021 funding 

level, TTB will rebalance enforcement priorities to sustain an enforcement presence to deter 

prohibited trade practice activities while establishing a CCTA enforcement program, including 

the timely and effective transition of CCTA cases from ATF to TTB. 

TTB’s strategic goals to enhance Business Qualification and implement Labeling Modernization 

ensure that lawful U.S. alcohol businesses are competitive and thriving in the global marketplace 

and support the Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic 

Objective 1.3 (Trusted Currency and Services) to deliver trusted currency and services that 

enable citizens and businesses to participate in the economy. Timely service remains a priority 

for TTB and the businesses it regulates. As the demand for TTB services from these businesses 

continues to rise, and within the FY 2021 resources, TTB will aim to sustain improved service 

times for permit, label, and formula approvals. TTB will combine IT system modernization 

efforts with streamlined application requirements and enhanced guidance to achieve its 

performance goals for customer service. These strategies will help TTB maintain timely service 

by increasing the number of first-time approvals and reducing delays caused by extensive backand-forth with industry members to correct initial applications containing errors.

 
TTB - 11 

B – Budget and Performance by Budget Activity 

2.1.1 – Collect the Revenue Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $52,721 $52,785 $53,560 $53,560 $58,856 $57,513 $62,086 

Unobligated Balances from Prior Years $109 $170 $125 $112 $214 $125 $125 

Transfers In/Out $0 $0 $197 $902 $597 $0 $0 

Offsetting Collections and Reimbursables $3,681 $3,143 $3,217 $3,923 $3,573 $4,176 $4,176 

Collect the Revenue Total $56,511 $56,098 $57,099 $58,497 $63,240 $61,814 $66,387 

FTE Total (Direct and Reimbursable) 223 234 223 212 213 224 232 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Amount of Revenue Collected Per Program 

Dollar 437 414 406 369 339 N/A N/A N/A 

Percent of Voluntary Compliance from 

Large Taxpayers in Filing Tax 

Returns/Payments Timely (by filing) 1/ 

88 87 85 85 DISC N/A DISC DISC 

Percent of Voluntary Compliance from 

Large Taxpayers in Filing Tax 

Returns/Payments Timely (by taxpayer) 1/ 

- - 60 69 69 95 95 95 

Percent of Voluntary Compliance from 

Large Taxpayers in Filing Operational 

Reports Timely (by taxpayer) 1/ 

- - 66 74 76 95 95 95 

Percent of Electronically Filed Tax Returns 

- Pay.gov 2/ 33 33 35 37 41 50 50 60 

Percent of Electronically Filed Operational 

Reports - Pay.gov 38 39 40 42 46 50 50 60 

1/ TTB developed new measures to evaluate and monitor taxpayer compliance for FY 2019, which will calculate compliance rates on a 

taxpayer basis, rather than a per filing basis; TTB also formally added a measure of the compliance rate for operational reports. 

2/ Minor adjustments to prior year data based on data quality review. 

Collect the Revenue Budget and Performance 

($62,086,000 from new direct appropriations, $125,000 from unobligated balances from the 

prior year, and $4,176,000 from reimbursable sources): 

This budget activity includes all tax processing, verification, enforcement, and outreach efforts 

related to administering the Federal tax code for alcohol, tobacco, firearms, and ammunition 

products, and supports Treasury’s Strategic Objective 1.1 (Tax Law Implementation). TTB 

collects approximately $20 billion in Federal tax revenue annually from a tax base of nearly 

32,000 businesses. TTB’s regulated taxpayers include distilleries, breweries, and wineries, which 

have boomed in recent years, as well as manufacturers and importers of tobacco and firearms. 

TTB extends the reach of its enforcement resources through advanced analytics and risk-based 

audits and investigations. To ensure a level playing field for those engaged in the trade of these 

regulated commodities, TTB also takes appropriate enforcement action to detect and address 

diversion activity to ensure all products sold in the marketplace are properly taxpaid. 

Other Resources...................................................................................$4,301,000 

Unobligated Balances from the Prior Year..............................................................$125,000 

Offsetting Collections/Reimbursables................................................................. $4,176,000 

Other resources that fund this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of TTB’s Puerto Rico field office, which 

are offset against the roughly $450 million in taxes collected on the alcohol beverage products 
TTB - 12 

that are manufactured in Puerto Rico and imported to the United States; reimbursement from the 

Community Development Financial Institutions Fund (CDFI) for IT services provided by TTB; 

and funding from the Department of the Treasury’s Executive Office for Asset Forfeiture 

(TEOAF) mandatory account to cover investigative expenses, data systems, and training. 

Description of Performance: 

TTB combines measures and indicators to demonstrate the effectiveness and efficiency with 

which TTB operates its tax administration function, including through facilitating voluntary 

compliance as well as field enforcement efforts to address critical threats to Federal revenues. 

Through FY 2021, TTB’s plans to improve tax compliance include updating its tax filings, 

processes, and technologies; enhancing its capacity to timely identify and address noncompliance through analytics and other detection tools; and continuing to improve taxpayer 

education and outreach. 

The Amount of Revenue Collected per Program Dollar indicator uses annual collections figures 

and the actual expenditures and obligations for collection activities to quantify the efficiency of 

the TTB tax collection program. In FY 2019, TTB achieved a return on investment of $339 for 

every program dollar spent on collection activities. The year-to-year decline represents continued 

decreases in tobacco revenue that, after peaking in FY 2010 following the significant tax rate 

increases enacted in 2009, have steadily declined in line with shifts in consumption patterns, 

product manufacturing, and trade. Annual alcohol revenue is also trending down, likely due to 

the recent tax reform legislation that lowered effective tax rates across all commodities and 

expanded eligibility for reduced rates and credits, currently in effect through December 31, 2020. 

In total, revenue collections are down 4 percent between FY 2018 and FY 2019; however, the 

full impact of these provisions may not yet be known. Going forward, TTB will continue to 

monitor its return on investment for its Collect the Revenue activities as a key indicator, with the 

negative collections trend likely to continue into FY 2020 based on historical data and other 

external factors. 

As the most efficient means of tax collection, fostering voluntary compliance among taxpayers is 

a primary tax administration strategy for TTB. The Percent of Voluntary Compliance from Large 

Taxpayers in Filing Tax Returns and Payments Timely is a key performance metric that shows 

the rate of compliance by large taxpayers (i.e., those that pay more than $50,000 in annual taxes) 

in voluntarily filing their required tax returns and payments on or before the scheduled due date. 

In FY 2019, TTB revised its method for this metric and added a new measure of the Percent of 

Voluntary Compliance from Large Taxpayers in Filing Operational Reports Timely. Under the 
TTB - 13 

new measure methodology, TTB evaluates filing compliance at the taxpayer level, rather than on 

a per filing basis, using multiple compliance factors and strict tolerances based on revenue 

exposure. A taxpayer must meet all factors to be considered compliant for the year. TTB plans to 

use this information to take a risk-driven enforcement approach based on significant patterns of 

non-compliance with filing requirements. 

In FY 2019, TTB achieved a compliance rate of 69 percent from its large taxpayers in filing 

required tax returns and payments, and a compliance rate of 76 percent from its large taxpayers 

in filing required operational reports, both of which fell below the performance target of 95 

percent. Results for FY 2019 are actual values through Q3 FY 2019 (due to data latency issues 

resulting from the high volume of paper filings). Although TTB analysis indicates that this trend 

does not represent a significant revenue risk, as late filings represent the majority of the 

compliance violations, non-compliance undermines the level playing field, which is particularly 

critical for the small producers who comprise the majority of TTB taxpayers. 

Improving voluntary compliance rates has proven challenging given the recent growth in the 

industries TTB regulates. In the last five years, the number of TTB taxpayers has increased over 

60 percent, which has created additional workload and enforcement challenges in maintaining 

industry compliance, particularly in light of recent tax reforms. This growth has cut across 

industry types, with the most significant increases in small businesses entering the alcohol 

industry. Over time, with resource challenges, TTB outreach efforts to educate industry members 

on tax requirements have also decreased. More recently, TTB has also faced competing 

enforcement priorities, including renewed efforts to address illicit trade practice activity in the 

alcohol industry, with directed funding for this purpose enacted in TTB’s budgets in FY 2017 – 

FY 2019. 

In fiscal years 2020-2021, improving compliance rates will remain a priority for TTB. At the 

requested funding level, plans through FY 2021 include refining TTB’s procedures for riskbased reviews of taxpayer accounts, which will include the integration of new analytics tools into 

internal processes to address identified non-compliance. Over the next several years, TTB also 

plans to improve its education and outreach strategies to drive compliant behavior across TTB 

taxpayers, including publishing new online guidance and tools. 

*Estimated result based on data through Q3 FY 2019 due to data latency issues with paper filings 

Large Taxpayer Compliance Rate –  

Returns/Payments (by taxpayer)

Large Taxpayer Compliance Rate –  

Operational Reports (by taxpayer)
TTB - 14 

In FY 2019, to facilitate the alcohol industry’s understanding of and compliance with new tax 

provisions signed into law under the TCJA, TTB maintained a dedicated section on TTB.gov to 

provide Frequently Asked Questions to respond to questions received from industry. As part of a 

coordinated outreach strategy, TTB updated the website on a rolling basis as additional guidance 

was available, which was also promoted through the TTB newsletter, feature articles on 

TTB.gov, and interviews with industry press and trade associations. In FY 2020, to support 

industry compliance, TTB will continue to actively manage its online guidance to provide 

current information on rules and requirements in response to any Congressional action to extend 

the craft beverage modernization provisions beyond December 31, 2020. 

TTB will also focus on improving tax compliance through developing the integrated, modernized 

system supported by the FY 2021 budget request. TTB relies on Pay.gov, a Bureau of the Fiscal 

Service system designed for government payments, for the electronic filing of tax returns and 

operational reports. TTB’s two measures to monitor the Electronic Filing Rates for Tax Returns 

and Operational Reports in Pay.gov support ongoing efforts to reduce paper filings. E-filing 

rates for tax returns and operational reports remain well below target, especially compared to 

other TTB e-filing systems. These low rates – which ended the year at 41 percent of tax returns 

and 46 percent of operational reports submitted electronically – impede TTB’s ability to timely 

and effectively detect and address non-compliance and add costs to making the data available for 

routine reconciliation and advanced analytics. Additional Pay.gov promotion may improve efiling rates in the near term to achieve its FY 2020 target of 50 percent, although more significant 

tax system modernization is likely required for TTB to reach its FY 2021 target of 60 percent. 

At the FY 2021 funding level, and informed by ongoing process improvement efforts, TTB 

intends to continue implementing phased releases to its tax system, including developing a 

custom external interface for electronic tax filings to increase e-filing rates and enhancing 

internal workflows to support TTB tax administration. In FY 2019, TTB deployed system 

releases to increase automation and address inefficiencies related to posting paper tax filings and 

amended tax returns, which are time-intensive, manual processes. Combined, these releases 

allow for more timely detection of non-compliance and enable TTB specialists to focus on higher 

priority, analytical work rather than manual processes. 

In addition, in FY 2019, due to the labor-intensive nature of TTB’s current tax administration 

processes, and to ensure that the resources dedicated to tax administration are commensurate 

with revenue risk, TTB initiated a broad-based evaluation of its tax return and operational report 

requirements. The evaluation generated recommendations to significantly decrease the amount of 

information collected as well as the frequency with which it is collected, reducing burden on 

industry and TTB in line with the President’s Management Agenda. The evaluation also included 

recommendations to address increased underreporting risks created by new tax reform 

provisions, which have been extended through December 31, 2020. This multi-year initiative 

will continue through FY 2021 to fully implement the required form and regulatory updates to 

achieve substantial burden reductions. These efforts should also boost overall tax compliance, 

particularly if developed in tandem with the planned modernization of TTB’s tax systems. 

Effective TTB tax administration also requires taking a data-driven approach to timely 

identifying potential tax evasion and fraud, which is even more critical in light of recent tax 
TTB - 15 

reform legislation. At present, resource-intensive manual analysis and reconciliation of multiple 

reports and returns, in combination with other data sources, by specialists, auditors, and 

investigators are required to detect and address high-risk activity. In fiscal years 2020 and 2021, 

TTB will focus on enhancing its analytics tools to facilitate TTB’s use of its tax information, in 

combination with other data sources such as import and export data, to more effectively target its 

limited resources to known evasion schemes, particularly those involving the cross-border trade 

in alcohol and tobacco products, which poses a significant risk to Federal revenues. 

Given the amount of import-related data that has become available in recent years through the 

International Trade Data System (ITDS) – and the new revenue risks posed by the import-related 

provisions of the recent tax reform legislation – TTB focused its data-driven enforcement efforts 

in FY 2019 on imported alcohol and tobacco products. In FY 2019, TTB made progress in 

mining this data and enhancing its analytics tools to detect illicit activity, such as importers 

operating without a TTB permit and importers misclassifying or underreporting entries of 

alcohol and tobacco products to CBP to evade excise taxes. 

In fiscal years 2020-2021, TTB will continue its efforts to improve import enforcement using 

ITDS data, including in conjunction with CBP’s Commercial Targeting and Analysis Center 

(CTAC), to detect and address the misclassification of imports to evade taxes. CTAC is an 

interagency center that provides access to a wide range of data sources about imports and 

exports, including real-time data on the cross-border trade of TTB-regulated products. Through 

FY 2021, TTB also plans to ensure continued coordination with CBP, including through the 

exchange and use of the data needed by both agencies to ensure that domestic and foreign 

producers are not improperly paying reduced tax rates or receiving credits on quantities 

exceeding those allowed by law. 

 
TTB - 16 

2.1.2 – Protect the Public Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Enacted Request 

Appropriated Resources $47,279 $53,654 $57,879 $57,879 $60,744 $62,087 $63,751 

Unobligated Balances from Prior Years $109 $170 $125 $4,166 $4,865 $4,476 $3,783 

Transfers In/Out $0 $0 $0 $87 $0 $0 $0 

Offsetting Collections and Reimbursables $2,451 $2,577 $2,637 $2,366 $2,666 $3,261 $3,261 

Protect the Public Total $49,839 $56,401 $60,641 $64,498 $68,275 $69,824 $70,795 

FTE Total (Direct and Reimbursable) 243 246 265 273 282 288 286 

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents, reimbursables, and user fees. 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Actual Target Target Target 

Percentage of Permit Applications 

Processed within Service Standards 

(75 days) 

47 32 48 71 58 85 85 85 

Initial Error Rate for Permit Applications 

1/ 77 81 83 80 71 25 25 25 

Percent of Electronically Filed Permit 

Applications 2/ 85 81 85 87 89 87 90 90 

Customer Satisfaction Rate with eGov 

Systems - Permits Online 64 54 68 77 68 80 80 80 

Percentage of Alcohol Beverage Label and 

Formula Applications Processed within 

Service Standards (15 days) 3/ 

80 80 62 84 48 85 85 85 

Initial Error Rate for Label and Formula 

Applications 42 44 43 40 37 25 25 25 

Percent of Electronically Filed Label and 

Formula Applications 94 97 98 98 99 95 95 95 

Customer Satisfaction Rate with eGov 

Systems - COLAs Online 71 74 82 81 77 80 80 80 

Customer Satisfaction Rate with eGov 

Systems - Formulas Online 4/ 48 58 70 79 70 80 80 80 

1/ Result for FY 2019 likely lower than reported due to a data quality issue in Q4 based on the incorrect application of “corrections” status on 

certain permit applications. 

2/ Revised actuals for prior years due to data quality review and cleanup of data source. 

3/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. For FY 2018, TTB 

established new service standards of 15 days for both labels and formulas based on a significant spike in submissions. In FY 2017, the service 

standard was 10 days for both labels and formulas. Between FY 2014 - 2016, the service standard was 30 days for labels and 45 days for 

formulas. 

4/ Revised actual for FY 2018 due to error in calculation; results represent beverage alcohol formula filers only (nonbeverage alcohol formula 

filers are excluded) 

Protect the Public Budget and Performance 

($63,751,000 from new direct appropriations, $3,783,000 from unobligated balances from the 

prior year, and $3,261,000 from reimbursable sources): 

This budget activity funds the programs that ensure the integrity of the products and industry 

members in the marketplace; promote compliance with Federal laws and regulations by more 
TTB - 17 

than 100,000 businesses that TTB regulates; facilitate fair and lawful domestic and international 

trade in the alcohol and tobacco commodities; and provide full and accurate alcohol beverage 

product information to the public as a means to prevent consumer deception. These activities 

support Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.3 

(Trusted Currency and Services) to deliver trusted currency and services that enable citizens and 

businesses to participate in the economy as well as Strategic Objective 1.4 (Free and Fair Trade) 

to advance a free and fair trade environment for U.S. businesses. 

Other Resources...................................................................................$7,044,000 

Unobligated Balances from the Prior Year...........................................................$3,783,000 

Offsetting Collections/Reimbursables................................................................. $3,261,000 

Other resources that support this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of the TTB Puerto Rico field office, which 

are offset against the roughly $450 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported into the United States; reimbursement by the 

Community Development Financial Institutions Fund (CDFI) for TTB’s IT services; and funding 

from the Department of the Treasury’s Executive Office for Asset Forfeiture (TEOAF) 

mandatory account to cover investigative expenses, data systems, and training. 

Description of Performance: 

TTB uses a combination of measures to monitor the degree to which the bureau is meeting its 

established service standards for permit, label, and formula applications; its effectiveness in 

reducing error rates on applications to address processing delays caused by incomplete or noncompliant submissions; and the level of satisfaction that industry members have with TTB’s 

online systems. TTB’s strategies to achieve its performance targets for these measures include a 

combination of improving internal processes, modernizing its IT systems, streamlining 

application requirements, and providing clearer guidance to industry members. 

TTB monitors its timeliness in processing permit applications through its measure of the 

Percentage of Permit Applications Processed within Service Standards. As businesses rely on 

accurate information related to TTB service delivery in their operational planning, this measure 

provides important data related to a key outcome for TTB and its stakeholders. In recent years, 

the volume of submissions, particularly in the more complex application types related to 

producing alcohol beverage products, has caused approval times to increase. Approval times 

spiked to an average of 122 days in FY 2016, and over 200 days for alcohol producer 

applications, creating potential financial hardships for these applicants. TTB started to reduce 

approval times in FY 2017 and, to build on these performance improvements, TTB and Treasury 

established a two-year Agency Priority Goal (APG) for FY 2018 – 2019 to improve the 

timeliness and consistency of service levels by reducing average processing times for new permit 

applications by 20 percent and achieving its service standard for 85 percent of applicants. 

TTB met one of its two APG targets by the end of FY 2019, reducing average approval times by 

20 percent from 96 days in FY 2017 to 75 days in FY 2019. However, TTB fell short of its 

second target to achieve the 75-day service standard for 85 percent of permit applicants. During 

the 35-day partial government shutdown, with industry continuing to file for Federal permit 

approval, the backlog of pending applications continued to increase and age. As a result, for 

FY 2019, TTB issued 58 percent of permit applications within its 75-day service standard. 
TTB - 18 

Through focused recovery efforts, TTB made significant progress in the second half of the fiscal 

year in reducing the backlog of pending applications, from a high of nearly 3,000 applications in 

February 2019 to approximately 1,500 at year-end. These improvements brought down original 

application processing times for alcohol manufacturers from post-shutdown peaks of over 100 

days, with TTB achieving an average of 84 days for FY 2019 for wineries, breweries, and 

distilleries. TTB ended the fiscal year with 68 percent of applications issued within 75 days in 

September 2019, which positions TTB to achieve this priority goal target in FY 2020. 

Achieving and sustaining these performance improvements in FY 2020 and beyond will remain a 

challenge. With priority attention placed on reducing backlogs, TTB had to delay many of its 

crosscutting initiatives in FY 2019 to improve its permitting business processes. These initiatives 

will continue into next year and, through FY 2021, TTB will focus on achieving its performance 

target through Permits Online system enhancements and continued process improvements. These 

include implementing new permit application dashboards that display key metrics on the status 

and age of pending applications to support effective management of pending applications. TTB 

will also continue to update its procedures to screen permit applicants, refining the risk criteria, 

tools, and procedures used to vet applicants for suitability to hold a Federal permit. In fiscal 

years 2020 and 2021, TTB will continue to use the results of its field investigations to inform its 

risk factors to improve the timeliness and effectiveness of its business qualification process. 

TTB measures the Initial Error Rate on Permit Applications, which tracks how many 

applications are submitted either incomplete or with errors, to develop directed strategies to 

maintain timely service by increasing the number of first-time permit application approvals. 

Errors increase the overall workload volume, requiring extensive back-and-forth with applicants 

to ensure the application is complete and verified, which adds to the total processing time. 

Over the last five years, TTB’s ability to meet its service standard for new permit applications 

has been challenged by high error rates, which had persistently remained around 80 percent. 

Error rates are much higher for prospective breweries, wineries, and distilleries, which have 

more complex applications compared to non-manufacturers (i.e., wholesalers and importers). 

With the release of the redesigned Permits Online system and publication of extensive online 

guidance in FY 2018, as well as the permit application changes implemented to date, TTB was 

able to bend the curve on the high volume of applications submitted with errors. For FY 2019, 

the error rate on permit applications decreased to 71 percent, with improvements achieved across 

most application types. 

Further, to improve both error rates and approval times, TTB continued to work with experts in 

Treasury to implement recommendations from a Lean Six Sigma review of its process for 

returning permit applications for corrections. In FY 2019, TTB piloted new tools and procedures 

to streamline the application return process and standardize internal procedures. In fiscal years 

2020 and 2021, to continue making progress toward its target of 25 percent, TTB will finalize 

implementation of the identified process improvements, including increased standardization, 

effective workload balancing, and system enhancements, to provide greater consistency in 

reviews and improve industry interactions with TTB. 

According to its measure of the Percent of Electronically Filed Permit Applications, which 

tracks the electronic filing rate for new business applications, TTB received 89 percent of permit 
TTB - 19 

applications via Permits Online in FY 2019. TTB attributes the year-to-year increase to TTB.gov 

improvements following the July 2018 release of the redesigned Permits Online system, which 

provided improved guidance for first-time filers to help them navigate the application process. 

These system changes, combined with the extensive outreach and online training for industry 

provided with the release, will support TTB in achieving its FY 2020 and FY 2021 targets of 

achieving and sustaining an electronic filing rate of 90 percent or greater and reducing the initial 

error rate on permit applications to 25 percent. 

 

In alignment with its strategy to optimize its electronic filing systems, TTB measures Customer 

Satisfaction with the Permits Online eGov System through an e-mail survey to assess how 

satisfied businesses are in applying for a permit or registration through Permits Online. In FY 

2019, system satisfaction rates decreased 9 percent, from 77 percent in FY 2018 to 68 percent in 

FY 2019. Notably, satisfaction rebounded significantly in Q4 FY 2019 to 73 percent, which 

correlates with improved permit approval times later in the year. Although still below the annual 

target of 80 percent, TTB expects the positive trend to continue in line with overall 

improvements in service levels, and as TTB initiates broader IT system modernization efforts in 

FY 2020 and FY 2021 to provide applicants with an integrated online filing experience. TTB 

will also focus on improving the level of service provided to customers seeking live assistance 

with the permit application process via TTB’s call center. 

Broader changes to TTB’s application requirements, some of which will require rulemaking, are 

underway and may need to be fully implemented before TTB can achieve and sustain its targeted 

performance levels for FY 2020 and 2021. These actions are being informed by industry 

proposals submitted in response to the Department of the Treasury’s June 2017 Request for 

Information, which asked the public to submit views and recommendations for Treasury 

regulations that can be eliminated, modified, or streamlined to reduce burdens. In FY 2019, TTB 

continued to make progress towards simplifying and streamlining its permit applications. Using a 

multi-disciplinary team, TTB evaluated its permit requirements and developed recommendations 

to modernize and streamline applications based on TTB’s statutory responsibilities and 

enforcement needs. In FY 2019, TTB continued to implement application changes to reduce 

filing burden and, to date, has significantly shortened the Personnel Questionnaire and eliminated 

a number of application questions and required supporting documentation for many permit types. 

These efforts will carry forward into FY 2020, with ongoing evaluation of options to simplify the 

Federal permitting and registration process by reducing open text fields and requirements to 

upload supporting documentation, including those changes that can be implemented in advance 

of rulemaking. TTB intends to propose rulemaking in FY 2020 for more significant 

modifications to the permit application process, with the aim of substantial burden reductions 

both for industry and TTB in FY 2021. In addition to reducing compliance burdens, a key 

priority on the President’s Management Agenda, simplifying and clarifying TTB’s regulatory 

requirements should also result in a reduced volume of initial permit applications submitted with 

errors, which would contribute to improved approval times. 

Given the importance of timely TTB approvals for alcohol beverage product labeling and the 

negative impact that delays have on U.S. businesses, TTB monitors its ability to provide timely 

and consistent service through its measure of the Percentage of Alcohol Beverage Label and 
TTB - 20 

Formula Applications Processed within Service Standards. TTB combines label and formula 

applications in this measure given the interdependent nature of these approvals. 

Significant increases in label and formula submissions that began late in FY 2017 continued in 

FY 2019, with TTB receiving nearly 199,000 label applications and well over 20,000 formula 

applications, reflecting the ongoing expansion and product innovation within the alcohol 

beverage industry. In just the last two years, submission volume has increased nearly 20 percent 

for labels and nearly 40 percent for formulas. Innovation in the craft beer and spirits sectors 

continues to drive growth in label applications, with an increase of approximately 10 percent for 

malt beverage and distilled spirits applications in FY 2019. Although all alcohol beverage 

commodities contributed to the increase in formula submissions, wine and malt beverage 

submissions increased at the fastest rate, up roughly 35 percent compared to last year, based on 

the use of innovative ingredients and market trends toward flavored products including cider, 

mead, and malt beverages. 

 

In light of customer expectations, as well as planned process improvements supported by funding 

enacted in the FY 2019 budget directed toward accelerating approval times, TTB maintained its 

service standards for beverage alcohol labels and formulas at 15 days in FY 2019. Despite 

increased submission volume, the formulation area rebounded quickly from the government 

shutdown to reach targeted performance levels, and ended the year at 84 percent of formula 

applications meeting the 15‐day standard, nearly meeting the target of 85 percent. This was 

achieved through effective monitoring and management of the application backlog combined 

with strategic workforce management to efficiently deploy staffing. However, despite employing 

similar strategies, label performance fell short of target in FY 2019. While TTB began the fiscal 

year with 85 percent of label 

applications meeting the 15‐day 

service standard, results in 

subsequent quarters fell well below 

target and trended negatively quarter‐

to‐quarter, with just 45 percent 

meeting the 15‐day service standard 

as of year-end. Staffing turnover in 

labeling specialists coupled with the 

year‐over‐year increase in 

application submissions contributed 

to the challenges in recovering from 

the government shutdown. TTB 

expects results to trend positively in FY 2020 as backlogs are cleared through continuous queue 

management and strategic resource alignment. As a result, TTB expects to maintain its 15-day 

service standard for label and formula applications, and will work toward its FY 2020 and FY 

2021 targets of meeting this standard for 85 percent of applications through strategic initiatives 

*Es tima ted val ues

24 27

8 12 18

53

35

5 6

10

30

29

13 7

4

FY 2015* FY 2016 FY 2017 FY 2018 FY 2019

Total Average Review Time(in calendar days)

Labels Formulas Lab Analysis

107

91

26 25 32

Total Average Review Time (in calendar days)
TTB - 21 

to upgrade online systems and guidance, with particular focus on reducing application errors that 

increase total workload and challenge timely processing. 

Application errors are a key driver of label and formula processing times, as additional review is 

required for each resubmitted application. TTB relies on its measure of the Initial Error Rate of 

Label and Formula Applications to monitor error trends and evaluate the effect of system and 

guidance enhancements on first-time approvals. In FY 2019, approximately 37 percent of label 

and formula applications were submitted incomplete or with errors, falling short of the targeted 

performance level of 25 percent, although demonstrating year-to-year progress. TTB has 

continued to use a data-driven strategy to address frequent application errors, with the goal of 

increasing the number of applications that do not need to be returned for correction. In FY 2019, 

TTB implemented a new “conditionally approved” status in COLAs Online, enabling industry to 

accept minor technical changes to a label application without requiring a resubmission. Results 

indicate that the changes implemented to date have proven effective, with error rates dropping 

below 40 percent, and down 7 percent for formulas and 6 percent for labels since Q1 FY 2018. 

In FY 2020 and FY 2021, at the requested funding level, TTB intends to reduce error rates by 

expanding and improving system-based validations and online guidance features. These include 

detailed examples of compliant label and formula submissions by commodity as well as webbased tools to make it easier for industry members to determine if their products require TTB 

formula approval. TTB also plans to continue to engage with industry trade associations to 

enhance its strategies for reducing targeted application errors. Further, TTB intends to update the 

information on processing times available to industry on TTB.gov, which will publish TTB’s 

service standards to external customers and provide data on how error rates negatively affect 

processing times to incentivize correct submissions. 

In addition, TTB continued its initiative to modernize Federal alcohol beverage labeling 

regulations to reflect current TTB policy and modern industry practices. In FY 2019, TTB 

published a notice of proposed rulemaking intended to consolidate, clarify, and simplify labeling 

requirements, which received approximately 1,200 industry comments. Through this rulemaking, 

*Adjusted historic data to reflect the 15-day service standard for FY 2018 to support trend analysis; 

 see Part II, Goal 2 performance table for performance levels at annual service standards

Labels & Formulas Meeting Service Standard (<15 days)
TTB - 22 

TTB is seeking to provide additional guidance to industry that, combined with proposed burdenreducing measures, should contribute to more complete and accurate label and formula 

applications. TTB anticipates proceeding with final rulemaking in FY 2020 to codify certain 

proposals that are liberalizing and received broad industry consensus. 

To be successful in these strategies, TTB must maintain high rates of electronic filing for label 

and formula applications. According to its measure of the Percent of Electronically Filed Label 

and Formula Applications, TTB now receives 99 percent of applications via COLAs Online and 

Formulas Online, indicating that continued focus on system validations is warranted and will 

support performance goals in increasing accurate applications and accelerating approval times. 

Going forward, at the FY 2021 requested funding level, TTB will continue to make iterative 

enhancements to COLAs Online and Formulas Online, informed by user testing and feedback, 

which will support advanced help features and system-based validations to reduce application 

errors. 

System updates released in FY 2019 appear to have had limited influence on user satisfaction 

with TTB’s electronic filing systems. Through its new measures of Customer Satisfaction with 

COLAs Online and Customer Satisfaction with Formulas Online, TTB monitors user satisfaction 

with the process of submitting an application through its eGov systems, collecting responses via 

e-mail survey to assess factors such as ease of access, guidance, and overall experience. In FY 

2019, satisfaction rates decreased significantly, from 81 percent to 77 percent for COLAs Online 

users and 79 percent to 70 percent for Formulas Online users. TTB attributes these declines to 

industry dissatisfaction with increased processing times and other service challenges following 

the partial government shutdown, and anticipates that performance will improve through FY 

2020 in line with service improvements. Further, TTB expects that planned system 

improvements and regular review of survey feedback in FY 2020 and FY 2021 will help TTB 

reach and sustain its user satisfaction target of 80 percent and continue to attract users to its 

online systems to maintain electronic filing rates above its target of 95 percent. 

C – Changes in Performance Measures 

TTB has no proposed changes to its performance measures. 

D – Evidence-Building Activity 

Through its Balanced Scorecard strategic management framework, TTB maintains a culture of 

continuous improvement that employs data to direct strategy, inform policy, and drive innovation 

to improve program delivery. 

Implementation of Craft Beverage Modernization Tax Reform Provisions: Since the Craft 

Beverage Modernization and Tax Reform provisions of the TCJA took effect in January 2018, 

TTB has engaged in a data-driven enforcement approach, in coordination with CBP, to address 

the near-term revenue risk posed by the tax reform import-related provisions. In FY 2019, TTB 

focused its efforts on developing analytic tools using its tax data in conjunction with the 

information available through the International Trade Data System to timely detect imports 

improperly taking reduced rates or tax credits at the time of entry. 
TTB - 23 

In FY 2020, with the extension of the craft beverage modernization provisions to December 31, 

2020, TTB plans to further improve cooperation and information sharing with CBP to identify 

methods to timely detect and address potential issues, with a particular emphasis on maintaining 

oversight of controlled groups containing both domestic and foreign producers to ensure that the 

applicable reduced rate and tax credit limitations are not exceeded. TTB will also continue to 

leverage interagency partnerships, such as CBP’s Commercial Targeting and Analysis Center, to 

increase the number and effectiveness of its analytics-driven cases, including through use of realtime data on the cross-border trade of TTB-regulated products to identify potential tax evasion 

and flag shipments for inspection by CBP at the ports. 

Federal Permit/Registration/Notice Requirements: In FY 2019, TTB continued its evaluation of 

Federal application requirements for alcohol importers, wholesalers, and manufacturers and 

tobacco wholesalers and manufacturers. TTB used a multi-disciplinary team to conduct an 

internal evaluation of current permit application requirements to determine areas that could be 

eliminated or modified to reduce burden on industry and TTB without impeding effective 

screening and qualification processes to protect Federal revenues. Throughout the evaluation, 

TTB relied on interviews with subject matter experts as well as data, including application error 

rates and areas of frequent noncompliance in field investigations, to inform its analysis and 

recommendations. To date, several burden-reducing measures have already been implemented, 

with additional interim updates planned for FY 2020 until more significant changes can be made 

following the completion of planned rulemaking. 

Federal Alcohol and Tobacco Tax Requirements: In FY 2019, TTB completed an initial 

evaluation of its tax return and operational report filing requirements. At present, resourceintensive manual analyses and reconciliation of multiple reports and returns, in combination with 

other data sources, are required to detect and address high-risk activity. TTB used a multidisciplinary team to review its tax filings to lessen burden on industry while improving the 

information available to TTB for tax administration and incorporation into advanced analytics 

and other tools. The evaluation generated recommendations to significantly reduce requirements 

to decrease both the amount of information collected as well as the frequency with which it is 

collected. The evaluation also included recommendations to address increased risks to 

underreporting caused by recent tax reform provisions, recently extended to December 31, 2020. 

This multi-year initiative, which TTB will continue through FY 2021, will require form and 

regulatory updates to fully implement. 

Section III – Additional Information 

A – Summary of Capital Investments 

Information Technology 

TTB’s Strategic Plan establishes the vision and objectives for the bureau in the business context. 

TTB’s Information Technology (IT) Strategic Plan is a five-year plan based on its business 

strategy, which includes the bureau’s mission, vision, goals, and objectives from an IT 

perspective. This plan charts the course the bureau will follow in the coming years to develop 

and implement IT solutions that are aimed at streamlining the collection of data, leveraging web 

technologies, and continuing to make the internet the method of choice for the reporting and 

exchanging of information between businesses and TTB. By aligning business and technical 
TTB - 24 

strategy, TTB is able to leverage technology to enable the bureau to meet its objectives in the 

most efficient and cost-effective manner while identifying ways to minimize system redundancy. 

TTB has no major IT investments based on the OMB and the Department of Treasury criteria. 

Several non-major investments, however, directly support the mission, strategy, and day-to-day 

operations of the bureau. These include: 

TTB Tax System: This investment consists of several component applications that ensure fair 

and proper collection of revenue from the industry members for alcohol, tobacco, firearms, and 

ammunition excise taxes and to ensure compliance with the excise tax regulations. 

TTB Regulatory System: This investment includes applications that streamline the beverage 

and nonbeverage alcohol formula approval process and COLA issuance for tax and regulatory 

compliance. 

TTB General Support Services: This investment provides TTB users with the infrastructure 

applications necessary to conduct daily business. 

TTB Enterprise Architecture: This investment supports strategic management of IT operations 

(e.g., business process redesign efforts not part of an individual investment, enterprise 

architecture development, capital planning and investment control processes, procurement 

management, and IT policy development and implementation) and costs for Chief Information 

Officer functions. 

In addition to leveraging IT to support the mission, strategy, and day-to-day operations of the 

bureau, TTB supports and maintains strategy alignment with OMB and Treasury through 

enterprise-wide IT initiatives. These include: Cyber Security; IT Infrastructure; Electronic 

Identity and Access Management (HSPD-12); Enterprise-wide Contracts and Services; and 

Program Metrics and Milestones. 

Scientific Equipment for Laboratories 

This investment will enable TTB’s chemists to continue to provide accurate and reproducible 

scientific data and laboratory results to support regulatory compliance, tax enforcement, tax 

classification, rulemaking, and investigations for both the alcohol and tobacco commodities. 

Laboratory instruments require periodic replacement, as they have finite lifecycles due to use and 

as advances in scientific technology render older instruments obsolete. Periodic replacement of 

the existing technologies is essential for TTB laboratories to remain state-of-the-art and effective 

to support the bureau’s mission, strategy, and day-to-day operations. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: https://home.treasury.gov/about/budget-financial-reportingplanning-and-performance/budget-requestannual-performance-plan-and-reports/summary-ofcapital-investments. 


Department of the Treasury 

Bureau of the Fiscal Service 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
Fiscal – 2 

Table of Contents

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

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

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

1.1 – Appropriations Detail Table .............................................................................................. 4

1.2 – Budget Adjustments Table ................................................................................................. 4

C – Budget Increases and Decreases Description ....................................................................... 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

1.4 – Permanent, Indefinite Appropriations Table ...................................................................... 9

E – Legislative Proposals ............................................................................................................ 9

Section II – Annual Performance Plan and Report ................................................................. 13

A – Strategic Alignment ........................................................................................................... 13

B – Budget and Performance by Budget Activity .................................................................... 19

2.1.1 – Accounting and Reporting Resources and Measures .................................................... 19

Accounting and Reporting Budget and Performance ............................................................... 19

2.1.2 – Collections Resources and Measures ............................................................................ 21

Collections Budget and Performance ........................................................................................ 21

2.1.3 – Payments Resources and Measures .............................................................................. 23

Payments Budget and Performance .......................................................................................... 23

2.1.4 – Retail Securities Services Resources and Measures ..................................................... 25

Retail Securities Services Budget and Performance ................................................................. 25

Matured Unredeemed Debt (MUD) .......................................................................................... 26

2.1.5 – Wholesale Securities Services Resources and Measures .............................................. 27

Wholesale Securities Services Budget and Performance .......................................................... 27

2.1.6 – Debt Collection Resources and Measures ..................................................................... 28

Debt Collection Budget and Performance ................................................................................ 28

C – Changes in Performance Measures .................................................................................... 29

D– Evidence-Building Activity ................................................................................................ 29

Section III – Additional Information ........................................................................................ 31

A – Summary of Capital Investments ....................................................................................... 31
Fiscal – 3 

Section I – Budget Request 

A – Mission Statement 

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

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

B – Summary of the Request 

The Bureau of the Fiscal Service (Fiscal Service) finances the Federal Government and touches 

the lives of every American. In FY 2019, Fiscal Service collected nearly $4.3 trillion in revenue, 

issued more than 1.2 billion payments to over 120 million Americans, and conducted 325 

auctions that sold $11.7 trillion in Treasury securities to finance the Federal Government. Fiscal 

Service accounted for the Nation’s $23 trillion public debt down to the penny, every day. 

The FY 2021 request for the Fiscal Service is $360.2 million. The Budget ensures the viability 

of the government’s National Financial Critical Infrastructure (NFCI) that finances Federal 

operations, collects revenue, disburses payments, and reports on the government’s financial 

position. Because of Fiscal Service’s central role in government-wide financial operations, the 

budget also supports Treasury’s leadership in transforming Federal financial management to 

become more efficient, more accurate and deliver better service to citizens. 

The Budget aligns closely with Treasury’s strategic goal to transform government-wide financial 

stewardship by improving the accuracy and availability of financial information and 

implementing new, innovative financial practices. Included in the Budget are Fiscal Service’s 

efforts to streamline the government’s audit processes and reduce intra-governmental accounting 

differences that stand in the way of a clean audit opinion on the Financial Report of the U.S. 

Government. Throughout all of these initiatives, Fiscal Service integrates innovation and 

standardization to promote efficiency and achieve economies-of-scale. Fiscal Service has set 

ambitious goals for all-electronic transactions between the bureau, Federal agencies and the 

public to improve efficiency, security and enable the application of higher levels of automation, 

such as robotics and artificial intelligence. Supporting the President’s Management Agenda, 

Fiscal Service is working within the Federal community to gain the long-term designation for the 

Sharing Quality Services CAP Goal’s core financial management Quality Service Management 

Office. This office would be ultimately responsible for operating the Federal marketplace for 

quality core financial service offerings available to Federal agencies. 

Treasury’s strategic goal to achieve operational excellence by strengthening the resiliency of our 

infrastructure and enhancing the customer value and experience is also supported by the Budget. 

Included is an initiative to strengthen the bureau’s cybersecurity posture by enhancing our ability 

to identify threats to the national critical infrastructure, counter them, and quickly reconstitute 

operations if necessary. Also included is our initiative to help Americans identify and recover 

their savings bonds that have matured, but remain unredeemed. Additionally, Fiscal Service 

leads Treasury’s Agency Priority Goal to improve the public’s experience by increasing 

electronic payments and reducing paper checks. 
Fiscal – 4 

1.1 – Appropriations Detail Table 

1.2 – Budget Adjustments Table 

C – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................................+$7,698,000 / +0 FTE 

Pay Annualization (3.1 percent) +$1,666,000 / +0 FTE 

Funds are requested for annualization of the January 2020 3.1% average pay raise. 

Dollars in Thousands

Appropriated Resources

New Appropriated Resources FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Accounting and Reporting 371 $95,175 384 $98,937 398 $102,877 3.6% 3.98%

Collections 156 $42,166 161 $37,948 161 $41,077 0.0% 8.25%

Payments 468 $117,581 486 $123,015 490 $121,519 0.8% -1.22%

Retail Securities Services 388 $59,381 410 $58,403 412 $61,231 0.5% 4.84%

Wholesale Securities Services 112 $23,977 116 $21,977 116 $23,496 0.0% 6.91%

Matured Unredeemed Debt /1 0 $0 0 $25,000 5 $10,000 NA -60.00%

Subtotal New Appropriated 

Resources 1,495 $338,280 1,557 $365,280 1,582 $360,200 1.61% -1.39%

O ther Resources

Reimbursable 377 $384,771 412 $400,000 412 $402,000 0.0% 0.50%

Unobligated Balances from Prior Years 0 $71,815 0 $91,922 0 $99,922 NA 8.7%

Subtotal O ther Resources 377 $456,586 412 $491,922 412 $501,922 0.0% 2.03%

Total Budgetary Resources 1,872 794,866 1,969 $857,202 1,994 $862,122 1.27% 0.57%

Note: FY 2019 Other Resources and Full-time Equivalents (FTE) reflect actuals. 

/1 FY 2020 Enacted includes $25 million, available until expended, appropriated by P.L. 116-93, Consolidated Appropriations Act, 2020

% Change

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

O perating Plan Enacted Request
Fiscal – 5 

Pay Raise (1.0 percent in 2021) +$1,625,000 / +0 FTE 

Funds are requested for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$1,901,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$2,506,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Non-Recurring Costs..........................................................................-$32,796,000 / -0 FTE 

Reduce Contractual Services -$7,796,000 / -0 FTE 

Reductions or realignments of Fiscal Service operations due to efficiencies identified in 

contracting support and to support the bureau’s hiring plans. 

Matured Unredeemed Debt -$25,000,000 / -0 FTE 

United States Savings Bonds that have reached final maturity and stopped earning interest are 

considered Matured Unredeemed Debt (MUD). As of the end of FY 2019, the MUD balance 

had reached $25.7 billion. The Consolidated Appropriations Act, 2020, (P.L. 116-93) provided 

$25 million, available until expended, for the digitization of records of matured savings bonds 

that have not been redeemed. This adjustment removes the FY 2020 appropriation from the FY 

2021 base. Continued MUD efforts in FY 2021 are included in the Program Increases section. 

Other Adjustments............................................................................+$1,805,000 / +13 FTE 

Annualization of Hires +$1,805,000 / +13 FTE 

Funds are requested for annualization of salary and benefits for hires that occur during FY 2020. 

These hires support the bureau’s hiring priorities to reach targeted staffing levels. 

Program Increases ..................................................................................+$18,213,000 / +12 FTE 

Quality Service Management Office (QSMO) +$5,000,000 / +7 FTE 

This funding supports the President’s Management Agenda (PMA), and the Sharing Quality 

Services Cross-Agency Priority (CAP) Goal 5. The PMA, Sharing Quality Services CAP Goal 5 

strives to achieve operational and performance cost savings across administrative services. In 

FY 2019, OMB pre-designated Department of the Treasury as the QSMO for Financial 

Management (FM). Fiscal Service is leveraging existing Treasury authorities and in-house 

expertise to create and implement a readiness assessment process for agencies and legacy 

financial management shared service providers. As guiding principles, Fiscal Service will 

operate with a focus on customer experience, promote the strategic value of data and deliver 

progress using agile processes.

Cybersecurity +$3,213,000 / +0 FTE 

This request provides continued support of a phased approach to transition NFCI systems 

currently hosted and developed with outdated technology to new, more modern solutions that 

will support the security, resiliency, and agility efforts. Specifically, additional funding is 

requested to expedite the transition of the Trusted Internet Connection to co-located data centers, 

which provides secure connectivity for data and information. Additional funding will also 
Fiscal – 6 

support enhanced data encryption and other remediation efforts identified through the bureau’s 

on-going Cyber Clean initiative. These efforts are critical to allowing Fiscal Service to 

accelerate cloud adoption, which will provide for enhanced security as well as improved 

availability, reliability, and resiliency of information services. 

Matured Unredeemed Debt (MUD) +$10,000,000 / +5 FTE 

Funds are requested to continue efforts to encourage bond owners to cash their matured, 

unredeemed savings bonds. Encouraging bond holders to cash their savings bonds does present 

challenges. In December 2019, Fiscal Service implemented its Treasury Hunt® search tool, 

which is an online tool that makes searching the status of Treasury bonds simpler by allowing 

individuals to discover if they have savings bonds issued in 1974 or later that have matured and are 

no longer earning interest. While 85 percent of the MUD balance is from bonds issued in 1974 

and later, the quality of many of the paper records make it difficult to determine bond holder 

information. These documents are not machine-readable, thus making it difficult to index and 

search. In December 2019, Fiscal Service hosted a series of industry days to learn more about 

the options to digitize and index these records and where to prioritize efforts. Funding is 

requested to continue to help bond owners redeem their bonds and improve Treasury’s ability to 

provide more searchable records through: 

 Process improvements for cashing savings bonds, including digital options, with a focus on 

Matured Unredeemed Debt 

 Improved ease of use and accessibility of new online search tools, ultimately resulting in 

expanded customer awareness of Matured Unredeemed Debt 

 Expanded outreach to states and bondholders about Matured Unredeemed Debt 

 Continuing efforts to digitize and index savings bond records 
Fiscal – 7 

1.3 – Object Classification (Schedule O) Obligations 

 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual

O bligations

Estimated

O bligations

Estimated

O bligations

11.1 - Full-time permanent 178,289 186,910 193,211

11.3 - Other than full-time permanent 180 189 190

11.5 - Other personnel compensation 4,527 5,543 5,556

11.9 - Personnel Compensation (Total) 182,996 192,642 198,957

12.0 - Personnel benefits 62,123 69,337 72,730

13.0 - Benefits for former personnel 275 100 100

Total Personnel and Compensation Benefits $245,394 $262,079 $271,787

21.0 - Travel and transportation of persons 2,651 2,986 2,665

22.0 - Transportation of things 106 111 113

23.1 - Rental payments to GSA 24,544 25,960 26,968

23.2 - Rental payments to others 11 45 46

23.3 - Communications, utilities, and miscellaneous charges 39,623 42,123 41,810

24.0 - Printing and reproduction 127 137 140

25.1 - Advisory and assistance services 68,188 65,305 68,603

25.2 - Other services from non-Federal sources 23,939 19,374 19,760

25.3 - Other goods and services from Federal sources 299,252 318,332 312,895

25.4 - Operation and maintenance of facilities 1,646 2,172 2,075

25.7 - Operation and maintenance of equipment 9,474 9,813 9,951

26.0 - Supplies and materials 3,961 4,332 4,050

31.0 - Equipment 4,295 4,477 4,302

32.0 - Land and structures 440 34 35

Total Non-Personnel $478,257 $495,201 $493,413

Total O bligations * $723,651 $757,280 $765,200

Full-time Equivalents (FTE) 1,872 1,969 1,994 

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

Note: *Of the $25 million appropriation for Matured Unredeemed Debt, obligations are estimated at $17 million in FY 

2020, $6 million in FY 2021 $2 million in FY 2022.
Fiscal – 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

BUREAU OF THE FISCAL SERVICE 

Federal Funds 

SALARIES AND EXPENSES 

For necessary expenses of operations of the Bureau of the Fiscal 

Service, [$340,280,000]$360,200,000; of which not less than 

$10,000,000, to remain available until September 30, 2023, is for 

expenses associated with the redemption of matured savings 

bonds that have not been redeemed; of which not to exceed 

$8,000,000, to remain available until September 30, [2022]2023, 

is for information systems modernization initiatives; and of which 

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

expenses. 

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. (Department of the Treasury 

Appropriations Act, 2020.) 

Provides $10 million, 

available through 

FY 2023, to assist in the 

redemption of matured 

savings bonds. 

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 United States Code (U.S.C.) 391. Under this 

account, the FRBs support fiscal operations unrelated to the administration of the public debt and 

provides banking and financial services on behalf of the United States Treasury. Specifically, 

this account supports the accounting and reporting, collections, payments, and debt collection 

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

the expansion of e-government efforts to reduce costs, improve accuracy and increase options 

available to citizens to conduct transactions with the Federal Government. Fiscal Service 

estimates that the cost of FRB services for FY 2021 will be approximately $645.5 million. 

Reimbursements to the Federal Reserve Banks 

Public Law (P.L.) 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. Funding for FY 2021 is estimated at $176.8 million. 

Financial Agent Services Permanent, Indefinite Appropriation 

Congress has given the Secretary of the Treasury authority to deposit money in financial 

institutions and obtain banking services by designating financial institutions to act/serve as 

Financial Agents (FAs) of the United States. The services support many Fiscal Service 
Fiscal – 9 

programs, such as accounting and reporting, collections, payments, and debt collection. The 

services provided by the FAs are authorized under numerous statutes including, but not limited 

to, 12 U.S.C. 90 and 265. 

Fiscal Service estimates that the cost of FA services for FY 2021 will be approximately 

$864.1 million, which includes $1.3 million for Government Sponsored Enterprise - Mortgage 

Backed Securities administrative costs. 

Government Losses in Shipment 

P. L. 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 (the 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 that 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 Fiscal Service Commissioner. In FY 2021, the funding estimated 

to support payments for the replacement of valuables is approximately $2 million. 

1.4 – Permanent, Indefinite Appropriations Table 

E – Legislative Proposals 

1. Give the Do Not Pay (DNP) Business Center the direct authority to acquire (designate) 

publicly available data sources to include in DNP for the prevention, identification, and 

recovery of improper payments. Total increase in improper payments identified by Treasury: 

$35 million over 10 years.

This proposal gives the Secretary of the Treasury (Secretary) the authority to acquire or 

designate publicly available data sources for DNP to expedite designating publicly available data 

source for the purposes of preventing, identifying, and recovering improper payments for Federal 

agencies. This authority will provide more efficient access for DNP’s analytics services and 

shorten the timeframe for the designation and the acquisition of publicly available data sources. 

Dollars in Thousands

Permanent, Indefinite Appropriation FY 2019 

Actuals

FY 2020

 Estimated

FY 2021 

Request

Federal Reserve Bank 1 $603,613 $622,786 $645,520

Reimbursements to the Federal Reserve Banks $154,557 $170,615 $176,799

Financial Agent Services 1, 2 $836,239 $848,400 $864,052

Government Losses in Shipment $1,088 $2,204 $2,015

1 Approximately $77M is reimbursed from other government agencies and deposited into the 

General Fund each year.

2 FY 2019 - FY 2021 include $1.3M per year for the Government Sponsored Enterprise - 

Mortgage Backed Securities administrative costs.
Fiscal – 10 

2. Allow Treasury to access the Death Master File for improper payment purposes. Total 

increase in improper payments identified by Treasury: $25.3 million over 10 years.

This proposal authorizes the Secretary to access the full (restricted) file of death information that 

the Social Security Administration (SSA) maintains, which includes State-reported death data, 

for purposes of administering the Do Not Pay (DNP) Business Center and preventing, 

identifying, and recovering improper payments for Federal agencies. Such access would permit 

the Secretary to assist paying agencies in comparing information from the Full Death Master File 

with data about persons receiving Federal payments and identify individuals who are ineligible 

to receive payments or who are receiving erroneous payments. Treasury and SSA would 

collaborate to determine the most efficient means of exercising this authority. 

3. Give the Do Not Pay Business Center (DNP) increased authority to expand its user base 

to include other Federally funded government entities, such as Federally funded state 

administered programs. Total increase in improper payments identified by Treasury: $21 

billion over 10 years.

This proposal gives the Secretary of the Treasury (Secretary), in coordination with OMB, the 

authority to work with other federally funded government entities that play a role in preventing 

and detecting improper payments in federally funded state administered programs. Such 

authority would permit the Secretary to work with OMB to select customers that DNP 

determines can successfully assist in preventing and reducing improper payments. 

4. Expand Treasury's authority to access the National Directory of New Hires (NDNH) to 

include prevention, identification, and recovery of improper payments. Total increase in 

improper payments identified by Treasury: $3.24 billion over 10 years. 

This proposal expands Treasury's authority to access the National Directory of New Hires 

(NDNH) to help prevent, identify and recover improper payments. The Social Security Act 

specifies which agencies may receive information from the database and the limited purposes for 

which disclosures are permitted. Under the current law, the Secretary of the Treasury has access 

to information in the NDNH for debt collection purposes. This proposal expands the Secretary's 

access to information in the NDNH to include the purposes of preventing, identifying, and 

recovering improper payments for Federal agencies. 

Such access would permit the Secretary to assist paying agencies that are currently authorized by 

the Social Security Act to access NDNH, in comparing information from the NDNH with data 

about persons receiving Federal payments and identify individuals who are ineligible to receive 

payments or who are receiving erroneous payments. Treasury and the Department of Health and 

Human Services will continue to work together to determine Do Not Pay’s appropriate role in 

carrying out this authority. 

5. Expand the Treasury Offset Program to increase debt collections. Estimated Recoveries: 

Tax debt collections: Between $960 million and $1.24 billion over 10 years. 
Fiscal – 11 

The State Reciprocal Program (SRP), a component of the Treasury Offset Program (TOP), 

permits states to collect their debts through the offset of Federal non-tax payments in exchange 

for permitting TOP to collect Federal non-tax debts through the offset of state payments. This 

joint Internal Revenue Service-Bureau of the Fiscal Service proposal expands the SRP by 

authorizing the continuous levy of state payments to collect Federal tax debts in two key ways. 

First, for states participating in the SRP, state payments subject to levy under this proposal could 

include state tax refunds, vendor payments, and payments to Medicaid service providers. 

Second, the proposal allows the offset of Federal tax refund payments to collect state debts. This 

would encourage states to participate (or more fully participate) in the SRP. Currently, under the 

SRP, states may only collect their debts from Federal non-tax payments and states may collect 

only certain debts through offset of Federal tax refunds (i.e., income tax, unemployment 

compensation, and child support debts). The proposal authorizes the Secretary of the Treasury, 

in consultation with affected agencies, such as the Department of Health and Human Services, to 

issue regulations to permit the collection of additional state debts through the offset of Federal 

tax refund payments when the Secretary determines it is both feasible and beneficial, giving 

special consideration to debts owed to states under Federally-funded programs such as Medicaid. 

6. Fund the Federal Payment Levy Program via collections. Estimated costs: $220 million in 

Fiscal Service costs to operate the Tax Levy Program in TOP over 10 years. Fiscal Service is 

currently being reimbursed for this cost from IRS appropriated funding. 

 

This proposal would allow the Fiscal Service to retain a portion of the funds collected under the 

Bureau’s Federal Payment Levy Program (FPLP) which processes and collects delinquent tax 

debts through the Treasury Offset Program (TOP). TOP currently recoups its costs from retained 

amounts for all its programs except for the FPLP. Under current law, the IRS must pay these 

costs through annual reimbursement agreements under the Economy Act. This proposal would 

make the FPLP consistent with other TOP programs. Delinquent taxpayers will not be impacted 

by the proposal, because they will receive credit for the full amount collected. This proposal 

creates efficiencies, because it allows the Fiscal Service to recover its FPLP costs in the same 

manner as other TOP programs. 

7. Increase collections of delinquent state income tax debt. Estimated recoveries: $2.3 

billion in state taxes over 10 years. These funds would go to the states. This proposal is revenue 

neutral for Federal scoring purposes. 

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 amends section 6402(e) of the Internal Revenue Code to allow the Fiscal Service 

to offset Federal income tax refunds to collect delinquent state tax obligations regardless of 

where the debtor resides. Fiscal Service also benefits with increased economies of scale due to 

greater processing volume. 

8. Reduce costs for states collecting delinquent income tax obligations. Estimated savings: 

$140.8 million for states over 10 years. This proposal is revenue neutral for Federal scoring 

purposes. 
Fiscal – 12 

Under current law, 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 non-tax, 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 permit 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 amends Internal Revenue Code 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. 

9. 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: $62 

million over 10 years. 

This proposal amends 31 U.S.C. § 3711 to authorize Treasury to use its resources to recover 

unclaimed assets of the United States. 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 

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 its 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. 
Fiscal – 13 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

Everything Fiscal Service does aligns to Treasury’s Strategic Goal 4: Transform Governmentwide Financial Stewardship and Goal 5: Achieve Operational Excellence and directly supports 

the bureau’s strategic goals: 

 Goal 1 - Operational Excellence: Maintain agile, efficient, and resilient programs to meet the 

financial management needs of the Federal Government 

 Goal 2 - Innovation and Customer Experience: Deliver innovative financial management 

solutions that provide a modern, seamless customer experience 

 Goal 3 - Our Workforce: Develop, retain, and empower the best and brightest talent to 

support Federal financial management 

 Goal 4 - Data Integrity and Transparency: Increase transparency and public trust in Federal 

financial management data 

 Goal 5 - Financial Management Community: Provide the financial management community 

the financial tools and capabilities so they can further support their agencies’ missions 

Fiscal Service fulfills its mission and vision through appropriated budget activities (Accounting 

and Reporting, Collections, Payments, Retail Securities Services, Wholesale Securities Services, 

and Matured Unredeemed Debt) and one mandatory budget activity (Debt Collection) funded 

through delinquent debt collection revenue. These budget activities align to two Treasury 

Strategic Goals: Transform Government-wide Financial Stewardship and Achieve Operational 

Excellence as well as four CAP Goals: Data, Accountability and Transparency; Improving 

Customer Service; Sharing Quality Services; and Getting Payments Right. More specifically, 

Fiscal Service supports the following Treasury Strategic Goals and Objectives: 

Treasury Strategic Goal 4: Transform Government-wide Financial Stewardship 

4.1 – Financial Data Access/Use: Strengthen government-wide decision-making and 

accountability by increasing access to and use of government financial data. 

Accounting and Reporting: 

 Enterprise Data Strategy: In FY 2018, Fiscal Service established goals and objectives for 

the next five years, including increasing the “value and availability of our Federal financial 

data to advance sound decision-making and insights.” The Fiscal Service enterprise data 

strategy communicates a path to change the organization’s treatment of data from a 

transactional resource to a strategic asset for decision-making and insights, both internally 

and externally. This strategy is aligned to CAP Goal 2, Data, Accountability, and 

Transparency. In FY 2019, the Data Transparency team successfully launched a new digital 

guide to citizens called Your Guide to America’s Finances. The effort made Federal 

financial data more accessible to the American Public by translating complicated aspects of 

Federal finance into a simple, straightforward, and engaging tool. The data strategy advances 

the adoption of Federal financial data standards within the established inter-agency 

governance structure, promotes the use of consistent data for decision-making, and builds 

upon and leverages successes and lessons learned from the DATA Act implementation 

process. The data strategy also promotes interoperability among data sources, helps to 

reduce duplication, build common and shared solutions, and improve data quality. As a 
Fiscal – 14 

result, the data strategy creates an increased focus on financial data analytics to make data 

more useful and identify best practices to putting data to work. 

 General Fund Audit: Fiscal Service will pursue a clean audit opinion on the Financial Report 

of the U.S. Government (FR) by fully implementing a remediation plan. Key among these 

remediation efforts is attaining auditability of the General Fund of the United States 

Government. Achieving a clean audit opinion will increase confidence and reliance on 

government-wide financial management data and improve stewardship of taxpayer resources. 

In 2019, Fiscal Service identified items that are impairing the General Fund’s auditability 

through the completion of the first ever audit of the General Fund of the U.S. Government, 

conducted by the Government Accountability Office (GAO). 

 G-Invoicing Initiative: Fiscal Service is working to improve the quality and reliability of 

Intragovernmental (IGT) buy/sell data through electronic government invoicing (GInvoicing). This initiative will shift from the current paper-based approach to electronic 

agreement between agencies within the Federal Government for services performed on their 

behalf. In FY 2019, G-Invoicing updates were implemented to enable electronic initiation of 

interagency agreements government-wide. Fiscal Service will continue to work with the 

agency financial and acquisition communities to be sure that G-Invoicing meets the business 

needs, regulatory, and policy framework of both communities. 

 Modernize and streamline Federal reporting and audit model: This priority will modernize 

the Financial Report (FR) preparation process to improve data quality and reduce agency 

burden. Through collaboration with the Government Accountability Office (GAO), Office of 

Management and Budget (OMB), Treasury, and Federal program agencies, Fiscal Service 

will pursue a more useful FR and look for opportunities to streamline and modernize the 

underlying reporting and audit processes that have been in place for several years. This 

initiative has eliminated 40 closing package audits and will include collaboration with the 

Chief Financial Officer (CFO) community to identify further improvement initiatives. 

Payments: 

 Analytics Expansion: The DNP Business Center and the Payment Integrity Center of 

Excellence (PICOE) play a significant role in helping agencies address the government-wide 

problem of improper payments that result in monetary loss estimated at $74.6 billion in FY 

2019 and directly supports CAP Goal 9, Getting Payments Right. With analytics services, 

product offerings, and data sources to agency customers, DNP and the PICOE can help 

agencies detect and prevent a broader range and increased amount of improper payments. In 

FY 2019, DNP expanded services to offer agencies data analytics to assist them in their effort 

to more effectively identify and prevent improper payments. There was a record-breaking 

$9.7 billion in delinquent debt collections in FY2019, representing a 28 percent increase over 

the $7.6 billion collected in FY2018. These collections turned an anticipated revenue/cost 

deficit into a surplus and were due in large part to improved, regular referral of delinquent 

Education debts which will impact future forecasts positively for several years. The total 

collections in FY 2019 may be slightly higher than the next few years as the initial, large, 

high dollar backlog is slowly paid off ($9.3 billion from Treasury Offset Program and $0.4 

billion from Cross-Servicing Program). 
Fiscal – 15 

In FY 2020, Fiscal Service will continue to provide business insight and solutions that assist 

government agencies in identifying, preventing, and recovering improper payments through 

PICOE. PICOE will work to test new partnerships to assist with recovery, prevention, and 

prosecution efforts; and work with Federal agencies and other partners to make payments 

right the first time, thereby improving the public trust and the integrity of government-wide 

financial transactions. For FY 2021, Fiscal Service requests several legislative changes that 

will strengthen our ability to help agencies detect and prevent monetary loss associated with 

improper payments. 

Fiscal Service ensures payment integrity by managing payment transactions that are 

misdirected or otherwise require intervention. In FY 2019, these transactions represented 

approximately $15.9 billion, and might have been erroneously spent if the transactions had 

not been recovered and/or corrected through robust post-payment controls. Further, using 

analytics and partnering with various stakeholders, Fiscal Service supported the investigation 

and prosecution of more than 460 cases of misdirected payments caused by forgery, altered 

checks, multiple mobile deposits, deceased payee fraud, and potential mail fraud. 

4.2 – Debt Management: Fund the Federal Government at the least cost over time. 

Auctions: 

 Modernize Auctions Application: Fiscal Service’s auction program finances government 

operations by offering Treasury securities through secure electronic systems. The auction 

program will continue work on the multi-year effort to modernize the auction application 

software in FY 2021 to ensure that critical auction processes continue to work flawlessly, 

remain secure, and operate without service disruptions. 

4.3 – Federal Financial Performance: Improve Federal financial management performance 

using innovative practices to support effective government. 

All Budget Activities: 

 Innovative Financial Management Solutions: Fiscal Service envisions a future of improved 

efficiency, enhanced customer experience, and greater data transparency. Innovation is a 

central component in the bureau’s strategy for achieving the vision. Financial technology 

(FinTech) is transforming how financial services are delivered. The Office of Financial 

Innovation and Transformation (FIT) was created to accelerate the adoption of FinTech to 

the financial management processes of the Federal Government. FIT continues to make 

progress in fostering innovations that improve the efficiency, quality of service and accuracy 

of Federal financial management, and promoting their adoption among Federal agencies. 

 Robotics: FIT has identified robotic process automation (RPA) as an effective technology for 

improving the efficiency of financial operations. Throughout FY 2019, FIT championed this 

technology, encouraging several agencies to launch RPA efforts. FIT created an innovation 

program that launched RPA pilot tests at the National Science Foundation and the 

Department of the Interior. Within the bureau, FIT worked with Fiscal Accounting to 

standup a robotic processing center of excellence that has deployed 30 ‘bots’ into production 

and, now, assists other bureau offices in developing ‘bots’ to improve internal efficiency. In 
Fiscal – 16 

FY 2020, FIT is building on its robotics work to include the application of artificial 

intelligence and the development of ‘chat bots’ that automate the customer-facing 

interactions performed at the bureau’s many call centers. 

 Data Analytics: In FY 2019, FIT worked with the CFO Council to develop Program 

Integrity: The Antifraud Playbook for use by the entire financial management community, 

including Federal, state, and local agencies. The playbook provides practical guidance, 

leading practices, and helpful resources for agencies to establish and apply more advanced 

data analytic techniques to reduce the amount of money lost through improper payments. In 

FY 2020, to promote inter-agency sharing of best practices, FIT will complete an inventory 

of fraud analytics techniques used by Federal agencies. 

 Distributed Ledger Technology: In FY 2019, FIT launched a proof of concept test of 

Distributed Ledger Technology to improve the controls and reporting of letter of credit 

payments made to Federal grantees. Partnering with the National Science Foundation, the 

project is the first application of this technology to a payments process. In FY 2020, FIT and 

National Science Foundation will analyze the results of the proof of concept test to determine 

the extent to which the new technology improves payment integrity and accuracy, reduces 

reporting burden, and improves the payments to grantees. 

 Streamlining financial management guidance to Federal agencies: In FY 2019, FIT launched 

multiple interlocking initiatives transforming how Fiscal Service provides guidance to the 

hundreds of Federal agencies that use the bureau’s financial management services. The 

purpose of this effort is to reduce unnecessary effort because of unclear guidance, promote 

standard practices and encourage the adoption of centrally provided services. The 

centerpiece of this effort is Financial Management Standards Committee (FMSC) of Deputy 

CFOs from the 24 CFO Act agencies. In FY 2019, the FMSC was instrumental in 

developing the standards for the G-Invoicing solution to reduce intragovernmental 

differences. In FY 2020, FIT will engage agencies in re-engineering guidance that the 

bureau provides agencies through the Treasury Financial Manual. 

Treasury Strategic Goal 5: Achieve Operational Excellence 

5.1 – Workforce Management: Foster a culture of innovation to hire, engage, develop, and 

optimize a diverse workforce with the competencies necessary to accomplish Treasury’s mission. 

All Budget Activities:

 Financial Management Talent: Fiscal Service has a goal to develop, retain, and empower the 

best talent to support Federal financial management. Fiscal Service continues to support this 

goal through several initiatives designed to increase leadership and operational competencies, 

improve communication across the workforce, and support collaboration and employee 

engagement. These efforts include: a Fiscal Service culture strategy, moving operations to 

field locations, a bureau-wide position management review designed to ensure position 

accuracy and consistency across all locations, a Commissioner’s Scholarship Program, the 

encouragement of all employees to receive 40 hours of training per year to reinforce the 
Fiscal – 17 

development of key competencies across the workforce, and structured succession planning 

activities to establish sufficient bench strength for future leadership opportunities. 

Fiscal Service’s 2019 Federal Employee Viewpoint Survey results improved (58 questions) 

or remained steady (10 questions) in 68 of the 71 core questions. Fiscal Service also saw 

progress over 2018 in the employee engagement, diversity and inclusion, overall satisfaction, 

and global satisfaction indices. Fiscal Service will continue to identify opportunities to 

improve employee engagement and develop action plans focused on these activities. 

In FY 2019, Fiscal Service implemented a new hiring process that integrates budget and 

human capital processes to identify and prioritize the most critical hiring needs within our 

funding levels and improved our understanding of workforce gaps and their related 

operational and strategic risks and impacts. In FY 2020, a bureau-wide Workforce plan will 

be finalized by the Chief Human Capital Officer, providing a roadmap for building a 

workforce to allow for mission accomplishment, achievement of the bureau’s priorities and 

initiatives, and ensuring diversity and inclusion. 

5.2 – Treasury Infrastructure: Better enable mission delivery by improving the reliability, 

security, and resiliency of Treasury’s infrastructure. 

All Budget Activities: 

 Modernize IT Infrastructure and Technology Service Delivery: Fiscal Service will continue 

its progress in modernizing the bureau’s IT infrastructure and technology service delivery (to 

include cloud adoption). This will be accomplished by implementing enterprise-scale 

foundational technology services and enhancing IT portfolio management practices as well 

as cybersecurity posture across the enterprise. 

FY 2020 objectives include establishing an IT Modernization Program Management Office, 

as well as implementing an enterprise hosting strategy. FY 2021 objectives include 

increasing the ability to accommodate changes in volume and demand, improving customer 

experience, adding new business capabilities, and promoting faster time to market for IT 

customers. These resource utilization strategies and implementation approaches were 

designed to achieve operational excellence, support the transformation of government-wide 

financial stewardship, accomplish PMA IT Modernization goals, and align with the vision set 

forth in the Future of Federal Financial Management. 

 Implement Enterprise-scale Foundational Technology Services: Implementing enterprisescale foundational technology services which incorporate incident response, logging/event 

aggregation, identity and access management, network access, and the public key 

infrastructure will secure environments across multiple hosting platforms. Fiscal Service 

plans to utilize services and capabilities that are standardized, portable, reusable, scalable, 

and resilient through the implementation of agile practices and the increase of automation, 

including the capability for automated deployment. Automated deployment is the capability 

of deploying applications, infrastructure changes, patches, and databases with tools and 

scripts, allowing simple, common tasks to be cloned and shared across multiple applications, 
Fiscal – 18 

with little to no additional development or human interaction. This strategy includes use of 

the cloud and other secure hosted solutions. 

 Enhance the Bureau’s Cybersecurity Posture: Optimized cybersecurity operations with 

coordinated and embedded security across a distributed and shared infrastructure ensures the 

resiliency to identify, protect, detect, respond, and recover. This includes identifying our 

critical information and systems, identifying a reconstitution priority order of those systems, 

identifying an appropriate risk appetite, and establishing thorough business continuity and 

disaster recovery plans. If cyber-attacks materialize, our goal is to contain the incident while 

still accomplishing the organization’s mission and protecting the data for which our 

organization has been entrusted. 

5.3 – Customer Value and Experience: Enhance the experience of interacting with Treasury 

by providing high quality products and services and by delivering excellent customer service. 

Collections and Payments:

 Electronic Solutions: Fiscal Service will work to reduce the number of lockboxes used in the 

Federal Government to process manual collections by streamlining and consolidating 

facilities, continuing to transition paper processing to electronic solutions, and improving 

manual processing efficiencies through new technologies such as RPA and intelligent 

character recognition. All lockboxes process paper payments (mailed in checks) on behalf of 

government agencies. The process is labor intensive in terms of sorting mail, opening mail, 

and keying in the data. We rely on high-speed machinery to assist with most of these tasks. 

The lockboxes employ thousands of temporary staff during peak seasons to assist with 

processing the mail. Currently, the Tax Lockboxes process paper tax payments and 

associated information on behalf of the Internal Revenue Service (IRS). The network is 

comprised of three financial agents, which process paper tax payments at five locations 

across the country. The FY 2019 volume for the Tax Lockbox totaled 49,672,962. The 

Passport Lockboxes processes paper Passport payments and associated information on behalf 

of the Department of State. The network is comprised of one financial agent which processes 

paper Passport applications and payments at three locations across the country. The FY 2019 

volume for the Passport Lockbox totaled 16,435,607. In FY 2019, Fiscal Service completed 

the transition of General Lockbox Network (GLN) cash flows, consolidating the GLN from 

four sites to two, and from three Financial Agents (FAs) to one. The FY 2019 volume for 

GLN totaled 28,765,365. In FY 2020, Fiscal Service will pilot the U.S. Citizenship and 

Immigration Services document handling solution and expand RPA in the Passport Lockbox 

Network. At the same time, Fiscal Service will implement steps to transition Tax Lockbox 

Network cash flows from five sites to three, and from three FAs to two (for completion in FY 

2021). 

 Centralize Federal Disbursing: Through this initiative, Fiscal Service will further 

consolidate the disbursement of Federal payments. The Federal Government disburses over 

1.4 billion payments annually to recipients throughout the world. Currently, Fiscal Service 

disburses 87 percent of these payments, with the remaining 13 percent being disbursed by 

non-Treasury disbursing offices, which includes the Department of Defense as our largest 

non-disbursing Agency. Further consolidating disbursement at Fiscal Service will eliminate 
Fiscal – 19 

redundancies, streamline end-to-end payment processing, and lower government-wide costs. 

Fiscal Service’s goal is for 95 percent of Federal payments to be Treasury-disbursed by the 

end of FY 2021. 

B – Budget and Performance by Budget Activity 

2.1.1 – Accounting and Reporting Resources and Measures 

Accounting and Reporting Budget and Performance 

($102,877,000 from direct appropriations, $21,547,000 from reimbursable sources): 

Fiscal Service has the critical responsibility of maintaining the Federal Government's set of 

accounts and serving as the repository of information about the financial position of the United 

States Government. The bureau closely monitors the government's monetary assets and 

liabilities at all times through its oversight of central accounting and reporting systems. Fiscal 

Service oversight responsibilities include helping Federal agencies use uniform accounting and 

reporting standards and systems and assuring the continuous exchange of financial information 

between Federal agencies, OMB, and financial institutions. The bureau also gathers and 

publishes government-wide financial information for use in establishing fiscal and debt 

management policies as well as to allow the public and private sectors to monitor the 

government's financial status. 

For the FY 2018 Financial Report, Fiscal Service remediated two audit recommendations. As 

part of the Central Accounting program, Fiscal Service: 

 Produced timely and accurate financial information by operating and overseeing the 

government’s Central Accounting Reporting System and managing $127.4 billion in 

daily Federal cash flows 

 Generated and disseminated timely (99.6 percent) reports and information required by law 

on the financial condition and budget results of the U.S. government, including the Daily 

Treasury Statement, Monthly Treasury Statement, Monthly Statement of the Public Debt, 

Treasury Bulletins, the Combined Statement of the United States Government, and the FR 

 Issued the annual, audited Schedules of Federal Debt (Schedules) that report on the single 

largest Federal liability in Treasury’s annual Agency Financial Report and received an 

unmodified opinion for each of the past 23 years 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $104,600 $113,413 $108,312 $95,822 $95,175 $98,937 $102,877

Reimbursable Resources $10,256 $24,155 $23,800 $18,923 $20,114 $21,214 $21,547

Budget Activity Total $114,856 $137,568 $132,112 $114,745 $115,289 $120,151 $124,424

374 425 381 400 373 386 400

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Government-wide 

Accounting Reports Issued 

Timely (%)

99.5 100.0 100.0 100.0 99.6 98.0 99.5 99.5

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Note: The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns 

represent realized resources for full-time equivalents and reimbursables.
Fiscal – 20 

 Managed nearly $53.81 billion in State and Local Government Series (SLGS) securities for 

over 2,500 customers and administers flexible investment alternatives for state and local 

governments to refinance their outstanding, tax-exempt debt 

 Issued, redeemed, and serviced Government Account Series (GAS) securities totaling 

nearly $6.1 trillion that are held in more than 172 accounts that have specific statutory 

authority to invest in these special, non-marketable Treasury securities 

 Administered over 10,500 loans totaling $1.6 trillion to nearly 100 accounts held by Federal 

agencies to support programs relating to education, housing, flood relief, and agriculture 

Fiscal Service delivers on Treasury’s Strategic Goal 4 (Transform Government-wide Financial 

Stewardship) by providing the public and Federal agencies with access to a greater range of 

financial data and works to improve the value, quality, and availability of Federal financial data. 

Government-wide financial data standards are integral to increasing the availability, accuracy, 

and usefulness of Federal spending information. Fiscal Service will continue to work with 

Federal agencies and external stakeholders to enhance the capabilities and user experience of 

USAspending.gov. 

The President’s Management Agenda, Cross-Agency Priority (CAP) Goal 5, Sharing Quality 

Services, strives to achieve operational and performance cost savings across administrative 

services. In FY 2019, OMB pre-designated Treasury as the FM QSMO for core financial 

management. Fiscal Service is leveraging existing Treasury authorities and in-house expertise to 

create and implement a readiness assessment process for agencies and legacy financial 

management shared service providers. As guiding principles, Fiscal Service will operate with a 

focus on customer experience, promote the strategic value of data and deliver progress using 

agile processes. As part of the FY 2021 request, Fiscal Service is requesting an increase of 

$5 million to support this program. 

Description of Performance: 

Fiscal Service collects, analyzes, and publishes government-wide financial information, made 

available to both the public and private sectors, to provide transparency on the government’s 

financial status. In FY 2019, Fiscal Service timely issued government-wide accounting reports 

99.6 percent of the time. Fiscal Service expects to meet its FY 2020 and FY 2021 performance 

measure targets by transforming the quality, effectiveness, and transparency of Federal financial 

management data; delivering value-added business process and system improvements; and 

expanding/enhancing relationships with stakeholders and customers. 
Fiscal – 21 

2.1.2 – Collections Resources and Measures 

Collections Budget and Performance 

($41,077,000 from direct appropriations, $8,248,000 from reimbursable sources): 

The Collections budget activity supports the NFCI and Treasury Strategic Goal 4 (Transform 

Government-wide Financial Stewardship) by administering the world's largest government funds 

collections system through a network of Fiscal and Financial Agents. Fiscal Service’s 

collections network supports significant numbers of transactions and dollar collected, 

demonstrating the criticality of our program to the economy, the operations of government, and 

the daily lives of citizens and businesses. In FY 2019, the bureau collected over $4.26 trillion in 

Federal revenues, such as individual and corporate income tax deposits, customs duties, fees for 

government services, fines, and loan repayments. Within that, over $3.03 trillion in tax 

payments, over 188.3 million transactions, were processed through the Electronic Federal Tax 

Payment System (EFTPS) and approximately 218 million transactions worth $206.2 billion were 

processed through Pay.gov. 

By adopting eCommerce solutions and cutting-edge technology, Fiscal Service is expanding the 

suite of electronic payment options available to Federal agencies, individuals, businesses, tax 

practitioners, and financial institutions through a variety of alternatives, specifically, online bill 

payment, digital wallets, and mobile applications, all of which offer convenience, simplicity, and 

an enhanced customer experience. In FY 2019, Online Bill Payment, digital wallet, and mobile 

app transaction activity increased by 43 percent, respectively, representing steady growth in 

eCommerce collections. 

Description of Performance: 

In FY 2019, Fiscal Service exceeded its target (98 percent) by electronically settling 98.4 percent 

of all Federal Government receipts on the strength of the current architecture, process flows, and 

settlement mechanisms. Fiscal Service expects to electronically settle 98 percent of revenue 

collected in FY 2020 by continuing to promote the use of electronic systems in the collections 

process and assisting agencies in converting collections from paper to electronic media with 

programs such as: 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $34,982 $37,394 $36,197 $38,704 $42,166 $37,948 $41,077

Reimbursable Resources $3,898 $8,265 $7,028 $8,042 $7,804 $8,129 $8,248

Budget Activity Total $38,880 $45,659 $43,225 $46,746 $49,970 $46,077 $49,325

144 152 159 160 156 161 161

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Total Federal 

Government Receipts Settled 

Electronically (%)

98.0 98.2 98.3 98.0 98.4 98.0 98.0 98.0

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Note: The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns 

represent realized resources for full-time equivalents and reimbursables.
Fiscal – 22 

 Card Acquiring Service (CAS): CAS is a program that provides merchant services for credit 

card and debit card acceptance for Federal agencies. The CAS program accepts cards from 

all the major network brands for card transactions at agency point of sale locations or via the 

internet. It processes at approximately 10,000 locations over 19,200 point-of-sale endpoints. 

Agencies benefit through the use of CAS by: 1) Offering added convenience to its customers 

by accepting most cards, 2) Reducing cash and checks, and 3) Providing additional reporting 

and customer service support. 

 Pay.gov: Pay.gov is a web-based government-wide collections portal. It allows users to 

electronically fill out and submit forms, view bills, and make payments via Automated 

Clearing House (ACH) debit, credit card, or digital wallet. The system also provides 

reporting to agencies and allows individuals and businesses to make non-tax payments to 

Federal agencies over the internet with a mobile-friendly user interface and enhanced 

functionality in the areas of electronic billing and electronic forms. 

 Check Conversion and Truncation: 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 at the Point of Sale or as soon as practical upon receipt, to accelerate 

check clearance and settlement. The Over the Counter Channel Application (OTCnet) and 

Electronic Check Processing (ECP) programs provide a complete electronic record of all 

check images and related financial data that is accessible by agencies and eliminate the costly 

and time-consuming need to photocopy checks, safeguard checks, and transport them to a 

financial institution. 

 eCommerce Collections: Through the bureau’s mobile app products, Online Bill Payment, 

and digital wallet alternatives, steady increases in transaction volume and dollars collected 

are being realized and the customer experience enhanced as adoption increases across 

government. In FY 2020 and FY 2021, Fiscal Service plans to increase the adoption of 

eCommerce digital collection options across Federal agencies by 4 percent. 
Fiscal – 23 

2.1.3 – Payments Resources and Measures 

Payments Budget and Performance 

($121,519,000 from direct appropriations, $123,880,000 from reimbursable sources): 

The Payments budget activity supports the NFCI and Treasury Strategic Goal 4 (Transform 

Government-wide Financial Stewardship) by disbursing 87 percent of the Federal Government’s 

payments, equating to over 1.2 billion payments worth $3.7 trillion in FY 2019. Fiscal Service is 

the primary disburser of payments to individuals and businesses on behalf of Federal agencies. 

This includes Social Security, Veterans’ benefits, and income tax refunds to more than 100 

million people as well as vendor and loan payments supporting businesses; grant monies; and 

state funding for critical infrastructure projects and state-administered programs. Since 2012, 

Fiscal Service has increased the percentage of payments disbursed electronically from 88.0 

percent to 95.6 percent, with the remainder disbursed by check. The check volume decreased 

from 129 million to 54 million, a difference of 75 million. Through our efforts, we estimate 

Federal cost avoidance of $53 million. 

In FY 2021, Fiscal Service will lead Treasury’s Agency Priority Goal (APG) to Improve the 

Public’s Experience: Increasing Electronic Payments and Reducing Paper Checks. The goal is 

to create a modern, seamless, and cost-effective Federal payment experience for the public by 

reducing the number of paper checks printed and increasing the electronic payment rate. 

Fiscal Service disburses payments for programs such as Veterans’ Compensation and Pension, 

Social Security Benefits, Federal and Railroad Pensions, IRS tax refunds, and Supplemental 

Security Income (SSI). Fiscal Service supports the production and delivery of Federal payments 

on behalf of more than 250 Federal entities with a single application that generates check, ACH, 

International ACH Transaction (IAT), and wire transfer payments. Fiscal Service continues to 

focus on promoting the use of electronics in the payment process and to assist agencies in 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $120,769 $127,943 $126,685 $121,462 $117,581 $123,015 $121,519

Reimbursable Resources $81,953 $111,088 $111,464 $117,264 $113,313 $120,273 $123,880

Budget Activity Total $202,722 $239,031 $238,149 $238,726 $230,894 $243,288 $245,399

521 562 597 508 477 493 497

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Treasury Payments 

Made Electronically (%)

94.7 94.9 95.1 95.4 95.6 95.6 95.8 96.1

Count of Improper Payments 

Identified or Stopped 

(# in Thousands)

N/A 33.7 21.4 20.3 22.4 19.5 20.5 21.5 

Dollar Amount of Improper 

Payments Identified or Stopped

($ Millions)

N/A 59.0 36.6 35.5 41.1 33.6 35.3 37.0

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Note: The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent 

realized resources for full-time equivalents and reimbursables.
Fiscal – 24 

converting payments from per paper checks to electronic funds transfer (EFT) and strives 

towards all-electronic disbursements to streamline processes, reduce cost of operations, and 

deliver payments and related services expeditiously to the American public. 

In FY 2019, Fiscal Service disbursed 98.5 percent of benefit payments electronically, supported 

by Direct Express®, a prepaid card program providing 5.7 million unbanked cardholders with a 

low-cost way to electronically receive payments and check their account balance. The Payments 

budget activity also includes post payment services to settle 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 

ensures payee claims of non-receipt are processed, stale uncashed checks are cancelled, 

misdirected electronic payments are returned, monies erroneously paid to deceased individuals 

are recovered, and checks returned in the mail are properly safeguarded with funds redirected to 

the right payee or held safely in the United States Treasury. 

Through FY 2021, Fiscal Service will continue to invest in the Post Payment Services 

Investment, which through the Post Payment Modernization Initiative (PPMI) will consolidate 

several post payment systems into a single, centralized system that will unify disparate business 

processes and eliminate data redundancy across systems. PPMI will provide Federal program 

agencies a customer portal that supports: payment verification and reconciliation, returns and 

cancellations, inquiries, claims processing including reclamations, funds receipt/funds 

management, fraud and integrity analysis, and reporting. 

Fiscal Service will continue to expand efforts through a government-wide program that will 

support agencies, law enforcement, and states in combatting fraud, waste, abuse, and improper 

payments. PICOE will continue its efforts to provide actionable business insights and solutions 

that transform how Federal agencies approach identifying, preventing, stopping, and recovering 

improper payments and related fraudulent activity. Since 2015, Fiscal Service provided support 

to the Inspector General, Assistant United States Attorneys, and state and local law enforcement 

agencies in the investigation and prosecution of criminals engaged in fraud related to the 

Treasury payment system resulted in 306 arrests, 208 convictions, and $66.6 million recovered 

through fines, restitution, and seizures. 

In FY 2019, DNP provided analytic and business process solutions to strengthen internal controls 

and to identify and prevent improper payments at both the Federal agency and state level. As 

part of that effort, it assisted Federal agencies in identifying or stopping 22,415 payments valued 

at over $41.1 million. DNP’s mission is to protect the integrity of the Federal Government’s 

payment processes by helping agencies mitigate and eliminate improper payments in a costeffective manner while safeguarding the privacy of individuals. Together with the PICOE, DNP 

will continue to provide Federal agencies and states administering federally funded programs 

enhanced analytics expertise and services focused on payment integrity and fraud prevention. In 

partnership with the Federal agencies, a variety of data analyses and visualizations can be 

conducted to help combat improper payments. 

In FY 2019, Federal agencies received and processed 524,904 vendor invoices valued at $47 

billion through Treasury’s electronic invoicing solution, the Invoice Processing Platform (IPP). 
Fiscal – 25 

At the end of FY 2019, organizations in 16 CFO Act Agencies were using the IPP with 98.4 

percent of Department of Treasury invoices processed electronically. 

Description of Performance: 

Fiscal Service continues to increase the electronic payment rate each year. In FY 2019, the 

electronic payment rate rose to 95.6 percent, with the number of electronic payments increasing 

by 21 million, and paper check volume decreasing by 1.9 million. Tax refund payments continue 

to total more than half of the Treasury-disbursed check volume. The processing of electronic 

invoices also realized a large increase of more than 37,000 over the FY 2018 volume of 487,898. 

For FY 2020 and FY 2021 and in support of the Agency Priority Goal, Fiscal Service established 

targets to increase the electronic payments percentage to 95.8 percent, and 96.1 percent 

respectively. To achieve our targets, Fiscal Service plans to promote and increase EFT payments 

with emphasis on tax refunds, vendor payments, and benefit payments; and exploring, 

developing, and deploying innovative, customer-driven electronic payment solutions. 

2.1.4 – Retail Securities Services Resources and Measures 

Retail Securities Services Budget and Performance 

($61,231,000 from direct appropriations, excluding direct MUD appropriation, $14,544,000 

from reimbursable sources): 

Retail Securities Services (RSS) provides simple, safe, and affordable ways for investors to 

directly interact with the Department of the Treasury to save for their future by investing in 

Treasury securities. The U.S. Treasury began offering savings bonds in paper in 1935. Today, 

electronic savings bonds and marketable securities are sold through TreasuryDirect, an internetbased book-entry system for purchasing, holding and conducting Treasury securities 

transactions. In FY 2019, Fiscal Service electronically issued $104.7 billion in marketable 

securities (this includes sales and reinvestments) and $392.5 million in savings bonds; redeemed 

22 million paper savings bonds totaling $10.3 billion and $821 million in electronic savings 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $76,711 $71,252 $62,559 $57,356 $59,381 $58,403 $61,231

Reimbursable Resources $6,006 $16,026 $12,642 $12,100 $13,306 $13,383 $14,544

Matured Unredeemed Debt /1 0 0 0 0 0 $25,000 $10,000

Budget Activity Total $82,717 $87,278 $75,201 $69,456 $72,687 $96,786 $85,775

442 436 472 434 388 410 417

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Retail Customer 

Service Transactions That Are 

Unassisted (%)

N/A N/A N/A N/A 69 B 70 71

Note: /1 FY 2020 Enacted includes $25 million, available until expended, appropriated by P.L. 116-93, Consolidated Appropriations Act, 2020.

The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent realized 

resources for full-time equivalents and reimbursables.

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Key: B - Baseline
Fiscal – 26 

bonds; added 109,351 new accounts to TreasuryDirect; and made 3 million retail payments 

worth $34.3 billion. 

RSS continues to modernize systems to allow individual investors to purchase, reinvest, and 

manage their investments. Over the next few years, RSS will continue to improve the customer 

experience by increasing customer self-sufficiency and encouraging more investors to save for 

their future while achieving our financing mission cost effectively. 

Description of Performance: 

To measure our success with improving customer self-sufficiency, in FY 2019 RSS began 

monitoring Percentage of Retail Securities Transactions that are Unassisted. For FY 2020 and 

FY 2021, Fiscal Service established targets of 70 percent and 71 percent respectively. This 

performance measure aligns with Fiscal Service goals and objectives to improve customer value 

by increasing the quality and self-sufficiency. Fiscal Service will meet the FY 2020 and FY 

2021 targets through its modernization efforts. 

Matured Unredeemed Debt (MUD) 

($10,000,000 from direct appropriations): 

In FY 2020, Fiscal Service is committed to a plan to encourage American citizens to redeem 

matured savings bonds, which as of FY 2019, reached a balance of $25.7 billion. Treasury 

encourages owners of MUD to redeem their securities. In the first quarter of FY 2020, Fiscal 

Service launched a Hunt Matured Savings Bond Search Tool, TreasuryHunt.gov, to help bond 

holders more easily search for information about the status of savings bonds that have matured. The 

MUD balance will continue to evolve as securities mature. In the mid-1980s, the dollar value of 

savings bonds issued started to rise significantly. The maturing of these securities 30 years later 

is influencing the increase in the MUD balance today. The greater aggregate value of securities 

reaching maturity will continue for several years due to historical issuance trends. Having a 

suitable solution capable of digitizing and indexing savings bonds that have matured can 

streamline the redemption process. 

Fiscal Service has also already begun work to better understand the viability of current technology 

solutions that might address these challenges through discussions with dozens of private industry 

organizations in the first quarter of FY 2020. In FY 2021, Fiscal Service plans to continue to 

advance the redemption of MUD and is requesting an increase of $10 million to support this 

program. Digitization of records and taking the necessary steps to collect and disseminate data 

will be a multi-year effort. The Retail Securities Services program is focused on improving the 

condition and availability of savings bond records and will measure success through making 85 

percent of the MUD records accessible. The ability to improve savings bond records over time 

will enable collaboration with stakeholders in locating MUD bondholders. 

 
Fiscal – 27 

2.1.5 – Wholesale Securities Services Resources and Measures 

Wholesale Securities Services Budget and Performance 

($23,496,000 from direct appropriations, $4,797,000 from reimbursable sources): 

The Wholesale Securities Services (WSS) budget activity supports the NFCI by managing a 

critical Treasury HVA that finances daily government operations by offering Treasury securities 

through reliable, accurate, and secure electronic systems. Fiscal Service oversees the 

announcement, auction, and issuance of marketable Treasury bills, notes, bonds, floating rate 

notes, and inflation-protected securities. 

 

The WSS activity supports Treasury’s Strategic Goal 4 - Transform Government-wide Financial 

Stewardship, specifically Strategic Objective 4.2 to fund the Federal Government at the least cost 

over time. It supports Fiscal Service’s Strategic Goal 1 - Operational Excellence, specifically 

Strategic Objectives 1.1 to advance system and service resilience and 1.3 to design and 

implement modern, lean, and efficient enterprise, business, and technology architectures. 

Description of Performance: 

Fiscal Service conducted 325 auctions and awarded $11.7 trillion in Treasury marketable 

securities to institutions and individual investors in FY 2019. This was an increase of 55 

auctions over FY 2018, due mainly to the issuance of the new 8-week bill. 

In FY 2019, Fiscal Service held 100 percent of auctions by the scheduled close date. In addition, 

auction results were released accurately 98.8 percent of the time, which was slightly below the 

target of 100 percent due to technical issues that have been resolved. The target will be 100 

percent in FY 2020 and FY 2021. 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Appropriated Resources $10,676 $13,848 $19,304 $24,936 $23,977 $21,977 $23,496

Reimbursable Resources $927 $3,115 $4,214 $4,613 $4,599 $4,681 $4,797

Budget Activity Total $11,603 $16,963 $23,518 $29,549 $28,576 $26,658 $28,293

109 78 117 116 112 116 116

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Auction Results 

Released Accurately (%) 99.6 100 98.9 98.9 98.8 100 100 100

Percent of Auctions Successfully 

Completed by the Scheduled 

Close Date (%)

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

Note: The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns 

represent realized resources for full-time equivalents and reimbursables.

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Key: B - Baseline
Fiscal – 28 

2.1.6 – Debt Collection Resources and Measures 

Debt Collection Budget and Performance 

($228,984,000 from reimbursable sources): 

The Debt Collection activity supports Treasury’s Strategic Goal 4 (Transform Government-wide 

Financial Stewardship) and Fiscal Service Strategic Goal 1 (Operational Excellence). Fiscal 

Service is the government's central debt collection agency, managing the government's 

delinquent debt portfolio and collecting delinquent debts owed to the United States, such as 

Federal mortgage, small business, or student loans; Federal salary or benefit overpayments; and 

fines or penalties assessed by Federal agencies. In FY 2019, Fiscal Service collected $9.65 

billion in delinquent debt through its two debt collection programs: TOP and Cross-Servicing. 

In FY 2019, The Centralized Receivables Service (CRS) saw another record year in growth of 

receivables processed and collections. In FY 2019, agency customers created over 750,000 cases 

and collected approximately $57 million. This represents a 303 percent and 30 percent growth 

from previous year, respectively. There are 76 participating agency programs onboard with four 

more programs scheduled for implementation in the first part of FY 2020. CRS is on track to 

meet the Future of Financial Management Vision goal of 80 participating agency programs with 

one million annual receivables processed by FY 2021. 

Through TOP, the names and taxpayer identifying numbers of debtors included in a Fiscal 

Service database are matched against the names and taxpayer identifying numbers of recipients 

of Federal payments. If there are matches, the amounts of the payments are reduced ("offset") to 

satisfy the delinquent debts. 

Through Cross-Servicing, delinquent debts referred to Fiscal Service by Federal agencies are 

collected several ways, including offsetting Federal payments, sending demand letters to debtors, 

entering into payment agreements, withholding wages administratively, referring debts to the 

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Enacted Request

Reimbursable Resources $174,634 $187,152 $176,928 $192,819 $225,635 $232,320 $228,984

Budget Activity Total $174,634 $187,152 $176,928 $192,819 $225,635 $232,320 $228,984

406 390 417 389 366 403 403

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Amount of Delinquent Debt 

Collected Through All Available 

Tools ($ Billions)

7.28 7.41 7.61 7.44 9.65 7.67 8.88 8.81

All Delinquent Debt Collected as a 

Percentage of All Delinquent Debt 

Referred (%)

N/A N/A N/A N/A 14.3 B 14.9 14.9

Percentage of the Active 

Delinquent Debt Portfolio 

Collected (%)

N/A N/A N/A N/A 6.8 B 7.0 7.0

Note: The FY 2015 - FY 2019 appropriated resources represents the approved operating plan. The FY 2015 - FY 2019 columns represent 

realized resources for full-time equivalents and reimbursables.

 Resource Level

Full-time Equivalents (FTE)

Performance Measure

Key: B - Baseline
Fiscal – 29 

Department of Justice for action, reporting to credit bureaus, and contracting for the services of 

private collection agencies. 

For FY 2021, Fiscal Service requests several legislative changes that will continue to advance 

debt collection effectiveness. 

Fiscal Service continues to help agencies implement Section 5 of the DATA Act, which 

amended the Debt Collection Improvement Act of 1996 to require agencies to refer eligible debt 

to Fiscal Service at 120 days delinquent, rather than 180 days, and requires Treasury to report 

non-compliance to Congress. In addition, Fiscal Service continues to work with OMB and 

agencies on the new tools developed for tracking compliance, as required. 

Description of Performance: 

FY 2019 marked the highest delinquent debt collections ever for Fiscal Service. This was due to 

a change in the referral process for the Department of Education, including a large backlog and 

new, more regular, referrals. While Fiscal Service anticipates collections will remain high, 

diminishing total collections for the next several years is expected as the Department of 

Education backlog of debt is collected. 

Although reduced from FY 2019, FY 2020 and FY 2021 projections of $8.88 billion, and $8.81 

billion respectively, remain higher that prior year actuals. Collection targets will be achieved 

through initiatives to optimize collections, including lowering our cost-to-collect, engage the 

debtor experience through self-service and online debt management, segment debt portfolio, and 

growth of the offset program with new agencies, payments, and technologies. 

C – Changes in Performance Measures 

Fiscal Service has no proposed changes to its performance measures. 

D– Evidence-Building Activity 

In FY 2019, Fiscal Service completed a number of evidence building activities, including 

portfolio reviews for programs across the enterprise. Key FY 2019 achievements in evidence 

building activities with meaningful government-wide impact include: 

(1) DNP provided analytic and business process solutions to strengthen internal controls and to 

identify and prevent improper payments at both the Federal and state level agencies. As part of 

that effort, it assisted Federal agencies in identifying or stopping 22,415 payments valued at over 

$41.1 million. Further, using analytics and partnering with various stakeholders, Fiscal Service 

supported the investigation and prosecution of more than 460 cases of misdirected payments 

caused by forgery, altered checks, multiple mobile deposits, deceased payee fraud, potential mail 

fraud and more; ongoing DNP and PICOE efforts to reduce fraud, waste, and abuse will continue 

in FY 2020. 

(2) FIT championed RPA technology as an effective technology for improving the efficiency of 

financial operations, encouraging several agencies to launch RPA efforts. FIT created an 

innovation program that launched RPA pilot tests at the National Science Foundation and the 

Department of the Interior. Internally, FIT assisted Fiscal Service in establishing an RPA center 
Fiscal – 30 

of excellence that has deployed over 30 ‘bots’ into production and assists bureau offices in 

developing ‘bots’ to improve internal efficiency. In 2020, Fiscal Service is building on its 

robotics work to include the application of artificial intelligence and the development of ‘chat 

bots’ that automate the customer-facing interactions performed at the bureau’s many call centers. 

(3) Fiscal Service worked with the CFO Council to develop the Program Integrity: The Antifraud 

Playbook for use by the entire financial management community, including Federal, state, and 

local agencies. The playbook provides practical guidance, leading practices, and helpful 

resources for agencies to apply more advanced data analytic techniques to reduce the amount of 

money lost through improper payment. In 2020, to promote inter-agency sharing of best 

practices, Fiscal Service will complete an inventory of fraud analytics techniques used by 

Federal agencies. 

(4) Fiscal Service launched a proof of concept test of Distributed Ledger Technology to improve 

the controls and reporting of letter of credit payments made to Federal grantees. Partnering with 

the National Science Foundation, the project is the first application of this technology to be used 

in a payments process. In 2020, Fiscal Service and National Science Foundation will analyze the 

results of the proof of concept test to determine the benefits and costs of the new technology as it 

is applied more broadly among payments to grantees. 
Fiscal – 31 

Section III – Additional Information 

A – Summary of Capital Investments 

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

technology enablement, customer-focused service, efficient operations, strategic partnering, and 

agility in order to enable the missions of the Federal Government. Fiscal Service strategically 

governs and manages its IT portfolio lifecycle, and continually harnesses IT resources, 

investment health, and portfolio performance insights for capital planning decisions to deliver 

secure, flexible, extensible, and resilient technology services and solutions that maximize 

business value. 

Effective Investment Governance 

Fiscal Service Governance focuses on overall progress in achieving the outcomes described in 

the bureau’s Strategic Plan and the Future of Federal Financial Management vision. The 

governance and portfolio management functions ensure that the IT Portfolio maintains cost 

effectiveness and continuously delivers intended results throughout the lifecycle of investments. 

A monthly investment health assessment of cost, schedule, operational performance, and risk 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. Financial data transparency 

and benchmarking capabilities are being matured through the implementation of the Technology 

Business Management (TBM) framework. The health and performance data generated, and 

insights being gained inform governance decisions around investment planning, selection, 

resourcing, and prioritization to best support the mission and long-term plans for Fiscal Service 

and Treasury, optimize value, and accelerate transformation. 

Effective Project Execution 

Fiscal Service has a disciplined and consistent approach to project management (PM) rooted in 

industry standard best practices and supported through a bureau-wide project management center 

of excellence. The Project Management Competency Center provides input and guidance on PM 

standards, procedures, and training as well as actionable insights and recommendations based on 

the latest trends in project management. In addition, a fully supported project management 

community of practice is in place providing practitioners with special programming, surveys, and 

communication focused on collaboration, unique learning opportunities, creative problemsolving, and leadership led discussions on 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. Fiscal Service’s EA program is designed to 

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

evidence-based techniques, identify duplicative investments, discover goals and opportunities for 

collaboration with other agencies, and establish a line-of-sight from the highest-level strategic 

goals to the infrastructure that enables the achievement of those goals. The value provided by 

the bureau’s EA services is demonstrated through the documentation of Fiscal Service’s current 

state, which is leveraged in strategic planning and in determining the necessary initiatives and 

transition activities to align with the future state technology roadmap. A holistic suite of 
Fiscal – 32 

integrated services that incorporates business, data, technical, and security architecture 

perspectives enable the planning. 

Enterprise Risk Management (ERM) 

The nature of Fiscal Service’s work requires effective enterprise 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 services in the Federal Government. As such, Fiscal Service has established 

an Office of Enterprise Risk Management (OERM) to promote a common understanding and 

approach to risk management and strengthen organizational capabilities to recognize, assess, and 

address risks that could disrupt the successful achievement of strategic goals and objectives. In 

collaboration with the Executive Board/Risk Committee, OERM has developed the Fiscal 

Service Risk Appetite Statement to guide bureau’s strategic direction. Moreover, through the 

development and issuance of an ERM framework, policies, guidance, and tools, the bureau 

incorporates risk management practices in decision-making processes such as strategic and 

tactical planning, workforce planning, capital investment planning, objective prioritization, and 

budget formulation. Fiscal Service continues to communicate the importance of effective risk 

management to all employees. 

Cybersecurity 

Fiscal Service has a multi-faceted mission that promotes financial integrity and operational 

efficiency across the Federal Government. As such, protecting the information and technology 

resources that support the bureau’s mission with more modern solutions that will support 

security, resiliency, and agility are critically important. Fiscal Service manages 60 FISMA 

systems with billions of PII records, including multiple High Value Assets (HVAs) that support 

the Financial Services Sector of the Critical Infrastructure (CI) of the Federal Government. 

Fiscal Service invests in strengthening the cyber defenses of HVAs against the increasing 

volume, sophistication, frequency, impact and brazenness of global cybersecurity threats. These 

investments are critical in order to maintain confidence in the financial ecosystem of the United 

States and avoid immeasurable reputational damage Treasury would suffer in the event of a 

significant data breach or cybersecurity incident. Financial integrity and operational efficiency 

are accomplished by effective, coordinated management of security risks and incidents that 

ensure the confidentiality, integrity, and availability of the bureau’s systems are maintained. 

Fiscal Service employs an in-depth defense strategy to protect against, detect, and respond to 

anomalies in the bureau’s network and systems. In addition, Enterprise Cybersecurity ensures 

Fiscal Service information technology resources are compliant with the National Institute of 

Standards and Technology security standards and satisfies annual security audit requirements. 

To support these efforts in FY 2021, enhanced data encryption, and other remediation efforts 

identified through the bureau’s on-going Cyber Clean initiative, Fiscal Service is requesting an 

additional $3.2 million. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/summary-of-capital-investments. 




Department of the Treasury 

United States Secret Service 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
Table of Contents 

Appropriation Organization Structure .............................................................................................................................Strategic Context ..................................................................................................................................................................Budget Comparison and Adjustments ...............................................................................................................................Personnel Compensation and Benefits ...............................................................................................................................Non Pay Budget Exhibits.....................................................................................................................................................Supplemental Budget Justification Exhibits .....................................................................................................................

USSS - 

2
U.S. Secret Service 

Appropriation Organization Structure 

Organization Name Level Fund Type (* 

U.S. Secret Service Component Operations and Support Appropriation Mission Support PPA Discreti Protective Operations PPA Protection of Persons and Facilities PPA Level II Discreti Protective Countermeasures PPA Level II Discreti Protective Intelligence PPA Level II Discreti Presidential Campaigns and National Special Security Events PPA Level II Discreti Field Operations PPA Domestic and International Field Operations PPA Level II Discreti Support for Missing and Exploited Children Investigations PPA Level II Discreti Support for Computer Forensics Training PPA Level II Discreti Basic and In-Service Training and Professional Development PPA Discreti Procurement, Construction, and Improvements Appropriation Protection Assets and Infrastructure PPA Discreti Protection Assets and Infrastructure End Items Investment, PPA Level II Discreti Operational Communications/Information Technology PPA Discreti Information Integration & Technology Transformation (IITT) Investment, PPA Level II Discreti Operational Communications/Information Technology End Items Investment, PPA Level II Discreti Construction and Facility Improvements PPA Discreti Construction and Facility Improvements End Items Investment, PPA Level II Discreti Mission Support Assets and Infrastructure PPA Discreti Mission Support Assets and Infrastructure End Items Investment, PPA Level II Discreti Research and Development Appropriation Gen2 Fully Armored Vehicle (FAV) Program R&D Project Discreti Protective Systems and Weapons Testing Program R&D Project Discreti Computer Emergency Response Team (CERT) Program R&D Project Discreti Contribution for Annuity Accounts Appropriation Manda

USSS - 

3
U.S. Secret Service 

Strategic Context 

Component Overview 

The strategic context presents the performance budget by tying together programs, or PPAs, and performance measures results to our stakeholders. The Common Appropriation Structure (CAS) allows DHS to integrate the programmatic vie

the Level 1 PPAs represent what DHS refers to as our mission programs. A mission program is a group of activities actispecific high-level outcome external to DHS and includes operational processes, skills, technology, human capital, and o

mission programs are presented below. Performance measures associated with these programs are presented in two meamanagement measures. Strategic measures communicate results delivered for our agency goals by these programs and aGovernment Performance and Results Act Modernization Act of 2010 (GPRAMA) measures. Additional management mprovide a more thorough context of expected program performance for the Component related to its budgetary plans. Mdisplay previous year’s results are because the measure did not exist at that time. Field Operations: The Field Operations program supports the daily operations of the domestic and international field ofby Special Agents, Uniformed Division Officers, Technical Law Enforcement, and administrative, professional, and techpersonnel divide their time between conducting criminal investigations of financial crimes, cybercrimes, counterfeit curr

and performing physical protection responsibilities. This enables the Department to protect the U.S. economy and contiinvestigating threats to financial payment systems, threats to leadership and locations, and events with symbolic and pracitizens in physical space and cyberspace. Strategic Measures 

Measure: Amount of cyber-financial crime loss prevented (in billions) 

Description: This measure is an estimate of the direct dollar loss to the public prevented due to cyber-financial investigations by Secret Service. The dollar loss prevented is based on the estimated amount of financial loss that would have occurred had the offe

identified nor the criminal enterprise interrupted. The measure reflects the U.S. Secret Service’s efforts to reduce financial losses t

attributable to cyber financial crimes. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: --- --- --- $4.50 $5.00 Result: --- --- --- $7.10 TBD 

USSS - 

4
Measure: Number of cyber mitigation responses 

Description: This measure represents the number of cyber mitigation responses provided by the U.S. Secret Service (USSS). The 

responds to organizations that suspect a malicious network intrusion has occurred and implements mitigation responses to secure 

network(s). Each cyber mitigation response involves one or more of the following activities related to a particular network intrusiopotential victims/subjects, notifying victims/subjects, interviewing victims/subjects, confirming network intrusion, supporting mitbreach activity, and retrieving and analyzing forensic evidence. State or Federal arrests resulting from and/or related to these intrumeasured separately. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 410 250 390 225 240 Result: 157 253 271 416 TBD 

Measure: Number of financial accounts recovered (in millions) 

Description: This measure represents the number of financial accounts recovered during cyber investigations. Financial accounts accounts, credit card accounts, PayPal and other online money transfer accounts. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 0.40 0.40 0.50 0.50 0.50 Result: 0.51 27.18 5.70 1.39 TBD 

Measure: Number of law enforcement individuals trained in cybercrime and cyberforensics both domestically and overseas 

Description: This measure represents the number of individuals trained in cybercrime and cyber forensics by the Secret Service. specialized technical training occurs both domestically and overseas in an effort to strengthen our ability to fight cyber crime. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 1,800 1,900 2,000 2,500 2,800 Result: 1,906 1,968 2,773 3,375 TBD 

Measure: Percent of currency identified as counterfeit 

Description: The dollar value of counterfeit notes passed on the public reported as a percent of dollars of genuine currency. This 

calculated by dividing the dollar value of counterfeit notes passed by the dollar value of genuine currency in circulation. This meaindicator of the proportion of counterfeit currency relative to the amount of genuine U.S. Currency in circulation, and reflects our 

reduce financial losses to the public attributable to counterfeit currency. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: <0.0090% <0.0088% <0.0088% <0.0088% <0.0090% Result: 0.0057% 0.0093% 0.0064% 0.0060% TBD 

USSS - 

5
Measure: Percent of National Center for Missing and Exploited Children examinations requested that are conducted 

Description: This measure represents the percentage of Secret Service computer and polygraph forensic exams conducted in supinvestigation involving missing or exploited children in relation to the number of computer and polygraph forensic exams requestFiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

Measure: Terabytes of data forensically analyzed for criminal investigations 

Description: This measure represents the amount of data, in terabytes, seized and forensically analyzed through Secret Service in

and those conducted by partners trained at the National Computer Forensic Institute (NCFI). The training of these law enforcemensubstantially enhances law enforcement efforts to suppress the continually evolving and increasing number of cyber and electronic affecting communities nationwide. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 6,000 7,000 5,000 5,100 8,000 Result: 3,334 5,019 8,862 11,632 TBD 

Managent Measure 

Measure: Number of hours of cyber crime training provided to law enforcement both domestically and overseas 

Description: This measure represents the number of cyber crime training hours provided by the Secret Service. This specialized training occurs both domestically and overseas in an effort to strengthen our ability to fight cyber crime. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 85,000 87,000 87,000 110,000 160,000 Result: 104,840 99,314 164,704 176,037 TBD 

Protective Operations: The Protective Operations program protects the President and Vice President and their families, spouses, visiting heads of state and government, and other designated individuals. It also secures the White House Com

Residence, and other designated places; and designs, coordinates, and implements operational security plans for designaEvents (NSSEs). The program investigates, evaluates, disseminates, and maintains information concerning known, poteprotectees, locations, and NSSEs. The program is staffed by Special Agents, Uniformed Division Officers, Technical La

administrative, professional, and technical personnel that work closely with the military and with federal, state, county, lenforcement organizations to ensure mission success. This enables the Department to facilitate continuity of governmen

security. 

USSS - 

6
Strategic Measures 

Measure: Percent of days with incident-free protection at the White House Complex and Vice President’s Residence 

Description: This measure gauges the percent of instances where the Secret Service provides incident free protection to the Whit

Complex and the Vice President’s Residence. An incident is defined as someone who is assaulted or receives an injury from an a

inside the White House Complex or Vice President's Residence. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

Measure: Percent of National Special Security Events that were successfully completed 

Description: This measure is a percentage of the total number of National Special Security Events (NSSEs) completed in a Fiscawere successful. A successfully completed NSSE is one where once the event has commenced, a security incident(s) inside the Seprotected venue did not preclude the event's agenda from proceeding to its scheduled conclusion. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

Measure: Percent of protectees that arrive and depart safely 

Description: This measure gauges the percent of travel stops where Secret Service protectees arrive and depart safely. Protectee

President and Vice President of the United States and their immediate families, former presidents, their spouses, and their minor c

the age of 16, major presidential and vice presidential candidates and their spouses, and foreign heads of state. The performance talways 100%. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

USSS - 

7
Management Measures 

Measure: Number of information sharing events with the law enforcement and intelligence community 

Description: This measure gauges the number of information sharing events with both internal entities and external partner agenassessment of the effectiveness of information dissemination. Information sharing elements include both internal and external brieintelligence products. Information sharing events include: Targeted Violence Information Sharing System (TAVISS) briefings, ag

specialty desk briefings and other training, spot reports, suspicious activity reporting, advisories, permanent protectee threat assesevents assessments, and certain other assessment products. Sharing information about threats, hazards, and protective actions will 

internal and external coordination needed to prevent successful attacks. Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 1,200 1,200 1,200 1,900 2,000 Result: 2,205 1,876 2,597 2,567 TBD 

Measure: Number of National Threat Assessment Center trainings and briefings 

Description: This measure quantifies the information sharing sessions communicating information conducted by the National ThAssessment Center (NTAC) to law enforcement, interested stakeholders, and others with a role in public safety. NTAC conducts 

training, consultation, and information sharing on threat assessment and the prevention of targeted violence. In addition to attacks schools, colleges, and universities, NTAC studies violence directed at government officials and agencies, workplaces, and public 

sharing of information from NTAC studies about threats, hazards, and protective actions will allow for the internal and external co

needed to prevent successful attacks. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: --- --- --- --- 120 Result: --- --- --- --- TBD 

Measure: Percent of instances protectees arrive and depart safely (campaign protectees) 

Description: This measure represents the percent of travel stops where the protectee safely arrives and departs. The security of pthe ultimate priority of the Secret Service; therefore, all necessary resources are utilized before and during a protective assignment 

provide the highest-quality protection the Secret Service demands for all protectees. 

Fiscal Year: FY 2016 FY 2017 FY 2018* FY 2019* FY 2020 Target: 100% 100% --- --- 100% Result: 100% 100% --- --- TBD 

* Not campaign years. 

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8
Measure: Percent of instances protectees arrive and depart safely (domestic protectees) 

Description: The percent of travel stops where our Nation's leaders and other protectees arrive and depart safely. The security of 

the ultimate priority of the Secret Service; therefore, all necessary resources are utilized before and during a protective assignment 

provide the highest-quality protection the Secret Service demands for all protectees. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

Measure: Percent of instances protectees arrive and depart safely (Foreign Dignitaries) 

Description: The percent of travel stops where visiting world leader protectees safely arrive and depart. The security of protecte

ultimate priority of the Secret Service; therefore, all necessary resources are utilized before and during a protective assignment in provide the highest-quality protection the Secret Service demands for all protectees. 

Fiscal Year: FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Target: 100% 100% 100% 100% 100% Result: 100% 100% 100% 100% TBD 

USSS - 

9
U.S. Secret Service 

Budget Comparison and Adjustments 

Appropriation and PPA Summary 

Organization FY 2019 FY 2020 

(Dollars in Thousands) Enacted Enacted 

Operations and Support $2,148,528 $2,336,40

Mission Support $481,977 $500,45Protective Operations $884,701 $1,021,43

Protection of Persons and Facilities $740,895 $754,52Protective Countermeasures $56,917 $61,75Protective Intelligence $49,395 $49,95Presidential Campaigns and National Special Security Events $37,494 $155,19

Field Operations $678,927 $703,97

Domestic and International Field Operations $647,905 $667,60Support for Missing and Exploited Children Investigations $6,000 $6,00Support for Computer Forensics Training $25,022 $30,37

Basic and In-Service Training and Professional Development $102,923 $110,53

Procurement, Construction, and Improvements $97,131 $66,98

Protection Assets and Infrastructure $85,286 $65,98

Protection Assets and Infrastructure End Items $85,286 $65,98

Operational Communications/Information Technology $8,845 

Information Integration & Technology Transformation (IITT) $8,845 

Construction and Facility Improvements $3,000 $1,00

Construction and Facility Improvements End Items $3,000 $1,00

Research and Development $2,500 $12,45

Research and Development $2,500 $12,45

Gen2 Fully Armored Vehicle (FAV) Program - $9,00Protective Systems and Weapons Testing Program $2,250 $1,70Computer Emergency Response Team (CERT) Program $250 $1,75

Contribution for Annuity Accounts $265,000 $265,00Total $2,513,159 $2,680,84

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U.S. Secret Service 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Operations and Support 7,650 7,359 $2,148,528 7,777 7,647 $2,336,401 7,896 7,796 $2,310Procurement, Construction, and Improvements - - $97,131 - - $66,989 - - $38Research and Development - - $2,500 - - $12,455 - - $11Contribution for Annuity Accounts - - $265,000 - - $265,000 - - $265Total 7,650 7,359 $2,513,159 7,777 7,647 $2,680,845 7,896 7,796 $2,625Subtotal Discretionary - Appropriation 7,650 7,359 $2,248,159 7,777 7,647 $2,415,845 7,896 7,796 $2,360Subtotal Mandatory - Appropriation - - $265,000 - - $265,000 - - $265

Component Budget Overview The FY 2021 President’s Budget includes $2.6B in total gross budget authority for the Secret Service. This represents a compared to the FY 2020 Enacted appropriation. The FY 2021 President’s Budget supports Secret Service requirements for FY 2021 and includes the agency’s highest pr Continue to grow personnel balancing mission need with other competing requirements 

 Provide follow-on support for the 2020 Presidential Campaign 

 Support armoring of base platforms for the Fully Armored Vehicles (FAV) program

 Sustain protective countermeasures and operational readiness to support the protection of the President, Vice Preside

 Develop the next generation base-vehicle platform for FAVs

FY 2021 funding will enable the Secret Service to continue achievements in personnel growth and employee morale foll

protection requirements and operational tempo associated with the 2020 Presidential Campaign and election. The proteccandidates, nominees, debates, campaign events and inauguration involves a careful coordination of people and assets to maintains its unequalled performance in this zero-fail mission space while continuing to secure the Nation’s financial in

financial crimes. 

USSS - 11
U.S. Secret Service 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 

(Dollars in Thousands)

Enacted/Request $2,513,159 $2,680,845 Carryover and/or Recoveries (Actual/Estimates/Projections) $62,713 $55,790 Rescissions to Current Year/Budget Year ($5,673) - Net Sequestered Resources - - Reprogrammings/Transfers $14,380 - Supplementals - - Total Budget Authority $2,584,579 $2,736,635 Collections – Reimbursable Resources $26,730 $26,730 Total Budget Resources $2,611,309 $2,763,365 Obligations (Actual/Estimates/Projections) $2,505,053 $2,707,502 Personnel: Positions and FTEEnacted/Request Positions 7,650 7,777 Enacted/Request FTE 7,359 7,647 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 7,811 7,805 FTE (Actual/Estimates/Projections) 7,196 7,675 

*In the table above, the rescission line includes the administrative savings rescissions per the Consolidated Appropriation Act, 2019 

USSS - 12
U.S. Secret Service 

Collections - Reimbursable Resources 

Collections FY 2019 Enacted FY 2020 Enacted FY 2021 President's Bud

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Am

Department of Homeland Security - National Protection and Programs Directorate Source - - $444 - - $444 - - 

Operations and Support Location - - $444 - - $444 - - 

Mission Support Location - - $444 - - $444 - - 

Department of Homeland Security - Office of the Under Secretary for Management Source - - $30 - - $30 - - 

Operations and Support Location - - $30 - - $30 - - 

Mission Support Location - - $30 - - $30 - - 

Department of Justice - Department of Justice Source - - $334 - - $334 - - 

Operations and Support Location - - $334 - - $334 - - 

Field Operations Location - - $334 - - $334 - - 

Domestic and International Field Operations Location - - $334 - - $334 - - 

Department of State - Department of State Source - - $1,571 - - $1,571 - - 

Operations and Support Location - - $1,571 - - $1,571 - - 

Protective Operations Location - - $74 - - $74 - - 

Protection of Persons and Facilities Location - - $74 - - $74 - - 

Field Operations Location - - $1,497 - - $1,497 - - 

Domestic and International Field Operations Location - - $1,497 - - $1,497 - - 

Department of Treasury - Department of the Treasury Source 28 28 $24,351 28 28 $24,351 28 28 $

Operations and Support Location 28 28 $24,351 28 28 $24,351 28 28 $

Mission Support Location - - $296 - - $296 - - Protective Operations Location 20 20 $6,000 20 20 $6,000 20 20 

Protection of Persons and Facilities Location 20 20 $6,000 20 20 $6,000 20 20 

Field Operations Location 8 8 $18,055 8 8 $18,055 8 8 $

Domestic and International Field Operations Location 8 8 $18,055 8 8 $18,055 8 8 $

Total Collections 28 28 $26,730 28 28 $26,730 28 28 $

USSS - 13
 U.S. Secret Service 

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Operations and Support 7,650 7,359 $1,448,994 $196.9 7,777 7,647 $1,497,523 $195.83 7,896 7,796 $1,557,180 $199.74 Contribution for Annuity Accounts - - $265,000 - - - $265,000 - - - $265,000 - Total 7,650 7,359 $1,713,994 $196.9 7,777 7,647 $1,762,523 $195.83 7,896 7,796 $1,822,180 $199.74 Discretionary - Appropriation 7,650 7,359 $1,448,994 $196.9 7,777 7,647 $1,497,523 $195.83 7,896 7,796 $1,557,180 $199.74 Mandatory - Appropriation - - $265,000 - - - $265,000 - - - $265,000 - 

* The FTE Rate calculation does not include Object Class 11.8-Special Personal Services Payments or 13.0-Benefits for Former Personnel. 

Pay by Object Class 

Pay Object Classes (Dollars in 

Thousands) FY 2019 Enacted FY 2020 Enacted FY 20

President's 

11.1 Full-time Permanent $757,775 $772,387 11.3 Other than Full-Time Permanent $12,668 $13,113 11.5 Other Personnel Compensation $215,938 $242,533 12.1 Civilian Personnel Benefits $462,613 $469,490 13.0 Benefits for Former Personnel $265,000 $265,000 Total - Personnel Compensation and Benefits $1,713,994 $1,762,523 $Positions and FTEPositions - Civilian 7,650 7,777 FTE - Civilian 7,359 7,647 

USSS - 14
U.S. Secret Service 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

 (Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

Operations and Support $699,534 $838,878 $753,116 Procurement, Construction, and Improvements $97,131 $66,989 $38,305 Research and Development $2,500 $12,455 $11,937 Total $799,165 $918,322 $803,358 Discretionary - Appropriation $799,165 $918,322 $803,358 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $146,792 $211,783 $170,522.0 Transportation of Things $12,454 $11,941 $5,723.1 Rental Payments to GSA $102,878 $105,441 $98,723.2 Rental Payments to Others $4,750 $4,750 $10,423.3 Communications, Utilities, and Misc. Charges $33,020 $50,328 $36,024.0 Printing and Reproduction $255 $267 $325.2 Other Services from Non-Federal Sources $247,160 $279,224 $256,425.3 Other Goods and Services from Federal Sources $5,410 $12,577 $20,225.6 Medical Care - $144 $125.7 Operation and Maintenance of Equipment $1,993 $3,218 $3,426.0 Supplies and Materials $45,279 $59,818 $60,031.0 Equipment $191,952 $170,424 $129,832.0 Land and Structures $755 $1,940 $4,741.0 Grants, Subsidies, and Contributions $6,000 $6,000 $6,042.0 Insurance Claims and Indemnities $467 $467 $4Total - Non Pay Object Classes $799,165 $918,322 $803,3

U.S. Secret Service 

USSS - 15
Supplemental Budget Justification Exhibits 

Working Capital Fund 

Appropriation and PPA FY 2019 FY 2020 

(Dollars in Thousands) Enacted Enacted P

Operations and Support $3,773 $4,073 

Mission Support $3,773 $4,073 

Total Working Capital Fund $3,773 $4,073 

Status of Congressionally Requested Studies, Reports and Evaluati

Fiscal Year Due Date Reference/Citation Requirement 

2020 3/19/2020 Senate Report 116-125, Title II, pages 79-

80. 

Strategic Human Capital Plan.—The Committee directs the Secret Service, in coordination with the 

Department’s Chief Human Capital Officer, to provide a strategic human capital plan not later than 90 days after the date of enactment of this act for fiscal years 2020 through 2024 that aligns mission requirements with resource projections and delineates between protective and investigative missions. The plan shall address how projected resources can provide the appropriate combination of special agents and Uniformed Division officers to avoid routine leave restrictions, enable a regular 

schedule of mission-critical training, and provide appropriate levels of support staffing. In addition to addressing how protective and investigative performance measures will be met, the plan shall 

address how the Secret Service will meet training targets for the Presidential and Vice Presidential Protective Divisions with current and planned staffing levels, consistent with the recommendation contained in GAO–19–415. The plan shall also address the annual cost of and participation rate in various hiring and retention initiatives, including the Uniformed Division Retention Bonus. 

U.S. Secret Service 

Authorized/Unauthorized Appropriations 

USSS - 16
Budget Activity 

Dollars in Thousands

Last year of 

Authorization 

Authorized 

Level 

Appropriation 

in Last Year of 

Authorization 

P

Fiscal Year Amount Amount 

Operations and Support N/A N/A N/A 

Mission Support N/A N/A N/A Protective Operations N/A N/A N/A Field Operations N/A N/A N/A 

Basic and In-Service Training and Professional Development N/A N/A N/A Procurement, Construction, and Improvements N/A N/A N/A 

Protection Assets and Infrastructure N/A N/A N/A Operational Communications/Information Technology N/A N/A N/A 

Construction and Facility Improvements N/A N/A N/A 

Research and Development N/A N/A N/A Total Direct Authorization/Appropriation N/A N/A N/A 

Contribution for Annuity Accounts (CAA) N/A N/A N/A 

USSS - 17
U.S. Secret Service 

Proposed Legislative Language 

Operations and Support 

Contingent upon enactment of authorizing legislation to transfer the United States Secret Service to the Department of thexpenses of the United States Secret Service for operations and support, including purchase of not to exceed 652 vehiclereplacement only; hire of passenger motor vehicles; purchase of motorcycles made in the United States; hire of aircraft; District of Columbia; fencing, lighting, guard booths, and other facilities on private or other property not in Government as may be necessary to perform protective functions; conduct of and participation in firearms matches; presentation of awresearch in support of protective intelligence and operations; payment in advance for commercial accommodations as mprotective functions; and payment, without regard to section 5702 of title 5, United States Code, of subsistence expenses protective missions, whether at or away from their duty stations; $2,310,296,000; of which $41,807,000 shall remain ava

2022; of which not to exceed $100,000 shall be to provide technical assistance and equipment to foreign law enforcemeninvestigations within the jurisdiction of the United States Secret Service; and of which $6,000,000 shall be for a grant foinvestigations of missing and exploited children: Provided, That not to exceed $19,125 shall be for official reception and 

Provided further, That funding may be used for calendar year 2020 premium pay in excess of the annual equivalent of thpay contained in section 5547(a) of title 5, United States Code, pursuant to section 2 of the Overtime Pay for Protective U.S.C. 5547 note), as amended by Public Law 115–383. 

Language Provision Explanation 

...[$2,336,401,000] $2,310,296,000 Dollar change only. ...[$39,763,000] $41,807,000 

Dollar change only. This is a sum of all two-year funding requested in Operations and S

$18,000,000 for protective travel. Protective travel needs are dictated by the travel scheddifficult to predict costs from one year to the next. Two-year authority for this requirem

to meet legislated protection requirements despite annual fluctuations in protective traveService’s ability to budget and execute funding for protective travel and other requiremeimpacted by a shorter period of availability. $4,500,000 for National Special Security Events (NSSEs). Requirements for protection 

based on the number of designated NSSEs. Two-year authority allows the Secret Servicrequirement to provide protection for NSSEs despite annual fluctuations in requirement

to budget and execute funding for NSSEs and other requirements would be negatively imavailability. $7,827,000 for protective countermeasures. Two-year funding is necessary for the Secrerespond to emerging threats and adversarial technologies, and provide for unexpected mprotective countermeasures. A shorter period of availability would negatively impact the 

USSS - 18
protect the White House Complex and other protected sites from existing and emerging 

$11,480,000 for minor procurements, construction, and improvements of the James J. RMaintenance requirements at RTC are often unpredictable, such as major system breakdTwo-year authority is necessary to ensure Secret Service can address emergency mainteA shorter period of availability would negatively impact the Secret Service’s ability to pfacilities for RTC students and staff. 

... September 30, [2021] 2022 Updated for period of availability ...[2019] 2020 Calendar year update only 

Procurement, Construction, and Improvements 

Contingent upon enactment of authorizing legislation to transfer the United States Secret Service to the Department of thexpenses of the United States Secret Service for procurement, construction, and improvements, $38,305,000, to remain a

2023. 

Language Provision Explanation

... [$66,989,000]$38,305,000 Dollar change only.

...September 30, [2022]2023 Updated period of availability.

Research and Development 

Contingent upon enactment of authorizing legislation to transfer the United States Secret Service to the Department of thexpenses of the United States Secret Service for research and development, $11,937,000, to remain available until Septe

Language Provision Explanation

...[$12,455,000] $11,937,000 Dollar change only....September 30, [2021]2022 Updated period of availability.

USSS - 19



U.S. Secret Service 

Table of Contents 

Budget Comparison and Adjustments ........................................................................................................................................Personnel Compensation and Benefits .......................................................................................................................................

Non Pay Budget Exhibits ...........................................................................................................................................................Mission Support – PPA ..............................................................................................................................................................

Budget Comparison and Adjustments ..........................................................................................................................Personnel Compensation and Benefits ..........................................................................................................................Non Pay Budget Exhibits ..............................................................................................................................................

Protective Operations – PPA .....................................................................................................................................................

Budget Comparison and Adjustments ..........................................................................................................................Personnel Compensation and Benefits ..........................................................................................................................Non Pay Budget Exhibits ..............................................................................................................................................Protection of Persons and Facilities – PPA Level II ....................................................................................................Protective Countermeasures – PPA Level II ................................................................................................................

Protective Intelligence – PPA Level II ..........................................................................................................................

Presidential Campaigns and National Special Security Events – PPA Level II ...........................................................

Field Operations – PPA .............................................................................................................................................................

Budget Comparison and Adjustments ..........................................................................................................................Personnel Compensation and Benefits ..........................................................................................................................Non Pay Budget Exhibits ..............................................................................................................................................Domestic and International Field Operations – PPA Level II .....................................................................................

Support for Missing and Exploited Children Investigations – PPA Level II ................................................................

Support for Computer Forensics Training – PPA Level II ...........................................................................................

Basic and In-Service Training and Professional Development – PPA ......................................................................................

Budget Comparison and Adjustments ..........................................................................................................................Personnel Compensation and Benefits ..........................................................................................................................Non Pay Budget Exhibits ..............................................................................................................................................

USSS - 20
U.S. Secret Service 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Mission Support 880 812 $481,977 915 884 $500,453 915 902 $506Protective Operations 3,434 3,398 $884,701 3,446 3,427 $1,021,437 3,510 3,478 $999Field Operations 3,098 2,921 $678,927 3,173 3,097 $703,977 3,222 3,172 $688Basic and In-Service Training and Professional Development 238 228 $102,923 243 239 $110,534 249 244 $115Total 7,650 7,359 $2,148,528 7,777 7,647 $2,336,401 7,896 7,796 $2,310Subtotal Discretionary - Appropriation 7,650 7,359 $2,148,528 7,777 7,647 $2,336,401 7,896 7,796 $2,310

The Operations and Support (O&S) appropriation funds United States Secret Service operations, mission support, and as

administration (M&A) costs. The operations funded in the O&S account include protection, protective intelligence, and The appropriation is broken out into the following Programs, Projects, and Activities (PPA): Mission Support: The Mission Support PPA provides funds for enterprise management and administrative services that management operations. Key capabilities include conducting Agency planning and performance management; managing 

oversight of all travel requests; managing Agency workforce; providing physical and personnel security; acquiring goodinformation technology; managing Agency property and assets, including office operations both within the United Stateand leased vehicle fleet; managing Agency communications; managing legal affairs; and providing general management Protective Operations: The Protective Operations PPA provides funds to protect the President and Vice President and tPresidents and their spouses, and other designated individuals such as major Presidential and Vice Presidential candidatecandidates during the general presidential elections. Protective Operations also funds security of the White House CompResidence, and other designated places, as well as designs, coordinates, and implements operational security plans for deSecurity Events (NSSEs). Field Operations: The Field Operations PPA provides funding for domestic and international field offices and headquaof Investigations. Field Office operations protect the Nation's financial service infrastructure through investigations, risk recommend industry safeguards to prevent fraud based on identification and assessment of systemic weaknesses. Basic and In-Service Training and Professional Development: The Basic and In-Service Training and Professional D

funding for basic and advanced personnel training for Uniform Division (UD) officers, Special Agents (SA) criminal inv

USSS - 21
U.S. Secret Service 

Administrative, Professional and Technical (APT) personnel. This PPA also maintains supplies, equipment, maintenancRowley Training Center (RTC). The Budget proposes to transfer the United States Secret Service, including this account, from the Department of HomelDepartment of the Treasury. All functions, personnel, assets, and obligations of the Secret Service, including the functioHomeland Security related to the Secret Service, will transfer to the Department of the Treasury. 

Operations and Support 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $2,148,528 $2,336,401 $Carryover and/or Recoveries (Actual/Estimates/Projections) $19,070 $40,036 Rescissions to Current Year/Budget Year ($5,673) - Net Sequestered Resources - - Reprogrammings/Transfers $11,980 - Supplementals - - Total Budget Authority $2,173,905 $2,376,437 $Collections – Reimbursable Resources $26,730 $26,730 Total Budget Resources $2,200,635 $2,403,167 $Obligations (Actual/Estimates/Projections) $2,133,493 $2,363,404 $Personnel: Positions and FTEEnacted/Request Positions 7,650 7,777 Enacted/Request FTE 7,359 7,647 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 7,811 7,805 FTE (Actual/Estimates/Projections) 7,196 7,675 

*Carryover and obligation figures reported in this table in the FY 2019, FY 2020 and FY 2021 differ from the MAX A-11 database due to adjustmenlater than the MAX A-11 database lock. **In the table above, the rescission line includes the administrative savings rescissions per the Consolidated Appropriation Act, 2019 (P.L. 116-6).

Operations and Support 

Summary of Budget Changes 

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U.S. Secret Service 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Transfer for UNGA from PPF to Presidential Campaign & NSSE Transfer for UNGA to Presidential Campaign & NSSE from PPF 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Annualization of FY20 Counterintelligence and Insider Threat Base Pay FERS Agency Contribution FPS Fee Adjustment GSA Rent Total, Pricing Increases Non-Recur 2020 Presidential Campaign Non-Recur FY 2020 Hiring Costs Non-Recur Sustainment of Funding for Forensic/Inv Support Reductions to Contracts Vehicle Maintenance Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Ammunition Transition Awards Spending Increase Former President Obama's Residence Fully Armored Vehicle (FAV) Armoring New York Field Office (Brooklyn) Protective Countermeasures (Operational Mission Support) Secret Service Staffing Training Classes (SA and UD Officer) Transition Costs - USSS Transfer to Treasury Transition to GSA-Owned Fleet Vehicles Vehicle Support Facility Total, Program Increases 

USSS - 23
U.S. Secret Service 

Budget Formulation Activity Posit

(Dollars in Thousands)

Electronic Crimes Task Force (ECTF) Modernization Information Technology Support and Infrastructure (ITSI) International Cooperative Administrative Support Services (ICASS) IT Support and Infrastructure (Phones) National Computer Forensics Institute (NCFI) Non-Recur IT Infrastructure (Computer Refresh) Olney Training Facility Construction Overtime Above Pay Cap Permanent Change of Station (PCS) Moves Radios and Hubs Retention Initiatives Scheduled Overtime Travel Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 24
U.S. Secret Service 

Operations and Support 

Justification of Transfers 

Transfers FY 2021 

(Dollars in Thousands) Positions 

Transfer 1 - Transfer for UNGA from PPF to Presidential Campaign & NSSE -  Protective Operations -  Protection of Persons and Facilities - Transfer 2 - Transfer for UNGA to Presidential Campaign & NSSE from PPF -  Protective Operations -  Presidential Campaigns and National Special Security Events - Total Transfers - 

Transfers 1-2 – Transfer for UNGA: These transfers properly align costs associated with the United Nations General APresidential Campaign and NSSE PPA.

USSS - 25
U.S. Secret Service 

Operations and Support 

Justification of Pricing Changes 

Pricing Changes FY 2021 

(Dollars in Thousands) Positions 

Pricing Change 1 - 2020 Pay Raise -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Presidential Campaigns and National Special Security Events -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Pricing Change 2 - 2021 Pay Raise -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Pricing Change 3 - Annualization of FY 2020 Secret Service Staffing -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Pricing Change 4 - Annualization of FY20 Counterintelligence and Insider Threat -  Mission Support - 

USSS - 26
U.S. Secret Service 

Pricing Changes FY 2021 

(Dollars in Thousands) Positions 

Pricing Change 5 - Base Pay -  Protective Operations -  Protection of Persons and Facilities -  Field Operations -  Domestic and International Field Operations - Pricing Change 6 - FERS Agency Contribution -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Pricing Change 7 - FPS Fee Adjustment -  Mission Support - Pricing Change 8 - GSA Rent -  Mission Support - Pricing Change 9 - Non-Recur 2020 Presidential Campaign -  Protective Operations -  Presidential Campaigns and National Special Security Events - Pricing Change 10 - Non-Recur FY 2020 Hiring Costs -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Pricing Change 11 - Non-Recur Sustainment of Funding for Forensic/Inv Support -  Field Operations -  Domestic and International Field Operations - Pricing Change 12 - Reductions to Contracts - 

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U.S. Secret Service 

Pricing Changes FY 2021 

(Dollars in Thousands) Positions 

 Mission Support -  Field Operations - 

 Domestic and International Field Operations - 

 Basic and In-Service Training and Professional Development - Pricing Change 13 - Vehicle Maintenance -  Mission Support - Total Pricing Changes - 

Pricing Change 1 – 2020 Pay Raise: This pricing change reflects the costs to support the FY 2020 enacted 3.1 percent one quarter of funding for Calendar Year 2020 and three quarters to annualize the funding in Calendar Year 2021. Pricing Change 2 – 2021 Pay Raise: This pricing change reflects the impact of a 1.0 percent pay raise in calendar year Pricing Change 3 - Annualization of FY 2020 Secret Service Staffing: This pricing change reflects the annualization (FTE) and funding for the staffing included in the FY 2020 Enactment. Pricing Change 4 – Annualization of FY20 Counterintelligence and Insider Threat: This pricing change reflects the funding to support counterintelligence (CI) and insider threat initiatives from Foreign Intelligence Entities (FIEs), as pro

Enactment. Pricing Change 5 – Base Pay: This pricing change reflects an increase to correct for prior year base pay shortfalls. 

Pricing Change 6 – FERS Agency Contribution: This pricing change reflects higher agency FERS contributions in FY 11, agency Federal Employees Retirement System (FERS) contributions will increase in FY 2021. The regular FERS Agincrease by 1.3 percent from 16.0 percent in FY 2020 to 17.3 percent in FY 2021. The Law Enforcement FERS Agency 2.4 percent from 33.4 percent to 35.8 percent. The Agency contribution amount for Civil Service Retirement System (CSPricing Change 7 – FPS Fee Adjustment: This pricing change will be used to offset anticipated increases to Secret SerProtective Service (FPS) basic security fees due to a change in the FPS basic security fee level and assessment model. 

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U.S. Secret Service 

Pricing Change 8 – GSA Rent: This pricing change reflects increasing costs of the annual General Services Administraadditional funding for 20 Massachusetts Avenue, overtime utilities for all Secret Service offices, the anticipated move of projected renovation, moves and furniture expenditures associated with expiring office leases as well as requests for renospace at the White House complex, Foreign Missions, the Naval Observatory, the Eisenhower Executive Office BuildingOffice Building. The cost estimate is the result of an ongoing analysis of GSA leases. Pricing Change 9 – Non-Recur 2020 Presidential Campaign: This pricing change reflects the non-recur of one-time csupport the 2020 Presidential Campaign, including the protection of major candidates, nominees, their spouses, and the ppresidential debates. Pricing Change 10 – Non-Recur FY 2020 Hiring Costs: This pricing change reflects the non-recur of non-pay costs aService Staffing increase included in the FY 2020 Enactment, to include one-time costs for equipment, general supplies, 

Pricing Change 11 – Non-Recur Sustainment of FY 2019 Funding for Forensic/Inv Support: This pricing change r

included in the FY 2019 Enactment for forensic and investigative support. Pricing Change 12 – Reductions to Contracts: This pricing change reflects contract efficiencies that will be gained in program areas across the organization. Contract reductions will be achieved without impacting protective and investigatiPricing Change 13 – Vehicle Maintenance: This pricing change reflects Secret Service efforts to transition from GSA-vehicles across the protection and investigation integrated mission. This transition eliminates maintenance costs and extensi

an aged fleet.

USSS - 29
U.S. Secret Service 

Operations and Support 

Justification of Program Changes 

Program Changes FY 2021 

(Dollars in Thousands) Positions 

Program Change 1 - Ammunition Transition -  Basic and In-Service Training and Professional Development - Program Change 2 - Awards Spending Increase -  Mission Support -  Protective Operations -  Protection of Persons and Facilities -  Protective Countermeasures -  Protective Intelligence -  Field Operations -  Domestic and International Field Operations -  Basic and In-Service Training and Professional Development - Program Change 3 - Electronic Crimes Task Force (ECTF) Modernization -  Field Operations -  Domestic and International Field Operations - Program Change 4 - Former President Obama's Residence -  Protective Operations -  Protection of Persons and Facilities - Program Change 5 - Fully Armored Vehicle (FAV) Armoring -  Protective Operations -  Protection of Persons and Facilities - Program Change 6 - IT Support and Infrastructure (Phones) -  Mission Support - Program Change 7 - Information Technology Support and Infrastructure (ITSI) -  Mission Support - Program Change 8 - International Cooperative Administrative Support Services (ICASS) -  Field Operations -  Domestic and International Field Operations - Program Change 9 - National Computer Forensics Institute (NCFI) -  Field Operations -  Support for Computer Forensics Training - 

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U.S. Secret Service 

Program Changes FY 2021 

(Dollars in Thousands) Positions 

Program Change 10 - New York Field Office (Brooklyn) -  Protective Operations - 

 Protection of Persons and Facilities - 

Program Change 11 - Non-Recur IT Infrastructure (Computer Refresh) -  Mission Support - Program Change 12 - Olney Training Facility Construction -  Basic and In-Service Training and Professional Development - Program Change 13 - Overtime Above Pay Cap -  Protective Operations - 

 Protection of Persons and Facilities - 

 Field Operations - 

 Domestic and International Field Operations - 

Program Change 14 - Permanent Change of Station (PCS) Moves -  Protective Operations - 

 Protection of Persons and Facilities - 

 Field Operations - 

 Domestic and International Field Operations - 

Program Change 15 - Protective Countermeasures (Operational Mission Support) -  Protective Operations - 

 Protective Countermeasures - 

Program Change 16 - Radios and Hubs -  Field Operations - 

 Domestic and International Field Operations - 

Program Change 17 - Retention Initiatives -  Mission Support - Program Change 18 - Scheduled Overtime -  Protective Operations - 

 Protection of Persons and Facilities - 

 Field Operations - 

 Domestic and International Field Operations - 

Program Change 19 - Secret Service Staffing 119  Protective Operations 64 

 Protection of Persons and Facilities 59 

 Protective Countermeasures 1 

USSS - 31
U.S. Secret Service 

Program Changes FY 2021 

(Dollars in Thousands) Positions 

 Protective Intelligence 4  Field Operations 49  Domestic and International Field Operations 49  Basic and In-Service Training and Professional Development 6 Program Change 20 - Training Classes (SA and UD Officer) -  Basic and In-Service Training and Professional Development - Program Change 21 - Transition Costs - USSS Transfer to Treasury -  Mission Support - Program Change 22 - Transition to GSA-Owned Fleet Vehicles -  Mission Support - Program Change 23 - Travel -  Protective Operations -  Protection of Persons and Facilities -  Field Operations -  Domestic and International Field Operations - Program Change 24 - Vehicle Support Facility -  Mission Support - Total Program Changes 119 

Program Change 1 – Ammunition Transition:Description The FY 2021 Request includes an increase of $4.5M to purchase ammunition to support the implementation of and trainweapon system for Secret Service law enforcement personnel. The base for this program is $0.6M. JustificationThe Office of Training (TNG) is responsible for fielding all operational firearms, including training Secret Service persoFY 2021, TNG requires funding to purchase additional ammunition that will be used to train Secret Service law enforcem

handgun weapon system. PerformanceFunding at the requested levels would increase the current purhases of 24 types of live and blank fire ammunition for tra

deployment of firearms to support both training requirements and mission success.

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U.S. Secret Service 

Program Change 2 – Awards Spending Increase: Description The FY 2021 Request includes an increase of $15.2M for Awards Spending. The base for this program is 0 positions, 0 FJustification Only July 12, 2019, OMB issued Memorandum 19-24 Guidance on Awards for Employees and Agency Workforce Fund

directs agencies to review and update their current award spending plans in order to: 1) support the strategic use of awarthroughout the year; 2) address workforce challenges and recognize high performing employees; and 3) recognize those critical to mission achievement.Consistent with this guidance, the FY 2021 Budget requests an increase for awards spenworkforce development. Performance The FY 2021 Request supports the Agency workforce planning requirements by providing a one percent increase for awadditional funding will help drive positive behavior by recognizing accomplishments of Agency personnel, thereby foste

Program Change 3 – Electronic Crimes Task Force (ECTF) Modernization:

Description The FY 2021 Request includes a decrease of $1.6M to the Electronic Crimes Task Force (ECTF) - Forensic Equipment MInvestigations Technology Enhancement). The base for this program is $7.1M. JustificationSecret Service leads ECTFs to prevent, detect, investigate, and disrupt various forms of electronic crimes, including pote

critical infrastructure and financial payment systems. Secret Service operates 38 domestic and two foreign ECTFs that st

enforcement, academia and the corporate sector, to investigate, disrupt, and deter homeland security-related cyber-crime

high consequence events related to missions and critical infrastructure sectors. Funding in FY 2020 allowed the Secret Sthe-art investigative technology and equipment to two additional ECTFs. In FY 2021, the Secret Service requests a decrefunding that will allow the agency to continue to modernize ECTFs, albeit at a slower pace. 

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U.S. Secret Service 

Performance The Secret Service’s network of electronic crimes task forces enabled the Secret Service to prevent over $7.1B in fraud 

forensic examinations on over 11 petabytes of data in FY 2019. Secret Service will continue to use available funding to continue to leverage ECTFs around the world to investigate and disrupt electronic crimes. Program Change 4 – Former President Obama’s Residence:

Description The FY 2021 Request includes an increase of $5.9M for the protection and security of Former President Obama’s seconequipment and services at the new location. There is no base to this program. Justification The Presidential Protection Assistance Act of 1976, P.L. 94 – 524 provides that each protectee of the Secret Service may Governmental property(s) to be secured by the Secret Service. In FY 2020 former President Obama declared an additionDistrict of Columbia that will be secured by the Secret Service. The Secret Service has evaluated the new residence site installation and construction of a comprehensive residential security system. The protectee, former President Obama, wi2021 to FY 2022.Performance The Secret Service is required to secure the residences of former Presidents as per Title 18 U.S.C. 3056. Funding ensureprotection of former President Obama. An increase in funding will improve detection on intrusion, and will allow camer

utilized as a solution for threat detection at the new residence. Program Change 5 – Fully Armored Vehicle (FAV) Armoring: 

Description The FY 2021 Request includes an increase of $14.7M, to maintain an operationally ready FAV program with predictable funding. There is no base for this program. JustificationThe Secret Service is in the process of replacing its entire fleet of FAVs. The Secret Service purchased 532 base platformarmoring them gradually in order provide secure ground transportation to all protectees. The Secret Service has identifieFAVs, including 466 standard FAVs. Once the FAV fleet is fully refreshed, vehicles will be replaced and armored on a r

maintain fleet readiness. FY 2021 funding will support the armoring of 80 standard FAVs. The following chart shows all FAV funding for FY 2021. 

Fully Armored Vehicles (FAVs) FY 2021 

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U.S. Secret Service 

(Dollars in Thousands) O&S PC&I R&D TOTALS 

Standard FAV armoring (80 platforms) $14,650 - - $14,650 Camp David Limousine (CDL) armoring (18 platforms) - $7,380 - $7,380 Research & Development for Gen2 FAV - - $9,357 $9,357 

TOTAL, FAV $14,650 $7,380 $9,357 $31,387 

Funded Operational Fleet 

Fiscal Year Base Platforms Standard CDL Total 

Prior to 2017 17 11 6 17 

2017 Enacted 46 46 - 46 2018 Enacted 179 56 1 57 2019 Enacted 290 109 - 109 2020 Enacted - 79 29 108 

2021 PB - 80 18 98 

Total Funded 532 381 54 435 

Performance Deploying 80 standard FAVs with armoring will enhance protection of current and future protectees. The Secret Service of FAV that no longer provide adequate protection and those that require costly repairs and maintenance 

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U.S. Secret Service 

Program Change 6 – IT Support and Infrastructure (Phones): Description The FY 2021 Request includes a decrease of $0.7M for IT Support and Infrastructure (Phones). The base for this prograJustification Funded as part of the IT Support and Infrastructure program, Mobile Broadband (MBB) service establishes a layer of cytelecom providers and Secret Service cell phones. MBB services and roaming global hotspots allow for Voice over IP cowhich provides a higher level of security. These services are used to connect to iPhones. Cell phones are a critical piece both their investigative and protective missions, as they seldom remain in a single work location. If adversaries are trackcan remove that MBB feature and continue with their iPhone. MBB is required for all employees traveling overseas to h

countries. The MBB can help protect the Secret Service network, as well as employee identity. The Secret Service requests a decrease for Mobile Broadband (MBB) services in FY 2021, which will allow the Secret S

services on 650 devices. The Secret Service does not require MBB services on all of its devices, and will prioritize the p

phones of employees who travel overseas or who otherwise require such services in the performance of their duties. Performance The proposed decrease will not impact the Secret Service’s protective or investigative mission. Funding will continue to 

are required for all employees traveling overseas to high threat countries. The Secret Service will ensure consistent secur

protected sites in the National Capital Region (NCR) and hub sites across the country. MBB will continue to help protec

and the identity of employees. Program Change 7 – Information Technology Support and Infrastructure (ITSI): Description The FY 2021 Request includes a decrease of $7.8M for IT Support and Infrastructure. The base for this program is $103Justification ITSI reflects a convergence of the former Information Integration and Technology Transformation (IITT) modernization sustainment) with the IT Infrastructure (ITI) legacy program. The converged ITSI program supports all Secret Service IT to include the modernized network, the classified network, IT applications, Network Operations Security Center (NOSCmanagement, IT applications support, PC/peripherals refresh, IT Governance & Accountability, cyber-security and infor

communications capabilities to include telephones, radios and support services. 

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U.S. Secret Service 

The Secret Service requests a reduction to ITSI funding, reflecting the completion of the IITT modernization program an

sustainment of the Secret Service’s IT capabilities and equipment. Performance The general reduction across the IT enterprise will have minimal near-term impact on the protective and investigative mService will continue to benefit from modernized IT systems and will achieve efficiencies in the use and sustainment of Secret Service will ensure consistent, secure networks, help desk support, information assurance and communications in criminal investigations. Program Change 8 – International Cooperative Administrative Support Services (ICASS): 

Description The FY 2021 Request includes a decrease of $0.8M to International Cooperative Administrative Support Services (ICASprogram is $7.5M. Justification Secret Service depends on a mutually reliant affiliation with the Department of State (DOS). The ICASS system is the pUnited States Government shares the cost of common administrative support needed to ensure effective operations at its posts abroad. The Capital Security Cost-Sharing Program (CSCS) platform provides the mechanism to collect funds from subject to Chief of Mission authority for their share of the cost of providing diplomatic facilities overseas for each Agen

CSCS platforms allow the Secret Service to exploit an existing operational support structure of reliable service providers 

create incentives to right-size overseas positions. The shared ICASS services include motor pool operations and vehicle maintenance, travel services, reproduction serviceservices, information management, reception and telephone system services, purchasing and contracting, human resourcvouchering, accounting, budget preparation, residential and non-residential security guard services, and building operatifor multiple health and safety issues in foreign countries as well as alleviating liability issues including local labor law vlessens the hardships for Secret Service’s personnel assigned to foreign countries, including housing, leases, and utilitiesBased on the current staffing profile, the Secret Service is able to take a reduction to ICASS and CSCS through cost savre-classifying of positions from Control Access Area (CAA) to Non-CAA in the international field offices. Additionallyinternational investigative mission support from domestic locations for critical multi-national cyber and financial infrast

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U.S. Secret Service 

Performance Secret Service will evaluate protection and investigation operational requirements on a case by case basis to determine wclassified or re-located without impacting mission success or operational tempo. Secret Service’s foreign offices are the 

threats by coordinating and integrating robust counterintelligence, cyber intelligence, and international law enforcement disruptions, and exploitations. Secret Service will continue to use Locally Employed Staff (LES) for investigative work other foreign law enforcement agencies to identify overseas threats that are critical to the United States infrastructure. 

Program Change 9– National Computer Forensics Institute (NCFI): DescriptionThe FY 2021 Request includes a decrease of $26.4M to the NCFI program.. The base for this program is $30.4M. JustificationSecret Service is non-recuring the congressional enhancement to the National Computer Forensics Institute program. Thlocal law enforcement, prosecutors and judicial officials a national standard of training in electronic crimes investigationresponse, computer and mobile device forensics, and high tech crime prosecution. PerformanceThe proposed reduction will allow the NCFI to provide free training and investigative equipment to approximately 500 S2021, a significant benefit to State and local partner organizations. Secret Service will continue to enhance analysis and to protect the Nation’s financial infrastructure through investigative activities. Secret Service will collaborate with its paorganizations to prevent further cyber threats to the Homeland. Program Change 10 – New York Field Office (Brooklyn): Description The FY 2021 Request includes an increase of $5.7M for the Secret Service New York Field Office based in Brooklyn, Nprogram is $5.9M. JustificationThis request includes funding to cover costs associated with re-competing the lease of the New York Field Office in BroGeneral Services Administration (GSA) lease prospectus provided to Congress. This office space is required to house an

261 FTEs and a space requirement of 66,807sq.ft. In addition, the office space has parking lot costs of $1.5M per year, wspaces. Performance 

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U.S. Secret Service 

The office space will be fully supported to allow the workforce to continue to perform its mission operations, prevent ov

quality of work life. Program Change 11 – Non-Recur IT Infrastructure (Computer Refresh): 

Description The FY 2021 Request includes a decrease of $2.8M for IT Support and Infrastructure – Computer Refresh. The base for Justification The ITSI Computer Refresh program is responsible for the technical refresh of all computers, laptops, tablets, printers anSpecial Agents (SA), Uniform Division personnel (UD), Administrative, Professional and Technical (APT) personnel ansupport in accomplishing responsibilities associated with the protection and investigation mission. Secret Service is able extending current refresh cycles. Secret Service generally uses a 3-5 year cycle for refreshing laptops and desktops and a 

printers as reflected in the Secret Service IT Asset Refresh Plan. Performance The requested funding will allow Secret Service to standardize its refresh cycles for laptops, desktops, and printers, ensuemployees have access to working technology in order to perform their job duties. Program Change 12 - Olney Training Facility Construction: 

Description The FY 2021 Request includes a decrease of $5.5M for the Olney training facility in Maryland. The base for this prograJustification Federal Emergency Management Agency (FEMA) currently owns the Olney facility and is transferring ownership of the 

Navy in FY 2020. The facility will no longer be available to hold or conduct Secret Service training. All classes that werfacility will be absorbed and conducted at RTC or other in-town locations. PerformanceThe Secret Service will relocate all training from the Olney facility to the Rowley Training Center (RTC) and other trainoperational impact. 

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U.S. Secret Service 

Program Change 13 – Overtime Above Pay Cap: Description The FY 2021 Request includes a decrease of $10.0M related to Overtime above the pay cap. The base for this program $Justification Public Law 115-383 amended the Overtime Pay for Protective Services Act of 2016 to extend through calendar year 202limitations, the exemption of U.S. Secret Service officers, employees, and agents who perform protective services from pay otherwise applicable to Federal employees. The underlying authority to pay premium pay for protective services houannual pay limitations is executable “only to the extent that an appropriation is provided specifically in an appropriation

FY 2020 DHS Appropriations Act (Public Law 116-93) provided $10.0M for overtime above the pay cap that Secret Sercalendar year 2019. The FY 2021 Request non-recurs this funding and requests no funding for overtime that Secret Serv

above the pay cap for calendar year 2020. The Secret Service will not know the amount of overtime above the pay cap fuyear 2020 until much closer to the end of the year. Performance The Secret Service received funding in FY 2020 to hire additional personnel, and is requesting funds in FY 2021 for addService continues to hire and increase staffing, Secret Service will see decreases in overtime in its SA and UD workforcovertime in excess of annual pay. Program Change 14 - Permanent Change of Station (PCS) Moves: Description The FY 2021 Request includes a decrease $7.0M for Permanent Change of Station (PCS) moves. The base for this progrJustification PCS funds are used to pay for moving employees from one duty location to another. PCS funds are used to move new hi(SAs) and Uniformed Division (UD) Officers, for SA protection refresh (movements to and from protective assignmentspromotions, and for reassignments between HQ and field offices, including foreign locations. Secret Service’s SA career progression plan has three phases. In Phase 1, SAs spend a minimum of three years in a field 

investigative work and acting as “surge capacity” for protective details. This phase is critical to develop the skills necess

protective assignment in Phase 2. Phase 2 assignments are in the Presidential and Vice Presidential Protective DivisionsSpecial Operations, or Counter Assault Teams and generally last six to eight years. Upon completion of their Phase 2 as“opt-in” to stay at their permanent protective assignment, request reassignment to another permanent protective assignm

to a headquarters or field office position. In recent years, Secret Service has seen an increase in agents choosing to “opt-

USSS - 40
U.S. Secret Service 

assignment, leading to lower PCS costs. Performance The reduction to PCS funding is not expected to impact the Secret Service mission or operations. The PCS program is thprogression model. To meet the integrated protection and investigation mission, it is critical that law enforcement officer

protective assignments on a routine and predictable schedule. The requested funding supports the Secret Service’s career ensure that employees have access to new duty assignments, as appropriate.Program Change 15 – Protective Countermeasures (Operational Mission Support): 

Description The FY 2021 Request includes an increase of $5.4M for Protective Countermeasures - Operational Mission Support (OMprogram is 166 positions, 165 FTE, and $61.8M. JustificationOMS supports the protection of the President and Vice President at the White House Complex (WHC), the Vice Presidetemporary sites from emerging explosive, chemical, biological, radiological, and cyber-threats. The advanced protective part of OMS are designed to address both established and evolving threats. The requested funding will support continued 

equipment for enhanced chemical, biological, and radiological detection systems; presidential audio countermeasures; W

protective structures; an enhanced White House camera system; cyber-protection activities, and portable security system

The implementation of OMS is a multi-year effort that requires O&S funding each fiscal year to address these threats. Timplementation of OMS capabilities requires predictable funding support for sustainment. The OMS program uses O&S staff ongoing activities; PC&I funds to implement planned capabilities; and R&D funds to test and adapt to emerging tecContinual refresh and update/upgrade of technical countermeasures ensure a safe environment for the President, Vice PrService protectees. 

USSS - 41
U.S. Secret Service 

Operational Mission Support (OMS) 

(Dollars in Thousands) 

FY 2021 

O&S 

(single 

year) 

O&S 

(multiyear) Total, O&S PC&

Enhanced Explosive Detection Systems $4,786 $401 $5,187 Enhanced Chemical, Biological, and Radiological Detection Systems $8,675 $325 $9,000 $Presidential Audio Countermeasures $3,600 $900 $4,500 $14White House Physical Protective Structures $11,867 $5,691 $17,558 $1Enhanced White House Camera System $2,040 $510 $2,550 $1Cyber Protection Activities $8,200 - $8,200 Development of Next Generation Presidential Limousine - - - $1Portable Security Systems for Presidential Venues $300 - $300 $1Protective Systems and Weapons Testing Program - - - 

Total, Program Costs $39,468 $7,827 $47,295 $29

Positions (166 - 145 APT and 21 UD) $21,146 - $21,146 

Total, Position Costs $21,146 - $21,146 

Total, OMS $60,614 $7,827 $68,441 $29

USSS - 42
U.S. Secret Service 

Operational Mission Support (OMS) Initiatives 

(Dollars in Thousands) 

 FY 2019 

Enacted 

 FY 2020 

Enacted 

 F

Pr

B

Enhanced Explosive Detection Systems $4,972 $4,907 Enhanced Chemical, Biological, and Radiological Detection Systems $8,050 $9,374 Presidential Audio Countermeasures $16,169 $11,929 White House Physical Protective Structures $26,210 $32,467 Enhanced White House Camera System $3,000 $6,650 Cyber Protection Activities $6,800 $7,002 Development of Next Generation Presidential Limousine $11,000 $11,000 Portable Security Systems for Presidential Venues $1,250 $1,630 Protective Systems and Weapon Testing Program $2,250 $1,705 

Subtotal, Program Costs $79,701 $86,664 

Positions (166) to Support New and Enhanced Programs $15,952 $19,983 

Total $95,653 $106,647 

Performance Funding enables Secret Service to sustain and refresh legacy protective technology and countermeasures. The operations Service protective technologies ensures mission critical systems remain in good operational condition, avoids system fai

compounding out-year cost impacts and operational delays. Secret Service will continue to prioritize funding to minimiz

outages. Detailed descriptions of FY 2021 OMS requirements are classified. Program Change 16 – Radios and Hubs:Description The FY 2021 Request includes a decrease of $10.0M for Radios and Hubs, also known as the Field Radio System. The b$10M.JustificationSecret Service has a requirement to upgrade/refresh the entire core enterprise field radio network infrastructure. Funding enactment supported the integrated protective and investigative mission by providing the modern infrastructure needed fmobile vehicle radios, to include Radio Sites, HUBs, Networks, and Antennas. Funds supported the field expansion proj

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U.S. Secret Service 

supports New York City, Newark, Miami, Dallas, Los Angeles and Chicago Offices with redundant HUBs at the backup Hub (Field Radio System) also supports the ability to expand capabilities for National Special Security Events (NSSEs) 

DNC and Inauguration. Four tactical HUBs are included which supports the integration of NSSE deployed tactical systeCore. 

‐ Phase 1: ~97 Sites and ~70 Radio Networks.  Objective: The first phase (Phase 1) attempts to address Region 1 radio infrastructure which includes the New Yo

surrounding areas. This allows reliability and support to improve the Secret Service annual protective activities fAssembly (UNGA). 

‐ Phases 2: Addresses the remaining radios enterprise-wide: ~423 sites and ~271 Radio Networks. 

In FY 2021, the Secret Service will continue to execute projects funded in FY 2020, focusing on the Phase 1 projects in 

The Budget does not request additional funds for radios and hubs in FY 2021. Performance

The expansion of the CORE to Enterprise-wide along with adding Regional radio HUBs allows the Secret Service to beg

the CONUS and enhance radio security and dispatch capabilities. This increases interoperability with external partners thThe Secret Service will continue to modernize and expand its communications capabilities to enhance mission effectiven

Program Change 17 – Retention Initiatives: 

Description The FY 2021 Request includes a decrease of $11.9M for Retention Initiatives for Secret Service. The base for this progrJustification To achieve its mission, Secret Service relies on the recruitment, specialized training, and retention of highly capable indiand APT support personnel. Retention programs include Student Loan Repayment, Tuition Assistance, Childcare SubsidSecret Service to retain skilled and trained personnel for critical operational missions. This request non-recurs the FY 2020 congressional enhancements to retention initiatives, which are no longer needed to 

qualified personnel. Performance The Secret Service received funding in FY 2020 to hire additional personnel, and is requesting funds in FY 2021 for addwill continue to hire positions to cut down on forced overtime in order to improve morale and retain Secret Service persoalso monitor workforce morale and continue to explore efforts to reduce attrition and maintain a qualified staff. Program Change 18 – Scheduled Overtime: 

USSS - 44
U.S. Secret Service 

Description The FY 2021 Request includes a decrease of $7.5M to scheduled overtime. The base for this program is $79.9M. Justification The Secret Service requests a decrease to scheduled overtime funding in FY 2021. As Secret Service continues to hire anSecret Service will see decreases in overtime requirements for its SA and UD workforces, since reliance on overtime wisustain the Secret Service’s high operational tempo. While additional staff do not immediately translate into a reduction 

funding, Secret Service estimates that onboarding additional positions funded in FYs 2018 and 2019 should bring down by FY 2021 sufficient to support a decrease in overtime funding. Performance Secret Service will continue to emphasize hiring additional employees to share the workload with existing employees, an

analyze overtime requirements to ensure that protective and investigative operations are maintained at the current high osame time, Secret Service will also continue efforts to bring down the number of overtime hours required to sustain operemployees on protective assignments use “flex” schedules, wherein weekly schedules are routinely modified to fit operastandard work week, which minimizes the use of scheduled overtime. Program Change 19 – Secret Service Staffing: Description The FY 2021 Request includes an increase of 119 positions, 61 FTE, and $20.5M to increase staffing for protective and support personnel. The base for this program is 7,777 positions, 7,647 FTE, and $1.5B. Justification Secret Service’s human capital needs are driven by mission requirements, a mission that must react quickly to ever-chan

events, requiring the Agency to be operationally nimble in managing increasing workloads and keep pace with adversari

continues to grow both in size and complexity – increasingly sophisticated financial cyber-crimes, evolving weapon tech

demanding presidential campaigns all require more of Secret Service workforce in both skillset and quantity. Secret Service has identified FY 2021 staffing needs for all three categories of Secret Service workforce. The FY 2021 R

 An increase of 44 Special Agent (SA) positions to carry out both the protective and investigative mission of Secret S

image of SAs are of men and women in dark suits around the President, most work in field offices around the world acting as a “surge capacity” of protective support when needed in their region. All SAs begin their careers in field of

investigative and protective skills necessary to become a successful protective agent. 

 An increase of 40 Uniformed Division (UD) positions to not only provide security at the iconic WHC, but also at the 

major events taking place throughout the United States, and the embassies of countries with presences in Washingtonspecially-trained UDs support protective operations in highly skilled tactical units. 

USSS - 45
U.S. Secret Service 

 An increase of 35 Administrative/Professional/and Technical (APT) positions, which are a diverse group of highly sk

mission success through a variety of professional business functions and direct mission support activities. A strong A

enforcement personnel the ability to focus on core operations improving overall organizational health. 

This combined workforce undertakes fluid and changing operations in the areas of protection, protective intelligence, cribusiness governance and support activities necessary to run a global enterprise. Performance Based on Secret Service’s success in achieving its staffing targets in recent fiscal years, and through the agency’s internarequirements beyond FY 2020, the funding requested in FY 2021 will grow Secret Service staffing up to 7,896 positionscontinued growth of SA levels. With these funds Secret Service personnel will be able to have a better work-life balance 

more predictable scheduled training and less leave restrictions. Program Change 20 – Training Classes (SA and UD Officer): 

Description The FY 2021 Request includes an increase of $3.7M for Training Classes for Special Agents and Uniform Division officprogram is $10.5M. Justification The requested funding will provide for 7 additional basic training classes for new SAs and UDs commensurate with incrincludes supplies; initial issuance of uniforms, weapons, and ammunition to new hires; and contractual services to bring exercises. In total, the Secret Service plans on conducting 28 training classes in FY 2021 - 14 for SA training and 14 for Performance Funding at the requested levels would allow Secret Service to meet all of the projected new recruit training needs for boBasic training is an essential and integral part of meeting the Secret Service Strategic Plan Framework for growing and s(Strategic Goal 2). Training would allow the Agency's law enforcement to grow to a capacity of available trained personlives and property of those under its protection, to include the President, the Vice President, their families, and foreign h

USSS - 46
U.S. Secret Service 

Program Change 21 – Transition Costs - USSS Transfer to Treasury: DescriptionThe FY 2021 Request includes an increase of $20.0M for implementing the transition of Secret Service from the Departto the Department of Treasury. Funding is requested contingent on the passage of authorizing legislation effectuating the for this program.JustificationThe Budget proposes to transfer the United States Secret Service from the Department of Homeland Security to the Depfunding includes transition costs, primarily contract support, to move the functions, personnel, assets and obligations of Department of Treasury. PerformanceThe funding will help ensure a seamless transition to the Treasury. Specifically, funding will be used for the the transfer 

systems, to include IT and Human Resource systems; communication suites; computer and network capabilities; cyber-ssoftware; and other administrative process costs. 

Program Change 22 – Transition to GSA-Owned Fleet Vehicles: Description The FY 2021 Request includes an increase of $3.5M for the Secret Service fleet. The base for this program is $14.0M. Justification This increase reflects the transition from Secret Service-owned to GSA-owned vehicles to reduce maintenance costs and vehicle refresh rates. The funding maintains the lease of vehicles through GSA Consolidation. GSA Consolidation is the process through which GSA incorporates Agency-owned fleets into the GSA-owned fleet. It in

their owned vehicles to GSA and then leasing those vehicles back until they are replaced on GSA's replacement timetablMany of the vehicles in Secret Service inventory pre-date the 2008 production year even though the standard replacemenyears. By transitioning to a leased program, a refresh of vehicles can be accomplished, resulting in fleet compliance of th60,000 miles as outlined by GSA. Currently, Secret Service has vehicles that are operating at mileage above 90,000 mile

reliable to support the Secret Service mission. Having reliable transportation for SAs and UDs ensures their safety while 

essential to completing the dual mission of protection and investigation. Performance 

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U.S. Secret Service 

The funding will allow Secret Service to maintain a sufficient number of vehicles to support protective and investigative leasing program, over the long-term Secret Service could realize savings of 10-20 percent over purchasing vehicles. The look for and identify vehicle efficiencies specifically in fuel and oil expenses. Program Change 23 – Travel: Description The FY 2021 Request includes a decrease of $21.1M to operational travel. The base for this program is $205.8M. Justification Travel is a key component of investigations and a major cost driver for protective and investigative operations. Secret Sedecrease to travel for two reasons. First, Secret Service is able to reduce travel costs without incurring unreasonable levels of operational risk. Secret Servicshortening the length of some protective advances, reducing the number of personnel in certain traveling protective deta

travel to requests that cannot be performed by local agents or other law enforcement agencies. Secret Service weighs thebasis to minimize impact to the mission while enhancing financial stewardship. Second, with the emphasis on increased staffing over the last several years, Secret Service has increased its SA workforcincreasing the availability of SAs in the field to provide support for protective travel advances and assist on cases led by full use of the geographically dispersed workforce. Performance The proposed reduction is not expected to impact mission performance. The Secret Service will continue to use its traveperformance of its protective and investigative missions. Program Change 24 – Vehicle Support Facility: 

Description The FY 2021 Request includes an increase of $4.0M for a Vehicle Support Facility, which will help ensure the operationvehicles are being appropriately housed and maintained. There is no base to this program.

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U.S. Secret Service 

Justification Secret Service requires a secure storage and maintenance facility for the Office of Protective Operations (OPO) surge fleawaiting armoring, and the full Technical Security Division (TSD) fleet of protective support vehicles, and equipment. Tneeded to conduct necessary vehicle and equipment maintenance and administrative duties in support of protective missThe facility and parking area would provide space estimated at 180,000 square feet, enhanced capabilities in the areas of equipment storage, back-up power, vehicle and equipment maintenance work area, enhanced ventilation system, climate height, and the ability to support a vehicle weight in excess of 15,000 lbs./vehicle at any point within the facility and par

facility must be capable of supporting Sensitive Compartmented Information Facility (SCIF) and classified material stor

parking, and miscellaneous facilities for personnel.Performance The increase will support the Secret Service Protective Mission, which requires a dedicated vehicle storage and maintenwould house an OPO surge fleet of vehicles, base platforms awaiting FAV armoring, and the entire TSD protective suppdedicated facility, the Secret Service will continue to store vehicles at various facilities around the National Capital Regi

USSS - 49
U.S. Secret Service 

Operations and Support 

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Mission Support 880 812 $160,299 $197.41 915 884 $166,486 $188.33 915 902 $163,623 $181.4 Protective Operations 3,434 3,398 $698,980 $205.7 3,446 3,427 $729,247 $212.79 3,510 3,478 $748,204 $215.12 Field Operations 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 Basic and In-Service Training and Professional Development 238 228 $43,848 $192.32 243 239 $46,093 $192.86 249 244 $48,848 $200.2 Total 7,650 7,359 $1,448,994 $196.9 7,777 7,647 $1,497,523 $195.83 7,896 7,796 $1,557,180 $199.74 Discretionary - Appropriation 7,650 7,359 $1,448,994 $196.9 7,777 7,647 $1,497,523 $195.83 7,896 7,796 $1,557,180 $199.74 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $757,775 $772,387 $817,0711.3 Other than Full-Time Permanent $12,668 $13,113 $14,4011.5 Other Personnel Compensation $215,938 $242,533 $229,3912.1 Civilian Personnel Benefits $462,613 $469,490 $496,30Total - Personnel Compensation and Benefits $1,448,994 $1,497,523 $1,557,18Positions and FTEPositions - Civilian 7,650 7,777 7,89FTE - Civilian 7,359 7,647 7,79

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U.S. Secret Service 

Operations and Support 

Permanent Positions by Grade-Appropriation 

Grades and Salary Range FY 2019 FY 2020 FY 2

(Dollars in Thousands) Enacted Enacted President

Total, SES 55 66 GS-15 254 260 GS-14 756 757 GS-13 2,641 2,590 GS-12 353 406 GS-11 384 441 GS-10 18 19 GS-9 906 926 GS-8 323 328 GS-7 232 238 GS-6 13 14 GS-5 25 26 GS-4 30 31 GS-3 25 26 GS-2 8 8 Other Graded Positions 1,627 1,641 Total Permanent Positions 7,650 7,777 Total Perm. Employment (Filled Positions) EOY 7,650 7,777 Position LocationsHeadquarters 4,903 4,990 U.S. Field 2,683 2,717 Foreign Field 64 70 AveragesAverage Personnel Costs, ES Positions 157,898 154,954 Average Personnel Costs, GS Positions 93,615 91,869 Average Grade, GS Positions 12 12 

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U.S. Secret Service 

Operations and Support 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Mission Support $321,678 $333,967 $Protective Operations $185,721 $292,190 $Field Operations $133,060 $148,280 Basic and In-Service Training and Professional Development $59,075 $64,441 Total $699,534 $838,878 $Discretionary - Appropriation $699,534 $838,878 $

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $146,792 $211,783 $170,522.0 Transportation of Things $12,454 $11,941 $5,723.1 Rental Payments to GSA $102,878 $105,441 $98,723.2 Rental Payments to Others $4,750 $4,750 $10,423.3 Communications, Utilities, and Misc. Charges $33,020 $50,328 $36,024.0 Printing and Reproduction $255 $267 $325.2 Other Services from Non-Federal Sources $186,484 $236,079 $206,525.3 Other Goods and Services from Federal Sources $5,410 $12,577 $20,225.6 Medical Care - $144 $125.7 Operation and Maintenance of Equipment $1,993 $3,218 $3,426.0 Supplies and Materials $45,133 $59,818 $60,031.0 Equipment $153,143 $134,125 $129,532.0 Land and Structures $755 $1,940 $4,741.0 Grants, Subsidies, and Contributions $6,000 $6,000 $6,042.0 Insurance Claims and Indemnities $467 $467 $4Total - Non Pay Object Classes $699,534 $838,878 $753,1

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Operations and Support 

Mission Support – PPA 

Budget Comparison and Adjustments 

 Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Mission Support 880 812 $481,977 915 884 $500,453 915 902 $506Total 880 812 $481,977 915 884 $500,453 915 902 $506Subtotal Discretionary - Appropriation 880 812 $481,977 915 884 $500,453 915 902 $506

PPA Level I Description The Mission Support PPA provides funds for enterprise management and administrative services that sustain day-to-day operations. Key capabilities include conducting Agency planning and performance management; managing finances, increquests; managing agency workforce; providing physical and personnel security; acquiring goods and services; managin

managing agency property and assets, including office operations both within the United States and abroad and the ownemanaging agency communications; managing legal affairs; and providing general management and administration. 

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Operations and Support 

Mission Support – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $481,977 $500,453 Carryover and/or Recoveries (Actual/Estimates/Projections) - - Rescissions to Current Year/Budget Year ($507) - Net Sequestered Resources - - Reprogrammings/Transfers $2,400 - Supplementals - - Total Budget Authority $483,870 $500,453 Collections – Reimbursable Resources $770 $770 Total Budget Resources $484,640 $501,223 Obligations (Actual/Estimates/Projections) $481,470 $501,223 Personnel: Positions and FTEEnacted/Request Positions 880 915 Enacted/Request FTE 812 884 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 839 915 FTE (Actual/Estimates/Projections) 771 884 

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Operations and Support 

Mission Support – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Annualization of FY20 Counterintelligence and Insider Threat FERS Agency Contribution FPS Fee Adjustment GSA Rent Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Reductions to Contracts Vehicle Maintenance Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Transition Costs - USSS Transfer to Treasury Transition to GSA-Owned Fleet Vehicles Vehicle Support Facility Total, Program Increases Information Technology Support and Infrastructure (ITSI) IT Support and Infrastructure (Phones) Non-Recur IT Infrastructure (Computer Refresh) Retention Initiatives Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

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Operations and Support 

Mission Support – PPA 

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Mission Support 880 812 $160,299 $197.41 915 884 $166,486 $188.33 915 902 $163,623 $181.4 Total 880 812 $160,299 $197.41 915 884 $166,486 $188.33 915 902 $163,623 $181.4 Discretionary - Appropriation 880 812 $160,299 $197.41 915 884 $166,486 $188.33 915 902 $163,623 $181.4 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $80,199 $83,812 $77,3511.3 Other than Full-Time Permanent $1,118 $1,170 $1,2511.5 Other Personnel Compensation $18,076 $18,368 $19,6212.1 Civilian Personnel Benefits $60,906 $63,136 $65,38Total - Personnel Compensation and Benefits $160,299 $166,486 $163,62Positions and FTEPositions - Civilian 880 915 91FTE - Civilian 812 884 90

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Operations and Support 

Pay Cost Drivers

Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budget 

FTE Amount Rate FTE Amount Rate FTE Amount Rate F

Administrative, Professional, and Technical Support 702 $128,825 $180.00 774 $135,697 $175.30 792 $133,374 $168.39 Special Agents 110 $31,474 $286,00 110 $30,789 $279.90 110 $30,259 $275.08 Total – Pay Cost Drivers 812 $160,299 $197.41 884 $166,486 $188.33 902 $163,623 $181.40 

Explanation of Pay Cost Drivers Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servicprofessional, and technical support employees who provide a variety of professional business functions and direct missio

to this cost driver in FY 2021 reflect increases of FTEs associated with the annualization of FY 2020 Secret Service Staf

health benefits and FERS Agency contribution rates and results from pay raises in FY 2019, FY 2020, FY 2021. 

Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in F

raises in FY 2019, FY 2020, FY 2021, and increases in health benefits and FERS Agency contribution rates. 

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Operations and Support 

Mission Support – PPA 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Mission Support $321,678 $333,967 $Total $321,678 $333,967 $Discretionary - Appropriation $321,678 $333,967 $

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $10,892 $11,208 $11,222.0 Transportation of Things $2,128 $3,712 $3,723.1 Rental Payments to GSA $102,878 $104,211 $107,223.2 Rental Payments to Others $4,750 $4,750 $4,723.3 Communications, Utilities, and Misc. Charges $19,404 $19,577 $19,524.0 Printing and Reproduction $254 $254 $225.2 Other Services from Non-Federal Sources $89,009 $87,461 $85,625.3 Other Goods and Services from Federal Sources - $5,061 $14,025.6 Medical Care - $5 25.7 Operation and Maintenance of Equipment $1,221 $1,415 $2,126.0 Supplies and Materials $25,147 $29,869 $23,931.0 Equipment $64,828 $65,277 $64,932.0 Land and Structures $755 $755 $4,742.0 Insurance Claims and Indemnities $412 $412 $4Total - Non Pay Object Classes $321,678 $333,967 $342,7

USSS - 58
Operations and Support 

Non Pay Cost Drivers 

Non Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President’s B

Rent $107,628 $108,961 Information Technology Support and Infrastructure (ITSI) $104,143 $103,752 Other Costs $109,907 $121,254 Total – Non Pay Cost Drivers $321,678 $333,967 

Explanation of Non Pay Cost Drivers Rent: Secret Service maintains office space around the country and internationally, including 42 domestic field offices, resident offices, 13 resident agencies, and 28 domiciles. Changes in cost reflect increases to GSA rent rates as well as inadditional staff hired in FY 2020 and FY 2021. Information Technology Support and Infrastructure (ITSI): The converged ITSI program supports all Secret Servicwide to include the modernized network, the classified network, IT applications, Network Operations Security Center (N

program management, IT applications support, PC/peripherals refresh, IT Governance & Accountability, cyber-security and all communications capabilities to include telephones, radios and support services. Changes in cost reflects a decreaconvergence of the former Information Integration and Technology Transformation (IITT) modernization program (now Infrastructure (ITI) legacy program. Other Costs: Funding in this cost driver supports other costs for Secret Service’s business management operations, inclFund (WCF) contributions and travel, training, supplies, and materials to support the workforce. Changes in this cost dri

increases to Federal Protective Service fees, leased vehicles, and costs associated with FY 2020 staffing growth; decreas

testing and owned fleet vehicles. 

USSS - 59
Operations and Support 

Budget Activities: The following table provides a detailed breakdown of FY 2019-2021 Converged ITSI program funding by project and c

Information Technology Support and 

Infrastructure (ITSI) 

(Dollars in Thousands)

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

President’s 

Budget 

FY 202

FY 202

Chang

Enterprise Capabilities $43,488 $51,358 $46,370 ($4,9

 Sustainment (O&S) 

Network Program $16,202 $19,542 $17,684 ($1,8

IT Applications Support $8,530 $8,330 $8,330 

IT NOSC Support Services $5,184 $5,314 $5,314 

IT Program Management $6,242 $6,272 $6,272 

CIO Enterprise License Agreements (ELAs) $4,058 $4,058 $3,758 ($3

PC/Peripherals Refresh Program $1,600 $6,170 $3,340 ($2,8

Mission Essential Systems (MES) - INT-NET $300 $300 $300 

IT Governance & Accountability $938 $938 $938 

CIO Office Allocation $434 $434 $434 

Control Capabilities $22,181 $16,467 $12,320 ($4,1

 Investment (PC&I) 

Multi-Level Security (MLS) Investment $5,045 - - 

 Sustainment (O&S) 

Cross Domain & MLS Support & Licensing $601 $2,908 $619 ($2,2

Cyber Security / Info assurance Program $10,884 $10,707 $8,849 ($1,8

JOC Program $5,651 $2,852 $2,852 

Mission Support Capabilities $5,050 $1,250 - ($1,2

 Investment (PC&I) 

Enterprise Resource Management System (ERMS) $3,800 - - 

 Sustainment (O&S) 

PTMS Support $1,250 $1,250 - ($1,2

Communications Capabilities $33,424 $34,677 $33,727 ($9

 Sustainment (O&S) 

Telephone Landlines, Cellphones & Circuits $17,800 $18,764 $18,062 ($7

Telephone Repairs and Support $2,904 $3,504 $3,504 

USSS - 60
Operations and Support 

Radio Repairs and Support $2,433 $2,433 $2,433 

CIO Enterprise Field Radios (Including Crown 

Radios) $3,494 $3,550 $3,550 

CIO Integrated Command & Control System (ICCS) $2,148 $2,148 $2,148 

Communications Equipment Refresh and Upgrades $4,645 $4,278 $4,030 ($2

Grand Total ITSI Program: $104,143 $103,752 $92,417 ($11,3

USSS - 61
Operations and Support 

Protective Operations – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Protection of Persons and Facilities 3,048 3,037 $740,895 3,047 3,037 $754,527 3,106 3,079 $794Protective Countermeasures 156 137 $56,917 165 160 $61,756 166 165 $68Protective Intelligence 230 224 $49,395 234 230 $49,955 238 234 $52Presidential Campaigns and National Special Security Events - - $37,494 - - $155,199 - - $83Total 3,434 3,398 $884,701 3,446 3,427 $1,021,437 3,510 3,478 $999Subtotal Discretionary - Appropriation 3,434 3,398 $884,701 3,446 3,427 $1,021,437 3,510 3,478 $999

PPA Level I DescriptionThe Protective Operations PPA funds the protection of the President and Vice President and their families, former Presidother designated individuals. Protective Operations also provides for the security and protection of the WHC, the Vice P

other designated places. In addition, the program investigates, evaluates, disseminates, and maintains information concer

perceived threats to protectees and NSSEs. Protective Operations, staffed by Special Agents (SAs), Uniformed Officers 

professional, and technical (APTs) personnel, works closely with military and Federal, State, county, local, and internati

organizations. Major Presidential and Vice Presidential candidates, and spouses of eligible candidates are protected within 120 days of elections. The Protective Operations program designs, coordinates, and implements operational security plans for designprogram investigates, evaluates, disseminates, and maintains information concerning known, potential, or perceived thre

sites and locations. The program is staffed by special agents, uniformed officers, and administrative, professional, and te

closely with the military and Federal, State, county, local, and international law enforcement organizations. These Secreauthorized by Title 18 U.S.C. § 3056, which requires Secret Service to provide physical safety and security to certain peand certain major events. Protective Operations includes four Level II PPAs: 

USSS - 62
Operations and Support 

Protection of Persons and Facilities: This program executes security operations that prevent, deter, and respond to threfacilities. Protective Countermeasures: This program enhances the protection of the President and Vice President at the WHC, thResidence, and temporary sites from emerging explosive, chemical, biological, radiological, and cyber-threats. Protective Intelligence: This program ensures protective intelligence processes, policies, and systems provide quality insecurely and efficiently support the protective mission by investigating subjects (individuals or groups) and activities thaand protected events, which includes counter-intelligence. Presidential Campaigns and National Special Security Events (NSSEs): This program protects major Presidential ancandidates, and spouses of eligible candidates during the general presidential elections. In addition, this program designsimplements operational security plans for designated NSSEs, including investigating, evaluating, disseminating, and mato protectees and NSSEs. 

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Operations and Support 

Protective Operations – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $884,701 $1,021,437 Carryover and/or Recoveries (Actual/Estimates/Projections) $16,831 $33,254 Rescissions to Current Year/Budget Year ($5,166) - Net Sequestered Resources - - Reprogrammings/Transfers $2,766 - Supplementals - - Total Budget Authority $899,132 $1,054,691 $Collections – Reimbursable Resources $6,074 $6,074 Total Budget Resources $905,206 $1,060,765 $Obligations (Actual/Estimates/Projections) $867,952 $1,032,402 $Personnel: Positions and FTEEnacted/Request Positions 3,434 3,446 Enacted/Request FTE 3,398 3,427 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 3,563 3,466 FTE (Actual/Estimates/Projections) 3,235 3,447 

USSS - 64
Operations and Support 

Protective Operations – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Transfer for UNGA from PPF to Presidential Campaign & NSSE Transfer for UNGA to Presidential Campaign & NSSE from PPF 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Base Pay FERS Agency Contribution Total, Pricing Increases Non-Recur 2020 Presidential Campaign Non-Recur FY 2020 Hiring Costs Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Former President Obama's Residence Fully Armored Vehicle (FAV) Armoring New York Field Office (Brooklyn) Protective Countermeasures (Operational Mission Support) Secret Service Staffing Total, Program Increases Overtime Above Pay Cap Permanent Change of Station (PCS) Moves Scheduled Overtime Travel Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

Protective Operations – PPA 

USSS - 65
Operations and Support 

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Protection of Persons and Facilities 3,048 3,037 $633,833 $208.7 3,047 3,037 $637,142 $209.79 3,106 3,079 $670,753 $217.85 Protective Countermeasures 156 137 $15,913 $116.15 165 160 $19,941 $124.63 166 165 $21,237 $128.71 Protective Intelligence 230 224 $43,635 $194.8 234 230 $44,054 $191.54 238 234 $46,618 $199.22 Presidential Campaigns and National Special Security Events

- - $5,599 - - - $28,110 - - - $9,596 - 

Total 3,434 3,398 $698,980 $205.7 3,446 3,427 $729,247 $212.79 3,510 3,478 $748,204 $215.12 Discretionary - Appropriation 3,434 3,398 $698,980 $205.7 3,446 3,427 $729,247 $212.79 3,510 3,478 $748,204 $215.12 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $373,431 $377,595 $402,0811.3 Other than Full-Time Permanent $6,440 $6,637 $7,1511.5 Other Personnel Compensation $109,157 $132,549 $113,9412.1 Civilian Personnel Benefits $209,952 $212,466 $225,02Total - Personnel Compensation and Benefits $698,980 $729,247 $748,20Positions and FTEPositions - Civilian 3,434 3,446 3,51FTE - Civilian 3,398 3,427 3,47

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Operations and Support 

Protective Operations – PPA 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protection of Persons and Facilities $107,062 $117,385 $Protective Countermeasures $41,004 $41,815 Protective Intelligence $5,760 $5,901 Presidential Campaigns and National Special Security Events $31,895 $127,089 Total $185,721 $292,190 $Discretionary - Appropriation $185,721 $292,190 $

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $65,965 $127,350 $102,122.0 Transportation of Things $5,077 $4,750 $623.1 Rental Payments to GSA - $401 $523.2 Rental Payments to Others - - $5,623.3 Communications, Utilities, and Misc. Charges $756 $17,282 $2,724.0 Printing and Reproduction $1 $13 $25.2 Other Services from Non-Federal Sources $55,741 $106,242 $86,425.3 Other Goods and Services from Federal Sources - $95 $125.6 Medical Care - $7 $25.7 Operation and Maintenance of Equipment - $195 $326.0 Supplies and Materials $9,430 $9,135 $7,431.0 Equipment $48,726 $25,510 $45,132.0 Land and Structures - $1,185 42.0 Insurance Claims and Indemnities $25 $25 $Total - Non Pay Object Classes $185,721 $292,190 $251,2

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Protective Operations – PPA Protection of 

Protection of Persons and Facilities – PPA Level II 

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Protection of Persons and Facilities 3,048 3,037 $740,895 3,047 3,037 $754,527 3,106 3,079 $794Total 3,048 3,037 $740,895 3,047 3,037 $754,527 3,106 3,079 $794Subtotal Discretionary - Appropriation 3,048 3,037 $740,895 3,047 3,037 $754,527 3,106 3,079 $794

PPA Level II Description The Protection of Persons and Facilities PPA funds the execution of security operations that prevent, deter, and respond facilities. Secret Service has a statutory mandate to protect the President and Vice President and their families, former Prvisiting foreign heads of state, and other designated individuals. Secret Service also secures and protects the WHC, Vice foreign diplomatic missions located in the Washington, DC metropolitan area, and other designated places. This PPA fupermanent protective details and UD that provide protection of facilities. Within this PPA, Secret Service requests $18.0M in two-year authority for protective travel. Secret Service’s protective dictated by the schedules of the President, Vice President, their families, and other protectees. As a result, requirements without any predictable pattern. Two-year authority is necessary for Secret Service to meet legislated protection requiremfluctuations in protective travel requirements. A shorter period of availability would negatively impact Secret Service’s 

and execute resources for other non-pay requirements. Funds would need to be withheld or reprogrammed from other reincreases in protective travel costs. Additionally, a shorter period of availability may result in higher lapse rates should pthan what was budgeted. 

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Protective Operations – PPA Protection of 

Protection of Persons and Facilities – PPA Level II 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Transfer for UNGA from PPF to Presidential Campaign & NSSE Total Transfers 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Base Pay FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Former President Obama's Residence Fully Armored Vehicle (FAV) Armoring New York Field Office (Brooklyn) Secret Service Staffing Total, Program Increases Overtime Above Pay Cap Permanent Change of Station (PCS) Moves Scheduled Overtime Travel Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

Protection of Persons and Facilities – PPA Level II 

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Protective Operations – PPA Protection of 

Personnel Compensation and Benefits

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Protection of Persons and Facilities 3,048 3,037 $633,833 $208.7 3,047 3,037 $637,142 $209.79 3,106 3,079 $670,753 $217.85 Total 3,048 3,037 $633,833 $208.7 3,047 3,037 $637,142 $209.79 3,106 3,079 $670,753 $217.85 Discretionary - Appropriation 3,048 3,037 $633,833 $208.7 3,047 3,037 $637,142 $209.79 3,106 3,079 $670,753 $217.85 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $342,061 $342,674 $364,9111.3 Other than Full-Time Permanent $5,926 $6,094 $6,5711.5 Other Personnel Compensation $95,385 $96,176 $95,5612.1 Civilian Personnel Benefits $190,461 $192,198 $203,70Total - Personnel Compensation and Benefits $633,833 $637,142 $670,75Positions and FTEPositions - Civilian 3,048 3,047 3,10FTE - Civilian 3,037 3,037 3,07

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Protective Operations – PPA Protection of 

Pay Cost Drivers 

Pay Cost-Drivers 

(Dollars in Thousands) 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 20

President's 

FTE Amount Rate FTE Amount Rate FTE Amoun

Uniformed Division Officers 1,583 $290,219 $183.33 1,601 $291,734 $182.22 1,629 $307,12Special Agents 1,039 $267,980 $257.92 1,013 $269,379 $265.92 1,019 $283,58Administrative, Professional, and Technical Support 415 $75,635 $182.25 423 $76,030 $179.74 431 $80,04Total – Pay Cost Drivers 3,037 $633,833 $208.70 3,037 $637,142 $209.76 3,079 $670,75

Explanation of Pay Cost Drivers Uniformed Division Officers: This cost driver funds the salaries and benefits of Secret Service’s Uniformed Division ocost driver in FY 2021 reflect an increase of FTEs associated with Secret Service Staffing program change to right-size tmission needs, and cost increases in health benefits and FERS Agency contribution rates and results from pay raises in F

2021. Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in FFTE associated with increases to right size the agency based on mission needs, health benefits and agency’s FERS contr

Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servicprofessional, and technical support employees who provide a variety of professional business functions and direct missio

to this cost driver in FY 2021 reflect an increases to right size the agency based on mission needs, health benefits and ag

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Protective Operations – PPA Protection of 

Protection of Persons and Facilities – PPA Level II 

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protection of Persons and Facilities $107,062 $117,385 $Total $107,062 $117,385 $Discretionary - Appropriation $107,062 $117,385 $

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $61,282 $61,444 $52,022.0 Transportation of Things $4,360 $2,110 $23.1 Rental Payments to GSA - $105 $223.2 Rental Payments to Others - - $5,623.3 Communications, Utilities, and Misc. Charges $451 $495 $1,124.0 Printing and Reproduction $1 $1 $25.2 Other Services from Non-Federal Sources $5,996 $28,246 $18,525.3 Other Goods and Services from Federal Sources - $45 $125.6 Medical Care - $5 $25.7 Operation and Maintenance of Equipment - $128 $226.0 Supplies and Materials $7,005 $6,824 $6,831.0 Equipment $27,942 $17,957 $38,542.0 Insurance Claims and Indemnities $25 $25 $Total - Non Pay Object Classes $107,062 $117,385 $123,6

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Protective Operations – PPA Protection of 

Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Protective Travel $61,282 $61,444 Fully Armored Vehicles (FAV) - $10,665 White House Mail $14,500 $14,500 Other Costs $31,280 $30,776 Total – Non Pay Cost Drivers $107,062 $117,385 

Explanation of Non Pay Cost Drivers Protective Travel: Travel is a major cost driver for Secret Service’s protective mission as SAs assigned to permanent praccompany protectees on any domestic or international travel, which includes SAs traveling in advance of the protectee 

destination. Changes in this cost driver reflect a program decrease to travel associated with increased use of SAs in the fadvances. Fully Armored Vehicles (FAV): Secret Service utilizes FAVs as an inextricable component of its protective mission, pground transportation to the President, Vice President, and other protectees. O&S funds the armoring of standard FAVs 

details. Changes in cost are due to an increase in the number of standard FAVs to be armored in FY 2021. White House Mail: As part of the protection of the WHC, Secret Service must screen all incoming mail to identify and 

chemical, biological, radiological threats. Other Costs: Funding in this cost driver supports Secret Service’s protective mission, including training, supplies, and m

workforce. Changes to this cost driver reflect the net result of a transfer to Presidential Campaign and NSSEs PPA, increObama’s Residence, and costs associated with staffing increases. 

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Protective Operations – PPA Protection of 

Budget Activities: Protection of Persons - Secret Service SAs provide protection of permanent protectees, such as the President and Vice Presidents, their spouses, and visiting heads of state or governments. The protective environment is enhanced by specialwithin Secret Service including the Airspace Security Branch, Counter Sniper Team, Counter Assault Team, Emergency Counter Surveillance Division (CSD), Hazardous Agent Mitigation and Medical Emergency Response Team, Explosive Magnetometer Operations Unit, and the Critical Systems Protection (CSP) program.Protection of Facilities - UD provide protection to facilities. Pursuant to Title 18 U.S.C. 3056A, Secret Service is authoin part, the following facilities: the WHC; any building in which Presidential offices are located (New Executive Office Executive Office Building); the Treasury Building and grounds; the Vice President’s Residence and grounds; and over 5diplomatic missions located in the Washington, D.C. metropolitan area. UD utilize magnetometer screening operations, beats, bicycle patrols, roving vehicular patrols, and cameras. Technicians assigned to the Counter Sniper Units, ExplosivUnits, and the Emergency Response Teams provide specialized security in and around the WHC. The White House VehTeams and the CSD augment the UD work in securing the WHC and other protected sites. 

USSS - 74
Protective Operations – PPA Protection of 

The UD Special Operations Section is an additional unit responsible for providing security operations, oversight, and cootours of the White House and special events, which are shown in the following table. 

Uniformed Division Special Operations Section Events 

Tours 

Total Participants 

FY 

2017 

FY 

2018 

FY 

2019 

Public Tours 362,885 409,317 355,017 Special Tours 548 25,710 10,747 Special Events 100,307 91,804 99,264 

Selected Special Events*

Easter Egg Roll 18,000 24,891 35,450 Fall Garden Tours 21,934 23,700 24,067 Holiday Receptions and Open Houses 10,606 5,857 8,868 Spring Garden Tours 18,500 25,000 29,000 Congressional Picnic 1,184 N/A 530 Independence Day Event 7,000 6,156 190 Kennedy Center Honors Event 377 N/A N/A **State Arrival - Italy 2,667 N/A N/A Trick-or-Treat Halloween Event 3,217 6,200 907 Congressional Ball 1,093 N/A 252 *These events are only a small representation of the yearly total tours. **State Arrival - Australia was classified as Mag Event 

UD assigned to protect foreign diplomatic missions in the Washington, D.C. metropolitan area perform their duties by p

district in marked police vehicles, on motorcycles, on bicycles, and on foot. These officers also handle demonstrations a

assist in motorcade movements, operate fixed protective posts, investigate and process crime scenes, and consult with diregarding security matters related to their embassies, chanceries, and personnel. Secret Service consistently implements three layers of security: an outer perimeter, a middle perimeter and an inner peri

of the outer and middle perimeters is the use of magnetometer and portable X-rays. Whether it is a permanent protective the Vice President’s Residence, or a temporary protective site, the UD is responsible for the prevention, deterrence, and 

may be deemed a threat by employing walk-through metal detectors, handheld metal detectors, portable x-ray machines, hand-carried items, and deployment of Explosive Detection Units. Since FY 2010, the UD magnetometer unit has screen

million people per year at both the WHC and temporary protective sites. The number of screenings increases in years wi

or inaugurations. 

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Protective Operations – PPA Protection of 

Protective Travel: The table below shows the number of protective travel visits since FY 2010. 

Number of Travel Visits * of Selected Protectees FY 2010 - FY 2019 

Protectee FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 201

President 364 336 466 318 281 305 237 2First Lady 195 240 324 194 187 184 150 2POTUS Family 141 147 126 146 110 142 121 1,3Vice President 395 336 442 453 442 445 447 4Second Lady 201 201 232 248 223 218 256 2VPOTUS Family 226 269 282 428 248 192 237 Formers ** 1,673 1,469 1,301 1,304 1,446 1,677 1,055 1,2

TOTAL 3,195 2,998 3,173 3,091 2,937 3,163 2,503 3,8

* Does not include foreign dignitaries, off the record trips, or in-town travel stops, not requiring a seven day advance ** Formers include Presidents, Vice Presidents, Spouses, and Children 

USSS - 76
Protective Operations – PPA Protect

Protective Countermeasures – PPA Level II 

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Protective Countermeasures 156 137 $56,917 165 160 $61,756 166 165 $68Total 156 137 $56,917 165 160 $61,756 166 165 $68Subtotal Discretionary - Appropriation 156 137 $56,917 165 160 $61,756 166 165 $68

PPA Level II DescriptionThe Protective Countermeasures PPA funds the protection of the President and Vice President at the WHC, the Vice Pre

temporary sites from emerging explosive, chemical, biological, radiological, and cyber-threats. These capabilities includcountermeasures designed to address both established and evolving threats, and which must continually be refreshed wit

upgrades. Protective Countermeasures is a subset of the Operational Mission Support (OMS) program. Within this PPA, Secret Service requests $7.8M in two-year authority for OMS. Secret Service must anticipate and adap

and adversarial technologies while continuing to deploy and maintain existing protective countermeasures. Two-year auSecret Service to respond to emerging threats and maintain existing protective countermeasures that malfunction or sustashorter period of availability would negatively impact Secret Service’s ability to assuredly defend the WHC, the Vice Prtemporary sites from existing and emerging threats. 

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Protective Operations – PPA Protect

Protective Countermeasures – PPA Level II 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Protective Countermeasures (Operational Mission Support) Secret Service Staffing Total, Program Increases FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 78
Protective Operations – PPA Protect

Protective Countermeasures – PPA Level II 

Personnel Compensation and Benefits

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Protective Countermeasures 156 137 $15,913 $116.15 165 160 $19,941 $124.63 166 165 $21,237 $128.71 Total 156 137 $15,913 $116.15 165 160 $19,941 $124.63 166 165 $21,237 $128.71 Discretionary - Appropriation 156 137 $15,913 $116.15 165 160 $19,941 $124.63 166 165 $21,237 $128.71 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $9,336 $12,701 $13,4911.3 Other than Full-Time Permanent $132 $147 $1511.5 Other Personnel Compensation $2,053 $2,143 $2,3212.1 Civilian Personnel Benefits $4,392 $4,950 $5,26Total - Personnel Compensation and Benefits $15,913 $19,941 $21,23Positions and FTEPositions - Civilian 156 165 16FTE - Civilian 137 160 16

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Protective Operations – PPA Protect

Pay Cost Drivers 

Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budget 

FTE Amount Rate FTE Amount Rate FTE Amount Rate F

Administrative, Professional, and Technical Support 109 11532 $105.80 132 $15,064 $114.12 137 $16,043 $117.10 Special Agents 28 4381 $156.46 28 $4,877 $174.18 28 $5,194 $185.50 Total – Pay Cost Drivers 137 $15,913 $116.15 160 $19,941 $124.63 165 $21,237 $128.71 

Explanation of Pay Cost Drivers Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servicprofessional, and technical support employees who provide a variety of professional business functions and direct missio

Changes to this cost driver in FY 2021 reflect increases to right size the agency based on mission needs, health benefits contributions and results from pay raises in FY 2019, FY 2020, FY 2021.

Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in F

increases in health benefits and FERS Agency contribution rates and results from pay raises in FY 2019, FY 2020, FY 2

USSS - 80
Protective Operations – PPA Protect

Protective Countermeasures – PPA Level II 

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protective Countermeasures $41,004 $41,815 Total $41,004 $41,815 Discretionary - Appropriation $41,004 $41,815 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $39 $104 $122.0 Transportation of Things - $7 23.1 Rental Payments to GSA - $233 $223.3 Communications, Utilities, and Misc. Charges - $44 $25.2 Other Services from Non-Federal Sources $39,853 $40,185 $43,525.3 Other Goods and Services from Federal Sources - $35 $25.6 Medical Care - $1 25.7 Operation and Maintenance of Equipment - $47 $26.0 Supplies and Materials - $47 $31.0 Equipment $1,112 $1,112 $3,1Total - Non Pay Object Classes $41,004 $41,815 $47,2

USSS - 81
Protective Operations – PPA Protect

Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Operational Mission Support $41,004 $41,815 Total – Non Pay Cost Drivers $41,004 $41,815 

Explanation of Non Pay Cost Driver Operational Mission Support: The OMS program supports the protection of the President and Vice President at the WResidence, and temporary sites from emerging explosive, chemical, biological, radiological, and cyber-threats. The advacountermeasures that are part of OMS are designed to address both established and evolving threats. Detailed descriptions of OMS requirements are classified and will be provided separately. 

USSS - 82
Protective Operations – PPA P

Protective Intelligence – PPA Level II 

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Protective Intelligence 230 224 $49,395 234 230 $49,955 238 234 $52Total 230 224 $49,395 234 230 $49,955 238 234 $52Subtotal Discretionary - Appropriation 230 224 $49,395 234 230 $49,955 238 234 $52

PPA Level II Description The Protective Intelligence PPA funds protective intelligence and counterintelligence to support the protective mission. personnel investigate subjects (individuals or groups) and activities that pose threats to protectees and protected events. 

USSS - 83
Protective Operations – PPA P

Protective Intelligence – PPA Level II 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Secret Service Staffing Total, Program Increases FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 84
Protective Operations – PPA P

Protective Intelligence – PPA Level II 

Personnel Compensation and Benefits

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Protective Intelligence 230 224 $43,635 $194.8 234 230 $44,054 $191.54 238 234 $46,618 $199.22 Total 230 224 $43,635 $194.8 234 230 $44,054 $191.54 238 234 $46,618 $199.22 Discretionary - Appropriation 230 224 $43,635 $194.8 234 230 $44,054 $191.54 238 234 $46,618 $199.22 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $22,034 $22,193 $23,6711.3 Other than Full-Time Permanent $382 $396 $4211.5 Other Personnel Compensation $6,120 $6,147 $6,4612.1 Civilian Personnel Benefits $15,099 $15,318 $16,05Total - Personnel Compensation and Benefits $43,635 $44,054 $46,61Positions and FTEPositions - Civilian 230 234 23FTE - Civilian 224 230 23

USSS - 85
Protective Operations – PPA P

Pay Cost Drivers 

Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budget 

FTE Amount Rate FTE Amount Rate FTE Amount Rate F

Special Agents 144 $32,067 $222.69 144 $31,645 $219.76 145 $33,487 $230.94 Administrative, Professional, and Technical Support 80 $11,568 $144.60 86 $12,409 $144.29 89 $13,131 $147.54 Total – Pay Cost Drivers 224 $43,635 $194.80 230 $44,054 $191.54 234 $46,618 $199.22 

Explanation of Pay Cost Drivers Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in Fncreases to right size the agency based on mission needs, health benefits and agency’s FERS contributions and results fr

FY 2020, FY 2021.. Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servic

professional, and technical support employees who provide a variety of professional business functions and direct missio

to this cost driver in FY 2021 reflectincreases to right size the agency based on mission needs, health benefits and agencresults from pay raises in FY 2019, FY 2020, FY 2021. 

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Protective Operations – PPA P

Protective Intelligence – PPA Level II 

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protective Intelligence $5,760 $5,901 Total $5,760 $5,901 Discretionary - Appropriation $5,760 $5,901 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $1,417 $1,438 $1,522.0 Transportation of Things $249 $252 $223.1 Rental Payments to GSA - $63 $23.3 Communications, Utilities, and Misc. Charges $305 $323 $324.0 Printing and Reproduction - - 25.2 Other Services from Non-Federal Sources $1,620 $1,602 $1,625.3 Other Goods and Services from Federal Sources - $15 $25.6 Medical Care - $1 25.7 Operation and Maintenance of Equipment - $20 $26.0 Supplies and Materials $246 $260 $231.0 Equipment $1,923 $1,927 $2,1Total - Non Pay Object Classes $5,760 $5,901 $6,2

USSS - 87
Protective Operations – PPA P

Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Training and Equipment $5,209 $5,318 Other costs $551 $583 Total – Non Pay Cost Drivers $5,760 $5,901 

Explanation of Non Pay Cost Drivers Training and Equipment: The protective intelligence mission provides identification and investigation of potential threprotected sites. This mission requires extensive and continuous training to ensure SAs assigned to this mission constantl

and threat response methods and able to identify constantly evolving threats. In addition, SAs require specialized equipmappearance and mobility. Changes in costs reflect an increase for SA training and use of specialized equipment to maintamobility. Other Costs: Funding in this cost driver supports Secret Service’s protective intelligence program. Changes in cost reflesupplies, and materials to support the workforce. 

USSS - 88
Protective Operations – PPA P

Budget Activities: National Threat Assessment Center (NTAC): The NTAC, housed within Secret Service, is charged with conducting otimely research on threat assessment and the prevention of targeted violence in various contexts (e.g., mass attacks in puattacks, workplace violence, attacks against government, and attacks against law enforcement). Through the Presidential 2000 (PL 160-544), Congress formally authorized NTAC to conduct research on threat assessment and various types of training on threat assessment and violence prevention; facilitate information- sharing among agencies with protective anresponsibilities; provide case consultation on individual threat assessment investigations and for organizations building t

develop programs to promote the standardization of Federal, State, and local threat assessment processes and investigaticongressional authorization, NTAC produced an operational guide for school, law enforcement, and public safety profestargeted violence prevention plan. This guide “Enhancing School Safety Using a Threat Assessment Model: An OperatioTargeted School Violence” was released in July 2018. In July 2019, NTAC released “Mass Attacks in Public Spaces – 2NTAC’s second annual study on incidents of mass violence affecting places of business, houses of worship, schools, and were Americans live their daily lives. The following table show NTAC’s increasing demand signal and outreach impact nationally: 

National Threat Assessment Center (NTAC) 

External Training Events and Total Audience 

Fiscal Year Number of Events Total Audience 

FY 2010 32 2,431 FY 2011 35 2,301 FY 2012 29 1,190 FY 2013 30 1,306 FY 2014 32 2,130 FY 2015 51 3,304 FY 2016 48 3,540 FY 2017 47 4,231 FY 2018 63 6,229 FY 2019 111 20,265 

USSS - 89
Protective Operations – PPA Presidential Campaigns and National Sp

Presidential Campaigns and National Special Security Events – PPA Le

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Presidential Campaigns and National Special Security Events - - $37,494 - - $155,199 - - $83Total - - $37,494 - - $155,199 - - $83Subtotal Discretionary - Appropriation - - $37,494 - - $155,199 - - $83

PPA Level II Description The Presidential Campaigns and National Special Security Events PPA provides funding to protect major presidential cafamilies, nominating conventions, presidential and vice-presidential debates, and designated National Special Security E

presidential candidates, nominees, and their spouses is authorized in Title 18 U.S.C. § 3056. The Secret Service leads an

coordination, and implementation of operational security plans at designated NSSEs to ensure the physical protection of other Secret Service protectees who participate in NSSEs. Within this PPA, the Secret Service requests $4.5M in two-year authority for NSSEs. The Secret Service is required to pas designated by the Secretary. As a result, requirements can vary from year to year; even one additional NSSE can greaWhile the Secret Service plans for known future NSSEs, such as the quadrennial nominating conventions, not all NSSEs enough to allow for inclusion in a budget request. Two-year authority is necessary for the Secret Service to meet legislatdespite annual fluctuations in the number of NSSEs. A shorter period of availability would negatively impact the Secret adequately budget and execute resources for other non-pay requirements. Funds would need to be withheld or reprogramrequirements to allow for increases in NSSE protection costs. Additionally, a shorter period of availability may result in NSSE protection costs be less than what was budgeted. 

USSS - 90
Protective Operations – PPA Presidential Campaigns and National Sp

Presidential Campaigns and National Special Security Events – PPA L

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Transfer for UNGA to Presidential Campaign & NSSE from PPF Total Transfers 2020 Pay Raise Non-Recur 2020 Presidential Campaign Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 91
Protective Operations – PPA Presidential Campaigns and National Sp

Presidential Campaigns and National Special Security Events – PPA L

Personnel Compensation and Benefits

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Presidential Campaigns and National Special Security Events

- - $5,599 - - - $28,110 - - - $9,596 - 

Total - - $5,599 - - - $28,110 - - - $9,596 - Discretionary - Appropriation - - $5,599 - - - $28,110 - - - $9,596 - 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent - $27 11.5 Other Personnel Compensation $5,599 $28,083 $9,59Total - Personnel Compensation and Benefits $5,599 $28,110 $9,59Positions and FTE

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Protective Operations – PPA Presidential Campaigns and National Sp

Pay Cost Drivers 

Pay Cost Drivers 

(Dollars in Thousands)

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

President's Budget 

FTE Amount Rate FTE Amount Rate FTE Amount Rate 

Overtime in support of NSSEs and Presidential Campaign - $5,599 $0.00 - $28,110 $0.00 - $9,596 $0.0Total – Pay Cost Drivers 

- 

$5,599 $0.00 

- 

$28,110 $0.00 

- 

$9,596 $0.0

*Pay in this PPA only funds overtime for employees on temporary protective assignments for either presidential campaigns or NSS

permanently assigned to these operations, there are no FTE in this PPA. 

Explanation of Pay Cost Drivers Overtime in support of NSSEs and Presidential Campaign: This cost driver provides for overtime associated with thCampaign. Overtime is needed to support 24/7 protective details for major candidates, nominees, and their families; adv

locations for campaign events and debates; and protection of the Democratic and Republican nominating conventions. Oprovide protective details and complete multi-layered security at NSSEs. To mitigate varying requirements between fisc

Secret Service’s control, a portion of these funds are requested with two-year authority to ensure availability of resourcecost reflect the net decreased protection requirements after the end of the campaign cycle and inauguration and the transf

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Protective Operations – PPA Presidential Campaigns and National Sp

Presidential Campaigns and National Special Security Events – PPA L

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Presidential Campaigns and National Special Security Events $31,895 $127,089 Total $31,895 $127,089 Discretionary - Appropriation $31,895 $127,089 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $3,227 $64,364 $48,322.0 Transportation of Things $468 $2,381 $223.3 Communications, Utilities, and Misc. Charges - $16,420 $1,124.0 Printing and Reproduction - $12 25.2 Other Services from Non-Federal Sources $8,272 $36,209 $22,626.0 Supplies and Materials $2,179 $2,004 $231.0 Equipment $17,749 $4,514 $1,332.0 Land and Structures - $1,185 Total - Non Pay Object Classes $31,895 $127,089 $74,1

USSS - 94
Protective Operations – PPA Presidential Campaigns and National Sp

Non Pay Cost Drivers 

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Support for 2020 Presidential Campaign $18,400 $125,094 Support for NSSEs $13,495 $1,995 Total – Non Pay Cost Drivers $31,895 $127,089 

Explanation of Non Pay Cost Drivers Support for 2020 Presidential Campaign: Secret Service is responsible for providing protection for major presidential nominees’ families, campaign events, debates, and Democratic and Republican nominating conventions. This quadrenniresources for travel, including travel for law enforcement support from ICE/HSI and TSA; protective equipment, such as machines; shipping of equipment and supplies to protected locations; and installation of communications equipment, fenother equipment at protected sites. Changes to this cost reflect the shift from peak campaign protection requirements to t

election and support for the inauguration. 

Support for NSSEs: Secret Service budgets $2.0M annually for supplies, equipment, and travel associated with NSSEsrequirements between fiscal years, these funds are requested with two-year availability to ensure availability of resource

this cost reflects the transfer from the Protection of Persons and Facilities PPA for the United Nations General Assembly 

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Protective Operations – PPA Presidential Campaigns and National Sp

Budget Activities: Presidential Campaigns: As authorized in Title 18 U.S.C. § 3056, Secret Service protects major Presidential and Vice Pspouses of eligible candidates within 120 days of general presidential elections. In addition, the DHS Secretary, in consu

congressional advisory committee, authorizes the activation of a Secret Service protective detail for a Presidential candidconventions. The congressional advisory committee, which is comprised of the Speaker of the House of Representatives

House of Representatives, the Majority and Minority Leaders of the Senate, and one additional member selected by the ocommittee, establishes objective criteria for major candidate status. A Secret Service protective detail is formally activatparticular candidate is authorized by the DHS Secretary, which typically occurs once a candidate requests protection, ancandidate status, as set forth by the advisory committee. The DHS Secretary also may authorize protection for one or moconsultation with the congressional advisory committee, based upon the threat environment. Accompanying each candidate are:  Detail/shift agents who provide 24/7 protection;  Advance teams and post standers, who provide site security;  Explosive Ordnance Disposal and other technical support personnel (e.g., counter-surveillance and counter sniper per Magnetometer screening capabilities;  Protective intelligence personnel; and  Residence security personnel. Securing the two nominating conventions is one of the most expensive and challenging aspects of campaign protection. 

NSSEs will typically have 50,000 or more attendees and last for three to four days. Because the locations and dates are w

of the events, these conventions are targets for a variety of threats. National Special Security Events (NSSE): Since 1998, Secret Service has planned, coordinated, and implemented operNSSEs, including the 2017 Presidential Inauguration. The designation of NSSEs is somewhat unpredictable – some NSS

advance while others are designated with only weeks or even within a couple of days of notice. In support of NSSE operdeploys personnel and resources from across the country and coordinates resources from multiple Federal departments, a

law enforcement and public safety jurisdictions. The President’s State of the Union Address is typically designated an Nquadrennial campaign-related NSSEs, such as the party nominating conventions and Presidential Inaugurations. 

The annual meetings of the United Nations General Assembly (UNGA) in New York City are one of the most significan

Agency to provide simultaneous protection of heads of state or government, as well as the President, Vice President, and 

protectees that may be in attendance. The chart on the following page illustrates the varying numbers of UNGA attendees requiring protective security each fi

USSS - 96
Protective Operations – PPA Presidential Campaigns and National Sp

United Nations General Assembly (UNGA) 

 Number of Protectees per Fiscal Year (FY) 

FY Event 

Heads of 

Government Spouses Total Protectees or Heads of State 

2010 UNGA 65 125 52 177 2011 UNGA 66 132 55 187 2012 UNGA 67 160 50 210 2013 UNGA 68 124 80 204 2014 UNGA 69 142 76 218 2015 UNGA 70 162 74 236 2016 UNGA 71 132 70 202 2017 UNGA 72 166 93 259 2018 UNGA 73 134 68 202 2019 UNGA 74 138 75 213 

USSS - 97
Operations and Support 

Field Operations – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Domestic and International Field Operations 3,098 2,921 $647,905 3,173 3,097 $667,600 3,222 3,172 $678Support for Missing and Exploited Children Investigations - - $6,000 - - $6,000 - - $6Support for Computer Forensics Training - - $25,022 - - $30,377 - - $4Total 3,098 2,921 $678,927 3,173 3,097 $703,977 3,222 3,172 $688Subtotal Discretionary - Appropriation 3,098 2,921 $678,927 3,173 3,097 $703,977 3,222 3,172 $688

PPA Level I Description The Secret Service carries out a unique, integrated mission of protection and investigations. The Field Operations progra

protection while carrying out legislated financial system enforcement. The Secret Service was established in 1865 to invcounterfeiting. Today the agency’s investigative mission has evolved from enforcing counterfeiting laws to safeguarding systems of the United States from a wide range of financial and computer-based crimes. Field operations prioritize investigative cases by focusing on resources on those investigations having significant econom

These types of cases involving cyber-enabled financial crime, are multi-district or transnational in nature, and utilize schemerging technologies. Additionally, Secret Service field operations Individual field offices promote public awareness oinitiatives and counterfeit investigations with the support of the local media and State and local task force partners. Furth

with local law enforcement partners on Financial Crimes Task Forces (FCTF) or Electronic Crimes Task Forces (ECTF)divide their time between conducting criminal investigations, protective intelligence investigations, and protection suppo

offices ensure domain awareness through command and control, coordination, information sharing, and situational awarService provides forensic support to investigations led by the National Center for Missing and Exploited Children (NCMtraining to State and local law enforcement officers and legal and judicial professionals through the National Computer F

USSS - 98
Operations and Support 

Field Operations includes three Level II PPAs: Domestic and International Field Operations: Through field offices and in coordination with partners (public and privinternational, law enforcement and civilian), Secret Service investigates access device fraud (18 U.S.C. 1029); theft (18 

fraud (18 U.S.C. § 1030); bank fraud/mortgage fraud (18 U.S.C. § 1344); and violations of U.S. laws relating to coins, othe United States and of foreign governments. As of FY 2018, Secret Service maintains 42 domestic field offices, 19 foroffices, 13 resident agencies, and 28 domiciles, strategically positioned to support the protective and execute the investigSupport for Missing and Exploited Children Investigations: The Violent Crime Control and Law Enforcement Act odirected Secret Service to participate in a government-wide Task Force to support the National Center for Missing and E(NCMEC). Subsequently, the PROTECT Act of 2003 amended 18 U.S.C. § 3056, authorizing Secret Service to “providassistance in support of any investigation involving missing or exploited children.” Support for Computer Forensics Training: This PPA funds the National Computer Forensic Institute (NCFI), a collabService, DHS, and the State of Alabama. NCFI’s legislated mandate is to provide both State and local law enforcement oprofessionals with a comprehensive education on current cyber-crime trends, investigative methods, and prosecutorial ch

USSS - 99
Operations and Support 

Field Operations – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $678,927 $703,977 Carryover and/or Recoveries (Actual/Estimates/Projections) - - Rescissions to Current Year/Budget Year - - Net Sequestered Resources - - Reprogrammings/Transfers $6,814 - Supplementals - - Total Budget Authority $685,741 $703,977 Collections – Reimbursable Resources $19,886 $19,886 Total Budget Resources $705,627 $723,863 Obligations (Actual/Estimates/Projections) $685,691 $723,863 Personnel: Positions and FTEEnacted/Request Positions 3,098 3,173 Enacted/Request FTE 2,921 3,097 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 3,170 3,181 FTE (Actual/Estimates/Projections) 2,961 3,105 

USSS - 100
Operations and Support 

Field Operations – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Base Pay FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Non-Recur Sustainment of Funding for Forensic/Inv Support Reductions to Contracts Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Secret Service Staffing Total, Program Increases Electronic Crimes Task Force (ECTF) Modernization International Cooperative Administrative Support Services (ICASS) National Computer Forensics Institute (NCFI) Overtime Above Pay Cap Permanent Change of Station (PCS) Moves Radios and Hubs Scheduled Overtime Travel Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 101
Operations and Support 

Field Operations – PPA 

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Domestic and International Field Operations 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 Total 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 Discretionary - Appropriation 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $279,788 $284,755 $309,7511.3 Other than Full-Time Permanent $4,706 $4,888 $5,5311.5 Other Personnel Compensation $82,227 $85,094 $88,9512.1 Civilian Personnel Benefits $179,146 $180,960 $192,25Total - Personnel Compensation and Benefits $545,867 $555,697 $596,50Positions and FTEPositions - Civilian 3,098 3,173 3,22FTE - Civilian 2,921 3,097 3,17

USSS - 102
Operations and Support 

Field Operations – PPA 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Domestic and International Field Operations $102,038 $111,903 Support for Missing and Exploited Children Investigations $6,000 $6,000 Support for Computer Forensics Training $25,022 $30,377 Total $133,060 $148,280 Discretionary - Appropriation $133,060 $148,280 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $55,377 $58,635 $42,522.0 Transportation of Things $5,108 $3,334 $1,323.1 Rental Payments to GSA - $721 ($9,1023.3 Communications, Utilities, and Misc. Charges $7,859 $8,445 $8,724.0 Printing and Reproduction - - $25.2 Other Services from Non-Federal Sources $30,953 $26,685 $19,425.3 Other Goods and Services from Federal Sources - $1,993 $1,325.6 Medical Care - $132 $125.7 Operation and Maintenance of Equipment $772 $1,582 $1,026.0 Supplies and Materials $5,586 $15,821 $15,431.0 Equipment $21,375 $24,902 $5,541.0 Grants, Subsidies, and Contributions $6,000 $6,000 $6,042.0 Insurance Claims and Indemnities $30 $30 $Total - Non Pay Object Classes $133,060 $148,280 $92,4

USSS - 103
Field Operations – PPA Domestic and Internatio

Domestic and International Field Operations – PPA Level II 

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Domestic and International Field Operations 3,098 2,921 $647,905 3,173 3,097 $667,600 3,222 3,172 $678Total 3,098 2,921 $647,905 3,173 3,097 $667,600 3,222 3,172 $678Subtotal Discretionary - Appropriation 3,098 2,921 $647,905 3,173 3,097 $667,600 3,222 3,172 $678

PPA Level II DescriptionThe Domestic and International Field Operations PPA supports Secret Service operations at more than 162 field offices States and abroad. Field offices conduct investigations to detect, identify, locate, and apprehend transnational criminal oindividuals targeting the Nation’s financial infrastructure and payment systems. Subjects may be involved in cyber-enabcounterfeiting of U.S. currency, access device fraud (including credit and debit fraud), cyber-intrusion, identity theft, banfinancing operations. Increased investigative success in the emerging field of cyber-enabled financial crime is done throuService’s 40 ECTFs and 46 FCTFs; located both domestically and overseas. In addition, field offices provide critical capinvestigating threats to the persons, locations and events protected by the Secret Service. SAs in field offices join traveliprovide advance security work, and join protection of NSSEs within their home area, this provides field office SAs with 

protective operations, preparing them for the next phase of their career on permanent protective assignments. 

USSS - 104
Field Operations – PPA Domestic and Internatio

Domestic and International Field Operations – PPA Level II 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing Base Pay FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Non-Recur Sustainment of Funding for Forensic/Inv Support Reductions to Contracts Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Awards Spending Increase Secret Service Staffing Total, Program Increases Electronic Crimes Task Force (ECTF) Modernization International Cooperative Administrative Support Services (ICASS) Overtime Above Pay Cap Permanent Change of Station (PCS) Moves Radios and Hubs Scheduled Overtime Travel Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

Domestic and International Field Operations – PPA Level II 

USSS - 105
Field Operations – PPA Domestic and Internatio

Personnel Compensation and Benefits

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Domestic and International Field Operations 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 Total 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 Discretionary - Appropriation 3,098 2,921 $545,867 $186.88 3,173 3,097 $555,697 $179.43 3,222 3,172 $596,505 $188.05 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $279,788 $284,755 $309,7511.3 Other than Full-Time Permanent $4,706 $4,888 $5,5311.5 Other Personnel Compensation $82,227 $85,094 $88,9512.1 Civilian Personnel Benefits $179,146 $180,960 $192,25Total - Personnel Compensation and Benefits $545,867 $555,697 $596,50Positions and FTEPositions - Civilian 3,098 3,173 3,22FTE - Civilian 2,921 3,097 3,17

USSS - 106
Field Operations – PPA Domestic and Internatio

Pay Cost Drivers 

Pay Cost Drivers 

(Dollars in Thousands) 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

President's Bud

FTE Amount Rate FTE Amount Rate FTE Amount 

Special Agents 2,215 $445,917 $201.32 2,373 $453,947 $191.30 2,432 $487,283 $Administrative, Professional, and Technical Support 706 $99,950 $141.57 724 $101,750 $140.54 740 $109,222 $Total – Pay Cost Drivers 2,921 $545,867 $186.88 3,097 $555,697 $179.43 3,172 $596,505 $

Explanation of Pay Cost Drivers Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in F

increases to right size the agency based on mission needs, health benefits and agency’s FERS contributions and results f2019, FY 2020, FY 2021. Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servic

professional, and technical support employees who provide a variety of professional business functions and direct missio

Changes to this cost driver in FY 2021 reflect increases to right size the agency based on mission needs, health benefits contributions and results from pay raises in FY 2019, FY 2020, FY 2021. 

USSS - 107
Field Operations – PPA Domestic and Internatio

Domestic and International Field Operations – PPA Level II 

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Domestic and International Field Operations $102,038 $111,903 Total $102,038 $111,903 Discretionary - Appropriation $102,038 $111,903 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $50,077 $52,635 $42,522.0 Transportation of Things $5,108 $3,334 $1,323.1 Rental Payments to GSA - $721 ($9,1023.3 Communications, Utilities, and Misc. Charges $7,859 $8,445 $8,724.0 Printing and Reproduction - - $25.2 Other Services from Non-Federal Sources $27,753 $22,185 $17,625.3 Other Goods and Services from Federal Sources - $1,993 $1,325.6 Medical Care - $132 $125.7 Operation and Maintenance of Equipment - $805 $1,026.0 Supplies and Materials $5,036 $15,221 $15,231.0 Equipment $6,175 $6,402 $3,542.0 Insurance Claims and Indemnities $30 $30 $Total - Non Pay Object Classes $102,038 $111,903 $82,4

USSS - 108
Field Operations – PPA Domestic and Internatio

Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Domestic and Foreign Travel $50,077 $52,635 Other Costs $51,961 $59,268 Total – Non Pay Cost Drivers $102,038 $111,903 

Explanation of Non Pay Cost Drivers Domestic and Foreign Travel: Secret Service field offices require agents to travel to support both the investigative and Investigative travel often takes SAs across the country or to locations abroad due to the global nature of transnational crioften need to travel to meet with other law enforcement organizations to investigate leads and testify at trials. Agents po

knowledge and expertise, making it critical for them to travel for proper investigation.. SAs in field offices support the p

protective details or providing advance support for protectees traveling into their home region. This detail often requires office. Changes in costs reflect travel decreases made possible by the addition of new employees hired under the FY 201

increases. Other Costs: Funding in this cost driver supports Secret Service operations at field offices both within and outside the Utraining, supplies, and materials to support the workforce. Changes in this cost driver reflect a reduction to permanent chand costs associated with the FY 2020 and FY 2021 staffing increase. 

USSS - 109
Field Operations – PPA Domestic and Internatio

Budget Activities: Investigative Mission: Secret Service investigates violations of laws relating to counterfeiting of obligations and securi

financial crimes that include, but are not limited to, financial institution fraud, identity theft, access device fraud, and moService investigations directly support the DHS strategic goal to protect critical infrastructure, which includes protecting financial systems. Secret Service operates in a strategic context that includes advances in photographic and printing device technologies, winternet, shifts in payment methods away from coins and paper currency, and dollarization (when a country replaces its nU.S. dollar). As criminal exploitation of available technologies and practices increases, field resources must continue to 

combating criminal efforts. Secret Service proactively combats crimes, using advanced technologies, capitalizing on the power of task force partner

recommendations for industry safeguards. Today, criminal trends show an increased use of cyber-attacks to target diverssignificant data breaches, theft of credit and debit card account numbers and personal identifying information, and destru

delivery of services. Secret Service computer experts, forensic specialists, investigative experts, and intelligence analystcritical information in support of financial analysis, infrastructure protection and criminal investigations. To maximize the impact of its investigative mission, Secret Service collaborates with other law enforcement partners by Leading a network of 46 Financial Crimes Task Forces (FCTF) and 40 Electronic Crimes Trask Forces (ECTF),  Providing computer-based training to enhance investigative skills through the Electronic Crimes Special Agent Prog Formalizing the ECSAP program with the Computer Emergency Response Team in coordination with Carnegie Mel Maximizing partnerships with international law enforcement counterparts through overseas field offices. Field operations prioritize investigative cases, focusing resources on those investigations having significant economic antypes of cases involve organized criminal groups, are multi-district or transnational in nature, and utilize schemes involvThe tables below provide an annual summary of cases closed, arrests, and potential loss value. The digitization of financ

driven a corresponding growth in cyber-enabled financial crimes. In order to best capture agency investigative activitiescategory was created (a combination of cyber and financial crime cases/arrests/loss amounts). Prior to FY 2019, differincapture cyber-activities. For reporting consistency, the combination of the cyber-financial category will be used for prevallow for trend analysis. This will cause discrepancies when comparing past reported results with FY 2019 and future re

USSS - 110
Field Operations – PPA Domestic and Internatio

Number of Cases Closed by Domestic Field Offices 

Category FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Counterfeit 2,800 2,263 2,199 1,768 1,236 1,001 Cyber Financial Crimes 5,849 6,222 4,190 3,046 2,011 1,685 Other Crimes 352 353 367 312 171 125 Non-Criminal 7,862 5,117 6,947 9,867 10,788 12,154 Protective Survey 7,080 7,056 6,325 5,746 7,680 8,833 TOTAL 23,943 21,011 20,028 20,739 21,886 23,798 Notes: In-Custody Responses and Runouts (field office receiving a counterfeit note, but not enough evidence exist to oincluded. Fiscal years reflect the date the record was closed. Data include overseas investigations made by domestic fieHonolulu, etc.). Data as of October 16, 2019. 

Number of Arrests Made by Domestic Field Offices 

Category FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Counterfeit 2,279 2,312 1,841 788 539 622 Cyber Financial Crimes 4,659 4,326 3,585 1,879 1,353 1,335 Other Crimes 256 293 224 123 81 73 Protective Intelligence 73 65 39 51 32 31 TOTAL 7,267 6,996 5,689 2,841 2,005 2,061 Notes: In-Custody Response cases have been deleted. Fiscal years reflect the date the record was closed. Data include omade by domestic field offices (e.g., Miami, Honolulu, etc.). Data as of October 16, 2019. 

Potential Loss Value for Cases Closed by Domestic Field Offices 

Category FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FCyber Financial Crimes 

$2,328,680,046 $4,497,388,380 $3,291,831,880 $1,964,348,052 $2,915,029,520 $6,942,877,269 $

TOTAL $2,328,680,046 $4,497,388,380 $3,291,831,880 $1,964,348,052 $2,915,029,520 $6,942,877,269 $Notes: In-Custody Responses and Runouts (field office receiving a counterfeit note, but not enough evidence exist to odeleted. Fiscal years reflect the date the record was closed. Data include overseas investigations made by domestic field 

Honolulu, etc.). Data as of October 16, 2019. 

USSS - 111
Field Operations – PPA Domestic and Internatio

Cyber Crime Investigations - Today, the Nation’s modern financial system depends heavily on information technology fefficiency. Criminal trends show an increased use of phishing emails, account takeovers, malicious software, hacking attintrusions resulting in significant data breaches. These transnational cyber-crime investigations are multi-jurisdictional acoordination and successful partnering with our ECTFs and international working groups. Through the Unity of Effort mSecret Service and ICE/HSI define their roles in cyber-based crimes, collaborate on cases to combine assets, reduce confeffort, and jointly train agents to share information. Secret Service widely shares relevant cyber-security information it dcriminal investigations with the National Cyber-security & Communications Integration Center (NCCIC), information sorganizations, and other relevant cyber-security entities in order to strengthen the security of cyber-space. Internally, the 

Operations Center (GIOC) was formed in 2018 within Secret Service in order to disrupt and dismantle illicit activities of analysis, intelligence and coordination of multi-jurisdictional and multi-Agency collaboration. Secret Service investigations have resulted in the arrest and successful prosecution of cyber-criminals involved in the larbreaches, including those of TJ Maxx, Dave & Buster’s, Heartland Payment Systems, and others. Secret Service also woat the Department of Justice, in particular the local U.S. Attorney Offices, the Computer Crimes and Intellectual PropertInternational Organized Crime Intelligence and Operations Center, to bring the cyber-criminals that perpetrate major dat

Electronic Crimes Special Agent Program (ECSAP) - A central component of Secret Service’s cyber-crime investigative program is comprised of Computer Forensic Examiners and Network Intrusion Investigators located in field office distriECSAP agents are computer investigative specialists and among the most highly-trained experts in law enforcement, quexaminations on all types of electronic evidence. They protect components of U.S. critical infrastructure by providing su

vulnerabilities that may be exploited by criminal elements. In FY 2018, ECSAP trained special agents processed over 2,evidence. Electronic Crimes Task Forces (ECTF) - Secret Service field offices currently host 40 ECTFs, including two internation

London. The ECTF model is unique in that it brings Federal, State, and local law enforcement together with prosecutorsacademia. Information about vulnerabilities, emerging technologies, and preventative measures is openly shared within of 2019, ECTF membership includes over 3,800 private sector partners; 3,345 international, Federal, State, and local law 292 academic partners. Financial Crimes Task Forces (FCTF) - Secret Service hosts a national network of 46 FCTFs that combine the resources other law enforcement agencies in an organized effort to combat threats to financial and payment systems and critical inoperate in conjunction with Secret Service ECTF and are frequently co-located and managed to leverage the overall exp

membership of both task forces.

USSS - 112
Field Operations – PPA Domestic and Internatio

Cell Phone Forensic Facility - Secret Service has an established partnership with the Tulsa Digital Forensic Laboratory CSecurity, located at the University of Tulsa, to utilize their cell phone forensic facility. The facility enables training, foreresearch on mobile devices to provide invaluable tools to fight cyber-crime. Since 2008, approximately 11,777 mobile dhave been conducted. In FY 2018, over 800 mobile device forensic examinations were conducted. Counterfeit Investigations - Since 1986, Secret Service has recovered over $926.5M in South American-produced countProject Colombia partners seized approximately $62.9M in counterfeit U.S. currency, arrested 128 suspects, and suppres

printing plant. In FY 2018, approximately $82.1M in counterfeit (digital & non-digital) U.S. currency was used in place as “passed,” and $10.4M was seized prior to entering circulation. Digitally processed counterfeit notes accounted for 70 domestic passing activity of counterfeit currency. There are currently 15 dollarized countries and six countries which op

dollarized economies. In FY 2019 the Counterfeit Currency Process Facility (CCPF) opened in January 2, 2019. Secret Service remains commcounterfeiting of U.S. currency around the world. Protective Mission: By design, SAs are assigned to field offices to conduct criminal investigations and provide manpowmeet the variable demands for protecting the President, Vice President, visiting heads of state and government and formto field offices investigate threats to persons, locations, and events protected by Secret Service. Furthermore, Secret Service field offices have long standing and established relationships with the local, State and Federin their district that play a critical role in securing protectees when they travel. Field offices facilitate the advance work d

Secret Service protectee and provide the staffing to secure each protected site. In FY 2018, Secret Service field offices fa

domestic protective visits, over 100 visits to U.S. Territories and over 370 foreign visits by Secret Service protectees. 

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Support for Missing and Exploited Children Investigations – PPA Lev

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Support for Missing and Exploited Children Investigations - - $6,000 - - $6,000 - - $6Total - - $6,000 - - $6,000 - - $6Subtotal Discretionary - Appropriation - - $6,000 - - $6,000 - - $6

PPA Level II DescriptionThe Violent Crime Control and Law Enforcement Act of 1994 (P.L 103-322) directed Secret Service to participate in a gto support the National Center for Missing and Exploited Children (NCMEC). Subsequently, the PROTECT Act of 2003 authorizing Secret Service to “provide forensic and investigative assistance in support of any investigation involving miThe Support for Missing and Exploited Children Investigations PPA funds forensic support for cases involving missing 

Forensic support includes polygraph examinations, handwriting examinations, voiceprint comparisons, audio and video progressions/regressions, and fingerprint research and identification. Secret Service currently provides investigative assiNCMEC headquarters staff by facilitating services available through Secret Service Forensic Services Division (FSD). 

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Support for Missing and Exploited Children Investigations – PPA Le

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget FY 2021 Current Services FY 2021 Request FY 2020 To FY 2021 Change 

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Field Operations – PPA Support for Missing and Exploited Ch

Support for Missing and Exploited Children Investigations – PPA Le

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Support for Missing and Exploited Children Investigations $6,000 $6,000 Total $6,000 $6,000 Discretionary - Appropriation $6,000 $6,000 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

41.0 Grants, Subsidies, and Contributions $6,000 $6,000 $6,0Total - Non Pay Object Classes $6,000 $6,000 $6,0

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Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President’s B

Forensic Support $6,000 $6,000 Total - Non Pay Cost Drivers $6,000 $6,000 

Explanation of Non Pay Cost Driver Forensic Support: Secret Service provides forensic support to the National Center for Missing and Exploited Children uViolent Crime Control and Law Enforcement Act of 1994 and the PROTECT Act of 2003. 

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Field Operations – PPA Support for Compute

Support for Computer Forensics Training – PPA Level II 

Budget Comparison and Adjustments

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Support for Computer Forensics Training - - $25,022 - - $30,377 - - $4Total - - $25,022 - - $30,377 - - $4Subtotal Discretionary - Appropriation - - $25,022 - - $30,377 - - $4

PPA Level II Description The Support for Computer Forensics Training PPA provides funding for the NCFI, which was opened in 2008. NCFI is 

Secret Service, DHS, and the State of Alabama. The NCFI is authorized by 6 U.S.C. § 383 to provide both State and locand legal and judicial professionals with a comprehensive education on current cyber-crime trends, investigative methodchallenges. Since beginning operations in 2008, NCFI has trained more than 8,900 State and local law enforcement officers, prosecu2018, NCFI trained over 1,500 individuals, the largest number of students in any year since inception. Graduates of the Nconduct more than 183,000 forensic exams, including approximately 55,000 involving serious crimes. 

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Field Operations – PPA Support for Compute

Support for Computer Forensics Training – PPA Level II 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget FY 2021 Current Services National Computer Forensics Institute (NCFI) Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

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Field Operations – PPA Support for Compute

Support for Computer Forensics Training – PPA Level II 

Non Pay Budget Exhibits

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Support for Computer Forensics Training $25,022 $30,377 Total $25,022 $30,377 Discretionary - Appropriation $25,022 $30,377 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $5,300 $6,000 25.2 Other Services from Non-Federal Sources $3,200 $4,500 $1,725.7 Operation and Maintenance of Equipment $772 $777 26.0 Supplies and Materials $550 $600 $231.0 Equipment $15,200 $18,500 $2,0Total - Non Pay Object Classes $25,022 $30,377 $4,0

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Field Operations – PPA Support for Compute

Non Pay Cost Drivers

Non Pay Cost Drivers FY 2019 FY 2020 FY 202

(Dollars in Thousands) Enacted Enacted President’s B

Training & Equipment $25,022 $30,377 Total - Non Pay Cost Drivers $25,022 $30,377 

Explanation of Non Pay Cost Driver Training & Equipment: NCFI provides State and local law enforcement officers and legal and judicial professionals w

education on current cyber-crime trends, investigative methods, and prosecutorial challenges. To execute this mission, thequipment and supplies to replicate the technologies trainees will encounter in the field. Additionally, NCFI provides eq

would not otherwise have the tools and technology to investigate cyber-criminals. The decrease reflects the non-recur of investment in the NCFI. 

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Operations and Support Basic and In-Service Training and Pr

Basic and In-Service Training and Professional Development – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Basic and In-Service Training and Professional Development 238 228 $102,923 243 239 $110,534 249 244 $115Total 238 228 $102,923 243 239 $110,534 249 244 $115Subtotal Discretionary - Appropriation 238 228 $102,923 243 239 $110,534 249 244 $115

PPA DescriptionThe Basic and In-Service Training and Professional Development PPA funds basic recruit training programs for UD, SASAs, UD, SA investigators, and APT personnel. Further, this PPA funds training program equipment, vehicles, and suppreadiness; and provides for the maintenance and sustainment of Secret Service training facilities. Within this PPA, Secret Service requests $11.4.M in two-year authority for maintenance of the RTC. Maintenance requiand infrastructure are often unpredictable – such as major system breakdowns or weather damage. Two-year authority fonecessary to ensure availability of funds to address emergency maintenance and repair requirements that fluctuate year tavailability would negatively impact Secret Service’s ability to provide safe and reliable facilities for students and staff a

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Basic and In-Service Training and Professional Development – PP

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $102,923 $110,534 Carryover and/or Recoveries (Actual/Estimates/Projections) $2,239 $6,782 Rescissions to Current Year/Budget Year - - Net Sequestered Resources - - Reprogrammings/Transfers - - Supplementals - - Total Budget Authority $105,162 $117,316 Collections – Reimbursable Resources - - Total Budget Resources $105,162 $117,316 Obligations (Actual/Estimates/Projections) $98,380 $105,916 Personnel: Positions and FTEEnacted/Request Positions 238 243 Enacted/Request FTE 228 239 Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) 239 243 FTE (Actual/Estimates/Projections) 229 239 

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Operations and Support Basic and In-Service Training and Pr

Basic and In-Service Training and Professional Development – PP

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget 2020 Pay Raise 2021 Pay Raise Annualization of FY 2020 Secret Service Staffing FERS Agency Contribution Total, Pricing Increases Non-Recur FY 2020 Hiring Costs Reductions to Contracts Total, Pricing Decreases Total Adjustments-to-Base FY 2021 Current Services Ammunition Transition Awards Spending Increase Secret Service Staffing Training Classes (SA and UD Officer) Total, Program Increases Olney Training Facility Construction Total, Program Decreases FY 2021 Request FY 2020 To FY 2021 Change 

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Operations and Support Basic and In-Service Training and Pr

Basic and In-Service Training and Professional Development – PP

Personnel Compensation and Benefits 

Pay Summary 

Organization FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budget 

(Dollars in Thousands) Pos. FTE Amount Rate Pos. FTE Amount Rate Pos. FTE Amount Rate 

Basic and In-Service Training and Professional Development

238 228 $43,848 $192.32 243 239 $46,093 $192.86 249 244 $48,848 $200.2 

Total 238 228 $43,848 $192.32 243 239 $46,093 $192.86 249 244 $48,848 $200.2 Discretionary - Appropriation 238 228 $43,848 $192.32 243 239 $46,093 $192.86 249 244 $48,848 $200.2 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

11.1 Full-time Permanent $24,357 $26,225 $27,8711.3 Other than Full-Time Permanent $404 $418 $4511.5 Other Personnel Compensation $6,478 $6,522 $6,8712.1 Civilian Personnel Benefits $12,609 $12,928 $13,64Total - Personnel Compensation and Benefits $43,848 $46,093 $48,84Positions and FTEPositions - Civilian 238 243 24FTE - Civilian 228 239 24

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Pay Cost Drivers 

Pay Cost Drivers 

(Dollars in Thousands) 

FY 2019 

Enacted 

FY 2020 

Enacted 

FY 2021 

President's Budget 

FTE Amount Rate FTE Amount Rate FTE Amount Rate F

Administrative, Professional, and Technical Support 116 $16,937 $146.01 127 $19,525 $153.74 131 $20,692 $157.95 Special Agents 112 $26,911 $240.28 112 $26,568 $237.22 113 $28,156 $249.17 Total – Pay Cost Drivers 228 $43,848 $192.32 239 $46,093 $192.86 244 $48,848 $200.20 

Explanation of Pay Cost Drivers Administrative, Professional, and Technical Support: This cost driver funds the salaries and benefits of Secret Servicprofessional, and technical support employees who provide a variety of professional business functions and direct missio

Changes to this cost driver in FY 2021 reflect increases to right size the agency based on mission needs, health benefits contributions and results from pay raises in FY 2019, FY 2020, FY 2021. Special Agents: This cost driver funds the salaries and benefits of Secret Service’s SAs. Changes to this cost driver in F

increases to right size the agency based on mission needs, health benefits and agency’s FERS contributions and results f2019, FY 2020, FY 2021. 

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Operations and Support Basic and In-Service Training and Pr

Basic and In-Service Training and Professional Development – PP

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Basic and In-Service Training and Professional Development $59,075 $64,441 Total $59,075 $64,441 Discretionary - Appropriation $59,075 $64,441 

Non Pay by Object Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

21.0 Travel and Transportation of Persons $14,558 $14,590 $14,622.0 Transportation of Things $141 $145 $123.1 Rental Payments to GSA - $108 $123.3 Communications, Utilities, and Misc. Charges $5,001 $5,024 $5,024.0 Printing and Reproduction - - 25.2 Other Services from Non-Federal Sources $10,781 $15,691 $14,925.3 Other Goods and Services from Federal Sources $5,410 $5,428 $4,625.7 Operation and Maintenance of Equipment - $26 $26.0 Supplies and Materials $4,970 $4,993 $13,131.0 Equipment $18,214 $18,436 $13,8Total - Non Pay Object Classes $59,075 $64,441 $66,7

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Non Pay Cost Drivers 

Explanation of Non Pay Cost Drivers Special Agent and UD Basic Training: Secret Service has increased its capacity to provide basic training for new SAs increased hiring. This capacity includes supplies, initial issuance of uniforms, weapons, ammunition to new hires; and corole players for tactical exercises. Changes in this cost driver reflect year-over-year cost increases for basic training. Other Costs: Funding in this cost driver supports Secret Service’s basic training, in-service training, and professional de

Changes in this cost driver reflect an increase due to staffing initiatives and the Ammunition program for basic SA and Uchanges in this cost driver include a decrease in contract reductions for discontinuing operations at the Olney Training F

Non Pay Cost Drivers FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President’s Budget 

Special Agent and UD Basic Training $16,472 $16,748 $20,480 Other Costs $42,603 $47,693 $46,233 Total - Non Pay Cost Drivers $59,075 $64,441 $66,713 

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Budget Activities James J. Rowley Training Center: RTC is a federally-accredited academic institution, meeting the standards establishEnforcement Training Accreditation (FLETA) Board. It is comprised of 493 acres of land, six miles of roadways, and 36 classrooms, firearms ranges, physical fitness facilities, tactical villages, a protective operations driving pad, and other an

infrastructure fosters a quality training environment for new recruits, current employees, and for collaborative training w

local law enforcement partners. The curriculum provided by RTC instructors is for newly hired SAs, UD, special officers, physical security specialists, atechnicians. Training includes investigative and protective methodologies, firearms marksmanship, control tactics, emer

emergency medicine, physical fitness techniques, financial and cyber-crime detection, investigation, physical/site/event survival training. As Secret Service personnel progress through their career, RTC provides specialized and advanced in-

areas, including specialized operational and protective tactics, financial crime, cyber-based investigations, and employee 

development. During FY 2018, RTC trained new SA and UD recruits, continued offering in-service training opportunitipermitted by the operational tempo of our protective mission, and enhanced and expanded career development curriculuRegional In-Service Training (RIST) Program: In FY 2018, Secret Service began RIST to streamline field-based traitraining concepts and curricula for all field offices. RIST requires armed personnel to complete 80 hours of foundational program officially began in April 2017, and is managed by RTC with the support of certified Regional Field Training Co

Participating Field Based Trainers (32). Since inception, SAs have completed 6,454 training hours under RIST. In FY 2080 hour requirement while solidifying the electronic tracking and reporting system for this program. By the end of FY 2

of this program, allowing RIST to implement an interactive database allowing all SAs to track their RIST requirements aAlso in FY 2019, RIST began compiling data and after action reports in support of the critical evaluation and analysis of 

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Table of Contents 

Budget Comparison and Adjustments .......................................................................................................................Non Pay Budget Exhibits ...........................................................................................................................................Capital Investments Exhibits .....................................................................................................................................Protection Assets and Infrastructure – PPA ..............................................................................................................

Budget Comparison and Adjustments ...........................................................................................................Non Pay Budget Exhibits ...............................................................................................................................Protection Assets and Infrastructure End Items – Investment .......................................................................

Operational Communications/Information Technology – PPA .................................................................................

Budget Comparison and Adjustments ...........................................................................................................Non Pay Budget Exhibits ...............................................................................................................................Information Integration & Technology Transformation (IITT) – Investment ...............................................

Construction and Facility Improvements – PPA .......................................................................................................

Budget Comparison and Adjustments ...........................................................................................................Non Pay Budget Exhibits ...............................................................................................................................Capital Investments Exhibits .........................................................................................................................Construction and Facility Improvements End Items – Investment ................................................................

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Procurement, Construction, and Improvements 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protection Assets and Infrastructure $85,286 $65,989 $3Operational Communications/Information Technology $8,845 - Construction and Facility Improvements $3,000 $1,000 $Total $97,131 $66,989 $3Discretionary - Appropriation $97,131 $66,989 $3

The Procurement, Construction, and Improvements (PC&I) appropriation provides the U.S. Secret Service funds, above certain thr

the manufacture, purchase, or enhancement of one or more assets (which hereinafter also refers to end items) prior to sustainm

appropriation are typically categorized as one of the following:

 Procurement – the obtaining of one or more assets through purchase, transfer, exchange, or other means. The configu

to meet the asset's intended use is part of procurement.

 Construction – the erection of new facilities or infrastructure; the addition, expansion, extension, alteration, conversi

existing facility; or the relocation of a facility from one installation to another.

 Improvement – the obtaining an increase in capability and/or capacity.PC&I funding enables the Secret Service to support the planning, operational development, engineering, and purchase o

Programs, Projects, and Activities (PPAs): 

Protection Assets and Infrastructure: This PPA funds major acquisitions that support activities related to protective operations, in

countermeasures,secure communications, intelligence, and surveillance systems.

Operational Communications/Information Technology: This PPA enhances domain awareness by acquiring assets for command 

information and situational awareness, and/or occupational health and safety for multiple missionprograms.

Construction and Facility Improvements: This PPA funds the improvement of existing owned or leased facilities and real property

construction of new facilities.

The Budget proposes to transfer the United States Secret Service, including this account, from the Department of Homeland Secu

Department of the Treasury. All functions, personnel, assets, and obligations of the Secret Service, including the functions of the S

Homeland Security related to the Secret Service, will transfer to the Department of the Treasury.

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Procurement, Construction, and Improvements 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $97,131 $66,989 Carryover and/or Recoveries (Actual/Estimates/Projections) $26,438 $14,453 Rescissions to Current Year/Budget Year ‐ ‐ Net Sequestered Resources ‐ ‐ Reprogrammings/Transfers $2,400 ‐ Supplementals ‐ ‐ Total Budget Authority $125,969 $81,442 Collections – Reimbursable Resources ‐ ‐ Total Budget Resources $125,969 $81,442 Obligations (Actual/Estimates/Projections) $110,490 $67,770 Personnel: Positions and FTEEnacted/Request Positions ‐ ‐ Enacted/Request FTE ‐ ‐ Onboard and Actual FTE; Includes Collections ‐ Reimbursable ResourcesOnboard (Actual/Estimates/Projections) ‐ ‐ FTE (Actual/Estimates/Projections) ‐ ‐ 

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Procurement, Construction, and Improvements Protection Asse

Procurement, Construction, and Improvements 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Fully Armored Vehicles - Camp David Limousine Armoring Protective Countermeasures (Operational Mission Support) White House Complex Fence Total Investment Elements FY 2021 Request FY 2020 To FY 2021 Change 

Procurement, Construction, and Improvements 

Non Pay Budget Exhibits 

Non Pay by Object Class 

Non‐Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

25.2 Other Services from Non‐Federal Sources $58,766 $30,955 $38,326.0 Supplies and Materials $146 ‐ 31.0 Equipment $38,219 $36,034 Total ‐ Non Pay Object Classes $97,131 $66,989 $38,3

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Procurement, Construction, and Improvements 

Capital Investments Exhibits 

Capital Investments 

 Investment 

(Dollars in Thousands)

Unique Item 

Identifier

Acquisition 

Level

Procurement/ 

Construction

IT/NonIT MAOL FY 201

Enacted 

Information Integration & Technology Transformation (IITT) 024-000004054 2 Procurement IT Yes $8,845 Protection Assets and Infrastructure End Items - - Procurement - No $85,286 Construction and Facility Improvements End Items - - Construction - No $3,000 

Protection Assets and Infrastructure – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Protection Assets and Infrastructure End Items $85,286 $65,989 $3Total $85,286 $65,989 $3Discretionary - Appropriation $85,286 $65,989 $3

PPA Level I Description The Protection Assets and Infrastructure PPA funds the procurement of assets, equipment, and technologies that support protection mission. This PPA is comprised of the following investment: Protection Assets and Infrastructure End Items: Includes funding for the development, procurement, and deployment of multipl

technologies that support the Secret Service’s protection mission. It includes programs that exceed the $250,000 PC&I threshold 

of the DHS Master Acquisition Oversight List (MAOL).

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Protection Assets and Infrastructure – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $85,286 $65,989 Carryover and/or Recoveries (Actual/Estimates/Projections) $13,874 $12,067 Rescissions to Current Year/Budget Year ‐ ‐ Net Sequestered Resources ‐ ‐ Reprogrammings/Transfers $2,759 ‐ Supplementals ‐ ‐ Total Budget Authority $101,919 $78,056 Collections – Reimbursable Resources ‐ ‐ Total Budget Resources $101,919 $78,056 Obligations (Actual/Estimates/Projections) $88,826 $64,010 Personnel: Positions and FTEEnacted/Request Positions ‐ ‐ Enacted/Request FTE ‐ ‐ Onboard and Actual FTE; Includes Collections ‐ Reimbursable ResourcesOnboard (Actual/Estimates/Projections) ‐ ‐ FTE (Actual/Estimates/Projections) ‐ ‐ 

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Protection Assets and Infrastructure – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Fully Armored Vehicles - Camp David Limousine Armoring Protective Countermeasures (Operational Mission Support) Total Investment Elements FY 2021 Request FY 2020 To FY 2021 Change 

Protection Assets and Infrastructure – PPA 

Non Pay Budget Exhibits 

Non Pay by Object Class 

Non‐Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

25.2 Other Services from Non‐Federal Sources $50,326 $29,955 $37,331.0 Equipment $34,960 $36,034 Total ‐ Non Pay Object Classes $85,286 $65,989 $37,3

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Protection Assets and Infrastructure End Items – Investment 

Itemized Procurements 

End Items Purchases 

Protection Assets and Infrastructure End Items Procurement, Construction, and Improvements Funding 

 Investment 

(Dollars in Thousands)

Unique Item 

Identifier

Acquisition 

Level

Procurement/ 

Construction

IT/NonIT MAOL FY 201

Enacted 

Protection Assets and Infrastructure End Items - - Procurement - No $85,286 

Investment DescriptionProtection Assets and Infrastructure End Items includes funding for the development, procurement, and deployment of multiple 

technologies that support the Secret Service’s protection mission. It includes programs that exceed the $250,000 PC&I threshold 

not part of the DHS Master Acquisition Oversight List (MAOL). This includes the following programs:

End Items Breakdown

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted 

Quantity Amount Quantity Amount 

Fully Armored Vehicles (FAVs)Standard FAVs – Base Platforms 290 $14,700   ‐  Standard FAVs ‐ Armored 109 $26,100 79 $10,7Camp David Limousines (Heavy Duty FAVs) – Armored  ‐  ‐  29 11,8

Subtotal, FAV 399 $40,800 108 $22,5

Operational Mission Support (OMS)*Enhanced Chemical, Biological, and Radiological Detection Systems N/A $515 N/A $1,6

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End Items Breakdown

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted 

Quantity Amount Quantity Amount 

Presidential Audio Countermeasures N/A $9,495 N/A $6,3White House Physical Protective Structures N/A $21,976 N/A $19,4Enhanced White House Camera System N/A $500 N/A $4,1Development of Next Generation Presidential Limousine N/A $11,000 N/A $11,0Portable Security Systems for Presidential Venues N/A $1,000 N/A $8

Subtotal, OMS N/A $44,486 N/A $43,3

Total, Protection Assets and Infrastructure End Items 399 $85,286 108 $65,9

*Details available in a classified format.

 Fully Armored Vehicles (FAVs): With $7.4M in FY 2021 funding, Secret Service will continue to armor protective 

of the President, Vice President, and their families; visiting foreign dignitaries; major Presidential and Vice Presidenother high visibility protectees, as statutorily mandated. CDLs have more enhanced armoring and capabilities than st

requires communications equipment, emergency lights, and other protective equipment. The current FAV fleet inclu

model vehicles. As the fleet ages, maintenance costs continue to increase along with scarcity of repair parts. Vehicle on board have occurred, resulting in unacceptable risks. Recurring recapitalization of its Fully Armored Vehicle (FASecret Service to execute protection operations. Additional funding for the FAV program is provided in Secret Servi(O&S) and Research and Development (R&D) appropriations; a breakout is provided below:

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Fully Armored Vehicles (FAVs) FY 2021

(Dollars in Thousands) O&S PC&I R&D TOTALS

Standard FAV armoring (80 platforms) $14,615   ‐  ‐  $14,615Camp David Limousine (CDL) armoring (18 platforms)  ‐  $7,380   ‐  $7,380Research & Development for Gen2 FAV  ‐  ‐  $9,357 $9,357

TOTAL, FAV $14,615 $7,380 $9,357 $31,352

 Protective Countermeasures (OMS): FY 2021 funding of $29.9M will enable the following requirements to be add

o Enhanced Chemical, Biological, and Radiological Detection Systems: These funds support efforts to detect chem

radiological (CBR) threats at fixed and temporary sites in support of protection of the President, Vice President, 

o Presidential Audio Countermeasures: These funds provide capabilities that allow the Secret Service to better mee

evolving threats challenging the Secret Service mission responsibilities related to presidential audio countermeas

o White House Physical Protective Structures: These funds enable the Secret Service to substantially enhance and 

physical protective infrastructure necessary to assuredly defend the White House Complex (WHC) and its occupplausible credible threats, both current and emerging. 

o Enhanced White House Camera System: These funds provide for enhancement and expansion of the Secret Serv

House camera system and the camera systems at the Vice President’s Residence. These systems are integrated wsituational awareness capabilities. 

o Development of Next Generation Presidential Limousine: These funds enable the Secret Service to procure vehic

primary mode of safe and secure ground transportation for the President of the United States for local, domestic, vehicles are required to meet ongoing operational protection requirements. 

o Portable Security Systems for Presidential Venues: These funds provide Mobile Video Alarm Platforms (MVAP

uses at temporary Presidential protective sites. The MVAPs are a portable detection capability that includes a suidetection alarms that are set up to provide increased security at temporary sites. 

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The following table provides a detailed breakdown for OMS and identifies funding in the O&S, PC&I, and R&D accoun

Operational Mission Support (OMS) O&S O&S O&S

FY 2021 Budget by Appropriation (Single‐Year) (Multi‐Year) Total PC

(Dollars in Thousands)

Cyber Protection Activities $8,200   ‐  $8,200   Deployment of Next Generation Presidential Limousines  ‐ ‐

‐  

$1

Enhanced Chemical, Biological, and Radiological Detection Systems $8,675 $325 $9,000 Enhanced Explosives Detection Systems $4,786 $401 $5,187   Enhanced White House Camera System $2,040 $510 $2,550 $1Presidential Audio Countermeasures $3,600 $900 $4,500 $14Portable Security Systems for Presidential Venues $300   ‐  $300 $1Protective Systems and Weapons Testing Program  ‐  ‐ 

‐  

White House Physical Protective Structures $11,867 $5,691 $17,558 $10

Total Program Costs $39,468 $7,827 $47,295 $29

Positions (166 ‐ 145 APT and 21 UD) $21,146   ‐  $21,146   

TOTAL, OMS $60,614 $7,827 $68,441 $29

Information on O&S and R&D activities can be found in the congressional justifications for those appropriations. Detail

of requirements are classified and will be provided separately. 

USSS - 140
Operational Communications/Information Technology – PPA Information Integration & Technol

Operational Communications/Information Technology – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Information Integration & Technology Transformation (IITT) $8,845 - Total $8,845 - Discretionary - Appropriation $8,845 - 

PPA Level I DescriptionThis PPA funds investments in communications infrastructure and Information Technology (IT) systems and equipment that (1) ar

Service field offices and personnel and (2) have multi‐mission frontline applications. Sustainment funding for this program is inclu

This PPA is comprised of the following investment:

Information Integration

& Technology Transformation (IITT): IITT was an information technology modernization program with th

Service systems to current technology solutions. The IITT program is now in the sustainment phase, and the FY 2021 President’s B

for IITT in the PC&I appropriation. O&

M funding for this program is provided in the O&S appropriation.

USSS - 141
Operational Communications/Information Technology – PPA Information Integration & Technol

Operational Communications/Information Technology – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $8,845 ‐ Carryover and/or Recoveries (Actual/Estimates/Projections) $12,564 $2,386 Rescissions to Current Year/Budget Year ‐ ‐ Net Sequestered Resources ‐ ‐ Reprogrammings/Transfers ($359) ‐ Supplementals ‐ ‐ Total Budget Authority $21,050 $2,386 Collections

– Reimbursable Resources ‐ ‐ 

Total Budget Resources $21,050 $2,386 Obligations (Actual/Estimates/Projections) $18,664 $2,760 Personnel: Positions and FTEEnacted/Request Positions ‐ ‐ Enacted/Request FTE ‐ ‐ Onboard and Actual FTE; Includes Collections ‐ Reimbursable ResourcesOnboard (Actual/Estimates/Projections) ‐ ‐ FTE (Actual/Estimates/Projections) ‐ ‐ 

USSS - 142
Operational Communications/Information Technology – PPA Information Integration & Technol

Operational Communications/Information Technology – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget FY 2021 Request FY 2020 To FY 2021 Change 

Operational Communications/Information Technology – PPA 

Non Pay Budget Exhibits 

Non Pay by Object Class 

Non‐Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

25.2 Other Services from Non‐Federal Sources $5,440 ‐ 26.0 Supplies and Materials $146 ‐ 31.0 Equipment $3,259 ‐ Total ‐ Non Pay Object Classes $8,845 ‐ 

USSS - 143
Operational Communications/Information Technology – PPA Information Integration & Technol

Information Integration & Technology Transformation (IITT) – Inves

Capital Investments Exhibits

Procurement/Acquisition Programs 

Information Integration & Technology Transformation Procurement, Construction, and Improvements Funding 

 Investment 

(Dollars in Thousands)

Unique Item 

Identifier

Acquisition 

Level

Procurement/ 

Construction

IT/NonIT MAOL FY 201

Enacted 

Information Integration & Technology Transformation (IITT) 024-000004054 2 Procurement IT Yes $8,845 

Investment DescriptionThe IITT investment portfolio is comprised of the following three independent IT projects:

 Enabling Capabilities (EC): Includes activities to modernize the infrastructure that provides the backbone of the Secret Service 

elements include the EC contract for Infrastructure Modernization, IT Network Infrastructure equipment, and Cyber Security 

the alternate data center and field sites, and support services in the Network Operations and Security Center (NOSC)

– all con

network. Full operational capability (FOC) was achieved in FY 2018. Costs for EC are included in the O&S appropriation.

 Multi‐Level Security (MLS): Provides the Secret Service with the capability to securely access investigative and protective miss

Sensitive but Unclassified (SBU), Secret, and Top Secret/Sensitive Compartmented Information (TS/SCI) security classification simultaneously. An important part of the MLS project is the build out of Sensitive Compartmented Information Facilities (SCIF

locations to enable the deployment of the MLS capability. The selected FOs have an immediate requirement to access TS/SCI 

support sensitive protective and investigative missions. Due to the classification of the information accessed by MLS, an accre

the capability. Costs for MLS are included in the O&S appropriation.

 Enterprise Resource Management System (ERMS): Established and utilized by the Office of Protective Operations (OPO) to de

agency wide event planning, scheduling, monitoring and reporting system that supports protective, investigative, and admini

includes the following projects:

o Uniformed Division Resource Management System (UDRMS): UDRMS reached Full Operational Capability (FOC) in May 20

performance, post‐FOC, determined improvements were necessary. UDRMS continued in the sustainment stage until its f

transitioned to a new Enterprise Personnel Scheduling (EPS) application in October 2018. All Uniformed Division (UD) offi

o Events Management (EM): Events Management achieved Initial Operational Capability (IOC) in May 2018. Full Operationa

USSS - 144
Operational Communications/Information Technology – PPA Information Integration & Technol

deployed in phases. FOC for the Technical Security Division (TSD), Release 2, was 5/14/19. FOC for all Protective Divisions

on until 1Q FY20. The Release 3 deployment effectively sunset the legacy COLD system for Protective Events. FOC functio

and Visit calendars, Rotational Travel Lists (ROTA) and resource allocation of equipment to support protective, investigati

o Enterprise Wide Scheduling: Enterprise‐wide Scheduling is being delivered through the extension of EPS which will be hea

Management. Before legacy COLD can be fully decommissioned, Agent scheduling at resident offices must first be transit

Management. Ultimately, scheduling of Administrative, Professional and Technical (APT) employees will also be transition

development support contract was awarded in April 2019 to support this effort.

o

Costs for ERMS are included in the O&S appropriation.

Justification

After achieving FOC in FY 2020, the IITT investment does not require additional PC&I funds in FY 2021.

FY 2019 Key Milestone Events

EC: Continued sustainment efforts being provided in the NOSC after Enabling Capabilities FOC achieved in FY 2018.

MLS:

 Achieved ADE‐3 for MLS Increment 3.

 Continued overall transition and deployment of the next generation MLS technology

– the SecureView Multiple Independent 

workstations at HQ and select field sites.

 Continued coordination with the Air Force Research Lab on future MLS improvements.

ERMS:

 Continued the cadence for continuous delivery of Events Management.

 Achieved IOC for Enterprise Wide Scheduling.

FY 2020 Planned Key Milestone Events

 N/AFY 2021 Planned Key Milestone Events N/A

USSS - 145
Operational Communications/Information Technology – PPA Information Integration & Technol

Overall Investment Funding

(Dollars in Thousands) Prior Years FY 2019 

Operations and Support $21,104 $38,134 Procurement, Construction, and Improvements $25,015 $8,845  Research and Development  ‐   ‐  Project Funding $46,122 $46,979 Obligations $39,402 $43,134Expenditures $21,811 $22,580

Contract Information (Current/Execution Year, Budget Year)

Contract Number Contractor Type Award Date (mo/yr) Start Date (mo/yr) End Date (mo/yr) EV

Co

USSS Service Desk

& NOSC Support Services

– Contract

47QTCK18D0003 Order No. 70US0919F2GSA0064 GDIT Contract 07/2019 07/2019 07/2021 

USSS‐IITT‐ERMS CGI HSSS01‐17‐J‐0128 CGI Contract 06/2017 07/2017 09/2020 USSS‐IITT‐MLS 70US0919K70090005 AFRL IAA 12/2018 01/2019 03/2020 

Significant Changes to Investment since Prior Year EnactedIITT achieved FOC in FY 2020 and no additional PC&I funds are required for the investment. O&M funding for this program is provid

USSS - 146
Operational Communications/Information Technology – PPA Information Integration & Technol

Investment Schedule

Description

Design Work 

Initiated Completed 

FY 

(EC) IT Network Sustainment F(ERMS) UDRMS / Enterprise Personnel System (EPS) FOC F(ERMS) Event Management IOC ‐ Deployment of Increments 1‐ 4 (Sprint 8) functionality related to planning Events

with subsequent Visits and Sites F

(ERMS) Enterprise Wide Planning contract award design and development F(ERMS) Event Management FOC ‐ Deployment of Increments 4‐6 functionality related to planning Events with

subsequent Visits and Sites F

(MLS) ADE‐3 Increment 3 ‐ The MLS Increment 3 Deployment adds secure Unclassified interoperability, web malware

isolation capability to the existing Secret Service Sensitive But Unclassified (SBU) network. MLS Increment 3

integrates a Secure Web Browser appliance that provides intelligence analysts and investigators with the capability

to securely browse open internet websites utilizing their SBU workstations in support of protective and investigative

missions, while preventing all untrusted web code; and web malware from entering the protected SBU network.

F

(MLS) Transition of next generation technology F

FY 

N/A

FY 

N/A

USSS - 147
Procurement, Construction, and Improvements Construction and F

USSS – PC&I - 19 

Construction and Facility Improvements – PPA 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Construction and Facility Improvements End Items $3,000 $1,000 $Total $3,000 $1,000 $Discretionary - Appropriation $3,000 $1,000 $

PPA Level I Description The Secret Service’s Construction and Facility Improvements funding supports the improvement of existing owned or lereal property, and the construction of new facilities and projects under the control of the Secret Service. This PPA is comfollowing investment: White House Complex Fence: This investment funds the replacement and extension of the Crown Fence that surrounds the Whit

perimeters of the Department of the Treasury and the Eisenhower Executive Office Building (EEOB).

USSS - 148
Procurement, Construction, and Improvements Construction and F

USSS – PC&I - 20 

Construction and Facility Improvements – PPA 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $3,000 $1,000 Carryover and/or Recoveries (Actual/Estimates/Projections) ‐ ‐ Rescissions to Current Year/Budget Year ‐ ‐ Net Sequestered Resources ‐ ‐ Reprogrammings/Transfers ‐ ‐ Supplementals ‐ ‐ Total Budget Authority $3,000 $1,000 Collections – Reimbursable Resources ‐ ‐ Total Budget Resources $3,000 $1,000 Obligations (Actual/Estimates/Projections) $3,000 $1,000 Personnel: Positions and FTEEnacted/Request Positions ‐ ‐ Enacted/Request FTE ‐ ‐ Onboard and Actual FTE; Includes Collections ‐ Reimbursable ResourcesOnboard (Actual/Estimates/Projections) ‐ ‐ FTE (Actual/Estimates/Projections) ‐ ‐ 

Construction and Facility Improvements – PPA 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget White House Complex Fence Total Investment Elements FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 149
Procurement, Construction, and Improvements Construction and F

USSS – PC&I - 21 

Construction and Facility Improvements – PPA 

Non Pay Budget Exhibits 

Non Pay by Object Class 

Non‐Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

25.2 Other Services from Non‐Federal Sources $3,000 $1,000 $1,0Total ‐ Non Pay Object Classes $3,000 $1,000 $1,0

Construction and Facility Improvements – PPA 

Capital Investments Exhibits 

Capital Investments 

 Investment 

(Dollars in Thousands)

Unique Item 

Identifier

Acquisition 

Level

Procurement/ 

Construction

IT/NonIT MAOL FY 201

Enacted 

Construction and Facility Improvements End Items - - Construction - No $3,000 

USSS - 150
Construction and Facility Improvements – PPA Construction and Facilit

USSS – PC&I - 22 

Construction and Facility Improvements End Items – Investmen

Capital Investments Exhibits

Construction 

Construction and Facility Improvements

Procurement, Construction, and Improvements Funding 

 Investment 

(Dollars in Thousands)

Unique Item 

Identifier

Acquisition 

Level

Procurement/ 

Construction

IT/NonIT MAOL FY 201

Enacted 

Construction and Facility Improvements End Items - - Construction - No $3,000 

Construction DescriptionThis investment funds the replacement and extension of the Crown Fence that surrounds the White House and includes tDepartment of the Treasury and the Eisenhower Executive Office Building (EEOB). Project: White House Complex Fence

Funding Requirement: The FY 2021 President’s Budget includes $1.0M for Phase II of the White House Complex Fence. Funding w

the preliminary construction design. This project will reduce the vulnerability of the Department of Treasury building and the EEO

Description: Design Phase: $1.0M included to continue the preliminary construction design for replacing and extending the White 

Treasury and Eisenhower Executive Office Building (EEOB).

Justification: An improved fence around the EEOB and the Treasury building will impede individuals attempting to jump the fence 

House Complex. In addition, the improved fence will provide a level of resistance against explosive devices used for breaching. Th

proposed fence must be integrated with the concept of operations for providing physical protection at the EEOB and the Treasury 

addresses the existing capability gaps. The $3.0M of enacted FY 2019 funds were applied to Phase I construction needs through a 

funds will resource the conceptual design work to meet Phase II performance requirements.

Impact: This program supports ongoing operational mission essential protection capabilities. Funding ensures operationadesign does not prematurely fail prior to planned lifecycle replacements. If Phase II is not funded significant delays of th

design will persist. 

USSS - 151
Construction and Facility Improvements – PPA Construction and Facilit

USSS – PC&I - 23 

Construction / Lease Award Schedule:

Activity Contract Solicitation Design Award Design Complete Construction Award Construction Start Construction Complete 

USSS - 152



U.S. Secret Service 

Table of Contents 

Research and Development .................................................................................................................................................. 

Budget Comparison and Adjustments ........................................................................................................................................Non Pay Budget Exhibits ...........................................................................................................................................................Research and Development Projects ..........................................................................................................................................

Gen2 Fully Armored Vehicle (FAV) Program .............................................................................................................

Protective Systems and Weapons Testing Program ......................................................................................................

Computer Emergency Response Team (CERT) Program ............................................................................................

USSS - 153
U.S. Secret Service 

Research and Development 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Research and Development - - $2,500 - - $12,455 - - $11Total - - $2,500 - - $12,455 - - $11Subtotal Discretionary - Appropriation - - $2,500 - - $12,455 - - $11

The U.S. Secret Service Research and Development (R&D) appropriation provides resources necessary to identify, expltechnologies and capabilities that will help enable the Secret Service to perform its dual missions of protection and invesused to support the following Technology Readiness Levels (TRLs): 

Basic Research Applied Research Technology Development Technology Demonstra

TRL-1 TRL-2 TRL-3 TRL-4 TRL-5 TRL-6 

Basic Principles 

Observed/ 

Reported 

Technology 

Concept/Application 

Formulated 

Critical Function 

or Characteristic 

Proof of Concept 

Validation in Lab 

Environment 

Validation in Relevant 

Environment 

System Prototyp

Relevant 

Environmen

Secret Service’s R&D appropriation currently supports the Computer Emergency Response Team (CERT) Program, Ge

(FAV), and Operational Mission Support (OMS) - Protective Systems and Weapons Testing. The Budget proposes to transfer the United States Secret Service, including this account, from the Department of HomelDepartment of the Treasury. All functions, personnel, assets, and obligations of the Secret Service, including the functio

Homeland Security related to the Secret Service, will transfer to the Department of the Treasury. 

USSS - 154
U.S. Secret Service 

Research and Development 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $2,500 $12,455 Carryover and/or Recoveries (Actual/Estimates/Projections) - $1,301 Rescissions to Current Year/Budget Year - - Net Sequestered Resources - - Reprogrammings/Transfers - - Supplementals - - Total Budget Authority $2,500 $13,756 Collections – Reimbursable Resources - - Total Budget Resources $2,500 $13,756 Obligations (Actual/Estimates/Projections) $1,199 $11,328 Personnel: Positions and FTEEnacted/Request Positions - - Enacted/Request FTE - - Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) - - FTE (Actual/Estimates/Projections) - - 

USSS - 155
U.S. Secret Service 

Research and Development 

Summary of Budget Changes 

Budget Formulation Activity Posit

(Dollars in Thousands)

FY 2019 Enacted FY 2020 Enacted FY 2021 Base Budget Computer Emergency Response Team (CERT) Program Gen2 Fully Armored Vehicles (FAV) Operational Mission Support - Protective System and Weapons Testing Total Research and Development Projects FY 2021 Request FY 2020 To FY 2021 Change 

USSS - 156
U.S. Secret Service 

Research and Development 

Non Pay Budget Exhibits 

Non Pay Summary 

 Organization 

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 Presiden

Budget 

Research and Development $2,500 $12,455 $Total $2,500 $12,455 $1Discretionary - Appropriation $2,500 $12,455 $

Non Pay by O

bject Class 

Non-Pay Object Classes FY 2019 FY 2020 FY 2021 

(Dollars in Thousands) Enacted Enacted President's Budg

25.2 Other Services from Non-Federal Sources $1,910 $12,190 $11,631.0 Equipment $590 $265 $3Total - Non Pay Object Classes $2,500 $12,455 $11,9

USSS - 157
U.S. Secret Service 

Research and Development Projects 

Summary of Projects 

Research and Development Project FY 2019 FY 2020 FY 

(Dollars in Thousands) Enacted Enacted Preside

 Gen2 Fully Armored Vehicle (FAV) Program - $9,000 $ Protective Systems and Weapons Testing Program $2,250 $1,705 $ Computer Emergency Response Team (CERT) Program $250 $1,750 

USSS - 158
Research and Development Gen2 Fully Arm

Gen2 Fully Armored Vehicle (FAV) Program 

Technology Readiness Level Exhibit 

Research and Development Project FY 2019 FY 2020 FY 

(Dollars in Thousands) Enacted Enacted Preside

 Gen2 Fully Armored Vehicle (FAV) Program - $9,000 $

R&D Project Description This program supports the continuation of R&D work on the Gen2 FAV, which is necessary to ensure that the timeline fvehicle can be completed as soon as possible, thus maintaining the program’s vehicle refresh cycle. This cycle allows fo

replacement of vehicles as they reach the end of their five-year lifecycle and will enable Secret Service to maintain an op

meet the agency’s protective mission.  Problem: General Motors (GM) ceased production of the standard FAV base platform (3500 Series Suburban), whic

met the protective and transportation needs for Secret Service’s passenger FAV fleet. The development of a new veh

requirements is necessary in order to ensure the continuation of the FAV program. 

 Solution: Secret Service is working with industry and, as appropriate, other government agencies to develop a new b

FAVs that will meet the protective and transportation requirements. 

 Justification: Funding requested in the FY 2021 President’s Budget will be used for the development of the Gen2 F

incorporated into these vehicles represent an integral component of the overall Secret Service protective methodologand market research, additional funding is required in FY 2021 to continue R&D efforts begun in FY 2020. The fundto continue its planned trajectory to have a replacement vehicle ready for acquisition at the same time that vehicles c

reach the end of their useful life. Secret Service will continue exploration of market alternatives, including working wpotentially arrive at a solution beneficial to multiple agencies. 

 Impact: FAVs currently being deployed to the field have a five-year refresh cycle. Development of a new base platf

completed to deploy Gen2 FAVs as the current fleet starts to require refresh. Without the development of a new vehivehicles in the future with which to replace its operational FAV fleet. 

Type of Research 

Developmental. 

USSS - 159
Research and Development Gen2 Fully Arm

Technology Readiness Level TBD –Level will be identified following completion of FY 2020-planned market research efforts and collaboration with 

Federal partners. Transition Plans 

Upon successful completion of the R&D project, Secret Service will initiate the acquisition process for the new vehiclesProject Schedule 

Research and Development Description Plan Start Date P

Co

FY 2019 

N/A 

FY 2020 

Develop an R&D plan, conduct market research, and identify other government agencies that have a similar need for armored vehicles. FY 2019 Q2 FY Initiate R&D of Gen2 FAV. FY 2019 Q3 FY 

FY 2021 

Continue R&D of Gen2 FAV. Build and evaluate an initial test vehicle, and planned trajectory of lifecycle replacement by 2023. FY 2021 Q4 FY 

USSS - 160
Research and Development Protective Systems an

Protective Systems and Weapons Testing Program 

Technology Readiness Level Exhibit 

Research and Development Project FY 2019 FY 2020 FY 

(Dollars in Thousands) Enacted Enacted Preside

 Protective Systems and Weapons Testing Program $2,250 $1,705 $

R&D Project Description The R&D Protective Systems and Weapons Testing Program enables the Secret Service to continue to refresh, update, a

countermeasures in order to ensure a safe environment and provide enhanced security coverage for the President, Vice PService protectees without a significant degradation in performance. This includes providing security for protectees at th(WHC), the Vice President’s Residence, and temporary sites, from emerging and evolving explosive, chemical, biologicthreats.  Problem: Secret Service must maintain state-of-the-art weapons and protective systems to combat new, evolving, an

technologies.

 Solution: The OMS – Protective Systems and Weapons Testing Program provides for the development, design, testi

technologies to ensure Secret Service has needed capabilities to respond to an evolving threat environment.

 Justification: The FY 2021 President’s Budget requests funding for Protective Systems and Weapons Testing, whic

Operational Mission Support (OMS) portfolio. The OMS initiative supports the protection of the President, the Vice 

Service protectees. The Protective Systems and Weapons Testing Program provides for the policy directed research, 

evaluation (RDT&E) needs of the Secret Service in order to assess, plan, and prepare for future adjustments within a

activities. FY 2021 funding will enable the Secret Service to substantially enhance and adapt to emerging threats and assuredly defend the safety of the President and Vice President from plausible, credible threats. Specifically, this funtesting, and contract award to assess the effectiveness of both weapons and defensive countermeasures, to include mare unique to Secret Service mission space. Additional details are available in a classified format.

 Impact: The development, design, testing, and evaluation activities will inform the procurement and deployment pro

protective systems that enhance Secret Service’s protective capabilities. These efforts ensure that Secret Service is abprotection of the President, Vice President, other protectees, and protected sites from emerging explosive, chemical, 

cyber threats.

USSS - 161
Research and Development Protective Systems an

Type of Research Developmental. Further details are available in a classified format. Technology Readiness Level Level 6 – System Prototypes in Relevant Environment. Transition Plans FY 2021 R&D funds will be applied to adapting projected future technology to the most pressing and achievable threat mand defensive countermeasures developed and approved for operational use will transition into acquisition under the OMProject Schedule 

Research and Development Description Plan Start Date P

Co

FY 2019 

Developmental. Further details are available in a classified format. Ongoing 

FY 2020 

Developmental. Further details are available in a classified format. Ongoing 

FY 2021 

Developmental. Further details are available in a classified format. Ongoing 

USSS - 162
Research and Development Computer Emergency Res

Computer Emergency Response Team (CERT) Program 

Technology Readiness Level Exhibit 

Research and Development Project FY 2019 FY 2020 FY 

(Dollars in Thousands) Enacted Enacted Preside

 Computer Emergency Response Team (CERT) Program $250 $1,750 

R&D Project Description The CERT R&D project funds the development of technologies and techniques in support of Secret Service’s cyber inve

operations. Secret Service plans to develop computer forensic gap area tools, investigative support for complex cyber indevelopment for unique cyber related issues, and training.  Problem: The Secret Service must keep pace with the rate of technological change adopted by criminal enterprises t

financial system, and persons and facilities protected by the Secret Service. This includes continued advancements to critical systems, cyber investigative applications, malware analysis, and applications that identify, assess, and mitiga

 Solution: The CERT program requires the development and maintenance of cybersecurity and counterfeit investigat

The current tool suite is utilized by the Secret Service’s Critical System Protection (CSP) program. These tools includefense platform) and Compass (protective advance expert system application; formerly known as FlipBook). CERT Note Processing System (BNPS), which is an application which increased the efficiency of processing counterfeit bafield offices. Secret Service plans to develop computer forensic gap area tools, investigative support for complex cyband development for unique cyber related issues, and training.

 Justification: The FY 2021 President’s Budget funding supports the Secret Service’s CERT liaison program with th

University-Software Engineering Institute (CMU-SEI), a Federally Funded Research and Development Center (FFRrealizes significant cost savings by leveraging participating agencies’ resources to accomplish shared objectives. The 

represents the Secret Service’s long-standing commitment to develop mission-critical systems, cyber investigative ap

and applications that identify, assess, and mitigate threats to the Nation’s financial system, critical infrastructure, and protected by the Secret Service. 

 Impact: FY 2021 R&D funding will allow Secret Service to enhance its cybersecurity and counterfeit investigation 

addition, funding will allow the Secret Service to leverage the Carnegie Mellon University-Software Engineering Instechnologies and techniques to enhance the Secret Service’s cyber investigations and protective operations. 

USSS - 163
Research and Development Computer Emergency Res

Type of Research Developmental. Technology Readiness Level Level varies between specific portfolio projects between TRL-2 and TRL-7. Transition Plans Technologies will be transitioned to Secret Service for operational use, will be available to other members of the HomelProject Schedule 

Research and Development Description Plan Start Date P

Co

FY 2019

Develop new Basic Investigations of Computers and Electronic Crimes Program (BICEP). FY 2018 Q1 FY Cybersecurity assessment of Secret Service’s Hazen facility. FY 2018 Q1 FY Develop version 3 of the Flipbook Web Application (now Compass). FY 2018 Q2 FY Refine Bank Note Processing System based on user integration testing. FY 2018 Q1 FY 

FY 2020

Develop technologies for use in the cybersecurity assessments of the CSP program. FY 2019 Q1 FY 

FY 2021

Develop technologies for use in the cybersecurity assessments of the CSP program.. TBD 

USSS - 164


U.S. Secret Service Cont

Table of Contents 

Contribution for Annuity Accounts ...................................................................................................................................... 

Budget Comparison and Adjustments ........................................................................................................................................Personnel Compensation and Benefits .......................................................................................................................................

USSS - 165
U.S. Secret Service Cont

Contribution for Annuity Accounts 

Budget Comparison and Adjustments 

Comparison of Budget Authority and Request 

FY 2019 FY 2020 FY 2021 

Organization Enacted Enacted President's Budget 

(Dollars in Thousands) Pos. FTE Amount Pos. FTE Amount Pos. FTE Amou

Contribution for Annuity Accounts - - $265,000 - - $265,000 - - $265Total - - $265,000 - - $265,000 - - $265Subtotal Mandatory - Appropriation - - $265,000 - - $265,000 - - $265

Per Title V, Chapter 7, Section 5-703, of the District of Columbia (D.C.) Code, “whenever any member of the Secret Seduties other than clerical for 10 years or more directly related to the protection of the President,” and was hired prior to 1eligible to retire through the D.C. Police and Fireman’s Retirement and Disability Relief Fund. In 1930, this retirement sWhite House Police officers (see P.L. 71-221) when they transferred from the D.C. Metropolitan Police Force to the Secthe passage of P.L. 76-847, this retirement system was extended to all Secret Service employees who qualified. To reimb

fund, a permanent, indefinite appropriation was enacted. The Secret Service uses this appropriation to reimburse the Disbenefit payments made in excess of the sum of salary deductions made from the employee’s pay and forwarded to the D

Employees covered by this Title include Uniformed Division Officers, Special Agents, Physical Security Specialists, ProTechnicians, Special Officers, and Operation Support Technicians. The Budget proposes to transfer the United States Secret Service, including this account, from the Department of HomelDepartment of the Treasury. All functions, personnel, assets, and obligations of the Secret Service, including the functioHomeland Security related to the Secret Service, will transfer to the Department of the Treasury. 

USSS - 166
U.S. Secret Service Cont

Contribution for Annuity Accounts 

Budget Authority and Obligations 

Budget Authority FY 2019 FY 2020 FY 

(Dollars in Thousands)

Enacted/Request $265,000 $265,000 Carryover and/or Recoveries (Actual/Estimates/Projections) $17,205 - Rescissions to Current Year/Budget Year - - Net Sequestered Resources - - Reprogrammings/Transfers - - Supplementals - - Total Budget Authority $282,205 $265,000 Collections – Reimbursable Resources - - Total Budget Resources $282,205 $265,000 Obligations (Actual/Estimates/Projections) $259,871 $265,000 Personnel: Positions and FTEEnacted/Request Positions - - Enacted/Request FTE - - Onboard and Actual FTE; Includes Collections - Reimbursable ResourcesOnboard (Actual/Estimates/Projections) - - FTE (Actual/Estimates/Projections) - - 

USSS - 167
U.S. Secret Service Cont

Contribution for Annuity Accounts 

Personnel Compensation and Benefits 

Pay by Object Class 

Pay Object Classes

(Dollars in Thousands) FY 2019 Enacted FY 2020 Enacted FY 2021 President's Budge

13.0 Benefits for Former Personnel $265,000 $265,000 $265,00Total - Personnel Compensation and Benefits $265,000 $265,000 $265,00Positions and FTE

In FY 2021, Contribution for Annuity Accounts includes $265.0M in overall personnel compensation and benefits. The 

object class 13.0 - Benefits for Former Personnel is utilized to reimburse the District of Columbia for benefit payments 

sum of salary deductions made from the employee’s pay and forwarded to the D.C. retirement fund. 

USSS - 168




Department of the Treasury 

Office of Financial Stability 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
OFS - 2

Table of Contents

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

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

1.1 - Program Account Summary ............................................................................................... 3

1.3 – Program Disbursement, Repayments, and Cost/Savings ................................................... 4

B – Vision, Priorities and Context .............................................................................................. 4

1.4 – Budget Adjustments Table ................................................................................................. 6

D – Budget Increases and Decreases Description ....................................................................... 7

1.5 – Operating Levels Table ...................................................................................................... 8

E – Appropriations Language and Explanation of Changes ....................................................... 8

F – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 11

Operational Goals ..................................................................................................................... 12

C – Changes in Performance Measures .................................................................................... 13

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
OFS - 3

Section I – Budget Request 

A – Mission Statement 

A central part of the response to the 2008 financial crisis was the implementation of the Troubled 

Asset Relief Program (TARP), which was established in the fall of 2008 under the Emergency 

Economic Stabilization Act of 2008 (EESA) (P.L. 110-343) within the Office of Domestic 

Finance at the U.S. Department of the Treasury (Treasury). TARP was created to restore the 

liquidity and stability of the financial system, and it is administered by the Office of Financial 

Stability (OFS). 

Since late 2010, OFS has made significant progress in winding down TARP investment 

programs and in recovering OFS’s outstanding investments. OFS continues to operate a housing 

program under TARP to help struggling families avoid foreclosure, but in 2016 began to winddown the largest TARP housing program. As of November 30, 2019, OFS has recovered more 

than 96 percent of the $442.0 billion in total program funds disbursed under TARP, as well as an 

additional $17.6 billion from Treasury’s equity in AIG. When all of Treasury’s AIG investments 

are included, the amount recovered is greater than the funds disbursed by nearly $0.7 billion. 

1.1 - Program Account Summary 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

 Actual Estimated Estimated Change % Change 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

Obligations 

Equity Program Account 1,073 6,671 0 (6,671) -100.00% 

Housing Program Account 0 0 0 0 NA 

TARP Direct Program Account 0 0 0 0 NA 

TARP Administrative Account 57,743 47,240 42,154 (5,086) -10.77% 

TARP Negative Downward Reestimate Receipt 

Account (26,982) (74,433) 0 74,333 -100.00% 

Total Obligations $31,834 ($20,423) $42,154 $62,576 -306.40% 

Budget Authority 

Equity Program Account 1,073 6,671 0 (6,671) -100.00% 

Housing Program Account 0 0 0 0 NA 

TARP Direct Program Account 0 0 0 0 NA 

TARP Administrative Account 61,796 51,399 42,154 (9,246) -17.99% 

TARP Negative Downward Reestimate Receipt 

Account (26,982) (74,433) 0 74,333 -100.00% 

Total Budget Authority $35,887 ($16,263) $42,154 $58,416 -359.20% 

Outlays 

Equity Program Account 1,073 6,671 0 (6,671) -100.00% 

Housing Program Account 1,451,982 920,236 646,002 (274,233) -29.80% 

TARP Direct Program Account 0 0 0 0 NA 

TARP Administrative Account 54,524 83,479 44,003 (9,476) -17.72% 

TARP Negative Downward Reestimate Receipt 

Account (26,982) (74,333) 0 74,333 -100.00% 

Total Outlays $1,480,597 $906,052 $690,005 ($216,047) -23.84% 

Total Full-time Equivalents (FTE) 22 16 14 -2 -12.50% 
OFS - 4

1.2 – Financing Account Summary

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

 Actual Estimated Estimated Change % Change 

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT 

TARP Direct Loans 

Obligations 13,131 73,222 0 (73,222) -100.00% 

Collections 13,131 73,222 0 (73,222) -100.00% 

Financing Authority (net) 0 0 0 0 NA 

Financing Disbursements (net) (60,091) 73,222 0 (73,222) -100.00% 

Equity Purchases 

Obligations 14,256 1,411 379 (1,032) -73.17% 

Collections 26,826 19,703 6,536 (13,167) -66.83% 

Financing Authority (net) (9,700) (19,603) (6,157) 13,445 -68.59% 

Financing Disbursements (net) (12,570) (18,292) (6,157) 12,134 -66.34% 

Housing 

Obligations 1,367 2,108 160 (1,948) -92.39% 

Collections 28 16 4 (13) -77.25% 

Financing Authority (net) 0 0 0 0 NA 

Financing Disbursements (net) 1,339 2,092 157 (1,935) -92.51% 

1.3 – Program Disbursement, Repayments, and Cost/Savings 

Dollars in Billions 

 

Cumulative 

Obligated 

(as of 

11/30/2019) 

Cumulative 

Disbursed 

(as of 

11/30/2019) 

Cumulative 

Outstanding 

(as of 

11/30/2019) 

Total 

Cumulative 

Income 

(as of 

11/30/2019) 

Total Cash 

Back (as of 

11/30/2019) 

Total 

Estimated 

Life Costs 

(as of 

11/30/2019) 

Bank Support Programs 250.5 245.1 0.0 35.7 275.6 (24.3) 

Credit Market Programs 19.1 19.1 0.0 4.5 23.6 (3.3) 

AIG Investment Program (AIG) 67.8 67.8 0.0 1.0 55.3 15.2 

Automotive Industry Financing 

Program 79.7 79.7 0.0 7.4 70.6 12.1 

Treasury Housing Programs 33.1 30.3 0.0 32.2 

Total 450.2 442.0 0.0 48.6 425.1 31.9 

Additional AIG Common Shares 

Held by Treasury 0.0 0.0 0.0 17.6 17.6 (17.6) 

Total for Programs and Shares 450.2 442.0 0.0 66.2 442.7 14.3 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of nearly $2.4

billion on those shares.

B – Vision, Priorities and Context 

TARP was created by EESA in October 2008 as part of a broad-based federal response to the 

financial crisis. The purposes of EESA were — 

(1) to immediately provide authority and facilities that the Secretary of the Treasury could use to 

restore liquidity and stability to the financial system of the United States; and 

(2) to ensure that such authority and facilities were provided in a manner that would — 

(A) protect home values, college funds, retirement accounts, and life savings; 

(B) preserve homeownership and promote jobs and economic growth; 

(C) maximize overall returns to the taxpayers of the United States; and 

(D) provide public accountability for the exercise of such authority. 
OFS - 5

EESA vested authority in the Secretary of the Treasury to “purchase, and to make and fund 

commitments to purchase, troubled assets from any financial institution, on such terms and 

conditions as are determined by the Secretary.” This program supports the Department’s goal of 

financial stewardship. 

As a result of improved financial conditions and careful stewardship of the program, the ultimate 

cost to taxpayers of TARP investments is estimated to be significantly lower than initially 

expected. In Fiscal Year (FY) 2009, the program was projected to cost $341 billion, but as of 

November 30, 2019, it is estimated to cost only $31.9 billion (of which -$0.3 billion relates to 

investments and $32.2 billion relates to housing programs that do not require repayments by 

recipients). Lifetime costs are projected to be $14.3 billion with the inclusion of receipts from 

Treasury’s sale of additional AIG common stock. 

During FY 2020 and FY 2021, OFS’s priority is to continue the responsible wind-down of all 

TARP programs. 

OFS Administrative Expenses 

The authority for OFS’s administrative funding is provided in section 118 of EESA. In 

FY 2020, OFS plans to obligate just over $47 million and use no more than 16 Full-Time 

Equivalent (FTE) employees. In FY 2021, OFS plans to obligate just over $42 million and use 

no more than 14 FTE employees, a reduction of over 10 percent and 12 percent, respectively, 

from the current FY 2020 estimates, to fund the management, maintenance, and continued winddown of the TARP housing programs and the disposition of OFS’s remaining investments. 

C - Credit Reform Account Description 

Section 123 of EESA requires the cost of TARP programs to be calculated using the methods 

required by the Federal Credit Reform Act of 1990 (“credit reform”). In addition to the OFS 

Administrative Account, the organization manages six accounts to comply with the credit reform 

accounting requirements: (1) the TARP Equity Purchase Program Account; (2) the TARP 

Equity Purchase Financing Account (EPFA); (3) the TARP Housing Programs Account; (4) the 

TARP Housing Programs, Letter of Credit (LOC) Financing Account; (5) the TARP Program 

Account; and (6) the TARP Direct Loan Financing Account (DLFA). 

Account Descriptions 

TARP Equity Purchase Program Account: The TARP Equity Purchase Program Account 

records the subsidy costs (cost to the government) associated with federal equity injections into 

qualifying financial institutions. Subsidy costs are calculated on a net present value basis. 

TARP Equity Purchase Financing Account (EPFA): The TARP EPFA is a non-budgetary 

account that records all financial transactions to and from the government resulting from equity 

purchases. The EPFA primarily tracks each cohort year’s purchase activity (dividend payments, 

the exercise of warrants, Treasury borrowings, interest paid to or received from Treasury, etc.) 

and is not included in the budget totals when calculating total government spending. 

TARP Housing Programs Account: The TARP Housing Programs Account records the subsidy 

costs and cash outlays associated with Treasury’s TARP housing programs. The Making Home 

Affordable (MHA) and Hardest Hit Fund (HHF) programs are recorded on a cash basis, and the 
OFS - 6

Federal Housing Administration (FHA) Short-Refinance Program is subject to credit reform 

accounting requirements, whereby its subsidy cost is calculated on a net present value basis. 

TARP Housing Programs, LOC Financing Account: The TARP Housing Programs, LOC 

Financing Account is a non-budgetary account that records all financial transactions to and from 

the government resulting from OFS’s FHA Short-Refinance Program. Like other financing 

accounts, its primary purpose is the financial tracking of each cohort year’s loan activity. It is 

not included in the budget totals. 

TARP Program Account: The TARP Program Account records the subsidy costs associated with 

direct loans obligated to qualifying institutions. Subsidy costs are calculated on a net present 

value basis. 

TARP DLFA: The TARP DLFA is a non-budgetary account that records all financial 

transactions to and from the government resulting from direct loans. Like EPFA, its primary 

purpose is the financial tracking of each cohort year’s loan activity. It is not included in the 

budget totals. 

OFS Administrative Account: This account provides for the administrative costs of OFS. 

1.4 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2020 Estimated 16 $47,240 

Changes to Base: 

Maintaining Current Levels (MCLs): - $962 

Pay Raise (1.0% average pay raise) - $24 

Pay Annualization (FY 2020 3.1% average pay raise) - $24 

FERS Contribution Increase - $32 

Non-Pay - $882 

Subtotal Changes to Base 0 $962 

FY 2021 Current Services 16 $48,202 

Program Changes: 

Program Decreases: (2) ($6,048) 

Housing Program Support 0 ($2,350) 

Maintenance and Disposition of Assets 0 ($232) 

OFS Salaries and Benefits (2) ($660) 

Organizational Support 0 ($2,805) 

FY 2021 Estimated 14 $42,154 
OFS - 7

D – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ......................................................... +$962,000 / +0 FTE

Pay-Raise (1.0% in FY 2021)+$24,000 / +0 FTE 

Funds are required for a 1.0% average pay raise in January 2021. 

Pay Annualization (3.1%)+$24,000 / +0 FTE 

Funds are required for annualization of the January 2020 pay raise. 

FERS Contribution Increase +$32,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$882,000 / +0 FTE 

Funds are required for non-labor costs such as travel, contracts, rent, supplies, and equipment. 

Program Decreases ..................................................................................... -$6,048,000 / -2 FTE 

Housing Program Support -$2,350,000 / +0 FTE 

Administrative and compliance functions will continue to wind down during FY 2020 and over 

time as programs close, no new assistance actions are provided, and commitments are paid. 

Maintenance and Disposition of Assets -$232,000 / +0 FTE 

During FY 2020, OFS will continue the disposition of its position in the remaining Capital 

Purchase Program (CPP) and Community Development Capital Initiative (CDCI) institutions. In 

FY 2021, OFS expects its portfolio to be composed of a few institutions, primarily CDCI 

institutions. 

OFS Salaries and Benefits -$660,000 / -2 FTE 

Savings resulted from natural attrition and expiration of term appointments due to the winddown of various TARP programs. 

Organizational Support -$2,805,000/ +0 FTE 

Administrative costs associated with managing OFS’s portfolio will decline over time as TARP 

winds down. However, many duties and responsibilities will remain and are not directly 

correlated to the volume of assets held by OFS. Many of these organizational support functions 

will be run in-house and relate to legislative and oversight-mandated reporting functions, as well 

as the management and maintenance of TARP’s housing programs. 
OFS - 8

1.5 – Operating Levels Table

Dollars in Thousands

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 2,941 2,485 1,975 

11.5 - Other personnel compensation 70 66 50 

11.9 - Personnel Compensation (Total) 3,012 2,551 2,025 

12.0 - Personnel benefits 860 592 538 

Total Personnel and Compensation Benefits $3,871 $3,143 $2,562 

21.0 - Travel and transportation of persons 24 24 21 

23.0 - Rent, Communications and Utilities 1 1 1 

25.1 - Advisory and assistance services 9,241 6,551 4,644 

25.2 - Other services 34,504 31,170 29,681 

25.3 - Other purchases of goods & serv frm Govt accounts 10,100 6,339 5,233 

26.0 - Supplies and materials 2 4 4 

31.0 - Equipment 0 8 8 

Total Non-Personnel $53,872 $44,097 $39,591 

Total Obligations $57,743 $47,240 $42,154 

 

Full-time Equivalents (FTE) 22 16 14 

Table includes direct FTEs. 

Totals may not foot due to rounding 

E – Appropriations Language and Explanation of Changes 

OFS does not receive discretionary appropriations from Congress. Therefore, no appropriations 

language is proposed.

F – Legislative Proposals 

Treasury is seeking certain legislative changes related to OFS and TARP to reduce the frequency 

and necessity of several statutory reporting requirements that were established when TARP was 

created. OFS continues to wind-down operations and is focused on reducing costs by 

eliminating duplicative internal operations and increasing its reliance on shared services 

provided by Departmental Offices (DO) and Fiscal Services. As OFS continues to wind-down, it 

will become increasingly more efficient to be audited as part of the Treasury-wide financial 

statement audit under Treasury’s Office of the Inspector General (OIG). OFS, like several other 

Treasury Offices, is substantially cross-serviced by other organizations within Treasury, 

including the Bureau of the Fiscal Service, the Departmental Offices (DO) Office of Budget and 

Travel, and the Office of the Deputy CFO. The offices that provide services to OFS are all under 

the purview of the Treasury–wide financial statement audit. As an example, GAO spends a 

significant amount of resources and time testing OFS’s administrative contracts with DO that are 

audited by Treasury’s OIG. Additionally, GAO spends significant time testing the OFS financial 

reporting process, which is also under scope of the Treasury-wide financial statement audit. OFS 

estimates that enacting the following legislative proposals would result in $2-4 million in annual 

savings in contracting costs and GAO reimbursements, and would reduce OFS’s workload by 
OFS - 9

two FTEs. The remaining statutory requirements will continue to provide sufficient transparency 

during the wind-down of TARP. 

Repeal OFS’s Annual Stand-alone Financial Statements and Audit, performed by GAO: Repeal 

OFS’s stand-alone financial statements and the stand-alone financial statements audit performed 

by GAO (12 USC 5226(b) and (c) 2). Treasury’s OIG will audit the financial operations and 

internal controls of OFS as part of the Treasury-wide audit. OFS would be subject to the same 

audit rigor as DO. This update would be a more efficient use of taxpayer funds and more 

accurately reflect current materiality and activity of OFS. Additionally, move the following 

authorities in EESA related to OFS oversight (5226, 5227, and 5233) under the purview of 

Treasury’s OIG. 

Sunset the Financial Stability Oversight Board (FinSOB): This interagency group meets 

monthly and reports quarterly. The group reviews OFS’s program formulation and monitors 

program performance. The need for the board’s oversight and reporting has diminished given 

that no new OFS programs are being implemented, all major investments have been disposed, 

and the housing programs are winding down. 

Change the frequency of the Section 105(a) report (“Congressional Monthly”): This 

performance report remains generally static from month-to-month. With most programs having 

closed, less frequent (quarterly) reporting is warranted. 

Eliminate the Administrative Activity Report (“Obligation Report”): This quarterly report 

provides data on administrative obligations object type and is required under the annual Treasury 

appropriations bill. OFS has been prudent in the use of administrative funds and has been 

reducing obligations by approximately 20 percent per year over the last five years. 
OFS - 10

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

OFS’s continued wind-down efforts align with Treasury’s strategic goal of transforming 

government-wide financial stewardship. 

Bank Support Programs 

CPP: OFS created CPP, its largest program, in October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 states. During FY 2019, OFS continued to wind down 

remaining CPP investments. As of November 30, 2019, CPP has generated $226.8 billion in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $17 million 

in investments outstanding. 

CDCI: OFS created CDCI on February 3, 2010, to provide investments of capital to certified 

Community Development Financial Institutions (CDFI) banks, thrifts, and credit unions. OFS 

invested $570 million in 84 CDFIs, of which 28 institutions converted $363 million (including 

warrants) from CPP to CDCI. As of November 30, 2019, CDCI has generated $587 million in 

recoveries for taxpayers with four institutions remaining in the program, for a total of $22 

million in investments outstanding. 

Housing Programs 

OFS established several TARP housing programs, assisting millions of homeowners and 

introducing reforms for the mortgage servicing industry to facilitate mortgage modifications. 

MHA: In 2009, OFS launched MHA to help homeowners prevent avoidable foreclosures and 

strengthen the housing market. The cornerstone of MHA is the Home Affordable Modification 

Program (HAMP), which provides eligible homeowners the opportunity to reduce their monthly 

mortgage payments. In accordance with provisions of the Act, MHA terminated on December 

31, 2016, except with respect to certain applications made before such date. MHA servicers 

were required to design policies and procedures to reasonably ensure that all MHA transactions 

were completed by December 1, 2017. As of November 30, 2019, OFS had disbursed $20.8 

billion out of a possible $23.5 billion under MHA. 

HHF: Established in 2010 to provide aid to homeowners in states hit hardest by the economic 

and housing market downturn. The $7.6 billion initiative encompassed 18 states and the District 

of Columbia (D.C.). In December 2015, the Consolidated Appropriations Act, 2016 (the Act) 

granted Treasury authority to make an additional $2.0 billion in commitments through the HHF. 

As of November 30, 2019, OFS had disbursed $9.4 billion out of a possible $9.6 billion under 

HHF. 

FHA Short Refinance Program: OFS continues to support the FHA Short Refinance Program, 

which was intended to assist borrowers with negative equity. The program has seen limited 

participation. As such, OFS has incrementally reduced the LOC Facility supporting this program 

from an initial $8.0 billion to $27 million in FY 2017, which matches OFS’s maximum liability 

for loans covered by the program as of December 31, 2016, when the program ended for new 
OFS - 11

refinances. As of November 30, 2018, the revised lifetime cost estimate for the program was 

$14 million for outstanding refinanced loans. 

Other Programs 

Automotive Industry Financing Program (AIFP): OFS fully wound down AIFP during FY 2015, 

selling its remaining stake in Ally Financial. OFS disbursed $79.7 billion in loans and equity 

investments to the automotive industry through the AIFP. As of November 30, 2019, OFS had 

collected $70.6 billion through sales, repayments, dividends, interest, recoveries, and other 

income. Recoveries from the bankruptcy liquidation of Old Chrysler and Old GM remain 

possible. 

All other TARP programs closed prior to FY 2016, including the Targeted Investment Program, 

Asset Guarantee Program, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and American 

International Group, Inc. Investment Program. 

B – Budget and Performance by Budget Activity 

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Actual Actual Actual Actual Target Actual Target Target 

Clean Audit Opinion on TARP 

Financial Statements (ensure 

transparency of operations to the 

public)

1 1 1 1 1 1 1 1 

Percentage of Congressional 

Constituent Correspondence 

Responses Completed within 10 

Business Days of Receipt

50 66.75 87.5 100 100 94 100 100 

Percentage of Customers Satisfied 

with FinancialStability.gov (Self 

Selected Respondents) (ensure 

transparency of operations to the 

public)

66.5 73 69.25 69.25 75 73 DISC DISC 

Percentage of FOIA Assignments 

On-Time or Less Than 30-Days 

Overdue (ensure transparency 

within the government)

13.03 56.56 85 85 95 98 95 95 

Percentage of SIGTARP and GAO 

Oversight Recommendations 

Responded to On-Time (ensure 

transparency of operations to the 

public)

100 100 100 100 100 100 100 100 

Percentage of Statutorily-Mandated 

Reports Submitted On-Time (ensure 

transparency of operations to the 

public)

100 94.7 96.25 100 100 100 100 100 

The authority for OFS’s administrative funding is provided in section 118 of EESA. The 

administrative budget consists primarily of contracting and financial agent support costs 

associated with OFS’s ongoing implementation and management of the TARP housing programs 
OFS - 12

and the management and disposition of OFS’s remaining investments. In addition, continuing 

organizational support, including information technology, facilities, legal, compliance, 

accounting, and human resources, will be needed to manage and wind down these ongoing 

initiatives. OFS’s senior management is responsible for performance on its operational goals. 

Operational Goals 

OFS’s strategic goal is to transform government-wide financial stewardship, and the request will 

support the underlying operational goals to help OFS achieve this strategic goal. These 

operational goals include: 

1. Completing the wind-down of remaining TARP investment programs;

2. Continuing to help struggling homeowners avoid foreclosure;

3. Minimizing the cost of the TARP programs to the taxpayer; and

4. Operating with the highest standards of transparency, accountability, and integrity.

Completing the wind-down of remaining TARP investment programs 

The first Operational Goal is to complete the wind-down of the remaining TARP investment 

programs, the CPP and CDCI. OFS continues to exit CPP and CDCI by either: (i) allowing 

banks that are able to repurchase in full in the near future to do so; or (ii) restructuring and 

selling OFS’s investments in limited cases. OFS continues to work with CPP institutions to 

restructure certain investments that will allow them to exit TARP. As of November 30, 2019, 

OFS had $17 million in outstanding CPP investments and $22 million in outstanding CDCI 

investments. 

Continuing to help struggling homeowners avoid foreclosure 

OFS’s second Operational Goal is to continue helping struggling homeowners avoid foreclosure. 

The Act, signed into law on December 18, 2015, provided that the MHA program would 

terminate on December 31, 2016, except with respect to certain loan modification applications 

made before such date. As set forth in program guidelines, MHA servicers were required to 

evaluate applications submitted before the deadline and offer trial modifications to eligible 

applicants. All MHA transactions, including first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and unemployment forbearance plans, were required 

to be completed per program guidelines by December 1, 2017. Under this program, as of 

November 30, 2019, more than 1.7 million homeowners have secured permanent mortgage 

modifications. In addition, the HHF Program provides funding to 18 states and D.C. to assist 

struggling homeowners. As of November 30, 2019, HHF has disbursed approximately 

$8.5 billion in program funds ($9.4 billion in total program and administrative funds), and HFAs 

have drawn approximately $9.4 billion to prevent avoidable foreclosures and help stabilize 

neighborhoods. Based on information provided by the HFAs, eight states are projected to fully 

close in FY 2020, go through a final compliance review, and return any unused funds to 

Treasury, including two of the largest HFAs in the program. 

Minimizing the cost of the TARP programs to the taxpayer 

The third Operational Goal of OFS is to minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP funds to reduce the federal debt, and continuing to 
OFS - 13

replace government assistance with private capital in the financial system. OFS also takes steps 

to confirm that TARP recipients comply with any TARP-related statutory or contractual 

obligations such as executive compensation requirements and restrictions on dividend payments. 

Operating with the highest standards of transparency, accountability, and integrity 

OFS’s final Operational Goal is to continue to operate with the highest standards of 

transparency, accountability, and integrity. OFS posts a variety of reports online that provide 

taxpayers with regular and comprehensive information about how TARP funds are spent, who 

received them and on what terms, and how much has been recovered to date. OFS also publishes 

the annual audited Agency Financial Report and continues to maintain productive working 

relationships with the three oversight bodies charged with auditing and reviewing TARP 

activities. 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. Percentage of Customers Satisfied with

FinancialStability.gov (Self Selected

Respondents) (ensure transparency of

operations to the public)

Discontinue. No longer a meaningful 

performance measure, nor is it cost-effective. 

Additionally, with efforts to streamline content 

and operations and other wind-down efforts, 

OFS’ website no longer serves the same 

purpose it once did. 

Section III – Additional Information 

A – Summary of Capital Investments 

OFS uses DO’s system and is part of DO’s capital investment strategy. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports. This website also contains a digital copy of this 

document.





Department of the Treasury 

Office of Financial Research 

Congressional Budget 

Justification and Annual 

Performance Report and Plan 

FY 2021 
OFR - 2 

Table of Contents 

Section I - Budget Request ........................................................................................................... 3

A – Mission and Vision Statement ............................................................................................. 3

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

1.1 – Resource Detail Table ........................................................................................................ 3

1.2 – Budget Adjustments Table ................................................................................................. 4

1.3 – Object Classification (Schedule O) Obligations ................................................................ 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals ............................................................................................................ 5

Section II – Annual Performance Plan and Report ................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 7

2.1.1 – Data Center Resources and Measures ............................................................................. 7

Data Center ................................................................................................................................. 7

2.1.2 – Technology Center Resources and Measures ................................................................. 9

Technology Center ...................................................................................................................... 9

2.1.3 – Research and Analysis Center Resources and Measures .............................................. 10

Research and Analysis Center .................................................................................................. 10

2.1.4 – Operations and Support Services Resources and Measures ......................................... 11

Operations and Support Services .............................................................................................. 11

C – Changes in Performance Measures .................................................................................... 12

D – Evidence-Building Activity ............................................................................................... 12

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments ....................................................................................... 13

 
OFR - 3 

Section I - Budget Request 

A – Mission and Vision Statement 

Mission: Promote financial stability by delivering high-quality financial data, standards, and 

analysis for the Financial Stability Oversight Council (FSOC or Council) and public.

Vision: A transparent, accountable, and resilient financial system. 

B – Summary of the Request 

The Office of Financial Research (OFR or Office) is estimating a fiscal year (FY) 2021 funding 

level of $75.271 million, which is flat with its FY 2020 estimated funding level. The request 

supports OFR priorities without the need for increased funding. The FY 2021 Budget shifts from 

Operations and Support to Technology Center, Data Center, and Research and Analysis Center 

(RAC) will allow the OFR to focus on its legislative mandate under the Dodd-Frank Act. The 

budget reflects an FTE level of 145, which aligns with the workforce plan that formed the basis 

for OFR’s recent Reduction in Force (RIF) and seeks to ensure appropriate structure for 

maximum efficiency. The FY 2021 Budget also proposes to impose appropriate Congressional 

oversight of OFR functions by subjecting its activities to the annual appropriations process 

beginning in FY 2022. 

1.1 – Resource Detail Table 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Budgetary Resources Actual Estimate Estimate % Change 

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Revenue/Offsetting Collections 

Assessments 0 $55,020 0 $62,386 0 $65,215 NA 4.5% 

Interest 0 $1,453 0 $1,254 0 $1,254 NA 0.0% 

Recoveries 0 $5,549 0 $5,047 0 $5,047 NA 0.0% 

Restoration of Sequestration Rescission 0 $3,262 0 $3,482 0 $3,755 NA 7.8% 

Unobligated Balances from Prior Years 0 $47,774 0 $49,715 0 $42,858 NA -13.8% 

Total Revenue/Offsetting Collections 0 $113,058 0 $121,884 0 $118,129 NA -3.1% 

Expenses/Obligations 

Data Center 9 $5,849 11 $3,499 12 $3,575 9.1% 2.2% 

Technology Center 47 $28,278 57 $34,450 63 $35,986 10.5% 4.5% 

Research and Analysis Center 24 $8,238 31 $14,111 36 $14,290 16.1% 1.3% 

Operations and Support Services 25 $17,496 29 $23,211 34 $21,420 17.2% -7.7% 

Total Expenses/Obligations 105 $59,861 128 $75,271 145 $75,271 13.3% 0.0% 

Sequestration Reduction ($3,482) ($3,755) $0 

Net Results 105 $49,715 128 $42,858 145 $42,858 13.3% 0.0% 

1) The OFR is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and 

interim final rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 
OFR - 4 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Amount 

FY 2020 Estimated 128 $75,271 

Changes to Base: 

Program Increases: 17 $2,155 

Increased Staffing 17 $2,155 

Non-Recurring Costs 0 ($2,155) 

Subtotal Changes to Base 17 $0 

FY 2021 Current Services 145 $75,271 

Program Changes: 

Subtotal Changes to Base 0 $0 

FY 2021 Estimate 145 $75,271 

C – Budget Increases and Decreases Description 

Program Increases ....................................................................................+$2,155,000 / +17 FTE 

Increased Staffing $+2,155,000 / +17 FTE 

In the wake of higher than anticipated attrition rates after the RIF conducted in FY 2019, 17 

FTEs are returned in the FY 2021 request relative to FY 2020. OFR will continue to fill positions 

that OFR identified pre-RIF as critical to the OFR’s future state and will fill critical vacancies 

created by attrition. 

Non-Recurring Costs ................................................................................... -$2,155,000 / +0 FTE 

Non-Recurring Costs -$2,155,000 / +0 FTE 

One-time costs related to post-RIF contractor staffing and space reconfiguration, as well as 

certain technology support costs, will non-recur. 
OFR - 5 

1.3 – Object Classification (Schedule O) Obligations

1) Personnel compensation and benefits include direct OFR staff members only. Object Classification 25.3, “Other goods and services from 

Federal sources,” and expenditures of “Operations and Support Services” include reimbursable support received from Treasury’s Departmental 

Offices; personnel benefits services from the Office of the Comptroller of the Currency; and services from Treasury’s Bureau of the Fiscal 

Service Administrative Resource Center, including human resource, procurement, travel, and financial management services. 

D – Appropriations Language and Explanation of Changes

The OFR receives no appropriations from Congress. 

E – Legislative Proposals 

The Budget proposes to impose appropriate Congressional oversight of OFR functions by 

subjecting its activities to the annual appropriations process beginning in FY 2022. 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual 

O bligations

Estimated 

O bligations

Estimated

O bligations

11.1 - Full-time permanent 17,870 21,872 23,381

11.3 - Other than full-time permanent 5 0 0

11.5 - Other personnel compensation 374 0 0

11.9 - Personnel Compensation (Total) 18,249 21,872 23,381

12.0 - Personnel benefits 6,929 9,374 10,020

13.0 - Benefits for former personnel 820 0 0

Total Personnel and Compensation Benefits $25,998 $31,246 $33,401

21.0 - Travel and transportation of persons 164 386 415

22.0 - Transportation of things 1 0 0

23.3 - Communication, utilities, and misc charges 69 140 80

24.0 - Printing and reproduction 13 0 0

25.1 - Advisory and assistance services 15,810 6,284 6,515

25.2 - Other services 20 9,321 6,918

25.3 - Other purchases of goods & serv frm Govt accounts 6,655 14,686 14,687

25.4 - Operation and maintenance of facilities 0 89 89

25.7 - Operation and maintenance of equip 4,445 1,967 2,007

26.0 - Supplies and materials 6,187 7,704 7,612

31.0 - Equipment 329 3,448 3,547

32.0 - Land and structures 170 0 0

Total Non-Personnel 33,863 44,025 41,870

Total Budgetary Resources $59,861 $75,271 $75,271

Full-time Equivalents (FTE) 105 128 145
OFR - 6 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The OFR was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act 

of 2010 to assist the Financial Stability Oversight Council (FSOC) and Congress though 

research, analytic tools, and data-related support on issues related to financial stability. The 

OFR’s efforts, focused through consultation with the FSOC, the Department of the Treasury, and 

other important stakeholders, will help drive toward the vision of a stable, transparent, and 

efficient financial system. 

The OFR’s mandated work is in direct alignment with Treasury’s Strategic Plan for FY 2018-

2022 under the following goals: 

 Goal 2 - Promote Financial Stability 

 Goal 5 - Achieve Operational Excellence 

OFR priorities for FY 2020 and FY 2021 that support these strategic goals include: 

1. Conducting relevant research and providing timely financial stability analysis and data 

products to FSOC, Congress, and the Public. 

2. Administering highly secure and efficient service-oriented technology, data collection, data 

management, and data mandate-oriented programs; continuing engagement as an essential 

source of standards expertise and becoming a source of standardized data necessary for 

financial stability risk measurement and monitoring. 

3. Strengthening management accountability and employee engagement to continuously 

improve support for the Financial Stability Oversight Council (FSOC) and its member 

agencies. 

OFR’s first two priorities for fiscal years 2020 and 2021 contribute to Treasury’s Goal 2: 

Promote Financial Stability. The focus will be in monitoring risks to financial stability and in 

enhancing and expanding tools for the OFR, FSOC members, and the public to use in monitoring 

those risks. Another key area of focus for the OFR will be to provide research and policy 

analysis that informs decision-makers and balances the need for stability with the need for 

efficient and effective regulation. The OFR will also continue its work to identify and fill 

financial data gaps; and to develop and implement financial data standards. Data standards 

underpin the quality and comparability of financial data needed for regulatory oversight work. 

Specific examples of this work include the OFR’s ongoing data collection of centrally-cleared 

repo agreements as well as support for the Secured Overnight Financing Rate planned as an 

alternative to The London Inter-bank Offered Rate. The OFR will also continue to publish its 

statutorily-mandated Annual Report that assesses the state of the U.S. financial system and 

presents key findings from the OFR’s research in addition to assisting the FSOC Secretariat with 

data, analysis, and other resources needed for its annual report to Congress. Across all of the 

OFR’s work, high quality data and strong research expertise, supported by strong information 

technology (IT), are essential. 

The OFR’s third priority aligns with Treasury’s Goal 5: Achieve Operational Excellence. As a 

result of an organization-wide reexamination conducted in FY 2018, the OFR completed a 
OFR - 7 

workforce reshaping in FY 2019. At the end of FY 2019, a new Director was appointed to lead 

the Office. The Director implemented a broad human capital strategy to strengthen management 

accountability and employee engagement. In recognition that organizational excellence is 

necessary for the OFR to achieve its mission, work slated for FY 2020 and FY 2021 include 

initiatives related to the Employee Viewpoint Survey, internal communications, process 

improvements, and performance management, among others. 

The OFR is in the process of finalizing its FY 2020-2024 Strategic Plan and has made additions 

to its performance measures to better capture progress in some of the areas described above. 

With the upcoming publication of its strategic plan, the OFR may add or refine performance 

measures and indicators to the FY 2022 Budget. 

B – Budget and Performance by Budget Activity 

2.1.1 – Data Center Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $17,240 $16,477 $17,833 $15,967 $5,849 $3,499 $3,575 

Budget Activity Total $17,240 $16,477 $17,833 $15,967 $5,849 $3,499 $3,575 

Full-time Equivalents (FTE) 51 37 44 42 9 11 12 

Note: In FY 2015 and prior, the Data and Technology Centers jointly referred to as the Data Center.

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Measure Actual Actual Actual Actual Actual Target Target Target 

Number of LEIs Issued 

Cumulatively in the United 

States and Internationally 

 

395,861 

 

464,412 

 

587,941 

 

1,300,832 

 

1,487,695 I I I 

Number of Times That 

Financial Data Standards are 

Incorporated in Rules and 

Regulations 

2 9 4 1 1 I I I 

Key: I – Indicator 

Data Center 

($3,575,000 from Assessments):

The Data Center seeks new ways to promote and share the OFR’s data and data analytic products 

with external stakeholders and promotes the development and use of data standards to improve 

the quality and sharing of data across the regulatory system. As a result of recent restructuring, 

the Data Center’s data operations functions transitioned to the Technology Center, which is now 

responsible for collecting, validating, safeguarding, and disseminating financial data necessary to 

achieve OFR’s mandate. The Data Center’s efforts are divided into two major focus areas, Data 

Products and Data Standards. 

Data Products 

The Data Products Team, created during the restructuring, develops new and innovative financial 

stability monitoring tools. The team also identifies enhancements to existing tools that meet the 

needs of OFR’s stakeholders. 

Product managers will oversee a portfolio of data products designed to monitor stability in the 

financial markets. Stakeholder liaisons will continue the OFR’s engagement with the FSOC 
OFR - 8 

Secretariat, FSOC member agencies, the financial services industry, and others to ensure OFR’s 

data products meet stakeholders’ needs as well as get a better understanding of unmet or 

underserved data needs. 

The OFR envisions its data products as high-quality monitoring tools to be used by key 

stakeholders, such as the FSOC and its members, members of Congress, financial industry 

participants, academics, the news media, and the public. Current tools include four online 

monitors, described in more detail below in Section D on Evidence-Building Activity. In 

FY 2020 and FY 2021, the OFR will continue to enhance existing products. 

Data Standards 

The Data Center leads work on the OFR’s priority to continue engagement as an essential source 

of standards expertise necessary for financial stability risk measurement and monitoring. 

Standards for financial data will benefit regulators and financial market participants by making 

data aggregation easier, improving analysis, and reducing data collection costs. The OFR 

monitors progress through the following key performance indicators. Note that these are not 

measures but indicators because the OFR, through mechanisms such as its leadership in 

standards and regulatory oversight bodies and providing technical guidance to other regulators, 

can influence these metrics but cannot directly control them. 

Data Center Description of Performance:

 Number of Legal Entity Identifiers (LEIs) Issued Cumulatively in the United States and 

Internationally – This indicator tracks the progress over time of industry’s use of the LEI. 

The Data Center monitors this indicator with the expectation that it will continue to rise over 

time. If that trend were to reverse, it would revisit its strategies for promoting the adoption 

of this important identifier. 

 Number of Times that Financial Data Standards are Incorporated in Rules and Regulations – 

This data point serves as an indicator of regulators’ awareness of the importance of data 

standards and the extent to which data standards are being adopted in rules and regulations. 

Similar to the indicator above, the Data Center monitors activity in this area to determine 

whether relevant pending rules and regulations incorporate financial data standards as 

appropriate. 

During FY 2019, the number of LEIs issued continued its upward trend, increasing by 

approximately 14 percent from the prior year. The Data Center will continue its strategy of 

engagement with financial data standards-setting organizations. 

For FY 2019, the OFR was directly responsible for having a financial data standard incorporated 

into a rule or regulation: the OFR passed a final rule to collect repurchase agreements (repo) data 

that includes the reporting of LEIs. 
OFR - 9 

2.1.2 – Technology Center Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $30,970 $32,132 $29,235 $23,530 $28,278 $34,450 $35,986 

Budget Activity Total $30,970 $32,132 $29,235 $23,530 $28,278 $34,450 $35,986 

Full-time Equivalents (FTE) 51 61 63 52 47 57 63 

Note: In FY 2015 and prior the Data and Technology Centers jointly referred to as the Data Center. 

Technology Center 

($35,986,000 from Assessments):

The OFR Technology Center provides mission-critical analytic services that support complex 

and sensitive financial data research for the FSOC and OFR. As a result of a recent 

restructuring, the Technology Center is currently responsible for collecting, validating, 

safeguarding and disseminating financial data necessary to achieve the OFR mission. The 

Center also acquires and maintains analytic platforms, software, telecommunications, client 

applications, and office automation solutions as required to meet the Office mission. 

 

U.S. Centrally-Cleared Repurchase Agreement Data Collection 

The OFR has begun a phased-in collection of data pursuant to a final rule regarding U.S. 

centrally-cleared repurchase agreements (repos), which represents the OFR’s first daily data 

collection. The Technology Center will continue to operationalize the daily collection 

processes that include validation and transformation of the collected data to support business 

uses. This budget request provides for the needed capacity and capabilities to support this 

critical daily collection. The OFR intends to develop performance measures related to the data 

collection and series publication after establishing baseline experience during the coming year. 

Cloud Transition 

OFR’s mission requires the use of vast amounts of data to identify financial risks while 

reducing the burden of regulation and direct costs to the public. During the most recent 

technology refresh cycle, the OFR took the opportunity to reevaluate its Information 

Technology systems and services, taking into account risk management and compliance 

practices to ensure proper protection of all managed data assets. As a result of this evaluation, 

an $800,000 per year cost savings was realized by moving a large quantity of IT equipment 

and services to a cloud based platform. This funding has been reinvested in other OFR 

priorities. Future years of services are expected to result in as much as $12 million in cost 

savings every four to five years compared to previous information technology refreshes upon 

migration to the cloud. The OFR has internal performance measures for this activity, however 

they are not public because the measures contain sensitive information. 

 
OFR - 10 

2.1.3 – Research and Analysis Center Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $10,396 $14,239 $15,605 $12,302 $8,238 $14,111 $14,290 

Budget Activity Total $10,396 $14,239 $15,605 $12,302 $8,238 $14,111 $14,290 

Full-time Equivalents (FTE) 43 54 53 42 24 31 36 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021 

Measure Actual Actual Actual Actual Actual Target Target Target 

Percent of Monitors 

Updated or Expanded 

During the Reporting 

Period (%) 

N/A N/A N/A N/A N/A N/A 90 95 

Timeliness of Responses 

to FSOC Research and 

Analysis Requests (%) 

N/A N/A N/A N/A N/A N/A 90 95 

Research and Analysis Center 

($14,290,000 from Assessments): 

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

macroprudential policy, and financial stability. Working closely with the FSOC, the Treasury, 

the Financial Research Advisory Council, and other key stakeholders, the OFR collaboratively 

identifies important issues that need to be addressed and focuses its resources on delivering 

impactful results. 

Supporting the FSOC and Congress with Timely and Relevant Research, Analysis, and Risk 

monitoring tools. 

The Research and Analysis Center contributes to nearly all of the OFR’s priorities. In particular, 

the Center is focused on engaging with FSOC and others to drive its research agenda and to help 

identify the tools needed for risk monitoring. The Research and Analysis Center will also work 

on enhancing its existing monitoring tools. Throughout FY 2020 and FY 2021, the Research and 

Analysis Center will continue its direct work for the FSOC Secretariat, providing support for its 

annual report to Congress in the form of research, analysis, and other resources. The Center will 

contribute to the FSOC’s transition to an activities-based approach for the non-bank designation 

process and will continue to respond to specific requests for research and analysis as needed. 

The OFR has introduced two new measures which reflect its focus on meeting FSOC’s research 

and analysis needs; and its priority around risk monitoring tools. As noted above, once the OFR 

has finalized its FY 2020-2024 Strategic Plan, it may identify additional metrics to help track 

progress toward its strategic goals and objectives. 

Research and Analysis Center Description of Performance:

 Percent of Monitors Updated or Expanded during the Reporting Period (new): Percentage is 

defined as the number of monitors updated or expanded divided by the total number of 

monitors during the reporting period. This will be reported both quarterly and annually. 

This measure tracks performance on OFR’s priority area related to risk monitoring tools and 
OFR - 11 

also serves as an indicator that update processes are operating without issues. The data will 

come from internal logs. 

 Timeliness of Responses to FSOC Research and Analysis Requests (new): Percentage is 

defined as the number of timely responses divided by the total number of requests, where 

timely is defined as by the agreed-upon date of delivery. This measure helps track 

performance on OFR’s priority to provide timely service delivery to FSOC as OFR’s primary 

stakeholder. The data is recorded in an excel spreadsheet recording request dates, due dates, 

and actual delivery dates. 

2.1.4 – Operations and Support Services Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $26,110 $32,026 $26,533 $24,226 $17,496 $23,211 $21,420 

Budget Activity Total $26,110 $32,026 $26,533 $24,226 $17,496 $23,211 $21,420 

Full-time Equivalents (FTE) 49 56 59 49 25 29 34 

Operations and Support Services 

($21,420,000 from Assessments):

The category “Operations and Support Services” contains the activities of the Director’s Office, 

Operations, and Chief Counsel. The category includes support provided through a shared 

services model and reimbursable arrangements with Treasury’s Departmental Offices; personnel 

benefits services from the Office of the Comptroller of the Currency; and services from 

Treasury’s Bureau of the Fiscal Service Administrative Resource Center, including services 

related to human resources, procurement, travel, and financial management. 

Following the significant restructuring of its organization, the OFR has made organizational 

excellence a critical priority. Initiatives related to the Employee Viewpoint Survey, internal 

communications, process improvements, and performance management will be led by 

Operations and guided by the Director’s Office and Chief Counsel. As these initiatives are 

planned and implemented, Operations will identify measures to track progress in these areas. As 

appropriate, these measures may be included in the FY 2022 request. 

 
OFR - 12 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

1. Percent of Monitors Updated or 

Expanded during the Reporting 

Period (new)

Percentage is defined as the number of monitors 

updated or expanded divided by the total number of 

monitors during the reporting period. This will be 

reported both quarterly and annually. This measure 

tracks performance on OFR’s priority area related to 

risk monitoring tools and also serves as an indicator 

that update processes are operating without issues. 

The data will come from internal logs.

2. Timeliness of Responses to FSOC 

Research and Analysis Requests 

(new)

Percentage is defined as the number of timely 

responses divided by the total number of requests, 

where timely is defined as by the agreed-upon date of 

delivery. 

This measure helps track performance on OFR’s 

priority to provide timely service delivery to FSOC as 

OFR’s primary stakeholder. The data is recorded in 

an excel spreadsheet recording request dates, due 

dates, and actual delivery dates.

D – Evidence-Building Activity 

The OFR’s overall function and purpose—on behalf of the FSOC—is to provide high-quality 

financial data and data-driven research and analysis to inform policymakers, regulators, financial 

market participants, and the American public about threats to the financial stability of the U.S. 

In FY 2019, the OFR conducted data-driven research and analysis to deliver a report to Congress 

covering the following risk areas: macroeconomic, market, credit, solvency and leverage, 

funding and liquidity, and contagion. Similar work assessing the state of the U.S. financial 

system will continue during FY 2020 and beyond. 

The OFR has also worked to fulfill its data-related mandates through an array of initiatives, 

including issuing a final rule to collect data on transactions in the $4 trillion market for 

repurchase agreements (repos), which provides funding to securities dealers and others. This 

collection will improve transparency and risk monitoring on the market. Implementation began 

in FY 2019 and will continue into the next fiscal year. 

The OFR has also continued its work to provide data-driven tools for risk measurement and 

monitoring and make them available to the public. 
OFR - 13 

Current offerings include: 

 Financial Stress Index: 

The daily index supports the monitoring of stress in the financial system. It is constructed 

from 33 financial market indicators, such as yield spreads, valuation measures, and interest 

rates. 

 Financial System Vulnerabilities Monitor: 

The quarterly monitor is a heat map of 58 indicators of vulnerabilities in the financial system. 

It is a starting point for monitoring U.S. financial stability. It is designed to provide early 

warning signals of potential vulnerabilities that merit further investigation. 

 G-SIB Interactive Chart: 

The interactive online tool shows systemic importance scores and score components for 

global systemically important banks. 

 U.S. Money Market Fund Monitor: The monthly monitor converts data from a Security 

and Exchange Commission reporting form into a user-friendly format. Users can examine 

individual funds and the industry as a whole.

In FY 2020 and FY 2021, the OFR will continue to produce the monitoring tools described 

above, and will explore the addition of new ones as appropriate. 

Section III – Additional Information 

A – Summary of Capital Investments 

The OFR has no capital investments. Capital investments that support OFR are included in the 

Departmental Offices plan. A summary of capital investment resources, including major IT and 

non-IT investments can be found at: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports. This website contains a digital copy of this 

document.



Department of the Treasury 

Financial Stability Oversight 

Council 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021
FSOC - 2

Table of Contents

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

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

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

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

1.2 – Budget Adjustments Table................................................................................................. 4

C – Budget Increases and Decreases Description....................................................................... 4

1.3 Object Classification (Schedule O) Obligations................................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals............................................................................................................ 5

Section II – Annual Performance Plan and Report................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 7

2.1.1 – Financial Stability Oversight Council Resources and Measures.................................... 7

Financial Stability Oversight Council......................................................................................... 7

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

FDIC Reimbursement ................................................................................................................. 7

C – Changes in Performance Measures...................................................................................... 7

D – Evidence-Building Activity ................................................................................................. 8

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments......................................................................................... 8
FSOC - 3

Section I – Budget Request

A – Mission Statement

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system.

B – Summary of the Request

The Financial Stability Oversight Council (FSOC or Council) is estimating a fiscal year 

(FY) 2021 funding level of $10.439 million, which is an increase of $1.410 million from the

FY 2020 estimated funding level. This request includes $6.138 million for the FSOC Secretariat 

and the Office of the Independent Member with Insurance Expertise, and $4.301 million to 

reimburse the Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by 

law. This is a projected increase of $1.308 million in FDIC reimbursable activity when 

compared to FY 2019. On December 4, 2019, the Council approved new interpretive guidance 

regarding FSOC’s nonbank financial company determinations. The guidance implements an 

activities-based approach for identifying and addressing potential risks to financial stability and 

enhances the analytical rigor and transparency of the Council’s process for designating nonbank 

financial companies. The FY 2021 Budget also proposes to impose appropriate Congressional 

oversight of Council functions by subjecting its activities to the annual appropriations process 

beginning in FY 2022.

1.1 – Appropriations Detail Table

1) The FSOC is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and 

interim final rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

Dollars in Thousands

Budgetary Resources

FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Revenue/O ffsetting Collections 

Assessments 0 $8,957 0 $10,001 0 $9,438 NA -5.6%

Interest 0 $236 0 $171 0 $171 NA 0.0%

Recoveries 0 $194 0 $195 0 $195 NA 0.0%

Restoration of Sequestration Rescission 0 $531 0 $567 0 $600 NA 5.8%

Unobligated Balances from Prior Years 0 $7,777 0 $7,581 0 $8,886 NA 17.2%

Total Revenue/O ffsetting Collections 0 $17,695 0 $18,515 0 $19,290 NA 4.2%

Expenses/O bligations 

FSOC 14 $5,246 18 $6,036 18 $6,138 0.0% 1.7%

FDIC 0 $4,301 0 $2,993 0 $4,301 NA 43.7%

Total Expenses/O bligations 14 $9,547 18 $9,029 18 $10,439 0.0% 15.6%

Sequestration Reduction 0 ($567) ($600) $0 

Net Results 14 $7,581 18 $8,886 18 $8,851 0.0% -0.4%

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Actual Estimated Estimated % Change
FSOC - 4

1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount 

FY 2020 Estimate 18 $9,029 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $102 

Pay Annualization (2020 3.1% average pay raise) 0 $18 

Pay-Raise (1.0% average pay raise) 0 $35 

FERS Contribution Increase $17 

Non-Pay 0 $32 

Subtotal Changes to Base 0 $102 

FY 2021 Current Services 18 $9,131 

Program Changes:

Program Increases: 0 $1,308 

FDIC Cost Adjustment 0 $1,308 

Subtotal Changes to Base 0 $1,308 

FY 2021 Estimate 18 $10,439 

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ..........................................................+$102,000 / +0 FTE

Pay Annualization (3.1%) +$18,000 / +0 FTE

Funds are requested for annualization of the January 2020 3.1% average pay raise.

Pay Raise (1.0% in 2021) +$35,000 / +0 FTE

Funds are requested for a 1.0% average pay raise in January 2021.

FERS Contribution Increase +$17,000 / +0 FTE

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$32,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.

Program Increases ......................................................................................+$1,308,000 / +0 FTE

FDIC Cost Adjustment +$1,308,000 / +0 FTE

Cost increase for FDIC reimbursable expenses based on indications from FDIC that reimbursable 

activities will increase during fiscal year 2020.
FSOC - 5

1.3 Object Classification (Schedule O) Obligations

D – Appropriations Language and Explanation of Changes

The FSOC receives no appropriations from Congress.

E – Legislative Proposals

Consistent with previous budget proposals the FY 2021 Budget proposes to impose appropriate 

Congressional oversight of Council functions by subjecting its activities to the annual 

appropriations process beginning in FY 2022.

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual 

O bligations

Estimated 

O bligations

Estimated

O bligations

11.1 - Full-time permanent 1,789 2,578 2,648

11.3 - Other than full-time permanent 168 175 175

11.5 - Other personnel compensation 15 0 0

11.9 - Personnel Compensation (Total) 1,972 2,753 2,823

12.0 - Personnel benefits 567 793 813

Total Personnel and Compensation Benefits $2,539 $3,546 $3,636

21.0 - Travel and transportation of persons 44 45 48

25.1 - Advisory and assistance services 145 291 296

25.2 - Other services from non-Federal sources 17 16 16

25.3 - Other goods and services from Federal sources 6,351 4,594 5,901

25.4 - Operation and maintenance of facilities 2 0 0

26.0 - Supplies and materials 307 527 532

31.0 - Equipment 72 10 10

32.0 - Land and structures 70 0 0

Total Non-Personnel 7,008 5,483 6,803

Total Budgetary Resources $9,547 $9,029 $10,439

Full-time Equivalents (FTE) 14 18 18
FSOC - 6

Section II – Annual Performance Plan and Report

A – Strategic Alignment

The FSOC supports the Department of the Treasury’s Strategic Plan for FY 2018-2022 as 

follows: 

• Goal 1: Boost U.S. Economic Growth

o Objective 1.2 – Strong Economic Fundamentals

• Goal 2: Promote Financial Stability

o Objective 2.4 – Financial Sector Critical Infrastructure & Cybersecurity 

The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and 

five nonvoting members who serve in an advisory capacity. The Council brings together the 

expertise of the federal financial regulators, an insurance expert appointed by the President, and 

state regulators.

The Council’s three statutory purposes are to: 

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace; 

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

Over the next year, the Council will continue to: monitor the financial system for emerging risks; 

facilitate interagency cooperation to identify and analyze emerging threats; and facilitate 

information sharing and interagency coordination with respect to various regulatory initiatives.

Over the last year, the Council continued to identify and monitor potential risks to U.S. financial 

stability; fulfilled its statutory requirements, including transmission of its ninth annual report to 

Congress; and served as a forum for coordination among member agencies. On December 4, 

2019, the Council issued final guidance regarding nonbank financial company designations. The 

guidance implements an activities-based approach for identifying and addressing potential risks 

to financial stability, and enhances the analytical rigor and transparency of the Council’s process 

for designating nonbank financial companies.

By law, the Council is required to convene no less than quarterly, but the Council has convened 

on a more frequent basis to share information on key financial developments, coordinate 

regulatory implementation, and monitor progress on recommendations from the Council’s annual 

reports. In FY 2019, the Council convened five times. The Council will continue to remain 

focused on identifying near-term threats and addressing structural vulnerabilities in the financial 
FSOC - 7

system. Transparency into Council work has routinely been provided through an annual report to 

Congress, periodic Congressional testimony on Council activities and emerging threats to 

financial stability, and regular communications with the public about Council activities and 

decisions. 

The Council is an executive agency and is not an office or bureau of the Department of the 

Treasury (Treasury). However, by law, the Council’s expenses (and, indirectly, FDIC 

reimbursements) are considered expenses of the Office of Financial Research, an office within 

Treasury.

B – Budget and Performance by Budget Activity

2.1.1 – Financial Stability Oversight Council Resources and Measures 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Financial Stability Oversight Council 

($6,138,000 from Assessments): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents, as well as individual Council member agencies’ performance 

documents, provide information to the public relevant to the Council’s performance. 

Information on the Council is provided on www.treasury.gov, www.fsoc.gov, and member 

agency websites to provide transparency and accountability.

2.1.2 – FDIC Reimbursement Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

FDIC Reimbursement 

($4,301,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of certain reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement to the Chairperson of the Council, who shall arrange for prompt reimbursement 

to the FDIC. FDIC expenses are for rule writing and resolution planning.

C – Changes in Performance Measures

FSOC has no changes in performance measures.

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Estimated Estimated

Appropriated Resources $6,236 $7,157 $5,655 $4,966 $5,246 $6,036 $6,138

$6,236 $7,157 $5,655 $4,966 $5,246 $6,036 $6,138

22 22 17 13 14 18 18

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Estimated Estimated

Appropriated Resources $7,628 $6,571 $5,126 $4,162 $4,301 $2,993 $4,301

$7,628 $6,571 $5,126 $4,162 $4,301 $2,993 $4,301

0 0 0 0 0 0 0

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
FSOC - 8

D – Evidence-Building Activity

To ensure all research, recommendations, and decisions of the Council are evidence-based, the 

Council routinely uses a variety of data sources obtained independently or in conjunction with 

the Office of Financial Research (OFR). These include commercially available products widely 

used throughout the financial services and markets, publically available data from U.S. federal 

and state agencies, international governments, trade associations, academic and public policy 

groups, and non-public data from financial regulatory agencies. At the direction of the Council, 

member agency staff may also produce original research and analysis on specific financial and 

economic topics.

Section III – Additional Information

A – Summary of Capital Investments

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

Treasury Franchise Fund 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021
TFF – 2

Table of Contents

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

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

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

1.1 – Resource Detail Table........................................................................................................ 4

1.2 – Budget Adjustments Table................................................................................................. 5

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

1.3 – Object Classification (Schedule O) Obligations................................................................ 8

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals............................................................................................................ 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 – Treasury Shared Services Program Resources and Measures ...................................... 10

Treasury Shared Services Programs Budget and Performance................................................. 10

2.1.2 – Centralized Treasury Administrative Services Resources and Measures..................... 11

Centralized Treasury Administrative Services Budget and Performance................................. 11

2.1.3 – Administrative Services Resources and Measures ....................................................... 12

Administrative Services Budget and Performance ................................................................... 12

2.1.4 – Information Technology Resources and Measures....................................................... 13

Information Technology Services Budget and Performance .................................................... 13

C – Changes in Performance Measures.................................................................................... 14

D – Evidence-Building Activity ............................................................................................... 14

Section III – Additional Information ........................................................................................ 15

A – Summary of Capital Investments....................................................................................... 15

B – Treasury Franchise Fund Program Costs........................................................................... 16

Appendix...................................................................................................................................... 21
TFF – 3

Section I – Budget Request

A – Mission Statement

To assist customer agencies in meeting their mission by providing responsive, customer-focused, 

cost-effective administrative and information technology support services.

B – Summary of the Request

The Treasury Franchise Fund (TFF) supports effective administrative and information 

technology services through commitment to service, efficient operations, openness to change, 

and values-based behavior. The TFF achieves cost savings, promotes economies of scale, and 

increases productivity and efficiency in the use of resources by shared service providers. 

The TFF providers include Departmental Offices’ Treasury Shared Services Programs (TSSP), 

Departmental Offices’ Centralized Treasury Administrative Services (CTAS), and the Bureau of 

the Fiscal Service’s Administrative Resource Center (ARC). TFF providers offer financial 

management, procurement, travel, human resources, information technology, and other 

administrative services to federal customers on a fully cost recoverable, fee-for-service basis. 

The TFF FY 2021 Congressional Budget Justification reflects revised estimates for FY 2020

along with funding requests for FY 2021. The revised estimates in FY 2020 include an increase 

operations and maintenance costs for ARC Administration (Admin) for administrative support 

services to support an expansion in the customer base. The FY 2020 revised estimates also

include an increase for the expansion of ARC Information Technology (IT) services to the 

support technology modernization implementation of an onpremise cloud environment, and 

increased investment in cybersecurity measures that will protect the National Critical Financial 

Infrastructure. 

The TFF FY 2021 budget submission will support the efforts in cybersecurity with transferred 

operations and maintenance from the Cybersecurity Enhancement Account (CEA) program to 

implement as a shared service provided to Treasury bureaus. FY 2021 initiatives in TSSP will 

increase efforts to support a strategic path-forward for a Treasury Enterprise-wide cloud solution, 

key systems modernizations and program support aimed at reducing redundant efforts by the 

bureaus. 

The FY 2021 budget submission will also support an increase in ARC Admin for operations and 

maintenance costs to address expected customer growth. ARC Admin will continue to increase 

the efficiency and quality of services while ensuring customer compliance with new or changes 

to federal requirements through initiatives such as G-Invoicing implementation, customer 

workflow, financial statement reconciliation automation, and Robotic Process Automation.
TFF – 4

1.1 – Resource Detail Table

Dollars in Thousands

Treasury Franchise Fund

Budgetary Resources

FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Revenue/O ffsetting Collections

Treasury Shared Services Programs $244,456 $274,017 $299,891 $25,874 9.44%

Centralized Treasury Administrative 

Services $141,207 $166,591 $162,262 ($4,329) -2.60%

Administrative Support Services $167,613 $176,521 $190,172 $13,651 7.73%

Information Technology Services $179,603 $212,481 $216,996 $4,515 2.12%

Recoveries from Prior Years $8,002 $24,123 $24,016 ($107) -0.44%

Unobligated Balances from Prior Years $196,219 $209,795 $233,918 $24,123 11.50%

Total Revenue/O ffsetting Collections $937,100 $1,063,528 $1,127,255 $63,727 5.99%

Expenses/O bligations

Treasury Shared Services Programs 225 $240,925 260 $274,017 269 $299,891 9 $25,874 3.46% 9.44%

Centralized Treasury Administrative 

Services 196 $136,565 201 $166,591 197 $162,262 (4) ($4,329) -1.99% -2.60%

Administrative Support Services 898 $170,184 1,077 $176,521 1,142 $190,172 65 $13,651 6.04% 7.73%

Information Technology Services 488 $179,631 504 $212,481 504 $216,996 0 $4,515 0.00% 2.12%

Total Expenses/O bligations 1,807 $727,305 2,042 $829,610 2,112 869,321 70 $39,711 3.43% 4.79%

Net Results $209,795 $233,918 $257,934 $24,016 10.27%

FY 2019 FY 2020 FY 2021

Actual Estimate Estimate $ Change

FY 2020 to FY 2021

% Change
TFF – 5

1.2 – Budget Adjustments Table

Dollars in Thousands

Treasury Franchise Fund FTE Amount

FY 2020 Original Estimate 2,023 $801,114 

 Adjustments to FY 2020 19 $28,496 

 Increased Customer Base (ARC Admin/IT) 19 $28,496 

FY 2020 Revised Estimate 2,042 $829,610 

Changes to Base:

 Adjustment to Base

Continuous Diagnostic and Mitigation (CDM) Licenses Phase I and II ($10,000)

Maintaining Current Levels (MCLs): $17,696 

 Pay Annualization (2020 3.1% average pay raise) $1,956 

 Pay Raise (1.0% average pay raise) $1,907 

FERS Contribution Increase $2,288 

Non-Pay $11,545 

Subtotal Changes to Base 0 $7,696 

Total FY 2021 Current Services 2,042 $837,306 

Program Changes:

Program Increases: 74 $39,810 

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (TSSP) 0 1,222 

Treasury Enterprise-wide Cloud Infrastructure (TSSP) 3 3,153 

Systems Modernization and Program Support (TSSP) 2 $5,909 

Realignment of CTAS Programs to TSSP (TSSP) 4 $7,795 

Customer Growth (ARC Admin) 65 $9,631 

Continuous Diagnostic and Mitigation (CDM) Licenses Phase I and II 0 $12,100 

Program Decreases: (4) ($7,795)

Realignment of CTAS Programs to TSSP (CTAS) (4) ($7,795)

Subtotal Changes to Base 70 $32,015 

FY 2021 Estimate 2,112 $869,321 

C – Budget Increases and Decreases Description

FY 2020 Adjustments ........................................................ +$28,496,000/ +19 FTE

Increased Customer Base (ARC Admin/IT) +$28,496,000 / +19 FTE 

Increased customer base for ARC Administrative support with five agencies resulting in program 

increases of $5,986,000 for operations and maintenance costs, and provides cost sharing and 

avoidance opportunities for both new and current agencies. Additional increases of $22,510,000 

for ARC IT will support technology modernization, implementation of an on premise cloud 

environment, and increased investment in cybersecurity measures that will protect the National 

Critical Financial Infrastructure. 
TFF – 6

FY 2021 Changes to Base...........................................................-$10,000,000/ -0 FTE

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP), -$10,000,000 / -0 FTE

In accordance with Office of Management and Budget (OMB) Memorandum 20-04, this 

reduction from the base budget will enable the TFF to show a specific line item increase in FY 

2021 for the estimated costs for the Continuous Diagnostic and Mitigation (CDM) licenses. 

Maintaining Current Levels (MCLs) ......................................................+$17,696,000 / +0 FTE

Pay Annualization (3.1%) +$1,956,000 / +0 FTE:

Funds are required for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$1,907,000 / +0 FTE:

Funds are required for a 1.0% average pay raise in January 2021.

FERS Contribution Increase +$2,288,000 / +0 FTE

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$11,545,000 / +0 FTE

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.

Program Increases ..................................................................................+$39,810,000 / +74 FTE

Cybersecurity Enhancement Account (CEA) Operations and Maintenance (O&M) (TSSP) 

+$1,222,000 / +0 FTE

Treasury requires an increase to TSSP by $1,222,000 to transition additional operations and 

maintenance costs from CEA to TSSP. Treasury uses the CEA account to fund new investment 

to enhance enterprise protections against cyber threats. Once the new functionality is built, 

ongoing O&M is funded by customers through the Franchise Fund. Total CEA O&M in FY 

2021 is $10,100,000, this includes a base level of $8,821,000 that was transferred to TSSP in FY 

2020 plus the requested increase. The FY 2021 increase will support the operations and 

maintenance costs for the Fiscal Service Trusted Internet Connection (TIC). 

Treasury Enterprise-wide Cloud Infrastructure (TSSP) +$3,153,000 / +3 FTE

Treasury requires an increase to TSSP by $3,153,000 to support the expansion of the Workplace 

Community Cloud (WC2) to consolidate Treasury-wide cloud services into an enterprise-wide 

solution. 

Systems Modernization and Program Support (TSSP) +$5,909,000 / +2 FTE

Treasury requires an additional $5,909,000 to fund capital expenditures for platform upgrades, 

technical refreshes and expanded support for new system capabilities such as the Freedom of 

Information Act (FOIA) system replacement, Single-Sign and robust dashboard reporting tools. 

The additional staff will provide support for the implementation of the Secretary’s strategic 

priorities and the President’s Management Agenda. The additional staff will also manage new 

statutory responsibilities such as the Program Management Improvement Accountability Act 

(PMIAA) and Title I of the Foundations in Evidence-based Policy (FEBP) Making Act.
TFF – 7

Realignment of Centralized Treasury Administrative Services (CTAS) to Treasury Shared 

Services Programs (TSSP) +$7,795,000 / +4 FTE

The Treasury Secured Data Network (TSDN) and Communication Security (COMSEC) 

programs will be realigned from CTAS to TSSP. The shift will result in a more efficient 

approach to program budget formulation and executing customers billing by consolidating these 

programs into TSSP. The shift has a net neutral effect on FTEs and budgetary resources for the 

TFF.

Customer Growth (ARC Admin) +$9,631,000 / +65 FTE

Increase reflects operations and maintenance costs, and provides cost sharing and avoidance 

opportunities for both the new and current agencies supported by ARC. In FY 2019, ARC 

expanded services with FinCEN and supported shared services transitions with five agencies:

• Corporation for National and Community Service

• Office of Personnel Management

• Federal Mediation and Conciliation Service

• Federal Trade Commission

• U.S. Tax Court

Continuous Diagnostic and Mitigation (CDM) Licenses (TSSP) +$12,100,000 / +0 FTE

The FY 2021 estimated costs for the Continuous Diagnostic and Mitigation (CDM) licenses is

$12,100,000 for both Phase I ($5,700,000) and Phase II ($6,400,000). These licenses are 

provided by the Department of Homeland Security with the costs allocated to the Treasury 

bureaus through the TSSP. The CDM Program enhances the overall security posture of the 

Federal Government by providing Federal agencies with capabilities to monitor vulnerabilities 

and threats to their networks in near real-time. This increased situational awareness allows 

agencies to prioritize actions to mitigate or accept cybersecurity risks based on an understanding 

of the potential impacts to their mission.

Program Decreases .............................................................................-$7,795,000 / -4 FTE 

Realignment of Centralized Treasury Administrative Services (CTAS) to Treasury Shared 

Services Programs (TSSP) -$7,795,000 / -4 FTE

The TFF will realign the Treasury Secured Data Network (TSDN) and Communication Security 

(COMSEC) programs from CTAS to TSSP. The shift has a net neutral effect on FTEs and 

budgetary resources for the TFF. 
TFF – 8

1.3 – Object Classification (Schedule O) Obligations

D – Appropriations Language and Explanation of Changes

The TFF receives no annually appropriated resources from Congress.

E – Legislative Proposals

The TFF does not have legislative proposals.

Dollars in Thousands

Treasury Franchise Fund FY 2019 FY 2020 FY 2021

O bject Classification Actual Estimate Estimate

O bligations O bligations O bligations

11.1 - Full-time permanent 163,821 177,013 187,097

11.3 - Other than full-time permanent 928 926 965

11.5 - Other personnel compensation 5,851 2,794 2,866

11.6 - Overtime 271 2,843 3,004

11.9 - Personnel Compensation (Total) 170,871 183,576 193,931

12.0 - Personnel benefits 57,195 68,789 73,043

Total Personnel and Compensation Benefits $228,066 $252,365 $266,974

21.0 - Travel and transportation of persons 1,506 1,523 1,586

22.0 - Transportation of things 81 43 43

23.1 - Rental payments to GSA 34,430 37,461 37,461

23.2 - Rental payments to others 53 320 324

23.3 - Communication, utilities, and miscellaneous charges 70,929 79,287 86,626

24.0 - Printing and reproduction 159 369 369

25.1 - Advisory and assistance services 113,683 120,304 125,613

25.2 - Other services from non-Federal sources 15,272 16,161 16,875

25.3 - Other goods and services from Federal sources 133,829 141,622 149,973

25.4 - Operation and maintenance of facilities 1 42 42

25.7 - Operation and maintenance of equipment 80,378 104,729 107,444

26.0 - Supplies and materials 4,889 3,864 3,893

31.0 - Equipment 36,865 59,499 60,077

32.0 - Land and structures 7,165 12,021 12,021

Total Non-Personnel 499,240 577,245 602,347

Total O bligations $727,306 $829,610 $869,321

Full-time Equivalents (FTE) 1,807 2,042 2,112
TFF – 9

Section II – Annual Performance Plan and Report

A – Strategic Alignment

Alignment with the Treasury Strategic Plan:

The Treasury Franchise Fund aligns to the following Treasury strategic goals and objectives as 

presented in the FY 2018 - 2022 strategic plan:

Goal 4: Transform Government-wide Financial Stewardship

• Objective 4.3 – Federal Financial Performance – Improve federal financial management 

performance using innovative practices to support effective government.

Goal 5: Achieve Operational Excellence

• Objective 5.1 – Workforce Management – Foster a culture of innovation to hire, engage, 

develop, and optimize a diverse workforce with the competencies necessary to 

accomplish our mission.

• Objective 5.2 – Treasury Infrastructure – Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure.

• Objective 5.3 – Customer Value – Improve customer value by increasing the quality and 

lowering the cost of Treasury’s products and services.

The TFF is well positioned in FY 2021 to be a key federal resource. In direct alignment with the 

President’s Management Agenda (PMA) Cross-Agency Priority (CAP) Goal 5- Share Quality 

Services, the TFF service providers aim to enhance federal mission effectiveness through 

increased use of cloud-based solutions, reduce cybersecurity risks, and build a modern 

Information Technology (IT) workforce. The TFF emphasizes this through a standardized “build 

once, use many” service model with a focus on providing economies of scale enabling agencies 

to concentrate on mission critical activities. 

TFF continues to set the benchmark for federal mission support services and is committed to: 

• Customer satisfaction

• Streamlining processes

• Implementing innovative and customer centric solutions

TFF also supports the President's Management Agenda by investing in a 21st Century workforce 

through:

• Developing an enterprise IT workforce transformation plan that includes an IT recruiting 

and training roadmap that enables evolution as technology trends change.

• Training staff on the latest technologies and methods; and

• Hiring adaptable technologists who are trained on industry-proven IT tools, and who 

have a passion for modernizing and securing the IT infrastructure of our government.
TFF – 10

B – Budget and Performance by Budget Activity

2.1.1 – Treasury Shared Services Program Resources and Measures

Dollars in Thousands

 Resource Level FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual TBD Request

Expenses/Obligations 225,024 229,070 235,811 241,845 235,515 274,017 299,891 

Budget Activity Total $225,024 $229,070 $235,811 $241,845 $235,515 $274,017 $299,891 

Full-tim Equivalents (FTE) 251 228 235 234 225 260 269 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Target Actual Target Target

Average Cost per FTE N/A N/A N/A N/A 1,383.0 1,463.5 1,460.0 1,580.3

Annual Effective Spend 

Rate N/A N/A N/A N/A 96.0 97.1 96.0 96.0

Customer Satisfaction N/A N/A N/A N/A B 75 80 80

Key: Disc - B - Baseline

Treasury Shared Services Programs Budget and Performance

($299,891,000 from offsetting collections):

Treasury Shared Services Programs (TSSP) provides administrative and information technology 

services on a competitive basis, and also delivers outstanding customer service. TSSP supports 

the goals and objectives for the current Treasury Strategic Plan by allowing customers to 

maximize their operations support resources and the benefit from centralized approaches to 

program support and administration.

Description of Performance:

In FY 2019, TSSP decreased the number of performance measures used in order to focus on 

measures that specifically gauge customer satisfaction and the value proposition of the services 

provided. TSSP finalized the following measures:

Average Cost per FTE

Annual Effective Spend Rate

Customer Satisfaction (baselined in FY 2019)

In order to provide greater transparency into the value proposition of shared services, TSSP 

established the average cost per FTE and annual effective spend rate measures. As agencies 

budgets shrink, it becomes increasingly important to demonstrate clear insight into the current 

cost of shared services and to assess the cost efficiency benefits of the shared approach. 

The annual effective spend rate speaks to the financial management and oversight of the 

program. It gives insight into the how much of the resources collected from customers are being 

obligated for service delivery in the fiscal year. This measure speaks to the efficient use of 

resources by the service providers. In FY 2019, 97 percent of the funds collected from customers 

for the shared services was obligated which was above the 96 percent target rate set for the fiscal 

year. The target will remain at 96 percent for FY 2020 and FY 2021.
TFF – 11

In FY 2019, the survey results yielded a 75 percent overall customer satisfaction rating for

services provided through the TSSP. The target for this measure is set at 80 percent for both FY 

2020 and 2021. Planned efforts to achieve this higher rating for customer satisfaction going 

forward will focus on identifying more opportunities for customer engagement and improved

customer feedback mechanisms.

2.1.2 – Centralized Treasury Administrative Services Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Centralized Treasury Administrative Services Budget and Performance

($162,262,000 from offsetting collections):

The Centralized Treasury Administrative Services (CTAS) program provides administrative 

support to offices within Treasury’s Departmental Offices. This support includes administrative 

functions such as financial management, travel, human resources, information technology, and 

facilities management. The programs formerly residing under DO SE fully transitioned to TFF

in FY 2019. 

 

Description of Performance:

FY 2019 was the first year of inclusion CTAS program into the TFF. CTAS has identified the 

following performance measures in FY 2019:

• Annual Effective Spend Rate 

• Customer Satisfaction

In FY 2019, the annual effective spend rate was 98 percent, which was above the set target rate 

of 96 percent. The customer satisfaction rate was baselined in FY 2019. Results from a survey 

released in FY 2020, garnered a 75 percent satisfaction rating for the overall program. 

The targets set for the annual effective spend rate and customer satisfaction measures are

mirrored after the TSSP target to maintain consistency in overall financial management of the 

two shared services providers within Departmental Offices. The targets set in both FY 2020 and 

2021 is 96 and 80 percent, for the annual effective spend rate and customer satisfaction measures

respectively.

Dollars in Thousands

 Resource Level FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual TBD Request

Expenses/Obligations NA NA NA NA 136,565 166,591 162,262

Budget Activity Total $0 $0 $0 $0 $136,565 $166,591 $166,591

Full-tim Equivalents (FTE) NA NA NA NA 196 201 197

Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Actual Target Target

Annual Effective Spend Rate N/A N/A N/A N/A N/A 96.0 97.8 96.0 96.0

Customer Satisfaction N/A N/A N/A N/A N/A B 75 80 80

Key: Disc - B - Baseline
TFF – 12

2.1.3 – Administrative Services Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Administrative Services Budget and Performance

($190,172,000 from offsetting collections): 

ARC Admin is directly aligned with the Administration’s CAP Goal 5 and supports OMB’s 

Reform Plan and the Department of the Treasury’s shared services initiatives. As a critical 

strategic partner to OMB and Treasury, ARC Admin supports:

the Financial Management Line of Business, designated Federal Shared Services Provider by 

OMB,

the Budget Formulation and Execution Line of Business, designated Federal Shared Service 

Provider by OMB, and

Treasury's Human Resources Line of Business.

ARC Admin’s services allow agencies to focus on missions and avoid redundancies within 

administrative operations creating cost avoidance across government, including $113,400,000 in 

FY 2019 as reported in the Treasury Future of Federal Financial Management Vision progress 

statement.

Description of Performance:

In FY 2019, ARC Admin met the unmodified audit opinion and customer satisfaction measures, 

but fell short of the target for the percentage of service level agreement performance metrics met 

or exceeded. The shortfall was largely due to challenges managing workloads through periods of 

significant staff turnover. ARC continues to work with customer agencies to understand the 

changes thereby enabling them to align resources to support the demand. The following bullets 

highlight the Admin performance in FY 2019:

Expanded, improved, and implemented services and new requirements in support of current and 

future customers.

Completed upgrades to the core financial management system (Oracle) and fully integrated 

acquisition system; Procurement Information System for Management (PRISM).

Transitioned to SP3 credit card solution.

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual TBD Request

Expenses/Obligations $146,282 $156,869 $157,284 $150,876 $170,184 $176,521 $190,172

$146,282 $156,869 $157,284 $150,876 $170,184 $176,521 $190,172

936 988 957 937 898 1,077 1,142

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measure Actual Actual Actual Actual Actual Target Target Target 

Customer Unmodified Audit Opinions [%] NA NA NA 100 100 100 100 100

Percentage of shared services service level 

agreement performance metrics met or 

exceeded [%]

NA NA NA NA 89 94 94 94

Customer Satisfaction with ARC Admin 

Services [%]

NA NA NA NA TBD B 80 80

Key: B - Baseline; TBD - To Be Determined

Note: Results from customer sastisfation survey are expected to be completed by end of Q2 in FY2020.

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
TFF – 13

In FY 2020 and FY 2021, Admin Services is committed to meeting or exceeding service metrics, 

and continuing efforts to improve efficiency and effectiveness. These efforts are demonstrated 

through upgrades to the Oracle E-Business Suite and other support systems, deployment of 

business intelligence/data analytics and accounting reconciliation and financial statement 

solutions as well as, customer workflow solutions to improve efficiency and ARC customer 

experience.

2.1.4 – Information Technology Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Information Technology Services Budget and Performance 

($216,996,000 from offsetting collections):

ARC Information Technology Services (ARC IT) provides shared services to a variety of federal 

customers. Value is provided through consolidated IT infrastructures and standardized IT service 

delivery in a modern, technically innovative, and secure environment. 

ARC IT has embarked on a technology modernization initiative that will span several years to 

leverage an enterprise level Micro-services strategy that aligns business functions and 

capabilities. This approach will help rationalize the IT footprint, increase resiliency, reduce cyber 

vulnerabilities, and reduce overall IT costs. Additionally, this approach will result in better 

evaluation of IT costs and the level of service required to deliver value-added business solutions; 

more accurate IT portfolio performance measures; and ability to meet business requirements in 

an agile manner. Fiscal Service’s objective is to use services and capabilities that are portable, 

reusable, scalable, and resilient, with the additional capability for automated deployment. The 

following actions are planned in FY 2020:

Expand the strategies established under the Cloud Sprint Teams [Leverage expert analysis where 

needed]

Establish Cloud Orchestration & Automation Toolsets

Begin building Micro-services

Phase 3 (Modernization Roadmap) Complete the IT Modernization Plan with outputs of:

Decision Guide (“Fit” Tool)

Assessment Outcomes

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual TBD Request

Expenses/Obligations $162,895 $192,877 $195,441 $194,952 $179,631 $212,481 $216,996

$162,895 $192,877 $195,441 $194,952 $179,631 $212,481 $216,996

459 499 493 476 488 504 504

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Measure Actual Actual Actual Actual Actual Target Target Target 

Fiscal IT Hosting – Percentage of Time Service 

is Operational (Uptime Excluding Planned 

Maintenance)

N/A 99.8 99.2 99.8 99.9 99.0 99.0 99.0

Number of engagements in strategic sourcing, 

to include new IT customers, new scope of 

work for existing customers, or new FITARA 

compliant contracts available beyond Fiscal 

Service [#]

N/A 1.0 2.0 1.0 1.0 0.0 2.0 2.0

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
TFF – 14

Target State Architecture/Capability Needs Roadmap 

Description of Performance:

In FY 2019, ARC IT exceeded the hosting performance measure target, but did not achieve the 

target for number of engagements in strategic sourcing and achieve increased service levels. The 

following bullets highlight the IT performance in FY 2019: 

Fiscal IT Hosting – In FY 2019, IT Services consistently exceeded the 99.0 percent infrastructure 

uptime target with a rating of 99.9 percent. Service value is achieved through cost effective 

hosting services and responsive, value-added support and customer service.

Number of engagements for strategic sourcing – This metric is defined as new work (Hosting, 

Security Services, Software Engineering, etc.) outside of the current scope for existing customers 

or establishment of a contract vehicle for Treasury or Government wide use. IT did not on-board 

new work or sponsor a crosscutting contract in FY 2019 due to increased priority to other key 

initiatives including IT modernization planning. ARC IT is currently on track to meet this target 

in FY 2020. 

In FY 2020 and FY 2021, the IT service line performance measures are aligned with Treasury’s 

IT strategy and the PMA, but also of most significance to its customers supported. IT has a long 

history of maintaining a high standard of hosting availability (99 percent), which reflects the 

commitment to minimize technology and cybersecurity risks though a highly skilled workforce 

and covering a 24/7 operation. In addition, IT will continue to emphasize and measure 

performance in executing IT acquisition strategies that leverage procurement awards that 

maximize federal buying power to reduce costs

C – Changes in Performance Measures

The TFF has no changes to any performance measures from the previous year President’s 

Budget.

D – Evidence-Building Activity

As the shared services landscape evolves and expands to support the widening needs across the 

federal government, the TFF shifts to evidence based decision making for the management and 

oversight of the services provided. Using the policy analysis approach, the TFF issued a 

customer satisfaction survey for FY 2019 to a wide range of customers both internal and 

external. The TFF worked with the Office of Strategic Planning and Performance Improvements 

to develop a well-rounded survey tool that would give customers the opportunity to provide 

detailed feedback. Overall feedback was positive, the TFF receiving a 75 percent satisfaction 

rating (average is based on results from TSSP and CTAS FY 2019 surveys).

The feedback received from the survey will give much needed insight that can be used by fund’s 

oversight body of the TFF to have more substantive conversations with service providers to 

focus on the following:

• Transparency efforts

• Customer engagement efforts

• Optimal service delivery model

The TFF will continue to pursue the use of evidence and data necessary to make critical 

decisions about program operations, policies and the overall management of the shared services 

programs.
TFF – 15

Section III – Additional Information

A – Summary of Capital Investments

The TFF’s planned investments enhance the capabilities and capacity of our financial 

management shared services. Investing in service oriented architecture will allow customers to 

streamline application connections resulting in benefits that include reducing development time, 

using industry development best practices for coding efforts, allowing real time processing of 

transactional data between systems, and independent communication between systems. This 

effort will also reduce redundancy, providing more flexible and efficient interfaces with 

customers' third-party applications. 

The TFF plans to expand the use of an enterprise-wide financial statement reporting tool and 

update operational (transactional) reporting and analytical tools in order to provide a more 

efficient interpretation of large volumes of data, long-term stability, and improved presentation 

and distribution capabilities.

A summary of capital investment resources, including major information technology and nontechnology investments can be found at: https://www.treasury.gov/about/budgetperformance/Pages/summary-of-capital-investments.aspx. This website also contains a digital 

copy of this document. The Administrative Resource Center capital investments are contained 

within the Fiscal Service capital investment summary. The Treasury Shared Service Programs 

capital investments are contained within the Departmental Offices capital investment summary.
TFF – 16

B – Treasury Franchise Fund Program Costs

This information is provided to fulfill requirements of Section 122 of the FY 2020 Financial 

Services and General Government appropriations bill.

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2019 Total Charges 

by Customer

FY 2019 TSSP Customers

Enterprise Business 

Solutions

Infrastructure 

Operations Cybersecurity

IT Strategy and 

Technology 

Management

Non-Information 

Technology Services Total

Alcohol Tobacco Tax and Trade Bureau $ 198,888.45 $ 610,584.28 $ 111,391.80 $ 15,879.52 $ 507,719.18 $ 1,444,463.23 

Bureau of Printing and Engraving $ 678,496.05 $ 4,218,556.71 $ 308,808.02 $ 56,576.53 $ 1,220,478.51 $ 6,482,915.83 

Bureau of the Fiscal Service $ 2,026,974.51 $ 671,246.91 $ 489,082.72 $ 65,115.23 $ 2,114,929.55 $ 5,367,348.91 

Consumer Financial Protection $ 917,582.44 $ - $ - $ - $ 186,283.21 $ 1,103,865.65 

DHS - Immigration & Customs Enforcement $ - $ - $ - $ - $ 71,537.17 $ 71,537.17 

DHS Office of Inspector General $ - $ - $ - $ - $ 8,766.74 $ 8,766.74 

DHS Customs and Immigration Service $ - $ - $ - $ - $ 41,017.83 $ 41,017.83 

DHS Headquarters $ - $ - $ - $ - $ 108,970.78 $ 108,970.78 

DHS U.S. Secret Service $ 1,313,538.51 $ - $ - $ - $ 56,937.49 $ 1,370,476.00 

Community Development Financial Institutions Fund $ 302,731.40 $ 20,846.85 $ 9,919.49 $ 2,365.03 $ 142,289.44 $ 478,152.22 

DC Pensions $ 25,124.95 $ 125,176.91 $ 2,834.14 $ 675.72 $ 71,551.71 $ 225,363.43 

Federal Financing Bank $ 1,640,795.65 $ 143,732.41 $ 4,380.04 $ 1,044.30 $ 94,707.70 $ 1,884,660.09 

Financial Stability Oversight Council $ 332,618.89 $ 67,944.71 $ 2,318.84 $ 552.87 $ 111,463.38 $ 514,898.68 

Treasury Office of Financial Research $ 253,907.51 $ 6,200,202.76 $ 396,998.99 $ 5,836.95 $ 419,854.24 $ 7,276,800.45 

Treasury Office of Financial Stability $ 1,264,585.37 $ 303,321.25 $ 4,380.04 $ 1,044.30 $ 243,002.13 $ 1,816,333.09 

Treasury Office of Technical Assistance $ 15,456.50 $ 68,863.90 $ 1,545.89 $ 368.58 $ 175,616.80 $ 261,851.67 

Small Business Lending Fund Administration $ 3,117.30 $ 25,464.32 $ 1,030.60 $ 245.72 $ 53,549.62 $ 83,407.55 

Treasury Departmental Offices $ 9,847,801.29 $ 5,662,580.33 $ 459,172.43 $ 43,399.91 $ 5,188,379.19 $ 21,201,333.15 

State Small Business Credit Initiative Administration $ - $ - $ - $ - $ 3,539.67 $ 3,539.67 

Treasury Executive Office of Asset Forfeiture $ 2,508,685.48 $ 168,495.30 $ 3,755.43 $ 798.58 $ 155,120.49 $ 2,836,855.28 

Treasury Terrorism Risk Insurance Program $ 1,818.34 $ 28,647.41 $ 1,159.42 $ 276.43 $ 47,309.65 $ 79,211.25 

Department of Commerce $ 9,682,765.35 $ - $ - $ - $ 396,334.00 $ 10,079,099.35 

DOC - National Oceanic & Atmosphere Administration $ - $ - $ - $ - $ 24,481.99 $ 24,481.99 

DOC - International Trade Administration $ - $ - $ - $ - $ 19,826.59 $ 19,826.59 

DOD - U.S. Air Force $ - $ - $ - $ - $ 160,286.82 $ 160,286.82 

Department of Energy $ - $ - $ - $ - $ 4,157.37 $ 4,157.37 

Department of Interior $ 92,711.36 $ - $ - $ - $ 3,660.31 $ 96,371.67 

DOJ - Drug Enforcement Agency $ - $ - $ - $ - $ 52,379.07 $ 52,379.07 

DOJ - Executive Office of Immigration Review $ - $ - $ - $ - $ 15,597.90 $ 15,597.90 

DOJ - U.S. Marshal Service $ - $ - $ - $ - $ 28,991.79 $ 28,991.79 

DOJ Alcohol Tobacco Firearms and Explosives $ 1,002,235.57 $ - $ - $ - $ 92,565.30 $ 1,094,800.87 

Department of Labor $ 3,133,757.49 $ - $ - $ - $ 201,875.83 $ 3,335,633.32 

DOL - Bureau of Labor Statistics $ - $ - $ - $ - $ 17,010.11 $ 17,010.11 

DOL - Office of the Inspector General $ - $ - $ - $ - $ 7,061.09 $ 7,061.09 

Department of State $ - $ - $ - $ - $ 136,060.89 $ 136,060.89 

DOT- Federal Transit Agency $ - $ - $ - $ - $ 13,416.08 $ 13,416.08 

Department of Education $ - $ - $ - $ - $ 62,685.01 $ 62,685.01 

Export Import Bank-Office of the Inspector General $ - $ - $ - $ - $ 2,824.44 $ 2,824.44 

Environmental Protection Agency $ - $ - $ - $ - $ 16,481.85 $ 16,481.85 

Farm Credit Administration $ - $ - $ - $ - $ (912.56) $ (912.56)

Federal Communications Commission $ 44,909.50 $ - $ - $ - $ 1,727.70 $ 46,637.20 

Federal Deposit Insurance Corporation $ 96,000.00 $ - $ - $ - $ 3,355.86 $ 99,355.86 

Federal Deposit Insurance Corporation -Office of the Inspector 

General $ - $ - $ - $ - $ 253.96 $ 253.96 

Federal Emergency Management Agency $ 204,509.55 $ - $ - $ - $ 69,865.78 $ 274,375.33 

Federal Housing Finance Agency $ - $ - $ - $ - $ 35,305.47 $ 35,305.47 

Financial Crimes Enforcement Network $ 115,100.05 $ 1,252,991.08 $ 95,139.70 $ 9,367.99 $ 340,185.50 $ 1,812,784.32 

Federal Reserve Board $ - $ - $ - $ - $ 2,824.44 $ 2,824.44 

Government Accountability Office $ 582,780.16 $ - $ - $ - $ 23,575.07 $ 606,355.23 

General Service Administration $ - $ - $ - $ - $ 68,286.88 $ 68,286.88 

HHS - Agency for Healthcare Research and Quality $ - $ - $ - $ - $ 2,760.95 $ 2,760.95 

Housing and Urban Development $ 2,946,256.81 $ - $ - $ - $ 211,196.68 $ 3,157,453.49 

HUD - Office of Inspector General $ 60,804.04 $ - $ - $ - $ 3,214.74 $ 64,018.78 

Internal Revenue Service $ 34,684,067.64 $ 69,875,511.74 $ 9,815,932.57 $ 2,300,656.20 $ 29,368,383.43 $ 146,044,551.57 

Millennium Challenge Corporation $ - $ - $ - $ - $ 23,041.83 $ 23,041.83 

U.S. Mint $ 989,116.05 $ 1,889,234.46 $ 265,814.46 $ 52,368.62 $ 1,315,642.73 $ 4,512,176.31 

National Records and Archives Administration $ - $ - $ - $ - $ 27,474.78 $ 27,474.78 

National Transportation Safety Board $ - $ - $ - $ - $ 9,117.62 $ 9,117.62 

Office of the Comptroller of the Currency $ 1,466,189.70 $ 1,213,369.04 $ 1,050,437.76 $ 121,169.61 $ 1,945,990.81 $ 5,797,156.92 
TFF – 17

Treasury Franchise Fund – Treasury Shared Services Programs, FY 2019 Total Charges 

by Customer (continued)

FY 2019 TSSP Customers

Enterprise Business 

Solutions

Infrastructure 

Operations Cybersecurity

IT Strategy and 

Technology 

Management

Non-Information 

Technology Services Total

Office of Government Ethics $ - $ - $ - $ - $ 2,856.18 $ 2,856.18 

Treasury Office of Inspector General $ 148,123.37 $ 399,478.85 $ 23,743.91 $ 5,528.65 $ 207,664.59 $ 784,539.37 

Overseas Private Investment Corporation $ - $ - $ - $ - $ 12,709.97 $ 12,709.97 

Peace Corps $ 119,143.12 $ - $ - $ - $ 4,593.12 $ 123,736.24 

Small Business Administration $ 366,663.13 $ - $ - $ - $ 44,863.36 $ 411,526.49 

Special Inspector General for TARP $ 193,216.95 $ 958,582.49 $ 10,225.49 $ 4,300.06 $ 211,790.01 $ 1,378,115.00 

National Gallery of Art $ - $ - $ - $ - $ 16,946.62 $ 16,946.62 

TFF - Administrative Resources Center $ 1,755,848.19 $ 2,878,378.15 $ 349,646.93 $ 46,532.82 $ 770,046.16 $ 5,800,452.24 

Treasury Inspector General for Tax Administration $ 514,558.06 $ 2,295,768.78 $ 113,283.98 $ 24,633.21 $ 593,989.80 $ 3,542,233.84 

USAID $ 1,882,403.10 $ - $ - $ - $ 46,235.58 $ 1,928,638.68 

Veterans Affairs $ - $ - $ - $ - $ 42,493.54 $ 42,493.54 

Total $81,413,281.83 $99,078,978.66 $13,521,002.63 $2,758,736.85 $47,684,201.48 $244,456,201.45 
TFF – 18

Treasury Franchise Fund – Centralized Treasury Administrative Services Programs, FY 

2019 Total Charges by Customer

FY 2019 CTAS Customers

Information 

Technology Services

Treasury Facilities 

and Operations 

Services

Financial 

Management Services

Budget and Travel 

Services

Human Resources 

Services

Privacy, Transparency 

and Records Services

Other Administrative 

Services Total

Bureau of the Fiscal Service $ 210,116.00 $ - $ - $ - $ - $ - $ 2,016.94 $ 212,132.94 

Consumer Financial Protection $ 24,765.70 $ 943,536.54 $ - $ - $ - $ - $ 43,924.37 $ 1,012,226.61 

Community Development Financial Institutions Fund $ 51,645.42 $ 1,398,671.70 $ 922,550.68 $ 107,261.77 $ 78,172.63 $ - $ 43,924.37 $ 2,602,226.56 

DC Pensions $ 486,623.33 $ 643,023.89 $ - $ 173,489.20 $ - $ - $ 21,962.18 $ 1,325,098.61 

Federal Financing Bank $ 2,918,122.68 $ 827,754.01 $ - $ 64,749.02 $ - $ - $ 59,611.64 $ 3,870,237.35 

Financial Stability Oversight Council $ 191,393.00 $ 260,735.48 $ - $ 193,996.66 $ - $ - $ 10,981.09 $ 657,106.23 

Treasury Office of Financial Research $ 92,573.44 $ 4,583,825.39 $ - $ 2,222,863.98 $ 677,839.66 $ - $ 138,048.01 $ 7,715,150.49 

Treasury Office of Financial Stability $ 845,187.04 $ 1,473,349.63 $ 856,275.80 $ 462,845.73 $ 82,823.55 $ 359,953.96 $ 84,263.07 $ 4,164,698.78 

Treasury Office of Technical Assistance $ 47,869.40 $ 637,253.27 $ - $ 2,371,109.71 $ - $ - $ 49,078.76 $ 3,105,311.13 

Small Business Lending Fund Administration $ 128,850.32 $ 153,960.12 $ 411,599.78 $ 62,259.80 $ - $ - $ 14,566.75 $ 771,236.77 

Treasury Departmental Offices $ 31,192,076.87 $ 24,583,968.42 $ 1,603,000.00 $ 14,386,473.30 $ 3,140,412.00 $ 2,921,766.00 $ 1,169,598.33 $ 78,997,294.93 

Treasury Executive Office of Asset Forfeiture $ 786,709.08 $ 9,906,341.13 $ - $ 1,964,704.00 $ - $ - $ 209,313.06 $ 12,867,067.27 

Treasury Terrorism Risk Insurance Program $ 57,865.64 $ 29,042.32 $ - $ 34,053.70 $ - $ - $ 2,241.04 $ 123,202.70 

DOC - National Oceanic & Atmosphere Administration $ 724.00 $ 140.49 $ 10,791.41 $ - $ - $ - $ 224.10 $ 11,880.00 

DOD - Defense Security Cooperation Agency $ - $ - $ 112,912.13 $ - $ - $ - $ 3,809.77 $ 116,721.90 

Department of Interior $ - $ - $ 22,562.56 $ - $ - $ - $ - $ 22,562.56 

DOS - South and Central Asian Affairs $ 9,653.35 $ 1,844.70 $ - $ - $ - $ - $ 224.10 $ 11,722.16 

DOT - Build American Bureau $ - $ - $ 117,843.09 $ - $ - $ - $ 1,792.83 $ 119,635.92 

Department of Education $ 18,582.70 $ 3,548.92 $ 424,800.62 $ - $ - $ - $ 8,067.74 $ 454,999.98 

Farm Credit Administration $ - $ - $ 123,137.04 $ - $ - $ - $ 4,925.48 $ 128,062.52 

Financial Crimes Enforcement Network $ - $ 2,435,815.36 $ - $ - $ - $ - $ 41,683.33 $ 2,477,498.68 

HHS - Centers for Medicare & Medicaid Services $ 8,688.01 $ 1,660.23 $ 220,618.21 $ - $ - $ - $ 4,033.87 $ 235,000.33 

HUD - Public & Indian Housing $ - $ - $ 59,634.16 $ - $ - $ - $ 1,120.52 $ 60,754.68 

Internal Revenue Service $ 48,266.74 $ 31,654.93 $ - $ - $ - $ - $ 2,241.04 $ 82,162.71 

Office of the Comptroller of the Currency $ 168,536.00 $ - $ - $ - $ - $ - $ 2,913.35 $ 171,449.35 

Treasury Office of Inspector General $ - $ 17,274.94 $ - $ - $ - $ - $ 224.10 $ 17,499.04 

Special Inspector General for TARP $ 1,439,425.52 $ 1,902,459.89 $ - $ 112,800.38 $ - $ 9,000.00 $ 60,283.95 $ 3,523,969.75 

TDP - Shared Services Program $ 4,084,397.31 $ 6,395,090.59 $ - $ 5,558,955.53 $ - $ - $ 264,442.62 $ 16,302,886.04 

Treasury Inspector General for Tax Administration $ 43,005.00 $ - $ - $ - $ - $ 3,377.00 $ 896.42 $ 47,278.42 

Total $ 42,855,076.55 $ 56,230,951.95 $ 4,885,725.48 $ 27,715,562.78 $ 3,979,247.84 $ 3,294,096.96 $ 2,246,412.84 $ 141,207,074.40 
TFF – 19

Treasury Franchise Fund – Administrative Resource Center, FY 2019 Total Charges by 

Customer

FY 2019 ARC Customers

Financial 

Management 

Services

FMLoB FEES

Human 

Resource 

Services

Procurement 

Services Travel Services

Information 

Technology 

Services

Total

ACCESS BOARD $ 262,149.00 $ 100,719.00 $ 50,434.00 $ 24,267.00 $ 437,569.00

ADMIN OFFICES OF THE US COURTS $ 76,328.00 $ 76,328.00

ADMINISTRATION FOR CHILDREN AND FAMILIES $ 106,525.00 $ 2,661.00 $ 109,186.00

AFRICAN DEVELOPMENT FOUNDATION $ 884,456.00 $ 300,549.00 $ 21,503.00 $ 1,206,508.00

AGENCY FOR INTERNATIONAL DEVELOPMENT $ 86,374.00 $ 95,819.00 $ 182,193.00

AGENCY FOR INTERNATIONAL DEVELOPMENT - OIG $ 99,419.00 $ 99,419.00

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU $ 802,356.00 $ 1,010,157.00 $ 891,934.00 $ 189,006.00 $ 2,893,453.00

ALCOHOL TOBACCO FIREARMS AND EXPLOSIVES $ 972,916.00 $ 972,916.00

ARCHITECT OF THE CAPITOL $ 60,384.46 $ 60,384.46

ARMED FORCES RETIREMENT HOME $ 877,434.00 $ 1,171,872.00 $ 448,783.00 $ 13,349.00 $ 2,511,438.00

BUREAU OF ENGRAVING AND PRINTING $ 2,057,069.00 $ 145,262.00 $ 2,202,331.00

BUREAU OF THE FISCAL SERVICE $ 9,746,518.00 $ 4,956,474.00 $ 3,146,863.00 $ 452,298.00 $ 159,979,210.00 $ 178,281,363.00

CDFI PROGRAM FUND $ 908,626.00 $ 172,288.00 $ 190,463.00 $ 15,028.00 $ 1,286,405.00

CENTER FOR DISEASE CONTROL $ 1,887,052.00 $ 1,887,052.00

CHEMICAL SAFETY AND HAZARD BOARD $ 312,315.00 $ 333,924.00 $ 27,835.00 $ 674,074.00

COMPTROLLER OF THE CURRENCY $ 124,928.00 $ 124,928.00

CONSUMER FINANCIAL PROTECTION BUREAU $ 1,005,871.00 $ 2,905,383.00 $ 1,002,227.00 $ 879,447.00 $ 5,792,928.00

CONSUMER PRODUCT SAFETY COMMISSION $ 626,759.00 $ 581,828.00 $ 46,032.00 $ 1,254,619.00

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE $ 540,887.40 $ 218,861.80 $ 191,958.20 $ 16,181.60 $ 967,889.00

DC PENSIONS PROJECT OFFICE $ 2,157,895.00 $ 28,541.00 $ 40,542.00 $ 1,803.00 $ 1,628,083.00 $ 3,856,864.00

DEFENSE HEALTH AGENCY $ 61,336.00 $ 61,336.00

DEFENSE LOGISTICS AGENCY $ 299,777.60 $ 299,777.60

DENALI COMMISSION $ 572,312.49 $ 86,957.00 $ 137,460.00 $ 16,993.00 $ 813,722.49

DEPARTMENT OF AGRICULTURE $ 167,510.00 $ 167,510.00

DEPARTMENT OF COMMERCE $ 95,819.00 $ 95,819.00

DEPARTMENT OF DEFENSE $ 187,342.00 $ 187,342.00

DEPARTMENT OF EDUCATION $ 230,616.00 $ 230,616.00

DEPARTMENT OF ENERGY $ 152,195.00 $ 124,236.00 $ 276,431.00

DEPARTMENT OF HEALTH & HUMAN SERVICES $ 230,616.00 $ 278,222.00 $ 508,838.00

DEPARTMENT OF HOMELAND SECURITY $ 358,461.00 $ 187,342.00 $ 587,067.00 $ 1,132,870.00

DEPARTMENT OF HOMELAND SECURITY - CIS $ 386,766.00 $ 386,766.00

DEPARTMENT OF HOMELAND SECURITY - OIG $ 813,064.00 $ 86,239.00 $ 247,293.00 $ 343,129.00 $ 1,489,725.00

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $ 17,795,602.29 $ 230,616.00 $ 12,341,997.00 $ 2,187,040.00 $ 2,520,798.00 $ 35,076,053.29

DEPARTMENT OF JUSTICE $ 11,417.49 $ 11,417.49

DEPARTMENT OF JUSTICE JMD/OCIO/EGSS/BOG $ 248,472.00 $ 248,472.00

DEPARTMENT OF LABOR $ 105,328.00 $ 282,798.00 $ 388,126.00

DEPARTMENT OF STATE $ 231,988.00 $ 191,784.00 $ 423,772.00

DEPARTMENT OF THE INTERIOR $ 693,564.98 $ 124,236.00 $ 817,800.98

DEPARTMENT OF TRANSPORTATION $ 230,616.00 $ 230,616.00

DEPARTMENT OF VETERANS AFFAIRS $ 158,998.00 $ 8,602.00 $ 167,600.00

DEPARTMENT OF VETERANS AFFAIRS - OIG $ 2,782,877.00 $ 2,782,877.00

DEPARTMENT OF VETERANS AFFAIRS - TAC $ 145,262.00 $ 571,612.02 $ 716,874.02

ELECTION ASSISTANCE COMMISSION $ 372,062.00 $ 137,473.00 $ 65,692.00 $ 575,227.00

ENVIRONMENTAL PROTECTION AGENCY $ 95,819.00 $ 95,819.00
TFF – 20

Treasury Franchise Fund – Administrative Resource Center, FY 2019 Total Charges by 

Customer (continued)

FY 2019 ARC Customers

Financial 

Management 

Services

FMLoB FEES

Human 

Resource 

Services

Procurement 

Services Travel Services

Information 

Technology 

Services

Total

EXECUTIVE OFFICE OF THE PRESIDENT $ 1,239,578.00 $ 280,073.00 $ 325,321.00 $ 1,844,972.00

FARM CREDIT ADMINISTRATION $ 447,063.00 $ 68,165.00 $ 182,242.00 $ 697,470.00

FARM CREDIT SYSTEM INSURANCE CORPORATION $ 213,719.00 $ 2,093.00 $ 5,054.00 $ 220,866.00

FEDERAL EMERGENCY MANAGEMENT AGENCY $ 13,818.00 $ 13,818.00

FEDERAL HOUSING FINANCE AGENCY $ 967,039.00 $ 188,310.00 $ 218,597.00 $ 1,373,946.00

FEDERAL HOUSING FINANCE AGENCY - OIG $ 366,681.00 $ 264,943.00 $ 184,261.00 $ 76,903.00 $ 892,788.00

FEDERAL LABOR RELATIONS AUTHORITY $ 499,529.00 $ 35,700.00 $ 55,901.00 $ 591,130.00

FEDERAL MARITIME COMMISSION $ 365,425.00 $ 110,000.00 $ 79,177.00 $ 27,202.00 $ 581,804.00

FEDERAL MEDIATION & CONCILIATION SERVICE $ 326,361.13 $ 53,333.34 $ 52,975.79 $ 432,670.26

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION $ 354,945.00 $ 130,188.00 $ 14,647.00 $ 28,248.00 $ 528,028.00

FEDERAL TRADE COMMISSION $ 554,400.00 $ 123,291.67 $ 56,208.33 $ 733,900.00

FINANCIAL CRIMES ENFORCEMENT NETWORK $ 602,188.00 $ 217,540.50 $ 865,566.00 $ 67,395.00 $ 2,035,081.00 $ 3,787,770.50

FOOD AND DRUG ADMINISTRATION $ 537,437.00 $ 537,437.00

GENERAL SERVICE ADMINISTRATION $ 41,332.00 $ 41,332.00

GULF COAST ECOSYSTEM RESTORATION COUNCIL $ 289,115.00 $ 74,083.00 $ 75,069.00 $ 21,777.00 $ 460,044.00

INTER AMERICAN FOUNDATION $ 662,254.00 $ 529,003.00 $ 30,827.00 $ 1,222,084.00

INTERNAL REVENUE SERVICE $ 1,167,554.00 $ 8,475.00 $ 1,176,029.00

MERIT SYSTEMS PROTECTION BOARD $ 576,709.00 $ 30,182.00 $ 55,006.00 $ 661,897.00

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION $ 162,706.32 $ 124,236.00 $ 492,829.00 $ 779,771.32

NATIONAL ARCHIVES & RECORDS ADMINISTRATION $ 3,794,537.00 $ 3,134,416.00 $ 524,341.00 $ 281,680.00 $ 7,734,974.00

NATIONAL CAPTIAL PLANNING COMMISSION $ 233,814.67 $ 16,541.00 $ 7,161.00 $ 257,516.67

NATIONAL MEDIATION BOARD $ 305,958.00 $ 147,482.00 $ 47,650.00 $ 501,090.00

NATIONAL SCIENCE FOUNDATION $ 139,094.00 $ 30,584.00 $ 169,678.00

NUCLEAR REGULATORY COMMISSION $ 1,692,077.45 $ 41,332.00 $ 291,875.63 $ 2,025,285.08

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION $ 292,348.00 $ 13,885.99 $ 25,674.00 $ 331,907.99

OFFICE OF FINANCIAL STABILITY $ 308,728.00 $ 85,310.00 $ 70,430.00 $ 12,773.00 $ 477,241.00

OFFICE OF GOVERNMENT ETHICS $ 374,685.00 $ 225,139.00 $ 144,190.00 $ 9,902.00 $ 753,916.00

OFFICE OF PERSONNEL MANAGEMENT $ 356,163.40 $ 41,332.00 $ 397,495.40

OFFICE OF TECHNICAL ASSISTANCE $ 888,506.00 $ 28,746.00 $ 39,358.00 $ 97,093.00 $ 1,053,703.00

OFFICE OF THE INSPECTOR GENERAL $ 351,220.00 $ 520,166.00 $ 169,292.00 $ 70,179.00 $ 1,110,857.00

RAILROAD RETIREMENT BOARD $ 6,447.00 $ 6,447.00

SECURITIES AND EXCHANGE COMMISSION $ 337,609.00 $ 7,729.60 $ 345,338.60

SMALL BUSINESS ADMINISTRATION $ 67,475.00 $ 67,475.00

SOCIAL SECURITY ADMINISTRATION $ 67,475.00 $ 694,626.13 $ 762,101.13

SPECIAL INSPECTOR GENERAL - TARP $ 378,869.00 $ 355,921.00 $ 256,194.00 $ 84,978.00 $ 22,928.00 $ 1,098,890.00

TREASURY DEPARTMENTAL OFFICES $ 13,971.00 $ 3,839,828.00 $ 3,853,799.00

TREASURY EXECUTIVE OFFICE FOR ASSET FORFEITURE $ 194,023.30 $ 5,538.30 $ 199,561.60

TREASURY FRANCHISE FUND/ADMINISTRATIVE SERVICES $ 15,102,327.00 $ 15,102,327.00

TREASURY FRANCHISE FUND/INFORMATION TECHNOLOGY $ 1,092,147.00 $ 1,069,014.00 $ 1,166,152.00 $ 113,072.00 $ 3,440,385.00

TREASURY FRANCHISE FUND/SHARED SERVICES PROGRAM $ 3,569,465.00 $ 95,892.00 $ 5,125,568.00 $ 1,223,944.00 $ 605,042.00 $ 6,240,095.00 $ 16,860,006.00

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION $ 610,244.00 $ 1,451,283.00 $ 766,711.00 $ 392,455.00 $ 3,220,693.00

TRUST FUND - BLACK LUNG DISABILITY $ 75,935.00 $ 75,935.00

TRUST FUND - FEDERAL DISABILITY $ 210,263.00 $ 210,263.00

TRUST FUND - FEDERAL HOSPITAL INSURANCE $ 277,947.00 $ 277,947.00

TRUST FUND - FEDERAL OLD AGE & SURVIVORS $ 210,263.00 $ 210,263.00

TRUST FUND - FEDERAL SUPPLEMENT INSURANCE $ 277,947.00 $ 277,947.00

TRUST FUND - OIL SPILL LIABILITY $ 165,000.00 $ 165,000.00

TRUST FUND - UNEMPLOYMENT $ 311,244.00 $ 311,244.00

U.S. DEPARTMENT OF COMMERCE OFFICE OF INSPECTOR GENERAL $ 75,000.00 $ 75,000.00

UNITED STATES MARSHALS SERVICE $ 11,219.00 $ 11,219.00

UNITED STATES MINT $ 8,345,811.00 $ 2,916,073.00 $ 2,190,754.00 $ 215,030.00 $ 27,145.42 $ 13,694,813.42

US COURT OF APPEALS FOR VETERANS $ 279,478.00 $ 11,578.00 $ 13,444.00 $ 304,500.00

US DEPARTMENT OF JUSTICE $ 125,592.51 $ 125,592.51

US TAX COURT $ 15,000.00 $ 1,000.00 $ 1,000.00 $ 17,000.00

USDA FOOD AND NUTRITION $ 935,805.00 $ 935,805.00

USDA OCIO INTERNATIONAL TECHNOLOGY SERVICES $ 1,484,099.00 $ 1,484,099.00

USDA OFFICE OF INSPECTOR GENERAL $ 59,521.00 $ 59,521.00

Grand Total $ 72,807,919.49 $ 3,500,807.00 $46,421,728.90 $19,289,961.50 $12,470,795.35 $ 192,156,636.57 $ 346,647,848.81
TFF – 21

Appendix

Treasury Franchise Fund –FY 2021 Continuous Diagnostic and Mitigation (CDM)

Program Spend Plan

In FY 2021, the TFF is expected to expend $12,100,000 to implement the Treasury-wide DHS 

CDM Program. The CDM Program provides cybersecurity tools, integration services and 

dashboards that modernize Treasury’s infrastructures and improves situational awareness of the 

cybersecurity posture across Treasury and the Federal Government. The program’s objective is 

to reduce agency threat surface and improve federal cybersecurity response capabilities and 

streamline Federal Information Security Modernization Act (FISMA) reporting.

FY 2021 CDM Estimate

TSSP Customer Phase 1 Phase 2 Total

ATTB $ 78,072 $ 33,160 $ 111,232

BEP $ 195,635 $ 118,611 $ 314,246

BFS $ 347,730 $ 137,742 $ 485,472

DO CDFI $ 27,688 $ 4,464 $ 32,152

DO DC Pensions $ 7,911 $ 1,275 $ 9,186

DO FFB $ 12,226 $ 638 $ 12,864

DO FSOC $ 6,473 $ 638 $ 7,110

DO OFR $ 74,794 $ 7,015 $ 81,809

DO OFS $ 12,226 $ 1,275 $ 13,501

DO OTA $ 4,315 $ 638 $ 4,953

DO SBLF $ 2,877 $ 638 $ 3,514

DO SE $ 254,049 $ 56,755 $ 310,804

DO TEOAF $ 9,349 $ 1,275 $ 10,625

DO TFI $ 182,916 $ 33,160 $ 216,076

DO TRIP $ 3,236 $ - $ 3,236

FinCEN $ 116,214 $ 18,493 $ 134,707

IRS $ 3,210,335 $ 5,444,625 $ 8,654,960

Mint $ 167,200 $ 105,219 $ 272,420

OCC $ 490,216 $ 248,063 $ 738,279

OIG $ 25,513 $ 10,841 $ 36,354

SIGTARP $ 50,342 $ 5,739 $ 56,082

TDP - CTAS $ 71,134 $ 12,754 $ 83,888

TFF - ARC $ 248,496 $ 84,176 $ 332,672

TIGTA $ 81,897 $ 49,740 $ 131,637

Total $ 5,680,847 $ 6,376,933 $ 12,057,779

Note: Final costs will be included in FY 2021 TSSP Interagency agreements.



Department of the Treasury 

Treasury Executive Office of 

Asset Forfeiture 

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2021
TEOAF - 2

Table of Contents

Section I – Purpose........................................................................................................................ 3

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

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

1.1 – Appropriations Detail Table............................................................................................... 7

1.2 – Obligations Detail Table .................................................................................................... 8

1.3 – Operating Levels Table...................................................................................................... 9

E – Legislative Proposals............................................................................................................ 9

Section II – Annual Performance Plan and Report................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 10

2.1.1 Treasury Forfeiture Fund Resources and Measures......................................................... 10

C – Changes in Performance Measures.................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 11

Section III – Additional Information ........................................................................................ 11

A – Summary of Capital Investments....................................................................................... 11
TEOAF - 3

Section I – Purpose

A – Mission Statement

To affirmatively influence the consistent and strategic use of asset forfeiture by law enforcement 

bureaus that participate in the Treasury Forfeiture Fund (TFF or the Fund) to disrupt and 

dismantle criminal enterprises.

B – Summary of the Request

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Fund, which is the 

receipt account for deposit of non-tax forfeitures made pursuant to laws enforced or administered 

by participating Treasury and Department of Homeland Security (DHS) bureaus. Principal 

revenue-producing bureaus include U.S. Customs and Border Protection (CBP), U.S. 

Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. 

Secret Service (USSS), the U.S. Coast Guard (USCG), and Alcohol and Tobacco Tax and Trade 

Bureau (TTB), among others. The Fund is a special fund, defined as a Federal fund account for 

receipts earmarked for specific purposes and the expenditure of those receipts. The law (31 

U.S.C. 9705) allows TEOAF to use the funds for payment of all proper expenses of seizure or 

the proceedings of forfeiture and sale.

Revenues deposited in the Fund can be allocated and used as the result of a permanent indefinite 

appropriation provided by Congress. A forfeiture process begins once currency or property is 

seized. Seized currency is deposited into a suspense account (holding account) until forfeited. At 

that time, the forfeited amount is transferred (deposited) to the Fund as revenue. Forfeited 

properties are usually sold, and the proceeds are also deposited into the Fund as revenue. This 

revenue represents budget authority for meeting obligations and expenses of the program.

Expenses of the Fund are set in a relative priority so that operating costs are met first and may 

not exceed revenues.

• Mandatory expenses represent operating costs of the Fund, including storing and 

maintaining seized and forfeited assets, valid liens and mortgages, investigative expenses 

incurred in pursuing a seizure, information and inventory systems, remissions, victim 

restoration, and certain costs of local police agencies incurred in joint law enforcement 

operations. Following seizure, equitable shares may be paid to state and local law 

enforcement agencies that contributed to the seizure activity at a level proportionate to their 

involvement. 

• Secretary’s Enforcement Fund (SEF) expenses are funded from revenue from equitable 

shares received from Department of Justice (DOJ) or U.S. Postal Service (USPS) forfeitures. 

These shares are proportionate to Treasury’s participation in the overall investigative effort 

that led to a DOJ or USPS forfeiture. SEF revenue is available for federal law enforcementrelated purposes of any bureau participating in the Fund. 

• Strategic Support authority, established by Congress in 31 U.S.C. 9705(g)(4)(B), allows 

TEOAF to fund priority federal law enforcement initiatives with remaining unobligated 

balances at the close of the fiscal year, after an amount is reserved for the next fiscal year’s 

operations.
TEOAF - 4

FY 2019 Case Highlights: The following case highlights are intended to provide examples of 

the types of investigative cases worked by the Fund’s law enforcement bureaus during FY 2019

that resulted in the seizure and forfeiture of assets. Such cases as those profiled below are 

consistent with the strategic mission and vision of the Fund, which is to use high-impact asset 

forfeiture in investigative cases to disrupt and dismantle criminal enterprises.

• Swiss bank forfeits $29.7 million for hiding U.S. taxpayers’ assets

Swiss-based Basler Kantonalbank (BKB) has admitted in the Deferred Prosecution Agreement 

(DPA) that between 2002 and 2012 it conspired with its employees, external asset managers, and 

clients to defraud the United States with respect to taxes, commit tax evasion, and file false 

federal tax returns. According to the terms of the DPA, BKB agreed to cooperate with the 

Internal Revenue Service (IRS) and other U.S. authorities and pay a penalty of $60.4 million 

consisting of $17.2 million in restitution to the IRS for unpaid taxes, $29.7 million forfeiture and 

$13.5 million dollar fine. The investigation was conducted by IRS Criminal Investigation (CI).

• Mobile Telesystems PJSC (MTS), Russian telecommunication company, has agreed to 

pay $850 million in penalties, including $40 million in criminal forfeiture, in a large 

Foreign Corrupt Practices Act (FCPA) case.

Gulnara Karimova, a former Uzbek government official, was charged in an indictment filed 

in the Southern District of New York with one count of conspiracy to commit money 

laundering related to a bribery scheme. Bekhzod Akhmedov, the former CEO of MTS, the 

largest telecommunication company in Russia, was charged in the same indictment with one 

count of conspiracy to violated the TCPA, two counts of violating the FCPA, and one count 

of conspiracy to commit money laundering. Akhmedov has facilitated the payment of bribes 

to Karimova to obtain lucrative business in the Uzbek telecommunications market. A 

substantial portion of the illicit funds were transmitted through financial institutions in the 

Southern District of New York before they were deposited into bank accounts controlled by 

Karimova in various countries. MTS has agreed to the imposition of an independent 

compliance monitor for three years, implementation of rigorous internal controls, and a 

criminal penalty of $850 million including $40 million in criminal forfeiture.

The investigation was conducted jointly by Homeland Security Investigation and IRS-CI 

under the auspices of the GIFT taskforce in DC supported by TEOAF funding.

• U.S. Secret Service recovers over $1.6 million in a business email compromise scam

The USSS Miami Electronic Crimes Task Force was contacted regarding a suspected 

business email compromise perpetrated against Precision Pipeline LLC. The investigation 

determined that the perpetrators sent an email to the accounting manager at Precision 

impersonating one of the company’s vendors, and under false pretenses caused her to transfer 

$1.6 million to a fraudulent company. The investigation has revealed that the business email 

compromise was a part of a larger international scheme targeting U.S. businesses. The 

operation targeting the scheme was a collaborative effort of the USSS, the FBI, and the U.S.

Postal Inspection Service, and led to 29 arrests in Nigeria and 23 in South Florida, as well as 

the forfeiture of over $1.6 million.

• Coast Guard boards narco-sub carrying 17,000 lbs of cocaine

On June 18, 2019, in the East Pacific Ocean, the Coast Guard initially detected the semisubmersible with an aircraft and relayed that information to two guard boats which then 
TEOAF - 5

intercepted the vessel. After ordering the vessel to stop, the Coast Guard members boarded 

the semi-submersible while it was still in motion. 17,000 pounds of cocaine worth over $569 

million dollars was retrieved from the semi-submersible. 

Priorities: In FY 2021, TEOAF will continue to support the investigations and activities of the 

participating law enforcement bureaus. The bulk of TEOAF expenses include supporting 

seizures and forfeitures to protect the health and safety of U.S. citizens and the commercial 

interests of U.S. businesses from pernicious criminal activity. Funds are expended for seizure, 

storage, maintenance, disposition, and destruction and all costs associated with those activities.

TEOAF focuses on supporting cases and investigations that meet the mission of disrupting and 

dismantling criminal enterprises. To this end, TEOAF prioritizes major case1 initiatives when 

allocating funding to member agencies, including the purchase of evidence and information, joint 

operations expenses, investigative expenses leading to seizure as well as software tools used for 

computer forensics and analysis of financial data. Major case initiatives are aligned directly to 

the National Money Laundering and Southwest Border strategies.

Often times, the assets identified in these investigations are proceeds of fraud schemes with 

multiple victims. TEOAF allocates significant resources to ensure that such investigations are 

adequately funded to yield successful prosecutions and forfeitures. The resulting forfeiture 

deposits are used to compensate the victims defrauded by the violators.

The most notable financial investigations conducted by the TFF agencies involve professional 

money launderers who utilize highly sophisticated money laundering methods, global trade and 

finance, and emerging technologies such as cryptocurrencies. These sophisticated financial 

crimes present a serious threat to our Nation’s financial system, and targeting them requires 

extraordinary law enforcement efforts, manpower and resources. TEOAF prioritizes the support 

of such investigations, including not just their ongoing operation’s needs, but also cutting edge 

technology capabilities required for big data analytics, dark net investigations, block chain 

analysis, and mobile forensics. 

These investments buttress the anti-money laundering and countering the financing of terrorism 

(AML/CFT) strategy of the Departments of Homeland Security and the Treasury. 

Challenges: Large rescissions enacted in prior years have had a severe negative impact on the 

participating member agencies’ investigations. Insufficient and inconsistent funding support, 

uncertainty about future funding, investigations disrupted by cash flow problems, and inability to 

obtain necessary technology/infrastructure all undermine both current and future financial 

investigations and forfeitures. Participating agencies are seeing reluctance in the field to 

undertake complex major investigations due to the lack of assurance that their efforts would 

receive continuous support.

 1 A major case refers to a case where the forfeiture results in a deposit greater than $5 million, or a case that disrupts, 

dismantles, or interrupts money laundering networks or other financial activities that threaten the financial stability, 

financial system, or financial interests of the United States.
TEOAF - 6

The table below reflects forfeiture revenue from all sources including revenue, reverse asset 

sharing, and interest earned.

*FY 2015 data does not include the BNP Paribas S.A. forfeiture in the amount of $3,839 million. Of that amount, $3,800 million was 

permanently rescinded and transferred to the newly-created U.S. Victims of State Sponsored Terrorism Fund (USVSST) as directed by Congress 

under the Consolidated Appropriations Act of 2016, Pub. L. 114-113, Div. O, Tit. IV, §404(e) and §405(b). The remainder has been returned to 

the General Fund in FY 2018.

The absence or, in the best case scenario, uncertainty of Strategic Support funding is especially 

harmful for the most meaningful, high-impact investigations that target financial networks of 

major criminal enterprises. The Strategic Support is critical as a strategic investment in the 

agencies’ operational capabilities and infrastructure supporting major cases. It allows the law 

enforcement agencies to meet in real time unanticipated critical needs, such as those driven by 

new technology advancements or emerging criminal threats. It often serves as seed funding for 

innovations that need to be tested and refined in a pilot setting prior to full-scale implementation.

Undermining major financial investigations will directly impact the ability of Treasury and DHS 

to respond to priority threats and to protect the integrity of the U.S. financial system.

For operational support of TFF agencies’ investigations, both Mandatory and SEF are critical 

funding sources. The Mandatory funding supports investigative expenses only for seizure cases, 

but vast majority of seizure cases don’t initially start as financial cases. They grow out of other 

cases pursuing specified unlawful activities (SUAs) such as drug trafficking, human smuggling 

or cybercrime, which are all dependent on SEF funding for operational support.

In addition, TEOAF tracks future remission payments to third parties as contingent liabilities. 

However, these amounts are not recorded as obligations from the Fund until the Department of 

Justice grants the petition for remission. The third parties are predominantly victims of crimes 

that triggered the forfeiture (e.g., Ponzi scheme or kleptocracy victims). Amounts recorded are 

significant because remission payments from multiple years are recorded and carried forward.

The amounts change constantly as payments are made and amounts for new remission cases are 

added. TEOAF considers the amounts recorded as contingent liabilities as unavailable and 

believes that consideration of contingent liabilities provides a more accurate representation of the 

financial position of the Fund.

$579 $556 

$1,143 

$931 

$524 

$1,715 

$785 $795 $884 

$516 

$1,279 

$876 

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015* FY 2016 FY 2017 FY 2018 FY 2019

$0

$500

$1,000

$1,500

$2,000

Millions

FORFEITURE REVENUE FROM ALL SOURCES
TEOAF - 7

1.1 – Appropriations Detail Table

1/ The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. The FTE are 

shown here for clarity, but are also reflected in the Departmental Offices chapter in the reimbursable FTE total.

2/ For FY 2020 and FY 2021, Treasury will revise Strategic Support based on enacted appropriations and may submit a plan to Congress if funding 

is available, once more is known about collections and expenses.

3/ Treasury will compute the FY 2021 sequestration reduction once the OMB Report to Congress on the Joint Committee Sequestration for Fiscal 

Year 2021 is released.

Dollars in Thousands

Treasury Forfeiture Fund

Budgetary Resources

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Interest 0 $70,395 0 $50,000 0 $50,000 NA 0%

Restored Prior Year Sequestration 

Reduction 0 $84,405 0 $54,340 0 $35,229 NA -35%

Restored Prior Year Sequestration of 

Restored Rescission 0 $65,208 0 $0 0 $0 NA NA

Forfeited Revenue 0 $806,049 0 $547,096 0 $547,096 NA 0%

Recovery from Prior Years Obligation 0 $35,427 0 $15,000 0 $15,000 NA 0%

Unobligated Balances from Prior Years 0 $825,172 0 $609,632 0 $769,239 NA 26%

Total Revenue/Offsetting 

Collections $1,886,656 $1,276,068 $1,416,564 NA 11%

Expenses/Obligations

Mandatory Obligations 1 27 $394,628 27 $436,600 27 $445,332 0% 2%

Secretary's Enforcement 0 $24,614 0 $35,000 0 $35,700 NA 2%

Strategic Support 2 0 $603,442 0 TBD 0 TBD NA NA

Total Expenses/Obligations 27 $1,022,684 27 $471,600 27 $481,032 0% 2%

Rescissions/Cancellations

Sequestration Reduction 3 0 ($54,340) ($35,229) TBD NA NA

Permanent Cancellation 0 ($200,000) $0 $0 NA NA

Total Rescission/Cancellations ($254,340) ($35,229) $0 NA -100%

Net Results $609,632 $769,239 $935,532 NA 22%

Contingent Liabilities $473,316 $385,000 $385,000 NA 0%

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Actual Estimated Estimated % Change
TEOAF - 8

1.2 – Obligations Detail Table

Dollars in Thousands

Treasury Forfeiture Fund 

Obligations

FY 2019 

Actual

FY 2020 

Estimate

FY 2021 

Estimate

% Change FY 

2020 to FY 2021

Mandatory

 CBP $45,551 $41,284 $42,110 2.0%

 ICE $107,218 $120,780 $123,195 2.0%

 IRS $80,099 $122,043 $124,484 2.0%

 USSS $50,080 $42,969 $43,829 2.0%

 USCG $875 $1,400 $1,428 2.0%

 TEOAF $91,003 $89,393 $91,180 2.0%

 TTB $569 $1,037 $1,058 2.0%

 DOJ $19,233 $17,694 $18,048 2.0%

Total Mandatory $394,628 $436,600 $445,332 

SEF

 CBP $4,000 $4,400 $4,488 2.0%

 ICE $7,885 $12,123 $12,365 2.0%

 IRS $7,339 $12,001 $12,241 2.0%

 USSS $4,790 $6,126 $6,249 2.0%

 TTB $600 $350 $357 2.0%

Total SEF $24,614 $35,000 $35,700 

Strategic Support

 CBP $601,000 TBD TBD NA

 IRS 1 $2,442 TBD TBD NA

Total Strategic Support $603,442 $0 $0 

Total Expenses/Obligations $1,022,684 $471,600 $481,032 2.0%

1/ The $2.4M Strategic Support for IRS was approved late in FY18, therefore was extended in FY19. The actual amount of Strategic 

Support that was requested and approved in FY19 was $601M.
TEOAF - 9

1.3 – Operating Levels Table

E – Legislative Proposals

TEOAF has no legislative proposals.

Dollars in Thousands

Treasury Forfeiture Fund FY 2019 FY 2020 FY 2021

Object Classification Actual Estimated Estimated

25.2 - Other services 68,598 45,961 47,003

25.3 - Other purchases of goods & serv frm Govt accts 166,475 139,866 140,994

26.0 - Supplies and materials 15 15 15

41.0 - Grants, subsidies, and contributions 71,252 110,907 114,008

43.0 - Interest and dividends 50 50 50

44.0 - Refunds 88,238 139,831 142,960

94.0 - Financial Transfers 628,056 34,970 36,002

Total Non-Personnel 1,022,684 471,600 481,032

New Budgetary Resources $1,022,684 $471,600 $481,032

Budget Activities:

 Asset Forfeiture Fund $1,022,684 $471,600 $481,032

FTE 27 27 27
TEOAF - 10

Section II – Annual Performance Plan and Report

A – Strategic Alignment

The purpose of the Fund is to ensure resources are managed to cover the costs of an effective

asset seizure and forfeiture program, including the costs of seizure or the proceedings of

forfeiture and sale, including the expenses of detention, inventory, security, maintenance,

advertisement, or disposal of the property. Additionally, the Fund is used to support law

enforcement priorities, financial investigative capabilities, and the seizure of physical and

financial resources to disrupt and dismantle criminal enterprises. TEOAF supports the following

Department of the Treasury strategic goal and associated objectives:

• Goal 3: Enhance National Security:

o 3.1 Strategic Threat Disruption

o 3.2 AML/CFT Framework

B – Budget and Performance by Budget Activity

2.1.1 Treasury Forfeiture Fund Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Treasury Forfeiture Fund Budget and Performance

($481,032,000 in obligations from revenue/offsetting collections): 

The Fund continues to measure the performance of the participating law enforcement bureaus 

through the “percent of forfeited cash proceeds resulting from high-impact cases, “which are 

cases that yield a cash forfeiture deposit equal to or greater than $100,000.

The high-impact cases are the ones that pursue major criminal targets and their financial 

networks, and therefore are central to the mission of disrupting and dismantling criminal 

enterprises. At the same time, these cases are heavily dependent on TEOAF’s funding due to 

their high operational costs and reliance on sophisticated technologies and analytical tools that 

are not adequately covered by the appropriated funds. The dominant share of high-impact

forfeitures reflects TEOAF’s effectiveness in supporting such major investigations. 

While the specific numbers shown in the chart fluctuate due to the unusually big forfeitures, the 

consistently dominant (80% or more) share of major forfeiture year after year demonstrates 

TEOAF’s consistent commitment to supporting high-impact cases. Member law enforcement 

bureaus participating in the Fund have met or exceeded the performance target since FY 2014.

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $4,323,908 $508,746 $526,228 $1,007,426 $1,022,684 $471,600 $481,032

$4,323,908 $508,746 $526,228 $1,007,426 $1,022,684 $471,600 $481,032

25 25 25 26 27 27 27

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target

89.09 81.79 80 94.19 90.8 80 80

Measure

Budget Activity Total

Treasury Forfeiture Fund Budget 

Activity Resource Level

FTE

Percent of Forfeited Cash Proceeds Resulting 

from High-Impact Cases
TEOAF - 11

For FY 2020 and FY 2021, the target will remain at 80 percent. The Fund maintains a target of 

80 percent because some cases may be important to pursue, even if they are not high-impact 

cases and result in deposits of less than $100,000.

C – Changes in Performance Measures

TEOAF has no proposed changes to its performance measures. 

D – Evidence-Building Activity

In FY 2019, TEOAF has conducted various analyses related to the TFF member agencies’ 

investigative capabilities, resource needs and funding requests for the purpose of determining the 

most effective ways to allocate TEOAF’s funds. 

During the budget formulation process, TEOAF has reviewed and analyzed a large number of 

TFF agencies’ funding requests. Following the in-depth discussions with the agencies regarding 

the specific requests and the overall priorities, TEOAF has formulated the FY2020 Financial 

Plan designed to meet the needs of the TFF agencies’ Forfeiture program as well as advance their 

priority law enforcement efforts. TEOAF also have been actively analyzing over 100 cases 

designated for TEOAF’s support thought the Third Party Money Laundering Program. This 

included analysis of deficiencies and emerging needs related to the TFF agencies’ investigative 

capabilities and infrastructure, and possible ways to use TFF funds to facilitate improvements. 

For instance, TEOAF has identified a growing need for IT tools to support analyses of large 

volumes of email data in foreign languages, and with agency assistance formulated a plan to fund 

and build the required solutions. Additionally, TEOAF has been conducting outreach and 

exploratory discussions with TFF agencies’ leadership in the field about the 

creation/enhancement of joint financial taskforces aimed at increasing the efficiency of TFF 

funding support through the shared use of TEOAF-funded resources.

In FY 2020 and FY 2021, TEOAF will continue performing in-depth review and analyses of 

funding requests from the TFF agencies. TEOAF is also planning to continue analyzing the 

agencies’ investigative needs and exploring avenues to meet them using the TFF funds. One of 

the new efforts that has been recently launched is the upgrade of technology for scanning and 

analysis of financial records, to be funded by TEOAF and utilized jointly by TFF agencies.

Section III – Additional Information

A – Summary of Capital Investments

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 



Department of the Treasury 

Bureau of Engraving and 

Printing 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
2 

Table of Contents 

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

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

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

1.1 – Resources Detail Table ...................................................................................................... 5

1.2 – Budget Adjustments Table ................................................................................................. 6

C – Budget Increases and Decreases Description ....................................................................... 6

1.3 – Object Classification (Schedule O) Obligations ................................................................ 9

D – Appropriations Language and Explanation of Changes ...................................................... 9

E – Legislative Proposals ............................................................................................................ 9

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 10

2.1 – Manufacturing Resources and Measures ......................................................................... 10

Manufacturing Budget and Performance .................................................................................. 11

C – Changes in Performance Measures .................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 12

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments ....................................................................................... 12
3 

Section I – Budget Request 

A – Mission Statement 

To develop and produce United States currency notes trusted worldwide. 

B – Summary of the Request 

The Bureau of Engraving and Printing (BEP) produces and delivers U.S. currency notes for the 

Federal Reserve System ordered by the Board of Governors of the Federal Reserve (FRB) and other 

security products for the Federal Government. BEP began printing currency in 1862 and operates on 

the basis of authority conferred upon the Secretary of the Treasury by 31 U.S.C. 321(a) (4) to 

engrave and print currency and other security documents. Operations are financed through a 

revolving fund established in 1950 in accordance with Public Law 81-656. The fund is reimbursed 

for direct and indirect costs of operations, including administrative expenses, through product sales. 

In 1977, Public Law 95-81 authorized BEP to include an amount sufficient to fund capital investment 

and to meet working capital requirements in the prices charged for products, eliminating the need for 

annual discretionary appropriations. 

BEP provides technical assistance, advice, and some production services to other federal agencies in 

the development of security documents that require counterfeit deterrent features due to their innate 

value or other characteristics. Other activities at BEP include engraving plates and dies; 

manufacturing inks used to print security products; purchasing materials, supplies and equipment; 

and storing and delivering products in accordance with customer requirements. BEP supports 

Treasury’s Strategic Goal 1: Boost U.S. Economic Growth and Strategic Goal 5: Achieve 

Operational Excellence. 

BEP’s FY 2021 request funds the following projects: 

1. Replacement Production Facility: In FY 2019, BEP received legislative authority to acquire 

land and fund construction of a more efficient production facility to replace BEP’s current aging 

Washington, D.C. facility. Additionally, a provision of the 2019 Farm Bill authorizes the 

transfer of a U.S. Department of Agriculture (USDA) land parcel in Beltsville, Maryland to the 

Department of the Treasury to be the site for BEP’s replacement production facility. BEP is 

conducting a suitability assessment of the site with the support from the U.S. Army Corps of 

Engineers. The formal transfer from USDA to Treasury is anticipated in early 2020. A 

replacement facility will save an estimated $579 million over 10 years, as compared to the cost of 

the renovation of the existing facility. In addition, BEP will reduce its annual operating costs by 

at least $38 million through production, material handling, and other operational/support 

efficiencies. In FY 2020, the budget includes about $5 million for the remaining site evaluation 

tasks and relocation of several onsite USDA facilities that must be removed prior to the initiation 

of onsite BEP construction activities. Also anticipated in FY 2021 is the initiation of early site 

development construction activities estimated at $30 million to include site grading, roadway 

improvements, and utility system relocation to support the BEP development.

2. Western Currency Facility Expansion: BEP began expanding the Western Currency Facility in 

(WCF) FY 2018 to house and support the new equipment required for the next generation of 

currency design. Producing the next family of updated notes requires that BEP purchase and 

install new production equipment to support the new designs. The expansion will provide the 

space and infrastructure necessary to successfully meet the production requirements of the next 

family of U.S. currency banknotes that focus on the integration of strong, new security features. 
4 

Unforeseen weather-related delays caused the project to fall 4 to 6 months behind schedule. The 

expansion work is expected to be completed in FY 2021 with contract close out occurring in FY 

2022. The FY 2021 projected cost for the WCF is $5 million. 

3. Banknote Design and Development: In FY 2021, BEP will continue working with the Federal 

Government’s Advanced Counterfeit Deterrent (ACD) Steering Committee to research and 

develop improved security features for the next family of updated notes. The ACD Committee is 

an inter-agency group established to monitor and explore existing and emerging technologies to 

deter the counterfeiting of U.S. currency. It includes representatives from BEP, the Department 

of the Treasury, the U.S. Secret Service, and the Federal Reserve Board (FRB). The updated 

notes will focus on innovative banknote security and anti-counterfeit technology that will 

enhance and ensure the security and integrity of U.S. currency. While many factors are taken into 

consideration when updating currency, the primary purpose for updating notes is to improve the 

security of U.S. banknotes and ensure they maintain their position as being trusted worldwide. 

4. Retooling: BEP is conducting a multi-year effort to retool its manufacturing processes with stateof-the-art intaglio printing presses, electronic inspection systems, and finishing equipment. To 

ensure that BEP will meet the annual currency order, the FRB and BEP developed short, 

medium, and long-term strategic equipment replacement plans for the U.S. Currency Program. 

Successful implementation of advanced technology improves productivity, reduces 

environmental impact, and enhances counterfeit deterrence of U.S. currency notes. In FY 

2020/2021, the major retooling initiatives include:

 Upgrade and completely automate the $100 finishing line to integrate Single Note 

Inspection technology. The capability to inspect single notes provides a significant 

improvement over BEP’s traditional sheet inspection process. Spoilage will be 

reduced significantly, and processing efficiency will increase resulting in cost savings. 

 Replace the existing hexavalent chromium plating line with a Physical Vapor 

Deposition Chrome system which has known environmental benefits and potential 

plate life improvement benefits. 

 Upgrade plate-making with Computer-to-Plate technology. Computer generated digital 

image transferred directly to a printing plate. This technology improves note image 

quality and plate making efficiency. 

 Develop a Crease Detection System to detect paper creases and improve print quality. 

 Acquire new security feature equipment to support production of the next generation 

of currency. 

5. Human Capital/Talent Management: BEP will continue its designated talent management 

initiatives, while filling personnel gaps in needed STEM and cybersecurity skill sets. BEP has 

proactively continued to fill the gaps in the STEM and cybersecurity positions in FY 2020 by 

utilizing a variety of hiring authorities to onboard five new hires in the first quarter. 

Additionally, the BEP attended two Recruit Military events in the D.C. and Dallas/Ft. Worth 

locations in November 2019 to attract potential veteran candidates. As of January 9, 2020, 

twelve STEM selectees are pending pre-employment hiring reviews and entrance on duty. In 

terms of Employee Engagement, the Office of Human Resources made deliberate efforts to 

assess and track all engagement related activities and metrics including: implementation of a 

“Core Values” program; development and implementation of a Collaborative Communication 

Network; development of an Employee Appreciation program; and the establishment of a BEP 
5 

Community Spirit program that will take place during FY 2020. Throughout FY 2021, BEP will 

continue to develop, execute, and communicate the results of Employee Engagement Plans and 

the annual Federal Employee Viewpoint Survey (FEVS) results. 

1.1 – Resources Detail Table 

Dollars in Thousands FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021 

Budgetary Resources Actual Estimate Estimate % Change 

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Currency Program 1,727 $944,993 1,804 $810,701 1,863 $878,400 3.27% 8.35% 

Other Programs 0 $10,219 0 $9,000 0 $9,000 0 0.00% 

Total Revenue/Offsetting Collections 1,727 $955,212 1,804 $819,701 1,863 $887,400 3.27% 8.26%

Expenses/Obligations 

Manufacturing

 Direct Manufacturing 817 451,661 853 $385,259 881 $417,078 3.28% 8.26%

 Indirect Manufacturing Support 910 503,551 951 $434,442 982 $470,322 3.26% 8.26% 

Total Expenses/Obligations 1,727 955,212 1,804 $819,701 1,863 $887,400 3.27% 8.26%

Net Results 0 0 0 0 0 0 NA NA

 
6 

 1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Materials Operating & 

Capital Total 

FY 2020 Original Estimate 1,863 $244,051 $642,836 $886,887 

Program Changes 

Program Decreases: (59) ($50,000) ($53,236) ($103,236) 

 Currency Program decrease (7.0B to 5.2B) 0 ($50,000) $0 ($50,000) 

 Washington D.C. Replacement Facility 0 $0 ($44,950) ($44,950) 

 Hiring Lag (59) $0 ($8,286) ($8,286) 

Program Increases: 0 $0 $36,050 $36,050 

 R&D (New Note Features) 0 $0 $19,000 $19,000 

 Support Services Contract 0 $0 $3,500 $3,500 

 Pay Raise (3.1% average pay raise) 0 $0 $7,700 $7,700 

 WCF Expansion 0 $0 $5,850 $5,850 

Subtotal Program Changes (59) (50,000) ($17,186) ($67,186) 

FY 2020 Revised Estimate 1,804 $194,051 $625,650 $819,701 

Changes to Base 

Maintaining Current Levels (MCLs) 0 $0 $14,686 $14,686 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,998 $1,998 

Pay Raise (1.0% average pay raise) 0 $0 $1,948 $1,948 

FERS Contribution Increase 0 $0 $3,383 $3,383 

Non-Pay 0 $0 $7,357 $7,357 

Efficiency Savings 0 $0 ($5,000) ($5,000)

Overtime Reduction 0 $0 ($5,000) ($5,000) 

Subtotal Changes to Base 0 $0 $9,686 $9,686 

FY 2021 Current Services 1,804 $194,051 $635,336 $829,387 

Program Changes 

Program Decreases: 0 $0 ($51,400) ($51,400) 

 Retooling 0 $0 ($33,000) ($33,000) 

 New Equipment Initiatives 0 $0 ($15,000) ($15,000) 

 WCF Expansion 0 $0 ($3,400) ($3,400) 

Program Increases: 59 $53,237 $56,176 $109,413 

Washington D.C. Replacement Facility 0 $0 $24,890 $24,890 

New Security Feature Equipment (WCF) 0 $0 $24,000 $24,000 

Estimated Currency Program increase (6.8B) 0 $53,237 $0 $53,237 

Complete Hiring Plan 59 $0 $7,286 $7,286 

Subtotal Program Changes 59 $53,237 $4,776 $58,013 

FY 2021 Estimate 1,863 $247,288 $640,112 $887,400 

C – Budget Increases and Decreases Description 

FY 2020 Revised Estimate 

Program Decreases..................................................................................-$103,236,000 / -59 FTE 

Currency Note Program -$50,000,000 / -0 FTE 

This decrease reflects the FY 2020 order of notes from the FRB. The order decreased from 7.0 

billion notes in FY 2019 to 5.2 billion notes in FY 2020. 

 
7 

Washington D.C. Replacement Facility -$44,950,000 /-0 FTE 

In FY 2019, BEP received legislative authority to acquire land and build a more efficient facility 

in the Washington, D.C. area. As a result of the new authority, BEP will not undertake the 

previously planned renovation to the existing facility in D.C.

Hiring Lag - $8,286,000/ -59 FTE 

This adjustment is to reflect the impact of the hiring lag. 

Program Increases.....................................................................................+$36,050,000 / +0 FTE 

Research and Development +$19,000,000/ +0 FTE 

To continue the research and development of the new security features for the new family of 

notes. 

Support Service Contracts +$3,500,000/ +0 FTE 

To mitigate the risks associated with the growing hiring backlog, the funding would be used to 

acquire support services to provide business continuity. 

Pay Raise (3.1% in 2020) +$7,700,000/ +0 FTE 

Funds are required for 3.1% average pay raise in January 2020. 

WCF Expansion +$5,850,000/ +0 FTE 

The funding will be used for unforeseen construction issues. 

FY 2021 Maintaining Current Levels (MCLs) ......................................+$14,686,000 / +0 FTE 

Pay Annualization (3.1%) +$1,998,000 / +0 FTE: 

Funds are required for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$1,948,000 / +0 FTE: 

Funds are required for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$3,383,000 / +0 FTE: 

Funds are required for the Federal Employee Retirement System (FERS) 

contribution rates effective FY 2021. 

Non-Pay +$7,357,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

FY 2021 Efficiency Savings ................................................................-$5,000,000 / -0 FTE 

Overtime Reduction -$5,000,000 / -0 FTE 

The new production technologies would yield more efficiencies resulting in less 

overtime. 

Program Decreases ....................................................................................-$51,400,000 / -0 FTE 

Retooling -$33,000,000 / -0 FTE 

The FY 2021 anticipated requirements are estimated to be $33 million lower than that of FY 

2020. 
8 

New Equipment Initiatives -$15,000,000 / -0 FTE 

Requested funding supports the acquisition of new technology/equipment to be used in the 

testing of new security design features. The FY 2021 requirements are estimated to be $15 

million less than that of FY 2020. 

WCF Expansion -$3,400,000/ -0 FTE 

The FY 2021 anticipated requirements are estimated to be $3.4 million lower than that of FY 

2020. 

Program Increases ................................................................................+$109,413,000 / +59 FTE 

Washington D.C. Replacement Facility +$24,890,000 /+0 FTE 

Funds are requested to reflect the increase from FY 2020 to FY 2021 to support pre-construction 

activities. 

New Security Feature Equipment (WCF) +$24,000,000 / +0 FTE 

Currency Redesign efforts require investment in new application equipment which is to be 

installed in WCF in FY 2021 and subsequently installed at the replacement D.C. Facility. 

Currency Note Program +$53,237,000 / +0 FTE 

Early indications suggest that the yearly currency order placed by the Federal Reserve Board will 

return to average order levels in FY 2021. 

Complete Hiring Plan +$7,286,000 / +59 FTE 

BEP has been experiencing a hiring lag over the last several years. BEP anticipates reducing the 

backlog of hiring actions in FY 2021 and plans to execute and complete proposed hiring actions 

and on board FTEs.
9 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2019 FY 2020 FY 2021 

Object Classification 

Actual 

Obligations* 

Estimated 

Obligations 

Estimated 

Obligations 

11.1 - Full-time permanent 166,750 176,850 182,750 

11.3 - Other than full-time permanent 150 180 180 

11.5 - Other personnel compensation 3,000 3,200 3,200 

11.6 - Overtime 20,750 12,200 10,000 

11.9 - Personnel Compensation (Total) 190,650 192,430 196,130 

12.0 - Personnel benefits 62,000 65,350 72,733 

Total Personnel and Compensation Benefits $252,650 $257,780 $268,863 

21.0 - Travel and transportation of persons 2,000 2,000 2,000 

22.0 - Transportation of things 600 600 600 

23.1 - Rental payments to GSA 4,000 4,000 4,000 

23.2 - Rental payments to others 450 1,000 1,000 

23.3 - Communication, utilities, and misc charges 15,000 16,350 16,350 

24.0 - Printing and reproduction 250 250 250 

25.1 - Advisory and assistance services 7,750 8,000 7,000 

25.2 - Other services 136,432 117,000 112,500 

25.4 - Operation and maintenance of facilities 32,000 28,000 28,000 

25.5 - Research and development contracts 47,300 50,000 50,000 

25.7 - Operation and maintenance of equip 17,000 16,500 16,252 

26.0 - Supplies and materials 262,880 194,051 248,921 

31.0 - Equipment 176,750 124,015 131,509 

42.0 - Insurance claims and indemnities 150 155 155 

Total Non-Personnel 702,562 561,921 618,537 

Total Obligations $955,212 $819,701 $887,400 

 

Full-time Equivalents (FTE) 1,727 1,804 1,863 

* The FY 2019 obligations reflect an updated object class breakout for corrections made after the reporting window and do not match the FY 

2021 President’s Budget Appendix. The adjustments did not affect the total FY 2019 obligations.

D – Appropriations Language and Explanation of Changes 

The BEP does not need annual appropriations language. 

E – Legislative Proposals 

As proposed previously, BEP requests the authority to print security documents such as birth, 

marriage, and death certificates for state governments. Many states are unable to find an 

American printing firm to produce the documents. These states are turning to foreign companies 

or lowering their security standards. 
10 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

BEP's vision is to be the world’s standard securities printer providing its customers and the public 

with superior products through excellence in manufacturing and innovation. BEP supports the 

following Department of the Treasury FY 2018-2022 strategic goals: 

 Goal 1: Boost U.S. Economic Growth 

o Trusted Currency and Services 

 Goal 5: Achieve Operational Excellence 

o Workforce Management 

o Treasury Infrastructure 

o Delivering Customer Value 

U.S. currency is used globally and as its manufacturer, BEP needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating the next series of secure notes. 

BEP continues to make every effort to meet its mission to manufacture sophisticated and 

technologically advanced notes that are dependable in commerce. This achievement requires the 

focus and determination of the entire agency, since BEP faces challenges and is committed to 

stay ahead of increasingly sophisticated counterfeiters. 

B – Budget and Performance by Budget Activity 

2.1 – Manufacturing Resources and Measures 

Dollars in Thousands 

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $778,592 $648,365 $712,920 $914,134 $955,212 $819,701 $887,400 

Budget Activity Total $778,592 $648,365 $712,920 $914,134 $955,212 $819,701 $887,400 

Full-time Equivalents (FTE) 1,781 1,790 1,818 1,748 1,727 1,804 1,863 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Performance Measure FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Currency Notes Delivered Returned 

Due to Defects (Parts per Million)

N/A N/A N/A 0.0031ppm 0.09ppm <1ppm <1ppm <1ppm

Improved FEVS Satisfaction 66% 66% 68% 70% 68% 65% 65% 65%

Lost Time Accident Rate per 100 

Employees

1.65 1.77 1.6 0.9 1.05 1.8 1.8 1.8

Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced)

$42.35 $44.25 $43.58 $47.41 $51.01 $51.66 $56.00 $56.00

Yearly Currency Order (percent of 

order completed versus planned)

N/A N/A N/A N/A 100% 100% 100% 100%
11 

Manufacturing Budget and Performance 

($887,400,000 from reimbursable sources)

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s strategic 

goals as well as supporting Treasury’s Strategic Goals Boosting U.S. Economic Growth and 

Achieving Operational Excellence. 

Description of Performance: 

Currency Notes Returned Due to Defects (parts per million (ppm)) is an indicator of BEP’s ability to 

provide a quality product. The target for this performance metric is <1 ppm. BEP was able to exceed 

the established target in FY 2019 due to improved quality assurance processes with an actual result 

of 0.09 ppm notes returned due to a defect. BEP’s target for this performance metric will be held 

constant at <1 ppm for FY 2020 and FY 2021. 

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on what 

matters most to them. Based on the results of the survey, BEP can target areas for improvement or 

additional employee engagement. The measure uses the Department’s standard FEVS Employee 

Engagement Index with a target of 65 percent. In FY 2020 and 2021, BEP will continue to strive for 

improvements in overall employee satisfaction. 

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries and 

illnesses in the workplace. BEP’s FY 2019 Lost Time Accident rate was at 1.05 cases per 100 

employees, 42 percent lower than the target of 1.80 cases per 100 employees. This performance 

resulted from increased focus on following safe work practices, avoiding hazards, and being a 

Director’s priority. For FY 2021, BEP remains committed to maintaining and improving the safety of 

its employees. BEP will continue to perform analysis to determine the root causes of any injury and 

to identify best practices in safety. BEP’s target will be held at 1.80 cases per 100 employees for FY 

2020 and FY 2021. 

Manufacturing Costs for Currency (dollar cost per 1,000 notes produced) is an indicator of 

manufacturing efficiency and effectiveness of program management. The measure is based on 

contracted price factors, productivity improvements, and the mix of denominations ordered. Actual 

performance against standard costs depends on BEP’s ability to meet spoilage, efficiency, and 

capacity utilization goals. In FY 2019, the cost of manufacturing was lower than anticipated due to 

operational efficiencies. The FY 2019 cost was $51.01 per 1,000 notes produced, compared to a 

target of $51.66. BEP’s target for this performance metric in FY 2020 and FY 2021 is set at $56.00 

per 1,000 notes produced. Per unit cost for currency is projected to increase because of significant 

reduction to the currency order for 2020 and higher labor rates and material price increases. 

The Yearly Currency Order measures BEP’s success in delivering the total number of currency notes 

ordered by the Federal Reserve Board annually. In FY 2019, BEP met its target of delivering 100 

percent of the currency notes ordered. In FY 2020 and FY 2021, BEP will continue to target 

delivering 100 percent of the FRB’s currency order. 

C – Changes in Performance Measures 

N/A 
12 

D – Evidence-Building Activity 

U.S. Currency notes are rapidly increasing in complexity to incorporate improved security, 

counterfeit deterrence, machine readability, and raised tactile functionality for the vision 

impaired. The BEP’s Currency Quality Assurance (CQA) program was designed to integrate the 

current ISO 9001:2015 certified Quality Management System, new technologically advanced 

design features, new equipment, new processes, and ever higher quality and environmental 

demands to produce trusted U.S. currency at high volume and exceptional value. 

A robust CQA program is necessary to address every aspect of the U.S. Currency lifecycle; from 

product development, acquisition of material, through process and production control, to final 

release and delivery. During the research and development phase of the new security features, 

each potential feature must undergo a rigorous feasibility study. BEP CQA collects study and 

testing data to determine feasibility. Features that are deemed unfeasible will not advance to the 

next phase. In FY 2019, BEP CQA devoted extensive effort to support series changes, 

verification, and validation work, and the new Catalyst family of note designs. In FY 2020 and 

FY 2021, BEP will continue to focus on research and development of the remaining security 

features for the new Catalyst Family of note designs and improving the overall CQA program. 

Section III – Additional Information 

A – Summary of Capital Investments 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 


Department of the Treasury 

United States Mint 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021 
MINT - 2 

Table of Contents

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

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

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

1.1 – Resource Detail Table ................................................................................................... 4

1.2 – Budget Adjustments Table ............................................................................................ 5

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

1.3 – Object Classification (Schedule O) Obligations ................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 8

For more detailed information, please reference Section III p. 14. ............................................ 8

E – Legislative Proposals ............................................................................................................ 8

Section II – Annual Performance Plan and Report ................................................................. 10

A – Strategic Alignment ........................................................................................................... 10

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 – Manufacturing Resources and Measures ...................................................................... 11

Manufacturing Budget and Performance .................................................................................. 12

C– Evidence-Building Activity ................................................................................................. 13

Section III – Additional Information ........................................................................................ 14

A – Summary of Capital Investments ....................................................................................... 14

 
MINT - 3 

Section I – Budget Request 

A – Mission Statement 

The United States Mint (Mint) enables America’s economic growth and stability by protecting 

assets entrusted to us and manufacturing coins and medals to facilitate national commerce. 

B – Summary of the Request 

In Fiscal Year (FY) 2021, the Mint’s total estimated budgetary requirements for operations, 

metal, and capital investments are $2.55 billion. This budget will support the production of 14 

billion circulating coins, as well as the production of bullion and other numismatic products 

sufficient to meet customer demand. The Mint has one budget activity: manufacturing, which 

encompasses the bureau’s two major programs, circulating coinage and numismatic products 

(including bullion coins, collector coins, and national medals). 

To maintain its reputation as one of the finest mints in the world, the Mint is committed to 

operating according to the core values of service, quality, and integrity. The Mint has three 

strategic goals to help fulfill its mission and values: 1) Advancing our circulating mission 

through innovation and technology; 2) Fostering a safe, flexible, diverse and engaged workforce; 

3) Introducing diverse products to new customers and revitalizing the Mint customer base 

through the use of industry-proven marketing approaches. The Mint is currently updating their 

goals and expects to release a new plan in FY 2020. The goals in the plan align with Treasury 

Strategic Goal 1: Boost U.S. Economic Growth and Goal 5: Achieve Operational Excellence. 

Mint operations are funded through the Mint Public Enterprise Fund (PEF), 31 U.S.C. § 5136. 

The Mint generates revenue through the sale of circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and bullion coins to authorized purchasers. All 

circulating and numismatic operating expenses, along with capital investments incurred for the 

Mint’s operations and programs, are paid out of the PEF. By law, all funds in the PEF are 

available without fiscal year limitation. Revenues determined to be in excess of the amount 

required by the PEF are transferred to the United States Treasury General Fund. 

Circulating 

Circulating coin production projections are based on current economic data and forecasts of FRB 

coin orders. Circulating coin production for FY 2020 and FY 2021 is forecasted at 14.0 billion 

coins for each year. This level reflects an 11 percent increase for FY 2020 and FY 2021 in 

shipments of all coin denominations, as compared to 12.5 billion in FY 2019. Circulating 

financial performance continues to be adversely affected by rising production costs. FY 2019 

unit costs increased for all denominations compared to the prior year. The unit cost for both 

pennies (1.99 cents) and nickels (7.62 cents) remained above face value for the 14th consecutive 

fiscal year. 

Numismatic Program 

The numismatic program, which includes bullion coins, is designed to prepare and distribute 

premium products to collectors and those who desire quality versions of coinage. Numismatic 

products are priced to cover metal and production costs. 
MINT - 4 

Bullion Coins 

The bullion coin program provides the public a means to acquire precious metal coins as part of 

an investment portfolio. In FY 2019, bullion demand increased to 18.8 million ounces from the 

15.3 million ounces sold in FY 2018. Demand for bullion is forecasted at 29.6 million ounces 

for both FY 2020 and FY 2021. Bullion revenue is forecasted to be $1.6 billion in FY 2020 and 

FY 2021. 

Numismatic (Collector Coins and Medals) 

The numismatic program provides high-quality versions of circulating coinage, precious metal 

coins, commemorative coins, and national medals for sale to the public. Numismatic revenue 

increased by 19.3 percent from $293.1 million in FY 2018 to $349.6 million in FY 2019 due to a 

$6.9 million increase from annual core sets and a $40.5 million increase from commemorative 

coin products. Total units increased by 28 percent from 3.3 million in FY 2018 to 4.3 million in 

FY 2019. FY 2020 and FY 2021 numismatic revenues are projected to be $311 million each 

year, based on projected demand for numismatic products of 3.8 million in both FY 2020 and 

FY 2020. 

1.1 – Resource Detail Table 

Coin Shipments (Units In Millions/Coins) FY 2019 FY 2020 FY 2021

Circulating:

One Cent 7,315 8,500 8,500 

5-Cent 1,153 1,300 1,300 

Dime 2,215 2,400 2,400 

Quarter 1,783 1,800 1,800 

Half-Dollar - - - 

Dollar - - - 

Total Circulating 12,465 14,000 14,000 

FY 2019 FY 2020 FY 2021

Budget Category Budget Estimate Estimate

Administrative Operating Costs $396,691 $417,295 $406,697

Capital Investments $38,358 $40,500 $60,500

Metals and Materials Costs $1,120,413 $2,080,000 $2,080,000

Total Budgetary Resources $1,555,462 $2,537,795 $2,547,197

% Change

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

% Change

-2.5%

49.4%

0.0%

0.4%
MINT - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

 FTE Materials Operating & 

Capital Total 

FY 2020 Original Estimate 1,705 $2,270,000 $458,168 $2,728,168 

Program Changes 

Program Decreases: (34) ($190,000) ($7,669) ($197,669) 

Metal Due to Forecasted Decrease in Circulating Coin Metal Prices 0 ($30,000) $0 ($30,000) 

Metal Due to Forecasted Decrease in Bullion Production 0 ($160,000) $0 ($160,000) 

FTE Reduction (34) $0 ($4,097) ($4,097) 

Operating Efficiencies 0 $0 ($3,572) ($3,572) 

Program Increases: 0 $0 $7,296 $7,296 

FedRAMP Remediation Activities 0 $0 $4,000 $4,000 

Pay Raise (3.1% average pay raise) 0 $0 $3,296 $3,296 

Subtotal Program Changes (34) ($190,000) ($373) ($190,373) 

FY 2020 Revised Estimate 1,671 $2,080,000 $457,795 $2,537,795 

Changes to Base 

Maintaining Current Levels (MCLs) 0 $0 $10,856 $10,856 

Pay Annualization (2020 3.1% average pay raise) 0 $0 $1,629 $1,629 

Pay Raise (1.0% average pay raise) 0 $0 $1,588 $1,588 

FERS Contribution Increase 0 $0 $2,686 $2,686 

Non-Pay 0 $0 $4,953 $4,953 

Workforce and Succession Planning 34 $0 $4,901 $4,901 

Efficiency Savings 0 $0 (6,355) ($6,355) 

Cyber Security 0 $0 ($1,500) ($1,500) 

Operating Efficiencies 0 $0 ($4,855) ($4,855) 

Subtotal Changes to Base 34 $0 $9,402 $9,402 

FY 2021 Current Services 1,705 $2,080,000 $467,197 $2,547,197 

FY 2021 Estimate 1,705 $2,080,000 $467,197 $2,547,197 

C – Budget Increases and Decreases Description 

Program Decreases............................................................-$197,669,000 / -34 FTE 

Metals Due to Forecasted Increase in Circulating Coin Metal Prices -$30,000,000 / -0 FTE 

FY 2020 forecasted circulating coin production will remain constant at 14.0 billion coins for the 

year. However, metal prices are forecasted to decrease. The net result is an overall decrease to 

circulating coin program costs. 

Metals Due to Forecasted Decrease in Bullion/Numismatic Production -$160,000,000 / -0 FTE 

FY 2020 forecasted demand for the bullion coin program decreased by 7 percent, causing a 

decrease of $200 million in bullion coin program costs. Conversely, numismatic program sales 

are forecasted to increase by 6 percent, causing a nominal increase of $40 million in metal costs. 

The net result of the numismatic and bullion program is an overall decrease in program costs. 

FTE Reduction -$4,097,000 / -34 FTE 

Salary savings will be realized through natural attrition across all directorates. 

 
MINT - 6 

Operating Efficiencies -$3,572,000 / -0 FTE 

The Mint will reduce its operating budget by continuing to monitor costs and implement various 

savings strategies. 

Program Increases................................................................. +$7,296,000 / +0 FTE 

FedRAMP Remediation Activities +$4,000,000 / +0 FTE 

The Federal Risk Authorization Management Program (FedRAMP) certification is mandatory 

for cloud providers who wish to provide services to the Federal government. PFS (Priority 

Fulfillment Services), the service provider for the Mint’s OMS II system, has identified system 

gaps that are non-compliant with FedRAMP requirements. In an effort to address these gaps, 

funding is needed to provide remediation solutions to bring PFS and the Mint’s OMS II system 

into compliance. 

Pay Raise (3.1% in 2020) +$3,296,000 / +0 FTE: 

Funds are required for a 3.1% average pay raise in January 2020. 

Maintaining Current Levels (MCLs)..................................................... +$10,856,000 / +0 FTE

Pay Annualization (3.1%) +$1,629,000 / +0 FTE 

Funds are required for annualization of the January 2020 3.1% average pay raise. 

Pay Raise (1.0% in 2021) +$1,588,000 / +0 FTE 

Funds are required for a 1.0% average pay raise in January 2021. 

FERS Contribution Increase +$2,686,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021. 

Non-Pay +$4,953,000 / +0 FTE 

Funds are required for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment. 

Workforce and Succession Planning......................................... +$4,901,000 / +34 FTE 

Workforce and Succession Planning +$4,901,000 / +34 FTE 

The Mint has implemented initiatives to increase its FTE level. These initiatives include using 

intern programs to transfer knowledge and reduce risks from retirement eligible workforce, fill 

key vacancies more timely, and using flexible hiring authorities to shorten the lengthy hiring 

process where appropriate. 

Efficiency Savings .................................................................................... -$6,355,000 / -0 FTE 

Cyber Security -$1,500,000 / -0 FTE 

The cyber security program will reduce contract spending by insourcing some security 

assessment and authorization (SA&A) and audit management functions. Areas of focus include 

supporting FedRAMP activities in the OMS II program, and conducting risk assessments for 

industrial control systems. 
MINT - 7 

Operating Efficiencies -$4,855,000 / -0 FTE 

The Mint will continue to reduce costs through continuous monitoring and implementing cost 

savings strategies as appropriate. These strategies include prioritizing Mint activities to ensure 

operating costs are maintained. 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands

FY 2019 FY 2020 FY 2021

Object Classification

Actual 

Obligations

Estimated

Obligations

Estimated

Obligations

11.1 - Full-time permanent 130,300 145,071 152,240

11.3 - Other than full-time permanent 0 161 161

11.5 - Other personnel compensation 13,149 11,900 12,000

11.9 - Personnel Compensation (Total) 143,449 157,132 164,401

12.1 - Personnel benefits 49,767 52,018 55,553

13.0 - Benefits for former personnel 71 1,019 1,019

Total Personnel and Compensation Benefits $193,287 $210,169 $220,973

21.0 - Travel and transportation of persons 2,035 2,957 2,957

22.0 - Transportation of things 28,009 21,651 21,400

23.2 - Rental payments to others 11,429 3,086 3,086

23.3 - Communication, utilities, and misc charges 17,141 18,860 18,960

24.0 - Printing and reproduction 1,606 3,366 3,366

25.1 - Advisory and assistance services 64,047 61,486 54,900

25.2 - Other services 22,559 39,931 25,180

25.3 - Other purchases of goods & serv frm Govt accounts 18,647 20,547 20,586

25.4 - Operation and maintenance of facilities 8,091 3,965 3,965

25.5 - Research and development contracts 297 900 900

25.6 - Medical care 958 735 735

25.7 - Operation and maintenance of equip 8,834 7,059 7,059

26.0 - Supplies and materials 17,537 19,003 19,050

26.7 - Raw Materials 1,120,413 2,080,000 2,080,000

31.0 - Equipment 29,156 32,266 52,266

32.0 - Land and structures 11,416 11,814 11,814

Total Non-Personnel 1,362,175 2,327,626 2,326,224

Total Budgetary Resources $1,555,462 $2,537,795 $2,547,197

Full-time Equivalents (FTE) 1,536 1,671 1,705
MINT - 8 

D – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

United States Mint 

Federal Funds 

Pursuant to section 5136 of title 31, United States Code, 

the United States Mint is provided funding through the 

United States Mint Public Enterprise Fund for costs 

associated with the production of circulating coins, 

numismatic coins, and protective services, including both 

operating expenses and capital investments: Provided, 

That the aggregate amount of new liabilities and 

obligations incurred during fiscal year [2020] 2021 under 

such section 5136 for circulating coinage and protective 

service capital investments of the United States Mint shall 

not exceed [$30,000,000] $50,000,000. (Department of 

the Treasury Appropriations Act, 2020.)

 

The increased capital limit 

will provide capital 

investment purchasing 

flexibility to procure the 

necessary equipment for 

production, safety, security, 

and technology 

improvements. 

 

For more detailed information, please reference Section III p. 14. 

E – Legislative Proposals 

Capital Legislative Increase 

The Mint’s investments in capital are a critical part of regular manufacturing operations. To 

continue effective coin production, equipment replacements and facility maintenance is 

mandatory. Over time, the legislative limit on the Mint’s capital budget has proven insufficient. 

Rather than upgrading and replacing worn and obsolete equipment as needed, under the current 

funding limit, capital projects must be prioritized and funded based on budget availability. This 

process has caused many needed projects to be postponed to out-years. Continuing to defer 

replacement of equipment presses, for example, creates the risk of additional downtime due to 

unexpected failures. This could substantially impact production schedules. Deferred replacement 

of presses also creates a cost risk associated with contracting the manufacturer to make 

emergency repairs. As such, the Mint’s need for capital investments becomes more critical each 

year. The current limitation of $30 million for circulating and protection capital is below the 

amount needed to meet capital investment requirements. 

The bureau has identified an urgent need to increase its legislative limit by $20 million. This 

will raise the current limit from $30 million to $50 million beginning in FY 2021. The increased 

capital limit will allow the Mint to execute a comprehensive capital investment strategy that 

focuses on safety, equipment replacements, protection, and facility improvements (see additional 

details in Section III). 

Alternative Metal Composition 

This proposal would give the Secretary the authority to prescribe the compositions of the 5-cent, 

dime, and quarter-dollar coins, provided that the new metal compositions do not affect the 

Electromagnetic Signature (EMS), the color, and weight of the coins. By authorizing the 

Secretary the flexibility and agility to implement small changes to the copper-nickel circulating 
MINT - 9 

coin metal compositions, the Mint could realize incremental material savings with little or no 

impact to the vending industry and general public. 

New Proposal: Circulating Commemorative Coin Redesign 

Estimated revenue: Approximately $8 billion over the life of the program, depending on 

program specifics 

Circulating commemorative coin programs are very popular and generate significant revenue for 

the United States Mint and ultimately the general fund of the Treasury. To better advance the 

hobby of collecting coins and medals, the Mint requires authority for circulating 

commemorative programs that are shorter term in nature; are based on subject matter that will 

drive the program through sustainable, recognizable, and relatable themes; and that can appeal to 

a broad range of Americans and attract new collectors, especially youth. 

The proposed Circulating Commemorative Coin Redesign Act (CCCRA) proposes new 

circulating and numismatic programs. In particular, the CCCRA would introduce a new quarter 

and half dollar program following the current America the Beautiful (AtB) Quarters Program, 

which will end in 2021. Because the AtB Quarters Program is scheduled to be discontinued in 

2021, authorizing new circulating commemorative coin programs will contribute to the longevity 

and long-term growth of the Mint, serve the public interest, and deliver increased revenue to the 

Mint and the Department of the Treasury General Fund that otherwise may not be realized. 

The Mint is proposing a new series of themes for circulating coins as a compelling way to 

engage young collectors and grow the Mint’s circulating and numismatic revenue. The themes 

proposed are quarter dollars and half dollars that represent historical milestones. 
MINT - 10 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

The Mint aligns with the following Department of the Treasury FY 2018-2022 strategic plan 

goals: 

 Goal 1: Boost U.S. Economic Growth 

o Objective 1.3 Trusted Currency and Services: Deliver trusted currency and services 

that enable citizens and businesses to participate in the economy. 

 Goal 5: Achieve Operational Excellence 

o Objective 5.1 Workforce Management: Deliver trusted currency and services that 

enable citizens and businesses to participate in the economy. 

o Objective 5.2 Treasury Infrastructure: Better enable mission delivery by improving the 

reliability, security, and resiliency of Treasury’s infrastructure. 

o Objective 5.3 Customer Value and Experience: Enhance the experience of interacting 

with Treasury by providing high quality products and services and by delivering 

excellent customer service. 

Circulating Coinage Program 

Circulating coinage includes the minting and issuing of pennies, 5-cent coins, dimes, and quarter 

dollars. The Mint delivers circulating coinage to the FRBs in quantities to support their service 

to commercial banks and other financial institutions. These financial institutions then meet the 

coinage needs of retailers and the public. The Mint recognizes revenues from the sale of 

circulating coins at face value when they are shipped to the FRBs. 

The Mint will continue to mint and issue circulating quarter-dollar coins honoring America’s 

national parks and other national sites, in accordance with the America the Beautiful National 

Parks Quarter Dollar Coin Act of 2008 (Public Law 110-456). In 2020, the Mint will release 

quarters honoring National Park of American Samoa (American Samoa), Weir Farm National 

Historic Site (Connecticut), Salt River Bay National Historical Park and Ecological Preserve 

(United States Virgin Islands), Marsh-Billings-Rockefeller National Historical Park (Vermont), 

and Tallgrass Prairie National Preserve (Kansas). In 2021, the program will end with one final 

quarter honoring Tuskegee Airmen National Historic Site (Alabama). 

Numismatic Program 

Bullion Coins 

The Mint produces and issues gold, silver, platinum, and palladium bullion coins to authorized 

purchasers through the American Eagle, American Buffalo, and America the Beautiful Silver 

Bullion Coin Programs. The authorized purchasers agree to maintain an open, two-way market 

for these coins, ensuring their availability for consumers who desire them for investment 

portfolios. Demand for bullion coins is greatly influenced by the performance of other 

investment options, such as equities or currency markets, and therefore is highly unpredictable. 

The content and purity of the precious metal in the bullion coins are backed by the United States 

Government. 
MINT - 11 

Other Numismatic Products 

The Mint’s numismatic program provides high-quality versions of circulating coinage, precious 

metal coins, commemorative coins, and national medals for sale directly to the public. For some 

numismatic products, authorizing legislation specifies program requirements, such as design 

theme, mintage level, and duration of product availability. Other programs are structured by law 

to grant the Secretary of the Treasury discretion in determining product specifications. 

The Mint will continue to mint and issue $1 coins commemorating the important contributions 

made by Indian tribes and individual Native Americans to the development and history of the 

United States in accordance with the Native American $1 Coin Act (Public Law 110-82). In 

addition, the Mint started the American Innovation $1 Coin Program (Public Law 115-197) in 

2018. This is a multi-year $1 coin series to honor innovation and innovators for each of the 50 

states, the District of Columbia and the five U.S. territories – Puerto Rico, Guam, American 

Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana 

Islands. Four new $1 coins with distinctive reverse designs will be released each year through 

2032, in the order the states ratified the Constitution of the United States or were admitted to the 

Union. Once a coin is issued for each state, coins will be released for the District of Columbia 

and the territories. 

Commemorative coins are authorized by law to recognize and honor people, places, events, 

institutions, and other subjects of historic or national significance. Each coin is minted and 

issued by the Mint in a limited quantity and is available only for a limited time. Included in the 

price is a surcharge that is authorized to be paid to the designated recipient organizations, 

assuming all legal requirements have been met. Recipient organizations must use the proceeds 

for the purposes specified in the enabling legislation. In 2021, the Mint has authorization to mint 

a commemorative coin honoring Christa McAuliffe (Public Law 116-65). 

B – Budget and Performance by Budget Activity 

2.1.1 – Manufacturing Resources and Measures 

Dollars in Thousands FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $2,937,55

3 

$3,272,10

6 

$2,203,90

9 

$1,424,77

0 

$1,555,46

2 

$2,537,79

5 

$2,547,19

7 

Budget Activity Total $2,937,55

3 

$3,272,10

6 

$2,203,90

9 

$1,424,77

0 

$1,555,46

2 

$2,537,79

5 

$2,547,19

7 

Full-time Equivalents (FTE) 1,657 1,695 1,645 1,545 1,536 1,671 1,705 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 

2019 FY 2020 FY 2021 

Measure Actual Actual Actual Actual Actual Target Target Target 

Customer Satisfaction Index (%) 89.5 91 91.7 93.6 93.6 90.0 90.0 90.0 

Numismatic Sales Units (Million 

Units) 5.4 4.2 3.9 3.3 4.3 3.9 3.8 3.0 

Safety Incident Recordable Rate 3.42 2.53 1.96 1.90 1.45 2.39 2.32 2.25 

Seigniorage per Dollar Issued ($) 0.49 0.52 0.45 0.37 0.40 0.36 0.36 0.36 

 
MINT - 12 

Manufacturing Budget and Performance 

($2,547,197,000 from offsetting collections) The Mint will mint and issue circulating coins and 

produce numismatic products, including bullion, to meet demand. 

Description of Performance: 

Several key performance measures are used to gauge the bureau’s progress in achieving its 

strategic goals and to assess its Manufacturing Budget Activity performance. 

Customer Satisfaction Index (CSI) 

The Mint conducts a quarterly survey of a random sample of active numismatic customers. The 

survey is intended to capture customer satisfaction with the Mint’s service performance as a coin 

products supplier and with the quality of specific products. The CSI metric is a quantitative 

score summarizing the survey’s results into one consolidated value. This metric gauges 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Improve 

mission critical activities and governance,” and the Mint’s internal strategic objective linked to 

this goal, “Drive a customer-centric organization.” This also aligns with the Treasury 

Department strategic objective linked to this goal, “5.3 Customer Value and Experience.”

In FY 2019, the CSI was 93.6 percent, exceeding its 90.0 percent target. The Mint was able to 

exceed its target by providing high-quality products, adding innovative features, and improving 

the Mint’s customer loyalty program. The Mint anticipates that the CSI will remain steady and, 

thus, has set the target at 90.0 percent for FY 2020 and FY 2021. 

Numismatic Sales Units 

The numismatic sales unit metric measures public demand for coin products sold from 

numismatic operations. This metric also measures performance results achieving the Mint’s 

internal strategic plan goal, “Improve mission critical activities and governance” and the Mint’s 

internal strategic objective linked to this goal, “Drive a customer-centric organization.” This 

also aligns with the Treasury Department strategic objective linked to this goal, “5.3 Customer 

Value and Experience.”

Numismatics product sales for FY 2019 totaled 4.3 million units, exceeding the 3.9 million 

target. The Mint’s numismatic unit sales grew substantially in FY 2019, driven by the popular 

Apollo 11 program, but the environment for numismatic sales overall remains challenging. The 

performance target for numismatic sales units is 3.8 million for FY 2020 and 3.0 million for FY 

2021. Targets are representative of the programs for that year. Therefore, targets vary year over 

year. To meet these targets, the Mint will continue to provide high-quality products and maintain 

outstanding customer service, and deepen engagement with coin collectors. 

Safety Incident Recordable Rate

The safety incident recordable rate is the number of injuries and illnesses meeting the 

Occupational Safety and Health Administration recording criteria per 100 full-time workers. It 

measures the occurrence of work-related incidents involving death, lost-time and restricted work, 

loss of consciousness, or medical treatment. The safety incident recordable rate indicates 

performance results in the effort to achieve the Mint’s internal strategic plan goal, “Foster a safe, 
MINT - 13 

flexible, diverse, and engaged workforce,” and the corresponding Mint internal strategic 

objective linked to this goal, “Continue to cultivate a safe working environment.” These also 

align with the Treasury Strategic Goal “5.1 Workforce Management.”

In FY 2019, the total recordable case rate reached 1.45, well below the Mint’s 2.39 FY 2019 

target, and significantly below the most recent industry average rate of 4.9 for comparable 

private sector manufacturing operations. During FY 2019, the Mint continued implementing and 

updating risk management guidelines to prioritize resources and mitigate risks in advance of 

injuries or catastrophic events at each plant. Mint facility leadership and employees continue to 

interact on a daily basis on the importance of safety. The performance targets for the safety 

incident recordable rate are 2.32 for FY 2020 and 2.25 for FY 2021. 

Seigniorage per Dollar Issued 

Seigniorage per Dollar Issued is the financial return on circulating operations, calculated as 

seigniorage divided by the total face value of circulating coins shipped to the FRBs. Seigniorage 

is the difference between the face value and cost of producing circulating coinage. It measures 

the cost effectiveness of minting and issuing the United States’ circulating coinage. It also 

measures performance results in achieving the Mint’s internal strategic plan goal, “Improve 

mission critical activities and governance,” as well as the Mint’s internal strategic objective 

linked to the goal, “Improve mission critical activities and governance.” This also aligns with 

the Treasury Strategic Goal “1.3 Trusted Currency and Services.” At the end of FY 2019, 

Seigniorage per Dollar Issued was $0.40, above the FY 2019 performance target of $0.36. The 

FY 2019 increase is a result of lower metal costs for all denominations. The Seigniorage per 

Dollar Issued performance targets are set at $0.36 for both FY 2020 and FY 2021. 

C– Evidence-Building Activity 

United States Mint Evidence-Based Activities 

The United States Mint complies with the requirements of the Foundations for Evidence-Based 

Policymaking Act of 2018, Public Law 115-435. As the Nation’s sovereign coin manufacturer 

that enables commerce and financial stability, the Mint values service, quality, and integrity, 

while using modern manufacturing practices with increasing operational effectiveness. Like 

other world-class manufacturing organizations, the Mint drives improvements with data, metrics, 

and evidence along four operational activities—namely, safety in the work environment, quality 

products, on-time delivery to our customers and cost management. Over the last five years, the 

Mint completed an average of fifteen data-driven projects per year. Projects used charters, 

measurement system analysis, process maps, cause and effect matrices, failure mode analysis 

and design of experiments. The projects yield safer work places, higher customer satisfaction, 

lower cost and higher quality. To sustain improvements, the Mint conducts Management 

Reviews and internal audits to follow a Plan-Do-Check-Act System to evaluate and adjust our 

activities based upon the evidence outcomes. 

Lean Six Sigma 

To achieve greater effectiveness, the Mint uses Lean Manufacturing, Six Sigma, and Enterprise 

Risk Management methods. These three key methods or approaches empower all employees at 

the Mint to improve the bureau in statistical, data-driven ways. Over the last five years, the Mint 

completed an average of fifteen data-driven projects per year. Projects used charters, 
MINT - 14 

measurement system analysis, process maps, cause and effect matrices, and failure mode 

analysis. The projects yield safer work places, higher customer satisfaction, lower cost, and 

higher quality. To sustain improvements, the Mint conducts Management Reviews and internal 

audits to follow a Plan-Do-Check-Act System to evaluate and adjust our activities based upon 

the evidence outcomes. 

Numismatic Program 

The Mint has employed Evidence-Based decision making to the Numismatic and Bullion 

Program. In late 2018, the Mint initiated an in-depth review of existing and potential future 

customer base and the types of products and marketing that would attract both groups. Out of 

this exercise, the Mint developed a five-year Sales and Marketing Plan (2020 - 2024), which will 

be used to inform the decision making process around new product development, sales and 

marketing activities, and new coin programs. Concurrent to this exercise, the Mint used real 

time market research and many of the insights gained from the holistic look at the program to 

develop and propose new coin programs and associated legislation moving into 2022-2030. 

Section III – Additional Information 

A – Summary of Capital Investments 

The Mint’s capital investment requirements are predominantly for manufacturing-type 

equipment. Capital investments, along with its operating expenses, are paid out of the Mint’s 

PEF. Current annual appropriations legislation caps the aggregate amount of new liabilities and 

obligations incurred during a fiscal year for capital investments in circulating coinage operations 

and protective service at $30 million. 

The Mint's manufacturing capital investment projects focus on safety, equipment replacement, 

protection, and facility improvements. 

In addition, the Mint’s capital investments encompass a robust information technology (IT) 

portfolio of investments and programs that modernize and secure the bureau’s infrastructure. 

The bureau’s governance structures ensure that the IT portfolio is managed in accordance with 

cost, schedule, risk, and performance goals, and that expected results and benefits are achieved. 

Enterprise architecture reviews assess and reinforce alignment to the bureau’s strategic plan and 

the strategic enterprise direction of the Department of the Treasury. 

In accordance with the Statement of Federal Financial Accounting Standard (SFFAS) No. 6, the 

Condition Index and the Deferred Maintenance assessments for purposes of Federal Real 

Property Profile, the Mint has no deferred maintenance for its equipment. Maintenance is 

scheduled and performed regularly to keep the manufacturing equipment operating at optimal 

levels. 

Proposal: Capital Investments Increase 

The Mint’s need for capital investments is a critical part of regular ongoing manufacturing 

operations. Capital costs do not remain constant but increase over time. Therefore, a static capital 

limit does not allow the systematic replacement of production equipment and/or proper 

maintenance of Mint facilities. Because of this, the Mint is proposing to increase its legislative 

limit to $50 million in FY 2021. 
MINT - 15 

The current $30 million capital limit impacts the bureau’s ability to efficiently procure the 

equipment necessary for effective production operations by delaying projects to out-years. As a 

result, some production equipment is past its useful life. Continuing to defer needed equipment 

purchases could cause equipment such as steam heat exchangers to experience catastrophic 

failures in the form of pipe bursts if not properly replaced on schedule. Ventilation deficiencies 

could cause carbon monoxide buildup and other occupancy issues. The increased capital limit 

will allow the Mint to execute a comprehensive capital investment strategy that addresses these 

and other issues. 

Currently, the Mint has a detailed ten-year plan that is a living document in constant update and 

use. The plan lists individual projects annually over a ten-year period. However, during the year, 

as emergent needs arise and/or when planned projects are no longer applicable (i.e. 

increased/reduced production capacity, old technology replaced by new methods or production 

practices change), changes are made to the plan and serves as the basis for subsequent years’ 

capital plans. Internal reviews are conducted to ensure that all desired projects are listed and 

prioritized, as each year’s requirements continue to exceed our funding level. Throughout the 

year, the project list is scrutinized and reprioritized as higher priority projects emerge. 

The detailed master plan is summarized by source of funds – Circulating/Protection and 

Numismatic – and the following categories: ESHE (Environmental, Safety, Health and Energy), 

Improvements, Equipment, Facility, Protection, and Information Technology. The table below 

reflects the current plan by category. 

**The Mint’s capital investment plan if legislation were approved to increase the limit to $50 million in FY 2020. 

 

Environment, Safety, Health & Energy (ESHE) 

This is our highest priority category and consists of projects that have a direct impact on the 

health and safety, environment and energy savings of the manufacturing facilities. Because 

ESHE is our highest priority, these projects tend to be approved ahead of other categories, 

leaving this category with few unfunded projects. Typical investments include: 

 Multi-year projects to improve the seismic survivability of a 1935 building 

 Waste water treatment upgrades 

 Platform and ladder safety improvements 

 
MINT - 16 

Improvements 

This is our lowest priority and are projects identified by the manufacturing sites which would 

enhance or provide different production capabilities. These do not include incremental capacity 

or capability increases, but include: 

 Hydraulic stamping press 

 Ready to strike blank preparations 

 Flexible robotic packaging system 

 Ultrasonic cleaner for precious metal blanks 

Equipment 

Projects under this category are to sustain our current production capabilities and capacities. It 

includes replacement of equipment that is beyond its useful life and creates increased downtime 

and maintenance costs, can no longer be supported by the OEM for repair parts, or electronic 

component obsolescence. Some project examples include: 

 Blanking press replacements 

 Circulating stamping press replacements 

 Circulating furnace line replacement 

 Coin counters 

 Proof press replacements 

 Replacement die coating system (used for proof polish dies) 

 Replacement die shop equipment – machine centers, grinders, lasers and heat treatment 

furnaces 

 Replacement packaging line (uncirculated sets) 

 Spaleck burnishers 

 Replacement cartoning line 

Facility 

These are projects related to maintaining the four manufacturing sites in good repair and 

condition. They include the building, roof, elevators and utility systems such as electrical, piping 

and HVAC, as well as: 

 Power system replacement 

 Elevators 

 Replace compressed air system and piping 

 HVAC replacement 

 Steam condensate piping replacement 

 Facility renovations (restrooms, locker rooms and offices) 

Protection 

Projects include the protection of Mint employees and assets, including gold and silver reserves, 

through the use of state-of-the-art security equipment and technology for essential protection 

functions such as access control, intrusion detection, and surveillance of property. Projects also 

include building and grounds improvements. Protection projects include: 

 Employee entrance remodel 

 Perimeter bollards 
MINT - 17 

 Observation post 

 X-ray machines 

 Radar intrusion detection 

Information Technology 

The Mint’s Information Technology plan includes projects required to support the Mint’s 

business initiatives, and maintain and upgrade the current infrastructure capabilities, such as: 

 Riverbed Wide Area Network (WAN) Optimizer 

 Network Security/Data Center storage replacement 

 Uninterrupted Power Supply (UPS) upgrade 

 Mobile App development and roadmap 

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 



Department of the Treasury 

Office of the Comptroller of the 

Currency 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2021
OCC - 2

Table of Contents

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

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

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

1.1 – Resources Detail Table ...................................................................................................... 5

1.3 Object Classification (Schedule O) Obligations................................................................... 6

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

E – Legislative Proposals............................................................................................................ 6

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

A - Strategic Alignment.............................................................................................................. 7

B – Budget and Performance by Budget Activity ...................................................................... 8

2.1.1 – Supervise Resources and Measures................................................................................ 8

Supervise Budget and Performance ............................................................................................ 8

2.1.2 – Regulate Resources and Measures................................................................................ 11

Regulate Budget and Performance............................................................................................ 11

2.1.3 – Charter Resources and Measures.................................................................................. 12

Charter Budget and Performance.............................................................................................. 12

C – Changes in Performance Measures.................................................................................... 13

D – Evidence-Building Activity ............................................................................................... 13

Section III – Additional Information ........................................................................................ 13

A – Summary of Capital Investments....................................................................................... 13
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Section I – Budget Request

A – Mission Statement

To ensure that national banks and federal savings associations operate in a safe and sound 

manner, provide fair access to financial services, treat customers fairly, and comply with 

applicable laws and regulations. 

B – Summary of the Request

The Office of the Comptroller of the Currency (OCC) was created by Congress in 1863 to 

charter national banks; oversee a nationwide system of banking institutions; and ensure national 

banks are safe and sound, competitive and profitable, and capable of serving in the best possible 

manner the banking needs of their customers. Effective on July 21, 2011, Title III of the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), transferred to the 

OCC the responsibility for the supervision of federal savings associations and rulemaking 

authority for all federal savings associations. 

As of September 30, 2019, the OCC supervised 840 national bank charters, 57 federal branches

and agencies, and 303 federal savings associations. In total, the OCC supervises approximately 

$12.8 trillion in financial institution assets.

Goals:

The OCC has established three goals to affirm its mission: 1) The OCC fosters a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks that is a source of economic strength and opportunity that meets 

the evolving needs of consumers, businesses, and communities; 2) OCC employees are engaged, 

prepared, and empowered to meet its mission; 3) The OCC operates efficiently and effectively. 

To achieve its goals and objectives, the OCC organizes its programs under three activities: 1) 

Supervise, 2) Regulate, and 3) Charter. Effective supervision and a comprehensive regulatory 

framework are the key tools that the OCC uses to ensure that national banks and federal savings 

associations operate in a safe and sound manner and that they provide fair access to financial 

services and fair treatment of their customers. A robust chartering program allows new entrants 

into the financial services sector while ensuring that they have the necessary capital, managerial, 

and risk management processes to conduct activities in a safe and sound manner.

The OCC’s priorities focus on strengthening the resiliency of the institutions subject to its 

jurisdiction through its supervisory and regulatory programs and activities. A stronger and more 

resilient banking system directly supports four out of five Department of the Treasury’s FY 

2018-2022 strategic goals: Boost U.S. Economic Growth; Promote Financial Stability; Enhance 

National Security; and Achieve Operational Excellence.

Operations are funded primarily (approximately 97 percent) from semiannual assessments levied 

on national banks and federal savings associations. Revenue from investments in Treasury 

securities and other income comprise the remaining three percent of the OCC’s funding. The 

OCC does not receive congressional appropriations to fund any portion of its operations.
OCC - 4

FY 2020 and 2021 Priorities

A major focus of the OCC’s supervisory, regulatory, and charter programs for FY 2020 and 

forward involve reviews of existing regulations to consider changes consistent with safety and 

soundness and fair treatment of bank customers, with the goal of enhanced regulatory 

coordination, reducing unnecessary regulatory burden, and increasing examination efficiency.

The OCC is observing signs that credit risk is increasing because of accumulated risk in loan 

portfolios from successive years of incremental easing in underwriting, risk layering, 

concentrations, and rising potential impact from external factors. The potential impacts from 

external factors include responding to intense competition by easing underwriting or policy 

exceptions. Therefore, the OCC will continue to closely evaluate current underwriting standards 

by conducting targeted underwriting examinations and using the credit underwriting assessment 

tool. 

The OCC will conduct examinations based on the risk profile of individual national banks and 

federal savings associations to ensure they are safe and sound, sufficiently capitalized, and 

comply with consumer protection laws and regulations. Priorities and activities will include 

supervisory reviews of cybersecurity and operational resiliency, commercial and retail credit 

underwriting practices and oversight and control functions, the impact of changing interest rate 

outlooks, preparedness for the current expected credit losses (CECL) accounting standard, 

preparation for the phaseout of the London Interbank Offering Rate (LIBOR), technological 

innovation and, Bank Secrecy Act/Anti Money Laundering (BSA/AML) under delegated 

authority from Treasury’s Financial Crimes Enforcement Network (FinCEN) and in line with 

Federal Financial Institutions Examination Council (FFIEC) guidance, and fair access. 

Examiners will work to resolve problem national bank and federal savings association situations 

effectively by identifying problems at the earliest possible stage, clearly communicating 

concerns and expectations to bank management through appropriate enforcement actions and 

ensuring timely follow-up on needed corrective actions. An additional priority for the OCC 

involves the modernization of the Community Reinvestment Act to reflect the evolution of the 

banking industry and ensuring that its original intent to assess the degree which insured 

depository institutions are serving the credit needs of the communities in which they operate 

remains valid. 
OCC - 5

1.1 – Resources Detail Table

Dollars in Thousands

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Budgetary Resources Actual Estimate Estimate % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections 

Assessments 0 $1,121,808 0 $1,035,671 0 $1,035,671 NA 0%

Interest 0 $31,604 0 $26,447 0 $26,447 NA 0%

Other Income 0 $17,926 0 $13,000 0 $13,000 NA 0%

Unobligated Balances from Prior Years 0 $1,541,608 0 $1,659,677 0 $1,632,000 NA -2%

Total Revenue/Offsetting Collections 0 $2,712,946 0 $2,734,795 0 $2,707,118 NA -1%

Expenses/Obligations 

Supervise 3,289 $939,193 3,202 $984,401 3,202 $984,401 0.00% 0%

Regulate 327 $93,323 318 $97,815 318 $97,815 0.00% 0%

Charter 71 $20,212 69 $21,185 69 $21,185 0.00% 0%

Total Expenses/Obligations 3,687 $1,052,728 3,589 $1,103,401 3,589 $1,103,401 0.00% 0%

Net Results $1,660,218 $1,631,394 $1,603,717 0.00% -2%

Notes:

• The Comptroller may impose and collect assessments, fees or other charges as necessary or appropriate to carry out his responsibilities and 

to meet the expenses of the OCC. 12 U.S.C. 482. At September 30, 2019, the net position of the OCC was $1.537 billion. 

• The Comptroller has sole authority to determine how OCC funds are obligated and its expenses incurred and paid. 12 U.S.C. 16.

• OCC funds are not appropriated funds or government monies. 12 U.S.C. 481.

• As part of its annual budget formulation process, the OCC re‐evaluates the size of the reserve based on a disciplined analysis of the impact 

of material events on its ability to fund operations.
OCC - 6

1.3 Object Classification (Schedule O) Obligations

Dollars in Thousands 

FY 2019 FY 2020 FY 2021

Object Classification

Actual 

Obligations

Estimated 

Obligations

Estimated

Obligations

11.1 - Full-time permanent 543,392 542,738 542,738 

11.3 - Other than full-time permanent 5,405 4,129 4,129 

11.5 - Other personnel compensation 2,551 2,204 2,204 

11.9 - Personnel Compensation (Total) 551,347 549,071 549,071 

12.0 - Personnel benefits 238,251 269,068 269,068 

13.0 - Benefits for former personnel 195 196 196 

Total Personnel and Compensation Benefits $789,792 $818,335 $818,335 

21.0 - Travel and transportation of persons 42,801 44,479 44,479 

22.0 - Transportation of things 1,211 795 795 

23.1 - Rental payments to GSA 55 56 56 

23.2 - Rental payments to others 64,423 66,863 66,863 

23.3 - Communication, utilities, and misc charges 14,933 17,412 17,412 

24.0 - Printing and reproduction 416 430 430 

25.1 - Advisory and assistance services 16,311 17,772 17,772 

25.2 - Other services 23,500 31,969 31,969 

25.3 - Other purchases of goods & serv frm Govt accounts 8,583 8,543 8,543 

25.4 - Operation and maintenance of facilities 4,731 5,578 5,578 

25.7 - Operation and maintenance of equip 58,490 64,109 64,109 

26.0 - Supplies and materials 4,364 5,936 5,936 

31.0 - Equipment 22,472 20,260 20,260 

32.0 - Land and structures 375 476 476 

42.0 - Insurance claims and indemnities 271 388 388 

Total Non-Personnel 262,936 285,066 285,066 

Total Budgetary Resources $1,052,728 $1,103,401 $1,103,401 

Full-time Equivalents (FTE) 3,687 3,589 3,589 

D – Appropriations Language and Explanation of Changes

The OCC receives no appropriations from Congress.

E – Legislative Proposals

The OCC has no legislative proposals.
OCC - 7

Section II – Annual Performance Plan and Report

A - Strategic Alignment

For FY 2019 and FY 2020, the OCC’s bank supervision program specifically supports the 

following Department of the Treasury’s FY 2018 - 2022 strategic goals:

• Goal 1) Boost U.S. Economic Growth

o 1.2 – Strong Economic Fundamentals

• Goal 2) Promote Financial Stability

o 2.4 – Financial Sector Critical Infrastructure and Cybersecurity 

• Goal 3) Enhance National Security

o 3.1 – Strategic Threat Disruption

o 3.2 – AML/CFT Framework

• Goal 5) Achieve Operational Excellence

o 5.1 – Workforce Management

o 5.2 – Treasury Infrastructure

o 5.3 – Customer Value

As such, the OCC’s nationwide staff of bank examiners conducts on-site reviews of banks and 

provides sustained supervision of these institutions’ operations. Examiners analyze asset quality, 

capital adequacy, earnings, liquidity, and sensitivity to market risk for all banks, and assess 

compliance with federal consumer protection laws and regulations. Examiners also evaluate 

management’s ability to identify and control risk, and assess banks’ performance in meeting the 

credit needs of the communities in which they operate, pursuant to the Community Reinvestment 

Act (CRA).

In addition, under the bank supervision program, the OCC will also:

• Approve or deny applications for new charters, branches, capital, or other changes in 

corporate or banking structure;

• Take supervisory and enforcement actions against banks that do not comply with laws and 

regulations or that otherwise engage in unsafe or unsound practices;

• Remove and prohibit officers and directors, negotiate agreements—both formal (i.e., public) 

and informal (i.e., non-public)—to change banking practices, and issue cease-and-desist 

orders as well as Civil Money Penalties; and

• Issue rules and regulations, legal interpretations, supervisory guidance, and corporate 

decisions governing investments, lending, and other practices.
OCC - 8

B – Budget and Performance by Budget Activity

2.1.1 – Supervise Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate 

Expenses/Obligations $873,414 $975,477 $993,680 $1,105,022 $939,193 $984,401 $984,401 

Budget Activity Total $873,414 $975,477 $993,680 $1,105,022 $939,193 $984,401 $984,401 

Full-time Equivalents (FTE) 3,337 3,441 3,498 3,434 3,289 3,202 3,202

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target 

Percentage of National Banks and 

Federal Savings Associations with 

Composite CAMELS Rating 1 or 2 91.0 93.0 94.0 96.0 96.0 90.0 90.0 90.0

Percentage of National Banks and 

Federal Savings Associations That 

Are Categorized As Well 

Capitalized 95.0 96.0 97.0 95.0 98.0 95.0 95.0 95.0

Percentage of National Banks and 

Federal Savings Associations With 

Consumer Compliance Rating of 1 

or 2 96.0 98.0 97.0 98.0 98.0 94.0 94.0 94.0

Rehabilitated National Banks and 

Federal Savings Associations As A 

Percentage Of Problem National 

Banks One Year Ago (CAMEL 3,4, 

or 5) 39.0 43.0 40.0 44.0 15.0 40.0 40.0 40.0

Total OCC Costs Relative To Every 

$100,000 in Bank and Federal 

Savings Associations Assets 

Regulated ($) 9.37 9.65 9.49 9.12 8.07 8.50 8.10 8.10

Supervise Budget and Performance

($984,401 from revenue/offsetting collections):

An effective supervision program is the cornerstone of the OCC’s activities that support its 

strategic goals. Specifically, the Supervise Program consists of ongoing supervision and 

enforcement activities that directly support the OCC’s strategic goal to foster a safe, sound, and 

fair system of national banks, federal savings associations and federal branches of foreign banks 

and agencies of foreign banks that is a source of economic strength and opportunity that meets 

the evolving needs of consumers, businesses, and communities. the condition and risk 

management practices of national banks and federal savings associations, and requiring 

corrective actions when weaknesses are found, directly supports Treasury’s goal to promote 

financial stability. In FY 2019, the OCC took a number of enforcement actions, including 

imposition of Civil Money Penalties (CMPs) to address violations of the Bank Secrecy Act and 

Anti-Money Laundering requirements. 

Description of Performance:

Percentage of National Banks and Federal Savings Associations with Composite CAMELS 

Rating of 1 or 2:
OCC - 9

The composite Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and 

Sensitivity (CAMELS) rating reflects the overall condition of a national bank or federal savings 

association. Bank regulatory agencies use the Uniform Financial Institutions Rating System, 

CAMELS, to provide a general framework for evaluating all significant financial, operational, 

and compliance factors inherent in a national bank or federal savings association. The rating 

scale is 1 through 5 of which 1 is the highest rating granted. These CAMELS ratings are 

assigned at the completion of every supervisory cycle or when there is a significant event leading 

to a change in CAMELS. 

The OCC established a target outcome measure that 90 percent of the institutions under its 

supervision have a composite CAMELS rating of 1 or 2. Such a rating is consistent with the 

strategic goal of a safe and sound banking system, that banks maintain adequate capital and 

liquidity and have strong risk management practices. As of September 30, 2019, 96 percent of 

national banks and federal savings associations earned composite CAMELS ratings of either 1 or 

2. Degradation in CAMELS can reflect weaknesses in risk management systems that need 

corrective action. The OCC, consistent with Treasury’s goals of boosting U.S. economic growth 

and promoting financial stability, has instructed bank examiners to identify and seek corrective 

action at an earlier stage to address potential problems or weaknesses. The OCC’s primary focus 

is to ensure that CAMELS ratings are an accurate reflection of each institution's current financial 

position, and thus the OCC would not take action to prematurely restore a favorable CAMELS 

rating.

Percentage of National Banks and Federal Savings Associations that are Considered WellCapitalized:

The Federal Deposit Insurance Act established a system that classifies insured depository 

institutions into five categories (well capitalized, adequately capitalized, undercapitalized, 

significantly undercapitalized, and critically undercapitalized) based on their capital levels 

relative to their risks. The OCC established a target outcome measure that 95 percent of national 

banks and federal savings associations will meet or exceed the well-capitalized threshold. 

The OCC works closely with problem national banks and federal savings associations to develop 

rehabilitation plans. Such plans typically include directives to improve or restore capital levels. 

These efforts, combined with a more stable operating environment, have resulted in 

improvement in this performance measure since FY 2009. As of September 30, 2019, 98 percent 

of national banks and federal savings associations were classified as well capitalized.

Percentage of National Banks and Federal Savings Associations with Consumer Compliance 

Rating of 1 or 2:

To ensure fair access to financial services and fair treatment of national bank and federal savings 

association customers, the OCC evaluates an institution’s compliance with consumer laws and 

regulations. Bank regulatory agencies use the Uniform Financial Institutions Rating System, 

Interagency Consumer Compliance Rating, to provide a general framework for evaluating 

significant consumer compliance factors inherent in an institution. Each institution is assigned a 

consumer compliance rating based on an evaluation of its present compliance with consumer 

protection and civil rights statutes and regulations, and the adequacy of its operating systems 

designed to ensure continuing compliance. Ratings are on a scale of 1 through 5 of which 1 is 
OCC - 10

the highest rating granted. The target for FY 2020 remains unchanged at 94 percent. As of 

September 30, 2019, national banks and federal savings associations continue to show strong 

compliance with consumer protection regulations with 98 percent earning a consumer 

compliance rating of either 1 or 2. Under the Dodd-Frank Act, the OCC has enforcement and 

supervisory authority for those institutions with total assets of no more than $10 billion. 

Rehabilitated National Banks and Federal Savings Associations as a Percentage of Problem 

National Banks and Federal Savings Associations One Year Ago:

The OCC’s early identification and intervention with problem financial institutions can lead to a 

successful rehabilitation. As of September 30, 2019, 15 percent of national banks and federal 

savings associations with composite CAMELS ratings of 3, 4, or 5 one year ago have improved 

their ratings to either 1 or 2 this year. The target is 40 percent for FY 2019 and FY 2020. The 

OCC continues to focus on the early identification and rehabilitation of problem institutions. The 

low percentage is an indicator of a shrinking population base of problem banks. Two years ago, 

there were about 80 problem banks, last year 60 problem banks and currently less than 50 

problem banks.

As previously noted, the OCC continuously takes steps through its Supervise and Regulate 

programs to make national banks and federal savings associations more resilient to financial 

stresses and to identify and obtain corrective action at an earlier stage, when problems can be 

addressed most successfully. These efforts include heightened capital and liquidity standards 

and increased emphasis on the need for stress testing, designed to provide financial institutions 

with stronger capital buffers to withstand unforeseen events. These are multi-year efforts that 

will continue in FY 2020 and beyond. 

Total OCC Costs Relative to Every $100,000 in National Bank and Federal Savings Association 

Assets Regulated:

The OCC measures the efficiency of its operations while meeting the increasing supervisory 

demands of a growing and more complex national banking system.

The OCC costs are those reported as total program operating costs that include obligations 

incurred in each fiscal year. National bank and federal savings association assets are those 

reported quarterly by national banks and federal savings associations on the Reports of Condition 

and Income. Total national bank and federal savings association assets represent the growth and 

complexity of the financial institutions under the jurisdiction of the OCC. This measure supports 

the OCC’s strategic goal of efficient use of agency resources. The OCC’s ability to control its 

costs while ensuring the safety and soundness of national banks and federal savings associations 

benefits all national bank and federal savings association customers. As of September 30, 2019, 

total OCC cost relative to every $100,000 in assets regulated was $8.07 compared to the FY 

2019 target of $8.50. The OCC continues to meet its efforts to ensure that resources are used 

prudently and that programs are carried out in a cost-effective manner ensuring that the OCC 

operates as efficiently and effectively as possible.
OCC - 11

2.1.2 – Regulate Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Estimate Estimate

Expenses/Obligations $103,574 $90,463 $92,151 $106,649 $93,323 $97,815 $97,815 

Budget Activity Total $103,574 $90,463 $92,151 $106,649 $93,323 $97,815 $97,815 

Full-time Equivalents (FTE) 396 319 324 331 327 318 318

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Regulate Budget and Performance

($97,815 from revenue/offsetting collections):

The Regulate Program supports the OCC’s strategic goal of a vibrant and diverse system of 

national banks and federal savings associations that supports a robust U.S. economy. 

Specifically, the Regulate Program consists of ongoing activities that result in the establishment 

of regulations, policies, operating guidance, and interpretations of general applicability to 

national banks and federal savings associations. These regulations, policies, and interpretations 

may establish system-wide standards, define acceptable national banking and federal savings 

association practices, provide guidance on risks and responsibilities facing national banks and 

federal savings associations, or prohibit (or restrict) national banking or federal savings 

association practices deemed to be imprudent or unsafe. They also establish standards for 

ensuring fair access to financial services and fair treatment of national bank and federal savings 

association customers. This program includes establishing examination policies and handbooks; 

interpreting administrative, judicial, and congressional proceedings; and establishing the 

applicable legal and supervisory framework for new financial services and products.

Description of Performance: 

The OCC has recently undertaken a number of activities to reduce regulatory burden on and 

expand economic opportunity, including supporting responsible innovation by regulated 

institutions. OCC continued progress under the provisions of the Economic Growth, Regulatory 

Relief and Consumer Protection Act to reduce regulatory burden on community banks, including 

adopting a final rule to exclude community banks from the Volcker Rule. The agency also 

adopted a final rule to simplify capital calculations for community banks. The OCC also issued a 

final rule to provide more business flexibility to federal savings associations. 

To implement the Economic Growth, Regulatory Relief and Consumer Protection Act, the OCC 

expanded eligibility for streamlined regulatory reporting requirements for small institutions, 

issued a final rule to increase the threshold for residential real estate transactions requiring an 

appraisal, and expanded the number of institutions eligible for an extended 18-month 

examination cycle. The agency also issued proposed rules to update the calculation of derivative 

contract exposure amounts under the regulatory capital rules and to tailor the OCC’s stress 

testing rule. The OCC continued to seek input on and work collaboratively with the other federal 

banking agencies on amending the Community Reinvestment Act.
OCC - 12

OCC continued to support responsible industry innovation by offering a program of Office 

Hours and Listening Sessions, sponsored by its Office of Innovation, and proposed a voluntary 

pilot program to support the testing of innovative products, services, and processes that could 

benefit consumers, businesses, and communities.

2.1.3 – Charter Resources and Measures

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

 Resource Level Actual Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $18,922 $23,978 $24,426 $24,033 $20,212 $21,185 $21,185 

Budget Activity Total $18,922 $23,978 $24,426 $24,033 $20,212 $21,185 $21,185 

Full-time Equivalents (FTE) 72 85 86 75 71 69 69

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees

Performance Measure

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Target Target Target

Percentage of Licensing 

Applications and Notices 

Completed within Established 

Timeframes 97.0 98.0 96.0 97.0 99.0 95.0 95.0 95.0

Charter Budget and Performance

($21,185 from revenue/offsetting collections):

The Charter Program consists of ongoing activities that result in the chartering of national banks 

and federal savings associations and the evaluation of the permissibility of structures and 

activities of national banks and federal savings associations and their subsidiaries. This includes 

the review and approval of new national bank and federal savings association charters, federal 

branches and agencies, mergers, acquisitions, conversions, business combinations, corporate 

reorganizations, changes in control, operating subsidiaries, branches, relocations, and 

subordinated debt issuances. By supporting the entry of new products and institutions into the 

financial system with a national charter in a manner consistent with safety and soundness, the 

Charter Program supports the OCC’s strategic goals of assuring safety and soundness while 

allowing national banks and federal savings associations to offer a full competitive array of 

financial services. 

Description of Performance:

Percentage of Licensing Applications and Notices Completed within Established Time Frames:

The OCC’s timely and effective approval of corporate applications contributes to the nation’s 

economy by enabling national banks and federal savings associations to complete various 

corporate transactions and introduce new financial products and services. Delays in providing 

prompt decisions on applications and notices can deprive a national bank or federal savings 

association of a competitive or business opportunity, create business uncertainties, or diminish 

financial results. Time frames have been established for completing each type of application and 

notice. As of September 30, 2019, the OCC completed 99 percent of national bank and federal 

savings association applications and notices within the required time frame, above the target of 

95 percent. The OCC will continue to meet its Charter Program goals by providing staff 

training, coordinating efforts between charter and supervisory staff on safety and soundness and 
OCC - 13

compliance matters, issuing updated procedures, and maintaining an emphasis on accessibility 

and early consultation with national bank and federal savings association organizers and others 

proposing national bank and federal savings association structure changes.

C – Changes in Performance Measures 

OCC has no changes in performance measures. 

D – Evidence-Building Activity

In FY 2019 and continuing into FY 2020, OCC began the Business Practice and Technology 

(BPAT) Initiative. BPAT is an enterprise effort to devise ways to better enable OCC to optimize 

enterprise services and our ability to proactively manage expectations with OCC customers. This 

proactive management of resources to optimize service delivery is core to achieving OCC’s 

strategy. When consistent, repeatable processes are in place across OCC, the agency can more 

easily consider opportunities to manage services more effectively with technology or to automate 

recurring processes. Such use of technology yields time back to the organization to dedicate to 

the most complex activities, seek improvements, or provide new services. 

In addition, to augment the economic and financial research function already performed by the 

OCC, the agency is undertaking a more formal strategic analysis and studies program in 

FY 2020. This function will be future looking in its outlook by conducting research and studies 

on items and issues having a potential impact on OCC operations and/ or the financial industry in 

the next five to ten years. 

Section III – Additional Information

A – Summary of Capital Investments

The OCC Chief, Information Officer’s (CIO) Vision aligns information technology initiatives 

and investments to the OCC’s core mission, including the development of new or enhanced 

applications and services and the disposition of redundant or “end-of-lifecycle” applications, 

capabilities, and services. 

The CIO Vision is implemented through the budget formulation and the Capital Planning and 

Investment Control processes (transitioning to Technology Business Management). These 

processes ensure that all IT investments are aligned with the OCC’s mission, goals, objectives, 

and target enterprise architecture before a project is funded. The OCC ensures funding and staff 

resources to address IT investment priorities and considers risk mitigation strategies for IT 

investments that are not meeting stated performance goals. Performance metrics are linked to 

the delivery, alignment, and achievement of the OCC’s strategic program objectives to support 

evaluation of cost effectiveness for each investment. 

FY 2020 and 2021 Plans - The OCC has 4 major IT initiatives in FY 2020 and 2021: 

• Servers Support Services (SSS) - The SSS supports the OCC’s server Operations and 

Maintenance, including refreshes of End-of-Life hardware. The infrastructure staff continues 

to manage capability to support enterprise requirements.

• Telecommunications Services and Support (TSS) - TSS includes telecommunications Wide 

Area Network (WAN) and Local Area Network (LAN) infrastructure. Remote access to the 

OCC systems is facilitated via a virtual private network, dial-in, and cellular wireless access 
OCC - 14

using two-factor authentication. This also includes messaging services supporting highlymobile bank examiners and the OCC staff. In FY 2020, the OCC will continue an on-going 

effort to upgrade the headquarters and field office phone systems and telecom infrastructure 

including LAN/WAN hardware and Voice Over Internet Protocol.

• End User Services and Support (EUSS) - EUSS includes help desk/customer service support, 

personal computer hardware and software operations and maintenance, asset management, 

and desktop engineering and image management. New computers and peripherals 

deployment to the workforce will be completed in FY 2020.

• Cyber Security (CS) – CS includes technologies, processes and practices aligned to protect 

networks, computers, programs and data from attack, damage or unauthorized access. In 

alignment with Federal and Treasury requirements, the OCC has transitioned the Agency's 

systems and applications into Information System Continuous Monitoring (ISCM) and 

Ongoing Authorization (OA). In FY 2020 the OCC will continue to deploy additional cloudbased services and to minimize our dependence on the OCC Data Center for critical network 

services and infrastructure services.

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

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx. 

International Programs 

The Department of the Treasury’s FY 2021 budget request for International Programs is included 

in the State, Foreign Operations, and Other Related Programs Appropriation. 

Treasury’s International Programs Justification of Appropriations can be found at the following: 

https://home.treasury.gov/about/budget-financial-reporting-planning-and-performance/budgetrequestannual-performance-plan-and-reports/treasury-international-programs-justification-ofappropriations